The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
cZ
AMERICAN BANKERS ASSOCIATION CONVENTION ISSUE
UoNF'MS
£
1951
OCT 12
Commercial
Reg. U. S
Volume 174
Number 5054
New
EDITORIAL
to
who
are
raising their voices
question the assumption (which for
while went almost
rearmament such
unchallenged) that
as
we
have been
By JAMES E. SHELTON*
period of
a
planning
sharing about the
same
fate.
with relation to his
elected
prices reflected this panicky buying. Almost as
inevitably these markets and these prices have
for some time now been reflecting an altered atti¬
tude of consumers almost everywhere.
held in Atlantic
I
shall
not talk to you today about the program and
accomplishments of your Association this year,
though they are many. Neither shall I discuss primarily
the problems affecting the business of banking as such,
though they are legion.
Rather, I
under the influence
have
determined
sion,
as
cago, 111., from Sept. 30 through Oct.
before adjournment, elected C. Francis
on
this
last
occa¬
Associa¬
American citi¬
you as
j;V/V..
zens.
This
people
is
great country,
a
are
a
land of ours,
and our
great people. In this
extending thousands of
miles from north to south
and from
east to
west, there are great differ¬
ences
in climate, in topography, in
quality of soil, in variety of products
produced, in racial background of its
citizens, in inflections of speech, in
spontaneity
of
temperament,
and
other personal characteristics. There
is no real difference in its people—
As is so often the case in such circum¬
length of time to work back to a
normal state of affairs is proving much longer
than had been predicted—and the shortages are
for the most part still in the future, although, as in
the case of meat, controls are serving to keep
the
James
E.
Shelton
supporting,
and,
friendships; their
solidity as free, independent, selftherefore, self-respecting Americans,
Continued
♦Presidential address by Mr. Shelton
we
DEALERS
111., Oct. 2,
Gladney
on
page
First
National Exchange
26
at the
as
'
-
1951.
Continued
on
page
32
ARTICLES IN THIS ISSUE—In addition to the material on the cover page,
ABA
MORE
Chicago,
B.
Wm.
Brenton
Bank of
President of the Asso¬
ciation, to succeed James E. Shelton, President of
the Security-First National Bank of Los Angeles,
of
Roanoke, Roanoke, Va.,
-
39
Harold
W.
Cocke
President
First General Session
of the 77th Annual Convention of the American Bankers Association,
instances.
Francis
C.
the warmth of their
goods out of the hands of consumers in
page
3, and,
Cocke,
President of your
tion, to talk to
change.
on
City, N. J., Sept. 28-0ct. 1, 1952.
The American Bankers Association held its 77th
the
vigorous demand of last year stocked up de¬
sired goods as rapidly and extensively as circum¬
stances permitted.
The actual rearmament pro¬
gram was slower in getting under way than many
had expected it to be. Opportunity thus presented
itself to store up ordinary consumer goods in
amounts anticipated by few.
Inventory figures
soon reflected what was taking place, and con¬
sumer inventories—of which there are virtually
no statistics—must have also taken on a radical
Continued
as
Annual Convention at the Stevens Hotel in Chi¬
of the
some
an
Calls Declaration of Independence birth of
freedom, and asserts U. S. Constitution does not
provide for "planned economy." Cites ill effects of
Socialism in England, and points out recent trends in our
own
government unduly subjugate the individual. Pleads
for prevention of Socialism coming in "by the back door."
against the evil day they saw, or thought they
ahead of them. Inevitably, the markets and
wanted
under
is danger of
human
saw,
stances,
warns, even
tyranny.
forthwith
proceeded to lay in stocks of all sorts of goods
and merchants
government,"
representative government, there
C. Francis Cocke succeeds James E. Shelton
President, and W. Harold Brenton becomes Vice-Presi¬
dent.
William B. Gladney is elected Treasurer.
Ad¬
dresses by retiring President Shelton, Wm. McC. Martin,
Jr., Secretary of Treasury John W. Snyder, Arthur A.
Smith, Robert E. Gross, Dr. Deane W. Malott, Erie
Cocke, Jr., and others given herein. Association's mem¬
bership now comprises 98.4% of nation's banks, highest
percentage in 76-year history. Next Convention to be
issue
Consumers when
trouble first broke in Korea last year
Oct. 3.
Retiring ABA President, calling fundamental political
today, Vwhat should be position of the individual
was
period "inflation" is "inevitable" is
a
Producers
Copy
Meeting held in Chicago, IlL, from Sept. 30 through
President, American Bankers Association
President, Security-First National Bank of Los Angeles
good
a
The companion assumption
"depression proof."
that in such
a
ABA Holds 77th
Departing From
Founding Fathers' Concepts Annual Convention
We See It
those
are
Price 40 Cents
York, N. Y., Thursday, October 11, 1951
We Are
As
There
Pat. Office
present in this issue, starting on page 14, other addresses made during the course
the 77th Annual Convention of the American Bankers Association.
of
State and
in
Municipal
U. S/ Government,
State and
Municipal
Securities
telephone:
R. H. Johnson & Co,
STATE AND MUNICIPAL
Established 1927
600 Branches
across
BONDS
IIAnover 2-3700
SECURITIES
upon request
Chemical
COMPANY
bond department
64 Wall Street,
THE NATIONAL CITY BANK
Buffalo
Albany
Harrisburg
Providence
of Commerce
OF NEW YORK
Williamsport
Allentown
Bond Dept.
Teletype: NY 1-708
VANCE, SANDERS & CO.
Ill Devonshire Street
Chicago
Los
Angeles
Wall Street, New
Security
San Francisco
York, N. Y.
Principal Commodity
Members of
and
BOSTON
New York
14
•
Boston
Los Angeles
•
BouSht
^
Honolulu
•
CANADIAN
Chicago
THE CITY OF NEW YORK
Northern
BONDS & STOCKS
sold
DEPARTMENT
Goodbody
&
Co.
Analysis apon request
Domeiio;* Securities
Grpoeatiots
ESTABLISHED 1891
115 BROADWAY
CHICAGO
40 Exchange
Place, New York 5, N.Y.
IRA HAUPT & CO.
Teletype NY 1-702-3
WHitehall 4-8161
York Stock Exchange
Principal Exchangee
Members New
and
other
111 Broadway,
WOrth 4-6000
105 W. ADAMS ST.
NEW YORK
England
Company
Quoted
MEMBERS NEW YORK STOCK EXCH.
Exchanges
OF
^
Wires
DejsnWitter & Co.
Pl.
Portland, Ore. San Francisco Los Angeles
New
J
J n
and Bonds
Private
NATIONAL BANK
CANADIAN
Stocks
Hawaiian Securities
Direct
New York Agency: 20 Exchange
Seattle
Canadian
Froipcclui from authorized dealers or
Department
THE CHASE
Head Office: Toronto
Pacific Coast &
\nvestors Trust
The Canadian Bank
Scranton
Washington, D. C.
Massachusetts
Bond
PHILADELPHIA
BOSTON
Troy
New York 5
Wilkes-Barre
BROAD ST
Bonds
v
Monthly Commercial Letter
INVESTMENT
BANK & TRUST
Canada
Boston
N. Y. 6
Teletype NY 1-2708
Telephone:
Enterprise 1820
2
(1346)
'
The Commercial and Financial Chronicle.
*
..
Thursday, October 11, 1951
f
TRADING MARKETS
The
IN
Security I Like Best
Southern Production
Interstate
A continuous forum in which, each week,
Power Co.
Forum
of experts
group
advisory field from all sections of the country
participate and give their reasons for favoring a particular security.
(The articles contained in this forum
Eastern Utilities Assoc. Conv.
are
New York Hanseatic
G.
they
be regarded,
to
FREDERIC
as an
offer
New York
5
Robbins
Teletype NY 1-583
&
intended
not
provides a
protection and
to
he,
Louisiana Securities
eric
nor
City and Hudson, N. Y.
Myers, Inc.
Since it is something of a
spe¬
of my firm, I am again
choosing to write of one of the
generally known equities,
mon
75C
pays
or more
in
any one
(Mt.
STEPHEN
e
Robbins
&
Myers, Inc.
are
Members
York
Stock
New
York
Curb
2-7815
elec¬
cated
American Furniture
dend
Helbig
Tenn.,
Ohio, Mem¬
Brantford,
and
Dan River Mills
its general field, Robbins &
Myers
has had its troubles during the
of
course
dating
Life Insurance Co. of Va.
its
back
twenties it
long
to
•established in
,
corporate
1889
7
said
'
..
LD 39
LY 77
MEMBERS
be
to
the
ofthe world.
fractional
over¬
with
k
o
placed
once more
an
excellent
now
com¬
reputation
company's production skill and ef¬
ficiency was inherent in its role
as major
participant in the man¬
ufacture
of
the
famous
bombsight during the
N'orden
war.
The
Ludlum
is
manufacturer
both
of high
over
alloy steels with last year's
As
Puget Sound Pwr.
•
is
selling around
May 31st of this year the
Wheeler Osgood
&
production being divided roughly
Va stainless steels, % silicon
steels and % for all other prod¬
from
outside
Lt.
SOLD
•
•
QUOTED
foster & marshall
Member New York Stock
Exchange
SEATTLE
1900
Tele. SE
to
New
qssets
alone
share. Common earnings
well
as
turbines.
and die steels
are
also produced.'
According to latest reports, the
company is operating at capacity
and the shortage of alloy steels
suggests that the demand for the
a
time to
some
come.
the
alter
to
company
for
sales
present
of
$177
million
Nat'l
Assn.
of
Securities Dealers
Inc.
31 Milk St., Boston
9, Mass.
Tel. HUbbard 2-5500
Tele. BS 142
Portland, Me.
Enterprise 2904
Hartford, Conn. Enterprise 6800
Open End Phone to New York Candl'V-1613
,
last
run
in the
per
share
capitalization.
that
the
This
stock
is
earn¬
with the possibility of
$0.50 quarterly plus
a
a
final
be
$0.50 extra
declared
next
month,
pay¬
able in December. If this distribu¬
is actually made,. it would
bring total payments for the
to
the
year
$2.50
per share, equivalent to a
Report expected momen¬ yield of arourid 5y4% St the pres¬
tarily, for the final quarter is ent price.
/ r w 'f.
;
From 1946 through
generally the company's best. The-c
1949, Alle¬
regular dividend rate is 25(£ peir gheny Ludlum spent some $30
Annual
quarter and the possibility of
extra is very real.
,
For
more
conservative
million
an
.
invest¬
ment, the preferred stock around
;
of
which
interest
million
ium
for
4>/4%
Pfd.
Corp.
Conv.
Pfd.
Foote Mineral Co.
the
Gerstex & Frenkel
Members
150
Tel.
this
on
expanding and improv¬
ing- its facilities. The company is
now
engaged
improvement
war-built
in
Security Dealers Assn.
New York T
DIgby 9-1550
Tel. NY 1-1932
Specializing in
the
is
Equity Oil
company.
a
basic
i'
Mountain Fuel Supply
converting
huge $150
Utah Southern Oil
magnes¬
Henderson, Nevada
production of titanium
the
titanium
and
Schedules
rate
Y.
company's
excite
most
in
N.
Broadway
Analysis
upon
request
plant at
metal
call
base
for
alloys.
by late 1952 of 3,600 tons
production.
EDWARD L. BURTON
& COMPANY
production
a
Allegheny
Established 1899
an¬
nually, 8 times the present world
160 S. Main St.
Bell
Ludlum
because
duced
Henderson
at
ingots
Salt Lake City 1
Teletype SU 464
Oldest Investment H\tuse in Utah
will benefit further from this de¬
velopment
tion
pro¬
will
be
a
second
program
major
estimated
will
BUY
be
relatively small in
Allegheny's total sales
this
early
interest
in
.
relation to
volume,
U.
S.
titanium may prove of great value
in the years to come. The com¬
SAVINGS
BONDS
pany's report for the third quarter
of
1951
contains
discussion
on
interesting
an
jthe
subject
of
titanium.
Allegheny Ludlum holds
-
1951. Full year operations should
in
&
production of sheet, strip, bar,
wire, forgings, etc. While produc¬
with
Three $0.50 quarterly dividends
have been disbursed thus far this
year
rate
portion
estimated at
compared
tion
better
Conv.
Cone Mills Common
promis¬
Ludlum a
are
as
indicate
471/2.
level, with common earnings
showing $4.70 per share for the
even
50%
ings at the current price, around'
nine fiscal months ended May 31,
an
4 %%
shipped East to Allegheny Ludlum
plants for further operations in the
1951
million
would
to
at
&
Marine Midland
are
of the steels
selling at less than 7 times
little
^
Heyden Chemical
Rights
com¬
some
be
Members
the
compared with $6.03 per share
reported for 1950 on the basis of
equity has improved by
250
BS
4-5000
of
Silicon
as
after
Telephone WOrth
and
estimated cost
an
steel, elec¬ Titanium Metals
trical alloys, valve steels and tool major portions of
gas
year and earnings may
neighborhood of $7.00
Current operations are at a high
i. b. Magnire & Co., Toe.
improvement
Titanium Metals Corp. of America.
National
Lead
holds
the
other
the
about $45.00 per share in
than ten years.
CAnal 6-1613
for
longer term
That
armament
actual
per annum, but due to the cdmpany's ultra-conservative account¬
ing procedures, this record hardly
9, Mass.
Teletype
:
other
and
purposes.
High
alloys are particu¬
larly important for jet engines and
for
Sales
less
Telephone
the
activities
temperature
$240
over
7-0425
Y.
Rights
wide
a
produced.
$24.00
was
N.
.
imagination is the 50% interest in
alloy content of
the past ten years averaged
$3.65
common
York
steel
of
as
forced
ferred stock at
UTILITY STOCKS
Private
per
stock,
482-483
ACTIVE TRADING MARKETS IN
Direct
used in
are
alloy¬
ing materials, notably nickel, have
At
the common
providing for pre¬
call, had a minus
equity in the company's assets of
almost $5.00 per share. Thus the
Portland, Spokane, Eugene
Mu.
20.
common
tells the full story.
At August 31, 1941,
4
processing
State St., Boston
CA.
prospects for alloy steels
during the near term and
com¬
The
sources.
While scrap supplies thus far have
been adequate, shortages of
common
equity, after providing for $2,430,000 of preferred stock at call, was
$40.50 per share. On the same
basis, the common equity in net
current
BOUGHT
the
stock
Harbor Plywood
•
this is written
148
Tel.
into
unabated for
the
v
steel
The
Stephen L. Joseph
a
company's products will continue
OREGON
•
the
greatly to increase the
pany's -earning capacity.
statements.
SECURITIES
for
serve
Allegheny
ascendency of the company
position of a highly suc¬
concern is easily discerni¬
ble in an analysis of its financial
to
cessful
WASHINGTON
56-inch
new
of $16,500,009. All of these should
growth.
variety of industries
products
from coast to coast. Tribute to the
St. Louis l.Mo,
a
strip mill and other
rehabilitation at
pany's products
mand
street
cold
penditures
outfor
primarily
request
at the Brackenridge
plant and to make additional ex¬
and
standing
1o
on
recently de¬
was
install
to
alloy
out¬
an
steel
silicon-electrical
term
near
Information
New
other
equipment
footing.
sos olive
THERMO KING RY.
the
for
at
the
Watervliet,
plant, together with
cided
the company on a sound financial
Its
U. S. THERMO CONTROL
other
of
ing with Alleghaney
major factor in the development
new aplications for existing al¬
loys and of new alloys with new
ucts.
The company's plants are
of leadership in the
industry and
Present
located principally in
shortages
ultimate reorganization in 1928.
Pennsyl¬ applications.
necessitated
a
temporary
vania and New York State. Op¬ have
Diversification and specializa¬
change in the research program
erations are not fully integrated
tion in related fields plus a con¬
inasmuch as raw material re¬ to the development and adapta¬
stant up-grading of management
tion of steels using smaller quan¬
quirements are not controlled and
finally worked off the numerous
tities of critical materials.
liabilities inherited from the re¬ pig iron and scrap are purchased
capitalization and unrealistic fixed
charges of that period were re¬
sponsible for financial crisis, loss
organization and
& Co.
at
and
tandem
in
MIDWEST STOCK EXCHANGE
Stix
(business
However, the characteristic
TWX
life
1878). In the early
was
STRADER.TAYLOR&CO.,lnC. largest manufacturer
horsepower motors
Lynchburg, Va.
equipment
facilities
new
improvements. It
prospects for
the
and
York
return,
future
Like many another company in
Commonwealth Natural Gas
related
extrusion
alloys
favorable
Ontario.
Camp Manufacturing
with
mill
hot
ossesising
p
lo¬
in Springfield,
phis,
Bassett Furniture Industries
G. Frederic
Its
are
branch offices
include a new 56inch continuous hot strip mill and
a new 56-inch reversing cold strip
ment
current rate of
and
plants
our
These
Brackenridge, Pennsylvania
plant; two new 30-inch reversing
cold
strip
mills
with
related
earnings,
af¬
fording a sat¬
isfactory divi¬
hand
cranes.
Trading Interest In
Direct wires to
com¬
Security I Like Best"
equipment at the West Leachburg,
Allegheny Ludlum
Pennsylvania plant;
a
new
3Steel, a stock selling at a rela¬
furnace electric melting depart¬
tively low price in relation to the.
and
pumps,
tric and
NY 1-1557
Mobile, Ala.
projects have
substantially
I have selected
fans,
hoists
been
'the
For "The
com¬
mercial
these
of
some
Exchange
New Orleans, La. - Birmingham, Ala.
approximately $34,500,000
pleted.
Allegheny Ludlum Steel
qualelectric
home
and
Commodity Exchanges
high
motors,
Exchange
Exchange
BROADWAY, NEW YORK 5
Tel. REctor
of
ity
Curb
St., New York 4, N. Y.
,
manufacturers
jfopONNELL&ro.
cost
already
Members, New York Stock Exchange
:
and other leading Stock and
rry
Mills).
Since 1917
JOSEPH
L.
Manager, Research Department,
Baehe & Co.,
Vernon-
Stock Exchange
York
Hflnover 2-0700
to
article
Wood b
Members New York
Members New
25 Broad
year.
similar in type
that of my
Rights & Scrip
Steiner, Rouse & Co!
of another 25^ whenever the com¬
to
last
Bought—Sold—Quoted
large
t
cialty
Specialists in
Helbig, Baron G. Helbig &
Co., New York City. (Page 2)
less
New
Alabama &
and
Selections
margin of
Allegheny Ludlum Steel—Stephen
an unusually lib¬
L. Joseph, Manager, Research
eral return. Its regular dividend
rate is $1.50 per share per annum
Dept., Bache & Co., New York
and it participates to the extent
City. (Page 2)
Ettabllshed 1920
120 Broadway. New York
are
»
Robbins & Myers, Inp.—G. Fred¬
sell the securities discussed.)
to
24
HELBIG
Baron G. Helbig & Co.,
Corporation
120
Participants
Their
i
Week's
in the investment and
Puget Sound Power & Light
BArclay 7-5660
different
a
This
interest in
as
a
new
35%
a
known
company
Continuous Metalcast
Inc.
Company,
Manufactfiring,
Metal Company, KopCompany, as well as Mr. Ir¬
S
co
i 1 1
v
N, Q. B.
American
pers
ving Rossi, previous
process,
also
are
OVER-THE-COUNTER
of the
owner
interested
in
Continuous Metalcast. Continuous
casting, which has already
applied successfully in the
ferrous
industries,
is
whereby
molten
metal
cast
slabs,
into
shapes
ready
plication
of
for
-this
a
been
12-Year Performance of
non-
process
35 Industrial Stocks
.
■
'
*-*.•**.
BOOKLET
billets
the
be
can
ON
'
'
f
mills.
Ap¬
National Quotation Bureau
Incorporated
Continued
on
r
other
or
process
•
REQUEST
~
to
page
the
45
46 Front Street
~
.•
NewYork4,N.Y.
Number 5054
Volume 174
.
The Commercial and Financial Chronicle
.
.
(1347)
Defense Preparedness as a
INDEX
Continuing Policy
Departing From Founding Fathers' Concepts
—James E. Shelton
.Cover
•
President of General Motors
General Motors President, in
which
urging
for combined civilian and
The New York Stock
production;
chines
in his recently
Herbert Hoover
out
of
all my
with
rope
one
its skill in
—Elliott V.
much
amount
same
of
a
ganization and
tiative
could win
sons
not
could
make
lasting
his
a
of
30
ing armies.
been
he
to
see
not
ond
victory in
also
a
a
tion
has
lived
only
stable peace.
such
Only five short years
thing
police action.
in
new
war
war
It is
and
some¬
since the United
the
in
fields
the
world
want
with
peace
and
a
r
must
a
disaster
the
and
necessity
being prepared.
..
form
The
best
of
government
success
many years our
and what
had little effect
on
world.
the
our
in
But
we
last
must
we
and
free
made
sibility.
this way
motes
the
government
initiative of the
pro¬
our
principles that have
country great. Only in
will we be able to carry
exploitation of marvelous
new
fortunate
all
our
through the use of
mechanical horsepower and ma¬
chines have substituted slaves of
iron and steel for human backs,
and
and
i
*An
even
Continued
1951.
May
interested in offerings
;
Our Reporter
y
soon
Prospective
on
Governments
Security
Railroad Securities
13
Securities Salesman's
Corner
page
of
The Security I Like Best;
2
5
Tomorrow's Markets
(Walter Whyte Says)
/
and
FINANCIAL
U.
S.
-
.
CHRONICLE
50 Congress Street, Boston 8
Glens Falls
Hubbard 2-8200
1-5
-
Schenectady
1
Drapers'
Gardens,
DANA
E.
C.,
Hoving Corp.
Eng-
Stromberg-Carlson
Copyright 1951 by William B. Dana
Company
Reentered
WILLIAM B.
London,
land' c/0 Edwards & Smith-
Patent Office
COMPANY, Publishers
Park Place, New York 7, N. Y.
REctor 2-9570 to 9576
WILLIAM
D.
Publisher
SEIBERT, President
RIGGS, Business
Manager
Thursday, October 11, 1951
Members New York Curb Exchange
Teletype—NY
Chicago
Di-Noc
46
ary
25,
as
1942,
second-class
at
the
post
"matter Februoffice
at
1879*
„
,
,
.
Whitin Machine
New
Yo2*> N- Y- under the Act of March
8,
Works
„
Subscription Rates
Spencer Trask & Co.
•
-
.
56
COMMERCIAL
WILLIAM DANA
Albany
Dictograph
40
HERBERT U. SEIBERT, Editor &
.
Collins Radio
50
The State of Trade and Industry
'
preferred stocks
HAnover 2-4300
Baker-Raulang
44
Securities Now in Registration
i
Air Products
53
38
25
York Stock Exchange
24
Offerings
prosper-
High Grade Public Utility and Industrial
Members New
Exchange PL, N. Y. 5
5
Public Utility Securities..
Reg.
25 Broad Street, New York 4
40
55
Published Twice Weekly
are
MACKIE, Inc.
8
Wilfred
Reporter's Report
The
We
&
HA-2-0270
12
Washington and You
on
Singer, Bean
42
Our
American
nati, O., Oct. 4,
6
Funds
Observations—A.
,
our
Bargeron
49
1
;
by
•
Teletype NY 1-1825 & NY 1-1826
defense
shouldered
address by Mr. Wilson before the
Ordnance Association, Cincin¬
>
25
NSTA Notes
program on a grand
scale, and it must be on a rela¬
tively grand scale if it is to be
effective, is a great load to be
through better organization
cooperation in the use of ma-
Mines, Inc.
Portsmouth Steel
.
people.
Program
Superior Oil
8
....
News About Banks and Bankers.....—-
Load of Grand Scale Defense
A
Corp.
National Alfalfa
6
...
Mutual
proving the standard of living of
Americans
56
From Washington Ahead of the News—Carlisle
again make rapid progress in im¬
sci¬
Haile
40
Indications of Business Activity
enough not to have
can
Canadian
n
Einzig—"Rearmament and the British Election"
undermining«
national economy. And if we
entific discoveries and inventions.
Cover
Dealer-Broker Investment Recommendations
without
are
ment of natural resources, and the
Dev. Res.
-
American
another all-out war, we
r
(Editorial)...
Coming Events in Investment Field
flexibility
our
mil¬
lions, not the dictatorship of the
few. It has produced an ideal en¬
vironment for the rapid develop¬
31
Canadian Securities
our
future
ate
30
success-
the defense burden in the immedi-
of
Inflation Spur
Business Man's Bookshelf
competitive society and must
great power in the world and
with it a position of great respon¬
type
as
Bank and Insurance Stocks
strong
adhere to the
of
Our
As We See It
is how
the
of
Philadelphia and Los Angeles
Associated
is forced
war
preserve
initiative
years
position
50
a
event
Necessity Urged by Railroad
Regular Featuret
In solving this problem
us.
Teletype NY 1-3370
Direct Wires
'
peace,
a
war
a
Broadway, New York 6!
BO 9-5133
13
FIC Banks Place Debentures—.
and at the
nation in a
the
fight
the
upon
did
the rest of the
nation has achieved
keep
to
fully in
history.
For
nation was small,
preserve
economy,
position
in
remote and poor,
time
same
great success, probably the most
brilliant
and
virile
and
us
world
promote
maintain
we
have in the United States has been
a
to
Incorporated
61
___Cover
founded to
was
confronts
lem that now
31
24
High Taxes Seen
power
of
Martin, Jr
President
tic
any
Reeves Soundcraft
24
_
Cincinnati Exchange Allows NASD Members Commission
Split 29
to be aggressively used to
the detriment of others. The prob¬
a
but
war,
deterio¬
not
Investment—Roger W. Babson
promote the life, liberty and pur-1
suit of happiness of its citizens/
thinking American
realize the possibility of such
rate into
will
Economic Security—Wm. A. Reckman.
Belt Conveyors as War Defense
stable
third disastrous world
action
vs.
Foresees Increased Mortgage Financing During 1952
military or imperialis¬
aggrandizement of the nation,
nor
the development of superior
this
an
Convention ..A
not for the
The country
pie.
22
as
J.F.Reilly&Co.
ever-improving
an
Portsmouth Steel
21
relatively
Enemies. The free world still hopes
that
20
American Bankers Association Holds 77th Annual
responsibilities
world
our
economy
every
confine the
and
Cocke, Jr
Our Federal Reserve System—Wm. McC.
resources
They
making
are
restrict
Jessop Steel
18
,
standard of living for all the peo-
to
Our Economy
of
effort
fight¬
ing. They are not using all their
resources to vanquish their known
gression,
Haile Mines
Inflation Bias—Arthur A. Smith 16
an
Malott
continually have to
Americans want peace, not war.
Nations, while trying to stop ag¬
14
;
Economic Freedom
relatively greater.
in
Primary Trading Markets
H
.
System Has
W.
Woodlands
much smaller. During this
period the increasing wealth
of our nation have
very
made
Some call the
10
_
Air Power and the Future Air Age—Robert E. Gross
stand- *
a
made
have
again fighting and dying far away
a
—Deane
world war, but transportation and communication
same
Korea
not
invention
and
after shooting stopped in the sec¬
ond
world
war
Americans
are
from home.
arms or
nonproductive load.
During the last 50 years science
second failure to achieve a
Hutton
U. S. and the World Today—Erie
This contributed im¬
the rapid develop¬
since the na¬
to
did
carry
a sec¬
10
Replace Term "Stockholder"
Tough Job!—Hon. John W. Snyder
a
Our Monetary
ment of the country,
right,
since
Wilson
portantly
ago
have
to
Should
Bankers Must Fight to Preserve
have spent
we
nation's wealth for
than
years
WHitehall 4-6551
9
...
relatively small amount of the
conclusions
seem
.
WALL STREET, NEW YORK
Cinerama Inc.
However, dur¬
country's existence
reasoned
Owner"
We Face
ing most of the 175 years of our
fortunately,
more
Obsolete Securities Dept.
99
have great
in two world wars.
Un¬
peace."
can
nothing about the future.
7
___________________
—Albert W. Thorpe
people
our
military power
when we are forced to organize
and use it. We have proven this
we
great wars, but
it
of
We
obsoletes, but
Should Dow-Jones Industrial Averages Be Revised?
dustrial development and the ini¬
the valor of its
C. E.
"Share
nation, but due to our great in¬
spirit
obsoletes.
6
The Outlook for the Coal Roads—H. G. Smyth
military
or¬
and
Bell
—Edward F.
been
never
about
of
other nation.
any
We have
everything about the future,
nothing
Telephone:
human effort than have the people
with
America
the
and
4
Gas—Lyon F. Terry__
Are We Going Totalitarian?—W. Alton Jones
accomplished
have
with
more
"I came
experiences in Eu¬
absolute conviction.
published memoirs said,
4
.
knows
Savings Banks Should Invest in Some Common Stocks
for all concerned.
is workable and sound
Cobleigh
Exchange—George Keith Funston
The Outlook for Natural
Concludes plan
dual-type operations for ten years or more.
■>
3
know everything about
for total war production; or for total
civilian production.
Calls for agreements between govern¬
ment and manufacturers of military items to preserve these
defense
Continuing Policy—C. E. Wilson
a
A Golden Autumn—Ira U.
establishment of dual-purpose plants
be used three ways, viz:
can
continuous defense prep¬
a
"THE MEDIUM
*■
Defense Preparedness as
aration program, proposes
page
AMD COMPANY
We Are
By C. E. WILSON*
UV/
;?
llCHTlllSTflll
B. S.
Article9 and Newt
3
Worcester
Every -Thursday
(general news
and ad-
vertising issue) and every Monday: (complete statistical issue — market quotation,
records,: corporation news, bank clearings,
state and city news, etc.).
'
Other Offices:
135 South La Salle St.,
Chicago 3, 111.
(Telephone: STate 2-0613);
subscriptions
in
United
States,
and
U.
Members
of
Pan-American Union, $45.00
per year;
in
Possessions,
Dominion
Territories
of
Canada,
Other Countries, $52.00
$48.00
fcer
S.
Bought
—
Sold
—'
Quoted
year.
per year.
Other Publications
Bank and Quotation Record — Monthly,
$30.00 per yearj (Foreign postage extra.)
Note—On account of the fluctuations in
the rate of exchange, remittances for foreign subscriptions and advertisements must
be made in New York funds,
THEODORE YOUNG & CO.
40
Exchange Place, New York 5,
WHitehall 4-2250
N.Y.
Teletype NY 1-3236
5
Defense
Preparedness
^jux%vmtfm£!VftMXCV-
Chronicle
...*>W
The Commercial end Financial
Number
Volume 174
he i. f isxj^iestei^ite^s^'bwaw jttiWfiiaJWSi t:J.
(1347)
INDEX
as a
B. S.
Articles and News
Continuing Policy
Page
AMD COMPANY
We
IX* C. E. WILSON*
Are
Departing From Founding Fathers'
—James E. Shelton.
Concepts
'.Cover
•
_.
"THE MEDIUM
rrradeut of Central Motors
Defense Preparedness
General Nbtori
Prew4enf,
m
urging
continuous defense prep¬
a
establishment of dual-purpose plants
wa?sf vii: for combined civilian and
bt #1*4 three
can
The New York Stock
production; for total war production; or for total
civilian production.
Calls for agreements between govern¬
ment and manufacturers of military items to preserve these
out of all
cutty
m
Eu¬
my expert**n\c* in
with
rope
hi*
memoirs tanl; ' X rn-ne
one
absolute etmv at ion,
in or*
the
—Elliott V.
ration, but due to
military
a
gunuatinn andl
the v*lor of us
tiative
sons
o>u'i win
great Vvms.b ut
couhb not
it
make
Idling
when
and
of
have great
we can
we
military
to
in two world wars.
reasoned
SO
than
more
been
portantly
right,
since
has
lived
C. E. Wilson
he
to
riot
ond
victory in
also
a
a
only
a sec¬
war
are
not
continually
have
to
such a nonproductive load.
During the last 50 years science;
invention
and
the
in
have
the
made
fields
world
resources of
and
from home.
thing
in
new
mar
u some¬
our
They
want
peace
*
this
action will not deteuo-
rate
into
a
but any
war,
thinking American
must realize the
a
disaster
being prepared.
best
.
a
great
and
same
probably the most
in factory,
for
our nation was smalt,
time
position
success
preserve
the
keep
fight
to
war
a
world.
of
great
with it
.
in
But
the
last
nation has achieved
our
and
position of great
a
rcspon-
motes
type of government
the initiative of the
pro¬
mil¬
lions, not the dictatorship of the
few. It has produced m ideal en¬
vironment
for the rapM develop¬
ment of natural resources, and the
exploitation of marvelous
national economy.
are
fortunate enough
through
mechanical
hcrseocmer
chines
4 iron
and
U*e
and
have substituted
*An
address
American
use
Mr.
by
IMW* ih#
Ord»**c*
nati, O., Oct. 4,
of ma-
i 'am.
scale, and
-
tively grand
effective, is
shouldered
scale
a
on
be
if
it
by
our
grand
Continued
on
—
ittere$ted in offerings
is to
to
be
be
page
cf
•
Chirac
-
Hubbard 2-S200
Ci-kh* rait#
M'
•
IchrnecUdy
Air Products
53
—.
38
Baker-Raulang
13
-------
44
Collins Radio
':X'
■..
Registration.-—--—50
Dictograph
(Walter Whyte Says)
40
■
Twice
Weekly
COMMERCIAL
FINANCIAL
U.
S.
CHRONICLE
DANA
Park Place,
:
COMPANY,
,
London,
E.
C.,
Hoving Corp.
Eng-
Company
25,
ary
as
1942,
second-class "matter Febru-
at
the
post
office
at
l879-
to 9576
„
Whitin Machine
New
York> N- Y-» under the Act of March
N. Y.
Stromberg-Carlson
by William B. Dana
1951
,
Reentered
.
Publishers
New York 7,
REctor 2-9570
.
'
Gardens,
Copyright
Patent Office
-
Drapers'
land' c/0 Edwards & Smith-
and
.
WILLIAM B.
56
1
i
-
Worcester
WILLIAM
•"
.
,
'.
.-
SEIBERT, Editor & Publisher
DANA
D.
■
SE1BERT, President
RIGGS, Business
.../vr
Manager
8,
Works
,
Subscriptions
'Possessions,
in
United
Territories
of
Canada,
°ther Countries, $52.00
/Thursday, October 11, 1951
States,
and
U.
S.
Members
of
Pan-American Union, $45.00
Dominion
:.-7.,'
"■-{
"•
Di-Noc
46
-
Subscription Rates
5$ Congress Street, Boston 8
TK***w~*rr
Albany
24
—.
Washington and You
'?
Member* Nev York Curb Exchange
HAnvnt S-4JQ#
Governments
Tomorrow's Markets
Spencer Trask & Co.
f ork 4
on
2
WILLIAM
York S*'Xk
5
5
HERBERT D.
Neo
Exchange PL, N. Y. 5
*
:A.
PREFERRED STOCKS
40
55
The Security I Like Best__
25
Members
MACKIE, Inc.
prosper-
High Grade Public Utility and Industrial
25 Broad Street, New
&
HA-2-0270
8
May_.
The State of Trade and Industry
Reg.
:
Wilfred
!>■/•.:
v
I
l
Singer, Bean
12
—.
Security Offerings—
Published
are
—-J
Public Utility Securities—
The
We
6
49
Securities Salesman's Corner
m*
tVSt,
25
rela¬
a
load
great
even
a
on
Portsmouth Steel
8
42
Securities Now in
program
it must
National Alfalfa
6
Reporter's Report
Prospective
Program
A defense
—
——
Railroad Securities
Load of Grand Scale Defense
ma¬
Notes
Our Reporter
all our people.
*ia*es of
!
,
Funds
Observations—A.
proving the standard of living of
of
and steel for human barks,
through better orgaruiaUon
cooperation in the
and
i
the
——
56'
46
«
again make rapid progress in im¬
Superior Oil
Haile Mines, Inc.
Teletype NY 1-1825 & NY 1-1826
I.NSTA
we
Canadian
—11
—
News About Banks and Bankers--
soon
can
Cover
—
—
Indications of Business Activity.
Our
V
Dev^ Res. Corp.
From Washington Ahead of the News—Carlisle
Bargeron
not to have
another all-out war, we
entific discoveries and inventions,
Americans
And if
Associated
:
?
Einzig—"Rearmament and the British Election"
Mutual
.
Philadelphia and Los Angeles
31
Dealer-Broker Investment Recommendations
undermining
our
sci¬
»-ew
without
future
ate
,■
Coming Events in Investment Field--———
success¬
this way will we be able to carry
the defense burden in the immedi-
30
Canadian Securities
strong
Teletype NY 1-3370
Direct Wires
V.
Business Man's Bookshelf—.
American
our
Broadway, New York 6
BO 9-5133
13
Inflation Spur
Bank and Insurance Stocks
competitive society and must
adhere to the principles that have
made our country great. Only in
Sibility.
Our
of
61
29
as
As We See It (Editorial)--.
free
in the world and
power
initiative
sears
position'
">0
a
'V
-Cover
94
"■■■'
fully in the event war is forced
remote and poor, and what we did ''upon us.
In solving this problem
had little effect on the rest of the we must preserve the flexibility
many years
Reilly&Co.
Incorporated
i
Regular Features
peace,
a
31
FIC Banks Place Debentures
and at the
nation in a
economy,
Martin, Jr.
High Taxes Seen
is how
us
world
promote
virile
and
success,
brilliant
to
maintain
The
form of government we
have in the United States has been
confronts
Reeves Soundcraft
24
Cincinnati Exchange Allows NASD Members Commission
Split
with a stable
ever-improving
to be aggressively used to
the detriment of others. The prob¬
now
22
Economic Security—Wm. A. Reckman-
vs.
Investment—Roger W. Babson
as an
___
development of superior
lem that
Portsmouth Steel
21
Foresees Increased Mortgage Financing
During 1952
power
possibility of such
the necessity of
and
the
nor
Jessop Steel
20
—
Belt Conveyors as War Defense
Necessity Urged by Railroad
v
President
tic aggrandizement of the nation,
third disastrous world
Cocke, Jr
#4, Convention
relatively
Nations, while trying to stop ag¬ economy and an
gression, are making every efiort standard of living for all the peo¬
to restrict and com ire the tight*?":
ple. The country was founded to
ing. They are not using all their promote the life, liberty and pur¬
resources to vanquish their known
suit of happiness of its citizens,
4 enemies. The free world still hopes not for the
military or imperialis¬
that
_
J.F.
Americans want peace, not war.
sir.ee the United
Haile Mines
American Bankers Association Holds 77th Annual
relatively greater.
Some tall the mar in
police action. It
a
Malott—
16
Economy
of
responsibilities
world
made
14
18
Our
Our Federal Reserve System—Wm. McC.
nation have
our
again fighting and dying fur sway
Korea
W.
^Woodlands
short years very much smaller. During this
in the sec¬ same period the increasing wealth
Americana
11
Economic Freedom
develop- /
since the na¬
carry
second failure to achieve a
world
did
Primary Trading Markets
Air Power and the Future Air Age—Robert E. Gross——
rapid
the
to
WHitehall 4-6551
Revised?
Thorpe
U. S. and the World Today—Erie
..
world war, but transportation and communication
stable peace. Only five
after shooting stopped
ond
tion
see
10
Tough Job!—Hon. John W. Snyder
a
—Deane
stand- '
arms or
ment of the country,
Dept.
10
Hutton
Bankers Must Fight to Preserve
This contributed im¬
ago
to
Replace Term
relatively small amount of the
nation's wealth for
ing armies.
Securities
STREET, NEW YORK
9
Our Monetary System Has an Inflation Bias—Arthur A. Smith
However, dur¬
have
years
seem
a
WALL
power
organize
Vn* ing most of the 175 years of our
foitunately. country's existence we have spent
his
99
Cinerama Inc.
We Face
peace,"4
eonduMur.s of
F.
—Albert W.
have proven this
We
Obsolete
Smyth
Should
Owner"
Should Dow-Jones Industrial Averages Be
people
our
forced
are
it.
use
We
"Stockholder"
our
spirit
future,
everything about obsoletes, but
nothing about the future.
7
—
"Share
great in¬
dustrial development and the ini¬
and
the
obsoletes.
6
The Outlook for the Coal Roads—H. G.
—Edward
been
never
Bell_-_-
about
about
amount
same
other nation.
We have
Gas—Lyon F. Terry
everything
nothing
Telephone:
human effort than have the people
of any
and
4
Are We Going Totalitarian?—W. Alton Jones.
much
of
accomplished
have
with
more
with
Au'terir^
its skill
thines
4
„_
knows
Savings Banks Should Invest in Some Common Stocks
dual-type operations for ten years or more.
Concludes plan
is workable and sound for all concerned.
■Herbert Hoover in
Cobleigh
Exchange—George Keith Funston
The Outlook for Natural
«
published
3
know
defense
.
Continuing Policy—C. E. Wilson
as a
A Golden Autumn—Ira U.
aration program, proposes
which
3
Bought
per year; in
$48.00
Iper
year.
—
Sold
—
Quoted
per year.
*
Every -Thursday
yertislng
(general
news
and
ad-
"
(
Other Publications
issue) and every Monday! (comBank and Quotation Record — Monthly,
plete statistical issue — market quotation, $30.00 per yearj (Foreign postage extra.)
records, corporation news, bank clearings,
Note—On account of the fluctuations in
state and city news, etc.). •
■ '
the rate of exchange, remittances for forOther Offices:
135 South La Salle St.,
eign subscriptions and advertisements must
Chicago 3, 111. (Telephone: STate 2-0613);
be made in New York funds,
THEODORE YOUNG & CO.
40
Exchange Place, New York 5, N.
WHitehall 4-2250
Y.
Teletype NY 1-3236
4
(1348)
The Commercial and
Financial Chronicle
world
A Golden Autumn
A fresh
monetary
forthcoming book "Expanding Your Income"
plus
few nuggets of comment
a
\
I
and
do
over
me
our
bringing out more gold to meet which ones
demand, stabilize the price, or promise?
are
at
cow"
earth.
least
This costs money.
is
brought from
golden calf to shaft mining and
many
of our gold mill; or from
most profound dredging.
Either
f i
n
a
n
i
c
a
1
thinkers.
costs for
have
When
their
decade.
have
around
been set
down,
you and I, inn o c e n t
lay¬
Coblcigh
often
men,
lr
away
i
to
as
why
gold,
switched
$35
in
an
ounce;
has stood like
tawny Gibraltar
for" 17 long years. Not that
this
price hasn't been sniped at a little
—for
it
has.
So
called
industrial
and artistic
users of gold have bid
for the fringe
supply of this hon¬
ored mineral, so
on
as
such
a
1950
cold
several
forth
shares,
the
stream beds by
there
way,
are
some
Also, in
80%
a
in
the
standard mine
of gross income goes
and the price of labor,
labor;
you well know, has risen im¬
portantly.
Canada has taken note of these
Emergency
Gold Mining Assist¬
(which is up for re¬
newal or modification at the end
of this year).
Last year it cost
Canada roughly $2.50 an ounce for
about 3,900,000 ounces produced;
and the subsidy,
frankly, is a sop
to
the
high-cost producer.
It
Act
ance
.
solves few problems for the lowcost
mines, and doesn't enter the
for Kerr-Addison to $16 for New
Dickenson. It has however .been
In
Canada,
if
you'll
eyes over the Toronto
see
up.
of
cast
the
offi¬
adverse
comment.
Mean¬
York
am
public
a
priceless
assets.
To
sands of
to
ounces
make
share.
Also
the
net
closely enough the ore
reserves, the ounces per ton of
ore, and the operating costs per
ton milled. These vital
figures are
Kerr-Addisop ranks
the
largest and
as
lowest
of
one
cost
pro¬
owned), New
Calumet
(28.76% owned), but
Connemora
gold
mine
on
was
nies,
life.
the
G.
Keith
dealing
its
use
mo¬
with
a
the
services,
a
people
companies
and
as
economics, I had
More
recently,
I
have
companies
each
month,
and
up
insurance
their
banks
surplus
down, and
adjust their lending poli¬
downward while I go back to a
monograph the
in cies,
depending on the daily level
non¬
attributed to me a year
ago in Southem
Rhodesia, entirely of New York Stock
monetary gold ensued, but
then, which a flat prediction appeared, owned. Just the
Exchange
in Paris,
shares of publicly quotations.
I have observed inprices, represented by a that the official
price of gold dealt-in companies, now in
2.2 pound
port¬
gold bar, hit the Left would be
raised to $45 by August
*First public address made
folio/have a market value today
Bank equivalent of
by Presi¬
$47 an ounce. of 1952.
dent
of about
art of this
$6.50 per share of Fro¬ honor Funston, at dinner given in his
price push reflects a
by members of the New York
Well, that still seems possible, bisher. Here indeed is a wide
demand for gold; and
di¬ Stock Exchange, New York
Citv, Oct.
part, a mis- and if such a view has a
shadow versity of gold output, secured 3, 1951.
rust of the value of
the franc.
of merit, certain well
chosen gold presently at well below the
The truth is we
year's
don't
stocks
wobble in the world
price of
are now in a
really
buying range. high.
now whether this
de facto rec- The
theory that you must await
Gold is
gnition of a higher gold
eternally popular, and
a
price
depression before buying gold if we can't own it
in
in bars or coin,
certain areas
by the Interna- shares has
slight validity today, many of us will look for it under
ional
Monetary Fund will, by when
every government
in the ground through share
purchase.
Number of
Truly no one could rightly ex¬
Outstanding
Kerr-Addison
___
Elder Mines
Giant Yellowknife
Value of 11)50
Shares
Company
Dome Mines
Produetion
2,000,000
4,730,301
2,744,055
4,000,000
Net
j
Current
$ .95
$1.00
.2352
$12,211,153
$
855,391
$ .043
.1592
$19.65
$18.25
$
.61
$ 3,899,923
$.012
.2187
$12.50
for
you.
7:
Memo
Foreign Exchange
—
Foreign Securities
Foreign Coupons
and
NY
Members
Scrip
Stock
York
Curb
York
Chicago
Telephone HAnover
2-5590
Jong
&
Co.
NEW YORK
5, N. Y.
in
three-quarters
and
trucks
made
electric
power,
ac¬
of total railroad
total
domestic
miles,
than
and
half
air
line
accounted
of
all
meat
sales.
these figures
me,
"the
of
fair
a
are
impressive.
heart
prise" is
corporations
York Stock
over¬
Surely
American
enter¬
description of
listed
the
on
the
New
Exchange.
7
Too much credit for the
present
high position of the Exchange and
the importance of its
•
current pro¬
gram
cannot be
given to
my
dis¬
tinguished predecessor, Emil
Schram. It was Emit
who, day in,
day out, throughout the 10
years
of his
Presidency,
public
stood before the
as an
skilled
honest, forthright, and
interpreter of the Ex¬
change's obligations and its func-
Continued
on
page 46
Development,
LEAD-ZINC
Analysis
available
John R.
on
request
Lewis, Inc.
1006 SECOND AVENUE
St., New York S, N. Y.
SEATTLE
BOwling Green
1-1862
Exchange
New
37 WALL STREET
of
passenger
for more
9-0040
Teletype SE 105
SENECA OIL COMPANY
Exchange
New
and security dealers
York
Cotton
Commodity
de
billion
ELiot
3040
H. Hentz & Co.
New
Albert
$9
operating revenues, refined
90% of the nation's crude
oil, flew
request
Teletype
1856
New
Serving banks, brokers
on
BUTLER, MOSER & CO.
44 Wall
Established
in
na¬
TUNGSTEN•OIL■GOLD
,
international arbitrage
all
Texas Engin. & Mfg.
low shares
bought carefully today
might make this a golden autumn
.2027
the
Limited
a world price of
gold below
$35 in the foreseeable
future; and
it could go lots
higher. If so, yel¬
Price
of
Placer
Collins Radio
pect
per Ton
$ 6,250,497
v
Ounres
per Share
the
businessman, whelmingly
seen
revalue
cars
90%
trustee, and a corporation di¬
rector, I have come to realize that
fabric.
billion
of
gross
of
knowledge
the free flow of
capital made pos¬
sible
by the Exchange and its
daily quotations are the warp and
woof
of
the
nation's
business
total
State
produced
To
as a
$6
over
and
all
77%
/ 7" ;77"H":^77v7
a
paid
counted for 93%
I had heard it described
the heart of American
enter¬
,
for
country, shipped 86% of all
finished steel
products, generated
of the functions of the
Stock Ex¬
as
Exchange,
Board
Orleans
And
■'
tiiooiS-
of
Cotton
other
A
Inc.
Trade
V. '>
opportunity
')<>>'>
'»
CHICAGO
"
(
-4
liriW
i
DETROIT
in
growth
Crude Oil
'
'
plus free
request
Telephone LO 3190
>
:
Teletype RO
samples
of
complete
service, send $1 to cover han¬
dling costs to Dept. B
Powers Bldg., Rochester
14, N. Y.
.KO'
PITTSBURGH
7 GENEVA, SWITZERLAND
on
GENESEE VALLEY
SECURITIES CO.
ExchangeBldg.
!
invest $1 to inspect
development in successful
stock timing?
For this explan¬
atory TIMING FACTOR folder
you
new
paying
Information
NEW YORK 4,
Teletype NY 1-1401
dividend
SAMPLES
Will
Exchange
Exchanges
—
N. Y. Cotton
cuss
Exchange
8"
_/■
of
listed
in this
change.
prise.
these
accounted
They
of
few
student
a
some
1950
year
taxes—half of
the total paid by all
corporations
in the nation.
of probity and
solvency. In all this
I take great
pride.
a
few
a
total.
Federal
business
small stockholder in
York
economic
you
distributed
They
public and which
be found
wanting. It is
composed of members and mem¬
ber firms with an
excellent record
a
the
tion's
record
must not
As
New
our
highlights:
They
critical
a
the
dividends, two-thirds
constantly weighed in the balance
by
companies
profits after taxes of $12 billion—
half of the nation's
corporate total.
To
tion's market place with
of
give
me
corporations
these three principles
deeply devoted.
The
Exchange today is the na¬
who
that
Exchange, in
Funston
am
fair
the
Exchange represent
a
Let
In
prise; and, third, the profit
of
much
the
and
Stock
of
dom of enter¬
I
securi¬
staggered me. They
dramatic picture of
the performance of these
compa¬
present
ideas
first, pri¬
tive."
for
in terms of production
and assets
—how great a part
they are of the
national
economy.
The findings
property;
second,
free¬
not observe
found in most annual
reports; and
you must analyze and
compare
them to succeed in the gold rush.
on
vate
does
newcomer
how
listed
repre¬
sent the Amer-
life:
demand
which I had
requested, did I
vey
learn
which
per
public
on the
Exchange.
Only lately, though, after hav¬
ing looked at the results of a sur¬
cornerstone of
must be produced
significant
any
the
ties reflected
its
way
compre¬
stockholder population.
to
Stock
can
and
consumers
companies
gear
their
plans for financing and
expansion
privileged
institution
New
three
stocks, however, as
they seldom note how many mil¬
lion shares are
outstanding; and
consequently
how
many
thou¬
also
are
dustrial
foundedon the
penny
(33.75%
of
job ahead
blazing
-
Exchange
Most people expect too much
the
duction since 1945; but
As an across-the-board commit¬
analysis
shows this is due mainly to mines ment in
gold, one of the most
producing other metals, and bring¬ attractive is
probably Frobisher
ing in new gold as a sort of lucky Limited. The
4,478,956 shares
ters
trail
dozens of goldies from pennies
nibbling at newly mined gold, and
at above
ceiling prices, on Sept.
here,
29, r the International
Monetary strike extra!
selling around $4.30, give you. a
Fund gave its
blessing to what
By now I have embroiled my¬ call, not only on such fine
Ca¬
was
happening anyway. It drop¬ self deeply
enough with certain nadian properties as Giant Yel¬
ped moral restraints on
any of monetary economists so that I can lowknife
(37.83% owned), United
its 50 members from
selling "in¬ sit back and await their sage let¬ Keno Hill
dustrial" gold at above
cial
price.
A
little
the
Bill
Martin,
your
people, the centuries-old
Those who have argued that
duce at the rate of
$35
$9,000,000 a
notion that, in times of
inflation, is about the right price, have year. (All figures Canadian dol¬
ownership, of gold is the best pointed to increased
'
world pro¬ lars.)
ecumenical
quote
List, you'll
some
this
up
possessing
bales.
pro¬
hedge.
Recognizing
head
owners, who
of nation's
census
of
of me, I find that I
to
"The
small
fact, in the year a per-ounce basis, subsidy boun¬ your shopping list are shown in
bought 6/7 of newly ties ranged, in 1949, from 47 cents the accompanying tabulation.
at either the official
at premiums
running to
dollars
an
ounce.
And
hensive
Taking stock
permits
in
Exchange
Announces Exchange is
undertaking first
President of a
decade
ago:
purchase
Stock
new
stockholding
taxpayers.
ana Land.
Benguet, a Philippine
outfit, seems favored around 1 %,
perhaps, in part, because its price
broadly hinted that the subsidy ducers with large ore reserves;
there's a nasty
impression that has, in some cases, resulted in Dome is an old standby with an
this gold has not been
bought for bringing to mill high cost ores, important side line in oil proper¬
earrings and stick pins; but
by and permitted the saving for high¬ ty; Elder, a comer with steady
the
old
fashioned common,
or er gold prices (and perhaps
days upgrading of its ounce per ton
garden, variety of hoarder. You of no
subsidy) the richer or more production; and Giant Yellowjust can't drive out of the
knife is
minds accessible ores.
expanding its mill to
of
nation of
best
,,
Land Trust and, I believe, several
tens of thousand shares of Louisi¬
last
55%
,,
hard
gold
or
•
Typical worthy Canadians that
persistently, and earnings
picture
of
incidental
deserve current consideration for
world-wide basis, that, gold
producers, like Noranda. On
they
mined
price,
a
by
separated by a
still baf¬ facts, and worked out a subsidy
the most for its gold mines through its
1934 from $20 to
which latter price
a
as
go
widely respected commodity in
the. world, has a price mysterious¬
ly
to
ore
depths
the
Gold
machinery and these costs
risen
opinions
fled
hold
York
President declares it is faced with
vital job
of
broadening base of company ownership, and that
many
leading companies are doing magnificent work
in
encouraging
monetary experts,
'
hope they don't hop all crystalize a permanent
upward
In the U. S. you can latch on
for today's
move away from
article, be¬
the $35 anchor. to Homestake at current levels.
cause, you see, My own belief favors the latter
U. S. Smelting matches good Alas¬
I'm
going to alternative.
kan gold production with a won¬
talk about
After all, gold, like any other
derful
oil
portfolio
including
gold,, which is mineral, has to be taken from the
103,000 shares of Texas Pacific
or
U.
President, New
Institution's
the
"sacred
Ira
right—higher, that is.
Exchange
By GEORGE KEITH
FUNSTON*
So if your portfolio should now
be
brightened
by
gold
Some of the most learned of
The New York Stock
Convertibil¬
price
is
mining shares.
economists
structure.
Thursday, October 11, 1951
..
its
base is sorely
needed, everywhere.
It won't appear unless the
certain gold
on
in
-
ity into gold may not soon return
—anywhere—but more gold as a
look at the price of
gold for filling treasuries and
cavities;
gold
more
treasury to buttress its credit and
By IRA U. COBLEIGH
Author of the
needs
.
ANALYST INSTITUTE
154 Nassau Street
New York
38, N. Y.
;
.
Number 5054
Volume 174
.
William T. King With
e
Production
Steel
The
State of Trade
BOSTON, Mass. — William T.
King has become associated with
Index
Commodity Price
Price Index
Food
Production
Auto
and Industry
{Special to The Financial Chronicle)
Trade
Retail
Business
Observations
White, Weld I Ce.
Electric Output
Carloadings
White,
Failures
shire
J
Weld
By A. WILFRED MAY
Co., Ill Devon¬
Mr. King was for¬
&
Street.
—
the Rockland-Atlas National Bank
of Boston,
past week marked the fourth of uninterrupted advances
in over-all industrial output for the nation at large. However, not¬
withstanding
What
in the bond department.
market
established
the
while automotive
gains,
and
production continued to recede.
will
Georgian
is
expected to do the same thing this year.
There will be windowdressing protests from some Administration sources but others
are privately preparing to grease the skids for another round.
The pattern is expected to develop about like this:
(1) the
been
demand
will
union
Steel
to
book, produce, and bill
been greater than
Steelmakers
it).
But
she
"The
Iron
the
\
.
reason
Ford
was
rolling
week because of shortages
inventory and factory equipment rearrangement, is not
resume
about
18%
to
units from
22,385
year
and
Mr. Ball for the
up
new
during the month.
higher than July levels, after seasonal adjustContinued
on
page
44
October 9,1951
1
-
MR.
are
pleased to
GEORGE H.
North Fourth
past 40 years has
Mercantile Trust
Era" boom.
of
as
Manager of
our
offices
with
—
to
J^cw
York, Stock
•
'
♦
•*
Exchange
7\ew. 7ork Curb Exchange
52 Wall
Street, New York (5)
•
'
•
gaining
of trustees' investing re¬
to six additional states, bringing
Continued on page 12
j
;
Coldbrook
on
Have You Read
engage
Co., and Hayden, Stone & Co.,
New York City.
"Should You
in
appearing in the current issue of
Exchange Member
THE
CHICAGO, 111.—The Executive
of the Midwest Stock
Committee
Lee
It's
No
Union
of
Commerce
the
more
Carlson, Jr., has been
added to the staff of P. W. Brooks
Inc., 1570 Main Street.
#
Fenner k Beane
of Investment Securities
Securities and Commodities
Underwriters and Distributors
t
Brokers in
(Special to The Financial Chronicle)
E.
than a
anybody you think
about this stock and bond business.
Merrill Lynch, Pierce,
Brooks
of why the owner¬
Trading Department
Stock
SPRINGFIELD, oMasS;!*- Ray¬
& Co.,
seen
single article, of course, can answer more
should know
Miller &
•
mond
explanation we've
few
Building,
Midwest
With P .W.
best
questions about investing.
But it's recommended reading for
Chronicle)
Fennell is with Hayden,
the
READER'S DIGEST
ship of common stocks is important — important, natu¬
rally, to any individual worried about protecting his
extra money but important in a much more basic sense
to America at large . . . to our whole system of living.
A. Huey,
Hayden, Miller Adds
Co.,
Buy Shares
in America?"
Exchange.
Members
closing that gap in its all-round
Prudent Man relaxation
Frank L.
in the securities
business. Mr. Childs was formerly
associated with A. M. Kidder &
Road
members
VAX ALSTYNE, NOEL & CO.
,
share,
equity
;
CLEVELAND, Ohio—William A.
Institutional Department
f.
Childs has formed F. L Childs &
(Special to The Financial
•
•
American
respectability.
Chiles, Huey
Company, Omaha, Nebraska.
us
SEC
which has always been more
lowly regarded than its counterpart in the traditionally stockminded European countries (as measured by dividend and earnings
The
F. L. Childs Co. Opens
WILMINGTON, Vt.
to
In the good old
strictions in 1951 alone has spread
ARMSTRONG
has become associated with
in the past.
Streets.
ship
that
announce
Million"
pre-1900 days
of the North¬
ern
shares in the
nation's railroads and industrials were in large part looked on as
mere
convenient vehicles for rigged^ gambling operations. And
midst the dramatic pool manipulations of the Livermores and the
Percy Rockefellers in the Roaring 'Twenties, the equity share ap¬
peared in the public eye as a glamorous betting counter rather
than as an appraisable stake in corporate ownership.
Radical and basic change of gll this, with steady seasoning,
of the investor as well as the corporation, was ushered in with the
SEC era ensuing from the 1929 holocaustic collapse of the "New
concept—than
Exchange has elected to member¬
We
A
yields), has latterly been
Midwest
v
"Bet
joined, the staff of the First Trust
Company of Lincoln, 10th and O
Co.
orders and inventories of manufacturers all moved
Sales moved 5%
*
LINCOLN, Neb. — Thomas F.
and
Oscar Humble have
,
than the usual seasonal trend was currently re¬
ported by the United States Department of Commerce.
savings,
via the institutions, and from hitherto untouchable
trust funds, is becoming ever more important.
- v
Under the new tax bill (taking the Senate's Version) the $50,000-income man getting the currently ruling gross yield of 6%
available from the stocks in the representative averages, will "take
home" a yield of but 2.6%. The $25,000-income man will get a
"take home" yield reduced to but 3.4%.
Ephemeral chasing of
lower-taxed capital gains is keeping some of this money in the
market, but later on post-bull market disillusionment and realism
concerning get-rich-quick capital gains will accentuate the relative
advantages of tax exempts or cash for "the rich".
Drew, Fisk et al, and on through the times
Pacific corner and "Bet a Million" Gates, the
Luhe
400,000
dividend yield so
crop of
by the billions
lic's
With First Trust Co.
ago,
with their after-tax
than in the 1920's, and
sharply reduced; the market buying power from the new
individuals who are accumulating aggregate
of Gould,
(Special to The Financial Chronicle)
widespread pickup among manufacturing industries during
Sales,
the
nation's disposable income
lower bracket
From
Company.
105,000 trucks this month, compared with 357,482 cars and
more
with
been
105,646 trucks in September, because of four additional working
August,
Co., 315
power,
the
Fortunately the common stock's increasing legitimization for
the trustee and institutional investor is highly justified. Surely
it is now a different "breed of pup"—both per se and in the pub¬
Street, members of the New York
and
Midwest
Stock
Exchanges.
days this current month.
A
&
Simon
24,315 trucks were wheeled out.
"Ward's" expects the United States to produce about
pay
Street, members of the
LOUIS, Mo.—Frank C. Ball
has become associated with I. M.
scheduled
A
last week.
27,340
to
ST.
in the United States the past week dropped
Truck production
added
(Special to The Financial Chronicle)
1
last
"Ward's Automotive Reports."
until Oct. 15, according to
Raymond G.
Frank Ball to Staff
Packard, down for
of critical material.
—
been
I. M. Simon Adds
out again after suspensions last
cars
Co.
&
changes.
Studebaker
began producing again on Monday, last.
but
has
of
with their living expenses
of their current after-tax "take home?-
absorbing so much more
New York and Midwest Stock Ex¬
"virtually halted" a week ago for the same
and Hudson also were
cars
LOUIS, Mo.
400 Locust
question
\
which
the staff of Reinholdt & Gardner,
resulted
"
Wilfred May
importance
ting only half of the proportion of the
which flowed to them in the 1920's,
(Special to The Financial Chronicle)
Wednesday following a four-working-day suspension for inventory
taking.
A.
The book is pub¬
McGraw-Hill
by
ST.
In view of in¬
Chrysler output was resumed
industry
Salle
Joins Reinholdt Gardner
high operating rate.
Age."
automotive
again heightens
substituted demand
coming
from
the
new
buying
sources.'.
With hieh-bracket income recipients now get¬
buying
market
stock
the
($3.75).
This has been their policy for a
not help feeling chagrined that the wage
in
nation's new tax
by the Congress, in further soaking-therich and drying-up the former chief source of
Play"
business
oil
Bustamante
a very
La
South
raised.
was
lished
again is headed toward a White House settlement, concludes
once
In
can
the
about
steel wages can't
flation, their earnings have been only passable and have
They
135
.f •
bill
be
Elinor
Pryor,
wife of Kirk
Tracy, J. Barth & Co., 210 West
Seventh Street, Los Angeles, Calif.,
is the author of "The Big Play," !
copies of a steel
long time, and they haven't changed their minds.
entirely from
609,
"The Big
Also, expansion costs have
earnest when they say that
be raised without raising prices.
almost
payable to the Investment
Club of Chicago and
be sent to J. C. Knotter,
Room
mutual sav¬
Soak-The-Rich Void
the writing of the
And
re¬
Street, Chicago 3, 111.
expected.
are
dues
Analysts
These costs include materials, freight,
coal, labor, and administration (it now takes 15
order
Checks
should
did not reflect other accumulated cost increases
which at that time amounted to $4 a ton of steel.
The total of
these accumulated costs now is much greater—and is still rising,
authority asserts.
Filling The
member
should
Asso¬
last, strongly advocated that
York join the eleven other States which
mem¬
at
$4.
its Gover¬
Truster,'.' in
Friday
permit common stock holding by
;
made
that price increase
this trade
$25 for resident
York State and
New
ings banks.
main
and plenty of it, this trade
prices were raised an average of $5.88 a ton.
and steel
crease
at
of
Board
of
speech before the State Savings Banks
New
Non-resident
and prices have not been raised since last De¬
out a 16-cent an hour in¬
wages
the
by
highlight the timeliness
past week
erstwhile economic "Brains
bers, which includes 15 luncheons.
Then steel workers hammered
cember.
also
intervention and ap¬
paving the way for White House
labor trouble
set
Banks
ciation
Club
ernors
pointment of a fact-finding group; (4) some way will be found to
allow a wage increase.
Unless a similar attitude is taken on steel
prices, there will be
authority declares.
a
that
include a guaranteed annual wage; (2) steel
people will turn them down on the basis that wage increase can't
be granted without a price increase. Thus, a stalemate. (3) Then
will come the threat of a nation-wide strike in the basic steel
industry,
Pirie
Carson
Co.
have
Gov¬
package—15 cents an hour or more,
large
a
of
of
nor's
the
announces
The
perhaps will
and
Room
in
the dues for the 1951-52 year
Washington forced the issue in 1950 and
year..
held
be
&
the
of
importance of the strong trend of "Prudent Man" relaxation
of legal restrictions on trustee investing.
.
Mr. Elliott V. Bell, former Superintendent
luncheon
The
Corp.
meeting
Scott &
this
Minerals
International
Chemical
events
Two
structure.
have as guest
speaker Louis Ware, President of
Regarding the current steel outlook, "The Iron Age," weekly
magazine of metalworking, states that fear is growing that the
steel industry won't have much to say about granting a steel wage
increase
of
—
and on the investment
from the impact of the equity's coming-of-age
the effects on the economy
are
structure
luncheon today, will
the
steel ingot production, electric
loadings all registered moderate
reporting week
latest
output and freight car
kilowatt
CHICAGO, 111.—The Investment
Today's Market and the Economy
on
respectability?
.
'
Legitimization of the common stock as a respectable medium
investment stands out as a vital element in the present market
Analysts Club of Chicago at their
remained
industrial activity, unemployment
close to the lowest point touched in the last six years.
forward movement of
In
Chicago Analysts to Hear
perceptily
ago, it continued to be about 10% under the
during World War II.
In keeping with the
higher than a year
record
to
aggregate production was
fact that
the
Impact
stock
of the common
growing respectability
merly assistant Vice-President of
The
to
5
(1349)
Chronicle
The Commercial and Financial
.
.
70
NEW YORK 5, N.
PINE STREET
Offices in 97 Cities
Y.
t
€
The Commercial and Financial Chronicle
(1350)
.
.
Thursday, October .11, 1951
.
New York Slock Exch.
The Outlook ioz Natural Gas
From
By LYON F. TERRY*
Weekly Firm Changes
Washington
The New York Stock Exchange
has announced the
following firm
Vice-President, The Chase National Bank, New York
Ahead
speaks optimistically of future of natural
gas production, though warning further discoveries of new sup¬
plies are necessary to meet consumers' demands. Stresses risks
in natural gas exploration and transportation, and concludes
Chase Bank official
changes:
of the News
uorothy B. Winmill retired from
limited partnership in
Gude, Winmill
By CARLISLE BARGERON
&
Co.
exploded "another" atomic bomb. There has been a question
our more honest and nonpolitical scientists as to whether
the "first" bomb which Russia was supposed to have exploded and
therefore made her a dread menace compelling
from
had
should be able to obtain sufficient natural
area
for many years, provided the industry is encouraged to find
v'S#-'-new reserves.
gas
Atherton
the
The business of the natural gas of the rapid increase in produc¬
tion, made possible by the boom
England continues to increase as in gas pipe line construction since
companies from California to New
as
new
pipe lines.
steel
Natural
for
32.5.
amounted
feet,
The de¬
mand
in
for
t,
on
gas
in
'North
South
in
F.
Terry
alarm
we
running out of oil have been
ago.
Supply of Gas Compared With Oil
existing pipe lines. The Pacific
In 1921, for example, concern
Northwest is still without natural over the future supply of oil; led
<gas but hopes eventually to be to a survey by a joint committee
supplied from reserves within the of the American Association of
United States or from Canada. Petroleum
Geologists
and
the
Will there be enough natural
gas
to satisfy these demands?
The Future Supply
The
United
States
which
found
ent
reviewed
Institute
in
my
presented
paper
before the American Gas Associa¬
tion at its Annual
a
Committee
on
Petroleum'Re¬
of the American Petroleum
serves
its
made
first
report
as
of Dec.
31, 1936, finding the ratio
Meeting last then 11.9. Early in 1944, Harold
October.1 In that paper, reasons Ickes, then
Secretary of the In¬
were
recited for estimating, on terior,
published
his
opinion:
what
I
considered
"We're running out of oil"—and
exceedingly
conservative premises, that the fu¬ proved it. That
is, he showed that
ture recoverable gas
supply of this
country would exceed 500 trillion
cubic feet. Of that
total, 180 tril¬
lion
were
proved
reserves,
the
and
at
that
were
time
the
known
The
ratio
is
now
pro¬
13.0.
That is the difficulty—such state¬
ments lead to a decided miscon¬
balance, an amount in excess
trillion, was gas to be dis¬ ception.
of 320
covered
mittee
in
the future.
The
Com¬
Natural Gas Reserves of
the
American
Gas
Association
raised its estimate of
on
proved
serves
1950.
to 186 trillion
as
Approximately
of Dec.
7
re¬
31,
trillion
serves
lished
Estimates of known re-^
of both oil and gas are
pub¬
annually.
known
But the ratio of
to
reserves
annual
pro¬
duction may easily be
interpreted
by the uninformed as indicating
the number of years of future
found.
serves
The
of
present
186 trillion
proved
the
paper
presented
Informal
re¬
duction ratio for oil, while in the
of
case
are
last year's production.
*A
My first thought
27
By
times
with
the
its
reason
natural
rapid
gas
increase
Continued
by Mr. Terry at
of the New York
Meeting
State Utilities
Executives,
New York,
Sept. 5, 1951.
Cooperstown,
industry,
on
in
pro-
page
F. Terry, "The Future
Supply
Natural Gas," Proc., Amer. Gas
pp.
Assn.,
'
155-159.
mean
was
that this
Members
of the New York Stock Exchange
40 Wall
Street, New York
Carlisle
Bargeron
.
It
is
comforting
to
think
ratherSgenerally
reflected the
that
this
propaganda
particular
splurge of the Administration fell with such
saw
a
deadly thud that
an opportunity
vastly increased "army: 'of bureaucrats and vastly increased
appropriations and those Congressional figures who sprang into
the headlines by advocating $10 billion more for atomic bomb
carriers, have not pursued their bunk. After their first emissions
they have maintained a discreet silence. You get the impression
American people might have regained their senses and
prepared, at long last, to call a halt. The Administration prop¬
agandists had finally gone too far.
were
I should say that it would be
comforting if this
were
the
case.
it.
And it is not at all unlikely that the sponsor of the $10 billion
additional for atomic bomb carriers will be able to come forward
within a few weeks, without
using the scare of Russia's "second"
bomb, and quietly get it authorized.
*
*
atomic
And frankly, what difference does it make whether this paltry
additional $10 billion is appropriated or not? The American people
do not realize what
pathetic state they have gotten themselves
a
into.
''
Our daily
editors make much of and give head¬
newspaper
for foreign aid.
For weeks on end when these bills are in Con¬
gress the newspapers give considerable space and headlines to the
fact that a paltry few hundred millions have been slashed off of
or
this
or
that
multiple billion dollar bill, and subsequently the Senate
has restored most of the slash and
between
comes
so
the bill goes to conference,
representatives of the House and the
"'
compromise.
up a
Senate
there
and
\
■
• v
is still
are
exercising its control
the
over
editors who pontificate
some
purse
strings, although there
that the Congress ♦ is lacking in
these Administration requests.
editors take, when' the
some
agers,
when
a
figure
out
their
budget
the
fact
or
military
at
$52
even
chopping off
a
London
Amsterdam
of
Stock
City)
Exchange
Firms
and election at the
Henry Hudson Hotel.
Oct.
16, 1951
(New York City)
"Feminine
Second
Fame
and
Fortune"
Anniversary Dinner.
is
that
man¬
billion, nine hundred
and
can
work
out
such
silly to take the economy forces, those who knock
seriously.
or
billion
a
They
The
let
itself
are
dollars from
simply putting
an
on
Adminis¬
a
show, not
Truman already has at least $92 billion
plain and simple facts
be
beaten
into
are
such
that the legislative branch has
subordinate
a
about economy, are concerned
military
or
state
that
mostly in getting
one
the
great
may
prate
of the
atomic bomb installations for which they have
or some
kowtow
to
of the
the
money,
in their communities.
bureaucrats,
do for the record.
many
appro¬
So they have
notwithstanding the talking they
A few weeks ago the House Appropriations
castigated the Army Engineers for their habit of under¬
estimating the cost of projects which they recommend.
But the
House
projects
Public
Works
Committee
which
authorizes
these
in the first instance and which plays ball with the Army Engineers
went to their defense.
We
are
in
a
(New York City)
York
Libaries
Chapter
Association
of
Special
meeting
the Federal Reserve Bank.
Oct. 26, 1957
Ohio
vestment
America
at
%
(Cincinnati, Ohio)
Valley
Group of the
Bankers
annual
the Cincinnati
sorry
Nov. 9, 1951
New
Association
Fall
In¬
of
Meeting at
Club.
plight, indeed.
(New York City)
York
Security Dealers
Association 26th annual dinner at
the Waldorf-Astoria Hotel.
Nov. 21, 1951
Association
Firms
(New York City)
of
Annual
Stock Exchange
Meeting
of * the
Board and Election.
(Hollywood
Beach, Fla.)
Investment Bankers Associattoa
Annual Convention at the
Holly*
wood
Beach Hotel.
National
nobody in Washington
few hundred million
18, 1951
New
foreign aid
or our
when he gets it except spend it.
it is
Committee
Providence
(New York
annual dinner
Oct. 19, 1952
have any definite idea of what he intends to do with
accomplishing anything.
may
,
tion
According to the posi¬
something million and 28 cents, this is what they actually need,
to
Chicago
15, 1951
Accounting Division of Associa¬
Nov. 25-30, 1951
Hah, this shows the Congress, the representative of the people,
J
New Haven
Oct.
•
lines to, Congress' chopping off a half million or a billion dollars
from an Administration request of super billions for the military
priated,
Boston
Co¬
annual
wood Club.
Oct.
This particular propaganda effort flopped.
It did not sell.
But, unfortunately, there will be no appreciable resentment about
majority of the members, regardless of how much they
Philadelphia
Club
lumbus Day outing at the North-
But it isn't.
to spend between now and November, 1952.
Companies
(Dallas, Tex.)
Bond
the
that
tration request
Natural Gas
Field
in it
a
off
securities
Investment
Oct. 12, 1951
Dallas
the Civilian Defense Administrator who
for
But
in
COMING
EVENTS
a
days later that my wife's comment
attitude of the country.
the money
Wie maintain active markets
Co., 53 State
Street.
It is amazing how you can
frequentlyyget some calmness and
common sense at home.
I was even more surprised to learn, a few
estimates
5
Edward E. Mathews
In
since VJ-Day."*
ever
tion
Co.
Financial Chronicle)
Mass. — Willis
R.
Talkington has joined the staff of
it and
was
to The
BOSTON,
"Imagine," she said, "their telling us that because Russia has,
or has exploded, a second bomb
proves she is out to conquer the
world when making atomic bombs is what we have been doing
cent from
&
Rogers &
Joins E. E. Mathews
(Special
Russian bomb attack but that
a
knowledge of the serious global .situation in
White, Weld
former member of
a
That night when I got home, my wife was indignant.
:
36
lLyon
of
away
complete hysteria would now rule and that there would be no end
to the Congressional appropriations to make democracy safe.
sup¬
were produced in 1950.
Otherwise, ply of petroleum or natural gas.
nothing has changed in the
long- This would be so if it were not
range picture. Thus, the most
im¬ for the continual
discovery of new
portant part of the future supply, reserves which
has
for
that is, more than
years
60%, consists of
maintained
the
the 320 trillion or more
reserves-to-proyet to be
passed
Sullivan.
reserves
only 13.3 times annual
duction.
$10
I didn't
Geological Survey,
proved reserve
equal to only 10.6 times the cur¬
rent annual production. The
pres¬
long-range problem of the
future supply of natural
gas was
was
Immediately in the Senate there
we
appropriate, an addi¬
billion for atomic bomb carriers;
tin-hatted civilian defense administrators and
that
Sullivan
Since
demand- that
atomic proof shelters.
of
W.
7.
1939, he had been
an
investigator for the Securities
and
Exchange Commission.
He
Civilian Defense Administrator Caldwell sprang
into action to get more appropriations for his
Cali¬
fornia greatly exceeds the capacity
of
Oct.
tional
original discovery of oil 92 years
Lyon
second one, and the
was announcing
known
raised from time to time since the
and
in
cries
a
sia
illustrated
well
which
are
the
•Southwest,
and
is
was
industry
the
firm
John W. Sullivan
John
'
It is the
the
by the
history of the petroleum industry
the
in
keeps
V'S
substan¬
to
in
sound basis.
a
This
Central
States,
that
reserves
;in the North■e a s
effect.
a
continue
increase
:
solemnly and saying this proved Soviet Rus¬
was out to conquer the world, or words to
was
the
ceased.
experimenta¬
amateurish
their
President of the United States
long as new
so
in
V'/'V
But now, here
it
Harry M. Stonemetz in
a
tions.
that
tially exceed production.
40%
than
disturbing
continual
was
them
from
continue to
in itself need
that
but
discoveries
to
1946.
will probably
be
not
cu¬
triore
II, that ratio has been
Four years ago it was
The ratio of reserves to pro¬
decrease,
1950
*6.9 trillion
War
duction
in
in
World
decreasing.
,
coun¬
try
bic
obtained
gas
produced
"this
be
can
chine,
up
& Co. on Sept. 30.
On
date, interest of the late
same
backbreaking military ma¬
not something which had got away
build
to
us
fast
Sept. 21.
McDonough withdrew
partnership
in
Schirmer,
among
Northeastern
on
James P.
days ago that Soviet Russia
The headlines blared out several
ciation
Plaza
(Miami, Fla.)
f
Security Traders Asso¬
Convention
Hotel.
at
the
Roney
V V.
Number 5054
Volume 174
.
(1351)
Chronicle
The Commercial and Financial
.
.
portunities
with
but
In Some Common Stocks
have made
State
enable the
war
banks to help our state
meet the great post¬
housing needs.
in
emphasizes growing importance of
other states already permitting
Advocates New York join 11
more
--
made
their
of
to
a
pretty commonplace thing
that
say
live in
we
a
time of
[\ '
*
is the law of
.
life. What does
not
after-taxes—has
Yet, however
commonplace,
s
it is
profound¬
that
ly true
have
who
we
all
most
or
of
lived
our
this
in
lives
20th century
wit¬
have
nessed
a
that's
and
—
gone
in the
up
past decade from $75 billion to a
rate of $225 billion a year.
* '*■ 1
dead.
already
income
Personal
is
change
billion in 1940.
$101
The fact is that all pe¬
riods are times of change. Change
more
may
properly
go
a
ened to
of
banks of
income is divided up.
Full employment, increased pro¬
ductivity and a highly progressive
stocks.
I
.
.
From the
earnings, thereby making possible
idea will seem very
Back in 1929
than one-third, 34% to be
more
the
chief
that
healthy diver¬
higher future dividends and
downright unsound. Let me say at
once that I have nothing but re¬
exact, of the total disposable in¬
come of the country went to only
standpoint of the sav¬
ings
my warm
them in the middle
Pennsylvania
her savings banks to
dubious if not
system have dramatically leveled
off incomes in the upper brackets
brackets.
Common¬
and good friends in the
York State Legislature, this
many
and lower
the
buy commercial bank stocks.
.
quite sure that for a great
people, including some of
—probably too progressive—-tax
and increased
outside
banks
banks and their depositors,
arguments in favor of
common stock investments are that
such
investments fcan
improve
am
New
permit investment in stock
authorized
prescribed limits, to invest a small
part- of their funds in common
the way that
one
wealth and this year
within carefully
New York State,
great increase in total income is
the change that has taken place in
and
banks,
further
step
and authorize the savings
significant even than the
More
England states
of these states,
This.experiment in the "prudent, New Hampshire, has authorized
its savings banks to purchase mu¬
man" theory has, I think, been
used by our savings banks with tual investment trust shares up to
Only last year
much discretion. As a result, I be¬ 5% of deposits.
lieve the time has come when we the Massachusetts law was broad¬
$325 billion a year—compared with
change.
our
usually stocks of commercial
surplus funds in obliga¬
eligible.
tions not otherwise
It is
is
permit their savings banks to have
some common stock investments—
to
as
so
banks to
lation activties.
All six of the New
in the law was
permit savings
invest up to the amount
change
portant
total amount held and proportion put into one company, and
with discretion to Superintendent of Banks to prohibit specu¬
(
it
neighbors in New England, ordi¬
narily rated as conservative, who
have taken the lead in this matter.
action, and in 1949 an im¬
Board
established
with
issues
are
enough,
Curiously
legal
the
on
authorized
stocks of one sort
banks
such
another.
or
corporate
list has been
than-doubled by Banking
bonds
equities, and limiting them to high-grade listed
dividend record, with restriction on
'investment in
^
of
know, the spread is substan¬
States tially higher.
In 11
17 mutual savings bank
to hold common
amount
the
states
of security invest¬
field
the
In
ments
high-grade corporate bonds was
4.25%.
At the present time, as
is not entirely new.
out of the
while the average yield on
5.9%
savings
for
stocks
common
banks
Prudent Man
Savings Banks and
Thebry
institutional invest¬
ments. Cites advantages to public policy of their use of common
stocks, in mobilizing savings for needed capitaP formation.
Bell
yield on dividend-paying common
stocks, regularly traded on ther
New York Stock Exchange, was
of limited investment
idea
The
savings
Pointing out recent basic changes in individual income distribution, and in volume and character of personal savings, Mr.
the
7
1900-1950 the average
the period
you
Already Eligible in Eleven
and country
■-.'i
of
dogmas
stormy present."
lending, equity invest¬
taken other measures to
cannot meet the
quiet past are inadequate to the
housing projects, and have
ment in
we
"The
said:
once
FHA
nationwide
homes,
mortgage
of Banks, New York
Former Superintendent
small
Week"
Publisher of "Business
step we
by
said,
profound changes of our times un¬
less we are big enough to accept
new ideas.
As Abraham Lincoln
catalog of all the changes;
a
step
I have
as
banks in
possible loans up to 80% on new
BELL*
By ELLIOTT V.
savings
of
I will not burden you
state.
our
Savings Banks Should Invest
Editor and
•« w, i
■.; w,
they will provide a
sification in the investment port¬
Concentrate
Should
Yield
on
Savings banks, insurance com¬
panies and fiduciaries when buy¬
ing common stocks should, in my
judgment, buy strictly on a yield
basis, without thought of capital
gains. They should buy only sea¬
soned, dividend-paying stocks and
should
them
regard
more
as
or
permanent holdings to' ride
through bull markets and bear
markets.
With such a course th&
difference in yield outweighs over
less
the
years
between
risk as
factor of
any
stocks
common
and
bonds.
example, if $1 million were
For
invested in 3% bonds,
the princi¬
interest after
years would amount to a total
$1,814,000.
But if $1 million
pal and compounded
20
of
in
invested
were
stock
common
yielding 5% the capital sum would
grow in 20 years to $2,665,000, a
difference of $871,000 in favor o3f
the return on the stock.
Lest
someone
accuse
me
of
making this common stock busi¬
ness
sound
about
grade
too
easy,
I
am
talking
program
a
;
let mo
all
that
repeat
listed
only
limited to high-
of
stocks
American corporations
leading
having an
established dividend record.
demand
It is a fact, sometimes over¬
folio. The principal argument
a very careful study and the full¬
looked, that many of the foremost
against permitting savings banks
5% of the income receiving peo¬ est of proof before agreeing to so
American
corporations have no
Elliott V. Bell
ing
of
ideas
to buy common stocks, I gather,
ple. By 1946 this top 5% was get¬ important a change in the savings
funded debt but only stock out¬
is that such a course may encour¬
V'-V ■■■ and events ting only 18% of the total dispos¬ bank law.
•
'
J
standing.
Among
these
arc?
than in any comparable period in able income. In other words, the
age a speculative attitude on the
I -would not myself have been
duPont, Eastman Kodak, Union
rapid and dra¬
matic unfold¬
spect for those who will
*
;
history.
