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UNIVERSITY
OP
MICHIGAN
ESTABLISHED 1S39
OCT 1
1953
c
atmtiSISIauw
Chronicle
Reg. U. S. Pat. Office
Volume 178
Number 5264
New York 7,
N. Y., Thursday, October 15, 1953
Price 40
Cents
Copy
a
EDITORIAL
Business Outlook and the
As
Coming Test of Management
developed in the
plans for settling the Korean affair nor the out¬
bursts of Tito
over
Trieste
were
needed to remind
New York
teeth need be told that the task
we
mula for starting any
have
(2)
tion;
getting world affairs in order is
a
huge, intricate and difficult one—an undertak¬
ing, as a matter of fact, which only a few short
courage;
tortion in
First
of
credit managers to be
merely
very
shoulders of the British
now
are
as
on
as
fense
is both
least
as we know
experience that
labor
and
man¬
well.
by
the
nature
of
the
performed in each instance and the tools which
Labor
works
with its
quite
work
are
used.
hands, management with its head
and capital
with its foresight or judgment. Of these three
statements the only one which might be open to ques-
Continued
on
page
37
talk
by Mr. Townsend before the 65th Annual Conven¬
tion of the Massachusetts Co-operative Bank League, Swampscott,
Massachusetts, Sept. 25, 1953.
*From
NOW
a
IN
and potential undertakings
of issues
now
-
desired
U. S. Government,
Municipal
to
postpone indefinitely.
Their
position
was further strengthened by
"base-deal" with Spain as well
by Japan's decision to rearm.
the
as
Of
the
three
pleading for
U.
S.
leading statesmen
Europe under
Melchior
Dr.
united
a
vanished
this
year
from
the
and the Italian Premier de
election is
moral
a
Germany has
of
all-round
that.
pro
No
victory
accepted
defense
doubt
political
Gasperi.
over
France's
scene:
the
American
that she did
of
support;
against Russian aggression.
side
of
the
no
so
point
in
view
about
expecting
a quid
continued
absolute
guarantee
and
medal
is
—
that
we
on
are
now
page
34
cor¬
the
of
question
Continued
with
re¬
sovereignty;
her
financial
other
The Chancellor's
Russia.
preparations,
either
restoration
quo:
American
The
registered
Palyi
leadership, the other two have
Schuman, the author of the European Coal-Steel Pool,
in our "Securities in Registration" Section, starting
SEC
on page
38.
WESTERN
NATIONAL BANK
SOIL & MINING
of INDIA. LIMITED
Bankers
to
the
Government
Head
HAnover 2-3700
Office:
SECURITIES
Bishopsgate,
London, E. C. 2
Branches
Chemical
Burma,
in
26,
India, Pakistan, Ceylon,
Kenya, Tanganyika,
Zanzibar, and Somali-
Aden,
Uganda,
land
BANK & TRUST
Protectorate.
Authorised
£4,562,500
Paid-up
COMPANY
THE NATIONAL CITY BANK
ixmnrco;
£2,281,250
Reserve
Capital
Capital
Fund
ESTABLISHED
£3,675,000
OF NEW YORK
The Bank conducts every
banking
9
Municipal
Bonds
in
Kenya Colony and Uganda
the
De¬
State and
Securities
telephone:
favor of
European
moral position vis-a-vis the U. S. A.
has been greatly weakened. And our
in
State and
in
sponsored
Community which France and
were trying to
scuttle, or at
REGISTRATION--Underwriters, dealers and investors
porate securities are afforded a complete picture
be
Britain
Johnston,
The difference is rationalized
simply
could
as
The Continent's leading in-,
came
out as clearly
nation
American
agement, if indeed it is not capital
W. W. Townsend
re¬
In¬
America.
a form of
capital, nor is
labor, management and agri¬
agriculture
but
Rome,
was
dustrial
capital of Henry George,
have learned from experience
culture of Eric
32
SECURITIES
not
a
from observation and
the in¬
page
the
and
it is a great victory—for the Eisenhower-Dulles
policy of global defense. It broke up
European
diplomatic
"front"
(within the Atlantic front) against
that land is
it
Paris
the
and
we
London,
deed,
free enterprise economy and to
labor
unexpected landslide in the Sept. 6 elec¬
stunned
ceived in Washington with unconcealed satisfaction.
frequent overlap, to be
sure, and in the case of the self-em¬
ployed, the identity is a fact, but to¬
day's economic trinity is not the land,
fluence, the shrewd maneuvering, and the power¬
ful navy of th#British which, so the story goes,
were
largely responsible for the relatively peace¬
ful era of many decades prior to the outbreak of
World War I. This, according to some observers, is
now our manifest destiny. We shall not undertake
to present the arguments, pro or con, of this rather
extraordinary concept, but we do feel it well
Continued
a
There is
wearing the
was
tions
identical.
century from
Empire. It
Adenauer's
alert.
clearly the real difference—which is
well-meaning clamor of the day and in
the presence of the crusade-like psychology so in¬
sistently prevalent in so many quarters.
in this
on
Sees currency con¬
vertibility possible only if U. S. "holds the bag."
distinction—between management and capital,
as
in the minds of altogether too
many individuals today the two are
a
bear this fact in mind at all times amid the unin¬
we
lomatic hands tied behind his back.
all, it is necessary to define the role which
management plays in
establish
split Atlantic Alliance, and we are stymied
Europe and Far East while Eisenhower has his dip¬
relationship between lending and saving, and
warns
formed if
fell earlier
tinue efforts to
in
warns of saturation
point in home ownership and instalment credit. Sees dis¬
would have been all but universally
regarded as definitely of the Quixotic type.
But whether we presently are adjudged saviors
of mankind or merely visionaries whose energies
had better have been employed in other ways, we
shall do better if we understand clearly the role
that we have assayed. It is safe, we believe, to
say that it is a task no one in history has ever
before undertaken, probably no one has ever
thought of undertaking. It is well worth while to
which
business: (1) constructive imagina¬
and (3) capital. Pictures present
business situation and outlook, and
ago
It is often said that
Palyi discusses outcome of recent German elections
Adenauer's victory indicates Germany has
foregone lofty ideologies and turned to sound economics.
Says Europe is virtually united, but Russia will con¬
After defining important role which management plays in
a free
enterprise economy, Mr. Townsend gives as for¬
set ourselves of
mantle
Dr.
City
and points out
the fact of the matter, and no one who has cut
years
By MELCHIOR PALYI
President, Townsend-Skinner and Company, Inc.,
discerning observers that mankind is still plagued
with social turmoil on all sides. Such is
clearly
bis eye
European Unity
By W. W. TOWNSEND*
We See It
Neither the snarls that have
Adenauer's Victory and
and
description of
exchange business.
Trusteeships and Executorships
also undertaken
Dept. Teletype: NY 1-708
THE
CHASE
Members of All Principal Exchanges
50 BROADWAY
Salt Lake City
Bond
1915
Bond Department
Los
Angeles
•
.
^
end 20 other
NEW YORK CITY
.
-
-
Western
Denver
Spokane
Cities
NATIONAL
Of THE OTY
BANK
OF NEW YORK
2
The Commercial and Financial Chronicle
(1422)
The
participate and give their
and
they to be regarded,
as an
P. W. Brooks & Co. Inc., N. Y.
Erie
When
is
the
weak
Comparison
general
and
business
senior
issues
many
request
fort
risk
while
of
maintaining
position
lative
American
120
ized.
Stock Exchange
Broadway, New York 5
BArclay 7-5660
Teletype NY 1-583
vantages
combining
call
on
stock
mon
with
claim to
ings
Stuart
the
conversion
points to guard against are
price remote from
conversion
a
market
pONNELL & CO.
American
120
Exchange
Stock
Exchange
BROADWAY, NEW YORK 5
Tel.
REctor
from
of
sues
common,
convertible
non
similar
a
quality.
is¬
Lastly,
2-7815
are
issue should
than
as
not
be
fixed
a
unless
purchase.
the
to
bought other
income
stock
common
be
an
With
attractive
these
basic
thoughts
in mind, let us review
Forge & Steel Corporation
and its 6% Cumulative Convert¬
American Furniture Company
Alabama-Tennessee Natural
ible
First
Par
Value).
This
Prefered
Stock
($10
Gas Company
cently
81-year old company
completed its most
Commonwealth Natural Gas
cessful
year
day ranks
Company
suc¬
of operation and
as one
to¬
of the largest in¬
Scott, Horner &
Mason, Inc.
producers
of
heavy
forgings and steel castings in the
country.
Its integrated facilities,
together with those leased from
the Navy, utilize an area of
ap¬
proximately 1,000,000 square feet
Lynchburg, Va.
and provide for the production in
Tele. LY 62
LD 33
its
open-hearth
special
steels
furnaces
which
are
of
the
used
in
the manufacture of the
company's
diversified line of products. These
STOCKS
products, particularly the forgings,
generally require heat treating,
rough
machining, finished
ma¬
chining and grinding to close tol¬
erances, all according to
customer specifications.
Alberene Stone
American Coal
The
Creosoting
and
Brooklyn Development
Carters Ink Pfd.
Di
°
Giorgio Fruit
Ex Lax "A"-"B" Pfd.
Fellows Medical Mfg.
Gera Mills
Roch. & Pitts. Coal Com.-Pfd.
BONDS
Fox Theatre Claim Ctfs.
124
—
5th Ave. Units
Intl. Accountants Soc. 5 /68
1st
Mtg. Ctfs. Manhattan,
Brooklyn, Queens
company's
resent
a
wide
Our 26th
Broadway, N. Y.
light
Year
WOrth-4-6930
of industries
manufacturers
industry
9.0
current
require¬
Average
times.
Aug.
on
31,
alone
of
(rotor
and
As
cov¬
(1942the
to
1953
(after
working
deducting
Long-Term Debt) equalled $19.67
per First
Preferred share, while
Net Tangible Assets totaled $43.27
per share.
Through conversions
and
the
operation of
fixed
a
contingent Sinking Fund
has
sue
from
is¬
steadily reduced
orginial issue of 200,000
an
in
February, 1952, to 166,-
shares
thereby
and
this
been
Aug.
on
greatly
30,
1953,
strengthening its
position.
With
First Preferred
avail¬
for
hydro-electric
installations); producers of heavy
machinery
and
machine
tools
(large forgings for power presses
and
compressors,
castings (for
base and
power
crown
and
presses
anvil
blocks, cylinders and frames
for steam
hammers); oil produc¬
ers
(drill
collars); shipbuilders
(line
and
propeller
shafts
for
naval
steel
and
works
merchant
shipping);
(forging ingots); and
chemical,
of
equipment
rubber, sugar,
for
ce¬
ment, rock crushing and other in¬
dustries.
in
The
from
a
on)
excellent
dividend
large asset
coverage
values
and
lending strong
support, it is reasonable to expect
that the Preferred should hold
up
well marketwise regardless of the
market action of the Common.
But
the
let
try
us
Preferred's
lege.
Each
convertible
to
now
evaluate
conversion
Preferred
at
privi¬
share
time
any
is
for
the
next
eight years (until Feb. 28,
1962) into 1.35 shares of Common,
thereby providing in effect a call
100,-
from the
not
Exchange
Exchange
St., New York 4, N. Y.
NY 1-1557
Orleans, La.- Birmingham, Ala.
Mobile, Ala.
Direct
wires
Interest
addi¬
an
to
branch
our
from
exempt
Federal
stability is to be
and
New
Income
offices
present
York
State
Taxes.
facilities
at
We
rental
a
and
own
Offer:
varies
directly in accord¬
ance with use.
Consequently, un¬
like most companies in heavy in¬
dustry whose plant overhead can
be
Erie
Stock
Stock
Navy roughly half of its
productive
which
York
HAnover 2-0760
New
found in the fact that Erie leases
in
decreased
to
can
slack
certain
a
$100,000
City and County
of Honolulu,
times,
extent
con¬
centrate its operations
periods
its
on
equipment,
nominal
ities in
during such
machinery and
maintaining at
own
while
Territory of Hawaii
the Navy facil¬
expense
5% Bonds
until business im¬
reserve
.
proves.
In
evaluating the future, it must
that during the
past two years Erie enjoyed a
substantial conversion ingot busi¬
ness, which is not a part of its
be
Due
remembered
normal
business
that
more
a
mand
and
continued.
to
such
1958
U
■■
•
2.10%
★
is
Without
accuracy
1,
.
which, now
supply-de¬
normal
relationship
July
To Yield
developing
in the steel industry, has been dis¬
conversion
is
Gordon Graves & Co.
pretense
any
-(which
let us
of
course
30 Broad Street, New York 4
that
assume
business
$6.67, based on
price of the Preferred.
The average bid price of the Com¬
the
above
in
mon
with
pared
has
6%
been
in
7V2
1952)
apparent that the
The
is
Thus it
Preferred
selling unusually close to
sion.
(com¬
and
available at about 6.
now
is
1953
is
conver¬
next
question
is
whether the Common is itself at¬
tractive
per
at
these
levels.
Common share
$1.61
in fiscal
60c
1953
dividend
Earnings
$1.63 and
were
and
1952,
re¬
current annual
provides
an
themselves would
a
might drop back
ings
cess
higher
to
seem
justify
market
price for the
Common, they don't tell the whole
story. Had there been no Excess
Profits
mon
Tax,
earnings
per
Com¬
share would have been $2.75
$2.71 for the past two years,
more
accurately
the
Common's true earning power in
these .years.
As to the
be
course
Erie
is
fields
a
of
con¬
Telephone
pre-tax
much
as
Even
share
profits
tax.
Thus,
ahead
and
would
ex¬
earnings
with
in
the
four
times
such
can
a
Summing
Common
t i
v e
a
rather
high-yielding
(based
the
on
Erie
speculation
likelihood
that
a
more
normal
level),
the
high
quality 6% Convertible First Pre¬
ferred, traded in the over-the-
market,
offers
not only
opportunity
for appreciation but also
provides
strong investment values.
virtually
the
timid
in¬
weary
bring order
pant
the
and
place
$500,000
a
giant
four-way
in
of
the
ram¬
inflation,
grocery
chains consti-
engine crankshafts for lo¬
comotives. Indicative of the com¬
over
equilib¬
rium
diesel
cost of
YAMAICHI
Home
Office Tokyo
Brokers
lit
&
1897
—
48
Investment
Branches
Bankers
Broadway,N.Y.6 COrtlandt7-5680
of
out of chaos
facturer of pressed and hammered
a
publications
Japanese securities
Federal
Government
to
,
at
write
Established
and
the
competitors.
signed and constructed
on
or
current
shaken by the
forgings and
recently de¬
our
SECURITIES CO., LTD.
vestor
whose
faith
in
the
dy¬
namism of the American
economy
has
been
of
leader in its indus¬
Call
for
Stores
the
Opportunities
in Japan
Leading Stock and
Commodity Exchanges
prediction.
recognized leader in its
a
Investment
and Olher
For
New York 6, N. Y.
Telephone WHitehall 3-0066
Partner, Carl M. Loeb, Rhoades & Co.
Members, New York Stock Exchange
accurate
pany's resourcefulness and engi¬
neering skills which have helped
Broadway
ARMAND G. ERPF
American
for
S. D. FULLER & CO.
39
same
castings in
specializes, it has only a
In fact, Erie is
believed to be the
largest manu¬
which it
few
Underwriters
Lunn Laminates, Inc.
attrac-
good portion of the higher prof¬
its of recent years can
be re¬
tained as business
adjusts to a
counter
newt
esti¬
although
up,
seems
"Fiberglas"
Chevrolet's
for
sportscar, "Corvette"
earnings might well
highly valuable.
attempts
future, there
no
body
se¬
mated future
prove
LAMINATES, INC.
Manufacturer of the
60c
cure, a call on Common stock at
but
LUNN
the
Common dividend apparently
price
3-2840
earn¬
no
should be well maintained
years
WHitehall
25%
as
so
roughly $1.50 with
operation and, as to the
heavier
to
Common
per
still be
excep¬
tionally generous yield of roughly
10%.
Although these figures in
$1,500,000
from recent levels.
the Common at
on
to make Erie
dred pounds to in excess of
25 Broad
earnings, • and that pre-tax earn¬
ings from Erie's regular business
try is the fact that it
feet
New
Members American
its well-established
its industry,
tributed
(with a 15c divi¬
to yield 6.7%, and with
company's forgings
50
Members
revolution¬
dend
few feet to
length and from several hun¬
Bought—Sold—Quoted
method will be used in mak¬
able at about 9
indicating
castings
G.
Loeb,
City.
exerting
simultaneously.' This
ary
impossible)
the
generators, and water wheels and
valve
M.
3,000ton pressure from four directions
•
and
range
5
sition,
other large shafts for turbines and
the
120
rep¬
gine
installations);
builders
of
electrical equipment for the power
and
times
spectively, and the
diesel
engines
(crankshafts
for
diesel locomotives and for
marine,
naval
and stationary
diesel en¬
manufacturers
George A. Rogers & Co., Inc.
exacting
customers
range
include:
a
dividend
15.7
$100,142!
was
capital
re¬
dependent
Dan River Mills
were
First Preferred's balance sheet po¬
invest¬
Erie
Atlantic
1953)
904
ment,
Trading Markets
of
shares
if the above pit¬
not present, a convertible
even
itself appears
INACTIVE
ments
jand perhaps most important fun¬
falls
163%
up
However, al¬
earnings
Preferred
damentally,
Members
Stock
for
ascending scale of con¬
version prices, and a current
yield
substantially lower than that ob¬
tainable
York
The ob¬
rapidly
Since 1917
New
in
but
seriously lessen the attrac¬
present
and
erage for the past 12 years
tiveness of the security.
vious
Rights & Scrip
Beringcr
recognized,
instances
terms
M.
as¬
well
are
many
Specialists in
First
earn¬
and
sets
pre-tax
nevertheless
prior
a
of
tional element of
from
husky $5,718,036, a 72.4% income
tax provision held Net Income to
$1,578,036.
Such earnings were
a
com-
Armand
—
Carl
Steiner, Rouse & Co.
capable
In addition to
year
Louisiana Securities
2)
position in
April
all-time
previous
though
f
o
,.(Page
press
fiscal year ended
from five years ago.
The ad¬
Stores
Partner,
Fairbanks-Morse,
General ing highest
grade forgings for
Electric, General Motors, Heppen- crankshafts, connecting rods and
stall, Newport News Shipbuilding, similar
highly
stressed
engine
Pennsylvania Forge, Reed Roller parts having fatigue qualities un¬
Bit, Westinghouse
Electric
and obtainable by any other method.
the
real¬
&
V
*
City.
re¬
include
30, 1953, Net Sales hit an
high of $31,430,322, up 12%
profits
be
can
Brooks
York
tries,
For the
specu¬
Corporation
and
W.
Rhoades & Co., New York
customers
Worthington Pump.
from
Erpf,
its
Allis-Chalmers, American Loco¬
motive, Baldwin-Lima-Hamilton,
Bath Iron Works, Dresser Indus¬
a
which
Member
by
mini¬
loss
1920
to
ef¬
an
to
turned
are
mize
New York Hanseatic
prospects
convertible
American
of
the leaders in their
industries
Alabama &
(Page 2)
300,000
over
Beringer, P.
Inc.,
New
Co.,
nor
certain
Its .principal
among
spective
invest¬
in
ors
on
are
market tone
uncertain,
appear
Associate
M.
sell the securities discussed.)
to
pounds, while
castings .weigh
City
Forge & Steel Corporation
6% Convertible First Preferred
be,
to
000
pounds.
of New York
Consecutive Quarterly
offer
STUART M. BERINGER
intended
not
are
and
Selections
Erie Forge & Steel Corp.
6% Con¬
vertible First Preferred—Stuart
particular security.
a
Week's
Participants
Their
«
Trust Companies
Established.
fot favoring
reasons
(The articles contained in this forum
are
Available
Forum
A continuous forum in which, each week, a different group of
experts
in the investment and advisory field from all sections of the
country
Leading Banks
86th
This
Security I Like Best
Thursday, October 15, 1953
...
tute
spot
the
Armand G.
Erpf
a
us.
during
con¬
Despite the defensive
on
'
14-Year Performance of
35 Industrial Stocks
page
FOLDER
ON
REQUEST
of
obscurity
Continued
OVER-THE-COUNTER
INDUSTRIAL STOCK INDEX
nice
period
which
fronts
N. Q. B.
10
National Quotation Bureau
Incorporated
46 Front Street
New York 4,
N. Y.
Volume 178
Number 5264
The Commercial and Financial Chronicle
...
(1423)
"We Can Maintain
INDEX
Prosperity
Consulting Economist and Attorney-at-Law
Former Chairman, Council of Economic Advisers
—W.
"We
Maintaining that both short-term and long-term economic out¬
look is bright, "and can be made
very bright by intelligent
"noisy minority" to talk the country into
a
cession.
Holds "we have it within
economic future
casts of
r
I
what
to
serious business decline
a
be."
it to
want
we
based
will
begin by presenting
think that
in
Trust
that
my
form.
I
Criticizes fore-
from
until
now
A
the
while
—
will
some
lems
some
in
made
economic
run
Keyseiling
outlook is
cellent
most
portunities
of
and
that,
if
op¬
barring
in
the
United
States
an
years
the
on
Portsmouth Steel
16
17
King
R.
of
forecast
a
20
BURNHAM AND COMPANY
Diebold
23
at
all,
if
24
Rukeyser
13
and
competent
every
economic
be
and providing abun¬
incentives
of
as
be
for
the
achieved
in
can
the
noisy minority, some
through ignorance and supersti¬
tion, others for selfish economic
or
political reasons, seem to be
a
bending their efforts toward talk¬
ing the country into a substantial
depression.
or
If their views should become
the
On
what
to
advance
which
still
some
attitude
business
or
even
that
desirable
pronounced
a
downturn
is
for
inevitable,
to
It
remain,
world
when
account
for
we
the victims of inexorable eco¬
a
laws, which will throw
loss from time
our
enemies,
the
to
time
us
fatalistic
the
Soviets,
not
are
this threat by looking squarely at
the
their
greatest
nomic
front.
threat
We
on
can
eco¬
overcome
facts, and by responding
sen¬
sibly to them. Since this meeting
is being sponsored
by
a
dynamic
economic
strength as
an
ever-increasing challenge to the
free world. I reject the false no¬
tion that only the slave states can
and
forward-looking factor in the
proceed
bat
industry, I might
are
♦An
say
to you
address
by Mr. Keyserling at the
Sales Conference of Frank H. Lee
Co.,
Ihat
manufacturers,
New
York
City,
September 29, 1953.
the theory
on
that
the masters of their1
tinies. I believe that
freedom
and
are
*
8
Einzig—"British Commonwealth and
Mutual
we
own
r
des¬
who love
Public
page
Security
Securities
Offerings
Albany
•
Manchester, N. Hs
Boston
•
'
•
Nashville
Chicago
•
TELETYPE N. Y. 1-5
Glens Falls
•
Schenectady
•
Worcester
HA 2-0270
40
Teletype NY
Exchange PL, N. Y. S
1-1825
&
NY
1-1826
Corner.
in
.
.
Registration
and
.
38
You—By Wallace Streete
Empire State Oil
2
The State of Trade and Industry
and
5
You
Johnston Oil & Gas Co.
44
to
28
Eagle Oil & Refining Co.
16
The Security I Like Best
Washington
Commonwealth Oil Co.
27
'
Securities Now
Keta Gas & Oil
Article not available this week.
When Distributed
1
Drapers' Gardens, London,
land, c/o Edwards & Smith.
CHRONICLE
Copyright 1953 by William
Company
Reg. U. S. Patent Office
Reentered
B.
DANA
COMPANY, Publishers
ary
25,
1942,
SEIBERT, President
Thursday, October 15, 1953
Every Thursday (general news and ad¬
vertising Issue) and every Monday (com¬
plete statistical Issue
market quotation
records, corporation news, bank clearings,
—
state
and
Other
city news,
Offices:
Chicago 3, 111.
135
etc.).
South
C.,
Eng¬
B. Dana
Sterling Oil of
Oklahoma, Inc.
second-class matter Febru¬
at the post office at New
of March
8,1879.
Subscriptions in United States, U. S.
Possessions, Territories and Members of
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of
Canada,
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year.
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and Quotation Record —
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Note—On
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of
the fluctuations in*
the
La
E.
Subscription Rates
HERBERT D. SEIBERT, Editor & Publisher
WILLIAM DANA
as
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Place, New York 7, N. Y.
REctor 2-9570 to 9576
ST., NEW YORK 4, N. Y.
•
Singer, Bean
MACKIE, Inc.
&
21
37
Salesman's
The Market
25 Park
TELEPHONE HAnover 2-4300
♦
=^5
Securities
)
i
BROAD
Corp.
40
J
PREFERRED STOCKS
Members New York Stock
Exchange
19
Securities
FINANCIAL
Spencer Trask & Co.
8
4
:
Governments
on
Utility
Railroad
*
on
____
Observations—A. Wilfred May
WILLIAM
25
22
NSTA Notes
they
determined
Continued
Ultra Sonic
30
News About Banks and Bankers
Prospective
Republic Natural Gas
35
Funds
Our Reporter
Lunn Laminates
6
Indications of Current Business Activity
The COMMERCIAL and
have specialized in
Sterling Convertibility" 25
From Washington Ahead of the
News—Carlisle Bargeron
Published Twice Weekly
For many years we
Great American Industries
de¬
best efforts. Our mortal
in this sense.
They are
applying positive efforts to build¬
ing up their military strength and
our
44
r__
Securities
af¬
cannot
-we
of
do less. We cannot afford
cling to the superstition that
spite
Empire State Oil
19
Dealer-Broker Investment Recommendations
have the.
we
take
we
conditions,
ford to
to
Stocks.
Bookshelf
vigor.
And
Bates Mfg. Co.
Cover
Keta Gas and Oil
imperfections
many
Teletype
NY 1-3370
25
8
is
profound
a
Street, New York 5
Telephone
DIgby 4-1680
Coming Events in Investment Field
generation
a
been
be.
high level prosperity
these tools with thought¬
we use
while, is
a
it
and advance
ful
Man's
Canadian
capac¬
private economic tools and the
public economic tools to maintain
if
Business
believe
our
15 Broad
economic future
want
the
nomic
unwhole¬
bow
our
understanding of
problems, and that de¬
spite
befall
this
I
(Editorial)
Bank and Insurance
in
economic
are
Indeed,
our
we
there has
ago,
then
As We See It
impersonal
contrary,
belief that, since
my
prevalent psychology of the coun¬
try, such a disaster could indeed
us.
the
and
some
have it within
we
ity to shape
cer¬
field, which serves the
directly, for in our kind
of economy in the long run the
consumer is king.
I particularly value the
oppor¬
tunity to express these views at a
economic recession
that
retail
apparel
control,
our
fate.
can
consumer
time when
yond
Manager
Trading Dept.
Regular Features
than guess what is
to the dictates of
American
whole, it
a
to
our
society. And if this
achieved
economy
tainly
rewards
sector
JOHN F. REILLY,
a
going to happen due to forces be¬
people,
no more
Exchange
☆
Edgar Scott Discusses Political Influences
Affecting Securities
Industry
the
dant
do
Members New York Stock
☆
Return to Normalcy:
forecast is intended to convey the
idea that we in the Upited States
can
Newport Steel
18
Likely—Arthur C. Babson
Unlisted
my' basically
opti¬
mistic outlook is not really in the
nature
■,.
Lone Star Steel
a
paralleled
period
of
economic
stability and growth, paced by a
rising standard of living for all
<
14
J.
Private Enterprise Means More Than
Bread Alone
—Clifford F. Hood
Seriously,
un¬
Jessop Steel
Harrisburg Steel
—Charles
pray
a
13
Newsprint Investment Opportunities
Monetary Policy Controls Mortgage Situation—
the
total war, the years ahead within
the decade of the fifties can wit¬
We Specialize in:
11
Money-Making Opportunities—Roger W. Babson
cropper despite
unlucky number, I hope and
that I may now be right once
again.
we
clear
our
come
4-6551
Interesting Growth Situations—Curtis J. Straus
during
fundamentally opti¬
despite the encircling
not
STREET, NEW YORK
little be¬
were
did
WALL
10
,
at the start of 1953, and since
was
Obsolete Securities
Dept.
99
9
Banking and the Securities Market—A.
Halsey Cook
I
ex¬
obsoletes!
14
Beckon—Harold
gloom of the pessimists who have
always seemed to think that a de¬
pression
was
just
around
the
corner. My 13th optimistic forecast
think
worn
line.
dollars
Telephone: WHitehall
A Period of Business Decline
mistic,
that the long-
.._iL
S.
old
our
new
Investment Officer's Role in
Promoting Fiscal Sanity
—O. Kelley Anderson
optimistic many
half
a
California
casts
bright by
intelligent ac¬
I
and
6
Bomb-Proof Investments and the Securities Outlook
3
—Earl L. Smith
Canadian and U.
bright
5
Council of Economic Advisers,
my
13
successive
semi-annual fore¬
is
very
tion.
I have been
six
my
nably
bright, and
be
that this meant
times before. It is true that
r e a s o
can
said
cause
read¬
areas,
Doing—Ralph H. Demmler
,
Basically Optimistic Outlook
he
for
in
not
.
4
American Prejudices and the Price of Gold
—W. J. Busschau
more
.
Just
3
The Public and the Oil Industry—R. H.
Collacott
heads.
our
TEA AND SYMPATHY?
•
'
r
my
by
justment
the
and
more
do not lose
AND COMPANY
Lose Our Heads"
i
Business Conditions and
—Robert R. Dockson
v
few days ago, I told one of
friends that I was basically
optimistic about the future, and
it
prob¬
of
Cobleigh-
A
be
marked
make
sell
Oil—Ira U.
We Are
National
on
can
we
in
Job
Not
Cover
Unfinished Business of the Automobile
Age—James Cope
I
middle of 1954
Leon
you
hats if
___i
Prosperity if We Do
Keyserling.
H.
re¬
our
short-run economic
our
future—say
capsule
as
*_
Can Maintain
The
economic
an
Townsend
efforts
capacity to shape
our
W.
—Leon
contradictory
and unrealistic
beliefs, and lists as factors brightening long
range outlook:
(1) our production potential; (2) our huge
consumer
capacity; (3) our high level of capital formation;
and (4) the Federal Government's
recovery facilities.
conclusions
ness
adviser decries
economic
Page
Adenauer's Victory and European
Unity—Melchior Palyi_-Cover
Business Outlook and the
Coming Test of Management
By LEON H. KEYSERLING*
of
llCHTfflSTfin
"
Articles and News
II We Do Not Lose Oni Heads"
action," former Presidential
3
rate of exchange, remittances for for-,
eign subscriptions and advertisements must
be made in New York funds.
Direct
PLEDGER
Wire
to
& COMPANY
LOS ANGELES
INC*
-
4
The Commercial and Financial Chronicle
(1424)
quire
Trust in Oil
but
a
than
more
a
An
up-dated" look at undoubtedly
and
each day
tudes
of the
one
low
glamorous
more
it
assorted alti¬
the New York Stock Exchange
on
as
nado's,"
vestors
Land
Pacific
Texas
Trust
around $9 million a year, mostly
or
it
and
totally, about 30,000 acres of Trust
land. That's not 2% of the whole
tract. What about the other 98%?
faded
Far
from
for
today,
TXL
may
it,
be
entering into
a new dynamphase,
which the inview-
formed
of
er
the
Huh?
on,
much would TXL be
How
if oil were recovered on,
say, 10% of its land?
Trust
incomes
were
slowed
bit this year due to the
shutdown of the Sprayberry field,
to prevent gas wastage. This shutdown
to
aggressive
a
there.
instead
of
Trust
tional royalty
land, it could
of
acquire
to
title
ther,
since
proven
oil
holdings
TXL
one
lie
drilling
Pecos,
and
831
and
important
an
10
other
some
land
this
too,
course,
lot of
use
railroad) had
land
of real estate —
3,450,000 acres in all.
It didn't
seem
very valuable
land at the
quite
swath
a
time; just cattle, sage brush, cactus and
cowboys on it.
So the
trustees
off,
selling
kept
bit
1.4
by
cash,
for
acres
each
selling at 104;
mucl/the
there
score,
about
are
share
and
strictly
as
and
still had left almost 2,000,000 acres
i/i28th interest
—a
hunk of land somewhat larger
have
land price tax is.
bought TXL at 7V4
And,
In
4n'now
the
1/48th
and
in
future
of
four
^oJSv
bL
<?harp<?
stoek
nf
in March of 1952.
gone
TXL, the trust, could go
kack d°hig business at.the same
s*and, selling land and ap-
mighty good thing, for oil was
in
West
Texas
in
the
talking
twenties and TXL has been
high
on
living
certificates.
of
the
With
land
discontinued,
virtually
have
trustees
since
the
devoted
off
the
their
There
Tntprp^t"
ythe,
Guess
bother
to
didn't
sheets
of
1935
paid off, and^ expanded
income from $350,000
in
to $8,900,000 for
1952, the
best
year
gross
in
history
TXL
1
And
trust shares
ciuding
now
any
old'
these
worth
still
are
ten grand apiece.
over
At
neglectful
suffer
paper
Total
of
certifi-
old
cates) would be 1,393,589.
The
..
also, through the years, been up-
So
graded to the great benefit of the
Trust. The standard royalty used
to be a 1 /8th interest; but TXL
now
has
cash
quently
an
over
Trust's
books
number
a
extensive
You'd
Exchange
Stock
Stock
Exchange
Cotton
American
Exchange
Exchange,
Chicago
New
Board
And
other
■
'■
proven
DETROIT
GENEVA.
N. Y.
PITTSBURGH
SWITZERLAND
•
;
'
other
falling: Central Foundry by 27%
two
have
been
and
In the
.
,
foods, Ward Baking, Continental Baking and Sweets Co.
.
while
General
Baking,
Hershey
National
and
by
Divergence Between Industries
on
And
years
,
,
the
.,
,
And
try
that
such
irregularity affecting individual in¬
non-uniformity in the timing of the popularity of indus¬
has
groups
rayons, sugars,
highs
likewise
metals
taken
are
now
(the postwar peak),
composite average.
The
their
following
1946
,
Ethical
place.
drugs,
chemicals,
selling 25 to 60% below their 1951
against
decline of but 4^%
a
in the
Other groups, including oils and rubbers, did
not reach their peaks until late
way
w
find
we
dustries has likewise occurred in past years.
fabulous
a
advanced; in the face of sizable falls in Bristol Myers,
advanced;
pe-
just
guess,
never
drug group, Vick, Lambert, and American Home Prod-
groups
highs, against
are
a
1952
or
lying
early this
fallow
rise
concurrent
year.
substantially
of
25%
in
below
the
Dow
dairy, banks, baking and biscuit and communications.
to
on
the
for
tax
pur-
open market.
—not
(1) It stabilized and imcon-
selling—TXL.
sinking
h
spells,
of
evidenCed
s
This
maimng shareholders.
it was a technique especially
ceptable to persons of large
.
had
It's
Thus, divergence still rules supreme!
it
evinced also an a™azing
Lest
a
think
you
new
special sort of equity
very
event
a
ac-
one
our
*;'le
°*
most
investment
stantial
holder
t
.,
is
its
and
d
10
respected
trusts
itw
committ
months; and the
number
of
men,
somewhat
nowned
for
their
security
missed, especially in the markets
ments
months:
where
and
the
shares
they did in May
to be found
....
,
,
on
the sublet, let's
talk about the trusses.
of
Frascr.
them.
Mr.
John
operate
K.
the
Mr.
There ar*'
George
G*»r*e L.
OlvnhaM.
trusteeship
C.
and
Jr.
Thev
and
re-
to
"selectivity"
Specializing in Securities of
aid
no
or
in
any
market
in fore-
groups.
■
on
Canadian National
re-
judg-
the Ust
Orders
Executed
in
Canadian
Railway
Stocks
and
Bonds
,,
certificate holders.
For market virtuosity, for
While we're
three
*
obeisance
casting the future movement of particular issues
names of a
share). Since buying bv trusstopped some time ago, their
sell
Mere
h,
tees
of recent
difficult.
of
th
support has been rather noticeably
are
mean¬
sub-
a
*
,
also
advice—with hindsight demonstrations—furnishes
known
and owned by few, consider that
'
are
ingless; and that successful selection of particular issues is in
high!
that TXLJs
What lesson therefrom?
Merely that attempts at timing the-market-as-a-whole
amazing
an
Average:—Tobaccos, utilities, foods, food chains,
its
but
course,
also
capacity to make
means,
through
1952, 168.600 shares were retired
(at an average price of below $55
Mr.
:
Dairy have fallen.
mind—through the
°r *n~
Essentially
now
.
Merritt-Chapman has risen 13%; while
have
a
Dodger fan drearily
deploying to the nearest subway
from the pitiless portals of Yankee
Stadium! However, keep this in
1951.
i
Exchange Bldg.
NEW YORK 4,
CHICAGO
Exchange
Exchanges
"
N. Y. Cotton
Trade
of
Cotton
Orleans
Inc.
National
while the others have been falling.
up,
bounce of
buy in, and retire, sub
a
York
New
Commodity
up,
Merck, Abbott Laboratories, and others.
creation 0f an jn_
production comoany
potential, is on
the horizon. Why, the stock today
displays all the enthusiasm and
with
In this manner, from 1946
Members
gone
Chemicals, du Pont, Interchemical, and Spencer have
ducts have
.
York
has
^as been by buying and holding
allowance
proved the market and (2) it
New
Continental
the custom to apply monies
was
shares
,
the
In the
ap-
the tape for the
past couple of months, that anything so dramatic as a five for
-
H. Hentz & Co.
stocks,
can
Jones Industrial
holders:
1856
of
area
watching TXL
policy had two benefits for share-
Established
the
to contentment and capital gains
Until
program.
depletion
is collecting
with
company,
troleum pasturage,
(roughly equivalent to the 21Vz%
at
the oil
to be a quite impressive producer.;- Few.-.American drilling
companies operate over such an
share
years—a
transportation, National City Lines and Omni¬
1952
retirement
it
of
poses)
TXL
because
So
you don't buy TXL
There was, however,
special gimmick in the picture
for
million.
$12
Just
a
Contingent future
this sort now are
the
They
to $2.95 out of $3.27 earned
for 1952.
extra interest in future
in
recorded
—
for its yield.
were
oil production.
oil payments of
up
the
deoendent oil
prices
been
fancy—30c out of
share earned in 1946; mov-
a
ing
bonuses, in addition,
signed, and ire-
when leases
stock
haven't
98c
calling for l/6th, and as high as
l/4th.
The Trust has often received
for
what about cash dividends?
number of agreements
a
much
sizable losses.
Thompson-Starrett 38%.
process
one
^
Share Redemption Policy
character of individual leases has
<
In heavy construction
propriate management might turn
new
outstanding fin-
division
the
Pro-
didn't
(32%),
.
plying
2,421
around
in.
or
may
of financial
°smosls to its outstanding shares.
of
kipkin?
careless
holder
has
for
still
are
'em
turn
the
i^afg
oil
This
sub-
100
a
holders Just
energies to leasing trust lands to
operators, and collecting royalties on the petroleum produced,
of
"Certificates
old
nriptarv
selling
of
policy
really
are
result
split in 1926 of the original trust
the derrick ever since.
Royalty Payments
•
about
shares—the
outlined
Gotham Hosiery
(24%), and Goodall Sanford (32%).
down, and American sideways.
they still have this hunk, and it's
®kove
(28%), Phoenix Hosiery (10%); while
Corporation have risen; while New York City Omnibus and
In
a®
net decline.
category, advances have been scored by Real
following have registered declines:
Among
foreachTru
wheiJ such a recapitali-
or
May
Chicago Yellow Cab have been falling.
oil
zaJ10n
struck
the apparel
In bus and taxi
*
just 10
Wiltred
A.
Garden
11, 6, and 2% respectively; while Bell & Howell,
oil
npw
Square
conditioning, Carrier Corporation has advanced, while
have suffered
numore
txt
Madison
and
aviation, Bendix, Fairchild, Republic, Northrop and Doug¬
las have risen; while Beech, Grumman, and Thompson Products
bus
/d*'
»
the
as
In
,
short years ago; or paid 195 V2 for it
And what we're
air
Adams Millis
producing
than the State of Delaware. Well,
a
Card
Silk (104%), Phillips Jones
outfit
°
well
Thus, in the amusements
supplies group, Lionel, U. S.
amusement
In
in
owning
.
as
whole.
a
York Corp. has registered a
takes.
interested to know that you could
till
as
spectively.
Trust
S50Q 00Q
them
Brunswick Balke, and Decca have declined by 25, 14 and 5% re¬
the
of
of
Crazy-Quilt
within individual industries
market
mineral
present
land
a
...
how
speaking of share price, you'll be
the
million
dropped—283
divergence has remarkably occurred
Playing
$6
some
have
to 10%, and 548 issues by from
up
to 50%.
even
sense,
Maintenance
(3)
TXL
of
so you can see
pasturage
along about 1924, when they
from
bit,
issues
rights of TXL.
landS)
that
On
prairie
this
not a bad thing to latch
if you don't pay too dearly
of
company
.
a
1953
So here's what's being consid-
than just for
,
of H.
as
The
Recapitalization Plan Suggested
can
is
onto
tor it.
firm
other
recent
strike by Honolulu Oil in Nolan
County (where TXL has 12.000
a
hot-off-the-griddle
a
Poor's
&
by amounts
exploring on
land, east and west of the
TXL
continu¬
"the" market is vividly
study
a
risen—124 of them by amounts ranging
to 10%, and 64 issues by 10 to 104%; while
up
dozen of the best oil companies
now
months of this year in
have
in the U. S., the
risk of drilling is minimized. With
a
nine
Hentz & Co. While "the
whole, as measured by Stand¬
composite stock average (480
issues) has declined 10%; 186 individual issues
ard
of the most desirable
areas
in
have advanced
another Dallas or Waco. This remote possibility would certainly
not adversely affect land valuations or share prices. In an inflationary
economy
just
to
Prairie.TXL thus started out with
<
change
market"
net proceeds of oil produced. Fur-
astride
first
by Harold Clayton of the New York Stock Ex¬
entire
the
secure
the
of
record
Demonstrated
getting fracchecks from
its
merely
Rentals
Pasture
eq-
grants for pushing its
over the
West Texas
as
out
tracks
;
The
ing the invalidation of the concept of
oil drills. It's good for grazing, ered:
—the year
and $152,000 was collected for
(1) The creation of a new Delayou've forgotten!
That was the pasture rental last year. And— ware Cornoration—an oil cornyear in which Texas and Pacific
who knows—some day on Trust pany that is.
Railway
formed
Texas
Pacific holdings there might spring up
(2) The transfer to this new
received
•
divergence in the stock market's movements, cited by this
column in the past, is becoming ever more pronounced.
back a bit, say to 1888
of the Blizzard in case
certain lands it (the
x
The
property, and dynamic expansion
of its earning power. For these
makes
u
have
Land
.
JMarket Divergence Through 1953
of
development
.
By A. WILFRED MAY
protection
down is only temporary, however, acres), the idea of this fabulous
and in any event the oil is stillv Trust drilling for its own account
on.
Let's go
'
a
worth
uity market should certainly tune
in
month)
to
even
with the years,
ic
barrels
million
suggest that
its attractions
have
acres
be
would
silly
the Trust's 1,971,231
on
there were (12/31/52) only 992
producing wells (bringing in IV2
quarter of a
century,
Ira U. Cobleigh
for
than
more
xor
devoted
more
in oil royalties, you might think reasons, certain important owners
its gross potential had been pretty of TXL have urged that if TXL
well maximized. Well it hasn't— could become a corporation, then
it is known to its "aficiohas fascinated traders, inand patient
millionaires
a
is
than
Pacific Land Trust.
TXL,
Observations..
in
of principal sum, and prudent ad¬
ministration
of
the
trust estate
Texas
—
not
a trusteeship, however
operating cost, does have
certain limitations.
Traditionally
Wall Street"
volatile of those shares recording their
more
of
But
taxes.
Author of "Winning in
staff
dozen to collect in¬
keep the books and make
calculate
and
disburse
comes,
reports,
By IRA U. COBLEIGH
slight
I-
Thursday, October 15, 1553
...
usual
vi
s
t
a s
of
un-
profitability
Barns Bros. & Denton, lie.
stretching far into the future, and
4
~
for the land
s sake- y°u may want
to delve further into TXL — a
symbol for land and
a
trust in oil.
Tel.:
DIgby 4-3870
Wires
to:
37 Wall Street, New York 5
Toronto
•
Montreal
•
Ottawa
TWX: NY 1-1467
•
Winnipeg
Volume 178
Number 5264
The Commercial and Financial Chronicle
...
5
(1425)
The
Electric Output
State of Trade
Price
In
Index
Auto Production
and
Industry
Business
Act of
for the
week.
decline
was
noted
moderate decline in the fourth quarter, the steel in¬
dustry is a cinch to break its best previous production record by a
this year, states "The Iron Age," national metalworking weekly, this week. Barring unexpected trouble, total produc¬
tion this year should come very close to 112,000,000 net tons of
ingots and steel for castings, it asserts.
That would be about 7,000,000 tons higher than the
industry's
best previous record of 105,200,000 tons
poured in 1951.
It would
be. nearly 19,000.000 tons higher than last year's output which was
held to 93.200,000 tons by a 54-day strike.
The fourih quarter decline in steel business has been
greatly
over-rated by some of the so-called experts.
While some of them
crying "wolf" at the dire things they saw in their crystal
balls, the steel industry was taking an inventory correction pretty
much in stride, this trade authority declares.
were
Outlook now is that fourth quarter business will be
only a
shade below third quarter. This optimistic forecast is based on the
fact that cancellations of orders have
already hit a peak and are
declining, it further states.
Inventory correction
Cutbacks of
•j;
;
will
consumers
to be
appears
continue
some
to
inventories
may
have
been
sharper than
few cases where
justified. This is indicated, it points out, by a
shipment orders have been received after old orders
was
new
canceled
were
ordered held up.
or
Prospects for steel business in the early part of next year are.
bright.
But if business is good it will be at a price.
The United
Steelworkers of America is carefully
mapping out a program of
economic gains to present to steel
companies before most of their
contracts expire in their entirety June
30, "The Iron Age" reports.
<
It
,
be
would
contract
could
almost
be
a
miracle, it states, if
negotiated without at least
completely
a
a
threat
of
new
strike.
Good steel business would
strengthen the union's h^nd.
And the
stronger the union's hand, the greater will be the threat of steel
production losses because of strikes.
So the union will watch economic
developments closely before
it reveals its demands.
But it is known to be building a case for at
least
four
big economic gains—in addition to other contract
changes.
the
becurities
climate
which
must
it; and
cents-per-hour wage increase—size of demand
be determined by economic conditions.
.
1
*
a
it
ness,
not
to
about
the
why
how
least
ment
and'
ment
eral regulation
of
the
ent
com¬
The
when
big
in
mystery
metalworking
cleared
was
this
up
week
steel
scrap prices rebounded in several important market
The mystery had been "How could
scrap prices take it on
the chin for 10 consecutive weeks when
nothing worse than a
moderate decline was in sight for steel?"
The answer seems to be
areas.
that
highly volatile
prices
scrap
are
barometer of steel business ahead.
ket factors
they
too sensitive to be
an
accurate
When viewed with other
mar¬
helpful in forecasting steel business,
but they do not always predict steel business
accurately, concludes
"The Iron Age."
;
may
prove
the automotive industry last week car
output rose about
118,130, from 111,304 in the preceding week, according to
"Ward's Automotive Reports."
In the year-earlier week it was
99,974.
to
The main
ity,
were
cury and
reasons
for last week's
rise, states this trade author¬
gains scored by Ford, Chevy, Chrysler,
Plymouth, Mer¬
Oldsmobile.
*
r
Between them, these two makes now are
accounting for about
50% of weekly car production.
Again this week they should keep
car output
fairly high—about the same as last week—but about
"18% off the fast runs of just last
July, it notes.
The
battle
credence to
between
rumors
the
auto
titans
of mergers between
is
giving
more
and
more
independents, it continues,
adding that it is generally concluded the salvation next
year of
some independents
depends on whether they can consolidate their
operations to face such market onslaughts.
•I
Steel
far
Output Scheduled
at
have to strive for
business,
says
metalworking the current week.
The
biggest
on
scene
securities
by how much steel producers
"Steel," the weekly magazine of
step to lower the cost of steel to consumers
is the steel companies' broad move to
absorb some of the freight
charges for delivering steel to buyers, states this trade
weekly,
new
.
.
Continued
page
29
Purpose
of
Investment
Company
The
Investment
Act
Company
Act
designed to protect the
public interest and the investors'
of
1940
is
It provides not only for
disclosure but also for the regula-
technical
tion of specific types of transactions, particularly those involving
^
field
a
so
I
highly
the
suppose
and
law
complex,
any
to
seems
interest.
an
absence of arms length bargaining. Much of the Act is a chart
of permitted and prohibited prac-
tices; other parts provide for
re-
have
prepared to
on
the Commission. Whatever you
a
study
of
industry.
your
minds
the
of
memory
the
the
was
of heavy losses suffered
partly
because
of
whoie but the securities of particular investment companies.
a
.
capital
Fortunately,
mai-
Act
Act.
This
Thig
is
.g
a
kets.
studies
The
companies
the
of
investment
proved to be
cooperation
of
an
ex-
tribute
to
the
substitute
no
between
It
a u u
and
is
important that the indus-
legislation bar-
.
Investment
rprnvorpd
thP
companies
**rn»nd
thev
gained out by the Commission and w in
tT. iooq
cv
lost
the thirties. In 1929 they
the
industry were embodied
were being created at the rate of
the Investment Company Act of
rlav
almost nno a day. Thp public hsirl
one
The rv«hlir» had
1940.
This
legislation
,™f.f u
invested in them almost $7,000,mately endorsed by both the per- 000 000
Then
came
the
crash
sons for whose regulation
it proFifty per cent went out of exist_
yided and the regulatory agency
ence
by 1940 and investors in
which was to be charged with its
bankrupt companies had lost 90%
administration. It Provided regu«
-
.
,
..
.
.
lation
of
n
Public
Company Act. It
out
Utility
Holding
their
either
in
vote
and your industry,
must of necessity do a lot of work
together. We are testing cooperative
let
..
a
In
business
to
Act
an
important
more
companies
Statement
responsibility
with
w
,
that
and dealers as
vertising
which
the
13
has
not
years
have
since
been
been
erature,
investor.
new
sales
not
usually
literature
meet
statutory
before
Continued
investment-
V
*
mm*
\
'
it is
on
dis¬
30
page
i
y,>.v>
f
r
Y;
Stocks with the
/
and
relatively
'
Y
'/■
%
'f.
''
v
f
C'0,
I&l
fa
WM
""w-'J
Mb'
Uptick label!
fa
i
Y-yfa:
mw%w
'*
,
*
yy
§11
Gulf Sulphur Corporation
fa
....
t
Ami Inc.
■
V
lv
M"
"
£:7
A
.
,
WA-
?
s\
w m
few
and
the
¥ Ml
Mexican Gulf Sulphur Co.
i
progress
of
the
L. D. SHERMAN & CO.
benefit insiders and
the
For
prejudice
instance,
of
the
dealers
investment
companies to increase their
♦An address
/t''
'■
n
'&
fa S
$ ' m
fa-.
••
consisted, in general,
of corporate af¬
to
to
'''
'
Transcontinental Oil Corp.
amended
controlled
the
the types of ad-
and
may
designed to correct.
was
as
affiliates
in-
d.uvlsc..ur
;
management
used
advise
™
tributed. If it does not comform to
1940, the
elimination
toward
so
to
The NASD, as a private instru¬
mentality for self-regulation ex¬
amines all supplemental sales lit¬
great
preventing
in
operation,
fairs
prepared
standards.
invest¬
recognize
would, therefore, seem an appro¬
priate time to review its purposes,
of
Policy,
designed
is
1 ™
f'
it
of
Wt AV.:
changes in its administration. This
its
of
issued
vestment companies, underwriters
far
Background of the Act
made
policing
Commission
Association of Securities Dealers.
which
abuses.
there
the
mw
ity Holding Company Act, it is all
Act
in
the
of
fewer teeth than the Public Util¬
In
1950
suggest
me
limiting Federal regulation
the
methods
supplemental sales literature.
that, since the industry succeeded
its
the
Commission
Congress.
Parenthetically
in
the
passed with¬
was
dissenting
a
House of
of
the death sentence
without
the
aims—adequate disclofair dealing,
Act is complex,
and
with the assistance of the National
try continue to exercise this selfcontrol
basic
Since
co¬
co_
for self-control,
the financial
txic
Ultimately, the rec-
government
government
sure
Commission
operative attitude of the industry.
Regulatory legislation can set
the guide posts, but it is
by
undertaken
Commission
the
Suffice it to say that the Act has
two
hag seldom been compeiied to use
Hg disciplinary powers under the
which
abuses
the
permeated
investor does not buy the securitjes 0f investment companies as
because^of
depression,
economic
partly
had
in
Fresh
nation
investors,
by
general
before'
on
good
as
security
if any issue was reg-
or
upon
The abuses
How
well
as
salesmanship.
public
rate, it is a complicated
statute. But in all major areas it
.
1934. Then in-
in
the
as
present statistics on the perform- may think of it, therefore, your
national securities ance of investment companies as business and the Commission's
exchange, they were subject, like distinguished from a composite work are
pretty well interwined.
everyone else,
to the Securities 0f market performance. Such staThis however, is not going to be
Act and the Securities Exchange tistics would
not be particularly a section
by section description
Act. In 1935, the Congress directed
helpful in any event since the of the Investment Company Act.
the Commission to make a
istered
abuses
the way down.
from
business
good
interest
consideration., That is
paramount
accomplished its ports to the Commission; and still
companies were treated purposes. We have had no
major other portions confer quasi-legisjust like any other issuers of se- investment
company
bankruptcy lative and quasi-judicial powers
curities. If they wished to sell new since 1940. I am
not
Slightly Lower Rate
The cost of steel to the consumer is
it will go will be determined
with the investors'
vestment
ment
Chevrolet and Ford, it points out, are still dueling for first
.place in the auto industry—a fact that keeps auto
output rolling
high for a time of the year when the pace
usually slackens.
a correlative duty
responsibility to sell investment company securities and to
manage -investment
companies
and
without
to be technical
At
.
In
6%
dence imposes
another
complex,
had
Ralph H. Demmler
appeared
the
invest-
shifted
sold by a
to
^
as
first
were
on
profits
or
of
In
and
know,
upon
policies
the
or
holders.
Com¬
mission,
another
commis¬
concessions
or
securities
consent
the
business.
pany
to
spreads
direction
one
invest-
m
finally, but by no means
important, control of invest¬
policy was shifted from one
person
Fed¬
of
a higher price;
switched from one
,
air
^
economy.
reserves;
amiss
talk
to
com¬
This growth evidences public
confidence. But that very confi¬
to another to provide
commissions; camouflaged
grossly excessive selling commissions
were
charged; many
companies maintained inadequate
m a y
be
assets
relatively
securities bought or
dealer as principal.
and
you
are
brokerage
on
and sold them to invest-
were
than
or
underwritten
extra
...
.
A
sions
company
in
ommendations for
over
national
higher
business; insiders acquired
investors
busi¬
do
Total
investment
panies' shares which
ment companies at
the
of
part
to
month; union officials are determined to top the $137
month won by auto workers; improvements in social
insurance;
guaranteed annual wage—this may again be traded off for
gains
In pensions or social
insurance, but there'll be a lot of noise made
to
Act, securities
all
are
community.
per
concern
rities
vesV3?en^ ComPa*>y Act, and
c
ample
per
the
•Securities and Exchange Commission
High on its list of demands, this trade journal notes, will be a
boost in pensions from present
$100 per month for 25 years' service
$150
Act,
Exchang,e
<iurl':les
you
over the hump, although
regulate their stocks over the
next several weeks.
Far from being discouraged by these
adjust¬
ments which they knew must come sooner or later steel officials
are happy
they have been able to absorb them with a minimum de¬
cline in operations, it continues.
some
of fundamental
as
channels.
hands of
has
of money
aggres¬
.
rmee
a
wide margin
now
confidence
flow
enormous
these
however.
there
years
sive selling is stimulated
by sales
commissions for investment com¬
rule-making powers and future plans. States "We have
intention of scuttling the
ship that we're hired to steer,"
and reveals purpose to reexamine
SEC rules and forms. Points
out SEC is an
agency of an Administration "dedicated to less
government, not more." Stresses maintenance of investors'
Layoffs in some durable goods industries continued to be re¬
ported, but these were offset by increased employment in non¬
durable goods industries.
Order volume reflected a somewhat
higher level than in recent weeks, Dun & Bradstreet, Inc., states.
turned,
few
fold since 1940. This is due partly,
of course, to the fact that
SEC
country-at-large in the period ended on Wednesday of last
It remained, however, above the level of a year ago.
Despite
SEC
as
no
total industrial production
in
an
in the
Chairman, Commissioner Demmler
background and purpose of the Investment Company
1940, which he calls "a complicated statute." Discusses
traces
J
A fractional
into
has
last
panies have increased almost five¬
first address
Failures
tide
the
been
Chairman, Securities and Exchange Commission
Trade
Commodity Price Index
Food
Doing
In
By RALPH H. DEMMLER*
Carloadings
Retail
The
The Job We Aie
Steel Production
Annual
Conference,' Boston,
Mass.,
Mutual
Fund
Oct.
1953.
7,
WHitehall
4-5540
Dealers, Inc.
New York City 5;
secu-
by Commissioner Demmler
Fifth
Member: National Association of Securities
30 Pine St.
Teletype NY 1-2233
a,
.
i
i.i
j
■.
6
(1426)
The Commercial and Financial Chronicle
...
Thursday, October 15, 1953
*
erty—an act of freedom—a
Unfinished Business of
tery by the individual of
ly
multiplied
choices
The Automobile
Age
where
By JAMES COPE*
of tax
revenues
points out
business, especially
of
nation
double
business, prominent auto executive
dividends.
Favors
program
almost
work
for
raise
or
just to
plus
rebuilding blighted city areas and construction of more
better highways. Is optimistic regarding auto industry's future.
a
one
aspect, this is
unquestionably the Air Age. The
airmen, who now have celebrated
In
their
50th
of
year
literally
made
flight,
have
re¬
industry, does have the un¬
questioned distinction of shipping
di¬
the
mensions
the
Yes,
of
less
tion
limitof
—they
and
is that for
five
of
have
James
have
electronics
Exponents
claim to
a
times. We could
our
night reciting ways in
which
they have modified the
labor of the world, and by morn¬
ing someone would come in with
spend
all
something
shake
On
new.
the
side they
one
entertainment
suprem¬
of
Hollywood, causing mil¬
lions of people to stay home eve¬
acy
nings who never enjoyed doing so
before; on another they aim at us,
for
or
strange
us,
unbeliev¬
and
able missiles of destruction which
make
jet
planes
and
bombers
bearable prospects by comparison.
Then the chemists have their
claims, and beyond them the Nu¬
clear
physicists.
the
Atomic
the
times
Age is
of
changes to
yond
our
All
and
be¬
comprehension.
these
great forces
our
reflect
if
with
are
habits of life,
constantly that
the
of
still
so
surely and
have to stop
we
we
our
to
are
Yet,
against these
assurance
tool
of
from
of
cap
After
many
finally
won
halfway correction.
because
won
Detroit
ter
We
of
or
own
our
af¬
home
community. I myself could perhaps
pardoned for giving the auto¬
life
pany
*An
Detroit
is
importance, since
linked
with
the
com¬
which, while not the biggest
address
Chapter
by
of
Mr.
Cope
the
is
the spot where
I stand, to rank the auto¬
as
and
as
a
before
National
ciation
of
Cost
Accountants,
Mich., Sept. 23, 1953.
the
Asso¬
Detroit,
force
think
to
as
a
of
of
as
our
this
par¬
point in
way
What
He
Transportation
Brookings
the
highway
a
Industry
Institution
statement
study
that
combination
industry
greatest single
of economic
the
claim
seems
have to look behind the
combination
of
economic
to
the wants of people
it
activity
that made
possible.
We have to look to
one
a
very
Possession
scope.
sim¬
of almost lim¬
of
an
automobile, among us now is a
privilege open to just about every
willing and able to earn
little money. Yet that possession
person
ESTABLISHED
the
growth
be
their
it would
be
hour
of
human
under
even
will¬
considerable
economic pressure.
Now we all know that the
prac¬
tical range on foot is four miles
hour.
an
Some
hurry
can
faster,
taking hold
a
1894fc
MUNICIPAL BONDS
of
lib-
be
in good physical
destination.
Thousands
mankind
within
on
of
condition
LOCAL STOCKS
at
in
of
relation
which
they lived and died
circle which rarely exceeded
a
hours—perhaps
return
a
trip that coulH be made between
dawn
and
never
moved
miles
from
than
more
the
And
10
or
20
always won
the subse¬
and
Governor and
as
in
ferent
their
Lausche
was
philosophies
quite dif¬
approach
part
they would
division between the two
a
would
one
unhappy choice.
would
Washington
among
win
Yet
have
they are
in
battle
a
is
one
made
of
the
worked
so
between
as
to
It would
them.
difference
a
20
the
be
an
Republican.
a
years
Today,
ago.
tionship
with
dullness,
human
much
race
not
the
only
but
they offer
little
its
transport break
mass
freedom
boasts
is
thoroughly,
with
ones,
don't
tion
are
variety
fixed
and
not
Moscow
even
—
subway.
know.
of
from
bed
to
miles
in
assump¬
travel
place
good, it must
20
If Wells'
hour's
an
run
distance
of
work
holds
to
some
15
congested
areas,
their
Democrats
braced
made.
I
believe
roughly with
of
ages
that
squares
average annual mile¬
Beyond that, the
exploration or for trans¬
plantation is measured in- hun¬
cars.
and
even
thousands
of
miles, and it is being put to use
by
greater
numbers
of
people
every day.
These facts of personal freedom
social and political signifi¬
have
and
economic
great scope, far exceeding our
usual
thought
of
them.
The
of
dissimilar
ready
from
enforced
iust
popula¬
made
escape
communitv
poor
on
examples
the
of
United
is
in
their
smugness,
self-righteousness
and
have
awful
an
yet
time
the
toward
These
explaining they had
they would have
just
bad
as
Such is the influence and
curse
em¬
time
a
re¬
of political
our
world
of
Republican.
on
this
page
position
always supported him.
Apparently the
he
have
to
seems
court action of
with
man
a
Democrat
as
the
appointment
Taft's
of
name
a
a
on
but
condition
vote
as
a
upon
Indeed,
Thus pressed, he
-
that this man,
in effect,
Republican; at least
as
other matters,
On
Eisenhower
as
appointee, Burke,
new
came
serve
up
as
Republican
a
the votes of real Democrats
So the
anyway.
months.
many
pushed into the appointment through the
Republican politician.
the
dependent
Republicans
These people expected him to be
New Deal Democrat.
a
sweated it out for
man
been
organization of the Senate.
about
in
That would have been too much for the Democrats
Democrat, all right, but not
a
on
seems
he is upon
may
be
ex¬
pected to be with him perhaps more often than Republican Milli-
ken, of Colorado, for example.
You wonder about this business of Democratic Governors
ap¬
pointing Senators to
Just
as
had
you
26
in effect,
serve,
Republicans
Eisenhower Republicans.
as
hanging
the
onto
coattail
of
Democrat,
Roosevelt,
Democrats
the
paying obeisance to the Republican Eisenhower.
in
his
hey
parently, too, notwithstanding
day,
that
hesitancy in going the whole route
is
be
to
their
great
thusiastic
about
It
is
power,
a
is
toward
Ap¬
the^Republicans have shown
with \heir standard bearer, he
as
at
a
all,
means
tremendous
looks
it
intend
now,
to
en¬
sing
his
of getting reelected.
temptation
to
a
man
to
tighten
his
up
with both Democrats and Republicans seeking his political
handclasp.
It would
seem
cumb to this temptation.
inclined
to
believe
in
British
comments
from
almost
an
him.
a
an
man
unusual
suc¬
situation, I
formerly
used
to
am
the
military.
commentator
about
inescapable that he would
But you have
Eisenhower,
dictatorial power of the
A
trend
Republican candidates who have not been
him
praises to the sky
the
now
selling point in the Congressional campaign
elections next year.
come
the
States, and increasingly in
Continued,
in
was
Certainly he could not have been expected to
force
the
world quite constantly.
This
would
their
Their constituents don't like it either.