'
world
and
wars
we
teeter on the
have
most
devastating, senseless, depression
in history. We have seen the ideas
slippery edge of a third. We
survived great booms and the
self-government
in
country after
down
beaten
one-third of
people in the world live
country so that today
the
all
under the heel of
world-wide
this
quite
become
have
until we
literally the
world.
prospered
and
grown
States have
United
blessed
these
foremost wonder of the
Never before have
country
any
standards
the
living
Americans
that
enjoy.
always
not
is
Money
the people of
enjoyed
the
best
certainly
has
trend
the
in
favor
now,
not
very
such
of
a
move
part of saving bankers.
before
and I favor it now only after
careful thought and because,
Carbide
respect to the first point,
there can be little argument. Over
and
Carbon,
Chrysler,
With
Continued
on
page
changed.
The Revolution in Income
Distribution
In the days
New Issue
since the Great De¬
pression we have had a quiet revo¬
lution in the distribution of our
$7,324,000
nation's income.
Personal savings have,
Communist die?;
Still, in the face of all
calamity we in
tatorship.
been
had
roughly cut in half, and since 1946
and
freedom
of
5%
top
the
of
share
We have been through, two great
of course,
profoundly effected. In spite
high cost of liv¬
been
State of Delaware
of taxes and the
citizens of our
the rate
$20 billion a year. That
ing, the individual
country are now saving at
of about
is five times what they were
to
10
save
Included
ago.
years
1.60% Bonds
able
Dated
these savers are many in¬
dividuals whose social and eco¬
November 1, 1951.
among
nomic background gave
Principal and semi-annual interest (May 1 and
Coupon Bonds in denomination of $1,000,
as to both
principal and interest.
Dover, Delaware.
November 1) payable in
registerable
them little
experience in the habits and
rewards of thrift.
These people
or no
of
measure
a
people's well-being,
biit the, dollar figures
us
are
surprise
even
td those of
who keep pretty close
them.
cer¬
They are a con¬
tainly striking.
tinual
of our cur¬
statistics
national
rent
tion
of
savings and they
Interest Exempt
turn
Exempt from
institutionalized
naturally toward
,
r
■
is running at the rate
by
of
the
the
of
Mr. Bell at the annua!
Savings Banks Associa¬
of New York, Lake
State
Placid, N. Y., Oct. 5, 1951.
enormously in the
And they will con¬
tinue to grow.
Individual savers
are confiding to these three kinds
have
alone
institutions
billion
a
year
There
Due
almost
$366,000 each
FROM WALL ST.
$7
Prices to
yield 1.00% to about
V
facilities for
all the
are
delivery when, as
hundred years of
pillion. Now
annually
the three main types of thrift
through
offered subject to prior sale before or after appearance of this advertisement, for
and if issued end received by us and subject to the approval of legality by the
General of Dclazvare and by Messrs. Reed, lloyt & Washburn, Attorneys, New York City.
Bonds
The above
Attorney
a
thrift did not total $7
that
into
amount
is
flowing
The National City
institutions.
banquets
Manifestly; changes of this mag¬
by clinging
nitude cannot be met
rigidly to the patterns of the past
—however much we may treasure
meetings
office parties
and
profit by the patterns of the
Telephone MAin 4-5000.
These are new times and
must be met by new ideas.
spectacular 1 increase in the
volume of savings
flowing into
the care of our leading types of
HOTEL
'v
thrift
or
7th
large
small groups' Clark St. sta. -'
Ave. IRT subway in hotel.
st. George
Clark St.
Brooklyn, N. Y.
Bing & Bing, Inc., Management
1.69% according to maturity
added)
(Accrued interest to be
here who can
the time when
savings in all the mutual savings
banks of the country, accumulated
down
largest Hotel
offers foremost <
values —for
November 1, 1952-67, inclusive
1, 1968-71, inclusive
$367,000 each November
for safeguarding and
mrny
are
remember
Outstanding
and for
investing.
MINUTES5
N. Y.'s
Taxes under Existing Statutes
of Delaware or any Political
grown
past 10 years.
of
and Decisions
Subdivision thereof
Legal Investments for Savings Banks and Trust
from Federal Income
Taxation by the State
Eligible, in our opinion, as
Funds in New York, Delaware, and certain other States,
Savings Banks in Connecticut and Massachusetts.
savings.
•' *
,
The assets of life insurance Com¬
panies, savings and loan associa¬
.^Yfy.'-Gff/; tions and mutual savings banks
"Address
meeting
own
track of
!For example: Total national pro¬
duction
their
equipped to invest
well
not
are
past.
they
Salomon Bros. &
Braun,
Bank of New York
Merrill Lynch, Pierce, Fenner & Beane
Hutzler
F. S. Smithers & Co.
Bosworth & Co.
Robert Winthrop & Co.
"f;
iI ncorporated
Bacon, Whipple & Co.
Heller, Bruce & Co.
E. F. Hutton & Company
The
institutions
necessitates
constant broadening of the
ment
As
areas
you
years
invest¬
to them.
great deal
h&s been made in re¬
in broadening the op¬
all know, a
of progress
cent
open
a
R. D. White &
Newliard, Cook & Co.
Company
Shelby Cullom Davis & Co.
,.v
/-.,
11 ?
,
■/
f
'October 10,
1951.
U
1
■
■-
Harrison & Co.
Reinholdt & Gardner
Emerson Cook Company
43
0
(1352)
The Commercial and Financial Chronicle
...
Thursday, October 11,1951
Joins
Dealer-Broker Investment
LOS.
NSTA
Recommendations and Literature
It is understood that the firms mentioned will be
send interested parties the
to
Shearson, Hammill
,
(8pe?ial to The Financial Chronicle)
Notes
with
520
has
Cal.—Saul
become
Shearson,
South
Grand
He
Avenue.
formerly with Morgan & Co.
was
pleased
J.
connected
Hammill & Co.,
ANGELES,
Shepard
following literature:
With Waddell & Reed
NSTA ELECTS 1952 OFFICERS
A. B. C. of Puts and Calls
(second
edition)—Written for the inves¬
tor
interested
options
in
in
everyday trading
30
and
Son,
Street, New York 4,
—
American
producers
U.
(Alumi¬
50
nium Limited, Aluminum Com¬
pany
inum
<
Reynolds Metals Company)
—The First Boston Corp., 100
National
analysis of
Bank &
Your Financial
Trust
Investment Portfolio
—
;
&
Canada
Savings Bonds—The new
3V2% bonds explained—Western
Allied
City
Company, ; Limited,
544
dum
Street, Vancouver, B. C.,
&
Favorable
—
Street, New
uated—Bache
sit¬
Wall
' ♦
*
Stores
♦
Corp.
Memoran¬
—
Auchincloss,
—
mercial
put-and-call
LOS
E.
H.
Russell
PhU
Hastings
Vice-President;
Atlanta.
Lex
Oct. 8—
-
Van
orandum—A.
Laird, Bissell &
Meeds,
120
Broadway, New York 5, N. Y.
1951
Yearbook
of
Private
Winkle
G.
-
in
the
stocks
Hercules
Maguire
o u n
t
Bureau's
turing
Industrial
e r
Index, 12 trace their
years before the Civil
War and another nine had
their
twelve,
dends
one
119
ago, and
have received
dividends
regularly
J.
&
Co.,
Inc.,
Boston;
Lee
were
Staib,
R.
Harry L. Arnold,
1
Geo. Eustis &
Continued
We Recommend for
on
page
F. M. Coleman
&
Review
SAN
—
in the Russ Building.
55
The match
;
1833,
industry is
1,000,000,000 matches
Company
Trade Commission survey
1940 with 1950
—
essential depression-proof business. More than
an
are
used daily in the United States. A recent Federal
of 25 major manufacturing industries, comparing
results, showed that the match industry recorded the sharpest
percentage increase in rate of return.
Ohio Match
Company, organized in 1895, is
one
of the two fully integrated
completely diversified match companies in the country. Ohio, in addition, has
Ira
Haupt &
New York
certain
most
interesting "natural resource" aspects
—
Supply—Analysis
Pacific Railway holdings
at
Continued
on
page
are
carried
on
the balance sheet
timber and, through
as
These Northern
oj August 31,1951
only $4,715,600 whereas their present market value is twice this figure.
The Preferred stock
recently
free dividend
basis of 7 shares of Preferred for each 100 shares
•Common.
able
on
a
was
issued to the Common stockholders
Preferred dividend requirements are
margin. We recommend this issue
as an
covered by
a
most
yield approximately 5Vi%
Currently Active
Over-the-Counter
on
WE MAINTAIN AN ACTIVE MARKET IN THE STOCK
Request
Troster, Singer
N.
Y.
P. F. FOX & CO.
& Co.
Telephone:
HA
2-2400.
Teletype NY
Private wires
CHeveland-Denver-Detrolt-Los
120
Security Dealers Association
Trinity Place, New York 6, N. Y.
1-376;
377;
;
i
\
378
to
Angeles-Philadelphia-Pittsburgh-St.
i V
6
I
Louis
:
" r;
M.O'.i
,
.
Lfi
1)1-'
V
*
BROADWAY, NEW YORK 5, N. Y.
Telephone
Teletypes
REctor 2-7760
NY 1-944 & NY 1-945
.
<i sua
"
'
as a tax-
of
comfort¬
attractive discount preferred.
47
to
engaging in
Charles W.
English is associated with him.
Stocks
Canadian Superior Oil
Southeastern Public Service
*
Dewey & Almy Chemical
Members:
is
(Presently outstanding 66,272 Shares—$100 Par Value)
Analysis — Barclay ' Investment
Co., 39 South La Salle Street,
Chicago 3, 111.
;
/
Portsmouth Steel
Harshaw Chemical
74
Coleman
5% Cumulative Preferred Stock
Co.,
Opens
the securities business from offices
holdings of 167,500 shares oj Northern Pacific Railway, oil.
Fuel
to
FRANCISCO, Cal.—Fred¬
erick M.
Co.—Memoran¬
Broadway,
added
to The Financial Chronicle)
Investment:
The Ohio Match
National Gas & Oil Corporation-
its
♦Prospectus
been
has
Montgomery Street.
Co.,
Bolger & Co., Chicago; John Mayer, Merrill Lynch, Pierce, Fenner
Available
Markets
the
FRANCISCO, Cal.—Robert
Ackerman
Haile Mines
Primary
to
Co., 632
«
>
the staff of Brush, Slocumb & Co.,
George A. McDowell & Co., Detroit; Elmer Hammell, Shillinglaw,
Southern Oil.
an¬
with
the exception of the
years
&
(Special to The Financial Chronicle)
SAN
Inc.,
John Canavan, Rauscher, Pierce & Co., Dallas; George Elder,
analyses of Equity Oil and Utah
started paying divi¬
stockholders
nual
Co.,
Newly elected members of the 1952 Nominating Committee
are
—Edward L. Burton & Co., 160
South Main
Street, Salt Lake
City 1, Utah. Also available are
Of the other
years
—
Mountain
beginnings in 1900 or earlier.
Twenty-three of the companies
have
been
paying
dividends
continuously
from
seven
to
years.
Space &
Street, Chi¬
Thermit Corp.
Co., Ill
6, N. Y.
an¬
cestry to
seventy-nine
Lane,
(Special
York 5, N. Y.
Also available
(121/2-year period.
Of the
is an analysis of Philco Corp.
35
companies represented in the Minnesota
Mining and Manufac¬
Over-the-C
Witter
Brush, Slocumb Adds
Jolley
Cincinnati, and Morton A. Cayne, Cayne & Co., Cleveland.
Special
report — Walston, Hoffman &
Goodwin, 35 Wall Street, New
National Quotation Bu¬
Quotation
added
been
Callable at 105
Powder
Metal &
used
Averages, both as to yield
and market performance over
a
National
Johnson,
111.
cago 3,
Place¬
reau
Stock
Jolley,
Newly elected to the executive council
Financing—E. V. Hale &
dum—Carl M. Loeb, Rhoades &
Co., Board of Trade Building,
Co., 42 Wall Street, New York
Chicago 4, 111.—$35 per copy.
5, N. Y.
Over-the-Counter Index—Booklet
showing an up-to-date compari¬ McDonnell Aircraft Corp.—Analy¬
son between the listed
sis—May & Gannon, Inc., 161
industrial
Devonshire Street, Boston 10,
stocks used in the Dow-Jones
Mass.
Averages and the 35 over-theindustrial
has
Dean
Munning
Becker
120 South La Salle
ment
counter
•»'
Goldman, Sachs & Co., New York City; James B. Maguire, J. B.
—
Stocks available
Lex
Jay Quigley
St. Louis, Secretary.
are
data on Harrisburg
Steel,
City Bank Stocks
Atchison, Topeka & Santa Fe,
quarter comparison and
and Naumkeag Steam Cotton.
analysis of 17 New York City Edward Hines Lumber
Co.—Mem¬
Bank
Clark
Treasurer, and John Bunn, Stifel, Nicolaus & Co., Inc.,
Third
;
of
South Spring Street.
land-Atlas National Bank Bldg.,
Boston 8, Mass. Also available
Broadway, New York 5, N. Y.
York
.
Cal.—William
ANGELES,
Ginn
staff
Carborundum Company — Data —
Chas. A. Day & Co., Inc., Rock-
Earnings—Pre¬
liminary 3rd quarter earnings—
New York Hanseatic
Corp., 120
New
/
•
(Special- to The Financial Chronicle)
'"
Company.
York.
Bank
Credit
Hanson
Broadway, New York 4, New
York
Joins Dean Witter
;
.1
Car Heating & Lighting Co. and
options—Thomas, Haab & Botts,
New
Walston, Hoffman & Goodwin,
Spring Street.
..
Parker &
Co.—Analysis—
Hentz
&
Co., 60 Beaver
Street, New York 4, N. Y. Also
available is an analysis of Safety
—
about
are
550 South
H.
.
50
Morris
LOS ANGELES, Cal.—James F.
Watts has been added to the staff
of
Future—Pamphlet
C. I. T. Financial Corp. and Com¬
&
Co., 36
Street, New York 5, N. Y.
"Information Please!"
Brochure
explaining
B.
(Special to The Financial Chronicle)
-
St., New
dum— Josephthal
& Co., 120
Broadway, New York'5, N. Y.
5, N. Y.
Good Values in Earnings—List of
appearing well
Helen
Walston, Hoffman Adds
—
companies
and
with Waddell & Reed, Inc.
Folder on new
Technical Patterns
a memorandum on Pullman, Inc.
List of 20 stocks—Francis I. du
Brooklyn Union Gas — Memoran¬
Pont & Co., 1 Wall
;
Kinser
now
Co.,
Redpath, 52 Wall Street, New
York 5, N. Y. Also available is I
Canada.
York
Hastings, Crouse & Co., Detroit, Presi¬
dent; Phillip J. Clark, Amos C. Sudler & Co., Denver, First VicePresident; Jay L. Quigley, Quigley & Co., Inc., Cleveland, Second
St.,
a
program for eco¬
security based on regular monthly or quarterly invest¬
ments— Wellington Fund, Inc.,
1420 Walnut Street, Philadel¬
phia 2, Pa.
Co., 15 Broad Street, New York
5, N. Y.
Howe
for 1952 will be H. Russell
v
Cal.—Wiley C.
nomic
Suggestions—Eastman, Dillon
-
LOS ANGELES,
outlining
Company.
Balanced
Factor
Institute, 154 Nassau
York 38, N. Y.
Broadway, New York 5, N. Y.
an
Rubber—Dreyfus
S.
(Special to The Financial Chronicle)
officers of the National Security Traders Association
development in stock timing,
plus free samples of complete
service — $1 — Dept. B, Analyst
and
Mellon
new
Broadway, New York 4, N. Y.
Timing
of America, Kaiser Alum¬
& Chemical
Corporation,
Also available is
Shares—Bulletin—Stan¬
The
Rubber—Analysis of outlook with
particular
reference to
Fire¬
stone, Goodrich, Goodyear and
Brochure analyzing
industry and the four North
the
New York.
ley Heller & Co., 30 Pine
New York 5, N. Y.
N. Y.
Aluminum
Quota¬
Bureau, Inc., 46 Front St.,
Railroad
Ask for
—
B—Godnick
Broad
tion
New York 4,
learning how
be used to advantage
can
Booklet
1840 and 1858—National
V;
\:l
*
LITi^fi Wk* ..^ufti
Number 5054
Volume 174
.
The Commercial and Financial
.
.
Chronicle
en masse.
Christ labels, but is the same bitter
It
may
be
labeled
individualism/ He dealt medicine.
"communism,"
"naalways with the individual.
The "fascism,"
beings
born
President, Cities Service Company
the salesmen of
Board, American Petroleum Institute
who
was
must
be
Disciples, who were
again.
zism"
Christianity, were
that
him.
I
can
way
rebelled.
two
decades United States has moved in the direction of com¬
between communism and the Ameri¬
of life, prominent petroleum executive asserts in past
munism
by
to
wages,
I
can
camps.
Two
One
camp
grips.
divided into
ideas
contends
small group should plan for
rest
of
This is
(fid
at
are
that
the
us.
the
on
assumption
that
the
jority
ma¬
of
us
be
cannot
Loy¬
alty
benevolent
right to stand erect in the image
to
among
human race.
Testa¬
ment espouse an ideology that is
Following the Road We Have
Been Traveling
directly opposed to that of the
Stalins, Hitlers, Mussolinis, AttIn the other camp is a group
lees,
Gaitskells
and
Shinwells.
which has.,a different idea.
It
The pulpit cannot be honest and
does not believe that the wellThe teachings of the New
being of society can best be served
by
pouring
individuals into a
Christ
teach
without
Him
and
crucified
opposing socialism.
the nations.
home, it
bring
and comfort,
ease
is
this
a
to
so
war
terrible
as
sible subjection of our
small
to
group
must have
power
the
mold.
until
recently.
Our highest ideal is to develop
freely-enquiring minds and ade¬
have
the
to make
people do
travelled,
Jones
it
con¬
Are
is
good
original
them,
for
must
Lives
be
pressed
into
later, on this ideology.
while
that
in
the
Note
countries—are
lief
there is no confidence
to
people
things for
in the
do
themselves, all this is done
people.
It would
that the people, "too dumb
seem
to
the
of
name
understand," have no judgment
qualifications except at the
polling booth.
There they1 rise to
the
that
controls.
that
we
losing
This is not an
do
many
first
remember
World
communism.
country to
War, ap¬
asked
not to
use
much
so
sugar;
of this dictatorial
variation
I am not
attacking all controls.
inevitable in war¬
time.
We should recognize the
they call it "austerity." This word necessity of measures to curb
sums up all in one.
"Austerity," those who cannot and will not
language is from our most recent
socialist state, Great Britain. There
shorn of its classical
the
do and
that he does it.
all this is proposed by
profess
to
be
"the
friends of the people."
My conception of a real "friend
the people" is one who has
such confidence in them that he
of
can
trust them to make and cor¬
rect their own
The
mistakes.
time
next
a
modern
self-
styled "liberal" cries out for the
discipline of you and me, whether
it
be
instalment
buying,
or
slaughtering
a
camp,
the
which knows all the an¬
swers, which,-in the name of the
people deprives the people of their
group
♦An
nual
address
Meeting
Oil and
of
the chief character¬
nations with
the
which
on
on
page
offer to buy, any of such shares.
of Indiana, Inc.
(Without Par Value)
v
•'■■-■■■if
:
"■*
Rights, evidenced by Subscription Warrants, to subscribe for these shares at
$28,125 per share have been issued by the Company to holders of its Common
Stock of record October 8, 1951, which rights expire October 24, 1951, as more
fully set forth in the Prospectus.
The several Underwriters have
any
agreed, subject to certain conditions, to
unsubscribed shares and, during and after the
shares of Common Stock as set
purchase
subscription period, may offer
forth in the Prospectus.
Copies of the Prospectus may be obtained from any of the several under¬
only in states in which such underwriters are qualified to act as
dealers in securities and in which the Prospectus may legally be distributed.
writers
Blythi
But these
justification in
under a free econ¬
omy.
We as citizens should be
vigilant to see to it that these
powers are in the nature of loans
to
government agencies.
When
the emergency is over, we should
insist that these loans be repaid
immediately.
Incidentally, but
importantly, we should give some
thought to seeing what we can do
to
get back
to the dictionary
meaning
of
emergency.
Ours
seem to have become perpetual.
controls
have
no
times of peace
American so¬
seemed to fall into the
by Mr. Jones at the An¬
of the Texas Mid-Conti¬
Gas Association, Beaumont,
Texus, Oct. 6, 1951.
Allyn and Company
A. G. Becker & Co.
Central Republic Company
(Incorporated)
Incorporated
Incorporated
Hemphill, Noyes, Graham, Parsons
Spencer Trask & Co.
Harris, Hall & Company
<
Glore, Forgan & Co.
Dean Witter & Co.
Smith, Barney & Co.
Kidder, Peabody & Co.
A. C.
& Co., Inc.
The First Boston Corporation
Eastman, Dillon & Co.
are
& Co.
Bateman, Eichler & Co.
Bacon, Whipple & Co.
(Incorporated)
William R. Staats Co.
Whiting, Weeks & Stubbs
Stroud & Company
Incorporated
Incorporated
Brush, Slocumb& Co.
J. J. B. Hilliard &
Kiser, Cohn &
The Milwaukee Company
Elworthy & Co.
Blunt Ellis & Simmons
City Securities Corporation
Farwell, Chapman & Co.
Indianapolis Bond and Share
Son
Shumaker, Inc.
Lester, Ryons & Co.
McCormick & Co.
First California Company
Sutro&Co.
Schwabacher & Co.
Corporation
Every segment of
ciety
pig, or rent control, goosestep.
apply that test to him.
So much for the first
nent
Controls
flavor, means cooperate voluntarily.
is going to tell
individual citizen what to
who
istics
were
foreign battlefield.
best for them.
apprehensive.
those
Countries
What
"must."
In the period 1914-1941, just a
of what¬ short time as time goes, what
What change
ever brand,
including the Amer¬ happened to us?
ican
brand,
talk ominously of took place between the days of
"discipline." They tell me I must World War I and World War II?
"subordinate myself," that I must As we entered the war in 1941
"consent to function," that I must there was only thought of com¬
act along lines "defined" for me. pulsion, none of persuasion. "More
They do not tell me in so many and more controls" was the battle
More controls were granted
words who is to do the "defining" cry.
officialdom
to
"make"
the
and who is to do the "disciplin¬ to
ing."
That omission makes me people do what it was felt was
Again,
communism
as
Characteristics of Our Enemy
^;SV'
fir
Dictators, totalitarian
see
is
Common Stock
made to the people to
right thing, and the re¬
was immediate.
We were
within a week tele¬
had been cut volun¬
tarily by 10% and 15%.
That word is
to
Communism
does.
Continued
Public Service Company
in
someone
bottle labeled
a
324,656 Shares
were
the
sponse
daily.
that
in
Communism in
offering of these sharesfor sale, or an offer to buy, or a solicitation of an
The offering is made only by the Prospectus.
again. So did Lenin, Musso¬ and again
and Hitler.
Stalin uses it phone use
A
be, in fact, a Communist,
"Progressive Americanism" is still
the pos¬
dead
clothes.
up
and not know it.
It
boys
American
dressed
He may
later grew
American
many a
be¬
if let
the name of the and
the
sugar
consumption
people, this ideology subjects dropped
off
one - third
almost
them to compulsion.
overnight.
We were asked not to
There
is one word in
com¬ use our cars for pleasure driving,
munistic literature which occurs and public sentiment responded
again and again.
To free men, to to a-point where it was felt by
old-time Americans, it is and was practically everyone that it was
the most hated word in the dic¬ not the thing to do.
How many
tionary. We went to war because recall the appeal to the public not
of it in 1776.
Marx used it again to use the telephone unnecessarily,
lini
different
leave
against whom we went
our
man,
average
How
the
in
peals
wisdom.
supernatural heights of
and
It
rule.
slavery.
which
"Are
the
of
alone, will do the right thing?
The right thing by his country,
by his neighbor, by his family?
An example is found
in war
or
Again,
with
bottles
fear
ask,
the ideology of
our
concept
future—reminiscent
the
in
downright
not
do
to
five-year promises of totalitarian
comments just now,
I have two
comes
totalitarian
of
hate
the
Again the answer
beings.
from
departing
we
and
and
practice?
Because of something promised in
an
arbitrary mold.
more
human
informed
quately
what
siders
Alton
W.
History has often recorded
It be¬
Quite the contrary.
phenom¬
ena of our times is to find min¬
isters of the gospel, some openly
espousing totalitarian measures,
others
apathetic toward
them.
There is one teaching of Christ
One
that
of the surprising
stands
should
not
out.
It
is
attempt
that
to
we
move
Irving Lundborg & Company
Collett & Company, Inc.
Raffensperger, Hughes & Co., Inc.
Sweney Cartwright
October 11, 1951.
a
ever
Perhaps neither he nor we are
to
identify communism
was this
into hate,
plan, or to do lieves we should center our efforts spectable of a people giving alle¬ that caused us to spend a quarter
for
ourselves. on the making of men and women giance to a form of government of a trillion dollars and mobilize
Furthermore, who are themselves competent and long after the substance has millions of fighting men and civil¬
Is not that our ians back home. It caused us to
this camp in¬ disposed
to do the right thing. passed away.
We affect a fear
sists
that
its This is the road we as Americans danger today?
trusted
We
indig¬
an
you
able
to protect our¬
...
he
to war?"
went
we
>
friendly
and Japan,
without
The danger was described
as
us
deeply that
world
When
Russia and the old Italy, Germany
ascendancy of such a doc¬
trine endangers the form of gov¬
ernment we Americans enjoy. We
selves.
"No."
you
The
felt
"Were
Communist?"
labor, to the common man.
into
Communist?"
"No."
nant
be to
may
We
a
tution, he replies with
leading place
To bring the
matter closer
the order of the
ask the citizen, "Are
are
doesn't take refuge in the Consti¬
leged wrongs brought about by a
Versailles Treaty.
It may be to
a
tests
you
It may be to redress al¬
give their nation
of
day.
They
worthy motives.
It may be
restore the glory that once was
Italy's.
them.
in which God created
benign.
and
have
build
to improve the
women,
tees
a
group of rulers.
At first
these rulers picture themselves as
is not the way to
and
subversive
small
the Master replying
hear
that this
of
We
suspect
Commit¬
them
You know is best for
men
The world today is
hear Peter saying
rule.
we
with curiosity and concern.
Make them live the way
them."
people.
pioneer days.
two
can
doubt that some
totalitarian
activity.
Congress catechize
"Oh Master, You are
powerful and all - knowing.
know what is good for the
-
You
of his hours of work, and of the
prices he must pay. Says our safety lies in an awakened citi¬
zenship and there is yet time to get back to self-reliance of
production, of his
I
no
each
but
still profess to fear
we
detest
ferret out those whom
total subjection of
the individual to the State, to a
Christ,
all
of control of the individual's savings, of his
means
have
"socialism,"
or
brings about
they must go see each
individual in person and persuade
told
In pointing out contrasts
a
it
individual
By W. ALTON JONES*
Chairman of the
Today,
and
taught
Going Totalitarian?
9
(1353)
human
Are We
V*^WU^{U(C«WW^V|-)f
Mackall & Coe
Shuman, Agnew & Co.
& Co.
48
10
(1354)
The Commercial and Financial Chronicle
The Outlook for the Coal Roads
the operating expenses of
particular roads. •
^ /
;
Switch
By II. G. SMYTH*
Vice-President, The First Boston Corporation
**
Mr. Smyth states that although coalers have lacked growth
qualities, their carry-through to net has been very favorable,
even equalling record of industrials.
Cites as immediate favor¬
able factors satisfactory coal production levels, and
prospects
for growth of other types of traffic.
dealing
outlook
for
question at
generally with
the
once
the
coal
roads, the
arises whether to
include the Baltimore & Ohio, New
Central
York
from oil.
and
Pennsyl¬
vania Systems,
whose
reven¬
from bitu¬
ues
minous
coal
traffic have in
recent
years
accounted
for
ten
1-3%
was
trend
for
year
has
the
a
favorable
more
about
7.7%.
However,
20% to 25% of
most of this increase is due to the
freight
tonnage
tremendous pick-up in the export
movement, which, through the
eastern
ports
(largely Hampton
is important
Roads), increased during the eight
Obviously
ues.
coal
to
reven¬
these three
carriers,
but
the
favorable
months' period from about 1,100,tons to 19,000,000 tons.
This
(2) Expansion in productive ca¬
pacity of steel and other indus¬
(3)
Probable
continuation
movement
for
some
(4)
of
ity of dividends. But because of
the stock splits of from 2-for-l to
4-for-l which most of the coalers
have
effected, there
tendency to lose sight
be
may
Most
water
a
three
of the very
riers.
substantial earnings and dividends
the par value of their
equities
these roads
over
(5) Possible success of economi¬
cally
producing gasoline
from
coal and expansion of by-products.
have
revenues
turned
which
in
the coalers
has
not
compares
contains
the
number
not,
hand, the coal roads have
over the past
of
period of
this
year and last year,
which figures include both
export and do¬
mestic shipments:
^^5^.
Mos.
End. Aug.
1951
1950
8
Millions of Tons
Chesapeake & Ohio
Norfolk
&
10.6
3.3
Western
6.8
1.3
Virginian Railway—
4.9
2.6
decade, experi¬
enced the traffic growth
acteristic of railroads
of
tons
of
Certain
coal
that
will
the demand for
continue
in the
serving
22.3
the faster
growing sections
of
the country.
As
result of delay in
vessels, there
time
•Reconstructed from comments made
by the author before the Railroad In¬
dustry Symposium, New York
Society
of Security
Analysts, Sept. 28, 1951.
a
coal
about
at
a
had
car
an
shortage
adverse
nor¬
year's production may equal
and
perhaps
exceed
this
level.
j
years.
The
I
reaucrats
:
have
ward
the
word, "share
owner," does,
When
the
various
territories
f
tions."
the
v
e
and
an
annual coal pro¬
produce
highly
satisfactory
earnings for most of the
coal
origi¬
The evidence points to
of production for the future.
any
oj these securities.
the person re¬
real stake in
a
the
Free
tem.
F.
Edward
En¬
terprise
oration
$4% Cumulative Second Preferred Stock
,
October 20,1961
"stockholder"
right to
Subscription war'
expire 3 P.M. Eastern Standard Time, October 18, 1951.
Subscription Price
to
Warrant Holders $100
realize
that
he
of
This is
that
and
"share
not
per
Share
forth in the
Prospectus.
a
Socialism
5,1951
tax
own¬
"share
owners"
constitute
most
America, and they are the ones
who must
provide the mass
sup¬
port to the movement to
save our
Free Enterprise
System, and the
Constitutional
the
framewbrk
upon
which
manu¬
factured goods.
those
any
than
more
which, when out of
control,
spells ruination. "Share
owners,"'
collaboration with
do
can
owners,"
must
for
nor
have
they
example,
are
cational,
scientific
For
purposes.
of
opinion that, if
suf¬
ldqa, they would
agement
to
System is
it
our
cannot
common
be
achieved
and
"share
unless
combine to defeat the Statist trend
which threatens to engulf it.
our-
by
speakers
phleteering
means
that
liberties
only.
,
on
we
The
cannot
and
pam¬
It .requires
all
a
-use
our
more
using
instead
owners."
The
the
very
should
they,
as
management,
are
a
as
part
of the Risk
Capital System. Forti¬
fied by such
better
from
and
those
conviction, they
defend
can
that
System
would
who
weaken
ultimately destroy it.
We
need
across
to
ignite
the
a
nation,
the
prairie
warning
people that only by
holding
inviolate the long and
well-tested
safeguards of our Constitution
can
we
prevent
the
decay
Risk Capital Nation.
education
of
start that fire!
can
our
The torch of
Let
us
place that torch in the
hands
of
those
who
have
the
most
stake—the "share owners"
and
workers of America..
'
'
.»>•
5
eyeryj
their
be
can
"share
owners'
them realize that
make
,
fronts.;; It
must
educational vehicle at
be
and
"share
well
fire
owners"
part
encour¬
in all
term,
term,
man¬
Enterprise
objective,
As
of
^
cooperation
reports
liberty cannot survive.
To preserve the Free
cooperation
obtained
by
eliminating
references to "stockholders"
that
5%, or
part of it, to protect the
Enterprise System—without
which
the
the
encourage
spend
owners."
easily
years
a
"share
trust, they should
Such
they had the right to spend cor¬
poration moneys without the con¬
sent of their "share owners."
I
of the
the
"share owners."
managements have been very much
concerned as to whether or not
am
their
age
welfare
some
heavy
of their
permitted
and
quite
leadership suffi¬
Management
responsibility, for
trustees, guardians
administrators of the savings
a
are
and
that
management
a
strong to resist the pe¬
riodic demands for
these increases
in
costs
that
can
wreck
our
Risk Capital Nation.
My
stop it?
we
management,
provide
ciently
manage¬
Certainly, not by indifference
apathy.
advise
in
hap¬
happening.
That spells infla¬
tion
The "share
owners" do not want that to
made
Pressprich &. Co.
pro¬
duction.
articu¬
that
means
operate the economy.
counterattack
October
small
of
administering
our
government
could "take over" and manage and
fight for
Incorporated
these
important segment of our
economy. They are the
backbone
play
a
own
equally
late.
but
Copies oj the Prospectus may be obtained in
any state from such of the several
Underwriters,
including the undersigned, as may legally offer the securities in such state.
R. W.
management.
upon
Increased wages—if not
trend
by increased
toward
Socialism
in
this
efficiency —
increase the cost of
country, but their voice can never
production.
Such increases are
be as strong in opposing it unless
borne by the
"share owners."
the "share owners" of American
To absorb them
is to increase the
business become
cost of
management
A* G. Becker & Co*
the
really
offset
Free
pursuant to the terms and
set
own¬
The
The
a
millions,
millions, of
owners"
small
on
ers,
many
more
the
more so
imposed
underscoring
an
exceptions,
of
the real
upon
than
sense
It is
are
if not curbed, will
eventually
destroy all "share owners," and
apart eventually the entire economy.
something
not
This
more
telephone employees.
with few
the "share
owners,"
upon
is
of personal
attachment induces closer cooper¬
ation between "share owners" and
some
During the subscription period and after its
expiration, the several Under'
writers
may offer these shares at the prices and
conditions
"big
It is
million "share
two hundred
listed .securities
This attack is
Exchange.
truly an owner of the business; it
brings him nearer to the scene of
words.
the fact
of the
ers
It also makes the so-called
management.
are
"share owners"
ficient number of "share owners"
would
take an interest in this
to the holders of its Common Stock thfe
forth in the Prospectus.
as set
these
Company?
over
majority
Hutton
Sys¬
upon
and
fact is,
that the
which corporations
these shares
bu¬
especially to¬
"big corpora¬
are
over one
The
has
to
to spend for expenditures on edu¬
to
by
ferred
they have the right to deduct 5%
trom net earnings—before taxes—
53,300 Shares
rants
Telegraph
owners,"
thousand
thought that
"Share
Company is offering
the
Who, for instance,
American
Telephone
the
owned
the
y s
could
The
of
labor leaders
corporations"?
Management recognizes the
conclude, it has been dem¬
NEW ISSUE
subscribe
who
owns
used,
a
,
handled by the coalers.
offer to sell nor a solicitation of an offer to buy
offering is made only by the Prospectus.
to
are
been
it is built.
produce the
by the individual coal wealth
and provide the technology
The educational
process I refer
roads, there is the prospect of that sustains our
high standard of to should make it clear that there
growth of other types of traffic living.
must be a profit
attached to
continuation of this average level
Convertible Into Common Stock Prior
so-called
But
r,"
i s
it con-
corporations" which
nators.
(Without Par Value)
even¬
press
has
some
aimed
"share
yet it is
thought is: How
an
the
arrows
and
term,
ment;
The
The
o w n e
pen
This advertisement is neither
will
press.
there
been
small
for
and
upon
own-
of
look
served
This has
effect
fact
and
will
has
f
f
ership.
State
and
that
ly describe the
Taking into consideration the out¬
present
of
Business
aware
and
mal
the
poisoned attitude toward our busi¬
ness
system during the last 20
it.
that
movement;
otherwise
tually control the
word,
tem,
It
duction of around
500,000,000 tons
cars
The
the press should
give fullest
to
this
cooperation
of
from
years.
loading
the
awaiting shipment.
created
also
are
writing
owners
nually for the next few
7.2
15,000 loaded
And
those
the
corporate activity. It also makes
him feel he is a part of the Sys¬
onstrated that
some
of
and
news
borhood of current production lev¬
els of around 500,000,000 tons an¬
To
Total
char¬
so
soft
neigh¬
soft coal
favorably
with the record of our successful
industrial enterprises.
On
the
other
is
Hampton Roads by the
so-called Pocahontas car¬
The following tabulation
only
ranked with the best of the other
carriers, but
coal
overseas
and moved to tide¬
transshipped at Hampton would also seem reasonable
characteristic of
Roads by these three roads for in
the more distant future a
a
long period of the first eight months'
time.* To put it another
way, the
percentage of net income to oper¬
ating
on
at
on
which have been
the
of
originated
majority
"stockholder,"
population
attendant industrial
and commercial activities.
and
accurately these contradictory
influences, it seems reasonably
Overseas Shipment
foreign "isms" mean to "life, lib¬
erty and the pursuit of happiness."
does not clear-
Continued
growth
The
& Financial
'
our
corporations refer to "Pre¬
ferred and Common stockholders."
time
000
continu¬
a
Chronicle:
financial
come.
Among the unpromising factors
H. G. Smyth
as it is someaccounts for a major portion of may be cited:
what
over¬
the increase in total production of
(1) Continued decline of rail¬
shadowed by their ramified opera25,000,000 tons. These figures do road demand.
tions, these remarks are not in¬ not. include exports to Canada.
(2) Increased use of natural gas.
tended to pertain so directly to Apparently conditions
responsible
them.
'
(3)
Increased use of oil for
for the export movement are ex¬
Until quite recently most of the
pected to continue for some time heating.
coal roads have enjoyed ah envi¬ to come.
While it is impossible to evaluable reputation for
ate
relatively high
and stable earnings and
Editor, Commercial
(1) Large planned expansion in
capacity.
export
5% of profits for educational, scientific and
welfare purposes.
electric generating
to
aside
set
factors
developed, the output
eight months esti¬ tries.
348,000,000 tons as com¬
pared with 323,000,000 for the like
period of the previous year is a
socialism. Advocates shareholders advise
corporation managers
to
first
of
E. F. Hutton says it would indicate better
participation of
public in free enterprise system and would aid in
combating
.
increased
36%.
Among
mated at
gain
Term "Stockholder'
output
their con¬
which will influence coal produc¬
tion in the future are:
v77-V'''';'7\':'7'77-'
Suggest "Share Ownei" Replace
20%, whereas oil consumption has
years
this
Oil
kilowatt-hour
higher and
of coal has
sumption
excepting 1949's
production of 433,000,000 tons. So
far
to
Thursday, October 11, 1951
..
TO
EDITOR:THE
For the first half of the
their
year
Estimated production of bituminous coal last year was about
512,000,000 tons.
This
is lower
than the output for any of the
past
Coal
encouraging to note that
electric generating stations burn¬
ing fuel are turning back to coal
declined
In
From
LETTER
is
It
v
these
.
;
•
n).
"•
OctMO, 1951
'.
.
at
co¬
v
E.'F; HUTTON
-
disposal 61
Broadway
to tell the. people just what these New York
6. N. Y,
,
Number 5054
Volume 174
.
.
.
The Commercial and Financial
(1355)
Chronicle
for
Bank and Insurance Stocks
By
Research and
Manager,
change.
tion
and dividend practices.
In the investment field tax considerations have also had a
profound effect upon policies.
It has even been an important
factor in determining the time and form of government financing.
Needless to say, the tax problem has played an increasingly im¬
portant role in the investment problems of insurance companies.
One of the most important elements in this connection has
been the advantage accorded to insurance companies in holding
common and preferred stocks as against bonds.
ever,
basis
"Industrial
policies, methods of financing
pensation
is
a
tax
subject
of
particularly
sustained
discussion.
during
true
in
move
the
stock
common
levies.
1936
be
present.
Of
course,
Despite
1'951
the
the
;■
safe
*5
'•1941
—
1940
further
To
return
illustrate
taxes
after
of
point,
the
3%
a
bond
"Indus¬
trial Average"
12
Albert
stocks
was
of
each
I
"
Thorpe
the
and
the
daily
the
of
was
split,
an
12
closing
which
of
was
A good quality preferred or common
;
used
When
adjustment
multiplying the price
>
gations and increasing dividends from
point is valid.
equities.
'
$150 stock
the
well
is
of
now
value
the
of
one
divided by the low figure
of 6.72 to
arrive
at the so-called
action
market
the
7 Mos.
12-31-48
1950
1951
45.4%
Action of 30 Component Stocks
Stks. with Gains Above "Aver.'
16
17
11
16
"Aver.'
9
5
10
13
5
8
9
Average"—.
Below
pears
at
the
this article
desiring
of
end
full
details.)
Only three stocks, duPont, Na¬
tional
Distillers
and
Texas
"Average" for
three of
the four
periods. These were Allied Chem¬
American Smelting, Good¬
General Motors, Johns
i 11 e, Proctor & Gamble,
Standard Oil of New Jersey,
Union
Carbide, United Aircraft
ical,
year,
M
a n v
and U. S. Steel.
The "Average"
from
December
advanced 45.4%
31, 1948
to July
31, 1951, while six stocks bettered
this by a wide margin. In order
Year
.
Eight stocks failed to do as well
as
the "Average" in three of the
four
periods,
namely:
American
Tobacco, Chrysler, Corn Products,
Foods,
International
Oil
Standard
of
California.
American
Kodak,
Telephone, Eastman
International Harvester
and Woolworth did worse than the
Declines--
"Average" in all four periods. In-
Continued
offer to sell or a solicitation of an offer to
offering is made only by the Prospectus.
This announcement is not an
The
Nevertheless, the
buy these securities.
on
page
-
$10,000,000
,
insurance company is governed to a considerable
extent in its investment decisions by its underwriting operations.
the foregoing tax considera¬
where it is possible,
tions should receive increasing attention in investment of funds.
These considerations have been noticeable for some time in
Associated
For example, some
emphasized their investment
position in municipal and other tax exempt obligations.
Funds
invested in these issues at 2.00% are equivalent to investments
at ■approximately 4.00% in regular corporate, utility or govern¬
investment
the
policies of some companies.
Telephone Company, Ltd.
Bonds, Series G, Due October 1, 1981
(358%)
First Mortgage
institutions, one in particular, have
Dated October
1,1951
ment bonds.
\
~
and
few
Other companies have increased their holdings of preferred
common where it has been considered advisable.
In but a
instances have the insurance companies been
purchasing
governments or corporate bonds.
become the important factor.
f
the fire and casualty insurance
NATIONAL BANK
of INDIA, LIMITED
Kenya Colony and Uganda
Office:
26,
London,
COMPARISON
The
Prospectus may be obtained in any State in which this announcement is circulated from only
of the undersigned and other dealers as may lawfully offer-these securities in such State.
City
5
Bank Stocks
HEMPHILL, NOYES,
VI, PARSOI
GRAHAM, PARSONS &, CO.
'
Available
October
8
AUCHINCLOSS, PARKER
and
Paid-up
Reserve
Zanzibar
Capital
CapitalFund
£4,000,000
£2,000,000
£2,500,000
Laird, Bissell & Meeds
Members
Members
New York
*
conducts every description ot
tanking and exchange business
Curb Exchange
120 BROADWAY, NEW
Trusteeships and Executorships
also undertaken
MILWAUKEE COMPANY
Bell
GREEN, ELLIS &,
THE
ANDERSON
J. BARTH & CO.
HELLER, BRUCE & CO.
YORK 5, N. Y.
Telephone: BArclay 7-3500
THE
ROBINSON-HUMPHREY COMPANY, INC.
Teletype—NY 1-1248-49
(L. A. Gibbs, Manager
^
THE
New York Stock Exchange
.
The Bank
INCORPORATED
\ REDPATH
Branches in India, Burma,
Subscribed
STROUD &. COMPANY
Third Quarter 1951
Ceylon, Kenya
Colony, Kericho, Kenya, and Aden
such
HALSEY, STUART &, CO. INC.
...
„
accrued interest
ANALYSIS
&
17 N. Y.
Bishopsgate,
E. C.
be among
policies of
companies in the future.
Bankers to the Government in
Head
Price
102.31% and
The net yield after taxes has
These same tax considerations should continue to
more important factors affecting the investment
*
the
Trading Dept.)
Specialists in Bank Stocks
October 9,1951.
Com¬
did better that the "Indus¬
trial Average" for all four periods.
Ten
stocks
outperformed the
pany,
Of course, an
Nevertheless,
for
for the benefit of persons
1
Gains
Showing
stocks
rized below. (A complete table ap¬
to 7-31-51
9.5%
with
these
of
past several years is summa¬
General
17.7%
Stocks
a
industrial
divisor Nickel, Loews, Sears Roebuck and
"Industrial Average." The
Average"
Year
Stks.
thirty
the
may
from
suspended in
share of each of the 30 industrials
is
1, 1928, the number of
"Industrial
"Averages"
consolation
be¬
day
12.9%
in
the
as
some
,
of
sum
,1949
Gain
y,"
stocks used in the "Average." The
have
stocks have been
usual
trading is
The
including that total with the
stocks in the "Industrial
as
Stocks
c o m p a n
old stock. Then $50
stock in 1936, yielding
4%, would provide after taxes a net yield of 3.91%. That is,
85% of the 4.00% return was exempt and only 15% or $0.60 was
subject to taxes at the rate of 15%.
Thus, 15% of the taxable
$0.60 was $0.09 and the net return 3.91%.
Currently^ a similar stock yielding 4.00% would give a net
yield of 3.72%. That is, 85% of the dividend is still exempt from
taxation and only $0.60 is taxable at 47%.
~ The difference in net yield between the two types of securities
was 1.36 percentage points in 1936 while at the present time the
difference is 2.13 percentage points.
The proposed increase in rates
to 52%, normal and surtax, will further increase this difference.
I * The foregoing merely illustrates the point and does not con¬
sider such other factors as declining yields on fixed income obli¬
say
ar¬
;
current tax rates of 47% would
i
the
stocks
a
of Selected
"misery loves
of performance these were Good¬
the year,. 112.4%;
duPont,
102.1%;
is substituted Standard Oil of New Jersey,
for $150 in the sum of the closing
88.6%; Texas Company, 81.7%; U.
prices and a lower divisor used to S. Steel, 73.3% and National Dis¬
produce the same "Average."
tillers, 73.1%.
* ; :
fore
split stock by the number
Oct.
when
split 3-for-l, the "Average"
computed
stocks.
were
20.
is
t prices of the other stocks.
On
stocks,
produced
the old basis.
on
been made, or as
of shares issued for each old share
in 1951 at
15%, 2.55%.
A similar bond
return only 1.59%.
of
were
made by
the
that
share
split. For example, if
the; divisor
'? and
1936 would
in
sum
of
"Average"
prices.
one
of
20
substitutions
as
computed
the
' found
by. 12.7,
at
the
value
the
of
each
of
in¬
shares
of
sum
was
•
shown
because
The divisor has since fluctuated
Subsequently, 20 stocks
1937-1936
1945-1942
v
divided
of
number
market
divided
by dividing by
1939-1938
—-
of
decline
the
it
Instead,
total
rived
price
in
cluded
same
was
42
38
40
31
24
19
i_
lesser
the
to
calculated.
the
the discrepancy.
-
overnight
an
Starting
47
1949-1946
share
one
used in comput¬
was
of the prices been
sum
with 12 stocks,
%
1950
price of only
the "Average" would have
the
on
"Averages," it
allowance must be made for
(current)
the
using multi¬
was dropped
focused
Rate
:
by
by the number of stocks included,
seems
Year-
"Average"
«
those whose stocks do not perform
attention
special provisions in each revenue act which tend to alter the
individual composition of the overall rate.
The levies under the
excess profits tax law during the war and currently are not taken
into consideration.
Where a corporation is subject to the EPT,
however, it would tend to increase
If
ing the "Average." Obviously, had
down.
or
and preferred stocks
the
to
the
of each stock
up
tax rates have increased,
as
Market Action
thereto, the method of arriving at
pliers for split stocks
the
moved."
haven't
Shortly prior study
increased to 30.
was
and
it
the advantage in holding
say that many
has also become greater. This fact
is clearly demonstrated when the changes in tax rates over the § investors do
not realize
past 15 years is reviewed.
how they are
Shown below are the tax rates in effect for the years since
Thus
Finds, how¬
derive
whether
rate.
tax
is
are
ac¬
with
stocks
Industrials, up 15
the past several
months, while my ABC and XYZ
as
market,
In other words, only 15% of
the dividends received from common stocks and preferred stocks,
with a few exceptions, has been subject to income taxes.
At the
same time interest
income, with the exception of that obtained
from the tax exempt issues, has been subject to the full corporate
income
from
frequent
a
This
received
exempt
"Dow-Jones averages"
the
during
analysis of "averages."
The
for
account
the
points
misleading picture of stock market. Urges further
a
a
at
industry diversification of Dow-Jones component stocks
create
by
Rep¬
It is not uncommon'
complaint to the effect:
"Look
studies, there is little correlation between the
Average" and its component stocks.
scanned
,
.
their
of
hear
to
reasonably in line with industry group values, but contends
selective strength or weakness in one or two groups can
a
Beginning with the Revenue Act of 193-3, 85% of the income
from dividends from domestic corporations has been
>:
explains methods of construction and calcula¬
"Dow-Jones Averages," and points out, on the
his
of
to
-
is
Registered
Averages."
Market analyst
of the
typical brokerage
a
and
..
"Industrial
Many persons compare the
Members, New York Stock Exchange
tion
for
and
sharp advance
a
board
the
resentatives
dominating influences in our economy.
}
Increasingly they are the important consideration in deter¬
mining practically every major decision in corporate operations.
Their impact has been a significant consideration in deciding the
nature and extent of expansion programs, employment and com¬
11.21
the
scores
customers
Statistical Department,
Baltimore, Md.
is
when
days
office
John C. Legg & Company,
be one of the most
The existing and pros¬
pective rates underline the importance of this fact.
rails
20
utilities is 13.25.
decline, in
or
By ALBERT W. THORPE
income taxes have grown to
Corporate
On
Averages Be Revised?
This Week—Insurance Stocks
i7
15
Average",
JOHNSON
H. E.
the
the
Should Dow-Jones Industrial
11
I
WEEDEN & CO.
INCORPORATED
ILLINOIS COMPANY
COURTS &, CO.
MULLANEY, WELLS & COMPANY
THOMAS & COMPANY
47
12
(1356)
The Commercial and Financial Chronicle
September 24. The initial capital
stock
News About Banks
divided
the
capitalizations
common
Joseph
C.
Brennan
has
John
Trust Company of New York by
Board of Directors and will
Colt
At
the
Daniel
M.
time
same
the
announced
Mr.
Assistant
Treasurer to Assistant Vice-Presi¬
176 Broadway
Garrick
K.
Treasurer.
Mr.
associated
with
in
Company
1946
as
Vice-President
in
Trust
Assistant
1949.
He
had previously been an officer of
Manufacturers
Trust
Company.
Mr.
attended
Brennan
La
G.
Academy
at
Oakdale,
was graduated in 1933
from Georgetown University. Un¬
Military
til
announced
past two
of
*
Hart
bankers trust company, new york
resources-
Deposits
Cash
V 'ourity
Loans
June 30, '51
462,873,941
he
401,205,207
ap¬
discts.
882,466,217
profits
38,629,544
office, it
Oct. 5. For the
Mr. Hart has been
the
37,924,224
From
In
berta
district,
and
'#
Gersten,. President
Bowery
York
Oct.
on Oct.
8 the following
promotional appointments at the
nounced
tant
office, 37 Broad Street, New
Cashiers,
sistant
were
were
Trustees
Bank
of
Also
of
Bank,
New
Farmers
from
&
Mechanics
public,
As¬
Commercial
monwealth
Bank,
of
*
;•
J
:
Peoples
National
Bank
In
the
C.
Horace
Flanigan,
New
Boston Road
to
As
on
larger
will
was
office
new
and
Sept. 27,
National
be
quarters
000
to
$500,000, by
dend of
:<f
page
of
in
our
1168,
the
a
the
con¬
cleveland,
Bank
Bank and Trust
Philadelphia,
the
Ninth
Company, both of
under
and title of the
tional Bank
and
Bank,
the
charter
banks
U. S. Govt,
stock
on
Surplus
New York
medium
fire
is
by
means
un¬
of their
re¬
no
companies, 50%
casualty companies,
amount equal to the mini¬
an
paying; housing equities must be issued only
companies; and various prohibitions against insolvent
voting power, against certain foreign investments,
on
are
more
than
10%
of
its
assets
in
one
spelled out.
Pump-Priming From Pension and Mutual Funds
going into equities will grow, is problematical, but that
be
a
long-term rise
17,924,460
89,934,000
90,934,000
119,503,688 115,939,484
12,000,000
12,000,000
Higher yield from
an
increase of the benefits to employes of
approximately 22%,
through compounding)., Rising yield in the event of inflation can
also help the employer's
problem of gracefully disposing of super¬
annuated and totally disabled employes.
ohio
$
assured.
seems
reduce the contributions by employers,
enable them to increase benefits to their
employes to offset the
can
possible inflation-prompted decreasing purchasing power of the
pension dollars (a rise in interest earned from 2J/2 to 3^2% means
of
18,337,994
Loans and discounts
effective
stock
common
the
funds provide another new market
pump-primer;
though its immediate effects may be exaggerated. The annual
trickle
divi¬
security
holdings
to
in government or the highest grade corporate bonds.
of
case
there will
$400,-
241.328,718 239,758,160
223,025,478 222,396,115
Deposits
Cash and due from
Philadelphia Na¬
became
resources
permitted
are
them
cash flow here, now proceeding at an annual rate of $lx/3 to
$1V2
billion, should soon rise to $5 billion. To what degree the present
at
Sept. 30, '51 June 29, '51
Total
hold
now
against concentration of
even
issue
Philadelphia
the
With
Market
$100,000.
$
safe
deposits
boxes
made
available
by the
bank's
affiliate,
Manufacturers
Safe Deposit Company. The office
sale
stocks,
Pension
Com¬
society for savings in the
city
Oct.
addi¬
the
stock.
indicated
solidation
banking
also
of
quarters at 3480
6. In
new
t'fi
previously lo¬
3491 Boston Road, Bronx,
moved into
$21,000 of
Company
York has announced that
bank's
cated at
of
President
by
of
ties must be income
Clearfield, Pa. increased its capi¬
$126,000
of
use
to insurance
Seventh
tal effective Sept.
27, from
to
common
the fund's investments
National
pre¬
capital required by law for a domestic stock corporation, must
first be placed in U. S. and State bonds or
mortgages; all securi¬
of
County
buy
mum
Re¬
$105,000
*
in
the
.
The
may
of their total assets. The picture
the law, as well as growing
further relaxation
serves must be
National
its capital, effective Sept. 28, from
*
still represents but 0.9%
Such
or
The
N.
State
of admitted assets, or one-
only to the extent of
about 20% of their assets. The
Casualty companies presently have
14.2% of their assets in equities.
National Bank."
❖
to 3%
Similarly, fire insurance companies which
invest
the
Bank,
and
in New York
stocks up
holdings within the present restrictions.
Mechanics
National
Bank,
Bank, National Bank
common
1950; but the latest
amount
Bank,
Western
money
mopping
such
as
stock
newly-
bond
implies both
into
are
the
of stocks held by all life
companies has risen from $280 million in
1948, to $414 million in 1949, to $585 million in
the
welded
Philadelphia National
forgotten names
Independence
The
sistant Secretary.
❖
1928.
Besides
Overall, in 27 States and the
definitely authorized to invest in
(one being limited to bank stocks), with 5 additional
states appearing to have somewhat uncertain
permission. The total
institution
in
institutions.
which
nature
common
commons
Girard
and
and
the
third of assets, whichever is lesser.
District of Columbia they are
companies,
the
appointed Walter
promoted
was
and
1926
appointed Assistant Cashiers.
F.
of Manufacturers Trust
there
10
in
Southbridge, Mass. has increased
Ronald
and
*
tion
of
Bank
trustees
insurance companies
ferred and
restricted.
almost
appointed As¬
Fred
Life
also
we
Bogle
Bischoff
the
on
Tietjen
Dunckelmann
Vice-Presidents;
"Inquirer"
financial
Insurance Company Holdings and Potentialities
The
tional
H. Tietjen, Deputy Controller. Mr.
Charles Edwin Ewald, Assis¬
and
of
Board
the
Franklin Fourth St. National Bank
and the Philadelphia-Girard Na¬
♦
Savings
H.
the
National
later
year
a
*
Trust Company of New York, an¬
Edward
office.
a
policies, (2) greatly in¬
up the bond supply, (3) reduc¬
supply resulting from stock in lieu of bondfinancing, (4) curtailment of capital export opportunities, and (5)
the seasoning of
corporations—many of them with enormous net
working capital and without prior capitalization ahead of the
common
stock, thus entitling it in part to the higher market
capitalization enjoyed by bonds and preferred stocks.
in
tion
Withington, Vice-
Philadelphia National
1948
was
The
main
D.
downtown
for
creased institutional funds
quote:
joined the Bank of Montreal
of The Public National Bank and
York.
Ralph
President,
vehicle
a
specific factors of
many
stimulating this popularization of
easy
Steinmetz,
ant Auditor.
branch.
Chester
E.
and
main
bank's
became Manager of the Edmonton
:
Wilson
Harry A. Mankin and Timothy L.
Lingg,
as
Trust
Officers,
and
Samuel M. Cunningham as Assist¬
appointed
Assistant
Superintendent of the bank's Al¬
486,974,309
844,210,759
&
Undiv'd
been
has
retary to the President.
504,969,112
se-
holdgs.
J.
Ninth Bank President, was elected
today's merger
in his native Toronto in 1931.
After the war, Mr. Hart rejoined major consolidations in the history
of the bank, which was founded
the bank at its head office in
in
1803,
brought together
the
Montreal, where he became Sec¬
1,874,393,430 1,972,570,367
1,675,207,918 1,757,797,747
banks—
Govt,
S.
that
^
arrived at "New New Era"
inflation-consciousness, the swing to
the equity has been
steadily increased by (1) declining yields on
bonds from governmental
"In addition to
due
and
from
U.
en¬
Yust, Wesley D. Turner and John
W.
Zeh, as Assistant Cashiers;
branch in Edmonton, Alberta. Mr.
Sept. 30, '51
the
of
been
as
$1,650,000. Frederic
President
are
have
28.
on
years
manager
Total
share for
one
Hart
Arnold
Street office.
yp.
is
There
Bank
will
the bank's Fifth Avenue and 44th
#
of
rate
of Montreal's New York
was
Mr. Brennan has been at
*
Potts
the Ninth
5
thirty the number of states giving trustees
leeway to invest
maximums ranging up to 50% of a fund in
previous "non-legals."
outstanding
pointed Third Agent at the Bank
and
now
A.
stated
Salle
1
L.-1,
was
page
Observations...
Subscription "Inquirer" also stated:
expire on Oct. 16.
"Mr. Potts also announced the
The issue is being. underwritten
election of Abram S. Ashworth
by a group headed by the First and William F. Robinson as
ViceBoston
Corp., Union Securities
Presidents; William R. Leute, as
Corp.,
Schoellkopf,
Hutton
& Assistant
Vice-President; Bernard
Pomeroy, Inc., and Granbery, Ma- J.
Taylor, Theodore C. Mann,
rache & Co.
Thomas
Annesley,
Charles
W.
*
*
*
Treasurer, and was elected Assist¬
ant
*
Marine Midland
Sept.
on
Warrants
became
Bankers
Trust
from
Thursday, October 11, 1951
..
to
are
the
at
record
Assistant
Brennan
charge of
each 25 shares of common held of
office. Gregory
named
was
tion
direction of
dent. He will assume
the
value
com¬
a
Vice-President of Philadelphia
being offered the National in charge of branch of¬
right to subscribe at $50 per share fices in the Northeast and will be
for 223,352 shares of 4*4% cumu¬ one of the senior executives of the
lative preferred stock
(par $50 bank in addition to Mr. Potts;
per share) offered by the corpora¬ Norman T. Hayes,
Vice-President,
stock
mon
promotion of
from
Lucy
733,000
of $20
larged bank. In the Philadelphia
"Inquirer" of Sept. 24 it was
w
Corporation's
in the Empire State Building, it
was announced by S. Sloan Colt,
President.
in
be
to
Roginski.
Holders of the
of the bank's office
head
C.
?.v
the
become
continue
will
been
Continued
is
surplus is $38,-
stock of
&
elected Vice-President of Bankers
into
par
The initial
bank
340,000
with
initial
undivided
profits of not less than $14,000,000.
The Philadelphia National had acapital of $14,000,000, while the
Bankers
and
of
shares
each.
new branches
revised
consolidated
$14,660,000,
consolidations
new officers, etc.
of the
.
.
Reverting to our previous dividend yield "take-home" dem¬
onstration, the pension funds whose dividends are tax-free, enjoy
a kind of market free ride in
getting the full "take-home" yield—
now a liberal 6%—from which gross figure most other investors
suffer sizable tax divestment.
The Mutual
Funds, of course, are another agency importantly
market demand side the badly-needed lowbracket community.
Their highly aggressive distributing efforts
are importantly abetted
by some new state laws. New Hampshire
permits savings banks to invest up to 5% of deposits in equities
provided that they are mutual funds; and other states (eleven
bringing
into
the
newly this year) permit trustees to use the shares of mutual
funds,
subject to the Prudent Man principle.
As
a
Speculation,
we
offer
The Net Long-Term Effects
To
$299,500
of
the capital
supplies
Alaska Telephone Corporation
6%
a
erstwhile
Twenty Year Convertible Debentures
comparatively esoteric
in
are more
uncertain.
Due August
(Interest payable
monthly)
1, 1971
souces of
over
depressions of
a
seems assured. *
major nature will prob¬
ably deter trustees, in reminding them and their public of the
traditional "dangers" of the common stock.
The
$100 each
too
the
Offering Circular from
your
Investment Dealer
or
the
undersigned.
ESTABLISHED
are
Conversely, there
proportions of institutional
the converse;
&
Co.
Broadway, New York
October 9, 19SI
4
funds
on
can
the flame.
motives here
portfolios, both
maintained
in
the
on
equity
They will here too stimulate
illogical behavior of increasing holdings in rising markets and
and they will accentuate the already too prevalent
"Blue-Chip-itis"
trend
of
inordinately
blowing
up
the
price of the "elite" minority of the market favorites.
market
1\
1931
To
42
"window-dressing" and avoidance-of-blame
extremely important, in their effect
section, and in the selection of issues.
the
Tellier
the short-
Over the long-term, continued growth
be little doubt that the current bull market has
fanned
Price
stock
such capital investment.
effects, particularly
popularity and respectability of the equity share
But short-term market
1, 1951
common
tremendously needed substitute for the tax-emasculated
On the stock market the
term,
Dated August
requirements of the economy, the cornerstone
capitalist structure, this coming-of-age of the
our
Telephone Dlgby 4-4500
itis"
the
profit-seeking
individual
investor, this "Blue
tecting those issues via sound appraisal; whose value will be
ri
'
j
nized
Chip-
increases his constructive?opportunities to benefit?from
and
more
community.
j
*
>
i
r
,
highly capitalized later
on
de¬
recog-
- -
by the Prudent Man
A sound form of gainful style-merchandising!
Volume 174
-Number 5054
.
The Commercial and Financial Chronicle
.
.
13
(1357)
Alfred
&
Elsesser, Kidder, Peabody
Co.
Foresees Increased
Mortgage
Chicago: William H. Higgins,
Paine, Webber, Jackson & Curtis;
George B. Deacon, Thomson &
Financing During 1952
McKinnon.
Philadelphia: William H.
nold, Eastman, Dillon & Co.
St. Louis-San Francisco: New Mexico & Arizona Land
There
late
was
last
week
week
current
of
lot
a
and
in
excitement
early
the
late
the
in
terest
through the medium of
of
mors.
So far
securities
Detroit:
considerable speculative in¬
a
ru¬
be determined
as can
com¬
there has been nothing more sub¬
forged ahead to successive stantial than such rumors to ac¬
new highs for the year and sym¬
count for the recent rise in New
pathetic buying was attracted to Mexico & Arizona Land stock and
the
preferred
vertible
and
stock
income
the
The
bonds.
con¬
pre¬
ferred is convertible into
in
the
ratio
income
the
of
bonds
rate
of
common
two-for-one.
convertible
are
30
The
shares
of
at
the consequent increase in specu¬
lative interest in Frisco securities.
Many people who
position to know
that the
common
Los
for each $1,000 face value of bonds
this
case
pect.
at
time
any
to, and including,
Thereafter the con¬
1951.
version
privilege
changes
25
to
shares for each $1,000 bond.
The
immediate
spectacular
rise
in
the
These
stock.
the New
on
York
the
price
shares
Curb
the
was
New Mexico & Arizona Land
pany
of
com¬
traded
low
as
as
8% earlier this year, and at 18 at
the
opening last Friday morning.
Monday morning the stock sold as
high as 3114. Frisco has a con¬
trolling stock interest in this com¬
owning 500,258 shares. This
is the equivalent of 0.4 shares for
pany,
each share of Frisco common
out¬
standing.
At Monday's price of
3114 the value of this holding was
equal
to
Frisco
$12.50
share
a
the
on
representing al¬
40% of the market appraisal
most
common,
the
it would
record
possible to attribute
&
im¬
be
such sub¬
holding. New
securities has
largely
of
on
been
pre¬
the indirect
re¬
which may well
be false, it is the opinion
many
rail analysts that the
rumors
Arizona is
land
a
com¬
(Special
$3.00
annual
on
regular
a
dividend
basis
and
Co.,
part of the present Frisco Sys¬
tem.
As
the
of
end
of
last
year
J.
&
$6.83.
As
with
other
com¬
panies in the territory, Frisco was
hard hit by July floods. Even at
that, share earnings showed some
improvement for the first seven
months
as
the
year
around
whole.
a
For
the
should
company
and
New
Mexico,
Mitchum,
A.
Tully
Company
Hogle
of
Co.
&
fred
J.
Annual
FRANCISCO,
Barnston
been
is
added
and
more
financing
the
staff
of
Sutro
&
Co., 407
ness
capacity
(Special to The Financial Chronicle)
HARTFORD, Conn.—Edward V.
Mazurkiewicz
has
the staff of Paine,
son
& Curtis,
been
added
Investors Brokers
tional
Association
Brokers at
a
Investors'
of
meeting of the Board
in
New
In
York.
to
to
activity
Webber, Jack¬
support
with Vermont
Securi¬
ties, Inc., 67 Main Street.
out to be an overcorrection."
With
Downs
(Special to The Financial Chronicle)
pointed out that mortgage
money
Hopkins, Harbach
is
already becoming
as
the-result of
plentiful
the present time this land has
not been productive of any great
witness
steadily
was
profits.
broadening
Co.
the New
to
ownership
the
value
of
real
,
LOS ANGELES, Cal.—Kenneth
Grand
is
now
Avenue,
affiliated with
of
the
Los Angeles Stock Exchange.
He
members
earnings and
post-Korean
be
housing
.
buying splurge.
that competition
available
at
terms
for
industry.
„
for his home."
or
.
.
.
a
dividend
of
$0.25
first since 1936.
ations
have
time
some
Oil
been
a
share,
the
on
by the
company but very little has
done on the properties of
New Mexico & Arizona Land. No
been
drilling
and
of the end of the year
as
about
done at all last year
was
thousand
seven
acres
only
were
subject to oil and gas leases. The
recent excitement,
then, has not
been based
oil possibilities.
on
has been based
portant
on
been discovered.
All references
coveries
"hush-hush"
tional
of
are,
on
It
hopes that im¬
uranium
this
drilling oper¬
going on for
properties in the
vicinity of the land held
general
mindful
deposits
have
Jack
Huhn
B.
uranium
course,
the basis
dis¬
strictly
of
na¬
security.
Because of this
secrecy it is rather easy to stimu-
This is
not
an
offering for sale
greater
in
country, Mr. Downs said that in
a
number
of
sections
for
all
types
oi
on
funds.
stant
we
Our aim is to exercise
vigilance.
are
con¬
With this in view,
at
instituting for
our
The Harshaw Chemical
mem¬
to those which
we
have been
buy these shares.
Company
4V2% Convertible Preferred Stock
con¬
($100 ParValue)
ducting
in New York City and
Chicago for the last 12 years."
Other
officers
the Board
mond
J.
and
members
chosen
were
as
Price
of
Vice-President: Ray¬
Copies of
Laude, Goodbody & Co.,
Secretary:
E.
the
William Ohman,
Co., Chicago.
Treasurer: Milton
the Prospectus
such of the several
Detroit.
E. F. Hutton &
undersigned,
Thomas
B.
Meek,
bert
J.
may
Share
be obtained in
any
State from only
Prospectus, including
lawfully offer these securities in such State.
McDonald &
Company
Commit¬
Francis
I.
Eastman, Dillon & Co.
Hemphill, Noyes, Graham, Parsons & Co.
,r
_
Curley,
per
Underwriters named in the
as may
Leeds, Persh¬
Executive
$103.00
follows:
Regional Vice-Presidents: Frank
M. Collins, Hornblower &
Weeks,
Chicago; George W. Martyn, W. E.
Hutton & Co.,
Philadelphia; Al¬
all Times
lo
40,000 Shares
throughout the coun¬
try educational programs similar
tee:
Selected Situations
solicitation of an offer
bers in cities
duPont & Co.
SECURITIES
or a
Bache
&
Shields
&
Company
■'
'
'
Dean Witter & Co.
Blair, Rollins & Co.
Incorporated
Paul H. Davis & Co.
Co-
Merrill, Turben & Co.
Detroit.
£J/.Wnim v&
Broad;$tp«et
"
New York 4, N.-Y.p\
Telephone BOwIing Green 9-64O0(y.i j.
Members
Assn.
Securities Dealers,
York:
Richard
M.
Iqc.
F. S.
Co.; Armand Fon¬
taine, Merrill Lynch, Pierce, Fen¬
ner, & Beane; Robert J. Davidson,
Fahnestock
&
Co.;,
Donald, C.
Blanke,
Eastman,
Dillon
&
Corporation
Hayden, Miller & Co.
Ross,
Dean Witter &
*(y(y%
25
The First Cleveland
GOVERNORS
New
Co.;
October 9, 1951
Moseley & Co.
the
property
has grown faster than supply.
ap-
meetingthe public and handling its
Chairman,
RAILROAD
offer to buy
of
spite of the budding boom./demand
re¬
sponsibility
ing & Co., N. Y.
Specialists in
or an
.
real estate demand has fallen off
The offering is made only by I he Prospectus.
places
those in the securities business for
Executive
to
is
that
,
.
,
.
the
saver
Referring to recent claims that
Our
association
of
He
veterans'
recently
one
for
Xs rrt'oS anTthatCs
would
formerly with Noble, Tulk &
a
is to b
more
high
reaction from the
Classically,
prime objectives of the U. S.
American
amounted to only six cents.
Mainly this came from rental of
grazing rights. The company paid
year
,
means
of
Mexico & Arizona Land stock last
estate
mortgage collateral
has
gained value for six straight
mont"s'
;.
months.
Looking ahead to next year, Mr.
to
the
Mr.
an?
was
not caused
by any
change in the demand for mort-
E. Mangum
gratifying
cur-
.inflation,
on
Downs told the bankers that the
mortgage commodity dollar—which he said
months
111 Pearl Street.
Hopkins, Harfcjach & Co., 609 South predicted
is
emphasis
reflects
stated,
on
Commenting on the major
rent
have
decline in mortgage
during the past lew
ing Mr. Huhn
"It
cause
single-
"Johnny Public has not by any
lost his confidence in the
arbitrary shift in the mortgage U. S. dollar," Mr. Downs claimed,
With Vermont Sees.
money market.
As is always true "During the past several months,
(Special to The Financial Chronicle)
in a managed economy, the regu- he has saved more of them for
BRATTLEBORO, Vt.—George lations which
were adopted turned
future use then he did for many
A. Mark is
address¬
in
fin.gA?S ^°°d a y^ar +S 5?^
*as* three, according to Mr.
Downs.
"The sharp
Governors
of
curtailments
0 r
fhese classifications will keep 1952
gages, but rather by a radical and
0 Jack B. Huhn, of Bache & Co.,
was elected President of the Na¬
j
Declines in mortgage lending in
consumer
loans.
company.
About its only other
asset was represented by
$921,000
of. government bonds. At least up
share
Asso-
will
be
peak purchasing power and a high
Paine, Webber Adds
a
share, affording
adequate protection for
individuals
and
will
commercial buildings is definitely
«louded
government restatebons and a lack of risk capital.
77th
activity,
ing the meet¬
per
a
others
inSs> hot0 ®nd[ certain classes of
part
Mr. Downs
said: "The next year will see a
Montgomery Street, members of
record number of potential propthe New York and San Francisco
erty users of all types. Both busiStock Exchanges.
to
of the
Earnings
more
cer-
supply
restricted,
The outlook for financing new
construction of apartment build-
was
a
Whereas
famhy home starts."
•
name
by the
m a
Claming that mortgage lending
Calif.—Al¬
has
as
the
months.
nejther of these factors will
The
the
of
na-
said;
Downs
now there has been no real
of materials for home
few
an(j
at The
ciation.
Financial Chronicle)
would
indicated
held
jr.
Convention
Mr.
tain metals will be in short
American
meeting'
c. Downs,
of
SAN
pasj-
e
ot
Chicago
With Sutro & Co.
(Special to The
and
t g a g
ciation
as
be
o i
tne
Lynch, Pierce, Fenner
politi-
construction, even at the high rate
0f building which has marked the
Bankers Asso-
Co.
the
shortage
tne
Division
California.
Co., Fewel
ot
ing
"UP to
tne
Meet-
bavin gs
and
further
a
as
in
cal action*
Jl?"
told
Annual
M
or
'%i
As to the influence of the
cago,
previously with
was
&
&
markets
developments
0
Tnrnn" ti0nal security Program On 1952
Corpq
Chronicle)
Beane.
earn
Huhn President of
money
10
of
construction,
full
the recent dividend rate.
past
result
Downs, Jr., Prcsi-
South
Russell
$6.00
than
proved by Congress—either
greater
search
searcn
James
$6.92.
Even after such
funds, available earnings amount¬
to
the
Spring
Street,
members of the Los Angeles Stock
Exchange. Mr. Lee was formerly
reached
561,000 acres. The properties and
mineral rights are located in Ari¬
zona
634
earning power is high.
Last
per-share
results,
before
sinking and other reserve funds,
whose holdings
represent
granted to the old Atlantic
Pacific Railroad which makes
up
years, Jsmes C.
its
ed
be
of
become associated with Morgan &
year
lands
it held outright some 790,000 acres
and had mineral rights to another
to The Financial
and Merrill
is
Vinson,
financing de-
will
average
LOS ANGELES, Cal.—Harry L.
Lee and Kenneth D. Russell have
merits.
stock
R.
1952
the
Fent
probably not
particularly overpriced on its own
The
James
mortgage
in
With Morgan & Co.
pany
&
Rock:
Mr.
is
Basic
mands
than
Pacific
now
Wesp,
Arthur J. Lattimer, Jr.,
Lynch, Pierce, Fenner &
Little
with
even
E.
Shields & Co.
of
common
Walter
Beane.
prove to
any
stantial value to this
Mexico
dicated
more
of the latter.
On
in Frisco
sult
for
cause
in Frisco securities
run-up
Even though the recent advance
up
Dec. 31,
pros¬
William
Seattle:
have
or
Angeles:
Merrill
convinced
in fact
Downs, Jr., President of Real Estate Research Corpopation of Chicago, tells ABA members 1952
demands for
mortgage financing will be greater than
average of past
decade despite government restrictions.
Francis I. duPont & Co.
a
are
in
rumors
little basis
very
should be in
Auch,
James C.
Roney & Co.
St. Louis-San Francisco. The
mon
Walter
Ar¬
Riter & Co.
0
14
(1358)
The Commercial and Financial Chronicle
We Face
This is
real pleasure for me to
be here with you on this occasion.
a
1 notice
that the
that
would
I
extend
of
months,, and
ginning to face
the
m
mi
r
world
hardy characthe
of
ter
it
cause
are
not
t
terrible
con?
with
those
and
periodic
greetings from
at home.
have to
W.
the
Snyder
facts
I
are
of
am
pro¬
is
of
was
as
here
with
way
because I recall at that time
the
was
biggest Convention
that the A.B.A. had
now,
one
five
still
Five
years
ever had; and
later, they have
bigger.
years
ago,
gathered
we
here to take a look into the future.
The war had been over a number
First
General
Convention
by
Secretary
Session
of
of
the
Snyder
the 77th
American
the
been
better
our
so
well
applied
to
land, to better the liv¬
ing conditions,, and to better the
as
We have found it necessary dur¬
five
those
bankers
we
courage,
in
the
long
run,
sacrifice, and
been
in
the
history
deposits
after
wartorn
a
folks
out
time; and the
of
are
enter
we
surplus
of
at
Treasury De¬
$8
over
Our national debt at the
gathered
billion.
here
in
Today
it
1946
is
in
the-
higher
are
a
billion.
time
we
wisdom to
other nations, peace-loving
nations, to find themselves again
have
we
of great
years
the
into
this
defense
and
us
so
as
pro¬
sorely
possibly the
job that
a
do; and in the few brief
that
there
me,
today
us
trying
months
moments
to
with
ahead. But it is
must
we
experience. Those
allied
have
been
allotted
just two things
are
to
bring
So
can
part in.
**, ;
billion,
so
we
have come through those
five years even though
they were
the
The
first
is
the
matter
en¬
best
myth of
tangled
of
a
is
a
up
in
which
Annual
our
i
Today
ago
long
affairs towards
perity.
A-
years
a
could
we
we
we
wefe
program,
ment
period
peace
*'
,
V
straighten out
a
stable pros¬
don't
and
know
and
worst
If
to
form
we
put
of
the spending for equip¬
for
those
grow,
with
ness men or
do
with anything dear to the heart
not
unlikely
to you
f
*i~
-*'t
that
'•
-t
-if:
a new
1
steel
magnates—then
you
simply
don't know meteor!
Meteor is the
to its
not
vanish in
ladies will
grance
one
see
to
Coty concept in
name,
named, however,
a
don't
we
be
to
do
faced
terrific problem of spend¬
scarce
articles
as
they
for
become
during
so
But
get
if
the
do,
we
each
if
program
of
we
months
we
to
person
before—if
savings,
can
start
start
do
as
a
I
that-=-
we
get the composite of that
volume of savings, we are
the
pressures
are
going
of
hands
World
of
per**
knows she will be
perfume. Whether
you'll discover it
you
very
high
one
know it
day, too.
7
do, you'll know why such
feminine
as
thing
in the lives of
perfume
came to
a
belong
men.
humbly dedicate the fragrance of
meteor to
the ladies... God bless them!.
spectacle for which it
meteor de
sudden butst of
Coty will
beauty. The
that! This dramatic
to
new
at the
have
one
which
banking
is
fra¬
administration
to
of
bankers, is
responsibility. We don't
you
like controls. I know I
don't, and
I
You
don't
said
so
think
do.
you
number of
a
on
have
occasions.
But the best way to avoid those
controls is for you to do a
bang-up
job
in
the
credit
I know it is
up
at
a
field today,
v
tough job to pass
good loan,
a sound loan, and
earnings of the bank;
the
have
got
to
take
look
a
the
for
future; and if that loan is
something that is less essential
and
would
tionary
we
a
have
tend
to
bring
infla¬
pressures,
then I think
to have the courage and
stamina to stand up and
say "No."
You have got an
equal respon¬
sibility.
hear
I
know
during the
sessions
a
lot
ment. That is
we
are
course
about
the
going to
of
these
govern-;
maybe very proper;
fra¬
their hearts—
COTY
the
close
most
I want you, to know
the
greatest
J
thatJL have
confidence
that
,
the
ability banking fraternity is going to
ap-ji
in
along at u proach this job with great couragt
courage^
the postwar. and great determination.
tination.
*
Y
on
level, in
remem¬
And when you
II
carry our. economy
the truly "great" perfume
woman
not...
people
War
it is destined for
will be loved—taken
or
We
new
stardom. Unlike the
was
A wise
•'
affect the lives of bankers, busi¬
know your ladies. What's
more; you
fume. True
among
bered by her
'
That,
we
States
is
the
proper
real
to
United
Savings Bonds—-if
that, we are going
great
the
but
in
item
to
ternity, and that is the matter of
add
be
i
placed
'
other
will
I
t
close
very
a large
earnings in the
savings of some sort—
hope a good sprinkling of
classics of all time.
•-
this time
important bearing
it gets
<."•
at
the* months
Support Credit Restrictions
their
of
of
them
ing
people
encourage
to
the old
can
we
inflation.
not
away
volume
form
and
do
in
extent
ahead.
a
equipment around the world
as
-
perfume
that
from these folks
with high levels of income
today;
and the person
that discourages
savings is definitely guilty of the
personnel and'for
distribution of. the personnel
the
"man's world"... when
seems
possible
you,
the
The
insurance
more
urge
even
woman!
So if it
of
do
couraging savings—savings in any taking a tremendous pressure off and I am
going to listen to it; but
though It fQrm—if we want to stabilize the the scarce market, and we are I want
you to listen to yourselves,
caused us many nights of con¬ value of the
dollar, if we want doing another thing. We are build¬ though, as
you go along, to hear
cern, many gatherings of. consul¬ to stabilize our
economy in these ing up purchasing power for the the voice that comes
from your
tation. We have come
through in days of inflationary pressures— future that will be the
backlog heart as to whether you too
pretty fine shape. But now we apd they will come again with¬ of a
long period of prosperity haven't a real responsibility * to
are gathered here
again five years out doubt,-'even though ..we have when we solve this
defense pro¬ make an orderly procedure out
later and facing an even greater, had a
respite for a few months gram.
of your loan portfolio and make
perplexity. This is one that is in which it sort of leveled off. But
I
am
quite certain; that the it as anti-inflationary as possible
tougher to face because we did as the pressures of this defense
great volume of liquid savings in during these
trying times.
troublesome,
swiftly exploded
so
consider
earners,
*44
.Nothing
going
freely.
each of you, to
encourage savings to the greatest
I
wage
wh'en
of
are
earnings
credit.
little
Savings
materials
pressure
we
a
is to encourage the
largest pos¬
sible volume of
savings from these
said
Encourage
$255
and
possibly take out at this time
ahead.
very ac-
definite
when
to go out and spend their current
econo¬
labor
have today,
we
and
a
of
high level of national income that
that I want to appeal to the bank¬
tive
civilian
our
deal
a
inflation
ing fraternity to take
$270
was
great
a
great ueal of the raw
and the products which
help
years
net
Association, Chicago, ,111., Oct. 2, 1951.
■:
have
a
partment for five years has had
at
;
materials and the labor that could
debt
great
occasions turned
hope that five
Bankers
with
war
a
During
going to have
♦Remarks
the
We
gram which is
this
a
that
of
country;
you
very new Secretary of the
Treasury. Chicago, somehow, has
a
way of doing things, in ? a
big
from
obligation,
I think that
be,
ever
an
gathered
unchartered.
level of economy. Our own banks
are in better shape than
they have
many
five years ago at this time
I
path be¬
our
ing these past five
to
be back here after five years with
the American Bankers Association.
that
of
Program"
necessary
had five years of exceptional high
anniversary to be
here enjoying the wonderful hos¬
pitality of this great city, and to
It
sure
it
to do a
unhappy and a very dis¬
tasteful
job, a very distasteful
program, and that is to build up
a huge defense program,
using the
prob¬
ahead of us. We
were
Distasteful
find
very
the
concern
Very
We
to take out of
my
operations of bur country.
some
particularly because this
sort
"A
a
done exceptionally well in
overcoming the problems, trying
as
they were. Disappointing as
life.
reasons,
faced, with
have
away
happy to be here for
We
will
re¬
economic
years,
gram when
from home having
a
good time. They want to stay
case-hardened,
I
guess,
to
the
they
the
and
path
solve ' them.
They
put it
on
preseht
problem; and we
were not
quite certain as to the
appropriate measures to take to
Treasury
they get
that
met
was
emerged
t
the
of
weren't too
country. They
e n
be
conflict.
great deal
lems that
banking
fra¬
ternity of this
John
to
construction, the reorientation of
our
economy after that terrible
the
e
had
that
Treasury. You
know,
I
ad-
just be¬ where our
the problem •lead us;
we were
up to
Thursday, October 11, 1951
period because it gave courage to
the people who had those savings
Secretary of the Treasury
greetings
v
fro
..
Tough Job!
a
By HON. JOHN W. SNYDER*
president stated
.
our
Volume 174
Number 5054
.
The Commercial and Financial Chronicle
.
.
(1359)
>
v :i
*»**•«!« *
#
»
t<-
■i
>
■
.<
* tttti #*»»# ttmmm
tl• ••<•«*•*#«*«■*
r
a«««««*«£. r
if
.
*
JW:Tn"n
rfjiNtn
:
-
.
itp
*#>: '
Mft«
:
'j i ftsi I
«
v:W
■'-■
:mm
■
:
I i« I
tr» I
;
rap;
i
»*:**:$■:« f
■mm
mm*-
:
♦•!#**.
!$.%%$ **•*
mm*
»
*
J: «WV
\t$ '$ &<H» • V»
I 4> 8
•«»«»'»
*,
'
'•
t
>
,*v
':*
v/
:, «**% ** •&**
•»•;
<v-
.
.Mf >*##*!.
,-.y/
;
w
...£'
*yy
.'H
:
**
8
«■••/<:• '•* .-4^^
•$?*»**.«*/*
#■. ■#. ** j& y# yr.'
»!i
v
w»*x
^ f ^fcSfr'4*
'
.
„V
w,—
^v,
& <fc *
•/.»*'.
*
•
'.,
....'
<•
-
'
./..•..,
v,
•'
■% ,
<0,
"/
■
♦
;■ -
.
j
-mm
:
'
'*'■
■"
•"
;' 4.
■
■■'*
"
•
"
'y*'
v
r
■'■■■
V."V-'
■
<;■;;y.,
-y.
•
;
,
■>>•;.
•.
winds. This largest
"super¬
sonic", wind tunnel in the world—at the
cave of the
National
Advisory Committee for Aero¬
nautics, Lewis Laboratory, Cleveland—is
capable of providing air velocities
twice the
research.
measures
of
up
to
speed of sound for aeronautical
The
8
tunnel's
how to
testing chamber
by 6 feet, and has flexible walls
highly-polished
swing a
steeple
pleting the 80-foot lift of
to
U'S\S Stainless Steel
swing it
over
80
a
feet
up.
Here
are
two
cranes
com¬
prefabricated steel steeple, and about
its base. United States Steel has
won a
world¬
wide
plates, specially made by U.S. Steel for.
reputation as fabricators and erectors of steel work for
everything from football stadia to church steeples, from bridges
this vital defense
to television towers.
project.
This trade mark is your guide
.
V
giant sheepsfoot roller.
Army Engineers find this odd-look¬
useful tool for compacting and
leveling off fill in the construction of airstrips. Although the
ing, 36-ton steel roller
a very
.
.
facts
y
to quality steel
.
you should
prietors of auto "graveyards": Turn
too.
Listen to
money
Memo to manufacturers, farms and
program.
for
you, more
•
GUNNISON HOMES, INC.
.
The Theatre Guild
on
•
your
scrap! It
soil for the next crop.
pro¬
means
peanut combine threshes
saves
steel for America!
gathers
up
nut-laden
In tests, it has reduced harvesting
hours per acre from 30 to 4, lets two men do the work
•
$40
Ct°
COLUMBIA STEEL COMPANY
•
an acre.
a more
man-
of 12,
Making steel for such equipment, U.S. Steel
productive America.
•
TENNESSEE COAL. IRON & RAILROAD COMPANY
UNITED STATES STEEL PRODUCTS COMPANY
•
UNITED STATES STEEL SUPPLY COMPANY
•
<~SuiM ^Setter^imerica,
a
CONSOLIDATED WESTERN STEEL CORPORATION
OIL WELL SUPPLY COMPANY
NATIONAL TUBE COMPANY
•
new
are grown,
the Air, presented every Sunday evening by United States Steel. National Broadcasting Company, coast-to-coast network. Consult your newspaper for time and station.
AMERICAN STEEL & WIRE COMPANY and CYCLONE FENCE DIVISION
UNITED STATES STEEL EXPORT COMPANY
in
row
helps build
UNITED STATES STEEL
AMERICAN BRIDGE COMPANY
goals set for if by our
;
..
This
where the peanuts
vines, picks them clean, and deposits the mulch to condition the
outside the industry, if it is
achieve the record steel production
defense
uses,
new way to gather goobers.
30 million tons of high grade scrap
to
defense program
tial everyday
In
steel.
along the
the
will require increasing amounts of steel,
constantly-expanding steel-producing facilities of United
States Steel should enable it to supply steel for many essen¬
about
know
1951, the American steel industry must be able to purchase
•
•
UNION SUPPLY COMPANY
GERRARD STEEL STRAPPING C0MPAW
•
•
UNIVERSAL ATLAS*CEMENT COMPANY
UNITED STATES STEEL COMPANY
•
VIRGINIA BRIDGE COMPANY
15
16
(1360)
The Commercial and Financial
Chronicle
Our Money System Has
In our Convention
city of Chi¬
ago, William Jen¬
55 years
cago
nings Bryan delivered
most
masterful
political
of
By ARTHUR A. SMITH*
women
Pointing
went
with
en¬
they
Bryan uttered
sen-
tence:
Warns
generate.
shall not press
down upon the
of
excess
brow
is
both intolerable
of
labor
thorns;
I: shall not
Dr.
Arthur a. Smith
cify
of
that
more
was
cross
a
free-silverites
the
fetish
dead.
of
It
money—
Bryan
money.
not
cheap
lost
of the
money
engineers
capitalism.
and
twentieth century, our be¬
seems
none
the less
as
we
grope again for a "satisfac¬
tory" money—one that will
the
form
but
functions
was
the
of
called
commerce
of the most
one
money
difficult of all
economic
phenomena to under¬
What it is; where it comes
stand.
from; of what it is made; what it
does; what it is worth and why—
those
and
countless
other
perform
and
some
at
the
per¬
much
in the
authorities
baffle
monetary
which
if
ques¬
a
bearer of
modern
On
options, and
a
same time
expect it to submit to "con¬
scious social, artificial control"
as
or
stimulant of
eco¬
nomic
just
officials charged with decisions
invented
even
at the expense
abandonment
prise
of
system—a
of
the
complete
free
price
in
claims
assumption
as
a
perhaps,
better
the
expected of
trate
too
hands
of
to
1861,
we
strug¬
ard
but
money;
the
result
money economy,
pecuniary society, because every
of its industrial
activity
enter¬
dear
three
struggle
the
group
Then after
decades
over
of
the
,
"Battle
Standards"; and for
of
political
the money question,
"sound
money"
so-called
won
than
more
bitter
a
of
brief
the
third
a
century (1900-1933), we put
faith in the gold coin stand¬
ard.
We liked to think of its as
our
or
still/
own
phase
returning to
a
flame,
seems
to
divest
himself of illusions about
money.
Perhaps a part of the answer
lies in the fact that the
nature and
never
structs
efficient
and
distribution
to
processes
too
few
willing
ex¬
upheavals continued to plague
us.
to remove the basic
for
in
the
the
good
of
causes
the
of
t
any.
rate,
today
traditional
part
more
in
the
of
left
1878
efforts
and
Commerce
the
and
Act
their
1879
in
and
the
silver.
were
of
Sherman
1890.
to
They
block
the
decisively beaten
election of 1896 over free
The Supreme Court turned
victory into defeat
tax.
Efforts
the income
on
to reform
the
bank¬
ing system and to create a guar¬
anty of banks deposits had to
await a more propitious time.
Many
"radical"
objectives
for
which
riod
f
constitutional
is
than
money
being required to play
Acts
Interstate
1887,
in
Monpy Engineers May Wreck Us legislative
At
Gov¬
they
minority groups of that pe¬
contended, and in some in¬
stances fought
bitterly, eventu¬
the
ally came to be realized either by
maldistribution.
its
Federal
Nevertheless,
resumption of specie payments in
of
concen¬
income
much
the
Anti-Ttrust
is. produced, the
being -that somehow
economic
of
lost
what
was
favor of the metal overrated in
the legal ratio. Under the strain
of the Civil
War, the metallic
per money.
1890,
we
of
monetary and fiscal techniques
alternating standard always in instead of the reforms
necessary
an
upon one's qualities it had were
yielding to
economic status.
elements
of
management.
To
Our experience to date has
not those who naively believed
gold
involves money in one or more been encouraging.
to be impervious to
Apparently the
political will,
planners who would stabilize the it must
relationships.
have come as a severe
nation's economy on a
A mystery yet to be solved
perma¬ shock when the President reduced
is
why after centuries of experience nently prosperous level and bring the pure gold content of the stand¬
security for the masses fail to ard dollar
man has not mastered the
by 40.9% in 1934. One
money observe
the
instability generated thing is certain: the gold coin
device, but persists in repeating
again and again mistakes of the by their own plans.
standard was not the answer to
(1) An unstable currency ab- the problem of
past, and like a moth
instability. Great
a
to
standard that will
mon¬
here
wider
a
auto¬
influence
automatic—beyond political tink¬
acts in a democratic so¬ cheap depending upon one's eco¬
ering. Yet long before its aban¬
Our economy is frequently nomic and social philosophy, or
donment, whatever automatic
referred to
control
Purchase
Act
through monetary and
policy
to
undertake
to
achieve
buy
their legislative marks in the Sil¬
properly
again
But
to
or
crop or to
monopoly.
ernment.
may confuse cause and effect and
be tempted
hand,
an
official
ciety.
people.
fiscal
so¬
activity in an authorita¬
sys¬
tively directed plan toward per¬ tem broke down
completely and
manent full
employment, a stable was replaced by legal tender pa¬
us,
of monetary
administration, but to
all of us whose votes
the other
her
farm
a
a
strong enough to
win
may not
value, gled/ futilely to maintain both health of the
economy. Of course
bank¬ gold and silver as automatic stand¬
expediency might impel the use
ing reserve; but at the
energizer
admin¬
borrowable
more
groups at times attracted
considerable following, but at no
time were they
to take the cure."
istered
their behalf.
we
an
—
limited and
not
and
finance
All
of peaceful and
constructive purposes
power or how to distribute
time and endanger our democratic
economic ciety.
History bears witness
ponder them.
to
trial
hands
power
same
price level, and an
appropriate
if and when we
But since money is utilization of our capital and re¬
sources.
so
Noble as these expecta¬
intimately
and
thoroughly
bond up with the nation's eco¬ tions may be, it is seriously doubt¬
ful whether all can be
nomic welfare, a well
realized
grounded
understanding of it must be of together; some might be possible
the highest importance, not
only at the expense of others, or
tions
unwilling
to
home, and freedom from indus¬
a
history." Concludes deflation
our
wisely could impair the
monetary functioning of the entire economy
traditional
miracles.
Yet this commonplace,
everyday
tool
funds
make and harvest
rocks of inflation
us on
destructive, and vicious spiral of inflation
Most
We not only want our
people take money for
money no one yet has
granted. They view it
simply as to serve as an efficient medium matic monetary
what they use to
pay for things, of exchange, a common denomi¬ do the job now
and generally their
money prob¬ nator of value, a standard of debt ey. From 1792
lem is how to get more.
payments, a storehouse of
is
wreck
may
terest rates
Holds expansion of national debt is basis
with "cheapest dollar in
money,
wilderment
and
cheap money
lives today.
money
mistakes. Cites history of dollar
planners fail to observe the instability
money
ver
1896,
in
our
labor, cheaper
which to
pay
his
with
debts, lower freight rates to move
his crops to market, an income tax
based on ability to pay, lower in¬
unsolved
as
cru-
The great political issue
day
lives today, bank economist lists
be stopped because "patient is
you
mankind
upon
of gold."
of
money
persists in repeating
man
and thus hasten end of
"You
crown
cheap
example, and contends
as
thusiasm when
the final
out fetish of
mystery why
an
irresistible
this
his produce and his
money
and
men
mad
democracy do more for him
economically — higher prices for
time.
Twenty thou¬
sand
make
First National Bank in Dallas, Dallas, Texas
orations
all
Thursday, October 11, 1951
Inflation Bias
an
Vice-President and Economist,
of the
one
...
eco¬
amendment
process.
or
Foremost
by
were
the direct election of United States
Senators, the income tax, prohi¬
bition, and suffrage for women—
all of which
required amendments
and as a conse¬
to the
Constitution; the regulation
the so-called problems of
of child labor, minimum
wages,
money have become inseparably
reduced hours of
intermeshed
work, unemploy¬
with
problems
of
economics generally. In the colli¬ ment insurance, old age insurance,
nomic
drama;
quence,
sion between those who hold
that
the fundamental trouble lies
deep
in
the
economic
structure
and
those who contend that it is fi¬
nancial, the latter to date have
dominated authoritatively. Histo¬
rians
of
the
future
record
may
this fact as a fortunate circum¬
stance since it might have served
to deter hasty and ill conceived
modifications
fore
we
them.
were
On
the
compensation,
limita¬
a
a
Department of Agriculture, and
Department of Labor, crop in¬
surance
and
the
support
of farm
prices, public works expenditures
in
times of
the
estate
interest
on
industrial depression,
the taxation of
Federal Government
tax,
bonds, postal savings, the insur¬
ance of bank
deposits, the retire¬
structure long be¬
or
basic economic
workmen's
tion upon the use of the
injunction
in labor
disputes, establishment of
reforms
in
ready
to
other
hand,
the
accept
the
engineers may wreck us
the rocks of inflation and ha¬
sten the end of
capitalism.
money
on
ment of national bank
the creation of
an
notes, and v
elastic currency
—all
by acts of Congress.
■
realized, but continually
urged, were public ownership of
Not
change of goods in the market
the railroads, telephone and tele¬
Many conflicts arise over dif¬
It could be
true, as some assert,
place and attaches undue
weight ferences in business cycle
graph systems, coal mines, and
theory. that we are in the midst of a
to
speculation on the value of
utilities; the direct election of
Fortunately, we know a great deal great economic
character of money have
revolution, and in P r e s i d e n t
evolved money itself.
more
and Vice-President;
about business fluctuations our
efforts toward adaptation we
through the centuries, changing
(2) Industrial
than we used
strife
compulsory arbitration of labor
between
to, thanks to im¬ are straining every economic
as
insti¬
progressive economic develop¬ workers and
in
disputes; free and unlimited coin¬
employers is pro¬ provement
analytical
tech¬ tution to the
ments demanded new and
utmost, including
differ¬ moted by a constantly
rising cost niques and more accurate statis¬ money. For certain, we have wit¬ age of silver; payment of the
ent behavior on the
part of mon¬ of living.
Federal debt in legal tender pa¬
tical measures; but we still are
nessed
in
this
generation
far
ey. Thus, there has
(3) Fair contracts involving de¬ far from substantial accord on
always been
per money; the recall and refe¬
reaching changes in our economy
something to learn about money ferred payments are
the basic forces which
impossible
generate an;d in the way it functions. We rendum, except in a few sttaes.
as it assumes new
roles. Or per¬ when the value of
It is abundantly
money is not the cycles; and, therefore, we are have seen the role of
evident, then,
haps money is only a neutral reasonably
government that
at variance on a treatment of
reforms sought in money and
steady.
the expand to the
thing and its behavior merely re¬
point where large
(4) Depreciating money
disease. Too
Ranking, while of great import in
dis¬
frequently our think¬ segments of private business now
flects the little
understood, subtle courages saving; and under cer¬ ing mixes cause and effect. We
themselves, have been only par¬
currents of real econdmic
generally concede their depend¬
tial manifestations of
proc¬ tain circumstances actually makes observe
something
unemployment, reduced^ ence upon government decisions.
esses; and all the
of far larger
while, we at¬ saving impossible for many peo¬ consumer
magnitude—an eco¬
spending, low incomes, Attempts to dam the currents of
tribute the
causality to innocent ple.
nomic and political revolt
liquidation, and frozen credit as change by
against
money. Or maybe in
invoking the Constitu¬ a
Maybe political pressure from inevitable
money's be¬
system frequently plagued by
accompaniments of de¬ tion have proved
havior is mirrored a cross
scarcely more panics and
section the electorate themselves will
depressions from whose
not pression. So we may jump to the
than temporarily successful.
of human
Ju¬
frailty which few, if permit proper and effective man¬ conclusion
consequences
—
that
unemployment,
they
are
the dicial interpretation
any, of us fully comprehend
generally has
any¬ agement necessary to gain the ends causal factors and offer a
foreclosures,
liquidation,
bank¬
program been suited to the
way.
occasion, tes¬
that money
ruptcy and fear of insecurity—
managers believe pos- designed to treat the symptoms
tifying to the flexibility of that
Whatever the
explanation, we ,sibl^, sirtcef, in the process of and not the real sources of infec¬
millions of people innocently suf¬
know that
grand document and, perhaps a
history records indel¬
fered.
managing, the selfish interests of tion. Monetary and fiscal policy
Nevertheless, because of
little, to the imagination of the
ibly in nation after nation a
some may be denied
the vital and
gen¬
by decisions may be turned into "pump-prim¬ Justices of the
prominent role mon¬
eral
Supreme Court,
misunderstanding and con¬ intended to promote the
ey plays in our economy, the gov¬
through easy money and but more to their
general ing"
fusion of mind about the
political phi¬ ernment's
nature interest. Probably a more
sovereign power over
nearly credit, public works and relief, losophy.
and functions of
At times, however, it
money.
In the correct
it,
and
the
explanation, however, lies price support programs, produc¬ was a clear case of
popular
confusion
midst of numerous
bend or break
popular fal¬ in the fact that even the
tion
about its behavior, undue blame
keenest
controls,
and
government —and the Constitution
lacies, the wonder is that
bent.
has
been
money minds among economists, bank¬ deficits—all of which
placed from time to
may relieve
systems have served as well
It is of more than
as
ers, and public officials differ
and not cure.
passing sig¬ time upon money as the culprit
on
We have no con¬
they have.
nificance that what we have wit¬
the question of
the true and fit¬ clusive proof either
responsible for the people's eco¬
way from our
nessed in this generation is
ting monetary policy which should experience in the
deep¬ nomic troubles. One cannot study
U. S. Dollar a
thirties, be¬ ly rooted in
Recapitulation of
be followed.
generations past, par¬ the
cause
the New Deal
Man's Confusion
history of the dollar without
experiment
ticularly in the great upheavals being impressed with the
was
fact that
interrupted by World War
The history of
our
following the Civil War
American Conflicts in Thinking of Experts II, which
the throughout our national life
proved for us to be the
the
dollar is in
many respects a re¬
greenback movement^ the Orange
Countless conflicts arise in
people have repeatedly succumbed
the greatest of all pump-priming.
capitulation
of
much
of
and
the
man's thinking of experts.
agrarian
crusade,
the to the idea that more money would
Many con¬
A case might be
confusion. Now in the
constructed to Knights of
last half cede the potential
Labor, the free silver cure their economic ills.
benefits of a support the
Ironi¬
proposition that
managed currency but fear the
movement, and Populism.
♦An
address
They cally, there was an element of
by Mr. Smith at the
America's
real
trouble
is
77th
her were expressions of the
risk
of
Annual Convention of
abuse that
common
truth in the idea,
the Ameri¬
accompanies "surplus complex"—her
certainly to the
can
Ban&ers
vast ca¬ man—the farmer and the
Association, Chicago. Ill
authoritative
worker extent that the
discretion.
October i, 1951.
system * from 1792
'
Money pacity to produce far more than
—inexperienced in politics and
control, as they view it, places too she
;tq; 1913 lacked flexibility and
has learned how to use
for not too well led but
seeking to seemed to contain a deflation bias
—
-
Volume 174
Number 5054
•
.
..
The Commercial and Financial Chronicle
(1361)
1%
hard¬ twenties were reasonably pros¬ ey, raise prices, and stimulate in¬ tional debt so big that is manage¬ States. It is easy to blame the
ment
constantly
collides
with war and the bad international
discouraged perous, even though somewhat dustrial activity. Other steps in
sound monetary and credit policy, situation that has
production from time to time, and frenzied. The Federal Intermedi¬ that direction were Federal relief
prevailed aft¬
and interposes the Treasury as a erwards and to
and extensive public works pro¬
probably aggravated the swings of ate Credit Bank System created in
point to the fact
1923 was the only major change grams, as well as easy credit made strong central
bank agency.
In that other countries have also iexthe business cycle.
in that decade.
Then came« the possible by both goverment guar¬ fact, the Treasury's power to vary perienced inflation, but our in¬
Fear of the Money Power
Great Depression,, once more mak¬ anties and direct entrance of the the volume of bank eligible and flation is less excusable than that
From Shay's rebellion to Jack¬ ing abundantly clear that we had government into the credit busi¬ ineligible securities and to deter¬ of most countries because we are
mine
the shortand
long-term vastly stronger in real economic
son's war on "the Bank" Bryan's not found the answer* Again in ness through newly created agen¬
which undoubtedly worked
ship
debtors,
upon
the midst of national desperation, cies. A Federal bank deposit in¬
program
and
drastic
in the old forces to socialize money surance
the
temple," the popular fancy and credit were revived, this time changes in the Federal ! Reserve
has been captured many times by finding aid and comfort not so law constituted the major reforms
the charge that money was con¬ much in the Marxian philosophy in commercial banking;
Under the theory of compen¬
trolled by a powerful few against as in the economic theories of
satory spending, the government
the interest of the many.
Banks, Keynes.
intentionally operated
with an
particularly large banks and those
Abandonment of the Gold
unbalanced budget.
with
international
connections,
"Cross
Gold"
of
Roosevelt's
commonly
were
the
nipulating
raise
or
huge
profits,
Franklin
to
"money
changers
accused
of
supply to
prices, to make
the
and political life of the
and
control
to
contended for
was
than
more
century, and still is, that private
corporations (banks) should be di¬
a
vested
that
the
standard
a
kind
and
of
set
Greatest
the
gold coin
in its place
up
modified
gold
bullion
World
cost
of
financing.
all
of
the
of
issuance
courage to tax
and
dollar
to keep
substantially
above its former price as part of
control.
was
a
legally
its
set
deliberate plan of cheapen mon¬
world
strongest
nation
Federal
:
tion
we
chose to
pay
higher prices rather, than higher
taxes, and got saddled with a na¬
con¬
said that
we
any
other country.
should know better.
ages of war.
bonds,
we
than
power
Also
authority has.
In other countries, bad inflation
chief
criticism has
generally come from the rav¬
national banking
limited by
ernment
are
single
a
But
bomb
too few gov¬
we
did not have
dropped
an excess money
sup¬
amazed
the
world
with
readily converted into money.
be
even
ri
essential in
can
o u s
We
democracy
a
down
face of defeat at the
be
charged
inflationary
the
with
go
We
condition
much farther—and likely will.
certainly are not going to
Continued,
in the United
which has developed
on
sovereignty
assumption that government could
would
and
regulate the
value of
in the general interest by
money
appropriate increases
or
decreases
in the supply of legal tender and
by
control of bank credit
proper
which, in time, had come
equivalent of money.
be
to
the
It
thought that privileged
generally forced the trend
was
power
of
value upward, increas¬
hardships upon common
money
ing
the
people and dooming them to eco¬
nomic dependency.
The metallic
standard
system
money
sup¬
was
posed to have made the plot easy
because it set up a mechanism un¬
which
der
"the
money interests,"
Street," "invisible
government," and "the big bank¬
"trust,"
"Wall
ers" could
powers and
to
avenues
complete and satisfying
exercise extensive dis¬
cretionary
Four
values in their
merit
Whatever
have
fears,
in
point
might
contentions
these
cheap
could
vocates
there
the
been
and
money
to
the
ad¬
facts
that in every great crisis the me¬
tallic
broke down
redemption ceased; that pri¬
and
system
money
vate
speculation
times verged upon
dal
as
in
the
case
in gold some¬
national scan¬
of "Black Fri¬
day"; and that interest rates were
always high. Likewise, they could
point
to
the
concentration
of
wealth in
vast
fostered
business combina¬
monopolistic
whose
tions
competitors
and
con¬
to the flagrant manipula¬
tions of commodity and securities
sumers;
prices; and to the defiant "public
be damned" attitude of some who
sat in the seats of economic might
—much
of
which
was
the writings of the
Through
every
channel of communication, the
correspondent hanking facilities of National City
are
continually at the disposal of banks through¬
These
world-wide facilities
bank, combined with the
attention National
working for
personal, interested
City devotes to the problems
Night and day, around the clock
of correspondents—will prove a
they provide speedy, accurate, dependable ser¬
officers and customers of your
out
vice
the world.
...
modern
service that meets every
requirement of
correspondent banking.
definite asset to
bank. We
exposed in
Constantly, from
our
54
overseas
you to use
branches in
major trading centers of the world, come up-tothe-minute trade reports. Our credit files contain
Around the Clock Transit Service
Collections
Credit Information
Bond Portfolio Analysis
Complete Foreign Facilities
figures concerning hundreds of
thousands of firms and individuals in this country
current
facts and
Cooperation in Financing Local Industry
Underwriting and Dealing in State and Municipal Bonds
and
Cheap Money Advocates Not
abroad. Our 67 branches
which blanket
Greater New York enable us to
keep
a
Personalized Service
Safekeeping—Other Security Transactions
finger
Complete Trust Service
Deterred
However, repeated warnings of
the dangers of irredeemable pa¬
money
pansion
of
numerous
and unrestrained ex¬
credit,
based
upon
historical
examples,
not
seemed
to
deter
the
forces
constantly on the pulse of this all-important area.
THE
driving for a currency whose sup¬
ply would be unrestricted.
Nor
do such warnings deter them to¬
NATIONAL CITY BANK
Head Office: 55 Wall Street, New
67 Branches in Greater New
day.
The Postal Savings Act, adding
a
OF NEW YORK
York 15, N. Y.
York and 54 Branches Overseas.
Correspondent Banks in every commercially important city
of the world.
limited banking function to the
United States Post Office Depart¬
ment;
the
Federal
Act,
Reserve
integrating the nation's
commercial
banking and intro¬
ducing flexibility in our money;
partially
and
the
Federal
Land
Bank
Act,
CITY
providing easier long-term mort¬
gage credit to agriculture, were
early major breaches in
order.
the
FARMERS TRUST COMPANY
(Trust Affiliate of The National City Bank of New
the old
Head Office: 22 William Street,
floodgates
opened until
our
were
the thirties.
interim, World
pied
BANK
York)
The Panic of 1907 had been
the last straw.
But
not
In the
War I had
attention;
cor¬
these four avenues to
complete and satisfying correspondent service.
dially invite
"Muckrakers"
after the turn of the century.
per
your
powers
abuses against
numerous
smaller
Correspondent Bank Service
manipulate
behalf.
own
and
occu¬
the
Member Federal Oepojil
Insurance Corporation
ca¬
have gone quite a distance
inflation road, but we can
stemmed from the
course,
our
Going Down the Inflation Road
leadership,
courageous
in the
polls,
s e
of
the people through
government.
This conten¬
their
our
ply derived from conditions under
pacity to turn out goods.
which the government debt can
and belonged to
tion, of
on
homeland, and none of our pro¬
it can be duction facilities were
destroyed^
plagued with the
Instead, we expanded them and
today
.
problem of
always
Instead
the
at
was
herself sufficiently
inflation under reasonable
much
as
system was that its note circula¬
Lack
have
not
Reserve
Whereas, " the
hurled
the
did
it almost
the money, supply as the
over
value were
of
powers
Gold
value
was
trol
and
money
regulation of its
essential
money;
over
power
in
nationalized
the
The
com¬
as
stimulants
about 60% of the
of which was met by deficit
a
standard, pretty much
all
War II,
promise with the old order.
nation.
It
abandoned
We
money
depress
economic
Standard
ma¬
debt gives
New York 15, N. Y.
;
/
page
30
18
The Commercial and Financial Chronicle
(1362)
Bankers Must Fight to Preserve Our
first
the
As
*
backsliding
sheep in a banking family of sev¬
eral generations, 1 am especially
privileged
today
for
uals,
b 1
s e m
this
hall
Points out efforts to raise living
taxes.
a
subs tantial
lead
part of the
thinking
leadership
founding
Dearie
nation
fathers
since
still
truths
these
hold
inalienable
certain
leadership been so badly
needed, your voices so necessary
to
avoid
the
dangers
that lie
secure
times for tra¬
ditional sedateness in the banking
not
are
fraternity
for
nor
rights
has
it
wiped
the
out
only three
in
years
the
ernment
been
balanced, and
additional
being added at the rate of
civilian
week
Nearly
one
beset with dangers.
that
night,
of
I
way
will
governments
•
convinced that the Amer-
am
ican
not
of life
as
know
we
it
one
43
every
employees
history,
nurtured
just
freedom.
intelligence
well
as
a n
and
as
d
efforts of countless
men
It
eventual
in
was
not
crowded
carrying
same
every four people
ooulation is regularly re-
the
ceiving
check from the Federal
Government for services, for relief, for pensions, or for participaa
with dramatic
All of
♦An
address
Second
by
General
Pres.
of
Link
every
weak
in
case
in
link
been financial
an
Nation
everlastingly and vociferously and aggressively pointing
the
77th
this
in
the
history,
structure
tinkering in
has
led
to
u,"
,
public
•,
of
.
,v
,,
has
Federal
-
is.
g
nearly
has
years
more
from
years
has
a
o
than in all'of the
1789 to
1939.
'In
■
■
'
'
"
o
o
a
$177,399,184.45 growth in
o
-
...in
■
■
only 15
:'
resources
o
o
years
o
ployees
Do
the
need, and
we
jnuch
I
?
O
31,1948-$126,450,707.78
g
g
Aug. 31,1951-$192,656,833.65
o
a
At your command
a
G
quality of service which have made possible this unusual
record of
are
o
/
American
alarming
docility
farmers
willing
are
regimentation
accept,
if
it's
their
cry
businessmen
System
•
stability.
Now, of
all of the prob¬
course,
lems of tbe world
on our
doorstep
not financial, nor can any one
are
sible
the
for
accumulating
di¬
lemmas of this harried world.
Education
has
large share of
a
responsibility
for
literate
a
self-propelled nor self-supporting,
depends upon the will of the
people—a will which has not been
overly firm or insistent when we
and
v
? "
billion
$4
of
the
for
it,
things
that
nation
to
be
as
4o
Clifton, New Jersey
;
•
,
cocktail
hour
im¬
as
in
the preparation of
greatest raw material,
who
people
young
will
so
shortly inherit the trusteeship for
civilization?
our
No dinner table conversation in
the length and breadth of our land
labor
a
it
if it
will
make
commodity.
scarce
The master planners who would
bring
Utopia
us
under
govern¬
aegis fail to realize that the
incentives
not
of
and
ernment
private
cannot
enterprise
pervade
operations.
discussion
a
shadow
intriguers and plotters behind
as
the Iron Curtain scheme and plan
gov¬
for
the
downfall.
our
Kremlin
counting on the
us
team¬
and
a
.
milieu
hasten
not
where
ability
above
performance
average
progress,
while
and
do
Vr
below
per¬
Meanwhile
calls
for
to
is not
average
the
is
meet
Administration
the
that
costs
of
will
capital,
that
this
Concern
excess
profits
taxes will kill the sources of
ture
income
ven¬
taxes
destroy the wealth, and the
g
incentives for wealth which lie at
g
the
foundations
But
hidden
of
our
gnome
be
in
waiting,
unwillingness
of
Americans to tighten our belts,
waiting with
will
stance,
stubborn
have
and
assur¬
day when free capi¬
its
spent
its
people
sub¬
become
enslaved.
Yet
it
seems
clear
to
me
that
the problem of America's
respon¬
higher and higher
ever
expressed
a
The
may
alty,
integrity
its
nomic, political and social future,
Service cannot grade men in loy¬
vision,
long
with
sinister implications for our eco¬
Civil
The
the
of
communism
of
talism
I i-o
the
of
this
of
tonight would be complete with¬
seek
g fast-growing gargantua.
COMPANY
citizens
the 12 first and forma¬
in
g
measure
importance
the
believe
years
the
Is it the
roughly four times
America's
kind;-
particu¬
while
year,
a
relative
or
g
;
BANK
Member Federal Deposit Insurance Corporation
is
ance for the
g
•
bill
$9 billion flow annually into alco¬
out
g taxes
Member Federal Reserve
long-term
workmen
Albert J. Baisch, Jr., Executive Vice President
Paterson and
and
larly under threats of depression;
O
o
to
The
retarding influence.**
TRUST
the
of
Non-financial World Problem
tive
becoming
are
accustomed to regimentation.
g
AND
vantage
ambition, but merely allays fear,
■2 o
a
to
with
people
formance
NATIONAL
respect
holic beverages.
Docility to Regimentation
The
O
Peter Cimmino, Executive Vice President
a
the
have
people, and the judgment to dis¬
tinguish between immediate ad¬
work; it leaves little to hope and
g
a
o
who
portant
Andrew De Ritter, Senior Vice President
a
of many another great
before us.
cases
civilization
g
g
Benjamin P. Rial, President
a
now
make known to your Congres^
C. Wesley Bensen, Vice Chairman,
a
is
as
us?
upon
F. Raymond Peterson, Chairman of the Board
a
in the
g
the management and the exceptional
banking growth in New Jersey, j-
a
afford,
we
hope you have taken time to
:^o
:
can
read the Federal budget and
do
Dec.
of the
many
government
being saddled
g
a
o
of
35,928 emFederal Security
>mer>t of Interior,for instance, could
ment
31,1945—$48,831,961.74
o
and
citizenry, but education is neither
a
ivas 30, 5?36-r$lS,M7,<S>49.'20
o
a
a
of
o
o
our freedom, slowly
insidiously and under the hue
cry of emergency, recedes as
and
why there should be
oooo
'
Dee.
will
government
the
our
spent
IN NtW miY IT'S
''
to
have
7,139
the National Ad-
necessary
employees
six .as
o
°
of
ahdNtaxpayer
..
now
Government
150
it
over 1910
o
"
is
might well inquire if
bii-*-^494 empolyees of the Depart-
the
,
debt
In the last four
ago.
debase¬
cases
conse-
times the debt itself of 40 years
$12 billion
some
.
debt
inflation;
in
dance
,
U1.
has
In
it
the
public
increased 250 times
na¬
cases
mad
our
ment of the currency and ruinous
Association, Chicago, III., Oct. 3, 1951.
•"
costs
visory Committee for Aeronautics;
a
a
the
hold the bankers entirely respon¬
You and I
unmitigated profligacyt1 Commission; whether
quences of
In
and
dangers
OOOOOOOOOOOOGOOOGOGGGOGOOOOQOGOO
1
it
mount.
eliminated; and whether the realize that today we are spending
is getting value received in this country $2% billion for all
is six times as < much as it was lliironV the 2,523 employees of the public elementary and high school
the years ago.
Interest alone on the 0^ce of the Housing Expediter. education, yet the nation's tobacco
Is
a
some
before
the
we
ica to be
..
Financial Tinkering
In
forward
Malott
it
all of the problems of
tion living beyond its means.
Session
ernment.
temper of the people, should
promises
peoples.
Weak
Annual Convention of the American Bank¬
ers
of
lions,
unpredictable future.
Uie
fulfillment
answer
harried
are
suddeness, into
government
debt
is
largely
determined by the psychological
out
human
hurriedly
us
government programs of
relief*and aid will arise and with
more
operation; and
in
gov-
of
of arrogance
not look to the bankers of Amer-
can
forces
can be carried, but with
slightest recession the clamor
for
and
low any customer
other
have gone down to ruin under the
insidious belief that government
by
of good¬
of
course
new;
beyond the power of any govern¬
ment to give.
History is strewn
with the wreckage of nations who
tration have left their imprint on
events; and these
emergence
the
these forces of power and of frus¬
the
of
powers
government and public clamor
for
dreams,
will throughout the world.
throttling yoke which
huge and abnormal
a
times
out.
Some
had attained it, and with their
republican government had built
up
rich civilizations, which had
the statesmanlike
by
measure
day
about
nings of recorded history.
by
stupidity,
Utopian
10 cents spent
every
week
and
are
had sought it from the begin¬
men
both indolence and aggression, by
selfishness
cents; taxes
$4 telephone
survive these turbulent
deriv¬
American
need
strength — not
from the d a y s. of revolutionary change tion in agricultural programs,
only economis strength, but the
without the militant and aggresgoverned."
On the rolls of the great Federal strength
of
an
intelligent and
It was the beginning of another sive leadership of our bankers and
bureaucracy is a growing army of vocal electorate under the leader¬
epoch in man's long struggle for financiers. No banker would al~ Federal spenders. The
public gets ship of those in the community
their
ing
their, seeds deep in the
of
11
is
every
Then, if the tax burden is
too great, there follows a
panicky
swing to government control and
seconds,
in
new
to get into the only occasional glimpses of our
position of our Federal Govern- fiscal operations, such as the disment, living extravagantly and ;covery a few days ago that the
step.
wastefully beyond its means, Army and Air Force were planBy what means it arrived there
fostering inflation, borrowing in- ning for two radio and television
is too long a story for this morn¬
creasingly, and wastefully con- nrograms at a total cost of $688,000,
ing, but suffice it to say that all risen to great heights of cultural suming the nation's raw material.
and that there is overlapping, and
of the dilemmas of our tormented and material well-being, and then
resources,
with little heed for duplication, and chaotic adminisday did not just happen.
They withered again, stultified by the tomorrow. While the danger'point tration in
many a division of
furrows
an
of the
consent of the
analysis of the value of loan col¬
lateral.
Storm signals are flying
in the very financial structure of
this nation, and the future of the
world is literally on your door¬
have had
on
bread, one-half is the
lug.
This is
past 20
has the annual budget of tne gov-
history, man's
experience with successful democracy has been brief, sporadic and
instituted among men,
are
pious
mere
these
others
But in all recorded
these are life, liberty and
pursuit of happiness. That to
the
•
Rights,
for
way
given way to barbarism and chaos,
be
to
among
ahead.
your
These
for
in
educated and cultured classes and
self-evident, that all men are en¬
dowed
by
their
Creator
with
has
■
$2
up
call; and for
levels of underprivileged peoples will
tyrannical
government powers; in
seizure of
with
struggled
the
paved
our
small part of which reads:
a
"We
history of the
Malott
W.
dom,
the
in
175 years
been
the American declaration of free¬
and
finance. Never
before
toll,
on
of the tax
nation's bankruptcy.
to
their
bite
nearly 50%
take
tax
age
eat
govern¬
the
of
world
banking
Cites
is
tax
spending
It has
in
the
cannot survive without
wasteful spending and the fast growing gargantua of higher and Hgher
ment
in
is
our economy
leadership of bankers and financiers.
militant and aggressive
asd
e
is weakening nation and asserts
gance
you
individ¬
to
as
the
cost; on a railroad ticket costing
$12.75, taxes claim $2.25; on 14
cents worth of gasoline, the aver¬
Head of great university warns financial tinkering and government extrava¬
I
but
to
taxes—take
today
automobile
A m erican
speak
until
President, Cornell University, Ithaca, N. Y.
Bankers Asso¬
ciation;
sales
and
the
address
to
Thursday, October 11, 1951
..
Economy
By DEANE W. MALOTT*
black
.
economy.
taxes, too—excises
sibility is not alone that of
ing
Russian
meet¬
communism.
The
outstanding problem in the world
today
-
is
human
downtrodden
Asia
and
misery.
peoples
Africa
in
The
India,
constitute
the
greatest threat to world stability,
the
greatest
challenge to
our
leadership.
Our eyes must be focused
upon
Asia
rather
than
so
exclusively
Number 5054
Volume 174
Europe/
upon
die
could
this
.
.
The Commercial and Financial Chronicle
Every Russian
morning,
every
this
Communist
.
be
obliterated, and
of under-privileged
would
still
remain.
problem
millions
These
people
know,
now
the
as
world shrinks closer together, that
their
poverty and misery is not
necessary, that there are ways of
life that will bring a measure of
and idealistic program,
confusing because of the
implemented
of European
our
our
way
We
can
furnish them
'/v-: ''
.
tific
and
cooperate
tional
them some measure of order, some
our
tunity for literacy.
have no program for
them at all, except the unimple-
however,
and
mented
Point
Four;
cious
of
promises
vague
they
and
of
educa¬
We
na¬
higher
extend limited
can
We
can
firmly announce
and self-determination.
is the
most
all, and lies in
tiation where
we
This
important step
a
field of nego¬
have been most
are
of
some
a
as
citizens
the
can
pervading influence,
the
dertake
which
who
our
never
around
of
we
the village
as
point of view.
inter-
a
and
ar¬
emancipating
we
that in
a
thrust
would
become
short 175 years, America
have
for
a
part
of
great
a
doctrine.
the
But
indefensible posi¬
tion of seeking to protect
mighty empire,
large
of
the
are
allowed ourselves to be
into
trustees, and the only hope of the tus quo.
future
bearers
.
.
.
are
are
As
with
a
stake and—let
the static, but is constantly dynamic.
will
Either
stand
courageous,
shall
we
surrender
doms
for
paid such
ties,
the
•
which
we
such
enjoy
Most
litfiltil
the truth.
bed
in Asia will go to
people
hungry tonight.
in Asia
Most
Most people
neither read nor write.
can
people in Asia live in grind¬
Most people in Asia
ing poverty.
have
seen
never
Most
doctor.
a
people in Asia have never heard
of democracy. Most people in Asia
have
Chase for many years
in Asia believe any¬
Most people
thing would be better than what
they have, and they are deter¬
mined to get it.
Most people in
has* been known
as a
"banker's bank." This
civil liberties.
known
never
reputation has been
cre¬
ated
your
in Asia are deter¬
again to be ruled by
never
and by the full
v
respondent banks. How
ploit Asians. Most people in Asia
distrust people with white skins.
people
serve
••
_.
the freedom
of western colonial powers to ex¬
Most
willingness to
cor-
f-
freedom of
free enterprise means
mined
a
and efficient facilities which Chase offers
..
believe that the
Asia
by
-
•••''
••
of these could
bank profitably employ?
Dealers in State and
Analyses of investment
Municipal Bonds
portfolios
foreigners.
many
against
which
American
foreign policy
must be formed and implemented.
Around the clock mail
Only the sentimental "do-gooder"
would suggest that we solve the
Quick collection of items
This
back-drop
the
is
Credit information
correspondent banks
enough
money,
enough
skilled
technicians, nor enough raw ma¬
terial resources to bring satisiaction to those untold millions of
Mmhr Federal Deposit Insurance Corporation
attempt.
bring economic, po¬
social
and
those
salvation
to
centers
of
Asiatic
great
world destiny, by encouraging pri¬
vate
enterprise under our free en¬
terprise
Private
system.
enter¬
prise cannot enlist its stockhold¬
property to provide literacy,
ers'
health and hy¬
good roads, better
giene,
or
peoples
governments
stable
the
on
far
side
to
of the
world.
>v It cannot be done by imperial¬
ism
the
because
been
loosened,
shackles
and
have
these people
glimpsed
and their leaders have
a
Way of
life in which they will no
longer
be
subservient to
domination and to
a
foreign
foreign
gov¬
ernment's control.
i
Our aid and
responsibility, there¬
fore, is to help through a coopera¬
friendly
tive,
capitalistic
whereby
program,
nations
and
awakened peoples work
in
a
program
has
which
newly
together,
some
chance of eventual success, in fill¬
ing
stomachs
and in
alleviating
misery. This need be no sketchy
Safekeepinguf securities
foreign services
Many personal services
OF THE CITY OF NEW YORK
people. We should go
Nor can we
Execution of security orders
:
THE CHASE NATIONAL BANK
bankruptcy in any such
to
litical,
pick-up
Participation in local loans with
spread over the vast areas
of Asia and Africa, by gifts from
the acknowledgedly rich resources
of
America.
We have) neither
races,
down
.
Full
problem of these underprivileged
struggling
:
1|W|
ilifs
lib tf/i
and
we
great free¬
forefathers
stand
down the distant future.
assumption could not be
an
farther from
our
now
general
status
ourselves. Yet
same
we
clear
as
trus¬
tees for those in the generations
the same
opportuni¬
backgrounds, the same
Americans
and
desperate price, and
a
somehow
possess
free
those
which
of
peoples,
they
emphasize it—*
little by little
or
them.
other
of
assuming
me
firm
too often fail to realize the condi¬
tion
The
us.
responsibility in America's fu¬
has pointed out, we
some one
them
stirring times. The is¬
perialism, of our multiple-minded
lack of a firm conviction in our
relations
put
clearly before
the sta¬ for which
Our tradition is not
im¬
our
chains.
bankers of this nation have both
ture.
■
standard
off
would
again."
on
These
sues
a
true
strikes
rev¬
in the
us
"We in the western world
gued for their individual freedom,
a
greatest
great newspaper editor has
recently put it:
they sat
stores and
back
We stand in
Americans but all of
As
tradition
Totalitarianism
free nations.
un¬
leadership
Colonial forefathers
dreamed,
Our
olutionaries of all times—not just
extend
—
billion
reactionary
challenge you in
must
I
you,
that
areas
as we
have inherited
we
ited from
task
half
a
human history as the
•
we
and
suspi¬
are
wealth,
our
institutions of
our
countries,
of
the
belief in their rights to free¬
latter
We of the democratic
broaden
to
•
We can- Where
emergency help to start their
ventures.
dom
■:
-
These
scien-
two
If all of this sounds
to
ing Atlantic pact nations.
peoples.
opportunities for their
tionals in
and
•
technical help.
world's
1&
people.
implications of Europe's
age-old imperialism in Asia, as we
inaugurate the vital task of arm¬
mean cram¬
some
pressures
politics and their in¬
evitable
form of government and
of life down the throats
of other nations and other
learning.
the oppor¬
but can be
specifically by us.
Assuredly it does not
ming
security and dignity to those who
seek the means.
They know that
capitalism has food and money,
and medicines, and good houses,
too.
They also know that Rus¬
sian
communism
has
promised
food for their stomachs,
(1363)
20
The Commercial and Financial Chronicle
(1364)
Thursday, October 11, 1951
...
U. S. and the World Today
Six
the
years
in
war
moved into
free
National Commander of the American
Pacific,
doubt
I
world.
if
meaningful in
terms of shap¬
because
ing the future
of the nation
unless
and its people.
our
The reason is that they
America.
have
Legionnaires
of seeing most
of the people
and places of
ica
never
has
been told what Amer¬
to
offer
them
indi¬
as
viduals.
the
To
first-hand the
The
lesson which
one
and could understand is
of the American
they crave
the lesson
Revolution.
In all of modern
past.
It is this freedom,
the individual.
and
ambition
as
talent
basis of the brief mes¬
side is losing the Cold War.
Noth¬
But the end result in almost every
instance has been merely
that belief.
sion of ruling authority
losing the war of ideas
are selling the wrong
ideas to the wrong people.
power group
We are
Because
we
.: We are losing the economic war
because we have encouraged our
allies to assume the philosophy of
aid.
war
a
diver¬
from
one
to another—and the
people have found themselves still
dormant and still dominated.
As
difference
the
between
matters
stand
nomic aid for several years more.
We have what it takes to carry on
the
today,
him, that gives his political
and intellectual liberty a tangible
large scale military aid program.
cannot
we
safely
undertake
We should be frank.
be
time.
same
We should
positive. We should be explicit.
should
We
notice
serve
all
on
of
We
We have wholesale handouts is over.
for first should explain, without apologiz¬
prospect of ing or gloating, that future Amer¬
ican policy in this regard must
carry
sition,
value.
militar¬
of
that
partners
our
the
era
ily, in the free world.
no
serious
challenger
The
World
in the
man
common
has
remains
of
ancient
such
no
more
he
of
the
license.
Old
an
or
Now that may appear
These
that tie
the shop or the
to
;
Families
national economy.
Of Satellites
Most
whom
the
first in
that America will collopse
attempt to keep
vised
ents happy.
Communists
by
depend¬
our
correct
a
that mistake
expanding our foreign
advocated
aid after
We supported the
convinced
are
gives them
is
Marshall Plan because we believed
mational campaign and by making
It
a
may
needed
jolt, then well
a jolt is
get the point
be that
to
across,
foreign
of
program
World War II.
infor¬
aid
and good.
what
The American Legion
outsell us.
must
Europeans
actually have is a very today that the United States is one
large and hungry family of eco¬ big dollar factory. They feel that
nomic satellites. We can hope—as the aid we
give is limited only by
It is to their ad¬
many of our leaders are fond of our selfishness.
hoping—that Russia will be over¬ vantage as well as ours that they
thrown by unhappy dependents. know better.
If cutting off eco¬
But the chance is equally great nomic aid and policing military
the
the
*
Among these, and most impor¬
What we
The tragedy is that we in America
own the best answer yet de¬
let
ican life.
tant, is the good health of our own
Our Large and Hungry
who
have
conform to certain facts of Amer¬
is true.
"
the so-called "down-?
masses"
to be good
I
standpoint.
submit that the opposite
Wealth and power
are
the American
from
still
belong to the few: there is a low
trodden
and
one.
economic prisoner
caste customs
economically
place—and almost no
Even
progressive countries,
him to the soil
uniform.
We
Failure to allow for this funda¬
mental
question about our
no
capacity for continuing heavy eco¬
Warns
essential to real
are
and
new
i
-
There Is
United States occupies the top po¬
will
actually
ing has happened since to reverse
have it in the
we
up
were
overriding importance of military
unity.
permitting the individual to go as
ceiling for the many.
history, that is
only people's movement that
the
derstanding
winding
program
both burdens at the
benefited the people. Communists direct their appeal.
sage I am privileged to leave with Europe and Asia have experienced By our standard, they are down¬
time and again genuine uprisings
trodden—and they are looking for
you today.
I came back convinced that our aimed at throwing off oppression. an answer, or at least a change.
the
needed,
a
all others is economic freedom of
far
great majority of those
Erie-£ocke,-Jr.
people, we stand literally for im¬
critical inter¬
perialistic capitalism.
We can
est to Americans around the world.
laugh off the phrase as the Rus¬
I wanted facts and reactions that sians use
it, but we cannot laugh
might have a
bearing on the off the fact that multitudes who
thinking and policy-making of are not Russians and not Commu¬
The American Legion.
I wanted nists believe it.
Observations made at that time
chances
areas,
aid
economic
But
three million
form
the
against perpetual foreign aid.
privilege as
spokesman for
years
of mutual cooperation.
lay down firm and practical lines
we
lose the military
allies look for "handouts" ; and (4) we may
Recently I
had the great
worldwide rehabili¬
tation effort for which American
citizens have sacrificed these six
some
If further reason for
people and places of critical interest to Ameri¬
cans, Commander Cocke states: (1) our side is losing Cold War; (2) we are
selling wrong ideas to wrong people; (3) we are failing in the economic war
Basing his conclusions on visits to
six years so
decisive
and
results of the
in
100-year Marshall Plan would
are a
Legion, Dawson, Ga.
not do the job.
history
shows another
most of all to see
desirable
By ERLE COCKE, JR.*
with the end of
America
the driver's seat of the
ago
the
,
Secondly, the American people
will be just as
patient and just as
sympathetic as the record of selfeffort on the part of,our allies
strong allies to be essential in the
plain citizen of America and the
certain that it carries the right struggle for peace—and the coun¬ permits us to be.
plain citizen elsewhere has cost us
tries
of
Western Europe
were
the, handout.
The fact is not generally appre¬
The
dearly in the war of ideas. It has story to the right people.
helplessly weak. But we never ciated in
We stand to lose the military
Europe today. The atti¬
led us to hold the promise of re¬ right story is the story behind our
supported and do not now support tude I encountered was one of
war unless we lay down firm and
turn to the "good old days." Think fabulous wealth and
production a policy of perpetual aid for any
watchful and very doubtful wait¬
practical lines of mutual coopera¬ of what that means! Most of the
and living standards—the story of foreign nation.
tion.
ing.
It was as if they expected
people who live under or next to
Dollars do not win friends for us to pull out of the continent as
communism
have
never
known the farmer and worker and busi¬
Millions Not Sold on America
America: they merely silence ene¬ soon as the novelty of being there
"good old days." They see no ad¬ nessman and of how free enterprise
There are millions of Europeans
mies. Dollars ladled put over a wears off.
vantage—and no practical differ¬ reconciles the best interest of the
and Asians this side of the Iron
long period of time contribute not
We know better.
We know that
ence— in
Curtain
who
are
not
sold
on
trading in communism individual with that of the nation. to the strength of a friend but to self-interest alone would compel
.
"
•
*An address by Commander Cocke be¬
the Second Session of the 77th An¬
for what came
fore
nual Convention of the
before.
American Bankers
can
Association, Chicago, 111., Oct. 3, 1951.
his
The people we must reach are the
The characteristic of the Ameri¬
common
appetite.
.
system that sets it apart from the people—whose support and un-
too
long our obligation to provide
crutch
a
for
European
The great danger
economy.
today is that we
from
rests upon
not
are
There is
obli¬
be no turning
can
appease¬
ment of Stalen's Russia.
Policy
I think the attitude of thousands
certain risk involved
a
that case
only justified but
Thirdly, there
Give-Away
not go¬
the other side—and we
back in this country to
Reappraise Our
Must
are
gated to watch it carefully.
crutch.
CORRESPOND
But we
The burden of proof in
deny or delay too long our
obligation
to
take
away
that
LET'S
responsibilities abroad
now on.
ing to help any one who is able
but
unwilling to help himself.
will
days in urging restraint
these
to accept
us
The great danger five5 years ago
was that we would deny or dely
people—the majority of
of
or
Legionnaires whom I have ad¬
dressed and heard over the sum¬
reappraisal of our foreign aid pro¬
mer iponths sums up pretty well
One who does so immedi¬
the feeling of most Americans. It
ately lets himself in for criticism
is positive and clear—and it goes
as an isolationist or reactionary.
something like this:
While deploring such an atti¬
We went into the last war hop¬
tude, The American Legion will
gram.
The 78 years
of Western experience, possessed by
The Farmers and Merchants National Bank of Los
Angeles,
not be
Southern California's oldest and
is invaluable to those who
this
rapidly growing
largest independent bank,
need
come
reappraisal of
correspondent service in
that
area.
our
not only
it
must
for
a
most of its fruits
by
a
most
reliable...
our
our
It
highly specialized commercial knowledge
officers most
is
our
is
That
your
ish
as
business is executed will
please
you.
The
Southern
>
FOURTH
AT
MAIN
(54)
LOS
ANGELES'
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION
f
California's Oldest, and
Largest Independent Bank
our
we
(
our
such
in
move
a
and
and
Korea
the
with
for
lives
comfort
security and happiness
Americans everywhere.
mischievous
Those people do not
and they want nothing
are,
to be
feet
as
out from under
equals. But being hu-
*
man,
and
Sam is
goose.
an
So long as Uncle
National Bank
their
own
draw on
initiative
The Marshall
the
■t,
jjif.
*
•
It
help
Plan
has reached
for it.
run
the
course
prescribed
If the results are less than
the
But
of
peace.
gun
believe
We
will be
peace
winning of it
giving
lives
our
that
the
up
are
that
may
for the rest
way
which Americans
of
life
to
accustomed.
the
cause
of
free America will prevail—not be¬
it is destined to be but be¬
cause
cannot
on
it, and his
open
believe
We
well entail
cause
point of diminishing returns.
has
y-
won.
they
but suffer in the process.
of Los Angeles
■
it—and
RFC for the world,
will continue do
can
of
must be checked first.
will not kill the
they also
golden
Only he
patronage; they are human
dominance—standing on their
own
Farmers
Stalin closed the door
cher¬
■.
Merchants
(
naive
a
than
more
.
paying
are
we
and
cooperative. The efficiency
complete operation and the speed with which
that
Our
away.
trust Russia
to
that mistake with American
would turn all Europe against us.
notion.
of
said
Now
words.
definite date.
You'll find
given
continued
leaders
realization long after her actions belied her
terminated
be
for
a
economic give¬
policy but for
away
ing that victory would spell peace
years to come.
We won the
victory, paid high for it—and saw
I believe that
guided by it.
the time has
with God's
help
we
will find
the leadership and united strength
to
see
us
through. That has been
the record of America in the past.
I for
one
and the
welcome the
opportunity
challenge to protect it in
the future.
Number 5054
Volume 174
.
The Commercial and Financial Chronicle
.
.
(1365)
Air Power and the Future Air
the
first
to
In
make
want
Age
of
By ROBERT E. GROSS*
part of my talk I
some observations
World War II planes could have
done.
Calif.
President, Lockheed Aircraft Corp., Burbank,
21
The next questions are obvious:
What is this new Air Force cost¬
-
production
the current aircraft
on
It
program.
me
that
would
ex¬
to
seemed
you
pect
Deploring lack of understanding of nation's air program, and what it means
to
me
for "future transportation,
something
say
this
on
ject;
sub¬
and
am
quite
close to
craft has
it and because
I
does
seem
appropriate to
Robert
the
ond
E. Gross
sec¬
working only
'
of
part
remarks, I
something of what I
my
want to
think
say
the
future
for us—if
in
the
air holds
want it.
You might
philosophy of the Air
Age, since I think of the future in
call
it
the
we
the
air
more than
engines.
But
important than either I want
just
as
very
airplanes
more
much
and
to put my finger on the bridge we
have to build to get from this cur¬
rent
stage over into the new age.
honestly believe that consider¬
I
ing the amount of money we
spending on it, there is little
derstanding of what the air
really is.
gram
the
on
is
street
I
think
thinks
thinks
man
program
bigger than it really is.
he
are
un¬
pro¬
the
the
I think
going to get it
quicker than we are, and I don't
think he knows why it has to cost
so
we
are
40-hour week—no
that our planned
acceleration would by agreement
with the government not yield any
substantial additional production
third
that
historic
morning
in
June of last year when the Asian
hordes
swarmed
over
the
38th
a
shift—and
for between a year and a year and
half, they were horrified.
delivered
air
asked
also
and
industry
be
given
make-ready contracts which could
ultimately produce 50,000 planes
per year. It was strongly reminis¬
cent of that
went
same
clarion call that
out
by President Roosevelt
in the spring of 1940 when he too
called for 50,000 planes and the
industry then responded, "we can
do it."
VThis
and
time
wiser,
falls.
took
circumstances: the call of Korea— "Fortress America" or
call
the
of
1950—was
Europe"
something
not abie to wait
gram
"Troops for
"Asia First"?
or
For if
today. A middle ground preThe architects of the plan
vailed.
proposed the authorization of the
ably
It
potent.
was
generally to
in a little
treble the rate of output
of around
the
different.
\,
'
the Air Force.
on
—
—
march in Europe, and
'
forces
quickly
foe
toe.
no
was
auesttoi
question
Europe
op
nentaTaUieslrj m'conmTr itTere
wZfricncTor
everybody
Thero
there
to
of sending our fore s to
Japan soon attacked us from the
and tight from Europe, then we
of
01
ld6h
h
a
different
er
Air
foum have a^ very oitterent Air
;
support
assault
then
A
.
•
and
manv
attack planes
^
fh
route
rpntpr
of
and
the
last time
for
us
that
nation
all over
was
on
billion of its money on air equipment. The Navy will spend over
$4 billion on aviation. Altogether,
a total of $15 ]/4 billion on military
procurement for air! Out of every
defense dollar earmarked for miljtary procurement, 48 cents—almost half—is going to the aircraft
industry. You gentlemen, there¬
f°re> and ah Americans certainly
have an interest in the airplane
and in the industry that produces
it.
^
Why Airplanes Cost So Much 1
Now the reasons airplanes cost
so
much
more
today
direction.
Internally
to overhaul
our
older
pit¬
these, it
the
plan of building.
series
constant
how
new
planes in I952- Our Air Force
already
activated
A,-r
rvtrpp
ic
87
groups,
Now I thnk we're going to have
ve™
,
good
Air
Force
I think
c!,o
,
•
Force" is
A.*
i
as
*4.
materials parts and equipment,
I'm. not attempting to refute the
national policy, which
studies
as
keep war (or defense) production
whether we'll get this Air Force thos?,wh° believe that, all things
^oon as he thinks we will The considered, it would be wrong to
as soon as_he thour completely siAju^te oiw.civilian
Air Force will be one of high industry to the demands of our
Air rorce win oe one oi mgn /ipfpyicp urogram
T am
^avitiEf
.
our •< program couldnt be quality, and the 95 groups will do
touched off overnight.
Before it very much more than 95 groups
touched off overnight. Before it very much more than 95 groups
why
defepse .jr g a
I am saying,
continue a on page J4
Trust
Company
to
WITH
FOURTEEN
CONVENIENTLY
OFFICES
LOCATED
THROUGHOUT THE STATE
government.
Effect of Korea
Immediately after the call of
Korea, industry responded with
all the
pent-up enthusiasm and
desire to do something.
But as
the weeks drifted by without the
fast action the public expected,
gradually
the
realization
came
over us that the program was not
and probably could not be what
people
had
originally
thought
when
Korea
own
first
over.
flush
was
soon
confronted
members
of
of
North
I know from my
experience that
call I
by
the
was
the
on
after the
all
John B. Byrne
President
Lester E.
public
THE
i
,1T
I
"".Address
by
Mr.
Gross
before
Annual
Convention
Bankers
Associ¬
of
American
ation, Chicago, 111., Oct. 2, 1951.
!.!
•i
.5
the
the 77th
HARTFORD-CONNECTICUT TRUST CQ
MAIN
760
ST.,
HARTFORD
orti
and
First General Session of
Shippee
Tixecutvve Vice-President
sides
X
:
'
to keep
to
tempo and
could
be
in¬
creased.
having in mind all the
new and different types of planes.
A few orders were placed by the
government; but after some weeks,
one
thing became patently clear.
It was this: industry could move
faster and more positively than
is
Fivilia" Production going and to
Oldest
production
is
had ^ World War n or the having to face these problems. In
96,000 planes the aircraft industry short, we are competing with cibuilt ih the one year 1944.
vilian industries for manpower,
we
hp
,
talking about the way our labor,
materials, manpower, and equip-
but this has been done only , by
using many old planes. This is a you know that anybody•
lQng way from the 243 groups that tea that is making anything big
ffravitv
cminc*
1946, and 1947.
We engaged in
of
ever
(3) We practically stopped
building anF airplanes to 1945.
Connecticut's
started
we
whole
than
,.
.
.
^a ^combinatkinZf ^theZwo ZtTZubt if%Z
^,i °f the'e" wotid" be" If
oui
is pushing trouble
the world.
we^rTa^eadv^eeb^
« Ze keceleJation to eq^PE
and
very
side
WJfh
transports. If we were
the
tgke
,
bombers
medium
ground
*
different, each would have a difpeople who were lined ferent cost. and we couldnq af_
up against us then are now at for(J
haVe all three at the same
least sympathetically on our side,
time. There were the real reasons
the
Soon industry leaders
traveling to Washington for
were
$56 billion.
The Air Force,
again.
over
na-i
we were
<
Well in the first place, in 1940 Force. It would consist almost enthe'Tines were" clearly "cut; "we tirely of long range bombers to
knew who our enemy was; there stoke abroad and
^^tor^to
was no doubt about it.
Germany Piotect our shores. It on the othei
determination
same
Well, as
jn J.urn, will spend more than $11
government at its word,
with
Air
what
to go the route of "For- over two years. It was to be done before are three:
Both of these great periods have tress
America" and accept the on a 40-four week, and above all
(1) All of our normal elements
had a different program. How do thesis that we must be prepared it was to be laid on top of the of cost are up;
these programs
differ?
This is to defend ourselves from our own output of civilian goods rather
(2) Today's airplane is different
really asking, how do world con- shores without the help of foreign than taking precedence and cut- and is two to three times the ad¬
ditions differ now in 1951 from nations or their bases, then we ting into it.
The decisions were plane that World War II's airplane
them in 1940?
1
~
need a certain kind of an Air taken; the die was cast.
was;
very
it showed before, we started in all
a
too quickly
indefinitely,
there emerged back in the autumn
0f 1950 the pattern of our air prowilling to act
]\j0t
ancj
as
$20 billion of that will go
was
it knew
Notwithstanding
the
and
industry
and
could be jelled for keeps, the elements that went to determine it
had themselves first to be determined.
a
arguing whether beef and gasoline
try was plodding along at a fairly had to be rationed. We were at
steady rate of production—indif¬ warferent
though
the
totals
were.
We
The monthly production of the en¬ -T Today all this is different
are neither at war
full out, or at
tire industry for both Air Force
full out.
We have some
and Navy was only 200 or 300 air¬ peace
stout and declared allies who are
planes per month. Suddenly the
President called for an immediate ready to stand and be counted.
But the real enemy does not show.
increase in the number of planes
And ironically enough this tim ,
to
be
the
About
One avoid
thing finally shone through like a
parallel, the American air indus¬
that
penditures
of individual-flying planes.
was
big
tional budget calls for defense ex¬
and why cost of modern air¬
use
as
had in the last war?
much?
an
for cost, the current proposed
a life of scarcity? If we had 70 i group
Air
Force
patterned
life of scarcity, where will it all largely after the Troops for Eurlight: it was the fact that the call end? Finally and most important ope pian but with certain diverof 1940 was one thing and was of all, should we plan a national sifying elements. The acceleration
issued under clear straightforward defense plan along the lines of was to be modest but unmistak-
a
was
much.
On
program
Foresees future
It
When I told them that no, we were
it.
on
In
air
our
against this insane background that our government had
to
plan.
How
could we
buy
enough of the right weapons to
protect us without bankrupting
the country and destroying the
very
forms we are fighting to
preserve?
How
could
we
get
enough arms to protect us soon
enough without invoking controls?
If we had controls, how could we
questions as to
how hard we were working. The
assumption on their part always
was that we were going wide out.
under¬
dwell
of
greatly increased.
with
businessmen
standing of it,
it
we
"to
real
is
public
Force less than half
that
doubt
there
Describes pattern
carriers.
leading aircraft producer predicts
a
so
Why all these billions for
and development in both "space" planes and individual
further improvement
be¬
I
cause
executive of
ing and why does it cost
Member Federal Reserve
System
Member Federal Deposit Insurance
Corp.
22
(1366)
The Commercial and Financial Chronicle
Economic Freedom
The
the
is
President, Western Bank & Trust Co., Cincinnati, Ohio
terial
History records the
new.
out
rise of nations
Midwestern banker, in commenting
under the doc¬
trine
of
eco-
nomic
dom and individual
independence,
afforded
ianism, and the American
opportunity to
embrace
fall
those
of
the
Condemns
ual opportunity
nrivatp pntprnri^
nf
tnric
comnetition
thrift'
generated
in
integrity
nroduction
and
of
incentive
by
system which offers
the profit
reward
free
proportion
to
efforts
and
a
ability,
expended.
The function of government is
in
the role of umpire to see that the
rules of fair piav are observed.,
-j'
-•••*'•
tp
Economic
i
security is an ideolimplied, to care
ogy, expressed or
fnr the needs of the
for the needs of the
a
managed
individual
individual
has its
roots
in
by
under gov-
economy,
ernmental control.
hv
This ideology
various
isms
ex-
persons should be
tried for several
wiser than God.
thpir
instead
of
government *y
5"
the birth of
me Diun oi
Christ
cnrist,
bee"h.aboll ur
,
there
tnere
than 3% of them have
freedom
That
as
is
nation,
since
e
the
it.
other
no
beginning
•
of
ever possessed the
spirwealtb-
POductive capacity which
now enjoy.
™
,
i
Mayflower, they
other
—rAn
means
sailiL'on
sailing
agreed
on
that
of any person
_
address
Division!
American
by
Mr.
i
Bankers
111., Oct. i, 1951.
vear
unless
•
1
|-je
some
L
•
to
prevent
Want-
Again
Reckman
t01'
to
his
f
0
with
h^Ts vlry iiS'rio^s
....
_
Thk
a"°vadua'
t,S
Thus
our
o^SatoJJfSned ®what
miankind
and
has
experienced
'
tunitv
over
word
Faces Critical
fnnnj0,
c^f
nf
ity of the recipients to deliver
heLusn
,,
a wora, wnicn once
wp
vl-0
rpr.^
,
rfr
is
i
•+
spiritual
J
to iespect the
But
for
.
security
an
'
,
The
ine
most
most
unusual
ui
security
on
one which we take
m°^ f0r §rant^d—ls. PaJitlcal securlty- It is the right of free
_
®d to defend men to control their own governdilni\v of man.
If nand to enlarge We call that
or diminish
dignity oYman
its powers at will.
x.
to respect the
„
n
fh secunty—an
the benevolence
m
rth-—and the
"SfriS?™*
havn inarnpH fn
nx-
•
many
years
now
we
human liberty.
b e e ^ surrendering these
government about it.
_
in
a
,
large
were
centive.
tion
•
.
,
t h 31
"Would
Let
livinv
in
numbers
of
people
system
abolished
was
You
see,
There
consider
the
implied
own
says
have
nf
rejected
love
It
Christ's
welfare,
that
called
had
we
the Civil War.
by
we
it
right
slavery,
before
our
on
and
starvation instead of progress and
t^^f, °„VVw.S:
the validity of this state-
prosperity.
a
ment, consider the elements which
disting"ish the American
£rom
the
ther
systems
economy tion,
in
throughout the world. Our system
is not based upon a theory. It is
a
system that grew in a natural
out of the character of
way
of
concept
government*
guaranteed security. I believe this
is an outright rejection of the
original American belief in free¬
dom
our
people. The three major elements
jn that character were love of
that freedom is
says
must turn to the authori¬
we
tarian
use
It
failure and that, for our salva¬
choice
of
sponsibility
personal
and
for
one's
mate
sions and actions.
freedom, ambition and incentive.
Government-Guaranteed
Freedom meant, among other
things, that
wav
a
man
of life
Few,
Ambition meant that he wanted
and
chil-
it did
existed
in
no
in
abundance
other place
in the
world.
Slowly,
imperceptibly, these
characteristics have been whittled
down and undermined.
•,
■
•
-
They have
.
if
the
social
any,
would
find
fault
announced
security
freedom
but
Incentive
as
with
dGVGlOp
for his
dren.
Security
Means Mass Starvation
choose
could
from
if
goal of our
program—that is,
want
in
old
age-
willing to
incur the dangers to our freedoms
even
which
we
arise
are
when
we
maximize
the importance of "freedom from
want in old age," we still must
accept the question, "will it work
as
it is
now
administered by gov-
.
misery which results when
Ten
Commandments Are
Ever
of
since
from the
Municipal Bonds
the
of
had to
&
CO.
Chicago
•
Street, New York 5
Boston
Cleveland
•
•
HAnover 2-2727
Philadelphia
Cincinnati
•
St.
would
think
if
be
wrote
statutes
we
so
Washington
•
•
Pittsburgh
San Francisco
to
us
that
if
set up
wealth
force,
we
of
Bank
not
dangerous
into
were
our
It did not
ourselves
others
Acceptances
laws-
new
We did
it
doctrine, which
claimed the right of
the
us.
for the sake
brazenly
we
in
were
We
here at home,
national affairs.
Equipment Trusts
Preferred Stocks
Canadians
But
how
this
Railroads
in¬
as
to
denly to be applied to
•
Louis
Direct Wires to all Offices
to
so
Industrials
are
nation
Pharoahs.
principles.
Public Utilities
basic
They
this
they
as
occurred
have change
new
stop
we
48 Wall
the
man.
the
of
change,
and
C.J. DEVINE
today
never
Municipals
down
came
been
which
upon
days
that
of
have
founded, and they are
exorable
the
Moses
civilized
laws
was
U. S. Governments
Civilization
mountain, the Ten Com¬
mandments
law
Basic
men
our
Salomon Bros.
sud¬
&
Members New York Stock
inter¬
Sixty Wall
occur
pro¬
could hardly
Hutzler
Exchange
Street, New York 5, N. Y.
Private wires
t»
to take
BOSTON
by
PHILADELPHIA
CLEVELAND
HARTF-ORD
political
deny the
right of the "have-not" nations of
re¬
deci¬
own
the perfect example of ulti-
eyes
Laws
State and
we
teachings
economic security is purchased at
the expense of economic freedom.
Securities
the
let them starve?"
you
us
they will starve.
h™g in the midst of
guaranteed
necessities of life from the cradle
to
the grave.
But that
United States Government
mirlct
heard whenever
responsible for their
American
the
is
meaning of that question. To me
it says, if people are free and
..
the
that
subj ect of security by dependence
on
government is discussed:
/s l} not amazing as well as
cdsrming
a
work, food,
clothing, shelter, and all the basic
IN—
free country can or will vol¬
a
pendents.
That
philosophy
of
despair is summed up in the ques¬
t
centive
'his
There was in this country
which
■SPECIALISTS
It
untarily provide for the welfare
of himself,
his family, and. his
handicapped or temporarily un¬
fortunate neighbor; In contradic¬
.
trOCt-glVGn rights, bit by bit, in thG CGntury ago a widGly GStablishcd to liVG a bGttGF lifg
search of an even better
way of system of economic security under larger opportunities
☆-
world.
'ew °* them the right to break tion of our own Declaration of.
the Commandments all by them7 Independence, we appear to be
selves without ever bothering the rapidly becoming a nation of de¬
wilUngness : to, trade opportunity
for security in America. "
"To prove
Decision
+,
onre
insecure
charity.
It says that
hfe, seemed to have no meaning Plenty, wouia now De wining to
for these young Americans. What «ntoroce another kind of system? we—through our churches and
other
voluntary
organizationshas happened to these young Yet this is exactly what is hapcan not or will not care for the
Amerlms?f Iibelieve that most Penln?- The American economy
unfortunate among us.
It says
people will agree that there has is rapidly changing into a system
that a free economy results
in
been a slow, but sure, growth of that has brought starvation and
course
blan iLTtf n6
whieh
The
appears
the abil-
W°c vote at the polls. In time,
som„? J* these groups became so
proficient in the art of voting that
we conierred upon a privileged
symbolized the American way of
again—that the welfare
over
""
tvw
This
,
Our American civilization is no
uvuuauun is nu
before
Association! Chicago,
controlling
the curity witnout freedom, there
and again
each paper. Not once did these
youngsters use the word "oppor-
it.
evervIS
„lant
w
,Y
rv,Ri-aHfmvi
that
L
{ree
1
wav
x
devised
,,,|,,ie„1.0
Annuarconven1i^°o\g the
77th
1
ap-
that famine would continue
wav
were
trade,
traffic, trucking, working, fishing,
any
i
couid
tmoro
all profits and benefits from
or
well
a/ed
Nation
fhr«o
July x, 1620, utuLuie
1, xu^u, before
uuiji
the
from
unlailmg faith
Surprisingly, the Pilgrims
On
uu
both nieht and dav
if they could.
even
that we Americans no
longer believe that a free person
The
cases was
sswrjasssisr srtBSfsass AS S$S STSSFSK ™complained.
It
Temporarily
Communists for ahmif
,
^
coun¬
admittedly
misfortune.
.
.
state is the road to ruin.
Pilgrims Were Communists—
^
over our
has
of need nor always to the children
factor in most
;
speaking contest
ParticiPated in by-seven finalists
a
«
the
which
of
no
hi.
understand
n',,.
Public
>,
rapidly
pen¬
by
I would guess that few per¬
here
would
abolish
this
sons
a
known
ever
precisely why
time, has
w*
we
x
.
y fblUl0n At length, after much debate
more
people on this earth; but not
try.
1 could sam up in a smgle senchosen from New York Gitv hi^h
tence the lessons from the undians and would cut wood and chosen from New York City high fence
experience of nations all
fetch Water for them for
cap
schools> a11 contestants delivered ;IiapPythe world—there is
over
sefull of corn; others fell to plain- l?a™rs
the subject, "The World overdue wom-tne^.s no , is
...
for another
Since
oince
coverings-
others became servants to the In-
———•",sparcel of government by individousiy
iials
law.
Many sold
bed
anH
\
whether to abandon that road
now< while there is still time, or
whether to permit human liberty
t0 perish from its last great refuge
0n this earth, is the most critical
decision that this nation has faced
since 1776.
■'*
in
the world to take the wealth of reason, I believe, is this: few per¬
sons believe that individual freeAmericans by force of arms,
So we went merrily along our dom and personal responsibility
way,
redistributing the wealth, for one's own welfare offer the
but not necessarily on the basis greatest possible security in an
and
economic
cut
-
faith
security
Government
system,
life. Instead of striking out for
ourselves, along the path of freedom, we have chosen instead to
follow slowly, but steadily, in the
despairing footsteps of Europe,
even though there can no longer
be any doubt that the road ahead
years
evide"ce the vanity °f the conceit
°t pl,at,° and Other ancients, applaudecl by some at later times,
that ,th.e taking away Of property
and bringing a community into a
commonwealth would make them
happy and flourishing as if they
stealing
clear
of
administered
spread so
be traded for economic security.
not
amongst will lead us into
Godl>r and sober men» may wel1 political slavery.
were
lack
social
system
Federal
'
equally diand accepted vided.
Governor Bradford's diary
William A. Reckman
increasing aid tells how many of the colonists
from
govern- at
Plymouth were starving in
ment to the end that they become 1623.
The experience that was
puppets of the State.
had in this common cause, which
Brieflv
economic freedom is a in
e^ect was a "welfare" %state,
nrnH.ipt
should
less
or
most
our
sion
and other economic controls, and concludes surrender of individ¬
wage
people
enterprising
of
compulsory
when
become
the
Probably
example
system that
price,
same
nations
\
individual freedom is found in the
a
brought starvation and suffering to the rest of the world.
has
it,
the
and
rapidly changing into
is
economy
things
•Scores Social Security
nation is drifting toward totalitar¬
warns
with¬
one
any
pro*duction of the
that make for security?
who
those
security for
the
ideology of economic security and the free enterprise system of personal free¬
free¬
which
dom
the conflict between the communistic
on
,
mmwmm
Thursday, October 11, 1951
been replaced by a political an¬
aesthetic called security. Can't we
realize that there can be no ma¬
President, Savings and Mortgage Division, ABA
ideology of economic security
not
.,
Economic Security
vs.
By WILLIAM A. RECKMAN*
philosophy underlying the
doctrine of economic freedom and
.
CHICAGO
SAN
FRANCISCO
Volume 174
ernment?"
of
our
look
Number 5054
As
proof of the
present
at
the
where
approach,
greater
degree
error
let
natiops of the
of
us
world
exercise
governments
The Commercial and. Financial Chronicle
...
control
the
over
their people. There you will find
the lowest standards of living.
The
siren
privation to the citizens of
those
nations.
and her
the
Look
Britain
at
promise of security from
to
the
grave.
The
vote of the British
cradle
con¬
render
the
a
in,tne most
battle
of
that
vital battle,
ideas,
shot is fired!
duction, and all the rest.
sui>
trolled
before
even
What will it
profit
to defeat aggressive foreign na¬
tions who believe in a regimented
us
of government— people
song
guaranteed security—has brought
mass
planned economy and a
people. V Thus
we
a
of
the
ownership
production if, in
and government
means
of
this process, we accept the
valid¬
ity of their doctrines for use here
in the United States.
indeed
be
That would
Pyrrhic victory!
a
brought
has
pulsory labor
them
to
will not undertake to
I
list all
do?
quite
sure
•—the
people
restraints
against
that
voted
But such*
against ourselves.
include
would
freedom
have
we
list
a
controls
that I
determining
and
such
their
this search
say
am
for
that I
of
am
everyday
-
million
economic
personal decisions concerning
things
as wages,
prices,
pro¬
aoing
of
I
propose
decisions and
to the
In
capable
reason,
connected
of
so.
that
the
problems
be
returned
therewith
people themselves.
this
time
of
mend for your
national
grave
consideration these
by George Mason and
in the Virginia
Jefferson
Rights, which
foundation. of
all
itself the
-
men
»
are
posterity; namely, the enjoy¬
life and liberty, with the
of acquiring and possessing
property, and pursuing and ob¬
taining happiness and safety.
means
"That
no
free government,, or
blessing of liberty, can be
preserved to any people but by a
firm adherence to justice, moder¬
ation, temperance, frugality, and
virtue, and by frequent recurrence
by
fundamental
to
which,
state
any
of
when-they
society,
compact,
enter
into
a
they cannot, by
deprive
or
divest
again and
permitted and encouraged to spend
all
we
earn
as
long
as we
and from then
earn,
on a
sponsibility of
our care
Americans
have
been
free
long that most of us take our
free institutions for granted; and
of the
r ize
we read and hear
going on in the rest
spite of all
world,
what
we can
it would
hardly real¬
be like
not
to
rity?
Would you then be willing
going to
surrender the
right to change jobs whenever
you wished?
Would you give up
work?
the
Would
right to
Would
you
you
give
up
Continued
be free.
home?
the right to
own your own
on
over
trols, rent controls, raw materials
controls, controlled rates of inter¬
est,
inflated money,
artificially
cheap credit, and controlled pro¬
Each of these
measures
has the effect of
preventing hon¬
doing what they
of forcing honest
est persons from
want
to
do
or
to do something that they
persons
do not want to do.
is
Why
freedom
has
forsaken
been
forbidden in these vast areas
and
of
As such, each
clear-cut denial of freedom.
a
daily activities?
our
To
the
me,
controls
part of these
if we dis¬
sad
that
is
even
regard the moral issues involved,
I believe
what
they will not accomplish
are designed to do.
I
they
in
can
find
that
in Your
Grasp!
they will work, and I believe
the
evidence
no
history
It is
clear.
is
reason
not, as
is
claimed, an attempt to control
prices or materials; it is always
attempt to control people.
an
Controls Won't Stop Inflation
This brings us to the
vital ques¬
tion: Will the price controls, wage
controls, profit controls, and other
measures
against freedom
now
being instituted by government
stop inflation and high prices in
our
country?
I believe the an¬
is "no."
swer
will
Payrolls computed 'in minutes
.
.
.
costs and inventories calculated with the
speed of light.
.
.
complex engineering
problems solved faster than the problems
can
be stated.
I believe that fines
against so-called black marketeers
not
stop inflation,
prison terms stop it.
will
nor
This is
only
a
cample of the
power
put in your hands by the pluggable IBM
government
Electronic Tube Assembly, the heart of
officials do wish to stop inflation.
the IBM Electronic Calculator. Here is
I suggest, therefore, that they con¬
sult the dictionary to find a defi¬
power
nition
of what they are
tion without the need for
stop.
They will find
that infla¬
"a
dispropor¬
I
concede
tion
is
defined
tionate
of
that our
as
money
the
in
increase
credit,
or
trying to
quantity
both,
or
relative to the amount of exchange
That
business."
caused
by
increase
services.
who
The
increasing
.
supervision
„
„
power
to
free men's minds from the burden of
detail
computation and to eliminate fre¬
quent human error.
goods
question then is:
responsible for
is
what
or
of step-by-step operation
credit
and
and
money
available
to
to. do simple and complex calcula*
disproportionate
a
of
relative
is
inflation
is,
of
supply
the
money
credit?
and
According to our Constitution,
"Congress shall have the power
to coin money."
By dele¬
gation of powers by the Congress,
.
.
.
the
Federal
the
Treasury
trol
of
Reserve
are
and
in practical con¬
credit
overall
the
Board
policy
followed
by our banks.
So we
must* conclude that the source of
this
\
•
lies
evil
We
\est
with
government.
engaged in a conour
philosophy of
namely, economic free¬
are now
between
living
—
dom—and
that
of
a
totalitarian
state—namely, economic security.
We have said again and again that
it
is
free
our
gives
rial
us
way
superiority
philosophies
adopt
is
compelled
embrace
that
these
to
and
the
two
compelled
system
ours
the
Russia
when
imminent,
feel
their
that
over
Yet,
between
test
apparently
prove
life
both spiritual and mate¬
communism.
crucial
of
in
is best.
order
we
to
to
We feel
reject freedom and
Communist
idea
of
re¬
and wor-*
to be told where you are
farmers, businessmen, industrial
workers, bankers, foreign traders,
and other groups.
It would in¬
clude
price controls, wage con¬
duction.
want to
paternal
government should assume the
with that kind of individual secu¬
We
about what is
of
told
being constantly in¬
oculated with the thinking that
we
should have no
anxiety or
care; in effect, that we should be
Is it the problem and responsi¬
bility of government to provide us.
in
rights,
been
are
to be free!
equally free and independent, and
inherent
again and
ries.
so
nature
have
We
These,"! believe, are the truths
by which we must live if we are
have
certain
principles."