Republicanism;
successor.
merchant,
that the gasoline engine aoplies to
our
companionable rela¬
a
like
don't
labels.
significance
of
the
return of the
a
or
circle for
dreds
complacency
turn of the New Deal.
and
to somewhat more than
double that where better time can
be
They don't have
Republicans,
the
What the present representative
I
the
problems of the day.
enlarging the circle. All
that
courses
in their opposition to
respect, many Democratic politicians find themselves in
position today.
same
a
limit
same
con¬
a
experts
Democrat, the other
a
quite
to¬
it out that
It has been
political
But
scene
New Deal.
who have
automobile
that
and the
one
There
then.
men
the political
on
be pitted against each other.
never
speculation
the
of
to
Republican with all of its connota¬
a
in which they have been
years
siderable
This
their
in
and
gether, the ruling influences of Ohio have
which
Bargeron
Democrat with all of its connotations.
a
could have been found
the
But the two men are
Senator.
as
political
upside down, Bricker was
in
Carlisle
good Gov¬
a
Back in the old days before Roosevelt turned the world
politics.
tions.
Lausche,
for
vote
has made
he
Similarly, Democrats have voted for Bricker, Republican,
ernor.
both
Ohio
of
because
Lausche
just incidentally, the
greater
tion
1, GEORGIA
he has
Yet
primary
the
Republicans
existing today, still is subject to
that same limitation.
Of course
are
DISTANCE 421
in
place where they
conditions, the enlarged comneti-
LONG
machine.
both
handily
born.
were
available
WALNUT 0316
Democratic
opposing the Eisenhower Administration and advocating the
dusk.
mingling
ATLANTA
played ball with the Democratic
which, under Roosevelt, came
into the hands of the organized labor bosses.
In every primary in which he has ever run,
if this writer's memory serves, he has had the
opposition of both the labor bosses and the
machine in Ohio
to
They set the horizons
the distance that could be walked
in a few
tions.
RHODES-HAVERTY BLDG.
that he hasn't been "for" labor,
never
In this
generations
operated
that limit.
cance
CORPORATE BONDS
man
he has
labor
but
a
mile in 15 minues is good
walking for people who want to
perhaps
ple thing, but
a
of
time
mileage radius in this country is,
lay
naming the Age, but it
itless
an
thinking in
luxury choice—rather in
endurance
power
activity
man's history."
That in itself might
we
the
transportation
whole is "the
me
But
every
one
would
concluded
the media of
as
to
Most
think that is much too
long,
Wells was not
us
means
Automobile Age.
constitutes
STATE AND
social
economic force
ticular moment
A
himself at
,
an
be
mobile extreme
have to rely on the
feeling that the center
first
to
enthusiasm,
cen¬
workers
Millions and millions of people
world
or
times,
automobile
an
not
mobile
out
it¬
escala¬
the
breaking of
problem
cities.
terms of
is.
well
to
my
do
the
you
sheer
our
big
as
it
as
universal
of
on
general
little public notice as the
although I believe it has
quite a factor in keeping
been
not
concentration
the
the
but
of
as
fight,
carrier.
of
succession
tion of costs in recent years.
But,
at any rate, the partial victory
in
fairs and the fortunes of
the
of
accompanied
personal
car
we
freight rate increases which have
essentially
Detroit
a
reverses
It is less visible than it should be
four-wheeled
local
freight handi¬
of great size on finished ve¬
a
hicles.
self— the
out
other home base
any
production.
The
biggest auto shipping point in the
vices, but
the
of
I believe, anywhere
world has carried
contains
said
discriminations
automotive
that the truly dominant
times is the automo¬
of internal combustion power de¬
is
or
who works with his hands. Therefore,
travel much more than an
from his house to his work.
one
business system:
this
the
In
greater mi¬
computed in terms of transporta¬
tion,
because
observation
con¬
vinced him that man would not
for
a freight
designed to give an
enormous advantage to every as¬
sembly plant spotted well away
the
bile, along with its satellite fleet
This
the
us.
our
of
had to
fight against
a
strangest
Highway
hold
we
except
mean
Democrat,
busied
limit?
six companies in our iden¬
with
I
years
does not
organized
quent election.
with
aspira¬
which
families
with
Wells
all
Detroitism
our
measure
changes they have brought
in
played
bosses
of
that back around
me
never
ball
indebted to Fred Black for
am
He has
the tre¬
locations.
the
see
the
school,
the old
Democrat of
a
Truman Democrat.
a
the turn of the
century that pro¬
lific
writer
and
thinker
H.
G.
rate structure
of
portent
a
that is
attitudes and actions
so
measure
a
man,
come
mending
us,
Unquestionably,
and
few allies
be found,
in
all
time, the
security of distance.
on
position,
the
to
Cope
hopes
many
with
or
tical
wiped out for
of
I
feeling of
interest
we
is
Lausche
not
day and in
every
recalling to
close
the Republican organization of the Senate, reflects the
cuiemnic*
in
wnicn
many upstanding Demo¬
cratic politicians find themselves.
saw
even
plant
us
and with the condition attached that he is
the late Senator Taft,
not to upset
country,
dustbowl.
an
BARGERON
appointment by Governor Lausche of Ohio, of Mayor
Thomas A. Burke of Cleveland, to the Senate to take the place of
The
vegetables,
old bond of distance.
teeming community.
sidelight
wage,
other
domination of
fortunes,
A
institutions,
and
profound
some
energetic
war
person
are
we
of
around
all
role, and
the city's big¬
and
tions of this
drastically af¬
fected
politi¬
cal
have
to
the
living
have
our
this
the
saw
gration
that
not
are
involvement
of betterments
to
taxpayer
the
of the News
By CARLISLE
little gumption.
from
we
new
enough to that unenviable distinc¬
/up an
list
we
gest
of
than
raise
in
the
war
together.
occupy
while
They have
almost
we
out
cars
Detroit,
capital,
other companies
world.
chalked
completed
motor
kids
thirties, we
mendous
migration
in the
more
the
very
awey
Viewed from
Ahead
be served by any
automobile,
can
of
and
Washington
as
is reported to
exist; a yen
change of climate; a desire
a
to
well-being. Calls for tax reductions on
profits, capital gains and elimi¬
on
is
simple as the act
turning the steering wheel. A
wish to go where more
interesting
on excess
levies
live,
of
source
dynamic Federal Government is essential
nation's economic
to
from
comes
strong,
a
From
everything:
where we worK,
we
It
Asserting the health of government finances is directly related
general health of business because the ultimate
of
in
play, where we buy,
where we go, where we stay.
Every car owner can, if he
wishes, change his life, tomorrow.
Vice-President, Chrysler Corporation
to the
we
where
alternative
choices
—
mas¬
huge¬
a
has
just written
some
Nearly all of them impress
irresponsible
man.
But there is
one
rather
caustic
me
having
that
as
intrigues
me.
When this
may
have something, and in view of the political pressure to make
writer
him another dictatorial
said
that Eisenhower
is
Roosevelt, this is good.
lazy, I believe he
Very good, indeed.
Volume 178
Number 5264
The Commercial and Financial Chronicle
...
(1427)
_
NEW ISSUE
$150,000,000
NEW
JERSEY TURNPIKE
3%% Second Series Bonds
(Series B)
Dated
July 1, 1953
Due
Principal and semi-annual
New
of
York, and
may
Sinking Fund
in part
or
after
to
as
principal only, and registered bonds in the denomination of $1,000
and registered bonds
coupon
These.Bonds
interest
(January 1 and July 1) payable at The National City Bank of New
York,
The National State Bank of
Newark, Newark, New Jersey. Coupon bonds in the denomination
at
$1,000, registerable
thereof,
to
be redeemed prior
at any
time
on
to
July 1, 1956
not less than
on
be
interchangeable.
maturity
after July 1,
or
(by lot), by operation of the
the date fixed for
July 1, 1988
30
as
1958
a
.
*
'
■
not
less than 60 days'
Sinking Fund,
days' published notice
at the
'
on
published notice
any
or as
a
interest payment date
on
or
to
.'
Vs*.
(
'
j.
,
...
1, 1956 to and
including
invading
including
and including
and including
1, 1958 to and
1, 1963 to and
1, 1968 to
% 1973
to
Redemption
t
For Sinking
,
Period
July
July
July
July
July
30,
1958..:..........................,...
30, 1963.
30, 1968.
103%
:
102
..........
30, 1973.. ..i. .!
.
v.*.
.;..'
........;
......
30, 1978
100
.....
July 1, 1978 and thereafter.
Interest
-1 Non-Callable
103V2%
102 Vi
101l/2
100 V2
101
.....
*
Otherwise
V2
y2
101
.
Price—:—\
,
V
'."Fund
June
June
June
June
June
whole
following prices and accrued interest
.
r'
•
,
multiple
•"
.
whole otherwise than by operation of. the Second Series
on
Second Series
redemption:
as
or any
••
--
*/2
100'
'
100
exempt, in the opinion of Bond Counsel, from all present Federal Income Taxes,
under
existing statutes.
Under the' New
Jersey Turnpike Authority Act, the Bonds are legal investment in New Jersey for
of New Jersey and all its political subdivisions, departments and agencies, and
for savings banks, trust companies, insurance companies, trustees and other fiduciaries.
the State
The
These Bonds
Chase National Bank
of
the
City
of
New
York, Trustee
to be issued to
provide moneys for the construction of the Newark Bay - Hudson
County Extension of. the Turnpike, for the refunding of $30,000,000 outstanding Second Series
Bonds
rue
are
(Series A), and for certain expenditures in connection with the
Turnpike.
Act
authorizing the issuance of the Bonds provides that such Bonds shall not be deemed to
a debt or
liability of the State of New Jersey or of any political subdivision thereof or
pledge of the faith and credit of the State of New Jersey or of any such subdivision. The Bonds
constitute
a
are
payable solely from the tolls, other
and
revenues
proceeds of the Bonds pledged for their
payment pursuant to a Resolution of the New Jersey Turnpike Authority dated October 14, 1953.
Price 99-50%, to
yield approximately 3.40%
to
maturity
(Plus accrued interest)
These Bonds
are
legality
offered for delivery when,
as and if issued and received by us, and subject to the approval of
Messrs. Hawkins, Delafield & Wood, New York City, Bond Counsel to the Authority.
Delivery in temporary form is expected on or about November 10, 1933-
1by
Offering of these Bonds is made only by
be obtained
means
from such of the undersigned
of the Official Statement, copies of which
as are
may
registered dealers in securities in this State*
.
Smith, Barney & Co.
The First Boston
Corporation
Lehman Brothers
Blyth & Co., Inc.
Harriman Ripley & Co.
Drexel&Co.
Halsey, Stuart & Co. Inc.
B. J. Van Ingen & Co. Inc.
Goldman, Sachs & Co.
Kidder, Peabody & Co.
Union Securities Corporation
White, Weld & Co.
Incorporated
C.
J. Devine & Co.
Merrill
A. C.
Eastman, Dillon & Co.
Lynch, Pierce, Fenner & Beane
Allyn and Company
Incorporated
John Nuveen & Co.
Equitable Securities Corporation
.Phelps, Fenn & Co.
Bear, Stearns & Co.
Alex. Brown & Sons
Glore, Forgan & Co.
R. W. Pressprich & Co.
Ira
Haupt & Co.
.
Paine, Webber, Jackson & Curtis
-
Bacon, Stevenson & Co.
Barr Brothers & Co.
»
.
.
A; G. Becker & Co.
Incorporated
'
Hemphill, Noyes & Co.
Hornblower & Weeks
Salomon Bros. & Hutzler
Blair, Rollins & Co.
Incorporated
Braun, Bosworth
-
Co.
*
F. S. Moseley & Co.
Stone & Webster Securities
Dominick & Dominick
Corporation
Estabrook & Co.
Incorporated
%
Kean, Taylor & Co.
October 15, 1953
Lee Higginson Corporation Reynolds & Co. L.F.Rothschild & Co.
Schoellkopf,Hutton&Pomeroy,Inc. Van A1 sty ne, Noel & Co. Wood, Struthers & Co.
7
8
The Commercial and Financial Chronicle
)
(1428)
Dealer-Broker Investment
firms
ber
Moyer & Co. to
in
length
of
the securities business.
Become NYSE Member
the firm's
dled
years
Burton,
is
parties the following literature:
send interested
to
Cluett
Elects Three Dirs.
&
Dana and W. E. Hutton & Co.
Moyer & Company, a 111-year-
The election of Harold J. Berry*
Co., 1 Wall Street, New York 5, N. Y.
1953—A. M. Kidder &
Peabody & Co., 17 Wall Street,
Drug Stocks—Study—Kidder,
York 5,
New
Japan—Circular—Yamaichi Secu¬
rities Co., Ltd., Ill Broadway, New York 7, N. Y.
Local Notes—Data on Kentucky companies—The Bankers Bond
Co., Incorporated, Kentucky Hoi$e Life Building, Louisville
2, Ky.
/ y\;:
•
handle
Co., Pan¬
Co.,
120
Broadway, New York 5, N. Y.
Companies—Comparative figures on
1953—New York Hanseatic Corp.,
Broadway, New York 5, N. Y.
New York Banks & Trust
banks
18
120
City Bank Stocks—Comparison and analysis of 19
Stocks as of Sept. 30, 1953—Laird, Bissell
New York
New
&
Sept. 30,
of
as
history
the
niversary
by
over
York Bank
Meeds, 120 Broadway, New York 5, N. Y.
Over-tlie-Counter Index—Folder showing an
up-to-date com¬
York
an¬
Exchange Build¬
Philadelphia firm
in¬
came
E.
coaches
delphia and such cities
Harris-
as
York
Public
4, New York.
Utility
shrewd
enough
to
that
see
Saxton &
Co., Inc., 70 Pine Street, New York 5, N. Y.
Reinsurance
—
and
Company,
Boston
the industry and statistical data on
Corporation, American Re-Insurance
of
Study
Reinsurance
General
A.
Reinsurance
Employers
Corporation
First
—
Corporation, 100 Broadway, New York 5, N. Y.
Utilities—Analysis
in
In the
same
issue of "Market Pointers"—
Co., 1 Wall Street, New York 5, N. Y.
current
Francis I. du Pont &
issue is
list of Growth Stocks, Candidates for
a
1500
Walnut Street,
the
individual
ward
*
•
•
on
Philadelphia Electric Co.
Corporation Limited—Analysis—Dominion Securities
Corporation, 40 Exchange Place, New York 5, N. Y.
Telephone—Memorandum—A.
Street, Toronto,
Central
Vermont
E.
Ames
&
Co., 320
Bay
Ont., Canada.
Public
Service
Co.—Booklet—Ira
Haupt
&
Co., Ill Broadway, New York 6, N. Y.
Cinerama Productions Corporation
—
Analysis
Noel & Co., 52 Wall Street, New York
Federal
Manufacturing
&
Engineering
—
Van Alstyne,
5, N. Y.
Corporation—Analysis
Amott, Baker & Co., Inc., 150 Broadway, New York 38,
N.Y.
1
Frobisher—Memorandum—J.
Bradley
West, Toronto, Ont., Canada.
Streit, 66 King Street,
Hoffman Radio Corp.—Memorandum—William R. Staats &
Co.,
640 South Spring Street, Los Angeles
14, Calif.
International-Great Northern—Memorandum—Dreyfus &
50 Broadway, New York 4, N. Y.
Co.,
Keyes Fibre Company—Analysis—Boenning & Co., 1606 Wal¬
nut
Street, Philadelphia 3, Pa.
Old Ben Coal
Corporation—Special report—H. M. Byllesby and
Company, Inc., 135 South La Salle Street, Chicago 3, 111.
Riverside Cement Company—Analysis—Lerner &
Co., 10
Office
Ill
,
T.
Company—Analysis—Aetna Securities Corp.,
23-25,
Broad
St..
going into
New
Stock
Western
Smith, Barney & Co.,
Tungsten—Memorandum—Victoria
Building, Vancouver, B. C., Canada.
ference
(Hollywood, Fla.)
of America Annual Convention at
Hollywood Beach Hotel.
June 9-12,
"I
think
it
is
fair
preferences
stocks
has
from
—
to
Securities
Limited,
Prospectus
on
—
been
t
s
e
d
Blue Ridge Mutual Fund,
Inc., in¬
shares.
company
Robert h.
Robert H. Loeb,
Loeb
member of the
New York Stock Exchange, passed
away
had
Mr. Loeb
at the age of 70.
been
a
of
member
the
Ex¬
change since 1909.
Notes
SECURITY TRADERS ASSOCIATION OF NEW
listed—
are
influenced
which
has
the
Stock
conducted
Exchange
in
the
League standing as of Oct. 8, 1953 is as follows:
itself
past
Bean
Originally John E. Fox & Co.,
the firm's name was changed to
Fox, Moyer & Co. in 1906. The
present name of Moyer & Com¬
pany
has continued unchanged
since Jan. 1, 1907.
Throughout its
111-year existence, there have al¬
ways been members of both the
and
Moyer
families
(Capt.), Bass,
Serlen
(Capt.), Fredericks, Murphy, Weseman, Buff__
14
(Capt.), Nieman, Gannon, Tisch, Greenberg..
13
Hunter
(Capt.), Brown, Reid, Farrell, Barker—
12
Krisam
(Capt.), Pollack, Cohen, Smith, Strauss
10
Meyer
member, is a
grandson of David B. Fox, who
was a
cousin and partner of the
He
office
joined
bov
in
the
1907;
(Capt.), Hunt, Werkmeister, Swenson, Ghegan
Donadio
Exchange
founder.
(Capt.), M. Meyer, Frankel, Wechsler, King
for
firm
became
scant
some
Manson
Burian
as
a
most of the
and
Moyer
&
delphia
Craig,
(Capt.),
Gronick, Bies,
9
Demaye
(Capt.), Jacobs, Topol, Weissman, H. Frankel.
5
Point Club
Will Krisam
Bernie Weissman
205
Roy Klein
Between
the
1920's, the firm of
Company did a large
Stock
Moyer
on
the Phila¬
An
Exchange.
&
Company
orchid
held
ad¬
mitted, it will yank among the
first dozen Stock Exchange mem¬
Midwest
D"troit
376
is
to
N. S. T. A. Members for their
September 16-19th
super
SOLD
—
and the
I'll
ship
at
over
interesting.
STOCK
Write
or
phone
you a
me
orchids, the gift of distinction,
the steamer
any
and freshness.
bring
Stock
Stock
as
a
"ben voyage" gift
For your pet
charity, orders of 50
nice dividend.
for full details. We ship everywhere.
63 East 233rd
Office—Bay
Street, New York 70, N. Y.
Telephone: FAirbanks 4-2373
City,. Mich.
-p
**;
or
special event and be assured of their
MISS DANA MEYER
Exchange
Exchange
was
Congratulations!
line.
order them for
will
splendid convention
Sun Valley, Idaho. The fellowship
program most
your corsages to
you may
1051 Penobscot Building
DETROIT 26, MICH.
Branch
5%
2
a
Point Club
200
details
early records of
COMMON
1-
6
Siegel, Voccolli, Lienhardt—_
(Capt.), Boggs,
Request
Security Dealers Association
9
____
_
(Capt.), Gavin, Clemence, Montanye, Whiting
Growney
about the original arbitrage busi¬
the firm have been lost.
9
__
ca¬
Henry C. Fox, Jr., the proposed
Stock
14
Klein
con¬
some
16%
(Capt.), Rogers, Gold, Krumholz, Gersten
Leone
pacity.
If
Bradley..
Valentine, McGovern,
Kaiser
nected with the firm in
an
Points
Team:
few
years."
Fox
YORK
Security Traders Association of New York (STANY) Bowling
by the edu¬
cational and public relations work
correctness
QUOTED
74 Trinity Place, New York 6, N. Y.
of
distribution
wholesale
NSTA
Members:
2400
in
on
MOREUND S CO.
Y.
Vice-President
Shareholders' Trust of Boston and
Association
ciation Annual Convention at the
L A. DARLING CO.
Troster, Singer & Co.
Members: N.
Sales Office.
York
is
charge of syndicate operations and
Convention at
Annual
Canada
QUOTED
J
HA 2-
Skinner
vestment
When you are in the market for
STAUFFER CHEMICAL
SOLD
Vice-
charge of Harriman
Ripley's New
Mr.
is
Millette
Mr.
in
President
that
say
non-1 i
that
stocks
to
BOUGHT
—
Ripley at its formation
1934.
1954 (Canada)*
Investment Dealers'
of
in
the
Investment Bankers Association
the
Harriman
revenue.
Banks, Brokers and Dealers
BOUGHT
Ripley since
graduation from the Univer¬
Sulphur sity of Pennsylvania in 1935.
Greenbrier Hotel.
the
at
remember that's my
For
Vice-President
a
Stock
volume of business
—
(White
Ex¬
listed
stocks
York
commission
1907
Inc.—Analysis—Bregman, Cummings & Co.,
Warner-IIudnut, Inc. — Memorandum
14 Wall Street, New York 5, N. Y.
1953
is
"In recent years," Mr. Henry C.
Fox, Jr. said, "a larger and larger
percentage of our business has
ness.
15
Broadway, New York 5, N. Y.
Hall
Oct.
Moyer,
Except
Broadway, New York 6, N. Y.
Standard Brands,
his
partner in 1925.
Servel, Inc.—Analysis—Eastman, Dillon & Co.,
N. Y. 5, N. Y.
100
Post
Square, Boston 9, Mass.
Rosefield Packing
an¬
Davis,
the change in many of our clients'
Asbestos
Bell
been
V.
buying department, and has
with Harriman
been
ing.
Exchange
and, being a non-member, we
have been losing a great deal of
American-Marietta Co.—Memorandum—A. C. Allyn & Co., 122
South La Salle Street, Chicago 3, 111. Also available is mem¬
orandum
Firms Board of Governors Meet¬
C. Leigh Moyer, Hotel Claridge.
Jr. and J. Miller Karper; while
Lena Moyer is a limited partner.
the
Profits Tax.
has
Pierpont
Berry
in the
Philadelphia, Jasper Park Lodge.
eral partners in the firm are Ed¬
been
Excess
Exchange
Stock
change membership would be held Sept. 22-26, 1954 (Atlantic City)
by Henry C. Fox, Jr. Other gen¬
National Security Traders Asso¬
tion
the
of
in
Year-End Extra Dividends and Beneficiaries of the Elimina¬
of
Mr.
(Louisville, Ky.)
13-16
Association
his
stage coach operations presented
opportunities for buying Harrisburg bank notes, say, at a discount
and
figures—G.
Stocks—Comparative
Common
Oct.
possibilities in bank note arbi¬ Nov. 10, 1953 (New York City)
trage. At that time, banks issued
Security Traders Association of
their own currency notes, which, New York Beefsteak Dinner at the
while possibly worth par in the Antlers.
city of issue, might sell at a dis¬
count in another center. Fox was Nov. 29-Dec. 4, 1953
Moyer & Company is lqcated at
market
City,
by
President.
burg and York realized the profit
performance over a 13-year period —
Quotation Bureau, Inc., 46 Front Street, New
and
nounced
Mr. Millette and Mr. Skinner
Springs, W. Va.)
March, 1842, when
Fox, who operated stage
Investment Bankers Association were both formerly with The Na¬
plying
between
Phila¬ Southeastern Group Annual Con¬ tional City Company and joined
Philadelphia and then selling
them possibly at par in Harrisburg.
National
L.
to existence in
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to
yield
York
New
Field
Investment
In
ing.
The
David
and
directors of Harriman
as
Ripley & Co., Inc., 63 Wall Street,
EVENTS
Stock
moving into "the
the Reading Room"
of the Merchants
Skinner
COMING
Millette
V.
Walter
back to
goes
New
Exchange observed its fiftieth
.
River Fuel Corp., Northern Natural Gas,
Eastern Pipe
Line Co.—Sutro Bros. &
sissippi
when
John
"
Industry—Analysis with special reference to Co¬
Gas System, Inc., Colorado Interstate Gas Co., Mis¬
Gas
lumbia
The firm's
1842,
large hall
N. Y.
Investment Opportunities in
Natural
Philadelphia investment firm,
has
applied for membership in
the New
York Stock
Exchange
and, if approved by the Board of
Governors, will become a mem¬
ber
firm
of
the
-Exchange on
Thursday, Oct. 22.
Sept. 30,
Earnings—For the nine months ending
Stock
Bank
mentioned will be pleased
understood that the firms
It is
Ripley Co.
han¬
old
Recommendations & Literature
Thursday, October 15, 1953
Harriman
At present
listed business
through
in
...
or
Volume 178
Number 5264... The Commercial and Financial Chronicle
(1429)
number
National Business
next
Another factor of prime impor¬
Says, if
our
economy
effective
an
demand for goods and services coming from: (1) expenditures
for private investment purposes; (2) expenditures by foreign¬
ers
for
our
would
govern¬
talk
have been
you
regarding
I
to
trends
California.
in
asked to
economic
We
all
will
one
to
happens
Cali-
our
fornia
econo¬
will
my
many
of the
the
on
be
determined
It
in capital
might be expected.
for example, indus¬
Last month,
largely by trial stock
offerings fell to the
happens lowest
figure since February, 1951,
the
nation.
of
Because
this, I will
divide this ad¬
dress into two
sections:
Robert R. Dockson
review
(1)
a
the
of
national situa¬
tion, and (2) a look at California
to
how it fits into the overall
see
pattern.
the
If
our
for
and
year
two-thirds
economy
is to continue to
and grow, bringing an
higher standard of living to
an
Since
below
1951.
financing was also down to
the lowest point since March, 1952.
In
of
interesting to note that in
conventional loans
these
1
on
to
no
expenditures
their
ing
on
because
program
invest
business
conditions.
but
today compared
in 1939. The tre¬
11%
of
programs
the
V.
A.
and F.H.A. have played an impor¬
tant part in adding the 8,000,000
units to
If
.
the
in
lion
in
to
consumer
his
increase
services
our
be
society.
our
This
done?
marketing
great
in
produced
this
Can
is
the
problem
facing
free enterprise system. There
lack
get the results of this production
into the hands of
consumers.
of
Actually, since the end of the
softening war, per capita income after taxes
economy, and
per
capita expenditures in
a
we
increase
have
convinced
the
of
the
adjusted in Order to stimulate
construction.
What
happens
ventories
is
business
to
in¬
another
part of pri¬
expenditures that should be
have very little in¬
borne in
mind.
fluenced
by
equipment for 1954.
is at
tories
and,
an
Production is
the
level
of
in¬
inven¬
currently, this level
high—$78 billion.
all-time
ex¬
remaining somewhat steady and
no
significant changes in taxes,
there has been
more
the
how
we
present,
can
I
expect
for
increase in per
in
started
Total
the
'30s.
expenditures
consumer
,
have
At
an
capita real income. When chart¬
whole, then,
important anti- ed, this statistic looks as though
it is continuing the upward trend
the
Net Foreign Expenditures
increased
$12 billion
since a year ago.
The greatest
increase percentage increase over this pe¬
in foreign riod was for hard goods such as
do
not
over
see
any
year
Al¬ automobiles, jewelry, tools, books
in¬ and sport equipment. Outlays for
creased
moderately in the past appliances have declined a little,
few months it is not likely the and this has been reflected in the
present situation will change reduction in production of such
though
formation about the spending in¬
tentions of business for plant and
However, the
terms
bil¬
inflationary factor at work.
significant proportions is in sight,
am
offset
government
On
one
will
decline of $4.5
federal
penditures.
of
business
the
expected
housing inventory.
our
downturn
a
vate
we
the
in other segments of our
housing is underwritten by doubtful
government
with
heavily, particularly if they
To date
have
areas
If there is
manpower.
demand
future
decrease
their expansion
of
during the coming
over
will
Some
programs.
been held back
government guaranteed loans will
worried
the
expenditures by at least as much
as the expected drop in the other
categories if we are to maintain
the
present level of goods and
is no question but what we can
getting underway with
produce the goods—the real diffi¬
highway and public build¬
culty is whether or not we can
be
increase will not
to
in expenditures for purchase
plant and equipment and the
purchases by government, it falls
just
believes that
an
correct,
reduc¬
tion
to
in the next few years. Many states
I
businessmen
year.
the
to believe that
reason
addition, the cost of money has
been increasing.
I am one who
stimulate
reper¬
a
than the of
economy
end
are
budget that is, that there will be
different
a
our
the
there is
are
large but is it as dan¬
it might appear?
mendous
Bond
products.
imports
have
our
our
enough to have
fect
all
upon
the
When related to current sales the
inventories do not
goods
important ef¬ items
an
total
and
demand
services
for
pro¬
balance, this factor is
insignificant for our pur¬
rather
anticipated
the
On
duced.
McGraw-Hill survey does show a»
as
television and radios and
other major household appliances.
All told, the American consumer's
demand for durable goods is up
poses,
the
drop
in outlays for
quarter of this year.
fourth
The
drop is not great, but if the
survey is correct, we can expect
total expenditures for
plapt and
equipment for the last quarter to
be $1.34 billion below the high an¬
nual
population, there must be
our
showing
are
prosper
ever
poorest
August since 1950. The offer¬
ings were one-third below last
of
remarks.
is
farm
an
are
aware there are a
approaches that are
used by economists and analysts
in their attempts to depict current
business conditions. Certainly, our
statistics or the knowledge of the
meaning of them are not suffi¬
ciently accurate to place total re¬
liance upon any one method. This
morning, I intend to place empha¬
sis upon one approach but will
endeavor to bring into the picture
others in order to supplement my
you
number
the
to
more
National Business Situation
As
and
quite
on
federal
our
family dwelling units amounted part of the lag can be thus taken terms of constant dollars have not
through increased
expendi¬ changed significantly. They have
billion up
tures by state and local govern¬ doubled since the low
of mo r tg a g e debt outstanding
point was
ments.
reached in 1932, but for the past
compared with only 57% of $61.5
billion outstanding as of June 30th
Although state and local gov¬ eight years, they have remained
of this year. In other words, 43% ernments might
be able to in¬ relatively stable with an upward
their
of the debt outstanding on non- crease
expenditures, it is tendency. This year, with prices
what
in
cussion
in
.
assumptions
our
to 89% of the total of $16.3
downturn
a
expenditures
surplus
takes.
economy
4
Purposes
Although
actual
outlays
for
plant and equipment are running
about 7% over last year, there are
indications
a
are
there
course,
is
gerous as
1939,
Expenditures for Private
Investment
single
who complain about the size
consumers' mortgage debt.
The debt
others.
the
with
fact that what¬
ever
effect
an
see a stop put to deficit financ¬
the
ing, but it must be recognized that
If
the
maturities
the
and
Of
extended.
are
well acquaint¬
ed
have
is
another rush for
be
lowered
were
ment, and (4) expenditures by the American consumer. Dis¬
cusses
California economic trends, and is optimistic about
future of California's employment.
Today,
construction
dwelling units if down payments
products; (3) expenditures of all levels of
slight surplus the total, it is his purchases that
will be glad largely
determine the direction
determining the amount of large deficit of the last fiscal
residential
there must be
us
war, ex¬
availability of funds. Even though
interest rates have been increased, penditures by state and local gov¬
ernments have increased steadily
there
are
still
indications
that
from $8 billion to $23.4 billion for
money for residential building is
1952, and they are currently run¬
tight.
We
know
construction
could
be
stimulated
and
there ning at $24.6 billion. As I see it.
Professor Dockson reviews national business conditions, and
grow,
a
will exist. Most of
will have
tance
University of Southern California
and
basis, it is possible
to
By ROBERT R. DOCKSON*
analyzes situation in California.
the
were
have to be predicted.
Professor and Head, Department of Marketing,
is to continue to prosper
years/ If this
only factor determining the num¬
ber of dwelling units constructed,
it is easy to see a decline would
Conditions and California
then
be expected over the
can
few
%
rate
of
$28.42
billion
spent
between
of
line.
seem
to be out
However, this high level
is being carefully watched. If sales
begin to taper off, orders are like¬
ly to be cancelled and a reduction
expect
groups
expenditures,
it
drop
most notice¬
is
On the whole, it seems that total
private expenditures for plant and
the
months
ahead.
is
It
have
We
equipment, residential and other
construction and inventory accu¬
in mulation are likely to decline in
a
Consumers
in production will follow.
July and September. Al¬
though the majority of manufac¬
turing
about 15% over a year ago. Non¬
and we need not explore it durable goods have increased but
to any extent.
approximately 2% over the past
year and even this is partially ex¬
Expenditures by American
plained by slight price increases
this
is
the
the
of
consumer
who
purchases
biggest share of the goods and
services produced in our economy.
he
Because
food
alcoholic
and
beverages.
already noted that it The Americans' demand for
takes
about
62%
ices
continues
comes
go up.
to
increase
in¬
So far this year, the
Continued
of
serv¬
as
on
page
42
seg¬
able for textiles, non-automotive
ment that will have the greatest
The de¬ transportation equipment and for impact upon the F.R.B.'s index of
the stone, glass, and clay indus¬
mand for these goods and services
industrial production. These are
tries.
can
only come from four areas:
some of the reasons why some an¬
effective demand for all the goods
and services
we
produce.
expenditures for private in¬
purposes;
(2) expendi¬
(I)
Because
of
riod
the part of all
by foreigners for our prod¬
and
entering a
comeptition
are
we
vestment
tures
increased
pe¬
alysts
on
much
business, I believe
tures
services;
we
drop of
a
offering o] these Sharesfor sale, or an offer to buy, or a solicitation of an offer to buy,
The offering is made only by the Prospectus.
'
as
by
Expenditures by Government
Currently, total Federal
the
dollar
value
latest
the
to
statistics
current value of all the
services
of
this
the
total
goods and
that will be produced
in
will be in
the neighborhood of $380 billion.
After adjusting for the decrease in
the value of the dollar, this is
our
economy
more
in
1953
than double the dollar value
of the goods and
services produced
Private investments, that
in 1939.
is expenditures for new construc¬
tion,
equipment
and
inventories,
will amount to nearly 16%
total;
will
costs.
Par Value $10 Per Share
of this
Innovations
are
When
itures
every
talking about expend¬
plant and equipment, we
on
by
Professor Dockson
before
the Employment Security Asso¬
ciation of California, Los Angeles, Calif.,
September 25, 1953.
decline.
any
dealers in securities and in which the
estimates there will be at least $1
has been
of
one
business
the
in
this
of the main supports
activity during all of
postwar
the
boom
years.
end
of
Between 1946
this
will have been added to
our
hous¬
tablish
the late
there
will
have
gain
a
families.
mates
marriages.
be
built
at
least
this
of
energy
spent
was
last
estimate
of total federal expendi¬
fiscal
for
is
1954
The First Boston Corporation
■
estimate made in May
$74 billion. For the first time
since
1948, the Administration has
for less money for future
spending than the estimated
budget expenditures. This is high¬
ly important, particularly if it is
Harriman Ripley & Co.
Kidder, Peabody & Co.]
Hemphill, Noyes & Co.
Incorporated
Merrill Lynch, Pierce, Fenner & Beane
Stone & Webster Securities Corporation
asked
Union Securities Corporation
A. C. Allyn and Company,
Incorporated
'>
White, Weld & Co.,
i
Laurence M. Marks & Co.
mean
the backlog of accumulated
appropriations will begin to de¬
Paine, Webber, Jackson & Curtis
Although
cline
and,
Salomon Bros. & Hutzler
million
tures
will
a
continued
in future
years.
eventually,
be
we
will
According
more
in
It will
expendi¬
line
this
to
the
most
be
$3.8
billion.
On
recent
a
R.W.Pressprich&Co.,
Tucker, Anthony & Co.
i
■'
G. H. Walker & Co.
estimates the deficit for fiscal '54
will
t
Shields & Company
with
commitments.
new
approximately
W. C. Langley & Co.
Goldman, Sachs & Co.
Glore, Forgan & Co.
Smith, Barney & Co.
$2 billion
below the
of
Blyth & Co., Inc.
F. S. Moseley & Co.
The Census Bureau esti¬
that
military,
atomic
The Treasury's most recent
year.
800,000
year,
but
than
programs
ture
and
Carl M. Loeb, Rhoades & Co.
rate of the '40's results in another
in
aid
W. E. Hutton & Co.
separate households, until
'50's when the high birth
boom
foreign
;
Copies of the Prospectus may be obtained from any of the several under.
writers only in states in which such underwriters are qualified to act as
Prospectus may legally be distributed.
He
billion less spent on the
homes
address
the
on
con¬
The
0.1%, a negligible figure.
This ing inventory. The total number
of
households
continues
to
in¬
year's personal consumption ex¬
crease, but the rate of increase
penditures, or the purchases of
has
been
declining since
1947.
the American consumer, will ap¬
This will continue, in
spite of the
proximate $235 billion, or close to
tendency for older people to es¬
62% of the total of all goods and
•An
is
field
and
produced. Any analysis
of our economy must take into ac¬
count the forces working within
each of these areas. They are in¬
terrelated and what happens in
subject to certain conditions, to purchase
unsubscribed shares and, during and after the subscription period, may offer
shares of Common Stock as set forth in the Prospectus.
The several Underwriters have agreed,
spending for national security
purposes
struction.
year, nearly
government
expenditures
about 22%, while net 8]000,000 permanent dwelling units
services
that
must not overlook residential
take
foreign expenditures will be about
Rights, evidenced by Subscription Warrants, to subscribe for these Shares at
$16 per Share have been issued by the Company to holders of its Common
Stock of record October 14, 1953, which rights expire October 29, 1953, as more
fully set forth in the Prospectus.
a
deficit of $9.4 billion. During
day, and as
the past
year,
expenditures for
they prove their worth, more and
national
security purposes have
more companies will place orders
for them. In all probability, out¬ consistently increased until they
now
are
in the neighborhood of
lays for plant and equipment in
1954 will be below 1953, but the $54 billion. Secretary Humphrey
has recently released a statement
decline is not apt to be drastic.
According being tested
'
Common Stock
ment
expenditures
are
running
magnitude dreds of thousands of firms that very close to what
might be con¬
will be forced to modernize their
of these components enables us to
sidered
the
peak.
Fiscal
1953
evaluate the relative importance plants and their equipment if they
ended with total government out¬
of each, and at the same time, are to attract the customer and re¬
lays of $74.6 billion resulting in
duce their
realize
of, such Shares»
Long Island Lighting Company
govern¬
A look at the present
country's/ production.
any
685,648 Shares
points by the end
are
and local, and
state
20 to 40
an
of 1954.
(3) expendi¬
likely to see that expend¬
government,
Federal, itures on new plant and equip¬
(4) expendi¬ ment will remain at a fairly high
tures by the American consumer. figure for 1954.
There are hun¬
ucts
predicting
are
as
This is not
cash
October 15, 1953.
H.Hentz&Co.
Rand &,Co.
,
10
The Commercial and Financial Chronicle
(1430)
news
The Public and the Oil Industiy
By R. II.
(Ohio)
Standard Oil Company
The
have
which
issues
of the industry cannot
be
can
underwritten
best be told in advertising
subject
This
rela¬
public
tivity
activi¬
tions
ties, and most
sentment
refuse
of all, a
less
nomic
ruth¬
inquiry
into
our
reconciled.
tices
to
that
they
see
are
antisceptic
as
off
First
an
not
is
Collacott
H.
an
like a
corporation or an individual. It is
not quite such an abstraction as
summer time or the color red but
on the other hand it is not a con¬
entity
crete
who can be sued or
court, no matter how
person
into
hailed
time
much
of
some
its members
there. Neither
can it take aggressive action as a
defense against slander and re¬
crimination. That is one of the
to have spent
seem
it
reasons
is
so
easy
to take pot
it's so
shots at it. It's easy because
to emphasize
is to go out not
difficult it
how
what
industry is.
It
the one to
mention it only
I
then let's rec¬
ognize
you
do it.
be.
to
you.
order, I should not be
believe
we
as
them
their size and eco¬
influence seem to tyrannize
make
that
a
loyal
(a)
(c)
only to defend the industry but
actively sell the public on prac¬
tices with which you are not in
these
issues
is
are
that
successfully
on
merchandising.
retailing to self-
adapt
To
stores into
move
ulation
ness
alacrity
cumbersome-
the
other
of
types of retail¬
to big plants in
rooted
ing
new pop-
with
centers
against
as
the
overcongested shopping
is
this
all
in
that
pre¬
paring much of our public rela¬
tions
matters
find virtually
so
that
we
all
search
we
program,
those
a&°* Further
earmnS P°wer is
Pfcted as the process of re}j?^] * f ij?n col?tinues and earn,
.
f can be envisaged quite
.fSfSI 2 ain 1 jCrease, in
Jiff,®'
the
$2
dividend,
in
payout
Pro^s.
This
areas
already
relation
should
to
bring about
stantial revaluation
low
a
current
a
sub¬
of the shares.
Plagued in 1951 and 1952 by
penetrating statement and I think
Earnings multiples of 11 or 12
the
rigidities
consequent
upon
everyone will agree
with it but
price ceilings and regulations, vie- '
are customary among large
the important fact is not just that
timized during the postwar period grocery chains and it is usual for
they are controversial but they
often
are
that
for
reason
very
incapable of anything resembling
solution.
perfect
a
that
we
come
can
lution
will
at
a
nearest
perfect
so¬
that which arrives
ethical
an
The
to
be
compromise of the
various interests involved. That is
by sustained
inflation affecting
historically narrow profit mar-
gins, and before that blocked from
expansion and rehabilitation by,
Further, while there are only
building restrictions, the 1,301,000 shares outstanding, which
industry is now in a position to makes trading somewhat inactive,
maneuver
freely toward the full ,uiS snoutd be remedied in the due
realization of its profit - making
only a difficult task but, once
set up, is certain to prove unstable potential.
There are many attractive and
because of the appearance of new
factors which constantly tend to growing situations in this industry:
some - small
and regional;
upset that nice balance.
A. & P., the leader, national in
The Industry Should Keep
scope;
and the second in vsize,
Public Informed
Safeway Stores, which started on
of corporate events when
gets around to utilizing the 700,000 of authorized but
unissued shares now available
after the recent increase in authorization which presumably
meant something other than work
for the lawyers. American Stores
and, reversing common stock is listed on the
American his- New York Stock Exchange,
not
Society
to say
going to
is
about
many
have
lot
a
of the questions
securities in this group to sell
substantially above book value,
merican Stores book value is 47.
wartime
the
Pacific
the
pageantry
Coast
of
which
on
we
formed is of
want
we
two-fold type.
a
First,
to have so¬
much
very
for ciety's active help toward creat¬
can
complete agreement
get behind them
can
ing
sound economic climate, and
a
second, when that action has been
nuclei
of
operations
ultimately
become
which
course
the
company
fering holders of its
writer's
of
This, too, in the
opinion, is an attractive
but
since there are many
controversial aspects, we will con-
issue,
where
arises
case
cite
can
the
old
adage
Lighting
tional coverage.
does entail considerable effort and
we
Offering Underwritten
Long Island
na¬
there is
join in the program. While
no great harm
in this, it
Long Island Lighting
may
complete
taken, it is equally important to us
tent ourselves with a more clearthat the public shall know what it
cut portrayal — American Stores,
entails.
Case
after
and all
through August
increase of 10% com-
or
of
result
months
an
Parec* w*th a year
to promote interests either through direct legislation or tory, has moved with inexorable
drive toward the east and started
which conflict with your own. The through
the
less
specific
but
on the Atlantic Coast in the New
actual fact is of course, that under
equaiiy
inexoraoie
exercise
of
York-New
Jersey and Virginiasuch circumstances you don't do it public
opinion.
Our in|terest in
Maryland
areas,
forming
two
and no one expects you to. The
having this opinion be well in¬
sympathy
five
showing
encroach
To
very
i
in
service methods.
,
con¬
a
not
Security I Like Best
characteristics
To
Article Five of
That
,
other fields of
Rights and saying "I
answer on
the grounds
of
.
able:
are
(b)
safe. Then too it doesn't command
American
Stores
states
seven
in
operates
Middle
in
record
at
$16
the rate
of
one
shares
seven
common
share for each
Transferable
held.
will
warrants
share for
stock
per
685,648 shares of its
at
stock
1953, rights to
14,
Oct.
subscribe
Go. is of-
common
expire at 3:30
p.m.
Atlantic
(EST) on Oct. 29, 1953.
expense and has raised some hon¬
"you can't eat your cake and have
region with heavy concentration
the direct way est doubts as to its effectiveness. it."
In addition, the company is
in Pennsylvania, New
Jersey, and simultaneously offering at the
person or a business organi¬ This constant search for neutrality
j
Let us take a case in point, one
does. We may be intensely has
upstate New York.
Like many same
developed some rather pallid which does not immediately con¬
subscription price 100,000
long
established
food
retailing shares to its
to our own businesses or material frequently of a statistical cern
employees, including
you people assembled here,
quite
in
loyalty
sation
they
might incriminate myself."
Many
I am not trying here to
feel sorry for your¬
selves. Nothing could
be much
more out of place and if it were in
over
prac¬
frequently
looking
indifference or clam¬
interpreted as
troversial.
2
industry, aggressive current year are showing a highly
chains have forward- favorable trend with volume for
grocery
of
to
that I
others just by
on
clear statement
matters
refuge in
Bill
the
certain
a
such
our
taking
occasionally does
amount of re¬
your
part when
and
can
to
lead
a
page
nature of this
like silence is often
individual
as
differences can not be
in
methods
selves
though any editor
even
welcome
Since
competitors.
In fact, it is problems of that sort
which
bring you together here
complete analysis, a thorough re¬
examination of our materials and in this association. Many of these
I shall discuss is
serious enough to call for a fairly
The
The
contain inferences of improper ac¬
oil industry is in com¬
and ethical hands. Says "it behooves the industry to
keep its skirts immaculately clean."
petent
reply
discreet and dignified ' No
would
members of
evidence of
(3) the social and international problems
solved when wider understood by public;
readily
more
po¬
of industry point of view.
(4) public should be led to believe
and
hot
treat¬
a
from
(
their
Comment"
by the entire industry; (2) conflicts of different
the industry should not.be concealed as they give
healthy competition;
red
which
and
Continued
people,
on
by
with
problems involved in giving proper publicity
activities in oil industry, Mr. Collacott concludes: (1) story
After discussing
to
involve
items
the items
impact
an
very nature invite editorial
ment. To many of these we
Chairman
the
that
They select
litical
COLLACOTT*
to
Assistant
one.
the industry all over
about
page
Thursday, October 15, 1953
...
aren't
so quick
nature. Now this is a big industry that is the conservation measures companies, at the end of the 1930 S 0fficers, through non-transferable
containing in a bigger contry and almost any adopted by the- Federal Govern¬ Ammcan Stores had a iarge numsubscri^i0n privileges. This ofber of old and small units which
many persons or institutions with presentation involving quantities ment and
by several of the States
whom we have serious conflicts of
were.'becoming obsolete, the reruns into pretty big figures which
in the production of crude oil; .'A ;
habilitation
of
which was
intpremployees stock purchase plan
interest.
And we do have such
outreach the imagination of our
The long history of extravagant
conflicts. I don't need to remind
rupted by the
During tte
St0ckholderS °"
and wasteful crude oil
audience. When
associates but
to
rally
to
we
a
group
you
that situations are constantly
arising between you as one seg¬
ment of this industry and other
you
groups such as major oil com¬
panies, pipe line companies, and
•others which put strains on your
relationships even greater than
those which develop among your*An
address
billions of this
or
Collacott before
the
Tennessee
Oil
Men's
Association,
Knoxville, Tenn., Oct. 6, 1953.
Mr.
about
practically step it up into
trillions or quadrillions since you
have
already gone beyond his
comprehension. The result of all
just
as
this
is
that
we
are
all
too
trying desperately to get
item
news
on
page
yet
by
talk
that you might
having to
buy
the
stories
our
while
the
of
ten
little
or worse
to tell
choosing
space
own
editors
a
often
are
splashing
^ar
production
postwar period the program of
is fairly well
modernization has been going on
known to each of you.
In order
and during the last four years 209
to deal with that problem a great
new
supermarkets were opened
many
programs were suggested,
up
until recent
of
some
lation.
be
which
Even
students
business
an
offer to sell,
or
a
an offer
the Prospectus.
solicitation of
The offer is made only by
that
end
553
legis¬ closed.
not
million'
the
of
know
while
of
the
old
units
were
Sales have increased $100
the past four years
over
the
number
of
stores
has
into
properly
the
marketing would
raise
a
hue
and
can
tive
Stores
represents
construecommitment in the rehabili-
across
this, they came into being over $50 million has been spent
for gross additions to plant and
to remedy a
situation, which, if
continued, was considered to be equipment, the funds derived
evenly
from
i nt e r n a 1
against the national interest. Some about
here is
Beneficial Loan
Corporation
NOTICE To The HOLDERS OF COMMON STOCK
Subscription Warrants evidencing rights to subscribe at
the
price of $24
per
share for shares of Common Stock of
the Corporation at the rate of one share for each ten shares
of
the
moted
holders
on
on
October 7, 1953 were
October 9, 1953.
mailed to stock¬
The rights to subscribe will
expire at 3:30 P. M., Eastern Standard Time,
on
October
ridiculous
read
accusations
cerned
with
about
which
adherence
con¬
to
these
practices.
It seems
unfortunate to read of
are
obtainable at
Building, Wilmington 99, Del.,
Trust Company, Agent, One
or
our
office,
at Irving
Wall Street, New York.
BENEFICIAL LOAN CORPORATION
W. E.
Thompson, Secretary
$25
and
million
from
the
issuance Of
of
long-term debt,
has been used to build
attempts
at *
is nothing to defend.
If the game as it is being
played
is not right, then let's
change ihe
per
from
share, about unchanged
the
and 1951.
nrorMs
for
of
This trend
rovprcal
seems
with
of
of
the
game
but let
us
not
the
presumptuous intention
telling this gigantic industry
Continued
on
page
36
$5
.
r
n
Blyth & Co., Inc., The First
Boston Corp. and W. ,C. Langley
&
Co.
are
the
managers
of
a
banking group which has agreed
Purchase all unsubscribed
s"^res\
...
.
Construction
,
for
expenditures
the Peri°d Aug. 1, 1953 to Dec.
31, 1955 are estimated at $121,300,000, °f which $96,600,000 is for
electric property. In addition $15,200,000 is estimated for gas property and $9,500,000 for common
property.
complete the construction
through 1955, it is esti-
To
program
mated that the company will re-
quire
in
approximately
addition
to
funds
$80,000,000
expected to
be provided by depreciation accruals, retained earnings, this financing and the contemplated sale
0f
$25,000,000
of
first
mortgage
bonds in November of 1953.
nnri
rect
competition
vately
or
gas
with any pripublicly owned electric
utility. Approximately 74%
or
of its total
in the
parnin«
the
current year at around
share based on 52% normal
income
taxes
appear
indict the players for adherence corporate
to rules which in
likely.
This estimate is realistic
many cases they
had nothing to do with establish¬ since the company earned at a $5
rate during the second lialf of last
ing.
year following the poor first half
However, I did not come here
rules
-n
i
j
Proceeds from the sales will
uscd to reduce bank loans incurred for construction of utility
P^ts.
■
iftw6 fiscal year ended March
The company supplies electric
reported earnings were an(j gas service and is not in di-
oo
?o'on
$3.90
year
before but substantially lower than earnings of
over
$5 per share in fiscal 1950
defense
well-known
equally
attacks
are
when there
Copies of the Prospectus
Beneficial
to
fumbling
23, 1953.
sources
dustry but many more were not. This money
They were enacted, however, in warehouse and bakery plants and
the full light of day and given as to construct new supermarkets as
much publicity as the interest of against scrapping a large number
the man in the street permitted. of old stores no longer desirable
In view of this it seems a little in modern grocery retailing.
and
held of record
laws, naturally, were pro¬
by members of the oil in¬
??/■'.
,
a
tation of earning power of this
country.
On the
fourth largest chain in the relaface of it they violate
many of our
notions of unrestrained competi¬ tively
depression-proof
grocery
tion.
But
the
Since the end of 1945
significant point industry.
cry
buy these securities.
of
while
in
you may
something
' "
about proration, allowables, hot- dropped from 1,637 to 1,289.
At 42 in a not too active maroil acts, and joint operation of -a
field.
Many of these practices if ket, the common stock of Ameriquite
This announcement is not
resulted
though
you
introduced
to
years
per
results which suffered from strikes
operating
revenues are
derived from electric service. The
franchise area covers Nassau and
Suffolk
Counties
tiguous
^
01
25
?5_5
eratmg
and
Rockaway
Po
+u
the
con¬
peninsula
in
i
months ended July
the company showed oprevenues of $62,778,000
and net income of $7,060,000
start-up expenses of the equivalent to $1.26 per average
large new Philadelphia bakery common share outstanding in the
and warehouse. Sales during the
period.
and
the
Volume 178
Number 5264
...
)
The Commercial and Financial Chronicle
'
(1431)
•;
*
■
Aim.ML
AHIGriCall
,•
be met by counter-argument
^
/!-. J
A.'
#1^1 J
A
'
\
K
tv
'
By DR. W. J. BUSSCHAU*
.
_.
Managing
"T "r them. As
"
XT
New
„
...
.
_
_
Consolidated
.
Gold
Fields
T,F.?rme<LDeSutL1V?illistSr of F^a?ceAUni?.l°f South Afri™
Co-Editor, "South African Journal,"
,
D
,
..
.
/
Dr. Busschau states
.
„
L«
-i
r
t
unassailable facts
as
»
/i\
n
'
i
ai rains
Maintains "prejudiced pseuao critics
have raised
prejuoicea Dseudo-critics" nave raised
objections. As prejudices he lists: Use of inflation
•
*
.
.
- -
extraneous
extraneous
r
as
;
•
-
At the end of the last
people
war
many
paying tribute to the
were
magnificent conduct of the British
people during the war; but the
British
them-
convertibility.'
dealt
with
in
the
of
all
the
currencies
which I
shall
international
with
difficult
current
nomir
nomic
lem
ec0_
nrohproo
and
s
wanted advice
and
assistance
There
believe,
•
change •
a
in
the
—
of
this
terms
to
case
.
nature
unassailable.
/in
x
I
are,
These
are:
,.x
,
(j) -phe amount of credit now
cailed -m0nev suddIv" bv the In-
terifational Moneta?v
Fund is
r
f rom
the
States
havior.
hp-
Simi-
Australia
u
larly, perhaps,
citizens of the
Dr. W. J. Busschau
•
no
uUniU,ead rS^teS
w
longer wish to be told of their
actions in the rehabili-
generous
tation
of
ravaged
now
in
consider
i2)
count-
nothing I say is to be renot recognizing the generous
role
your
country
has
played in postwar international
cooperation.
economic
countries
because
m
0x-
^
It
mhL
as
they
are
were
"
in
the
their
eolH
reserves
0f
to
goid
the'declared
the
^ An^
measure
value
gold
change
(i.e.
^ would
crldit
of
which
can
aoW
nto
tion of credit to gold)
the
coun-
teanswtions
uDward
of
of
reserves
currencies
official
be converted
their
ud
and/0r
through
obiect
eold-huncrv
build
in
in
the
the rela-
enhance the
terms
of
Hqufd.t°y
?f all countries and allow freer
3 e'
Preconceived Opinions
The
word
"nreiudices"
title
may
ears,
but it is not
in
sound-harsh
so
ill-will
of
want
to
or
selfishness;
it
in
the
use
preconceived opinions.
sense
I
of
objections,
and
when
these
been met point by point
My reason do
debt
always
cial
and,
,
but
.
1S
These
which
have
course,
is
"still
in the price of
been—on
thp
on
in
gold
sense of with
anyone
who quotes vague
opinions, do not unsupported
beliefs
and
whose
stand up to examination. The word version of
jhistory is legend with""American" also needs qualifica- out tradition.
Among those who
tion.
Most of the prejudices are have a deep knowledge of moneindeed un-American in origin and tary history there are no
oppoin spirit: I use the adjective sim- nents.
History, indeed, is a sorry
ply because the ideas are currently tale of bad debts, defaults and
in circulation in your country.
broken promises and of frequent
whether
I
defend
would
adjustments
tween
in
credit
the
on
theories made in money. I
States, but my reply historical
,
who have
mining
with the gold value of other
currencies
is not
a
left
unchanged.
That
view which I want to dis-
indeed, one that I would
oppose
on
certain
assumptions,
but I do not believe that having
cuss, nor,
established
that
case
one
has also
»,*AM-a-ddresSAbM ?ri! BussCihasUocitv
'New'York City^Oct? 7, 1953.
America
of
are
wish
Tf
the
But before I
come
to
deal
di-
a
declaration of interest.
While
I
the
of
use
main
increment
in
the
stock
of
mciement in me siolk oi
the3re
will
rally
fluctuate
Snd «
met
^
Under
crop.
pend
mainly
and
pro-
system
a
tension
of
credit
increase
an
whether
on
of
would
de-
an
ex-
nroduce
Conse^
in
output.
quently, mistaken investment financed
suit
through credit
in
losses.
would
When,
re-
in
as
the
force, credit
can be
expanded to
a
much greater'extent.
as
Historically
mentioned, large in-
already
in
creases
credit
valuation
of
money^
commodity
tional
have
credit
methods
meant
in
by
of
re-:
terms
the
of
tradi--
devaluation
clipping of coins, etc.
The inter-
liquidity
c-
ptee°7t
avoid, now and in the future bothinflation and deflation
by estab-
iishing
values
par
maintained
advocates
hope
more
a
that
without
be
can
default.
that
the
Its-
future
workable relation'
one attempted after World War I
which sought to retain the
prewar
relation by destroying much of
the credit and ruining
pie in the process.
-
It
h
b
these
d
necessarv
rather
t
to
make
lengthy remarks
outline
internationa^
the
many peo-
"as Deen necessary to maKec-
xi,
the
in.
nosition
lhmidhv
of
«hool
"to
manageable proportions, for this
'^ZTTcan
be
small.
Prices
fluctuate
will
natu-
physical
for
rea-
fluctuations in crops
owing to climatic variations, but
these could not be described as
due to monetary causes. If efficiency increased in the sense that
goods could be more easily produced, then prices would tend to
*al1
relahon to the stock of
money while, conversely, prices
sons, such as
de^
of
words,
culprits
system
Cassel
more
are
those
a
real
mere
even
or
was
the
confusion.
|.
.
'
depend,
||
||
-
ggg OQO
I
T ,v
'
|
■■■*■»#*
IIPAMlSilwl
....
IWliMrS
UluMlllUlfl
il
^
Shcsres
Sfllllt*#/
IN I
lliv*
|
§1
|j
|j
§1
§j
a
i
|
I!
|i
|
|j
was
of
even
helped
in
c>2
perhaps
to
could function with a system of
inconvertible
currencies
whose
would
page
.
IMiEiJ
He
on
October 7 4, 1953
|
author
Continued
'
"barbarous relic"
in the settlement
But
accompanied by some inflation,
a
NEW ISSUE
i
VAT EC
balances
under
!
•
s
anachronism.
for is
reason
barter
|
view
propagate the idea that the world
value
the
and
that
the
what
might say that gold producers will
under a barter welcome a higher price, even if it
can arise
=
promote
is
philosophers now call a
booword.
I would submit that no
class of producers has hated the
process of inflation more than,
gold miners in the United States,
Has lt not in fact meant that whileother producers have seen heir
costs rise, they have been able at
the ^same time to increase their
revenue, while gold miners have-
|iiidiiiiiiiiiiiidiiiiiiiiiiiibiiiiiiiiiiiibiiiiiiiiiiiibi
believe
I
objection. Indeed, this
an
theheadac^ofa nsmgflo
£«
credit under
once-
international
mere
and
P^7d7C70?htehecr7e^^f «
use ot tne cry
mtiation
Cred,t lJ,uler Ba,'ter Syst«m
Credit
economists, Keynes and
Keynes did with
much
Cassel.
purchase.
of Keynes and his attendants, the
subject of gold and its relation to
credit has not been buried, nor
has ^ been cursed out of discus-
Clarification by Rist
As Professor Hist has clearly
shown, there has for centuries
COMMON
STOCK
|
*
!
interna-
tory, is an impractical idea since
it implies: that the creditor countries would be willing to hold idle
book balances of the debtors' cur-
talking tonight in a private sion.
capacity, it is true that I am con-
with gold mining, and I
would ask again—as I have vainly
the amount of credit out-
ements' °U
major difficulty in a discusof these matters relates to
am
nected
\
PTf ^ tWhUl
to
redeem the paper by payment in at which Cassel and his admirers
commodity money.
assisted, and despite the elegies
rectly with the prejudices, let me
make what the lawyers would call
on
convertible into the commodity
money,
inter-
no
but
No such overall situawoefully weak—and by historical tion has ever existed in the world,
not a case for a unilateral devalu- standards there
is no test of nor is it likely to arise in the near
ation of the dollar in terms of strength other than the ability to future. Despite the mock funeral,
gold
farm
a
between credit and gold than the;
,
standing cannot fluctuate widely.
Price 15 Cents
per
^
I!
Share
|j
=
„
|
|
1
fi
|
|
*
offering
Circular from
your
investment
broker
or
the
undersigned
|
fj
—
TELLIER & CO.
|
|
1 Change P,., Jersey Ciiy 2, N.J.
Free telephone
DEIaware 3-380T
from N. Y. City: Dlgby 4-4500
g
Please send
|
Common Stock of Yates Uranium Mines, Inc.
*
me
a
copy
of the
Offering Circular relating to the
|
I!
|j
|j
||
§j
II
Name.......
=
^
H
^
g
|
=!
|
|
|
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I!
ESTABLISHED 1931
|
=
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II
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b
|
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I
than other currencies which
with skill but
man
would tend to rise with a fall m ^d
.
tional exchanges, on their internal
relation be- purchasing power.
This, in the
and
commodity light of recent and all earlier his-
my
ity theory." What they prove to
their satisfaction is that there is
a
will use
Where paper money (i.e. credit)
does not fit the other,
the
believe, too that by the
the United
standards, the United
was
and is
that this is not pos- States dollar of today cannot be
sible
since' your pseudo-critics described as strong.
There is
"attacks"
arisen
Fluctuation
have order restored in international monetary affairs.
It is
grossly, unfair to use a "smearing
technique'.' on them.
gold was a
whose use
of
of comout
use
^ouUadd that themterna- efficiency.
It
argue
The
Convertibility Brake
nupctinn
W|desPread
'
-
rhetoric
prejudices, in the
asked
one
problems
preconceived
Before I left South Africa I was
per-
an essential
modity money has not
...
A
is,
have
is low in terms of the stock al-
I nternational Liquidity View
sion
almost impossible to
ful^because there is
and a gap has arisen which is becoming more and more disruptive
of the world economy. A crash
come, which will involve
America with the rest of the world,
The sooner this danger is faced>
the better for world recovery and
returning Prosperity."
gold would raise more
than it would solve."
without question,
gold
a num-
fa"values—with the re- the fluctuation in prices of credit
with world changes in the volume through
believe that
notions
of
commodity
pered
over
duce
a
rent
mp
between
of
land to
no
is n0 change
eificiency 0f
now
nroduction then variations in the groan?. 1 can now aeal withlhe
wltn me
p3vp
bi« view
fnllowspioaucuon, men VcUiauoxis in me prejudlces
gave me nis view as 10il°ws.
rate of growth of money and of r
J
°
prpiudirps
"The dollar is the premier mon- physical production wilt not be ,
and-most successful
etary currency today but its value large and the hardships caused by
i.ne_.lirst„ a£a mosV successtui
famous
been taken
that
sense
Sf question commodity money keeps pace with
,prl,Ce.0f gold ^ere is no the growth of physical production,
bold
country
perishable supports of
critical fac- ready existing
?
-'
the whole question of the relation
rise
but
It is in this
some
unlike
our
have
nolirips
i+uP
the
a
credit allows
^mteTproduction which
because tnere are many cnt-
.
is that I believe that discussion on
credit and gold is hamby the acceptance in your
useful
life."
tK
jes—their number is legion among
the Leftists—of South Africa's so-
have
they
monetary system is that of facilitating production.
For example,
Stib?„mUtU? c°nsetnt m®n w°uJd 20th Century, is requirement of
the
take in exchange for the truly
convertibility
removed bv le£?at
?^-e'dates' wlJfJout ±aiL 1 mention is
deny
the
fundamental
points but take shelter under the
that
lasting
^
they still
not
declaration
definition of money as
thing
that
men
proper
"some
-ubusiness loans, which
wiU be repaid as our government's
est
to your
None of these points, I would
intended. I submit, has received serious chaldo
not intend to
use
it in the lenge.
What
the
pseudo-critics
sense
that it implies bias in the have done is to raise extraneous
form
a
John Locke long ago gave
between practical need.