23
The Price of "Security"
ment of
Declaration of
our
Independence:
"That
was
their
the
crisis, I believe we can obtain
guidance from the wisdom of our
founding fathers. I, therefore, com¬
Bill of
not' capable
150
is
that
these
I believe
other person, or groups
persons,
For
Thomas
Decisions
What should we
First, I. want to
of
choice
does
freedom lead us!
cf the many freedoms we have
surrendered in the United States
of
People Make
Where then
and a permit from
purchase limited
supplies for their daily substance.
government
Let
com¬
no
statements
democratic
people
(1367)
INTERNATIONAL BUSINESS MACHINES
590 Madison Avenue, New York
22, N. Y.
page
38
)
B4
The Commercial and Financial Chronicle
(1368)
...
Thursday, October 11,1951
they have some undiscovered ele¬
Woodlands
Investment
as an
ments
By ROGER W. BABSON
-
Says/ in
and ownership
Mr. Babsoit discusses woodlands as an investment.
(ire
protected
of woodland is
in
justified
is
owning
some
growing
timber.
This applies especially to those in
the
higher brackets who are not
much
too
in¬
This method has
been cut.
future.
With free
sometimes
gravity
power, it will
possible to irrigate
be
very
dependent
the most
ture.
When
come,
of which must
be seen
be
back
are
Uncle Sam.
the
paid
I
this be-
say
cause
of
25%
only
the
profits
on
woodland
need
be
paid
back in taxes.
In
areas
tected
fires, wood¬
profits
land
should
slow, but
Roger W. Babsoo
With
the
creasing
demand
be
sure.
for
timber
rapidly
more
in¬
than
the
an
growth
during
The sap of very
trees is
now
few hard wood
used.
The outstand¬
ing example of useful
of
the
maple
is that
which
sap
from
trees
maple sugar is obtained. We, how¬
this maple
use
ever,
it is
because
merely
sap
Sometime
sweet.
it
will be found that the bitter saps
medicinal
in
is due
demand
constant
increase
tion and also to the
both
in
to
popula¬
new
for
uses
pulpwood and other species.
A few years
back pulpwood was
for newsprint, wrap¬
ping paper, etc. Today it is used
for plastics, cabinets, cellophane
and even wearing apparel. These
used
only
new uses are
increasing
very
fast.
other
help
blood
diseases.
lar
most
valuable
We
are
spruce
for pulp
leaves
and
various
utensils.
largest profit
In fact, the
be in stands of
may
hard woods because
so
they
are now
cheap.
very
The
very
grafting
of
fruit
is
applies par¬
and orange
trees.
The best orange trees are
valencias grafted on lemon foots,
ried
get
experiments
on
to
more
quicker
being
are
growth.
instead
of
varieties
For
today not
wood
be
one
utilized.
are
cutover
I
fore¬
will
land
some
valuable merely for the
the remaining brush.
of
Marvelous
discoveries
new
are
ahead in connection with the
of grasses
use
and other forms of veg¬
etables which
are now
!
the
Just
it
thought in closing.
a
occurred to you
ever
do
not
do?
About
through
Trees
can
draw
their roots.
We
Has
you can¬
food
up
The
levels.
Cleveland
}
City Club, the
|
author
ad¬
vances
why
feels belt
built
trend
and
The
9 4
1
9,
it
humans
Stewart, Jr.
his
plans
of
for
cross¬
country transportation for eastern
belt
130-mile
Ohio—a
conveyor
system.
The
enterprise known
projected
the River-Lake Belt Conveyor
Lines, Inc. which proposes to link
Erie
Lake
rain
Cleveland
at
Lo¬
and
the Ohio River at East
with
lars
the
to
in this
sumers
the
stressed
view
large and
of
small
Mr. Stewart
area.
defense
the
aspect
in
prevailing critical
making the con¬
system
a
defense requisite
the indicated
as
effect
ties
Stewart
need
the
fa¬
est
through
"feet"
This
our
down
gravity.
against
means
that
seeking
are
absorbed
in
a
normal
more
volume
and
recently,
buyers
continue
they
still cautious
are
where
see
range are
lower
the
the
that
cility—truck, airplane, pipeline,
vessel, barge line and con¬
lake
veyor
line, and maintained that all
pany
are
of this substantial
exceed
one
billion
old
New
evident
is
It
opinion
dollars,
and
invested in every state in the Union.
Many banks, in serving their deposi¬
tors, play
gram
a
part in
our
investment pro¬
income
.
.
by calling
us
in when the
than
to
grant alone.
We welcome
laboration.
such
col¬
the
estate
a
is
market followers
decline
just
in
those
of
one
are
quotations
of
of the
now
higher-
the
adjustments
that
come
in the process
It is believed there
of being marked out.
the
was
case
other
obligations
this
the
if
at
all
the
of
larger
flexible market for the longer-term
more
a
to be in the process of being worked out, but
appears
should not be
area
as
far down as the lows for
whereas the highs should likewise
year,
much
quotations
in
in the past.
words,
trading
new
swings
pronounced
more
the
tops that
not exceed by too
made not so
were
long
It is
ago.
if there
be
in
the market trend
order
good
a
become
for
to
straighten it
be
may
trading
service,
are
be going.
while before the longer-term segment
because
flexible market should
a more
the
as
limits
and lower
upper
defined there will be more of a tendency
fast-moving
operators
to
cash in
these price
on
move¬
However, at the present time there is so little volume that
to be
too much.
mean
in the driver's
The professional element
seat, but that is not a very profitable
operation for those concerned since there never was very much
nourishment
taking in each other's washing.
in
Business
per¬
many
together
of
Order Basis
on
Despite the thinness of the market, there has, however, been
our
to
trust
solve
mutual
modest amount of transactions consummated even
have been done mainly on an
bank-eligibles
1956/59s
less dormant
sure
on
the
government
as
have
to
seem
the
on
order basis.
involved
though these
The operations in the
the
1956/58s,
far
activity is concerned.
as
commercial banks
now
There is less
to invest funds in
some
largely of orders from the smaller non-bank
funds
First Mutual Life Insurance
Company Chartered in America—1835
seem
to
be
pres¬
The
re¬
signs of modest activity, but this
Pension
to not
Life Insurance Company of Boston
the
the longer
market, because of the increase in loans.
consists
MUTUAL
and
buy side, with the September 1967/72s more or
stricted issues have shown
NEW ENGLAND
develop¬
trained in put¬
relationship with
problems
a
irrespective of the direction
we
underwriters appreciate
working
a
be need for such
out,
in activity,
one
clearly
more
the
ments.
clients.
The
trading
new
ment
program
career
in
like
fere with
the growing
production.
ting life insurance to work to meet
officers
seems
often in the bond market, especially when a new trading
be
In
sonal and business needs.
their close
means
volume of defense
representatives who
longer term loans than the bank wishes
which
case
developed to handle
For better life insurance
These
what
of
money
recent
Treasuries
is
area
a
.
the
authorities will not hesitate to inter¬
additional arteries
maintain, from coast to coast, 1100 field
credit needs of their
depositors involve
been
sidelines,
the
on
of
semblance
a
has
as
Trading Area Developing
that
the
that
every so
seems
com¬
only
been
apparently willing to wait and
are
reaches
quotation swings do not
A.SSETS
the
also believed the monetary
extent and
a part
investment
for
more
going to be established.
of the market picks up
our
However,
be
to
and
had
that
market
activity.
breadth,
Although it
in
into the
come
time,
to
since there have
home
new
a
in which the movement may
Many banks... play
time
negligible amounts appearing for sale. These could be very readily
for
transportation
advocated
possible
every
take their food up from the ground
their
from
purposes
yielding governments, and these changes may be more frequent
inserted.
pull of gravity.
support
sizable
very
it would not be at
psychologically than because of the need to absorb securi¬
forms must be utilized to the full¬
tem of the old'tree which has
just
However,
Pointing out that the most criti¬
cal transportation problem today
is the shortage of freight cars, Mr.
The branches, and leaves of a tree
This gives the new tree
evidently were not
these
higher-income obligations.
for
volume
professional operation.
a
purchases of the marketable issues by the
concerned,
were
much
very
could
healthy ten-year-old graft will be
the benefit of the
large root sys¬
better tone in the
a
obligations which resulted in quota-I
surprising if the monetary authorities should
con¬
bodies
by
This created
obligations.
Liverpool, will, he stated, trans¬
our
to
keeping its position in
market appears to be responsive, at least in
activity because it is still
port millions of tons of coal and
iron ore, saving millions of dol¬
through
pass
in
trouble
no
The short
constructive attitude.
more
a
have
to
restricted
picture
privilege to announce
an
evolutionary mode
as
the
the
all
B.
H.
let
up
in the longer end of the list, according to
accompanied by much greater 'activity, even
of those interested in investing funds did step into
the spotlight.
in
in
Mr.
stated,
was
lower
tone
continues
Federal
Early
the
believe
not
was
market
district
financial
the
some
the market as it assumed
As far
fense.
Stewart
in
de¬
and
it
few
a
trading range are being carved out now.
better
reports,
though
and
mouths
food
not
limits of the
tions being marked up without any appreciable change in
be
for
blocks
long securities overhanging it that would need important of¬
ficial support in order to be absorbed. The dullness in the gov¬
ernment market could be a forerunner of a change in trading
intermediate- and long-term
con¬
should
along has been orderly, and even though
the defensive there have not been any large
of
and
he
lines
veyor
all
market
on
rea¬
sons
in
recover
again, to those old stimulants, limited "open market
operations" and large "open mouth operations."
Rumors were
definitely strong that the powers that be had stepped into the
breach and were supporting selected issues of the bank-eligibles,
must
our
able to
been
some measure
at
stump to waste, a hole will some
day be bored in the stump and a
lift
fashion yet,
the down-trend in quotations. Prices
a moderate way because there was
some
assistance from the monetary authorities who entered the
market in order to stabilize it around the then prevailing low
have
today.
that trees
something which
limited volume and activity, has been able to stem,
sure
The government
world conditions
wasted.
Think
not too
a
Market Feeding on Rumors
Railroad Co.,
veyor
Something to
can
the
hundredth of
one
leaves
that
instance,
permitting
Yet,
worms.
in
government bond market, although still under the influ¬
of very
ence
r
delivered
Governments
on
By JOHN T. CHIPPENDALE, JR.
system,
emergency.
Reporter
&
Youngstown
At one time the
percent of the billions of our hard
18 inch pine
an
the
are
of China,
trees
to raise silk
needed
car¬
and
we
leaves of the mulberry tree were
graft timber "trees to
valuable
after cutting down
tree,
pear
valuable
how
Malay and India.
day
trees
future,
the
the tea
of
leaves
This
common.
ticularly to apple,
Now
know
cast
Grafting of Trees
into
Looking
two
Hard woods
the
knows but
dyeing.
the
pine for timber.
Who
must not forget the leaves of trees.
today
also becoming valuable for use
in connection with
furniture, tools
valuable
key to the cancer problem will be
found in the sap or bark of some
hard wood tree.
Today the bark
is
used
mostly for tanning or
woods
and
contain
trees
qualities.
These may
people suffering from high
pressure, arthritis and simi¬
Hence,
are
particularly in present
Canton
halves.
of
the
transportation
a
must constantly increase.
crease
nation's
a
be
growth, it is evident that the price
This in¬
of
Youngstown
President
In an illuminating address, "Belt
dry year. If woodland
cheaply irrigated, the Conveyors—Supply Lines for De¬
which
Harry
Bartlett
time required to grow good timber fense,"
or
pulpwood could
be
cut
in Stewart, President of the Akron,
growth in
could
Our
it has been
Stewart,
B.
Akron, Canton &
R. R., cites need of such projects
to alleviate heavy demands on
cut, it
"growth rings"
inch thick, which was
some
rainy year.
Other rings will be only one quar¬
ter inch thick, which shows the
pro¬
against
H.
mois¬
will
the
upon
tree is
a
that
over
Conveyors as War
Defense Necessity
Urged by R. R. Head
The growth of trees is
woodlands.
terested in in¬
to
Belt
great
a
have
The
Finds
for various kinds of wood products.
uses
investor
are sure,
of escaping part of income taxes.
means
increasing
Every
woodland profits
areas,
which
vitamins
or
possibilities. Don't put all
your money into any one thing;
but don't go through life without
owning a few trees.
great
investors.
doing very little aside from listening
large offerings that appear from time to time.
The
mercial
short-terms
continue
to
be
the
best
actors,
banks, ^corporations and other non-bank buyers
ing well invested in
these securities.
of the certificates appear
with
com¬
still keep¬
Treasury bills and most
to be the favored ones, in this group.
Number 5054
Volume 174
.
The Commercial and Financial
.
.
Chronicle
Rearmament and the
then there is
to
of
on
his main reasons':
real¬
consent of Labor
lack of full support of Labor Party; and (3)
ment, with
ization that it is
politically impossible to get
Party to reduction of workers' living standard.
this
taken
the other hand, would
the
course
next
Socialist Party.
conditions in Britain
Rations had to be cut
still
.
The
rising.
are
;
4
Dr. Paul Einzig
financial
sacrifices
prospects
of
prefer to see
him
to
(Special to The Financial Chronicle)
on
or
economic
those classes.
measures
HARTFORD,-Conn.—John Rig-
that
Jr., is with
by,
The Attlee Gov¬
&
Jackson
Steiner
Co., Inc., 19 Lewis Street.. A'
such
fers
to
leave
office
as
a
result
of
an
adverse
verdict
Schwabe'
(Special to The Financial Chronicle)
the
of
electorate, with the unity of the Labor Party outwardly
Herbert
Joins
'HARTFORD,
main-.
Crichton
is
Conn--Frederick
now
with Herbert B.
Schwabe, 50 State Street.
tained.
deteriorating.
much
«
fore¬
u
■Krnum
movEMar
11w«#asEs tomw
,
-v.
v.
y s y
yWWHIS
v.,
H
^ ........
^
'i
Ky'-K,
economic difficulties, bet would
the Conservatives in office. The
'Vvi'S ?M
imperative necessity of rearmament
from his party to
While the first of the two possible
remarkable lack of public spirit, the
it out.
carry
would
reasons
second would
and
handling of the Persian oil
not get adequate support
but feels that he may
York
With Jackson Steiner
the standard
split;in the Labor Party. It is understandable if Mr. Attlee pre¬
further deterioration of the
.other is that he realizes the
•enable
a
economic
situation during the winter. Mr., Atlee would
have-been in a position, however/to mark time
in the hope of an improvement next year. In- stead he decided to challenge an election on
Oct. 25, with the dice ioaded against him.
It
looks as if he wanted his Party deliberately to
relinquish the responsibility of holding office
at the present time.
If this is the correct ex¬
planation then he may have been influenced
by two reasons. The one is that, owing to the
a
New
and the cost of living is
dispute by the government is subject to
criticism.
It is true, economic experts
shadow
the
-
early general
to most people. For. the time
The Gallup Poll and other public opinion surveys
foreshadow a clear Conservative majority. Eco¬
nomic
of
San Francisco Stock Exchanges.
anything but favorable from the point of view of* the
is
chosen
complete surprise
as a
of
members
A large number of Socialists, on
ernment would have been forced out of office as a result of
came
few
split in the Labor Party.
have placed Party and class above country,
and would have opposed any
LONDON, Eng.—Mr. Attlee's decision to hold an
election
FRANCISCO, Calif.—Ray¬
the
Walston,
Hoffman
&
Goodwin, 265 Montgomery Street,
staff
at the cost of .lowering
living of the working classes.
would have imposed
SAN
mond H. Renehan has joined
would have been patriotic enough to favor
full-scale rearmament even
of
out.
■■
have
Walston, Hoffman
(Special to The Financial Chronicle)
general election with the prospects
•
not
Part of his followers
-
economic difficulties ahead in rearma¬
the Labor Party; (2) the
•
Attlee
Mr.
a
months would have- witnessed a complete
Mr. Aiilee's decision to hold a
Dr. Einz'g gives as
-
Had
general election,
(1) prospect of split in
fight
losing it.
By PAUL EINZIG
Commenting
is politically in a position to carry it
else who
someone
Joins
program
other course for Mr. Atlee than to cede his place
no
Hence the decision to
British Election
its
But if the government wants to uphold
denied this.
indicate
indicate
a
praiseworthy sense of public duty.
a
government to stay in office in face
It is the duty of a
of pros¬
difficulties, especially' if they are: largely the
the policies pursued by.that government.
Those who.
Att1.ee well arc convinced that it is not in keeping with
pects of economic
result
of
"know
Mr.
in the hope that his successor may
his character to shirk this duty
expected deterioration of
be blamed for the
On the other hand it is
post because he has come
.
Government
stands
to the conclusion that a Conservative
of steering the country
betters chance
a
economic difficulties. Above all, it
through the coming period of
is
more
economic conditions.
conceivable that he. wants to reliquish his
than conceivable that
Government is in a better
he has realized that a Conservative
position to carry out the much-needed
rearmament.
The government-
must have realized by now
economic difficulties and the increase
that the coming
of rearmament efforts call
large scale
Current civilian con¬
sumption must be cut substantially, and, this problem cannot be
.•solved by reducing the purchasing power of a few thousand rich,
people or even of a few hundred thousand well-to-do' people;
Any substantial reduction of civilian demand can only be achieved
could only be forthcoming on a
for sacrifices which
on
of the lower income groups.
the part
purchasing power of the tens of
millions of the working classes and lower middle classes.
Yet
the Labor Party, while paying lip service to the need of making
dhrough the curtailment of the
delusion that a curtailment of profits
sacrifices, remains under the
dividends could cover
and
the'requirements, and that it is the
government's duty not only to maintain
the standard of living of
The government is pressed
to limit dividends and to distribute surplus profits among the
workers. The result would of course be a net increase of the. de¬
mand for necessities and a reduction of the demand for luxuries.
It is difficult to see how that would assist rearmament.
the working classes but even
A
stage has been
raise it.
reached, or will be reached not later than
which the government would have
to admit openly that the workers' standard of living must be
reduced in the interest of overcoming the growing economic dif¬
ficulties and in the interest of rearmament.
Mr. Attlee must have
realized that it would be politically impossible for his government
next
year's budget in April, at
He knows he would not be
tp do so.
Already he has been
of
agitation against rearmament.
of the popular appeal of this agitation among
Socialists who embarked on an
He mint
be aware
the rank and file of
ing to
ment,
le pressure
a
his supporters.. His choice was between yield¬
of Left-wing and reducing the scale of rearma¬
id relinguishing his post
Would secure at the general
necessary.
inclined
in favor of Mr. Churchill who
election the necessary support to carry
rearmament scheme and even to increase it further
out the full
if
been suggested recently that the government
is
It h
to
we
Gaitskell is in f.
a
supported by his Party.
stabbed in the back by the Left-wing group
*n
.or
on
the
longer period than the
return from
rearmament question,
of spreading the
£4,700 million
and that Mr.
program over
originally planned three years.
On his
Washington and Ottawa Mr. Gaitskell emphatically
1
ot
all that's ted is America's enemy.
We have
no
mightier ally in
versatile red
mobilization effort than that
metal—copper.
The Greater Butte
It will
start
Project, pictured here; was begun by
Ahacoftda in 1948.
the rate
delivering copper ore of low grade early in 1952 at
of 6,000 tons a
day. Eventual output is expected to reach 15,000 tons
a
day, resulting in
a
year.
an
increased copper production of 90,000,000 pounds
and
This is in addition to continued output of copper, zinc
manganese ores
This
our
from existing underground mines.
giant Montana project
.
.
.
but
one
phase in Anaconda's tremendous
will cost some
sound investment in America's defense
expansion, improvement and modernization program
$27,000,000. Every dollar is a
...
. .
.
-
today—in America's progress and prosperity tomorrow.
For copper,
equally indispensable in time of peace. Wherever
people live or work or play, you'll
doing
more
find copper
jobs and doing them better than any
other metal. And when, in a more
comfort and convenience are
consideration,
copper
©
indispensable to military needs, is
no
stable world,
again the first
metal will do more than
in helping to achieve them.
51324
Anaconda
First in Copper,
The American Brass
Brass and Bronze
Company
Anaconda Wire & Cable Company
International Smelting and Refining Company
Andes
Chile
Copper Mining Company
Copper Company
Greene Cananea
Copper Company
26
The Commercial and Financial Chronicle
(1370)
Departing From
Founding Fathers' Concepts
Fundamental
firm in their confidence in them¬
The
selves, their belief in and their
Let
us
Issue
Today
issue
principles and institutions, which
have given them the opportunity
to develop their self-reliance and
this country and
in the world today. The basic issue
is: what
is the position of the
independence. Above all, they are
alike in their abiding faith in
God Almighty.
individual
fundamental
involved
taking place in
relation
with
man
to
the
we
each other
lives,
our
pledge
our
to
fortunes,
the acts of the British king that
colonists revolted/
the American
an
uncharted
They
future
immediate
tremendous
with
and
long
problems confronting them,
they faced these problems
range
and
limited
with
Two
in¬
and
manpower
physical
adequate
resources.
problems
immediately
First, they had
to win the war for independence
which they were already waging
them.
confronted
with
Britain.
Great
had
establish
to
central
new
would have
which
they
opportunity to live
lives in
dignity
an
indvidual
convention
stitutional
this
achieve
to
They worked hard
and
they worked
long.
They
sought in prayer the guidance of
Almighty God. They came forth
purpose.
with
the
United
of
Constitution
States
the
of
America, de¬
clared by William Gladstone, the
great British statesman, to be the
most wonderful work
off
at
a
ever
struck
given time by the brain
and purpose of man.
The
Second, they
a
under
government
their
Constitution, with its Bill
of Rights amendments, sets up al¬
most
prohibitions
more
to what
as
the government may not
do than
it
they had been subjected by their
government.
the
Tyrannical Parliamentary
Government
<
centuries
After
Pf
struggle
against their kings, the people of
England in the Revolution of 1688
autocratic
the
out
King
freedom
and
ference
As
late
as
1946, the present
is obliged to re¬
The individual man exists Socialist government in England,
for the state; therefore, the gov¬ in support of what its SocialistParliament had done
ernment or the men in control controlled
drove
and our sacred honor."
English
faced
iTiere
complete.
turning back.
was
no
the government
political
mutually
as
and
be
spect.
principles
protection of Divine Prov¬
idence,
the
was against the ar¬
unlimited power of
Parliament as well
it
In fact,
bitrary
country
could
gives grants of authority as to
what it may do. Even then, after
its grants of authority, they pro¬
vided in the Tenth Amendment
and in¬
and eco¬ of the government can do any¬
nomic life, and the freedom and
thing it or they see fit, to or with
independence of its citizens ffom the individual; there is no redress.
the attacks upon all these cher¬ That is slavery under whatever
it
ished heritages which are today name
may
be labeled. The
being made both from inside and struggle of mankind through the
outside of this country. To accom¬ centuries for freedom as gleaned
plish this purpose, we must re- from the pages of history is the
dedicate ourselves to the task; we story of man's hopes, his aspira¬
and his battles with his
must become fired with the pa¬ tions,
own despotic government for the
triotic zeal wtih which the signers
right and opportunity to lead his
of our Declaration
of Indepen¬ own
life; worship God in his own
dence were imbued ' when / they way; accumulate and be protected
in the ownership of his own prop¬
concluded
with
these
ringing
erty; and be free from personal
words:
imprisonment, confiscation of his
"And for the support of this
property, or the taking of his life
Declaration, with a firm reliance by the government.
on
rights and liberties which
they had fought so long and so
hard to secure from their kings.
very
government? The absolutist
philosophy
says
the individual
man has no personal rights which
higher duty resting
its
they
his
Upon each
of us as American
citizens today than that to pre¬
serve and defend this country, its
stitutions,
had made Parliament
supreme with completely un¬
limited power. They had thereby
surrendered
to
Parliament
the
that
the fundamental
in the struggle •;
get to
loVe of the fundamental American
no
of Orange on the throne.
They then thought they had se¬
cured their libei ties, only to find
Mary
We Are
'There is
placed William and
James II and
from first page /
Continued
Thursday, October 11,1951
...
proposed to do, declared
through the Attorney General of
and
without
They had
win
to
their lives
save
the
inter¬
harassment to which
the
well
as
war
as
to
to gain
and
their
freedom
able
to
Sir Hartley Shawcross:
"Parliament is sovereign; it may
government under which they and
England,
laws. It could ordain
that all blue-eyed babies be des¬
make
any
birth." This from the
General of Britain.
at
troyed
Attorney
is
It
the
extent
of
the
power
government has—not the source
of it—that is important. A tyran¬
a
nical
drunk
government
though
even
power,
with
and,
establish
children
their
therefore,
permanent
a
live.
could
practical realists
were
be
They
well as
as
idealists, and they had what had
become traditional
the Ameri¬
as
saving sense of humor. Ben¬
jamin
Franklin truthfully said:
"We must all hang together, or
assuredly we shall all hang
separately."
can,
elected 'by
1
here
cannot
and
now
review
the people, may well go to greater
their heroism in overcoming what
lengths
seemed
than a beneficent gov¬
ernment attaining power by force
by succession.
or
The
ment in
present Socialist govern¬
England, although elected
by the . people, has probably de¬
prived more Englishmen of more
rights, privileges, and immunities,
and has placed
greater burdens
greater numbers of people than
on
of their most despotic kings
have dared to attempt.
any
would
Of
when
course,
an
absolute
government falls into the hands of
utterly unmoral cutthroats as in
insuperable obstacles, and
by their suffering and their blood
winning for themselves and for us
most
our
precious
heritage
of
American freedom.
The? end
the
of
dawn of peace
and
the
mean
that
war
did not
establish
to
permanent
a
under
government
central
which
they
could live and enjoy the freedom
which they had. fought so valiant¬
all
that
delegated to the
cen¬
tral government were reserved to
the states or to the people. Most
of their
suffering—physical,
men¬
tal, and spiritual—had been caused
by the interjection of the hand of
government — their own govern¬
ment—into their individual lives.
The paramount
to
accomplish
from
thing they wanted
to prevent this
was
happening
again
the
they
planning to establish. They
were
realists—they had learned
the hard way of the tendency of
hands
of
the
at
government
were
men
their
with
vested
to
powers
governmental
expand
increase
and
functions
and
powers
and
perquisites at the expense of those
governed. They wanted to put a
stop to such a possibility in this
country,
once
and for all.
Constitution Did Not Provide fojr
they
stepped into a ready-made
Utopia. They were almost com¬
pletely
disorganized
politically,
and they were in desperate straits
economically. Their next job was
restriction
blanket
powers not
A
Planned
We find
sions
or
Economy
nothing in their discus¬
in
the
product
of
them
providing for the establishment of
an
economic
order,
or
any
pro¬
vision that the government should
plan an economy for the people.
They did not want the govern¬
then not only are their
ment to plan for them as individ¬
own people enslaved, but the free¬
ly, and at times it seemed so hope¬
uals, or to look after their per¬
dom of all people is threatened.: lessly, to attain.
sonal needs or wants.
They did
When a mad dog is loose, no one
,They had no human legalistic
not want the government to pay
is safe.
bqjckgi#und or precedent for the them,
f'>'■■ ,.'v; 'J, V-: . 7, /..
■ :■;
doles,; to tell them -how
So much for the old world and rights they wanted every man to
much; and what they could plant,
A God-fearing, religious
its historical domination
of the enjoy.
and buy their crops at higher than
individual by his government. Let people, they turned to God Al¬
market prices. They had proved
mighty as the source of the rights
us
turn now to the new world.
to their complete satisfaction that
powers
for
which
Our forefathers left their homes and
they
each of them could do those things
in Europe and crossed a mighty yearned. Listen to these words:
for himself. They accepted politi¬
ocean
in
"When, in the course of human
fragile ships to make
cal
government as a
necessary
homes for themselves on a new events, it becomes necessary for
evil. Our founding fathers wanted
one people to dissolve the
continent
because they
politi¬
wanted
a minimum of government and
a
the political, religious, and eco¬ cal bands" which have connected
maximum of God-given freedom
nomic freedom which they could them with another, and to assume
so that, with this freedom and the
not enjoy under the governments among the powers of the earth the
dignity vested in him as a son of
and economic systems in the coun¬ separate and equal' s t a t i 0 n to
God, a man could live his own
tries from which they came. They which the laws of nature and of
life, make his own living, support
faced
peril, hardship, privation, nature's God entitle them
his own family, educate his own
and
often
death
because
they
Again:
•
.
■
children, accumulate and retain
placed a higher value upon in¬
"We
hold
these truths to
be and dispose of his own property
dividual rights and personal lib¬
self-evident:
That
all
men
are
—all of which his own history and
erty than the cost which they created
equal; that they are en¬
were called upon to
pay in terms
dowed by their Creator with cer¬ experience had demonstrated to
of personal and physical hardship.
tain
unalienable
rights;
that
When the English
government, of among these are life,
liberty, and
which they were citizens, at¬
the pursuit of happiness; that, to
tempted to impose its restrictions secure these
rights, governments
Russia,
,
o
bankers
in the other
.
47 states:
When your
in
bank has title insurance
matters
and
Pennsylvania, why
not
bankers do; Refer your
do
Pennsylvania
as
Pennsylvania title
decrees
extent
an
to
.the world's oldest title insurance
pany—a company
that's issued
over a
com¬
million
and
policies in this State..
; '
..
.k.
BANK AND TRUST COMPANY
them
such
to
impaired
are
ing
of
that
government.
action
was
instituted
their
I
LAO
E
L
P
H
I
A
.Brpad and Chestnut
.Fifth and Chestnut
men—not
ing tyranny of
men—are
British king and
titled
them.
They held that all
just themselves, but all
endowed
not by any.
king or potentate or parliament^
they could no
but by their Creator—with certain
endure it and retain their selfunalienable
rights.
That means
respect and their status as free that these
rights± are inherent,,
men.
The strength and depth of
eternal—they are not to be taken
their feeling was expressed -for
away or usurped by any govern¬
them when one of their fellow
ment regardless of its form or
patriots announced his unalterable
name, and including particularly
decision by declaring: "As for me, the
individual man's own govern¬
give me liberty or give me death." ment.
■(
They took action only as stated in
a
British
Parliament
that
—
until
they
longer
their Declaration of Independence:
Birth of Human Freedom
This
long train of abuses
and usurpations,
pursuing invari¬
ably the same object, evinces a
man
design to reduce them under ab¬
a
old-world
it is
a
despotism, it is their right,
their duty, to throw off such
government."
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION
the
They claimed the equal station
solute
\
H
deriv¬
from
laws
of nature and of nature's God en¬
or precipitately. They en¬
dured for years the ever1 increas¬
"When
-P
powers
for themselves to which the
taken
not
hastily
a
among men,
just
consent of the governed."
liberties, they threw off .the
yoke
felt
title
it
and
threatened to destroy their rights
This
work
upon
that
.
■With the issuance of them Declaration of
truly the birth of hu¬
not only in this
country but in the world. It was
—
It swept aside the
concept of the unlim¬
ited power of the state over the
new
concept.
individual citizen.
<
Their
problem
was
to
NATIONAL
BANK
of WASHINGTON, D. C.
devise
.
FOUNDED 1836
Undependencesfcy
the 'and establish such a government.
colonies, the die was The representatives of the several
The breach with the mother states came together in the con-
American
cast'.
was
freedom
1
FEDERAL RESERVB. SYSTEM
MEMBER
•
FEDERAL DEPOSIT INSURANCE CORP.
Number 5054
Volume 174
.
.
.
The Commercial and Financial
if the gov¬ Productivity—Key to High Living
Standard
;
governmentProductivity of the individual is
would just let him alone.
the
key to the American high
Another
thing is noteworthy.
standard
of living.
With only
Our founding fathers did not even
about one-fifteenth of the world's
spend their time discussing what
and about the same
kind of a government would be population
the
most efficient.
They prob¬ proportion of the world's land
area
and natural resources, the
ably realized that a streamlined,
United States has more than half
absolute
government
with
its
the world's telephone, telegraph,
power
to maKe quick decisions
and radio networks; more than a
and take prompt actions, if hon¬
third of the railways; more than
est, intelligent, and high-minded;
of
the
world's
would in many respects provide three-quarters
the
greatest
efficiency.
They automobiles; almost half the
world's
radios;
and
consumes
wanted no part of any such gov¬
more than half the world's coffee
ernment. They knew the inherent
and
rubber,
two-thirds of the
human
limitations
and
weak¬
him that he could do
ernment—his
(1371)
Chronicle
own
individual
that
what
Men found here in America
ours?
and
freedom
op¬
you
step
portunity which appealed to the
minds, the hearts, and the spirits
of men, and which unleashed such
a
mental and physical
surge of
productive
had
never
energy
both
mentally
effort—in
the
make
tional belief, based
servation
ra¬
that
.
and the tendencies of
fellow
men
their fel¬
Without reference to effi¬
restrained
lows.
over
power
for
established
government
of
three
separate , departments,
each intended to be largely in¬
dependent of each other, and each
ciency, they therefore
departmentalized
a
of
the
tremendous
people
have
they
That is
incentive.
an
If you want
the Ameircan system.
a
the
they go after
get it. if
can
and can keep and enjoy it
when they get it. They work when
it,
quarter of the coal, and
nearly two-thirds of the crude oil.
Now, what is the basic reason
silk,
their
when vested with un¬
nesses
they
than you have and are
more
will¬
ing to pay the price in brain and
brawn and thrift and intelligence
achievements
way
have
the
velopment of his
in
right,
and by the
his
and de¬
use
talents and
own
abilities, to achieve his ambition,
these opportunities of the individ¬
ual
are
what made this nation
or
through
efforts;
your
right to
own
and
the
and enjoy property
both
success,
as
a
as
nation.
for our
reason
individuals
This
freedom
and
and
great.
a
They must be preserved as
priceless heritage because the
things that made this nation
human
same
That kind of life and opt
portunity came to be known as
the American way of life. It has
great
is
one
of
the
most
basic
rights.
opened new frontiers, both geo¬
graphically and scientifically. It
dug the gold out of the California
mountains, and it broke the vir¬
gin sod of the great prairie states.
The
opportunity in this
great
country of ours for every man,
industry, there is no limit to
and
in this country of
then
own
right for yourself and your family
that
which
youhave acquired
upon-their ob¬
experience,
and
and
capital as the result of
legitimate "efforts, you miay
keep and enjoy as a property
and
the
further
your
physically to get something they
want badly enough to cause them
to
Then there is one
that our American
If you secure prop¬
is the fundamental
erty
witnessed.
work
Men
produce and what
system goes.
world
the
as
can
have.
you
can
27
can
are
keep
The
only
things
that
great.
Trend
to
Subjugate the
Individual
Today, both in the world at
large and in this country, an ef¬
fort is being made by centralized
■
government
to
resubjugate
Continued
and child to set his goal
woman,
the
us
on
the
page 28
_
check and
There is no
evidence that they contemplated
the likelihood that the executive
would or could at times try to
intended
balance
act
to
a
as
the other.
on
legislative department
control the
by turning off the spigot of gov¬
ernmental patronage from a mem¬
ber of the Congress who did not
take the executive program, and
turn it on for those
who did what
asked or told to do.
They probably did not contemplate that the executive might at¬
tempt to remove a Supreme Court
which differed with him on the
constitutionality of parts of his
they
were
office
effort, his tenure of
direct
that
and that, failing in
program;
continued so Jong that
he achieved his purpose through
be
could
of appointment.
his power
,
>
Constitution Provided for
Opportunity
Individual
i
stitution, the doorway to individ¬
ual
opportunity
and freedom
was
thrown open to our people.
At
*
ognized and gave an opportunity
for the development of the innate
I
.
need, desire, and craving of man
be able to stand erect with his
,
high and, under God, work
his own economic, political,
and spiritual life. It was
This
•:
to
tlae dawn
lyM'
.'/XI
greatest impulse
the
was
"Our
development and exercise
and physical energy
the
new
*
fr
}j?
i?/
iM'T-
day.
new
a
k
if*
•
7 of
£
f
to
out
-1
If;
come
head
V
II
last, a political system
into being which rec¬
long
had
5
$
<
of our Con¬
With the adoption
V
National Teller's Machines..
.
mental
of
and
industry
that this old world
It was the firm
had ever known.
base
granite
the
which
upon
Speed Customer Service... Reduce
life could be
The effect was almost mi¬
American
built.
of
way
Men
raculous.
other countries
and women from
wanted to come to
It
live their lives
in this land of individual oppor¬
this new land and
tunity. They were ready
Analysis Cost... Speed Teller Balancing!"
and will¬
and they proved themselves
able, to meet and conquer the
hardships and perils of a pioneer
life in a new land.
With their
ing,
muskets
homes,'
their
knees
and
firesides
for
ready
ever
their
the
protect
to
got down on
around their family
they
opportunity
THE FORT WAYNE NATIONAL BANK says:
which
faster service to customers
receipt faster with one operation
c-
men.
:' J 'V
The story of the
cash several checks
V
•) {\
is
alleled
It
the
of
embodies
the
crossing barren
plains, parched deserts, and towering,
determination
bounded
courage.
inventive
can
It
and
tells
•
■
we
can
only
*
'
•
•
'
'
'
*
,
•
•
'
r
t
Visible amount dials promote
and posting. All
•
Locked-in
teller
-
accuracy.
original-print audit tape (no carbons).
local National representative for a demon¬
see how National's New Teller's Machine
stration and
balance faster
will
...
speed customer service and teller balancing... re¬
duce costs
...
increase efficiency.
obtain the same
of features found
'
■
Single form deposit ticket and receipt,
ated
<
oper¬
.
the National Teller's machine:
on
'
of
control, assuring identical
for both depositor and bank.
•
permits
installed Nationals."
bank
totals provide flexibility for many plans
All transactions under locked-in
Call your
Your customers and your
ingenuity of the Ameri¬
'
or more
records
showing only
previously used both manual and
advantages because of this combination
people who, because of their
Six
ation.
analysis cost.
and easier since
ambition, their initiatve, their in¬
a
faster to
machine feature helps speed customer service
teller's
and eliminates need for an extra adding machine in
more
...
machine methods of teller operation—now
-
the
dustry, and their thrift, developed
now
because of the new List
always available
are
"Our tellers—who
un¬
of
checks,
this reduces
snow-clad mountains with
dogged
it's
frequent release of checks for proving
span¬
continent
pioneers
^sturdy
Built-in adding
...
•
cashed
a
from the
Atlantic to the Pacific, with the
ning
as a group
...
"Separate batch total, and separate tape
thrilling and unpar¬
chapter in the history of
mankind.
•
give
key.
growth of this
great country from its small and
modest beginning to
its present
stature
now
cage.
had to live their own lives as free
a
...
"We
teller produces customer's
God
they
their
thanked
*•'
automatically perfor¬
service.
for quick separation, speeds customer
productive capacity and thereby
secured
before
a
standard of
equaled
or
living
even
never
of in the history of this old world,
THE NATIONAL
dreamed
>
>
•
t
CASH" REGISTER
?*:
COMPANY, DAYTON 9, OHIO
7;v:.
,.
■
28
(1372)
The Commercial and Financial Chronicle
Continued
from
page
Britain
27
The
Departing From
Founding Fathers' Concepts
efforts
and citizen.
man
These
potential.
We
must
prepare
for
their true
take
In
Soviet
physical form.
Russia
her
and
tively,
sub¬
country
jugated satellites, though some¬
times using the form of prosti¬
tuted legal procedures, the actions
are
direct and physical, as evi¬
denced
by the murder and en¬
slavement
those
of
who
do
called
I
be
never
can
disintegrate and
not
the
when
obey the
and
proud
of, the dictatorship.. Even
government, dishon¬
the
Russian
est
and
its
dishonorable,
in
all
lost
purpose.
selves
the
•
The Communists
use
rich
taxes
people live
the
and
in
promised
force with
powerful,
and
their
have
labor
five
bob
land
the
openly espoused the present
Socialist
their
form
government
the
of
its plat¬
on
socialization
busi¬
of
and
ness
prodigality and the greatest bru¬
tality when they think the time
zens
has
luxuries of life without work. Im¬
today under the
government operation of the coal
morality
mines not only
arrived;
procedure
first
to
standard
their
but
is
necessities
soften
up
but
and
the
circuses
laziness
the moral fibre and
char¬
toll
from
acter of the Roman
idealists
result
who
of
present
or
not
do
presented
betterment
human
plan, They
working
country in that way today.
Whether
powerful
are
machine which
colossal
she
its
this
the
world's
southern
large fish
a
fed
the
coasts,
the refuse.
When the
ultimately closed,
the
thousands.
They
had
"It
aries,
is
rotten
the
at
government and
would" crumble like
her
core,
of
cards if put to the acid
test, I do
not know.
We must not, for the
sake
ture
of
our
present
generations,
and
can
provide
ing
dependent
seagulls
should
fu¬
They
disintegrated
and
It
es¬
is
a
In 1936,
of
in
his
Social¬
to
proposed
to
decaying
establish
which
our
capitalism.
work
for
lishment of socialism
as
is
do.
War
same
Minister; in
so¬
we
pres¬
Hence,
the
transition stage on
of communism."
Today that
suc¬
It is, accord¬
something
as
establish
the immediate
sary
a
estab¬
neces¬
the road
Mr.
Strachey
the Socialist
government of Great Britain.
teriorated from within.
had
as
Communists
self-reliant, free, and in¬
as
Practice
put in the place of
ent
their
living; and they had .raised
her
our
misjudge
to
an
wrote
impossible
cialism
had not learned how to, catch their
own fish and make their
own liv¬
power
house
a
desire
Strachey
to capitalism.
ingly,
generations of young seagulls who
and
her
the
is
cessor
fed
own
John
communism
sea¬
the millions she is oppressing both
and
outside
her
bound¬
and
keep her.
Communism.
"Theory and
and, because she is by others for so long that they
technology, hated by had lost the necessary knowledge
inside
to
year
ism":
can¬
been
from
Mr.
gulls starved by the hundreds of
most
a
step toward Communism.
throwing
and garbage into the
the seagulls in untold num¬
gathered there and
lazily
on
nery
coal
of
cape
had
cannery
years
been
going
general
in
on
this
country for some years, but the
pace at which it has been
going
has
been
tremendously
acceler¬
ated in the last two decades. Dur¬
de-
I
hope and
zens
of Great
have been asked for and
largely granted by the Congress.
Governmental
lives
of
the
lished,
have
controls
the
estab¬
further
for
regulations to
controls
Bureaus
and
the
over
once
called
and
former
tive.
controls
people,
effec¬
more
administrative
agencies,
tive
pray that the citi¬
Britain, bound to us
and
roll
added
in
to
the
July of this
Federal
pay¬
Govern¬
year.
ment
spending in peacetime, and
nonmilitary purposes in war¬
time,
has
gotten
beyond
all
for
bounds.
In the ten years between
1950, the annual expenses
of the Department of Commerce
thirds
of
the
individual
incomes
.V
•.
y..vtW
"
V
•
y.'.y-
peacetime
,/./•;
1949,
a
so-called
'
*
*
.'*'••
comprising
between
of
the
one-half
land
and
two-thirds
of
area
of
the
80%
to
of
to
the
United
individual,
his
taking
personal
forth
put
earn¬
productive ef¬
When the gov¬
destroyed.
with .its
which
in
•'
and
greatest
individual
its
the
ob¬
and meeting
problems, it is an in¬
for
the
law
evasion
undermining the
our
wave
people.
of
moral
It is reflected
dishonesty
and
the
.
^
•'
\
...
'
and
Co.
a
other
•
of
•
LOS
sion
SAN FRANCISCO STOCK
EXCHANGE
•
SEATTLE
•
Private
might
an
later
country and
its
the foreign
aggres¬
now
an
threatened.
who
does
I
know
not
of
support
adequate defense effort,
sacrifice
it
requires.
we
are
sending
our
sons
to
fight and die on foreign shores
for the preservation of our
Amer¬
ican ideals, it is the
duty of those
us
and
at home to do
freely; but
•
PORTLAND
•
HONOLULU
to
to
save
for
Direct
be
for
our
citizen
When
leading Stock Exchanges '
ANGELES
to
from
is
FRANCISCO
necessary
what
or
more-than-
whatever
14 WALL STREET, NEW YORK
5, N. Y.:
SAN
am
for the pro¬
of
•
taxes
prove
such
MEMBERS
NEW YORK STOCK EXCHANGE
BOSTON
the
tection
"
Wires
of
our
demands,
hard-earned dol¬
lars that they must be
taken away
from him in taxes
designed to de¬
crease
his
purchasing
power,
while it is not .considered
infla¬
tionary for his government do
make grants and lend
and spend
billions of dollars which
directly
increase purchasing
power.
•
In
reply to thousands of letters
which I have sent to
members of
this Association this
year in sup¬
port of the
Voluntary Credit Re¬
straint
Program, I have found not
one
banker who has refused
to
cooperate in the program. I have
received innumerable
letters from
them
pledging their support, but
agencies
thing and set
government
an
do
the
and
same
example instead
of
soliciting and making the very
loans which their banks
have been
declining to make as a part of the
credit restraint
program.
I had
no
adequate answer to make.
1
Yes, even if by a demonstration
•
of
military strength
avoid
we
an
with Communist Rus¬
war
or even if such
upon
a war
is forced
which God forbid, and if
us,
we
an
as
part of that ef¬
a
have
converted
and
we
economic
political
carry
the
which
on
a
our
part fully
part of that duty
at home .the
ideals
cur
and
sons
their lives abroad.
,
At
war
fight
principles
giving
are
I
time when preparations for
have increased war expendi¬
a
tures to unprecedented
a
time
when
a
our
free
systems
regimented,
government-
the basic issue involved in
fort.
How long does an
gency
have
program
before
and
it
becomes
to
it
take
for
a
emer¬
continue
established
an
regular procedure?
will
ef¬
our
How
long
government-
regimented
economy, established
for the duration of a series of un¬
ending emergencies, to become the
way of life of the American peo¬
ple? Those are some of the ques¬
tions
that
millions
American citizens
cerned
about
If the
are
of
patriotic
greatly
con¬
today.
Holy Bible had
exposition
of
the
been
scientific
an
tech¬
nological developments as of the
day it was written, it would have
been
ago.
obsolete
As
many centuries
expression of the re¬
an
lationship of
to
is
a
no
Dean Witter
in¬
talking about the restrictions
even
'•
duty
such
to spend his few
con¬
adequate, preparation
-
forego
duty of our
representatives to resist and
deny
them if and when
they are made.
It is hard for the
ordinary citizen
to understand
why it is so infla¬
tionary for him to have the right
planning
is
the
taxes
is ithe
fiber of
and
...
patriotic
to
and it is the patriotic
controlled, socialized system of
stateism, then we shall have lost
not
:
the
incomes of all the people west of
the Mississippi
River,
ducement
•
is
people
into
year,
his economic
V
it
by various segments
people. This is a time when
the Federal ex¬
penditures equaled the individual
people
r
'
■
•/
-V-:
our
the world—if
adequate,••
V
of
fort
In
side of the government.
Let me make it clear that I
...
rep¬
resentatives
fornia alone.
corruption which is
sweeping
land today both outside
and
'
demands and political
pressure in
support of them made on our
of the people in the state of Cali¬
in
X
ex¬
decisively win such a war at
appalling cost of human suf¬
fering and human life throughout
which
■
public
total expenditures of the Federal
Government were less than two-
regulations,
Corporate & Municipal Issues
that
often the result of
are
sia,
fronts
Bt Hawaiian
realize
Labor 1,283%, and the State
Department 1,634%. In 1929, the
fort is
Pacific Coast
I
from
expendi¬
of
stacle
on
tures?
dollar
domestic
all-out
ernment,
Inquiries invited
a
increased 1,049%, the Department
ual
Securities
possible
penditures
1940 and
ings, the incentive for the individ¬
DISTRIBUTORS
through
suspend, and elimin¬
every
nonmilitary
the
up
Municipal
cut, curtail,
ate
do " not
civilian employees
17,198
—
pocket
and
people
•rate
taking more than half of its
earnings, and has its hand in the
DEALERS
our
its
ness,
Corporate
by
asking why
States. When the government has
its hand in the till of
every busi¬
UNDERWRITERS
lated
bounds, running now into the
millions; and that process is go¬
ing on today at an accelerated
were
almost half
the
purchasing power, of the
American dollar and
thereby cut
in half the capital funds
accumu¬
make
as adjuncts of the execu¬
department, have sprung up
dike mushrooms. Government em¬
actually
ployees have increased by leaps
industries going.
refuse
ocean,
bers
today
our
has
trend
This
longer able to
no
Socialism does not offer
operated for many
idea
on
of
one
where
a
tons
weight.
own
On
military
proclaim, or
some
is
bluff
backward in
as
and
within,
their
resources,
export
coal,
but now
seeking the import of two million
people.
They
disintegrated
largely fell of
and
from
effective
and
whether
is
Russia
deteriorated
end
the
see
what is
on
tural
their
their
intended victim by boring
within, using both ruthless
paid agents and spies, and also
utilizing
even
without
their
knowledge the ignorant and some¬
times
the
superficial
plywood
and
took
socialism.
state
toward
road
week."
a
to
gave
soldiers
and
of
of
industry.
We see the
the
Caesars pitiful spectacle of Britain, with
their citi¬ an almost unlimited supply
of
not only
the coal as ,one of her few great na¬
power,
and
tried
on
the
-
foreign slaves. To maintain them¬
coming
to
tram-
down
ing that period of time, we have
been living in one governmentYes, declared
period
of
emergency
t h e
softening-up, disintegrating after
another; and new periods of
process under the name of liber¬
emergency
are -superimposed
alism had been going on for some
Upon those previously declared.
decades, assisted, it is true, by the For
each
declared .emergency,
great suffering which
occurred
added powers to the central gov¬
during the last war, before Eng¬ ernment
their
country, has frankly de¬
clared not only its objective but
even
the
procedures and tech¬
niques to be used in achieving its
own
crowded
a
country today,
own
is
traveled
an
come
Roman
title,
On
our
of
representatives in the Congress to
startling to see how far we
have
departed frcm the funda¬
mental concepts of our founding
fathers, and how far we have
by declaring in a rau¬
cous
cockney accent, "Yes, sir;
Lloyd George made a lady of me,
he did, by giving me a fixed in¬
barian tribes of the north and be¬
to,
it
passengers
fell
its
orders
knee
when
1911,
the
Concepts
take stock of the sit¬
we
in
uation
Birmingham, England, I
elderly,
intoxicated
Englishwoman amusing the other
deteriorate
dealings both within and without
the
falsely
was
worked
heard
citizens, once a
vigor, ini¬
tiative; and industry by being: fed
at the public trough.
The Roman
Caesars, after conquering the bar¬
bend
When
in
car
destroyed
empire
Roman
great
In
Founders'
in
was
Scotland.
from within.
The
lifetime of effort and
industry and
thrif t, is it too much to
expect our
How We Have Departed From
college, with another stu¬
my way on a cat¬
tle boat to England and took a
bicycle tour through England and
from without unless and until we
first
liberalism.
dent I
first, and work industri¬
individually, and collec¬
up
to our potential, this
things
ously,
decades of what
some
being made in many the worst even though we hope
places and under many names and for the best. On the other hand, I
by many procedures.
Some are am firmly of the belief that, with
open and direct physical atttacks the quality of our people and our
—others are indirect and are a great productive capacity, if we
battle for the minds of men which, prepare intelligently, putting first
would enable them to
sures have taken
away
fore it is too late.
of
cialist government came as a resi-It of what had taken place over
are
when won,
today
Thursday, October 11, 1951
..
by ties of blood, language, and ;
historically
common
traditions
and
institutions, may lift thern-selves
from
the
quagmire' in
which they are now sinking be¬
the
once mighty
Britain did not just
come about, overnight—no, and it
did not just come since the war,
with the present Socialist govern¬
ment.
In
fact, the present So¬
We Aie
individual
Example
an
state
sorry
.
to his
God
and
his-fellowman, it is eternal
and
as
was
the
man
applicable to
when
it
man
today
written.
was
basic qualities
as
it
No—
of human
na¬
ture have not
changed through the
Inspite of the popular
conception of the youth of each
centuries,
generation
doubt
to
day who
nature
of
Solomon,
man
The
a
a
contrary,
about
than
more
colonial
King
alive today
about the nature
not
startlingly
Cleopatra.
founders
who wrote
did
did
the
woman
than did Queen
stitution
I
alive to¬
man
more
woman
or
government
and
is
knows
who knows
of
the
if there
make
new
„
of
our
our
Con¬
a
sudden
discovery
abo.ut human nature.
They onlyrecognized the long-standing and
eternal yearnings and
aspirations
of the mind and spirit of man
and
patterned
ernment
a
political form of gov¬
which
they hoped and
believed would allow the individ¬
ual man to realize and attain his
heights, at innate and God-given hopes and
inflationary'pres¬ aspirations without interference
,
Volume 174
Number 5054
,
.
.
The Commercial and Financial Chronicle
~
"
(1373)
by his government. ' Those same
and
aspirations are innately in the hearts and minds of
men
today.
They are in your
instincts
?
■
*
hearts and minds
mine.
-
-
J
-
They
We
Want
;
\
I
in
have
the
the
;•..
greatest
sound,
the
■■'■-
confidence
judgment, of -the
American
issue
an
Socialist
or
government.:
But
;is
The Ameri-
people would not vote for
can
Communist
-
by
Door
people .if
I made clear to them.
1
I.
Socialism
No
Back
.
in
are
outgrown. They are the beacon
lights that lit the pathway of this
nation as it attained its great
heights of human progress and
I achievement.
z
they
as
not outmoded and
are
as
•
form
has
a
of
been
"Socialism and collectivism
do not always have to enter
a
country by the front door, especially if the black door is left
ajar."
said,
.
r
■v
sult
of
work.
lifetime
a
We
>
reward
must
success
f
Our
form
founded
of
it,
to
of
government was
the
principle of
upon
protecting
the single individ¬
ual. in his right to the proceeds of
his productive labor in the form of
even
To
property.
not
—
to
founders
these
secure
take
said,
them
rights
away
something is wanting it, plus the
nists, in discussing the
power
tory taxation of
vote for socialism,
and
the
any
other
for
but they will
government
ownership,
employment,
and
elements
of
socialism
if
It is your job and mine, and that
of every other American who has
a
stake
part
the
in this
to
make
people
of
must not allow
ism
to
come
back door.
this country.
We
creeping collectiv¬
stealthily
in
by the
We must make it clear
to the young
to achieve
country, to do his
this issue clear to
that the opportunity
success
lies
not in less
productive effort
but
in
more
productive effort. We must make
it clear to adults that
government
deficits leading to immense public
h debt, devaluation of the
currency,
In
to take it."
a
recent
the
opinion in the
conviction
of
11
case
ambition, ! live in the land
Commu¬
greatest
reasons for
individual
opportunity
the
that
of the
freedom
this
old
formalities
tion.
danger
permanent
of
all
success
individuals and
these
a
nation.
is what Thomas Jefferson
thought
the
are
It
character
is
kind
of
even
the
"To take from
thought his
share
as
been
as
misappropria¬
a
dangerous
to use
group
an
instrumen¬
tality to do that which it
have
morals
people
a
more
it enables
government
of
of
contrary
to
would
both
law
and conscience for them to do di¬
too
with
one
because it is
industry
own
much,
others
in
who
.
.
has
.
order
4
.
.
to
have
and
the
bor
of
is
his
Bradford
entitled
property
to
B.
Smith
the
and
has
possession
the fruits of
his productive exertions
else you believe that you
.
.
,
have
or
a
not
down
let
is
house
houseless
of
Cincinnati
another,
diligently and
himself, thus by ex¬
Exchange
Allows NASD Members
own shall
be safe from violence when built."
Benjamin Franklin, the
sage
Commission Split
of
Effective
the American Constitutional Con¬
vention, declared:
members
-y
,
"Those who would giVe
liberty to purchase
sential
Monday,
of
the
Exchange .will
up
a
transact
es¬
Oct.
8,
Cincinnati
be
business
all
Stock
permitted
on
the
to
•
or
carelessness,
want
of
cowardice,
spirit, they
or
public
or
are
unequal to the exertions for pre¬
serving it; if they will not fight
for it when it is
directly
thusiasm
can
ties
for
an
individual, they
be induced to lay their liber¬
at the feet even of a
great
man,
or
trust
him
with
made under the
life-giving air of
personal freedom and opportunity.
Productivity of the individual is
the
key to the American high
standard
can
system
of either
a
powers
and
the
thy
to
less unfit for
liberty;
it
may
be for their
good to have had it even for a
short time, they are
unlikely long
to
enjoy it."
•
In the past
only members of the
Exchange could make
exchange, transactions.
profit
a
on
C. H.
of
a
government-owned
or
government-controlled economy.
Fellow Americans:
If we
be¬
have
or
pay
private initiative,
Steffens, President, stated
incentive, and opportunity. It was that this opens the door to greater
not developed under
volume of trading in all issues and
any system
and
though
to
order.
living.
This produc¬
tivity grew and flowered and bore
fruit under the traditional Ameri¬
are
more
of
Exchanges
part of the commission to the Se¬
curities Dealer who originates the
lieve
in
American
ideals; if we
the instincts, the
character,
hardihood, and
be
the
pioneers, let
himself—I
can,
I
am
am
sons
us
a
of
each
are
is another example of the Cincin¬
Stock
Exchange
nati
the
curities Dealers, Inc. membership.
One hundred and seven issues
wor¬
American
declare
for
are
with
life
and
traded
change
free-born Ameri¬
vibrant
extending
friendly hand of cooperation
to the National Association of Se¬
are
also
tional
on
about
the
Cincinnati
half
one
traded
on
the
of
Ex¬
which
large Na¬
Exchanges.
u.,.
Ofl?
INDUSTRY'S. I.
«/>P
K
^
lit
Please write
3=f * £
§y 0 <f
28 § %
Compressed in this
a vast store
varied
Here
one section of our country
of natural wealth—#// the needs 0
f
fc
manufacture!
are
the basic
f
to
on
your letterhead
W. N. Deramus, President,
Kansas
*
City Southern Lines,
City 6, Mo., for
Kansas
§
specific information,
£ I
$//
requirements of the chemical and
light metals
steel industries... the minerals for
the mineral,
agricultural and
plastics.- Here is
a
plentiful supply of water, free
of impurities ...
intelligent, loyal,
...
forest
sources
of
American-born industrial and
■&$&&&
agricultural labor... fast, con¬
venient
transportation to
domestic and foreign markets.
.
In
0*AJMA<«**
fc»***V5*S
short, here is
a frontier that
urgently to those who would
make the most
of America's
rapidly expanding horizons.
calls
?
Cincin¬
little
nati Stock Exchange for members
the temporary safety deserve neither of the National Association of
Se¬
fruits acquired by it."
nor safety."
■ V' liberty
curities Dealers,
Inc., for a com-,
Almost a century ago John StuLet each of us here
mission of not less than
today re60% of
are Mill, the
great English econo¬ dedicate ourselves to the faith of the rates
charged the general pub¬
mist, said:
our
founding fathers. Let us re¬ lic.
"A
people may prefer a free member that the great
progress of
This is in line with the trend
government; but if from indolence, our people and of our
country was of Regional
cause
inflation only result in rob¬ it or
bing them of the capital which duces more than you do. In one
they have accumulated as the re¬ case, the warrant for having some¬
who
work
for
one
produces without his consent be¬
somebody else needs
wants it, or because he pro¬
the
him
right through the government to which enable him to subvert their
take from your neighbor what he institutions—in all these
cases they
you or
him
ample assuring that his
the
free
attacked;
.if they can be deluded
by the
stated the issue very
clearly:
artifices used to cheat them of
it;
"You either believe in a frame¬ if,
by momentary discouragement,
work of law in which your
neigh¬ temporary panic, or a fit of en¬
rectly.
but
build
acquired
observed, but it is
pull
about it:
our
proper
"Let
This
Confisca¬
be legal if the
Lincoln said:
and progress as
as
a
destructive
because
and
is
v*
and
world
.
The
are
—
"Governments
instituted among men."
as
they bear the labor of liberalism."
,
tax
of
failures of fallen
governments, knows or has ever known. I am
things Mr. Justice Jackson, said:
willing to pay the price in brain
is that it tends to
corrupt the
"Corruption," ineptitude, ; infla¬ and brawn to achieve* success. The
age.
We must make it clear that
thinking of the people and to tion, oppressive
taxation, militari¬ right to live this kind of a life
the fundamental qualities of in¬
raise a new generation of men and
zation,
injustice,
and
loss
of is a part of my birthright, achieved
dustry, thrift, intelligence, ambi¬ women who have not learned the
leadership capable of intellectual at great sacrifice and handed down
tion, character, self-reliance, and fundamental
importance of such initiative in domestic or
with great
courage by my pioneer
foreign
independence pay off in terms of
qualities as industry, energy, ini¬ affairs are allies on which the
forefathers; and by all that is holy,
success both for the individual and
tiative, ambition, intelligence, Communists count to bring oppor¬ I propose to pass that
the
birthright
nation.; Our whole
history training, economy,
down to my sons. I
thrift, and tunity knocking at their door."
proves it.
V.
other basic qualities essential to
In 1864 Abraham
just
other
.
not
Success
is
the
hope
youth, and the proceeds of success
are the only true security for old
Socialist Party for President, said:
"The American people will never
guaranteed
f
—
thing is working to produce it.1 In
the other, the warrant for having
not exercised equal
industry
minority to re¬ skill is to violate
arbitrarily
distribute; their wealth
among first
principle of association,
other citizens
may be effective as guaranty to
every one of a
Many years ago Norman Thom¬ an instrument of practical
politics, exercise of his industry, and
as, the perennial candidate of the and it
vote
,
productive
and
death.
may
v;
of
encourage
29
^^?il
*«*#»* I
CHALK
.S5?9S5B
,mm LIGNITE
..
-r
.
'
»
SILICA
--
Vadium
>*
rft {.•*•'.LJ&fVfc w1&Svn4»Uwii>*'1l y
"WWA
f
Jtu'
1*11 iWi'*
ii.
The Commercial and Financial Chronicle
30
.
..
(1374)
"Such
High Taxes Seen As Inflation Spur
35 q u ipment
Instituteat
the Edgewater
Beach
in
Hotel,
Chicago on
1
Oct. 3.
"Taxes
fbe
can
levied
on
but
products,
the
consumers
pay
in
the taxes
higher
prices," Mr.
Collyer stated.
"They
can
be
John
L.
Collyer
pay
the incomes of cor¬
t>e levied on
porations and other business es¬
tablishments, but it can be shown
that
here
consumers
pay
them."
Continuing, Mr. Collyer added:
"There has existed in the United
States
tween
-the
son
the
cost
"
direct
a
level
of
this
for
relationship
taxation
and
living.
be
can
The
rea¬
established
by a study of the effects of taxes
prices, particularly during pe¬
riods of product shortages.
-on
it
"Because of this relationship,
is
imperative that, during the de-
Tense
period,
we
do those things
which taxes
are
different, the means
may
be different,
collection
the patient
the cure. In
fact, it begins to look as if he
is not only unwilling, he is un¬
able
indi¬
they all tend
resting places
their final
to make
not be stopped because
dollar,
the
attract
Our Money System
Has an Inflation
consumers,
more
of
will
be
million
five
employable
mally
whom
only
the
nor¬
in
age
groups.
are likely to face
supporting not only a
larger number, but also a much
larger proportion of the popula¬
tion than in any previous period
Those
at work
the task of
of our
history.
"If,, at the
still
tion
a
man
the
to
is
it
make
productivity per
expenditures, are additional props
even
consequences
the
Under
thi
into
on
it is not already.
opposition from
plansj functions, and resources" to
forth. Among
as is true here, credit is the chief
the most potent of all the devices
inflationary source.
Then when
it is proposed to check inflation, which the government will use
are bound to be money and credit.
millions of debtors immediately
in
of
terms
how
they are
Weakness of Money Management
going to pay off their debts. As
Now it appears that we have
a rule,
debtor classes in historyhave been cheap money advocates, reached the stage where ..we are
and they are today.
They want using the money device for pur
their debts in cheap dol- economic-, ills like pome people
use
Stimulants for their physical
Then, too, we must not for¬
ills. Greatest danger is that the
get that Uncle Sam himself isof the
the world's largest debtor.
It is underlying real, causes
trouble will not be corrected, and
seriously
questionable
whether
the Federal debt can be managed, we shall continue the doping until
let alone paid off, with anything it is too: Tate to stop taking it.
to
pay
Joins J. M. Batchelder
(Special to The Financial Chronicle)
BOSTON, Mass.—Lester A. King
has become affiliated with Joseph
Certainly
dollars.
we
know that our
perience in recent
Destructive
other
Securities
able
Development Bonds
and
built
Joins First California
y y
must
Railroad
SAN
sell
Bank and Insurance Company
and
Stocks
•
Dealer
We
300
Pittsburgh
Chicago
to
level
^Special to The Financial Chronicle)*
offices
SAN FRANCISCO,
Calif.—John
C.
Hoyt, Walter L. Meili, Joseph
C. Michels, and John R. Reardon
have joined the staff of Paul C.
Rudolph & Company, 127 Mont¬
gomery Street.
T. G. Paulson
to
arrived
at
un¬
the
point where the vicious spiral can¬
Opens
people
sit
RICHMOND, Calif.—T. G. Paul¬
has
opened offices at 1857
son
Carlson
Boulevard
to
engage
the securities business.
—
DISTRIBUTORS
DEALERS
PUBLIC UTILITY, RAILROAD
such
insurance,
mortgage
,
-
'
INDUSTRIAL and MUNICIPAL
SECURITIES
in office
Sam
committed
to
Remember
fall.
statute
laws
as
books
by
bank
deposit
security,
insurance,
and
social
which
commit
support
..the
we
right
FHA
other
Uncle
against inflation, including by no
the least—a banking law
with
very
Langley & Co.
Members New York Stock Exchange
115 Broadway
New York 6, N. Y.
economy
means
which
W. C.
Tittle modifica¬
Tel.
,
(Special to The Financial Chronicle)
the economy at
from which it might
to
on
measures
Private Wires to all
The
f\
5* P&ul Rudolph Adds
support
our
now
San Francisco
Cleveland
what
& Tal¬
bot and William R. Staats Co.
government
already
are
law
have
Philadelphia
now
the
Company,
Montgomery Street. He was
sit idly by anyway.
threaten
Boston
the
undesir¬
make
stay in office or get
any
New York
have
has" joined
formerly with Hannaford
results that smaller
idly by while all that takes place
—and no administration wanting
to
Distributor
let
not
would
•
that
call- depression.
will
Foreign Dollar Bonds
all such
conditions
able
we
Underwriter
we
Dickson
staff of First California
not forget that
business bankruptcy, unem¬
ployment,
•
increased
applications produced before,
til
FRANCISCO, Calif.—Rus¬
M.
dation, defaulted debts, bank fail¬
ures,
Canadian Bonds
same
be
to
defla¬
tion
is every bit as
serious as
inflation.
Deflation means liqui¬
Bonds and Stocks
r
get the
had
•
(Special to The Financial Chronicle)
years
UNDERWRITERS
tion.
We
•
the
Yet
by
up
has
Whiting, Weeks & Stubbs.
ing devices likely to be used are
the same ones that caused infla¬
Revenue Bonds
Public Utility
destructive.
inflation are
bound to generate forces of reac¬
tion unless we take steps to check
the fall. Unfortunately, the check-,
International Bank for Reconstruction
State, Municipal and
words,
a
and
forces
the
Ill
of the
Mr. King
was
previously
with
Merrill
Lynch, Pierce, Fenner & Beane
bears out
analogy. The dose of stimula¬
tion
we have our¬
predicament where
-deflation would be both intoler¬
in
selves
ex¬
1 Inc.,
Co.,
Boston Stock Exchange.
.
Deflation Is Both Intolerable and
In
Batchelder
M.
Devonshire Street, members
lars.
except cheap
y
;
,
Employment Act of
46, the government definitely
arid unequivocally assumed re¬
a/re
generally not realizex^uhUMi is
too late to stop the process.
In
think
United States Government
deflation
be used.
millions passed so as to clear the way for
action
against
the
anticipated
think they are dong
postwar recession. It stated "the
right well under it.
After
inflationary seeds have continuing policy and responsi¬
been sown, some time elapses be¬ bility of the Federal Government
—to coordinate and utilize all its
fore they sprout.
Vast debts are
graded.
coin
gold
a
was
bias, under the money system now
in
effect
there is definitely an
sponsibility for managing the na¬
tion's economy to the end that
worker over the next decade must some respects it is like dope. The
there should be "maximum em¬
increase by 30% or more, unless economy gets a boost out of it—
everybody feels goods.
Any ef¬ ployment, production, and pur¬
our standard of living is to be de¬
power." The
law was
forts to shut it off must run head- chasing
national security,
the
under
there
tion would
the
to
insidious
an
disastrous
Its
of
any
still potent.
are
Inflation
machine, and maintain armed
capable of protecting our
dollar
to
forces
time, we must cheaper
produc¬
defense
forces
Whereas
standard
permit fhe conversion inflation
bias
which
stems
no
value taken out of it. No one now of almost any asset into liquidity. more from the
system itself than
public, works
programs, from the will of those who domi¬
living will ever see the day when Great
the dollar will again buy what it more foreign aid, restricted out¬ nate the political force behind it.
did in 1940.
Today we have the put, and supported prices, to say The value of money may easily
cheapest dollar in our history. nothing of even larger defense become a plaything of politics, if
return
The
same
vast
Investment Bonds and Stocks
•
as¬
economy.
achieve the goal set
Industrial
the dosages would
suredly be unpopular. Therein lies
the
fundamental
weakness
of
needed
contracted in the meantime when,
and
take it.
stop
and return.
of people who
v
to
To
Business, in order to in the consumer's pocketbook.
monetary management—and it al¬
"The amount of private capital
capital from risk
ways will be in a democratic na¬
investors, must on the average needed is great. American indus¬ tion.
Strictly speaking,
proper
earn
the price of capital
after try will have to invest, during the and effective money management,
taxes.
This means that prices of 1950's, $200
billion, or possibly as generally conceived and de¬
goods and services must be high more in 10 years, almost as many fended, is a two-way process. It
tom at all times.
enough, regardless of business dollars, though of lower-buying must be used to check as well
"Should taxation reach the point
income tax rates, to make it pos¬ power, as were invested in the as to accelerate, but checking pro¬
where private savings are inade¬
sible for business generally to pay last 30 years.
vokes
such
popular
opposition
quate to support proper upkeep
"With little apparent limit on from so
capital its price after taxes. High
many sources that even
and
expansion
of. the
private
the expanding scope and content wise and honest central banking
corporate taxes then reflect them¬
means of production, the alterna¬
selves
in
reasonable
degree in of government functions, we may authority
cannot
function
effi¬
tives are either a declining stand¬
prices
paid
by consumers for ask whether such great capital ciently against the political force
ard of living as productive facili¬
needs can be supplied from pri¬ that interferes.
The usual conse¬
goods and services.
Nearly all
ties
wear
out
and
population
taxes, in effect, become personal vate means."
quence is that regulatory decisions
increases, or the take-over of in¬
rarely come at the right time. This
dustry by government in the futile
condition
of zigging when they
belief that bureaucracy can do
Continued from page 17
should
be
/jagging generates a
with industry what bureaucracy,
degree of instability itself that
itself, has prevented private own¬
tends
to
permeate
the
entire
ership from doing.
of
be¬
of
on
viduals different, but
capital has a price based
expectations of risk
investors'
"By 1960, it is estimated that the
them
through
Iiigher rates and fees.
They can
even
necessary
but
.services,
"The bases
and the relative burdens on
on
or
is unwilling to take
of
United States will have 20 million
consumers
consumption
-
levied may be
greatly improved meth¬
production.
"Risk
on
levied
on
ods of
to maintain the integrity
constantly seeking
the utmost economy in the way de¬
I*. Collyer, President of the B. F.
fense funds are spent and vigor¬
Goodrich
Co..
told the
annual
ously insisting that non-defense
conference of
expenditures be cut to rock bot¬
the
Farm
taxation may cause
inflation, John
Excessive
rather than retard
effective
more
either
incomes.
tools and
levied,
Institute, whatever kind of taxes are
consumer pays them in higher prices.
Farm Equipment
with
workman
Company, tells
President of B. F. Goodrich
John L. Collyer,
taxes
increase in individual
an
productivity can be attained only
by providing every American
Thursday, October 11, 1951
BArclay 7-8800
in
Volume 174
Number 5054
...
The Commercial and Financial Chronicle
(1375)
31
Our Federal Reserve
By WM. McC. MARTIN, JR.*
I appreciate very much the op¬
portunity to participate in this
convention of the American Bank¬
ers
Association.
This is particu¬
larly '
Stating time has
Governors
o
not
f
Reserve
Sys¬
tem,
I
we
tween
feel
that
to
reevaluate,
perfect, the System is
should be mutual
Federal
the
come
tiveness of the Federal Reserve
of
Board
the
special
a
a
now
reassess,
and redetermine worth and effec¬
the main bulwark of private hanking, and there
co
operation,
more
than
upon
no
longer be permitted to rock
country back and forth every
our
another.
few years.
system.
Through their boards
all
,
daily operations, which, like
proverbial pebbles tossed into
the pool, set in motion forces with
far-reaching repercussions. It was
this realization that led originally
to the creation of the Federal Re¬
The
health
of
each
nearly 39 years old and the members.
has come, it seems to me, member affects the whole and it
when we must reevaluate, reassess is only through the work, and the
and redetermine its worth and ef¬ conviction, and the determination
seem
never
System.
of
Out
the
increasingly
un¬
gyrations,
supply of money, the need for a
central
bank
has been
found to be essential to our eco¬
strong
nomic, stability.
The
banks,
the
people and the government real¬
rather
of
of
our
♦Remarks
the
77th
American
of
crises, caused
irregularities in the
money supply, must
Chairman
Annual
Bankers
Martin
Convention
Association,
111., Oct. 2, 1951.
whole
before
of
the
important than
lender
and
it
alike.
This
has
con¬
founded the cynics and those who
self-regulation.
It will
real courage,
vision,
at
sneer
require
now
Central
Bank
to
toughness,
under¬
tinue
with commer¬
this
.
.
voices
would lead
us
down roads
alien to. the concepts of our
If
institutions
our
FIG Banks Place Debs.
found¬
not
do
A successful
well, let us revamp them.
On the other hand, if, given the
imperfections of all things hu¬
us
they
man,
are
of
mediate
Sept.
the best servants of
good which we can
offering of
debentures
Credit
18
Banks
issue
an
Federal
of
Inter¬
mac^
was
by Macdonald
G. New-
comb, New York fiscal agent for
they can adapt the banks. The financing consisted
themselves to the changing needs of $77,650,000 of 2.20%
consoli¬
debentures
dated
of the people they serve, let us dated
Oct.
1,
see to it that they are preserved.
1951, and due July 1, 1952. The
I call upon you as bankers, and as issue was placed at par.
leaders
in your
The
community, to
proceeds,
together
with
lies
in the creation of regional with the responsibility for formu¬
ever be
conscious of the measure $34,080,000 cash in treasury, were
banks, knit together by a national lating ^national credit, policies and of freedom, we have enjoyed in used
to
retire
$111,730,000
of
governing body in Washington supervising their execution.
every sphere of our life, to be con¬ debentures maturing Oct. 1, 1951
by
flow
the
in the United has life.; No dictatorial powers
the re¬ were acorded it when it was set
quirements of a free people with up. No dictatorial powers should
a minimum
of government inter¬ it usurp.
Within the framwork
ference.
The genius of the fram- carefully
outlined by law; the
Federal Reserve Board is charged
ers
of the Federal Reserve Act
Central
ized that panics and
periodic
that
banking
States has been adapted to
vy
the Franken¬
stein mechanics of an uncontrolled
wieldy
members
a
than
in
ritarian powers.
serve
is
Chicago,
as
a
the
establishment
central institution with autho¬
Each Federal Re¬
Bank and each branch office
The
as
part of
a
nation-wide
System is
the
commop
fashion,
cerned
prive
our
tral
private banking system. With¬
a
strong and independent Cen¬
Bank, private
banking must
rights
with
us
any
attempt to
de¬
($1,000,000 additional due
in
which
preserving
we
changes
we
those
make, let
retired
were
maturity),
the
on
prior to
y
As of the close of business Oct.
obtained.
have
date
latter
of this freedom and to be
Whatever
riot
if
and
questionably the main bulwark of vociferous
regional and local institution out
well
Federal Reserve
certainly not perfect but it is un¬
;
strange
serve
the
more
the
ers.
of
initiative
the
lose
stand and cooperate
time
;v
In this
and stamina to con¬
laudatory fight against
inflation,/1 am confident that the
cial
banks, and for commercial
bankers can meet the test, pro¬
banks to understand and support
vided they are ever alert to the
the Central Bank.
famous admonition, ".
eternal
These
are
challenging
times.
vigilance is the price of liberty."
These
are
times
when
for
now
.
them.
upon
they have organized the
managerial resources of the bank¬
posseses.
the
fectiveness.-
placed
program,
Too few bankers
to appreciate this fact. It was
now
our
serve
mands
ing community in an educational
program of benefit to borrower
of inevitably
directors, the banks are in a posi¬
tion to represent the views and
interests of the particular region
the bank¬
in which they are so active¬
participating, one of the de¬
ly
to meet severe tests.
The Central Bank was
designed to minimize these con¬
painfully
vulsions,
create
more
stable to which they belong and, at the
aware
today
values, and thus make possible the same time, they are the adminis¬
W. McC. Martin, Jr.
of the
of
nation-wide
mani¬
banking
smooth functioning of monetary trators
fold and over¬
machinery so necessary to pro¬ and credit policies.
-Instead of functioning from the
powering
complexities
of
our mote the growth of the country
modern life.
As bankers, dealing and to improve standards of liv¬ center' outward,
we
function
in media of exchange, we under¬ ing.
This was the purpose and through an interdependence of all
our
stand more clearly than ever be¬ this is the ideal.
parts. ,The life blood of the
fore the ramifications inherent in
Our
present Central Bank is Federal Reserve System is in its
are
democracy.
gram
before, be¬
ever
the commercial banks and the Central Bank. Warns banks will be called
de¬
sibility to one
We
our
ready meeting successfully, in the
Voluntary Credit Restraint Pro¬
o n,
real respon¬
security of
of America will be called upon
to meet severe tests. They are al¬
ers
System, Chairman Martin points out, though
understanding and
have
pendence
so valiantly
self-government
our
In the next few years
as
o f
cause,
Chairman
maintain
to
and the
be-
so,
have, struggled
who
Chairman, Board of Governors of the Federal Reserve System
1, 1951, the total
us
amount of de¬
bentures
outstanding amounted to
betray the foresight of those $753,375,000.
'toc/tt/v/y.;.
50
million
of shoes
pairs
year—more
a
than
10% of all the shoes produced in the United
V
*
States—for sale to
-.Vy
y
4
Hi,,'
people
34,000
men,
mill,
for
and
a
than 23
needed
more
14
sales
rubber plant, cotton
other
to
and
manufacture
shoe
factories,
shoe
53
in
warehouses
and
i
'
branches, 8 tanneries,
and children.
women,
,•
.
supply plants
provide
materials
effect
to
the
Com¬
pany's world-wide distribution.
yyeamv...
in
worth
dollars
million
200
to
all the 48 states, in
of
and
large
retailers,
30,000
shoes
annually
small,
located
U. S. territories, and in
countries.
foreign
(yiimct/...
by
than
more
tions— with
holding
of
as
no
much
Company
for
12,000 individuals and institu¬
one
person
or
organization
3% of the 3,400,000 shares
as
issued
stock
stockholders
its
dividend
payments
an
for 38
ST. LOUIS —Roberts,
—
and maintaining
unbroken
record
of
years.
Johnson & Rand, Peters,
Friedman-Shelby, Continental Shoemakers, Pen¬
nant Shoe Co., Accent Shoe Co., Vitality Shoe
Co., Queen .Quality
Shoe
Co.,
Shoe Co., Dorothy Dodd
Sjfioe Co., Conformal
Winthrop
Footwear Co.
.
MANCHESTER,
N.
Great Northern Shoe
II. —Sundial
Shoe
Co.,
Co., Hampshire Shoe Co.
.
32
The Commercial and Financial Chronicle
(1376)
Continued from
first
world
production of grain and live¬
the
page
stock.
challenge to us to do violent reactions which in turn
the funda¬ produce a pattern of which men of
principles of life of free all lives do live again until the
are
mental
WILLIAM
ABA Holds 77th
:
,
GLADNEY
B,
William
B.
W. Harold Brenton,
Cal.
President
of The State Bank of Des Moines,
elected Vice-President,
and William B Gladney, President
Iowa,
was
Baton
La.,
Rouge,
City
Monroe, La., and of Wake Forest
born
who was elect¬
the American
Bankers Association at the closing
Convention,
President of The First National
session of the recent
Bank of Roanoke,
Mr. Cocke was ad¬
vanced from the Vice-Presidency
E
of the Association.
Roartoke.
graduated from the Uni¬
Virginia in 1908 and
subsequently attended the Univer¬
sity Law School. He was admitted
to the Virginia bar in 1910 and
later became a senior partner in
the law firm of Cocke, Hazlegrove
&
Shackelford.
During
World
1919
was
he
1929
In
Iowa.
then
1.931
has
<
Vice-
1934, and
a
Director.
later became
Brenton
active
Minneapolis banking and until
1941
Vice-President
was
of the
Treasurer
corporation.
dent
Northwest Ban-
as
re¬
active Presi¬
an
Director
and
and
Subsequently he
turned to Iowa
in the
dur¬
summer seasons
ing his school days and worked in
of
11
Iowa
tional Bank, Monroe, La.,
tinued with
that title
and
con¬
in the
suc¬
ceeding institution when the Citi¬
National was absorbed by the
zens
Ouachita National
he
Bank.
In
Vice-President
became
1926
the
of
In 1938 he was elect¬
ed Executive Vice-President.of the
Fidelity Bank and Trust Company
at
Baton Rouge,
was
La., and in 1944
elected President of the bank
hands
our
must
cherish
pass
and
them
nur¬
to
on
and more
that free men and their
stronger
even
stable,
so
shall
government
not
from
pass
the earth.
"In all these tasks the American
Association
definite
place
alone
the field
in
in
center
our
dens
of
munity
In
must
we
government.
stems
from
banking
will
very
and
"You
•
to
come
;
naught,
have committed to
and in
elected the first Depart¬
Aeronautics;
to
periods
doubt, and it
a
tell
bankers
you
that you can
help in that because
important parts of our
of the
one
country's
campaign is, to control
credit, and.is to sell
savings bonds.as possible
unnecessary
as
many
with the idea of stopping and of
arresting inflation." -
NEW
DIVISION
The
PRESIDENTS
following
Presidents
of
the
of
the
Four
Buesching, President
Lincoln
Co.,
National
Fort
Bank
Bank
Wayne,
elected President
tional
Asso¬
;
the
Trust
as
Divisions
American, Bankers
Charles H.
of
elected
were
ciation:
&
Indiana,
of .the
Na¬
Division.
Guy Sturgeon, President of the
Bank
of
Commerce,
Wyoming,
Sheridan,
elected
was
President
the State Bank Division of the
of
American Bankers Association.
Joseph
the
us
W."
White,
Vice-Presi¬
dent of the Mercantile Trust Co.,
of leadership; we S,t.
Louis, Mo., was elected Presi¬
have accepted the challenge with
dent of the Trust Division.
responsibility
the
that you will stand
assurance
back
of us,
as
have stood in
you
the past.
By your presence here
have instilled in us the deter¬
whose name is now the Fidelity
County
you
National Bank of Baton Rouge,
State Bank, Adel; Wright County
mination that we must measure up
State Bank, Clarion; Brenton State
to the tasks before us.
The New President's
Bank, Dallas Center; The State
Acceptance Address
"Again, let me thank you forBank of Des Moines, Beaverdale,
Upon his election to the Presi¬ this honor; and I pledge to you
Des Moines; Eagle Grove National
that I will use whatever talents
dency of the ABA, C. Francis
Bank,
Eagle Grove; Palo Alto
Cocke made the following remarks I may command to carry forward
County State Bank, Emmetsburg;
the work of the American Bank¬
to the Convention:
Poweshiek County National Bank,
ers Association.""In accepting this emblem
of
Grin'nell; Warren County Bank &
Trust" Co.,
Indianola; Jefferson office, I do so with mixed emo¬
Comptroller of Currency
State Bank, Jefferson; First Na¬ tions. First, it will always remind
Addresses Convention
tional Bank, Perry; and Benton me of the many obligations I owe
-•Among the prominent guests at
County Bank & Trust Co., Vinton. to the ABA; and, second, it will
the Convention, were Secretary of
He was elected President of the always bring back many happy
Banks":
"Brenton
of those
one
truism
a
govern¬
intelligent guidance in our com¬
munities; without stable govern¬
ment,
is
was
strong
a
•
com¬
The
national
our
ferment arises.
a
in
are
of ferment without
cities and
our
community life and
strength of
ment
In
period
"We
not
populous
every
next
very
must not shirk the bur¬
we
of
a
banking.
country
part.
our
towns
has
leadership,
of
hamlet and
every
Bastrop Bank and Trust Company,
Bastrop, La.
in
the next generation unsullied and
"made
play
Returning from military service
World War I, he became As¬
in
sistant Cashier of the Citizens Na¬
to
been
Gladney began his banking
of
we
These inalienable
must
we
We
Bankers
three different Louisiana banks.
in
National Bank in Des Moines, was
from
a
1918.;
Mr.
He
degree
elected
was
is
Gladney
career
College where
A.B.
President of the Iowa-Des Moines
in
Second Lieutenant,
was a
Service
his
Dallas Center.
at
ness
Mr.
of
War I he
newly elect¬
the ABA, was
agriculture in 1920. In the same
year he entered the banking busi¬
since
was
Air
received
which
which,
of
treasure
are
ture.
College, Wake Forest, N. C., Class
of
Dallas Center,
President
Mr. Cocke is a native of
versity
in
attended Iowa State
he
xchange
Roanoke, Va.
He
BRENTON
ed Vice-President of
of
President
''
•
HAROLD
on
W.
W. Harold Brenton,
FRANCIS COCKE
C. Francis Cocke,
is
Mr.
Vice-President
President
ed
Louisiana.
Rouge,
Baton
t
Convention in New York
Sept. 27, 1950.
Treasurer.
C.
Rouge,
rights
Fidelity National Bank
Baton
native of
Natchez, Miss. He is a graduate
of Ouachita Parish High School,
versary
of
elected
was
elected Vice-President
was
of the ABA at its Diamond Anni¬
Fidelity National Bank
the
of
dent of the
of
Cocke
both
have inherited.
the new
is Presi¬
form
democratic
our
government,
Gladney,
Treasurer of the ABA,
Annual Convention
and
men
Treasurer
*
a
utmost to carry on
our
'
.
Thursday, October 11, 1951
...
Dallas
Joseph Earl Perry, President of
Newton
Mass.,
the
Sayings Bank, Newton,
'elected President of
was
Savings
sion.
"
-
and
Mortgage
Divi¬
1"
Albert L. Muench,
Secretary of
•
ment Commander of the American
Legion in Virgina.
Cocke
Mr.
Vice-
elected
was
President and Director of The First
National Exchange Bank of Roan¬
in
Presidency
in
1938.
number
of
offices
held
a
1927
and
elevated
oke
the
was
to
He has
the
in
Virginia Bankers Association, in¬
cluding the Presidency in 1948-49.
He
was
ginia
;
Vice-Chairman of the Vir¬
Finance
War
Committee
Iowa Bankers Association in 1946/
from 1943 to 1948.
ciation,
Mr.
Cocke
served
member of the Committee
as
ciation
term
eral Legislation from 1941 to 1950
and
as
tive
Chairman of that Commit¬
tee from 1946 to 1950.
He
tive
Council from
was
1946
He
the
of.
Iowa
and
is
and
Mr.
acres
is
one
the
Treasury
administration
into
of
officers
elected
launched
a
your
will
complex
be
world,
and we shall find our own country
fairly teeming with problems. The
a
almost
of
daily
happenings
great
moment
strength of each of
us
are
that
of
the
is taxed to
owns
cope
with them.
The frightening
remarks
today's
and
troller
of
of
It was
1951,
tion,
the
and
Eaton Products Serve
basic industry—leading manufacturers of automobiles,
trucks, tractors, airplanes, Diesel engines, domestic appliances, machine
tools, farm machinery, construction equipment. Every, major railroad, public
materials. To
which
of
makes, and
•
O'Brien
Cold
Drawn
Wire
•
•
the
quality of products
dependability
as
•
■
,
Preston Delano
limited
not
are
a
source
all
are
and the
of
the
of
defalcations.
tell
•
bank
Stampings
don't
primary
management
laws
ever
Leaf and Coil Springs
•
with
examiners is
•
Snap Rings
a
very
we
attempt
are
can
find
to
to
only
mont, Virginia,
Wyoming.
•
VAI
R
•
•
SAGINAW
KENOSHA
•
bank
one
-in,'
is
a
COMPANY
and
function
are
ciation
obeyed.
wher¬
it, seek out and
•
BATTLE
CREEK
LONDON, ONTARIO
LAWT0N
and
you
on
the
adopted:
Asso-,:
were
American
Bankers
pledges its support to the
non-partisan program for
increasing
the
Nation's
armed
strength. This country must be
great
serve
strengthening
improving our
of
Oct. 3, the follow¬
on
dishonesty strong to promote
are
Session
Second
ing resolutions
that
see
working with
We
the
"The
course,
punish
At
Convention,
and pre¬
civilization, a
peace
democratic
a
civilization
freedom
which
and
is
devoted
to
opportunity for the
individual
man.
be
to
relating to bank examination, in¬
cluding those of the detecting of
with firmness
fraud, but I think
This Nation must
vocation.
a
10, OHIO
Washington,
The ABA has members in every;
the Union and in Alaska,
to
ex¬
wherever it exists.
"We
General Offices: CLEVELAND
DETROIT
-
mem-,
and
state in
appraise
generally
do, of
we
need
•
techniques,
give
you can
us
our
"To
misfortune,
we
of this
generation, to be born in a great
period of unrest and of difficulty.
Historically, it
that
every
into
some
ready
so
seems
often
sort
of
to
be true
society
ferment
seek
and
this objective
patience, with
humility and without giving
big help.
"It is
MASSILLON
a
Association;
Michigan, Montana, Nevada,
Mexico, N o r t h Carolina,
ana,
New
other
that in bank
group
aminations the
Motor Truck Axles
•
I
this
However,
ANUFACTURING
•
District of
bank is
every
Bermuda, Brazil, Canada, Cuba,:
officers
and
personnel in their
France, Great Britain, Hawaii,
duties, by also asking for enforced India, Japan,
Mexico, Philippine
vacations, by adequate surety bond Islands,
Puerto Rico,
Salvador,coverage."
'
and the Virgin Islands.
Mr. Delano said, "There appears
Resolutions Adopted
to be an increase in the number
•
Spring Lock Washers
also do
crosschecked
Tappets
•
can
by ingeniously seeing
that its officers and its personnel
our
MARSHALL
•
-
the ABA
year,
States.
methods all the time in all matters
CLEVELAND
the
North Dakota, Oregon, Utah, Ver¬
job
good
Dynamatic Drives, Brakes, and Dynamometers
.
of
Houston, '
nonmember. The states with 100%
big banks which contain a force
purpose," Mr. Delano said.
this matter.
Plants:
Bank,
'
states
eight states,
supervis¬
"A small bank
'
v.,
United
21
ber
"Internal audits
to
of
Free Valves
•
Valve Seat Inserts
Heater-Defroster Units
•
to
Poppet Valves
•
Vice-President
99% of the banking resources
Columbia,
bankers
assets,
Rotor Pumps
is
National
,
the
In
tutions.
the
•
Hydraulic Valve Lifters
Iron Castings
testimonial
;
PRODUCTS—Sodium Cooled Valves
Permanent Mold Gray
•
a
:
Engine Parts
Eaton products. '
some way uses
this company's
to
supply.
EATON
Jet
them is in itself
serve
Eaton
in
system
companies which demand the finest parts, equipment, and
are
of
per¬
work
customers which Eaton Manufacturing Company is privileged to serve includes the best-known and most respected names in
These
highest
\
membership
are
Arizona,
Ar-;
together to insure accurate kansas, California. Delaware, Flor¬
internal audits in banking insti¬
ida, Georgia, Idaho, Iowa, Louisi¬
a
y^pHE LIST of
utility, and communications
the
of
members
centage in its 76-year history. Mr.-
of
for that
every
banks
were
ing authorities
Wide Range of Industries
practically
of the
States
Association, the
over
a
urged
.
98.4%
United
foreign countries, an aggregate
16,693 members. In addition to
being 98.4% o£ tbe nation's banks
by number, this figure represents
Conven¬
that
reported by T. J. O'Brien,
Chairman of the ABA's Organiza¬
tion Committee, that on Aug. 31,
part of the
ABA
Section.
Membership Continues to Rise
in
Bank
as
-
was
of
an¬
Na¬
Division
City;
increased its membership by 137,
bringing the total to 14,332 banks,
2,198 branches, and 163 members
meeting
in this
York
During the past
talk
the
Bankers As-
elected President of the State As¬
Texas.
the
informal
New
sociation
Second
Currency. Mr.
Delano, in an
before the
State
,
Preston
tional
country.and throughout the
-are
Snyder,
published
issue,
implications of the conditions both
of Iowa farm land, used in
W.
sociation,
Delano/Comp¬
nual
thousand
John
elsewhere in
newly
and
President
several
ser¬
whose
such
Brothers, Inc., which
operates
of
year
vice to the ABA under the inspir¬
"The
currently
Commerce
Brenton
Brenton
elected to the As¬
sociation's Executive Council.
for
my
as
member of the Execu¬
a
Council.
Mr.
1950.
to
terms
two
Marine Commission.;
Chairman of the Federal Legisla¬
In 1949 he
as
member
also
was
served
Vice-President
a
Fed¬
on
he
of
ing leadership of Mr. Shelton.
In the American Bankers Asso¬
*
In the American Bankers Asso¬
recollections
the New York
this
cherish
well
for
as
we
result
goes
on
and
on
an
its
end
the
Nation
pro¬
must
economic
strength as
build its military strength,
face a long struggle, the
of
which
depends
as
fully
orderly and just economy
the
force
of
arms.
as
Economic
Volume 174
Number 5054
.The Commercial and Financial Chronicle
.
(1377)
Heads of ABA Divisions and State Association Section
ican tradition for voluntary
■r
5
M
5
—
m
Bf
B
Wt'j
'¥ '***?
IB
HHHBBHHIH
5
lKW
r
4
mk
ill
iSfc..'
y
.
)'
Bmm
if
B
:
influence has been exerted in
:lm
IBBi
mmmrn
~Jk
d/1'
Charles H.
weakness
security
cies
in
as
Bueschmg
could
truly
Guy
Sturgeon
undermine
as
our
could deficien-
■ML™
Joseph W. White
Joseph Earl
Administration, for Congress, and
all
for
the
"While
arms.
*
been
economic
strength is
spending
Albert
Perry
L.
credit^ieeds Sparge ^nd
Muench
has
effects of such heavy taxation
"To James E. Shelton,
small
his
conforming to the principles of
the credit restraint program.
"Another form of restraint of
on
are
trying to
time, for we
do
now
.
eral
and individuals.
"Oversnendine
vpptirmc
at
r>n™
all
in
fdends
cere
rnatprii^
Government other
national defense
than
,
Hi
nf
iho
mq
fr0m $2-5 billion ^ 1930 and $7
billion in 1940 to $25 billion in
1951. The budget estimates for 1952
and preliminary figures for 1953
pr-nnnmin
fohrin
thp
K„iiac
bureaurratif controls
in
works injustice to millions of our
and impairs the freedoms
people
wePari seeking'
to
defend.
but
partly
for
non-
exnress
oSr sin-
appreciation...
Next Coiivention to Be Held
m Atlantic City
Before adjournment
nounced by c
president
of
the
Association's
year
it
was an-
Francis Cocke,
ABA
Convention
the
next
will be held in Atlantic City
The
no reduction. Even after full ing has been through bank of is- eommend the emphatic statement institutional department. Mr.
m ,tbe buy ?u,e P°thcies'. W.e .commend steps b the Secretary of the Treasury strong was formerly with
?llowance foJ
'dei^^pendftures
of
^"nal Sretontftlw^n'tSf'T
ovlrloadlt "S °Perati0nS " We must be f0und for reduci"S such and freedom
extravagance.
.
The
only realistic corrective is
"We approve and commend the
restraint
in
public and private effort to balance the Federal budgspending and this is a job for the et through the passage of three
that the value of the dollar must
~
FedlralgRe-
of the
recognized
their
Jo- Wallace Bouden
the'dayThenloM
serve System should be preserved.
"The banks of this country have
,
till
m0re
direct
and
can
ef-
.IT^ZlZTr "ZT"
ORLEANS, La.
^,N?,
and have taken leadership in in-
-
.
.
link that
helps bind together the Americas
from the great
...
that stretches
ports of the United States to
the friendly
,,,
fer-;:
nations of Middle America.
•;
fiSBp
''
■"'•••
■"
Each
■•
tons
thousands of passengers
year
of cargo cross
the
sea
.
.
southbound
go
more
has been
an
.
.
thousands of
coffee, abaca, bananas, sugar
refrigerators, automobiles, cosmetics,
electrical equipment
For
.
between the Americas. From
the Caribbean countries come
.
.
.
than half
.
a
century, the Great
White Fleet
integral part of this Inter-American commerce.
Today, the gleaming white ships,
and the extensive
all combine to
the dependable service,
facilities at tropical and domestic ports
strengthen this tie that binds the
Americas.
GREAT WHITE FLEET
UNITED
'0MM&
BRITISH HONDURAS
•
COLOMBIA
HONDURAS
•
•
COSTARICA
JAMAICA, B.W.I.
General Offices:
mm
raipr
f
I
CUBA
•
•
DOMINICAN REPUBLIC
NICARAGUA
•
i
p ^
7
*
®..
0. Grevemberg has joined the
fcctive part in the stabilization of staff of Wallace Bouden & Co.»
money.
California Company Building.
responsibility
TO SOME, it's just But to many others it's asecuring a
ship to its wharf. a hawser—the means of
symbolic
^■msm
ArmNew
York Hanseatic Corp.
A TIE THAT BINDS
new
that
hands of non-bank investors we
Van Alstyne, Noel & Co., 52.
avoid its inflationary influence on Wall Street, New York City, memitself to the same kind of re- expansion of credit.
bers of the New York Stock Exstraints as we ask of government.
.<0nr ohiertive as custodian of change, announce that George
"One sound and demonstrated Deonle's money is to preserve the Armstrong has become associated
way of restraining excessive spend^American doTlar We with the firm as Manager of its.
="ce °°f g"
.
to
and
We again pledge our support of N j
durjng the period from,
the Treasury's Savings Bond proto Oct. 1 1952.
gram. In the sale of these bonds
the government and the people ■
|„AB11. UaaJU Ram!
incur an obligation to maintain |A| mSll Ollg RGawS UGmIs
their value in terms of purchasing
® _
M
»
poWer. To the extent that govf Qf
311 MlStVHGi BlOGS
ernment debt can be placed in the
*
'
the responsibility. The public has
been on a spending spree in
anticipation of inflation, thereby
compounding inflation, and busi-\
ness has been rebuilding its plants
and equipment at a tremendous
pace, partly to meet defense re-
for auirements
—
i'm^oscs
Sr. t.;
raw
wrwish
gratitude
as shown by defense purposes. Private spendori+iJ Treasury reports—have increased ing must thus be ready to subject
thpsp
Ovhonctc
Presi-
our
dent, We extend Our thanks for
while
agriculture
and
business
now
tee of Congress. We cannot afford
too much at one
are
waste of money or critical macoupling a huge military and for- terials or extravagance in our mileign aid program with continued itaiT program. Even more comnational, state and private spend- pelling is the need to scrutinize
ing excesses which breed deficit foreign aid.
financing by government, business
"The expenditures of the Fedand
communities,
We also appreciate the help and
priority in times like these, even the country's economy. Looking spending which is peculiarly witlithreatened.
In the past year we this
spending requires scrutiny, forward, we must seek ways to re- in the bankers' province is the
have suffered one of our history's We cannot safely allow the Mili- duce the need for these taxes by encouragement of thrift so that
severe inflations interrupted only
tary alone to determine military reducing expenditures.
much of the money created in this
by the current breathing spell. Our spending.
There should be an
"While government spending is great boom may be saved rather
present government and private informed and critical check on largely responsible for the coun- than spent. This Association asks
programs
now
threaten the re- military appropriations such as try's economic congestion, private all bankers to reexamine their
sumption of inflation.
We have the suggested watch dog commit- spending must take its share of facilities for encouraging savings.
"Our
own
"The American Bankers Association is deeply appreciative of the
hospitality shown the delegates to
the Convention by the Chicago
banks, our hosts. This is the 10th.
shotuld be subjec| to the. same ass^sta£ce of. *he Press> the hot^|
i™i
tax bills since Korea. At the same
time we recognize the destructive
people.
military
people in their
agencies
lending
"Government
«
^
on reso-
of lenders and borrowers in carry- convention of this Association to
I
BA
jBS^MI
edu-
eating and persuading both borrower and lender as to the need
for keeping credit within bounds,
This .Association asks the continued conscientious cooperation
'"
B-Jgli
^lr
■
Om
*
much
so
restraint. The record shows that lutions passed here, as on what is
through this means an important said and done by bankers and the
^
BBHRHBBB
will depend not
credit
33
PANAMA
•
•
FRUIT COMPANY
80 Federal St., Boston
EL SALVADOR
CANAL ZONE
10, Mass.
GUATEMALA
34
The Commercial and Financial Chronicle
(1378)
Continued
from
expended
21
page
They're
real
Air Power and the
point is
fire
airplanes that
not so obvious.
of
are
By comparison
today's airplane.
with today's
version, yesterday's
military airplane was little more
than
a
power-driven kite,
of metal,
fistful
a
and often operated by a
swashbuckling pilot. Today's com¬
systems,
elements
different
now
need
we
air-
In the old days the plane
was
the thing; today the
plane.
itself
plane is merely
A
modern
a
carrier.
a
patrol bomber built early in
World
103
II
War
pounds
loaded
was
with
instrumentation,
of
the
sional
em-
scale!
it
preciation for the time-lag 111 air¬
1,000 pounds of .elecThe
items.
comparable
plane of today has well over 5,000
pounds. The nerve center for the
a new Navy plane
miles of wiring.
But I should point out that the
things
weather.
with
clear
the
But
radar
and
of weather.
0
new
t h
special
e r
Performance is
won-
derful stuff, but performance costs
You may be able to get
bargain out of buying a second-
money.
a
rate
1945, 1946
That's the trouble with
our
air
the
only
today—and
program
basic
absolutely
airplane
it's
or a
second-rate Air
When you
see
beautiful
a
Brokers, Secured
.
.
.
has to be
Loans and Discounts
Stock of Federal Reserve Bank
Customers' Liability for Acceptances
......
.
.
.
heavily built of tougher
construction is dif-
Its
Accrued Interest and Other Assets
.
413,862.69
....
$129,440,551.76
planes,
thicker
LIABILITIES
Capital Stock
Surplus
.
3,100,000.00
.
Undivided Profits
1,149,224.60
$
8,249,224.60
113,052,404.21
Certified and Cashier's Checks Outstanding
Acceptances
A;.
Less Own Acceptances in Portfolio
.
.
,
.
.
...
3,817,269.53
.
4,516,519.10
3,654,151.16
Reserve for Contingencies, Interest, Expense, etc.
667,502.26
$129,440,551.76
♦Includes U. S. Government Deposits aggregating $3,501,737, 79.
DIRECTORS
and
actually
does
Robert F. C. Benkiser
Vicc'Prcsident
Black, Jr., Corporation
Honorary President,
International
President, Oxford Paper Co.
Chester R.
General
B. H.
Electric
and
This
for
Vice-President
General Foods
Robert E. Dwyer
Harold
Executive
ViccPresident
Anaconda
Copper Mining Company
j
President
Keating
D. C. Keefe
Airways, Inc.
Frank C. Walker
President
Chairman, Executive Committee,
Comerford Theatres, Inc.
IngersolbRand Company
The Grace
Pan American-Grace
that
takes
has been identified with domestic and
international
banking and commerce for almost a century.
name
DEPOSIT
INSURANCE
II.
,
_
in
call
would
fiscal
'52,
were
may
for
have
$32
bil¬
billion
$27
in
famine,
turkey
day'
one
feathers the next costs
Should
Have
and
us.
Long
Range
Program
When
people
then
the
will
learn
that
American
steadiness
in
moderation rather than enormity
in a crisis is better and cheaper.
Air power is
expensive enough in
itself; but when
we
add to it this
insane cost of stopping and start¬
ing,
we
do two things: first, we
the
cost up into the strato¬
sphere: second, when we let our
guard way down, we lay ourselves
open to
world attack, and the
run
money
shut it
called
we
fair
think
we
weather
save
we
in
have
so-
to
quadruple to dig us out of foul.
Steadiness rather than size in the
pinches is the thing. It will cost
...
.
Postwar Reduction in Airplane
Production
.
of one month,
tik^^H^h America s- powerful avi^tion industry.was producing
less than 100 military airplanes a *
even.
the
CORPORATION
haye '^on
money!
The
exact, pp.,
1
Several
All that
dry
asked. This.4s how they
"if—they just didii't ever stop
building the
now, and it's
did.
to
just one of hundreds
hundreds of items we've had
buy
to
build
these
planes.
-
To
I'll
new
air¬
V
is
say
more
complicated
costly
more
it this
figured that for
way.
a
to
In
very
every one
got
We
and
build,
1943,
we
specialized
one
let^
1947
it
stream
as we
j
as
.
1946
though
have
even
a
NATIONAL, BANK
/ .'^v
of Tarsighted men
took note of the worsening wdrld
a
group
conditions
urge
in
1947
and
-
run 'so
that back in
looked3-
wouldn't
small Air force,
But
they had,
our\
dry, however;
and
America
emphasize that today's air¬
plane
by.
suddenly
someone
disunl^^'f^Yered that Russia- had an air
^Op^^forc^e.^YWhere dkbAbey get it?"
tougher metals, which costs $% million—is
being bedded down in bur plant
upon
went
years
.larg'^C_Then.
in the f world
Russians have one—an
ton machine to form
therefore
FEDERAL
didn't
we
hydropress
Andrew B. Shea
Cletus Keating
Kirlin, Campbell
presses
in World War
Financial Vice-President
Merck
Co., Inc.
Company,
,
t33
R. Grace & Co.
James H. Sharp
«
Griswold and
Incorporated
.
adopted—and it
heavy equipment, such as
skin mills, spar mills, and stretch
ment
John C. Griswold
President
J. Roig
_
be—it
proposal
Air Force
fiscal '53, and $37 billion in fiscal
'54.
That's
what
the
feast
or
off at the source,; you can't suddenly turn it on and'get the water
out of the mouth. It's got to flow
just so fast and just so far and
pick up its feeders along the line,
and in the end you've got the big
water at the mouth!
must
very
Corporation
Director
W.
it
do
with
it.
Processing
problem—and these new ones
William M. Robbins
r
So
175
Lodge's
*945,
2>800 .to .less
i&-f?u?wW su™~
W. R. Grace & Co.
President
David Dows
feet.
square
of
space
Senator
be
lion
one year,
150-group
to
of devel-
Once you
source.
if
a
to
various systems,
installations that
5Well, part of it is this: We're
a period
building completely different:airAugust J;0
planes.
Quantity has nothing t^LS®.-^Jppecl
Oehlert, Jr.
Vice-President
Dewey
floor
the
to spend
and if con¬
ditions get worse—and they can;
make
at
billion
appalling that that same
But with the military victory in
plant and equipment that turned Europe, we shut our airplane river
out 96,000 airplanes in one year right off, right at the source!
In
is hard put to get up to 10,000 or the month of March, 1944, we pro15,000 a year today.
duced over 9,100 military planes.
Co., Inc.
Hugh J. Chisholm
manufactur-
all
us
seem
Clark H. Minor
President
covered
a
million
Board,
Mercantile Stores Company, Inc.
C. R. Black, Jr.
new
Many people wonder why the great aircraft industry with all its wartime plants
Suddenly needs new plants, new
machine tools, and new equipment.
On the surface they have
a point.
At the peak of the last
war, America's aviation industry
F. G. Kingsley
Chairman of the
whole
a
serve
1948. Now we're having
invented, developed, adopted,
opment of the
accessories and
whatever
drop
and
to.
that
By
average
$15
a
ing procedure.
had
MEMBER
prodthemselves
say nothing of the years
just
doing
able
or
be?
they
between World
we spent
of less then $28 mil¬
lion a year for air, only to find
that to dig us out of Wrorld War'
II we had to spend $28 million a
day, and for four years! We spent
an
average of about SI12 million
a
year in the years
1946, 1947,
an
call the
assemblage
manufactured.
back,
come
In the 20 years
mother structure that itself has to
and
keep busy
War I and World War II,
to be invented, developed, manufactured, and then housed in the
tooled
of
of it:
individual
of
hundreds
these
again. Here is the hard core
over
we
that all have in
can't
they're
lot is no small-time, single-process
load-bearing. The internal show that can ;be stopped and
bracing is much simpler. In other started by the snap of a finger. This
words, the World War II airplane is the longest manufacturing river
carried its load from the inside in the world!
It's the Mississippi
out—while the modern plane, to of manufacturing, and you can't
a
much larger degree, carries its get the big water put of the mouth
load from the outside in. But this of the river if you once shut it off
means
862,367.94
R.
thousands
ucts
an
should
they
.
Deposits*
C.
0f
really
to
Why
propeller,
a
letting
keen
of the
$4,000,000.00
•
.
airplane is
and
that
the
with—only to find that years later
when we do try to get them back
feeding us again, they aren't so
the whole' an integrated
thing.
All these, thousands of
manufactured products have to be
seasonably fed ;into, the master
plane production process, Everything has to be there at the right
time! The parts and pieces come
from every State ih America and
outside skin is much tougher and some from foreign countries. This
3,177,444.21
,
II
World
ones.
generally speaking, were made of very thin outer
skins.
They had a great deal - of
internal
bracing which carried
most
of the primary structural
loads.
The outside skin was just
that—a skin, a covering.
Today
the situation is just reversed. The
210,000.00
.....
.
War
1,800,000.00
48,408,456.08
6,250,881.14
30,265,174.27
.
.
an engine,
The end product
telling
merely
as
them find other lines to
long and costly process represents
a time cycle of five to seven years
for the mother structure itself, to
ferent— completely different—
....
.
frame,
simple
means
new
Furthermore,
to
attain these
performances; the modern airplane
than that of the old
U. S. Government Securities
ap¬
contributing organizations go out
of the air business and making
that is the matter with it!
be
materials.
State, Municipal and other Public Securities
widespread lack of
plane-maker to stop and start. It
thing
Force, but just try to get a bargain out of using one.
$ 38,914,733.37
us
production. 3 Stopping and
starting this complicated process
of aircraft manufacturing is not
some respectable
quantity production.
A battleship is complicated and takes a long time, but
daylight we only make one or two!
fighter,
The airplane is no longer just a
equipment, is
available roundthe-clock, day or night, any kind
to
and
eral
didn't do in
we
and 1947.
12
durin g
only
Demand Loans
costing
as
almost
tronic
RESOURCES
1945 that is
rials, but instead to the sins of the
past. Our cost of aviation today is
airplane standing on the runway
looking at the whole weapon as performance of these new planes gleaming in its glory and just off
is worth it. Take a typical fighter a
production line, you see "an
the end product, those percent¬
of World War II and a typical article that I think epitomizes the
ages Have shifted considerably. It's
fighter of today. The old plane longest, the most complicated, and
probably fair to say that nearer had a fighting altitude of 25,000 the most far-flung production ef50% of the design and the cost is feet. The new one is right at home fort of all time. I'm speaking now
at 50,006.
The old one did 400 about articles that "we make in
Cash in Vault and with Banks
V3
3
.
began to turn
craft
Again
of Condition, September 30, 1951
,3
we
day elements like labor and mate-
miles per hour, the new one 650
plus.
Normally this World War
II fighter could fly war missions
Statement
1948,
that shutoff in
was
now
ried
OF NEW YORK
in
the time and the
big money. We, as manufacturers,
have been trying to stress this fact
for years. Yet there's still a gen¬
But in accounting for the high
cost of air power, no small part of
the costs are due to these present-
today's counterpart has 582 not high just because of the high
pounds. I remember a particular cost of the things we are doing
plane produced in 1944 which car- today, but instead because of the
HANOVER SQUARE, NEW YORK
^33:aa'3;.
■
So,
But
GRACE NATIONAL BANK
vir¬
with
up
same
the water back in the stream. But
why
reason
came
recommendation;
namely, rebuild aircraft produc¬
tion
on
a
gradually intensified
nical aircraft manufacture has bea
major
costly,
Board
tually the
one
ployee. Today, one out of eight,
That's how complicated and tech-
more
President's Tem¬
The
Air Policy Commission and
Hinshaw/Brewster
Congres¬
porary
employees,
a
Force.
Air
could
out of 24 to
one
come—and
in
work
contains
Today it's all different.
be such
it's
the
spent on the rest of the flight deck of
w(as
plane.'
thousand
every
amount to at least half of the cost
than 10-15% of the money and ef¬
One of these is the very nature
for
and
cannot expect our plane was placed on the airframe,
engine, and the propeller.
civilian products and our defense the
products at one and the same time, They were the big three items,
and we must expect to be late as and they represented close to 8590% of the airplane.
They also
long as we try to do both.
I do, however, want to talk to represented 85-90% of the cost of
the finished fighting weapon. Less
you about the other two elements
fort
control
tracking systems, radar systems,
air refueling systems. These new
we
the high cost of
today's planes
radar and electronic job
get along with one such technician
technician.- In 1943,
out of 22 was an engineering
and
for
the
the old airplanes just didn't have:
however, that in my opinion it is bat aircraft are virtual labyrinths
most sophisticated
not possible to superimpose our of the
auto¬
defense program on the civilian matic devices requiring pilots and
production—and still get both at crews who are practically scien¬
the same time. I do not say that tists.
Ten or fifteen years ago, the
we
should change the policy.
I
simply say that, the policy being accent in design of a military air¬
account
that
But
Today, we
automatic
that
important.
have devices and installations that
Future Air Age
what it is,
airframe and engine,
on
still
1951
Thursday, October 11,
..
.
began
immediate rebuilding of
to
our
0/ WASHINGTON,
founded 1836
D. C.
'
,
MEMBER
FEDERAL RESERVB SYSTEM
•
'
FEDERAL DEPOSIT INSURANCE CORP.
Volume 174
less
and
Number 5054
keep
out
us
of
while the all-out and
will cost
us
trouble.
These
crises would
.
,
The Commercial and Financial Chronicle
trouble
all-in route
and
more
.
get
into
us
$30-billion-a-year
come up if we
never
I say
the
it is still not too late to keep
of the airline air
always have. Again with all
supremacy
we
as
due credit to
them, I do not hon¬
estly
believe
all the time,
and it only need cost a fraction of
liners
have
the
routes; and I do not think
they have low enough operating
costs
to
make
them
profitable
keep
guard
our
up
we've been doing it for
the last 30 years!
way
In
addition,
a
long range
steady,
would
have
given
modest-butair
program
running
start in emergencies such as this
today.
one
mitted
the
gether
work
It
in
the
keep
which
Force
the
which
clean,
ready to go. It's
and
land
over
not
yet
It
going
15
Los
and the
4
them
Los
up-to-date,
than
if
you're standing still.
Finally,
long
a
air pro¬
range
gram would support the constant
research and development neces¬
to
sary
produce
airplanes of the
future. For by its very nature, the
development of aviation requires
continual
terment
improvement
and
bet¬
means
that
and
—
over
So
the
is
race
An Ameri¬
easily be done
could
con¬
tinual
in style.
are now
Angeles
to
York,
New York,
1 hour,
Just
to
show
you
the capa¬
bility and reliability of such
this: Flying
24 (this
utilization, mind you,
present airplanes will do),
airplane,
hours
8
is less
than
lone
one
in
how's
of
out
one
every
jet airliner could
year
the
across
force the
26,600 first-class
4
air, I think that by creating the farthest away, but I will tell
a
pressure
differential between you this and now—that within the
the inside and the outside of the present state of the art and with
wing
we
could
drag
the
air developments we know positively
through the wing—not the
airplanes.;
air program and I
range
promise
great
you
things that
Even
within
all
four
our
I
the
in the fore¬
grasp
which
them
in
think
I
veloped.
vious
they
The
the
first
in
order
must
come.
been written
completely
constructed and could achieve the
miracle of space
vertically, fly at
slow speed in any direc¬
still, rise
flight.
It would
embrace the principle of probably
three stages of propulsion which
man's airplane! It probably would
would
high
or
be.
Several
but
one
built
types
that
would
this:
It
be
would
how
men
you,
have
checkbooks
your
the line for that
in
passengers
have
have
and
range
acteristics
that
comfort
speed
hour. It must
char¬
it
make
magnificent airplane for the
from
of
a
runs
Chicago to Los .Angeles and
New
York.
It
must
have
also
within
do
can
There
years.
a
to
different
broken down many
measuring
stick
missile
de¬
be
can
ways—by
one
another.
or
of missiles
far
as
know
we
as
all
of relatively short range.
The reason they are short range
is
the
because
are
limited
not
hard
of
guidance
in
to
build
not too hard to
it's
been
It's
missile
short; it's
a
or
build short range
missiles;
guided
just
long
range,
any
systems
effectiveness.
but
awful
to
up
hard,
now
if not
im¬
possible,
long
range
guided
long
be
and
under
it
all
able
to
make
certain
must
provement
stop
one
it
nonstop
conditions.
Above
demonstrate
im¬
an
present operating
over
what the
present-day airliners.
Much has. been
that
to
air
seize
Great
the
from
about the
said
Britain
bids
of airline
supremacy
U.
our
S.
fair
industry be¬
she is first in the field with
cause
a
pure jet
mind
what
airliner.
Having
have
I
said
in
about
must and
we
win
can
beam
a
earth's
the
around
surface?
German
flying bombs—the V-l and V-2—
were guided by clock-type steer¬
ing
that
apparatus
so
pre-set
was
this
seconds
many
way,
long range and could not be
I cannot speak
curate.
but I
so
sure
am
have
we
a
Condensed Statement
when
doing
we
little or nothing. In those signi¬
ficant years, the British Government
encouraged the
several —not
one
—forward
signs; and the five to
time
for
starting of
seven
de¬
years
the
this
that
problem;
if
and
we
resembles
it with the same
engines we now use in fighters,
and shoot
it off for its target.
power
Think what that
Not
will
save
us
all!-
only will it be accurate, but
cost only a fraction of a
will
it
big bomber; and most sacred
sav¬
of all, it will not carry the
precious irreplaceable complement
of those
of 10 to 20 young American men.
brand
carrying
new
types will be
this
passengers
early next. How will
cans
like
the
year
Ameri¬
you
prospect
or
ing
This
manhours
and
en¬
money
that could just as well have gone
in here at home.
We
Can
to
prove
intercontinental
Our
Air
Security
Actually this does not have to
happen. With all credit to our
The
be
the
guided missile!
Individual
People
often
don't have
—
know,
you
Flying
ask
me
with
the
why
every
owning and flying his
Well
Plane
we
individual flying
more
is
reason
type
airplane
space
to
or
stand
still
helicopter that
enterprise I
too
the first to salute,
one
will
own
to
a
or
In
big
takes
a
in
the
can
$
749,756,957.03
870,372,901.31
Mortgages
Stock of Federal Reserve Bank
.
.
.
71,395,674.02
.
.
.
57,930,029.34
...
State, Municipal and Public Securities
.
.
.
.
.
3,595,050.00
Other Securities
24,986,920.96
Loans, Bills Purchased and Bankers' Acceptances
.
805,497,276.77
Mortgages
.
15,444,256.25
.
16,006,843.85
.
8,624,431.73
'.....
Banking Houses
Other Real Estate
Customers'
.
.
.
.
•
.
Equities
.
.
•
.
.
.
.
.
.
.
.
256,818.40
Liability for Acceptances
Accrued Interest and Other Resources
5,523,738.54
$2,629,940,898.25
LIABILITIES
Capital
'
$50,390,000.00
Surplus
$
37,533,935.23
Reserves for Taxes, Unearned Discount, Interest, etc.
Dividend
..
69,444,000.00
.
.
.
.
157,367,935.23
17,297,014.43
.
Payable October 15, 1951
Outstanding Acceptances
Liability
Endorser
as
Cash held
as
1,511,700.00
9,159,819.60
.
.
Acceptances and Foreign Bills
on
Collateral
.
or
in Escrow
.
6,633,070.41
.
13,529,784.56
.........
Deposits
2,424.436,574.02
$2,629,940,898.25
United
secure
States
Government
and
other
Securities
carried
public funds and trust deposits and for other
at
$119,100,910.62
purposes as
required
pledged
are
to
permitted by law.
or
DIRECTORS
paolino
beinecke
edwin j.
Chairman, Th e Sparry & Hutchinson
Co.
EDGAR S. BLOOM
Chairman, New York and Cuba
Mail
c.
charles
oswald
clouch
c.
r.
harry
crandall
President, George A. Fuller Company
charles
horace
c.
Coal Co.
william
f.
Trust Committee
harold
maclellan
President, United Biscuit Company
flanigan
john
President, John P. Maguire &
henry
Corporation
c.
von
elm
Honorary Chairman
Co., Inc.
Clyde Estate
l. a. van bomel
Products
john p. magujre
john gemmell, jr.
smith
President, National Dairy
Savings Bank
President, United States
richard
City
v.
President, Home Insurance Co.
t. madden
President, Emigrant Industrial
Lines Company
c.
New.York
harold
of America
john m. franklin
g. rabe
Chairman
kilpatrick
Senior Vice-President
kenneth
dana
a.
Chairman, Dana Corporation
j. patterson
President, Scranton & Lehigh
johnston
l.
c.
palmer
Director, Cluett Peabody & Co., Inc.
Simpson Thacher & Bartlctt
Administrative Vice-President
lou
c. r.
george
Director, Lambert Company
Corporation
Mclaughlin
Executive Committee
john l. johnston
Chairman, American Home
v.
Chairman
of Brooklyn
brush
Products
george
gretsch
Chairman, Lincoln Savings Bank
Steamship Co.
alvin
gerli
President, Gerli & Co., Inc.
frederick
Head Office: 55 Broad
MODE
THAN
100
MANKIND
Street, New York City
OFFICES
Member Federal
IN
CREATED
Deposit Insurance Corporation
air, and the
stand still pays
price for being able to.
to
an¬
heart I know there is
my
Continued
•
U. S. Government Insured F. H. A.
we
ordinary
too
much
The
lead
if
plpne.
because
but
challenge and solution of
man
land in and can't hover
British friends whose courage and
am
of
of Condition—September 30, 1951
don't have the plane. The
Keep
the
U. S. Government Securities
President
seeing
these planes digging into the busi¬
ness of your own airlines and air
gineering
well
can
of
companies with the fruits of
fields in which to work.
new
solution
get
plane,
kind of
ques¬
are
solved, science — her
tempting finger constantly beck¬
oning us forward—will show us
fighter
a
of
one
tions
be possible* to put
soon
development
having about matured, at least two
span,
each
RESOURCES
this guidance system on something
was
1945, 1946, and 1947
in America were doing
imminent
enough
Cash and Due from Banks
fine start
it, it will
years
As
other
ac¬
on
the
end.
and
TRUST COMPANY
of it here;
duction, it would be well for all
in
the
these
that—but it could not be for
many
thinking Americans to
the British Government
what
soon.
of
curve
The
steadiness in air research and pro¬
see
safely
this earth
Undivided Profits
plain language, we must have
a guidance system that can guide
beyond the horizon. How do you
the
fact
back
on
In
bend
into
the world
over
it!
the
safety factors built
all
race
is for—and
costs and maintain if not improve
excellent
in the universe,
know
MANUFACTURERS
guidance systems, not the missile,
Atlantic with
re¬
we
only the beginning
—not
range
to build a
missile. The
is the key. That's the prize—that's
the
space
to the moon, how to carry
To
date, the effectiveness of all kinds
enough range to make it able to
across
it
get
landing either
very
literally
are
maintain dependable
regularity of
service in all weather, both ways
area
the
are
rather
or
wonderful
the world is limited because
operating
will
we
these
are
cruising
around 600 miles per
things
few
of
one
as
they
luxurious
a
it
over
something like
around 60
on
forms
one
Everywhere I go people say to
"What about the guided mis¬
sile? When do we get what?" This
is such a vast subject that I "will
only pick off one little corner of
must be
carry
At this
in
they
they will.
things that
now
me,
signs and types, and they
sure
it
do
boundary layer control and have its minimum speed for an indef¬ other, until at last will come the
answers
to mysteries that have
a ducted fan
engine, which in it¬ inite period would be 24,000 miles
The next step, as yet kept mankind in ignorance and
self would take $10- to $15-mil- per hour.
restriction for centuries.
lion to work up. If any of you beyond our knowledge, would be
the
promising,
are
feel
I
gime.
the principles of
Queen.
hundreds of
have
arrive
But
all
are
can
op¬
with
de¬
Volumes
shortly, we'already
space ship can
be
a
we
(Eddie
this
ob¬
great airliner will
new
day
a
does
be
to what the next
as
hours
10
erate
jet could
most
can
and
is the ultramodern airliner
that
and
stimulating
I will just
imagination.
mention
allude
can
definite projects
seeable future and all
to
wondrous
and will be done.
can
or
can
of
right today
three
to
long
bring
here
that
something? Then the wing could
Constellation) it could haul 33,300
in one year against 39,000 for the
this
be
know
These
The
passengers.
Rickenbacker
support
will
wing
and I believe that
come
Queen Mary is estimated to carry
ideas to produce newer and better
and
we get it, we'll energy
to
those who
Dipper"!
the
carry
39,000. Now if the
Enact
right! When
call it the "Little
in the air is to
the rotor blades
up
Atlantic
experimentation, continual
searching for newer and better
■
helicopter
have to embody
17 minutes
an
a
tion. Just the ticket for the every-
"
Angeles to Chicago, 2 hours,
to
the
on
climb back out.
To
may say that not hav¬
wing or
ing solved the second, third, and
Finally, those of you who have
through the air. I'll just make you felt the predictions of the
fourth phases of space flight, the
space
another of my expensive predic¬
ship were the abberations of the solving of the first is meaningless,
tions. Given the development en¬
mildly insane, I must ask you in I will respond that 20 years ago
couragement of a permanent pro¬ all seriousness to be a little more those same people would have
gram and a little leasure, we can charitable toward those who are said we would never have knowl¬
come
up
with an entirely new working on this problem.
Of all edge of the first stage — and we
do have and the rest will come!
concept of flight. Instead of drag¬ the things I have
mentioned, the
So I say all these things can
ging the wing or rotors through practical space ship is certainly
or
stand
New
hours, 2 minutes
Chicago
The thing that keeps an airplane
through the air. Wouldn't that be
56 minutes
lot easier
20
or
make
operate
routes.
margins than
industry
a
to
over—or won.
design
can
to get to 60 miles an hour if you're
already
practical
ocean
ing times for typical runs, and do
it all at equal if not better profit
skilled
uses
stripped down,
British
to
to¬
years.
planes
the
range
that would accomplish the follow¬
hold
lean
both
builds the
Air
to
that
per¬
have
its highly
of
some
a
would
industry
team
would
us
them
the
35
(1379)
.DEFENSE IS YOUR JOB TOO—BUY U. S. DEFENSE BONDS.
NEW
YORK
on
page
a
36
34
Th/>.
,,11378)
The Commercial and Financial Chronicle
36
.
..
(1380)
Continued
InvestmenS
from page 35
Air Jk Www
Power
Al*
ing
J1 11 Til lr#*
-
.
11C
waiting for us
y
of air
there lies a new way
of life, and we can be rewarded
l
and
find:J?g
g
beyond this immensity
and
space
with
and
fruits
her
systems are but on the thresholci
of this long corridor of searching
which at the other end may well
hold
the
secret
very
ot
our
lifting
P
skies, tor mis
frQm the,
h
inis
Age
&
tieth
quiries
T
KjtCItGII llOIIIS
is lim-
have
know its dimension, and
worked well this land.
So
also
we
Ited;
we
the
know
sea
—
we
LOUIS
gT
th m
them
n
we
with the secrets of the age
of airthe third and perhaps the greatest
element inthis Philosophical Tnnity of Land, of Sea, of Air.
This
most
it
is
the
of
vast
the
least
all;
is
from
energy
and
mathematicians
can
move
—
its
more
planets than
compute, and
through its limitless
someday
From
come
can
other
space we can
earthbound
no
longer!
It
even
can
small
our
make
realize how
us
world is and make
own
the peoples of this weary world
stop beleaguering one another and
epend their strength and resources
on
constructive
kind
rather
measures
than
on
for
war
f
about
yet
known.
trackless expanse
p a n y.
JJ
man-
among
iStUC
WML
be"
must to pro-
homes and families—and
WeWiU!
Bnor
tnereto
Je was with
is
than
earth.
When
solved
the
Power
anything
our
that
on
of
men
t
w
.
®
-
is still
a
Coroorate
•/
A
i
Chicago.
source
Risks of Exploration
yet to be discovered, will re-
deeper
drilling,
The
~
0f Municipal Securities; The
stocks^as Investments The^Busi-
lrwin
as
Westfall has become connected
with
C.
B.
Christopher
PART THREE — Problems in
Co.,. the Financing of Corporations:
&
Dividend
Building, members
f
Q1
•
Cf
f
ganization
PART
LOUIS, Mo.—Carl D. Baue of
become
affiliated
with Slay-
yet
$1,500,000. And
u
wm
the
in
the
rc
f
case
of gas,
extension
thg present majn lines
by
a
o£
geophysical
of
surveys
scientfic techniques known and to
be
invented.
Such
technical
methods may indicate the strati-
graphic nature of the subsurface
but they cannot show whether or
^
underlying strata contain
or gas
They may reduce the
nQt
gigan_ oil
Probability of dry holes but only
by drilIi"g can pil pp 8«s be found.
pressures
cents per Mcf. In fact, it was the the country, headed by Dr. Fredproducers needing an outlet that eric H. Lahee, geological and reput Tennessee Gas on the map. search counsellor, Sun Oil Com-
Later, Transcontinental
for
its
basic
supply
T
4nR
nii
ton & Company, Inc., 408 Olive
Street.
contracted pany. Dr. Lahee has been analyz7 cents, ing and reporting such data since
cents, then 1937. His latest reports presents
at
Texas Illinois agreed to pay
up
to
the following interesting ratios for
new line to start new-field or rank wildcat tests: ^
Ratio of Successful Tests to Total Rank
Located by technical surveys
Located by nontechnical methods...
.
Securities:
New
.
the Development
in
Jnc
of Canada
Issues
Origination
and
;
.
,
v;
icw^ve^^n7~Micvmto?
Indi"
Policies
17.6%
..
9.2%
.
and
Trus
that the
country
new
fields of the
find
a
Since World
buyer
savings and is
now $2.57. The oil producbusiness has been
through
on the chance of striking oil; that ing
^ese empl°y geol°gy and technical methods to
a
smaller degree
than the majors, but by sheer
number of trials they find the
itmi
mi
m m
mT-bm iim m m ^
by McDonald & Co., Clevelan , new oil. The Spindletop field was
AAnVMKt VANT
??/ 2
f-ruei
' ?
frefs £ found 50 years ag? by CaPtain LuA
INklPpF4A% convertible preferred stock cas after the United States Geo?
Harshaw Chemical Co. of- logical Survey and the Standard
/
VS tt%3 UP
Jt.S.
fering Price is $103 per share to Oil experts rejected the possibilrn
I
IUr mtm
mm
yield about 4.3%.
f
....
iareest^resfrve
feasts and famines. The oil
producer always faces severe com-
many
petition/ If potential output-;exceeds demand, the price may fall
or
his production may be prorated, or both. As a producer of
fuel he must compete with coal
and
a
by
even
with the product of
sister industry,
'nj6'*1'
Each^ share:Of preferred stock.is largest reserve was ,discovered the
ever found ,n
for
period of ten United.States
convertible
could
largel
found „ t b
War1 the price of 36 gravity Midthe Weii.heeled major companies, Continent
crude, as representabut by the many smalI
companies live, has ranged from $3.50 per
and
independent operators
who barrel in 1920 to 18 cents in
1931,
^
rn
24%
76%
are
MI*lift 112!Ill Rrnilh nffprQ are willing to risk their
/n\\
UavaLaiii
Cll#
nffiSnfHdBOHdW llIIvilliwdl! villi
Drilled and Financed in 1950
M^ese
hear out the pre- and the price soon dropped to 18
vailing belieifin the producing in- cents per barrel, for-those who
of dustry
iflliUIIHCIIII UIUII|I UllwlO
'IrSlKV
.
„
11.2%
By Major.Companies
By Minors and Independents
By Major Companies
;
By Minors and Independents
Regula-
Companies; Investment Policies ot
Insurance Companies.
/fV
9
and Financed in 1950
Total
Securities
Governmental
Banks
1 in
,
Classification of Rank Wildcats
Investment
or
next-**5 s SB SSS S: 5»
llcxUb
Marketing
(II); The
Commercial
-
5.0%
11.1%
^"els of reserves: 1 in 44
Exchanges; The Over-the-Counter
viduals,
f;
12.4%
lotal successful tests (not dry holes)
Teste ferine &e ds o 1 rndUon
Markets;
.
.
Wildcats, 1944-1946
Ratio of Successful Tests to Total Rank Wildcats
Drilled
FOUR —The
Distribution of New Issues (I);
Origination and Distribution of
-
m
(I); Refinancing and
Reorganization (II).
(Special to The financial chronicle)
ST,
Holding
and
SBssast-afsfc
CC
Joins olayton Dtarr
has
Policy
tion of the Securities Markets.
y
not
reserves
underground strata, and all of the
a
-
'
From 1871 Aiding
future
the geology,
where
cost at great depths increases
rities; The Analysis of Investment 10 cents, and any
(Special to the financial Chronicle)
KANSAS CITY> Mo'
science
of power
are
Analysis of Foreign Securities and Texas Eastern at 7%
Witfc B. C. Christopher
mystery of the atom,
greater
find the oil and gas that exist, but
ductive, and pulling well
•
Railroad Securities
(II); The
Analysis of Industrial Securities;
'rhe Analysis of United States
Government Securities; The Anal-
u
v*
Murphy and Kitchen & Co. in ySjs
this
well be that it heralds a new
way
of life. But I propound that there
occurs
Statements and their
Interpretation (I); Financial
Kitchen
,a
in
the past was a,p^:n^r in
is
and U may
gas
PART TWO—Security Analysis:
" s»* ——
a
the three large ]jnes bringing gas
in nature to New York State were originwitli oil. It was generated by the ated. It is the reserves of gas that
same geologic processes, is found has yet to be found that is going
by the same techniques and is to be expensive and in the long~
generally discovered in the search range future this undiscovered
for oil. Hence, the future of both supply will be much larger, more
resources will be quite compar- difficult to find, and more expenable and to find new gas there sive than that now under contract.
mugt be exploration for oil
To
Natural
Fund^ Interes[^Rates tic pipe line net work to «ather
Sst of Funds
from everV sduare mile found pr°-
he
kch<^ck, Kicn-
Board of Trade
Surely there
Future Discoveries
gWMerm
-JM
MMy y'jMsm
L
jrftrjs
stronger
of
ao
witn-tne i^os
Angeles omce
DempseyTeg.eler& Co.
mustb"
we
^
*
But
would need to pay more.
The results of drilling rank wilddown to the last pound.
cats, that is, tests intended to find
Until
recently, gas has been new oil or gas fields, are surprisavailable to the major pipe line ing low.
The Committee on ExStatements and their Interpreta- companies in a buyers' market ploratory Drilling of the American
jgg| tion (II); The Analysis of Public where at first the producer had no Association of Petroleum GeologUtility Securities (I); The Anal- choice but to sell. When Tennes- gists does a most thorough job of
ySis of Public Utility Securities see Gas Transmission Company
analyzing these results. The Corn(II); The Analysis of Railroad organized its supply in 1943-1944, mittee and its
helpers include
Securities (I); The Analysis of the producers were glad to get 5 some 100 geologists throughout
v_
.C.T,
at frightful eost
+re
-
now
those prices were for gas that was
known and contracted for when
financing of
The Con-
The Analysis of Real Estate Secu-
actuallyin
ready to fight if
•
.
de-
„Financial
We must be practical; we must
our
Enterprise:
sources
ourselves.
tect
The
ONE
PART
Business
terpnse
sources ot corporate
Funds-Stocks, Sources of Cor
M~
,
will be:
course
•
M ississippi
Valley Trust
B u lid i .n„
'i"3 °
medium—the
great
■
,
been
hiSh exponent of the depth, and it
will take: operationssin 50 feet of.
tribution of Investment Banking water off the Gulf Coast where a
wmmmmmmmrnm to the Financing of Business En- ^ d"I1,n/ Platform may cost
T
associated
become
white &
C o m
ap-
ducti0n, the ratio has
creasjng moderately.
and
Included in the
William
Mo
has'
KUcben
and
Chicago 3, 111.
(sPeciai to the financial chronicle)
with
It? until
ffriZ
limited
augment
LfllllS
Illlltv ilwij yu
know its size, and for generations
it has transported us and givent us
SI
WhSfp f!rt
information
for
Thursday, October 11, 1951
plications may be sent to Erwin quire great effort and increasing found will be obtained by extenBoehmler, I. B. A. Educational costs per barrel and per thousand sive exploration. The selection of
Director, 33 South Clark Street, cubic feet. It will require deeper drilling sites will be based upon
^
we
^ Chicag0) 1375 East gix_
Street, Chicago 37, 111. In-
^
•
Eternal
earth
this
on
For
eyes.
cQme
of
0Pen for enrollment.
are accepted at any
must
.^as |n the
help
our
up
h
Investment.
in
Chicago, is now
Registrations
time and applications, with the full tuition of
$40^ should be sent to the HomeStudy Department of the UniverUniversity
mortals
__then
»
W
land
•
g
Life!
The
If it does exist—and
«
.
if
powers
New airplanes and power
will.
we
respondence course
1 QR *•}■'»«» h
The Outlook for Natural Gas
Invest¬
The
—
Banking, offered in cooperation
wlth the Sch°o1 of Business and
Home-Study Department of the
must reverentoatientlv devote ourselves
and enerev and we
in the mysteries of the air.
111.
ment Bankers Association of
America announces that its cor-
v
...
,,
world
new
CHICAGO,
SL #ra
All ©
/Um
mi
whole
Course Announced
and the
mm»^t
m
■
6
Continued from
Banking
t
AWHmA*»>»♦ «** wrmfflMaiMHl'Mt-'1 r\o4/>V«rtt» 1
«<v»J
the
natural gas.
The finding of oil and natural
has
pioneers
been
b
accompIished
operators
by
willing to
Dad J°lner pn
ajh°f trlng after take ehances in the hope of high
pany's common stock and the issue the area had been passed up by
returns and in a political atmosis
provided with a fixed sinking the majors.
years into
fund of
;
Make this Bank Your
Correspondent in Canada
Complete modern banking facilities
and
your
clients.
I.Export-Import
I
oca
ions,
Inquiries
-
II/
-
i4. W.
invited
are
49
J
canada
STREET
...
plants
•
i
in
London, England
,
;
.
:
■
.''
phere where they were not atraid
confiscation if they struck oil
of
gftulja dr^h^Te^s tT0hrey aRnuds?a?ge ^nuafrese^t
in
and
have not done
well,
so
_
^
P'S
chemical
;
:
(Special to the financtal chronicle)
BOSTON, Mass.—Frederick M.
,
York
is
now
associated
with
+the *ast dollar ^he could borrow
j? discover oil in East Texas, his
I
.S.H
WHITE, Asst. Agent Coburn Middiebrook Adds
r
are
mlyln Xefbring S
chemicals
Co-
; ; ■: ;1
,; -
• :
.
.
"
"
• ■ ■- ——
gas
companies,
transmission
exempting
specifically
"the
but
pro-
toSS'S R* g^°Tto^
which the i^arket could
not take
cases
of overlapping of regulatory
jurisdiction
2Fredeclcw^H.
Lahee,
"Exploratory
burn & Middiebrook, Incorporated,
75 State Street.
^
with
,
1
Tho risks of tho oil finder
lower price of oil When Mr.
Congress passed the Natural Gas
products primarily for industrial ,,01nf bad spent his last cent and Act in 1938 regulating interstate
Private wire connects New
York, Montreal and Toronto offices
company,
sale
TORONTO
j
plus an
consumption.
;
and
year
^
D,/v T
HEAD OFFICE
por
*be unpredictable turn of the oil
Cleveland and Elyria, Ohio, and market. As a matter of fact, the
regarding
WALL
$80,000
com-
j^ional amount based on earn"
The
RICE, Agent
E. A. QUACKENBUSH, Asst.
Agent
arvnc.
available to you
trade m Canada, agents, plant
oreign Exchange regulations.
NEW YORK AGENCY:
Rranrhpc
are
two shares of the
lSsi)
1123-1
uil;
'
■
-
where
gas
Properties
border
the
at
passes
interstate
into
line
from producing
trans-
mission lines. The State Conserva;
•
■
.
;
-i
■
-'v..
-ran™
Number 5054
Volume 174
,)t The Commercial and Financial Chronicle
.
Commissions had long
tion
lowers
since
the production of oil
and gas particularly as to main¬
taining conservation and protect¬
ing the correlative rights of neigh¬
boring producers. To clarify the
limits of Federal
„
1949. ' These
remove
bills
designed
were
doubt
in
the
to
as
the Federal
of
mission
the
over
gathering
Power
the
by
and
gas
Congress
in
Commission
Power
action
an
make
troleum
Company
to
ascertain
And
the production of its
over
found
in
it
re¬
gas
a
profitable business.
I
takes the
it
prospect of real
carry
of this country to
in exploring for
needed to keep the
on,
new
decision that it did not have such
supplies
sustained,
the
decision will have a far-reaching
coming.
effect
Economics of Transporting Gas to
for
If
the search
future supply of natural
the
encouraging
soundness
the
of
utility
gas
in¬
I cite this because of the oppo¬
that
Kerr
Bill
the
costs
dered
gas
supplies.
they
are
cient
of
competitive
York
City
on a
natural
ural
gas
turn
the
new
for oil,
the advan¬
gas,
natural
keep
York
With King Merritt
gas
(Special to The Financial Chronicle)
for the
up
to
of
use
induced to
be
ORLANDO, Fla.
plenty of coal
retain their gas
their
Central States.
But
Inc.
;
move
Louisiana
to
With Waddell & Reed
thereby help those
(Special to The Financial Chronicle)
states grow.
SARASOTA, Fla. —Charles W.
Conclusion
Lonsdale is with Waddell &
The
utilities in the New
England area should
gas
York-New
be able to obtain
a
sufficient sup¬
Merrill Lynch
with
Adds
(Special to The Financial Chronicle)
PALM
Cox,
staff
of
Fenner &
should recognize the service ren¬
BEACH, Fla.—Houston,
been added to the
Jr., has
Merrill
Lynch,
insight
the
into
the
producing
probjems of
The
wildcatter.
business
of
and
maintaining pro¬
duction is entirely different from
that
of
thrives
risks
distributing
fails
or
and
is
wins$
One
gas.
the
on
taking of
competitive.
highly
The
other, being franchised and
protected against competition in
its
territory,
enjoys
paralleling the
permanency
tinuance
of
the
C IT Y
C LEVEIAN D
O F
Founded 1849
con¬
population
industry served.
T H E
of
status
a
and
The oil and
gas
producer must be compensated for
his risks
of
age total cost
country
000.
The
in
wildcat in this
a
nine
of
back and
getting
a good
President, White Motor Company
Irving C. Bolton
money
Vice
chance in 44 of mak¬
one
thing of it if
on your cost
That is what
oil?
you were
T. J.
shooting
regulated
sTarted
once
on
Ernest C.
President, Wheeling & Lake Erie
1934-3-3
;
6.7
1940-42
6.7 }
1943-45
8.1
But these
is
the successful
are
com¬
'
Herbert
the
Hoover
regarding
says,
for
rewards
fail.
who
operators
the
search
•
•
•
•
•
•
•
.
.
.
•
•
•
•
35,636,371.23
1.00
1.00
1,083,206.91
Total
$241,328,718.21
.....
.
.
.
Company
of
LIABILITIES
}'
Laurence H. Norton
'
•,
:
:
1
o
'
\
Transportation Company
a- .•••
Perry, Vice President and Secretary,
Harshaw Chemical Co.
No one reports the losses
companies and hundreds of
independent
83,867,317.01
•
•
Interest Accrued and Other Assets
Chairman of the Board,
Drake T.
strictly
higher.
on
12,469,827.37
Lot—W. 3rd 85 Frankfort Ave..
Bank Parking
•
Director, Columbia
12.7
The rate of return
producing companies
Mortgage Loans on Real Estate
President, The Cleveland Graphite Bronze Co.
13.4
;r
89,934,000.00
James L. Myers
1937-39
1950
$ 18,337,993.69
•
•
Frank C. Lewman
Richman Brothers
1946-49
•
Obligations.
Bank Premises—127 Public Square
President
Dwight P. Joyce
5.3
—
•
/'•
Surplus
*
•
Reserve for
Ilenry S. Sherman
• •
,
-
*
,*7
•
.
•
v.
'*1
j «... ,v.\
Ty
j.
*
•
•
•
•
.
•
•
•
•
•
•
%
,.»
If
■
:
.•'
\
-/•
t
,
4
-11
;y/*3u.
$ 12,000,000.00
•
•
k. * •
- * :.9
...
Contingencies
-r
*.
<'.
i
'
.
.
•
.
•
•
2,440,091.92
Chairman of the Board
Herman L. Vail, Attorney, Sayre, Vail & Steele
Expenses and Dividends on
Reserve I for Taxes,
1,457,102.19
Deposits
John S. Wilbur
Cleveland Cliffs Iron Company
Savings Deposits
Other Deposits
Arthur P. Williamson
.............
.
217,750,449.94
President, Dill Manufacturing Company
.
5,275,027.67
.
gold:4
"If
all
costs
are
included, gold
unprofitable business
country. It is certainly no
mining is
in any
business
Deferred Credits and Other
mm
But
amateurs.
for
lure of the occasional great
a
strike
*.
JjKK•.
i
for
Coqueron and Joseph E.
The Chase National Bank "Fi¬
Analysis of Thirty Oil Companies
1950"—June,
4 Herbert
Age,"
3,1951.
.
1951.
Hoover,
v
t-■
•A'lO b-jn i
'iRv
•;
'
March
Security and Uninterrupted Dividends to
Five Generations
of Savers
b'jJi-.-
MEMBER
"Engineering's
Collier's Magazine,
$241,328,718.21
Total
steady stream of fol-
3 Frederick G.
Golden
2,406,046.49
the
jf
nancial
....
an
maintains
Pogue,
Liabilities
FEDERAL
DEPOSIT
INSURANCE
Hi
6:
Lawful Reserve)
Other Loans and Discounts.
Company
President, The Ohio Bell Telephone Company
%
of the
First
Mervin B. France
Return
;■
as
Other Investments
President, The Glidden Company
Rate of
.
•
Dempsey
Randolph Eide
follows:3
Period—-
-
?i
4
,
George Durham
posite rate of return on borrowed
and invested capital has been as
panies.
(Including $13,200,000.00
Attorney, Squire, Sanders & Dempsey
The successful oil companies,
of
course, earn a rate of return in
excess of 6%, especially
in good
times.
For a group of 30 of the
larger oil companies, the com¬
-
Hand and Due from Banks
on
United States Government
John S. Crider
their gas pro¬
duction.
,
Cash
Conway
President, Thompson Products Company
operations^! the Power Commis¬
sion
(Less Reserves)
' ■!>.
v
t"
Frederick C. Crawford
their other
on
■t!
President, Fisher Brothers Co.
ity that the oil companies might
later be
RESOURCES
Attorney
Director, Cleveland Electric Illuminating Co.
if you struck
the
Clark,
Frank M. Cobb '
about—that and the possibil¬
was
President, The Warner 8c Swasey Co.
Harold T.
going to be regulated down to 6%
return
September 30,1951
Robert F. Black
chance
one
your
Bicknell, Jr.
President, Cleveland Construction Co.
approximates $90,you invest $90,000 in
Would
ing
Warren
now
wildcat venture with
a
aver¬
OF CONDITION
STATEMENT
TRUSTEES
he will not go further
or
to find the next field.
Pierce,
Beane, Bassett Building.
producing operations with lit¬
tle
Reed,
Inc.
com¬
there
H.
>
by consumers far re¬
the scene of natural
gas
1
e n 0 x
industry that may
and Texas and
to the present
supplies
L
—
from
moved
to
pany,
and in
eastern States have been in
North
be
coming.
anyway—but
demand for nat¬
time, the utilities for the North¬
for
should
Rand is with King Merritt & Com¬
obtaining their requirements
petition
objective
Yankees who have
:
gas
basic
in favor of nat¬
,
natural
to
price suffi¬
a
btu basis is 5 to
what creates the
competitive demand for
supplies in Texas and
gas
Texas
big job ahead and
a
entitled to
that the gas keeps
political agitation in Louisiana
and
new
mount¬
from being exported to the North
for the benefit of the Damned
in the Northeast
Louisiana.
In
in
prices
area
are
standpoint of the New York
State utilities and their customers
the
and
Their costs
the
see
New
they
the supply position would fall off
rapidly. I would suggest that from
the
present
risks
induce them to explore.
inducement—no exploration—
and without further exploration
source, where little transportation
is involved.
And there is plenty
coal
the
exploring for
to
one-quarter for the gas and threequariers for transportation.
And
the
and
in
No
transportation, it will
ultimately be worth much more
near
the natural gas
producers
in
far¬
ing, they have
22 cents for
than 10 cents if utilized
take
37
by
and
fields
away
must
miles, and like other is worth around 30 cents per Mcf
is upward.
The in the New York City area after
York utility buying Texas
gets the gas, but it pays for
plus
transportation — about
gas
them
finders
with New York—that is the
trend
New
gas
of'1,600 miles for delivery in the
against the
developed
in¬
expenses,
ply of natural gas for many years
provided the natural gas produc¬
Gas purchased along the Gulf other
sections
of
the
country,
ing industry is encouraged to go
Coast for 7J/2 cents per Mcf is now particularly
the Pennsylvaniaout and find more reserves yet to
industrial
areas
and
the be discovered.
being hauled an average distance Ohio
Your customers
dustry.
sition
Higher
Mcf per 100
of
New
important to the long-term
gas, so
more
face
tage
But in any case,
jurisdiction.
in
panies
another demand for Texas gas
will
compete more and
which
at
overall
ural gas finders
4-to-l
a
the
profit to induce the oil and nat¬
On July 18, last, the
Commission
is
strictly
a pursuit fraught with many
10 cents per Mcf
hazards, it is no game for am¬
ural gas.
That is
ateurs, and it warrants the hope
of high reward to the successful. prevailing heavy
whether the Commission has jur¬
isdiction
enormous
it is
Pe¬
natural gas.
whether
wouldn't know.
brought
Phillips
against
the
and
exploring for oil and
sults of
Thereafter, the Fed¬
eral
New York City area at about 29
cents.
The gas transmission com¬
some
business
tionable
1950,
but vetoed.
in
using other people's money in the
attempt ; to get rich out of oil.
Counting everything, it is ques¬
by
producers other than transmission
companies.
The Kerr Bill was
passed
Pied
spent
by
unsuccessful
wildcatters
and
the
promoters
Com¬
producing
natural
of
of
amounts
meaning of the Natural Gas Act
by definitely excluding jurisdic¬
tion
variety
cluding the 9/20 of one cent per use of Gulf Coast gas at locations
degree to the
Mcf gathering tax just enacted in near the
search for oil.
producing fields for in¬
The profits of the
Texas which must be paid by the dustrial; fuel
and
as
the raw
large oil companies and the suc¬
To yield a material for the manufacture of
cessful discoveries by independ¬ pipe line companies.
6% return the cost of transporting
ents
are
many
new
chemical products.
colorfully overempha¬
through large lines at high load These Southern industries and
sized by the public.
But no one
factors approximates 1.4 cents per uses are
increasing rapidly. If gas
hears
much
about
the
failures
jurisdiction, the
any
this
Mr. Hoover's statement may be
applied
Bizley-Moore Bills were brought
before Congress in 1947, followed
by the Kerr Bill introduced in
to
for
Piper."
regulated
(1381)
CORPORATION
38
The Commercial and Financial Chronicle
(1382)
Continued
from
in which
23
page
Economic Freedom
church
of
approach the problem
we
vs.
Many people abroad, we are
ture.
own
your
that
believe
we
rich,
Economic Security
the
America
is
a
or
right
the
even
must
told,
to
Every public job is supported by
quests.
dollars taken from taxpayers. Who
would be the taxpayers? Corpora¬
Public
and
progressive
the standard of
prosperous,
Utility Securities
nation, in which
living increasingly improved from
one
generation to another be¬
the
cause
system
free
of
By OWEN ELY
enter¬
with its regard for hard
thrift, is fundamentally
sound, then let us do something
Long Island Lighting Co:
prise,
work and
have
food
because
without food in the stomach the about it to stop the increasing
Figure first the cost. For any mind cannot function clearly, and trend toward regimentation under
communism might be the choice the
promise of the demagog and
government to attempt to provide
such a thing would not only bank¬ of these people. We are told that politician that we will have secu¬
billions of dollars must be loaned rity
when we reach the other
rupt the nation, but it would also
or
given
to
certain
European shore—but with an empty purse.
completely destroy* business and
countries. Again I do not question
Is it necessary to trade oppor¬
free enterprise
by taxation and
the propriety' of these
requests. tunity for security? Must we thrown
would send its people into slavery.
Our
Congress
will answer the away our heritage as Americans
All that a government spends
question for you and me. But let in order to have security?
must
eventually be recovered us
be honest with the American
Gentlemen,
you
are
thinking
through some forrrl of taxation.
people in considering these re¬ men. You accepted as a heritage
choosing,
worship?
Thursday, October 11, 1951
..
in our everyday manner of living.
If
attend
.
of
fruits
the
labor
of
previous
a
Vice-President
Co.
gave
Our
G.
Olmsted
before
the
of
Island
Long
Luncheon
Forum
Lighting
of
the
New
York
Society of Security Analysts. He stressed the rapid rate of.
growth on Long Island, where population has gained 50% since
the
One-third of all
war.
York State since the
company's
war
territory."
new dwelling units constructed in New
(including apartments) have been in the
Revenues
about doubled since 1945.
the
of
Long
Island
have
system
Net income
on a pro forma basis is not
available for the year 1945, but the latest
figure (for the 12 months
ended Aug. 31) was $4,320,000
compared with $1,870,000 in 1947
and $2,502,000 in 1946.
There has been
;
taper
off,
more
new
the
friends abroad cannot eat
generation. With that heritage was
dollars. They want our food and endowed a
responsibility to pre¬
tions, you say. Where would the
supplies to help them get on their serve that which was given unto
capital for business come from ex¬
feet.
We are told perhaps 15 to
you, and an obligation to pass it
cept from the government, for
20 billions of dollars may be re¬ on to the
succeeding generation
certainly no other person would
quired.
with some contribution by your¬
have the need to save capital nor
toward
an
ever
Where does that leave the for¬ self
increasing
the incentive to invest it in such a
gotten man and woman of yester¬ standard of living as the American
nonprofit business.
day who by hard work and indus¬ way of life.
America grew
strong by the
I shall close with a quotation
try
accumulated * a
reasonable
toil of our people. But there must
amount
in
savings
for today? entitled:
be an incentive to toil. The incen-•
Many of these* people invested
tive is profit, and profits saved
CREED OF LIFE
their savings in the safest invest¬
and invested in capital goods cre¬
ment in the world—United States Isn't it strange that princes
ate wealth which constantly im¬
Government bonds—which have a
and kings
proves our standard of living. Our
And clowns who caper in
top interest .rate of 2lk%, fully
people under a system of economic
sawdust rings
taxable, which interest, when re¬
freedom prosper to the degree of
lated to price of food and necessi¬ And ordinary folks like you
individual initiative, ability, and
and me
ties of life, has depreciated to a
desire, until we as a nation are
Are building for eternity?
looked upon as the rich uncle of very nominal yield, and may ne¬
cessitate the sale of principal.
the world.
To each i$ given a bag of tools
Now there is no reason why one
An hour-glass and a book
The Present Picture
should object to living up the
of rules
What has happened? The two principal. Death taxes will con¬ And each must build ere his
Robert
recent talk
a
some
thought that this rapid
Olmsted
stated
that
the
obtained
eight months of 1951 than during
caped by lack of materials, though there has been
in
growth would
company
Residential and commercial building has
apparently builders have not thus far been handi-
well;
up
Mr.
period of 1950.
same
held
but
customers in the first
tightness
some
mortgage funds.
New building is expected to continue
three years at a
fairly good rate despite the defense
or
over
two
program.
Industrial consumption of electricity has never been
large on
Long Island, but gains in industrial revenues have kept pace in
recent
years with the increase in residential; a large number of
one-story factory buildings, mainly for defense industries, have
sprung up on the Island, such as the group now
being built on the
site of the former Roosevelt Field, practically in the center of
Nassau County.
Long Island Lighting's electric residential
kwh.
per
in
comparable
rate
the
months
companies
been
has
12
reduced
in
ended
Aug.
31)
similar high-cost
about
20%
in
five
rates
are
areas.
years
(3.57 cents
lower
than
The
and
for
average
5%
in
one
Long Island's present electric plant capability is 357,000 kw.
and it is planned to increase this by over 100% in the next four
year.
adding about 100,000 kw. per annum." The company is inter¬
connected with Consolidated Edison and last year sold that com¬
years,
pany about 100 million kwh.
,
world
wars
destroyed
within
vast
a
one
generation
amount
of
our
it if
sume
he does
does not know how
national resources, production and
live and which will
savings. We got heavily in debt—
his money or
some
that
to
statements have been made
total debt is about
our
our
total
resources
I
—
not.
his
But
one
run
out
first,
life.
Road to National Socialism
These conditions make for
don't
a
tile field for the doctrine of
fer¬
think any one knows exactly.
We made mistakes during the
20's which we magnified during
nomic security. Young people see
what tragedy has befallen their
the 30's
elders.
in
an
effort
Taxes have become
destroy in
to
so
correct.
large
as
to
instances the in¬
centive to produce, thereby de¬
stroying the source of new savings
some
A
stumbling block or
or a
stepping stone.
What
*
equal
the
will
provide
for
confuse
of
far
for
savings after taxes
are
gas, but in the later half of 1952 content will be
raised to about 1,000 btu in an area comprising about 85% of the
whole territory, but only one-third the number of customers.
stepping stone
Results will be studied to
economic
or
Competition to produce shifted
i
to competition to purchase.
Higher
on
able
result
of
a
Security Dealers
26th Annual Dinner
company has been able to burn
in its electric plants.
fuel
Association
which will make deliveries
in real wages.
Then another competitive factor
On the demand side enters the
pic¬
—
are
Italy, Germany', and
striking examples.
The
issue
between
economic
freedom and economic security is
not an issue upon which we in
America ballot at the polls, but
rather
choice by
of
one
the way
Lloyd
E.
on
betkin
of
Se-
Chairman
the
of
Municipal Finance
As Consultants
structive
on
Municipal Finance
planning service for Cities,
render
we
a
States and
other
Vice-Chairman;
A.
M.
assistance
in
Jr.
Leslie
the
This service
includes
development of plans for
experienced
financing,
new
of
be
Barnes
&
Co.; Harry
MacCallum &
d'Avigdor of
d'Avig-
of
John
J.
O'Kane, Jr. &
Kumm
Paul
A.
of
Dunne
Mr.
Co.; J. *
&
Co.;
Gammons
Gammons &
of
Bradley,
Co.; John, J. Connell
financing of self-liquidating projects, and financial
relations.
SECURITIES.
We
WE
are
DO
debt
structures,
NOT
BUY
OR
SELL
pleased to cooperate with finan¬
cial institutions and investment
houses.
>
Charles
E.
Stoltz
of
C.
E.
shares,
fWainwright, Ramsey & Lancaster
70 Pine Street
New York 5, N. Y.
Telephone WHitehall 4-3540
for
Irving S. Wynn
Co. passed away Sunday, Septem¬
ber 23rd after a long illness.
on
year,
an
The company will benefit next year
by removal of the
electric
energy.
These factors may improve the
increase in the dividend
from
the
chances
present 80-cent rate in
1952—some Wall Street interests had
anticipated a $1 rate
originally.
Relations with the New York Public Service
Commission
are
considered good.
to
Irving S. Wynn who was for¬
merly a partner in M. S. Wien &
sharp rise in federal taxes. By the end of the
>
Stoltz
Co., Inc.
and the
estimated, earned surplus will have increased from $1 million to
tax
Co.; James Durnin of H. D. Knox
&
Olmsted forecast share earnings for 1951 at about
$1.19 '
as in
1950, despite a one-third dilution due to increased
next year.
George Collins of Geyer & Co.,
Inc.; Stanley L. Roggenburg of
Roggenburg & Co.; Herbert Singer
of Singer, Bean & Mackie,
Inc.;
same
$4 million. The debt ratio will have been cut from 70% to
61%%,
and it seems rather unlikely that taxes will be
increased again
Robert M/Topol of Greene & Co.;
public
existing
the
he
of Amott, Baker &
Co., Inc.; Elbridge Smith of Stryker & Brown;
of
as
dor Co.; Irving L. Feltman of Mit¬
chell & Co.; John J. O'Kane, Jr.,
planning
reorganization
>
units.
Capital ratios, after the current financing is
completed, will
follows: 52% mortgage bonds and 9V2%
debentures, making
total debt 61V2%; preferred stock
6%; and common stock equity
32V2%. During 1951 the
company will have added $5 million debt,
$10 million preferred stock, and about $20 million from two
sales
of common stock, thus
substantially improving the common stock
equity.
Hanns E.
Richard
Kidder
Wm.
governmental
include,
Kuehner of Joyce, Kuehner & Co.,
Co.;
con-
security issues.
Lawrence C. Marshall
of
committee
MacCallum,
Municipalities
(depreciation, amortization and retained earnings)
leaving about $100 million new money to be obtained through
Other
of
to
internal sources
Com¬
members
A Constructive Service
cash, which will take care of this year's remaining
requirements and leave about $2 million for next year.
During the
three years 1952-54 some $20 million cash will be
available from
Annual
Dinner
the
on
S15 million in
Co.,
&
mittee.
Consultants
of 1954 (87%
Lu-
betkin
reliable.
Long Island's construction program between now and the end
electric) will require an estimated $136 million. The
company's current proposed financing will give the company about
by
Lu-
ligman,
Narrows,
more
one time Consolidated Edison had a
plan to obtain control of Long
Island but this did not
materialize, and while it has been rumored
from time to time that new plans were under
way, Mr. Olmsted
stated (in reply to a question at the
Forum) that he did not know
of any recent developments in this, connection.
Waldorf-As¬
nounced
Russia
as
Brooklyn Union Gas had been considering purchase of Long
gas properties but the two companies could not get to¬
gether on terms and the deal has apparently been abandoned.^ At
to
without
of it during the summer
Island's
be held at the
toria Hotel
some
Eventually they
may go over entirely
to natural gas, but at present no more
gas is obtainable from the
South, and in any event they wish to await completion of another
loop line connection to Brooklyn Union Gas, across the
C.
Friday, Nov.
9,
it
is
an¬
recently
should be
will double the capacity
pipe lines and permit taking on additional business at low
investment cost. Current savings on natural
gas are estimated at
$2.5 million per annum. In addition to using gas for
mixing, the
wages were demanded, increasing, omy leading to national socialism.
the money required to purchase Ancient Rome, Greece, and—more
increasing production of
goods wanted, resulting in further
increase in prices, a decline in the
value of the dollar—a reduction
richer gas
remaining two-thirds of the customers.
of the
Lawrence
with the inevit¬
controlled econ¬
how-soon the
N. Y.
the
The increase in btu content of the
gas
the
government,
see
extended to
eco¬
pendent, while the latter encour¬
ages people to become dependent
air, producing mixed gas with flexible btu. Thus
mixed gas has had the same 550 btu content as the old
manufactured
f
paid.
this
a
obligation
of
the
Marshall, Presi¬
people in a free capitalistic so¬ dent of the Bank of The Manhat¬
tan Company, will be the
for investment in capital goods. ciety to accept social responsibil¬
guest
Prices became distorted and in¬ ity with the ideology of economic speaker at the 26th Anniversary
Dinner of the
creased to a level that the ex¬ security under governmental con¬
change of labor for goods through trol. The former encourages people New York Se¬
self-de- curity Dealers
the medium of money leaves very to become and remain
little
This is used in the modern catalytic gas plant to mix
security?
government to
people.
Do not
the
your
be: economic freedom
They are taught that it is
function
35 million cf.
with steam and
time has flown
long he will
span of
The company began to obtain natural gas from Transcontinen¬
tal Gas Pipeline early this year, the
daily amount since April being
The Commission recently permitted the
company
transfer $3 million (about 90 cents a
share) to earned surplus
from the depreciation reserve, which the
company at the time of
the merger had
claimed to be excessive. Mr. Olmsted estimated
that earnings for the calendar year
on
the rate base.
tended
Rates
are
still
on
1951 would approximate 6%
an
interim basis but
recently for six months, to March 31, 1952.
* a
were
„
*
ex¬
M
Volume 174
Number 5054
.i Continued
pom first
.
.
.
The Commercial and Financial Chronicle
(1383)
else the. difference is borrowed from bona fide investors
page
who will not expect
We See
As
cash
It
A
And
it
happens that
that matters will be
Wolf!"
of those who are en¬
deavoring to persuade the rank and file to "save" and buy
savings bonds, or to take such other stops as may, in the
judgment of the authorities, be in keeping with the needs
of the time, find themselves in the position of having
cried "wolf" so often that the public is now indifferent.
What the next year will bring forth in respect of such
matters as these we leave to the prognosticators. The fac¬
tors involved in arriving at a definite opinion concerning
this matter are numerous and complex; some sort of a
conclusion is a necessity for manj businessmen who must
now
as
always plan ahead. We have no disposition to
make light of the matter.
What does interest us even more, however, is the ques¬
tion of what this country and its economic and social life
are
going to be like when all this titanic effort to have both
guns and butter in large quantities during the next year
or two is over.
As practical affairs are now shaping them¬
selves, there are without doubt several dangers confront¬
ing us which are not encompassed in arguments or studies
of the probable course of events during the next few years.
Two of the most noteworthy of these, it seems to us, con¬
cern the value of the dollar and the degree in which the
traditional institutions of this country will survive the
so
of events
course
We are,
that the
of
as
now
course,
laid out.
that it is still possible
aware
of rearmament may not
reach the propor¬
tions predicted for it, or that the rate at which it is at¬
tained will be substantially slower than the authorities
have been planning. It is likewise evident that estimates
of tax receipts have not been very good. One must accord¬
ingly reserve judgment as to whether some of the things
now forecast for the next year or two will actually mate¬
course
But there
rialize.
be
can
doubt at all that rearmament
no
are now large
little less than certain that
expenditures
a
are growing. It is only
such a program progresses
further, shortages of certain key materials which are es¬
civilian production will
It is likewise evident that as yet,
any rate, the rank and file are not very much inclined
buy additional savings bonds. And one must suspect
at
to
that there is
tax
politicians
can
inclined to
seem
by the
means
which the
use.
the
further fact
Washington has its
were
no
the
as
those which
Marks
&
Co.,
on
for two
of such
tinued, the
more
years
or
A
group
headed
Stuart
&
Co.
Inc.
$10,000,000
first
by
Heyden Chemical Stk.
Halsey,
at
102.31%
The
accrued
group
of record Oct. 4 the right to sub¬
on
Net
the
bid of
a
will
construction,
sion
and/or
of
Oct.
of
sale
used
be
completion,
company's facilities and in part
to liquidate any short-term bank
loans used for such purposes. The
estimates
company
additions
property
ments for the
that
of
stock
common
held.
which will
has
been
formed
the
Ohio
Building.
Erbee
Leonard
Becker
G.
Co.
&
Inc.,
and
R. W.
Pressprich & Co.
The new preferred is conver¬
tible prior to Oct. 20, 1961, into
gross
stock
common
better¬
and
shares of
months of
last five
shares
Corporation Formed
TOLEDO,
Ohio — Stranahan,
Harris & Co., a new corporation,
A.
the
of
New Stranahan, Harris
expire Oct. 18, is underwritten by
a
banking syndicate headed by
exten¬
improvement
new
pre¬
stock
The subscription offer,
the
for
of
second
(no par value) at
$100 per share at the rate of one
share of new preferred for each
20
the
from
shares
53,300
cumulative
ferred
the
on
sale
to
$4.37 %
101.0859%.
proceeds
bonds
scribe
interest.
award
won
bonds at competitive
8
customers' broker.
as
fering to its common stockholders
bonds,
Telephone Co., Ltd.
and
of
1951 and for the year ending Dec.
at the rate
The
stock
new
redemption
to
of four
for each share
common
preferred.
subject
31, 1952, will amount to $9,944,000
is
beginning
$28,543,000, respectively. The March 1, 1962, for the sinking
is engaged in the largest fund at prices ranging from 102%
construction program in its his¬
to 100.
tory and it is expected that addi¬
The net proceeds will be applied
tional capital funds will be re¬
toward carrying out an $8,500,000
quired.
and
we
say
the
more
The bonds may
prices
ranging
be redeemed at
expansion
to
105.31%
from
double
par.