^l,^°«^0uer"men f are "V- £
many persons
No Serious Challenge
my
sheets.
as a "re-
Government
bv reducing
in
11
' *
would
av? taken place
suit that
inadeouate
arp
tries
that
what
froolyfra^eonirdernaUonalac-
The point I wish to make
garded
Many
ecoT
desirable
times
'
they
what
are
order to secure prosperity and
high level of employment in the
future.
is
to
arrangements
I1/*
unhaDDv nosition that thev cannot
war-
areas,
wish
nomic
a
Europe and other
and perhaps
x
about
"liabilities
money which appears on the "assets"
side
of
banking
balance
who
Hflb
?eLeader
mro
then
a
much might keep without spoiling and
so
Wtat tt
e
na^t
the
is
^^conditioned by expectation of of mysticism, as Keynesians alf^ ^eF!
g+es,se; What transac- lege, but it answered a severely
now
es
u
taken
exam-
ra'ther' than foreMWorld
IJ> while the ^'oT*, 'the
t
ib
t
to
fe^ms
UafsSa° ToTonly "^Shat1 Smuts who was no mean
n7 "yUdIb
ai^ "ow onAy student of international affairs,
past oe
their
ineir
total
see^' *or what they believe to be is money; the successor
g?
reasonsto obtain a new scale ber of metals which
of remuneration.
others countries,
certain facts which in
are
discussion
a
in
United
:
Unassailable Facts
preoccu-
pied
their
of
gold
a
and
I.M.F.
money
now
*
,•
•(comm'Xv'mL^thould^ave^
V
.
ined. be regarded with
*. McCai^hy* has described
briefly refer as the
liquidity argument.
T
their
ulty towards the United States
of
literature
Indeed, what the
calls "money supply"
from
'
May I also make formed the function but which in
; a declaration of "no interest," I turn have been
discarded as they
" do not come from what Senator became too plentiful. "Too plenti-
* '
case
measure
selves had become
.
4
dollar"; the "Red prejudice" implying help to Soviet Union;'
and "prejudice of numbers"
opposing the move. Insists gold
hike would promote
'
'
against upsetting "stability of the •;
argument
whai
wool-growers
word"; contention that there is k"enough' gold" at current
price; assertion of dollar's over-devaluation; sacrosanctity of
present price;
*
•
"boo-
a
«■>.
credit.
niade to tne representations
; of farmers in the United States or
«
£
in
be inoutput
and why should their ef-
reserves relative to "money supply"; f
(2) Many countries' resultant inability to trade on international
/o\
d
v
c
ij l
account; (3) Policy of gold-hungry countries of building up
gold reserves; and (4) Increase in liquidity and freedom of
trade through reduction of value of credit in terms of
gold.
•
In any case, why
'forts to have the question
world's monetary gold
i.
terested
£
(1) Decrease of
:
names.
should gold Producers not
Author, "The Measure of Gold"
n
'
a
American
1'
iff
'
t > •
»*
»
counterpart of my re- side" of banking balance sheets, commodity money with converquest, I shall in discussing the while the accepted historical view tible currencies the
limitation on
prejudices not label them with of money relates to commodity the creation of credit
.
Director,
and
?0t by ln_sinuations about the in^gnty ;°f the person presenting
'
Altfl III© rllCfi 01 llOIQ
■
<»<<•
^Sx,?d.on some previous occasions existed in English
—that the argument presented will confusion between
mm
fclllQlCCS
A
'<•
„.
„
Address
|j
1
State
S
|
aiiiiiDiiiiiiiiiiiiBiiiiiiiiiiiiDiiiiiiiiiijiDiiiiiiiiiiiiDilliillliiiiaiiiiiiiiiiiiDiiiiiiiiiiiiDiiiiiiiiiiiiBiiiiiiiiiiiiDiiiiiiiiiiiiaiiiiuiiiiil
12
The Commercial and Financial Chronicle...
(1432)
Thursday, October 15, 1953
Missouri Brevities
both
periods.
Kansas
City
Power
Light
&
and it is interested in
use
Co.'s net income for the 12-month
additional
country
leasing
period ended Aug. 31, was stated storage.
*
♦
*
$6,389,944, equal to $2.36 a com¬
mon
Telephone Bond & Share Co.,
share, after/preferred divi¬
dends.
This
compares
with net controlled by Theodore Gary &
income
of
on
$5,519,477,
common
Gross
a
revenues
all
the
of
income
Sales
for
the
ber,
the
totaled
nine
first
months
during
company,
owned
1953,
■
283
year,
Chairman
Septem¬
units
and
compared with 274 and 2,693,
spectively,
in
the
re¬
period
same
a
have
was
the
first
half
with
a
Emhart
of
1953
as
year
■
500,000 shares of
on
Earnings
were
for
holders.
common.
before
income
tools
taxes
$1,113,922, against $899,720
period last year.
same
Sales
the
*
■
Missouri
six
months
*
*•
Service
for
eight
the
Co.'s
months
ultimate
The
of
shares
number of
stocks
new
will
that
after
the
Vice-Chairman
be
as
well
sheet
for
as
machines and
metal
working.
Billings & Spencer, established in
constructed
cost of
at
estimated
an
$800,000.
The Seaboard Coil
cost of about
mit
$1,000,000, will
per¬
tripling of production
a
over
that possible in the former 35,000
foot plant and will permit
square
the
out¬
Division to enter the field
of
shares
of
shares of
exchange
will
common,
be
preferred
325,248 panies compliment each other.
*
*
♦
642,547
and
stock.
common
,
*
-
*
*
The Public Utilities Commission
has
authorized the private sale by
1, 1953, all of the re¬
New Haven Gas Company of
maining 3% Convertible Deben¬
$1,after
The United Film Service, Inc.
tures, due 1959, of Connecticut 500,000 of first mortgage bonds,
a
common
share. A year earlier reports that for the first eight
3%% series, due 1978. Proceeds
Light & Power Company will be
the net of $817,939 was equal to months there was a 10% gain in called at 102
% plus accrued inter¬ are to be used to pay off bank
net profits as compare with a year
$1.44 a share.
est.
The issue was originally is¬ loans and to finance plant expan¬
ended
Aug. 31,
*
$872,264, equal
preferred dividends, to $1.51
Operating
riod
in
revenues
the
pe¬
$6,061,844, against $5,Operating expenses were
$3,840,137 against $3,405,751. Fed¬
eral
income
$738,500,
last
taxes
The
Aug.
31
I
balance!
investment
$32,-
$30,199,-
1.
5[i
Standard
position to
sheet
was
with
compared
Jan.
on
#
Milling
earn
Co.
is
million
a
in
a
dollars
before any of that amount is sub¬
ject
to
Federal
income
taxes,
Ralph Friedman, Chairman of the
Board, reported to stockholders at
the annual
meeting held in Kansas
./City, Mo. This is because
in
the
is
a
two
tax
which
previous year§.
carry-forward
charged
the
There
credit
operations
ter
were
were
♦
*
a
stock
share.
conversion.
♦
The directors of Central
Coke
Corp.
calling
of
be held
on
to
have
quar¬
the fiscal year ended
have
a
Coal &
authorized
special
the
meeting
•
bushels
of
storage
million
all
space,
in
stock.
common
*
*
Association
conference
by $5,000,000
real¬
ized from the sale of 25,000 shares
of
Oregon-American
Lumber
plan there will be nearly $15
share
in
cash
behind
the
months
Gas
Co.
for
31,
ported operating
399,598,
*
as
the
1953
1952.
12
re¬
against $29,652,727 for
The
latter
common
shares
on
figure
the
struct
en
B
has announced plans to con¬
The
new
John
C.
Hagan, Jr.,
MasonHagan, Inc., Richmond, Va. (For
one year).
Mark
Sullivan,
Auchincloss,
Redpath, Washington,
C. (For three-year period).
Parker
D.
&
James
Lemon
was
3,029,861
presently
r
Joseph W. Sener, John C. Legg
Company, Baltimore, Md. (Exofficio).
&
An 18-hole
be held with
low
Anheuser Busch
fgppfc of
tournament
and low
Odlin,
address
The
York at
a
held
prin¬
tercoolers
and
V i
refrigeration
com¬
ponents, has made plans to pur¬
chase Heat-X-Changer Company
of
Brewster, New York. The latter
be operated as a subsidiary.
will
Bush has also announced plans to
build a 33,000 square foot plant on
the West Coast to
tioning
and
serve
air condi¬
refrigeration
area.
*
to
manufacture
its
H-31
for
military use. : Do¬
to produce the
civilian version of the same plane.
man
will continue
Valley Gas
*
Plax
Eastern Transmission
*
and
Federal
mond,
Director
Reserve
*
Corporation, controlled by
of
the
Club
of
New
Bankers
Club
on
Oct. 21, it was an¬
nounced by Wright Duryea, Glore,
Forgan
&
Co.,
President
of
the
Club.
Two With Calif. Investors
(Special
to
The
Financial
Chronicle)
LOS
become
affiliated
Standard
California.
con¬
with
California
will
Willfams,
c
of
of
Rich¬
Hassler
&
Co.
&
and
of
with
was
Samuel
B.
Co.
.
'
-
»
1
-i
Daniel T. Oertel Joins
Gross, Rogers Firm
e-Fresi-
Research,
Bank
Investment Co.
Mr.
1.
(Special
LOS
to
The
Financial
Chronicle)
ANGELES, Calif.—Daniel
and
Ewing T. Boles, The T.
Oertel has become associated
Company, Columbus, Presi¬ with
Gross, .. Rogers,
Barbour,
' /
/ :
Smith & Co., 559 South Figueroa
Edward C. Anderson, Anderson
Street, members of the Los An¬
& 1" Strudwick,
Richmond,
and geles. Stock Exchange.. He was
Harvey B. Gram, Jr., Johnston, formerly with
Edgerton, Lofgren
Lemon & Co.j
*
Washington, are & Co. "
Ohio
dent of the IBA.
_
of
the
Entertain¬
ment Committee.
The
*
bury has licensed Hiller of Cali¬
fornia
dent
Co-Chairmen
manu¬
the
be Dr. Charles
LeRoy A. Wilbur
President
Bond
the
W.
Company,
high
luncheon meeting to be
at
ference
Manufacturing
bridge
a
with
Wednesday,
large truck, earth moving
machinery
and
bomber - plane
Bush
ladies
New York Bond Club
tires.
producer of heat exchangers, in-
for
prizes.
Franklin
a
tournament
Saturday afternoon at 3
On
up.
Douglass
*
tennis
o'clock there will also be
at
helicopter
National Oats
A
net.
cipal speakers
*
golf tournament wiH
prizes for low gross,
will also be scheduled with prizes
for the winning team and runners-
with
The
a
♦
Lemon,
Johnston,
Co., Washington, D. C.
(Ex-officio).
space in a four story wick
building and will be used to pro¬
out¬ facturers in that
Ely Walker Dry Goods Com. & Pfds.
H.
&
icker, Investors, 1281% South Dunsmuir
een,brie(r Avenue. Mr. Andy was previously
Hotel.
building will
floor
Com¬
r e m
G
addition to its West Hav¬
an
plant.
Executive
ANGELES, Calif.—James
direct A. Andy and Joe M. Hassler have
be
with.Mr. C, A.
Com¬
Doman Helicopters, Inc. of Dan-
Scruggs-Vandervoort-Barney Com.
should
made
Rubber
Res-
ervations
*
Armstrong
of $32,-
revenues
equal to 98 cents
pany
*
the
to
duce
*
Aug.
ended
total of about 20,-
each„of contain about 50,000 square
104,736 shares left outstanding.
*
a
23-25 in¬
clusive.
000 square feet of floor space.
The
Should stockholders approve
a
shift basis in
stock.
common
the
Oct.
its
Sul¬
Springs,
Virginia,
West
Coal presently
has in plants of the former Iiockanum
$6,200,000 in cash and Mills in Rockville. The company
is presently operating on a twogovernments,
the figure
having
hold
White
phur
of
swelled
will
at
Central
been
South¬
Group of the Investment
annual
excess
election
Puget Sound National Bank, will
BALTIMORE, Md.—1The
eastern
*
officers,
mittee:
Reno
Group to Meet
Bankers
Oiin Industries
Texas
Southeastern IBA
by turning in $50 of de¬
plus $4 in cash for four
*
Miss.
before
calling half of the outstanding
Manchester Knitting Mills has
shares at $38 a share, in moved
operations from a plant in
liquidation.
Buckland to space in one of the
31,
15
or
common
Aug.
*
The corporation has
1,
on
In addition to the above
To Hear Reno Odfin
bentures
to shares of
the previous 12 months' period.
with net earnings in excess
of $250,000. In the 1952
period the Net income after taxes amounted
company had earnings
of about to $3,157,985 or 96 cents per com¬
$125,000 before depreciation. Thus
mon share,
compared with $3,200,.the current
year's earnings are
951 for the 12 months ended
more than twice those
Aug.
reported a
year earlier.
Dec.
$109,950 through
remaining bonds
converted
Jan. 14 for the purpose
31,
;
be
to
The
of
Laclede
that
been reduced
can
stated,
advised
reported
common
$1.11
or
earn¬
satisfactory in the first
of
the
for
$139,300,
*
against
Chairman
b? Stockholders
been
were
now
are
ings,"
available
of losses
gives the company a
"million-dollar cushion before
taxes
Dec.
ago. After all charges, including sued
in
January,
1949,
in the sion.
contingent expenses, the earnings amount of $5,722,900 but has since
to
$724,500
(
plant
828,641,
559
ambihated
compared .With
year.
total
On
♦
was
were
524,806.
*
A.
the Committee has nominated for
Spring Divi¬
Angeles plant.
building, constructed at
new
Richard
—
Moore, Branch, Cabell & Co.,
Richmond, Va.
000 square-foot Los
The
L.
Secretary- Treasurer—Roderick
sion of Associated Spring Corpor¬
ation has moved into its new 90,-
a
Wilfred
—
D.
Manufacturing and
1869, is located in Hartford where hot-wound
springs
made
from
of it employs about 450 in the manu¬ metals
over
a
half-inch
in
the three classes for the two new facture of
hand tools and forgings. diameter.
The former plant has
classes, namely the new preferred The tool lines of the two com¬ been sold.
standing
and
Public
income
net
first
$6,309,943, against $5,479,156.
were
;
for
hand tools
be
Wilbur,
Baltimore*
Bigger, R. S. Dickson & Co.,"Char¬
lotte, N. C. , *
0
Connecticut Brevities
ferred, 60 shares of $4 participat¬ standing 100,000 shares by Oct. 14.
ago
and ing preferred and 16 shares of Each of the directors of the former
a further
company have agreed to deposit
improvement is expected class A common.
in the current quarter.
Peck, Stow, located
A petition for the appraisal of their stock.
Net income of the company for the value of the company's shares in Southington, has been in busi¬
ness since 1785.
Upon completion
the first six months was
$383,923, has been filed in the Court of
of the purchase it would be oper¬
equal to 64 cents a share on the Chancery of Delaware. This is the
ated as a subsidiary of Billings.
outstanding 600,000 shares of com¬ normal precedure for the deter¬
Stow employs
some
650
mon. In
of
the
value
of
the Peck,
the like 1952 period, net mination
workers and produces mechanics'
of
the
Was $284,720, or 57 cents a share shares
dissenting stock¬
in
compared
A.
Boyce,
Goodwyn, Jr., Goodwyn & Olds,
Washington, D. C.
of 7% first
ings
&
ago.
year
as¬
Of the
$6,-
were
LeRoy
—
Bros.
Md.
serviced 2,810 wholesale accounts,
Shareholders of Peck, Stow &
outstanding 49,174 shares
preferred, 1,459 shares Wilcox Company are being of¬ Owens-Illinois Glass Company, is
371,978, against $5,466,607 the pre¬
vious 12 months.
of $4 participating preferred and fered $14 a share for their com¬ reported to be readying plans for
78,437 shares of class A stock, the mon stock by Billings & Spencer a plant, warehouse and research
Union Wire Rope Corp. reported dissenting number Sept.
22, in¬ Company. The offer is contingent laboratory in Morris Township,
sharply increased sales and earn¬ cluded 1,123 shares of 7% pre¬ upon receipt of 75,000 of the out¬ New Jersey. The new plant would
taxes
Stein
Vice-Chairman
recapitalization plan
consummated July 15.
t""
f*
for the ensuing year:
„
class A
and
sented to the
Expenses
$32,053,863 to $36,359,842. which
from
Federal
preferred
stockholders
common
$44,451,-
were
during
(Mo.)
September
The
Supply
Auto
Western
increase of 8.6%.
or an
Co., has announced that virtually
a
earlier.
year
525, against $39,475,232.
rose
$2.05
or
*
month of
$14,479,000,
against $15,524,000 in September,
1952, or a decline of 6.7%.
Co.
as
share
of
Sales
terminal
and
corresponding period of last
,
*
*
•**
t
j
dividend re¬ this year aggregated $133,637,000, folk, Norfolk, Va., has made the
$230,000 for compared with $123,094,000 in the following nominations for officers
standing. Preferred
quirements totaled
will
be
annual
held
business
meeting
during the confer¬
ence.
A
(Special to The
DENVER,
Committee
consisting of W.
CarroL Mead, Mead, Miller & Co.,
Baltimore, Md.; James H. Lemon,
Johnston, Lemon & Co., Washing¬
ton,
With F.I.F. Management
D.
C., and W.
Investment
Peyton
Corporation
of
Johnson and
connected
ment
Financial
Colo.
—
Fred
H.
with
Chronicle)
Norman
Nielsen
F.I.F.
Corporation,
T.
are
Manage¬
Sherman
444
Street.
May,
Nor-
& Pfd.
CONNECTICUT
Tenn. Production
SECURITIES
Natural Gas & Oil
Wagner Electric
Bought
—
Sold
—
BRAINARD, JUDD & CO.
Quoted
75 Pearl Street
SCHERCK, RICHTER COMPANY
Member Midwest Stock
Landreth
Bell
Teletype
SL 456
St.
Louis
.
HARTFORD, CONN.
Exchange
HARTFORD PHONE
Building
2,
Mo.
"7-5291
NEW YORK PHONE
HAnover 2-7923
Garfield 0225
BELL
L. D, 123
TELETYPE
HF
197
Number 5264... The Commercial and Financial Chronicle
Volume 178
(1433)
nerable"
Bomb-Proof Investments and
also,
companies.
add
tnat
The Securities Outlook
States
event
by
of
this
that
Smith, after discussing decisions which investors must now
make in adopting an investment program, advises those who
do not yet have ,a satisfactory amount of reserves to make
market
bulges
so
to clinch
as
profits and thus have cash available for bargains.
market's irregularity now provides opportunity
undervalued
Investors
faced
with
sions, the
can
two
>.important
These
distribution
between
ferred
to
ticular
bonds; and second,
securities
Let
hold
to
preferred
re¬
1
detail.
bonds.
this
some
"
when
peaks
stocks
Great
minimum amount of one's
a
investment
.
in
common
imum
care
funds
set up,
as
should
stocks—that
min¬
a
in one's program.
For
,
that
to carry
year
one
out this
theory because
cannot be
sure that the peak
prices has been reached
of stock
until
stocks
that
have
there ^does
chance
that'
fallen
low
so
not'seem
much
will soon go
back to their previous highs. Fur¬
they
thermore, there is reluctance
on
the part of many investors to sell
while
stocks
are
high because
they
afraid
they will lose
appreciation through further
are
some
price advances
do not
like
and
to
pay
besides
tax
a
they
on
the
long-term
gain,
particularly
the gain is a large one.
•
if
in
the
conceivably
of
course,
funds
two because
term
bonds
bonds
such
could
there
it
is
do
a
ever,
For
ex¬
ample, pur studies show that of
1,000 better-known stocks, 660 or
66%
are ' still
being traded at
quotations
below
corded
1946,
in
Average
1946
;
is
high.
the
still
way/ above the
rise since mid-
The
1949 has been
highs re¬
the Dow
while
highly selective and
stubbornly concentrated in
rein¬
nority
.
further
.
of
popular
issues.
popmar stocivs nave
in price so that
loot quite high
These
biu
oeeii
of
many
in
mi¬
a
up
them
relation
to
that
have
been
bid
so
up
sociation deposits or shares.
We
conflict
between
high, there have been many stocks
theory
believe, however, there ought to whose
earnings and assets ad¬
practice has to be met with be
some
diversification
among
vanced notably in recent years.
courage to take action when com¬
your savings banks and savings
Their intrinsic values rose higher
mon
sense
tells you
that stock and loan reserves so that if
you
and higher, but the trading public
prices are in their upper ranges. do not find
it convenient to call
has passed them by—so that today
One of the valuable functions of
upon any one of them for money
Babson's Reports is that it helps
they look very attractive by al¬
in a hurry, others will be avail¬
most any statistical measure when
you to
exercise the courage to able.
compared with the popular "blue
take the action which your tetter
Income Bonds and Preferreds: ships." Therefore, we are inclined
judgment indicates you ought to
—As to income-bond
have
teen
enjoying
high
very
period
a
business
activity
of
for
the field
at
ited.
From
may
present
expect
investments,
very lim¬
is
experience we
medium-grade
past
the
to believe that in
whatever
range.
Some such is¬
however, can be included
where continuity of income is de¬
present the market is down about
sired and where some risk of price
10%
from its high earlier this
moves can be accepted to achieve
year. If the stock market follows
lected
high-value stocks.
sues,
not
high
a
activity
trend
At
and
of
business
corporate
expected
our
within
railroad bonds to fluctuate
a
earnings
over
In the
of preferred stocks,
case
ficult
to
very
bullish
words, it
rience
have
In
market.
seems
anticipate
other
expe¬
than
weakness
some
a
sensible to
more
that stocks will
more
strength for
are
means
a
As
the
to
of investment
precise
funds
classes
should, of
■
distribution
between
■
of
course,
ferred
quite
stocks
consider
va¬
securities, much
depend upon the
"
stocks will rise
trend, but
we
the
the
few
a
where
risk
There
good
against
•An
address
Babson's
by
Conference
Mr.
on
Smith
at
Business
the
and
Investments, N. Y. City, Oct. 6, 1953.
»
ties
some
bargains.
profits
not
excessive
ties
ahead
5V2%
in
the
mar¬
a
more
sus¬
neg¬
will
be
United States
were
to be bombed
In other
words, avoid the stocks of "vul¬
by
an
alien
enemy.
be
for
the
investor
who
any
of
not have his full quota
protection
your
stocks
add
to
of
common
that
issues
some
to be undervalued.
appear
Normalcy
Mr.
Rukeyser maintains current readjustment is primarily due
to cessation of jbuying in
anticipation of higher prices due to
money depreciation on the one hand and shortage of goods on
the other.
Predicts money and credit will be
demand for
plentiful and
housing will continue.'
CLEVELAND, Oct. 12—The key fort
to
the
economic
in
trend
the
return
a
to
stilts
to
under
per
market.
Hotel
the
Mr.
an
the
at the
affirmative
decisions must rest
desire
a
ture
"This
well
as
the
and
other
by
for
an
products.
been
During
interim.
the
replacement of
new
of
is much
fashions.
At
old
more
The
new
functional
goods
In a well
national
out, and
in
design,
replacement of durable
better adapted to the
are
(Special
to The
Financial
Irving
joined
has
A.
teenth Street.
Due February 1, 1955
Maturity
joint and several obligations of the twelve Federal Land
issued under the authority of the Federal Farm Loan Act as amended.
trust funds under the statutes of various
.
•
'
States.
,
•
4
•
'
r
-.
'
-
100y8% and accrued interest
offering is made by the twelve Federal Land Banks through their Fiscal Agent,
a Nation-wide Selling Group of recognized dealers in securities.
with the assistance of
\
.
Macdonald G., Newcomb, Fiscal Agent
31
October 14, 1953
Nassau
Chronicle)
Street, New York 5, N. Y.
■
■
the
Harrison,
The Bonds are eligible (or investment by savings,Ipanks under the statutes of a majority of the
States, including New York and Massachusetts. The Bonds are also eligible for the investment of
This
are
pointed
With Richard Harrison
Richard
phase of the national ef¬
..it..
he
SACRAMENTO, Calif.—John G.
Not Redeemable Before
the secured
matter
conditions of present day living.
2%% Consolidated Federal Farm Loan Bonds
are
a
houses
as
Dated November 2, 1953
are
do
the
housing with
Federal Land Banks
Banks and
read¬
present,
than
$75,500,000
The Bonds
high
a
of
old housing
and make
cence,
exhausted.
a
on
episodes
said, the public would tempo¬
for
Flexibility
"As
employed
rarily disobey the law of obsoles¬
Administration Promoting
value
fu¬
the working popu¬
as
was
he
improved
makers of soft
long
as
would
demand
foreseeable
the
paired and employment curtailed,
customer
builders
home
such
for
justment, when confidence is im¬
confidence,
on
balanced and healthy
economy,
that
lation
changing theme must be
recognized
of demand for
for
level.
family standard of living.
/
pointed out that
population growth and
better living. He in¬
of
continue
shortages of goods, on the other.
and
sup¬
reasonable sup¬
in
be
Rukeyser
dicated
Savings
Henceforth
free
a
that the
appears
big promoter
the zest
the
of
It
will
tempo
before
Ohio
seeking
housing has been the accelerated
conven¬
tion
not
in¬
ply."
News
Cleve¬
land
is
but flexibility and
se,
credit
Inter¬
in
new
ply of mortgage-money and other
commentator
Service
evident
are
becoming
that the
is
It
ground,
changes
either dear money or cheap money
Rukeyser,
address
inflationary
solid
fiscal
Administration
economic
national
the
touch
and
creasingly
ley
the
to
way.
by
Merryle Stan¬
for
off
get
and
monetary
here today
declining
on
present
for
to
buying opportuni¬
which you can get a
to
going
are
New Issue
are.
If cumulative
and
on any
available
money
There
excellent
some
Return to
do believe they will
pre¬
do
we
reserves
sales
some
of their
some
least
and conservative securi¬
reserves
We do
high
such
•
„
*
however,
yield of 5%
market.
preferred stocks are
needs
of
the individual or the
purchased, even though some div¬
objectives that he has in mind.
idends conceivably
may
be "de¬
For instance, the investor who is
ferred. you may expect that the
primarily interested in long-term
full dividends will be made ud
appreciation or long-term growth
later.
One would, of course, not
and is not in need of current
in-j knowingly buy a preferred stock
come
might very well have the;
where a dividend cut was evident,
larger portion of his funds in se-:
but out of a list of medium-grade
cure
reserves,
preferably shortpreferreds, one is likely to include
term government bonds or savings
a small percent which may defer
accounts.
The object of holding
dividends
under
severely
de¬
such
funds
would
be
to
have
pressed business conditions.
money available for the accumu¬
Common
Stocks:—As to com¬
lation of security bargains as they;
appear .from time to time.
We mons, we prefer to avoid those
feel that investors in this group stocks of companies which would
te
hurt
t
badly in the event the
riable
'
that
are
drop of 10% in the
price of the preferred.
yet have
sudden has been building up his reserves.
inflationary The market's irregularity in re¬
psychology or a war-like turn in cent years still provides an oppor¬
the international situation. Your tunity for the investor who does
against
outbreak
new
yet
basis
time.
The Individual Program
i
say
than
sufficiently stabilized to
warrant buying the very highest
grade preferreds. A shift, for in¬
stance, in the yield on preferred
stocks from a 4%% basis to a 5%
can
we
make
do not feel that interest rates
we
how
not
liberal income.
duringjihe period ahead, it is dif¬
see
protection
the
market bulges in order to have at
style trend—the factor of obsoles¬
cence, before the physical life has
wide price
fluctuated
for the last two years.
range
clinch
sales
"over-priced" issues are far
likely to suffer wide and
breaks
ket has
for
should
goods will be accelerated by the
tained
mar¬
replacements
as
stocks
common
ket decline may come the popular
a
time and that the stock
some
program
do
satisfactory amount of
a
of course, weed out earnings, assets and dividends. As
and Loan As¬
Merryle 3. Rukeyser
the desirability of investors hold¬ our
clients
know, we advised sociation.
ing
savings
accounts
some
of profit taking in
many of these, by
"The
current
which they may have built up
readjustment,"
suggesting sale of at least half
over
a
period of years. Neither commitments and sometimes the Mr. Rukeyser said, "is primarily
a
retreat from fear buying based
do
we
object to
a
reasonable sale of entire holdings in them.
on
amount
of
expectation of further money
money
invested
in
In contrast to these popular is¬
some of the savings and loan as¬
depreciation, on the one hand, and
not,
This
we
for
United
and
The Babsonchart shows that
Investors who
under-valued stocks will be your
difficult to find any good values.
issues
be
unex-
among over-priced issues. During
the period ahead your holdings in
:
The stock market since 1946, how¬
sues
take.
and
in
drop
"
a
shift toward higher interest rates.
We
this
investors'
customary for all stocks to ap¬
preciate so much that it was very
—
higher yielding short-
issues
of
the
which calls
stam¬
a
•*•/* Selectivity in Stocks
prefer
not likely to vary enough in
price to cause any loss of prin¬
cipal. Furthermore, money from
in
from
it is prob¬
war
cal of the whole market.
we
government
companies. In
there are excellent
further
a
Conclusions
been
States lies in
has been very irregular.
Quite plainly the big bulge in the normalcy.
issues.
Dow-Jones Industrials tnat took
This opinion
have to
place after mid-1949 was not typi¬ was expressed
are
vested
areas
securities of
-or -
words,
has
In past bull markets it has been
stock
is, bonds maturing within
short-term
cities
It
"
open up
attractive
will, of
reserve
to
the
market.
ploited group that we have been
making recommendations for that
able securities to get out of them.
in
funds to pick up
these
short-term
In practice, however, it is difficult
hold
to
lo¬
against
easily
in the rallies.
pede by investors holding vulner¬
Types of Securities
be held
is,
companies
able that there would be
income
be used in their selection.
at -their
are
of
of
pending threat of
stocks with
and/or
drop
reserve
some
In theory, investors will agree
that
re¬
hand, the investor
stocks
Each
of their
income point of view to
series of breaks
a
recover more
alternative investment opportuni¬
ties today. In the event of an im¬
enough good buying opportunities
that investors might use a portion
Distribution
:
in
funas
common
market could
par¬
at
discuss these in
us
of
the other 35% invested in income
distribution between
as
stoeks and
time.
other; commonly
is
other
badly in need of current
good income
other variable type
or
the
on
hand
one
70%
to
up
income might hold about 35%
his funds in reserves and 30%
investment funds
the
have
On the other
is
it
good
as
utilities, municipal bonds of vul¬
investment
who
First, the
are:
reserves oil
and stocks
assets
of
fail¬
you
normal
I.'-
/
.
that
a
cated outside the vulnerable
as
acquire
serves.
policies.
an
securities
nerable
now
their
deci¬
success or
investment
decisions
should
are
of which
consequences
their
of
always,
as
determine the
ure
:
now,
sure
than
better in
they will
to part
vulnerable
of
be
from
mean
imperative
more
not hold
hold
stocks.
common
but
not
Furthermore, it is just
Says stock
to
is
amount of them.
of their
some
do
securities
situations,
do
Mr.
it
hold
and
which would
We
war.
avoid all
Director of Advisory Department, Babson's Reports
on
cities
undoubtedly be vulnerable in the
By EARL L. SMITH*
sales
might
avoiding the bonds of the larger
United
some
We
recommend
we
13
<
stafF of
2200
Six¬
14
(1434)
The Commercial and Financial Chronicle
<i
■
f
««
ff
«
■
wilderness;
AlVWVgJMAftftft
*
g\
■
-
lftVASlIltAltt
AlKVUalAllUiftl
a.a
m
UnnOTlUmtlAC
UCVaVAI
c^mon
i
.
•
.
threat
to this
a-
..
by economist,
seen
constituting
as
•
transferred
.
transferred
imminent
course)
industry.
,
vestors
should
newsprint
the
lack
of
cash
L
s
1
1
tunities,
evidenced
by
current
dividends
each
1 yptus
Continuation
surge
and
§
o.so
0.13
of
the
in
I
ital
gains.
trend
\
Ana
aviliahil
is
found
in
Sive?rrelat"ed
Canadian
an
industry (U. S.
the
com-
panies
included) in which production has
practically doubled in
'on
ators
the
past decade; the price of the
since World War II; and
dividends over the past six
years
Still yields in excess of
8% are
indicated at current stock
prices,
product
tables
to
mav
some
the
come
as
bit of
investors
smug
border
a
that
stock
JTTQ111QTlll[f
Angio-Nowfoundiano Development Co., Ltd.'
TCon.soiidated Paper corp.. Ltd
1—
tc?own
x658
681
(8)
Northern
Paper
Co.__
Price
Bros.
Co
Prudential, give
a
■■■■■
in
*Not
this
list
are
""
the
194
174
172
187
193
& %
«s
85
lHhT7rf?iiv0Pon0^VfCI^10in«?AgUfres ?.rex?vaiIabLe:
tons);
and
spruce
Fails
Power
WBfcii iliTl^
823
90
99
163
ill
111
161
Bowater's
try their efforts
were waging
ewfoundiand Pulp & Paper
to
you
figures
owned
by
EXCHANGE
Abitibi
include
Howard
some
Smlth
minor
very
Paper Mills,
items,
nowned
4
Paper
Co..
Ltd.:
Toronlo
Exchange.
5>oc*
Ltd.:
i^S2r.NK£S£rni D.ev|lop.ment Co
Canadian Stock
Exchange.
Section)
Toronto
Ltd"
'
Stock
New
Exchanje^^''
stock
Crown
stock
Bros.,
York
Donohue
Corp.: Toronto
Exchange.
Ltd.:
Montreal
Great Lakes Paper Co., Ltd.:
Great
Northern
International
Paper
Paper
Co.:
Co.:
Montreal
Powell
Price
St
Rive,
Bros.
To
&
i
\a
t
Lawrence
American
stock
Stock
Exchange;
Canadian
Exchange;
New
Toronto stock Exchange
ct
t
t.
p
h
Toronto
Stock
m
>
York
the fact
in
that
facing
now
Exchange;
Stock
e
,
Montreal
Exchange.
Cana.
the
in power.
world
the
have
dollar
to
Abitibi Power
&
cSSSSS"?™?"c?reDV'!ud
Coderavl? NewsprtaTco
crown
corp..
Paper Co., Ltd..
Great
Lake-0Span^'Yo~"i~td"
Lakeo Paper Co.
Ltd
J?"""'"
Great
Northern
international
Paper
Paper
Co._^
,
Powef^Rive^1 conti!t^t Paper Co'
i,S!c
Price Bros.
et.
Croix
Jt
&
■
expanding volume of short-term
government debt. Its problem is
tional debt
not
start
in
a
inflationary
the
inflating
further
the
Ltd
Co
iifhrd" Paper Mills, TnV
npr^^if ufd inc—
gouthiand
:
|N'onfcvenr%a.w
paid.
*wone
ever
11
long time to
COme.
SInltial
dividend.
yOU
*
t$0.67
t$l 00
Si on
«S1
0.75
1.00
L80
2!oo
2
s
?
\!'S
-6?
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200s
2'2?
2-2=
to.85
ti.oo
ti.io
ti.55
ti.eo
ti.65
1.75
1.00
1.00
1.00
1.00
1.00
1 25
t0'50
T0.38
tl 0°
tl0°
-1-20
L20
1.20
1.60
1952
°'60
tl.60
29vi
57
I
further
believe,
the
in
re-
the
14
86
18'/4
4
casing lite insurance is ex.
Jfem^iy
" +h . y %
Got of a,ma?/11iude ,that+ c^ld
^011^
has depreciated^the
tnaesta°0"aiconua^ dePpreciate in the
« °r
8.3
3 00
3 00
3 00
3 00
52%
5
7
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2 00
2 00
311/8
6 4
2.oo
2.oo
2.00
39
fapf
IS
•
'*
Often
f#' Eddy (E' B'» Co' stock'
hene
"
T nT IiSp
2-00
*
,
in
thin?
benefit
futlirP
Qrder
in
the
th| dollar.
]iant
^av
your
D3V-
future
offget
tQ
purchasing
power
No matter how brilinvestment
achieve-
benefjcjaries
do|]ars
specified
the
in
of
number
your
policy
that
it
^usmn, a very simple conclusion:
Whatever we
the
a
Said—SO
hac
heenmp
ft
Often,
'
in
rlirhp
a
tAd)usted !or stock dl"dend6:
'5.5
.
~that the. W1™
insurance
^
investment should be to
.
Produce
.
the
maximum
income
consistent with safety of principal.
fpvhn1rWc
,..
;
can do to help keep
stable
and
Will
be
of
hpnpfiHarip.;
far
than
myhOlders and DenetlCiarieS tnan
we are likely to achieve
in ^ the relatively restricted realm
nf
the
porninP
01 earning tne
of dollars
Life Convention, Chicago, III., Oct. 9, 1953.
•
\
'
maximum
maximum
on our
number
numoer
investments.
n
Treasury
«r.-s»u«s.„'-AmirtSS
.
dollar
greater long-term benefit to pol-
5.1
available.
T fnTafvoiir
4^
JOJ10^e(**
?u If iift anything
gg
T2.50
•
It
T2.50
N.A. Not
could^ depreciate in me
}
e
contractsa}waysi, say .that ou£ P°^cyin holders welfere is .paramoimt m
qfatpmentc
t+
2.80
n.a.
ey-
first
contribution by positive financial
/or
T2.00
n.a.
aCcost
i<;
inflation?
for
action rather than by mere words
NA
2.80
n.a.
Can
net
no
t2.oo
n.a.
thp
ind ole
Of
What can
"me
117/
2.40
n.a.
&
what
many, many years, we
the life insurance business are in ail uui upeiduuiis
u we
00
23 8
8 7
a position,: individually and
this, and we certainly do, then we
06.006.0
7.-, '
lectivelv. to make a constructive njus.t inevitably come to one con-■
on
ti.6o
' —'
rpdl]pp
f
chanees
Frankly,
Approx.
1.60
~
h
menlg
prevention^of
Recent
*ft
ti.oo
0.75
xt"~
®
investment men
aS
L inrrPpS
the nation's economy?
for
us
foVct.T^
1949
2 00
You
ari<;Wpr
oncIrned
money.
Among them,
Cash Divs-
^
t$0.33
mY
+u„
n
™J ®
fh
meiltS m3V ^ ^ y°U Ca" d°
3
N.A.
t()92
t
v
nance^ommitteeTand8VOU^boardS
nance committees ana your Doaras
ation, and they will-be with
Exchange;
10.57
of
Would
of
1948
Int?
t0.53
ero-
some
LTurn y! % a'^mT%! o'r l%?
tread-
Supply
further
that
investment officers have towards
$0.75
x-5?
that will
manner
Hlill going again by automaticallv
there
ti.25
t?7
n"
Co.,
paper
.
And last> but by no means least,
Federal Treasury is on a special treadmill of its own that is
con-
ti.20
Co
the
dollar
built-in
N.A.
IS'i?
t0.13
the
in-
in the
earn
our situ-
very
$0.50
/?
offset
to
0f
have to
Powerful
sti11
3re
$0.50
N.A.
future
additional
much
vou
our economists predict?
Special
on
How
win
come
What has all this got to do with
the obligations you life company
however,
to.55
■
:::::::::
zellerbach
Donnaconna
1947
policyholders or their benethrough investment oper-
y0Ur
our
that
N.A.
Paper Co., Ltd
Angio-canadian Pulp & Paper Mills, Ltd.
have main-
you
purchasing
the
inflationary Potentials in
i
r,
com-
power of
^be jjfe insurance in the hands of
sion
Federal Treasury
business-de-
a
we
Unfortunately,
Montreal
common stonir nivi^A
1946
our
have had
would
you
Could
power.
ations?
Newsprint Companies-Dividend Records and
Current Yields
•corporations-
ing
incidentally, perpetuate the posi-
the dollar, at long
last, is becoming an honest and
SOUnd dollar,
T
m
Stock
do,
US
I know
ficiaries
^
American
And
As investment men, ask yourselves what
action will preserve over-employ-
Cf"o,ewith nahcxE refinance the naOurselves g the prospect J? attempt n
to
f
Exchange;
year.
to earn for the life insurance
ment; perpetuate the boom; and,
Stock
(Curb Section);
,
I don't.
the
of directors do to assist
North
I
and
cline, and that
TorontoStock Change (Curt Section),
Corp
Ltd.:
Exchange.
time in the hope
'C"rb S'""'"!
T^l^k
lI*
Co
Exchange.
are
a
beneficiaries don't.
full
in
de£iation, not inflation. I sinExchange.*cerely hope, as of course all of
Stock
standard.
gold
^
As a heritage of the fiscal follies
of the forties, the Treasury is
are telling us that the
peak of the faced with an almost super-human
business boom has passed, that task in refinancing a colossal and
Toronto Stock Exchange; Canadian Stock
Exchange.
American Stock Exchange.
"
Paper Co':
stocfe
Stock
ahead, we may expect
living to rise at an
Sional economists and Others who
Toronto stock Exchange (Curb
rise
many
of
rate of about 3%
r
maintain
^ predictionsCaUft0
atten«™
the
of many profes-
S"'ck
Zellerbach
ap-
losing-.battle stress the word "hope"—that such
a
protection
Exchange (Curb Sec-
Moalreol
we
Canadian
any
SlocA
E,chans.:
!
Anglo-Canadian Pulp & Paper Mills,
tion); Canadian Stock Exchange.
to
interrupted,
tained
"Why
say,
the
Although
been
policyholders them to inflate the money supply
has not declined significantly during the past several months. Also,
that the cost of living has stabil-
along with newsprint.
by Eddy Paper Co., Ltd.
LISTINGS:
Power
1952.
0ffse^ the erosion of the 1940 dol-
by the
ini]theU^alfe0fU1953'You'can
point
JProduetion
less,
Now> U is-'perfectly natural for tion of the political party that is
CO.,'
requirements from the
In
cents.
jar ^-0 j^s present 53 cents purchas-
to
insurance
purchasing
Instead,
face of inflation.
fipruee Fans is Jomuy owned by icimbeny-darfc
corp., and the New York Times
company*5 a l0ng*term COntraCt t0 pu,chase a11 ltS newsprint
Nothing
which is not automatically re-
coun~
life
the
panies you represent in order to
j,.
in
From
fr°?2 e*cesf,v« expaf«»"
92
III
159
"•
by other corporations)
con-
a
and he pic- our money managers and our govtured how the ernment have tools Which permit
197
83
(o-ned
job.
better
up
Treadmill,
pape? Co?'Ltd.^anSiai'wMitrSaoM1®0
&
very
tie, "Life In- have a monetary and banking set-
HHHk M^Wmi
S
% ^33 %
9
98
in
a
a
Ln f 1 5 u.,°,5
«o
this
perspective
in
1940
now
and go across the street and get calm.
401
N
~
rise
impressed. He
is
801
of
importance
by nearly 10%, and continued to
has
chose
iHKs yIJI
surance on the
404
we
1951 alone the cost of llving rose
average
64
774
to
that
is
—where everyone, if he doesn't They look upon this prospect of a
like his job, can tell his boss off declining
dollar with
apparent
St »? wli4 I1?
following companies
.
over-employment and boom times
To
339
want
like
should
approximately 53
to
^1
SI£"
HT mK/Mm d,esc^,pHve,ti" Parent,y- sh»uW be tolerated. We
759
I
of the dollar has declined
remember
vividly
how
m u c h I was
63
81
'
in
since
power
cost
m
'392
able
Inflation
years
60
393
do
Policyholders Suffer
the
?56
165
Paper°Miii& ?nc""~
shown
broader role
a
the
56
709
I
tive—particularly
of this
149
78
the
law is that we should always have
50
689
be
desirable goal in broader perspec-
the popular interpretation
December
157
383
Ltd
however,
.of 1950,. and-1
830
394
?r°v!rnPaPn Co'"r"fT—
kt'
tsouthiand
862
nana
and
challenging and the responsibility of promoting well-known economists — taking
disconcerting "maximum employment, produc- note of the inflationary potentials
speech. It was tion and purchasing power." But _ confidently predict that over
727
157
What
mm
111
687
Co':, Ltd::::::::::::::;:::
&
716
111
will
we
minute
one
measure
aid debt refunding operations by liberally purchasing
new Treasury issues.
|
of
68G
later
income.
A few days before 1 became an for instance, is a law entitled
official of my company, I heard "The Employment Act of 1946."
Carroll Shanks, President of the It charges the government with
shnrk
349
oa?er. Cn
Powefi rIvw
673
backs
our
ordy continue this,
•"" - -""*
lor
HS
% Vi
N.A.
tEddvhlv BR°iS'rntd/iir
42
46
GrSt ukS P^r ciris::::::;:::;;
n! St
toreat
y
/
Company
.
exchanges
•
2™i«SPconrVCO::::::::::rr ^39
TDonnaconna Paper Co., Ltd.
or
mill problem in meeting maturing debt and urges life com-
panies to
border
^4 Ni76 ^84
177
n.a.
on
we can
which aids in prevention of erosion of the dollar and
thereby benefiting policyholders.
Reveals treasury's tread-
oner
n.a.
167
n.a.
ourSelves
suggest,
Insurance
If
invest
can
our new money at 4% rather than
we
presumably should
as one
-Production by Years (1,000 tons)'
1947 1948 1949 1950 1951 1952
4TTGMC
A11°NS 1946
Anglo-Canadian1 Pni^erArCPono!!d*ATM"~TTr J**2
,3
-
we
tinuing potential threat of infla-
*
•crtppnn
without undue risk
Not
MttUll
Qb_
place.
against the background of
North American Newsprint Production
,
J JSCfil
begt
market
with safetX »f P"nciPal' Mr' Anderson points to
'of
smith
the
Picturing the objecti/e of life insurance investment as something more than producing the maximum income consistent
which
a
the
at
in
tainable
to belittle the advantages of attaining a satisfactory investment
.
1
.
estate'mortgages, and
^
_
C^mlvv
President, New England Mutual Life
newsprint
both sides of the
our
is
Dat
By O. KELLEY ANDERSON*
figures.
either
??fety easy to meet our full then
of principal is correct reit
say^
upward
include
ex-
etc.
taxes,
change rates,
ll
til
Multiple Listings
It
trader interested in juggling
the
%
the
Canada should
American
the
Such may offer thought food for
_
nrndnetinn
North
scene
200 shares at 31/8.
-
f
overall*oppOTtlities'b6Although
HnmiS
to the degree of
completely
responsibilities or opportunities
under the present circumstances.
sooner
yield'into
risk.
Here is
the
course> translates a 7%
a
net 0f
a
handicap
Harold j. King
Lawrence shares between the
on.the latter
Stock
High for the day
—
upward
A JV| applSe* to" {hl^Th*
PWfe- * WBM
ap-
York
Exchange had three trans-
8.8
of
I wonder, however, if that really
measures
If this objective of achieving
eighths of a point in the price of the largest income consistent with
newsprint
a
8.6
if §
equities in
This
differential of three-
50 shares at 50%.
date saw
cur.
dividend
Reinforcement
^°n residerds
field
the
general
same
'
,
-
1.20
1.60
march of the production
common
New
trend would mean, of
course, cap-
;
the
Z Z Z Investment Ofiicei's Role
Donohue Bros.
Grnat Lakes Paper-^
/JH
stock
&
Montreal nrice differentials
odd lots,
was 51%, low 50%. The Montreal price amerenuais, oua «hs,
Stock
10-i-
of
that
25 shares at 50; 75 shares at
and
50;
It opened at 51 %, and
51%
.
since
year
to
|
pi o-
auction
ciosecj
Northern, which has paid
1910!
f
i-
*
as
this
yield is indicated
V
?
irenas.
Great
on
gold
may
|f
oppor-
!1 1
the
5.7%
a
—Dividends—
sub-
v
ment
It
glamour
Even
but
offers
11
and
in-
way,
overlook
not
industry.
glitter
?.nd ,,01*>
it
Canada
were:
St
the
on
Exchange.
.
eyes
bear
may
in
In chronological order they
Thursday, October 15, 1953
*bere were 2,100 Montreal an
merican
x
Sp0nsibilities and do a good job.
International Paper changes. Or.the: former, thestead- ^ we have^^to do is adopt a polfin
round
lots
of ing consisted of 100 shares at 30%;
icy of acquiring high-grade secu(in round lots, ot
g
rities
real
^n Oct.
shares of
■
Casting
actions
price day.
stocks
siocks.
common
Impressive upsurge in production and dividend trends outlined, along with attractive yields now available.
Neither
peace, nor war,
thereon
picture
By HAROLD J. KING, Ph.D.
,
that
watching. As indicated below, Canadian exchanges predominate in
KAGkOII
V|f|lllllUUIftlUa
the Canadian
alone
let
differentials
«
at
be found in
to
are
_
LAftAnljlY! And II N NAWCllflllt
VHHHUIHU
UMU' Va »#■
...
Refunding
•
-
,,
Problem
,
A J««| earlier 1 mentioned that
the U. S. Treasury IS now- On a
,,
■
.
Number 5264
Volume 173
The Commercial and Financial Chronicle
...
(1435)
rapidly-moving
Let
own.
treadmill
expand
me
its
of
tnis
on
a
because it is the phase
firmly believe we in tne
little,
where I
insurance
life
unusual
tect
an
opportunity to help pro¬
policyholders' best inter¬
our
This
ests.
have
business
where
is
greatest
our
policies
of
the
getting shorter.
suitable
is
bank
They
long-term
have
though
Federal
well
not
in the
Reserve,
with
respect
both
our
They
partisan,
cannot
have
now
the
in
Federal
cannot
help of all of
dollar,
despite
the
have
told
the
Treasury
unpopularity. But time again
that
we
stand
for
the
job
alone. sound money. We have told them
do
us
it
without
who
the
believe
we
could
be
counted
material assistance in
as
a
upon
for
refunding
«
!
terms
our
of
thinking
with
of
the
sonable
securities
entrust
sistent
whose
with
our
terms
are
investment
con¬
re-
*.
S
*.» '
welfare
narrow
companies.
in
welfare
sists of something more than
pious
and
1 i
-
the
own
program, provided we are offered
con¬
f
quirements.In making such state¬
ments, we were not thinking in
statements of approval.
Washington,
Reserve
our
do
they do—and that help must
in
from
and the Federal Reserve time and
they
political,
necessarily
officials
business
risk of political
securities,
strongly criticized.
become
Responsible
preserve
to
its
on
1 f
Treasury, leaders who have
shown the courage to take
steps to
the policy
as
issues.
terms
our
of
to
us
the
broad
the
can
that
rea¬
properly
very
Continued
a
savings they
on
page
M
SMOKING PLEASURE
non-
investors, more is becoming
for ownership by com¬
eligible
mercial
banks.
This
process,
therefore, is steadily creating add i t i
1
o n a
potential inflationary
fuel.
According to the latest Treas¬
statement, the volume of U. S.
Treasury
debt
due within
one
ury
in $83 billion.
year
it
alone,
year
has thus
be
To
the
past
debt
In
increased by $25 billion.
little
a
faced
graphic, dur¬
more
with
refinancing
than
year ago
short-term
the
ing the coming
is
One
billion.
$58
was
the Treasury
year,
the
terrific
million
$300
task
of
average
an
of
of
more
maturing,
debt every single business day.
<In 1955
of
additional $23 billion
an
debt will
government
in the
and,
The
more.
will have to
mature,
that,
following
year
billion
$18
Treasury
fast in order
to
keep the annual volume of
maturing debt and the volume of
run
very
its
daily refinancing task from
getting out of reach and becoming
unmanageable.
How
is
of
ume
all
this
vol¬
enormous
maturing short-term debt
going
to
easiest
way,
refinanced?
be
The
the Treasury's
from
standpoint, of course, would be to
sell
short-term
new
commercial
banks
the
Federal
the
necessary
the
new
the
as
supplv
to
reserves
sunport
that would
dollars
to
have
to
Reserve Bank
be created
to
issues
and
have
Leading Products of
in the process. But.
Treasury and the Federal
P. LORILLARD COMPANY
Reserve have so often pointed out,
during the nreceding Administra¬
tion
well
as
Worth Her
under the present
as
Administration, such
method of
a
refinancing the national debt is
inflationary,
and
unsound.
It,
of
in Tobacco!
Sound
A
policyholders,
our
objective of the
Treasury today is to refinance the
it falls
as
will
that
due
in
neither
be
MURAD
HELMAR
Smoking Tobaccos
The announced
debt
EMBASSY
Policy
Money
In 1619, a group of young English girls were welcomed with
by the bachelors of Jamestown. The Virginia
open arms
manner
a
settlers had agreed to pay a marriage fee of 120 pounds of
inflationary
deflationary, in
a
manner
that will give more orderly spac¬
ing to maturities and that will
was
place more of the present debt in
the hands of long-term non-bank
From colonial times to the present, tobacco has flourished
nor
investors.
The
the
which
broad
tobacco for
objectives
on
stressed
this year are exactly along the
lines which have long been ad¬
vocated
by
the
life
insurance
business.
can
Treasury
Now
The
execution
designed to
honest
much
what
see
of
the
preserve
dollar
and
these
ment
and
tional
the
refinancing of our
is also easier to
boom
curtailing
or
expansion
inevitably
it
make
to
"■
in
a
products have
the
na¬
size
ac¬
the
money
difficult for
from
tends
Stimulation
a
of
won
MICRONITE
ever
Chewing Tobaccos
BEECH-NUT
BAGPIPE
^
HAVANA BLOSSOM
countless friends: KENT cigarettes with
filter and OLD GOLD in the
popular king
length. Since its introduction Kent has received the
nearly 200
reception of any
new
brand of cigarettes
years
products
are
backed by
of tobacco experience. P. Lorillard Com¬
pany—and Lorillard stockholders—are confident that this
experience that
be
with
VAN BIBBER
BETWEEN THE ACTS
merchants, Lorillard knows
Lorillard's many fine tobacco
and
others
monetary
to
up
HEADLINE
of the past 20 years.
supply
pepole
new
most enthusiastic
a
inflationary
some
democracy,
affair.
curbing
all their plans.
out
know
agement
^
of
hurt
more
carry
We
involve
grown
brought smoking pleasure to Americans
As America's oldest tobacco
complish in theory than in practice.,
which
Cigars
what smokers want. In the past year alone, two new Lorillard
rearrange¬
debt,
Policies
...
FRIENDS
INDIA HOUSE
MURIEL
popularity started with pipes
P. Lorillard. Company has
UNION LEADER
policies
sound and
a
Its
precious it
fair bride!
BRIGGS
since 1760.
is,
policies,
scene.
a
kept growing through chewing tobacco, cigars and
tobacco
we
unfortunately,
difficult in practice
more
wife. The "golden weed" was so
the American
cigarettes.
in theory. One essential part
than
of
let's
a
considered fair trade for
has
about these objectives.
do
Cigarettes
*OLD GOLD '
KENT
therefore, is certainly against the
interests
Weight
rich past
man¬
will continue to build future
success.
one-way
business,
,
wages, and profits by monetary
expansion and low interest rates
is
always
restraint
traction
is
popular.
through
and
By
contrast,
monetary
firm
con¬
interest
rates
always unpopular, usually
caus¬
vigorous, vocal political and
business opposition. For proof we
ing
need
go
events
this
back
that
year.
no
farther than the
have
The
taken
mildly
place
restrictive
AMERICA'S OLDEST TOBACCO MERCHANTS
•
of
were
policyholders—
realization
part of
We
are
Less of the debt
for
rates
have both been
of time,
maturities of the national debt
as
Treasury
interest
We
Because of the passage
the
to June,
obligation lies.
and without giving any considera¬
tion
to
the Federal deficit,
the
of
up
15
ESTABLISHED 1760
*Regular and King Size
1
31
The Commercial and Financial Chronicle-.;
(1436)
:16
Another growth
Interesting Growth Situations
whose
stock
is
selling
around $3 per share.
This com¬
pany is on the threshold of the
Partner, Heimerdinger & Straus
have
demand
something of
Corp.,
By CURTIS J. STRAUS
Members of New York Security Dealers
situation I par¬
ticularly like is Vacuum Concrete
when
to
as
made
them
titude
so
guessing
a
game
Street
has
balance
will
be
from
achieved. Some estimates put
Mr. Straus
significance of investing in good sound
growth possibilities. Points out con¬
examples of this type of securities.
stresses
crete
Motor
The
blue-chip
at
situations.
selective
have
stocks
time
one
just
of today
growth
It is wise to buy some
stocks
and
their low
at
selling around $3V2 per share.
future of the company holds
The
great
Doman
promise.
For
tomorrow,
engineers are designing a
helicopter
large-scale
them
believes will be
Small
grow.
is
certain
to
which
attractive
an
it
an¬
military
investments
swer
in
This
industry particular¬
ly since no denials sweeping
enough to carry conviction
have been forthcoming. All
the "dope"
eventually,
stories of how,
motordom's in¬
dependents will have to get
together to be able to compete
on an even footing with the
With reference to the company's
and
to
commercial
pardoned for doing little un¬
transport as well.
It is also en¬ earnings, the trend is shown by it
der a situation where only a
gaged in the expansion of uses having incurred a loss approxi¬
through the introduction of twin- mating 11c per share for the fiscal bold trader would operate.
*
*
*
engines which will enable
the year ending March, 1952 while at
i t
s
t i
u a
ons
have made
of
some
greatest
the
for¬
transporting
Of
tunes.
c o u r s
feel
one
should
his
all
in
eggs
basket.
i
t
n
and
should
leave
suf¬
a
of
amount
ficient
from
sizes
forced
lligent
e
passengers
over
cash
in
the
bank, invest partly in bonds and
in dividend
Price
cones
for guided
missiles
and many more.
both the company and
holder.
the stock¬
paying stocks^f well
established
tail
and
glass
plastings.
companies.
most
However,
have the gambling
persons
spirit.
For instance, growth situ¬
ations:
One should invest in such
THE MARKET... AND YOU
companies and just forget about
it for awhile, as there is quite
often
sickness
might take
a
than
velop
first
expected.
Even
if the growing is slow, many times
it
grows
rapidly
more
after
the
majority of stockholders become
a
bit disgusted.
The individuals
getting the inside information of
the company,
thereby benefit, bv
accumulating the stock at a very
low
price. One should not forget
that the majority of dividend pay¬
ing
stocks
7%, while
stock, selling at about $3
might,
se11
^t
be¬
year
a
pendent
We
a
to
was
open
tipoff,
provided by the market itself
some
brewed
or
very
constantly.
When
automobiles first appeared
in the
market, the public thought is was
too dangerous to ride in such a
vehicle.
However, with a little
foresight, the ball started to roll
very
quickly and people
the
on
idea
of
was
not
the
general
too
public
wonderful
they
got
of
caution
be the
to
seems
a
their
car
was
things
ceive
visible
no
you
from
limit
litho-
on
the
and
expect
may
Chrysler
re¬
Corp. in the
future." If you look into this com¬
pany's past, you will note that the
sold
stock
in
low
as
$5 per share
as
1932, and thereafter
two
for
for
1953
At
one.
at
$64
split
was
the present
there
has
low
rather
to win any
now
us
the
papers,
look
future.
at the
We
the
in
for instance, about Atomic
is changing sub¬
marines, airplanes and helicopters
to
entirely new defense of our
country. Another field is in con¬
nection w't.h guided missiles. Pre-
casting of concrete is
recent
a
compara¬
development.
In¬
formed contractors, architects and
engineers
possible to
have
save
found
as
that
much
of the concrete structure
more
To
tion
have
as
it
to
in
Doman
the
30%
over
the
recommenda¬
whose
the
stock
There
*
*
few
the
of
was
In
fact,
some
official
recent
of the recent statements of what
a
times
each
only
in
was
also
some
stir¬
sell out
as
soon
the latest
as
huge post-war expansion ex¬
dividend is assured. A grow¬ penses, and the high wage
in the equally-laggard
levels of today, to such an ex¬
store stocks, the direct result ing list of issues have shown
sinking tendencies as soon as tent that the impression had
of a pickup in
earnings for
sell ex-dividend
and grown that break-even points
R. H. Macy that helped the they
Radio
Corp. was a rather were now at a prohibitively
stock.
This
issue, too, has
quite a few rungs to climb prominent illustration of this high level, leaving the com¬
sort of action this week. The panies especially vulnerable
since the report came at a
televisions generally, despite on any future business de¬
time when the stock was at
the
lowest
the last
get into
million-
price recorded in
decade.
#
*
the
last
the
cline.
predictions that this
formance
the
turning in
to
put up with recurrent
It has
on
the
usual
each advance. World Series time
made them
somewhat
moves
expanded interest.
*
m
*
Bullish Solo
Some
rely
side
of
dead
classifications
early in the week by
Boeing Airplane. Here, again,
by C. & O.
there has been
plenty of
*
on
*
tion despite the fact that it is
microscopic pretty well realized, at least
market
of
the board.
had
that
suddenly
when
the
road had to halve its dividend
in
1950.
*
crumbled
The
was
restored
and
nine-month
Petroleum
shares
have
share
$32.95
per
June
on
payable
share
on
shares of capital stock
The net asset value
outstanding.
30
$33.30.
was
Aggregate unrealized apprecia¬
There
has
been
little
to
choose
among in the steels,
motors and chemicals, at least
a
fully last year in their market action. Sharp great overall accomplishment.
*
*
*
earnings of production cutbacks to get in¬
$4.45, against the $3 annual ventories back in line with
The same wait-and-see at¬
in value of securities owned
tion
.
duPont which have been tak¬
plethora of uncertain¬ ing contrary positions on suc¬
cessive days without any
dividend ties and have shown it
amply
faced
per
was
15
the 360,000
*
between Allied Chemical and
*
cents
15
Oct.
measurements
was
among economists, that the
impressive, but solo prime plane makers cannot be as far as market action is con¬
strength i n long-depressed allowed to go through the cerned. For most it has been
Chesapeake & Ohio after a riches-to-rags routine of pre¬ a case of backing and filling
good earnings statement. This vious decades, at least not as from one day to the other and
carrier is slowly rebuilding
long as the threat of war is within the groups a sort of
the
investment
strength rotation such as that
standing it still so very much with us.
rather
Domi-
&
nick, based on market quotations
and after deducting the dividend
the
once
a
company
Dominick
by
managed
30,
Corp.,
investment
end
closed
Sept.
at
Shares
National
of
1953
cau¬
for
value
ASSET
NET
Issue Rotation
*
comfort
on
the
of
Value Lower
Asset
have
go
center
*
mild
those who
each
on
yet to
those
National Shares
into their holiday
erratic on a day-to-day basis
weeks has been a
gift-buying cycle. The group,
dampening
and even in some cases on an however, is somewhat more
constructive
sentiment, too,
because decisive moves are hour-to-hour basis, as was il¬ comfortably above their
far more likely to come on lustrated by the rather wide year's lows than many other
two
this
necessarily at any
with
They are presented as
those of the author only.]
around
and
not
Chronicle.
Whatever
pickup
do
coincide
time
in
expressed
views
[The
article
per¬
short of
somewhat
expectations.
a
Aircrafts have put on a fair the sales
reports showed, marshow of stability but have had ketwise
they didn't respond to
couple of profit-taking
a
all
would be their Golden Year,
have been
$
The Erratic Aircrafts
industrials
the
across
share mark
back
purchase growth stocks, I
mind such companies as
Helicopters,
sort of popular fol¬
that
struggle
is
conventional methods.
illustrate
is
the
Energy, whirh
tively
*
Depression, and it
available
spirit, the majority opin¬
ion
my
present
read
September
the carriers decide to
-
Let
the
lowing has been casting a pall
over the bullish
feeling. Until
idea.
and
than
lows. The refusal of the rails
been
illustrate
to
*
Technically, the market has
acting well in that it is
toying with its recovery highs
enough gains in dividends and invalue
*
been
*
creased
"extra"
as
ring
so
graphed advertising brochure:
"There is
of the
pat¬
won't get too far uphill alone.
The That volume has been
able to
said
horses.
handsome
a
*
thor¬
were
Chrysler Corp.
in
month
It
car.
thing to have and
off
President
T^st,
a
long after that, that
oughly convinced that
a
sold
were
owning
tion
rate
by the
up
de¬
try, with new and successful ideas
developing
tion to the merger is not clear.
come up with as many as a
I
*
*
*
couple of hundred companies
expected to come up with a Breath of Optimism for Steels
For the steels Alleghenyyear-end extra payment. Such
lists oversimplify to a degree, Ludlum was the week's best
since year-end extras have be¬
acting, in part because of the
come somewhat standard fare
concentrated attention given
and the payments in many to the
company after a group
cases have
grown fairly "reg¬ of
analysts were taken
ular" despite their designa¬
through it on a tour and also
year
concerned. Until
which
not
grow,
either peace or war.
progressive coun¬
on
are
fields
many
continue
will
pastime
Nash f situation was that the
culling out candidates for
large v Dutch holdings were
year-end "extra" dividends
the
issues, but
is in full cry at the moment. confusing
whether in outright opposi¬
Some of the statisticians have
.
$6 per share
are
The inevitable Fall
of
one
tern.
There
STREETE
guessing on the lack of de¬
velopments in the Hudson-
payments. because of an official state¬
undoubtedly will spur
day less this hopes. But the stock action is Certainly the declaration of ment that the company would
week because of the Monday still conservative since it is regular extras has lost much stay in the profit column jeven
of its ability to spark mar¬ if
holiday but that, apparently, well below the best price that
operations receded to a rate
ket action recently.
left ample time for everyone
of as low as 65%. This is one
prevailed in all but one
The stock market
for business
two after.
or
market influence. And the
a
"Extra" Candidates
break¬
recently for half of
daily the best price reached in the individual movements seem even point would be in this
to bear the earmarks of in¬ industry.
a growth
grist of news, comes along to 1946 bull market.