Associated
provides
antibiotics
in
in
Southern
increase
certain cities and communities
nia.
At
and
July 31,
and
12
1951
company's
had
derivatives
The
of
backlog
plants
away some
a new
Bancroft,
President;
Marryott, Oscar W.
Frank E. Keene, and
Orville W. Desmond, Vice-Presi¬
dents; and Wilfred H. Schliesser,
I.
Hirscheld,
Secretary.
Ross Harris and George S. Wade
who
were
associated with
ada in
a
formaldehyde
joint venture with Shaw-
CHICAGO, 111.—Stone & Web¬
Securities
ster
Clark Street,
with
them in
Mr.
Boland
(Special to The Financial Chronicle)
N. C. —W. M.
Archer, Jr., and Theodore P. Van
Zanten
with
have
Building.
Ponce, P. R.
Rico
San Juan
Santurce
Arecibo
during the interval between
Guayama
Caguas
ditions under which he lived
Arroyo
Cabo Rojo
Utuado
Aibonito
the end of World War II and the
the
beginning of the Korean
Agulrre
Cayey
conflict, and compare them with even the inter-war years
of the 'Twenties, to realize what war does to the ways
life of
peoples.
If
we are
of
now
it will be
—or
Telephone:
expected to be—without serious further damage
to the American way
of life
153
an
alertness and
an
under¬
some
in this
fathom, and which
country sufficient to
program,
arms,
and
we
can
a
cost of
an
carry
Consider
escape
carry
aid program
export,
an enormous rearma¬
We
credit financing.
handling
transactions.
Agencies are fully equipped for the
import
and
interstate
banking
CAPITAL AND RESERVES
Over
$4,000,000.00
Obviously,
laid in amounts sufficient to cover the
consumer, cannot
all
abroad which includes
ultimate inflation in such circumstances
are
of
rate of activity
producing those things which the private economy,
including the
Rico.
Our New York
within them the
a
high scale of living here at home.
only if taxes
Puerto
facili¬
collection of their export
specialize in the handling of
and efficient
purely economic questions which
possibilities of serious trouble.
ment
on
prompt
collections and commercial letters of
are
difficult to
the
for
bills
present moment.
are
DIgby 4-1140
116th Street
cordially invite the Trade and Banks to use our
We
ties
standing which the rank and file do not display at the
But there
East
shall be fortunate indeed
we
the result of
Agencies
51 Broadway
period—assuming it is to be something approaching what
it is
York
New
able to survive this rearmament
buy and does not want, or
ilit
MEMBER
FEDERAL
DEPOSIT
become -associated
Harris, Upham & Co., John¬
con¬
eye
Chicago office.
formerly with
CHARLOTTE,
inevitably strike
with his mind's
run over
the
was
33 South
that Ray
associated
Blyth & Co., Inc.
BANCO DE PONCE
Puerto
Corp.,
announces
H. Boland has become
ston
inigan Chemicals, Ltd.
$2,290,270.
Ray Boland Joins Stone
& Webster, Chicago
of the liberty to which the people have been
only to
Stran¬
ahan, Harris & Co., Inc., are now
with the new corporation.
With Harris, Upham Co.
J.
pentaerythritol plant in Can¬
and
Branches in
One has
in
are
M.
accustomed, and it is very, very difficult ever to restore
it.
offices
Officers
at
expects to invest
company
$1,000,000 in
months ended July
at
and Fords, N.
tele¬ Garfield
451,175
a
production facilities for.
toluene
the com¬
31, 1951 the company had net in¬
of
to
for
pentaerythritol," formaldehyde and
Central Califor¬
serving
was
phones
the
at
facilities
Co., Ltd.
telephone service Princeton, N. J., division, and to
Telephone
local
intended
program
production
reconciled they become
Such programs as these almost
to them.
with
company
accustomed the rank and file become to
more
City,
Exchange, announce that Walter
Streng has become associated with
of-, them
is
Corp.
offering
on
mortgage
3%%, series G, due Oct. 1, 1981
of Associated
Chemical
Heyden
things that the longer controls are con¬
them—or should
York
Gilchrist, Bliss & Co., 488 Mad¬
ison
Avenue, New York
City,
Now, it is the
ten.
New
Hanson, attorney for the IBA, will
be honored.
mainstay during World War II. And, of course,
go
nature
Cincin¬
President of the IBA, and Murray
really knows whether this rearmament business
one
is to
much the sort of controls
upon
the
on
members of the New York Stock
Offers Assoc. Tel. Bds.
come
mind set
at
Friday,
Oct.
26.
Laurence M. Marks, Laurence M.
Bankers Underwrite
Halsey, Stuart Group
For the
that
Cincinnati
of them.
one
25,747 unfilled orders.
More Controls
is
There
America
Gilchrist, Bliss Adds
pany
be raised
to be
Investment
of
their annual Fall Meet¬
Club
nati
are heard and
politician is the last to feel any inclination to resist
such pressure.
There are times in human affairs when
it is well to undertake a rather long look ahead.
This
definite limit to the amount of additional
a
that
revenue
ing, in
the
of
Association
will hold
prices, rise sharply demands for controls
seems
Group
Bankers
the
sential to both rearmament and
put in an appearance.
Valley
they have been handled in this way in years
past. The realist will expect inflationary pressures to rise
—and he knows that when prices, particularly consumer
and
as
CINCINNATI, Ohio—The Ohio
Pollyanna to believe
a
handled this time in this way any
than
more
many
well
Valley Group
Annual Fall Meeting
Long Look
But he would have to be almost
They Cried "Wolf!
IBA Ohio
rearmament ends.
as soon as
39
INSURANCE CORPORATION
40
The Commercial and Financial Chronicle
(1384)
Continued
from
page
Thursday, October 11, 1951
...
responsibility
3
the production
for
of the larger
and highly technical
military items be prepared to op¬
Canadian Securities
Defense
By WILLIAM J. McKAY
(2)
McColl-Frontenac
Oil, a
subsidiary of the Texas Company,
plan to ex¬
On Oct. 29th the Alberta Petro¬
Gas Conserva¬
leum and Natural
and the Union Oil Co.
its hear¬
tion Board will resume
six applications for permits port gas from Alberta to Montana.
natural gas from the
(3) The Alberta National Gas
Province. There is now every in¬ Co. has projected a pipeline from
ings
to
on
export
dication that at last a definite de¬
Trail, British Columbia, via Van¬
couver to the Pacific Northwest.
cision will be made that will have
influence on the
Dominion's natural gas industry.
a
revolutionary
As in the
has
conservative
Province.
of
port
mands
can
is
It
be
now
the
ex¬
made
transmission
for
of the border.
surplus
south
According to recent
estimates placed
before the Con¬
servation
Board
the
coverable
reserves
neighborhood
cubic
that
feet,
a
of
present
in the
now
are
re¬
billion
8,000
total almost double
indicated
the
at
St.
Paul
in
we
nation
the
Delhi Oil Co., a
efficiently
as
pos¬
as
couver
to Seattle and Spokane.
structed
dustry so that we can devote a
changing proportion of the na¬
effort to peace, preparation
tion's
for
or
war,
conditions
all-out war,
dictate. This
as
even
may
re¬
of natural
"scrubbing"
process.
They have large work forces and
established
peacetime
businesses
lines afford
1945
and
before the shooting had
stopped in World War II, General
Motors
the
made
following state¬
ment in its report
to shareholders
a relatively cheap and
for the year 1944:
;
highly convenient means of trans¬
"It has been well said time and
portation especially in a country
between the many U. S. and Cana¬
such as Canada.
It can logically again that we must win not only
dian contenders for the right to
the war but the peace. The win¬
be anticipated therefore that in
export gas from the Province. The
the immediate future there will ning of the peace might be de¬
principal interests involved in the
fined as the development of ways
be intense activity north of the
undermentioned pipeline projects
and means to insure over the years
border directed towards the dis¬
are the following: (1) Prairie Pipe
to come our economic, political
Lines Ltd., which is affiliated with covery of new sources of natural and
personal freedoms. The elimi¬
gas and the construction of oil and
the
Pacific
Northwest
Pipeline
nation of armed conflict is funda¬
gas pipelines.
Corporation, a subsidiary of the
mental in such a concept.
How
During the week both the ex¬
Fish Engineering Corporation of
ternal and internal sections of the successfully that objective can be
Houston, Texas. In connection with bond market were
accomplished we do not know,
subjected to
The
has
a
to
Alberta
make
government
its
belated
now
choice
proposed line from Texas to the
Pacific Northwest including
Van¬
couver, it is also planned to run
a
continued pressure arising from
liquidation of previous holdings to
make way for the mounting vol¬
ume
feeder line to tap Alberta gas.
of
recent
Canadian
hand
was
new
dollar
The
issues.
other
the
on
distinctly firmer despite
the imminence of the Nov. 1st
CANADIAN BONDS
ma¬
turity of the Dominion 1%% notes
which are, or have been, widely
held by U. S. short-term investors.
The
principal feature of the stock
was
the strength of the
markets
Government
Western oils which reached
a
new
all-time peak. Confusion regard¬
ing the effect of the new Canadian
regulations concerning the mar¬
keting of gold was reflected by
the irregular movement
of the
gold stocks. The performance of
Provincial
Municipal
Corporation
the
was
industrials
and
base-metals
also mixed although C. P. R.
still continued in popular demand.
To Be
Nielsen, Gordon Co.
Effective Oct. 15, the firm name
of
Nielsen, Gordon & Hall, 120
Broadway, New York, members
INCORPORATED
of the New York Stock
will be changed
don & Co.
On Oct.
Two Wall Street
New York 5,N. Y.
WORTH 4-2400
NY
;
partnership in
-.V,.; ^'.V.'
Wade Bros. Admit
the
face
that
to
power
strive
with all
end.
realities,
If
we
our
are
to
and not take
being caught
another
chance
'too
with too little,' we must
late
on
learn from present
reverse
the
our
concept
prewar
importance
paredness.
experience and
.
.
of
as
military
to
pre¬
.
the
peace,
move
continue
must
we
to
forward by maintaining for
part¬
for
the
vision
and
of
them
by
its
Such plants as
the Ford Motor
Company at Willow Run, the big
engine plant built by the Chrysler
Corp.
in Chicago, the bomber
plant built in Cleveland by the
shooting stopped.
the
built by
one
Curtiss-Wright plant
the aircraft engine
the
Motors,
in Columbus,
plant near Chicago, built by the
Buick Division of General Motors,
with hundreds of other
built for war production,
along
plants
all turned back to the gov¬
were
of thousands
Hundreds
ernment.
of employees
through
government,
agencies,
who worked in these
would
such agreements foil
(1) Decide that
we
need
a per¬
manent national defense program; (
(2) Recognize that manufactur¬
ing industry is
elements
must be
to
one
such
of
a
of the major
and
program
kept prepared at all times
produce military equipment to
the
latest
specifications
signs and,
quate quantities to meet full war
requirements;
Provide legislation such
(3)
time
contracts
fense
between
the
the
for
for
used
of
production
be
to
facilities
manufacturing
cess
be required for war produc¬
and
the
to
which
will
also
permit
extent
possible utilization
dual-purpose plants and facili¬
The
majority
great
"America
did
not
could not make last¬
...
ing peace." In line with national
policy, manufacturers converted
their plants and
time
production
sible.
War
facilities to peace¬
as quickly as pos¬
production orders
were
canceled, and practically all mili¬
tary production stopped.
Our
peace-loving nation turned from
war
and
planning for war to
peacetime pursuits.
Americans
acted
as
been
forced
have
for
had
peace
there
and
would
Now world
be another war.
events
that
though world
assured
never
realize
to
us
indefinite number of
an
preparedness must be a
tinuing policy for Americans,
con¬
years
We know
now
equipped the
that these
which
companies
built
and
war
made
the
duction effort that
great
pro¬
contributed
to
victory, again face the obligation
necessity
of
accepting
their
all
at
in
times
interests
the
stable
employment.
These
points
entirely
not
are
and serious efforts have been
made to
accomplish in part
of these
larly
in
the
a
some
objectives, particu¬
last few years. We
same
have
now
unified National De-1
fense
Establishment, a National
Security
Resources
Board,
the
War
Munitions
other boards.
have
zens
in
Board
and
many
Many patriotic citi¬
accepted appointments
establishment,
defense
Our
Much progress has been made, but
the most fundamental and prob¬
ably the most important element
of
sound national defense pro¬
a
has not yet been provided
gram
for.
The most
important element in
industrial
defense
plan must provide for the imme¬
adequate
an
diate
same
plants in World
War II and which along with their
and
ties
new
share Mr. Hoover's conviction that
as
may
tion
military
materiel.
and
custody
maintenance of such special or ex¬
of maximum production and
have
de¬
departments and industrial
concerns
plants, the re-employment of the
workers or recognition that such
again
as
be required to permit long¬
may
or
might
de¬
and
short notice, in ade¬
on
plants were laid off. There was no
definite plan for the use of the
plants
,
to be time for
appear
this country to;
Division of General
Body
Fisher
the
defense
with these
manufacturers for preserving the
possibility of this type of dual
operation for at least 10 years and
war
on
promptly turned back
government
when the
were
the
to
by
three
same
understandings should be worked
out
super¬
manufacturers
various
operated
work
of
account
these
Definite agreements and
industrial
of
employment
labor
with
experienced
vision
and
management
normal
location
military
and
in
super¬
its
in
type of
a
production most closely
peacetime produc¬
can
only
be
done
associated with
tion.
This
through the medium of dual-pur¬
plants. Since
pose
a
good defense
plan should also provide for main¬
between
load. They again face the neces¬
sity production-wise of being able
to move quickly and effectively
taining commercial production at
the maximum level possible at all
times, we must be able to produce
in the event of
our
the
services
armed
and
industry. This calls for unceasing
application of the day-to-day de¬
velopments of science and indus¬
try
to
the
materiel
facture,
shall
tion
improvement of
methods
and
so
ever
of
war
manu¬
that American industry
be ready to set in mo¬
quickly,
if needed, its vast
production for war
minimum changes in plant
and machinery.
The cost of
with
.
the
in
war,
.
in human
life and
also
material
values, might have
been importantly reduced and the
war
shortened
are
of
we
had
been
not
war
minded.
worsening world
If
we
must
have
an
adequate
and flexible mobilization plan for
indefinite
an
velop
normal defense requirements
with
preparedness
"with minimum changes in plant
and machinery" that I want par¬
ticularly to emphasize tonight.
ways
period,
and
we
means
a
minimum of dislocation of
commercial
must
production
to
commercial
for
completely
tion of
a
considerable de¬
indefinite
war
cannot
nor
any
all consumer
be
stopped
it
of
for
to meet
an
purpose
plants might well be
producer goods normal to
either
defense
production
conversion of our
economy.
the
and
a peace¬
We cannot afford
time
or
money
inci¬
dental to the acquisition of facili¬
an
period of time.
military materiel with the
production facilities required for
consumer
we
totally eliminating
production. Even in
of total
case
production
inte¬
and
without
gree
the
production,
be able to expand defense
must de¬
grating capacity for the produc¬
time
necessity for maintaining in¬
dustrial and
military prepared¬
ness.
Therefore, some t (12 years
for
a
It is this matter of
the
plan the
defense
situation.
In the past we have not even felt
and
the
the manufacture of
if
better prepared."
facilities
nership.
flexible for
purposes.
production
ago
Co.,
this objective, and existing
facilities,
as
they
are: : partly
changed to defense production,
should be organized so that they
several, generations if necessary.
Problem
Following World War II the fa¬
built
constructed
be
with
It
cilities
should
for renewing
Conversion
civilian
defense and essential
share
will admit Edward Modet to
&
what has hap¬
for
preparedness equally close liaison
when we realized the ^possi¬
bility of becoming involved in a
rapidly spreading war we were
forced to feverishly construct new
Bros.
experience in
our
II and
employees
"After the war, if we are to win
60 Beaver
Street, New York City, members
of the New York Stock Exchange,
Wade
Boston 0, Mass.
must
we
Americans
18, Arthur J. Kennedy
will be admitted to
the firm.
Exchange,
to Nielsen, Gor¬
1-1045
JFlfty Congress Street
but
.
*
profit by
Solving
powers of mass
CANADIAN STOCKS
A. E. Ames & Co.
must
items the government under the
military
the past two decades of the nat¬ exorbitant in cost, disruptive to
ing 500 billion cubic feet. Unlike
the gas produced in the northern ural-gas industry in this country the civilian economy and may not
to appreciate the vital importance be
adequate in time.
regions of the Province the type
of gas found in the south is of the of the development of the Domin¬
As long ago as the spring of
resources
country cannot
afford to repeat this mistak%. We
production,
program
are
since.
contribution to this total viously overshadowed by the spec¬ equipment, indicates t hat the
tacular growth of Western oil, it country has not had an adequate
lias been provided by a Canadian
now appears that searoh for stra¬
or
practical industrial mobiliza¬
newcomer in
the field, Britalta
gas is tion plan since the end of active
Petroleums Ltd., whose new field tegically located natural
The current emer¬
in the Many Island-Medicine Hat likely to take pre-eminence over war in 1945.
oil.
It is only necessary to con¬
gency
is again being met with
area of Southeast Alberta has al¬
sider the tremendous growth in emergency
measures
which are
ready estimated reserves exceed¬
ion's vast
con¬
The
pened
A large
gas.
variety
which can
be
Not only is natural gas the cheap¬
immediately piped without the
est basic fuel but it also has mani¬
necessity of the otherwise expen¬
fold other industrial uses.
Pipe¬
sive
production.
between industry and government,
especially on the part of those es¬
Southern
"sweet"
facilities
great expense in the
World War II period largely liq¬
uidated or converted to peacetime
War
light to that may have to be curtailed in
Alberta, proceed with their programs, there varying degree to make way for
is little doubt that Canada is on defense or war production.
which are conveniently located for
the threshold of an era of dynamic
The current experience of Gen¬
eventual export
to the United
development of her erstwhile Cin¬ eral Motors Corporation, in re¬
States, alone account for 800 bil¬
derella natural-gas industry. Pre¬ establishing production of military
lion cubic feet of new reserves.
in
special
World
technical
the
at
kind of cooperation
new
a
Recent dis¬ eventually given the green
ment of the hearings.
coveries
the
flexibility in our economy and in¬
highly
Whichever of these interests are
country to defend itself, but
our
find
(6) The Westcoast Transmission that are now necessary to victory
Co., backed by Pacific Petroleums, in war. These manufacturers are
Sunray Oil Co., and Tide Water the ones who have contributed so
Associated Oil of California, have much to our high standard of liv¬
in mind a pipeline which would ing and who have great responsi¬
run from Edmonton, through Van¬
bilities in our peacetime activities.
commence¬
war.
Now,
after the shooting
stopped in World War II, we again
face
the necessity
of preparing
years
for
ways:
total
war
production,
or
for
total
civilian
production." New plants
now being constructed as part of
combined
required in all-out
sible. We must have the maximum
Texas, proposes to construct a tablished manufacturers who must
pipeline from
Calgary which assume t h e
responsibility
for
would eventually serve Toronto prime contracts for the larger or
and Montreal.
be
three
in
used
which
plants
dual-purpose
be
can
peacetime facilities to what would
There is only six
unknown.
added reason, therefore, why
must utilize the rsources of
quires
(5) Canadian
evident that proven
huge
&
•
subsidiary of the Delhi Oil Co. of
every
amply satisfied.
a
Minneapolis
Minnesota.
the
that domestic de¬
include
available
also
re¬
in
gas
has
it
assure
reserves
enormous
Before allowing
gas
effort to
the
natural
of
the de¬
concerning
of
velopment
sources
Winnipeg interests, en¬
visages a pipeline which would
serve
Winnipeg and Regina and
extremely
been
Western Pipe Line Co., con¬
trolled by
of oil the Alberta
case
government
(4)
that such a program may be
necessary are
an
The
nation.
industrious
and
ous
years
erate
Preparedness as a
Continuing Policy
The difference in time required
emergency
with dualmore
important than the final possible
saving in cost
of
ance
ment.
It
or even
dislocation
is
the avoid¬
of
essential that
employ¬
we
also
ties for the? production of military
materiel each time a war or threat
recognize that the time it takes to
go to war is no
longer the time it
of
takes to train
soldier, but rather
war
disturbs
us.
the
What Should Be Done
I
am
proposing that manufac¬
turers who
are
expected to
assume
time
it
a
takes
equipment and
to
produce his
Furthermore,
we
all know that stockpiling of
equipment and arms is a doubtful
arms.
yolume 174
Number 5054
-
.,
The Commercial and Financial Chronicle
,
41
(1385)
defense
because
measure
of' the
hundreds of thousands of workers
if the
people generally understand
ceasing technical develop- as shifts are made from one type
ment of military equipment. Such of production to the other. Dualtechnical
developments would purpose plants, while giving the
gradually affect production facili- nation the security that would reties but probably to no greater suit from the
ability to convert
degree than commercial produc- quickly from peace to war protion
time put
sound for all concerned.
not
could properly take up this dualplant idea, and by helping to establish it soundly and
promptly make a real contribution
the dual-purpose plant idea, they
will approve it.
I believe the suggestions I am
it will go a long way in providing
for continuing preparedness at a
never
facilities
being
are
affected
technological^ progress and
by
it
is important that improved manu-
.tfacturing techniques be applied to
production for peace or war. If
America has to fight we want the
duction, will at the
the
emphasis
on
same
peace,
They will avoid the
war.
and
expense
waste of building and maintaining
large plants planned only for war
production. They will avoid creat-
making
could be the nucleus of to the welfare
an industry preparedness plan that
will be practical, workable and
cess
of
ing and maintaining organizations
depend
government,
There
here
are
tion
large drawings
some
the
on
plant
men.
wall
showing how
a
be used for the produc¬
of jet engines and of auto¬
can
mobile
body stampings and what
portions of the plant would have
be
to
special
Also,
a
plant
could
for
each
purpose.
showing
drawing
be used
how
a
assemble
to
airplanes and automobiles and the
portions of the plant that would
have
be
to
special for each
profits would depend only
on war
Tellier & Co.
500
plan will, of course,
the full cooperation of
and businesses whose interests and
fighting
on
industry
Obviously,
_
we
are
__
country,
our
20
-
Alaska
and
of
creating
offering $299,-
are
Corp. 6%
debentures,
and-labor. series A, maturing Aug. 1, 1971 at
Interest on the debentures
faced with par.
for
Such
war.
American
our
plan
a
for
dual-
plants is consistent with
purpose
moting
of the important purposes
for which the American Ordnance
debentures will be used for work-
ing capital and for the expansion
Association was founded, it would
through seem to me that the Association
objective
world
sound plan
was one
of
peace
and
pro-
modernization
needs
company.
Dual-Purpose Plants Should Be
pur¬
.
J
.... „..
for
fices,
cafeterias,
hospitals,
locker
rooms,
plants, tool
power
maintenance
Of¬
purposes.
rooms,
rail¬
departments,
road
sidings,
parking lots
can
easily be identified as useful 5nd
necessary for both purposes. Cer¬
tain parts of a dual-purpose plant
such as the space and equipment
for testing jet engines can only be
used when jet engines are being
$100
before Aug.
or
thereafter, plus*
interest in each case.
Telephone Corp., with,
headquarters in Juneau, provides?
telephone and
utility
services ftv
the
Territory of Alaska. The convpany serves approximately 1,400
subscribers
in
Seward,
Haines, and
Negotiations are beingf
conducted
for
installation
of
the
in other towns or
soon
y,
as
acquisition
or
telephone systems
cities, which the>
company believes
as
Wrangells
£>kagway,
can
be obtained
the proceeds from the
financing
are
available. '
■
■
'
't«,
a
j
y" <
These
dual-purpose
plants
and be
part
a
AND TOYS
industry. Our estab¬
industry is a remarkably
lished
efficient
goods,
system
and
for
high
our
living attests to its
producing
standard
This system is essentially
an
terdependent
manu¬
network
of
in-
facturing concerns of all sizes
large, medium and small. As
matter of
fact, if it
marvelous
our
were
American
Today!
HH nil
MAf|||||CC
ijRflMll ANDlTIMVnillEp
of
effectiveness.
Tomorrow!
—
a
not for
indus¬
trial system,
presses
making large stampings
thousands of employees and their
foundations
for
each
including the larger
companies with their hundreds of
produced.
used
for
sill
of established
both
W
on
Part of Established Industry
should be operated
or
stock
con-
shares
Alaska
present
„
drawings also clearly
indicate the large percentage of
the plant area that could be used
either
the
of
time into
principal amount of debentures
They will be redeemable at any
strength and preparedness.
The
pose.
debentures will he
anv
common
Nenana,
available in $100, $500 Palmer.
jobs
em-
of
accrued
the necessity of developing some which are
for maintaining indus- an(* $1,000 denominations, is payployees whose job security .would trial preparedness. Since promo- able monthly,
depend on war or the preparation tion
of
industrial preparedness
Proceeds from the sale of the
production,
for hundreds of thousands of
new
1956 and at 105%
Telephone
convertible
year
The
vertible at
time at $110
Tel. 6% Con v. Debs.
the
for
of
Tellier Offers Alaska
I believe
cost which with good management
the nation can sustain. The suc-
newest and most effective weapons
our
purpose
Likewise,
the
and
heavy
could be used only
space,
for automobile
mass production accomplishments,
would not be confronted with
this defense problem. Stalin or
some other dictator already would
could he here.
production and would not be required in the manufacture of jet
engines. But a large proportion of
the
manufacturing
readily
be
space
available
made
either purpose, and
the
for
toelZiPeXrTr\aZtpes
could
in
moved
such
o"f
areas
Likewise, management employees,
skilled employees and
would
workers
available
be
transferred from
to the other.
If
such
production
immediately
could
and
one
readily
type of work
plant
t°„r stored in the
Hi®.JSea£fHuf
be
been
laid
of
out
war
that
area
had
especially for the
and processing
machines
that
equipment
tically
could
not
prac¬
possibly be converted to
production. Likewise if the
or
plant
used
entirely
for
production,
the
special
were
'civilian
system °P«ates equally well
firms
uct
producing
prime
are
those
finished prod¬
a
materials
suppliers
are
tractors.
while
contractors
furnishing
parts
Prime
and
subcon¬
and
contractors
have
the engineering and other experi¬
necessary to
tion
and
war
wc
production, the equipment special
kind
n remonstrated that
ence
dual-purpose
being used xui cm-uui
uenig
useu for
all-out
were
Wt:ie
be
il./,
a
World w
be
of
out
and
Subcontracting to Continue
necessary
tg
the
plan the produc¬
procurement
and
materials
of
The^
complete job.
the
all
required Tor
als0
un_
derstand mass production, inspection and
quality control, and have
the experience to use them effec¬
In particular, they
experience in dealing
tively.
had
subcontractors
^us
and
have
with
suppliers and
individual production fa-
cilities
and
experience
firms
many
can
of
these
best be used.
equipment for jet engine or air¬
The smaller manufacturers, and
craft production could be stored
those which are usually referred
in the hangars or in parts of the
to as subcontractors, will not usuplants that were special for war
ally have to g0 to ^ same length
production. Such plants could also
as
be used for simultaneous produc-
in
both military
tion of
and civilian
items. The job opportunities of the
employees working
would
be
such plants
in
protected,
reasonably
There would be
no
plants standing
idle without competent custodians
at times when
they
^he
dual-plant
efficiency
pends
operation.
Their
subcontractors de-
as
their continuing to
on
use
the equipment and know-how that
they have used s0 effectively in
their peacetime businesses. As a
not being matter of fact, most of them are
used
for
war
production. The
operating dual-purpose plants
ability to convert quickly to war now.
production would be preserved.
The government provision for
Of ' great
importance, also, the accelerated amortization would
properties could be quickly and seem to make
possible sound busi¬
and
flexibility
converted
back
ness arrangements
in connection
forth
from
one
were
the
to
purpose
other without great expense.
pose
During periods of limited defense production and as a part of
the
arrangement, the manufacturer
who
had
such
a
dual-pur-
pose
plant would have the obliga-
tion
of
maintaining pilot lines if
requested
date
and
of
keeping
up
to
engineering and processing of the military products he
on
scheduled
was
to
produce
if
a
large military program again became
If
necessary.
are
planned
—those
establishment
plants,
of
dual-pur¬
in spite of the rela¬
tively uncertain future. Recognition op the part of industry that
companies
heavy
or
capable
of
making
highly technical
terials will have to
war ma-
assume
respon-
sibility for doing their part in the
defense
that
or war
such
effort should
companies
were
mean
open-
minded to this dual-purpose plant
idea.
A recognition on the part
of
the
ence
instead of such dual-purpose
plants, separate plants
with
government
that
depend-
must be placed on such com-
panies and their employees for efficient military production, espedaily in the event of an all-out
producing war materials
exclusively and Those producing war, should leave the government
civilian products exclusively— open-minded in an effort to work
there is bound to be dislocation of
out
such
a
plan.
I
am
sure
that,
emphatically
It's natural for him to say
He may
decide
scientist
or
or
thought right
to
...
""76<m
<z*e
TMq 7«^"...
this, and he's the capitalist of tomorrow...
:M$&M
*
be tomorrow's farmer or clerk or business executive or mechanic
anything he wants to be. But that's not the most important
almost
now
.
.
This is...
iarge
primary contractors
providing for special facilities
and
This little fellow says
He
can
be the
capitalist of
tomorrow
because
our
competitive enterprise
system,
says he will be free to work where and when he will, to save, to invest, to spend.
He will choose his work for his own particular kind of satisfaction. He will save
for his
own
self-interest, but that helps everybody. He may invest to his own ad«;
vantage and that makes work for others. For there is now, and must continue to be,
incentive! An incentive that is realistic... that creates... that helps produce more.
We
at
Minneapolis-Moline hope to do business with this young American. We
help him grow... and in turn his growth will help our growth ... and our
growth will again create more and better opportunities for more people.
This is the chain reaction of good
living that the competitive incentive system
brings out. . . And our competitive enterprise system is the incentive system ... the
American way . . . WHERE ability and the willingness to work and to produce,
still earn a deserved dividend
WHERE competition stirs everyone to do his
hope
to
,
,
.
level best.
The world has
never known a better
system or plan of progress for all mankind.
guard this way of life ., our American Heritage. It's been mighty good
to a lot of people—and if we take care of it, the best is
yet to come. The most import¬
ant thing about America is that it is the land of
hope, of promise, and of progress
Let's
for
our
.
children.
Our part in the American parade of progress is the manufacture of a complete
line of Modern Farm Machines, Visionlined Tractors and Power Units for modern
farming and industry.
Sold and Serviced
by MM Dealers and Distributers Everywhere
INMEAPOLISMINNEAPOLIS
1,
IWOL
MINNESOTA
SI:
42
(1386)
The Commercial and Financial Chronicle
With Florida Sees.
Scudder,
and
(Special to The Financial Chronicle)
ST.
nard
PETERSBURG, Fla.
B.
Dunn
is
Mutual Funds
affiliated
now
with Florida Securities
Ber¬
—
WELLINGTON
has
Company,
been
the
Florida National Bank
Building.
Stevens
Clark
of
to
Axe-Houghton
;■
year
than
1,000
total
the
ending
number
a
Dr. Pierre R.
ministered Fund of Group Securi¬
ties,
with
60%
of
total
assets
invested in corporation bonds of
cial
Bretey, President of
the National Federation of Finan¬
close
Analysts
Societies;
Elmer
Walzer, financial editor of the
United
Press; Denny
Griswold,
highest rating, government bonds publisher of Public Relations
and
cash
and
40%
in common N§ws; and Guy Fry, past Presi¬
stocks of high quality on October dent of the National
Society of
Prospectus
your
upon
request
investment dealer,
national
research
120
No
preferreds
The
or
&
corporation
BROADWAY, NEW YORK 5, N. Y.
vested
lllllilMIIMIMIIMaMailllUUIMM
of total assets
in
sales
the
is
prospectus from
investment dealer
or
PHILADELPHIA
the
says
A
United
NOTE
sounded
States
and
OF
CAUTION
no
in
his
weekly report
erosion
has
not
usually do not undertake to
but the direction is toward
their
where
bond
certain
each
from
in
the
specific
security
in¬
INCORPORATED
BULLOCK
nounced
an¬
Monday the inauguration
shares
on
convenient basis. This
a
systematic
investment plan has
been cleared for use in most states.
Under the plan an investor may
'
3gtid a regular sumjnonthly, bimonthly, or' quarterly, to purchase
shares
All
of
Incorporated
dividends
will
Investors.
be
automati¬
cally reinvested if the investor
so
desires.
Bank
Trust
of
America National
and
Savings Association in
Los Angeles will act as
agent for
Established 1894
One Wlall Street
the
investor
Bank
credits
a-#—
from
payment
investor in as
fractional
Incorporated
payment
will
share
Custodian Funds
buy
at
the
the investor is
involved in the
operation of the plan.
Participation in
INVESTMENT FUNDS
investing their capital in
Company
Please send
your
ten
prospectuses
describing
Organization and the shares of your
Funds.
State.
plan
will
regular
handled
investment
dealers.
FOR
the
monthly to
reach the record total of
outstanding
represents
9,184,551
Sept. 30, last. This
on
an
increase of 1,064,389
shares
over
Dec. 31, 1950.
on
the number outstand¬
Fund
has
Sept.
on
the
grown
securities
in
30.
the
As
the
number
portfolio
Of
has
tax-free provisions of the income
tax laws
may pose a problem to
gift-minded persons who
concerned
to
with
their
are
ultimate
out
in
also
returns
beneficiaries,
points
Calvin
newly-
a
possibility that the beneficiaries
may be inexperienced in the man¬
agement of the gift
suitable
income
news,"
page
"many
so
further
that it will
stated, "Manu- •
showed a;
increase
from
the
cline.
showed
The ratio of
inventories has
90 to 55.
further de-
a
now
a
an
these
THE
EIGHTH
consecutive
independent
an
for
the
board
Financial
Securities
best
of
World
of
the
Series
to
fund
must
be placed
to
in
meet
order
the legal list in¬
on
used
front
sever-
of
investment .funds
bronze "Oscar of
the
Annual
Banquet
of
the
in
29,
Report
the .Grand
Hotel
Statler
York.
in
--V-V.;
than
5,000
(1) Registration
emption,
Investment
business
\
con-
'
»
activity; but
v
not
are
ordinary times, as
clearly indicated by the circumstance
of
that
24%:
after
even
<
;
decline
a
seasonally adjusted, in
they were neverthe¬
;
orders,
new
less higher than
shipments, so that
unfilled orders at the end of
;■
f
July
were#the highest
:
on
The survey stated
record.
!
that in ordi-
nary times there would be
I
danger
of
cancellations, but at present a
growing percentage of orders is 7
for
or
defense work or construction
other work connected with de¬
fense,
so
lical
indicators,
orders
that of these two statis-
vs.
would
be
:
new
under present circum¬
the
would
could
declining
high unfilled orders, it
seem
stances 'that
high
the
be
unfilled: 1
Which
one
■
expected to
!
provide the
indication of what is
most reliable
ahead.
1
.
,
v:
says,
EATON & HOWARD BALANCED
FUND reported net assets on
/'
Sept.
"As
result
(2) Authorization for sale irkthe
of
New
Hampshire
the
by
Insurance Commissioner.
(3)
least
The
10
must
company
years
old
and
assets of at least $10
(4) The fund
can
a
give
any
of
chemical.
ex¬
$33,000
away
In
portfolio
were
gift tax.
changes in the
tax
common
laws made in 1948 extending
'community property tax prin¬ EATON
ciple,' a husband and wife, either
be
have
at
net
million.
have
no
out¬
of whom have not
previously used
any part of the exemption, may
give his or her spouse $66,000 dur¬
ing the year 1951 without paying
any gift tax." It is explained that
the $66,000 figure includes
$60,000
Gift-Tax
Exemption
plus
$6,000
158,244
with
Dec.
on
"Exclusion" in future years, addi¬
textile,
tional
ural
the
continuation
of
Assuming holdings
the
Annual
STOCK
$11,-
Sept. 30, 1951 with
an
order,
and
$21.67
on
1950.
ten
The
preferred stocks.
or
HOWARD
$6,826,865
prior
any
&
31,
evidences
other
pre¬
offering price of $24.88 compared
Annual
"Exclusion."
61.5%
19.3%
FUND reported net assets of
debentures,
or
of indebtedness,
bonds,
holdings,
stocks.
ferred stocks and 19.2 % in
bonds,
short-term botes and cash.
the
Company Act of 1940.
state
may
paying
open-end
as an
the
under
company
on
10
largest
by
common
industries
power and
stock
were,
light, oil,
in
rayon,
years,
it
and
the
gifts
may
be
made
based
chemical, insurance, nat¬
same.
gas,
electrical
products,
building, aviation and banking.
must
made, during the two.
preceding purchase, any dis¬
from 4 realized
capital
gains except during the last month
of its Federally taxable year.
years
in
this national
survey, the eleventh
in
the
series, and these were
one
hundred industrial
of
"Best
of
Indus¬
awards.
jury
who
made
the
final
is
headed by Dr. Car¬
Blough, research director of
American
Institute
countants, and he
was
of
Ac¬
assisted by
Fundamental Investors, Inc.
(6)
The maximum sales charge
may not exceed lxk% of the offer¬
ing price.
.
Savings
shire
of
,
.
banks
cannot
their
placed
in
put
New
more
deposits
companies
Manhattan Bond Fund, Inc.
Hamp¬
than
5%
investment
in
which
have
been
Diversified Investment Fund
the legal list, and may
not invest more than 1% of their
on
deposits in the
shares
of
anyone
company.
To
have
date,
the
qualified
conservative
corporation
annual reports were submitted
the
;
pretty reliable indication
important / downturn
in
are
part of his lifetime
any
without
clude:
be
industry. The
Industry" trophy will be awarded
Henry J, Simonson, Jr., Presi¬
New
r
declined from
A decline of such
ity in ordinary times would
stitute
of
*
orders to
new
OPEN-END REPORTS
as
report
the
individuals
small
orders
new
income.
taxes
4
already high level of June 30, and
general
fund" had total net assets of
The
$187,040,605
*
;
inventories
tribution
to
man
D 13
Axe-Houghton
facturers'
have
The
..
mutual
not
All
selections
City.
118,000
did
giving
Shares on the list of legal invest¬
30, 1951 of $75,992,279 compared
more thought to the
advantages of- with
ments for savings banks in that
$69,923,792 on Dec. 31, 1950,*4
using certain tax-free opportun¬
with offering price
state. Securities oh this list are"
per share re?— ^:
ities
while
still
available.
Byf
also specifically legal for insur¬
spectively, $33.94 and S31.15. The
utilizing the $30,000 Gift-Tax Ex¬
five largest common stock hold¬
ance
companies and trustees in
emption in one year and by using
New Hampshire.
ings by industries were oil, power
the $3,000 Annual
'Exclusion,' one &
light, insurance, natural gas':
Some of the qualifications a individual, who has not previously
and
be
the
through
try"
Address.
American
latest
classifications
....
Hampshire
Selected
the
judged in
Name
OF New
applications
penalty.
More
me
STATE
placed
without
Ballroom
Congress Street, Boston 9, Mass.
than
more
"With
(5) It must have paid dividends
from investment income in each of
1951, at
Awards
The Keystone
the
over
dent of National Securities & Re¬
search
Corporation on Oct.
(Series S1-S2-S3-S4)
50
amount
any
Report
COMMON STOCKS
in
months, shares
outstanding increased at the rate
of
inventories
1951
In the past nine
produce
minimum specified and may with¬
draw from the plan at any time
National
(Series K-1-K2)
this
THE
nor
of
Annual Report Survey has
judged
the
current
Annual:
PREFERRED STOCKS/;
with
made
been
has
ments
judges
(Series B1-B2-BS-B4)
have
standing
year,
BONDS
of
and
about the general situation on the
basis of previous data.
added; issued report. A cause for con¬
orders
of con¬ cern, the report says, lies in the
mind."
quent investments must be $25 or
more.
Investors may make pay¬
under
Certificates of
chairman
fund
chases
Investors
The minimum initial investment
must be at least $50 and subse¬
Keystone
public
months
orders
not add much to what was known
gross
$33,090,000 and were
the rate of upwards of $3,676,000 monthly.
plan. The
offering price in effect on the
day it is received. No extra charge
to
away
be periods
digestion to be faced.
generally conservative pur¬
Our
each
an
and
of
the
as
invest
full
many
the
under
will
received
New Yotli,
the
to
nine
that
•
Department of Commerce on'; '
new
.
The
or
CALVIN BULLOCK
shares
first
Bullock
may
solidation or
in
attract
funds
"There
Investors
point
a
will
stocks."
The
of its Systematic Investment Plan
for the periodic purchase of its
FUND
yields
investment
far,
gone
ment
dicated by the fund's objective.
your
1951)
means
aggressive - defensive
position but remain fully invested,
Prospectus from
V-Vv
an
"The
the
at
was
board of directors, when he
shift
investment dealer
over
Canada.
by the chairman of Del¬
Fund
aware
to#the
Other funds under this manage¬
2, fA.
A Mutual Investment, Fund
of
10,
/
V Axe-Houghton,/declared, in: its;
that the July: :figureS.: of
survey
Fund
cleat that this remarked, "The continued strength
steadily
increased
to
provide
uninterrupted advance in the stock market, despite gen¬
greater diversification. On Sept.
in prices of commdn stocks?- Stock erally lower current earnings
30, 1951, a total of 308 different
prices follow their earnings and statements, and the gradually in¬
securities were listed in the port¬
dividends even during an infla¬ creasing
returns
available
on
folio. This compares with a total
tion—a turn downward of either bonds, is eroding one of the
of' 261 different securities in the
earnings or dividends can cause strongest points of the present
price unsettlement. This is a time level of prices — the favorable portfolio oii Dec. 31, 1950.
for caution and our investment comparsion between
yields on TAKING ADVANTAGE
of certain
stocks and on bonds.
policy expresses exactly that."
by
means
s-rtssr*
your
J;he long
Harold X. Schreder, economist for
the fund's management, "but it
Wellington
Oct.
three; weeks/";
20,
but-Vremained7range'of 10 points
where it has been since the.first of
The fund reported today (Wed¬
nesday,
ing
inevitable7'
appears
in¬
stocks.
common
"Further inflation* over
term
was
Wellington
the
narrow
amounted to
Directors.
from all
when 80%
SI.
Art
made
plain tr, Weston Smith, Executive Vice
that the present defensive position
President and
originator of the
is in no respect permanent but
i$, annual report: surveys, will pre¬
a
highly liquid and price-stable sent the "Oscar of
Industry" tro¬
buying reserve. Historically, the
phies at the annual awards
Fund's most aggressive
position
banquet, which will be attended
was taken at the
beginning of the by more than 1,300 business and
present, advance in June,
1949, financial executives
from
from
securities
owned.
were
management
1950,
had 61,000 shareholders.
•
1.
of
Sept.
the year.
Sept. 30, last, to an all-time
high of more than 70,000. At the
on
STRONG DEFENSIVE position
was
reported b,y The Fully Ad¬
decreased- 'moder- ;
during
with the
shareholders at
more
boost
THE WEEKLY Business Index of
Fund,
this
Thursday, October 11, 1951
..
ately
FUND
adding
rate
month
By ROBERT R. RICH
&
Selected American Shares.
.
legal
list:
following
for
New
Diversified Preferred Stock Fund
funds
rock-ribbed,
Hampshire's,
American
Business
Diversified Common Stock Fund
Shares, Boston Fund, Broad Street
Investing, Century Shares Trust,
Chemical Fund, Eaton & Howard
Balanced and Stock Funds, Fidel¬
ity Fund, George Putnam Fund of
Boston,
Incorporated
Investors,
Investors Management Fund, Mas¬
Second Fund
sachusetts Investors
and
PROSPECTUSES
AVAILABLE
A8 Wall Street
ON
THESE
Hugh W. Long
New York 5
■
"
and
MUTUAL
FUNDS
Company
Incorporated
Investors Trust, National In¬
New York
vestors,
Nation-Wide
Securities,
Chicago
Los Angeles
.
Volume 174
Number 5054
...
The Commercial and Financial Chronicle
(1387)
Continued
from
7
page
members of the staff who reached
Chase Dinner Honors
25-Year
In Some Common Stocks
Woolworth,
and
Standard
Oil
savings banks
should be available for equity in¬
excluded from
investment in
vestment in the great
corporations
which
weapons
The Trust
The
of
many
drugs,
and
and
chemicals
tors
are,
an
tries
to
Britain
when
age
girdle
and
the
have
embraced
when
world,
even
when
friends
our
socialism
the
our
own
system
of
most
important single source
of strength and safety and progress.
J
All
the
over
'.
v;:
there
is
a
ings
which
made
capital
forma-
tion
possible. It is not too fartb say that the struggle
4going on in,.the world today befetched
i
tween
«
and the Free World
Communist
production
that
Imperialism
is
will
battle of
a
be
by
the side with the biggest and best
capital equipment.
We start with
our
but
is surely
business
by
such
must
from the
come
If this is not done
Communist
devoting
larger
a
plants,
and
goods—than
capital
machinery,
any
has in all history.
In Russia capital is formed out
of
the
blood
and
sweat
of
industry
further
a
tax
and
then,
government
savings
on
can
We
have
when
left
behind
capital
for
industry
and insurance
the
funded
capital.
our
country
the
only
real
savings
of
citizens
our
and
the
of
people of small
That is
islation
two
trustees
-
is
why I
panies and savings banks.
billion
dollars
them for
a
year
of
com¬
Seven
to
comes
our
It is not wise
or
appropriate, in
ings banks to buy
increase
Corporation
,
<
-
An
asset value
.
♦
quarter
per
REPORTS
$67.75 in net
share of Lehman
during
of the fiscal
the
year,
first
ended
addressograph department, in her
42nd year in the bank, has the
longest service record among the
iiiiiiii i ill®*
-
I
Hi I--.
ii
Mi
~
FOUND
WHEREVER FINE CARS
TRAVEL
sav¬
stocks
common
As
for
that
the
should
purchase
banks I
precise
be
equities
of
limitations
placed
the
savings
upon
by
confident they can be
am
excellent
committee,
the
Custom
Hardtop Sports Coup*
designed by Richard Arbib
Superintendent of Banks and the
leaders of the Legislature.
For my part, I would
only
few
a
think there
restrictions
really important.
course, there should be
that
First,
a
of
limit
common
on
stocks
savings bank might hold and the
VEEDOL
proportion of that total that might
be
put
into
standards of
any
one
company.
of
bank
be
ment
quality. In the case
that might take
requiring the invest¬
stocks,
the form of
limited
to
a
Reserve
change
the
shares
Member
The World's Most Famous Motor Oil!
of
Banks.
of other stocks listing
would
Securities
be
Ex¬
essential.
All
common
stock investments should
have
established dividend
an
rec¬
Your
Finally,
Banks
the
Superintendent
should
be given clear
clip the wings of
himself
to
deal
as
stocks
HIM or
pROttC"0*
au¬
deserves the
a
any
smart trader and tries
a
in
car
of
ij">r speculative
gains
rather
yield.
most
modern
"
to
but these
invest
seem
to
for
most
important and I
would
oil...
me
of
this
sort
VEEDOL!
a
.Motor oil
t,o see legislation
burdened
with the
man
fj-om the
sibility of using hSs
share.
personally
like
not
own
respon¬
judgment.
On
September 30, 1951, there I
Approached ih
the
guarded
2,076.562 shares outstanding, fashion I have suggested, the prop¬
osition that savings banks should
an increase of
129,785 shares dur¬
ing the current quarter as a re¬ be allowed to buy common stocks
were
sult
of
issued
the
to
proceeds
shares
subscription
stockholders.
from
the
amounted
sale
to
rights
The
of
net
these
$8,077,626.
Total net assets
•
on
September 30,
1951
to
$140,683,080.
amounted
should
not frighten anyone.
Our
neighbors in New England and in
Pennsylvania have not been
frightened by this bold new idea.
Anything
York
can
they
can
do—better.
do,
WATER
OIL COMPANY
San Francisco
motor
There may be other needed
restraints,
than
TIDE
ASSOCIATED
kind of detailed, conditions which
per
Company, Inc.,
Avenue.
common
absolve
$60.09
A. Rayvis
Brickell
permit
to
in
declared
was
550
more ven¬
September 30, 1951, was reported
by Robert Lehman, President, in
an interim report to stockholders.
Net asset value, as of June
30,
1951, after deducting the dividends
July 2, 1951,
MIAMI, Fla.—Murray Shields is
with J.
the savings
savings banker who starts to fancy
to
Joins J. A. Rayvis
(Special to The Financial Chronicle)
the
also.
thority to
CLOSED-END
of
na¬
ord.
investment.
Jehli
banks
favor permitting
registered
institutions
life insurance
as
Bernhardina
year
stocks and that
common
now
on
into
thrift, such
of
fiftieth
permit insurance companies to
invest in
case
channeled
of
his
stocks and the legislation last year
to
Federal
said,
today to be
service.
department, each
in
widely dif¬
ago
invest
.
In the
more
trust
is
means.
years
to
tend
and
the
why I supported the leg¬
business enterprises they own. But
individual savings, as I have
more
de¬
of
Second, there should be minimum
of capital formation is the
of
whom
ill
the times
As
ture money come from
a
In
loan
partment, and Charles Feuerstein
that
sq
while
tional income is more
lions of slave laborers.
source
the
MIAMI, Fla.—Edwin F. Ashley
is with King Merritt &
Co., Inc.,
Chamber of Commerce
Building.
companies supplied
the total amount of
methods of Communism.
employees in point of
service are Peter. S. Roggemann,
relatively small group of
wealthy people supplied the equity
are
her productive
strength by the brutal, degrading
(Special to The Financial Chronicle)
Oldest
a
people, by holding down the liv¬
ing standard, by driving the work¬
ers, by cracking the lash over mil¬
Yes, Rus¬
With King Merritt & Co.
supply the needed
are
is building up
ii
capital.
the
sia
258
'A
we
worked out by consultation among
•
271
are
sav¬
your
of
other
-
annual
were
them
in
years.
T" ,%Vk
there
will
always
be
smooth-tongued fellows who will
point out that the only remedy is
over
other country
,
seventh
109
itself.
ing
v
this
dinner for the first time
a
Among
cashier
the
overseas
women.
assistant
on
New
venture
proportion of her total production
to capital formation—to the build-
■<
the
in
are
in
are
course,
won
huge lead
a
opponents,
Russia
.
of
Attending
at
followed by
entertainment.
branches.
87
1,597
wealthy inves¬
measure,
American
-
1
program
speakers
was
and
brothers
equity capital.
fused it is essential that
world
great;need for capital and a des¬
perate' need to mobilize the sav-
*
and
find the flow of equity money
inadequate to the requirements of
and
capitalism has been greatly modi¬
fied, capital—the plant and ma¬
chinery used to produce—remains
-
hosts
dinner, which
may
Communism
others of
that
made
large
institutions.
Public Policy
i
our
were
York
bank,
Three
longer supply the capi¬
can no
capital
course.
In
a
the
women.
anniversary in bank's staff, Elmer, Franklin and
1,684, which Samuel Merz, have total service of
of
ings of the many as they are chan¬
neled through
our
major thrift
Beyond this, however, there are,
I think, sound reasons of public
policy
for
advocating
such
a
•'
peace
:
expanding industries
means
savings
In
I think, cogent rea¬
sons why savings bankers and sav¬
ings bank depositors should seek
authority to invest some modest
portion of their funds in stocks.
i
of
of
service
the total
tal funds needed in addition to the
as
,
These
-
goods
money
excessively high income tax
upon large individual
in¬
comes
processing,
financing through bonds
rule.
a
public
food
as
containers
avoid
•
the
in great need of
are
most successful
our
industries such
f:
the
this
levied
that
;
produce
America's
outstanding with the
*
of
country needs.
sociation reports that 82 represen¬
tative corporations have no bonds
.
Some
and
war
Investment Study Committee of
the New York State Bankers As¬
1
or
dorf-Astoria.
Winthrop W. Aidrich, Chairman,
and
Percy
J.
Ebbott, President of the bank,
gations.
the prime securities of these com¬
,
the
25
attended
ment of these funds to fixed obli¬
of
Without the right to buy
stocks the
many more.
men
of
with
of
dinner in their honor at the Wal¬
common
panies and
Bank
of service
years
Of
represents 18% of the entire staff
judgment, to limit the invest¬
my
Indiana.
are
1,684
employees
Chase National
more
General Motors, General Electric,
Employees
More than 1,400 of the
and
women
25th
1951.
Savings Banks Should Invest
their
43
New
iiii
''Mb'./,.
44
■
The Commercial and Financial Chronicle
(1388)
4'.
Continued jrom page
Securities Salesman's Corner
The
will
win
to
often
is
by sportswriters
thing that
mand
must
offset almost every
can
of
$22,500
were
million for
August, $19,900 million
July and $22,800 million for
June, department figures showed.
for
salesman, must always be in com¬
men¬
some¬
as
about
them back
totals
The
attitude. He
winning
a
Sales of motor vehicles and ma-
in his business, and
believe
chinery producers showed the big¬
gest increases, boosting the dur¬
the will to face each problem as
ables group sales about 7% over
it arises, firmly, and with com¬
July. Non-durables also advanced,
plete confidence.
but not so much.
•
other
The
handicap.
in his abilities. He must have the
teams
great
of the past—the Yankees of Ruth
and
Gehrig—-the football teams of
Notre
Louis when
—the
Rockne—Joe
under
Dame
he
fought Schmeling
world
sports
As far
keep
on
winning when you are ahead,
it will work in the selling field, as
untold
offers
examples. And now we come to
this
year's
New
York
Giants;
trailing
by
an
almost
insur¬
mountable deficit of 13 ^ games
well
season? Here
the
was
tion of talent—the
collec¬
same
team—the
same
manager; yet it became a
changed organization and miracul¬
ously turned from a so-so aggre¬
gation of fifty-fifty losers into a
same
pennant winner.
If
I
will
you
believe
check
that
the
records
will
you
discover
that the change in the Giants oc¬
curred
when
a
at
just
about
the
time
they had dropped three in
their
to
row
The team
it had
no
ning.
Brooklyn
then
was
rivals.
far behind
so
But
seeming chance of win¬
something happened.
Out of an hopeless situation they
began to play heads up ball. With
the strain and tension off they
began to win. Slowly they chopped
away at Brooklyn's lead — ten
games
behind—eight
games.
No
a
chance
one
to
games—six
those Giants
gave
overhaul
the
league
on win¬
leaders.
'
have
I
and
going
cases
no
place. Some of the
they expected to close fell
but new prospects came up
had
at
in
made
it.
months.
Their mind
They kept
became
al^rt—
they
closed business that vtfould
escaped them only a few
weeks
earlier.
They
achieved
have
momentum.
Remember that the Giants
were
counted out two months ago.
day,
as
this is written they
To¬
are
innings. They
until
the
through
were never
last
was
out.
Brooklyn began to feel the
pres¬
The
sure.
pressed
man
the
more
the
plished. The
less
Dodgers
they
accom¬
they won were
games
in
the World Series. The will to win
is the most potent
force for
With it the mountains have
eighth and ninth
and
is
man
achievement
capable
of
of
pro¬
which
attainment.
been
f
V.'
_«
I
convinced
am
those of
us
persuading
the
:V>
who
make
attitude
the
We
old
that
parcel
of
\
!
>.
k
our
our
used
to-year drop.
thing
and
you
have it,
everything
is
any¬
within
sales
many
was
all
a
Soviet plot,
Melville Moore Now
riod,
With Laidlaw & Go.
New
York
Stock
Ex¬
change,
and
that
L.
ced
Moore
has
become
asso¬
ciated
with
there
are
io sell.
that
a
selling. I
feeling
am
must be
of
also convinced
able
absolute
to
Mr. Moore had
been
assurance
able
for
ft, if
customers.
your
you are
properly.
going to guide them
This
necessitates
the securities
dealer,
that
broker, and
Wilson
&
Co.
from
1945
prior to
which
he
You
hem, haw and hedge about
with
Finch,
convey
that you do know what is
advis¬
■can't
mu¬
nicipal bond
department.
times when it is best not
But I
you
the firm's
am certain that
Melville
L.
L.
Moore
Moore
headed
his
own
firm, M.
Co., brokers in mu¬
&
nicipal and corporate bonds and
stock.
Prompt Wire Service
»
SALT
•
I
«
«
LAKE
CITY
J. A. HOGLE & CO.
ESTABLISHED 1915
50
s
New
other
BROADWAY
-
creases
over
cumulative
a
year
ago
At
the
Canada
the
United
pro¬
action
is
delivery
in
according
Automotive
Reports,"
the mills
stated
a
1950.
ticular
period originally named,
in practice will pe¬
This change
nalize
some consumers
whose third
quarter
through
no
imposition of government di¬
rectives in mill schedules, states
by
this
trade weekly.
I
I
t
NEW YORK 4, N. Y.
Teletype NY 1-1858
I
I
I
I
t
I
to
and from district to
items, the mills
product,
In
district.
.
Passenger
week
in
United
the
last
production
car
States
was
about 7% higher than the previous
week but about 40%
below the
like
week
last
of
year.
For the' United States alone, to¬
tal output
dropped to
estimated
an
108,208 units from last week's re¬
vised total of 107,306 units. In
like week of last year output
taled 169,557 units.
some
the
to¬
Canadian out¬
put in the Week totaled 6,260 units
compared with 6,667 units a week;
ago, and 8,296 units
Total
week
and
output
was
made up
22,385
year ago.
a
the
for
current
of 85,823 cars
trucks
United States and
in
built
total of
a
the
4,365
and
1,895 trucks built in
against 4,640 cars and
trucks last week and 6,102
cars
Canada,
2,027
and 2,194 trucks in the com¬
parable 1950 week.
cars
,
Business Failures Drop Further
Commercial and industrial fail¬
declined
ures
133
to
the week
in
may
requirements.
1950 in other groups,
The American Iron and Steel In¬
operating
that
this week
announced
stitute
the
steel
of
rate
sale
having 93% of the steelmaking capacity for the entire in¬
casualties
off
with whole¬
one-third
to
their number last year.
com¬
panies
The Pacific States accounted for
most
the
of
week's
decrease
in
Authority
control
to
steel,
aluminum and copper, says "Steel,"
the weekly magazine of metalworking. Failure of tonnage can¬
cellations to
come
through in
takers
for
trolled
Materials Plan
fourth
Con¬
quarter
tickets.
steel, cancellations have not
In
come
in
anything like pre¬
dicted tonnage. Through speeding
up
the machinery for canceling
duplications,
NPA
hopes
2,051,000 tons
a
arrearages
not
week
surprising when NPA last
moved drastically to clear
away
carryovers.
third
It
ordered
quarter orders
all
not
and
at
date,
seven
Higher
Records
days after expira¬
At¬
South
At¬
electric
of
the
by
energy
electric
industry for the week
6, 1951, was estimated
7,155,921,000 kwh., according to
the Edison Electric Institute.
Output
the
in
showed
latest
reporting
further moderate
a
rise above the
previous week.
The current total
54,127,000
kwh. above that of the preceding
week;
642,214,000
the
above
week
total
was
kwh.,
9.9%
or
for
output
the
7, 1950, and 1,706,024,000 kwh. in excess of the
output
reported
for
sponding period two
the
years
Carloadings
Extend
West
South
marked
Loading of
week
revenue
ended
cars,
ceding
The
1 Cent in Week
There
able
in
cent
week's
of
the
but
or
an
increase
an
wholesale
the
the
figure
This
was
$6.79
to
29,
pre¬
represented
a
of
Oct.
2.
this latest rise, the index remained
within two cents of the 1951 low
reached
The
Sept. 18.
on
index
total of the
price
is
■
,
represents
per
show
to
the
sum
pound of 31
and its chief
the
general
prices at the whole¬
level.
:
r
J
Daily Wholesale Commodity Price
Index
1951,
increase of
as
level and exceeded the pre-Korea
index of $5.96 by 13.9%. Despite
sale
freight for
one
price
4.5% above the year-ago
trend of food
of
of
food
index, compiled by Dun & Brad¬
street, Inc., last week, bringing
function
.:.
total
was
foods in general use
0.3% above the
week.
decrease
1950,
or
last
Wholesale Food Price Index Gains
Makes
Slight Advance
the Past Week
cars, according to
the Association of American Rail¬
263
from
appeared in the East North
year
864,573
roads, representing
The
States.
declines
ago.
Gains
Sept.
Central
corre¬
Previous Week
totaled
and
States
unchanged in the West
North Central, South Atlantic, and
Oct.
ended
Atlantic
remained
light
Oct.
week
Middle
and
Central and Pacific States.
Latest Week
amount
ended
cars,
off
Middle
in
England,
than in 1950 in the New England
power
quarter allotments.
cut¬
however,
curred,
lantic, New
only
1,959,600 tons.
Output
distributed
below
same
to
Level in
The
shipped by Oct. 7 must be charged
by consumers against their fourth
The
week
a
101.6% of the old capacity and
amounted
the
from the
third quarter intensifies the fourth
quarter log-jam. Consequently, it
unfilled
or
and 100.0%, or 1,999,000 tons
month ago. A year ago it stood
to
mill
on
notes.
Shipment
was
102.6%,
ago,
an¬
ticipated volume against prelim¬
inary allotments necessitates firm
action to clear books of duplicate
tonnage. Many consumers, large
and small, still are unable to find
nal
to
being
authorities
is
rate
2,035,000
tons
of
lantic, and in the West South Cen¬
steel ingots and castings for the
tral Statgs.. Mortality was heavier
entire
industry, compared
to
equivalent
by the National Production
clear the order log-jams in
out
point from a week ago.
This week's
operating
Electric
I
I
I
»
I
and
States
past week,
"Ward's
to
vehicle
motor
the
advanced to 114,468 units, com¬
period
pared with the previous week's
might be filled at any subsequent total
of 113,973
(revised) units,
time arid still be charged only
and 177,853 units in the like week
against the allotment of the par¬ of ■
for
at
This Week
101.8% of Capacity
Determined
taken
for
period.
Steel Output Scheduled
I
York Stock
Exchange
Principal Exchanges
Tel.: WHitehall 3-6700
Only three states—Arizona, Colo¬
rado, and Delaware—reported in¬
books to make way for currently
stranded tickets, this trade jour¬
«
I
and
pe¬
I
I
Metnbei
the-eight months'
was
cut back sufficient orders
I
DENVER
of
I
I
To Western Markets in
•
ago.
year
considerably less
than the comparative figures for
the
years
1948, 1947 and 1946.
I
FOR BROKERS AND DEALERS
SPOKANE
total
to the mills
s
LOS ANGELES
for
and
Melville
place
pressure
a
have
a n n o u n
in the securities business for
high
no
in
failures.
Slight dips prevailed in
57,689. While
this was slightly above the 1949 dustry will be 101.8% of capacity four other regions including the
for the week
beginning Oct. 8, East and West North Central. A
aggregate of 57,135, it was down
13.7% from last year's total of 1951, or a decrease of 0.8 of a larger number of casualties oc¬
66,830
Laidlaw & Co., 25 Broad
Street,
New York
City, members of the
organiza¬
tions. No doubt, there is
a
reached
you
con¬
part
month
pennant—-it
If
meetings,
be
same
Only ten states re¬
in incorporations
New business incorporations for
the first eight months of this year
grasp.
accom¬
sales
the
over
gain
a
don't believe
this then the Giants didn't win the
your
frowned
pep
to
our
duction
■
ported
living
of.
Combined
estab¬
authorized
CMP orders accepted by
Slightly
Week
find themselves with open ended Oct. 4 from 154 in the pre¬
space in rolling schedules before
ceding-week, Dun & Bradstreet,
the fourth quarter ends,
space
Inc., states. Casualties were down
earlier.
Private undertakings of that cannot be filled easily.
In
moderately f rom 1950 and 1949
$1,860,000,000 were off 2% from other products, however, bars for when 154 -and 182 concerns
failed,
August and 11% from Septem¬ example, the tonnage of unplaced but
they fell sharply, 52%, below
fourth quarter CMP tickets is so
ber, 1950.
the prewar level of 279 in the
Stock
corporations
receiving great any gaps appearing in mill comparable week of 1939.
charters in the United States dur¬ schedules due to cancellations will
Both large and small failures
ing August increased slightly to be quickly filled.
declined, for the week and year. i
Steelmakers,
adds this trade
6,500, from 6,428 (revised) for the
All industry and trade groups
month of July, Dun & Bradstreet, publication, are moving cautious¬
except manufacturing had a de-»
Inc., reports. The August total at ly in booking forward business. cline
in
mortality
during
the
6,500 was 9.7% less than the 7,201 This applies even to first quarter week.
Manufacturing casualties
listed
in
the
comparable
1950 tonnage. Few mills are accepting rose to 39 from 33. This lipe pad
month, and marked the twelfth anything beyond that period ex¬ more failures than a year ago,
consecutive month to show a year- cept in the case of "must" defense while there were declines from
accomplished. If
often,
have
time
'* 'It
too
between
and
hip holeroo,, and the
tests
>
others, lose sight
plishments.
upon
'
Contest
that
relationship
mental
-x/'
a
in¬
ments of Labor and Commerce re¬
scaled and the impossible has been
■scratchy. The Giants kept winning.
You kjhow the rest.
Selling Is Like
limited
ported. New construction put in
flat,
place last month was valued at
and they bought. They made more $2,800,000,000 or 1 % below both
money in a few weeks than they August and the like month a year
the
the
reconsider
to
allowing
Heretofore,
periods.
■
—
gress
in
Commission
decision
its
is
proven
But they kept
ning. They developed the winning
habit. They pulled games out of
fire
announced
they will ask the Interstate Com¬
merce
also
quarter,
a
lished for succeeding three month
creases in freight rates.
This was
The extent to which duplicate
this disclosed after a meeting in Chi¬ tonnage will be cleared from mill
point time and again. I have seen cago of traffic executives of all books by this action is uncertain.
major roads.
The carriers will No one knows definitely how large
men go out and hit a slump *just
like a ball player. The harder they seek the full 15% advance origi¬ the duplications are. While carry¬
The overs from third quarter were
tried the more they fell down. nally requested last March.
granted
two substantial in the various steel
They fretted and fumed — they ICC subsequently
studied their approach — their boosts totaling 9% in the East products, the steel mills have no
close
their prospects — they and 6% elsewhere.
way of determining to what extent
missed the close ones — nothing
Construction as a whole was any customer's tonnage is a dupli¬
seemed to go right. Then ail of slowed down somewhat in Sep¬ cation.
In this connection, states
a sudden
it changed. They began tember by material shortages and "Steel," it is significant that can¬
to close the deals they never ex¬ government
restrictions, but in¬ cellations still are the responsi¬
pected to sell. They sold people dustrial,
military
and
public bility of the consumers, not the
they didn't even think about, housing activities continued to mills. Generally, the impact of
when they were trying so hard expand, the United States
Depart¬ the order will vary from product
cumluative.
finally landed them in the World
Why is it that this team
which finally found itself and just
could not be denied, was flounder¬
ing around for two-thirds of the
other walk of life.
winning, of making
of
railroads
of
strike of coal
a
the Latest
in
sales, of gaining new customers, is
in August yet they made an un¬
stoppable fight (to the top) which
Series.
in any
as
habit
The
nation's
tion
by
.
Auto Output Moves Up
Industry
shipments were delayed
fault of their own, but
that rather
through delays occasioned
On Wednesday of last week the
it is possible to
as
reduced
miners.
the June level, the department
stated.
The Giants Had It!
tioned
bringing
ment,
to
Thursday, October 11, 1951
..
were
5
The State of Trade and
By JOHN DUTTON
.
The daily
wholesale commodity
price index moved within
,
last
week,
Dun,& Bradstreet, Inc.
row
range
initial rise, it
a
nar-'
reported
After
an
fell and then climbed
1.8%
again to 302.77>pn Oct. 2 compared
correspondingjweek in
with 300.28 arweek ago and 290.72
an
15,613
cars,
increase
or
oi 1206,445
a
period of 1949 when loadings
year ago.
As
31.4% above .the compar¬
in
jV}
,
;;i
during recent weeks trading
grain markets -at Chicago
the
Volume 174
Number 5054
The Commercial and Financial
Chronicle
(1389)
remained rather
desultory.
continued
ever,
How¬
More household goods
than in the
unfavorable
weather which hindered
harvesting led to
strengthening of prices and
some
parable week in 1950.
wid¬
be
unsatisfactory
buying
Some
touched
that
wave
traders
proved
vision
to
off
a
export
There was
much food
Firmness
level of
a
domestic
noticeable
continued
cent
remained
charac¬
as
Total
many
week
ship¬
the
at
Trading
markets
the
somewhat
the
week; orders continued to be
mainly for fill-in needs.
While
spot
gained
ened
demand
for
cocoa
futures
sparse,
Although
Bahia
re¬
strength¬
moderately, warehouse
continued well about
-were
a
stocks
year
demand
remained
hind
a
year
able
to
be
a
from
year ago.
year
by the fol¬
ago
to
—6;
East
Pacific Coast —1 to —5.
and
heavy,
order
the
the
volume,
same
The
result
rate
dollar
in
of
studies
way
and
where
were made at
as
company has been called
Dec. 4, 1951 to
approve in¬
creasing authorized
from
Allegheny Ludlum
a
license for
the
indebtedness
to
$40 million.
of
no
incurring
present intention
funded
a
indebted¬
in addition to the
present in¬
debtedness in the amount of
ness
surance
companies and
the
metal
applied at the other end,
is
forced
through the die
to
to form
a
squirt
product
vertible
to
the
series
of
holders
preferred
of
the
pansion
are
Watervliet
funds
plant and it is expected that
many
new
^applications
for
stainless
poses.
at
the
steel will become
possible
It
a
was
new
as a re¬
These funds
recently announced that
special meeting of stockholders
shares
be
program and
for general
recent
when the stock market
was
used
to
par
tion
and
some
of
Commitments
ter
prices
the
in
realities,
the
Allegheny Ludlum
more
North Eighth
to
Company,
Joins
pur¬
of
the
financing,
common
Fulton, Reid
(Special to The Financial
Chronicle)
CLEVELAND, Ohio —Keith R.
Barker has been added to the
staff!
of Fulton, Reid &
Co., Union Com¬
stock
merce
Building, members
Midwest Stock
Exchange.
outstanding. The conversion terms
about
wholesale
to rise and
orders
in many weeks; total
marketing continued to be much
smaller than
nishings and sportswear
time
a
year
ago.
dered in
Hogs sold near peak levels as
demand increased with the announcement of
Marketings
with
sparse
lamb
prices
remained
virtually
un¬
Department
changed; activity lessened with
the approach of the
holiday shut¬
down of kosher
prices
spot
for the week ended
ures
no
of
Twice
loans
as
less
of
a
which
than
a
year
Picking, and »ginning
made
bor
generally
good progress although
shortages
were
la¬
reported
in
from
that
decrease
a
for
the
of
of
a
3%
four
year
was
weeks
Sept. 29, 1951. For the year
department store sales
registered an advance of 3%.
to
date
Retail
ago.
many bales entered CCC
in the preceding week.
as
but
registered
broad¬
demand,
export
been
change
ended
growers, sizable entries into CCC
ening
Sept. 29, 1951,
A revision of the
fig¬
for the previous week
shows
ago,
considerably
above last week.
Firming factors
included largescale retention
by
has
a
increased 2% from the like
period
were
loans, and indications
on
taken from
of last year.
quite active, with
steadily. Sales in
gaining
markets
sales
as
the Federal Reserve
Board's index
slaughtering,
the second largest cotton
crop, 17.2 million bales, still in
prospect, the domestic cotton mar¬
continued
store
country-wide basis,
j With
kets
or¬
This rise
higher ceilings.
new
of
were
more
copious quantities.
was
partly offset, how¬
ever, by a palpable
reduction in
the buyer demand for
children's
apparel.
!
trade
past week
in
New
York
the
again held in check
by unseasonably warm weather
which resulted in a decline
of 4%
from the like week in
1950. !
was
According to Federal Reserve
index, department store
Board's
sales
in
New York City for
As during recent
the
buyer demand in textile weekly period ended Sept. 29,
markets improved, with some trade 1951, decreased 3 % from the like
In the pre¬
observers expecting the return of period of last year.
ceding week a decrease of 8% was
a sellers'market and the
sections.
some
weeks
regaining
of ground lost during the Summer.
Trade Volume Lifted to Level
c;
•
V
^
of
Increased
consumers
Year
a
Ago
spending
many
in the period ended
tal retail trade to about the
a
year ago.
However,
of 1950.
the
of goods sold
high level of
decrease of 5%
below that of
a
a
as
on
and for the year to date
advanced 6%
from the
like period of last
year.
volume
to¬
level
earlier,
states Dun & Bradsteet, Inc. in its
latest summary of trade. Shoppers
continued
to
devote
a
smaller
year
is taken from the
Byllesby Representative
Bernard
associated
and
G.
Vigurs has become
with
H.
M.
Byllesby
Co., Incorporated, 111 Broad¬
New
way,
firm's
York
City,
representative
in
as
the
Staten
of the
purchasing value inevitably becomes less
always been so. Since 1933,
and less. It has
when the government
abrogated the people's
right to exchange paper money for gold, the
value of the dollar has
constantly descended.
The incentive to save
of
is gone
nametal
Inc. is
a
case
expansion
in point. We make
hard cemented carbide tool materials
which
triple production in metal-cutting and
other vital industries. This is the
type of
industrial product that
keeps America far
ahead in technological advancement.
Investors have
prise. Today, however, they are handicapped
high taxes, and hampered by all the
by
uncertainties
that
go
hand-in-hand
with
unsound money.
The public must
the
again be given control of
government's
purse
strings. We must
return
to the Gold Coin Standard*
which gives the
people the right to express
lack of confidence in
government policy, if
.
...
production facilities is hampered. Ken-
can
during
did not match
a
1951,
recorded
was
recent months the actual unit vol¬
ume
For the four weeks
ended
Sept. 29,
year ago,
by
Wednesday of last week lifted
of
registered below the similar week
When the power to control public people,
money
hands
its
always before contributed
much to the realization of
American enter-
necessary,
for
by redeeming their
.
.
currency
gold.
When this control
has been restored to
the people—wasteful
government spending
will be stopped—and
American industry, of
which Kennametal Inc. is a
key enterprise,
will be able to
plan and produce with the
vitality that exists only in
Island.
a
free economy.
share of their incomes to durable
goods than they did
In
most
cities
a
year ago.
throughout
Joins E. L. Hardin
the
up
larger
either
the
sales figures than in
previous week or the
similar week
mand
most
for
a
year ago.
The de¬
Fall
clothing climbed
noticeably in the Middle
West and
Northwest where
Attractive promotions helped to
spur
the interest in coats and suits
which made the largest gains.
a
Series
D
SALISBURY, N. C.—Harold H.
Yount has joined the staff
of E. L.
Hardin & Co.,
Inc., Wallace Build¬
ing. ,r
,
,
Latrobe, Pa.
a
tem¬
peratures dropped.
Number 5 of
n
(Special to The Financial
Chronicle)
nation retailers of apparel chalked
j
■
Cortez Inv. Co.
"
1'ATUXENT RIVER, Md.—John
J.
King is engaging in
business
from offices
the
of Cortez
name
a
securities
here
under
Investment Co.
10
Exchange.
measurably surpassed last
year's levels. Women's
coats, suits,
and lingerie as well as
men's fur¬
first
generally
Street, members of:
the Midwest Stock
ex¬
for Fall and Win¬
toggery continued
whole
of the current
po¬
in recent weeks.
volume
a
become
remained
somewhat
1950 comparative.
below its
as
advancing. As the new plant
are
brought into opera¬
faciltities
—
Pierre J.
Cole has joined the staff
of Sher¬
J. Brown &
fairly evenly bal¬
to the 1,626,167
no
an
periods
(Special to The Financial
Chronicle)
in relation
of
the-
provide
capitalization
this
fi¬
RICHMOND, Ind.
common
corporate
The
company
after
would still be
anced
process.
would
that
With Sherman J. Brown
stock
financing of the
this
partially
enjoyed much of
during
man
assist in the
of
fact
recognized.
stock.
almost
ready for shipment. As
mentioned previously, new facili¬
ties for the hot extrusion
of steel
being built
the
stock may become
placing the hot steel in loan or loans of about $8 million—a
chamber which is closed at one total of
$27,200,000. It was stated
end except for a
die, the opening that the Board of Directors is
of which is in the
shape of the giving consideration to an offering
of about
desired product. When a
81,000 shares of a con¬
powerful
price of the
have been
may
value
involves
is
nancing
tentials
term bank
a
is
price close
announcement
advance
of
a
ram
The
The President of the
company re¬
Directors has
preferred
a
common.
responsible for
stock has not
$14,200,000 except for a proposed ad¬
for ditional $5 million loan from in¬
French process
extrusion of steel. This
hot
million
has obtained
a
the
ported, however, that the Board
are
pilot model has been used
for experimental
purposes.
$20
if
even
convertible at
to the present
market
the
for
engineering
a
small
made
transactions
oil
in futures prices.
slipped slightly as
market receipts expanded for the
T
under
sult of the
frequency of initial
in
would
week, although
replacement orders,
continuing to
comprise the largest part of total
variation
Cattle
pe¬
+3; South -|-3 to +7; Mid¬
dle West —3 to
+1; Northwest
—2 to +2; Southwest
+1 to +5;
bookings
stayed within
range with no appreci¬
narrow
,a
estimated
a
is
Buyers perceptibly boosted the
Buyer demand
ago.
the
Wednesday of last
England —2
volume
declined'somewhat;
cottonseed
of
New
prospects
crop
total imports continued to
lag be¬
for
in
—1 to
ago.
especially favorable, the
outlook in West Africa was
quite
-auspicious. In the coffee markets
spot
volume
on
lowing percentages:
not
while futures
retail
was
levels
flour
last
the
as
Regional estimates varied from the
domestic
subsided
of
shunned
were
down 2 to up 2% from
present.
in
lamb
riod ended
industry
signficant savings in time, metal
equipment. Development work
and
re¬
cuts
continued at record levels.
farmers apparently fed their oats
to livestock in preference to
ping
and
As in
expensive
shoppers called for pork,
poultry,
processed
meats,
seafood
and
eggs;
the
consumption of eggs
oats; offer¬
scanty
year earlier.
months,
beef
use.
firming
to
the market for
ings
and
week
aggregate dollar
continued to surpass the
of corn quotations as
many traders
.warily eyed their weather maps.
terize
as
ing
the
proposed preferred have
yet been announced but
the
dilution of the common
would be
Security I Like Best
being completed cover¬
ing a new and larger continuous
bought about
as
casting machine to be installed at
during the preced¬ Allegheny's Watervliet
plant
volume
and
a
following the
completion of the transcon¬
Housewives
active demand
steel
demand for
notably active
In contrast.there
for corn both
sold for export.
for
The
was
reports of wheat
were no
The
stirred
season
tinental network.
market for wheat re¬
mained limited with active
de¬
mand restricted to
quality grain.
was
was
the Pacific Coast
on
recent
The spot
There
football
television sets
apprehensive
There
of
45
not
the World Series and the
shoppers.
many
that the delayed Canadian harvest
would hamper expected deliveries.
j
Continued from
page 2
flurry of interest in tele¬
as
coming
subsided.
soon
were
mild
a
ening of trading. Early receipts of
Canadian wheat which
sold
preceding week but
noticeably less than in the com¬
maturing
and
were
WORLD'S LARGEST Independent Manufacturer Whose
Facilities are Devoted
Exclusively to Processing and Application of CEMENTED CARBIDES
of
the
46
The Commercial and Financial Chronicle
(1390)
that
But
Markets
jrom
4
page
gations,
you
have to take whenever
buy equities.
The New York Stock
the prophet of the
ways
Walter
you
Whyte
tions. He
essential position occupied by the
What
If
to
buy at this stage
of the game poses a new series
of problems. For the past few
By WALTER WHYTE=
=
you've watched the mar¬
weeks,
last week you've probably
been
months, I've
non-ferrous
seen
that
amusement
lowed the
all gone up
for the first time in months
since; some more than others.
both averages have been keep¬
But the outlook is that they'll
ing pace. Of course the rails
go up still more. But if you
are
still some points under
buy them now the risk you
such highs that would cause
take is much greater than it
the Dow Theory followers to
was
weeks ago.
Even tech¬
throw their hats high in glee.
nical
corrections
can
carry
But on all sides the feeling
them a lot lower than it would
ket
or maybe
stressing
the rails have fol¬
metals, oils and
industrials and that
stocks.
They've
only
be
to
seems
that
*
#
All this
a
will
it
be
question of time,
a
*
theorizing gives
me
headache, particularly when
I have
idea if the rails will
be comfortable to sit
through.
So I suggest that if you're not
already in, wait and see what
will happen. A minor shakethe
in
out
next
week
or
so
give you the opportunity
follow the industrials, or vice you're looking for.
versa.
I have charts poked in
[The views expressed in this
front of me; I have various article do not necessarily at any
time coincide with those of the
theories explained to me in
Chronicle. They are presented as
careful language.
But when those
of the author only.}
they're all through I hardly
know
no
may
J. Leo Gleason With
fore.
#
Be that
%
:
likely that another
that
knew
better
the
Exchange's
first obligation is to the public.
That obligation—which we must
never forget—is and
will remain
of
ture.
The
primary
is
with
and
free
a
the
of
duty
provide
to
the
What
ready
market
to
want
cash
into
securities
convert
be served efficiently and
can
*
the
on
a
transactions
must
carried
be
with full disclosure and
code
of high
implicit. I pledge
the
continuing
every
J.
Lee
(Special to The Financial Chronicle)
WEST PALM BEACH, Fla.—J.
prime: question.
Leo Gleason has become associ¬
If you're lpng and have prof¬
ated with Francis I, du Pont &
its, my suggestion is to hold
Co., in their recently opened
on and ride for a while
longer.
branch at 212 Datura Street. Mr.
If you're out of the market
Gleason was formerly a partner
your chief problem is what to
of Thomas M. Cook & Company,
buy.
course a
*
Let's
*
take
in
*
charge of the trading depart¬
Another
chunk taken away from
you
through taxes. If the income
from
these
stocks
is
New
be
York
of
policy
Stock
effective
an
enough it seems to me that
selling should get more than
just
and
is
Exchange
force
in
the
of
to
the per¬
SPECIAL
PUT
United
that
Admiral Radio
@26*4
Magnavox ...@17%
JVs & Laughl.@25%
Derby Oil
.@22%
Securities
Woolen.@37
on
Members
New
York
Curb
Stock Exchange
Exchange (Associate)
San
Francisco Stock Exchange
Chicago Board of Trade
14 Wall Street
COrtlandt 7-4150
New York 5, N. Y.
San
Francisco—Santa
Barbara
200.00
200.00
125.00
.@68% Dec. 12
487.50
Steel.. .@56% Nov. 14
337.50
Pacific.
.
.@64
apologize
goods for
for
people at less
more
the
citizens
has
our
in time of
us
provided
beyond
of
material
the
plausible
Perhaps the great¬
man.
organism
Tel.@18%
Sckenley lnd..@34%
Loew's Inc... .@18%
Reynolds Mtls.@63%
Chrysler .....@70
Gen. Tire.... .@52%
And
grows.
must
we
growth
This
because
was
his
those
answer:
who
ruled
Subject to prior sale
some
we
have found
one
through which
of the added benefits of the
137.50
225.00
625.00
225.00
is
7
225.00
joyed
3
75.00
either
non-existent
only
elsewhere
on
in
a
or
is
limited
en¬
scale
the
5
550.00
world, as is
pointed out by the many foreign
Dec. 24
212.50
visitors to the
5
mos.
325.00
price change
on
request
THOMAS, HAAB & BOTTS
Members Put & Calls Brokers & Dealers
Association, Inc.
Broadway, N. Y. 4, Tel. B0 9-8470
in
holdings by
the
basic
the American system can be real¬
ized only when many more mil¬
lions
of
people participate in the
ownership
of
ficial
capitalism lies in
in
the
ownership
of
meas¬
industry
know that the
in
cluded.
Work
the
on
I
way.
project is already
hope for
cooperation of all
earnestly
unlimited
corporations
tutions
and
financial
and
represented
indeed
of
all
here
insti¬
tonight
companies
everywhere.