Most other steelper share show what lies
*
vestors so cautious that they in a k e r s have stressed the
*
*
ahead, general
somewhere
pav
tween 4% and
By WALLACE
of growth and
it
little longer to de¬
Big Three were negligible as
of
fiber rein¬ present fiscal year.
of
the
Opportunity will always present
stock is about $5V2. Their prod¬
itself.
Many companies have hit
ucts include housings for radar, on new ideas and products which
loop and detector antennae, nose resulted in tremendous profits for
one
Any
person
of
the end
March, 1953, the com¬
pany shows a
net profit of 16c
Another company, Lunn Lami¬ per share and already has a net
nates, Inc. is in the field of pro¬ profit of 13c per share after taxes
ducing articles of various shapes for the first five months of the
that
not
put
re¬
congested metropolitan areas.
I do
e,
new
remains the puz¬
rumor
zle of the
quirements
good, sound
rumored
a
with Nash disinte¬
grated rather completely.
merger
-
were
on
more
construction
selective stocks having
even
son
in its history, as as much as half a year of cur¬
ecpnomical methods in
tailment ahead of them before
are
now
recognized.
Precasting is a comparatively re¬ they achieve a satisfactory
cent development.
Vacuum Con¬ working arrangement but the
crete
Corp. has
developed the
experts in this field are quite
technical "know
how," showing
sure these extreme views are
economy,
speed
and
superior
quality in construction work. Be¬ overly pessimistic. Naturally,
sides
the
precasting
operation
any cracks in the price struc¬
patents, their Vacuum Lifter, re¬
ture in the meanwhile will
sults in increased earnings to the
company which is increasing very change the picture radically.
In short, the issues could be
rapidly.
their
in the
motors
prevalent
kept the
doing much of anything
the run-up in Hud¬
and
greatest growth
Association
Thursday, October 15, 1953
.
compared with cost amounted
as
to
$3,369,840 at Sept. 30, 1953.
income
Net
from
the
of
dividends
<
and
corporation
for
interest
the first nine months of this year
amounted
to
$290,209
and
com¬
with $293,209 for the corre¬
sponding period in 1952. National
Shares
percentage of
securities
held in Sept. 30, 1953 compared
pares
with
those
June
of
the
held
this
year
at
the
are
of
following tabulation:
Sept. 30,
-
Type of Security
stocks
Common
Preferred
—-
stocks
June 30.
1953
1953.
77.7%
78.S5i
.4
3.1
;
3.4
3.4
Govt,
17.7
13.7
.8
.9
Bonds
U.S.
end
shown in
Cash,
(net)
obligatiehs
receivables, etc.
_—.————-
,
Volume 178
Number 5264... The Commercial and Financial Chronicle
(1437)
Yet
even
new
"long-playing." The fact that
Victor
for
"dumb"
we
tunities in next decade will
from selling
William
L.
Brockton, Mass.,
time
shoe
when
To train
zipper.
When I
The
are
in
newspapers
Help
Wanted
today
test
manufacturer,
everyone
the clock watch¬
or
comes
not from
advertise¬
"technicians—electronic
are
door
bells
and
Salesmanship offers the
Hence,
rewards; but the road is long and
rocky.
I
were
a
(Special
tedious
courage
a
task.
and
difficult
It
requires
are
CHICAGO,
Financial
Chronicle)
shoes, he
.<
hooks
went
Co.,
Street. He
was
122
great
A.
M.
West Forsyth
Kidder
sales
previously with Grimm & Co.
Southeastern
Securities Corp.
and
has
the
a
conven¬
tion he offered
a
prize
People
of
$10,000 to
any
salesman who
would solve
the
of
problems
these
One
Roger W. Babson
making
high
;
salesman
nswered:
a
"Quit
Like to Talk
dan¬
hooks.
gerous
shoes,
and
eliminate the hooks altogether. If
you will make a line of attractive
low
shoes, I will sell them or re¬
sign."-Mr. Douglas accepted this
radical wager and produced the
line
of
low
shoes,- which this
salesman quickly sold. Gradually,
There
almost twice
are
as
many
tele¬
.
phones
there
as
ten years ago
were
the whole industry turned to low
shoes.
Most of
I often
his
at
son
At
Us Are
visited
that
home
time
Dumbbells
Thomas
in
his
A. Edi¬
New
Jersey.
company
As you
was
manufacturing the only phono¬
graph "records,and these were
waxed
to
cylinders.
that
He
would
that it's
say
day flat records
would be used; but he could not
me
new
enthusiasm
"Babson, I
am
other
and
not
a
salesman.
men
and
advertising agencies will
determine
—not
only an inventor,
of
bursting
to
now
America is
the
in
a
per
hundred
before Watt developed a
engine.
It was discussed
years
steam
university professors; but no
before had the persistence to
sell the idea to the public. This
•
The
that
lieve
who
men
one
these
saw
them
sented
never
were
gin,
men
were
been
phone
discouraged by
More
any¬
and
saying "no."
Long-Playing Records and
Johnson,
friend,
My
founded
the
Victor
still
who
Phonograph
people
were
five telephones,
big
buy
a
a
seems
that Americans have
idea of how the tele¬
new
are
using the telephone in
more
ways.
reason
is value. A few pennies
telephone call. The
has gone up
Company, was not an inventor,
a
salesman. He believed the
period, the number of
be used for getting things done.
can
more
One
Zippers
five people
about ten.
It
gaining
sales¬
opportunities, pre¬
to the public and
were
six.
population; faster than the number
of families.
and Fulton's
building of the steamboat. I be¬
cotton
In the last
telephone business is growing faster
than the
Whitney's invention
of
true
the
now
same
now
are
one
of
are
cent! Where there
there
by
was
every
Telephones has increased nearly 100
that steam
me
power
Where there
But, in the
"
for
really growing!
1943, there
Bell
working."
used
in
the land.
across
the population has increased nearly
20 per cent.
United
in
Edison reminded
city
up every¬
same
wuuvwwwvyv..'s^
are
'guts' and vision to get these ideas
was
and
town
ten years
the Patent
in
make
And it's much the
America
fact, the whole
world, prosperous for 50 years if
there
were
enough
men
with
and,
States,
the seams! New homes,
at
buildings going
new
sales¬
There
inventors.
inventions
Office
The
the future
we
enough
on
evening, you'll probably notice
stores,
where !
any
community
your
some
amongst the
trade to sell flat records. He said:
get
drive around
fine fall
a
cost
of service
far less than most other things.
but
flat record idea had a future,
he
was
whole
money
zation.
coming
advances in
to start the Victor organi¬
He used to complain about
its usefulness
"dumb"
how
The
but,
obliged to travel over the
country to raise enough
willing
to
people
risk
even
were,
years
will
see
still greater
telephone communication and
to
the
public and the nation.
un¬
their time,
enthusiasm and stick-to-itiveness.
due to
salesman
who could not be discouraged and
would never take "no" for an an¬
swer.
He was much like Henry
His wonderful success was
the
fact
that he
was
a
Ford.
BELL TELEPHONE
LOCAL
L<
to serve
Nationwide
SYSTEM
the community.
to serve
of
Smith
the
was
First
formerly
Securities
the nation.
to The
Financial
been
added
to
Chronicle)
the staff of
Louis C. McClure & Co., 615 Mad¬
ison Street.
these
At
W.
TAMPA, Fla.—Samuel G. Hibbs
was
shoes.
Mr.
officer
(Special
which
.
on
g e
Louis McClure Adds
associ¬
&
with
very much
disturbed
about
Chronicle)
e o r
Company of Chicago.
'
f
111.—G
Co., 208 South
at a
high
wore
Noyes & Go.
Financial
La Salle
Street, members of the
New York and Midwest
Stock Ex¬
an
ated
opportunities
no
M. Kidder
dore R. Biggs has become
and
tremendous persist¬
There
The
The
JACKSONVILLE, Fla. —Theo¬
salesmanship,
very
to
to
Smith has become associated
with
David A. Noyes &
change.
Joins A.
today, I would take
in Business Administra¬
Successful
richest
ideas which
new
(Special
wearing out shoe
greatest opportunities and
the
David A.
dictating letters to a
secretary, but by ringing
leather.
man
however, is
ency.
of
G. W. Smith Joins
sitting
chair
a
blonde
drawing boards and
on
tubes.
course
tion.
carry
opportunities
selling the
now
young
Opportunities for Salesmen
many
real
Douglas of
the world's "
was
Success
in
for
now
"electronics" is much like buying
stocks when the market is at an
with
ments for
ideas.
new
pencil pusher
er.
next decade will be in connection
the
engineers—mechanics." These
When
largest
come
il¬
nical education.
at the Massachusetts Institute
Sunday
oppor¬
in Business Administration for the
re¬
high school graduates are
crowding the colleges for a tech¬
a
due to wise salesman¬
were
Another
after!
successes
ship, and concludes that
are.
zipper but we continued to
button up our trousers in the oldfashioned way for 25 years there¬
the result of good and
per¬
sistent salesmanship. Cites ex¬
are
that
is
all
a
of the
contending "most
dumbbells," finds great¬
money-making opportunities
invention
old-
As
all-time high. It is another illus¬
tration of our dumbness.
was
as are
of
the
sold
government orders.
of Technology 50 years ago an
instructor outlined to me the idea
Babson,
amples
years
fashioned records also shows how
lustration
est
today in connection with
sult,
long-playing records. Vic¬
original records could have
been
By ROGER W. BABSON
of
needed
tor's
Money-Making
Opportunities
Mr.
Johnson did not vis¬
ualize
17
The Commercial and
18
Financial Chronicle
Thursday, October 15, 1953
...
(1438)
•i,<
lateral
Market
Banking and the Securities
By A. HALSEY
City Bank of New
Vice-President, The National
Mr. Cook
covers
the field of
York
commercial banks' relationships
advisable.
amount it believes
tribute and his
Loan
The Day
I
the securities industry is an
loans
brokers are
to
there is
that
isn't.
This
the
is
is a loan that is made
for all practical purposes on an
unsecured basis to a broker early
,
assigned to me is against these loans a diversified
list of securities.
It is not cus¬ in the morning, which will be<
"Banking and the Securities Mar¬
to
pledge large single repaid before three o'clock that
kets." Banking alone is a subject tomary
of
securities.
Thirdly, afternoon. It is actually secured
about which books are written, so blocks
I shall confine my remarks this banks require a margin of about by a lien or chattel mortgage on
morning to the banking of the se¬ 33% at the making of the loan the securities which the broker
minimum margin re¬ picks up with the proceeds of the
curities industry. I notice by the although
The money you have loaned him, and
brochure which has been sent to quirements are about 25%.
additional
8%
permits a little specifically can be used for only
me that you have been around the
room for the market to drop be¬
two things: (1) to pay for securi¬
Street for over two weeks and I
ties
for
which he has
already
think I may assume that you are fore a call for additional margin
The
topic
be¬
dealer. Per¬
difference
the
with
familiar
tween a broker and a
it is an over-simplification
to say that the banking of the
securities industry divides itself
becomes
nicely into loans to brokers
to dealers. Essentially
very
loans
and
is
difference
the
loan
is
bonds
and
that
broker's
a
secured
loan
a
by stocks
belonging to the bro¬
enable the bro¬
ker to finance margin accounts. A
ker's customer to
the other hand, is
a dealer with the deal¬
securities as collateral.
■dealer loan, on
a
loan to
er's
own
what Mr.
mean
Market
banking viewpoint call mon¬
the
it
say
is,
banks
Reserve
In other
of
words, if
$100,000,
we
make
a
at
pleagea against this
$125,0000
his
because
better.
or
in
trouble
no
initial
in
the
of
excess
pick
a
banks'
re¬
you."
and that in
essence
Lending
not
25%
to
zero
or
on
so
on other securities
lesser market or that
In
sold
known
is
a
whole
a
one
syn¬
by agreement to
pur¬
issues
new
already outstanding issues to
owners.
The loans
jointly
or
the
that
are
are
or
new
made either
severally. In the first
joint loan—each deal¬
instance—a
is
er
responsible
for
the
with
jointly
the
others,
loan
in
second, each dealer is respon¬
only for his fproportion of
the loan. Syndicate loans as such
usually do not run for any great
length of time. When all of the
and
the
sible
securities
at the
sold
not
are
ex¬
syndicate agree¬
ment, the loan is generally paid
of the
piration
each
and
off
The
is.
alone, but to
themselves
interesting thing
call money rates were governed
about a day loan is that the charge
by the New York money market
for it is only 1% per annum.
It and the
day-to-day money posi¬
was 1%
back in the 1920's when
loan
that
largest
syndicate loans. This
as
chase and distribute
Historically,
rates.
the
dicate of dealers who have allied
Rates
Loan
to
as
loans
for
loan that is made not to
dealer
of the
Call
Now
time
to
perhaps
volume of any category are what
50% margin, or more.
other words, you would lend
it,
time
From
is
only 66% of the market
price he paid, his
capital representing the balance
of the purchase.
day
call loan
or
.
account
a
or
3V4%,
carry
money,
Syndicate Loans
;
particularly well known may
value
bank's
a
to the first philosophy;
minority subscribe to the last.
a
be¬
on
on
Most of the banks in New York
to be paid.
therefore
varies
portfolio, and
subscribe
the dealer
en¬
a
a
require
If he knows
is what
rate.
back, add to
comes
should pay full
general run of quality securities.
have
then we'll
he will do
enough,
.well
you
are soon
substantially
securities
you
Cadillac and
the
for
check
margin
tween
drive to the dealer where I'll get
dorse it over to
securities
to
securities that
The
or
his investment
in
has
dealer
the
still further, the
going to inventory
carry it until the
is
issue
market for it
so. v
high-grade securities
process of distribution, top
municipals or short - term
the
in
Ford
you
which
plicable
have received the money
the Ford and
up
obtain
and
price, meaning no margin at all.
These margins of course are ap¬
your Cadillac, so you say tc
him, "Will you lend me $2,000 to
The
ments to his customers have been
that
one
can't get
You
to.
capital
Carrying
dealer who
new
month.
a
this
great
a
completed,
be
to
for
run
lesser
a
a
his loan are sold, and he requires
financing to clear them, we do not
require too much in the way of
margin. We may ask a mere 5%
margin, we have lent the purchase
for
doing
require¬
first
on
is
reasonable time, the loan
a
might
generally required on the
Street loans.
If the se¬
curities
you
the
is
until you
the broker pledges
securities and is/re¬
has
broker
well
come
loan
in
to maintain the value of
$133,000
that
which
in their regulations, but it is
loan clerk's working conception.
loan
subject to im¬
mediate demand — to call — were
once known as call loans—or from
Loans to brokers
may
Federal
what
or
a
Webster
is
credit
Supposing
of
regular
have just sold
thing about margin. To any loan your last year's Cadillac for $2,000
cierK, margin is tne value of tne and you have bought a new Ford
securities m excess of tne amount
for $2,000. You meet a friend on
of the loan. Now this may not be
the
way
to
the Ford agency,
the securities
Call Loan
that
bonds.
and
Right here I want to say some¬
quired
Longer A Real
No
Signifies
Margin
the
What
haps
within
Now, the margins that are re¬
quired on dealer loans vary, and
again I'm going to be a loan clerk.
You start with
the 25% margin
contracted, and
(2) to pay for
loans which are secured by stocks
necessary.
business
of
amount
day loan.'
A day loan
these loans.
deal
the Street readily the financing to do
throughout
used
good reputation, can do
a
form of loan gener¬
one
ally
in buying.' arbitrage
tion, thoroughly experienced, with
that all
secured, but.
about to tell you
was
acumen
excellent distribu¬
house with
A
brokers and dealers in their business. Points out banking for
interim job and its importance lies
in facilitating the functions of the securities dealer and broker.
Describes the various categories of loans based on securities as
collateral and the factors which determine interest rates on
,
v
what is called a
on
and
customers,
of financing
Reveals complexities
with the securities markets.
j
COOK*
know,' charge 2%%
know, or we should
We
not to him but to
belong
short-term
carry,
whether the
further, that his reputation for business deal- :
his experience in the collateral is government bonds or
his firm abides by the provisions ings and
stocks.
F«r the most part, these
of Regulation "T," his bank, gen¬ Street, which for our purposes, is
loans will run or are permitted to
character.
erally speaking, is then exempted
run for a week or 10 days, and on,
The capacity to repay in terms
from the provisions of Regulation
some
arbitrage loans where the
"U" and may lend him whatever of the dealer is his ability to dis¬
his
down his
underwriter
takes
proportion of the unsold
securities
his
for
account,
own
making
thereupon
arrangements
for
carrying them
individually
In years past, call money was quirements for many years.
tion
of
the
New
York
banks. rather
Brokers'
loans
are
demand call
than
allied
with
other
as
a medium
for adjusting
money
sometimes went to Wnen banks lend
money to com¬
dealers.
V
bank reserves and as a secondary loans; that is, a bank can demand 20%, and it was 1% when banks
mercial
concerns
the
money
is
reserve
of
commercial
banks. payment or a broker may pay off in New York were lending money
tied up for 90 days to six months.
Financing of Government Bond
These loaris are still made as you the loan substantially, on no notice in the '30's at less than 1%. Prac¬
On the other hand, brokers' and
Dealers
at all.
I suppose that in the last
know, but they are no longer call
tically speaking, it is a fee paid dealers' loans are demand
loans,
15 years some downtown
banks for £ credit in lieu of what used
loans. Let me lay a ghost. There
This brings us.to a third and
and payment may be required at
be
called overcertification,
is no longer a real call money have called a broker's loan just to
sometimes
very
large field
in
any time; therefore, in the past a
market in New York City
al¬ to make sure that the machinery rather than an interest charge.
rate
somewhat under the prime dealer loans, the financing of the
for calling a loan still exists, but
though you will find the term in
government bond dealer frater¬
commercial rate has ruled. Right
The Dealer Loan
for most banks it is pretty hard
your
textbooks.
Frankly,
the
nity.
Their inventory positions
now, the so-called call money rate
Let us turn now to the dealer
market just doesn't exist anymore, to remember when last they called
from time to time are extensive,
is 3V4%, or exactly the same as
a loan.
This is another indication
and I do not think we need to go
loan, and I want to repeat that
and many of the downtown banks,
the prime commercial rate obtain¬
of the disappearence of the call a dealer loan is made on collateral;
deeply into the reasons for it
being large owners of government
and the market for call which belongs to the dealer. Its ing presently in the New York
■other than to say that with the loan
securities, feel a responsibility to
market.
,:j!
"
increase of margin requirements money.
principal purposes are two-fold;
the government bond market and
There have been times, how¬
Brokers' loans are made under (1) to finance the distribution of
and the virtual disappearance of
wish to see the government deal¬
what is called a continuing loan securities, and (2) to carry an in¬ ever, when the call money rate
the margin speculator, the volume
ers
well financed.
Margins are
rate
for
by which successive ventory or investment portfolio. has far exceeded the
of margin accounts has been re¬ agreement
lower
to
the
government bond
loans may be made, not by signing A large proportion of the^loans to commercial loans. It is not at all
duced substantially.
Brokers'
dealers, ranging from the discount
inconceivable
that
in
a
tight
loans in 1929 ran to some $9 bil¬ a note, but by offering an envel¬ brokers and dealers that you see
on Treasury bills to two or some-;,
containing
the
securities in the figures reported to the Fed¬ money market the call loan rate
lion. For the past 20 years they ope
times three points on long-term
would again cross prime commer¬
have rarely crossed the $1 billion which are listed on the outside, eral Reserve Bank each Wednes¬
*
cial rate of banks and be more government bonds.
and signed by an authorized per¬
mark. At the present time the
day are loans to dealers. The
Rates are low, and have varied
that
I
say
this is that expensive money even on a daybrokers' loans in the Street consti¬ son in the brokerage firm. Under reason
from % of a point below the re¬
tute a relatively small percentage this agreement the broker has the dealers are daily clearing large to-day basis than 90 days or six
discount rate, to a full point above
right to substitute collateral free¬ amounts of securities and financ¬ months money to business. This
■of the banks' total loans and pro¬
the rediscount rate, depending on
distribution
of;
securities happened in 1929 and has hap¬
vide a comparatively small outlet ly, subject to the bank's approval. ing
the money positions, of the banks
.
!
through
the
original or pened before.
for loans to the banks' own cus¬ These loan agreements are all in¬ either
ey.
used
,,
.
—
clusive,
and-
cant
indication of the disappear¬
with
lien
ance
of the call money market in
posted
Perhaps the most signifi¬
tomers.
the discontin¬
uance of the call money desk on
the New York Stock Exchange
New York
six
some
The
it
City
or seven years
that
reason
to
necessary
his
from
his
lent
was
banks
a
ago.
broker finds
borrow money
is that he has
buy
receives from his
customers money to
He
.securities.
,
a
for
a
loan
in
substantially
amount that he has
some
the
loaned
the custom of the
money
market, banks
Contrary to
old
call
generally require that brokers be
of theirs and maintain
customers
checking accounts with them. Sec¬
ondly, they require as collateral
versity,
address
own
deficit that
a
secured
City,
Sept. 10,
1963.
that
other loan
by
may
the
exist in
broker's
securities.
two schools of
for credit.
corded
dealer
market.
In
requirements
A dealer loan is not a call
loan,
to
As
that
up
dealers'
lower
a
to
I6ans, there are
thought. One holds
rate
safer
the
should
borrower
a
and
be
who
more
ac¬
puts
market¬
most
cured
brokers'
listed
by
loans
are
securities;
se¬
true
brokers' loans against unlisted
curities
generally
do
not
se¬
arise
these davs because brokers in turn
do
not
lend
regular
lation
are
"T"
ernors
against them in the
course
of
of
of their business.
governed
the
the
because implicit in the making
industrial
unlisted,
or
Board
Federal
System,
by Regu¬
of
Gov¬
Reserve
and banks are governed
by a-similar Regulation "U," re¬
bonds
or
debentures, municipals or obliga¬
tions of states
It is generally taken for granted
"Forum
N. Y.
against
or any
volume
sometimes
far outweigh the brokers demand
secondary
of able securities. Accordingly,
banks are also required to have such a loan is
banks that hold this theory will
seeing the deal
an agreement that he will not cothrough.
The" collateral
in
a charge 3V<i% on loans secured by
mingle
his
own
securities dealer loan instead of being di¬ stocks or corporate bonds, etc.,
with those of his customers, and versified
while charging a fluctuating rate
may very well be con¬
banks in turn agree with him that centrated. It
between 1%% and 3y4% on loans
may all be one issue,
we will not exert any cross lien
it may be a series of issues, blocks secured by governments.
This is
on
securities of his customers to of bonds or blocks of stocks, listed a perfectly valid theory.
Brokers
by Mr. Cook at the Third
on Finance" of The Joint
Committee on Education representing the
American
Securities Business sponsored
by the Association
of Stock Exchange
Firms,
Investment Bankers Association
of America, National Association of Se¬
curities
Dealers,
American
Stock Ex¬
change and the New York Stock Ex¬
change at the Graduate School of Busi¬
ness
Administration
of New York Uni¬
*An
Annual
bank
collateral
which the broker may have with
the
bank.
With
every
broker,
that
to his customers.
pledged
or
the
the
on
particular loan,
rehypoth¬
protect
ecate those securites, and in due
a
loan
course
pledges them to a bank
customers permission to
provide
school
Another
that
rate
of
of
interest
thought
should
is
vary
political authori¬
or
according to the purpose and term
ties, utility bonds or" debentures of the loan. In other words, if the
or rails, or it may be stocks, pre¬
dealer requires
money
to clear
ferred
or
common.
Credit
quirements for lending to
are
the
same
quirements of
old
formula
as
the
a
re¬
dealer
credit,
re¬
his
Holding
is
dealer.
ready
generally have at least the
dealer
financial
and
statement
frequently
of
a
have
The capi¬
we
going
days
lower
and
for
their
lending
tight
money
when the whole structure of rates
is
Other
rising.
that
rate
using
banks,
fluctuates
from
day
a
to
day, invite government bond loans
lowering
by
rate,
their
day-to-day
pay-offs
encourage
or
raising their rate.'
In
■
by
;
tight
many
money markets, banks
times borrow large sums at
the Federal Reserve Bank to lend
the
a
government
fraction of
a
bond
point
dealers "at
over
the rate
that they pay at the Federal Re¬
The volume of these
this philosophy,
government bond market changes."
if a
examine the
generally get them
delivery, the loan is
down,
than
the
dealer
who
says,
"I'm going to take these
in sub¬ profit and loss figures.
bonds
into
my
inventory, and
stantially similar respects. How¬ tal in effect is the margin on his
ever,
when a broker lodges a inventory or the portfolio that he please put the loan on the back
of the stove."
Banks holding to
statement with his bank that the may be carrying or may be clear¬
this latter theory generally will
securities he is putting up as col¬ ing.
stricting
temporary
situations, and raise this rate only
Bank.
to be on only for a few
and should be accorded a
rate
Some
changes from day to day
numbers
bonds
•
serve
borrower. The dealer has to pick up securities
the three "C's"— from the issuer, package them, get
the
We
to
through
market.
special low rate
a
loans
he
any
Capital, Character, and Capacity.
There
are
C's that apply to
a
annual
the
this
finance
should be ac¬
lowest possible rate.
securities,
corded
that
banks maintain
the
It
dealers'
may
been
be
over
last five
hand,
loans
attitude
or
this
to
very
$2
toward
high,
billion
and
within
as
the
has
the
six years; on the other
year
dealers
the
volume
of
government
on
bonds has been at times under $150
million in the New York market.
The mechanics of
ers
either
other
the
on
securities
same
as
lending deal¬
governments
is
lending
or
substantially
to
brokers.
Both borrow under the continuing
loan agreement with the banks.
Volume 178
For
the
Number 5264
most
The Commercial and Financial Chronicle
...
part, dealer, loans
the regulations
by : reason of being made on secu¬
rities exempt from the regulations
of the Federal Reserve
securities not
through
the
Board,
Our
of
an
have
By JOHN T. CHIPPENDALE, JR.
hour
or
and
so
in
this
professional
field
market
I
one.
principles
better
securities business
industry
not
lies
function
of
end
an
interim
an
portance
in Wall Street
1
Banking the securities
is
job
in
the
in
and
dealer
'
itself
its
im¬
facilitating
corporate
the
which
system,
raising
economy.
Earl W. Price With
>
Slern Bros. & Go.
KANSAS
Brothers
CITY, Mo.
&
Co.,
important
that
Earl
has
be¬
Price
t
a
with
Vice
securities that
as
d
e
them
investment portfolios.
a
Presi-
-
Price
will
firm's
the
that
Office,
will
and
too
be
identified
pri¬
with
marily
the
corporate
Mr.
Price
has
-
been
years
active
in
for
many
City
1940
Bond
Traders
Chairman
and
No.
Association
of
5
panies will most likely find an
&
Co.
number
a
of
prior to organization of his
years
firm, E.
own
for
Dealers,
with Stern
was
W.
Price
Co.
&
in
1939. Since the latter part of 1952
he
has
been
devoting his time to
interests.
private
outlet again in the government
market.
Split Views
in
District
National
Securities
Inc. in 1945-46. He
Brothers
Club
of
the
of
buying selected corporate issues. It
placements will tend to slow down and if
some of the funds of life insurance com¬
are now
this should be the case,
invest¬
business
in
Kansas
City,
having been President of the Kan¬
Committee
pur¬
of the longer-term issues in the not too
some
They
is believed that private
ment
sas
look at
a
distant future.
•
*
One
the
of
most
a
important points of discussion
this time is whether
ernment market at
issue
Long-Term Financing
on
long-term obligation to raise
in
the
gov-
the Treasury will
not
or
There is not too
new money.
much leeway for new
close
financing because the debt itself is pressing
However, there appears to be no clear
to what might be done because there are just as
the legal
to
cut opinion
as
Farm Loan Bds. Offered
The 12 Federal Land Banks yes¬
terday (Oct. 14) offered publicly
through Macdonald G. Newcomb,
their fiscal agent, $75,500,000 con¬
solidated Federal farm loan bonds
dated
be
to
bear
Nov.
Feb.
mature
payable
2,
1953,
and
limit.
who do not believe there will be anything but a short-term
issue for new money purposes as there are those who have the
opinion that a long-term obligation will be used.
many
1955.
2%%
per
Feb.
on
and
and
They
on
through
being
are
distrib¬
nationwide
a
basis
large selling group of
recognized dealers in securities.
Net
proceeds from the
be
to
a
used
bank
to
borrowings
funds for
The
and
are
to
are
the secured
Land
Banks.
The
chartered
Federally
being
joint and
12 Fed¬
banks
are
the
for financing
a
few
Farm
Credit
Administra¬
tion.
With BIyth & Co.
PHILADELPHIA, Pa.—Blyth &
Inc.,
123
South Broad Street,
that William M. Crouse,
become
associated with
announce
Jr.
has
their
by the Treasury.
However, there
long-term market at this time for
sales
department.
appears
higher,
were
one was
unchanged
made.
—Third
Quarter—
Nine Mos. to Sept. 30
105:;
Bank
1052
1953
1052
*$0.63
*$0.52
*$1.92
*$1.49
7.91
7.22
22.41
19.81
1.12
Manhattan.
of
0.96
2.91
2.85
1.06
0.87
2.79
2.48
Bank of New York__
Bankers
Chase
Trust
___
_
National
Chemical
•
Bank
1.23
1.02
3.37
2.98
Exchange
1.40
1.24
4.05
3.68
*2.37
*2.71
*7.68
*7.44
First National
*5.96
*5.20
*17.59
*17.60
Guaranty Trust
Hanover
1.23
1.04
3.42
3.06
*1.42
*1.45
*4.25
*4.25
0.45
Bank
0.41
Irving Trust
Manufacturers
1.26
1.20
Trust
1.46
1.30
4.27
3.88
Morgan, J. P. & Co.
National City
5.39
5.97
14.94
15.57
1.05
0.91
3.09
2.77
New
2.40
2.21
6.76
6.49
1.15
0.96
3.11
2.67
4.37
4.52
14.90
13.94
National
United
States Trust-
^Indicated
As
Trust
York
Public
earnings.
.
is
evident, the trends that prevailed throughout the first
half of the year, continued to operate in favor of a
rising level of
operating earnings. Higher loan volume and rising interest rates
were the important factors
accounting for an increase in gross in¬
The gain in this total
come.
was
increase in wages and other
an
As
than sufficient to
more
operating
absorb
expenses.
result operating income before taxes was
substantially
This in turn required a large increase in the provision for
taxes. In most instances this was the most
significant item in the
statement of operating earnings and
frequently was the determin¬
ing factor as to how much of the gain in operating results was
carried through to final net income.
Also, the handling of the tax
a
higher.
with
account
respect
to security transactions was an important
determining the reported earnings. Regardless of
the tax factors, however, the banks as a
group reported better
operating earnings.
consideration
Based
in
the results achieved
on
the banks look
forward
to
in the final three months.
a
far and the current prospects,
so
continued
favorable operating trend
Present indications
that most of the
are
major institutions will be able to report record earnings for the
;
accruals
liability
including
limit
provision
for
an
excess
profits
tax
the final
gain as it has in the year to date.
profits tax problem will be minimized in
most instances by security losses so that final
operating earnings
may
Nevertheless, the
should
compare
excess
favorably with those of earlier periods.
by
some
that there should be
long-term market before
cause
confidence
future.
new
money
sentiment
and
be
with
time given to the
much
certain money
on
market operators.
period of back¬
solid basis, according to
They believe that
Financial
bers
Milwaukee
the
»E'ast
207
of
Michigan
the
to
Thi
near
future would
in the securities business.
Stephenson
Wells,
President and
Ramsey R. Parker,
Secretary. Mr. Wells was formerly
Vice-President
Company
an
officer
of
of
C.
prior
and
S.
Co. of Chicago.
of
the
&
firm
exchange
James
F.
considered
by
be
Exchange
the
Jr.
on
Oct. 22.
Engeman,
James
solved.
the
death
Oct.
McKenna
•
of
3, the
&
Co.
and
Cincinnati
With Lovett Co.
to
The
Financial
Chronicle)
LYNN, Mass.—Martin Stone has
With Westheimer Co.
joined
pany,
to The Financial Chronicle)
is
W.
now
Va. —Ray
connected
a
staff
of
Lovett
Com¬
F.
with
COMPARISON & ANALYSIS
Company of Cin¬
cinnati. He was formerly Wheel¬
ing representative for First Cleve¬
land Corporation and in the past
was
the
8 Wentworth Place.
&
19 N. Y. City
Bank Stocks
partner in R. K. Hastings &
Third
Quarter 1953
Bulletin
Radcliffe With Cruttenden
(Special
to
The
LINCOLN,
Following
Co., First
Building, members
York
mem¬
will
Byrne,
Chronicle)
Stock Exchanges.
bership of the late James F. Byrne
to
New
(Special
Westheimer
Exchange
Financial
staff of W. E. Hutton &
Co.
Transfer of the
R.
was
Wells
Stock
The
National Bank
& Co.
Brandfass
changes:
Ashmun
thereto
Mullaney,
The New York
has announced the following
Chronicle)
MINNEAPOLIS, MINN.—Wells,
are
Ex¬
change. Mr. Bray was formerly
Loomis, Sayles & Co., Inc.
In the past he was with Shields
the
crowding
be
Weekly Firm Changes
Elliott & Co., Inc. has been formed
with offices in the Rand Tower to
Officers
Stock
new money
a
New York Stock Exch.
Minneapolis
Financial
mem¬
to
CINCINNATI, Ohio—George H.
Musekamp has been added to the
with
somewhat.
Wells, Elliott & Co.
(Special
(Special
Company,
Street,
Midwest
WHEELING,
Formed in
W. E. Hutton Adds
Chronicle)
(Special
long-term obligation in the
market recovery
more
a
the
stronger in
A real test of the long-term market after a
ing and filling would put it
The
to
MILWAUKEE, Wis. —William
E.
Bray
has
become
affiliated
financing is undertaken be¬
should
(Special
bit to
a
new money.
more
With Milwaukee Co.
to be quite
Stronger Market Expected
It is felt
engage
Co.
fine recovery from the
opinions around that it might be rushing matters
go into the
institutions
and operate under the supervision
of
a very
provide
bonds
several obligations of the
eral
influence upon what is done in the impending financ¬
lending operations.
consolidated
offered
sale
commercial
repay
earnings, two
June lows and this has put that sector of the market in condition
are
being offered at 100 Vs and accrued
uted
some
ing. The long governments have had
annum
1954,
1,
thereafter semi-annually,
interest.
have
values, two
Sept. 30,
have been computed.
Per share results have been adjusted to
present capitalizations where stock dividends or splits have been
Tax
The conferences that are being held by Treasury officials to
get the opinions and ideas of money market followers will no doubt
The bonds
at
ended
year.
to
1,
interest
months
per share results are presented in the
following tabu¬
lation, showing earnings for the third quarter and the nine months
to Sept. 30 in 1953 and 1952.
Operating earnings are shown where
available on a comparable
basis, otherwise indicated earnings
Treasury Officials' Decision Awaited
$75,500,ON Federal
nine
only slightly lower.
one
some
companies, particularly the smaller ones, there
reports that certain of the larger companies may be taking
than
more
the
1953, the showing was
even better.
All of the banks reporting
operating earnings were
able to show a gain over the first nine months of
1952. Of those
The recent backing and filling in prices of
presented an opportunity to investors and
some of them have already started to make additions
(in not
large amounts yet) to their holdings of long governments.
are now
-
Price
the
For
are calculated by changes in book
increase in profits and two were lower.
Empire Trust
Although there has been from time to time minor fill-in
department.
Earl W.
an
Corn
chases by insurance
-
period of the
same
earnings
rather important amounts of the longer-term
bonds. It seems as though the improved sentiment in the money
markets is helping to make some of those that have been rather
skeptical about the uptrend in prices a bit uneasy, with indications
Kansas
City
obligations
they obtained
be
in
located
Treasury
Mr.
dent.
those for the
operating results on a quarterly
a gain in earnings for the third quarter over those
period of 1952. Among the four banks for which in¬
same
showed
floating around in the market have gone into
were
over
>
banks that report
dicated
to
associ-*
come
13
basis,: 11 showed
for the
Profit taking here and there has, according to advices, helped
improve the technical position of the longer-term Treasury ob¬
ligations. It is reported that some traders and dealers have brought
positions down to more workable proportions and most of these
W.
year. -
Of the
Institutional Buying Evident
Exchange, have announced
general increase
a
previous
ready to accumulate government securities when quota¬
are
Avenue, Members of the Midwest
Stock
showed
tions recede.
Baltimore
1009
of
that
Stern
—
the Treasury
government market. However, the reaction was
proportions because opinions are strong that
money rates are going to ease further which eventually means
higher prices for government securities .especially in the longerterm obligations. To be sure, there could be irregularities in prices
of Treasury issues and there are not a few that hold this belief
because quotations have been advanced Very sharply in a short
period of time.
Nonetheless, setbacks should not be too pro¬
nounced since there appear to be quite a number of buyers around
not
Bank Stocks
—
The
is studying the possibilities of
through the issuance of a long-term bond took a bit
money
E.'JOHNSON
This Week
that show indicated
of these obligations.
of the froth off the
is
stone of the American
corner
the long-term issues are con- '
Long Bonds Acting Well
The report that
securities
by the dealers is the life blood of
the
as
H.
Operating earnings of the major New York City banks for
the third quarter of the current year were at record
levels and
and
by brokers, and the underwriting
new
As far
versa.
with strong hands taking over more
The trading of old secu¬
in a national market place
and distribution of
development
cerned, it is evident that the quality of the buying is improving
the
broker.
rities
this
enough to take
though most of the excitement is about the more distant
maturities, the intermediates and shorts continue to account for
the major part of the volume and activity. The deposit banks are
moving about in these securities in a very substantial way with
many switches being made between the shorts and the middle
maturities and vice
the
and
good
was
Even
understanding of how the
is financed.
but
have perhaps
you
whole
a
as
pretty much in stride. There appears&olbe an expanding follow¬
ing of the belief that money rates will continue to ease and if this
is to be the case it means higher prices for government securities.
hope that by reducing some of the
complexities of the business to
broad
By
=
Although prices of government securities were set back a bit
by the report that the Treasury might use a long-term obligation
in the near future to raise new money, the condition of the money
half
broad
prety
a
rather
a
are
covered
Bank and Insurance Stocks
G
on
■
ex¬
specifically ex¬
empted from the same regulation.
We
Reporter
or
being distributed
medium
change, which
a
19
exempt from
are
on
(1439)
Harry
firm
was
of
dis¬
Radcliffe
with
has
Financial
Chronicle)
Neb. —William
become
Mr.
Request
aird, Bissell & Meeds
Members
W.
associated
&
Co.,
Trust
Radcliffe was for-,
New York Stock
Exchange
Members
American
Stock
Exchange
120
merly with the First Trust Com¬
of Lincoln.
BROADWAY,
Telephone:
Cruttenden
Building.
pany
t
on
Bell
(L.
NEW YORK 5, N. Y.
BArclay 7-3500
Teletype—NY
1-1248-49
A. Gibbs, Manager Trading
Specialists in
Dept.)
Bank Stocks
to
The Commercial and Financial Chronicle
(1440)
chasing agents are well advised
corporations will remain to proceed with caution,
high, as the first two instalments
schools, and on into high school under the Mills Law call for the
Living^osts
and college.
This great tide of payment of 90% of the annual tax
With the long-term price trend
youngsters will provide a highly liability of corporations.
Thus, headed for lower levels, - there
inelastic demand for the necessi- there
may
be somewhat of a should occur further easing in
ties of life. Luxuries in the food squeeze on money during the first
living costs, particularly in the
and clothing lines may have
a half year. If this proves burden- food and clothing divisions. Also,
tough time of it as total business some, however, we fully expect the rising tempo of competition in
volumes
sag,
but the swelling the government to take steps to automobiles, petroleum, and
mass of adolescents will
provide maintain the flow of funds. This building suggests lower transpor-
crescendo of demand
play-pen stage and gambol
through kindergarten, the grade
Likely
Vice-President, Babson's Reports
Business analyst, in reporting on business
year
outlook, foresees a
in auto, steel, and
nonferrous metals industry, which decline will continue
to those
into
of current year,
Outstanding feature of business
the
for
prospects
likelihood
enter upon a
JO
ahead
time
that
we
period of decline,
Major culprits
do
.
anticipating
to
sharp
during
be
last
ol
and
to
In
other
IQfi/?
1953
oTrihe
Index
the
far
so
this
the
year
(7)
Babson-
-fnv
lie
in
con'tinuing into^,
cUne
Fncfll
1_
outstanding for its high
level of business activity. We look
ior the first half of 1954 to be
n.
hood
nooa
I
try"
-I
A
i
promises
We
hold
level during 1954
augmented
L
It
^
anticipate that the over-all
of
de-
may even
d
missVles'networkr"'
been from
Thus, the
percentage gains appear awesome,
Nevertheless,
haps make headline conversation
profits
failures
in
nex;,t year will be downward,
be
iha
expect the rise
we
continue
to
and
per-
4nri„8frip«
Real Estate
Generally,
highly selective.
hMVV
will
far*
not
In
opinion, the peak of the
our
heavy 1industries willin recent real estate boom
t a c
they have
1 ?
mon^s; the food industry, on the Demand should
other hand, should benefit from
well
so
has been passed.
as
Tu * *1
.
.
•
j
i
,
t-x
,
the
during
•
■
-
.,
,
further
recede
ahead.
year
Home
,
.
sustained demand and lower raw- building has already declined, and
mate"al cojts111 a11' eaeb we look for pressures here to con-
be
industry and each company must
tinue
mPFltC
field wheJe
the government will make a big
■f.ViA
""" merits-
„
_
.
_
However,
the downside.
on
ana*zed 011 its ow" tbia is Probably
be
nd
radar
has
course,
However, the action of individual during the first part of 1954.
industnes and companies promises
high
a
of
of
expanded•appro-
by
^veV'Lmela
11
at
rise,
abnormally low levels.
during the last
quarter and through the first part
This "new indus-
to
^
dollar
uunar
and
anu
number
numoer
climbed sharply during 1953. The
...
had the
we
the
tne
Both
notn
"rot,ts
to
of
period
will
W111
proceeds.
trend
dining business have
we can
«
other
no
thp
change
major
maJur
any
any
01
bec?me less aa the business re" valu,e of business ^iiures have
cession
powerful sustaining fofce of heavy
the" index"might fali guided'
where
see
In
h,n
Art
Taft-Hartley Act, but the like 1
of
will
W111
fliitnmatip
finlncfng
defense outlays.
Index may average about 144 for
the full vear 1953
With the de-
1953.
CA^CUBCO
expenses
reqnltin*
seen
™
0f the money managers.
Anticipating a fairly sharp
decline during the last quarter,
We
suggest that the Babsonchart
oppo-
m
corpo-
capabl^o7expanrioentatatthe will
capame 01 expansion at tne win
....
chart Index has averaged around
out
high
and
(5) Heavy supply of "E" bonds
and other savings.
]4b
Glifcfanrlino'
was
Babsonchart
first
directly
personal
rrifng
for
well
word,, the first half of
Utile
look
the
marked
^"^rfrik^sT'lfkelv rents'^omTwhatlower'Dve'ls will
H1ir5}kfn AeitatkJn be
in the cost-of-living into^e of short duration. Agitation be seen m the cost ot living
i
mJli
'
Failures
f
with
taxes
repressive tax laws.
continue
almost
be a
,
f°r fnnge
tax
(4) Tax cuts scheduled for 1954,
pius the likelihood of future tax
relief through revision of current
depression
we
ment
and rising defidt financing.
deficit
-
Physical Volume of Business, we
call
your
attention to
the fact
that
Looking ahead at 1954,
I visualize a pattern of business
that
what
fall-and
Thus, the degree of
With unemploy- relief which consumers^ a whole
on the increase, there will can expect will be rather small,
greater tendency to settle About the best that can be said
*e defensive.
As business declines, inwill
normally low on a long-term
basis. These promise to rise further as a readjustment more in
line with ballooned building costs
labor will be definitely placed on .takes place.
nro-
income
our
Government
uuvu
rate.
hnld
definitely not
occ
half of 1954.
of
indicate
the
tnis
into
trends
—
in
them—both
during the
c7
inherent
comes
next
factor
during the time ahead in terms of
quar-
year
site
for
inflation
'SSKwttfcn
system.
to
Babsonchart Forecast
To
thai
and
riestitntfnn au
How-
costs.
housing
and
it should be observed that
controlled rents have been ah-
<
.
Labor
Prospects for big strikes appear
P
less likely
in
business recedes,
.
hv"<^nVirminamntnanf™
JD
tor
we
in 1954.
the
drop
A. C. Babson
,•
of earlv decline
major
a
'
unemployment
,
The
V1,ded
More
expect
ter
(2)
believe
We
cocked
Win be
important, I
the
nhsnbite
able
business
one
second year. We are
indus¬
tries.
boom.
of
will be
Xch
and
nonferrous
metals
pattern
year
.
t e e i,
new
a
.
Widespread
CD
that
be
to
....
compensation. No longer does the
government pump-
efforts
the
automo-
bile, building,
s
expect
create
slump will be
the
not
note, however,
priming
the business
in
...
1954
Piease
,
of mention include the following:
during
tobogganing downward
is
about
are
tation
ever,
1uirefnents-
Other sustaining forces worthy
with considerable inventory liquida¬
Finds as sustaining
forces, in addition to government and policy, the growing im¬
portance of stable-type industries, which are not likely to
contract production sharply.
the
could be done by further reduc-
tions in member-bank reserve re-
backlog
serious depression.
a
sure on
,
unbelievably oowerful demand
an
Visualizes trends in 1954 almost opposite
tion, but without
•
.
By ARTHUR C. BABSON*
first half of 1954.
contraction of money totals. Pres-
they leave
as
the
A Period of Business
sharp drop during last quarter of this
Thursday, October 15, 1953
...
,
rfA\rnrnmnnf
iinll
rirtolr**
Q
Retail Trade
effort at revival in the event that
Ljne
or
lower
(below
130)
by
Adding
.
the above-menAs - in the case of prof its,the , thev: Administrationfeels somemid-Spring of 1954
After that' tlone<a
sus™inmg t2rPesv. *0v tne: outlook for retail trade will also Athing ; must be done to halt the
we look for the drop to be checked
government s avowed intention of be > selective. The heavier lines> business "downslide. This is / a
the
to
neighborhood
of
the
X-Y
,,
'
,
'
-
M
noteworthy
liquidation
than
more
accumulation.
weakening
inventory
inventory
for
for
Business
during
will
.
be
with
the first part
*
of next year, whereas it was per¬
sistently
strong
part of this
Uncle
during
f<nO viv\
the Rescue
and
despite
slide
will
the
part
of
at
this
in
time,
continue
I
1954,
anticipate
xious
depression.
place,
In
volume
the
i952
a
into
the
of
And
7
certainIy
47
1952
accuse
of
first
terances, is strongly committed to
taking any action within its power
be
With
building,
—
Natural
we
Public
want to emphasize our belief that
sive equipment to be thrown into
in
(2)
a
matter of fact, we should not be
surprised if the first anti-depresmove were made in the last
sion
quarter of this
In
year.
addition to
the fact that the
government is committed against
letting
a
depression gain headway,
must
we
not
overlook
the
vital
importance to the Administration
the
of
1954.
"today's Republican leaders
,
...
-
.UKely to repeat the
a
rp.
a
are
errors
oc
of 25
1.
n
.
high level of unemployment in
the
autumn
of
1954
would
ring
the death knell for their Congres- >
hopes.
T
Loss
of
tiie Administration
ward 1956
that
Therefore
everv
nossihie
ypo
,
made
to
in
*
prevent
we
effort
predict:
win
he
from
Bab^"n'^d c^nLrenceMon ^usiJess*
and
itiveetments, n. y. City, Oct. 6, 1953.
'//
.
d
order
.
stable
nature
that
greatly in recent
electric
have
years
Shoes
will
h
Textiles
ahead.*
pressures
continue
throughout
This
the
on
downside
exerted.
be
to
means
In
Railway Freight
Residential Building
Retail Trade
there
Consumption
support
,
.
our
,
physical
over-all
,
volume
„
curve
,
of
.
;
■
.
duration.
short-term
over-all
The
trend
-
,,
.
.
.
on
points
all
of
.
add
an
trend
and
of' the
that
feel
will suffer
ports
ex-
- a
shipments. Also, in the case of immoving
in
However,
such
we
high
volume,
t
do not look for more
than a very moderate cut in total
imPort volume for the year ahead.
Conclusion
^
Despite
-
our
A1
.
*
•
position,
,
•
■
stated
.....
next few months' there yvill types-raw materials, in process, above, that we anticipate nothing
more than a moderate, and in consumer hands—are siz- worse than a business recession
rather negligible, increase
.
..
of business.- tal money supplies.
ever-rising
trade.
r
far less depend-
early * revival
no
see
former
„
_
in to-
able.
-
.
Early
in
1954,
It would not surprise us if
-...
1
,,
collection,
there
may
be
!
some^
dar'"g the time ahead, wefe
^hat
our
considerable liquidation of inven-
,
will
,
.
foreign
for
are
We
Furthermore,.the teeming "kid- ^during the period of heavy/tax tories should take place in the
crop"
outlook
Many nations
.
,
,
,
will
par-
Such, however,
should prove to be of
-Money Supplies
.
„
ent upon the U. S. dollar than was
the case a few short months ago.
rallies which
develop
may
will be confusing.
Steel and Iron
As the Federal budget promises "\ a
to contract sharply during
long-term
basis
still
period of falling business. The t0 come close to a state
Inventories
of balance downward.
very size which they have now..
,u
-.r
■-. ••
,u
the
fact which canin estimating
a
overlooked
be
—
the
of many for-
that
modity prices will slump without
a
the
not
the
in
improvement
condition
economic
further modfurther. Commod- erate decline next year. The only
ities that enter into world trade thing that could prevent such a
will trend toward lower levels.
situation from developing would
This does not mean that com- be an unexpected rise in military
.
a
attained in our total productive in the
e«ort gives them a special power be
Foreign Trade
Marked
should improve
Nonferrous Metals
.
large cities,
-y
.
ticular, the world supply situation
Machinery
not
noi
are
are
/
*
of commodity will
type
suburbs of
eign nations is
-
,
plentiful
months
Machine Tools
gas, tobacco, clothing, and paper
lineslines-
-
.
*
Supplies of almost every conbe
Lumber
power, petroleum, natural
dollar
than
better
up
-
ceivable
Household Appliances
Industrial Construction
Rubber
sales,
Greatest
Automobiles
.
suburbanite
physical volume
Price Prospects
Foreign Trade
grown
hold
^
Railroad Equipment
include the
project next year,
will; beckon many a
toward
the fringes
publicity
Price competition
will be keen and
.
.
.
sales suffering.
Products
a
business slump.
.f.
Other significant activities of
civilian defense
.
firms,., heavily dependent
hard goods, will find their
Printing and Publishing
coupled with its tresize
will
produce
a
pect., if the government pushes a
that might have been considered
be- taken in' remote only a few years ago. The
than
during close-in suburbs may suffer at the
1953.
Volume
of
variety-chain expense of the fringe areas. The
stores should also hold up well. reSults could be a counter-trend
Department
stores
and
mail- improvement in the more remote
thestaples should
greater
quantities
upon
Petroleum and
considered a
safe refuge, will now become sus-
..
Electricity
Paper
greater importance than during.
any previous period
when the
to
business
-
whole
a
Chemicals
many
^13s been faced with
;
.
as
suburban areas, once
what type of retail;
trade you are talking about.
In.
particular, we are optimistic on
the volume of trade which the
Littlef grocery 'chains will do. Luxury
%' lines will be less in demand but
g
Cement
The inelastic nature of this
industry,
legislative, likeIy
its drive to-
n
'!
•'*
Armaments
population are now dependent
others for the food they con-
industries.Such
niuusiries.-' aucn
support would seriously handicap
i
I
Bituminous Coal
upon
not
They fully realize that
Change:
o w
;
total production output. Fori
Tobacco
example, the food-processing industry has grown to enormous (3) Activities Showing
Declines from 1953:
size. More and more of the total
sume.
'
v
S h
will want to be very careful
to distinguish
~
mcidnns
history of the last powerful stabilizing force of far
With the
years ago.
economy
Gas
lines
well and prove
you
-
Construction
Activities
:
our
Congressional elections in
Republican Administration, under
Hoover, still fresh in their minds,
,
American
Building
Aircraft
stable-type industries are becoming more and more important in
the
1953
Electronics
steel,
the nonferrous metals
the battle
As
up
Conditioning
Commercial
depression.
against depression.
ever, will hold up'well and there
promise to hold. is a g00d chance for expansion
a strong lsusin municipal outlays for schools,
taining factor for those retailers hospitals, roads, etc.
...
groups.
heavily committed in such groups,
Furor caused
by the Russian'
5 For'-example,
* ■ «
when .you talk: H-Bomb will continue to exert
about retail': trade for next year,
pressure on urban centers. -Even
soft-goods
Air-Line Transportation
there are strong sustaining forces
We fully ; in our economic setup.
We do
expect to see the government fire not have to depend completely on
brigade rush to the rescue at the the government fire brigade to
very
first
smell
of
depression rescue us from a major depression
smoke.
If the first brigade used next
year.
Chief among these
and the first equipment tried does
other - sustaining
forces
is
the
not do the job, you can look for
changing nature of the American
bigger brigades with more expen- economy itself. In essence, with"to prevent a
half of 1954. vOn the other hand,
„
^ Activities Expected rto Show
Improvement Over 1953:
Tmnmvpmpnt OvoriQW- 1.
expect the weak
business picture to
automobiles,
and
•
1954:
n0
7
being
a 1 so
,
this year, ; with the . downward, promises - to recede next "year,
tendency continuing into the first, Commercial '•< installations, how-
Output Compared
for
we
the
V:, '■
Forecast for
Probable
Sustaining Forces
Although
wU1 nbt,
Industry
average
business
fhl.
(
uuwue» u,au5*';
depression yeart
sisters in
government, by its Ut-
our
f
of
Air
se-
a
wouid
one
the
to
physical
do not,
that the
recession will snowball into
close
very
vi Ann
business,
that the
belief
my
business
first
kitm
IM
contraction
Volume
■
,
Babsonchart In-
Business may average around 134
rage
for 1954 as a whole.
This would
Despite the fact that I look for
sharp
th
ical
the last quarter this year to show
;bbhpadlappliances, etc., will shink sharp- pump-priming.
a^fdtwy "fn nof S ^ ^"8 the fourth quarter of ^Industrial •construction
"
ossible that
be
a
.hT6 thS such as: automobiles, ' household likely field for early government
possibility of some reafter midyear. It is quite
fi
the
year.
Sam to
the
covery
next
six
to
nine
months.
Pur-
analysis of the situation
complete without a
not be
word
of
warning.
Once
shadow: of a business slide
the
ap-
(1441)
pears,
that
no
it
one
will
moderate
far
be
can
size.
quite
to
prove
The
horizon—"no
be
sure
oi
cloud
bigger
hand"—may turn out
death-dealing tornado.
wisp
of
smoke
may
the-
than
man's
the
$150,000,000 New Jersey Turnpike Authority
only
on
Bonds
a.
had
the
presage
the
Public
Smith, Barney & Co. heads underwriting
members.
holocaust.
Hardly
Market
on
to be
The
Democratic
Public
Bonds offered to investors
at
$150,000,000
Jersey Turnpike Authority
3%% Second Series Bonds (Series
15h3? ('lWe Planned ^ that
en *1™? en2ulied by
B), dated. July 1, 1953 and due
July 1, 1988, is being made by a
L.
®
®
2
+?,ry'i
in
ay' as,
per,u°
i
derella-like good times that
have enjoyed,
we
least
wonder
tiveness
of
tration's
stand
swiftly
about
the
and
that
pike securities
effec¬
will
powerfully
to
And
stem
be¬
we
somewhat uneasy when wc
remember that in the history of
come
for
the
earth no political power has
yet proved that it can bring per¬
petual prosperity;, to its subjects.
j
So, when
ernment
will be
of
Plaza
in
Jersey
Holland
sustaining
River
have
extension,
doubts.', When it is time
our
slide
a
of
indefinite
is
propor¬
to
hope that
place.
will
not
it
and
not
to
have
is
not
have
are
wrong
the
But when
.
fire
you
wrong
be
can
the
on
terribly
better,
then,
heed
to
for
pects,
that he
so
through
than
worse
may
whatever
the
of
clearing
applied
to
on
bonds
will
be
103%
to
100%,
redeemable
all
as
whole
a
collect
and
underwriter
such
changes
Stock
and
<
Hulburd,
Chicago.^
New
are
Jersey
trust
Drexel
& Co.'
■
one
with
F.
the
passing
Higgins,
years
who
of
legal Investment
the State of
& Co.,
R.
16
Inc.
Allyn
and
Bear, Stearns
&
Ira
in
Pine
Street,
this city,
the
Higgins
4
sale
was
*
department.
the typical
Major
and
had
a
Higgins
a
director of the Detroit & Mackinac
^
xtailway CO.
,
*
-
&
Paine, Webber,
his
was
-
s
:
/
.
Nov.
2. »MivSchoenhart
Huron Street.
"
Shields
&
&
Bros.
.*
•
1
■
\
4
'
/•.
;
•
Biair,
"
•
>
*'
-
Joins Magnus
S. Magnus
.
recently raised to $1.50, yielding 5.8%
the reeent earnings
times
The stock is selling at
and the dividend payout
company
of $30
has shared in the rapid growth of Florida, recent
as large as in
million being nearly three times
and the influx of retired
businessmen and
pen¬
sioners, industrial development is now occurring.
In the past three
years nearly 100 new manufacturing plants opened in the State
.and 62. existing plants expanded their facilities, to total investment
jbeing estimated at around $400 million. Farm development has
also been rapid, and Florida was the only state in the southeast to
'show an increase in cash farm income for the first half of this
New Jersey.
Staff
RoiJins & Co., inc..
t
"
by
j
are a large variety of smaller industries, such as furniture,
processing, ice and food locker plants, toy and other specialty
Due to the rapid growth of air-conditioning, kwh.
[sales were greater in July this year than in January, the big tour¬
ist month; air-conditioning was used by over 26,000 commercial
[there
.
food
.'manufacturers.
"'
—
William
heat pump,
advent
y
■
;
'(Special to The Financial Chronicle)
Neb. —Andrew L.
James E. Wenger have
LINCOLN,
become affiliated with H. M. Byl¬
lesby and Coqipany^ Incorporated,
Building.
Trust
of
operating costs have been extremely satisfactory.
pany also pioneers in controlled electric space heating.
and
In order to keep up
has
a
The com¬
with its rapid growth in output, the com¬
huge construction program underway.
The estimated
aggregates $26 million, of which $15 million wai
months. This compares with the net
system plant account'of only $121 million as of July 31. The com¬
pany is building two
30,000 kw. units at its Suwannee River plant
and two 40,000 kw. units at the Higgins plant, and three of thes*i
units should be installed by the end of this year. This total ef
140,000 kw. capacity (probably at least 10% more in capability)
compares with present effective capability of 332,000 kw.
1953
Byllesby
is one of the leaders in pioneer work with the
which it considers the greatest load builder since the
the electric refrigerator. Results in both performance
The company
.
&
Horn and
j
.
Practically all the corporation's large industrial users are on
interruptible power contracts. Among the 854 industrial customers
_
(ias joined the staff of
With H. M.
i
Securities Corp.
Dominlck
1.00
was
•
Company, Dixie Ter¬
minal Building. «.
Magnus
1
Hutzler
Co.
&
1.63
—-
—
over
Tlie
pany
Braun, Bosworth & Co.; Inc
Dominick
1.20
.
'
.
/V CINCINNATI, Ohio
i
;
BBrrckeerrs&&co.0inc;
-
1.20
1.20
1.15
tourist business
I
.
"'b (Spedial to The Financial Chronicle) '
"
Jackson & Curtis
Webster
1.80
1-29
.1945., While the State is noted chiefly for the rapid growth of its
of-
is
Co:
&
-
customers.
.
Weeks
&
Nuveen
Salomon
Stone
Major
'!
Moseley & Co.
integrity and admired his lovable
character.
;
•
.
—
is
President Clapp, in a recent talk before the New York So¬
of Security Analysts, expressed the opinion that earnings
'revenues
t
large follow-
ing of friends who respected
S.
John
°
_
salesman
Hornblower
F.
old-time
•
'
: '
'
& Co;
Haupt & Co.
$1.20
approximate at least $2 a share on the increased amount ol
the coming. 12 months' period. However, an exact fore¬
a pending rate case involving Georgia
Power & Light Company, as well as the question of the corporate
tax return in 1954.
4
- '.
•
PO'NTIAC, Mich.—Denzel T.
Sheppard is now connected with
King Merritt & Co., Inc., 53 Vz West
/
,
,"
.
-,..
Hemphill, Noyes & Co.
Dividends
1.62
13.3
ciety
;
"
Company, Inc.
Alex. Brown & Sons
—
the stock at the recent price around 26.
stock
"
C.
$1.95
would
(Special- to; The* Financial Chronicle)./
p
'
W.
Wall Street firm of A. W. Benkert
70
on
■
Pressprich & Co.
Securities Corporation
White, Weld & Co.
A.
July 31, 1953
_i
The dividend rate
about
be used for
Joins King Merritt
Union
.
ended
1.61
1948
[']
77%.
Kidder, Peabody & Co.
>
Merrill Lynch, Pierce, Fenner &, Beane
Phelps, Fenn & Co. /
John
follows:
1949
Ay
v
,
/
i' Goldman, Sachs & Co.
salesmen
as
'year, the rate of gain being exceeded among all states only
V:
Devine & Co.
Equitable Securities-Corp.
of its old
100%
1950
■' 5
fice manager for the firm.;
|
{:
i i
'
Glore, Forgaii '& Co.- /
months
1952
Schoenhart, Osborne
.
on
;
\
Ingen
29
shares outstanding at the end of each period, earn¬
1951
Brothers
Van
41,500,000
56%
15
Calendar Year—
•-
J.
$65,500,000
19,300,000
Stock
Earnings
Talmage Co. to Admit '
all
Ripley & Co., Inc.
Kuhn, Loeb & Co.
.
has been associated with the
Co.,
on
12
Harritnan
B.
the^last
'\
its
1-1'or-lO basis to subscribe for additional shares
ings and dividends have been
general corporate purposes.
'
Major
for
V- '.-■■■
shares.
rights to holders of
$126,300,000
Based
offering is not underwrit¬
The proceeds are to
all
Corporation
Halsey, Stuart & Co., Inc.
*
bond
The
ten.^'
First Boston
C. J.
common
offering
Corp.
warrants evidenc¬
Subscription
•
*
<
a
currently
cast is difficult because Of
■
-
on
outstanding
on
is
Long-Term Debt
Offers Common Stock
un-*
Eastman; Dillon & Co/
investment
Inc.
Beneficial Loan
for
and
share
Common Stock
:
Blyth & Co., Inc.
Major John F. Higgins
The-"Street" loses
stock
tolls, held of record on Oct. 7, 1953 were
shall mailed to stockholders on Oct. 9,
as
state-wide body set up about two years
a $1,266,000 annual rate increase
a
Co.
Talmage & Co., 115 Broadway,
insurance*:comtrustees' and other *fidu^-New York City, members of the
"
' • ,V
-'"New .-York Stock. Exchange^ will
Lehman
time
Co.
& Co.,
Co.
Among other members f of the
iderwriting
underwriting group are:?art.n®rshlP
accepting his new posi¬
tion, Mr. Engwis was Manager of
the Bay City, Michigan office of
Hulburd, Warren and Chandler.
J
&
a
price of 24, the rights expiring Oct. 26, Following completion
of this offering, and based on the July 31 balance sheet, pro forma
consolidated capitalization would be approximately as follows:
companies,
claries.
Prior to
-
&
Wiegold
&
at
a
company
Preferred
the bonds is exempt,
on
Jersey
panies,
Warren
IN MEMORIAM
E.
Wertheim
its ] political
subdivisions, departments ^and
agencies, and for savings banks,,
investment back¬
the
common
existing statutes.
New
ground that includes previous af¬
filiations with Shillinglaw, Bolger
Co.
Company
of the Turnpike
bonds.
the
on
The bonds
in
Mr.: Engwis comes to.Common¬
&
A.
Brothers
Yarnall
The
Cook & Co.
Rippel, Inc.
Chas.
the
at
„
Fund..;, >'.'j
& Chandler in
Julius
.
Commission,
28 cents
over
Milwaukee
prop¬
tropical storms of hurricane intensity has not
en-,
present Federal income taxes,
Com¬
an
& Lee
Co.
Newhard,
com¬
company
effective Aug. 1 to yield a 6.45% rate of return on the rate base.
After allowance for Federal income taxes, this was equivalent to
C. Langley & Co.
M. Marks & Co.
The
principal interest and sinking
Interest
funds,-
with
W.
available the
are
The company was granted
ago.
1953. The rights to subscribe will
expire at 3:30 ]£m. (EST)"on Oct.
Turnpike extensions, and
23, 1.953.
a
: '
'
and any
funds
Commonwealth Investment
wealth
Ballin
as
company
Utilities
Company
& Co.
&
such records
formerly had regulatory difficulties with the
County Board extending over a period of years, but i9
subject to regulation only by the Florida Railroad & Public
now
-
Heller, Bruce & Co.
the
der
•
& Co.
Republic
on
Pinellas
be sufficient to pay for operation
and manager of two mutual
Commonwealth
Co., Inc.
Simmons
&
Saffin
Hannahs,
depending
Street.
and
&
reason of
The
Bradford & Co.
Central
redeemable
in the opinion of counsel, from
pany
Ellis
Boland,
improve¬
the present Turnpike.
rentals and other
North Ameri¬
is
Baird
Based
exceeded $570,000.
Andrews & Wells, Inc.
W.
by
Co.
G.\H." Walker & Co.
further
Chicago area with
headquarters at 135 So. La Salle
The* firm
erties
&
Light.
believes that since 1920 the total damage to
pany
„
Laurence
finance
to
establish
Company has an¬
appointment of E.
wholesale represent-
M. Engwis as
ative in the
Power &
Inc.
Co.
Witter
Dean
Power Corporation seems much less susceptible to
damage than its eastern and larger neighbor, Florida4
hurricane
Co.
ing rights to subscribe at the* price
option of the'Authority on and
of $24 per share for 355,976 addi¬
after July 1, 1958 at prices rang¬
tional shares of common stock of
ing from 103 V2% to 100%.
Beneficial Loan Corp. at the rate
The
Authority is required to of one share for each 10 shares
Securities
the
Florida
Inc.
Cross,
Co.,
&
Hirsch
be
and maintenance
nounced
&
Weeden
Courts
be
when
North American Sees.
can
Stroud
„
tirety through sinking fund oper¬
ation by 1965. The bonds also will
Engwis Representing
—
&
Smithers &
S.
re¬
will
able traffic and revenues, that
bonds can be retired in their
ex¬
danger is passed.
CHICAGO, 111.
changed and provision is made for emergency relief between the
two groups. The company also has arrangements with Tampa
Elec-j
trie Company and Florida Power & Light Company whereby sur¬
plus power is interchanged.
j
,
Tripp & Co., Inc.
60
the date of redemption. It is
estimated, on the basis of prob¬
Then
skies
.
& Co., Inc.
upon
he will be ready to take full ad¬
vantage
F.
J/C.
from
safely ride
impends.
The company and its Georgia subsidiary have interconnections
with Georgia Power Company and Gulf Power
Company (both in
the Southern Company system) whereby excess power is inter¬
.
Shearson, Hammill & Co.
which
of
-
..
f.
Co.
Stern
up.
he
City
within
,
Robinson-Humphrey Company, Inc.
Roosevelt
through sinking funds commenc¬
ing July 1, 1956 at prices ranging
They foretell its approach, though
they cannot accurately measure
the size of the
impending dis¬
turbance.
The wise skipper will
prepare
Rand &
The
Blunt
ments
the
.;
....
Company
Wm. E.'- Pollock
bridge through Bayonne, N. J.,
The
Far
Co., Inc.
Morton & Co.
H.
Robert
hurt.
fact that the storm signals are
W.
and
you
opportunity.
,.
Hutton & Co.
The" Illinois
the
Jersey
start
<
Aubrey G. Lanston & Co., Inc.
demption of $30,000,000 presently
outstanding New Jersey Turnpike
Authority bonds due Jan. 1, 1958
you
upside,
an
are
If
&
Stone & Co.
proceeds
and
the
only
you
downside,
the
*
Co., Inc.
duPont & Co.
Gibbons
B.
pop¬
rock
,
Gregory & Son, Inc.
and Jersey City to the entrance of
the Holland Tunnel.
Part of the
fire,
insurance.
on
stand to lose
the
Geo.
The projected
to
,,
Eldredge & Co., Inc.
The
under
runs
&
a
and
<
Co.
First of Michigan Corporation
the
take
have
Dickson
150 smaller communities.
of 20,600 square miles with
an area
packing
canning plants, phosphate mining and processing and lime
mining. In Pinellas County, and to a somewhat lesser degree.
in other areas served, the tourist business which reaches its
peak
in the winter months has a substantial effect on economic
condi-;
tions.
Other important activities are raising of citrus fruits and
vegetables, tobacco growing, cattle raising, dairying, lumbering,,
naval stores, fishing and sponse
fishing.
j
Co.
Inc.
Merle-Smith
&
S.
Francis I,
a high level
bridge spanning Newark Bay and
an
expressway
extending from
It is better -to have the
insurance
than
it
Dick
&
Burr,
Hayden,'
construction
scheduled
&
Craigie &
W.
F.
days, will consist of
tions to take place, it is far wiser
to count on a depression than.it
is
Coffin
W. E.
from
Blair
William
territory comprises
ulation of 700,000.
The more important industries in the area are citrus
Hallgarten & Co.,, •
..
Harris, Hall & Co., Inc.
City, N. J.
Tunnel
Hudson
Corp.
Bache & Co.
(N. J.) Airport
interchange of the present
Turnpike to the Holland Tunnel
in our economy,.
t0 New York Cit
must let you know that we do
for
The
Securities
American
the Newark
forces still extant
we
000 customers in 96 cities and towns and
extension
an
portion of Georgia, so that the two companies form a continuous
system. The parent company renders electric service to some 157,-
Inc.
Struthers & Co.
primarily
used
serves
Ladenburg, Thalmann & Co.
traffic
speak of the govor die, when
we
construction
from
will to do
s
stress the powerful
we
bonds
Florida,
Adams, McEntee & Co.
R.
the
Corporation, the second largest utility company
the west central and northern parts of the state.
It controls Georgia Power & Light Company,
serving the lower
in
Rothschild & Co.
F.
Wood,
The
bonds are priced to the
public at 99.50%, to yield approx¬
imately 3.40% to maturity.
Net proceeds from the sale of
move
Florida Power
Schoellkopf, Hutton & Pomeroy,
Alstyne, Noel & Co.
offered to the
ever
Florida Power Corporation
,
Van
public.
Adminis¬
it
economic slump.
any
the
current
,
Reynolds & Co.
of the largest issues of Turn¬
one
By OWEN ELY
price of 99.50
Kean, Taylor & Co.
Lee Higginson Corporation
fjrm 0f smith, Barney & Co., New
York City.
The bonds compnse
the old Teutonic adage that "trees
don't grow to the skies." We can
at
of
all. nati0nwide underwriting group of
W^. approximately 350 members
° headed by the investment banking;
reminded of
we are
offering
New
+
the swiftest tumbles
®
+
Ci
finished
Utility Securities
of 350
group
Estabrook & Co.
boasting
about the business
recovery from
Administration
21
program
expended in the first seven
The Commercial and Financial Chronicle...
(1442)
72
Pennsylvania,
Office succeeding the late Sid C.
stock
NEW
OFFICERS, ETC.
and
of
Bankers
of
and
$200,000,
The moted
consolidated
under the title
$50,000,
Sept.
Lebanon
CAPITALIZATIONS
30,
bank had
Harold
J.
John
and
Brummer
promoted to
Vice-Presidents of Chemical Bank
have
Trust
&
been
Company,
York, it
New
..
.
,
Oct. 14
n_ft
,
°*fered as a speculation 1,999,000
shares of Yates Uranium Mi es,
Inc. common stock (par one cent)
R- w- Wagar who was assigned to
^San Gabnel °fflce ^ Man" 3 Ne^proceeds
^af
ioS!? *5? $225>M divided 8 •
.
.
shareholder to receive additional into
22,500 shares of common
Homer E. Geis, Assistant Viceshare for each 13 shares held on stock of the par value of $10 each, President of California Bank, Los
Nov. 5, 1953. Certficates for frac- surplus of $450,000; and undivided Angeles, Calif., and Vice-Presitional shares would not be issued; profits of not less than $225,000.
dent of the bank's wholly-owned
but shareholders would have until
*
*
#
affiliate, California Trust Comthe close of business Dec. 9, 1953,
Arthur
V.
Houle
has
been p?!ly\
Angele^'
c°J2r.
to sell their fractions or to pur- named
Vice-President
of
Sears R[
f
of service with
from the financing
will be added to the corporation's
^
_
Cunliffe
..
succeeding
Office
Broadway
and
Tellier
Tellier & Co., yesterday,
Campbell, Ralph L. Templar was
of appointed Manager of the Sixtieth
Bank.
National
Offered by
Vermont
and
as
At the effective date of consoli-
dation the consolidated
*
Yales Uranium Stock
of California
town, Pennsylvania, with common
CONSOLIDATIONS
REVISED
Henry C. Carlson, formerly As-
sistant Manager, was recently pro-
First National Bank of Schaeffers-
News About Banks
BRANCHES
with
to Manager
Bank's Washington
mon
NEW
of
stock
Lecom-
Bank,
National
Lebanon
banon,
Thursday, October 15, 1953
general funds and will be used
£qj. exploration and development,
working capital and for other corp^tg purposes.
securities
These
being
are
of—
exemption from
registration with the SEC in acchase fractions to make up full
Community State Bank, Chicago,
institutions on Oct. 1.
cordance with Regulation D of the
-hares, , at current market prices, IU
and Benjamin J. Tunick has
Thirty years of service with Securities Act of 1933, which bethrough the stock transfer depart- been
made
vice-President
and California
Trust Company, came effective in March, 1953.
nent of the bank.
cashier.
wholly-owned affiliate of Cali- Regulation D authorizes exempfered under
an
.
also
directors
The
ransfer $2,500,000
propose
'
to
from undivided
profits to surplus. Such a transfer,
*
*
.
Inn on/^k fr°m ^110,000,000
fornia
*
T. Perring, Presi-
n.tr_jt
Rank
tmentsfmade
appoin
combined capital and sur-
>luf
*
,
twrnit
™ ® 1 ™nK'** ?'l'
01
together with the transfer to capi-
^r
ng the
*
Mr. Raymond
_
Harold
P.
Carr,
on
™"ts °f
h»aL Auditor. He was elected As- 1933 for offerings of securities,,
sistant Auditor in 1930, Treasurer not in excess of $300,000 m any
one year made by Canadian issuers or by domestic issuers havprincipal business opera-
Assistant mg their
:
Vice-President in charge of Cali- tions in Canada and
C
"Riinprt
Rupert
post
!" »«. «"> l°
6,'ln Herbert C. House,
1950'
Oct.
tion from the registration require-
were
thoS
at
' of Directors meeting
b
Angeles,
Los
Bank,
C.
this is the
ponl.,c Q,incat_r.o^nar r>f_
first nffprini? nf Canadian shares
that an extra dividend of 40 cents *
r'XT®^"uw w p.1California Bank as a teller and
a share will be declared in No- gusch^ James
W Cunn ng a , following a series of pr0motions
yember of this year, in addition Hoy W. tn Assist.nt rafhW
wa* elected Assistant Vice-Presimercial
banking division at 30 to the regular quarterly dividend. t^rauoner t;o Assistant casnier.
j)ecember> 1949.
Broad
Street, will be associated The regular dividend at present
*
*
*
Construction nf
huildinfr
with
Goeffrey V. Azoy, Vice- is $2 per share on an annual basis.
The National Bank of Jackson, fnr thp rTiPndalp OffW nf Cali
President in charge of that office. If the proposed increase in capital Michigan, increased its common
Bank will hXin in NnvPm
Mr
Cunliffe
formerly Assist- stock becomes effective, the regu- capital st0ck, effective Sept. 30, ber at Brand Blvd and Milford
ant
Vice-President, and now in lar and extra dividends would be from $560,000 to $924,000. $280,000 ctreet Glendale
minora
HppiarpH
HnHntf thp fnnrth
nnarJL ul.
street, uienaaie.
charge of the Times Square Of- declared during the fourth quar- Qf ^be increase was made by a
California Bank's new quarters
fice, wil become associated with ter on the increased number of stock dividend and $84,000 by a
for
the
Bell Office opened for
F. S. Cleary, Vice-President, head shares to be outstanding,
sale of new stock.
business
on
Yates Uranium Mines, Inc. was
incorporated in Delaware on July
7, 1953, for the purpose of explor-
Harold
Jonn
Brummer
announced
was
Oct.
on
CO
Cumiiu
J.
$115,000,000.
(
13, by N.
Baxter
Jackson, Chairman.
Mr. Brummer, formerly AssistVice-President
ant
the
of
com-
a
C
of the bank's office at
and 29th
nue
re-located
™
Fifth
Fifth Ave-
Avenue
and
34th Street in mid-1954.
*
*
*
In making its recommendations,
the board is influenced by the im-
National
Tourist
of
Board
Costa Rica and the Banco Central
Costa Rica
de
of
sors
the
flows
nf
thp
Center,
Americas
The
of
panels
Company,
the
a
panel
and
includes
leather
of
the
on
display
goods,
ac¬
also
porcelain'
windows
Colonial,
until
the
and
Efrain
Al-
1
The
£ v!
56 «
a
o
X
increase
to
stock
from
v
s
oc
o
Ui
a
Board
First
has
**<.
of
that
*■
to
to
on
the
Bank
Boston
a
proposal
stock
by the
from
number
would
of
shares
to
in¬
of
v
becomes
profits.
J;
m
0
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such
a
entitle each
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a>
D.
0
<5>
Ho
value
ital
«
C
the
$32,500,000
per
o
-I
c
0)
C
"I
0
$12.50
5
|§
be increased from 2,600,000
at
2
a
shares to 2,800,000 shares. The
par
unchanged
10
U
declaration
of the shares would
2
<o
Nov.
dividend
undivided
w
u
„
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fer
42
u
0
from the present
stock
on
•ft
0
H,
'k
o
n
<D
of The
of
c
^
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h.-h
V
k
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c
'S
*5
0
•
VI
Z
©
-*±^
k
c
o.s
of $2,500,000.
$2,500,000 of capi¬
tal would be provided by a trans¬
a
J;
a
v.
o
8
capital
$35,000,000
of
ifj
'
to
vote
crease
bank
i
notify shareholders
special
meeting of the
a
Ewart
home in Toronto at the age of 67.
k k-i«—
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5Pr-T 3 &
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rt v
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% O
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tn
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shareholders will be held
5
0
•Sg.
Ik
••
VI
~
fi|
V
bo *
01
•0
O
.
Directors
National
voted
Department
u.
VH
O
O
VI
4-
V.'13
3
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C
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V
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TO
>
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•
4-
I
OK
Company,
its
common
capital
$200,000 to $400,000.
*
-•
The
••
Banking
bo
p?
•o
8
0
c
Newbugh, New York, received ap¬
proval on Oct. 9 from the New
State
o
C
•
^
.b
'O'rt
"B
_T\
HTbfl
c
M
O
r-
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3
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o
•
*
Columbus Trust
York
W. Ewart Young
the
of
location of First Security Bank.
M
H
c
^
York.
%
X
<h
faro, Consul of Costa Rica in New
*
member
.
C
-M
October, was arranged by
Mario Diez, Vice-President in
charge of the International Divi-;
of
♦
*
state
a
.
■»
O
*
of
sion
*
First Security Bank, Beaverton,
W
f
s
industries,
<*
bank
_
0reffoll
ficers remain the same.
to ^500»000' effective Oct. 1.
display, which will remain
the
end
„
vfrp^hah-man' nf* thp Board of Governors of the FedRrt^HR^v MPVPreral Reserve System, was absorbed Leod, Young & Weir, and an ofp.eLdenf Frank Morast SenTor by The lJnited States Nationa, «cer of the New York affiliated
??oifn!!nl^r a ftoc^ dividend and Vice-President;' and D. B.' Harris,' Bank effective Sept. 28. A branch company of McLeod,' Young, ■ Weir,
ffp^"ri'a4'd',PoQtl a"^ °r<h
$125,000 by sale of new stock, in- J
*
gon,
■
;
creasing the common capital stock dr-> Vice-President. All other of- was established in the former Incorporated, passed away at his
Th6 common capital stock of
the First Nati<>nal Bank in Gar"eld, New Jersey was increased
food products.
in
,,
,
.
a
figurines, embroideries, liquor and
The
of uranium in unde-
,
in
Fruit
Ministry of Health
The
is
W.
.
of
™
.
Tcnn., announces the election at a special meeting Sept. 29,
by LACSA
another
Rica.
«
of the following: H.P.Preston,Co-
*
.
,
,
showed
^
describing
banana
of the
Costa
consists
by United
air travel
on
Airlines, and
tivities
Avenue
*
the presence
of
S1|ruw
surveyed
sampling
Limited
acres.
consist
200
comprising
Street.
pictorially
coffee
of
48th
Cam
Rnrk-pl
in
the
on
at
shown
Tri,e/
offipp
exhibition
series
soon
display win-
Tnlnniai
Drineioal
feller
ioint
be^ng
omrently
15 panoramic
panv's
the
the
exhibition of Co«?ta Riran
an
product"
in
are
*
J
claims
B.
Sept. 14. Glenn
Vice-President
properties
The
bee.
termlned amounts, and the com*
*
*
I,
Gossett is Vice-President in
^
oaG
Directors jof The charge of the branch and R. A. PanY 1S °I the opinion that a program of exploration is justified.
Hamilton National Bank, Chatta- Wenzel, Manager,
Gossett
proved earnings of the bank during current and recent years and
the
continued
expansion of the n®o&a»
activities of the bank.
The
ing and developing mining proper"ties located in the north central
;Portion of Huddersfield Township,
Pontiac County, Province of Que-
~
Street which will be
at
npw
3
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P.
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1953.
O6,ebtc o r
24
The Commercial and Financial Chronicle
(1444)
satisfied
be
Private
environment alone;
believes
Enterprise Means
that
achieve
to
More Than Bread Alone
as
a
is
a
I
in
and
of
Not
Must
Make
Those
who,
dtf
I
whose
lives it
circumstances,
tnnrhpc
too
industrial
terprise
-
—a
too
opposition
to
be
deification
of
power
the
t
s
concentration of
for human freedom to surgreat
a
opposed
tread
to excessive
Clifford F. Hood
the birthright of
every American, as it should be of
every one created in the image of
God.
Inseparable
from
human
rights is, I believe, the property
right—the right to acquire lawfully and lawfully to hold property.V I am thinking of that not
so
much in terms of corporate
property, as of individuals' property. For if property rights are
not protected as human rights, the
physical
property
representing
the '
home can ''
be invaded by the
'
concentration
vvnvvuMn.,vu
of
temporal
in any one set of hands, and
Godless, grossly materialistic
Russian Communism.
power
to
Moreover, I think that leaders
of
American
industry
have
ex-
pressed that opposition eloquently
and
effectively in the market
place, just as the ministry has expressed it from the pulpit.
The title of my talk at the Case
Convocation, "Reaching the Purpie Twilight," came from a pro¬
phetic
vby Tennyson in
relating tbat he
passage
of
is,
had
dipped into the future far
the human eye could see" and
had "seen the heavens filled with
as
course,
rteaneandmPthe0sanc?ftv o°f
true
all
in
cases
where
are
The
most
filled with
the purple
guiding incrediblV swift rraft thrnZh
hi
credibly 9wift craft through the
lavender-hued immensity of the
stratosphere, at heights up to 16
miles It is mnriHncy Tmnxr
miles. Tt is mocking
irony, though,
S£f?th*
that thus
which
and
far
have
fastest
light,
of
most
taken
into
craft
farthest
the
purple twi¬
designed
for
commerce
heavens.
the
man
not
were
peaceful
are
through
the
ir,
my
press
—uuousnme
lishments
Unless
ligion
cnoo/>u'
by
presses
any
wholly
the
on
used
are
good
for
peace
or
for
war,
evil, for construction
or
or
publication
a
revenues
confidence of
only
attract
can
is to maintain the
a
sufficiently large
59
the
is
activity
was
only
with
case
with
familiar.
whole
the
man
his
to
that
Is
which
it
If
were
I
akin
more
to
Maker.
bad?
think
No, I
that
mosf To
am
projected
to -
include the employees of all forms
of profit-motivated urban busir
ness
to
and industrial enterprises,
£at lst t0 s"^est the
£°Sj;ary'
Vw
automatically
Rf
piety. ^we-^aii Know tnat
J?
S°'«S -j ??
a
Jne sn°uay bKlc\ ^ows o* ou^
+
•
+
it
the
}*g®s. °f
indolent and 01 those
tragic able to wrecks the haven t
human make who
been
religious bodies.
U.S.A.
adjustment to society.
No Hostility Between
Church and Business
*
I
have
or more
Free
developed these figures
percentage
rishioners
of
are
Enterprise
Sacrifice
future
your
likely
pa-
be
de-
to
w
f.r.e..°,n t.h,s:_countrZ ?
and chil- tivated
;
Without
(
Individual
of
Dignity
I believe that
our
system of
enoeoole's
1"I'"u'd''the
.
Serill weU-Sf without"saCf
%f
^
pend<"r theirt material wel1
_
women
in
grade
a
the
ago
high
misread
rificing individual dignity or sellrespect. Quite the contrary, it has
presented those striven to
safeguard and enhance
prelude to saying that them.
•
•
business
industrial
and
,
what
called
j
signs
many
experiencing
are
in
re-
something
These
I
concerns.
qualitatively, too,
me,
is
tions that we
signs
reliable
are,
indica-
ligures
as a
have
I have been distressed at times in
the
past
find
to
of the clergy taking a disparaging
attitude toward our economic sysbecause
emerging from tem-because
talk
mv
the
at
period
T
'
,
9
is tnat pad.
member^
some
vated
it
it
believe
I
is
is
It is n°t out of a desire to exact t
the last possible ounce of toil,*
moti- from its workers that industry
moti- fron?
industry,,
profit
profit
thev
have
been
the
As
wrong.
I
carries on
personnel programs de-
faith
wai Tech Convocation a 31 me V3iea- 1 Deneve iney nave Deen
1 ca -a in my ldlK
Case
5,___
?
signed to place employees where
forebears, tbey will be of maximum useful-
reverence
of unbelief, of insistence that instilled in me by my
everything be explained ration, I say to you that I see nothing "ess
and where they will be per-
^rm?r?g' as nearly as practicable,
Slrsl^ndustry^tantT
Economic
Activity
Bustling State
;,
American industrial activity I believe :
disservice
to
good-will
•
the
field
of
economic
activ-
Us
had risen to a record level of al- a natural thing. I believe that
most 63 Vz million. "Never before one or two-segments of our
m
are
our history, so far as figures
available." said the New York
.
r
em-
Pl°yees to be efficient, for through
efficiency > industrial productivity
*s increased, the unit cost of prodnd
thlf prid8
been in a bustling state. The De- if an a/liance between the church r.eAvl„c5 "ifS
partment of Commerce at the first and,.;i/bor,; to the . exclusion of bft or service is brought
oi this month reported that em- management and, inferentially at
''
Ployment in the United States least,, against management, were 5
P-r If
vertisinff finanrinn-ir
xxrVviio
a
among ljien is done by any memjy> the nation as youi know,; has ber of Ihe clergy who speaks as de"rCv\"| j/^duced
body of readers to make the adwnrtv,
in
new
a
devoutly hope,
In
private enterprise supplies a
ldlKC
wail of
lIie
revenues
oi
me
large part UJL the revenues of the
those
obtain
Christ
I
in
of
of
way
it
month
a
men,
Present
con-
free American press. But the
than
nothi"« left to Faith and Hope,
twdlfght1 of ^ientific'achievement tag*!!?
by harnessing atomic power, only
to create what another
poet has
called "our age of
anxiety"—an
age
in which the people of a
whole planet are
anxiously wait¬
ing to see whether our products
I did
as
though,
to
renaissance.
a
interest, and dependent
existence
system of
the ma-
ally and reduced io formula, with antagonistic, nothing hostile, be-
esian-
individuals,
politicgl or
by
makes
^ren jn the United States.
Cleveland speech,
owned
our
as
elevated
.g55 cities would De centers 1 or
of
five
around
urinune
that
.
of
n0„0iun^
because
JTrTMe
^ SUrViVa'' 3 C°nditi°n animal
^
a
every
modern
without free
ana
unsubsidized
economic
for
-
CaiH
free
nurtured
has
to give you an idea of how large
I
t
believe
I
enterprise
above lieve we may safely assume that,
than 92 million at the start o£ this
right, as a human
r,Vht
m.«thp
nardpH
right, must be safeguarded w the
for hp
protection of a free press, to offer
another example. There cannot be,
I said in
is
individual worth.
part, directly supports about
53 million men, women and chila
had soared to
Safeguarded
oC
way,
of which U. S. Steel
showing that church membership
The property
as
spirit
have, if only in a material
proved to themselves their
saintluJess, whereas they are ref-
than
more
Churches
Right to Property Must Be
any
then, that the component of
report by the National Council of
Naziism—have held sway?
Pilots of
commerce.
twilight
their
their
as
better fulfilled,; 4
are
expelled
from
the 75 million of those employees and
industrial
manage- members of their families belong
pleasing
little
despotism—Communism, Fascism,
heavens today
families,
material needs
they
economy
their
educate
would show that between 70 and
Seriously,
ment.)
commerce—and pilots of the pur¬
ple twilight."
are
men
enter-
.
hi year", ?hat
_
the
individuals. We must, as indi- population, 59% of their members could hardly be .*called an unviduals and as a free people make belong to one or another of our
of our AmenUP our minds that integrity, re- religious bodies. That comes to ap+ can system of private,enterprise.
spect, and moral courage cannot• proximately 3IV2 million church ,, I consider it unjust and un
is
be bought or sold in the market members among the employees of charitable to imply, that there i
place or in public office, or we are'manufacturing and mining an^something inherently i m p i o u s
doomed to failure as a nation, . their families — more than on'e^about a desire to provide, through
Mere quantity is not, of course, > third of the total church member?* our system of private profit-moany
substitute for v quality; ship in the nation.
1 tivated enterprise a better housed,
whether it be in religion or in the
Mind you, that calculation cov*.t f -more neaitntuny ^ tea, and a
products of a steel mill. But it ers only the branch of economic
soundly educated America,
summarily
campus
of
mtiv
family violated. Has that not been
,
in
day^l
recently, statistical evidence that
the church is flourishing. (I probably ought to confide in you, parenthetically, that if I didn't bring
in a few statistics, I might be
Freedom from oppressive power
stand
employed
persons
is
is encouraging to receive,
vive.
t e—
a
control of atomic
energy for application to civil life\
thousand times no! That would
stand
common
in
defeS^y^.
for
energy
But government
en-
average
SOiiM^ttribute
can
Safely
engulfed
guarded control bv government of
Itomic
mundane
and
oeoole
free
a
godliness.
same
as
those
the freedoms that
to
being
escaoe
religion
that
P^pntial
nrp
feel
I
under
how
know
not
assurance
our
myself,
like
^
improve
to
of personal morality or '
But I believe that as
better able to house and■*«
cor-
probity, we are doomed to failure as
thp prpatpst mononolv of all times
oeooles
endeavor
rect, I would think, for the size of
the families of all the 18 million
mean,
God
a
of Materialism
be
men's!'V
material lot cannot bring with it; *
the
groups.
is about
anyone's condemnatidn.
the first to say that
would
Bureau of the Census. That would
every
ftf
npnnip
a
The
I
be prises embraced in the manufacmaterial turing and mining category of the
mSr its ToSutionytSoe more application of atomic energy to g £ make a^dof
than just the material
^are
broadens^" will become celt. and if we place power
other
vision of creature comforts do not >
warrant
that cannot
terms
the
that
believe
meaning
lives
purpose
measured
warns
strongly
Power
achievement.
businessmen are doomed to failure if they make
god of materialism.
Points out dependence of public for
material welfare on nation's profit-motivated business.
ties, and
humility family
a
moral code
positive
a
our
of
sense
liber¬
our
derived
giving
inescapable imperfections, is not wanting in moral values
and does not constitute a cult for the idolatry of Mammon.
its
of all
admit
sincerity,
higher than ourselves from Whom
producer makes a case for his propo¬
American system of private enterprise, with all
Executive of leading steel
free economic system is servant
men's material needs and the pro-
the many cases of
workers and their wives
and
persons
we
nation. We must, in
and
our
can
back
President, United States Steel Corporation
Maintains
we
purple twilight of
shall have to fall older
upon the tried and homely whose children have formed their
virtues which have made us great own families, as well as the larger
attainment,
By CLIFFORD F. HOOD*
sition that the
before
the
Don't Condemn Material Comforts
We
believe
that provision
of
the thousand
employees
of
United
who States Steel. This takes into achope count the single, self-supporting
of
control
by
physical
.Thursday, October 15, 1953
..
with,in,
no bued W1th.a desire to- build up
.
so-'fJ^P
adequacy and.,
ciety;
for
possess
exclusive concern
the all-around well-heine
of
.b_e
x.na^ 1S in Miem .tp-Incfc
destruction.
But that state of affairs should
be viewed through the
jaun-
not
-
,
.
,
-
-
-
-
s
IlirifJ
nT
TnH
MTr.III(1VM^
Wnn
ic
«rnni*
been working and earning •; so uses a dollars-and-cents yardstick
°n° ®
or desense subsidizes the organs of free much."
The ; "Times" counseled, as one measure of progress.' > .
Jg
Jj . V ?' ..<
™
regarded, expression.
;
that we pause and "s^or the^^good >m our'system—^and a better one-^ th?eves of^^is eSoVer '
rather, as a two-fold challenges. ,™e point I desire to stress is flavor of the present.'!.' , v , • .has'yet to be piroven in practice— js
likelv to be reflected in consWthe challenge to
develop and ap^; f"at our free economic_system,... I dislike to use averages in re- ap.'; industrial enterprise ,must"Oration toward his fellow men
ply atomic energy for
the uses bunt literally and figuratively on spect to human beings, because make; an adequate profit in order rather than in the rebellion of
freedom of the
but in
press,
no
diced eye of the pessimist
featist.
It
should
be
^
uuiigs
iiuw
Siana,
atomic
energy is a government monopoly,:
The government has invested an
amount estimated up to $12 billion
on
atom-splitting
manufacture
of
government
not
tools
of
facilities
the
bomb.
only
and
The
owns
the
production,
atomic
but
every gram of fissionable
raw ma-
terial, too.
I
am
that
render
secret
of
a
moment
government
to
,
7
ux
T
private
atomic
implying
should
sur-
enterprise
the
for
re-
energy
But
I
ii
reality, belief in individual free- story of the statistician who
on
true
re-
drowned
trying to wade
was
across
a
after adequate profit as an end
unto itself, a worshipping of the
llgl0n- That -belief should, in a river with an average depth of golden calf.. They regard prof it as
Profound sense, undergird any 3V2 feet. I am, however, going to the sparkplug i^.our industrial
f°rm of social organization.
use an average figure that I be- - mechanism, a mechanism which
I would not be
so
theologian. I
am
pretentious
as
lieve
Hove
as moralist or a wa^
merely
a
business-
can
can
he
annlieH
be nroDerlv applied
properly
in
m
the Stu.
man. and'.like a11 of you, a demo- there are two and ninety-four one
Theological cr?tic citizen—a citizen who be- hundredths persons in the family
lieves
that
human
needs
cannot
of
i
each
of
the
more
than
300
u_
x
holHc
thp
nnsitinn
highest
y.
•
J
•
.
*n a
level of material well-
ir'W'"*-
,"'3
-
tory"1
"
Is-that; bad ?*, 1st that to be despised?;
.
-
-
nf
VirP-
LLLf !! +1.!. Prlci
-
Qf
xlrol!
v
^
'f
L-rv., gQ Jic~-
3J"™:..
ng
Works
south
^oune
™ 3^®n.g. 3 g<J?
men
ment
and
ner^onne?
Those
nossessed the temoera-
potential
*
has raised the American people to
of interest to all of you. ;
We know that, on the average,
♦An address by Mr. Hood to
dents and Faculty of Western
Seminary, Pittsburgh, Pa., Sept. 30,1953.
Piuw w pxuvmc.icaauiidoic xuui-
,
a
ch^L °k 3n aggressor» if that to pose before you
ould become
necessary.
avwdgcs,
,
dom must be founded
not for
the
"
above and beyond political and is produced by humanbeings,/pensation to hundreds of thouSeconomic liberties lies the need of each of whom we respect as>an ands of individuals who have sup- K
a Positive moral faith. While our individual and in each of whom plied capital without which jobs nArofi®
competitive system of American we try our level best to encourage cannot be created. But those who 5, 3
L
enterprise, with its wide—and a sense of personal worth. Also,-bear the responsibility of directwise—dispersion of power and de- averages are not without their ing industrial enterprises, such as
f ■?.
cision, makes individual, freedom dangers, as is illustrated by the U. S; Steel, do not regard seeking
L",-
ability
^
for *
.
steel industry employment.
But.
they said they felt hampered in
their- occupational progress because they had taken high school,
.
courses
wholly
which
were
academic.
largely or
of them
Some
Volume 178
Number 5264... The Commercial and Financial
Chronicle
(1445)
showed
resentment
at
being
re¬
ladder
and
Because
he
being
were
advance
as
felt
human
wasted,
at
power
coordinate
nor
man
the
on
enterprise
affairs
industry
live
ask
that
just
exist
not
it should
as
for
constantly
policies
are
agement
S.
welfare
and
Steel, took a leading part, in co¬
operation with clergymen, educa¬
and the
officers
of
U.
In
in
men,
successful campaign
a
for the establishment of
fine
a
That
cago.
institution
is
serving the general
safeguarding liberty
our
economic
our
vo¬
cational high school in South Chi¬
only
enterprises producing
things or providing the
It
is
dispersed
through competition among
thousands of young men for more
enterprises making such things as
steel products and those
making
also
of
services,
transportation
comes
international political situa- its
adoption
tion that is expected to follow a The
public
ing at
eco-
labor
so
of
the
government
the
different
among
the
of
segments
And in this system of ours, spirinstitutions remain sacro-
itual
from
sanct
secular
nomic.
Is
by
any
political
or
eco-
tain.
bad
a
system?
The British Commonwealth
grading.
That not
only means
higher pay, but also bolsters their
American
for
enterprise system
missionary's zeal to convince
that we of industry go around
Finance Ministers
a
you
likelihood of
clad in Galahadian armor; we fre¬
quently
stumble
clay, but I want
sure
that
you
than
more
on
we
feet
our
again to
once
ference.
of
If
LONDON, Eng.—The Common-
•
wealth
sheet.
I
and
some
a
Ministers
•
non
nouncement
v
a
$ ,•'
enc^,
elude
.
is
dragon
one
to Slay.
That is the idea, held
on
even
of
the
employment
war,
is
wasteful
so
of
life
war
and
that
Dr. Paul
for the
war
S.
U.
drbpped
into
entrance
"
after
World
^(3)
I know
profit
I
ords
I have examined the
of
and
rec¬
produces
in
in
enormous
In
duced their
both cases,
war
In American
one
that
as-to hint
terprise
has
dination
from
our
any
system of
We
or
is
merely
nnritinn
am
mors.
it
with
tration
of
me
leadiL
to
mLpiflL? win
larcelv
'not
to
unfounded
authorities
have
no
the
wish
ex-
it has
become
gold
reserve
is
liable
to
of
of
en-
Chairman
a
welcome.
-
it
would
put
up
It is
felt, however, that
not .^e
worth
while to
with the disadvantages of
have
SEC
Ed-
whole the administration has been
of
Stock
xchange,
and a
of
,.
1 t i-
a
more'
E
partner
Montgom-
ery,. Scott
Co.,
of
changed.' He
that
on
the
good, except when "political dietation
The
from
speaker
above
then
interfered."
went
into
the
&
consideration of proposed amendments
to
the
Securities
Acts,
stressing those that he considered
important for a better and more
equitable administration of these
Acts.
members
the
York
New
Stock
Commission: It is true the Com- ing from The change in the namissi°n is not due to report until tional political climate in 1932.
From
a
discussion of the Secur-
ities Acts, Mr. Scott passed on to
the tax laws which are a detri¬
He
pointed Out that these
deterrent to
the
taxes
increase
were a beterfem 10 tne ^crease
vast subiect to be covered and the Mr. Scott reviewed the legislation, of the number of corporation
Even
so,
in view of the
Following
this
political
survey,
thoroughness with which Ameri-
beginning with the passage of the
stockholders in the United States.
can commissions of this type like
Securities Act of 1933, and subse-
The Brookings
not
an
.
m
unduly long time. '
In any event
----
it is
-
London
regarded
-
now
practically certain
as
tbat nothing would be done until
methods
by which
the
purposes
of the several Acts relating to the
^
-
securities
securities
Congress,
industry,
passed
by
Institution Report
—— •» —^0C there efs no reason, Mr.
0 is 0 e
but
.
nUnn
-w
'
^
Scott
were expected to be stated, why the number could not
after the CongressionaL-Election accomplished. In his exposition of be increased to 65 million.
in November, 1954.
alone
^histhe posconsidout
rules
the Sli^jec^
,
„
JL
Commenting
Scott pointed out
.
.
.
.
further
.
on
the
*,,+
Ability of the January meeting both the good points and the bad same topie, Mr. Scott pointed Out
deciding anything of fundamental points in the legislation. Mr. Scott, if a majority of Our adult popula¬
importance concerning the return jn the course of his address, re- tion were stockholders, it would
J? cor^'ertibUity. Moreover, even
rpayZX^uldl'm^ t\"aCn
adminis-
the
the
po- taxation of dividends; and (3)
the litical and legislative actions, dat- the inequitable Capital-Gains Tax.
of
whole not pessimistic about busi-
ijpmands.
of
-
were
Needless
wage
and
trative decrees
been
considerably
believed, however,
Philadel-
-
administration
lec-
was
~phia-B
been
th^Jnl^lMJttoZlnCr^nC
;of the gold reserve through
gen-
courage
Of
early re-
an
turn to convertibility,
*Purkey or tbey could bave made 20-year background of the
someone'^ else
eration
te
time" has
authorities
ru¬
however,
repetition of this
In the meantime
Steel
Corporation, when I say this: That
industry cannot exist at all with¬
out adequate profit; nor should it
in our society, which is based on
to
too
sufficient to rule out
ment to the securities industry.
really Exchange.
anxious to proceed with the inThe subject of the lecture, en- He named as chief deterrents to
into tbe Commonwealth titled "Political Influences Affect- investment: (1) high and confisplan- expeditiously they could ing the Securities Industry," was catory income taxes, particularly
either have sent someone else to opened by Mr. Scott, by giving a in the upper brackets; (2) double
are
an'IZrZm'Jjit hfXffmS
further subsSntial increase
deeply-held
States
sea-
Scott, Past
gar
Turke>'' It is felt that if the United
.States
possibil-
u-
f^trsssesttssr^
present,
a
duo
perience.
in the adminis¬
United
in-
an
of the weak
a
■
ail
thi^a^tifSiil
rinr
but
to witness
personal beliefs and what I know
to be the philosophy of those as¬
sociated
strong de-
Much
March 6.
was
At
British
a
Arm
dpvplrmpd
at
situation
personal devel¬
well as in its purely
expressing
MJn'
1
In'view
was
though
aspects.
I
nf
th;
nf
fnfiiiv
for
material
nf
result
world
e
hie
in. the quality of offering greater
as
onH
a
flux of cold
or¬
effort to make it better,
opment,
thJiact
Fin^^l
Q^9 ^t
brcfprlin?
system which is still
one in which there
is
opportunity
nn
thA
at
a
evolving,
ceaseless
turer
tTlhe ^iteTsfates "from
g.ve
mment-As
en¬
'S®^
slowly.
be wihpl hoilv
vdrtihiii/v lac rfroAtiAainr
practical system
of supplying men's material needs,
yet
preserving
human
dignity
from political and economic tyr¬
anny, it is the best system man
has yet devised. We also believe
it
the,
the
The
son.
now
rllnlppdirw^rv
proceeding 4very
.
to
believe that, as a
that
'current
Commonwealth Plan of converti-
fn^hnnm w
not
irreverent
sanction
above.
fhic
isters
industry I know of
or
British
tho
Devised
arrogant
so
The
Following
re¬
Free Enterprise—Best System
no
educational
lecture of
the
it looks as if
American decision could not
mere
change, the Investment Women's curities market has received very
Club of Philadelphia on Oct. 6 little
in the
way
of statutory
heard its first amendments, but the methods of
the
to
not
The
General Election in the
distant future would be
a
Under the sponsorship of the
It was noted by Mr. Scott that
Philadelphia-Baltimore Stock Ex- the legislation relating to the se-
that
support
ity of
Women's Club of Philadelphia on Oct. 6.
vestment
«:a/?u.
i>ter^ml£s!f^n Als m n0, hurrTy to
commit itself. As seen fronv Lon-;
ris" to u™
Sbilitv SPoefCUeariv ^oZcrtfbmtv
profit rates.
Yet
effective
give
favor of an early election owing
to the difficulty of making prog-
Affecting Securities Industry
United States Government decides
to
towards
President
should
quantities
"war; the other is in the aviation
industry.
steps
the
of
wax
used
premature
.Commonwealth
Governments appears to be anxious that the news
fat on war. One
explosives and chemi¬
some,
matter of principle,
cooperation: be, expected until the end of 1954
development of their eco-;or even the
beginning of 1955.
resources.
In < particular,**
j
\lu
the timing of the next move to?
y •
Washington
.
cals
in
until
and
a
in.the
the convertibility of
ling will be considered.
corporations which, in the fancy
of
unless
far
appears
Edgar Scott, Partner of Montgomery, Scott & Co., Philadelphia,
members of the New York Stock Exchange, addressed the In¬
some extent the
very
of the So-
now
for
January
an<* payments bility.., And
..,r
wards
couple of other larger
a
directi0n
a
of
freer-Trade
»
began.
s
as
devices may be decided
go
Government's
This is all the
ist resistance.
conceivably
^
America's
Wars
the
-
Party which
nomic
.
rate
after the Korean conflict
II,-and
Einzig
..
d
covering the widest possible area;
to
goes
machine.
Steel's
sharply
much of
moving
o war
system
And
in war, and afterward, so
the individual's income
pay
t
sub¬
■
some
of
It is just
however, to
for
that
profit rates shrink.
stance,
oi
rise in taxes to pay
enormous
for! the grim business of
that
are
existing exchange restrictions
(oVt PritfrAcc' pending the decision to return to
ni
thA'?5fanQ convertibility. They can ill afford,
me
pians
expands
but with
swells;
the significance
Conference.
the
ress with the Government's legislative programs in face of Social-
anxious to play down
VArpa. in'iQW
!
production
British quarters
reason
'up?n.to relax to
j; grabs prodigious
profit from a war
of
this
payments
war,
helpings
In
e e
*>*)A®alanc,e
ecdnomy.
and
in--v; Official
1CS'
t
economists,
that
the
industry
of
the''; nation
some
feeds
til r
of
electoral prospects.
provement
Discusses Political Influences
speculative increase of foreign
sterling balances.
I would like
by
heavy
a
Confer-
be no question of restoring convertibility unless and until there
are very distinct signs of an im-
Gallup more important as the Opposition,
improve- encouraged by the improvement
an
convertibility they would be opposed to the utmost by the Social-
the gold reserve brought about by
their
mighty serviceable suit of it, to
inject a crassly commercial note—
there
disputes and rising cost of
production through higher wages
merely for the sake of a purely
fictitious and passing increase of
the Agenda of
of U. S. Steel's stainless
products could be tailored into
ma-
the
summer
indicated
Should the Government decide to
wage
will
Sidney on Jan. 8, 1954.
the
official
anAccording
to
however, figuratively
Galahadian armor—
may,
on
Finahce
in
meet
put
Sterling convertibility resulting from the con¬
no plan of convertibility is likely to be put into
Says
support of the
the electorate in
but also
no
take
sensitive to
are
sees
elfect until the U. S. Government decides to
give its support.
as¬
impersonal balance
an
coming January, Dr. Einzig
prospects
in
the
United
that the securities indus- no
longer be
politically- advah-
try and the financial district were tageous for demagogues and their
at first'unanimous in condemning
ilk to victimize legitimate busi-
States the prevailing view is that the new legislation "as terrible," ness. This has been possible sole,,
the outlook is
certain
than
now
it
decidedly less
was
at
but this point of view has been Jy because owners of business are
the time rhanged
when the convertibility plan
was
%
at the moment to
appears
command the
desire for convertibility, in Opposition they have declared themselves emphatically against it not
only as a matter of expediency
meeting of the British Commonwealth
a
this
which
of its prospects in the country, is
likely to prove to be difficult durto be in a stronger position than ing the new
Parliamentary Sesit was at the time of the last Gen- sion that is to
begin in November,
eral Election in 1951.
Although A situation is liable to arise in
while in office, Socialist Ministers which
Sir
Winston
Churchill
pay lip
service to their ardent might feel impelled to decide in
cialist
Sterling Convertibility
In commenting upon
has
ment of the prospects
By PAUL EINZIG
will not mistake m,y
for and my belief in
you
enthusiasm
the
And
of personal worth.
hope
con-
prolonged
Poll
tional education that leads to up¬
political
also point towards a
delay in putting the
convertibility plan into practice,
I think
•
Since the late
industry by giving them an op¬
portunity to obtain adult voca¬
I
internal
siderations
•
terial welfare of older workers in
sense
•
British
•
that
not.
domination
power,
far
very
on a
convertibility. Indeed it
outflow of gold from the United would have to be abandoned
long
States is practically the only fac- before the
change of government,
tor favoring an early convertibillargely the result of the speculaity. The extent of the interna- tive pressure on
sterling due to a
tional redistribution of gold has
widespread anticipation of such a
been so far very modest and its
change.
continuation even at the present
From an internal British po- '
pace appears to be far from cerlitical point of view there could
itfair
a
Negotia-
pace.
bi-partisan basis,
opinion is not likely
sterling convertibility
if the political party
trust
are likely to drag on during
jority of
the
the greater part of 1954, so that country, declares itself
openly
the
economic
consequences
of hostile to the idea. It would not
peace in Korea are not likely to be
an
unreasonable
assumption
become evident till early in 1955. that a Socialist Government would
The moderate but persistent suspend
of the prime tasks of
one
snail-like
a
to
tions
and
economy.
services.
products which people are free to
choose as alternatives. In the field
which they possess God-given tal¬
ents.
It is also serving the ma¬
between
power
branches
self,
same
same
the
wife
executive, legislative and judicial
among
the
advancement, and greater
contentment, in the kinds of work
they want to perform and for
his
affairs, power is not government is to maintain
through competi- and even balance of power
serving the ends of profit-making
industry, except incidentally.
It
is serving
society by equipping
rapid
take
dispersed
tion
not
to
management,
between
agricultural industry and urban industry,
Just as the Constitution provides
for a balance of power among the
American way of life
there is, as I said
earlier, a wide
and wise dispersion of
power.
In
tors, labor leaders and local busi¬
ness
chose
•
a
nomic
dignity of the individual,
of the
who
There is also the division of
itself whether its actions and
with the approbation and encour¬
drafted. For this reason it is con- ists, which would not make the
sidered to be a matter of elemen- task any easier. For one of the
tary precaution to await the full conditions indispensable to the
reactions to the improvement of success of
convertibility would be
long journey by foot, in the definite settlement of the Korean
hope that she would thereby lose-conflict. Progress towards such a
excess weight.
settlement appears to be proceed-
by bread alone,
should
profit alone;
Moore,
But
men.
cannot
man
rap¬
of
dominates
to
once
choose to
private
values
Mr.
three
the end that neither the state
they thought they should.
as
political
mind.
People can
transport their persons
branches of
government, and of or their goods by rail, by air, by
economic power among the vari- road or
by water.
And you may
ous segments of the
economy, to have read the news stories of the
of high school diplomas.
Unfortunately,
they
did
not
possess the kind of training en¬
abling them to start higher up
the
of
the
among
holders
idly
division
a
quired to start at the bottom rung
of
'steel
industry
employment.
They thought that did not befit
25
considerably -during the;
last 20 years.
now
only
a
small minority of the
voting population.
The Commercial and Financial Chronicle
26
.Thursday, October 15, 1953-
..
(1446)
of reducing taxable property val¬
more
people, it is providing an
opportunity for happier and
countries of North
neighbor
liome.
Looking
possi¬
future
to
in
be too fan¬
tastic to think of the automobile
bilities
it
not
may
of
potential liberation
pressed peoples.
as
a
1
whose
tries
there are no
if
wonaer
ing
to
op¬
coun¬
of
which
cars
out
are
would
to¬
mitted
if
made
had
he
been
have
ever,
per¬
good
on
delivery of the Volkswagens
promised
the Germans whose
down payments were taken.
Certainly there are vast areas
of the world where intensive
mechanical
«of
the
remake
would
•there
and
economy,
trying to bring this
men
are
use
burden
of
beasts
about.
from
visitor
A
acutely
in
India,
the
of
conscious
huge
gap
earning power between his peo¬
ana
our, asked me not long
ple
ago:
"Can
imagine the huge
take place ip
you
change that would
country just if it were
pos¬
sible to sell your Plymouth autorny
amobile
that
there
the
for
sell
you
price
same
it here?"
It's
interesting to speculate on
happen to the vast
centuries-long social problems of
a
country like India if its people
could obtain any important part
-of the mobility that the automo¬
bile has brought to our nation.
In a single month in this coun¬
try we scrap — throw away — as
woany cars and trucks as the total
what
in
would
in all of India.
use
In six months
we
motor vehicles
as
the
of
vastness
•How
scrap as many
in
are
in all
use
Russia.
Soviet
long could the police
•withstand
the
automobile
state
as
we
it?
"use
All
with
a
•about
is
unfinished
let's
but
vengeance,
things
business
talk
closer both in
time
has
Business
work
its
satisfying the needs and wants
of
the
ever-growing
suburban
to
the
Yet,
the
into
of
growth
fairly
acute
to
overcome.
be
facing
zone,
cases
have
We
dential
rounding
sure
surrounds
that
water
countryside
puts
values,
tangible
that exist in
our
and
intangible,
concentration
city,
facili¬
ties, its great merchandising
ters,
its
in
resources
its
with
of industrial
cen¬
people
and
of the supermarkets
department-store branches
impact of the automobile for
so¬
built in the suburbs, and
are
they
becoming
are
measured
in
investment
an
billions
of
dollars,
cial change and expansion has re¬
doubled its force.
One outstand¬
there cannot be duplication in any
one suburb of the infinite variety
ing
the
of goods and services available
We
the heart of
phenomenon
has
been
mushroom growth of suburbs.
•thought
knew all about subur¬
we
banization, but since the
accumulated
a
deficit
broke
demand for
of
the
communities
the farm
We
housing,
long standing,
bounds
and
of
the
war
really
organized
spread
across
lands.
don't
to
study
popu¬
it in
see
the
clusters
of
communities around all of
new
our
big
cities.
In
that
health
bound
city
proper.
for
years
a
have
and
of
aside, I might point out
all
the
conditions
which
terrific
than
none
the
truck.
is
more
passenger
We
are
fundamental
down to bus routes
or
longer
Our
cars
can
want to go
and
bring
to
There
us
are
the
take
that will
road
we
us
shall
where
trucks
our
goods
of
can
need.
we
thousands
mow
tied
rail lines in
•selecting the place where
live.
the
and
car
no
towns
depot.
In
its
cumulative
growth of
new
way
new
never
our
need
a
effect,
rail¬
this
suburbs is creating
of life for
ooportunities
problems.
For
us,
as
and with
well
more
as
and
fact
brutal
is
is
of mortifica¬
process
been
and
residential
creating serious
economic
tax
and
areas,
greatly
new
The
r
services
it,
suburbs
ernment
to
were
escape
solutions
the
potential
fense
just
by putting the
back,
some
mendable but misdirected
all
Not
de¬
that what¬
away
made, their
independent
decisions in govern¬
cannot
big
are
be
of the defense program
course
zeal for
the
and!
entailcan measure the
significance of the Russian Hbomb or
compute whether the
expenditures
Only Washington
are
people who wapt to use
Korean
is
War
will
it
ended
only in.
or
suspension.
million people mak¬
have six
we
for
We must turn to it for the future
problem
is com¬
views
negative
such
private plans
outcome
economy.
absolute:
in
us
ever
old
good
requirements
against foreign threats, loon*
over
move
is
being prominently in the
The
immensity of the public:
debt, the state of the budget, the
better, some is desire of the
the trouble of finding ment.
another
on
this
of
that
get
can
foreground.
If
count
can
we
continued
on
in
continu¬
the
They
of the Automobile Age.
ance
part
backlogs of
future, which
the
competitively for attention
slack develops from defense,
press
as
a
that
activities,
private,
for
ing
people in general seem to tablished constitutional delegation
They share in
placing of power is for "regulation of
reliance
on
some
generalized interstate commerce." There was
patent - medicine approach as a no time there to develop what I
expect.
substitute
for
common
sense
working at the painful multitude
of researches and actions that are
.
.
'
'
they
press
behind
the great
postwar wave of industrial expan¬
load
the
on
cost
the
automobile
full
form
its
can
move
wherever
can
its
role
social
with
only
per¬
when
dispatch:
owner
is
minded
it
go
to
do so without dispropor¬
tionate handicaps and risks.
go
and
nearly 60 million vehicles
With
The
public
in
the decay zones has
increased.
The
Public
Building Administration has com¬
piled figures showing that slum
and
semi-slum
cover,
on
areas of big cities
the average, about 20%
of the total
citv residential
areas.
They house 33% of the popula¬
tion, but pay only 6% of its real
sive
cannot
towards
fact
that
be
pas¬
now
economic
activity
curious
driver
Better Highways
Need
licensing
vehicle
and
in¬
education
and
driver
training from the schools up; in¬
telligent engineering
which in¬
spection;
cludes
traffic
control
well
proper
road surface. These
are
as
some
That
systems
as
they
where
work
used
the
road
today, it is being properly is shown by the fact that
handicapped and badly. The coun¬ despite hit or miss application in
transportation: the publicly pro¬
vided component—the surface to
travel
cented
the
by
hysteria
going
makes
up
mess
situation- is
the
of
ousness
vehicle
the fuel it uses makes
not the road. The seri¬
progress;
And
The
on.
progress;
ac¬
growing note of
in the clamor
our traffic
mess.
present
over
it is!
in
creating
favorable climate for
a
employment, for buying, for sell¬
making things and ren¬
services, and it needs to
shape its policies, at the very least,
ing,
for
dering
the
that
so
have
proven ones.
on
a
healthy
of
inescapable
government
required.
V
thrust
the
meant:
because the safety of its structure,
thing is that ways too, depends on business being
of getting order out of chaos, and healthy.
Government's take from
sion and modernization.
the carrying on of commerce is
The city expressways are just reducing congestion and its dam¬
age,
are
known now.
Ways of so tremendously large that any
one facet of the job that lies ahead
keeping accidents down are well indifference towards the health of
in bringing up to date the whole
understood:
active
enforcement business can only result eventu¬
country's
network
of
streets,
of
reasonable laws;
particularly ally in common disaster. Govern¬
roads, and highways.
as
to properly set speed
limits, ment has to be actively interested
and
problems.
and
an
days
words
other
Some
standpoint
far these days without gov¬
very
try is far from fully motorized, many areas, the accident toll of
and yet the handicap is growing today for the country as a whole
'
is well below the rate of accidents
Blighted Areas
year by year, day by day, as we
that used to prevail, when cars
The property values in blighted fall further behind in one of the
three
components
of
personal moved half as fast as now, and
areas have declined
social
posible,
a
the
Commercial
slums
liave made the growth of suburbs
we
of
huge
are
part
inevitable
seem
The
with the health of the
up
public,
at
big city.
that in most of the great cities of
America we have had under way
tion.
need
lation figures to realize how spec¬
tacular this growth has been. We
can
The
a
These
-
business
large cities.
the
near
marks of the decades ahead.
pres¬
Suburbs exist and grow because
are
cities of the border¬
resale by the
can¬
us,
the task of preserving the
on
that
Since World War II the dynamic
in
—
fixation
the
Finances
living driving trucks. Some reduction of government outlays,
people would push a lot of these and on a reversal of the infla¬
not sprinkle lawns in a hot spell. ing property for private develop¬
off,
thinking
that with
fewer tionary course, the prospect stillSewers give up in a big rainstorm. ment, the profit going to defray
trucks
less
costly roads would is not one of simple reconstruc¬
Telephone pay stations, one per the cost of the public works. The
then do the job.
They ignore the tion. We have seen the new Ad¬
block, dot some new develop¬ spirited and imaginative Zeckeninevitable loss of the economy as ministration's
program
at work:
dorf has touched
off plenty
of
ments where private phones are
a whole, and to the pocket books
and
we
should
unquestionably
But
things of the future. School chil¬ controversy with that one.
of each of us individually, if to¬ cheer the way in which course
even
without that short-cut, can
dren do their lessons in shifts, and
day's
nearly 10 million
trucks has been changed, carefully and
there be any question of the in¬
the tide of work-bound fathers of
were
blocked from performing as delicately, from the old method
creased values that will develop
a morning taxes the already wide
well as they do.
of
manufacturing
symptoms
of
traffic arteries and makes us pray adjoining well laid out parkways,
Others want a national 50-mile prosperity
by
throwing money
for speedy completion of the De¬
and accessible to newly speeded
an hour speed limit or 45, regard¬
around, to a systematic effort at
routes to major destinations?
troit expressways.
less of local conditions, sure that getting the finances of the coun¬
Can any of us here in Detroit
This pressure is a phenomenon
such
an
action would solve the. try in control without standing
doubt that
the development
of the age, and around many a
of
accident
toll.
Others, with the the economy on its head. Some
city the prospects of solution are the river front Civic Center will
same
sureness
that there is cor¬ good minds and steady hands have
far less good than here, where a force development of high quality
relation between top speed and been at work.
the
considerable portion of foresight on
immediately
adjoining
What we hope for is extension
smashups
despite
the
evidence
and
intelligent energy is being areas?
from low-speed congested
areas, of this program into a thoroughly
At present taxpayers in the cit¬
expended. Mayor Cobo told me
would
put governors on all dynamic policy towards commerce.
recently that completion of the ies have a stake in such restora¬ vehicles and fix them so
nobody That has no resemblance what¬
tion to spread the base bearing
now programmed water facilities
could get out of the way of an ever to government-in-business or
of Detroit will double the flow we the costs of modern metropolitan
impending pile-up. Others think regulation of every business act.
have and will make possible help facilities.
Examples such as that a network of
luxury toll roads on
I happened to be testifying be¬
set
to the communities outside.
by
Pittsburgh's
Allegheny
the routes they are interested in, fore a
Congressional committee a
But there is another side to the
Conference with the renewal of will fix everything up.
short while ago and made a ref¬
suburban migration.
The explo¬ the Golden Triangle and accom¬
There are many variants—gen¬ erence to the
"promotion of com¬
sion of our population from our panying improvements are sure to
erally they have in common an merce." One of the
gentlemen
tightly packed cities into the sur¬ become one of the distinguishing
opposition to the kind of progress checked me on that—the long es¬
of
and
Automobile
these results about, in¬
excess
condemnation
and
volve
slower
Government
of
business
a
for high-quality roads for themselves
want others ousted. For instance,
ideas
drastic
more
bringing
Regardless
Dynamic Impact of the
zones
business areas.
or
The
some
right around here. This
blessed with the abundance
us
their tremendous range of talents.
and space.
in
value
to
way
paying their way either as resi¬
and
of indigestion
pains,
growing
are
of
the
which without them are no longer
is far from automatic.
There
ter¬
multi¬ backwards.
how the clearance of great
see
re-creation
countryside
surrounding
have
greatly
traffic ways can open
cities
our
must
—
But we have barely begun
pers.
market.
•
routes
facilities
plied parking areas handy to the
destinations of workers and shop¬
out
cut
in
they
this
these
minal
night on brightly lighted lots in
fhis country.
I wonder if Hitler's war adven¬
ture
and
necessities
that
possessed of just the number
used
themselves
houses
countless
the
serve
No discussion of the future front*
many
gadgets we put in, on, and around
-might
be
turned
right around
jif they were of a sudden to be¬
come
the
from
the
Role
necessity, even job now is to make space by re¬
places the work still ducing the number of cars on
streets,
slowing
down
the
remains to be done. We are still the
reluctant, I believe, to appreciate flow, making cars smaller and
in
to
up
business.
inevitable
an
as
if
them.
orientation
political
is
home—items rang¬
suburban
a
public,
wherever
there
is
traffic, and.
those
that supply
automotive:
wants. Close up on these bene¬
ficiaries are the public bodies that,
use the taxes produced
by active^
which
with
revenue
that,
establishments
countless
spring
practical solution of the up.
Here comes the conflict: there
other great disease of the cities:
Hardening of the traffic arteries. is a considerable body of opinion
We have long accepted enormous that thinks we have spent enough
expenditures for arterial routes on roads and streets and that the
For producers
providing new
and growing markets for every¬
thing that can contribute to the
convenience and pleasure of life
it
sellers
and
the
but
of
uct
living.
healthier
Outside, in the
rest of the
world, the privilege of owning
x
car today is progressively more
limited as we go
farther from
science,
the
have
engineers
their
combat the disease.
Unfinished Business of
The Automobile Age
.America.
highway
advanced
to highway plant as a whole is very
nearly an antique. If we are to
In the latter days of the Auto¬ avoid choking of the progress of
mobile Age it has been becom¬ automotive activity and use, we
ing clear that there is no longer need a concerted and deliberate
reason for accepting this creeping program
of catching up. There's
probably not less than 15 years of
decay as an incurable sickness.
work involved if we are to catch
Its cure can come as a by-prod¬
and
ues
our
blight, and, consequently, since;
the
of
6
Continued from page
the
to
revenue
and
taxable
the
keep
will
sources
to
strength
the
down
pile in
debt
eventually reduce it.
dilemma
The
of
the
moment,
the
between
striving towards a
budget and reduction of
taxes, is a sobering one.
balanced
But
cannot
we
be
sure
of
sus¬
high level of economic
activity, on a non-inflationary ba¬
The importance of these things sis, unless there is tax relief. Last
is that there are obstacles to be summer's disappointing postpone¬
dispelled from the public mind, ment of the expiration of that mis¬
half
were
and
as
there
if the
is
tivities
omy, as
The
is
action
to
be
taken
automotive complex of ac¬
sure-fire
taining
a
numerous.
to
continue
being
a
spark plug for the econ¬
it certainly can be.
thoroughly
practical
called
Excess
Profits
cannot,
be repeated. Its ending
will help, and so will the expira¬
tion at the end of the year of the
Korean increase in
ap¬
Tax
of course,
but
the
sounds
personal taxes,
that
come
from
simply the country put proach to the traffic question is Washington about postponing or
estate taxes; they are the scene on a road building sprint through to provide what the public wants blocking a reduction in the com¬
bined corporate normal tax and
of
55%
of
the
juvenile delin- the '20's. It got us out of the mud to use rather than try to force
auency; 45% of the major crimes; and served well the car of 1925. people to do with less. The direct surtax rates that now total 52%,
60% of the tuberculosis, and they Do you remember the car?
You beneficiaries are the millions of have an ominous sound. We know
absorb about 45% of the average could only want it today out of people who use the roads inces¬ that nothing of that sort will be
done lightly, but still there has to
sentimental reasons.
citv's budget for services.
santly; the secondary beneficiaries
be sometime
a
substantial turn
The movement of city residents
By: 1931 the sprint was over. are those who profit directly or
into
the
suburbs
signals
Stated
spread Some road
building
has gone
on
indirectly
from
the
movement—
downward
in
a
tax
which
has so
Volume 178
Number 5264... The Commercial and Financial Chronicle
(1447)
21!
•-M
great a bearing on the costs of aspects of the unfinished business many-of them, in the
relatively
virtually everything people use. which we have before us affecting near future, were to
report the
Whatever
each^ of you person- importantly the automobile indus- coming of
u.,-...
ally
may
of
u..*
x
-
broad Federal sales
think of the desirability try, but significant equally to
or excise
terprise in general,
tax, the indications of interest in
a
some
to
way
spread
more
equi¬
in
en-
an upturn.
business
0Ur
observing
The Future and the Auto Industry
ing
•
have
we
the
automobiles,
new
been
continued,
who
desks
in
They
first
grade
this
month,
levied
had
advertise
to
^
they would give
am
Xa
ama
v.
...14W
i.1_
rate.