For this survey will provide the
answer
to the question
of who
will
the
qwneirship in America will be
highlighted for all to see. The sum
of
the land.
across
of business
owners
but
owners,
and
consumers
held
be¬
which
to
ing companies in encouraging the
development of a nation of stock¬
holding owners. These companies
only
stocks
accounts, in the names of
brokerage firms and banking in¬
stitutions, will, of course, be in¬
Indeed I owns American
industry. The
strength of political force of the real corporate
small
no
extent
distributed
not
of
owners
trust
America.
submit that the future
ure
individual,
stockholders. The number of bene¬
the
employ
any one
data obtained from the
based upon information
secured
through personal interviews with
person who has
can
over-the-counter
corporations will be carefully ad¬
justed by professional consultants,
under
her savings productively. I
that the full benefits of
the
also
are
the
their
people who have declared
faith
system
in
will
record.
our
be
of
measure
free
spread
We -will
enterprise
across
the
have
the
then
American
capitalism
in action. I suspect that the
survey
will produce evidence that Main
Street—not Wall Street—owns the
nation's industries.
taxpayers.
In
They
public opin¬
citizens to exercise their potential
I want to tell you about a
plan
privilege of ownership, we must
recognize the risks involved.
voters—they
are
ion.
for
furthering
joint efforts in
our
this direction. We know what
main
objective is: to broaden the
base
of
tries.
of
taken
with
the
Isn't
it
down
is
time
rock
is
a
come
I believe
of
whether
stock,
or a
those
with
form
find
number of estimates
size
of the
stockholder
and
basic
ingenuity at
we
don't
information
our
even
com¬
have the
necessary
for
intelligent planning.
I became
so
desirability
holder
census
a
national
that
a
the
afford
can
risk—
to
government
*in
one
be
reserves
en¬
another—should
or
to become shareholders.
Investors should understand that
a
share
of
calculated
ownership
risk
companies
even
moves
from time to time
web
a
and
mental
attitude
and
down
result of
factors
technological changes,
as
a
strongest
our
up
as
interrelated
of
involves
and that the value
of the shares of
a
such
govern¬
fiscal
policy,
changes in the management of the
companies themselves, and mass
psychology. Hence I used the word
"calculated risk" advisedly. I had
in
mind
careful
and
conservative
investment based upon competent
impressed with the
of
is
in
bag of diamonds. Only
emergency
couraged
a
mand—but
it
involved
bonds and savings in the banks,
people with life insurance, people
out
the
no
Social¬
or
kind of property,
house, a share of
namely; people with
people in this country
actually are shareholders? There
Of
any
who.
industry,
and
risk
purchase of
census
how many
have been
Stalinism
no
There
is imperative.
that we get
owners
bed
our
purchase of common
royal road to riches.
stocks
community and
about
to
of
more
ownership is
for
The
have
go.
aid
ism.
indus¬
stockholder
financial
stock
panacea
have
we
must
we
national
Wider
we
our
unfortunately
how far
or
a
ownership
But-
idea of how far
no
our
urging millions
I
stock¬
asked
my
colleagues at the Exchange to take
sampling of corporation opinion.
A pilot poll of listed
companies
advice—certainly not the attitude
illustrated by a story I heard re¬
cently.
Some
ran
years
ago
the
Exchange
advertisement
an
that,
was.
system are passed
almost
entirely cautionary. It
on
directly to our people/ It is and of
financial institutions se¬ urged investors to be guided by.
through the ownership of common
lected at random indicated that the facts and not to be influenced
stocks, wherein people take the
industry and the financial com¬ by tips and rumors. It said in
calculated
risk
of
investing in munity were interested and
would part: "The grapevine bears a new
American enterprise. Any Ameri¬
cooperate. They were asked if they crop of; tips and rumors every
can has the
privilege and bppoiv- would
supply information about day. Some folks may occasionally
tunity to become a part-owner of the number of
people owning their profit by them. But remember
almost any sizable business enter¬
this: The grapevine will let you
stocks, the average size of hold¬
prise in the nation. This demo¬
ings and the geographical distri¬ down just as surely as night fol¬
cratic opportunity for ownership
bution of their stockholders. Some lows day!"
yf ' '■ '£;
-•',~;A,
Dec. 13
Dec. 7
or
of
the teachers of
a
free enterprise
3
Explanatory pamphlet
50
to make free enterprise work for
the benefit of their people."
the
on
Curb; about 600 (ex¬
clusive of dual listings)
are
on
the several regional
exchanges,
and some 2,500 of the
companies
cars,
or
the
that
is
3
Dec. 3 112.50
5 mos.
137.50
5 mos.
550.00
5 mos.
350.00
of
intelligently,
we
must not shirk our responsi¬ population. These estimates have
gaps of millions between them.
bility to aid in directing it toward
They range from 5,500,000 to 20,serving the greatest number of
000,000 people. The astonishing
people.
truth is that nobody knows with
Recently, in a public address,
any degree of certainty just how
the President of the United States
many stockholders there are. In
asked this question: "Why is it
other words, we are faced with
that one country after another all
a job which requires all the
facts,
over
the
world
has
turned
to
Dec.
Steel..@43
@33% Dec.
Penn. RR..v. .@18% Dec.
Std. Oil N. J..@70
Mar.
our
capitalism is that there
shareholding
not more capitalists.
foster
are
York
children—any
our
our
Capitalism
given employment and
to
It
Dec.
Utd. Aircraft..
Monterey—Oakland—Sacramento
Fresno—Santa Rosa
Dec. 15
Dec. 15
525.00
Armco
Teletype NY 1-928
Private Wires to Principal Offices
137.50
28
Int'l Tel &
Schwabacher & Co.
Dec. 31
@97% Nov.
.
So. Railway..@55
Am. Cyanamid @114
Pacific Coast Exchanges
325.00
3
Zenith Radio
So.
Dec. 24
Dec.
duPont
Betk.
York
to
capitalism.
very practical way
3 $525.00
capitalists
who grow our food, the mechanics
are
country. Let us all
we
have no reason
our
In America
Fruit.. @68% Mar.
...
Orders Executed
OPTIONS
The
likely to be the farmers
are
who fix
are
those countries did not know how
Amer.
Pacific Coast
capitalism.
petuating and
strengthening of
the
productive
free
enterprise
"It
Per 100 Shares
large
of
this
of
major function
socialism?"
point by
point. If you have profits and
cash in you'll have a large
part of this country's indus¬
a
skill
ment.
them
to
Magnificent work is being done
by a growing number of our lead¬
Capitalism of course is not an
inflexible, full-grown doctrine. It
must
continue to
evolve, must
grow as any other healthy social
Gleason
already
come
equitable principles of trade.
are
if
have
opportunity
and
maintenance
development
all-important
of
ounce
vigilance and in¬
God willing,
I
which,
to
possess
under
ethical conduct is
energy, courage,
fluence
dream of
What to do in this market
is of
own
their
of
believe
est fault of
up with, some interpretations
to explain everything away.
%
Many Americans
exercised
soap-box
blandishments
his
benefits
interesting to
watch, though I have a suspi¬
cion that somebody will come
the
or
of
makes
war.
the¬
to
orators
will be stronger
promises
learned that business
it facilities
lifq-giving free flow of equity
capital to American industry. That
1,071
680
market. To eliminate duplication
his self-in¬
system
exchange of ownership which
possible,
total,
the New York Stock
about
traded
economic
quickly. It neither owns, buys or
sells securities, but, through the
it
the
5,000
the
today
nation. It has armed
do
a
panies may do so conveniently and
economically, where those who
cost. It has
be
as
trial might and thus share
directly
in some of the additional benefits
more
*
over¬
self-interest
place where all who want to buy
shares in America's greatest com¬
freedom
that will
will
ories
*
worker
a
his
cen¬
almost
that
shareholder in that company. But
in his relationship to the rest of
Ex¬
public
has put money to wo!k producing
Will follow along.
that
crackpot economists.
whatsoever
just to confuse the
issue, I don't think the rails
as
his
Schram has left to
American
$
shadows
as an owner
than minor proportions
seen in the
near fu¬
$
self-interest
employer
the
agree
will be
his
Of
on
New
with
the
year,
contemplated, the
listed
ship
than
change
are
publish
a
embrace
corporations.
Exchange;
terest
me.
will
sus
plant
a
within
now
undoubtedly finds in his relation¬
responsibility. I am
grateful for the heritage that Emil
greatest
my
And
more
New
and
Exchange
than oratory. A worker in
system of
Francis I. du Pont
it is quite
upsurge
econ¬
tremendous job for
a
most
ijj
it may,
as
than
nation's
our
institution
this
f"
than I knew be¬
more
He did
omy.
Says—
in
Exchange
*
*
*
was
As
will
and
findings
take the chance
the stock will go down.
that's a chance you'll al¬
course
Tomorrow's
Continued
Of
consideration.
casual
Thursday, October 11, 1951
...
As
more,
an
Exchange.
owner
of
one
share
or
Joe Doakes also acquires
direct
stake
in
capitalism.
a
For
scientific surveys support what our
common
sense
tells
us
must
be
true. People who have a personal
financial stake in the risk-bearing
of the executives
to
as
forward
the data
the
arrived at the office of the Presi¬
-
the New York
tion
Stock Exchange is
undertaking the first stockholder
census ever attempted. It is a
huge
project, but we believe that the
benefits to
than
match
agreed
ating and strengthening that sys¬
Ownership
speaks
louder
1
Well, what happened? A few
days after the advertisement ap¬
peared, a special delivery letter
dent. The writer wanted—and
Stock
tem.
far
so
replies
had hoped to get in
Tonight, I think, is an appropri¬
ate-opportunity to announce that
to have
interest in perpetu¬
went
their
future.
which keeps alive our productive
free enterprise system are certain
more
we
even
with
be obtained -will
the
work
The-"Brookings
to
more
involved.
Institution
collaborate
with
'
as
fast
The
as
of
just
possible—the latest edi¬
the
publication
entitled
Grapevine.
•
In reading history I have been
impressed by the natural tendency
of each
era
or
age to believe that
its 'contemporary problems are the
crucial
has
most
the
recorded history of man. We tend
Exchange. This outstanding
research organization will be re¬
sponsible for the technical investi¬
to
and
severe
in
the
forget the problems of the past
which have been surmounted and
are
accustomed
to
magnify
the
Volume 174
Number 5054
.
The Commercial and Financial Chronicle
.
.
(1391)
difficulties of the present. Con¬
trary to this custom, I am happy
to report
(Optimistically that, in
imy opiniori, the New York Stock
'Exchange is not presently facing
crisis.
-any,
Nor
crossroad.
It
-v
are
at
we
any
.
shall
be
travel
effort to
our
down the Exchange's well-mapped
on the wheels of our present
,road
one.
I face my task as
of the New York Stock
with
much to
learn
would have contributed 4%
to
to
points
"Average."
Like movements, up or down, in individual
there
thank
I
in
assistance
the
future.
see
From
to
as
whether
travel
whether the
the better. But these
of
should
we
high road
tne low
payments is
commission
of
road
not
or
Saturday mornings, and
on
and
methods
or
problems
are
the
in
made
"Let
in
That is
1918.
It
before
job
the
for
this
on
cede, for the general good of the
New York Stock Exchange.
For
from nation. Together,
challenging forward.
transition
the
me
teacher to student is
a
let
list
page
made
no
value
American
of
Tele¬
phone rights (to buy bonds) issued
on two occasions, nor for the fol¬
dividends:
Corn
in 1951. Eastman
stock
lowing
Products,- 5%
1
•
Kodak, 5% in 1949 and 1950, and
10% in 1951; Standard Oil of Cali¬
fornia,
and
1950.
result
these
did
Neither
1949
in
5%
in
a
change in the divisor used in com¬
•
puting the "Industrial Average."
Making an adjustment for these
stock dividends, Corn Products and
-
California
of
Oil
Standard
still
failed to do as well as the "Aver-
tfg<e" in two of the four periods,
while Eastman lagged in all four
periods.
Little
Correlation
"Industrial
In
.
of
31/48 to
81,'40
30.5
—12.4
19.8
36.9
2.3
32.6
1-3.5
2.5
3.1
4.0
4.5
22.1
—13.3
1.1
51.6
29.0
2.2
23.6
Tel.
Tobacco
Tel..
&
Steel
—
—
Products
6.5
Our
i
.
;
.
,
revealed
table
—3.9
—7.8
7.8
16.2
0.8
table
this
in
21.5
without
American
with
compared
Stock
the
how
does
lend
not
about
firm
the merit
to
seems
of the
—
52.5
58.1
12.8
19.0
3.6
39.0
Calif.— 3.3
41.3
5.0
43.5
Memorandum—Rauscher, Pierce
88.6
&
---
J.
N.
7.5
37.5
48.2
13.1
—
36.2
23.5
14.0
33.5
14.3
58.2
29.9
5.8
8.0
——-
—9.1
23.6
Eastman Kodak
1.5
Mar., 1938
Nov., 1938—
our
"Average."
Nevertheless, we view with sus¬
picion the steady decline in the
from 15.1 as recently as
+ 28.4
28.3
Averages
& Poor's Index
gained
of 365
161.5%.
Presumably
of the difference
strength
in
low
which there is
industrials
a
was
some
due
priced shares
to
of
greater represen¬
tation in the Standard Index.
5
trial
the
as
to
total
issues
market
billion.
were
the
Equip¬
967
were
of
com¬
over
divided
Gamble,
a
$92
into
26
industry groups. The Dow-?
Jones stocks fell into 17 of these
classified
so
Stock Exchange
period
time
of
in
could
121.1
11.5
—
+
11.9
13.7
14.4
—
11.9
+
21.9
If
during
an
balance
the
seven
oils
can
+
Excl. A.T.&T.
1.7%
1.3
1.0
1.1
0.9
8.4
7.0
7.1
6.4
1.5
3.8
1.3
3.5
16.4
19.4
2.9
5.2
_______
1.2
2.0
1.0
1.8
Bev.
5.2
Products
2.4
and
__
9.0
0.4
3.7
4.1
__
+'!
7.0
5.3
6.3
4.8
3.2
3.5
1.1
Nat.
Gas 23.0
10.2
0.4
Real Estate
Retail Trade
-
•
__
6.3
6.0
1.1
5.5
19.5
,
—
__
5.1
0.2
8.4
3.9
Textile
2.1
Tobacco
1.6
Utilities
+
__
Miscellaneous
__
1.2
U. S.
__
3.8
1.5
Cos.
Oper. Abroad
an
advance
Jones
^Railroad
Stock
in
the
2.5
,2.2
Railroad
Equipment
group
7.7
of
'
""
on
all
the
listed
basis
common,
of
one
15.2
of
each of
the
thirty stocks.
shares c
260,000
Corp. common
stock
share, and the
ne
pay cos
gathering
lines:
plants for six gas well:
commercially completed, and an '
balance will be used for working
.
capital and general expenses.
Curtis Lipton
Co. Former
(Special to The Financial Chronicle)
Lipton
Cal. —Curt'
engaging in th
ANGELES,
is
now
securities business from offices
r
511 South Serrano Avenue, undc
8.8
name
of Curtis
Lipton Ct-
With Merrill Lynch
(Special to The Financial Chronicle)
1.3
2.1
LOS
2.0
-
Exchange industry percentages are based on total value
shares in each group, while the Dow-Jones is computed
share
of
Oil
3.4
•
Exchange values in each table.
Loi.
on
installing
the firm
1.8
1.3
has been omitted from New York
The New York Stock
"Dow--
Average," but if it were it
and
of
1.0
__
issue
LOS
5.5
0.9
0.2
4.6
circular
recently offered by Aigeltinger &
Co., New York, have all been
sold, it was announced on Oct. 8,
The shares were originally of¬
9.3
J
5.4
Shipbuilding and Oper.__
-
An
Baruch
0.3
Steel and Iron
a
and/or
8.2
1.8
and
is
proceeds will be used to
0.3
1.3
I
Chemical—Circular—.
fered at $1 per
2.0
4.4
2.1
•
Cerf J J
D.
Baruch Oil Stock Soli
Incl. A.T.&T.
5.7
Thermo Kin*:
Star Steel.
Incl. Util.
21.3
on
Floyd
—
available
Dow-Jones
3.4
—
Reilly & Co., Inc., 61 Broac
way, New York 6, N. Y.
AL
*Stock Exch.
19.3
Data
F.
44.6
split, in about
was
Leather
206.7
West End
—
1.0%
Rubber
points in Freeport Sulphur.
Its
142.9
40.0
—
Company, Inc., 120 South
Street, Chicago 3, 111.
New York Stock Exchange, July 31, 1951
Foreign Companies
stock
&
13.5
+
Control
Salle
1.8%
Petroleum
and
This
not
—
Thermo
Analysis
19.6
+ 38.0
—
10.4
Office Equipment
out.
of 32
is
115.6
159.5
Paper and Publishing
the
groups. Groups not represented in
the Dow-Jones were:
Financial,
Products, Office
143.7
Machinery and Metals—
Mining
points.
Before its recent
16.8
16.3
+ 41.3
Leather and Its Products
chemicals, the "Industrial Aver¬
would; change
over
four
•
+
S.
Vitro Manufacturing Company
1.2%
Food
age"
two months there
117.9
+
Farm Machinery
Financial
this period we assume
four point advance or
in
14.5
11.5
Dow-Jones
21.
Railway.
25.8
—
Electrical Equipment
average
decline
+
Chemical
grouping. Over a
it is conceivable
about
is information
+161.5
Building Trade
that mixed movements in 23 Dow
stocks
listed, having
value
These
on
1951, excluding
Railroad
there
group,
stock
&
listed
Exchange.
July 31,
Railroad
ment
mon
of
Stock
&
on
Co.,
Raymond & Co., 148 State St.,
9, Mass. Also available
Automotive
three oil and four chem¬
are
30.3
U.
Amusement
illustration,
an
—
13.1
/
&
Boston
23.2
Excl. Ulil.
misleading picture of the
As
22.4
Aircraft
ical stocks in the Dow-Jones. This
by industry groups
As
there
of stocks
groups
+
62.4
*Stock Exch.
is omitting from chemicals Proctor
tion. The basis of comparison was
the value of common stocks
the
a
market.
Indus¬
is
with
New York
create
89.5
163.2
—
Salle
Street, New York 4* N. Y.
22.6
—
'
orandum— Hirsch
Broad
28.8
+
197.46
son &
Co., 39 South La
Street, Chicago 3, 111.
+
—
276.37
Listed
a
properly bal¬
industry representa¬
"Dow-Jones
Average"
anced
two
or
stock
We attempted next to determine
whether
one
low
so
Manufac¬
turing Co.—Memorandum—Lea-
—
•
32.7
193.16
Hill
Tide Water Associated Oil—Mem¬
—
161.60
228.38
—
Texas Engineering and
+ 55.3%
— 21.3
+128.7
—
analysis
&
Calif.
.
Industry Diversification of Dow-Jones Industrials and Those
divisor, it is
easy to visualize a situation where
selective strength or weakness in
Using
102.7
73.1
186.85
—__
July, 1950—
Sept., 1951
many persons
rely on the "Averages" in
paralleled those in the Standard formulating investment policy. In
brokerage offices all over the
& Poor's
Index.
The latter
in¬
cludes 365 industrial stocks and country one hears their phrase¬
is weighted for the number
of. ology: Double bottoms, line for¬
triple
tops,
resistance
mations,
shares of each stock outstanding.
The
greatest discrepancy
be- points and the like. A number of
services based on interpretations
tween the two averages was for
of the Dow Theory are sold. Thus
the period
between April,
1942
the weight of buying and selling
and May, 1946. During that time
the "Dow-Jones Industrials" ad¬ due to a particular pattern in the
vanced 128.7%, while the Standard
"Averages" can be substantial.
"
135.5
117.0
133.8
June, 1949
June, 1950
who
•
-
Revised
Co.,
621
South
Spring Street, Los Angeles 14,
: 68.6
165.39
July, 1947
Mar., 1948—
June, 1948
lower the divisor.
great
58.2
—
Richards
23.7
,
•
83.8
+ 23.5
212.50
major stock dividends will further
a
pany
1C6.5
23.3
—
1942—92.92
May, -1946
have lost its ability to effectively
are
Tennessee Gas Transmission Com¬
30.0
6.7
.
v
—
.
4.7
—Standard & Poor's—
—
163.21
There
;
Co.
randum—Smith, Barney & Co.,
14 Wall
Street, New York 5,
N. Y.
\
1
^ ^5^-
'
1940
111.84
1940—______ 138.12
1947
age" since the market low (98.95)
on
March 31, 1938, have closely
*
+ 60.1%
1939—_—.— 121.44
1939
155.92
May,
on
-
—
10.7
*
98.95
158.41
163.12
Dangers of Relying
5.0
48.4-
184.49
however, the per¬
47.2
2.8
Producing
Standard Oil of Indiana—Memo¬
54.2
Fluctuations in Dow-Jones Industrial Average Compared With Those
in Standard & Poor's 365 Industrial Stock Index
1947
say,
—
Gas
Co., Mercantile Bank Build¬
ing, Dallas 1, Tex.
73.3
7.2
3.6
—
~+1.9
—
1946__
Strange to
1.3
4.2
—
/
Products
Feb.,
movements.
Street, New York 5, N. Y.
Southwest
17.981.7
18.4
58.6
8.5
Oct.,
market
Pulp Company—Scott
Paper Company Merger—Bulle¬
tin—Dean Witter & Co., 14 Wall
3.2
^•Standard. Oil of Calif.
to con¬
Building, Rochester 14,
Y.
9.4
May 9, 1945, to the present figure
of
6.72.
Future
stock
splits or
dis-
N.
Sound view
—
by a low divisor and ineluding only thirty stocks, might
perhaps the "Average,"
Powers
59.7::
STOCK DIVIDENDS—
Apr.,
Sept.,
June,
Nov.,
Apr.,
Falls
—
ADJUSTED FOR
the
the
Seneca
on
24.7
Woolworth
Ex¬
and
Co.
Seneca Oil Company—Analysis—
Genesee Valley Securities Co.,
20.0
28.8
Co.
Machine
63.8
Steel
Corn
mem¬
2.8
Westinghouse Electric.
that
a
Gear Grinding Ma¬
on
31.0
Gamble—-
divisor
torted
0.7
—
4.7
Dow-Jones
credence
but rather
28.9
—
chine
14.0
U. S.
Also available is
orandum
73.1
United Aircraft
change groups, including and ex¬
concern,
6.3
4.0
Texas Company
with
and
Telephone,
percentages,
—
Union Carbide
show the Dow-Jones in¬
we
dustry
\
13.6
out¬
In
study.
Mass.
61.7
8.1
Oil of
A
memorandum—Lerner & Co., 10
Post Office Square, Boston
9,
112.4
2.6
20.8
comparison is
the
showing
included
centage fluctuations in the "Aver¬
.
36.4
19.3
Sears Roebuck
"Dow-Jones Average." Our study
-
percentage changes in the "In¬
dustrial Average" and its
com¬
ponent stocks. We therefore felt
.measure
,
47.5
29.2
3.7
National Steel
on
Wash.
2.0
26.2
Procter &
—
Riverside Cement Company—Card
43.7
30.2
Oil of
values
group
-
little correlation there is between
that
•
_
has
study
3.0
12.3
—
National Distillers
industry diversified of the DowJones stocks is reasonably in line
industry
Nickel--
Development Limited
Analysis—John R. Lewis, Inc.,
1006 Second
Avenue, Seattle 4,
23.8
—
21.6
Manville
N. Y.
102.1
Loew's
standing. Subject to this fault in
the comparison,- we feel that the
with
5.5
11.0
18.1
International Harvester
Standard
the New York Stock Exchange.
5.0
1.3
Haupt & Co.,
New York 6,
Broadway,
Placer
28.0
5.6
International
Ill
56.4
3.0
—
Service
—
England Company
—Analysis—Ira
0.4
4.4
21.9
__
Standard
low divisor used in computing
andl
In Components
each
of
shares
of
number
5.2
—
36.3
—
33.6
8.4
Johns
,
Bulletin
Northern New
58.1
»
Public
&
62.4
the
for
stocks
Dec. 3ft,'50 to Dec. 31/48 to
24.6
Smelting
—
Remer,
Reitzel, Inc., 208
South La Salle
Street, Chicago
4, 111.
Corn
We did not take time to weight
Dow-Jones
—
Mitchell
Chrysler
Abroad.
the
Dec. 31,'4f> to
Corporation
Indiana
Company
15.1
Bethlehem
Miscellaneous and
Companies Ope rating
S.
Northern
cinating field for exploration.
13.3
Chemical
duPont
cluding Utilities.
We are
not
happy
Changes
Average"
U.
skill,
more
fas-
Homes
Analysis — Kiser, Cohn & Shumaker, Inc., Circle Tower, In¬
dianapolis 4, Ind.
45.4
American
ating, Textile,
the
and Literature
National
July 31,'51
American
Equipment, Paper & Publishing,
Real Estate, Shipbuilding & Oper¬
We
greater
time, and particularly
patience, may find this a
more
9.5
American Can
ShouldlD-I Averages Be Revised?
for
with
July 31, '51
Goodyear
31, 1951.
price adjustments
Persons
17.7
General Foods
July
done
12.9
Industrials
General Motors
and
have
we
8
page
ment Recommendations
is both incomplete and inconclu-
divisor.
American
it
1948
this subject and
Dec. 3ft,'50
Allied
11
'
on
work
from
Dealer-Broker Invest¬
Percent Gain
our
deed, Wool worth showed a decline
of
4.7%
between December
31,
the
sive.
General Electric
from
that
to
Eastman Kodak
Continued
ize
to
up
Dec.
of
carry
constant
Component Stocks
Exchange
us
held
new
Comparison of Dow-Jones Industrial Average and
oc¬
in the presence of
be
the
lead to further analysis. We real-
Nearly a
quarter century has elapsed since
banking and industrial guests. We
of the Exchange are engaged in a
work of utmost importance to our
Stock
York
New
and for me,
the 5
Dow-Jones
cooperate, and if need be to con¬
the
made
were
Dow-Jones
we
members
should
focus attention
"Aver-
Dec.
good text
a
both
additions
the
We
comfortable
of the
reads:
casion
or
Telephone.
more
validity
address
an
ideals. As such they
can
be solved, by application of
hard work and a willingness to
objectives
feel
the
increase
it."
about
we
Roosevelt
of
the
do
us
boast
text
there
delivered
of
not
means,
Theodore
which
tion
part,
,
perhaps 50 industrials. This would
•
Perhaps
It is hoped that this article will
if
age"
1928.
would like to
would
bring
the
1,
industrial stock substituted
;;
American
about
distort
can
Oct.
by again using multipliers to adjust for splits and the like,
our
an
for
date,
to
"Industrial
Average"
was
Continued
changed from 20 to 30 stocks on
the
For
I
(policies and programs, improving believe that I can count upon it.
and strengthening them whenever I am looking forward to getting
we
can.
Although the route is on a first name basis of friendship
v known,
its condition is uncertain. with all of you just as quickly
Undoubtedly the trip will be as I can.
Inscribed
in
concrete
on
the
rough in spots. There is consider¬
able lively discussion for example Trinity College campus is a'quota¬
reception
warm
divisor
the
membership for this delightful
dinner, I humbly ask for your
your
the
Dow components
Average."
are
be solved. At
that
time
same
that
and
problems
many
the
President
Exchange
keen awareness that I have
a
47
R.
ANGELES,
Tallman
is
now
Lynch, Pierce,
523
West
Sixth
|
Cal.—Donalc f
with
Fenner &
Street.
Merrill'
Beane,He
was
formerly with Dean Witter & Cc.
48
(1392)
The Commercial and Financial Chronicle
Continued
from
and
9
page
and
Are We
went to
We
their
that
war
the grounds
practices
tered.
tailed
those
to
which
before
have
I
plain
language,
we en¬
me
de¬
a
ment
nation
a
fearful
while
substance
ultimately,
and
We find,
final
to
destruction.
and
first-
tries
there
fiction
of
Excessive borrowings,
sult in
which re¬
In appearance each was
of the
under the laws
national debt.
Deficits piled upon deficits,
A huge
a
the day
it
Re¬
himself
showed
as
The idea
to
John
welcomed
his
and
a
We
country.
financing,
national debt, of deficit
unbalanced, of extrava¬
ultimately
the
ment subsidies?"
of
Administrative
is,
that
law,
regulation by men rather than
written statutes, and govern¬
they
fellow
nor
bureau-
again, in case you are
of,
supporter
or
poli¬
these
cies?
travellers,
are
deceiving
Britain
to be found in greater or lesser
They
The individual denied the free¬
gold.
own
This is in
of
no
Donkey in
to be considered
way
partisan
a
as
statement.
the
road
bilities of
to
control.
There
be
attacks
in¬
upon
the part of consumer and worker.
Then there is
fourth category
a
which deals with military activi¬
ties. Some believe these naturally
and
inevitably
follow
totali¬
in
tarian countries the economic and
social
course
just described.
informed by
tiistory,
I
him,
the Welfare State
inevitably moves into the Warfare
State.
tend
were
1
that
There
that
the
military
who
con¬
activities
to meet the threats
necessary
of other
some
are
countries with
agents.
of
his
He
political
a
is the
destiny.
own
is
Here
,
different
Whatever the
fourth
the
reason,
and
last
of
War
pointed
out
They
he
Conscription of
nine-tenths
that
the
of
this
for military
duty.
Regimentation, in the
name
of
States
of
industry
farming
to each
As
in
ap¬
were,
characteristics
and
of
are
the
chief
is
shall
the
a
said, our safety lies
citizenship. The
be on guard against
accepting slogans and catchwords
for
the
substance
Public
but the raft
its
in
not,
in
ism.
*
'
:
.
Our
Great Britain
course
changing
over
social¬
to
*
.
and
the people's
today.
They allocate them
they please. Not through taxa¬
tion
alone,
that
great
a
"take"
the
as
compulosry
pay
envelopes in the
name
to spend the people's
savings, is that of wiping out all
power
your
No need to provide
children.
battered down
Jeremiah
as
and Troy fell
sandra truly forecast.
We
•
must
write
Cas¬
as
Even
if
the
and
over
over
again the old copybook maxims:
Honesty is the best policy.
is
There
substitute for work.
no
brings
its
living brings its
Folly
Right
penalty.
own
own
reward.
The
legislative hall.
The copybook
to
haunt
us
headings will rise
if
we
do
heed
not
them, as Kipling, the great poetprophet, said half a century ago.
Let
for
repeat
me
you
the
last
State left you any
four lines of his remarkable poem:
"And
savings for such
it is unnecessary, for
the State takes care of all.
Hence,
long
in
way
years
America,
have
in this direction.
Washington
has
that
plished,
world
gone
a
In 20
collected
rights to
sub¬
1951.
Subscription
expire at 3 p.m.
will
38
of
group
investment
managed
by Blyth &
The underwriters have
firms
Co.,
Inc.
agreed to-
the full sweep of our purchase any unsubscribed shares.
Proceeds of the financing will
It has pro¬
abilities.
be rules and
men
rational
conditions
work
can
application
rules
on
in
be
used
in
company's
un¬
connection
with
construction
the
program
an
Up
to
State
are
generating station,
expected to provide
aggregate of 360,000 kilowattsrated capacity by
December,
1954.
To provide additional funds for
construction, the company has en¬
and
because
now,
of
of
part
River
under construction in which
four units
such
these
of
the
officials,
We in the
such
industry
form
a
have
made
this
tered
of
into
a
credit: agree¬
bank
ment
material
credit agreement.
much to
owe
of government.
debt.
we
have
We
payment
Petroleum
Special Libraries Assn<
on
products
produced in abundance.
To Meet Oct. 18
this
the
and
is
men
ing, and
sins,
no
' '
are
man
But
-
brave
new
must pay for
;
,
■
■
X
a
record,
18
might
we
we owe more.
of
real—owe
ment
more
believe
here and
should
we
now
pany
p.m.,
Bank.
If
of
will be
govern¬
than lip service.
this
7:30
at
the
Federal
Conducted by Mrs. Elizabeth W.
Owens of Mercantile Trust Com¬
We to whom
free
to
at
Reserve
given in the things
the spirit—intangibles but, oh
a
Speakers
we
account
resolve
Lynch,
to work to preserve
St.
Louis,
the
meeting,
Personal Finance Forum.
will
be
executive
Pierce,
John
of
Fenner
T.
Rosa,,
Merrill
& Beane:
Marion Stevens Eberly, director
to sacrifice time,
of women's division of the Insti¬
and thought to this pur¬
tute
of Life Insurance;
and
pose.
Each of us has a circle of
Catherine S. Pepper, in charge of
influence
some
great,
some
new
business development,
Na¬
small.
In these circles we should
tional City Bank.
the
Republic,
energy
<
—
resolve
to
devote
ourselves
to
bring about a better understand¬
ing of the system in which we
have worked and
lived, and which
has permitted each of us to get on
and up
We
cal
be
paid for exist¬
such
much has been
accom¬
begins,
When all
his
after
With
call the account balanced.
how
market place is mightier than any
Security.
Indiana,
(CST) on Oct. 24, 1951. The fi¬
nancing is being underwritten by
Wabash
earlier
an
predicted,
as
withholdings
of
by which it may borrow upto $40,000,000 during the periodt
try has been able to move forward
and
As of Sept,
petroleum and natural gas prior to Nov. 1, 1953.
18, 1951, the company had bor¬
now furnish more than 55% of the
rowed $14,000,000 under the bank
nation's physical energy.
of
were
is.
as
stock
8,
warrants
this intelligent attitude, the indus¬
The
piety and self-reliance.
After all, the walls of Jerusalem
sav¬
ings
as
primrose path to
life
Washington administrators
have control of
Co.
of charges that he is a re¬ They have been supplied without
actionary or a Jeremiah and Cas¬ stint in peace and in war.
They
The New York Chapter of thesandra.
After all, a reactionary have been improved day by day. Special Libraries
Association
is
exhorted us to return from the They have been provided at lower
holding its first meeting of thefleshpots of Egypt and the broad and lower prices.
1951 season on
Thursday, October
take
can
we
at
Oct.
on
a
use
Federal.
of
ravening wolf.
Service
common
scribe
impa¬
supplant local
our
industry owe much
It has given us free¬
government
citizen should speak out, unmind¬
industries at leisure."
This is the
took
we
a
not,
Inc., is offering to the holders of
now
a
political
A wolf in sheep's cloth¬
changes.
must
Pub. Serv. of Ind. Sik.
Local rule
raft where one's
highly
competitive
field.
It
realizes today that there has been
the
must
We
not, lose that heritage.
Bankers Underwrite
repre¬
a
All
awakened
an
citizen
America.
ful
hands
our
other
over
We.
totalitarianism,
patience.
weakling.
der which
be¬
in
a
must
Hitler's
moved
we
guarantees
individual
disregarded.
sight should bring pain to
an
industry early realized that there
There
of these five controls.
one
have
I
banks in
inheritance and estate taxes.
of labor.
as
should
necessary
has
constitutional
indigna¬
when
anger,
daily contests, where incentive is which for the period July 1, 1951
ever present. It has policed that to Dec. 31, 1954, will require thecontest with a greater degree of expenditure of an estimated $101,understanding than most other in¬ 182,000. The largest single proj¬
ect in the program is the new
dustries have
enjoyed. The oil
his
direction of communism in respect
to
even
Through the years man has
yearned to be a- free spirit.
The
culmination of his greatest effort
a field of opportunity where
competitive talents can engage in
which Hitler
Italy,
we
real American, a pain akin to
that produced by a physical blow.
vided
the
were
progress
a
We in the oil
in
provision,
of
Such
upon
difference
essential
ing is still
for
war,
a
the control
These
Mussolini's
"Before a labor government na¬
tionalizes any industry, it should
nationalize the banks.
With the
inheritances.
Huge military preparation.
will
are
im¬
placed
If
are
citizen.
$28,125 per share for
324,656 additional shares of com¬
tience, attempt to
effort by a strong central power. mon stock at the rate of one share
Again
history shows that the for each 10 shares held of record
autocracies.
was
Socialist
his
They
pay.
no
United
prin¬
More recently the British social¬
ist leader, G. D. H. Coles, said,
is, the
men
of
sinks.
We
During the past two decades the
one, in fact, the axle, was to
get control of the people's savings.
said
needs
the
see
communities,
again stronger
always wet,
are
never
are
Germany and Stalin's Russia.
Shakespeare put
"foreign
giddy minds."
rise
because of the ordeal.
Individual
man
a
work
must
were
cipal
later
we
had, and which Stalin has.
com-
The
the
fundamental powers
the spokes of
are
the communistic wheel.
bottle
a
make
to
and
that
out
local
but
is described
an individual's
savings, of his
production, of his wages, of his
hours of work, and of the prices
10
Following closely the first plank
quarrels to busy of the Communist Manifesto, that
it,
stumble
of
12
the
Over
powers
to
was
things to do to bring about
of Social
scares—as
pioneer
that people, as
dom to
order
Communistic Wheel
Marx
munism.
category of totalitarian character¬ from
istics:
by
to America.
fellowman.
For
is
campaign
in
foreign label, but
a
Five
cus¬
Washington is likewise
the danger of destruction is as borrowing and spending a large
great from within as from with¬ percentage of the savings repre¬
sented by life insurance policies,
out.
V'X.
>
and those in savings banks as well
Ideologies.
fact
individual
months long and every year.
am
scholars, students of
of
has been taken from him becomes
communism
Controls
dustry which destroyed its mo¬ paratus.
rale, and created antagonisms, on
the
today.
responsi¬
They can¬
wholly to his
delegated
todian
Lenin
were
in
sented
drinking heavily from that bottle
free man.
a
is
with
which bellows poritifically that he
will do it better. *
Karl
publicity experts
to carry out the government's
program of indoctrination.
Encroachment upon freedom of
the press ending in complete
Great
of
purposes.
who
restraints
individual
We should be quick to
not primarily for rev¬ strong central power becomes ar¬
They are for the purpose bitrary and tyrannical, and the
equalitarianism.
They are to individual
whose
responsibility
tween
of
Bible
leveling
the
of
the
are
tion
back
are
It
complete
totalitarian rule than the Elephant
Axle
Class conflicts stimulated.
for
are
points
people,
our
the dangers that
threaten and jeopardize individual
coun¬
get
calls for
course
a
Fortunately,
of
strength of democratic action lies
redistribute wealth.
The
is no more an
communism while
power
of
Subversive forces encouraged.
Thousands
Such
History
credit
should approach
enue.
are
political
find-
Private investments restricted.
dom to
the Socialistic
or
Practically every one
of the characteristics I have listed
Russia
of
we
of
States help those who help themselves. ■
feet
Bible
We
communities, to the state.
Yes, and to impress upon foreign
people that God and the United
,
the
initiative without partisan accent.
to
self-reliance
me
who
standing out against the easy
upon
days. It is not too late to restore
The
that
or
the
time
yet
lines.
party
patient
late, but there is yet time.
is
for
unnecessary
trends of today, men
the
level
sup¬
X:','
to
responsibility to the individual, to Such
you
naked, unadorned fact is
big debts, and high taxes in
the
to
and
out
have in both parties men
are
local
answer
Maybe
of
real
are
clearly and
willingly.
They
see
singled
hope it is
and
longer have
government-dominated
to
a
simple
a
the Communistic
communism
not
To go on, we
is
somewhere.
stores
no
be
across
Inde¬
Problem.
reduced
There
tricks.
have it.
The citizen should be vigilant.
confused, this is a description of
He should awake to the reality
the totalitarian countries,
that if he is to survive as a free
Are you, Mr. Suspect, in favor man he must assume the
of,
There
this
of
traveling
cracy.
Rember
that
exponent
decree.
planned economy.
greatly enlarged
A
itself!
to
honestly be¬
are
not Com¬
degree in the United States today.
Hitler's
remember
people's court?
ment by
indi¬
the
the
shall
we
be
It is
nation
is better off when it borrows from
themselves.
independence
the
—
of
servant
a
of
sacrifice
again to say that these groups cut
a
ours
tries of the Old World.
Britisher's advice,
a
accepted, that
we
either do not recognize the works
Chief Executive.
courts
disregarding
which
Some of those who
other munists,
are
Concentration of powers in the
Sapping
State
lieve
here
come to every people
the State and
vigilant enough to keep
not
vidual.
gant public works, and of govern¬
To carry on,
characteristics:
the
tinues to borrow billions from us,
who depended upon
were
has
who
ported.
we
ravaged
shall
Keynes
The German courts We had become a little uneasy as
still handed down decisions.
The we pursued our wayward course
Confiscatory taxation.
Fuehrer
sacrificed
His/
himself,
as of borrowing and spending.
Extravagant public works.
Subsidies to various groups of does Stalin today, to the will of doctrine, cockeyed as it was, re¬
the people in a national election! assured us. It rationalized a policy
citizens.
that we weren't very certain of
Such conditions led to economic
Remember, these are the char¬
nor proud of.
acteristics of the totalitarian gov¬ and social bankruptcy and paved
Some of us are stupidly won¬
ernments with which we went to the way for a receiver, whose job
war.
To detect pr identify a was ruthless liquidation. This has dering why Great Britain con¬
Communist maybe we should ask
the question, "Do you approve of
excessive borrowings, of a huge
should
I
Gimme
Immigration
an
real dictator.
Unbalanced budgets.
of budgets
have
Americans
economic
of
bag
the
ants and
brought
Maynard
old
We
Dependence;
honest
are
There
ground.
Americans
who
We must act promptly or before
we know it the
grasshoppers will
home¬
was
of
Declaration
still
this
'
of
who
but who are im¬
They should be met on
practical.
pendence.
by a man who couldn't sell
his own country.
Or any
other
met up to
that Hitler threw off the
and
mask
result of
here
not
was
Land
those
are
idealistic,
We
good
motto,
"In
God
Washington
is
indulging in
not spawned here.
was
It is alien.
operating
land.
call that the Reichstag
It
grown.
a respect
government.
legalism,
of
for the constitutional
doctrine
This
the
maintained
was
the
"In
The
We fell for the absurd doctrine
the
of
restore
Thursday, October 11, 1951
.
and
slaughter
Declaration
willing to accept the large government borrowings.
ago,
and
Trust" is un-American.:
road to socialism and on to com¬
munism it does so by
must
Trust."
the
down
slides
terror
.
There
us,
"aV/;1:" xK-'X "■;■>
American
of
in form?
"Why worry about debt as
We must recall that in
countries, policies which led each of these totalitarian coun¬ long as we owe. it to ourselves."
disintegration
...
We
picture of the policies
war
A
return!"
are cap¬
of
As
wet
as Fire will burn,
The Gods of the Copybook Head¬
the kind of
Suppose we
Is there a paradox here?
Does
characteristics
of our anyone recognize a deadly paral¬
Are we, as suggested a mo¬
onemy countries in the years just lel?
war
Or in
ital levies!
the
preceding the
mistake, these
will
Water
as
surely
ings with
Make no
of the United States?
list
a
surely
as
government, the way confiscation of property!
Communism is as communism
life, which, to keep from our
well-being shores, we went to battle.
does.
the
to
As
taxes, and the states two
half billions more in estate
taxes.
Going Totalitarian?
policies and
inimical
were
on
of inheri¬
spent ten billions
tance
.
in the world.
should
leaders
leaders.
evaluate
t
our
are
(Special to The Financial Chronicle*
Carlton A. Opel and D. M.
Opel
politi¬ have formed Carlton A. Opel &
and those who would
There
Carlton A. Opel & Son
Formed in New York
those who
Son
with offices at 4206
Carpenter
Avenue, New York City, to engage
unduly selfish and ambitious. in the securities business. Carlton
policies
and
promises A. Opel was formerly with Bache
should be weighed on these scales. & Co. and Francis I. du Pont
& Co.
are
Their
)
Volume 174
Number 5054
.
The Commercial and Financial Chronicle
.
.
(1393)
4»
:i(;i
rj
,'
The following statistical tabulations
Indications of Current
latest week
Business Activity
AMERICAN
IRON
Indicated
steel
Latest
AND
STEEL
operations
INSTITUTE:
(percent
of
AMERICAN
Crude
castings (net tons)—'
____
to
runs
Week
Ago
101.8
Oct. 14
102.6
that date,
2,035,000
Kerosene
;
(bbls.)
1,959,600
Kerosene
(bbls.)
oil
(bbls.)
(bbls.)
New
116,558,000
6,550.000
6,666,000
6,051,000
6,428
7,201
21,752,000
"$40,000
$29,800
8,460,000
UNITED
Sept. 29
8,332,000
8,358,000
8,741,000
8,306,000
INC.—Month
113,072,000
115,201,000
104,383,000
Sept. 29
112,356,000
*33,837,000
97,019,000
^______________'__Sept. 29
47,569,000
2,471,000
BUSINESS INCORPORATIONS
BUSINESS
'
33,529,000
27,849,000
95,164,000
30,417,000;
87,282,000
47,644,000
47,596,000
etc
42,330,000
STATES—DUN
&
NEW
(millions
of
IN THE
BRADSTREET,
August—
INVENTORIES,
MERCE
76,734,000
of
(NEW)
DEPT.
OF
SERIES —Month
COM¬
of
July
dollars):
Manufacturing
Wholesale
Revenue freight received from connections
CIVIL
ENGINEERING
S.
Private
864,573
864,310
829,391
880,186
_Sept. 29
(number of cars)
—
ENGINEERING
RECORD:
Total U.
V.
—Sept. 29
702,392
693,041
680,468
731,004
■
construction
I
NEWS-
;,f:/■■■■::.•
State
and
'.
:
$421,940,000
$335,092,000
$160,461,000
"$70,500
$53,200
16,931,000
315,014,000
227,640,000
Oct. 4
157,407,000
106,926,000
107,452,000
61,277,000
99,184,000
.
municipal
S.
500-!b.
DEPT.
of
as
17,291,000
10,012,000
68,052
219,721
228,2ft*
OF
Oct.
1:
gross-bales—
$287,974,000
COTTON
SEED
AND
COTTON
SEED
PROD-
"
UCTS—DEPT.
130,567,000
__Oct. 4
24,967,000
66,288,000
74,586,000
45,725,000
Oct. 4
81,959,000
41,164,000
24,598,000
84,842,000
Federal
_
U.
—
AGRICULTURE—Estimates
_Oct. 4
Oct. 4
construction
9,300
14,100
$70,700
PRODUCTION
Production
■
,
construction
Public
*11,900
♦18,700
Total
COTTON
CONSTRUCTION
11,700
18,600
Retail
_____
August:
Cotton
s
OF
COMMERCE—Month of
..
.
Seed—
-
-
Received
at
Crushed
(tons)
mills
itons)_i__»i_^_^:_"-M-_.
554,938
-
COAL
OUTPUT
Bituminous
(U.
S.
BUREAU
and
coal
OF
MINES):
Stocks
lignite
Pennsylvania
(tons)
(tons)
anthracite
Beehive
Sept. 29
11,050,000
*10,940^000
10,595,000
11,610,000
Sept. 29
(tons)
coke
937,000
833,000
872,000
1,030,000
131,500
*136,000
127,100
159,900
Sept. 29
Crude
(tons)
STORE
SALES
TEM—1935-39 AVERAGE
INDEX—FEDERAL
100
=
RESERVE
Sept. 29
-
327
Produced
ELECTRIC INSTITUTE:
Electric output (in 000 kwh.)
Cake
Oct. 6
7,155,921
7,101,794
6,795,370
and
(COMMERCIAL
INDUSTRIAL)—DUJ*
AND
A
j
STREET, INC.
133
154
154
116
COMPOSITE
Finished
Pig
steel
iron
(per
Oct. 2
4.131c
Electrolytic
(E.
&
M.
4.131c
3.837c
Stocks
$52.69
$52.69
$46.61
$43.00
$43.00
$40.67
24.200c
24.200c
tin
(St.
York)
York) at
(New
Lead
Zinc
Louis
(East St.
)
Oct. 3
27.425c
27.425c
27.425c
24.425c
103.000c
103.000c
103.000c
106.000c
19.000c
17.000c
17.000c
16.000c
Oct. 3
(New
Lead
Oct. 3
_Oct. 3
18.800c
16.800c
16.800c
15.800c
Oct. 3
19.500c
17.500c
17.500c
17.500c
-Oct. 9
Straits
98.02
97.99
98.99
101.62
at
at
Louis)
at-
—j
BOND
PRICES
'
.Oct. 9
111.25
115.82
115.82
-Oct. 9
115.04
115.24
111.25
\v
111.62
115.24
109.97
110.15
110.52
_
..
104.66
104.83
LABOR—REVISED
107.80
108.16
108.16
Employment
All
All
111.07
111.07
111.44
114.85
115.24
119.20
157.5
goods
2.63
2.57
LIFE
2.8*7
INSURANCE—BENEFIT
3.16
2.90
Death
3.48
3.47
3.46
3.22
Matured
3.29
3.27
3.27
3.08
.
LOT
DEALERS
3.11
3.11
3.09
2.85
2.92
2.91
2.89
2.69
Surrender
463.8
463.5
458.3
465.7
206,321
155,900
184,783
253,120
218,174
214,310
216,789
236,422
90
90
93
103
SPECIALISTS
N.
Y.
„
,_
148.9
Number
of
orders—Customers'
short
other
149.1
Sales
137.6
149.2
Customers'
short
other
total sales
35,640
25,316
29,636
1,077,194
732,686
884,732
$46,148,934
$32,384,364
$42,249,065
__Sept. 22
32,871
35,065
22,960
__Sept. 22
of
228
252
252
22,708
33,531
Sept. 22
929,213
34,813
1,009,067
634,813
964,241
,__Sept. 22
8,148
8,183
7,834
10,843
_Sept. 22
'
1926
921,065
1,000,884
626,979
$40,475,280
$26,670,690
295,190
192,610
PRICES, NEW
SERIES —U.
S.
DEPT.
295,190
192~610
354~040
364,750
372,730
275,430
272,110
OF
Total
Total
PRICES
contributions
for
41.0
*20.3
18.8
28.8
2i.d
social
3.5
3.5
interest
transfer
income
and
3.*
45.3
*20.0
18.-1
12.6
payments
nonagricultural
h
19.8
dividends—
2.0
3.8
*48.0
3.8
49.3
income
V
income
RECEIVED
of
July
BY
FARMERS
DEPT.
S.
August,
—
12.8
12.2
299.2
*230.1
204.0
—
INDEX
AGRICUL¬
OF
1914—100—As
1909-July,
Oct. 2
I
*
Oct. 2
*176.7
191.1
183.8
376.8
169.2
*190.5
189.4
178.5
182.2
180.0
All
15:
167.4
_Oct. 2
260.1
*260.0
*188.8
1
188.5
284.7
282.1
279.4
other
than
farm
and
>
foods
-Oct. 2
165.3
*165.1
165.7
160.8
*159.5
166.7
162.6
*138.7
138.0
135.1
190.5
products—
^
;
Building materials
159.1
138.8
_„Oct. 2
190.0
Oct. 2
Lumber
x
Chemicals
and
•Revised.
?Not available.
allied
.
Oct. 2
Oct. 2
-
lighting materials
and metal products
products
J
Oct. 2
•
188.2
222.1
Truck
220.6
,
:_Oct. 2
141.0
Livestock
141.1
140.1
Meat
Dairy
130.8
j-
crop's
.
...
„
,
438
u..--.
387
animals
278
211
189
200
267
335
287
eggs
avoid disclosure
414
422
371
272
269
232
222
-—
shown to
358
332
—
products
tNot
353
317
——
products—.:
and
Poultry and
•Revised.
.
200
204
Oil-bearing
;
I
19tj
175
crops
j
*
217
329
t
341.9
.
230
-220
.438
—v
—
{
177.8
*222.6
*342.7
„
Cotton
Fruit
■
^Includes 542,000 barrels of foreign crude runs.
223.0
343.6
>
Tobacco
263
240
213
grain
Feed grain and hay..:
224.6
263
252
236
—
Food
246.7
255.8
301
294
products
Crops
174.0
Oct. 2
,
farm
'
1
*45.6
20.2
Unadjusted—
177.2
,
189.5
and
63.9
45.7
—-—
income
NUMBER —U.
LABOR—
Oct. 2
Meats
Textile
*75.2
74.5
dealers—
Livestock
Fuel
146.1
"
29.2
employee
Personal
Sept. 22
products
Metals
143.2
*169.9
insurance
160:
commodities
$222.7
*166.4
industries
industries
Other labor
354,040
281,400
Sept. 22
;
•281,400
__Sept. 22
I
Grains
All
*$251.0
166.1
169.6
COMMERCE)—Month
Government
Less
$38,350,289
Sept. 22
commodities
Farm
and
Service
953,398
$37,508,929
!
sales_
of shares
=
OF
income
salary receipts,
Distributive
TURE
All
$27,010,000
billions):
(in
Proprietors' and rental
Other sales
WHOLESALE
♦$27,809,000
STATES
'
Number of shares—Total
Short sales
by
IN THE UNITED
total.:
employer disbursements
Commodity producing industries
265
32,643
Sept. 22
purchases
18,68a
'
value
Number
*22,375
peisonal
Wage
Round-lot sales by dealers—
Round-lot
July
Total
33,796
Sept. 22
sales
sales
Dollar
$29,790
:
Total
sales
Customers'
•
15,860
*$39,739
SERIES—
__
(DEPARTMENT
35,154
1,025,367
$45,026,496
sales)—
sales
Number of shares—Total
y.
_Sept. 22
sales
Customers'
$13,92tf
*20,715
SALES
&
NEW
(millions of dollars)
PERSONAL INCOME
Sept. 22
Customers'
*$19,024
$251.6
INVENTORIES
COMMERCE)
44,147,000
MONEY IN CIRCULATION—TREASURY DEPT.
Sept. 22
(customers'
$277,771,000
Nondurable
ODD-
,.
purchases by dealers
OF
STOCK
—
$338,256,000
Total
value
Odd-lot
—£:
Durable
.
714,877
EXCHANGE—SECURITIES EXCHANGE COMMISSION:
by dealers (customers' purchases)—
Dollar
50,442,000
Inventories:.
Odd-lot sales
Number of orders__
Number of shares
-—i
dividends
(DEPT.
470,841
—
values
Month of July
INDEX —1926-36
THE
ON
21.183,000
57,296,000
65,101,000
TO
LIFE
-
Total
.
_Oct. 5
AND
OF
July:
endowments
Sept. 29
OF
of
benefits
Sept. 29
ACCOUNT
22.512,000
$307,283,000
PAYMENTS
INSTITUTE
—
Disability payments
Annuity payments
MANUFACTURERS'
ODD-LOT
7.462,000
22,550,000
54,131,000
19,898
3.14
,
3.17
475,903
$117,588,000
36.949,000
8,247,000
$40,348
INSURANCE—Month
458,150
$142,116,000
42,984,000
20,828
POLICYHOLDERS
2.71
Sept. 29
38,234,000
$19,520
2.66
2.89
of period
6,799,000
48,788,000
2.84
Percentage of activity
7.978,000
*6,954,000
8,152,000
3.08
2.86
2.89
Sept. 29
THE
14,777,000
*8,996,000
6,974,000
$135,428,000
3.10
2.90
ASSOCIATION:
FOR
*15.950.000
8,855,000
:.
_*
2.86
(tons)
STOCK TRANSACTIONS
148.3
367.5
2.38
Oct
_Oct. 9
100
"159.3
*435.5
15,829,000
i
—_—
goods
3.10
(tons)
=
6,597,000
5,551,000
$27,851,000
2.63
Policy
AVERAGE
*5,647,000
425.5
manufacturing
.Oct. 9
PRICE
12,148,000
•7,406,000
5,664,000
of employees in manufac¬
industries—
turing
.Oct. 9
REPORTER
*13,053,000
7,240,000
indexes—
Nondurable
MOODY'S COMMODITY INDEX
12,904,000
*
goods
.Oct. 9
DRUG
2,131
indexes—
.Oct. 9
AND
1,321
857
of
workers)
manufacturing
-Oct. 9
PAINT
1,576
374
Estimated number
116.02
114.66
AVERAGES:
Baa
OIL.
4,037
DEPT.
manufacturing
Payroll
111.62
Oct. 9
(tons) at end
157
961
SERIES—Month
(production
.Oct. 9
Unfilled orders
180
t
1,364
___
PAYROLLS—U. S.
.Oct. 9
PAPERBOARD
1.57
t
3,634
_•
__
-Oct. 9
Orders received
81,540
136
(1,000 pounds)—
_
Nondurable
109.06
Bonds
Aaa
Production
68,236
22,08$
484
__
_
Durable
NATIONAL
_
_
31
AND
51,560
21,308
131
.
.
etc.
_
38,205
489
_
August
54.617
55,28(1
bales)—
__
manufacturing
Durable
goods*
All
DAILY
72,965
16,963
26,130
63,819
..
..
31)—
All
115.04
104.48
Oct. 9
YIELD
20,157
51,557
_
(1,000-lb.
EMPLOYMENT
118.80
-Oct. 9
BOND
31_
_
Produced
119.82
.Oct. 9
-Oct. 9
Government
119,490
18,914
...
45,347
Shipped
115.63
116.22
•
-Oct.-9
Baa
S.
104,673
July:
-Oct. 9
MOODY'S
121,170
51,002
44,104
(August
Stocks
DAILY AVERAGES:
Aaa
U.
August
Fiber
OF
MOODY'S
---
(tons)
Shipped
Motes, Grabbots,
24.200c
71,645
32,880
.
August 31
_
24.200c
97,930,000
92,222
___
.:v.
Produced
copper—
Oct. 3
31
Shipped
Stocks
;
155,135,000
106,524
Produced
$43.00
QUOTATIONS):
Domestic refinery at__
Export refinery at
78,244,000
63,465,000
50,4.67
4.131c
$52.69
Oct. 2
J.
24,446,000
57,343
_
Shipped (tons)
Linters, (running bales) —
Hull
METAL PRICES
August
(ions)
Oct. 2
Scrap steel (per gross ton)
40,499,000
97,735,000
__
;
v
Stocks
PRICES:
(per lb.)
gross ton)
147,024,000
(tons)
Produced
IRON AGE
85,971,000
98,103,000
31_
(tons)
Hulls—
Oct. 4
27,101,000
-;u.
(tons)
Shipped
BRAD-
24,271,000
43,033,000
72,730,000
Meal—
Produced
FAILURES
275,93?
20,121,000
60.200,000
_
(pounds)
Stocks
6,513,707
66,281
44,582,000
(pounds)
(pounds)
.
EDISON
71,061
29,133,000
31_
August
Produced
(pounds;
Consumption (pounds)
320
303
August
Oil—
Stocks
♦320
■
199,035
422,184
_
August 31
(pounds)
Refined
SYS¬
___
Oil—
Stocks
Shipped
DEPARTMENT
\
19,624,000
in pipe lines—
ASSOCIATION OF AMERICAN RAILROADS:
Revenue freight loaded (number of
cars)
AftO
of
Additions, alterations,
21,085,000
9,572,000
—
112,134V
Ye*s! '
S.
nonresidential
2,393,000
at___
314,051
96,545
$40,400
5,903,450
9,547,000
at
oil
640.609
202,036
6,500
U.
residential
6,231,800
2,549,000
Sept. 29
$1,066,790
688,062
102,309
THE
LABOR —Month
OF
6,297,950
9,124,000
_>
$986,643
223,072
OF
omitted):
at____—___________ .Sept. 29
(bbls.)
Month
$700,541
AREAS
construction
29
________I_Isept.
at__
Residual fuel
DEPT.
(000's
building
Sept. 29
gasoline
Distillate fuel
S.
U.
—
URBAN
22,140,000
2,622,000
_________
unfinished
and
Sept. 29
date;];
Previous
375,160
IN
New
6,303,500
of that
Month
v
____Sept. 29
___
refineries, at bulk terminals, in transit and
; Finished
42
__
Distillate fuel oil output (bbls.)—
Residual fuel oil output (bbls.).
"Stocks at
of
—_Sept. 29
(bbls.)__.
output
(bbls.
average
are as
BUILDING CONSTRUCTION PERMIT VALUA¬
101.6
1,999,000
either for theT
are
Latest
July
(bbls.)___
average
of quotations,
cases
Ago
100.0
2,051,000
in
or,
Year
All
.
stills—daily
Gasoline output
:
Month
on
production and other figures for the?
cover
Dates shown in first column
TION
INSTITUTE:
condensate output — daily
and
gallons each)
y
14
month ended
PETROLEUM
oil
Crude
Oct
or
Previous
Week
capacity)
Equivalent to—
Steel ingots and
week
month available.
or
217
1731
of individual operations
50
The Commercial and Financial Chronicle
(1394)
.
Thursday, October 11,1951
..
* REVISIONS THIS WEEK
Securities
Now in
Oct.
dress—c/o
John
Goldoil
Oct
Grand Rapids, Mich.
Oct.
all sold.
Bldg., Toledo 4, Ohio.
California Tuna Packing Corp., San Diego,
Calif.
Oct. 4 (letter of notification)
$300,000 of 6% convertible
sinking fund debentures due Oct. 1, 1966. Underwriter—
Wahler, White & Co., Kansas City, Mo. Proceeds—For
general, corporate purposes. Office — 2305 East Belt St.,
San Diego 2, Calif.
Commonwealth Edison Co., Chicago, III.
Oct.
10 filed
(10/30)
1,716,500 shares of cumulative convertible
preferred stock (par $25) to be offered first for subscrip¬
tion by common stockholders on basis of one share of
preferred for each eight common shares held.
PriceTo be supplied by amendment.
Underwriters—Glore,
Forgan &
and The
Co.
Proceeds—For
new
First Boston Corp., New York.
construction and to repay
Whitehead
in
(10/26)
preference stock (par $50)
—convertible up to and including Nov. 1, 1961.
Price—
To be supplied by amendment.
Underwriters —Union
Securities Corp. and W. C. Langley & Co., New York.
Proceeds—From sale of stock, together with $3,000,000 to
be received from private placement of 15-year deben¬
tures, will be used to provide additional working capital
required in connection with increased volume of busi¬
ness, and to reduce short-term loans.
(C. F.) Co., Waterville, Me.
Oct. 2 (letter of notification)
12,000 shares of 5.8%
cumulative preferred stock (par $25), with common stock
Hathaway
amendment.
land, Me,
stock
Street, New York
Continental
Oct.
5 filed
Price—To
Can
18,
Iowa
$15,000,000 of debentures due Oct. 15, 1976.
be
•
vote Oct. 22 oh approving proposed debenture issue, :
Co., Inc. (10/25)
filed 104,625 shares of cumulative convertible
second preferred stockjno par. or $100 par) to be offered
for subscription by common stockholders of record about
one
share for each 30 shares of
stock
held; rights to expire on or about Nov. 8. Price—
To be supplied by amendment.
Underwriters — Gold¬
man, Sachs & Co. and Lehman Brothers, New York. Pro¬
ceeds—For plant and equipment replacements, and working
capital.
Meeting—Common stockholders will vote
Oct. 22 on approving authorized issue of
250,000 shares
of second preferred stock.
Eureka
Corp., Ltd., Toronto, Canada
Oct. 9 filed 4,312,404 shares
of
common
stock
(par 25
cents—Canadian), of which 3,234,303 shares
are
to be
offered to stockholders/on basis of two shares for each
three Shares held.
Subscribers will receive for each
three shares subscribed
for, a warrant to purchase one
additional share at $1.25 per share—Canadian—within
18
months.
Price—55
derwriter—-None.
cents
per
share—Canadian.
Proceeds—For working
capital.
stock, series B (par $50).
Price—To be supplied
amendment.
Underwriters—Merrill Lynch, Pierce,
&
Beane
and
G.
H.
Walker
&
Florida
10
Power & Light Co.
filed
$10,000,000
of
mortgage
bonds
1, 1981.
Underwriter—To be determined by com¬
petitive bidding.
Probable bidders: Halsey, Stuart &
Co. Inc.; Carl M.
Loeb, Rhoades & Co. and Bear, Stearns
& Co. (jointly); The First Boston
Corp.; Harriman Rip¬
ley & Co., Inc.; Shields & Co.; White, Weld & Co.; Leh¬
Brothers.^
equipment.
(EST)
on
Proceeds
—
For new construction and
Bids—Expected to be received
at
12
1
stock
(par $100), 2,000 shares of class A common stock
(par $10) and 2,600 shares of class B common stock (par
Price—At par.
Underwriter—None.
Proceeds—
$25).
For
working capital.
Office—205 South Church Street
Bldg., Charlotte, N. C.
Radix,
Huntington Park, Caiif.
non-assessable
common stock, of which 55 will be offered to public and
45 will be issued
to Mrs. Edythe Persion to repay a
$4,500 cash advance by her.
Price—At par ($100 per
share). Underwriter—None. Proceeds—For advertising
and working capital.
Office—6438 Templeton St., Hun¬
tington Park, Calif.
Inc.,
Oct. 1 (letter of notification) 100 shares of
Sharon
Oct.
Steel
Corp.
(10/29)
filed
9
174,137 shares of common stock (no par).'
supplied by amendment.
Underwriter—
The First Boston Corp., New York.
Proceeds—For ex¬
Price—To
be
pansion program
Shellmar
capital.
working
and
Products
Corp.,
Mount Vernon,
(10/25)
Oct. 9 filed 100,000 shares of
(par $50), convertible
into
cumulative preferred stock
stock
common
on
or
before
Dec.
31, 1966.
Price—To be supplied by amendment.
Underwriter—Glore, Forgan & Co., New York. Proceeds
—To retire 4%% preferred stock and for additional cap¬
ital expenditures.
Spotless Co., Inc., Richmond, Va.
5 (letter of notification)
2,500 shares of common1
stock, to be issued under an employee incentive stock
purchase plan. A pro rata part of the issue will also be
Oct.
offered to
dissenting stockholders.
Price—To employee,
15% less than the market (estimated at $13.60 per share).
Proceeds—For working capital. Of¬
Underwriter—None.
fice—10TO East Cary St., Richmond, Va.
Stiebel Shoe Co.,
Sept. 28
Oct.
by competitive bidding. Probable bidders; Blyth & Co.,
Inc., and. First Boston Corp. (jointly); Kidder, Peabody
& Co.; Harriman Ripley & Co. Inc.; Smith, Barney &
Co.; W. C. Langley & Co. and Glore, Forgan & Co.
(jointly). Proceeds—From sale of preferred stock, to¬
gether with proceeds from proposed sale of about $25,000,000 of first mortgage bonds in December, 1951, will
be used to retire $14,493,400 of bonds of former subsid¬
iaries, to pay off bank loans, and for construction
due
Nov.
man
(10/24)
Long Island Lighting Co.
(11/14)
first
Southern Utilities Co.
Oct. 3 filed 100,000 shares of cumulative preferred stock,
series A (par $100).
Underwriters—To be determined
Co., New York.
Proceeds—For general corporate purposes.
Oct.
Office—545
Oil Co., LoveM, Wyo.
Oct. 3 (letter of notification) 75,000 shares of common
stock.
Price—$1 per share.
Underwriter—None.
Pro¬
ceeds—For drilling operations.
Address—P. O. Box 544,
Lovell, Wyo.
erence
Fenner
Oct.
Dallas, Tex.
(letter of notification
vertible debentures
(par $10).
Underwriter—J. F. Perkins &
—To
John
Stiebel
M.
stockholders.
and
Office—1508
Price—$10.75
Co., Dallas, Tex.
Angel
First
Sariego,
National
Dallas 1, Tex.
U.
S.
9
stock
con¬
share.
Proceeds
per
the
selling
Bank
Bldg.,
*
Rubber
(letter of
(par
"V•
*
9,000 shares of 8%
$1).
Reclaiming Co., Inc.
notification) 5,220 shares of
Price—At
market
(about
common
$6.25
per
share).v Underwriter—Eisele & King Libaire Stout &
Co.j New York.
Proceeds—To trustees of Estate of
R.
*
A.
Low.
^
Waukesha Motor Co., Waukesha, Wis.
Oct. 1 (letter of notification) 5,000 shares of common
stock (par $5).
Price—At market (approximately $19.50
per/share). Underwriter—Merrill Lynch, Pierce, Fenner
& Beane, Milwaukee, Wis.
Proceeds—To E. G. Bach as
Executor of the Estate of Isabel Hadcock.
Little Valley
Family Finance Corp. (10/30)
Oct. 9 filed 80,000 shares of cumulative convertible
pref¬
by
-
*
Inc., Charlotte, N. C. —
:
(letter of notification) 400 shares of 4% preferred
Avenue, East Orange, N. J.
accept exchange offer.
Un¬
...
Pension Planners,
Kimberly-Clark Corp. (11/12-13)
Oct. 5 filed 102,424 shares of 4% cumulative convertible
preferred stock (par $100), to be offered in exchange
for outstanding 4 x/2% cumulative preferred stock on a
share-for-share basis, plus cash payment of 37 Vz cents
per share; the offer to expire on Nov. 9.
Price—To be
supplied by amendment. Underwriter—Blyth & Co., Inc.,
New York.
Proceeds—To retire unexchanged 4V2% pre¬
ferred stock.
Underwriters have agreed to purchase a
maximum of 37,424 shares of 4% preferred stock, pro¬
viding at least 65,000 shares of 4V2% preferred stock
common
company's con-'
struction program.
Key Oil & Gas Co., Ltd., Calgary, Canada^
Oct. 3 filed 500,000 shares of common stock.
Price—At
par ($1 per share).
Underwriter—None, but sales will
be made by James H. Nelson, promoter and a director of
company, of Longview, Wash.
Proceeds—To drill well,
for lease acquisitions and properties held pending devel¬
opment work, and for other corporate purposes.
5
Oct. 24 at rate of
Underwriter—Stanley, Pelz & Co., Inc., New
equipment, to repay notes
shares of common stock (par $15) re¬
served for conversion pf 39,524 shares of 52/2%
con¬
vertiblepreferred stock which will be called for re¬
demption. Starts on Oct. 24 and ends first week in No¬
vember.
Price—To be supplied by amendment.
Under¬
writer—The First Boston Corp., New York.
Proceeds—
To reimburse company for money expended for redemp¬
tion of unconverted portion of 5^% preferred stock.
Continental Can
Proceeds—To finance, in part, the
Inc.
Ohio
Proceeds—To purchase
North Arlington
(10/24)
shares of redeemable first preferred
stock (par $25).
Price—To be supplied by amendment.
Underwriter—To be named later.
Probably Blyth & Co.,11
Proceeds—For working capital.
share.
Electric Co.
Pacific Gas &
Co., Port¬
Payson &
Oct. 5 filed 79,048
(10/25)
supplied by amendment.
Underwriters—
Goldman, Sachs & Co. and Lehman Brothers, New York.
Proceeds—For plant and equipment replacements and
working capital.
Meeting—Preferred stockholders will
Oct.
M.
payable and for other corporate purposes.
NkYSSS'/> u1KiSvff
Co., Inc.
Underwriter—H.
Hydrocarb Corp., East Orange, N. J. (10/15)
Oct. 5 (letter of notification) 599,880 shares of con¬
vertible class A stock (par five cents).
Price—50 cents
York.
42nd
Price-—To be supplied by
jpurchase warrants attached.
per
None.
80,000 shares of
filed
5
share.
Inc.
Goodall-Sanford,
Oct.
lative
stock (par $5) and 50,000 shares of
(par $1). Price—At par. Underwriter—
Proceeds—For working capital.
Office—33 West
Proceeds—To increase stock interest
Brothers Rubber Co. and for working
Office—Whitehead Road, Trenton 4, N. J.
capital.
per
Oct. 3 filed 1,500,000
(letter
derwriter—None.
bank loans.
preferred
N. J.
of notification) 13,500 shares of
stock (oar $5) and 1,000 shares of 5%
4
Consolidated Credit Corp., N. Y. (10/16)
Oct. 8 (letter of notification) 50,000 shares of 6% cumu¬
common
'
(10/15)
class A
common
cumula¬
tive preferred stock (par $100).- Price—Of common,
$13.50 per share and of preferred, $100 per share.
Un¬
Goodall Rubber Co., Trenton,
(letter of notification) 14,100 shares of common
stock (par $1).
Price—$21.25 per share.
Underwriter
—Paine, Webber, Jackson & Curtis, New York. Proceeds
—To selling stockholders.
Offering—Made Oct. 10 and
Nicholas
v
of capital stock
price—$5 per share.
Underwriter—None.
Proceeds—To buy, sell, lease and develop oil properties.
Office—110 East 42nd Street, New York.
Oct. 3
Anesco, Inc., Toledo, O.
Oct. 3 (letter of notification) 250 shares of common stock
(no par) and 750,000 shares of preferred stock (par $100).
Price—$100 per share. Underwriter—None. Proceeds—
For general corporate purposes. Address—c/o J. T. Berry,
of notification) 5,000 shares
par).-
(no
Avenue, New York, N. Y.
American Box Board Co.,
/
Inc., N. Y.
4 (letter
Price—$2.25
held.
Underwriter—None.
Proceeds—To
repay loans from Cliff Petroleum Co. and for expansion
program.
Business — To acquire, explore and develop
mining properties in Canada.
:
investment.,
Lexington
420
Vice-President,
Sloan,
market.:
Price—At
Algam Corp., New York
(letter of notification) 4,000 shares of class A com¬
mon stock.
Price—Approximately $12 per share.
Un¬
derwriter—None.
Proceeds—For working capital. Ad¬
Oct. 2
ADDITIONS
funds).
(Canadian
stock (par $1).
Underwriter—None. Proceeds—For
150,000 shares of common
filed
3
share for each five shares
Corp., Boston, Mass.
General Capital
New Registrations and Filings
INDICATES
•
noon
\-r
program.
Nov. 14.
Long Island Lighting Co. (10/24)
Oct. 3 filed 524,949 shares of common stock (no par), to
be offered for subscription by common stockholders of
record Oct. 24, 1951, at rate of one, new ;share for„.each
shares held; rights expire Nov. 7 or 8.
seven
be supplied by amendment.
Price—To
Underwriters—Blyth & Co.,*
Inc. and The First Boston Corp., New York.
Proceeds—
To reduce short-term loans borrowed for
construction.^
Co., Pittsburg, Kansas
r - '
(letter of notification)* $225,000 of second mort-
Mineral
Oct.
4
Products
•
Previous Registrations and Filings
Acme
Industries, Inc., Jackson, Mich.
Sept. 12 (letter of notification) 14,840 shares of common
stock (par $1), of which 4,840 shares are to be offered
to officers and employees of company and 10.000 shares
to the public. Price—To employees, $3.08 per share and
to public $3.50 per share. Underwriters—Stoetzer, Faulk¬
ner
& Co. and Wm. C. Roney & Co., both of Detroit,
Mich. Proceeds—To Estate of Roy C. Weatherwax, the
selling stockholder.
Aero Manufacturing Co., Columbus, Ohio
Aug. 14 (letter of notification) 40,716 shares of common
stock (par 25 cents), to be offered to present stockhold¬
at rate of four-fifths of
ers
a
share for each share held
(unsubscribed shares to be sold to public). Price—$7
per share to stockholders and $8 per share to public.
Underwriter—None. Proceeds—For plant improvements
and
East
expansion and for working capital.
Main Street, Columbus, Ohio.
.•
Alabama
Office—2040
•
;
S
Flake
Graphite Ca.,-Birmingham, Ala.
July 12 (letter of notification) $100,000 of 7% 20-year
sinking fund bonds dated Jan. 15, 1949 and due Jan. 15",
1969 (in denominations of $1,000 each). Price—At par.
.
Underwriter—Odess, Martin & Herzberg, Inc., Birming¬
ham,
Ala.
Proceeds—For plant ^expansion. Office—420
Comer Bldg.,
Birmingham. Ala.
*
'
gage
5% bonds to be offered to stockholders in ratio of
$300 of bonds for each share of stock held
as
of record
June
$0, 1951, with an oversubscription privilege. Price
principal amount, Underwriter—None. Proceeds—
For equipment.
Office—314 National Bank Bldg., Pitts¬
burg, Kansas. :
V
—At
New York.
Boston
Philadelphia
Pittsburgh
San Francisco
Private IVires
to
all
offices
Chicago
.
Cleveland
Nickel
be
v
,
Offsets, Ltd., Toronto, Canada
filed 500,000 shares of common stock (no par) to
offered for subscription by stockholders at rate of one
Oct.
8
(10 19)
Sept. 21 filed 372,205 shares of capital stock (no par) to
be offered for subscription by stockholders of record
Oct. 19 at rate o| one new share for each 10 shares held;
rights to expire on Nov. 8. Price — To be supplied by
amendment
(not *to exceed $65-Canadian-per share).
Aluminium, Ltd., Montreal, Canada
Dealer-Managers
Ames
&
—
The
First Boston Corp. and
A. E.
Co., Ltd. Proceeds—For working capital to be
available for expansion program.
Volume 174
Number 5054
American
.
The Commercial and Financial Chronicle
.
.
Brake Shoe Co.
to
through
85%
of such
price.
Underwriter—None.
NEW ISSUE CALENDAR
Goodall
Corp., New York.
(par
40
Under¬
Proceeds—
To certain selling stockholders.
American
Investment Co.
ot
Illinois
Aug. 16 filed 167,105 shares of $1.25 cumulative convert¬
ible preference stock, series A (par $25), being offered
in
exchange for common stock of Domestic Finance
Corp., Chicago, 111. on basis of one American share for
each five
Oct.
on
New
Domestic
shares; the offer to expire
— Kidder,
Peabody & Co.,
and Alex. Brown & Sons, Baltimore, Md.
common
25. Dealer-Managers
York,
Rubber
Hydrocarb Corp.
American Export Lines, Inc. (10/16)
Sept. 27 filed 123,521 shares of common stock
cents). Price—To be supplied by amendment.
writer—Union Securities
October 15,
Proceeds
general funds.
Class A
——
(exchange offer)—Common
October
16,
1951
American
Export Lines, Inc.--Common
Central & SouthWest Corp. 11 a.m. (CST)-Comihon
Chicago, Rock Island & Pacific RR.
noon (CST)
——Equip. Trust Ctfs.
Consolidated
Credit Corp.-—_—Pfd. & Common
Hollingsworth & Whitney Co
-Common
Warren Petroleum
Corp.
West Virginia Coal & Coke Corp
West Virginia Pulp & Paper Co
October
—
1951
Co.-—————JPfd. & Common
Marine Midland Corp.
Statement effective Sept. 5.
* Arkansas Power & Light Co.
Sept. 5 filed $8,000,000 of first mortgage bonds due 1981.
Underwriters
Equitable Securities Corp. and Central
Republic Co. who were awarded the bonds on Oct. 9 on
$100, $500 and $1,000 each). Price—91% of principal
Underwriter—Boettcher & Co., Chicago, III.
Proceeds—To retire indebtedness and for working capi¬
tal. Offering—Postponed indefinitely.
amount.
a
stock purchase plan.
Price—To be not greater than
the market price on the date of the offering, or no less
—To be added to
17,
Debentures
-Common
Debentures
1951
Bloch Brothers Tobacco Co._
Consumers Power Co. 11
Common
(EST)
a.m.
...Common
Louisville Gas & Electric Co
Common
New England Gas & Electric Association
11:30
Public Service Electric & Gas Co
Preferred
at 103.254%
Robbins Mills,
Preferred
(EST)
a.m.
Bell & Gossett
Co., Morton Grove, III.
Sept. 27 (letter of notification) 1,000 shares of common
stock
(par
$5).
Price — At
market
(approximately
$26.25 per share). Underwriter—Ames, Emerich & Co.,
Inc., Chicago, 111.
Proceeds—To Clarence E. Pullum,
Vice-President, who is the selling stockholder.
Co., Oklahoma City, Okla.,
Davidson, Hartz, Hyde & Dewey, Inc.,
Madison, N. J.
Sept. 27 filed $2,000,000 of contributions in oil property
interests (1952 fund) in amounts of $15,000 or more.
Underwriter—None. Proceeds—To acquire and develop
oil property.
Blair
(Neb.)
interest.
Underwriter
Wachob-Bender Corp.,!
Omaha, Neb. Proceeds—To retire first mortgage (closed)
3Vi% bonds and to convert to dial operation.
—
Brothers Tobacco
Fulton. Reid & Co., Cleveland, Ohio.
Child Corp., the selling stockholder.
Proceeds—To For-
U.
S. Vitamin Corp
filed
2
Corp. of America
1, 1976. Price—To be supplied by amend¬
ment. Underwriter—Dillon, Read & Co., Inc., New York.
Proceeds—To redeem $19,750,000 of notes and for capital
expenditures and other general corporate purposes.
Pacific Gas & Electric Co
^Preferred
Light & Power Co.
(EST)„
stock
common
and
Lazard
Freres
Boston
(jointly); Lehman
(jointly); The First
Lynch, Pierce, Fenner &
&
October
&
Co.
(jointly). Proceeds—To be used to assist
a
16 at 20 No.
Chance
up
to 11
(CST)
a.m.
Wacker Drive, Chicago 6,
(A. B.)
on
Oct.
Business—Manufacture
anchors
and other equipment used
Offering—Expected today.
and
in
sale
of
earth
communication
working capital.
Machine Co.
Aug. 16 (letter of notification) 100,000 shares of common
stock (par $1). Price—At the market (estimated at $2.75
per
share, but not
ment
than $3 per share). Underwriter
working capital, including pay¬
of accounts payable and purchase of inventory.
more
Proceeds—For
Coca-Cola Bottling Co. of St. Louis
-i
Sept. 26 (letter of notification) 2,500 shares of common
stock (par $1). Price—.At the market (approximately $30
per share). Underwriter—G. H. Walker & Co. and Wm.
F. Dowdall &
Co., both of St. Louis, Mo. Proceeds—To
Willard Cox, the selling stockholder. Office—2950 No.
Market St., St. Louis, Mo.
j
IVfich.
* Consumers Power Co., Jackson,
(10/17)
Sept. 20 filed 561,517 shares of common, stock (no par),
to be offered for subscription by common stockholders
of record Oct. 17 at rate of
held; rights to expire
to
on
one
share few each 10 shares
Nov. 2.
Unsubscribed;
be offered employees of company add its
Michigan Gas Storage Co.
amendment.
shares
subsidiary,
Price — To be supplied by
Underwriters—To be determined by com-
(EST)
—.Bonds
Preferred
(EST)
Preference
Bonds & Notes
West Texas Utilities Co
Bonds
November
1,
Helicopters, Inc., N. Y.
(letter of. notification) 3,000 shares of capital
stock. Price—At the market (estimated at $4 per share).
Underwriter—None.
Proceeds—To Glidden S. Doman,
President, who is the selling stockholder. Office—545
Fifth Ave., New York 17, N. Y.
Drayson-Hanson, Inc., Los Angeles, Calif.
(letter of notification) 50,000 shares of common
stock (par 40 cents).
Price—$1.20 per share. Under¬
writer—Edgerton, Wykoff & Co., Los Angeles, Calif.
Proceeds—To purchase real property and plant.
Fidelity Electric Co., Inc., Lancaster, Pa.
Sept. 26 (letter of notification) 2,000 shares of common
stock (par $1). Price—At market (approximately $3.50
per share). Underwriter—Dunne & Co., New York. Pro¬
ceeds
To J. D.
—
Cleland, President, the selling stock¬
(Fla.)
(par
$100); 5,706 shares of 5% class B preferred stock (par
$100), cumulative beginning three years from July 10,
1950; 8,000 shares of 4% revolving fund class C stock
(par $100); 2,000 shares of 4% revolving fund class C
stock (par $50); and 4,000 shares of 4% revolving fund
class C stock (par $25).
Price—At par. Underwriters
June 29 filed 453
shares of class A
Metals & Chemicals Corp
Common
centrate
ic General Acceptance Corp., Allentown, Pa.
(10/25)
Sept. 28 filed $5,000,000 10-year 3V2% sinking fund de¬
bentures due Oct. 1, 1961. Pyice — To be supplied by
'amendment. Underwriter — Paine, Webber, Jackson &
Curtis, New York. Proceeds — To prepay senior notes
other borrowings and for general corporate pur¬
and
poses.
November 14,
1951
Kimberly-Clark Corp.
Preferred
Florida Power & Light Co. noon (EST)
November
15,
Silver Buckle Mining Co
P. W.
Brooks & Co., Inc.,
York
W.
&
Co.,
Gulf States
Utilities
Pacific Telephone &
Co
$831,400 bonds and repay $500,000 bank loans and
expansion program.
—
RR.
—
Grand
_._Bonds
to be issued
10,
1951
Bonds
Probable bidders: Morgan Stanley &
Co.; Lehman Brothers; Hajrriman Ripley & Co., Inc. and
The First Boston Corp. (jointly).
Proceeds—For prop¬
erty additions and improvements. Bids—To be received
up to 11 a.m. (EST) Oct. 17.
petitive bidding.