Crowding
be-
cord with the President's comment
that
strong
a
case
be
can
up-to-date
of
made equipment.
mechanisms
and
regard such developments as other
tax
relief in other in-
dustries subject to such taxes. His
Tastes
\
may
•
a
,
the
to
the
level
of
matter
Wayne County in
of car ownership,
try something like three
at
years
fortunes
„
.
touching
broadly
the
of
auto-
tak-
even
no!og?cal advana^ttat burst'upon
j*
r
x_
x•
from time to time
us
,
like""the
har-
nessing of the atom or creep up
on
us
piece by piece
Making
these possibilities reality is a full
order
,
#
to
keep
busv
us
for
**
j
time to
For
some
come.
all
of
us
in every pursuit
walk of life the future
is spacious. In inventing, produc¬
and
every
ing,
selling
„.0,
—
0
in
charting
ning
building
we
all of these fields there
be
done
limitless
in plan-
and improving the
communities in which
to
true
....
courses"for°government
vast
live—in
are
things
offering
for intelli-
areas
opportunity
gent action,
The
on
books
will
not
soon
close
human progress.
By JOHN DUTTON
Time the Interview
This week's anecdote deals with
phase
of
know that she might be
that for investments.
salesmanship
on
,
only
possibilities
are
_
„
is
the
Securities Salesman's Corner
sometimes is overlooked even by
the most experienced securities
conversions of stock perity.
Can we have any objec- m^n. Occasionally an opportunity
will get any visible improvement,
models; the great majority seem tion if we get to the place where arises where a new account can
The President, by the way, noted to want the all-around car.
They the buyer as well as the seller has be developed but, unless the conthat
the
motion
picture people are conscious, no doubt, that one something to say?
ls' ma<te at the proper time
could not really blame their cur- of
these days they'll want
one
The automobile industry thinks ?nc* place, unnecessary difficulty
rent difficulties on the excise tax. with still newer
things, and it will not. It made its way when selling ls encountered.
those who make the loudest noises
This
on
would take the automobile indus-
change,
Americans
now
so
than
healthy, even bullish factors?
but up to Can we fail to take comfort from
voting for the the decline in those totally nonmain reason, however, was that
living-room-on-wheels, equipped reproductive expenditures for war
the Treasury could not stand the with
every
labor-saving device and defense?
loss, which says in no uncertain and convenience
they can
get. v We have been running indefiterms that relief is going to be Some pay extra for foreign sports
nitely now at levels of activity
hard
to
get.
One authority on cars as they would buy a yacht or which exceeded the marks of our
Washington maintains that only a saddle horse; some spend small greatest previous periods of proswell for
as
i
...
.
^
up
public.
perienced already far more readprospective customers some pro- ; It is an interesting thing that justments than are generally rectection if the tax were repealed, in the postwar years, public
pref- ognized, and the purchasing agent
The
motion
picture people did erence has compelled the shelv- is assuming again his traditional
Estill better this year, they got a ing of some small car
plans; has role of discrimination and selecrepeal bill all the way up to Pres- disregarded the offer of stripped- tion in procurement
ident Eisenhower's veto. We have down
ultra-utilitarian
cars,
and
If one is willing to look beyond
nothing but sympathy for their has insistently registered its in- the illusory pleasant symptoms of
point of view, but also are in ac- terest in the most wonderful and inflation we have had, can we
can
output
motive market, without
birth
^prior ^"the'folTovving'ylar^^'Sng
«4-a
best
our
tional
^
riAivi
double
far'
from
onH
oflnr
Q \L
Looking far forward, our own to thTTnnrth of .Tn 1
to the Fourth
July and after, 3V2 million each year 4-^ nearly
to
industry expects to be affected and prior to Labor Day and after, four now!
ment on
a
few selected victims profoundly by
the technological have been taking delivery of cars
Today's college enrollments repcannot fail
to be good news to progress all around
us, and which at a steady pace.
All signs point resent only the small baby
crops
Detroit,
whose
industries
have we oursdjves
are
helping bring to there being many more of them of the depression thirties
as
do
■fnv*
/\f
been singled out for some of the about.
( Tphe possibilities are far with intentions to buy.
the numbers coming of age today
biggest chunks of this kind of rev- beyond^ computation and predic- *
We are, as a nation, for the to form families and enter busienue.
tion. My company alone has 4,000 present out of the
unending post- ness. They still represent a huge
Motor vehicles, parts and tires people at work in
engineering lab- war series of shortages. Tremen- consuming population group.
have been picked at as have, say, oratories, and
many more on fac- dous expansion of plant, especially j
That is only part of the picture.
mink coats and tickets to amuse- tory processes. Most of their work for raw
materials, has pulled up, For all our pride in being a car
ments.
In
one
aspect,
slightly is due to be expressed concretely generally speaking, with demand, traveling
people, our market in
worse:
In the Truman days the in evolution of the
present vehi- Business after business has gasped the United States today has not
mink people had on such a cam- cles—an evolution
closely linked with relief at the return of more been fully developed. To bring
paign for tax reduction that they to present desires of the Ameri- balanced conditions. We have ex- the whole of the
Unitbd States
the excise load now being
by the Federal Govern-
tably
about
part of the bumper crop
of babies that came with World
War II's sharp
upswing in the naare
„
—„—„
0
—
r
to
prospect
The sales manager was right up
this point—follow a good lead
and do
at
a
the
mean
so
as
soon
same
possible.
as
time
this
does
But
not
that youc have to hot-foot it
jnt0 someone's business office the
very next day after a casual conversation and then and there try
important to have a very sal- was a necessity, and it built, or
In this particular instance, a to offer some investment sugventure that no industry, no mat- able model,
appealing to another helped build, selling into a great casual acquaintance was establish- gestions. This mistake may seem
ter how hard pressed, is likely ambitious guy with only a little art. It planned its product devel- ed between a securities man and very foolish to
anyone who has
ever to make a clearcut case that
less
money, when trade-in
time opment, its engineering, under the a middle-aged lady, both of whom had experience in sales work that
any
given tax is choking it to comes.
sharp discipline of consumer had offices in the same building, is on such a confidential basis as
death.
What also
is
obvious
is
It seems to be broadly expected whims and enthusiasms. Our com- They would meet in the elevator selling securities. But one cardithat if you have difficulty getting in the industry that not only au- pany
actually made its place in or in the lobby of the building and nal rule that I have found is funcustomers, as some of them have tomatic transmissions but power the toughest years of all, and a pass the time of day to each other damental if you want to establish
had, and you have to collect a 20% steering will be approaching uni- market in which every sale is not —after awhile they became quite clients who believe in you—set
That
is
perfectly true, and
override
revenue
I
your
about
per
relief.
Inequitable Taxation
Taxes
is
It
uneaual
vastly
are
everything
ride
be
price, you can't versal application before too many
increasing your years. A dark horse of great pocustomer without tax tential is air conditioning. Its re-
on
much
do
yet
pretty
hard
friendly. One evening during a
rain storm the salesman offered
to give the lady a ride in his car
to her destination and during the
trip they discussed their vocations,
When she heard that he was in the
without it again, ords; that the slight reduction in
In fact, it is quite conceivable < to the fourth quarter now foreseen
investment business she suggested without interruption and on a conthat she had some money that was fidential basis. The old adage that
days.^never want to be
these
that
clear
but
made by the buyer saying "please"
has advantages for any business
imbued with vitality.
ception has been extraordinary.
It is an important and exciting
After experience with it in a very thing that nationally plant investlittle summer heat, many people ment in 1953 is setting new rec-
even
the
manwho pays no Federal income
me
giving just about will
every fourth dollar to one of the the
tax
collectors.
The beneficiaries that
?
that before very long roles
be reversed, and it will be
automobile air conditioner
tax whatever is
of Social Security
I
am
do
sure,
will
be
driving
people
to
pension checks, equip
not
their homes with climate
control!
escape.
^will leav,^afshJlo°7lk
195210US 3
lme
C r
things
time. The sales-
over some
,,
man said that he would like
consider the adverse thand th
d
pressures
under which this acfriendly state of mind,
complishment
has
been
taking
J
When
m
.,
„
you
do
in-j^y
interview up at the proper
time and place. Don't rush things,
The first interview in particular
is important—find out what your
client needs and wants. Sit down
where you can talk things over
your
case
a
and there is
hurried
revisit
need for
was TO1such
no
of any
prospect
under usual circumstances.
>
When you place a client's busi¬
ness
in the
position that it is im-
*
It is the misfortune of
farge
that
so
times
numbers of people, and
vocal leaders stick to the
many
notion
our
that
if
sonal taxes in
you
take
off per-
the lower brackets,
The next day the salesman mensales manager that
that people have for doing things tion of Federal spending; the pro- he thought he had a very good
better and doing better things, ex- gressively visible equalizing of Prospective client and he related
ceeds our ability to keep track.
supplies with demands, the rela- il}e conversation that had taken
Beyond that, who knows.
In- place—the long-dangling Korean
vention is constant.. The spirit truce with its prospective reducis
Progress in the comforts and five scarcity of risk capital and ?lace- The sales manager, meanconveniences we enjoy in modern the enormous handicaps to its en- inS well, suggested that the salesdollars everything is all right, life come from little things as well listment-it is perfectly obvious ™an v's't the Prospect at her of'It's all a little bit like the ex- as big.
The new door handle, as that there has been at work a £<* .with as little delay as possiperience some friends of ours had well as the new engine, on today's compelling force of moderniza<One of the reasonsi forthe
arid
the
the
sock
who
man
house
business
makes
a
few
and
extra
collecting plans for solving caris apos.tiveform of
the road problem. One of the sugWe shall continue to work
while
progress^ new of new product new that the
tion, efficiency, so great process
on
door
that the U. S.
and
Government
one-third, the
pay
states pay one-third, and the peo¬ the
this
ple pay the other third!
That's
gestions offered
the
truth,
There's
lot of other
"unfinished
do
with
ards
business"
legislative
that has
to
taking unnecessary haz¬
out
the
of
of getting
things done in this country—but
I; for one feel strongly that none
of them exceed
handles
the
way
in importance
the
as
well
as
years,
effect,
eventually will
years cars
town
that
over
as
well
loved
flooded
over
our
old
the
down¬
sections here in Detroit last
not ignore the inevitable progress,
The
t0
pay
ahead for the
plant
investment
has
are
creating.
on
then
secure
wonder
how
many
of
you
heard Dr. Clarence Hillberry, the
President of Wayne Univer-
new
nomic Club last week.
reduction
prices.
to
the
making
tax
We should be able to get
place
more
motoring public.
or s0
where interest in
I am sure you want- the to comjobs for more peo- ment on the usual question: What
pie will get the capital gains tax are the immediate prospects
modified, as suggested by Keith the automobile market? The
for
au-
a
the number of
college
and
education
He raised
In
our
area,
perhaps generally through the
United States, may be fully double
the enrollments of today. He and
positive
start on
I decline to be prophetic.
All
We have to worry about protaxes
is what I call a dynamic the media of communication have viding the vastly enlarged ranks
policy to promote commerce in been loaded for months with fore- of young adults with transportathe
interest
of all
the
people, casts,
and
weighty conclusions, tion! The prospect is not a longwhether they be wage earners, The
prophets of the downturn bow drawn at random. Those fufarmers
or
professors,
or
any have been in the majority.
They ture students, and drivers, and
other kind of tax producers.
must be very nearly exhausted, heads of families, and home ownThese are some of the broader It would not be too
strange if ers, are sitting down at their little
a
own
play tag with it for such
a
So the very next day our sales¬
man
walked into his prospect's of¬
he did
as
on
the
her. As
see
soon
he knew that he
so
wrong
track.
She
was
acted
embarrassed and asked him if he
could
fact
her at another time.
see
she
even
dozen years that she
applicants for called to
Funston of the New York Stock tomobile industry was founded by his colleagues have to worry about
Exchange, and some day even to optimistic men and it has grown finding buildings and seats and
elimination of the double tax on to its present stature under the instructors for them—and money
dividends.
leadership of optimists.
for all these!
Anyway,
hi<?
nis
long time that the prospect either
the prospect that in a
the
<?ppn
seen
good lead and
a
fice and asked to
need for progressive, step by
of
had
manawr
JIld*Jdsei
what they
The prospect ahead
is exciting.
automobile industry is part and sity> when he spoke at the Eco-
step, parcel of our primary job—meetcontent of ing the wants and needs of the
,
salesmen
0ff
cecity to realize
I
of this work
new
sale. That is what happened here.
farUTfteTtbis
n [s jn the hands of changed his mind or did business
managements endowed with the with someone else.)
week.
All
conservative managers could
most
cause
to be paraded af-
den tour entries from all
country
engines,
cumulative
fectionately
help me!
so
a
was
portant to you—and you let them
know that good planning and advice are something that takes time
and study on your part, you then
begin to build confidence and you
get off to the right start Otherwise you never establish confidence and you give the impressron
that all you wish to do is make a
was
sorry
the
In
did
not
he
that
want
had
any
there to know that she might even
have
been
thinking of invest-
are
people
—
they have
their peculiar ways. I have known
some
wives who
did
not want
their husbands to know that they
were
investing in securities.
I've
known husbands who have also
not wished their wives to know
ab0ut
wnmpn
their
arp
investments.
,GcrPi\v9
vprv
J
Some
about
.
their personal affairs and tnis laay
probably did not want
RED
one
ments.
People
Your
remark
her at the office be-
see
she
cause
made
any one
to
CROSS
must carry on I
28
The Commercial and Financial
(1448)
Continued from page
which
at
about
3
$40
in
was
orous
in
it must also, though by
slave
full
in
realize
affirmatively to
act
states,
the
from
methods
different
:far
superb poten¬
our
superior
the supe¬
riority of
our,
institutions, can
constantly widen the margin of
aur
strength over that1 of the
tial.
If
do
we
this,
our
native endowments, and
This
totalitarians.
alone
de¬
can
the likelihood of total war,
crease
and put us
in
stronger position
a
be forced upon
should
if conflict
Future
Our Short-Term Economic
The
best
indicate that
to
way
short-run economic future can
our
bright, if we act wisely, is to
be
analyze the fallacies of those who
again are surrendering to the
•defeatist psychology that in the
once
tshort
run
business
substantial
a
downturn cannot be avoided.
of
First
all,
pessimists
downturn
be
must
have
we
cause
constitutional
that a serious
the
argue
pe some
prices,
ing
rampant
speculation,
clear unbalances among differ¬
ent
the
of
parts
But
economy.
-quite the reverse is true. We are
witnessing full employment of our
resources, which is a good thing,
with a remarkably stable price
level, which is also a good tning.
Far from any important specula¬
tive orgies, the current high level
of activity is being accompanied
by a degree of prudence which is
in
itself
stabilizing factor.
a
witnessing
are
er's market
if
mixture
Under
boom and
same
fears
to
see
schools of pessi¬
in conflict with one an¬
these
that
mists
are
two
other,
be
credit
facilities
generous
and too
because
too
and the same time.
tight at one
It
to
seems
growth
no
general
that the
me
credit facilities
in
me
an
thoughtful
men.
unworthy
There
problems
real
sure,
attitude
to
are,
be
of
to be
dealt
the excessive de¬
income, and how
we
can
better utilize our agri¬
cultural productive capacity. But
with,
such
cline
we
in
as
farm
should
define
and
surmount
these
problems, not surrender to
without even defining ex¬
actly what they are.
them
Second, the argument is ad¬
by the pessimists that
some important industries are now
showing signs of softening. The
vanced
bright
these
of
it need not be deep and
instead
but
pros¬
is by
Of
course,
grow¬
or
needs of the economy as a
whole.
And, while I was inclined to dis¬
agree with certain measures that
were
taken to tighten credit and
to make money harder to get, I
has
it
the
over
that
we
have
been
able
to
successfully through a series
readjustments in. differ¬
pass
of rolling
ent
industries
without
and
at
different
times
allowing these specific
readjustments to
necessary
permeate the whole economy with
a depressionary psychosis. A while
economy
ments
that
must
specific
occur
time, but there is
from
readjust¬
time
no reason
to
why
by
under
our
free and flexible economic system
with¬
high¬
have come to value it,
as we
out the forced pressures and
ly pitched controls of a war econ¬
and perhaps even with some
gradual reductions in hours of
work.
In
fact,
if we do
not
omy,
achieve
to
of actual
level
this
duction
match
pro¬
that
it
instead
con¬
we
resources.
is
factor
second
The
brightening
economic outlook
ever-growing appreciation
long-range
the
our
that consumption
—
which means
living—
the American standard of
with the increase
productive power. In the
must rise apace
in
our
and
country,
nomic
Government
and
out¬
lays, to an even higher percentage
our total
national output than
of
the
embrace
nual
of somewhat above 230
rate
real billion dollars to an annual rate
the of more than 310 billion dollars,
adjust these to the
possibilities
of
and
needs
basic
eco¬
develop¬
resource
ment and certain types of housing
the only alternative would by way of example.
be large-scale unemployment of
While it is known that I have
manpower,
brains, and business
certain beliefs as to which politi¬
power,
is
if
But
sciously
have a
moderate
cluding
productive
our
cal
party is better suited to these
tasks, I have never held the view
that our general prosperity could
or would
be maintained only if
a
particular
The
power.
joined in
never
representing
increase
an
in
the
philosophy,of steady growth neighborhood of 80 billion dollars.
remained in
that I
party
shows
record
assertion that
in responsi¬
essential to the
any
the occasional change
bility
which
is
functioning of a free government
would
bring economic disaster;
arid years before the election of
1952 I ventured the opinion that
no political change in this country
would cause any profound or sus¬
reduce our invest¬ penditures
in
a
full
economy
tained
and our distributive should rise from the current an¬
accordingly
ment outlays
efforts.
of
through taxing, spending, mone¬
tary and credit policies which ad¬
just sensitively to changing eco¬
nomic conditions. Secondly, real¬
izing that these programs are only
safety devices and not dynamic
devices, the Government needs to
do
also
those
dynamic
things
which contribute affirmatively to
the growth of the economy, in¬
relaxation
sibilities
of
do its part in
of
the
respon¬
Government; to
our
helping to keep
our
healthy and progressive.
economy
While I have not agreed with all
of the things done by the Gov¬
ernment in recent months, in a
of living of the av¬
American
family
should long-time perspective I still ad¬
here to the view that the tools of
steady long-term growth without correspondingly rise by about a
mence
to loosen up on the reins
large intervening difficulties on a third. The actual achievement of Government will continue to be
used effectively for those salutary
as
economic trends revealed the nationwide scale.
this attainable growth will be im¬
need to do so. This seems to me
In summary of my views re¬
purposes
which
the
American
portantly affected by government¬
what is now happening.
garding the short-range economic al policies, but it will be even people have properly come to ex¬
pect of their Government. In fact,
Fourth, the pessimists have con¬ outlook—say from now until the more affected by
private economic
as
our
tinuously told us that a downturn middle of 1954—we could have a
knowledge of how our
policies. It is necessary that the
in Government spending, after the
quite disturbing general down¬ trend of business action and of economy works increases, and as
defense program reached its peak,
turn, which might snowball to collective bargaining maintain the people become even better ed¬
would bring economic calamity.
very
serious proportions, if we price-income relationships which ucate to their potentials for prog¬
That
these people have
substi¬ expected it to happen that way or
ress, I believe that any admini¬
provide consumers with sufficient
tuted fear for thought is apparent
stration
will
register long-term
plan
it that way. Instead, we incomes to
support this growth in
from the fact that they at the time should
improvements in doing this job,
gear our action to the rea¬ the standard of
living. Due to the
have
been
telling us that we sonably attainable goal of avoid¬
even
though I may believe that
progress
already shown in this
would have an economic calamity
one type of administration would
ing any over-all slackening in the
direction, I do not think that the
if Government spending were not
register these improvements faster
economy
between now and the
problem of insufficiency of pur¬
drastically reduced. Actually, middle of next year, by compenthan another. The times in which
chasing power will exist in the
these pessimists have not analyzed
we live are too
sating°for the temporary softening
serious, and the fu¬
say many
that the monetary
and credit authorities would com¬
months
ago
ing
to
since
economy
our
the
national product at an annual rate
has increased about $35 billion,
while
total
goods
of
and
public
Government
less than
rate.
for
purchases
services—at all
—
have
increased
$10 billion at
The main
source
of
levels
an
annual
of demand
increasing
productive
has been the vast increase
our
power
in
consumer outlays, and a grow¬
ing level of business investment
aimed
primarily
civilian
needs
at
of
serving
our
the
domestic
economy.
Further,
instead of the superstition of boom
and
bust,
continue
can
we
our
areas
must take place in
by expansion in other
I think that
intelligent
to achieve this moderate
enough
objective, but
not
some
areas.
be
can
we
achieve
it
if
even
fully,
we
should
will be
trying to
achieve it than by surrendering
to the fears of the pessimists. And
by action along these lines, we
can
much
better
position our¬
much
better
selves
for
off
we
by
sustained
and
stable
outlook. In fact, if we
think clear¬
ly about the longer-range outlook,
and appreciate its enormous pos¬
reasons
attributable
mainly to war-created
history.
I
shall
leading
growth in
now
me
to
detail
this
our
For ex¬
The first factor brightening the
ample, the aggressing merchan¬ long-range economic outlook is
dising policies and fashion leader¬ America's
enormous
productive
ship of the Lee Company has ex¬ potential. Our productive capacity
panded its business by 20% in sets the
upper limits of what we
each of the past three years. Sure¬
can achieve.
Most economists and
ly this is not due to a shortage other observers of business condi¬
goods commensurately with
a
total personal income after taxes
very
a
induce
to
be
ture of the free world too much in
to
consumers
spend
a large enough proportion of their
incomes, and not to save a larger
proportion than can find its way
for
convince
that
anybody
the
they cannot hold
advance
to
try
American
to
on
their
prosperity
political change.
to
people
and
despite
In expressing my belief that the
investment. This will
immense challenge to Government will in the main en¬
the
marketing talents of every large its economic effectiveness in
kind of business enterprise deal¬ the long run, I do not mean to
ing intimately with the consumer. imply that the Government shquld
into
active
present
an
Based
upon
the intensified atten¬
being
now
devoted
to
The third brightening factor in
the
long-range
the
is
economic outlook
in the
change
long-range
ity must be at
rate than the
improvement
and
productive
facilities.
A
of
highi
of
Business
resources.
and
more
must ties
formation
capital
make
should
its
more
investment
long-range basis geared
to long-range consumer markets,
plans
on a
instead
of
readjusting
downward
fancied
or
adverse
short-range
look.
If
business
factors
in the
economic
can
solve
out¬
this
problem, and it is marching in that
direction, we shall have achieved
a
vitally important objective mak¬
myself
were more
sanguine. Based
are
the
long-range
economic outlook
Federal
basic
a
Government
has
two
people. Sensing their own in¬
trinsic capabilities, the American
people have reasonably come to
can
expect that
enterprise
stabld
and
growing
economy.
their system
and
free
of
free
government
will be
alertly responsive to their
needs. And just because the
people
have this sentiment, and hold it
so
strongly. I believe that the
sponse will be
re¬
forthcoming.
Unfavorable
Factors
Now, what unfavorable factors
are
there to be set off
against the
ones that I have listed?
favorable
In the
find
long-run perspective, I can
few of an objective
very
responsibilities in promoting character,
it needs to maintain and
upon our technology, our skilled First,
and growing labor force, our busi¬ improve
the safeguards
which
ness resources and
the economic machine
aptitudes, and protect
the march of science and inven¬ from being overturned by some
our
to be
the most important of
all, lies in
the hearts and minds of the Amer-
ing for stability and growth.
The fourth factor brightening
years
of the economy has exceeded the
estimates even of those who like
services if
a much more rapid
expansion of public
dynamic possibili¬
fully developed and
accompany a high level of con¬ if freedom and flexibility are to
sumption to maintain a stable and be fully preserved.
growing economy with full em¬
The fifth factor brightening the
ployment of our human and other
long-range economic outlook, and
our
level
lies in the programs,
have
as the country
in
relative
terms
the
growth in private economic activ¬
expansion
policies and
repeatedly in recent
attitudes of government, primarily
underestimated our ability
the
Federal
Government.
The
to grow, while the actual growth
tions
must increase
grows,
attitude of those who invest in the
very
has certainly worn thin.
sumer
ever,
it
How¬
jeopardy,
large problem will
the periodically in response to small
con¬
shortages clusion.
the market possibilities created
by
that
extent
us many years ago.
tion
have always regarded as far more
important than the very short-run
pansion
been
the
to
plagued
assume
a
growing share of the
this economic activities of the Nation.
On the contrary, I have long felt
Longer Range Economic Outlook problem, I feel that it can be suc¬
that,
while
in
absolute
terms
Now let us turn to the longer- cessfully met by continuous hard
many of the services of Govern¬
effort.
range economic outlook, which I
ment
growth in the years ahead.
nomic stability and
has
The standard
erage
future
which
duction in defense spending. This
idea that our fairly constant ex¬
back, the textile industry was in
difficulties; since then, it
has come back strong.
A while
back, some industrial commodity of hats created during World War
prices were moving downward in II. Looking at the economy as a
a way that frightened those who
whole, public purchases of goods
did not see the whole picture; and services at an annual rate are
since then, some of them have sta¬ now about $15 billion lower than
bilized. Earlier this year, the re¬ in 1944, while the gross national
tail trades were a bit uncertain product is about $60 billion higher.
as
to their prospects; now they
If we in this
country can con¬
are
surging rapidly forward. It
tinue to expand the sale of con¬
Ms of the nature of our flexible
some
this
do
can
billion
in uniform dol¬
proportions if we it now occupies, barring total war.
inevitable, and By 1960, personal consumption ex¬
large
even
think
could
we
downturn
when the pessimists
are asked
why a reduction in the sibilities, the action which we
automobile industry is frequently annual level of public purchases take in response to this legitimate
cited.
I have some doubt as to of goods and services of more than confidence can carry us through
whether this industry, even for a $65 billion between 1944 and 1946 the short-run period without any
short time, will slow
down as did not produce a calamity, they downturn whatsoever, or a very
much or for as long as some peo¬ say that there were then back¬ slight one at worst. I said at the
ple have thought it would. But logs created by World War II beginning of my remarks that the
more
important than this,
the which no longer exist, and that years ahead during the decade of
consequently we would now be the '50s can, if we avoid total war,
very strength of our economy lies
in the
demonstrated
fact since endangered by even a small re¬ register the finest period of eco¬
1946
We
lars.
$500
to
measured
investment
short-run
growing
the longer
in
America.
properly against the
ured
enduring,
close
to
—
past few years—the growing wants years ahead, we must lift con¬
and
capabilities
of
a
growing sumption, compared with business
meas¬
ing performance and the
should
reflect—as
run
alarming, when
means
circumstances,
which is dangerous, seems
products, and tne proper
display of products to the con¬
suming public continue to open
up
the
potential
niarkets,
the
new
an
upon
the Korean outbreak, and particularly
morbid feeling that while most during the last couple of years.
of the objective evidence which For example, comparing the first
we
can
see
is favorable, there quarter of 1952 with the third
must be something which we can¬ quarter of this year, our
gross
not
development
policies, the
pricing
pessimists
of the
some
their
healthy carefully what has been happen¬
very
a
We
buy¬
keep it that way.
we
such
a
and the
one
is
which
time,
a
at
counterbalance
pects can in turn sustain a high
alleged and ultimately stimulate a grow¬
excess
of consumer credit or in¬ ing level of business investment
stallment
buying,
while
other in productive facilities. While
pessimists rest their fears upon there may be some softening in
what they call an excessive tight¬ this kind of business investment
ening of credit. It is interesting in the period immediately ahead,
Third,
rest
time. step, and I ventured to
merit in this
upward at a vig¬
rate, We can
revelation
just be¬ never joined the chorus of those
exception¬ who saw imminent disaster >n this
argument if we were now in an
unhealthy boom characterized by
economic excesses, such as soar¬
-or
and
near,
been
ally prosperous for a long
There might
do not
exaggerate their significance
thus multiply their effects.
cannot
:u .,^j
**s.
general
they need cumulate into a
downward movement if we
1960
is con¬
wnich
and
now
it
defense
of
preserve
1950,
is now
tnan
short-run foreseeable decline
spending.
If sound
any
If We Do Not Lose Oni Heads"
rate
billion higner
stantly moying
Piospeiity
"We Can Maintain
annual
an
Chronicle...Thursday, October 15, 1953
except
dangers in the
ation.
The
of
course
the
current world situ¬
main
domestic unfa¬
vorable factor resides
only in the
failure of some to appreciate that
the favorable factors
exist. We
have the
knowledge, the strength,
firm conviction that sudden shock, through such mea¬
and the intelligence to move con¬
annual national sures among others as farm price
supports and social security, and stantly ahead. We will fail to do
product from about $375 billion
tion, it is
we
can
my
lift
our
Volume 178 "Number 5264...The Commercial
only if
eo
for
substitute ignorance
we
knowledge,
indecision
the
intelligence.
sell
we can
and
and
fears
Again
and
more
more
But
noting that premium base price reductions, which started before
return to freight absorption, are still going on.
They were
sufficient last week to lower "Steel's" arithmetical price composite
do not
we
there
one
final
heads
in
thought
that I would leave with you. We
lose
can
our
sense, and not just in
if
sense,
while
domestic
However,
pursue
our
ignore
of
we
for¬
these
world
domestic
mo
ing
the
free
world
efforts fall
below
the needs
to
undertake
..
imperative.,
the ground that
mot afford to
have
how
much
foighest
I
do
stated
have
know
that
estimates
of
of
well within
are
economic
our
maintain
ca¬
we
whether
all
of
could
our
will
be
that
we
announced
that
ingots
and
steel
for
week ago.
was
A year ago
placed at 2,211,000 tons and the
106.5% of capacity.
an
annual
foillion
that
economy
capacity
oper¬
and
between
and
now
despite
or
«on
can
be
ridiculous
to
power
people
kwh.
shall
are
a
with
or
we
should
press
over
the comparable 1952 week and
light
kwh.
609,429,000
1,157,851,000
the like week in 1951.
the
Inc.,
1951.
it
within
our
when
United
Unless
one
to
186
was
as
tember at 34.35 cents, was
pared with 34.47
a
unchanged from
a
month ago, and com¬
year ago.
Trade Volume for Nation
Whole Higher
a
as
retail sales in
on
some
marked
a
sections of the country in the period
on Wednesday of last week.
While national sales
preceding week, some areas reported declines as
the
stayed home to watch their television sets.
promotion-conscious.
above
rose
,
customers
Retailers continued
The total dollar volume of retail trade in the week
mated by Dun &
esti¬
was
Bradstreet, Inc., to be from 2 to 6% higher than
a
ago.
Regional estimates varied from the comparable 1952 levels by
the following percentages:
New England and Midwest -f-3 to +7,
East 0 to -f-4, South, Northwest and Pacific Coast -f2 to -f 6 and
Southwest +1 to -j-5.
Apparel sales were somewhat lower than in the preceding
as high temperatures deterred purchases of warmer clothing.
week
In comparison with the previous year, however, ready-to-wear
generally reflected greater increases than did other departments.
In most frequent demand were coats and suits, sportswear and
Considerable
interest
evoked
was
for apparel made of
Rainwear sales were some¬
synthetic fibers and blended fabrics.
higher.
what
The special nationwide promotion, Home Fashion Time, was
mainly responsible for the increased volume of furniture.
Pur¬
chases
of
television
sets
spurted briefly
as
sought to
consumers
bring the telecast of the Series into their homes.
^
Among the items moving most quickly in furnishing departments
were
furniture and bedding and some small ticket items.
Food volume remained somewhat higher than a year ago and
unchanged from the preceding week.
the
preceding week, Dun & Bradcasualties continued well above
However,
prewar
level, mortality
was
down 22%
time
Housewives purchased
Pork volume
a year ago.
higher than in recent weeks
were
Series
more
rose
slightly to 160
considerably higher than
succumbed
in
this
(size
group.
than
in
as
many
more
was some¬
food stores featured
■
purchasing,
the previous week
period ended
be
of 5,000 or
.
1
on
a
wholesale volume
cautious than
in
a
dipped
below
ago
in the
year
Purchasing appeared to
Wednesday of last week.
somewhat less
anticipated
and
although it remained above
recent
weeks.
Some
quarters
growing slowness in deliveries.
a year ago
All
of
Department store sales
the
week ago;
a
a
same
Buyers expressed more interest in the outcome of the World
in the
further sharp dip in the Dun & Bradstreet
the
Federal
Reserve
on a
Board's
country-wide basis,
index, for
as
taken from
the week ended Oct 3,
1953, decreased 3% from the level of the preceding week.
In tho
previous week, Sept. 26, 1953, an increase of 2% was reported from
that of the similar week of 1952.
a
For the four weeks ended Oct. 3,
decline of 2% was reported.
For the period Jan. 1 to Oct. 3,
1953, department store sales registered an increase of 3%
above
.
1952.
Retail trade
sponse
in New York last week failed to show good re¬
to favorable weather and attractive merchandise,
sales decline of about 4% below the
still 2.0% above the $6.44 of a year ago.
result,
and as *
like period in 1952 is
looked for.
foods in general use and its chief function is to show the gen¬
eral trend of food prices at the wholesale level.
'
i
*
Wholesale
•
•
The
a
According to the Federal Reserve Board's index
store sales in New York
,
Commodity Price Index Moved Sharply
Lower in Latest Week
commodity price index, compiled by
Inc., declined sharply last week to reach a new
and'the'lowest since early July, 1950. The index
1953, declined 5% from the like
period of last year.
Oct.
3,
1953,
no
Oct. 3, 1953, no
change was reported.
of 5%
In the pre-
reported from
of 1952, while for the four weeks ended
wholesale
low for the year
department
City for the weekly period ended Oct. 3,
ceding week Sept. 26, 1953, an increase
that of the similar week
daily
Dun & Bradstreet,
•
»
compared with the last offl-
as
bales during the week ended
against 115,900 in the preceding week. Aggregate en¬
tries for the season through Sept. 25 totaled 390,700 bales, exceed¬
ing the volume of entries for any corresponding period of any
previous postwar season. The parity price for cotton in mid-Sep¬
Sept. 25,
31
-
moderate increase
a
The volume of cotton entering into the government loan con¬
The index represents the sum total of the price per pound of
was
.
tinued to increase and totaled 144,700
in
whole¬
sale food price index last week.
The Oct. 6 figure at $6.57, re¬
flected a drop of 1.4% from the $6.66 of a week ago.
It was the
lowest in 14 weeks, or since June 30 when it stood at $6.54, but it
ac¬
-
dipped
Food Price Index Touches Lowest Point in 14-Week Period
prosperity may be the source of
our undoing. We must proceed on
both fronts at the same time, in
fearless recognition of what we
-
failures
<
complish the task of peace, the
accomplishment of the task of
have the ability to do.
189
liabilities
concerns
than
more
re¬
was
'
cial forecast of 15,159,000 bales.
1953,
power,
we
slight drop to
what
126 which occurred in the similar weeks of 1952 and
158 last week and
118
War II
raw sugar.
season.
poultry than at the
previous week and 29 in the corresponding week of 1952.'Nine¬
enterprises failing had liabilities in excess of $100,000,
decade, vastly to en-'
States.
1,294
teen of the
large the prospects; for a per¬
manently peaceful world, and at
the same time vastly to enlarge
our
domestic prosperity here 2 in
the
industrial
Compared with the
There
this
was
week's decrease occurred among small casualties, those involving
liabilities under $5,000, which declined to 26 from 31 in the
leaders; because their advice will
•carry much weight in the deci¬
have
and
Failures with
responsiblity resting heavily upon
thoughtful American. And
it rests particularly upon business
We
A year ago truck output
from the 1939 toll of 237.
from
World
low-price promotions.
reports.
147 and
since
exporter of
Curtain and drapery volume was above a year ago.
week ended Oct. 8 from
street,
as an
Preliminery estimates of this year's cotton yield varied from
companies made 7,450 cars last week, compared
7,130 in the previous week and 6,047 in the like 1952 week.
Commercial
•every
within
A year ago the weekly pro¬
99,974.
Business Failures Ease in Latest Week
eat, drink and be merry while
are building
up their
stockpiles. This is a transcendent
to be made.^ ^ t*
was
Truck production amounted to 1,978 units last week, against
the week before and 2,881 in the year earlier period.
we
are
be in effect next
Canadian
the Soviets
sions that
111,304 in the previous week.
with
ifoalance, and not help to drive our
country toward a situation where
Coffee prices
ago.
last week with most future
Heavy and persist¬
ent hedging pressure was the chief factor in the decline, while
some support was attracted by mill buying on the scale down and
by expectations that acreage controls and marketing curbs will
29,133 units.
of
sense
Indonesia for the first time
as
Slightly in Latest Week
pared with 22,636 the previous week.
validly in¬
a
week
a
Cotton prices trended downward
United States truck production last week totaled 24,066, com¬
question
forward. But
maintain
124,970 bags, against 125,996
mostly steady in quiet trading.
Domestic and world sugar prices displayed a somewhat easier
year
industry for the week ended Saturday, Oct. 10, 1953,
8,307,309,000 kwh., according to the Edison Elec¬
7.9%,
over
duction
terested in lifting our standard of
living should
totaled
were
to be
39,366 cars, or
decrease of 46,203
Automobile output for the latest week rose about 6% above
the preceding week's volume, "Ward's Automotive Reports" stated.
The industry turned out 118,130 cars last week, compared
1960,
foillion of $10 billion or $15 billion.
who
import commodities appeared
their immediate and nearby requirements and showed little inter¬
est in the spot market.
Stocks of cocoa declined slightly and
dresses.
from
us
j
to mark time last week
pending developments in the dock workers' strike that got under
way in the preceding week.
Cocoa was easier both here and in the
London market.
Manufacturers were said to be well supplied for
of
U. S. Auto Output Shows 6% Rise Above Previous Week
obliteration, to
the extent that such protection is
aarged by those most competent
to pass judgment upon this partic¬
ular question—whether the cost of
that protection
be an added $6
Those of
Most
Institute.
kwh.,
economic grounds whether we
afford to protect our 160 mil¬
lion
those grains.
ended
0.9%
The current figure represents a decrease of 107,143,000
below that of the preceding week, but an increase of
heavy
•defense burden is now enjoying
a standard of
living luxurious be.yond the dreams of the past, it
would
on
effect
estimated at
tric
production by about $125
and which already
Oklahoma and Kansas.
Although oats and
followed the trend in corn, the belief that there will be some
kind of a curb on imports from Canada had a stabilizing effect
rye
Warm weather and interest in the World Series had
freight for the week ended Oct. 3, 1953,
below the preceding week, accord¬
revenue
cars,
was
re¬
}
.
hot and
week-end in parts of
of Jan. 1, 1953, the rate
as
Loadings Continue to Ease in Latest Week
Electric Output Declines
lift its
can
maturing of the crop.
dry weather had a bullish effect on wheat but
the market turned weak at the close on reports of rains over the
The
The percentage figures for the
.generate year by year.
In
largeiy influenced by expectations that there
was
large movement to market shortly due to ideal weather
conditions which have been favorable for drying out the corn and
the
castings as against 95.2%
For the like week a month
91.4% and production 2,060,000 tons.
was
was
a
The amount of electric energy distributed
by the electric
vastly great¬
power
Institute
4.6% below the corresponding 1952 week, and a
5.4% below the corresponding 1951 week.
that
power
Steel
cars, or
fully the
use
have and the
productive
er
to
productive
enormous
we now
able
and
ing to the Association of American Railroads.
Loadings totaled 812,554 cars, a decrease
sponsibilities, but rather whether
we
of
Loadings of
not
productive
the
fulfill
Iron
2,146,000 tons
or
decreased 7,155
wondering,
have
we
to
power
are
tons
Car
strength while building our secu¬
rity strength. It would indeed be
tragic irony for us to doubt our
ability to do both in future, at
the very time when some
thought¬
people
that
on
of
current year are based upon the
a
ful
a
for the early
this year being higher than last year.
economic
our
American
ating rate
economy since the Korean outforeak has overwhelmingly refuted
mot
descent
the weekly production
pabilities, if these persons are
right on the score of our national
security. The performance of our
those who asserted that
two-month
the rate
ago
types of protection
by any responsible persons
listless and
was
deliveries reaching new lows for the season.
(revised),
meed for both
(made
The decline
will be
ported to be in the market
2,129,000
our
;
prices moved sharply lower.
by opening their books for the full three-months'
operating rate of steel companies having 93% of the steel-making
capacity for the entire industry will be at an average of
94.4%
of capacity for the week
beginning Oct. 12, 1953, equivalent to
the
'
weak and irregular the past week, par¬
were
Demand for the yellow cereal
ticularly corn.
week earlier, *"
a
ago.
tone
The
we can-
both. I do not
should
we
But
some
prices of scrap, a principal raw
material for steel-making, halted last week.
In fact, a slightly
strengthened undertone in the market raised "Steel's" composite
price from the preceding week's $31.50 to $31.83.
pretend to be competent to judge
cither.
enhanced
The
sacrificing the
of our
striking
value
on
prompting
their order books for the entire first quarter of
open
thinks it probably will have to continue customer
quotas
product in the first quarter of next year, it notes.
'
foe attained without
forces,
At any
with 277.19
year
stance, in the Chicago area, where steel consumption exceeds steel
producing capacity, one producer of cold-rolled carbon steel sheets
For example, we now hear that
the improved civilian defense for
which
so
.many
scientists
and
others are now pleading cannot
deterrent
basis, the degree of selectivity depend¬
a
The return of competition is not being felt to the same
degree
in all forms of steel or in all
geographical areas, however. For in¬
the
the
selective
a
1954 instead of a month at a time, declares "Steel."
They want to
get their share of the business available and think their chances
are
afford
we cannot
on
magazine.
the like date
period.
that
false ground that
trade
on
producers to
let these
recognize £ ori
: ourselves
we
never
to unless steel pro¬
absorb freight charges to
Return of competition to the steel market is
conditions
as-
must
we
resorted
besides
how much the producers desire a piece of business.
rate, absorption will not be on a blanket basis.
strong enough to prevent the HBomb from crashing through it
cipon our cities. While we must
constantly revise our economic
and military efforts to strengthen
change,
this
tion will be
responsibilities,
ceiling will be
debt
be
not
along in freight absorption,
They'll try to determine where
they have to absorb, how much, and on what products. Absorp¬
continues
our
world responsibilities. If
will
means
Steel producers will feel their way
or
size
these
ducers have to do something
compete for business, it adds.
figurative
we
the
producers to reduce standard base prices and cut or waive extras.
literal
a
a
we
progress
cinder-estimate
get
finished steel from $115.56 a net ton to $115.54.
Other ways to lower cost of steel to consumers are for steel
on
is
Industry
Oct. 6, as compared
on
on
Grain markets
the
almost
heads.
our
finished at 270.85
-J
say,
hats—
of
5
page
The State oi Trade and
for
I
more
more
everything else—if only
lose
from
and with 290.70
strength of
but vigorous
carefully designed
action, and irrational
sober
Continued
the weakness of
-
for
!(1449Jv$sk
and Financial Chronicle
was
For the period Jan. 1 to
change was registered from that of the 1952 period.
.
•
The Commercial and Financial Chronicle..
(1450) 1
fit
E. F. C. Parker
V"
'
(Special
Continued
Opens
C. Parker is
engaging in
a
offices
business from
North
Mutual Funds
secur¬
at
Friends Avenue.
September
for
policy expressed by the Com¬ tions of what is or what is not
mission, the NASD committee sees sales literature. Please understand
in history and exceeded
other September by about
million.
For the first nine
months, sales totaled $34.1 million,
according to figures released by
E.
Wain
Hare, Vice - President.
This volume is the largest for any
Service
largest
NATIONAL
mmiMl INVISTMENifONl
similar
period
dealer or
TRUSTEES
&
RESEARCH CORPORATION
NATIONAL SECURITIES
Established 1930
120 Broadway
•
New
memmm
is
Subscribers
550
sales
1953
reached
in
of
the
increased
at the end
In
Fund
year.
a
ment.
This,
vestment
of
Arthur
should
shares
in
the
firms
tools
sell
to
securities,
of
is
service
third
vestment
provide
a
planning program to
with
dealers
a
Statement
com¬
literature
"custom-tailored" pres¬
entation for important clients.
plete
of The Put¬
resources
Fund amounted to
pared with 64%
Growth
June 30.
on
by a sevencomparison, in which period
year
"WITH
STREET
CALVIN BULLOCK
'
,
,
iAii'i'iiiii'i'i iii '
i'
NEW YORK
,
■- • ■ -- - •
■ - ■ ■ •
-
mm mmm mmm
mJi'jiimri
HIGH
costs,
the
work
harder
theme of
taxes
and
investor's
a
living the number of the Fund's share¬
must
money
than
ever,"
booklet
new
shown
is
is
increased
1945
the
Diver-
on
holders
11,925
to
from
the
at
2,899
1952
in
by
radio
the
by
an
shares
of
on
Neither the statute
of
ment
com¬
article or ad¬
be sales literature,
how it is used.
any
can
depending
or
purchase of
investment
an
pany." Almost
vertisement
used
underwriter
the
the State¬
nor
Policy makes
excep¬
an
fiscal
tion
of institutional advertising.
$6.8 I humbly and respectfully submit
million
to
$32.2
million.
The that there are
practical limitations
68 stocks in which the Fund's as¬
to a definition in words of "sales
sets are invested, the text states,
literature." Consequently, I would
earned
an
average
of $1.79 for
like to submit for your serious
each dollar paid in dividends.
and reflective consideration a dif¬
Through charts and tables, this
ferent approach to that particular
profusely illustrated booklet tells
how an income fund can serve in¬ problem than is currently in ef¬
yearend.
Assets
from
grew
..
GENTLEMEN: At
me a
obligation please oend
no
prospectus on
Canadian l' uud.
New Salesmen's Compensation
Plan Announced by /. P. C.
John
Kalb, President of In¬
vestors
Planning Corporation,
Nome.
announced that his mutual fund
Address.
retailing
firm,
Axe-Houghton
which
will
sell
Fund B shares
under a contractual or penalty
plan,
with optional
declining
City
term
insurance,
shares
#
in
the
they
sell.
Mutual
men
ey^tone
who
have
for
at
least
minimum
Custodian Funds
upon
the
a
vested
been
one
stated
assets
future
business
The
Keystone Company
Please send
your
Funds.
ten
prospectuses
D-76
PROGRESS
appointment of Thomas F.
Glancey as Treasurer of Welling¬
ton
Fund
was
announced
death,
the
continuing commis¬
sions will be paid to the sales¬
L.
Morgan, Pres¬
estate.
ident.
vested
interest
provides for 25% pf
tinuing commissions after
with
year,
a
one
1948
graduated scale to
the
may,
volume
named
troller
of
State..
Gty
at his option, choose either
requirements or length
receipt of his
est
certified
•
somewhat similar
salesmen has been
since
1935
at
in
lic
plan for
operation
Financial
maximum of 100% of the
tinuing commissions
ture
business
of
the
on
In
Thomas
F.
Glancey
University of Pennsyl¬
his
post,
new
Mr.
Glancey will direct the financial
and
con¬
administrative
divisions
of
Wellington Fund at its offices in
Claymont, Del.
the fu¬
salesman's
Continued
accounts.
making
regulations,
force of
law
and
regulated. This rule¬
power
is characteristic of-
administrative agencies, which areexecutive in their enforcement
functions,
judicial in
their deci->
sional functions and legislative in
their
rule-making functions. The:
ingenuity of the American busi¬
ness community constantly creates
problems with which conven-'
new
tional
legislation must necessarily
deal
ip general terms, leaving to
the
administrative
agency
as
a
quasi-legislature the job of fillingin
details
the
meet
to
changing
conditions and particular types of
situation. There
is
sion
are
which
in
instances
expressly
than 50
more
the
Commis¬
rule¬
granted
making power in the Investment
Company Act and almost 50 cases
Commission may by
in which the
relieve
order
against
J
existence
The
of
this
page
37
.
.
text
pro¬
three
thereof
within
."
ten
be solved to the satisfaction
never
of
all:
(a)
new
here
a
There is danger of adding
revision
rules to old rules, a
and
revision
a
statute
is
penal. If
citizen
a
until
there,
literal jungle of regulations has
grown.
(b) Rule-making power imposes
a
duty of restraint but it also im¬
poses
duty
a
strike
to
use
the
abuses
down
power
as
they
,
a
or
not
many
be
construed
violation. Generally speaking,
Federal
clear
not
Commission
Trade
advertising in ad¬
of
investment
dealers
and
companies and
an
alert
and
intelli¬
gent Commission each can make a
contribution
to the formulation
(sometimes of rules and regulations which
makes are adequate to protect the public
his own
interpretation and the interest and the interest of in¬
courts punish him if he turns out vestors but at the same time are
to have been wrong.
practical.
his
Your
cedure
lawyer's advice)
industry-established
pro¬
examination
sales
for
literature is
of
citizen
The
adaptable
of
In
the
investors
last
are
as a means
reaching some conclusion as to
whether
constitute
industry
4s,//'S>'ss'/'/}/, '.'ssk'/zfr.' i
documents
What
literature.
frankly is that
the individual
suggesting
am
the
particular
sales
analysis, however,
going to get the pro-
and
members thereof act at their own
peril"
in
deciding
literature.
L
American
Business Shares
0
Investment Fund
Prospectus
"
may
200
upon request
to
sales
prosecute
on
the
particular facts of
misuse of non-filing
31
19 25
each
case
material which is in fact
in selling investment com¬
a
any
used
this
securities. As I pointed out,
not a revolutionary con¬
is
members
of
your
industry
the
obligation that citizens gen¬
erally have—to read and at their
peril interpret the words of a
statute which makes a particular
same
Berkeley St., Boston, Mass.
the
is
Commission
cept; it is simply laying upon the
or
Corporation
/_ •FOUNDED
free
of
what
the
•
A Balanced Investment Fund
Prospectus
Parker
be
basis
pany
be obtained
from investment dealers
The
will
Then
of
A Mutual
Lokd, Abbktt & Co.
New York
—•
Chicago
—
Atlanta
—
Los Angele*
i
rule¬
making power, however, creates
recurring
problems
which
will
develop.
I
on
f
hard¬
any
ship caused by the Act.
to
gradu¬
vania.
Fund, with disability and
retirement provisions reaching
to
unless
full
filed
been
with
pub¬
ate of the
Indus¬
trial
a
a
distribution
the
of
vance.
a
accountant
and
copies
does
the
He is
Fund.
plan.
investors
or
the
was
benefits under the vested inter¬
A
for
spective
to
as a
Comp¬
of tenure for the
addressed
literature
may
in
Address.
year
and
have the
(c) There will always be room
it, he lays himself open
penalty. In the case of penal for argument on both sides as to
statutes, generally, no interpreta¬ whether or not a specific power
tive service is provided
in ad¬ is being abused.
An alert intelligent community
vance of the doing of an act which
following
Name.
Powers
violates
the
and
Making
rules
make
the
Wellington or¬
ganization i n
75% after 10 years. A salesman
Rule
that because the Commis¬
lator and the
trans¬
to
advertisement, pamphlet,
circular, form of letter or other
to
joined
ac¬
and the Commission;
you
lot of work' to do together.
a
days after its use. In other words,
Mr. Glancey
con¬
instrumentalities
commerce
any
have
by
Walter
Invest¬
the
of
(a)
intended
The
their
count
mit
sales
PERSONAL
investment plan accounts. Upon
salesman's
describing
Organization *nd the shares of your
me
in the past five
have
,
Company Act makes it un¬
"to make use of the mails
interstate
re¬
Act
of
lawful
any means or
capital
years.
The retirement feature of the
50 Congress Street, Boston 9, Mass.
ment
of
man's
COMMON STOCK FUNDS
Fund's
industry,
.
24
or
will,
on
the
a
disability, receive 75% of
continuing commissions
from
BOND, PREFERRED AND
which
sults of the Fund
IPC
volume
in
Section
Penal
Section
com¬
are
constructive;
•
and shows income and
in¬
sold
or
fect.
invested, gives details
of earnings on these investments
sales¬
with
year
stocks
mon
plans
funds
explains the manage¬
bonds, preferred stocks and
funds,
contractual
It
ments philosophy in selecting the
the
as
mutual
will offer salesmen
terest
well
as
other
of
vestors.
welcome
for cooperation between the regu¬
The
television)
induce
to
As
of
including "any com¬
in writing,
issuer,
dealer
solution.
other problems,,
in
lack
literature."
by
for
our
naturally in the rule-making pro¬
cess
there
is
great opportunity
defect in the
(whether
or
many
their sion in the Acts administered by
under it is given unusually broad powers,
Policy defines sales
as
munication
$62,855,000
as of Sept. 30, compared with $57,Investment
Fund
called
827,000 a year ago. Approximately sified
63% of the Fund's resources were "Money At Work," issued by Hugh
invested in common stocks, com¬ W. Long and Company.
nam
of
Policy—indeed,
of
the
Commission
tion is effectively imposed by the
SEC
itself—is
"sales
stitutes
shall
we
of
the
suggestions from regulated groups.
But, however much self-regula¬
equal treatment to to
of
statute
crying
case
of
one
which
all
in the
I say
most obvious
only
problems
shares by ob¬
precise definition of what con¬
a
is
That
considera¬
for
approach to the problem.
a
which
Statement
in¬
personalized
Commissioner
as
declare,
and limitations
of
pre¬
State¬
tentative
tion
the sale of in¬
company
explanations
The
dealer
the
a
everyone.
the
of
feature
Latest
has
authors
encourage
standard
a
ideas
with
NASD
the
advantages
rather than the securities them¬
1953.
Total net
Policy,
guidebook to the
jective
a
substanial
a
understanding of the State¬
pared
and
quarter than in the second quarter
of
better
of
investment
high of
of
less
were
members of what
Wiesenberger, senior
selves."
repurchases
market,
now are
printing
of
ment
decline in the stock
a
the
quantity has been incurred.
With
a
view
to
providing
merchandising and pro¬
motion service which provides
more
of 1952.
spite of
after
expense
but
16-year
new
a
literature
the
'syndicate'," he said, "is
not an underwriting combine—
24,000, compared with 21,500
over
the
to
in
assurance
merely an;
suggestion of
foregoing is
one
changes will not have to be has,
made
Dealer Serv¬
the
informal
industry bene¬
reasonable
"This
The number of shareholders of the
Fund
Commis¬
enforcement
better
that
from
Wiesen¬
berger & Company, terms Wall
Street's
biggest
"syndicate."
$8,909,-
history of the Fund, and 28%
than the same period last
public
that
of
roster
a
protected, the
achieves
correc¬
the
securities dealers subscribing to
partner
shares
new
Companies,"
Thusi
fits
Invest¬
ice, shows that 550 firms in 220
announce
total
highest
the
000,
of
record
a
ment
necessary
of the law and the
In¬
Sources of
Mutual
on
the
made.
are
better
sion
publication of "A
Local
to
formation
cities
George Put¬
Boston
Guide
Arthur
that during the first nine months
of
York 5, N^Y.
of
Fund
nam
The
OF
The recent
that
tions
the Wiesenberger
company's
the
in
history and exceeded 1952 by bet¬
ter than $5.9 million.
Prospectus from your
Over
Reports
any
$1
STOCK SERIES
it
to
Dealer
the
were
Doing
the
By ROBERT R. RICH
Series
<
fl
The lob We Are
415
SALES OF the National Securities
.
5
page
to The Financial Chronicle)
WHITTIER, Calif. —Edward F.
ities
from
.Thursday. October 15, 1953
act
unlawful.
provision for
The
statute has
pre-use
no
determina¬
Prospectuses describing these
be obtained from in¬
funds may
dealers
the
1
Company at 2529 Russ Building,
:
vestment
or
from
San Francfscu 4, California.
t
4
Volume 178
Number
5264.., The Commercial and Financial Chronicle
31
(1451)
lection they need from the sound
judgement,
terms—of
plans for the fu- to know what is going on and to free enterprise work.
We
\
give consideration to the possible have
our
separate
jobs
our
honesty, and ture.
common
companies ancT^thedealerJfn'the'ir Jusly Complicated, t'veTend^
The
inherent limitasecurities
tions
to
task.
the ability of government
on
either
create
.*S a
arTas
few
tew
a
a
uon
morals
or
T
...
might
'The
m,
~
i!
^
Quantity
Practices
.
of the industry,
the
as
grossly
sales
load
excessive
prohibited
by
ol
concern
discounts
l
or
long
so
as
i hey
customer
chase
such
fully
and
each
a
pur-
the
com-
knows
dollars
more
substantially
that
question
that
sure
makes
system
receive
however,
wnich
make
who
few
a
is
the practice of
you
understands
mission
for
this
below the break-
mSu 3
point,
22,
granted,
to
companies
!
•
Section
management. 11 such
are
commend
many
he
who
make
arrange-
dealers
the
unwise
who
pricing
Commission
sell
possess
practices.
stands
under
The
ready to lend
Today,
Section
when
22.
the
ing,
it
you
is
competition
particularly
hold
investors.
the
This
important
confidence
fall
will
see
of
largest amounts of private
financing in our history. Inevitably, that means more selling
bv
pressure
brokers
and
dealers
to persuade investors of the merits
of particular
securities. Only self
restraint of the seller
interest
of
the
protect
can
buyer
under
no
is
area
tant than
in
this
the
inj
you
that
^
it
administers
more
imporafter
company
redemption of the securities of
another. Information
file
act
an
which the reguiated group itself
helped to draft—a piece of legislation which was designed to correct admitted
abuses. We have
no
intention of scuttling the ship that
we>re
hired tQ steer
,
nrerautinnarv
mat
f
anlik
f
e
o on to say mat
3 witbnut
CTd
m
h
nhser-
pre^utionaiy obser
let me
rerf
t
be
termed "harassment"
mddndlv
We
nrooose
to reexamine rules and forms
a
registration
nPrt,,a
oPri]rjtip<;
We
have
rules
of Canadian
As
a
honJ toCreate
nf
uniformitv
under
the
aetive
under
for
term
reeistraenm-
nrnieet
we
/reater delree
„
in
oros-
mmnanv
investment
lone
We
formof
Tnd
investment
mnsideratinn
tion
new
statement
fnr
rules
several
acts
forms
and
which
we
*
administer
'
,.
.
,
,
present a receptive mind to
Proposals f°r improvement, clanP aad amplification. We
1 ccognize, for example, the prob!em ?f rePetitive registration of
'"vestment company securities.
We welcome the help of the induktry in solving lt-or any other
J?celva and discuss recommenda,
e
sale of securities
investment
mission's
Qf
But
problem. We shall be happy to
those circumstances.
a
again
th/case
companies, I remind
mQre
vestment
one
of the
one
nQt
nanies
for the investor's dollar is increas-
that
ex-
an
agency of an Administradedicated to less government,
the
its aid to that end in its adminis-
of
True, the Commission is
ecutive
ti
in the Com-
indicated
that
changes.
or
We hold ourselves in readiness to
d,scaas Proposals for legislation
In the !e«lslat've sphere, of
™LC.Tj°w°
sales
KAlA
V%
»■
in government
secu-
or
the
Repur-
in
the
previous
quarter.
During
-n"
gress may ask of us'
In view of the comprehensive
high of 28.8% in the second quar- nature of our statutory responsiter to a low of 21 9% in the fourth bilities
under the Investment
quarter. Redemptions may reflect Company Act, we have an obligathe normal
desire of people
to tion
keeP advised of the prob1952
repurchases
ranged
from
a
shift the character of their invest-
lems which
ments.
I'm
terest
Changing markets and
rates
and
a
change in
in-
per-
sonal circumstances may each dietate
a
folio
shift in
But
to
concern
are
it
an
investment port-
must
excessive
he
a
eause
business
anv
returns
of
of
if
there
its
mer-
an
arise m your
inland
man
industry,
myself, but I
understand that the Coast Guard
has a system of warnings—flag
s|gnals for storms, threatened hurricanes
and hurricanes.
Continu-
ing the figure, the Commission
bas an obligation to watch the
cloud formations and to keep ad-
chandise
Redemptions
bear
watching,
bonds.
Nor
need
they
make
any
departure from their broad
ments. Nor
■
XSMlllf
MOfllly
during the early part of the
pursued
a
restrictive
credit
Neither
am
I
sug-
I suggesting that
am
they underwrite the price of
gov-
ernment bonds, including the
new
314 s,
at a perpetual price of
better.
or
What I
V
am
par
/
suggesting is tftcix
e
we
t
P°inted out: first, that the appetite lightly. It makes just that much monetary policy should not rest
°f tbe life companies was limited more difficult all future refinancwith
Treasury or the
at that time; second, that many ing operations...
Federal Reserve. This responsicompanies had very large forward
in the long run, a disorganized bility should be shared by private
commitments, and therefore did bond market, particularly when enterprise dedicated to the public
no£ have excess cash; and third, if extends to government bonds, welfare. We should not fear giv£ba£ U. S. Government bonds al- is good for no one. It may present
.J ,_a
enthusiastic support
read
constituted a substantial an opportunity temporarily for Jo the Treasury's policy, merely
percentage o£ total assets. It was a few lucky purchases at bargain because some prophets of doom
the consensus of opinion
an(f prices, but that should cause sat- tf11
that moderate credit reopinion only
however, t h a t isfaction only to those who are stnction and higher interest rates
probably the life insurance com- unable to look beyond their noses, wi
bring on a business deprespanies could be counted upon t0 We who believe in a sound dollar,
^
subscribe about 10% of their ex- and we who are trying to serve th<r. Pursult of sound monetary
pected incoming funds for the our policyholders' best interests, Policies elsewhere in the world
_
balance ot 1953. Thjs amounted to
somewhere between four and five
must assist in seeing to it that
there is no repetition of such a
hundred miUions of dolIars' This SitUati0n'
compared with 33.6% repurchased
companies
v
asslstance and counsel as the ap-
period,
same
in
1953.
to
insurance
The Treasury 3*4%
policy too severely and too long, should do our share, perhaps more
I'm not in the government bond not. fully realizing how delicate than our share, in supporting the
business and I'm not a bond sales- an instrument open market policy Treasury's program of obtaining
man? but as an insurance man, I can be.
an
honest dollar by recovering
know the Treasury 3 *4% bonds
If these were errors, however, from past inflationary practices,
offered this spring give a rate of they were errors of procedure—I am suggesting that we participate
return that covers the average not errors of principle.
liberally in the purchase of new
earnings required on policy reOne of the principles involved Treasury offerings that meet our
serves. One other feature not to was the advisability and necessity requirements, even though such
be ignored is that these bonds are of starting a sound refunding pro- participation may reduce our overnon-callabe for 25 years. Which gram even though in a modest all rate of earnings by a very
means, of course, that they offer way.
It was a principle that slight fraction. And I am suggestprotection of assured income even should, and did, have the approval ing that we should not be hesitant
.f there
be &
^ & Qf those whQ belieyed in a stable> in utilizing some of our resources
per.Qd
extremely low interest honest and sound dollar Whether courageously, to minimize temporates. I maintain, therefore, that this start of the Treasury's re- rary conditions of disorganization
these bonds were consistent with funding program could have been that may occur from time to time
our investment requirements.
handled better technically is be- in the government bond market.
You may reca11 that before side the point The fact remains
Mnn(iv
p
,.
wni
v
.
these new b°nds were issued, the that this first attempt received a
Sound Money Policy Will Not
Treasury asked the Joint Commit- black eye in the market place.
Brm& a Recession
tee on Economic Policy of this Many considered it a fiasco. Al" I mentioned earlier that, in a
Convention and the Life Insur- most immediately those who favor democracy, monetary management
ance Association of America to a soft dollar and those who be- tends to be a one-way affair, beS*ve
informal views and to in- lieve expediency to be the first cause it never can be completely
dicate what the life insurance law of politics started bellyaching, removed from the influence of
companies might be able and willA reception such as that given politics. It is all the more iminS to buy. Our Joint Committee, to the new government bonds is- portant, therefore, that responsias I believe most of you know, sue in May is not to be regarded bility
for executing a sound
41.2% of sales
the
of
mm
IldiQl
serve,
year,
ecutive Office of the President for
lncluslon m the Administration s
profram ana we carJ len.° sucb
amounted
Ufe
purchase nothing but government
any government bonds that fail
to meet their investment require-
*
$69 000 000 in
$167,000,000
chases
»
««■
"Al I IUA11U1II1U
amounted
to
to
gesting that they should purchase
ItvAv
-^^1^^^ L^sulS'to^whenTelstl
quarter
v
v
VAAAVvA
endtheSnv0e7meSntUriciombnya0nTen;
second
a*
llffl|(OrC
Iff Uf fffff f|l fffff
be invested
come
consequencesmake it absolutely
I want to
^
investments.
r
*
else to
someone
Policy regarding diversification of
15
rities.
are
knowledge to suggest additional
techniques to eliminate unfair or
In
0f consequences.
d
investment
operate
and
with
cautious consideration
a
In, rnZ™
their securities should
the
an(j with
^ y
,
carefully and precisely
move
work
companies
tration
must
page
or
rescue
great
InvrflCtltlflll t
AAA V VillAUv AH
concepts to specific situations, we
stock, ™ion
more
recriminations
way,
Those
ments
'
-
to agree on catch words
that
cou
avoided.
v
disastrous consequences.
"simPlification," "less PaPer
*
not
is
there is none ot the discrimination
a
,
work," "self-regulation," etc., etc.
we begin to apply these
>n
discounts, particularly,
subject of irritation. So
the
long
.
practices
pricing
are
have
«;laim success
~
^
f-°? occasionally But when
complaints
about
th e
receives
^ nefer of us
Our job and your job and the unless we both act ln the Public
J°b °f 3 I°t of other people is interest and for the protection of
to make the American system of investors.
Impuls*ve a^01?' Ke*Pf:pl" Continued from
bright ideas
can
It's easy
SEC and Pricing
and we
pretty delicate mech-
a
*
serve
but the
.
mental application of
be
consiaerea.
.
ad-
we
all complex,
anism—the process of capital for-
+
which the
seii-discipiine
which
statutes
are
deal with
th? imnosi
imposi-
in
in
areas
oi
brains
The
minister
each
baa n?J
^fnt
Canada
broug]ht on depression but
,•? nnttliv 7nfe ?n
England thfLow Coun-
«ow Life Companies Can He.p
Life insurance companies in the should point out that interest rates
aggregate represent the largest
fbls country today are still exP°°I °f new long-term savings in tremely low historically—in fact,
the country, the net savings flow- lower than in any other major
usually large amount of new cor- lng 11r}.to
averaSing nearly half nation in the world except Switzporate and municipal financing. a bllllon dollars monthly. I am
Shortly after issuance, the new certain it would have taken only
government issue dropped below a modest amount of courageous
I feel that perhaps I may be
par. This was the prelude to a buying to have halted last May's accused of preaching a sermon,
rapid deterioration of the whole disorderly retreat of the govern- which is obviously something no
bond market which, by June l.ment bond market. Courageous Qne -n
business can do That
had approached a state of disor-j buying could have accomplished
y
ganization. Potential buyers went;' ibis long before the rout became certainly has not been my mteninto hiding, waiting for still more so pronounced that the whole tion. I do, however, feel very
favorable buying opportunities, monetary policy of the new Ad- strongly that we in the insurance
Security underwriters, caught ministration came under heavy business with our great public
with large inventories, were toss- political and business fire.
I woning bonds overboard ti avoid fur- der if we fully recognized the chal- ^ust, must think in terms of
their losses. Government bond len£e of that situation to our busi- statesmanship rather than expedidealers, by and large, did not dare Pess statesmanship and if we real- ency. Our directors, our finance
was
offered.
you will remember that when
these new 3J/4S were offered, the
market was crowded by an un-
.
,
.
vised of how the wind is blowing to take
even normal positions in
!zed h°w
doll®irs could have
committees, and
,
.
our
.
senior olfi-
helped in the pieservation of an
think
in
terms of
pointments^ can do more damage know what, the score is. I don't causi of the unusual risks in- orderly market and the Treasury's cers must not think in terms of
to
your
business
than
all
the mean by that that the Commission volved. Under such conditions, it new debt policy.
day-to-day decisions that may be
penalties in the Commission's should be a busybody telling you was very easy for even the friends
We in the life insurance busi- good for this year's earnings and
book
how to run your business. The of the Treasury to say, "Look how ness believe in private enterprise, this year's dividends, but rather
The
maintenance of investors' Commission
can,
however, per- wrong you were."
We believe in a minimum of gov- in long-range terms of what is
confidence is a fundamental con- t°rm a service to the industry and
jt may wen be that the Treas- ernment
interference. Unless gotng to be good for our policycern of the
national economy, for the public interest if it uses its ury did not time this issue wisely; these beliefs are hollow, we must
hn«inp«
and
our
Broadly speaking, it is the justi- statutory power wisely to warn that it took the market by sur- be willing to back our beliefs ag- noiaers,
Dusiness,
fication for all the acts adminis- of practices which could become prise in announcing its plans so gressively by positive action. We country five, ten, and even more
tered by the Commission. But the abuses.
early. It may well be that the must be ready to take the lead years away.
We must lose no
government's part in the creation
For example, the Commission Treasury made a technical error rather than to wait for the leader- opportunity to prove by our acof
that
confidence
is
negative, is interested in the practice of the in not making clear whether the sbip of others, much less the lead
tions
we
are worthy of the
Basically its job is*to prevent and giving by investment companies life
insurance
companies
and of a government agency. We have
Ampripan
nponlp
havp
strike down abuses and to punish of brokerage
^business to dealers other institutional investors would vltal interests in an orderly gov;
loss of
confidence
or
even
disan-
Changing
the
figure,
it
should the government bond market be-
,
rascals. The role of private enter-
who have been most effective in
be
in positive. It must
soundly and honestly.
the
they had subscribed for. And it
prise
create
s^fe of investment
allotted
all
the
bonds
which
ernment
bond
market.
We
have shown in us. We must lose no op-
v.1*3! interest in the successful
upon
the
financing of the national debt. American public the constructive
subject is not intended as finger- it made an error by calling upon And so we must be ready to prowhich we are Dlaving in our
SEC Future Plans
pointing—yet. It is merely illus- these institutions for only 20% of tect that interest and not wait,
invoctmont
Now may I speak briefly—and trative of the Commission's real- their
subscriptions. Similarly, it as so many with little courage did country tnr ug
unfortunately in all too-general ization that it has a responsibility may well be that the Federal Re- last spring, for the Federal Re- of their savings.
o™
^
x
™
securities.
Mjy
company
mention of this
probaly
can
be demonstrated that
re-
portunity
to
impress
32
The Commercial and Financial
(1452)
We See It
simply and very briefly
differences between our position today
and our mode of procedure and those of the British in the
nineteenth and early twentieth century.
of the major
it
10%, there were yet severe
liquidity crises
which the rec¬
on
ords of the House of Morgan can
have made
we
end of each decade
at the
was
above
powerful enemies.
We are obviously in a tough spot, and must make the
best of it, but we shall do just as well if we keep our feet
on the
ground and never forget how we must appear to
that
now
for example, the ratio wa3
29% and while from 1870 to 1900-
about which it is futile to argue now.
while to point out very
worth
some
had kept out of
we
Thursday, October 15, 1953
.::
I860,
them are other questions
The point is that we
were drawn
in, and today must consider what our fate
would be should another such outbreak occur—especially
much safer if
Continued from first page
As
Chronicle
again bear witness.
There., is,
however,
not
much
point
in my
inducing tedium
through
over-quotation
of sta-'
tistics because these statistics all
the other fellow.
leave, out the vital element of
British Rationalization
all, let it be observed that if the
First of
•
British ever
Continued
seriously regarded themselves as world peacemakers
was a sort of rationalization justifying in their
own minds their real purposes, objectives and procedures.
The sun never set on the Empire in those days. The rulers
from
11
page
American
in that period
than
vital interests
in every quarter of the globe. Their primary purpose in
life was to safeguard those interests. Compared with other
imperialistic rulers their self-interest was for the most
part enlightened. They were "good," moderate, flexible
they were much more nearly rulers
they are today—had important, often
Prejudices
shrewd
in all that they did, whether
otherwise, their abiding interest was al¬
rulers, but
humanitarian
or
the good of the Empire.
ways
aloof unless the interests of the
remained
rather
Generally speaking they
Empire were
directly involved.
no empire in the British sense, and loudly
We have
sincerely proclaim that we want none. In the older
sense, we have little or no interests in the Far East, in
India, in the Middle East, and certainly none in Europe.
-and
When
our
we
which all
are
regions,
inject ourselves into the affairs of these
is often resented since in the older sense to
have been accustomed for decades these things
presence
strictly
result is
none
more
of
our
business. As
often than not
a
matter of fact, the
even worse
than is
so
indi¬
indication
of imperialist design—and even when it is really not so
regarded the propagandist finds our activity excellent
cated, since our activity is often regarded as an
Again the foreign observer trained in the older no¬
politics finds it difficult to reconcile our dis¬
claimer of interest in empire with the geographically far-
flung defense .system we insist upon maintaining. Bases
"hugging the Asian coast, others resting on the African
mainland, and still others in practically every other stra¬
the globe could hardly fail to be reminiscent
generation of the practices of the imperialists
of another day. We suspect they would be regarded in
about the same way by us if they belonged to Russia and
were located so extensively throughout the world and, in
on
to the older
•
particular, in our immediate section of the world. And, of
course, a large and important part of our defense prepara¬
tions is of the sort which would be equally valuable in
the event we undertook aggressive operations against
other peoples.
As Others See Us
Let
.
not be misunderstood. We
are
not here
about their own future and their own safety—and
of them, doubtless, so saturated with their own im¬
easy
some
perialistic designs that they can scarcely be expected to
doubt that others are equally ambitious. Defenses we
should be foolish to neglect in such an era; and in this day
and time defense must be world-wide to be really effective
—but, of course, such an argument in the mouths of our
rivals could plead for much that we should not be willing
•
to
induce
Of course, we are
well
aware
that argument in sup¬
area
how
price
is
.
..
«.
-
almost suggest that they had been drained off somewhere.
The
development of atomic fission and fusion has further
complicated the situation.
twice
selves drawn
'
•
-
during the past half century
from
our
into
a
direct interests. Whether
kept
us
have found
our-
devastating conflict which started far
shores and in
could have
we
sense
or
far from
not
our
immediate
or
farseeing statesmanship
out of them and whether
we
should be
In-
as
them
of
one
no
has
desired
ever
further
inflation, but the "booword" has been continually used
against them by persons in America who have regarded the infla¬
tionary trend with equanimity.
ratio
as
high
enough tore--
of
k
gold
in
United
the
States;
especially if account is taken of
of pseudo-critics who are also in
the •much.greater external debt in
1938
asi compared - with
that in
perhaps, pseudo-allies,
1914.,;
L\
This school, while clear as to the
discipline which could be afforded
Low Liquidity
by a return to a system of interFrom the practical evidence the
national gold payments, insists
........
that there is enough gold for conclusion seems to! be inescapAmerica to return at once to a able that in. all the. ,years'from
full gold standard.
Presumably 1919 to 1938 international liquidother countries, once they had ity was<too^low, in the world as
clamped down on credit, would a whole and the average argument
also introduce gold payments and is unconvincing because it
join what would become an inter- amounts to assessing the liquidity
national gold standard. This prej- position of. a business or a counudice may briefly be called "the try without taking into account
prejudice of enough gold."
what1~ Accountants term Debtors
Before I deal with their arith- and..r Creditors. Iii ;the inter^war
metic, may I again explain that period if one country acquired too
some ways,
-
,
.
much gold ity inevitably became
object of attack ; by gold-r
position, i.e., on what gold re- hungry countries who^ by methods
there need be no inflation if the
serves
a
country possesses and hke unilateral devaluation/and
premiums represented by the re¬ what
its
debts
receivable
and exchange;., control* attempted to
valuation of the asset, gold, were debts
Id,
payable are in relation to replenish .their tills with gold. In
While
placed to capital reserves
that gold stock.
It follows that the . '30s; such policies were la¬
this answer has not been chal- the time structure of these items beled "beggar-my-neighbor"; pol-^
chal
lenged, some critics now shift must also be taken into account.
icies, and there are now signs that
of liquidity is based
view
our
Inflation Not Necessary
on
what I have called the net reserve
Elsewhere I have explained that
•
in
ground
reserves
point in raising
This to
admission.
the price of
is a staggering
me
desirability
un¬
(now
everywhere)
almost
accepted
critics
these
Are
the
of
aware
Are
the
fact
of
between
there
they further unaware
was
in
that
the
the
a
interval
of
process
currency
representing
devaluation,
round increase in
Wars
World
two
the
an
allof
measure
gold and this process represented
a
great improvement in the liq¬
uidity of the international bank¬
ing system, or, put conversely,
there
all-round
an
was
short
of gold
stock to money
this:
ratio
the
"Today
of
in new
they do,
plot.)
,
United States:,
ratio,after
allowing for debts receivable andl
We
now
the
the
take
gold debts payable, then it is now only
and de- about Vs of the figure it stood at
our
stock to non-gold money
10.37%. before World War II and the.deof terioration of its liquidity, while
8.6% for the years 1915 to 1932, smaller in degree, is as free from
when the range of yearly aver- doubt as that of the world as a
was
from 6.7% to 10.9%. whole/*
■
ages
approximately
is
posits
This compares
with
an average
When the ratio was at the
level
record—21.7%
on
highest
to
i
■
_
Dollar Over-Devaluation
24.6%
-
failed
I have not, of course, dealt with
to take advantage of the unusually those who allege that the dollar
in
1939
to
1942—Congress
favorable situation."
reduction
in the relation between the credit
" regards
As
The argument goes like if
supply.
characters may
clothes and with new names come
and
cut
ratio
the
Argument
gold" school takes on the stage again.. (If
simply looks at watch for the old corny
The "enough
a
of
increasing the liquidity of central
banks?
The "Enough Gold"
then there would be
tal
gold.
these .old
argue that if
placed to capi¬
and
no
From
these average ratios
was
it is 1
overdevalued last time.v This
believe is another: example o£
poor interpretation of arithmeticgold In the United States at Tts
'wd? noT^beUeve6 havl
current pnee and there is the hid- statement will not, I believe, have
den allegation that the dollar was
over-devalued last time.
that liIthe par value of the^dollar
argued that there is now enough
"in^ terra"
school
our
reduction
terms
loldfwhai
is that this
expressed in
be made
proposes
of
of
credit,
gold,
should
»
This, I would submit, is an un- ha^ been
® h
not through a drawn-out process tenable argument. An average, as meant
an excnange raie giving
of international competition lead- my old friend, Professor Cannan, 5?ore Pounds in relation to dollars,
ing to a large-scale destruction of used to say, merely means that J^or example, the exchange rate
credit through default, with the
there are things above it and between dollars and pounds would
accompanying results of unem- things below it and the range of then have been, say, four d°llar®
ployment and economic distress.
ratios between 8.6% and 24.6% or less. I also do not believe that
in
now
orderly
an
fashion
and
American exporters who remember the experiences of the early
were too low. The later monetary
30s would have preferred such a
experience proved, through the rate. But even supposing that the
general revaluation of gold, that present United States ratio met
the 1915 to 1932 figures under- the requirements of all schools,
valued gold in relation to credit, this would not yet justify the reIn 1933, when the President and establishment of an international
Secretary of the Treasury placed gold standard if all the countries
an embargo on gold exports,
the outside the United States were
Head of the House of Morgan still woefully illiquid. I, submit,
welcomed the action and stated:
therefore, that all these arith"it has become evident that the metical exercises simply lead one
effort to maintain the exchange back aga?n to the conclusion thafe
value of the dollar at a premium *be credit, now caBed
money
as against depreciated foreign cursaPPly> is rated too high in t£rm3
rencies was having a deflationary
^
Pr®- ent—as it was also
effect upon already severely de- after World War I.
_
includes, from known experience,
Prerequisite to Convertibility
As
have
I
of
quirement
explained, the
convertibility
ratios which
re-
of
credit into money requires the revaluation
of
credit,
and
the
yet
of inflation is raised by other
cry
who
not
do
wish
convertibility
because
restraint
the
who
Of course, too, it can be said and is often said that
•
inevitable.
not
regards supporters of the
international liquidity argument,
deed,
broader and on the whole sounder footing than
idea of world "responsibility" and the general
good of mankind. It is often said, and with truth, that
avoidance of armed conflict, possibly escape from conquest,
in this day and time is no purely local affair. The oceans
are not quite the barrier they used to
be—although they
still exist despite much that is said that would sometimes
on a
inflation
further
Such
certainly
credit.
the vague
.
be removed by renewed
can
inflation.
port of our general foreign policy can be, and often is,
placed
paper
Certainly in the sterling
gold producers have found
easily the benefits of a higher
critics
grant.
of
shower
new
a
money.
pressed
arguing
the merits or the demerits of what we are doing. We are
merely making note of how our actions must appear to
other countries, some of them long victims of imperialism
of other decades, and some of them rightly or wrongly un¬
us
of the
inflation, and not to
the adjustment to take care
effect of past
the premium were
tions of world
tegic spot
That/might be so, but they want
their
grist for his mill.
the
establish.;, internals convertibility
And the Price of Gold
—and
the
the*• debts
and
payable. The 1938 figure was not,2
however, much in excess of the
1914
figure/and the authorities would not in. 1938 have regarded
very
the notion
and
receivable
debts
on
Take,
has
for
to
see
implies
it
extension
example,
of
one
clearly said: "Restraint
spending depends on
public
on
determination
by
to
Congress
practice such restraint." You will,
I
am
sure,
agree
that
so
far such
restraint by legislative bodies has
been
on
conspicuous
by
its
absence
I believe you will also reiect
and
historical
grounds the further
remark that "no other means will
serve
this
purpose."
It appears
inflation
that the boo-word of
in
our
context
comes
either from those who in fact dislike
the
resented
restraint
by
convertibility
the
or
on
credit
rep-
requirement
c from
of
persons
who make queer deductions from
arithmetical exercises.
This brings me to another
fiated American
and
prices and wages
A
variation
of
this, prejudice
It seems to mc takes the form of comparing a
that the way out of the de- graph of world gold reserves in
employment;
ciear
pression is to combat and over- dollar values with the value and
come
the
deflationary
forces, volume of world trade. Taking
Therefore I regard the action now 1926 as a base, the gold reserves
taken
as
being
under
course
stances."
,.
During the
the
the best possible graph shows the effect of the
existing
circum- change in the dollar price of gold
■. '
"
after 1933 and the gold reserves
remains from then onwards
proportionately higher level
the value and volume of
In ; world trade. My first comment re-
1915 to 1932 period curve
figure is given as at a
but even this was low in tnan
highest
10.9%
school
most of the years
in
terms? of
earlier- experience.
Volume 178
Number 5264
The Commercial and Financial Chronicle
...
lates to the arbitrary choice of the
base year. The year 1926 was a
smaller
much
a
amount
the absence of such
In
of
of low international banking ment, the suggestion that
liquidity and it was marked by ternational gold standard
an
in¬
can
year
undesirable
other
economic
fea¬
tures—to mention only one,
was
small
a
strike
this
in
matter
of
there
general
a
Britain—but apart from
arbitrary
choice
of
below
of
trade
(na¬
is
had
desirable.
If
ternational trade and world trade
would have been and
be
at
is
much
these
should
now
higher levels.
There
evidence
abundant
in
that
all
illiquidity in the in¬
ternational monetary system ham¬
pered the financing of interna¬
years
tional
trade.-
Cassel
^
Gold Reserves
on
holds
amount
gold
to
reserves
than
more
an
sufficient
to
ing what they call "selective for¬
based
and
poor
as
word
does
sibly person would maintain that
there
was *
men¬
refer
I
the
those
then
enough
return
years
of
gold
the
ills,
the
of
to
a
pseudo-critics
saying that
to
and still remains
was
search
matters
find
to
and
(as now)
Of
extra¬
nor will it remove toothache,
intemperance of the body or
"the
lay not
monetary
trouble
in
then
overall
any
but
reserves
in
the Gold Delega¬
of 1932. This pas¬
passage from
tion's
Report
contains
sage -
<"there
seems
the
to
sentence
be
little
ground
for believing that the total sup¬
plies of gold available for mone¬
have not been sufficient
use
meet
This
all
reasonable
latter
not
central
the
inevitable
America
but
—
should
that
now
countries
endow
or
with
one
perfect
the fu¬
judgment in
or
On reflection I find that I have
not
dealt
whether
sion
a
the
harassed
the time,
a
and
proces¬
devaluations
general devaluation. In¬
as one
was
certainly
constituted
Cassel,
deed,
of
individual
of
garded
by
bankers
towards
with
the
another
irrational
the
measure
The
of
amount
prices,
many
the
and
dollar
af¬
credit
dollar
cer¬
Delega¬
of
terms
buy. A change in the
dollar measure of gold by itself
is, therefore, quite neutral in re¬
lation to stability of the currency
unit in terms of purchasing power
this
and
bility
so-called
is
tains
for
seeds
the
over
desire for
such
of
stability
con¬
instability
whole
sta¬
fetish—indeed,
mere
a
the desire
field
of
sown
interna¬
Returning
ous
to
now
a
an¬
other prejudice—what I might call
the "Red
prejudice."
the lines that
a
would
gold
Union.
As
This goes
rise in the
benefit
than
of
gold
out
suggestions
the Soviet Union
production
Soviet
pointed
the
once,
on
price of
the
have
we
has
a
large
and/or
the
travel
to
Communist
farther
large
ministers
and
in
this
been
not
the
United
econo¬
States
are
against it and
that, therefore, it
happen. Perhaps I may call
cannot
this
the
"prejudice of numbers,"
many, like one,
remembering that
sometimes
can
of
some
artful
because
is
not
States
still
will
pregnable.
supply
large
is
is almost eight times as
the net gold reserve (that
as
allowing for short-term
liabilities) and a trans¬
only a small proportion of
of
the
If that
would
not
devaluation
of
and
the
S.
friends
it
States
serious
a
i§
in
the
puzzled
are
rea¬
of
have
to
discussed.
mine
The
the
Some
United
by
what
phenomenon is not
unfamiliar because
it
in
have
we
seen
countries which have
many
since revised their views and
support the
for
case
now
revaluation
a
of gold. In the United States, how¬
there is a special reason
arising out of the legal position
that only an Act of Congress can
change the gold parity of the dol¬
ever,
I
lar.
understand
substitute
on
no
of
aid
is
large scale,
a
tion
the
of
expense
also
that
ex¬
sold
in
fore, tend to
where it
the
local
the
United
ordinary
dollar
is
most
has
benefit
shown
completely
internal
inflation
Whatever;
now
have
may
for
the
the
between
the
the period
on
Delegation's
first
/mistaken judgments of those who
were
time," I simply
<•
A i 1
wrong "last
.
fail to comprehend.;
to
I do not wish to be
in
Red hare.
in
Sacrosanctity
I realise that
meticians
some
leaning
of the arith¬
the
regard
/
measure
of
indeed
ered
who first
started
that
economies
over
the
of
we
so-
their
high time that
balance.
A
we
rise
recov¬
in
number
cosmic
may
the
as
it
is
"not'
one
fective
preparations
mean. I do not believe that
problem
can
or
could be
the
world
de¬
is to return
to
economic.
political rather
The
main
ad¬
orderly system of international vocates for a higher price for gold
monetary payments then the have always argued that the de¬
measure of gold must be increased
sirable adjustment
is large but
considerably or, expressed in re¬
an
verse,
that
supply must
the
so-called
money
be convertible into
critics
assume
that
the
what
matter
used,
are
countries
ministration
it has lost
of
its
scramble
ad¬
justment will be small and that,
can
by
the
the
obscure
have
past,
in
the
a
yellow
texts
been
International
figures
of
in
line
that
excluding
they cannot be
expansion ol
that
States,
not
more
world
it
face
is
as
up
a
to
at
the
world leader,
the
becoming
problem
more
and
urgent to obtain in the free
effective
Perhaps
some
country
control
of credit.
shrewd operators in
will
also
say
that
the
out of control and which
they fea/
brake, while, at the same time,
they have a deeper fear that if ii
to
is
not
clean
pulled
soon
the
over
Now
I
may
fully?
As
it will
up
g
precipice.
end
regards
cheer¬
more
the
despised
gold producers, there are now
signs that the process of expansion
of
credit
slowing
one
and
in
up
relation
to
gold
and coming to
there is
an
is
end
for
believing
that in the future the prospect k
reason
revenue
in
show
the
the
gold
reserves
of
that
of
These
from
reserves
figure
a
in
foreign
the
billion,
adjustment of tlx
monetary
away.
some
has
which
Finally,
taken
been
to
as
system
of the profit¬
"preju¬
the
has
dices," I would
say
that the win¬
the
ning of debates
on
the subject i
the
merely of academic interest. Whai
•
is
of
great
practical
interest
i
have,
that the world again places credi
period, risen from a
under discipline. As someone fror
exchange
same
rational
ability
in the
while
a
would restore
fig¬
that, in terms of dol¬
$35
again claim that )
international
world,
order of $26 billion to one
over
and
of most
the
USSR.
aggregate of the gold
increased
I would
not,
however, based th'
argument on the selfish interest
of gold mining although I believt
between 1938 and 1952 the
as
order
cline.
have
countries
the
ures
cannot
if
is to be restricted. Some,
indeed, have the impression that
they are in a motor car which if
Illiquidity
relating to
metal.
they
and they
values are out
credit
recently published
foreign exchange
of
believe
New
abolished,
that the ratio of cost to
The IMF has
Ad¬
lars,
time
the
gold mining is again likely to de
world
say
of
are
Despite
they do
experts,
maintained
increases the size of the bill which
that,
difficulties,
since
will
foreigners
gloomy, but
businessmen
fear that monetary
in
between nations. One
as
delay the settlement but
repeat
not al¬
together believe that depression?
has to be met.
deaf
on
your
be expected until
reserves
for
same
your
say
they appreciate the legisla¬
while
will
your
considerable portion
a
gold
Other
action
no
available
may
I
about the future.
Money
arguments
will fall
they
and
ears
United
Foreign Aid"
the
not
beginning to
are now
no
the
The critics sometimes produce a
than
that
tive
Proposals for "Selective
"science" of
prejudice that is
numerology. What is important is
if
its
fense.
settled by the mystic
that
for
of the
constants"—whatever thai
Cynical observers outside
country
the
arguments
plain to Americans that there is
nothing sacred about "35" as a
will
exactly encourage discussion.
have been
to the Left and it is
they the free world and, as such, it
should go back to the pre-Roose- must be regarded as
something
velt
figure of 20.67- dollars. A that would
strengthen, not weak¬
light-hearted Englishman once
advised me that we should ex¬ en, the free world in making ef¬
on
officialdom
that
tural
Recently I have argued
the
our
this
gold of 35 dollars as almost sacro¬ price of gold would be a measure
sanct. They have been criticised restoring order into the interna¬
for being "inconsistent reformers" tional
monetary arrangements of
in
all
uneasy
are
discover
that
for the Ameri¬
economy.
in the price of
gold is that it would assist greatly
in promoting the return to a stabU
system of convertible currencies.
Even if they
called "free world"
•
*
.
reserves
domestic
why
general increase
largely unsupported. change control and other measures your country is one desiring an
were true, however,
designed to protect the country's end to the process. Its continuance
the amount of benefit from a re¬ till
against loss of gold similarly into the future might be described
meeting in August, 1929, and its
valuation of gold would be in¬ cannot be introduced without an as a
final report in June, 1932, as fol¬
hypocritical solution in that
significant as compared with sim¬ Act of Congress. The introduction there is a refusal to make the
lows: (I quote):.
ilar changes in the price of other of
legislation restoring power to '"structural changes" which some
;
"In the meantime the very ca¬
commodities such as wheat. This
of the critics so much desire. In
vary the gold content of the dol¬
tastrophe which its work should
particular prejudice seems lately lar is also likely to be frowned any case I do not believe it is a
have
contributed • to .avert Ahad
to have been dropped out of the
solution. If the problem is to place
upon because this might be re¬
come
upon the. world."\;
list of extraneous objections, but garded
as
providing a
tip to a restraint on the further expan¬
i
What the critic who now denies
perhaps
Senator '' McCarthy
or speculators
regarding the inten¬ sion of bank money, then I do
the - experience, of -"last
time" someone
else
in
the
United tions of the administration. In all not believe it is solved
by further
'hopes: to prove by quoting' the States might find it entertaining
these circumstances it is but na¬
increasing the amount of credit
tion, has commented
have most unpleas¬
can
that the real reason
America should agree to a
the
mood
abroad
therefore,
away
been
in
aid
that
seems
United
therefore,
may,
consequences
can
export prices in the currencies of
it
Paley
forecast
are
ant
foreigners to their former level.
justification
of
non¬
and
initial
restores
the
have
materials from
reactions
clearly that
by
the
the gold-hungry coun¬
perhaps more likely to
attempt, through a price war, to
draw gold
away from
America.
Such a price war through
^chain
defla¬
thrown
Now
reports
caution
tries
lower prices in international trade
be
of
turn
countries
obtained
in
err in believing
that the flow of
gold to the United States will re¬
tion. Tn practice they will most
likely use both measures because
the experience after the 1949 de¬
valuation
countries.
other
Yankee
plentiful in
internal
and
more
restoration
capacity
States
way
countries is to reduce their prices
in international trade by exchange
depreciation
why
pay
greater purchases by the
will, there¬
those countries
from
away
the
account
and
acquire by purchas¬
currency the most
credit
saying
Americans
productive
Conversely gold will tend
move
in
comes
the
was
into
relation to goods. The obvious al¬
ternative
open
to
these
other
if
goods
aid
then
price amounts {to
go to
can
the
can
in
remember the
its relation to credit. It
the
price
a
(and I would, of course,
impressive total of
generously given), the pros¬
pects for the future must take
not
States
ing
say
has
they can acquire the gold
cheaply. Whatever the past posi¬
ac¬
price of gold
have no option but to
attempt to replenish their reserves
where
disinclination
officials
of
the
on
and its so-called
re¬
received
should
believe that the non-dollar
not
till
when
is
course
is, however,
have
countries
at
will
past unhappy years
for dollars
Expense
assumption that
the
I still
foreigners
American
caution
On
quote the
selves have had to exchange gold
and in-.this exchange
a
funds
one
"Of
fully
of
I
—
speech by an Amer¬
a
that has been too low. The Yankee
U.
to
subject
their
this
so—everybody thinks so."
American
nationals
ol
acquired
gold from hard-pressed customers
who, in many cases, to feed them¬
that
takes
currency
transfer
destruction
a
caution"
Many
the
Replenishing Reserves at
nine
the
a
by
that in these
happen, it
first time
only
have
not ■/ dealt
with what
might be called the argument of
ican.
abroad.
goods.
for
the
place because the
country
to
were
be
consid¬
them to place
I
"Yankee
supply through inter¬
national
exchanges
will
make
large inroads into your gold re¬
serves.
political
cause
further credit expan¬
on
phrase from
money
minded also of the familiar femi¬
There
'
after
fer
moment,
credit through deflation.
assets and
logical
examined the evidence. One is
son
solved
money
Indeed,
say that it amounts to a jury pro¬
nouncing sentence without having
reasoning:
im¬
prove
domestic
"for
unkind observer might
an
not
Your
the
sion, then in the absence of fur¬
ther international accommodation
the illiquid situation can be re¬
place, the United
—
a
domestic
restraint
takes
sense
holdings. The? theoretical
explanation is quite simple. Gold
wrong
time."
the
line
be
For
erations will
employed
in
likely,
instability in so many countries.
If, however, enough hedging in
this
the
finance ministers preach,
namely,
to stop further inflation. If as is
hedging
more
of
many countries are in a
mood of indecision as to whether
or
not
to
practice what their
tected by the ill wind of political
told
mists
commodation.
sense,
but perhaps the
States still has been pro¬
United
and
perhaps,
gain. It is perhaps puzzling why
there has
banking
tremendous potential of deflation
if debtors are refused further ac¬
risks of loss and large chances of
tion is taken
majority of
ternational
offi¬
that
argument on the price of
gold I find that before long one is
the
their
speculation, using
dollars to acquire gold directly or
indirectly, is one promising small
other
In any
that
and
along
In
road.
cials
words, the effect might be exactly
the opposite of what is intended.
silence."
seri¬
more
tone, I must not neglect
tion
might be called the "conspiracy of
tional monetary arrangements.
more
Gold
"in
ago)
moons
what it will
who was then re¬
that
of the "giants," and
of the
one
fects
demands."
statement
shared
events
who
a
is
mind; it will also not grow
hair, provide knowledge of the
the
to
their maldistribution." They quote
was
implies
permanent de¬
mark, the giving of aid in propor¬
to the "reddish" and "pink¬
ish"
element
of
the
recipients
might in fact also encourage such
or
deny past
tainly has not been stable (as the
critics have re¬
late President Roosevelt promised
that
prove
tary
that
perhaps
all-round
an
interna¬
experience, some
cently quoted from the Gold Dele¬
gation's Report of 1932 in order
rto
and
—
surely
realize
"giving
aid"
easily
means
"buying hate." On some
increase in the price of gold is
ways
of looking at it, the in¬
not desirable because it will not creased
liquidity available from
cure
all economic ills. None of a
higher price of gold may be
my school has ever claimed that regarded as not rational, but it is
it is a "cure-all" in the sense of clear that a
higher price for gold
the wares of traveling medicine¬ would give a reward for
monetary
men.
Let
me
again
say
quite virtue, while the aid policy en¬
clearly that a rise in the price of courages the unthrifty to remain
gold will not cure all economic so. If I may add a political re¬
credit.
their
neous
a
a
de facto devaluation of the dol¬
lar
also
equivalent of an ounce is 35 or
credit,
supply, and the object 20.67, or 70 or 140, matters only
in
relation
to
the
amount
of
of conversion, namely, the gold.
lack
taking
higher price.
obviously consti¬
implicit admission that
an
valuation
money
to
by
argument
the
that between the amount of
In
than
gold at
more
de¬
as
prejudice, namely, that to change
tional gold standard or to main¬ the figure of 35 dollars is to upset
tain international trade at a high "the stability of the dollar." Gold
always gold
and,
therefore,
level. The significant ratio in all is
allow
-*1
any
rather
the process of aid is equivalent to
not
respectable
"prejudice."
some
of
any
i.e.
aid"
eign
This
Cure-Ail
which
label
a
be achieved
can
by continuing the process of giv¬
forget, I must
view
a
serve
thai
say
view
a
as
and
on
these small effects
a
whole year's imports with¬
foresight
use of the corresponding
ture.
exports" but despite this, no sen¬
pay a
out
finance
go
past
As ? long ago > as
1935
Cassel
pointed out that "the world actu¬
•j
ally
„Not Claimed
But before I
gold trick
adequate, in¬ have
been
the metaphorical "dead bodies" of
They
tutes
curves
international) has been
what
"reserves
world
is
therefore, the effect will be small.
then
33
-
»
be
poor interpretation
judgment.
from 1924 to 1953 the physi¬ tion
volume
tional plus
deflation
Ar
" *
meas¬
on
impressive since in all the
years
cal
of
ure
*<
" (,
large
a
base,
a
the relation between these
is not
restablished without
gold.
adjust¬
an
(1453)
'"'•.J
s
.
reserves
figure of under $2 billion to one
the
of
of
faith that your great country wi?
is
yet deal with the problem fairly
over
this
$18
billion.
international
The
size
indebtedness
the
revaluation
of gold has time
eloquent testimony
and
time again
taken place over
illiquidity that
now
of the
grave
exists in in¬
and
edge
of
squarely,
answer.
the
world.
and give
I
retai;
a
proper
-
;
The Commercial and Financial Chronicle...
Thursday, October 15, 1953
(1454)
34
to a "deal" with the Kremlin. The the latter's Dollar Gap can never
latest and most conspicuous ef- be bridged, whatever Aid we may
fort along this line is the French extend.
remotely withcannot do her
share
unless
she
can
extricate
herself from the seven year old
the Russians even
Continued jrom jirst page
out her—is that she
Adenanei's Victoiy
And
Germany,
to
bound
different
a
different means at
European Syngman
We cannot let
plane and with
disposal,
his
the
a
arisen.
has
Rhee
than the
down any more
one
what worries the
British more than
is
That
other.
and
French
anything else: that, for one thing,
a
growing share in our shrinking
Foreign Assistance pie may go to
Korea and
Germany.
Once the
latter is rearmed, the Allies will
quit Germany and she will have
regained a large measure of military-political freedom of action—
backed by the U.S. Which raises
more
questions than it answers
miiof
ic
That is whv in order to reassure
why, in order to reassure
the
French,
the Administration
hastens to their support by a fresh
Currency Convertibility
Convertibility of the sterling,
willing to quit under "honorable"
terms, whatever that means. But and of the rest, can only be estabDunkirk, steadfastly refuse), and the revolutionary forces in Indo- lished under such circumstances if
unless the Germans give in on the China^arejitely to make another Uncle Sam "holds the bag": guarequipped German army °t 500,000 tj10rny gaar question. Similarly, forceful attempt to bring about a antees it. The September meeting
men stands ready at her vulner- ^ ,
makes her cooperation con- decision (before full-scale Amen- 0f
World Bank and Internaable Western border. Or, will she dij.ionai on a pro-Italian solution can intervention might be thrown tional Fund chiefs brought out
question, a solution J") °? .at least to improve their clearly: that Europe "needs" a
threaten with shooting in order to of the Trieste *
.
.
.
..
_
prevent the Defense Community that is opposed tooth and nail by bargaining^position for, the coming huge stabilization fund ($10 bilfrom coming into being.
Most Tito—who is alarming Turkey and view of the cra,rJc^s a+re,
d?al- y1®"" half-heartedness m, lion were tossed around); and that
of
likely, she will try to stop it by Greece by his unmistakable at¬ the French who are reconciled to the U. S. Government has not the
remotest intention of providing it.
diplomatic maneuvers. That is tempts to find his way back into the loss of that
colony and are jn fact# Secretaries Humphrey and
where the Four Power conference the good graces of Moscow, this not interested in
ideological
Weeks went on record against (in
planned for October, comes in i on the eve of a "Balkan parley"
it materializes, which is most un- scheduled for October (a month war, in fighting for what they the latter's own words) "internalikely to happen in the visible of international yaucjoj.
£0nS1wr a re^ote'' abstractJJon5 a tional handouts and global boonparleys).
Free World as far away as the Far d0f?<?line "
Howpvpv
thpv
future. It is even doubtful whethBut Europe is virtually united F
f
th
elobal
obiertivp
nf
However, they rejoins the E.D.C. (which the isolation-minded British, remembering
Entopean Unity
are
we
as
On
Korea.
to
bound
offer to mediate the conflict in
Viet Nam, implying that they are
unless Britain
in Indo-China,
war
uaneva;.
miernauunai
iiuexiiauuiiai
when the Korean peace
er and
u
♦i
—
conference (scheduled for
October) will get underway.
a
Adenauer
without
though
General
and
the
in
Franco
"naive"
And
and
most
ODjective
giooai
tne
~as?»
01 ferred to
"clumsy" Americans.
of
Europe shares
with
interfere
possible,
a
Overriding Issue
extent of en- tives. And
the
to
Socialism dangering the Korean peace parley scheduled for October—in order to force us into recognition,
accepting its presence at the Four
Power conference and raising the
mean
to
the
Germans
exactly embargo on its "strategic" 1mwhat it means
to us.
It in- ports.
eludes the "freedom" of entrepreThe concessions would have to
neurs to entrench themselves bebe in the West. Signing the overhind monopolistic cartels; of the due Austrian treaty alone will not
handicraft industries to retrench do The agenda for the Four Powof a medieval color,
into guilds of a medieval color, er meeting is set by the U. S.:
etc. But it does mean minimizing free elections in Eastern Germany
the
government's
meddling in jn order that she should decide
business; keeping Welfarism with- ber
own
allegiance,
with
no
in bounds;
generally not to do strings attached (and no particiwhat the Socialist| were promis- pation by Red China in the sesing: to hand over industrial man- sions, as Russia requested). Howagement to trade union represen- ever, free elections can go one way
tatives; to raise further social se- only, as the recent tumults in
curity and other welfare contribu- Berlin and other satellite areas
Enterprise
Free
vs.
election issue,
rather than international affairs,
to the peoples of the Federal Republic. Economic freedom does not
the overriding
was
_
hich
which absorb today some
22% of the country's national in-
make
to
be
Accordingly, sterling convert¬
a "dead" issue for the
ibility is
and
and is
weakness
used
as
a
jump-
ing ground to extract more concessions.
free
But
donesia,
LU
to
of
the
Britain
to
to scrap their foreign ex¬
barbed-wires—join
the
Dollar Area
instead of waiting
—
willing to make sub- ning in this
expedients question.
Europe
are
concessions
avoid
would be
-
problems
piuuicuib
Iicuds&ing
Ui
of
that
umu
believe
ucueve
nu
no
to
economic
of
and
dpi—..
Franco1BritFranco But
the
join
ish ideal of building up a
~
tion-ridden managed economy
inppntivp-<?tvmvin0'
with
pon-
trols
1'
,
,
..
.
and historic
significance of Adenauer s reelecThe
very
essence
S? .l1.1?,
I1?0.
j
,
not
evacuating Austria would mean
to them the loss of an appreciable
be-
annnaiUt\
miiiinn
nt
onH
q
Chancellor's
no
the
party
majority as ment of German armaments.
a
party has received either under three years they
Kaiser or the Weimar Re- just that. They
such "bankruptuqirnxupiouui
of the neo-fascists
debacle
The
places in order to keep
more
tied
tied
discourage
discourage
and
and
the
of
success
dead
rate).
both
"
"
vnu
on
open
I heir
slogans.
or
implied,
be relied
along
the
over
there
reins
of
little
is
tt
on
c
u.
the
was
that enter-
thwart every prospect of German
which is more liKeiy
wnicn is more likelv
neutralism
and
is a
decisive fac-
.
f l?? ,the^.Pollcy of ^he
aTi
stretch
to
7
ments,
Indonesia.
we
do
can
And
the
on
At
Stymied
t,
with
or
cent
•
air
refusal
u
bases
u•
a
a
only a
chance to
objective. In
reality, the German people know
very well that rearmament means
the virtual end of unity aspira¬
the
for
do'
not
same
visible future.
But
care" to 'dream
any
longer, having lived long enough
in irrational (and immoral) fan-
7,irt
must he
be
ance"
on
to
Perralt American consent, if it
,
her territory. Typical
Russian
Puzzle
"What will Russia do, is the decisive question.
Will she sit by
wait
until
an
American-
may
xxx«j
'
nriPP
of
P
is
Hn
p
forthcoming at any
not
know
pvpm
No
'
of
the
one¬
atomic
the Soviets request it?
avenue
cow
of
Paper?
conference
is the
of
France
Mos¬
explored
Small wonder that Moscow is in
haste
to
armaments
"key country" in
with
(and exploded).
no
France
dialogues
has been thoroughly
And> ™hat are they willing to offer
ln excbange, other than a piece of
Position
The
.
1Xkn£hlusrecent
recent
general
are
al-
ready out of proportion to labor
productivity (e s p e c a 11 y so in
called
they
not
both
to
the
same
referred to what
direct economic
aid,
military aid.
Yet, military aid is just as eco-
nomic
—
ends
.^x^x.
both
uuu*
at
—
as
the
-xx—
ever
view
disbursed in
of
Can
Prosper")
rich
documentation.
whatsoever.
bring matters on the
while German
stage
make
Once
no
on
progress
that
stage,
this situation. Her excuse in hold- they will keep debating and proing up the treaty with Germany— crastinating.
In the meantime,
and rn®
European force
can
output
match Europe makes every effort to get
a
single year. In
growing
the
self-
and
complicating international situa¬
tion, there is little prospect of re¬
Sweden, Norway and FinRaising productivity by lieving the American taxpayer on
this score.
In fact there is a dis¬
with
points- out
per
iGiven
man-hour
low
rela-
and
tinct
possibility that the $1 to $2
savings
in
the
defense
billion
budget, P7or7!ed for fiscal 1954 by
Secretary Wilson, will be "swal-
lowed"
by. additional
abroad:
from
,
tively high labor %osts in industry, ■ They may
v.dth productivity rising much France and
1
"
^
"
J
naked faster in America than in Europe,
overwhelmingly opposed to
the entering
the European Defense
security— Community until and unless every
security
Russian
scrapping
weapon, as
tasies.
and
the
Union.
against whom? And how? By
sided
analogy
„11UxvbJ
W d° n0t GVen kn°W' N°
R,?^h.nc French government dares to chalpT7n satisfactory ^:f,r lengejsthe country's public opinion
given "^tf^aMnrv assur- lenge the country's public opinion
tbat
about
Soviet
The
xx.u
mav
retorted
that
hurt.
would
seem far fetched, but the
commit- W1:n (jrermany s armaments with
T11"13™ commn 0ut France's consent; and the final
Denmark's re- Drice she
bp askine for that
oermit
Ampriran P
r
-ay P asKing lor mat
Adenauer
they
the
the
And when total labor costs
land)?
militarv
neutrality
has
it
behind
by ine country s is Churphill's remark la«;f month
oy the
country's
Churchill's remark, last month,
proposed by Moscow.
! that the
tions
basic
But
*
without
<«cePtmf wjfh Oermanv'c; armampnft! withtruth is that we cannot proceed
^
achieved
Europe
accomplish the
a
.■
mentalitv
aoDeasing
bv
Britain,
•
cu
r
S. is
p r s e n
Turkey) to reduce and
their
or
aenievea
strong
A Basic Weakness
Eurooe's
spoke
Treasury
effect.
rtSnSTta atton
R^ecMctomSl
^-^^"KU^howe^hTs ^is HuttmFs'1'excellenfboolf^("We Too
arJSEESt £aantacand
Greece
unification
unmcauon,
be
ue
the
^
.
Ad^au^ we' a7e""
same
argument,
in?
ing thp Dpfpn<?p Fnmmnnitv mipht
tne ueiense community mignt
to
iu
to ignore.
.
groups
(for the time being, at any
Note that the Socialists,
hand-
and
Qnd we ought to sell him a cane
^ wajk with." The Secretary of
"
ion
alistic
hnnndoeplinf?
aiobai
North
contrast They offer peace plus trade with
at the one hand and a big fist in the diplomatic hands tied behind his
the recent Italian polls, has great¬ other. This combination does not kack—as
MacArthur's
military
to
impress
Asia
and
even hands were tied when he was not
ly enhanced Bonn's moral position fail
in the Western World. Nazism is Europe. It feeds the trend toward
permitted t0 hit the enemy where
to
create
Allies- They fan the fire °f anti- strikes innot to sympathize with other kind. - Much of it consists acFrance -and Italy. It is
colonial
movements
in
French difficult
tually in offshore purchases; some
For diplomatic front.
German elections, in
the
when the United States
strength abroad "by
^
could
+V.OTYX
weaknesses, strong point indeed, which army
have been doing
can
attempts
further
for
public.
Secretary of Commerce, did some
-pkpt
sound
to
Facing the Capehart Committee
the U. S. Senate, Mr. Weeks,
Africa. The Mau Mau re- the employees in those countries
of it is distracted into non-miliv-onva
whirh miaM
P .y .;f
.
.
countries, .
- ..
th
v0u ln Kenya' wPicn mignt spread their majority receiving real in- tary use, an ot it leneves me rehold of some mUitarv and prona" a11 0ver central Africa> may have c°mes which would.'be considered cipients' financial burdens. And
gandi?tie importance
been sParked from Moscow, too. sub-standard on this side. But as to our end of the business, the
S
c
portance.
The Red-inspired strike threat in how can wages /be'raised when one kind does not cost any less
Therefore
Soviet
diplomacy chile's copper mines belongs in "fringe" expenditures of business than the other. This fiscal year's
°.b,],!ctlve the same chapter, as does the fact amount in Italy, as an example, to total Foreign Assistance of over
—to split the Atlantic Alliance, that" an"uTtraTeftist factio'n" took over 70% (!) of Ithe wage bill? $6V2 billion will be the highest
(at least $150
of revenues
source
lofty Ideologies and turned
Economics as the road to wm enough support in Britain,
salvation.
And it gave
the France and Italy for the postpone-
gone
to
serious blow to the in¬
ing" armaments
r\n
industrial
Russia's
re-
—
trated
ShfsMiTto
refusing to
a
asVe are trying
1
in®
in
outs wrung irom tne taxpayer.:
adjustments. They are sure of our to force on them are needed in the "Now we are about to take the
protective
of ™
That is a Cru1
pruieciive might, ana rely
mignt, and reiy on Age ux Air Powef,
on
* crutches away from the patient,
rearmament
reflects
.
of
he
15'! inclined
—
harassing
dvuiu
preponderprepondei- hands
hands
military
_
That
for Britain to take the lead.
iTanother blunt speaking. The time is past,
is anotner
conflict
contnct,
the
the
certainly
swallow,
to
their
.
as
change
In- ity is the right way toward win-
our
j
"jumping the
they would
in
proceeding,
like to,
Whether the Defense Commun-
peoples
from
world,
stantial
legitimacy of the principles, rules
and customs in the other world."
the
by doing as little governing as likely
possible, having no Four Year 4-1.. while
or
~
j.
th
British efforts' are
stopping Belgium
on
Germany
gun":
generals and navy^admirals like
.
being.
concentrated
Bolshevik despotism. Therefore a ner-mechanism of the Sterling
of amity is quite out of the Area.
It
is
doubtful
whether
know, too, that appease- question. Neither side wishes to Germany's courageous Dr. Erhard
ment does not help, that any con- run the awful risk of a general
dares to undertake it.
cession we make is appraised by war, but neither side is prepared
Foreign Aid
the
Bolshevists
as
a
proof
of to recognize wholeheartedly the
a
-
can
\ye
arei
With-
concessions?
i
large
a
expected.
time
subjected to their values; we are
not reconciled to the prospect that
the subjected peoples and the
Russian people itself should re¬
main forever under the yoke of
guarantee that a united Ger- brought into the open by Malenand profit controls. In any case, many
would become
"neutral," kov himself.
the Germans gave a confidence evacuating her Eastern half would
Instead of answering by the
vote
to the system that helped be a political and economic sacri- offer of concessions of their own,
the Soviets are not the Soviets stir up more trouble in
them to a spectacular recovery— fice which
price, wage 0ut
impose
to
or
come;
on
assistance
American
immediate) goals of Soviet policy peace
But is Moscow ready
any
t
expansion
doubt what the ultimate (and the
^
have shown.
tions
Defense treaty, she may sabotage
jt piecemeal.
Qur foreign policy is caught on
tbe mile-long horns of a dilemma.
We know beyond the shadow of a
of
scale
if she signs -the mined that we shall be ultimately
even
_x.i
further
no
,
balking
Eur0 e knows that
But at least
very
armaments is to offer subIt tries to ignore the essentially
gradual, relaxation in the Cold
stantial concessions. But where?
irreconcilable
conflict,
in, the
War. France has us in a corner:
military subsidy
in Indo-China They cannot throw North Korea
words
of
the
French ; political
if she gives up Vietnam, we would
and by an official declaration (by to
the capitalistic "wolves" or
Bertrand de Jouvhave to send 20 divisions there, philosopher,
Mr. Dulles) of all-out protection forego the claim on China's adenel:
mittance to the UN without alien- or let it go Bolshevist by default—
of that area.
ating Peiping. In fact, the latter two equally unpalatable alterna¬
"The Soviet leaders are deterThe
off-
by
as
shore purchaSes) was left open,
man
0
does thetricks
(such
nomic»
f^ethatmight ™nviction ^fhWrritafe the" Rus- ™e^ahiy> whicb threatensthe Atthe Soviets done that mi^t imtote me Kus
antic community with disintegration.
to postpone Ger- sians, arouse meir suspicions, «mu tlon
aid; military
same "ecc-
economic
which
aid>
this
Short of using
spark World War HI,
nrime
prime weaoon to postpone
weapon
^
}
?•• ■'§
—
=~"
'
Korea
not even
spending
to
Spain.
suffice if
Germany should be
"
1""1J
"united" in joint armaments.
Volume
Number 5264... The Commercial and Financial Chronicle
178
33
(1455)
The
Indications of Current
Business
latest week
Activity
week
Latest
steel
Equivalent
Steel
operations
of capacity)
(percent
Previous
Week
AMERICAN IRON AND STEEL INSTITUTE:
Indicated
following statistical tabulations
Week
or
or
month available.
month ended
Month
Ago
Ago
*05.2
91.4
106.5
§2,129,000
*2,146,000
2,060,000
2,211,000
BANK DEBITS
THE
of
BOARD
—
OF
GOVERNORS
42
oil
and
gallons
condensate
Crude runs to
Gasoline
output—daily
(bbls.
average
each)
of
stills—daily
output
Kerosene output
fuel
oil
Residual fuel
»
6,533,900
6,514,500
6,880,000
7,228,000
24,045,000
23,916,000
24,805,000
6,928,000
23,451,000
Oct.
2,362,000
2,295,000
(in
thousands)
9,757,000
10,075,000
10,423,000
8,249,000
8,062,000
9,148,000
8,966,000
Stocks at refineries, bulk terminals, in transit, in pipe lines—
Finished and unfinished gasoline (bbls.) at
;
Oct.
Kerosene (bbls.) at—
--Oct.
Distillate fuel oil (bbls.) at—
-Oct.
Residual fuel oil (bbls.) at
Oct.
—_
;_*
143,222,000
AMERICAN
freight loaded
Revenue
(number
of
U.
36,924,000
35,901,000
35,212,000
126,217,000
120,974,000
118,078,000
51,936,000
51,030,000
812.554
819,709
799,079
851,920
New
672,846
669,259
666,941
723,326
Outside
$170,028,000
$382,583,000
$320,985,000
$341,573,000
State
and
COAL
Bituminous coal
S.
coke
and
129,013,000
136,893,000
8
71,446,000
98,659,000
109,153,000
lignite
OF
STORE
14,394,000
25,200,000
19,860,000
Oct.
INDEX—FEDERAL
3
9,230,000
*9,660,000
9,620,000
BRADSTREET,
IRON
678,000
682,000
558,000
876,000
3
89,000
*87,400
93,900
85,600
3
112
*114
101
116
AGE
Oct. 10
;
INDUSTRIAL)
DUN
—
Scrap steel
METAL
Electrolytic
M.
&
8,414,452
7,962,823
186
189
131
4.634c
4.634c
4.634c
4.376c
$56.59
$56.59
$56.76
$55.26
(New York)
Lead
(St. Louis)
Zinc
(East St.
Oct.
$31.33
$31.50
$38.67
$42.00
29.650c
Oct.
29.475c
29.700c
28.175c
28.300c
29.025c
81.500c
84.000c
82.750c
Oct.
13.500c
13.500c
14.000c
——Oct.
Louis)
13.300c
13.300c
13.800c
at
).000c
10,
Oct.
-
poultry
112.7
foods
vegetables
at home
125.1
and
and
10.000c
10.500c
118.1
112.1
107.0
118.4
118.3
115.9
95.52
92.83
104.83
104.31
103.47
102.96
102.63
101.80
104.14
102.80
109.24
106.92
Oct. 13
DAILY
recreation
goods
and
services
FACTORY EARNINGS AND HOURS—WEEKLY
106.21
104.66
YIELD
,
109.42
Oct. 13
Group
care
96.12
Oct. 13
a
106.39
107.80
106.04
113.12
AVERAGE
ESTIMATE —U.
LABOR—Month
of
All
manufacturing
112.56
$71.69
$71.51
$67.23
_
77.27
*76.89
72.16
goods
63.92
*63.76
61.45
40.5
40.4
40.5
41.1
♦40.9
41.0
40.0
•40.0
40.7
$1.77
$1.77
$1.66
1.88
1.88
1.76
1.61
1.61
1.54
$162,438,000
36,873,000
$169,925,000
$154,506,000
39,094,000
33,809,000
9,265,000
*8,733,000
33,908,000
34,018,000
8,845,000
31,200,000
57,780,000
*60,133,000
52,947,000
61,713,000
71,958,000
57,194,000
$338,501,000
_
goods
Nondurable
Hours—
_Oct. 13
2.84
2.81
3.01
2.77
manufacturing
Durable goods
—Oct. 13
3.46
3.49
3.54
3.21
Nondurable
—Oct. 13
3.18
3.20
3.29
3.00
Oct. 13
Aaa
——
—.—
3.35
3.38
3.42
3.07
Aa
A
3.52
3.57
3.85
3.88
3.64
manufacturing
Durable
goods
Nondurable goods
3.21
3.23
__
Oct. 13
3.82
—Oct. 13
3.57
Oct. 13
3.47
3.50
—
t
Group.
—
Group
Oct. 13
COMMODITY
ASSOCIATION:
393.8
)
3.37
3.34
Oct. 13
INDEX
PAPERBOARD
,
3.39
3.03
393.9
415.1
425.8
LIFE
Death
Percentage
AND
DRUG
=
end
371,431
226,801
349,603
335,236
259,699
257,907
259,476
240,751
3
98
QO
98
95
Oct.
—-
at
3
3
3
590,808
481,985
555,638
553,261
Oct.
of activity
Unfilled, orders (tons)
.——
9
105.70
105.58
105.91
REPORTER
PRICE
,
LOT
DEALERS
AND
SPECIALISTS
EXCHANGE —SECURITIES
sales
by dealers
ON
N.
EXCHANGE
Number
of
orders
Number
of
(customers'
shares
Dollar
other
sales—__:
—
sales—
sharer—Total
other sales
Number
Number
TOTAL
by
of
(DEPARTMENT
19,764
21,292
435
300
128
10,290
27,944
19,464
21,164
Wage
and
534,203
847,733
573,909
599,922
Total
employer
10,686
16,293
9,777
4,840
Sept. 26
Round-lot
THE
STOCK
MEMBERS
NEW
173,400
FOR
ACCOUNT
OF
510,080
221,030
205,990
190,800
9,417,650
4,503,390
4,994,740
9,927,730
5,200,730
off
the
33.6
32.8
4.2
*4.2
3.8
5.1
rental
income
dividends
5.1
4.7
•50.1
51.5
22.5
22.3
20.9
13.5
13.5
12.7
270.5
RECEIVED
NUMBER
•268.8
246.0
All
i
farm
411,160
529,480
556,920
171,850
80,560
78,690
89,140
Feed
products
377,710
434,510
427,290
C
_
—
513,200
516,430
Cotton
228,300
74,100
87,700
=
37,600
9,900
4,100
15,400
236,100
87,930
85,340
111,800
97,830
89,440
127,200
273,700
352,320
189,375
215,300
S.
57,290
36,430
38,660
278,294
165,350
213,760
225.295
19
335,584
201,780
252,420
257,095
1,624,600
674,635
832,480
905,890
gpj,.
^
<
DEPT
*
19
266,740
126,890
121,450
136,340
iq
1,423,184
630,990
733,610
764,385
1,689,924
757,880
855,060
900,725
19
OF
.
qc*.
110.4
111.1
Oct'
96.1
98.1
96.5
106.6
104.2
♦104.8
104.1
108.5
89.9
*92.6
89.4
108.3
foods_I_IIIIIIIII Oct.
114.4
114.6
114.7
112.6
_
110.2
*110.7
—
^
figure.
farm
and
^Includes 624,000 barrels
annual
of
capacity of 117,547,470 tons
259
295
276
222
230
197
and hay
251
218
198
227
425
436
311
269
266
207
253
214
216
270
287
268
280
307
280
267
318
299
376
261
254
286
223
213
208
$275,000,000 $275,000,000
$275,000,000
273,205,827
272,669,407
263,185,643
63'269
62'943
39,217
—$273,269,096
$272,732,350
$263,224,860
Oil-bearing
crops
and
—
—
—
products
animals
Meat
products
Poultry and eggs
foreign
as
of
crude
Jan.
U.
S.
GOVT.
312
—
—As
of
STATUTORY DEBT LIMITATION
August 31 (000's omitted):
""" ""'r " ""
any"
Total
public debt_2
gross
obligations
Guaranteed
not
owned by the
Treasury
IIIIIIIIIIII Oct.
—III
than
259
31,800
19
100):
Processed
commodities other
—
•
—_————,
Livestock
212,950
1Q
——I—gpt
U.
products
foods
INDEX
100—As
Truck crops
136,020
apnr
—
—
=
Tobacco
458,270
Sept
SERIES
—
AGRICUL¬
426
grain
908,790
____
NEW
OF
1941
grain
1,080,640
____
PRICES,
FARMERS
DEPT.
237
Food
Sept. 19
transactions for account of members—
M
S.
Crops
1,043,980
—Sept. 19
An AH m
BY
1909-July,
Unadjusted—
——IIsept!
—
n
U.
—
Dairy
sales
new
22.2
50.0
payments
TURE—August,
of July 15:
floor—
——
LABOR—(1947-49
on
49.5
23.9
Fruit
Commodity Group—
All commodities
Revised
and
transfer
75.8
*52.2
in¬
nonagricultural income
PRICES
5,816,880
-Sept. 19
initiated
Total sales
SBased
social
income
Personal interest income and
5,626,080
4,724,420
Sept. 19
purchases
WHOLESALE
276,640
Total
_
rales
256,750
Sept. 19
sales
rtfo 1
for
—
labor
Total
—Sept. 19
purchases
Total r/MI Yir?_lr\+round-lot
363,740
Sept. 19
transactions
sales
273,210
floor—
sales
Other
contributions
*89.8
33.7
industries
180.3
176.7
90.9
industries
♦195.6
24.1
producing
•199.5
197.3
total
disbursement
industries
Sept. 19
oh the
initiated
Total sales
All
Other
Sept. 19
;
:_
Short
$266.3
201.2
52.5
salary receipts,
employee
Sept. 19
sales
Meats
173~400
which registered—
sales
Farm
1891600
MEM¬
purchases
Other
24L900
Sept. 19
sales
Short
l~46r,830
AND SPECIALISTS:
sales
Other
•$286.3
COMMERCE)—Month
surance
Sept. 19
transactions
Total
Less
TRANSACTIONS
sales
Total
189,600
Service
OF
income
Distributing
YORK
j
of specialists in stocks in
purchases
Short
$28,978,000
(SHARES):
Transactions
Other
241,900
Sept. 19
Other
*$30,125,000
STATES
sales—
TRANSACTIONS
Short
$30,120,000
$288.1
____
UNITED
billions):
(in
personal
Proprietors
ON
SALES
BERS, EXCEPT ODD-LOT DEALERS
Total
595,082
146,830
July
Commodity
$24,376,660
Sept. 26
.
STOCK
sales
ROUND-LOT
Total
564,132
$22,136,838
Sept. 26
sales
Total
831,440
$31,222,876
of
Total
IN THE
Government
sales
Other
523,517
$20,078,962
Sept. 26
sales
shares
Other
(000's omitted).
31
28,379
—
OF
July
PERSONAL INCOME
purchases by dealers—
Short
Total
$31,188,227
Sept. 26
ACCOUNT
Total
$29,531,886
dealers—
EXCHANGE AND ROUND-LOT
Total
$37,936,203
288
—:
shares—Total
ROUND-LOT
FOR
$25,418,527
of
689,120
18,578
sales
sales
Round-lot
678,243
Sept. 2d
sales
Other
976,867
Sept. 26
sales
cf
Short
623,419
.-—Sept. 26
—
value
Round-lot
24,083
Sept. 26
Customers'
Customers*
23,919
—————Sept. 26
__—Sept. 26
sales
short
34,976
Sept. 26
short
Dollar
—As
21,815
Sept. 26
i—
Customers'
values
dividends
MONEY IN CIRCULATION—TREASURY DEPT.
Sept. 26
Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales
of
payments
Total
—
value
Number
:
STOCK
Y.
'
Customers'
TO
LIFE
payments
Surrender
Policy
COMMISSION:
purchases)
OF
July:
endowments
Annuity
STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODD-
Odd-lot
Matured
Disability
INDEX—
100
~
of
109.27
period.—
of
benefits
PAYMENTS
INSTITUTE
—
INSURANCE—Month
——Oct.
—Oct.
———-Oct.
:
———
INSURANCE—BENEFIT
POLICYHOLDERS
,
Orders received; (tons)—.—_I_„_____
*
goods
All
'
j
_
3.38
3.58
_
_
Hourly earnings—
3.54
3.59
3.49
Oct. 13
OF
$361,977,000 *$383,861,000
Durable
All
corporate
DEPT.
S.
August:
Weekly earnings—
AVERAGES:
Government Bonds
111.9
107.4
95.08
Oct. 13
Group
107.6
107.6
Oct. 13
Group
108.1
115-7
and
103.47
AVERAGE
119.0
107.4
115.8
operation
Reading
13.600c
111.81
PAINT
105.0
123.7
*
108.88
1949
118.2
106.4
127.0
97.94
,
oil
112.6
98.41
•
___■
fuel
123.8
106.9
123.9
electricity
fuels
112.7
98.88
OIL,
114.6
105.1
Oct. 13
(tons)
113.1
117.8
121.5
Oct. 13
-.Production
118.7
112.3
118.0
121.8
Baa
NATIONAL
118.2
114.4
care
105.52
MOODY'S
111.0
.
Medical
102.96
Industrials
108.3
116.6
Personal
103.80
Baa
119.4
14.800c
106.21
Railroad Group
Public Utilities
112.0
15.000c
109.42
S.
117.5
114.1
129.7
106,74
U.
^___
119.1
130.6
109.79
Average
fish
and
116.6
119.5
products
Transportation
104.31
■
bakery
114.3
113.8
113.8
104.4
Oct. 13
i
and
114.7
114.1
114.1
home
at
104.3
Oct. 13
,
August:
109.1
Other
.