Consumers Public Service Co., Brookfield, Mo.
Aug. 22 (letter of notification) 1,500 shares of 5% cumu¬
lative preferred stock. Price — At par ($50 per share).
Underwriter—None, but will be sold through WachobBender Corp., Omaha, Neb. Proceeds—For liquidation of
short-term notes and for further extensions and better¬
ments of the
company's electric property.
Office—201 Vz
No. Main St., Brookfield, Mo.
Continental Car-Nar-Var Corp.,
Brazil, Ind.
(letter of notification) 150,000 shares of com¬
mon (voting) stock (par $1). Price—$2 per share. Under¬
writers—Sills, Fairman & Harris, Inc., Chicago, and
Gearhart, Kinnard & Otis, Inc., New York. Proceeds—
For working capital and general corporate purposes.
Temporarily deferred. <
March 5
Continental Electric
March 2
Co., New York
64,000 shares of common stock
(par $10)
pursuant to an "employees' restricted stock
Price —To be supplied by amendment.
Proceeds—For general corporate
Office—50 Church St., New York.
plan."
purposes.
Helio
Co., Geneva, III.
(letter of notification) $300,000 of 6% sinking
fund debentures due Dec. 1, 1975 (to be issued in units
Aircraft Corp.,
Norwood, Mass.
(letter of notification) 7,750 shares of noncumulative preferred stock (par $1) and 7,750 shares
of common stock (par $1) to be offered in units of one
share of preferred and one share of common stock.
Price—$25 per unit ($20 for preferred and $5 for com¬
mon). Underwriter—None. Proceeds—For development
and promotion expenses.
Office—Boston Metropolitan
Airport, Norwood, Mass.
July
1951
Virginia Electric & Power Co..
Union
7 filed
Underwriter—None.
____Equip. Trust Ctfs.
-
Ltd., Montreal, Canada
April 9 filed 750,000 shares of common stock.
Price—
At par ($1 per share).
Underwriter—George F. Breen,
Hew York.
Proceeds—For drilling expenses, repayment
of advances and working capital. Offering—Date not set.
Telegraph Co.__Debs. & Stock
November 27,
Erie
1951
both of New York, and War¬
Pa. Proceeds—To re¬
Allentown,
deem
for
Aug.
Common
(10/23)
28
Bonds
1951
Brick Corp.
filed $2,000,000 first mortgage bonds, 5V2%
series, due 1971, with detachable warrants for purchase
of common stock attached.
Price — To be supplied by
amendment. Underwriters — Lee Higginson Corp. and
Sept.
Debentures
1951
stock
plant at Forest City, Fla.
Golconda Mines
12,
common
Proceeds—To construct and equip frozen con¬
—None.
ren
1951
Ritchie Associates Finance Corp
November
Of¬
Doman
Glen-Gery Shale
1951
:
a.m.
Under¬
Proceeds—For
Sept. 20
option
Office—408 Junipero St., San Gabriel, Calif.
—None.
30,
common
operating expenses.
Fidelity Building, Oklahoma City, Okla.
fice—219
1951
Family Finance Corp
Ohio Power Co. 11
writer—None.
Common
December
Proceeds—To reduce bank loans and for
(Mich.)
29,
November 20,
Clary Multiplier Corp., San Gabriel, Calif.
Aug. 29 (letter of notification) 23,250 shares of common
stock (par $1). Price—$5 per share. Undewriter—None.
Clinton
1951
111.
Sept. 21 filed 50,000 shares of common stock (par $5).
per share.
Underwriter—Stifel, Nicolaus
& Co., Inc., St. Louis, Mo.
Proceeds—To certain selling
lines.
.Preferred
Commonwealth Edison Co.—
Co., Centralis, Mo.
Price—$12.50
stockholders.
(EST)_„Common
-Preference
October
part of their construction pro¬
Bids—To be received
grams.
Debentures
p.m.
26,
October
Co.
Corp. and Merrill
(jointly); Kuhn, Loeb & Co.; Carl M. Loeb,
Rhoades & Co.; Ladenburg, Thalrhann & Co. and Wertheim
Debs. & Pfd.
Goodall-Sanford, Inc.
Beane
subsidiaries to finance
1951
Continental Can Co., Inc
Harriman Ripley & Co., Inc.
and
25,
General Acceptance Corp
(par $5).
Underwriters—To be determined by competitive bidding.
bidders:
Blyth & Co., Inc., Smith, Barney &
Brothers
—Bonds
October
(10/16)
Probable
Co.
Common
Common
11 a.m.
Deardorf Oil Corp., Oklahoma City, Okla.
Sept. 24 (letter of notification) 175,000 shares of
stock (par 10 cents). Price—40 cents per share.
Fosgate Citrus Concentrate Cooperative
[
Long Island Lighting Co.Rockland
working capital. Office—2110 Central Street, Kansas
City, Mo.
holder.
1951
Utah Power & Light Co. noon
(10/18)
tures due Oct.
'Sept. 10 filed 500,000 shares of
24,
Common
Bonds
Iowa Southern Utilities Co
$50,000,000 of 25-vear sinking fund deben¬
* Central & South West Corp.
1951
Sharon Steel Corp
equipment. Offering date postponed.
Celanese
23,
Bonds
Freightways
Glen-Gery Shale Brick Corp.—
Proceeds—For additions and improvements to plant and
Oct.
Common
American Consolidated
March
5 filed 300,000 shares of convertible preference
(par $100). Price—To be supplied by amendment.
Underwriter—Kidder,
Peabody
&
Co.,
New York.
1951
Wisconsin Michigan Power Co
October
their nominees. Proceeds—To retire debt to RFC and
or
for
June 4
Common
22,
(Ferd.), Inc. 1:30
Shellmar Products Corp
stock
1951
.
October
Mulhens
Burlington Mills Corp.
Debentures
Aluminium, Ltd.
Co.
(10/17)
Sept. 26 filed 50,000 shares of common stock (par $12.50).
Price—To be supplied by amendment.
Underwriter—
1951
19,
October
18 (letter of notification) $175,000 of first mort¬
gage 4% bonds, series A, due 1971. Price—101 and ac¬
Bloch
18,
October
Telephone Co.
July
crued
Inc
Celanese Corp. of America
Blackwood & Nichols
and
Bonds
October
ic Crown Drug Co., Kansas City, Mo.
Aug. 21 (letter of notification) by amendment $300,000
41/2% debenture convertible notes due Oct. 1, 1962 (in
units of $60, $100, $500 and $1,000) being offered to
common stockholders of record Oct. 1 on following basis:
$60 of notes for each 100 shares or less held; $100 of
notes for each 101 shares to 150 shares held; and stock¬
holders owning over 150 shares, $60 of notes for each
100 shares or fraction thereof held. Rights will expire
on
Oct. 22. Underwriters—Roger W. Babson, Wellesley
Hills, Mass.; H. J. Witschner, Kansas City, Mo.; Busi¬
ness
Statistics Organization, Inc., Babson Park, Mass.;
'
their bid of 102.239 for 3%s. Proceeds—For construction
and other corporate purposes. Offering—Expected today
to yield 3.45%. Statement effective Sept. 26.
51
of
June 29 filed 50,000 shares of common stock (no
par)
be offered to certain officers and key employees
than
(1395)
31
Indianapolis, Ind.
10,000 shares of class A
preference stock (par $1), to be offered to employees.
Price—At the market or less (approximately $10 per
share). Underwriter—For unsubscribed shares, City Se¬
curities Corp., Indianapolis, Ind.
Proceeds—To Harry
J. Herff, President.
Herff Jones Co.,
Sept. 10 (letter of notification)
Hex
Foods, Inc., Kansas City, Mo.
Aug. 1 (letter of notification) 80 shares of 6% cumula¬
tive preferred stock (par $100) and 424 shares of com¬
mon stock (no par).
Price—For preferred, at par; and
for common, at $20 per share. Underwriter 7- Prugh,
Combest & Land, Inc., Kansas City, Mo., will act as
dealer. Proceedsr—For plant improvements and general
corporate purposes. Office—412 W. 39th St., Kansas
City,
Mo.
Heyden Chemical Corp.
<Ar
Sept. 14 filed 53,300 shares of $4.37 V2 cumulative con¬
vertible second preferred stock (no par) being offered
for
4
subscription by common stockholders of record Oct,
rate of one preferred share for each 20 common
at
Continued
on
page
52
52
(1396)
The Commercial and Financial Chronicle
Continued f rom page 51
Morris Oil Co., Bakersfield, Calif.
Aug. 10 (letter of notification) 500 shares of capital stock
(par $1). Price—$4.75 per share.
Underwriter—Walston, Hoffman & Goodwin, Bakersfield, Calif. Proceeds
—To Arthur W. Scott, Secretary, v/ho is the selling
stockholder. No general public offering is planned.
rshares held; rights to expire Oct. 18. Price — $100 per
share. Underwriters—A. G. Becker & Co., Inc., Chicago,
and R. W. Pressprich & Co., New York.
Proceeds—For
expansion program.
Statement effective Oct. 4.
Hollingsworth & Whitney Co. (10/16)
Sept. 25 filed 100,000 shares of common stock (no par).
jPrice—To be supplied by amendment. Underwriters—
Paine, Webber, Jackson & Curtis and Harriman Ripley
& Co.
Inc.
Proceeds—To
acquisition of south¬
timberland and for working capital.
ern
Imperial Brands, Inc.
Aug. 20 (letter of notification)
28 filed $15,000,000 of first mortgage bonds due
$7,000,000 of serial notes to mature annually on
Oct. 1 as follows: $250,000 annually in 1955 and 1956;
1981 and
Price—At par ($1 per
& Co., Inc., Los Angeles,
A. Allen
Calif. Proceeds—To
purchase additional machinery and equipment and for
working capital. Office—324 Hindry Avenue, Inglewood,
$500,000 annually 1957 through 1960; and $750,000 an¬
nually 1961 through 1966.
Underwriters—To be deter¬
mined by competitive bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; Morgan Stanley & Co.; The First
Boston Corp.; Glore, Forgan & Co.; White Weld & Co.
and Union Securities Corp. (jointly); Harriman Ripley
Calif.
.
Inland Steel Co.
Aug. 27 filed 250,000 shares of capital stock
to
be
issuable
exercise
upon
of
stock
tinder the company's proposed stock
To be 85% of current fair market
option
(no par)
issuable
of
the
—From
stock.
Price
—
At
par
($5
per
share).
to
Los
share.
Underwriter
—
None.
Proceeds
—
To
working capital and to finance expanded
Inventory. Statement effective Sept. 14.
increase
merchandise
Louisville
(Ky.) Gas & Electric Co. (10/17)
Sept. 26 filed 130,000 shares of common stock (no par).
Price—To be supplied by amendment.
Underwriters—
ICehman Brothers and Blyth & Co., Inc. Proceeds—For
property additions.
,
1
.
MacMillan
>('■ j
'
(H. R.)
'.v
•;
i
>, ;
1
'
:
*
1
1
'F't"
Read
San
in
and
for
shares of
general
corporate
Estabrook
Stewart & Welch, Ltd. on the following basis: 44.54596
shares for each ordinary share of Bloedel; two-fifths of
State¬
common
Maracaibo Oil Exploration Corp., Dallas, Tex.
Sept. 20 filed 49,500 shares of capital stock to be offered
Offering—Indefinitely
to stockholders at rate of
fields
writer— None.
Proceeds
find for general
corporate
Marine Midland
Sept.
one
share for each nine shares
Price—To be supplied by amendment.
—
To
acquire
new
Under¬
properties
purposes.
Corp., Buffalo, N. Y.
filed
7
223,352 shares of 4*/4% cumulative con¬
vertible preferred stock
(par $50) being offered to
common stockholders of record
Sept. 28 on basis of one
Bhare of preferred for each 25 shares of common stock
held; rights to expire Oct. 16. Price
Underwriters—The First Boston Corp.
—
$50
and
per
share.
Union
Se¬
curities
Corp. of New York; Schoellkopf, Hutton &
>?omeroy, Inc. of Buffalo, N. Y.; and Granbery, Marache
& Co., New York. Proceeds—To permit
acquisition of
additional bank or banks, to expand the
of
one
or
more
an
capital funds
banks, and for general
Statement effective Sept. 26.
of the constituent
•corporate purposes.
Marine Midland
Corp., Buffalo, N. Y. (10/15)
Sept. 21 filed 276,000 shares of common stock (par $5)
to be offered in exchange for all
outstanding stock of
Syracuse Trust Co. at rate of 2% shares of such common
fJtock for each share
of
Syracuse stock (offer subject to
Acceptance by holders of not less than 80% of stock of
Underwriter—None.
Syracuse).
Miles
Laboratories, Inc., Elkhart, Ind.
Sept. 5 (letter of notification) 2,000 shares of common
(par $2). Price—$16.75 per share. Underwriter
W. F. Martin, Inc.,
Elkhart, Ind. Proceeds—To Georgia
Btock
—
C.
Walker, the selling stockholder. Offering—Indefinite.
Montana Hardwood
Co., Inc., Missoula, Mont.
Sept. 26 (letter of notifictaion) 2,970 shares of 6% re¬
deemable preferred stock (par
$100) and 2,970 shares of
common stock
(par $1) to be offered in units of one
preferred and one common share. Price—$101
per unit.
Underwriter—None. Proceeds
To purchase land and
-erect plant.
Office—123 West Main
St., Missoula, Mont.
National Motor
Bearing Co., Inc.
Sept. 26 (letter of notification) 3,200 shares of common
—
ii
Stuart & Co. Inc.; The
First Boston Corp.; White?,
Proceeds—To purchase additional
common
stocks of five subsidiaries.
Bids—To be received at >10
Temple St., Cambridge, Mass.,
up to 11:30 a.m. (EST) on
Oct. 17. Statement effective Oct.
9. > f
Weld & Co.
1;"'
.
Oct.
on
9
on
their
bid
stock.
don
At
Birmingham, Ala.
writer
each Public
1,
1951.
one
Service
Price—At
share of Pubco
common
par
($1
share
share).
per
of
record
Oct.
Underwriter—
None.
Proceeds—To be used by Public Service in
gen¬
eral fund. Business—To
prospect for oil and gas.
it Public' Service Co. of Indiana, Inc.
■■
i:."..
■
1
\
*
t
'
*':
■
.
''V
'
Proceeds—For operating capital an
Office—2807 Central Ave., Birming
Proceeds
None.
4
For
—
new
construction
an
Office—401 Symons Bldg., Spokane i
-/v'/.-
|:
,
Products Co., Cleveland,
Standard
Ohio
Sept. 24 (letter of notification) 30,000 shares of commo
stock to be offered for subscription by common stock
holders of record Oct. 4 at rate of one share for each 1
;
shares
held; rights to expire Oct.
Underwriter—None.
share.
23.
Proceeds
Price—$8.50 p€
—
For
workin
Office—2130 West 110th St., Cleveland 2, Ohi<
capital.
it Stix, Baer & Fuller Co.
Sept. 19 filed 216,694 shares of common stock (par $51
of which 73,294 shares will be for the account of ft
company and
are
offered for subscription by stock
holders
of
record
Oct.
5, viz: by preferred stock
on
l-for-5 basis and by common stockholder
a
l-for-10
basis, with rights to expire on Oct. 17; ft
143,400 shares will be for the account <
members of the Baer and Fuller, families!
| Price—$S
per share.
Underwriter — Goldman, Sachs & Co., Ne
York. Proceeds—For working capital to complete park
on
a
remaining
ing facilities and to
repay
loans.
it Sundstrand Machine Tool Co.
Sept. 21 filed 94,064 shares of common stock (par $5
being offered for subscription by common stockholder
one
share for each four shares held
on
Oct.
<
rights to expire Oct. 24. Price—$14.50 per share. Undo
writers—Shields & Co., New York; and Bacon, Whipp:
Co.
&
and
Rodman
&
Linn of Chicago.
Proceeds—Fc
plant improvements and working capital.
fective Oct. 9.
■
v
Telephone Co.
Wash.
at rate of
.
Septl; 19 filed 324,656 shares pOommon stock (no par)
being (offered to stockholders of Record Oct. 8 through
subscription Ort a l-for-10 basis;"rights to expire on Oct.
;24./;Pric^—$28.12V2 per share, tJnderwriter—Blyth & Co.,
Inc. Proceeds—For
property additions.
■■■<
—
holders
Development for
held
Office—15 Char
n
working capital.
31, 1955 at rate of
working capital.
commo
Underwriter-
sinking fund notes and 125,000 shares of capital stoc
(par 10 cents) to be offered in units of $1,000 of note
and 500 shares of stock.
Price—$905 per unit. Undei
work¬
Development, Inc., Albuquerque, N. M.
share).
per
Springdale Silica Sand, Inc., Spokane, Wash.
Sept. 17 (letter of notification) $250,000 of 10-year 5ct
ing capital.
18 filed 605,978 shares of common stock to be
offered for subscription by stockholders of Public Serv¬
ice Co. of New Mexico between Jan.
1, 1955 and March
($20
ham 9, Ala.
Morris Cohon & Co., New York.
Proceeds—To acquire
an interest in so-called
"special situations" and for
Sept.
par
Specialized Products Corp., Birmingham, Ala. <
Sept. 26 (letter of notification) 50,000 shares of commo
stock
Price—$1 per share. Underwriter—Carlson & Co
Phoenix-Campbell Corp., N. Y.
Sept. 20 filed 203,000 shares of capital stock (par
$1)
100,000 warrants. Of the 203,000 shares, 100,000 will
be reserved against the warrants
and 3,000 shares have
been purchased by the promoters.
Price—For stock,
$10 per share; for warrants, 5 cents each. Underwriter—
—
<.
Stone & Webster Securities Corp., both of Ne^
York, and Rauscher, Pierce & Co., Inc., Dallas, Texa!
Proceeds—To retire $1,500,000 of bank loans and th
balance added to general corporate funds. Offering Postponed.
and
—
-
St., Boston, Mass.
advertising costs.
Prugh Petroleum Co., .Tulsa, Okla.
Sept. 25 (letter of notification) 60,000 shares of common
stock. Price—At par ($5 per share).
Underwriter—Prugh,
Combest & Land, Inc., Kansas
City, Mo. Proceeds
To
develop properties and retire indebtedness. Office
907
Kennedy Building, Tulsa 3, Okla.
selling stock
and
Statement effective Sept. 27.
Pittsburgh Plate Glass Co.
June 27 filed 450,000 shares of common stock
(par $10)
to be offered to certain
employees of the company and
its subsidiaries under a stock
option plan.
Price—At
85% of the market price on the New York Stock Ex¬
change at time options are granted. Underwriter—None
Proceeds—For working capital.
'
six
15, filed 17,500 shares of $5.50 cumulative pre
ferred stock (no par). Price—To be supplied by amend
ment.
Underwriters—Paine, Webber, Jackson & Curt!
*
shares, will be
$2,500,000 bank loan and the remainder
construction.
Pubco
To
June
share to yield 4.55%. Proceeds—From sale of
pre¬
ferred together with $3,300,000 to be received from Asso¬
ciated Electric Co. for 165,000 common
repay a
—
Southwestern Associated
Offering—Expected today at 101.625% to
Proceeds—For construction program. State¬
per
new
Price
Proceeds—For
of
it Pennsylvania Electric Co.
Aug. 30 filed 30,000 shares of cumulative preferred stock,
series E (par $100).
Underwriters—Smith, Barney & Co.
and Kidder, Peabody & Co.
(jointly) who were awarded
the issue on Oct. 9 on their bid of
$100.09 per share with
a
$4.70 dividend. Offering—Expected today at $103.25
used to
—
Wallace, Idaho.
Research
None.
for 3s.
ment effective Sept. 27.
stock
(par $1). Price—$31.25 per share. Underwriter—
Blyth & Co., Inc., Los Angeles, Calif. Proceeds—To
Lloyd
A. Johnson, President, who is the
selling stockholder.
New England Gas & Electric
Assn. (10/17)
Aug. 6 filed $6,115,000 of 20-year
sinking fund collateral
trust bonds, series
C, due 1971.
Underwriter—To he
determined by competitive
bidding. Probable bidders:
Co.
awarded the issue
yield 3.29%.
for
469,
Corp., Boston, Mass.
Sept. 25 (letter of notification) 9,000 shares of
filed
were
101.091
Proceeds
.
Sonic
$5,000,000 of first mortgage bonds due
1, 1981. Underwriters — Kidder, Peabody & Co.,
Union Securities Corp. and White, Weld & Co.
(jointly)
who
Idaho.
Address—Box
Snoose Mining Co., Hailey, Idaho
July 19 (letter of notification) 1,000,000 shares of com
mon stock.
Price—At par (25 cents per share). Under
writer—E. W. McRoberts & Co., Twin Falls, Ida. Proceed
—For development of mine.
4v.\
-
160,000 shares
Oct.
30
Kellogg,
posed television station.
postponed.
Aug.
ant
ceeds—For construction and operating capital for a pro
(par $25).
★ Pennsylvania Electric
Co
loans
bank
Skyway Broadcasting Co., Inc., Ashville, N. C.
Sept. 10 (letter of notification) 6,000 shares of commo
stock.
Price—$50 per share. Underwriter—None. Pro
of 5J/2% prior preferred
Price—To be supplied by amendment.
Underwriter—A. C. Allyn & Co., Inc., Chicago, 111. Pro¬
changed to MacMillan & Bloedel, Ltd.
reduce
Mining Co., Wallace, Ida. (11/15
(letter of notification) 290,000 shares of com
(par 10 cents). Price—32V2 cents per shar<
holders.
Underwriter—None.
Proceeds—To erect parking facil¬
ity. Office—1002 Warm Springs Avenue, Boise, Idaho,
share for each preference share of Bloedel.
Following
«uch 'acquisition, name of MacMillan Export will be
a
(jointly); W. C. Langley &
Proceeds—To
Underwriter—Standard Securities Corp., Spokane, Wash
$25,000 of 5% debenture notes. Price—At par
($10 per share) for stock and notes in units of $500 each.
ceeds—For construction program.
Corp.
Co.
stock
mon
stock and
March '26 filed
&
Silver Buckle
Sept. 25
and
Parking, Inc., Boise, Ida.
Sept. 24 (letter of notification) 12,500 shares of
& Co. (jointly); Stone & Webster Se
Corp.; Carl M. Loeb, Rhoades & Co. and Equit
for construction program. Bids—Expected to be receive
on or about Oct.
24 at 11 a.m. (EST).
stock. Price—At
purposes.
C. Allyn
Securities
able
Vegas, Nev.;
common
A.
and
curities
fully effective Aug. 29, 1951.
itock
For workin,
Underwriters—To be determined by competi
bidding. Probable bidders: Halsey, Stuart & Cc
Inc.; The First Boston Corp.; Merrill Lynch, Pierce, Fen
ner & Beane, Kidder,
Peabody & Co., Union Securities
Corp. and White, Weld & Co. (jointly); Lehman Brother
Peabody Coal Co.
Export Co., Ltd.,
—
tive
per
Mexico
ment
Proceeds
due 1981.
Oct. 30 at 30 Church Street, New
share). Underwriter—None. Proceeds—To
purchase machinery and equipment, to construct a mill
($1
Inc., New York.
^
Pan American Milling Co., Las
Jan. 24 filed 200,000
Co.
it Rockland Light & Power Co. (10/24)
Sept. 21 filed $6,000,000 of first mortgage bonds, series E
Francisco, Calif.
Par
&
capital.
(together with $8,000,shares of common stock to
1,700,000
on
/>*,■/!
(10/17)
Sept. 25 filed 166,864 shares of series A cumulative con
preferred stock (par $50) to be offered for sub
scription by common stockholders of record Oct. 15 a|
rate of one share of preferred stock for each five share
of common stock held; rights to expire on Oct. 30. Pric
—To be supplied by amendment.
Underwriter—Dillor
notes
*
Vancouver, B. C.
Sept. 26 filed 2,281,582 shares of class B capital stock
(no par) to be offered in exchange for stock of Bloedel
■
a.m.
15-yea:|
vertible
Pacific Telecoin Corp., San Francisco, Calif.
Sept. 14 (letter of notification) 59,000 shares of common
stock (par 10 cents). Price—50 cents per share. Under¬
writer—Gearhart, Kinnard & Otis, Inc., New York. Pro¬
ceeds—For working capital.
Office—1337 Mission St.,
Office—538 E. Town St., Columbus,
Phio.
"
11
(EST)
York 8, N. Y.
Underwriter—
Angeles Drug Co. (Calif.)
f3ept. 12 (by amendment) filed $200,000 of 15-year 5%
linking fund debentures dated Oct. 1, 1951 and due Oct.
X, 1966, and 40,000 shares of capital stock (no par), the
Matter being offered first to stockholders of record Sept.
17 at rate of % of a share for each share
held; rights
to expire on Oct. 15.
Price—Of debentures, at par (in
denominations of $100 each) and of the stock, $10 per
of
Corp. (11/1)
$200,000 of 6%
it Bobbins Mills, Inc., New York
loans and for
Proceeds—To finance inventories and to purchase
capital equipment.
sale
Finance
debentures, dated July 1, 1951, to be issued in multiple
Underwriter—Cohu & Co., New York. Proceed
—To retire debts and purchase building. Office—2 Eas!
Church St., Frederick, Md.
American Gas & Electric Co.) to retire $14,000,000 bank
new construction. Bids—To be received
up
Keever Starch Co., Columbus, Ohio
Aug. 1 (letter of notification) 50,400 shares of common
tttock.
bonds and
sale of
from
000
Proceeds—For working capital.
J.Yone.
Ritchie Associates
Sept. 18 (letter of notification)
& Co. and Stone & Webster Securities Corp.
(jointly);
Equitable Securities Corp.; Kuhn, Loeb & Co. Proceeds
option plan. Price—
value
term debt.
of $100.
(10/30)
Sept.
50,000 shares of capital
share). Underwriter—Floyd
fftock.
it Public Service Electric & Gas Co. (10/17)
26 filed 249,942 shares of cumulative preferred
(par $100). Price—To be supplied by amendment
Underwriters—Morgan Stanley & Co., Drexel & Co. and
Glore, Forgan & Co. Proceeds—For plant additions an(|
improvements and to reimburse treasury for expendi¬
tures made for such purposes and for retirement of long
Sept.
capital.
Ohio Power Co.
Thursday, October 11, 1951
..
stock
Northern Illinois Corp., DeKalb, III.
Sept. 13 (letter of notification) 5,138 shares of common
stock (no par). Price—At market (not less than $9 per
share). Underwriter — None. Proceeds — For working
finance
.
t
■'
■-inn,
>
■"
1
;
•
!
Statement
r
-
.
V
*0* "("'i
.
\
,*
p
.»'■ -A
T
e;
s
olume 174
Number 5054
.
.
The Commercial and Financial Chronicle
.
(1397)
Texas
Southeastern Gas Co., Bellville, Tex.
16 (letter of notification) 19,434 shared of common
y
tock
to
be
offered
to
common
preferred stock to
common stockholders, with
probably
Corp. underwriting any unsubscribed
shares. It is also planned to borrow
$5,000,000 during
1952 under arrangements
previously made with seven in¬
The
stockholders
through
ansferable warrants.
Price —At par ($5 per share)
nderwriter—None. Proceeds—For working capital.
United Canadian Oil
Vitamin
S.
Corp., New York
rice
American Consolidated
stock
(par $1).
Underwriters—
Hoffman &
both of New
$1,000,000 loan from insur$700,000 bank borrowings, with the re¬
minder added to working capital to be used for
expanion program and other corporate purposes.
ork.
Proceeds—To
firm
nce
Sept. 14 it
(10/29)
(EST)
oon
Warren
on
Statement effective Sept. 5.
stock
and
r.
of
Devonian
Co.,
and
West Texas Utilities Co.
for
(10/30)
Proceeds—To retire bank loans and for construe-
eds—For expansion program.
,
West
Virginia Pulp & Paper Co. (10/16)
ept. 24 filed $20,000,000 20-year sinking fund debenres due Oct. 1, 1971. Price—To be
supplied by amendent. Underwriter—Harriman Ripley & Co., Inc. Proeds—For improvements and additions to plant and
quipment.
12
(letter of notification) 10,000 shares of common
ock (par $10) to be offered for subscription
by present
rice—$20
per
share.
share for each two shares held,
Underwriter—None.
financing expansion
program.
Proceeds—
Office—1108 Lavaca
treet, Austin, Tex.
Wilcox-Gay Corp., Charlotte, Mich,
ept. 13 (letter of notification) 165,250 shares of common
ock (of which 82,625 shares represent stock to be issued
exercise of stock purchase warrants issued in conection with sale of 110,000 shares on or about Oct.
24).
rice—At par ($1 per share). Underwriter—None. Pro-
working capital.
Wilson
Brothers, Chicago, III.
3 filed $2,200,000 of 5% sinking fund debentures
Aug. 1, 1966, with non-detachable common share
ug.
ue
urchase warrants for the purchase of
154,000 shares of
mmon
stock.
Price—To be supplied by amendment,
nderwriter—Blair,
Rollins
& Co., Inc., New York,
roceeds—To pay off outstanding indebtedness and for
ther corporate purposes.
Offering—Indefinitely postoned.
Wisconsin Michigan Power Co.
(10/22)
ept. 25 filed $3,500,000 of first mortgage bonds due 1981.
nderwriter—To be determined by
competitive
robable
rothers
ead
o.;
bidding,
Halsey, Stuart & Co. Inc.; Lehman
Goldman, Sachs & Co. (jointly); Dillon,
bidders:
and
&
Co. Inc.;
Hemphill, Noyes, Graham, Parsons &
The First Boston Corp.; Merrill Lynch, Pierce, Fen-
& Beane and Salomon Bros & Hutzler
(jointly),
roceeds—From sale of bonds and
$2,000,000 of common
ock (latter to Wisconsin Electric Power
Co., parent) to
e used for new construction
and to repay bank loans,
ids—Expected to be received on Oct. 22.
er
SEC
for
first
was
organ
to
announced company plans to
For
pprove
ess
oses
to
4
a proposal increasing the authorized indebted$40,000,000 from $20,000,000, the company pro-
to issue and sell about
81,000 shares of convertible
4
it
was
reported company plans issue and sale of
000,000 cumulative convertible preferred stock.
For
working
Weld
Edison Co.
of
apbfib^tQ New
of
&
Co.
White,
(jointly); Salomon Bros. & Hutzler and
(jointly); Lehman Brothers; Carl
vide the
company with funds to carry forward its cur¬
construction program to the
Spring of 1952, at
which time
company expects to undertake additional
financing. Bids—Expected
Hahn
Aviation
Aug. 24 it was
12,500 additional
approv¬
sion for
the SEC
on
March
30)^ Underwriters—To
be determined
by competitive bidding*.f Probable bidders:
art & Co.
son
announced
common
Halsey, Stu¬
Inc.; Morgan Stanley & Co.; The First Boston
on
Nov. 20.
Inc.
company
stock (par
offered.
proposes
to
offer
$1), in addition to
Underwriter
—
None.
engineering, acquisition of machinery
St., Philadelphia 33, Pa.
„
Illinois Bell Telephone Co.
June
;
to be opened
Products,
and other corporate
purposes. Office—2636 No. Hutchin¬
t
York P^S. Commis¬
mid-
rent
^
New, York,. Inc.
in
M. Loeb, Rhoades & Co.
and Lee Higginson
Corp. (joint¬
ly. Proceeds—To pay off short-term loans
and to pro¬
Interstate Gas Co.
23'company
Expected
Union Securities
Corp.
was
Consolidated
—
company plans to offer
first mortgage bonds.
Underwriters—To
by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co. and A. C.
Allyn & Co. Inc. (jointly); Stone & Webster
Securities
Corp.; Merrill Lynch, Pierce, Fenner & Beane and
$10,000,000
mill at
//■
Offering
Under¬
Proceeds—
be determined
17,500 shares recently
Proceeds
For
November.
Co., New York.
Gulf States Utilities Co.
(11/26)
Sept. 22 it was reported that the
reported that the holdings of the Union
Securities Corp. group of stock of Colorado Interstate
(531,250 shares) will probably be sold publicly in Octo¬
or
&
capital.
November.
Corp. : >
Sept. 26, Charles Allen, Jr., Chairman, announced that the
company plans to issue and sell $30,000,000 of
% first
mortgage bonds due 1972 and $10,000,000 of 15-year de¬
bentures. The former issue may be placed privately and
the latter issue offered
publicly through Allen & Co.,
New York. The proceeds are to be used to redeem
$14,367,500 of outstanding first mortgage 4% bonds and the
(in addition to $40,000,000 series G bonds filed with
Dec.
Fedders-Quigan Corp.
writer—Probably Allen
& Iron
1981
on
Halsey, Stuart & Co Inc.; Salomon
Hutzler; Harris, Hall & Co. (Inc.).
$3,000,000 cumulative convertible preferred stock to be
offered for subscription
by common stockholders of $3,-
$49,988,000 of 4% non-callable consolidated first mort¬
gage bonds due July 1, 1952, and to redeem $13,747,000
first and refunding mortgage 4JA%
bonds, series D, due
Sept. 1, 1962.
The remainder will go towards property
improvements, etc.
authority to' issU'e/'aM sell $25,OOP,OOQ, of first
refunding mortgage bonds, series H, {due May, 1,
that if stockholders
it
order to finance about 80% of the
cost of acquiring new
diesel locomotives and
gondola cars to cost about $6,915,000. Probable bidders:
by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; Lee
Higginson Corp.; Harris, Hall & Co. (Inc.); Drexel &
Co.; Kuhn, Loeb & Co. and Salomon Bros. & Hutzler
(jointly); Harriman Ripley & Co., Inc.; First Boston
Corp.; Lehman Brothers; Paine, Webber, Jackson &
Curtis; Kidder, Peabody & Co.
Proceeds—To refund
and
announced
on
was announced that
company is considering
Nov. 27 of $5,400,000 of
equipment trust certifi¬
cates, maturing semi-annually over a 10-year
period, in
determined
ber
.
(11/27)
—
common
was
8
sale
•
Alleghany Ludlum Steel Corp.
2, it
Erie RR.
Oct.
first
March
ct.
*
•
Oct.
Colorado
Natural Gas Co.
1, 1946,
$157,000,000 to $300,000,00. Traditional Underwriter
—White, Weld & Co., New York,
13
mortgage bonds,
due 1981, of which about
$65,000,000 will be sold ini¬
tially. Price—Not less than par. Underwriter—To be
Aug. 20 it
Co., Inc.
Pro¬
from
of
on
Inc.
18
Bros. &
plant expansion and for other general
rporate purposes. Offering—Expected in November.
—
Paso
was
,
Co.,
stockholders approved an increase in the au¬
thorized first preferred stock from.
100,000 to 300,000
shares, the second preferred stock from
200,000 to
300,000 shares and the common stock from
3,800,000 to
5,000,000 shares; also authorized an increase in the'
ag¬
gregate principal amount of bonds issuable under the
company's indenture of mortgage, dated June
reported company expects to be in the
market late this year or
early in 1952 with a new issue
Stanley & Co. and Harriman Ripley & Co., Inc.
roceeds
El
Sept.
Chicago & Western Indiana RR.
new
&
Eastern Stainless Steel
Corp.
8 it was announced
stockholders will vote Oct. 25
on
increasing authorized capital stock to 750,000 shares
from 500,000
shares, of which 420,000 shares are out¬
standing.- Additional shares may be issued to stockhold¬
ers, and the proceeds used for
expansion.
(16/16)
a
Underwriter—Blyth
•
Treasurer, Room 1136, La
111., for the purchase from it
of $5,250,000 equipment trust
certificates, series K, to
be dated Nov.
1, 1951 and to mature in 30 equal semi¬
annual intsalments from May
1, 1952 to Nov. 1, 1966, in¬
clusive.
Probable bidders: Halsey, Stuart & Co.
Inc.;
Colorado Fuel
stock.
Oct.
Salle Street Bldg., Chicago 5,
.
issue and
stockholders about $25,000,000 of
mulative convertible preferred stock. Underwriters—
11
common
Co.
stated that company
may probably offer
or
December 90,000 additional shares oil
was
November
ceeds—For expansion
program.
authority to offer
Pueblo, Colo. Stockholders will vote Nov. 14
ing financing program.
;
i Prospective Offerings
ept. 12 it
Dobeckmun
16 at the office of the
approximately $70,000,000 of
v
•-
Sept. 20 it
in
construction.
it
it was
—
Bids will be received by the company up to noon (CST)
2
19
program.
be determined by competitive bid¬
ding.
Probable bidders: Blyth & Co., Inc., and Kidder,
Peabody & Co. (jointly); Coffin & Burr, Inc.; Harriman
Ripley & Co. Inc. Proceeds—-To repay bank loans and
June
Expected in
announced company plans to sell
ap¬
$35,000,000 of first mortgage bonds early
Underwriters—To be determined by competi¬
bidding. Probable bidders: Halsey, Stuart & Co.
tive
Underwriters—To
Oct.
—
Inc.; Coffin & Burr, Inc., and Spencer Trask & Co.
(jointly); Morgan Stanley & Co.; The First Boston
Corp.;
Dillon, Read & Co. Inc. Proceeds
For construction
exception of New England Public Service Co., which owns
48.46%
of
the
presently outstanding common stock.
on
mature
this Fall.
common stock
(par $10) for subscrip¬
tion by holders of 6% preferred and common
stock, with
new
authority to issue and
July 1, 1957
institution) but reserved
to
proximately
315,146 shares of
for
ex-
Detroit Edison Co.
March
company
remainder used to pay for construction of
Air Reduction
of
4r Central Maine Power Co.
applied to
Under-
/.
1951 construction
program. Offering
October.
upon
and
company
stock.
common
Co., New York. Proceeds—For
transaction).
negotiation. Prob¬
Co.; Union Securities Corp.; Smith
Ramsay & Co.; Hincks Bros, and Paine,
Webber, Jack¬
son & Curtis
(jointly). Proceeds—To be applied toward
Proceeds—To repay bank loans.
5
bonus of
carry a
able bidders: Allen &
White, Weld & Co. (jointly); Salomon Bros. &
Hutzler; Blyth & Co., Inc., and Kidder, Peabody & Co.
(jointly); Lee Higginson Corp.; Harriman Ripley & Co.
Oct.
stated that the
company plans issuance
30,000 shares of preferred stock (par
$10),
offered to public pursuant to a
negotiated
To be selected
through competitive
and
Inc.
financing not
,
.
jurisdiction over the proposed issuance of
approximate¬
ly 12,500 additional shares of common stock
(latter to be
sought SEC authority to issue and sell
general mortgage bonds, series T,
due Nov. 1, 1981.
Underwriter—To be determined by
competitive bidding.
Probable bidders:
Halsey, Stuart
& Co. Inc.; Coffin &
Burr, Inc., and The First Boston
Corp. (jointly); Merrill Lynch, Pierce, Fenner & Beane
v
;
$900,000 of debentures
(placed privately with an
company
first
method of
or
Derby Gas & Electric Corp.
July 16 corporation received SEC
Salomon Bros. & Hutzler.
n
eds—For
consolidated
* Chicago, Rock Island & Pacific RR.
Western Reserve Life Insurance Co.
or
5
$7,000,000
Bids—Expected to be received Oct. 30.
West Virginia Coal & Coke Corp. (10/16)
ept. 25 filed 80,000 shares of common stock (par $5).
rice — To be supplied by amendment. Underwriters—
e First Boston Corp. and
Tucker, Anthony & Co. Pro-
one
•'
Form
was
of
writer—Ira Haupt &
Central Maine Power Co.
Oct.
Inc.; Hemphill, Noyes, Graham, Parsons & Co.
(jointly); The First Boston Corp.; Rid¬
er, Peabody & Co.; W. C. Langley & Co.; Union Securies Corp.; Equitable Securities Corp.; Harriman
Ripley
Co.; Kuhn, Loeb & Co. and Lehman Brothers (jointly);
lore, Forgan & Co.; Merrill Lynch, Pierce, Fenner &
ockholders at rate of
the
sale
pansion program.
to change its
name to Canadian Atlantic Oil
Co., Ltd. Underwriters—
Reynolds & Co. and Bear, Stearns & Co., New York.
Co.
e
Ltd.,
Traditional underwriter: A. C.
Allyn &
Beverage Corp., New Haven, Conn.
each share to
time in
subsidiary
ducers,
nd Drexel & Co.
program.
its
Petroleums, Ltd.), of Princess Petroleums, Ltd.
(an affiliate of Pacific Petroleums) and Allied Oil Pro¬
ept. 24 filed $8,000,000 of first mortgage bonds, series C,
Nov. 1, 1981.
Underwriters—To be determined by
mpetitive bidding. Probable bidders: Halsey, Stuart
on
some
like
mort¬
Chairman, announced com¬
of $5,000,000 to $10,000,plans for expanding output of its
sell
Pacific
ue
eane.
Corp. Offering expected
(par $2), following merger, which will be voted
Sept. 4, into Atlantic Oil Co., Ltd. (a
,
.
stated that the company may refund
and
Canadian Atlantic Oil Co., Ltd.
Aug. 7, it was reported company expects to file in the
near future a
registration statement with the SEC cover¬
ing approximately 1,150,000 shares of common stock
Petroleum
interest
Cott
Aug. 22 it
company is contemplating sale
additional
common
stock
following
approval
of
3-for-l stock split (approved
Sept. 5.) Traditional under¬
writer: Lehman Brothers.
Proceeds—To repay bank loans and
Bids—To be received up to
orking capital.
Co.
of
Corp. (10/16)
ept. 19 filed $15,000,000 sinking fund debentures due
966
(subordinate), convertible through Oct. 1, 1961.
rice—To be supplied by amendment.
Underwriter—
errill Lynch, Pierce, Fenner & Beane, New York. Proeds—To be used to purchase $4,750,000 note of Deonian Co. held by Gulf Oil Corp. at face amount plus
ccrued
&
White,
a
Offering—Postponed.
Co., Inc., Chicago, 111.
determined as yet.
Bing & Bing, Inc.
Aug. 30 it was reported
program.
Oct. 29.
Shields
redeem
Westchester Lighting Co. 3Vz%
general
eight divisions.
November.
idding. Probable bidders: Halsey, Stuart & Co. Inc.;
idder, Peabody & Co.; Lehman Brothers, and Bear,
teams & Co. (jointly); White, Weld & Co.; Salomon
ros. &
Hutzler; First Boston Corp., and Blyth & Co.,
c.
(jointly); Union Securities Corp., and Smith, Barconstruction
was
The First Boston
ug. 9 filed $9,000,000 first mortgage bonds, due Oct. 1,
Underwriters—To be determined by competitive
r
(16/23)
shortly be
outstanding $22,388,000 first consolidated mortgage 4%
bonds due July 1, 1952. Probable bidders:
Halsey, Stuart
& Co. Inc.; Morgan
Stanley & Co.; Kuhn, Loeb & Co.;
981.
ey & Co. (jointly).
and
& Beane and
Proceeds —To
Consolidated Grocers Corp.
Sept. 21 Nathan Cummings,
Atlantic Coast Line RR.
repay
and
Utah Power & Light Co.
Goodwin
(jointly).
pany will undertake
financing
000 in connection with
—
To be supplied by amendment.
Hen & Co. and Blair, Rollins & Co.,
Inc.,
—
Co.
gage bonds due 1967.
Sept. 14 it was reported that there may
a
public offering of about 100,000 shares of common stock.
Underwriters
Probably Blyth & Co., Inc., Walston,
(10/22-23)
common
Freightways
&
amount of
investors. In addition, a bank loan or loans
totaling about $8,000,000 is contemplated. The proceeds
are to be used for the
company's expansion program.
uly 31 filed 1,000,000 shares of common stock (par 10
ents). Price—$1 per share. Underwriter—None. Proeeds—For exploration and drilling activities.
U.
Weld
stitutional
Corp., Washington, D. C.
ept. 28 filed 120,650 shares of
Corp.; Merrill Lynch, Pierce, Fenner
First Boston
53
27
W.
company
Telephone
sometime
V.
Kahler, President, announced that thla
owned by American
Co.) plans issuance and sale,
(approximately 99.31%
&
Telegraph
before the end of the year, of
682,454 addi¬
tional shares of capital stock to its stockholders.
Underwritcr-^-None. Proceeds—To
repay short-term loans and
for new construction.
Continued
on
page
54
'
\
54
The Commercial and Financial Chronicle
(1398)
Continued
from
Petroleum
Interstate
Pacific
53
page
June 29 it
t
Racine, Wis.
Sept. 21 it was stated that company plans to issue and
call approximately 120,000 additional shares of common
stock. Underwriters—A. C. Allyn & Co., Inc. and Shil-
Proceeds—
For
(J. M.)
(N. J.)
Co.
plans issuance and
April
of mortgage bonds in the early part
plans
company
this
competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Blair, Rollins & Co. Inc. and Carl M. Loeb, Rhoades &
Co. (jointly); Lehman Brothers; W. C. Langley & Co.
and The First Boston Corp. (jointly); Union Securities
Corp.; Kidder, Peabody & Co.; Blyth and Co., Inc., White,
Weld & Co. and Harris, Hall & Co., Inc. (jointly). Pro¬
ceeds—To repay bank loans and for new construction
(latter estimated to cost $26,450,000). Company has a
revolving bank credit of $16,000,000.
■
Manufacturing Co.,
linglaw, Bolger & Co., both of Chicago, 111.
working capital.
South
Light Co.
announced
of 1952. Underwriters—To be determined by
Sept 11 it was reported that the sale of 38,433 shares of
class B stock has been temporarily postponed.
Under¬
Lehmann
was
sale of $15,000,000
Co.
writer—White, Weld & Co., New York.
Jacobsen
Power &
Sept. 1 it was reported that the Office of Alien Property
expects to call for bids in October on all of the out¬
standing stock of this corporation.
nine shares held.
Oct. 3 it
sell
announced company plans to issue and
was
bonds.
competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth &
Co., Inc.; Lehman Brothers; Kidder, Peabody & Co.; The
First Boston Corp.; Union Securities Corp.; Equitable
Securities Corp.; White, Weld & Co.
Proceeds—From
sale of bonds, together with proceeds from sale of 100,000 shares of preferred stock (par $100), will be used to
retire $14,493,400 of bonds of former subsidiaries, to re¬
pay bank loans and for construction program. Additional
Financing—It is further estimated that company will re¬
quire approximately $100,000,000 additional to complete
about
December
in
$25,000,000 of first mortgage
Underwriters—To be determined by
and
for
Proceeds will be used to repay
ceived
on
& Robbins,
McKesson
par
value.
Inc.
Mengel Co.
Aug. 10, Alvan A. Voit, President, stated that the com¬
pany plans to spend from $15,000,000 to $20,000,000 for
expansion, but that plans for financing have not yet
been
completed. Traditional underwriter—F. S. Moseley
& Co.
•
Metals & Chemicals
Oct. 3 it
(11/1)
Corp., Dallas, Tex.
stated company plans
issue and sale of 100,000 shares of common stock. Price—$3 per share. Under¬
writer—Beer & Co., Dallas, Tex.
Proceeds—For work¬
ing capital, etc.
was
Mulhens
(Ferd.), Inc., N. Y.
Bids will be received at
the
(10/25);
Office
of Alien Property,
Department of Commerce, 120 Broadway, New York 5,
N. Y., by 1:30 p.m. (EST) on Oct. 25 for the purchase
from The Attorney General of the United States of 1,000
shares of capital stock (no par) at public sale, as an
entirety. These shares constitute 100% of the issued and
outstanding stock.
*
.
•
National Phoenix
Oct. 4,
Walter
Industries, Inc.
S. Mack, President of National Power &
Light Co. and Phoenix Industries Corp., announced that
following consolidation of the two companies with and
into
a new
corporation to be known
Industries, Inc. (to be voted
as
of
upon
new
National
Power
company on the basis of one-half share
Phoenix stock for each share of National
stock
held, with an oversubscription privilege.
Subscription rights will expire 21 days after the effec¬
tive date of the merger.
Arrangements have been made
with a banking group to underwrite the issue.
The price
to
stockholders
will
be
approximately 20%
average market quotation for such stock at
time of the merger.
The proceeds are to
working
York
capital.
below
or
be
Underwriter—Reynolds &
the
about the
used
Co.,
for
New
City.
New
reported that company plans to sell about
50,000 shares of preferred stock this Fall. Underwriters—
was
To be determined by
competitive
bidding. Probable bid¬
ders: Lehman
Brothers; Equitable Securities Corp. and
Loeb, Rhoades & Co. (jointly); The First Boston
Corp.; Merill Lynch, Pierce, Fenner &
Beane; Kidder,
Peabody & Co.; The First Boston
Corp.; W. C. Langley
Carl M.
&
Co.; Harriman Ripley & Co., Inc. Proceeds—To
repay
bank loans and for construction
program.
Telephone Co.
Sept. 10 the company
year about
struction program.
new
plans to raise next
financing for its
con¬
Probable bidders for bonds:
Halsey,
Stuart & Co. Inc.;
Morgan
The
Inc.;
First
Southern
July 31 it
Proceeds—
with
FPC
for
facilities to cost
Gas
Co.
stockholders
of
permission
has filed
record
for each
10 shares
$8.50
share.
per
to
about
Oct.
4
held; rights to expire Oct. 23.
*
Price
company
contem¬
than 200,000 shares
more
Underwriter—Paine, Webber, Jackson & Cur¬
Proceeds—To retire $17,200,000 of 3lA% debentures,
finance
to
share
preferred stock (about $20,000,000)
$25,000,000 of new 20-year sinking fund de¬
about
bentures.
tis.
sub¬
to
one
convertible
new
and
right
'
plates issuance and sale of not
of
the
common-stock at rate of
if Sylvania Electric Products, Inc.
Oct. 10, it was announced that the
Proceeds will
an
construct
an
scribe for additional
Proceeds will be
Financing not considered
expansion program.
Natural
was announced company
applica¬
additional
estimated $13,641,000, of which ap¬
proximately $9,187,000 is expected to be spent in 1951.
Sept. 13 company announced it plans to offer to common
tion
Co., Goshen, ind.
reported that company plans to issue and
preferred stock (par $100).
company indicated it would this year be In
with $18,000,000 of senior securities.
Probr
bidders: Halsey, Stuart & Co. Inc.; Blyth &
able
Lehman Brothers; White, Weld & Co.
expansion
program
000,000 and for working
will
vote
imminent.
Texas
Nov.
19
Pcapital.
cost
to
more
than
$18,-
Meeting—Stockholders
approving financing program.
on
Utilities Co.
Philadelphia Electric Co.
Sept. 24 it was reported company may issue and sell
Sept. 30 company announced that about $200,000,000 will
around 400,000 additional shares of common stock early
have to be raised through the sale of additional secur¬
in 1952. Probable bidders: The First Boston Corp. and
ities, spaced at intervals, and in amounts which will
Blyth & Co., Inc. (jointly); Union Securities -Gorp.;
permit ready absorption by the investment market. The
Lehman Brothers and Bear, Stearns & Co. (jointly);
overall construction program has already cost $217,000,/ Goldman, Sachs & Co. and Harriman Ripley & Co. Inc.
000, and will require expenditures of about $365,000,000 :
(jointly); Kidder, Peabody & Co. and Merrill Lynch,
more in the years 1951
to 1956.- ;
.•
Pierce, Fenner & Beane (jointly).
;
■
if Public Service Co. of New Hampshire
Sept. 25, it was reported company may issue and sell
late in November 150,000 to 200,000 shares of additional
comomn stock. Probable bidders: Kidder, Peabody & Co.
and Blyth & Co., Inc. <jointly); The First Boston Corp.;
Harriman Ripley & Co. Inc.
,
Public Service Co.
July 12 it
.
of North
.
Carolina, Inc.
sell
several
In July last year, $1,200,000 of bonds were
privately with two institutional investors.
it
17
North
was
Carolina
reported
Utilities
\
,
company
has
Commission
for
applied to the
permission to
borrow
$1,500,000 on 3% notes. These notes would be
through the sale of common or preferred stock.
underwriters:
Union Securities
Corp. and
W. C. Langley & Co., New York. Proceeds from notes to
be used to pay for construction costs.
/
refunded
; Traditional
;
Fall.
placed
Tide Water Power Co.
Sept.
-
announced company plans to issue and
million dollars of first mortgage bonds in
was
the
,
United Gas
Corp.
Aug.
1, N. C. McGowan, President, announced that "it
will be necessary to arrange for an additional $50,000,000
to complete the total financing, and it is
presently antici¬
pated this will be done by the sale of first mortgage and
Rochester Gas & Electric Corp.
Aug. 1 it was announced that company expects to 'issue
collateral trust bonds during the latter part of the year."
$5,000,000 additional first mortgage bonds and additional
Underwriters—To be determined by competitive bidding.
debt securities or preferred or common stocks, bank
Bidders for an,issue of like amount sold on July 24 were
borrowings, or some combination thereof, in connection
Halsey, Stuart & Col Inc.; Morgan Stanley & Co.; White,
with its construction program. The method of obtaining
Weld & Co. and Equitable Securities Corp.
(jointly);
such additional cash requirement has not been deter¬
The First Boston Corp., Harriman
Ripley & Co., Inc., and
mined. Previous bond financing was done privately.;
Goldman, Sachs & Co. (jointly). Proceeds—For expan¬
July 18, it was reported that the company expects to
sion program of United Gas System and for other
corporaise money through the sale of some preferred stock
later this year. Underwriter—Probably The First Boston / rate purposes.
Corp., New York. Proceeds—To finance, in part, a $10,Virginia Electric & Power Co. (12/10)
000,000 construction program the company has budgeted
Sept. 25, Jack G. Holtzclaw, President, announced the
for the next two years.
Stanley & Co.
proposes to issue and sell $20,000,000 of first
refunding mortgage bonds. Underwriter—To be de¬
termined
by competitive bidding.
Probable bidders:
Halsey, Stuart & Co, Inc.; Salomon Bros. & Hutzler;
company
Ryan Aeronautical Co., San Diego, Calif.
Aug. 4 it was announced company plans to increase
its authorized capital stock (par $1) from 500,000 to
1,000,000 shares in order to place it in a position to
do appropriate financing of some form of its own securi¬
ties if and when advantageous to the
company. The new
financing may take the form of a general offering for
sale to the public or granting of
rights to stockholders;
and
Stone
&
Webster Securities
Corp.; Union Securities
Corp.; White, Weld & Co. Proceeds—For construction
program.
Bids—Expected to be opened on or about
Dec. 10.
Westinghouse Electric Corp.
Sept. 26, it was announced stockholders will vote Dec. 14
on
increasing authorized indebtedness to $500,000,000
vertibility into common stock. The company presently
from $150,000,000 in connection with a $296,000,000 ex¬
has outstanding 439,193 shares of
capital stock, of which
pansion program. Company plans sale of debt secu45,350 shares are held by the wholly owned
subsidiary,, -rities the type and amount of which are undermined
Ryan School of Aeronautics.
(may be private). Traditional underwriter: Kuhn, Loeb
& Co., New York.
*
Schering Corp.
the
reservation for
edness
announced it
$100,000,000 from
Blyth & Co.,
Co.,
Inc.; White, Weld & Co.; Lehman Brothers; MerrlU
Lynch, Pierce, Fenner & Beane and Harris, Hall & Co.
(Inc.) (jointly).
Offering—Expected in the Fall.
expansion program.
Aug. 7, it was reported company may issue and sell
$8,000,000 to $10,000,000 of first mortgage bonds. Prob¬
able bidders may include: Halsey, Stuart & Co. Inc.;
for
have to raise
additional
the market
be used for
used
may
through
Southern California Gas Co.
Pennsylvania Water & Power Co.
July 25, stockholders approved issuance of 78,507 shares
or
New York
re¬
expansion program and working capital.
of cumulative
company
more
.
England Power Co,
Sept. 6 it
For
$49,900,000
refunding mortgage bonds which' were sold last week.
The nature, amounts and timing of the new
financing
cannot now be determined, and will
depend in part on
market conditions existing from time to time and
may
include temporary bank loans.
Electric Switch
was
announced
was
Inc.; Kuhn, Loeb & Co.;
sell 100,000 additional shares of common stock. Under¬
writer—F. S. Moseley & Co., Boston, Mass. Proceeds—
National Phoenix
Oct. 31), stockholders
of latter (other than Phoenix) will be
given the right
to subscribe for 1,465,167 additional shares of common
stock of the
Penn
Sept. 21 it
due before the end of the year.
Boston Corp. and
Harris, Hall & Co., Inc. (jointly). These
bankers bid for the $30,000,000 issue of 3Ys% first and
Probable Under-
Byllesby & Co., Chicago, 111.
For working capital.
announced stockholders will vote Oct. 23
on a proposal
to increase authorized common stock by
500,000 shares to 2,500,000 shares in order to provide for
a probable offering of additional stock to common stock¬
holders. Probable, underwriter: Goldman, Sachs & Co.,
New York. Proceeds will be added to working capital.
are
fi¬
nancing to take care of its 1951-1952 construction pro¬
gram. Probable bidders for bonds: Halsey, Stuart & Co.
Parkersburg Rig & Reel Co.
Aug. 1 A. Sidney Knowles, Chairman and President, an¬
nounced that the directors have approved in principle a
plan to offer a modest amount (not exceeding $300,000)
of common stock for subscription by common stockhold¬
ers.
This may involve the issuance of 24,700 additional
shares on a one-for-eight basis. There are presently out¬
was
com¬
April 4, the
writer—H. M.
May 24 it
be
company
$8,000,000 by fall ot
outstanding $4,000,000 of 4%%
bonds and repay outstanding short-term
mortgage
approximately
Nov. 20.
standing 197,600 shares of $1
the construction program through 1954.
to
*
announced
than
more
Underwriters—May be determined by
Aug. 29 it
bank loans
Bids—Expected
of
Southern California Edison Co.
.
Probable bidders for debentures: Hal¬
expansion program.
issue
bank notes which
Stuart & Co. Inc.; Morgan Stanley & Co.; Lehman
and Union Securities Corp.
(jointly); White,
sey,
Jersey Gas Co.
Eajl Smith, President,
year.
first
Brothers
Weld & Co.
„
bond
petitive bidding.
Probable bidders:
Halsey, Stuart Si
Co. Inc.; Lehman Brothers; Blyth &
Co., Inc. Proceeds—
To refund the
presently
Pacific Telephone & Telegraph Co. (11/20)
Aug. 15 it was announced company plans to issue and
sell $30,000,000 of 30-year debentures and 633,274 addi¬
tional shares of common stock at par ($100 per share)
to present stockholders at rate of one new share for each
if Long Island Lighting Co.
24
a
Thursday, October 11, 1951
...
which
could
conversion
be
issued
of
with
long-term indebt¬
provision for con¬
.
•
•
Northern Indiana
Oct. 4 it
on
was
stated that stockholders will vote
increasing
authorized
common
shares from 4,000,000 shares and
tion
of
Oct 3 it
Public Service Co.
240,000
shares
of
new
on
stock
to
tire
Oct.
approving the
cumulative
25,
4,500,000
crea¬
preference
stock (par $25).
Probable underwriters—Central
Repub¬
lic Co. Inc.; Blyth &
Co., Inc.; and Merrill
Fenner & Beane.
Lynch, Pierce,
was
common
reported that the sale of the company's en¬
stock
issue
(440,000 shares)
pected for at least two months. The
sale
was
will
not
be
ex¬
made
to the
highest bidder by the Office of Alien Property.
Probable bidders: A. G. Becker & Co.
(Inc.), Union Se¬
curities Corp. and Ladenburg, Thalmann & Co.
(jointly);
Merrill Lynch, Pierce, Fenner &
Beane; Kidder, Peabody
.&
Co.;'F. Eberstadt & Co.; Allen & Co.; new company
formed by United States & International Securities
Corp.,
Dillon, Read & Co.; F. S. Moseley & Co.; Riter & Co.
Wisconsin Public Service Corp. *
Sept. 4 C. E. Kohlepp, President, announced
t
'
company
plans to build
in Marathon
ing has
not
bidders
may
a $12,000,000 steam turbine power plant
County, Wis. Method of permanent financ¬
yet
been
determined.
If bonds, probable
Halsey, Stuart & Co. Inc.; The
First Boston Corp.; Harris, Hall & Co.
(Inc.); Kidder,
Peabody & Co.; Carl M. Loeb, Rhoades & Co.; Salomon
Bros. & Hutzler; Union Securities
Corp.; Merrill Lynch,
Pierce, Fenner & Beane; Shields & Co.
include:
Volume 174
Number 5054
...
The Commercial and Financial Chronicle
(1399)
Continued jrom page 8
bankers in competition with each
With Founders Mutual
other.
In
NSTA Notes
&
not
Schlicting,
Hugh
and
Wm.
P.
Harper
&
situation
entirely to the liking of those
keep
Co., Phila¬
& Co.,
going after
new
out
move
to
pear
immediately
hang
around
definite time,
The
The calendar for the next week
indicates that underwriters will be
busy
a
the
of
segment
financial
well
as
don't
they
for
ap¬
as
right, and
enough to
have
an
are
firm
a
current
now
as
new
better be
plans
of
it
issuers,
likely that at least 14
observer
one
Building.
generally,
cor¬
municipal, boils
Treasury market or better yet an
"up-tick," the bonds will go. But
appears
put it
"You
(Special to The Financial Chronicle)
CHICAGO, 111.—David
has
John
John W. Bunn
James B. Maguire
Harry L. Arnold
to
the
less
liking
than
probably
the
of
nine
these
of
no
offerings
will be handled via the negotiated
route, leaving five to
Commonwealth
entirely
bankers,
be
decided
had
Babb With
bulk
of
this
business
new
junior equity shares by corpora¬
tions. But the major operations
debt
cover
securities
of
two
in¬
dustrial
corporations along with
offering of $35,000,000 of bonds
for the New Jersey
Turnpike Au¬
convertible
new
Celanese
Corp.
expected
market
•
*
of
to
America's
next
be
brought
Thursday.
Co., the retiring President
&
Higgins of San Francisco presented
all
attending the convention of the National Security Traders
Association with two decks of San Francisco souvenir scenic
playing cards (the cable cars and the Golden Gate bridge).
Mrs. Herbert Irish presented a handy sewing kit to all those
the
v
Beane, Louisville, Ky., got so many
she
that
had
Lynch, Pierce, Fenner &
bargains at Tia Juana, Mexico,
Ferguson, of Merrill
tough time closing her bag, and said for a
while she thought she would have to call the "Chronicle's" own
Ed Beck "of Commissioner McEntire to sit on them so she could
a
very
get them tp lock.
certain
Security Traders Association of New York (STANY) Bowl¬
ing League standing as of Oct. 4, 1951, is as follows:
Points
TEAM
Burian (Capt.),
Leone
Siepser, Gronick, Growney, Kaiser
18
17
17
15
(Capt.), Tisch, Pollack, Nieman, Bradley
Hunter
(Capt.), Weissman, Farrell, Valentine, Smith
Mewing (Capt.), G. Montayne, M.
Kumm
J
(Capt.), Cra^g, Fredericks, Weseman, Lytle
Goodman
Meyier, La Pato, Klein._____
(Capt.), Gehegan, R. Montayne, Krassowich, Manson__
(Capt.), Gold, Krumholz, Young, Gersten.
Serlan
—
Greenberg (Capt.), Siegel, Cohen, Sullivan, Voccoli
(Capt.), Gavin, Gannon, Jacobs, Murphy
Donadio (Capt.), Rappa, O'Connor, Whiting, Demaye
H. Meyer (Capt.), Swenson, A. Frankel, Wechsler, King
Bean (Capt.), Lax, H. Frankel, Werkmeister, Reid
Krisam
14
14
13
12
10
10
7
3
200 Club
213
Manson
H.
Meyer
—_—_—
203
stock,
offered
Can
Judging
to
the
latter
1961
to
and
be
to
"rights"
for
forego
147,436
will be
stock
by
DIVIDEND NOTICES
MIDDLE STATES PETROLEUM
CORPORATION
COMMON
underwritten.
With King Merritt
dividend
stock,
stock
Corporation,
1951
M.
ANGELES,
Davis
is
Cal. —Paula
Inc., Chamber of Commerce
Building.
rather
a
new
mixed
issues brought
Pennsylvania Elec¬
SPARTANBURG,
S.
Arkansas
Power
DIVIDEND NOTICES
of
case
Telephone Co. Ltd.'s
NATURAL
G.
October
5,
offering.
The
has this
board of
that
the
companies
One
and
Dollar
an
in
major
cash
their
up
of
cash
per
of
share
dividend
of
of
record
at
October
E. E.
of
cents
the
business
able
way
regular
a
'
an
the
a
of 25
payable November 15,
holders of record Ogober 25,1951.
cents
1951, to
per share,
FURNITURE
*
DAYSTROM
INSTRUMENTS
♦
15,
for
Common Stock, both payable on
Nov. 1,1951 to the stockholders
of record
American
Type Founders offers the world's most
complete line of printing equipment.
DAYSTROM
W. V.
Oct. .19, 1951.
f'-f
McMENIMEN, President
Oct. 2, i95i
1951.
October 4/1951
ELECTRIC BOND AND SHARE
Two Rector St., New York 6, N. Y.
re¬
C<?
and
issues
Common Stock Dividend
The Board of
own
AMERICAN VISCOSE
inden¬
purchased
declared
Exchange
ber
cose
Corporation at their regular
on
dividends
THE COLUMBIA
on
.
declared this day the following dividends:
cents
Common Stock—No. 68 and No.. 69
RepQuarter.lv
204
per
per
share
per
share
.
...
Tot^l \,,,..............
304
November 15, 1,951,
to
record at close of business October
1951
,
(50(;)
per
share
on
cumu¬
the
stock, both payable
of record
Oon
(5%)
share
at
on
com-
No¬
shareholders
the close of business
29, 195
Secretary
Commission, on
the'I
Stock, payable Decem¬
to stockholders of
1951,
14,
at
close
the
of
business
November 9, 1951.
will be payable in
Montana
Stock
mon
for
each
Bond
mon
and
Power
at
100
the
The dividend
shares of The
Company Com¬
rate
shares
of 2.2 shares
of
Electric
Share
Company Com¬
Stock. No scrip representing
fractional shares of The Montana
Power
Company. Common
Stock,,,
will be issued to stockholders. The."
Company proposes to arrange for
the Company's dividend agent to f
handle fractional share equivalents
for the stockholders.
October 15,1951.
B. M. Betsch,
holders of
Dale Parker
LAMINATES
nioij
per
preferred stock and fifty
vember 1, 1951, to
share.
104
....
dollar and
one
the five percent
lative
pf Directors has
Extra.:
of
twenty-five cents ($1.25)
GAS SYSTEM, INC.
Board
Oct. 3,1951, declared
Directors has
dividend, subject to the;
the Securities and
of
Common
Dividend Notice
by
meeting
The
a
approval
CORPORATION
DIVIDEND NOTICE
October 4,
on
M. M. UPSON, Chairman of Board
DuVALL, Secretary
going
3.50%
average
amounts
for
on
a quarterly
share on the
any
provisions, they naturally are
inclined to go into the open
payable
share oil the
close
investment
operations
*
DAYSTROM"
regular quarterly
COMPANY
such
on
ELECTRIC
a
dividend of 50* per
programs.
market
CO.
Preferred Stock and
dividend
($1.00)
extra
on
holders
the
are
attract
enough in the
deals
to
take
PILE
dividend of 75* per
(25(f)
per
capital stock of
the Company, payable on No¬
vember
15,
1951,
to
stock¬
share
and
larger pension funds still
RAYMOND
day declared
directors
day declared
semi-annual
Private Deals Compete
find
*«»
Heavy Construction
Dividend No. 16
Twenty-five
DAYSTROM
(formerly ATF Incorporated) on September
25,1951, declared a regular quarterly'divic*
dividend
LEIGHTON, Secretary.
The Board of Directors has this
30 Rockefeller Plaza
New York 20, N. Y.
Associated
new
★
Daystrom, Incorporated
B.
1951.
,
GAS
COMPANY
same was
market, still lean¬
ing a bit toward the ragged side,
was
not
particularly helpful to
those undertaking new flotations
in the period.
through
Transfer
Soil Investigations*Foundations
CONSOLIDATED
The seasoned
serious slack
the close
books will not be closed.
CONCRETE
Light
WILLIAM H. BROWN
Secretary
20,
at
1951.
140 Cedar Street, New York 6, N. Y.
&
the slow side, and the
private
November
record
17,
in
the
Company, 124 y2 Morgan Square.
$8,000,000 of 30-year first
mortgage bonds appeared a bit
insurance
on
of
October
on
Petroleum
C.—Rich¬
$5,000,000
Co.'s
Bankers
declared
States
ard R. Williams is with Calhoun &
have been taken quickly.
TYPE FOUNDERS
of
issuable
on
payable
cent,
been
Middle
(Special to The Financial Chronicle)
*
Directors
has
of
DIVIDEND
per
v
AMERICAN
The
four
to stockholders
business
with King Merritt &
Co.,
STOCK
of
common
of
LOS
dealer
in
reports
was
the
J.
Roths-
Boulevard to engage in the
which
(Special to The Financial Chronicle)
30-year first mortgage bonds, carraying a 3%% coupon and priced
to yield 3.29%, was
reported to
in
J.
public.
out this week.
But
Cal.-James
James
securities business.
common
of
indicated
is
and
Co, with offices at 6331 Holly¬
wood
record
NOTICE
Good¬
share
common
Directors of the American Vis¬
DIVIDEND
E.
with
child, Jr., have formed Rothschild
&
A
will
stockholders
tric Co.'s small issue of
not
George
—
affiliated
Meanwhile Sharon Steel Co. has
announced
Aluminium,
offering
but it
reception for
ture
OPERATING UNITS:
Mass.
become
Joins Calhoun Staff
to
Goodbody
HOLLYWOOD,
with bankers to take
down any unsubscribed portion.
New Issues Are Mixed
terms
"Duke" Hunter
has
Rothschild
holders
also
loans just able to write their
DIVIDEND NOTICE
■
.
Continental
turn, and with the makers of the
200
5 Point Club
.
retire
may
of
With
L.Klein
:
preferred
firm
to
interests
offered to the
true
The
is
Co.'s $15,000,000 of 25-year deben¬
tures plus 104,625 shares of second
to
shares, leaving this amount to be
on
{SECURITY TRADERS ASSOCIATION OF NEW YORK
to
company,
that
circles there
Exchange Commission, at the Oct. 3 dinner, brought a wave of
laughter when he declared during his speech, "I have never felt
as close to the SEC as I do tonight."
The
first
Floyd B. Odium, President of the Atlas Corp., who was seated
next to Commissioner Richard B. McEntire of the Securities and
.
M.
The
proceeds
day.
made
exercise
Ora
future
of 372.205 shares
capital stock due out
par
same
be
the
(Special to The Financial Chronicle)
business projected for the
new
offering
no
attending, and Herbert Irish (Fairman & Co.) distributed money
clips and a unique puzzle key ring which he was kept busy dem¬
onstrating.
Samuel E. Magid, President of Hill Thompson & Co., Inc.,
New York, was the donor of beautiful corsages to alj the ladies at
dinner Oct. 3 with the compliments of his firm.
Mrs.
of
near
common
the
of
Rothschild Co. Opens
banking group.
additional
of
of
North
& Co., Inc., and Bond &
win, Inc.
plans for the sale, by
of 174,137 shares of
Ltd.'s
those
Babb
Among the other sizable pieces
negotiation,
the
use
Close behind will be
Johnson
com¬
outstanding notes and to increase
will
.
CLOSING NOTES FROM THE CONVENTION
Wilson,
stock
general funds.
Morton Cayne
John Egan, First California
of the Association will be Chairman.
of
stockholders,
but
under¬
by a substantial invest¬
ment
be
$50,000,000 of 25-year debentures
Seattle.
Co.
preferred
convertible, prior to
thority.
Lee R. Staib
BOSTON,
Edison
which will be offered first to
will involve the sale of senior and
are
staff
1
written
The
an
Co.,
Chicago went into registration Goodbody & Co., 50 State Street.
yesterday to cover $42,912,500 of He was formerly with A. C. Allyn
mon
through competitive bidding.
&
Dawson
R. Denis
the
(Special to The Financial Chronicle)
market.
is
to
Salle Street, members
Midwest Stock Exchange.
Big Issues Ahead
what
A.
added
La
corporate undertakings will reach
And
been
the beam."
on
P.
John A. Dawson Adds
;
population. Providing nothing
marketwise
to
change
happens
Col.-James
Moyers has been added to the
staff of Founders Mutual
Deposi¬
tor
Corp., First National Bank
in¬
an
down to just this: if you have
issue today, priced
fortunate
DENVER,
i
situation
porate
for
names
diversification, but if these
Son
(Special to The Financial Chronicle)
is
who market such securities.
They
Beane, New York City; George Muller, Janney &
delphia,
municipals the
55
Secretary-Treasurer
October 10,1951.
*
56
The Commercial and Financial Chronicle
(1400)
Thursday, October 11, 1951
.....
BUSINESS BUZZ
Business
Washington
Beluml-the-Scene Interpretations
from the Nation's
/I
Capital
Mart's
ff/y
JLJLm
t'tv
JL
Mj
Bookshelf
WASHINGTON, D. C.—Should principle against controls, then to
some
one
from the government heck with them, said the latter.
,
request you to share your latest
patent, secret process, or indus¬
trial know-how with the Euro¬
peans, for the sake of promoting
Western European arms output,
back
the
to
and
dustry
or
#f he has
wage
question
will
control
price
of
up
ii*si*wr4*«f »a8*sii«»«si88a?
this year,
•■iiiJViiSBiiisasiiiiiitiifii'
come
This
is
in¬
your
during the first six months of
8K»Etf«l«88KIIX*XS8X8ISS8aifi'
r^!kiaaM«i««i«x«««K«x«s!ixiBif;
asking
the
officials
the
for
timing
this
of
It Is alleged by industry spokes¬
men
here that officials who are so
Anxious to show private American
♦mow-how
nil
to
the
oblivious
but
Europeans,
to
are
facts
the
the
words,
other
In
How to
N.
Man Was Meant to be Free—Se¬
Office
of
Price
Harold
"Of course
one
it's
a
the existing situation under which
Madison
trifle uncertain at times!"
At
bank
FDIC should
of whether the
most
fundamental
reason
was
well's
kind
book
of
which
described
half-war,
business
indifference.
Business
amorphous kind of a
paid virtually no attention to the
has been going on.
jAdministration drive to regain the
powers
it
modified.
Co. hold
lost
the
croachment
DPA
line against
of
Xhey couldn't
ness
when
Congressmen
controls
even
the
en¬
reported
stimulate busi¬
opposition, by asking for it,
less receiving it spontan¬
much
eously.
strong
a
bank,
of
the
state
insurance
unless
it
would
agree
to maintain its capi¬
at a percentage equiv¬
perpetually
ratio
er
publicans
were
after
If
the
the
He-
going to turn this
political trick after so
Democrats had voted on
around to
many
message.
a
the
tiate
that
war
the
belligerents
a cease
It
is
forces
On
Second, the Democrats got mad
&t the handful of
Republicans who
immediately reacted "let's give
Che President what he
wants and
glow this thing up"
true
half-peace,
which
erroneous
failed
the
stories that if
a
bank
FDIC
Meanwhile
the
Banking
mittee is checking into the
com¬
ques¬
true
the
other
been
is
doubted
the
U.
built
S.
up
^'
hand, ^neither
that
the
Commies
could throw the U. S, forces out
of Korea.
It is doubted that ihe'
U. S. forces could fight through
to
a
"In
Brief"
this question because of
time
the short ing, plus free samples of complete
present service—$1.00—Dept. B, Analyst
the
for
remaining
Institute, 154 Nassau Street, New
York 38, N. Y.
session.
v
It
is said
*
*
'T::
*
that Persia has until
just about Dec. 15 before folding
up
financially
an
now
that there ap¬
be almost no chance of
to
pears
Timing Factor—Folder explain¬
Year Book of Railroad Informa¬
tion
1951
road
Edition—Eastern
Presidents
Rail¬
Conference,
Liberty Street, New York
143
6, N. Y„
—paper
agreement with the British. By
1951 Yearbook of Private Place¬
that
virtually
istration is to provide economic
aid
Persia, most of it in actual dol¬
lars, or see Persia fall into the
ment Financing—E. V. Hale &
Board of Trade
4.
Co.,
Building, Chicago
111.—S35.00
to
Russian orbit.
Persia
The cost of saving
Robert A.
Robert
its scheme
Haughey, limited
partner in Carlisle & Jacquelin,
Once passed away on Sept. 30.
to
subject civil viola¬
Large
RIVERSIDE CEMENT CO.
CLASS B
A
acts,
in
year
to
treble
damage
suits.
will be postponed until
the
drive of
business
So
next
to
le¬
galize freight absorption express¬
ly where undertaken in good faith
to meet
competition.
(This column is intended to
leading
(common) STOCK
producer
fast-growing
of
cement
Southern
California.
Analysis of this Company and
a
review of the Cement Indus¬
try available
on
request.
Selling under
$14.00
re¬
flect the "behind the scene'' inter¬
pretation from the nation's Capital
and may or may not
Potential
Appreciation
WE SUGGEST
tions of its acts, like the antitrust
also
Haughey
A.
economically is said to be
coincide with
the "Chronicle's" own views.)
LERNER & CO.
Investment
Securities
10 Post Office Square, Boston 9, Mass.
Tel. HUbbard 2-1990
Allied Electric Products
nego¬
build-up is believed to be decisive.
It
of
The Foundation for
Commies
should
that
have
,
Publications—list
—
22,
York
New
be reached on ing new development in stock tim¬
can
average for
insurance.
FIRM TRADING MARKETS
fire.
also
also
Avenue,
pamphlets
liquidation. No
institution through
firm conclusion
alent to the national
of
—
with Economic Education, Inc., Irvingputting an ton-on-Hudson, N. Y.—paper
never
have built up their forces during
the lull devoted to arguing wheth¬
during this period.
;•
President's
IS
It
was
wanting
a
the
1940-1951
always merge a failing bank
time, the government will be
bankrupt.
The choice
supervisory officials, FDIC presented to the Truman Admin¬
insistence
the
officials dropped their proposition
that no bank could obtain deposit
tal
tion
Governor
of
Stassen,
N. Y.—cloth—$3.50
"couldn't pay a
exactly the broad legal authority the key supervisory and personnel
it wants to do just about what it officials actually have a personal dime" to make good its deposit
insurance liability.
pleases, and the Senate vote was financial incentive to increase the
taken after all
This
double
pressure
rather
hands, even Chair¬ number of their subordinates."
man
irked the members of the Banking
Maybank of the Banking
*
*
#
committee, who were quick and
committee, had declared initially
The outlook is for perhaps sev¬
clear in their reaction. The com¬
Ihey wouldn't have anything to do
eral months
more
of
"Nineteen
with modifying DPA the way the
mittee, however, finally recom¬
Eighty-Four" in Korea, to borrow mended their
president asked.
renominations to the
the title of the late George Or¬
Senate.
The
why the Senate reversed itself
E.
Doubleday & Company, Inc., 575
slight drawback to this business is that
of
Stabilization
Statesments
lected
capital ratio about $45 million per year.
all banks with deposit Russia got control of the govern¬
ment of Persia, then U. S. oil con¬
The state bank supervisors got cessions
in
Saudi-Arabia
would
tive to reduce the number of their
a little assist from the propaganda
be in line for Red pressure, so it
There
are
two
explanations, employees—say $500 'a head' for
close observers say, for the deci¬ every non-essential worker
re¬ put out by Messrs. Harl and Cook. is averred.
One aspect of this was that they
sion of the Senate to reverse it- moved from the Federal payroll.
could not go out and negotiate with
If Congress goes home soon then
4self on price ceilings. The modifi¬
"Think it sounds silly?" Shafer
state officials while they remained the
Federal
Trade
Commission
cation of the cost absorption for¬ asked
rhetorically.
"Well,
it
unconfirmed.
Another
consisted will have to postpone until 1952
mula voted by the Senate gives couldn't possibly be as
silly as
Che
United
of
1951-1952—
cloth,, $3.00
of
"Perhaps the same bounty idea
Until the Administration gets over could be applied
profitably to the1
Che idea that vital private proc¬
problem of decreasing the swarms
esses and patents costing Ameri¬ of Federal officeholders and job¬
can firms millions to develop are
holders who are devouring the na¬
as free as the U. S.
Treasury to tion's substance. Suppose key su¬
every one except the U. S. tax¬ pervisory and personnel officials
payer, the best thing is to buck the in
the
multitudinous
executive
official suggestions for generos¬ departments,
agencies, and com¬
ity on this front, it is suggested.
missions were given a cash incen¬
18,
York
Brookings Institution Wash¬
ington 6, D. C. — paper, $1.50:
Treasury
fully..
Problems
States Foreign Policy
for all people here can foretell—
Referring to the fact that Civil
there appears to be no prospect of
f&em to occur
Service practice usually evaluates
a cease fire.
nhould labor to attempt to pro¬ the importance of a job, and hence
K'K-*
*
*
vide the utmost safeguards against the pay rating of the head of the
Despite the first disposition of
Corning
American
processes
to division, section, office, etc., ac¬
the Banking subcommittee of the
tvork in competition with Ameri¬ cording to
the number of em¬
Senate to refrain from touching
can industry.
ployees supervised, Rep. Paul W.
the politically sacred Federal De¬
Furthermore, it is pointed out, Shafer (R., Mich.) has come up
Ihe only recompense the Adminis¬ with a not altogether impractical posit Insurance Corp., as reported
in this column recently, the sub¬
tration offers under the Mutual proposal for reducing the Federal
committee
did change its mind
Assistance t Act is the
Sec. 517 payroll.
and d e ci d e to have something
which
authorizes
an
American
"Farmers have long had protec¬
of a look-see into FDIC policy
firm to sue the government of the tion of State bounty laws which
before
confirming
Chairman
TJ. S. in the Court of Claims for provide a financial incentive for
Maple T. Harl and member H. Earl
damages.
getting rid of noxious animals or
Cook for
new
6-year terms as
Damages from foreign misappli¬ birds of prey that destroy crops FDIC directors.
cation of a patent or process may or farm animals," he observed.
prove
41st Street, New
Y.—paper—$1.00
Major
230
Tribune,
The
It does not
to them that they
legally difficult to
Hearld
West
fife about competition.
i3e
Stabler—The
Norman
York
New
the Financial
Read
News—C.
economic affairs may
operate to mitigate the forces of
inflation sought to be slain by an¬
other price control law.
aspect
8s
Bender
Matthew
is that the Treas¬
ury,
arms.
trade—Walter H.
and
—
Company, Incorporated, Albany 1,
N. Y. and 149 Broadway, New
York 6, N. Y.—loose-leaf—$25.00
(includes binder, up-to-date ma¬
terial and service for one year)
better give 30, 1952.
What is interesting in the light
the brush¬
because
of
the
Diamond
during the first few months
most valuable trade and industrial of 1952, will be contributing to
fsecrets has got most of the pro¬ deflation
rather
than
inflation.
the
actual
fessional business observers seeth¬ Whereas
budgetary
deficit for the first quarter of fis¬
ing.
Very few industrial processes or cal '52 was $2.6 billion, the deficit
for the October-December quarter
patents are applicable solely to
will approach $5 billion.
On the
arms
production. These same
other
hand,
during the March
processes or patents also are like¬
ly to have just as much use in pro¬ quarter, when extension of DPA
duction of civilian items, by the is before Congress, the Treasury
will bring in a surplus of some¬
came
European competitors who
momentarily
may
be
making thing more than $3 billion.
proclivities
analysis of basic
principal nations
world open to American
investment
K»M|^V*8XiaaXCI81«R«l811£8V
the
business representative, 1952, or pre-election session of
been around at all, will Congress, since DPA expires June
that
are
tell you that you had
the government man
-off.
The
your
chances
collection and
a
tax data for the
of
with the same rancor as
The
Inc., N. Y. City.
Foreign Tax and Trade Briefs—
*
*
£
entire
first.
with
Armament Infla¬
of
hart & Company,
the Senate voted on price
control, remains to be seen.
powers
industry reprecentatives in the nation's capital
check
Economics
tion, The—Jules Backman—Rine-
give
Administration the
will
House
the
Whether
decision.
Yet, unless the Commies change
their minds—which could happen
FOREIGN
SECURITIES
HARL MARKS & r!0. INC.
..,
;
King wood Oil
Standard Cable
Texas
Engineering & Mfg.
FOREIGN SECURITIES SPECIALISTS
SO BROAD STREET ..NEW YORK 4, N. Y.
TEL HANOVER 2 0050...TELETYPE: NY 1-971
Hill, Thompson! Co., Inc.
Trading Department
70 WALL STREET, N. Y. 5
Tel. WHitehall 4-4540
@FedFRASER