BOND
$72,765
Apparel
A
MOODY'S
►$77,497
-
Household
121.500c
at—
at
Utilities
20,127
and
Gas
34.500c
Oct.
Aa
Industrials
100
9,890
*21,572
products
24.200c
;Oct.
i.—____:
at
corporate.
Railroad
=
*10,400
22,054
Housefurnishings
Aaa
'Public
INDEX—1947-49
L
Solid
Government Bonds
Average
$42,748
July
Rent
MOODY'S BOND PRICES DAILY AVERAGES:
U. S.
►$45,525
COM¬
of
Housing
QUOTATIONS):
—1
York)
Lead
OF
Month
—
Dairy
147
copper—
(New
69,916,114
324,708,568
Other
reiinery at
Export refinery at_
tin
69,097,923
461,093,283
115.0
of
Cereals
7,697,880
Oct.
Domestic
Straits
8,307,309
Oct.
J.
$394,624,682
Fruits
lb.)—...
(E.
66,923,436
$530,191,206
$78,144
PRICE
Meats,
(per gross ton)
PRICES
DEPT.
—
SERIES
items
&
(per gross ton)—
(per
13,489,270
87,349,928
10,420
Food
COMPOSITE PRICES:
steel
34,059,337
15,517,964
dollars):
_____!
Month
All
Oct.
Oct.
Pig iron
of
CONSUMER
RESERVE
INC
Finished
NEW
Food
AND
33,436,622
$45,670
INVENTORIES
9,109,000
3
100
(in 000 kwh.)
(COMMERCIAL
79,183,176
52,961,261
381,496,084
City
Total
Oct.
=
58,800,352
38,704,044
York
Retail
MINES):
(tons)——
SALES
City
New
Wholesale
43,800,000
(tons).
AVERAGE
States..
Manufacturing
EDISON ELECTRIC INSTITUTE:
FAILURES
United
York
(millions
93,093,000
8
Oct.
SYSTEM—1947-49
Electric output
;
MERCE
204,680,000
123,859,000
Oct.
(tons)
DEPARTMENT
191,972,000
85,840,000
—Oct.
BUREAU
-Pennsylvania anthracite
Beehive
258,724,000
8
:_
:
(U.
84,188,000
Oct.
municipal
OUTPUT
8
i
Federal
29,171,991
124,191,865
$420,200,128
Mountain
Pacific
BUSINESS
8
Oct.
;
Public construction
99,127,711
59,936,559
ENGINEERING
—
Oct.
construction
$19,708,500
115,517,012
54,617,000
construction
S.
"Private
$35,440,904
11,743,728
87,422,481
Central
cars)—Oct.
of
$18,057,583
81,114,403
50,434,647
29,246,394
;
Central
West
Total
(no.
$137,334,000
CITIES—Month
Central
51,912,000
cars)—
CONSTRUCTION
$154,106,000
*
&
Atlantic
37,260,000
NEWS-RECORD:
Total
East
119,793,000
INC.—215
DUN
—
Atlantic
South
Oct.
freight received from connections
ENGINEERING
Middle
RAILROADS:
Revenue
CIVIL
142,850,000
$148,135,000
96,190,676
VALUATION
England
127,052,000
_
OF
142,484,000
Ago
August:
South
——
.
of
Year
Month
45,990^216
PERMIT
BRADSTREET,
New
2,595,000
10,312,000
Oct.
—
2,553,000
Oct.
(bbls.)—;
(bbls.)
output
oil output
ASSOCIATION
6,486,450
116,893,000
Oct.
(bbls.)
Distillate
6,442,700
Oct.
(bbls.)
average
(bbls.)
of that date:
Previous
FEDERAL RESERVE SYSTEM—Month
July
BUILDING
__Oct.
_
are as
OF
AMERICAN PETROLEUM INSTITUTE:
Crude
either for the
are
Month
§94.4
Oct. 18
(net tons)
of quotations,
cases
Latest '
to—
ingots and castings
in
or,
Year
Oct. 18
.
Dates shown in first column
that date,
on
production and other figures for the
cover
runs
1, 1953
1953
26
figure revised to 635 ,000 barrels).
against the Jan. 1, 1952 basis of 108 ,587,670 tons.
(Sept.
as
Tl^giuonsPUW1Cdebtand
DCgdaUt^rstCn?riebPtU^ldat„!™:
Grand
Balance
under
total
face
outstanding
amount of
above
580,797
584,029
632,618
$272,688,299
$272,148,321
$262,592,241
2,311,700
2,851,678
12,407,758
obligations, issuable
authority_T—
^
The Commercial and Financial Chronicle
m
The Public and the Oil
of
malefactor
great
Neither did I come
little wealth.
Jiere to belabor points which are
<discussed much more adequately
journals. I simply
that no satis¬
trade
the
*n
do.
to
Some Advice on
What
used that illustration
is
or
sibly
Publicity Policy
with
wrong
man's
a
been found stating what he wants and then
with the normal ethical and de¬
have both con¬
factory method has yet
toy which we can
servation and indiscriminate com¬
cent
limitations doing
his best to
get it? Isn't that what you do in
petition, and that we shall be sub¬
a
meeting like this; determine
ject to a great deal of suspicion
what objectives you all have in
until that point is generally un¬
common so
that your strength as
derstood, because that is the kind
an
organization can be enrolled
of material which is front page
toward reaching them?
In many
to me that the
should be telling the
public are the facts connected
with the matters on which it has
tiews.
It
things
we
seems
possibly too many to suit
find that these objectives
cases,
you, you
to
counter
run
of
those
others
whose interests must be taken into
•already shown some interest. In
account
or
who
have
enough
determining what those matters
strength to assert their right of
ore we have only to look at the
Now isn't that just a normal
items which become front page way.
news.
Questions of adequate sup¬ process? How else would ,you do
it in an industry as complex as
ply, of imports, or petroleum as a
ours
and so closely tied in with
factor in international tension, of
the interests of society? The only
sensational technological develop¬
mistake I think we commit then is
ments, all have been selected by
to make the childish assumption
editors
pewspaper
as
matters of
Even more
that the other party in seeking his
own best interests is doing a dirty
prosaic items such as capital in¬
vestment have occasionally been trick, that he ought to set aside
every activity in his own interest
V$iven some play.
and work exclusively for ours. If
we don't make that silly mistake,
Eschew Guilt Complex
then the whole process becomes
In dealing with news items of
the healthy one of working to¬
l&is sort we do not need to put ward the best
integration of all
on a truculent sneer or go around
the interests and of establishing
tfcnocking
chips
off
peoples' the best modus operandi. It can
shoulders, but we certainly do not be
given all of the publicity pos¬
*»eed to be on the defensive. When
.great general interest.
former President
of the United
sible and need
as
washing
be regarded
never
our
dirty
linen
with
in
have
industry
an
health and energy.
of
even
difficult.
Irresponsible charges or unexpect¬ is:
ed accusations. Of course, there is
internally generated capital,
means
you made your
"That
customers
joothing
contribute
in this. It happens to ital." Is
there
new
•everyone.
dynamic
a
of
industry
source
a
your
more
cap¬
legitimate
of funds than that of volun¬
Probably
behind
the
attitude
anticipate every mis¬ which such comments reveal is an
conception and thereby avoid the unanalyzed
resentment
toward
/ necessity of answering questions what seems a
conspicuous pros¬
which more often than not are
perity. From its early days it cre¬
based on a desire to clear up mis- ated some colossal
fortunes
The industry
In
less.
some
has been called law¬
respects it has been
that, but the kind of law it has
which would
tested has been that
Neither can we the
process
hasn't
seemingly
permeate the industry with stopped yet. It has created
many
economic
information
that
the accidental fortunes where
good
newest man on the service station
luck has played a more important
strive or the newest truck driver
role than
Understandings.
co
the
East
Near
controversy
integrity
so
that
efficiency
or
contribution
the public
are
bound
may
capture people's imagination.
themselves, that there is They may even cause them to ad¬
mire
and
respect
an
industry,
nothing wrong in this but that it
is the natural process of working which is doubtful, but they are
toward a practical program. I be¬ also apt to arouse envy and the
lieve we can have it understood suspicion of greed on which op¬
these
are
actions of
statements
of
self-in¬
the proper and natural
a
man
seeking what he
thinks is coming to him and that
auch statements do not automatic¬
ally characterize him
aocial
"special
as
an
interest"
antior
it,
that
escapable.
profound satis¬
a
a
portunistic
talize.
politicians
may
capi¬
is
development
/ /.
in¬
*
But, when such satisfactory as¬
surances have been given, the in¬
lems
international
and
tensions
that proc¬
Ask how those problems can
are
to accompany
sure
ess.
politically inspired law suits.
Conclusions
be avoided.
circulation to the members of the
The ultimate effective¬
industry.
editorials
these
of
ness
will
Drake
or
didn't
be
repelled the Armada
or
the
at
time
much
see
It took the novelists
Hollywood to do that.
We
glamor in it.
and
don't hear any cheers as we cross
which that glory was
So with
our
based.
Each of
work.
our
tasks has much in it that is hum¬
drum
and
to
seems
that makes
a
I
While
On
front
every
go
we
as
interest to
and editors by their
us
selection have indicated that they
are
less interesting to others.
no
contain little
good story for pub¬
Current
Two
Problems
the
to day
problems of the petroleum indus¬
try, two stand out above the rest
deserving not only our attention
but our best thought and study
for many years to come.
These
are
(1) the gigantic task of ex¬
pansion as the fact that this is a
petroleum age becomes
more
and
apparent, and (2) the rela¬
more
healthy competitive-
Third, the social and interna¬
problems are unavoidable
insuperable. They will ac¬
but not
day
many
a
industry.
tional
of
Petroleum Industry
Among
evidence of
tually be more readily solved with
a
wider understanding.
we cannot hope to havesgenerally more aware of
our
internal processes and func¬
tions than we ourselves are of
Fourth,
people
industries.
other
toward
We
can
this industry is
in extremely com¬
ethical hands. I be¬
that such an opinion is mer¬
petent
lieve
tions with government
and
and society ited.
of reasons
It behooves the industry to keepare too often strained.
its skirts immaculately clean, toThe problems incident to the preserve the high degree of com¬
which,
for
variety
a
first are more commonly recog¬
nized, and being of a more tan¬
gible nature, promise to be more
readily solved. They include the
ever-widening
exploration, new
manufacturing
techniques,
new
and
economical
more
methods
of
petition which has characterized if.
for 40 years, to live up scrupu¬
lously to the responsibilities which
its
size.. and
importance
have
forced upon
isfied
right
these
to
it. Then, having sat¬
conditions, it has
look
for
understanding:
from
distribution, and, in
and
most
ciety which it serves.
many cases,
financial
problems.
acute
fair
treatment
These, however, as baffling and
challenging as they may appear
to
be,
bread
have
been
Production, with its namic industry.
tin
great
the
diet
butter
and
lic attention.
It is
standard
a
dy¬
of
industry
a jus¬
in its 90-year his¬
an
gambles, yes;
refining, with its mammoth plants
whose members have taken
and
tory.
hats
and
enormous
investment,
yes;
tifiable
pride
The
even
ers
second
and
seeming
the
front page troubles
direct
result
of
are
order.
The
same
size
and
importance
which have developed such pride
and enthusiasm within the indus¬
try
are
portance
and
to have
certain
ing effect
as
This
well.
implies
a
a
sober¬
very
most
im¬
serious
awful
responsibility.
Any
interruption
in
the flow of petroleum products to
long
our
continued
modern
industrial
society is
unthinkable.
The government
having built
up
industry a stupendous military machine
willingly and deliberately over¬ constantly dependent for its effec¬
building its refining capacity by tiveness upon adequate supplies
800,000 barrel-days in the inter¬ of
petroleum,
and the public,
est of national defense and in re¬ whose needs
are
less dramatic,
sponse
Tell
to
a
an
government
request.
perhaps,
but
no
less
essential,
problems, each have a stake in this indus¬
In looking back at my remarks which we shall meet and
solve, try which we must acknowledge.
so far, I
may have dwelt unduly are the alternative to putting mil¬ That stake will prompt them to
on some of our internal
of
taxpayers'
dollars
in keep the petroleum industry un¬
problems lions
and differences.
constant
You may there¬ moth-balls. Call their attention to der
scrutiny,
which
fore wonder how I can relate them the sense of responsibility which would be unnecessary
and un¬
to a public relations program.
I has been so ingrained that we called for in a less essential and
them
that
those
work:
having them believe that:
service to
to assert
if*
have
can
*
As I
to
there is that petroleum so far out¬
thousands of others by your own
get the impression, properly
ranks in dollar volume the other
free
selection
have
found
for
enough, that in pursuing our ef¬
minerals that this fact of acci¬
yourselves an economically useful
forts to keep a business healthy
dental
wealth is commonly ig¬
niche
in
a
distribution
system
and prosperous we are at the same
nored.
I was interested to read
that
for
time building the best assurance
tonnage
and
uninter¬
of continuous dependable service. recently in the "Ethyl News," as rupted continuity is not matched
We can have them understand that you probably were, that the orig¬ by any other industry either in
inal price of the Louisiana Pur¬
this country or
in an industry of this size .and im¬
anywhere else in
chase is now being returned every
the world.
Think
about it and
portance problems will continu¬
three
days from the: petroleum then
ously arise which involve sharply
go
out and tell somebody
alone
which is
recovered
from about it. You
differing interests which must be
might point out at
that territory. Facts such as this
the same time that many of our
reconciled, that in their solution,
that
You
performing its task.
tremendous
Its
will
-elements of self-interest
and
society. That has been keting;
or
largely in the production end of each of
problems connected with import
quotas. But I think we can es¬
tablish an atmosphere of candor
terest
see
World
problem, that of
transportation, with its tank¬
pipe lines; but not mar¬ maintaining good relations with
and
the
best
possible
actually while the part society
us plays is small, the total
working
relationship
with
the
the business and it has always
is one of the most surprising mir¬ government, will call for much
been characteristic of extractive
acles of our modern society. Just more astuteness and for industrial
industries.
The only difference
dwell on the fact that you and statesmanship
of
the
highest
business
explain all the issues involved
farther
have no intention of
for¬ listing the innumerable problems
ward with this new type of de¬
of which I have given a few il¬
our
industrial
society has been partmentalized and interdepend¬
lustrations, I should like to distilB
due in no small part to the fact ent
society, we are creating most a few conclusions from these re¬
that it is imbued with an indom¬ acute social and economic
prob¬ marks:
itable spirt that the show must lems.
We can not escape them.
First, the type of story which
go
on.
When
petty restraints The
proving grounds for new has general public interest and
threatened that philosophy some¬
ideas, new experiments and new therefore real news value is not
thing had to give and it was very legislation must be in those in¬
the kind which can be told in paidl
seldom the oil industry.
dustries
which
spearhead
that
advertising space and signed and
great advance.
The oil industry underwritten by an entire indus¬
No Wallowing in Self-Pity
by its very size, by its unbelievtry.
That is the story that must be a b 1 y
diversified
composition,
Second, the interests of differ¬
told in all its ramifications. Many ranging from one man businesses
ent members of this industry are
of the trade journals have ham¬ to the world's largest corporation,
so divergent that they are bound
mered away at this theme. It is no by the fact that it indispensable
to produce conflicts. . Instead of
reflection upon them, however, to to society is certain to be at the
concealing them or being embar¬
point out that their penetrating very forefront of this movement. rassed
by them we should point
Those matters are of burning
editorials are generally limited in
out that they are the most positiveit in
restrain
can't
and
They wiU
require * factual
obscure industry.
more
problems. You have faction in being indentified with
Mil probably heard of the parents an industry which through sup¬ dustry has a right to a freedom of
who had a healthy, active little plying lubricants and power and operation which will enable it to
devil for a son. Blind to the fact heat has remade our world. Point perform without petty and ham¬
that in the course of nature those out that this dramatic develop- stringing restraints.
The picture will De complicated
qualities were desirable, they con¬ met could not help but create
stantly bemoaned the fact that he problems new to our society and by the enlarged world-wide activ¬
our
lawmakers.
Instead
of ities and
ate them out of house and home, to
by the growing volume
outgrew his clothes and wore out looking back with any sense of of imports. It may be aggravated
his shoes and stockings. One day embarrassment or need for apol¬
by dependence upon government
he died, and the neighbors, having ogy, point out that they haven't for hard-to-get materials. And the
taken
the parents seriously, all seen anything yet. As this giant
efficiency of the industry is sure
came
in and congratulated them continues to mechanize and in¬ to be reduced when required
to
on
his death.
So it is with us. dustrialize the world new prob¬ defend itself against costly and
individual, every com¬ tary transactions? The more that
any goal line or .pass any review¬
pany, every industry occasionally the American economy is powered
ing stand.
Actually that little
finds
itself
plunged
into some from that source, the less reliance
crowded hour of glory of those
situation where through basic mis¬ we shall find,
being placed upon marches up Broadway or Pennsyl¬
conception,
or
through current subsidies, special handouts, tax vania Avenue are a
pitifully in¬
misunderstanding, its good health favoritism,
political
preference adequate pay for the long, ardu¬
is impaired and its effectiveness and five
percenters.
ous,
unglamorous
service upon
seriously threatened.
and
Industry Has Remade the
Oil
without those
Every
in
our¬
go
We can't pos¬
referring to the tide- public.
measured by the extent to which
said in a radio ad¬
You have all heard, as I have, we take them to heart and mul¬
dress "If that isn't stealing from
relationships
countless observations which car¬ tiply them in our
"the people, then
I don't know
ried with them the inference of outside the industry. Failing to do
what iSj" then we have to take
that we tend actually to defeat
They go about like this:
'fum at his word and conclude that guilt.
purpose
by wallowing in
"The oil industry is notoriously their
fhe doesn't know what is, for it is
able to look out for
itself, in self-pity.
#iot stealing from the people.
other words, it is pretty much a
As you and I go about our daily
I said a minute ago that we did
below-the-belt
industry." That tasks there seems to be little that
4ftot need to be on the defensive.
one was actually made in Wash¬
is glamorous or that can kindle
38y that I really mean that we do
ington in 1942 and I can cite our enthusiasm. Just bear in mind
sot have to accept any inference
chapter and verse on it. Another that it is always that way. The
of guilt.
We obviously must be
one, referring "to the unique rec¬ boys who sailed under Hawkins
on the defensive when answering
ord of
can
it
about
Thursday, October 15, 195$
rather than oral assurances.
issue,
We
think
even
in
states,
>ands
don't
selves.
which are bound to be
those
associated
Indostiy
so
out that they
First I would point
are
what
is
that
think
don't
Continued from page 10
a
...
(1456)
pOR Wpp
the
so¬
Volume 178
Number 5264... The Commercial and
Financial Chronicle
(1457)
Continued
from first
page
P™duc«on will
9*™
«
a» depression if we handling of our
trusts, had asabout the same time, with ^re- discretion in the all exercise due largest of the four eoual to $11—
the
of
672 287
56t
suiting reduction in overtime pay affairs for these next few months f ghare^on'the
^
H„*«««AO0 AnlLJ. mmmJ
outstays
iLa
UUSineSS UUtlOOk Snd the
Tf even years. That will conf "Jhe COm,ng test of man"
assumed™5*'""68 ^ haVe agement-
.
Coming Test of Management
.
tion
is
wen
do
ital
the
we
but
last.
But how many
all know who had
cap-
no
foresight and shortly
neither?
How many others
had
...
The disturbing thing about all
this
is
that
unless
rather than less,
VA
homes,
more
be sold with
can
to
determine
doxical
and
to
the
It
is
almost
borrowers
we
I
i
p
UNITED
FUNDS
Inc
reported
-
cal
observation
other
very
lacy,
the
to
demolish
an-
current
fal-
common
laborer
not
is
a
com-
jnodity but the labor he provides
nothing else but the product of
is
111s
skill,
his
and
experience
his
It is the ^ning he has to
energy.
sell
and
fair
a
ne
entitled
is
for
price
it
as
to
get
Management
manages a
busiin the interests of
capital, of
ness
labor
and
of
itself.
Its
ability
by its experience
during periods of prosperity
but rather by its ability to avert
is
not
determined
avoid
or
disaster
struct and
aster
ultimate
is
of
is
The
qui
1
formula
for
res" three
enough
Cameron K. Reed, President,
income said that total assets of the group
hands
lower
of
middle
not only affect the mortgage business
but could have still more
far-reaching effects.
The
saturation
debt.
sumer
point
for
home
ance
tal
the
or
it in
is
confidence
Credit,
before 1957. More and
tutions
sales
more
another.
The
could
"used
become
a
visualize
motion.
time but
will
that such would prove
even if there were,
the managers of the thrift insti-
Savings earmarked almost automatically in savings and loan in-
set
The net increase in share capital
f°r the savings and loan associations of the United States in July
business has
no
ever
sue-
indefinitely and without
encountering some obstacle of an
unexpected
ordinarily
nature
which
its
reverse
is the noint at which
the
from
men
learn
the
whether
turn
that
start
it
the
automobile
started
The
and
or
short-lived
as
companies
which
during the past 50
century^
2
here
years,
almn«rf
are
Durine the last half
726^aXmobile
started^
mnieswere
and
whether
com
million
would
in
find
the
which
themselves
middle
would
of
against
as
pay
the
debts
would be extremely heavy. In this
is
mutual
than
greater
the
all
months of 1953
seven
billion
was $2,090
against $1,707 billion in
as
60%
of
the
The
time
deposits
The
comfortable
between
being
lending
distorted
relationship
and
in
saving
still
is
another
particular. The speculative aspects
of
the
most
builders' activity were
non-existent
Today they
construction
difficult
very
to
high
until
loans
are
obtain
but
Still
not
another
and
;
F
many
4
distortion
which
by
halt
a
constitutes
dangers
their
all
good
a
only
of
This situation^
to
and
command
because
rates
Wgh risk
itself has brought
al-
recently
conspicuous
are
^
de-
is
one
must
is
New
still
starts
are
of
on
the
entire
slowing
going
figure
rati
the
which
total —were
lowest
Sarts
level
are
in
13
95% of
at
months.
mobile purchases, by comparison
with 2 billion of instalment debt
at the end of World War II.
the
Per-
unless
possible
is
Our
economic
frXlandanimTortant
culties from cither
so
u
behooves
or
him
both
to
be
one-half
July
of
requests
proposed
oXaX
for
homes
VA
appraisals
covered
20,752 units, which is 25%
-June. * —
only
below
-
•
a**
w
SALES
.
Hint,
tne
JJ*
'y
^^
quarter, sales.
M,1 Wthl "ponSLg
^
«,*
nirioH
nf
corresponding
1952
that
the
wants
morrow at
the
of
more
today
same
be
limited
--—better
and
and
to-
time by going
the
than-even
slowdown and the avoidance
breakdown. There is enough
intelligence in Washington at the
0ut
lncurred lf an equal amount of intelligence
into debt, it is only a question of
time before credit extension will
chances
that-the
are
over-
Estimated CarloadillgS for Final Quarter Or 1953
As
has
pointed
been
out by
a
In
the
following
tabulation
we«
Suddenly,
and
without
any
tangible
1952.
—0.5
ft
—0.9
Southeast
Trans-Missouri-
f
f
Kansas
—1.0
evidence Northwest
|
—2.0
Southwest
certainly New England
}
—2.0
that the near-term outlook has Central Western
worsened, there has been a strong Pacific Northwest
—3.5
—3.9
*
f
4
♦
tendency to revise estimates of Midwest
—5.4
probable last quarter earnings of
the railroads, collectively and inThe heavy industrial section or
dividually, downward.
the East is considered to have tne*
With this background, the re- best relative prospects in the cur.
#
port released by the National As- rent.garter,'with thelargest per¬
sociation of Shippers Advisory
Boards last week estimating car- Great Lakes Region For the
loadings of the nation's railroads part this is predicated on anticl
for the last quarter of 1953 injects
P|^heavierload.ngsof< vehicfe
refreshing note of sanity and un- parts,
in the Aiiegneny itegioit
emotionalism. For the country as the largest gain is looked for in.
a
whole the Association has estim- coal to™ag«
ated that radroad car loadings for btates Uoard
a
side
whenTf-
^ 'T t0 bring
assumption
ply
dwelling units, about
of the total for
May.
against
H
mortgage investments the period running about at the
nright be difficult to fulfill. To a level of the last three months of
a
16,762
new
RECORD
for
a
guaranteed, are being planned
at a
greatly reduced rate. FHA
applications in July were for only
or
Fund
ings mflow to the point where road traffic in the final quarter of
advance
commitments
already the current year, with earnings for
made
of
0n
mortgage loans, insured
assets*
—
of
today's
high wages, high employment and
extensive
overtime
pay
would
continue
indefinitely. In a nation which has attempted to sup-
Future
Fund's
compared with*
.
ma-
M?u °f thlS 1ebt
the
nirk un
pick up.
as
serio"s indeed. The number of our leading industrial- have listed the various regions ia
,rf P.osslbihty is the problem of jsfs jn recent weeks fear of a re- a descending order of anticipated-,
obt£T"g enough mortgage loans cession will feed on itself. There last quarter performance based
of satlsfactory character to absorb has been so much talk of a down- on estimates of the individual,
savings earmarked for that pur- trend in business that the fact of Advisory Boards,
pose'.
a c°r°llary to that prob- an existing recession, or a recesEstd. change
\em tbere
ihe. Problem of find- sion in the immediate future is
RegionLast Quar. i»sa>
ihg alternative investments which now fairly widely accepted. Not Great Lakes
+4.0%;
wlU Produce enough income to too long ago most railroad man- Allegheny
+2.7
ft
suPP°rt the Present interest divi- agement and virtually all railroad Atlantic States
+2.5
■> ■;
dend policy' The second possi- security analysts were forecasting Ohio Valley
+1.7
*
bility is the eduction in the sav- a well sustained volume of rail- Pacific Coast
+1.5
3
chinery seldom grinds to a complete halt, but it can slow down
boldTlontue^n" ^
SSeM permits
Sermite
ward
ward
are
started
$31 010 685
™ou}d be
for
fianced homes
Mu—
assets of $27 655 989 on same date
United Income Fund shares, the period of 1952.
economy
fairly rapid
but
than
caucus
July was 96,000,
Here we have the grinding of ficulties of any sort portend.
down 7,000 from June and 15,400 the
gears which the manager must
This is no counsel of despair.
below April.
This is 6% below understand and against which he Our
present
Administration
is
last years level, and privately fi- must make whatever
preparation committed to the accomplishment
the
a
$6,068,987,
* ®
„
about
be
$5^60 billion, Of this
building boom
'the
1953
j
Ine~.
rep0rt that as o*
Inc>
waf.n'started"i^DeceiXr. W1952, "Vo"thtlepTembe'r
in the
to
forward at
qc+
were
Co
Managers of Thrift Institutions
Must Be on Alert
The managers of the thrift institutions must prepare themselves
impact
1952.
*
down.
fund
tual
&
Loomis-Sayles
of
against three possibilities, which
veloping
up
to
ft,*
^ay become probabilities at any
tlme and may converge upon each
other to such an extent tnat their
All of the preliminary discus- tdose
sion
Accumulative
^ .oTn'atociations^^Tout ™
certain extent the first two possithis point is by way clearly anticipated in order to be biiities might offset each other,
of
preparation
for
some
very three-quarters
averted. The na- The third possibility is the possiplain language addressed to a "p11 1S overproduced in automo- biiity 0f
heavy withdrawals to
group of highly intelligent,
ab- biles and other consumer dur- pay debts or to cover
living exsolutely honorable and currently ables.
This overproduction has penses as a result of production
successful businessmen who have been made possible by very genslowdowns and a decrease in takebeen traveling a one-way street er°us
credit terms, of which a home pay
1
for so long that they may have
large segment of our population
The finance industry has been
been led to the conclusion that has taken adventage to the point
characterized as the greatest midil will last forever. It won't.
No where consumer debt now stands dleman
industry the world has
such street ever has been con- at substantially over $27 billion, ever
known.
The thrift institustructed, nor will it ever be con- whereas at the end of World War tjons of the country are an instructed!
" it was
part of
nearly $21 billion is instalment thic middleman indnstrv and the
The Present Economic Outlook
debt
largely representing auto- middleman ran be beset bv diffi
.
SAYLES
T oomts
managers
of Wellmgto»
the September
the third
the first
month period, as compared with
ntlns of :1953 were reported by
a year ago. For the three months- A. _J. Wilkins, Vice-President.
* v
ended Sept. 30, sales were $2,001,Gross sales in the nine-monm
926, against $1,847,532 a year ear- Periocl amounted to
lier. The nine-month total sales —largest for any simm r P
savins
last
fhlo i?9hr! !Xf^10n- °!
these, exactly 21 are in business
today.
$144
month
same
nrosneTd
pvrpntfnn nf tract'developments
and
ntimewithout
the
result,
to
year and the increase for the first
million for the
we
can
history of most of
statistics
unbelievable
for
separate
around
hill
uo
has been the
we
boys
the business will be
as
That
management
business
back
would
course.
$155
was
had net assets of $2^96,037requal
to $4.04 a share on the shares outstanding Sept. 30.
Fund shares for
quarter and the nine- quarter and for
banks,
for
ceeded
com-
net assets of $13,629,570, equal to
$5.42 a share, against $13,836,168,
or $5.90 a share, a year earlier.
United Continental Fund sharres
CAf
United
Distortion Between Lending and
these,
a
a
shares showed the largest gain for
poll®'the
to
of
succeed
$12.41
$18,597,969, compared with $17,- against 725,686 on Oct. 1, 1952,
177,989 in the first nine months increase of about 17%.
to be of 1952. j
•
connection it is interesting to note
that today's total of consumer amounted
all
Given
business
any
or
How-
stitutions for placement in mort- commercial banks and is
gages continue to increase, al- 30% of all three combined,
capital, though at a slightly slower rate.
V
of
by 10,566,245 shares,
problem similar to, but not as
large as, today's "used car" mar-
order
in
$86,390,947 a year earlier, and
$97,796,029 at the start of the current year. The assets were repre-
k6t
any
$11,625,135,
assur-
the case—and
home"
is
Ualted
these statistics it might pared with 8,225,810 shares a year a
year
ag0.' Shares of Loomiapossible to adduce the simple previous.
Sayles Mutual Fund outstanding1
conclusion that the savings are
Sales of the four trusts were 0n Oct. 1, 1953, were 847,339, as*
is only about one-half of 1948
and there is no likelihood cf any
substantial
improvement
much
market
or
before
year
From
available to pay the debts.
ever, there is no definite
for
$60,929,646,
a
be
ownership is slowly approaching,
New family formation, at 600,00$,
it
$101,496,723, compared with
were
sented
something as possible; Courage
enough to undertake it; and Capiwhich
the
families
withdrawals
Business
to
and
The
starting
the
having incomes of
perbetween $3,000 and $7,500 per anhaps another million in transpornum, this is the same group which
tation. A slow-down here would owes about
65% of today's conterials
sell
-"construct^
imagination
and
upper
class
in
dis-
any
management
a
ma-
is
squarely
situation
resourceful.
Formula for Starting
making building
equipment and
income
are being made to those who already have a home and want to
recon-
unavoidable.
test
it
to
from
recover
which
Whether
and
million on-site workers, another
a
million
as
possible,
is
Home building employes nearly
share,
a
share, a year previous,
United Science Fund shares hadfc
that sales and net assets of the
fr>oth?
t
r°? Prospective home buyers ered by the responsible surveys four funds comprising the investA/r"
finding it difficult to make of the Michigan State University ment trust group reached new
^J.a"a^erPen^ in a short phrase, Jhe down payments on conven- Researcb Survey Center that, highs during the first nine months
is high priced
help which is em- tional mortgages.
while g0% of today>s disposable of 1953.
ploy ed
by capital. In turn, it employs labor. And as a parentheti-
$12.32
against
j
ifllltlOl FllltuS
?d1!
thp
are
FHA
or
II
nara
thpSo
that
assumo
with
compared
879^qual "to Tn.79°f a$18sh^,
salines"of'the °4uoVi'siSdiffictult
financing, total home indivXals
aM
vet
ha^e
^no canir^nd ainH,reSiHghHt 3bu»di"g Abound to decline More learned from Location gath-
tout
37
isi
estimating ma
"urth quarter of 1953 will be iron and ***"*•
0.1% below actual loadings for the
tban
last
and
interval a year ago. This is y_
* loadings will
that
also
paper
be
ut>
b0arSedhen3l principal^°commodity' moderately. The forecast of thL*
*°ouds In thf DasttheA^oca- Board is particularly interesting
Rr0°nU^Sas
tL whole p^ved to as for the country as a whole it is*
L Vas'
on
and
a"urat^ in its foJecasts
whLeTt has er^ed it has for
moirpart'l/red^in' shghUy'
the
the
underestimating
volume
estimated that the important iron
and steel category will decline.
The poorest outlook is for the
of Midwest Region,
addressed by the businessmen
of the country to the solution of
their own problems., Any problem properly analyzed is about
three-quarters answered just as
any danger clearly anticipated is
about three-quarters averted —
and this statement was made
earlier in the discussion.
fjc to be lower.
spearheaded by
try vary considerably. Of the 13
regional boards, there are five that
is
We
cannot
recession.
It
traffic
As
coun-
sand and stone.
declines
in
The other two He¬
gions at the bottom of the list
also base their estimates to a conanticipate a year-to-year gain in siderable degree to a contraction
carloadings during the final quar- in grain and other farm crops, ag~
fer and eight that expect the traf- gravated in the Pacific Northwest
well escape a from
need
not
a
sizable
and logically, estimates loadings of grain, coal, and graved
for different sections of the
very
become
anticipated
u'suab
an
an
The extremes
estimate of
estimate of
a
a
run
4% rise to
decline of 5.4%.
by
a
potential decline in lumber
and forest products which weigh
particularly heavily in that area.
-
.V
38
(1453)
The Commercial and Financial Chronicle
...
Thursday, October 15, 1953
* INDICATES
Securities
Now
in
Registration
it Alabama-Tennessee Natural Gas Co.
Oct.
6
2,100 shares of common
stock
per share.
Proceeds—To
B. F. Grizzle, the selling stockholder.
Underwriter —
Scott, Horner & Mason, Inc., Lynchburg, Va.
(letter of notification)
(par $1).
Price—$11.75
(The
First
California
Co.,
(Hunter
Securities
Corp.)
(Lewis
Co.)
October 20
Beverly Hills, Cal.
Aug. 24 filed 100,000 shares of class A common stock.
Price—At par ($10 per share). Proceeds—To establish
and develop a cattle industry in Israel.
Underwriter—
Ontario
21
Ripley
Inc.,
Pro¬
received
October 23
Air Line
United
Gas
Mines, Ltd., Toronto, Canada
Sept. 28 filed 700,000 shares of common stock (par 20
(Offering
share
for
Nov. 16.
each
nine
Price—$7.50
shares
held;
per share.
Eastern
rate
rights
of
Securities
(Bids
to
common
American
new
expire
on
Water
Proceeds—For working
bank
Underwriter
—
C.
K.
loans
Pistell
and
&
York. Statement withdrawn.
(Bids
Government
on
Oct. 23.
Price—$24
For general corporate
purposes.
stock
Bonds
&
Co.)
&
per
share.
Proceeds—
Underwriter—None.
(par $1). Price—At market
be
&
to
.Preferred
(Monday)
(Bids
Gas
to
be
$10,000,000
without underwriting)
(Wednesday)
to
;
stockholders
mon
V
>
11 shares
held.
the basis of
on
Price
1
II
,
common
si
*
one
r
share for each
new
f
$28 per share. Proceeds — For J
Underwriters—Blunt Ellis & Simmons
working capital.
—
Swift, Henke & Co., both of Chicago, 111.
•
-
"
*
.
■
■
*'
•
.
Price—At
par
($1
expenses
and
working
,
per
share).
J
common
Proceeds—For
,
922
,
capital.
Office
—
She)-
;j
it Cuban American Minerals Corp., Washington, D.C.;3
6
(letter of
notification)
Price—At
For
par
6,000
certificates of
(in units of $50 each).
general corporate purposes.
Office
par¬
Pro-
"j
439
Wyatt Bldg., Washington, D. C.
Underwriter—James.T.
De Witt & Co., Inc., Washington, D. C.
/
—
—
Reagents, Inc., Miami, Fla.
(letter of notification) $30u,000 of 10-year de-»
Sept. 28
Price—At
par
tal. Office—1851 Delaware
»
writer—Atwill &
"
,
Parkway, Miami, Fla. Under-
Co., Miami, Fla.
be
$10,000,000
stock, to
be offered for subscription by stockholdes at
the
Bonds
invited)
17
to
be
of
rate
Bonds
$25,000,000
invited)
$5,400,000
$10.75 per share). Proceeds—To selling
Underwriter—Wm. J. Mericka & Co., Inc.,
exchange.
capital.
par
Office
stock
($50
—
offered
share).
per
to
present
cumu¬
stockholders.
Proceeds—For
working
Seventh Ave., Brockway, Pa.
Under¬
writer—None.
Picture
Productions, Inc.
(letter of notification)
stock
(par 10 cents).
Avenue,
New
300,000 shares
Price—$1
York.
per
share.
Underwriter
of
com¬
Proceeds
Office—246
—
common
A,
for
stock.
Gearhart &
each
four
shares
held.
Office—112
West
Elm
St.,
Syca¬
111. Underwriter—None.
of $1,000 and $500 each).
Office—208
Proceeds—For working capital.
18th
St., Rock Island,
Quail & Co., Davenport, Iowa.
111.
..
Underwriter-
Proceeds—To
tion.
reduce
Underwriters
bank
—
loans
and
for
To be determined
construc¬
new
by competitive
bidding. Probable bidders: The First Boston Corp.; Kid¬
der, Peabody & Co., Merrill Lynch, Pierce, Fenner &
Beane and White, Weld & Co.
(jointly); Kuhn, Loeb & «
Co. and Smith, Barney & Co.
(jointly); Blyth & Co., Inc.;, >
Lehman Brothers. Bids—Originally scheduled to be re¬
ceived up to 11 a.m. (EDT) on Sept..
17,.but on Sept. 16
the company announced bids will be received within 30 1
days from that date, bidders to be advised at least three
days in advance of new date.
...
Fairway Foods, Inc., St. Paul, Minn.
May 8 filed $1,600,000 first mortgage lien 4%% bonds
$40,000 annually from 1955 to 1994, inclusive.
Airlines, Inc.
due
stock
Sept.
1,
1957,
(par 50 cents).
and
Price—At 100% of principal amount.
struct
new
warehouse.
Proceeds—To
Underwriter—None.
con¬
,
400,000
Price—100% of
per
share
acquire five Martinliners
and
Office—Burbank, Calif. Underwriters—
Otis, Inc., New York; and McCoy & Willard,
Boston, Mass.
for
share). Proceeds—To construct
to mature
Proceeds—To
the spare parts.
per
it Dohrn Transfer Co., Rock Island, III.
Oct. 5 (letter of notification) $300,000 of first mortgage
5V2% serial sinking fund bonds.
Price—At par (in units
Alexander
Co., Newark, N. J.
series
($10
Duquesne Light Co.
Aug. 19 filed 100,000 shares of preferred stock (par $50).
it Brockway Glass Co., Inc.
9 (letter of notification) 5,500 shares of
5%
Oct.
preferred
share
new
par
(Thursday)
Cleveland, O.
lative
one
Price—At
telephone
Co
at
stockholder.
Sycamore, III.
•
(letter of notification) 25,695 shares of common
June 24
(Tuesday)
principal amount for certificates and 75 cents
offices
,
&
(in denominations of $1,000
each). Proceeds—To retire debts and for working capi-
$500,000
Equip. Trust Ctfs.
(Bids
shares of
all
Emerson
shares of common
(par $12.50) to be offered for subscription to com-
bentures.
Common
Erie RR
certificates,
to
r
232,520 shares
Transmission
California Central
Private Wires
.l
<
(letter of. notification) 543,615 shares of
Price—To be supplied by amendment.
Dade
Debentures
Aug. 24 filed $600,000 of 7% convertible equipment trust
Chicago
6
more,
Reid &
Cleveland
L.
^Consolidated Virginia Mining Co.
Oct.
(Tuesday)
Corp
invited)
December
Fifth
Pittsburgh
Underwriters—H.
.
ceeds
—For production of movies and TV stories.
San Francisco
share for eadh 20
new
Co.,r Inc., Cun¬
ningham, Gunn & Carey, Inc. and Livingston, Williams
& Co., Inc., all of Cleveland, Ohio.
Oct.
$7,500,000
invited)
one
Equitable Bldg., Denver, Colo. .Underwriter—E. I.
ley Co., Denver, Colo.
Monongahela Power Co
mon
Boston
,
DeKalb & Ogle Telephone Co.,
Burton
Philadelphia
12 at the rate of
drilling
Bonds
invited)
Corp., New York. \
expansion. Office—1545 East 18th St., Cleveland 14,
stock.
Light Co
be
Securities
Preferred
(Tuesday)
23
December 1
Sept. 24
New York
and to employees
it Cosmo Oil Co., Denver, Colo.
Oct. 7 (letter of notification) 300,000 shares of
$750,000
EST)
Employees
(Bids
Price—At
mar¬
Nov. ,13
on
(with an oversubscription privilege);! rights
will expire on Oct. 22. Price—$4.87 V2 per share. Proceeds
and
(Thursday)
Co.)
noon
to
(Bids
Oct. 7, with rights
expire
shares
198,500
common
Bingham-Herbrand
common
$5,625,000
$40,000,000
Casualty Co
November 25
Business—
Corp., Toledo, Ohio
/Sept. 28 (letter of notification)
$100,000 aggregate
ket value of
Allen
(Offering to stockholders,
(estimated
on
share for each
new
an
Price—To be supplied by amendment. Pro¬
record Oct.
Common
November 24
(par 10 cents).
expire
.Preferred
First Boston Corp.)
invited)
November
Underwriter—Rey¬
Offering—Postponed.
share for each 10 shares held
par),
Colton Chemical
ticipation.
Price—25 cents per share. Proceeds
—To renovate property and
operate mine and mill. Office
—Tungstonia, White Pine County, Nev. Underwriter—
None.
to
be
and
(Bids
supplied by
Sept. 29 filed 355,976 shares of common stock
(par $10)
being offered to common stockholders on the basis of one
10.
Underwriter—Union
stock
Worcester County Electric Co
Tennessee
new
to
Delaware Power
Beneficial Loan Corp.
one
(no
stockholders
it Cook Electric Co., Chicago, III.
Oct. 7 (letter of notification) 10,041
Co., Inc
November 17
March 31 filed $4,000,000 of 5%
convertible subordinated
debentures due May 1, 1973. Price—To be
•
Nov.
stock.
$1,000,000
Gulf States Utilities Co
it Bapay Minerals, Inc. (Nev.)
Oct, 8 (letter of notification) 112,000 shares of
(with
stock
common
^
Bonds
(Wednesday)
and The
(Geyer
working
Co., Inc., New
Proceeds—For working capital.
Manufacturer of tires and tubes.
held
shares
$30,000,000
Co.)
November 5
Armstrong Rubber Co.
nolds & Co., New York.
by Union
for
amendment
the basis of
on
then
stockholders to
to
....Preferred
&
Works
Lunt
&
Arkansas
stock
100,000
EST)
28
American Fidelity &
Oil Ventures,
Inc., Oklahoma City, Okla.
Sept. 30 (letter of notification) 1,237,500 shares of com¬
mon stock
(par one cent) to be offered for subscription
by stockholders. Price—Four cents per share. Proceeds
—For drilling expenses. Office—703
Liberty Bank Bldg.,
Oklahoma City 2, Okla.
Underwriter—None.
v
Common
underwritten
—
Strategic Materials Corp
Price—$105 per unit/ Proceeds—For
acquisition of stock of two companies, who will borrow
J
a.m.
Witter
(Bids
Avenue, Baltimore, Md.
(Hamlin
repay
shares
by
oversubscription privi¬
lege, subject to subscription rights of employees); rights
For
Niagara Mohawk Power Corp
10 shares of stock.
capital.
11
(W. C. Langley & Co.
Applied Science Corp. of Princeton
May 21 filed $750,000 of 6% guaranteed sinking fund 10year debenture notes due April 30, 1963, of this
company
and 75,000 shares of common stock
(par one cent) of
Bradco, Inc., to be offered in units of $100 of notes and
to
nine
Ohio.
Corp.)
October
common
•
remainder
$25,000,000
(Tuesday)
stockholders
to
(Dean
one
for1 subscription
shares held
Debentures
EST)
noon
San Jose Water Works
capital.
Office — 6500
Underwriter—None.
the
Equip. Trust Ctfs.
Public Service Electric & Gas Co.—
writer—None.
the
offered
.
by amend¬
mining properties. Under¬
at
-
.
Co., Cleveland, Ohio
Sept. 29 (letter of notification) 12,020 shares of common
stock (par $l);„being offered first to stockholders of
$4,350,000
Central Illinois Light Co
cents—Canadian funds) to be offered for
subscription by
stockholders at the rate of one new share for
each five shares held. Price—To be
supplied
20
shares.
Underwriter
,
Illinois Light Co. (10/27)
filed 100,000 shares of common
7
be
•
shares
105,500
(Monday)
EST)
noon
October 27
common
Oct.
stockholders'
Bldg., Seattle, Wash.
Central
tion.
Corp
Lead
record
and -certain
Common
RR
(Bids
(Bids
of
•
on
(Friday)
October 26
Seaboard
Corp.
stockholders
Common
(Offering to stockholders—no underwriting)
Underwriters—W. C. Langley & Co. and The First Bos¬
Anchor Post Products, Inc.
(10/20)
Sept. 30 (letter of notification) 32,953 shares of
stock (par $2) to be offered for
subscription by
notes
of record Oct. 27
$50,000,000
Hartford Electric Light Co
balance of approximately $5,000,000 to make additional
investments in the common stock of its subsidiaries.
Proceeds—To develop
of
ceeds—For repayment of bank loans and new construc¬
stock sale, together with funds
private sale of $20,000,000 bonds, to be used to re¬
deem $14,700,000 of collateral trust 3s due 1957 of this
company and $5,241,900 of 6% and 7% preferred stocks
of the system's three sub-holding
companies, and the
ment.
retirement
Oct.
Morgan Stanley & Co.; Drexel & Co. and
Glore, Forgan & Co.) 800,000 shares
Price—To be supplied by amendment.
Anacon
etc.)
>
.
Corp., Seattle, Wash.
Aug. 25 (letter of notification) 35,000 shares of common
stock (no par).
Price—$4.50 per share. Proceeds—For
to
Debentures
Co.,
from
ton
$247,148
Public Service Electric & Gas Co
(10/28)
Oct. 8 filed 225,000 shares of cumulative preferred stock
v
Common
(Wednesday)
&
Under-;,
Offering—Temporarily postponed.
Office—407 Securities
(Province of)
(Harriman
($100 per
—None.
(Tuesday)
(Offering to stockholders)
.October
None.
ceeds—From
$300,000
Anchor Post Products, Inc.__
American-Israeli Cattle Corp.,
(par $25).
Common
Common
Smithken
Price—At par
Cascade Natural Gas
$299,200
Wing Oil & Gas Corp
ISSUE
Proceeds—To reduce short-term notes.
writer—None.
$1,031,250
New Mexico-San Juan Natural Gas Co
N. Y.
^American Water Works Co., Inc.
Pfd. & Com.
Inc.)
REVISED
share for each five shares held.
share).
(Monday)
Nevada Natural Gas Pipe Line Co
Amalgamated Growth Industries, Inc.
Sept. 28 (letter of notification) 149,999 shares of common
stock (par 10 cents). Price—$2 per share. Proceeds—For
acquisition of patents, etc., and for new equipment and
working capital. Office—11 West 42nd St., New York
City. Underwriter—R. A. Keppler & Co., Inc., New York,
ITEMS
•
PREVIOUS
Carolina Telephone & Telegraph Co.
Aug. 17 filed 33,320 shares of capital stock to be offered
for subscription by stockholders in the ratio of one new
NEW ISSUE CALENDAR
October 19
ADDITIONS)
SINCE
Fallon
June 25
A
Gas
Corp., Denver, Colo.
(letter of notification) 3,616,000 shares of Class
common
stock.
Price—At par
Proceeds—For drilling wells.
Denver, Colo.
Colo.
(five cents
per
share).
Office—528 E and C Bldg.,
Underwriter—E. I. Shelley Co.,
...
Denver,
•
.
;|
'
P
Volume 178
Number 5264
...
The Commercial and Financial Chronicle
(1459)
39
1
Farm Equipment Acceptance
Corp., Peoria, III.
Sept. 28 (letter of notification) 14,000 shares of common
stock (par $10). Price—$12.75
per share. Proceeds—For
working capital. Office—3500 North Adams St., Peoria,
111. Underwriter—Carl McGlone &
Co., Inc.,
Chicago, 111.
Hunter Creek Mining Co.,
Wallace, Idaho
(letter of notification) 160,000 shares of common
stock.
Price—25 cents per share.
Proceeds—For
Harriman Ripley & Co., Inc. and Union
Securities Corp.
entered the only bid on June 15 for the
securities—
ating capital.
Office — 509 Bank St., Wallace, Idaho.
Underwriter—Mine Financing, Inc., Spokane, Wash.
been
June 2
oper¬
-
Federal Services Finance
Sept.
28
Corp.
notification) $300,000 of 5%%
(letter of
Ionics, Inc., Cambridge, Mass.
con¬
vertible subordinated debentures due
Sept. 1, 1968 (each
$100 principal amount is convertible into nine shares of
stock
common
of
share). Price—At
no
value,
par
valued
at
$12.50
per
(in multiples of $100 each). Pro¬
par
ceeds—For working capital. Office—839-17th
Washington, D. C. Underwriter—Mackall
&
St., N. W.,
Coe, Wash¬
June 30 filed
131,784 shares of common stock (par $1).
be supplied by amendment
(between $8 and
$9 per share). Proceeds—To pay mortgage debt and for
equipment. Business — Research and development and
subsequent commercial exploitation in the field of ion
exchange chemistry. Underwriter—Lee Higginson Corp.,
New York and Boston (Mass.). Offering—Date
indefinite.
Israel
15,000 Systematic Periodic Payment Investment Certifi¬
cates ($18,000,000); and
2,500 Cumulative Full-Paid In¬
vestment Certificates
($2,500,000).
Proceeds — For in¬
vestment.
Underwriter—None.
•
Florida Power
Corp., St. Petersburg, Fla.
Sept. 11 filed 211,416 shares of common stock (par
$7.50)
being offered for subscription by common stockholders
Oct.
Pierce,
construction.
new
Peabody & Co. and Merrill
& Beane, both of New York.
—
Lynch,
Fenner
1
basis
of
one
share
new
for
rights to expire on Oct.
ing capital. Underwriters
each
30.
five
shares
Proceeds—^-F'or
held;
work¬
Woodard-Elwood Co., Min¬
Harold E. Wood &
Co., St. Paul,
—
neapolis,
Minn,
and
Minn.
5s.
This bid
rejected.
was
Reoffering had
101.875
to yield 4.87-%.
July 6 com¬
sought SEC authority to borrow $20,000,000 from
banks on 3Y^% notes
pending permanent financing which
is presently
being given consideration.
pany
stock.
common
Okla. Underwriter—Petroluem Finance
Price—At
Bldg., Ardmore,
Corp., Oklahoma
City, Okla.
Kansas Gas & Electric Co.
,
Securities
construction.
new
Corp.,
Preston.
Mon-Dak Oil, Ltd.,
Sidney, Mont.
Sept. 25 filed 7,800 shares of class A voting common stock
(no par) and 685,816 shares of class B
non-voting com¬
stock (no par). Of.the class B
shares, 172,894 will
have been sold the moment the
offering is approved and
the remaining
512,922 will be sold following approval.
mon
Price—$1
and
share.
per
to repay notes.
Proceeds—For oil
and
leases
gas
Underwriter—None.
A Morris Paper Mills, Chicago, III.
Oct. 7 (letter of
notification) 1,600 shares of common
(par $10). Price—At market (estimated at about
$10 per share). Proceeds—To A. G.
Ballenger, the sell¬
stock
Sept. 11 filed 50,000 shares of preferred stock (par $100).
Price—To be supplied by amendment. Proceeds—To re¬
pay bank loans and for
A Midwest Uranium Co., Wichita, Kan.
Oct. 9 (letter of
notification) 2,200,000 shares of common
stock (par one cent). Price—The first
1,400,000 shares at
10 cents each and the
remaining 800,000 shares at 20
cents each. Proceeds—For
mining and drilling. Office—
620 Empire
Bldg., Denver 2, Colo. Underwriter—Alex¬
ander P.
New York
Inc.,
shares of
—To complete wells. Office—504 Gilbert
—Union
on
18,800
K-O-T Oil Corp., Ardmore, Okla.
S^pt. 28 (letter of notification) 299,500 shares of commlon stock (par one cent). Pricce—$1 per share. Proceeds
•
Flour City Ornamental Iron Co.
Sept. 23 (letter of notification) 60,000 shares of common
stock.
Price—At par ($5 per share)
being offered for
subscription by common stockholders of record Oct. 9
Enterprises,
filed
par ($100 per share). Proceeds—For investment in exist¬
ing industrial enterprises in Israel. Underwriter—None.
at rate of one new share for each
10 shares held on
Oct. 8; rights to expire on Oct. 26.
Price—$24 per share.
Proceeds—To repay bank loans and for
Underwriters
Kidder,
for
planned at
Price—To
ington, D. C.
-Ar Financial Industrial Fund, Inc., Denver, Colo.
Oct. 9 filed 600,000 Financial Industrial
Fund Shares;
100.125
New
York.
Underwriters
May
be
ing stockholder.
111.
privately.
Office—135
So.
Underwriter—Hallgarten
placed
LaSalle
St., Chicago 3,
& Co., Chicago, 111.
Motion Picture
Kansas Gas & Electric Co.
Sept. 11 filed $10,000,000 of 3%%
Laboratories, Inc.
(letter of notification) $50,000 of first chattel
mortgage bonds dated Oct. 1, 1953, and 5,000 shares of
common stock
(par $1) to be offered in units of a $1,000
Sept. 21
•
first mortgage bonds
due Oct. 1, 1983.
Proceeds—To reduce bank loans and
for construction
program.
Underwriters—Halsey, Stuart
& Co. Inc., who were awarded the issue on
Oct. 14 on a
bid of 101.479.
Reoffering is expected to be made at
102.25 to yield 3.51%.
bond
and
100
shares of stock.
Price
$1,100 per unit.
Office—1830 Exchange Bldg.,
Underwriter
Gordon Meeks &
—
Proceeds—For equipment.
Memphis, Tenn.
Memphis, Tenn.
—
Co.,
•
General Hydrocarbons
Corp.
Aug. 12 filed $1,010,800 of 20-year debentures and
66,424
shares of common stock
(par $1) to be offered in units
of $350 principal amount of
debentures and 23 shares of
stock. Price—$359 per unit
($336 for the debentures and
per share for the
porate
stock).
Business
purposes.
Proceeds—For general
—
Oil
and
cor¬
development.
gas
Underriter—None. Office—Oklahoma
City, Okla.
Kay Jewelry Stores, Inc., Washington, D. C.
Sept. 28 filed 672,746 shares of capital stock
(par $1) to
be offered in exchange for
preferred and common stocks
of
71
store
corporations
jewelry stores.
which operate
Underwriter—None.
83
retail
credit
of
Kenwell Oils & Mines
Ltd., Toronto, Canada
Aug. 20 filed 1,400,000 shares of common stock
(par $1).
Price
To be supplied
by amendment. Proceeds—For
working capital and general corporate purposes. Under¬
writer—To be supplied by amendment.
—
General Shoe
Corp., Nashville, Tenn.
Oct. 2 filed 19,465 shares of
$5 cumulative preference
stock, series B (stated value $100 per share) and
139,742
shares of common stock
(par $1) to be offered in ex¬
change for shares of stock of Berland Shoe
Stores, Inc.
on the
following basis: For each Berland common share
0.54253 shares of General Shoe
common; and for each
4 6/ 11th shares of
Berland preferred stock one share of
series B preferred of General
Shoe or for each 2.0227
shares of Berland
prefered one share of General Shoe
common stock.
Offer, which will terminate on Dec. 7,
is subject to
acceptance of 80% of each class of stock.
common
stock
(par 33% cents). Price—At market (estimated at
$3 per share). Proceeds—To Roy A.
Kropp, President.
Underwriters—L. D. Sherman &
&
share
one
share; and the remaining 25,000 shares of common
are to be offered
publicly at $7 per share. Proceeds
per
stock
—For construction of
pipe line system and
ital.
Office—Las
—
construction.
Business
Hotel
—
Underwriter—Gearhart
&
and
land
development.
Otis, Inc., New York. Offering
—Postponed indefinitely.
Gray Manufacturing Co., Hartford, Conn.
May 1 filed 55.313 shares
offered
of
for
one
subscription
of capital stock
by
stockholders
the
on
share for each four shares held.
new
be supplied by amendment.
porate
(par $5) to be
Co., of New York, and
Co., of Chicago, 111.
Underwriter
purposes.
Price—To
None.
—
Offering
cor¬
—
No
definite plan adopted.
stockholders of record Sept.
29, 1953, on the basis of one
share for each 10 shares held
(with an oversub¬
May 8 filed 600,000 shares of
Wilmington, Del.
scription privilege). Rights will expire on Oct. 16. Price
per share.
Proceeds—To retire bank
loans, and
(par 5 cents)
—$13.75
subscription by common stockholders of
May 8 on a share-for-share basis "as a specula¬
Price—To be supplied by amendment. Proceeds—
For expansion program.
Underwriter—None.
increase
common stock
to be offered for
investments in
8
(letter
of
notification)
stock
(par
$45).
Price—At par.
$5)
and
700
1,000 shares
shares
of
of
system.
Mo.
Oct.
2
to be
Oct.
filed
105,500
(par
and
Broadway,
Light Co.
shares
of
Breckenridge,
(10/23)
common
shares
on
the
held:
basis
rights
of
one
will
(par
Electric
Sept. 25 filed
Nov.
each
10.
Price.—1To
one
of
common
common
new
stock
to
stockholders of
share for each 5M>
($20 per Share).
Hedges Diesel, Inc.
and
20,000
|£cord
shar^.held.
ex¬
new
fice—Marlton, N. J.
of
one
new
share
for
each
seven
shares
held;
Sept. 21 (letter of notification) 748,000 shares of common
(par 10 cents). Price—40 cents per share. Pro¬
ceeds—To develop and maintain
leases.
Office—2135
Gold Avenue,
Albuquerque, N. Mex.
Underwriter
stock
—
Hunter Securities Corp., New York.
A Niagara-Mohawk Power Corp. (10/28)
Oct. 7 filed $40,000,000 general
mortgage bonds
Oct.
1,
A Management Funds, Inc.
Oct. 7 (letter of
notification) $100,000 of 7% three-year
1983.
Proceeds—To
repay
bank
loans
and
due
for
construction.
new
competitive
Underwriters—To be determined by
bidding.
Probable bidders: Halsey, Stuart
& Co.Mnc.; Morgan
Stanley & Co.; The First Boston
Corp.; Kuhn, Loeb & Co. Bids—Tentatively expected to
registered bonds. Price—At par (in units of $500
each).
Proceeds—For working capital. Business—Sales finance
be received
Office—26 Journal Square, Jersey City 6, N. J.
Underwriter—None.
North
Oct. 28.
on
12,
1952
(par
25
cents).
of
Class
Underwriters—None.
filed
B
stock
10,000,000 shares of
Price—$2 per share.
common
stock
Proceeds—For
writer—Robert G. Sparling, Seattle, Wash.
drilling of exploratory wells, acquisition of leases and
for
general
corporate
purposes.
Undertaker—B.
V.
Christie & Co., Houston, Texas. Dealer Relations
Rep¬
resentative—George A. Searight, 115 Broadway, New
York 6, N. Y.
Telephone
date
7-8448.
Offering—
Northern Illinois Corp., DeKalb, III.
4 (letter of notification) 12,500 shares
Sept.
cumulative
certain
Of¬
(no
of $1.50
being offered to
par),
stockholders for a 30-day period from
Price—$24 per share. Proceeds—For working
Office—112 E. Locust Street DeKalb, 111. Un¬
derwriter—None.
company
capital.
A McDonald
Oct.
9
(H. A.)
Creamery Co., Detroit, Mich.
notification) $300,000 of 6% callable
Price
At par (in units of $100, $500 and
(letter
debentures.
$1,000 each).
of
—
Proceeds
—
To redeem
outstanding deben¬
tures
and for working capital.
Office — 9700 Oakland
Ave., Detroit 11, Mich. Underwriter—None.
A Northwest Telephone Co., Redmond, Ore.
8 (letter of notification) 10,000 shares of common
stock (par $5), of which 6,000 shares are to be offered
by
Oct.
the company and 4,000 shares by three
A McKenzie-Thomas, Inc., Denver, Colo.
Oct. 8 (letter of
notification) 56,000 shares of 6%
Office—313
inventory
and
working capital. Office—1210 First National Bank
Bldg., Denver, Colo. Underwriter—None.
215,000 shares of
Natural
Gas
common
Sixth
stock (par $14) to American
Co., parent, for $3,010,000, to
be
used
to
share.
St.,
selling stockhold¬
Proceeds—For construction.
Redmond,
Ore.
Underwriters-
Seattle, Wash.; and others.
Ohmart
24
Corp.,
(letter
Gas Co.
repay bank loans and for construction program.
A group headed
per
Camp & Co., Portland, Ore.; Wm. P. Harper & Son & Co.,
Sept.
Proceeds—From sale of bonds, plus proceeds from sale
of
Price—$15.75
cumu¬
lative preferred stock and 14.000 shares of common
stock.
Price—At par ($1 per share). Proceeds—For
mon
common
preferred stock
Sept. 21.
indefinite.
May 15 filed $20,000,000, of first mortgage bonds due
1978,
10,000 shares of Class A
equipment, and working capital.
(Glenn), Inc.
Michigan Consolidated
%
shares
Idaho Mines, Inc., Kellogg, Ida.
(letter of notification) 400 shares of common
(no par). Price—$125 per share.
Proceeds—For
exploration. Address—Box 298, Kellogg, Idaho. Under¬
July 31
McCarthy
ri K
Price—At par ($10 per share). Proceeds—To
erect
plant and for
rate
rights to expire on Oct. 29. The remaining
100,000 shares
are
being offered to employees. Price—$16 per share.
Proceeds—To repay bank loans.
Underwriters—Blyth &
Co., Inc., The First Boston Corp. and W. C. Langley &
Co., all of New York.
":;J«
(N.J.)
Aug. 24 (letter of notification)
$6 of¬
Proceeds—For plant
Underwriter—None.
stock
(19/19-20)
Sept. 24 filed 785,648 shares of common stock (par
$10),
of
which
685,648 shares are being offered for sub¬
scription by common stockholders of record Oct. 14 at
the
New Mexico-San Juan Natural Gas Co.
(10/14)
ers.
it
•
common
eight
Proceeds—For construction
100.000 shares
Oct. 5 in ratio of
pansion.
on
for
Co., Ltd.
subscription by
Price—At par
stock.
$25)
Underwriter—None.
Hawaiian
fered for
share
new
expire
be supplied by amendment.
program.
Long Island Lighting Co.
BArclay
stock
offered for subscription
by stockholders of record
23
•
•
common
stock
Underwriter—None.
Office—7th
Hartford! Electric
New York.
June
preferred
Proceeds—To construct and install
dial
•
subsidiary, including Worcester
Dealer-Manager—The First Boston Corp.,
Gas Light Co.
tion."
company.
A- Green Hills Telephone Corp.,
Breckenridge, Mo.
Oct.
cap¬
First
new
Lone Star Sulphur
Corp.,
basis
Proceeds—For general
working
New England Gas & Electric Ass'n
Sept. 2 filed 200,096 common shares of beneficial interest
(par $8) being offered for subscription
by common
record
Grand Bahama
Co., Ltd., Nassau
Feb. 3 filed $1,350,000
20-year 6% first mortgage conver¬
tible debentures due
March, 1973, and 1,565,000 shares
of class A stock
(par 10 cents). Price—Par for deben¬
tures and $1 per share for stock.
Proceeds
For new
of
each class of stock at
$28 per unit;
25,000 shares of common stock are to be offered for
subscription by stockholders of record Sept. 21 at $6.25
Vegas, Nev. Underwrtier—The
California Co., Inc., San
Francisco, Calif.
Kropp Forge Co., Cicero, III.
Sept. 15 (letter of notification) 12,890 shares of
Sincere
Nevada Natural Gas
Pipe Line Co. (10/19-20)
Sept. 21 filed 25,000 shrares of $1.50 cumulative
preferred
stock
(par $21) and 75,000 shares of common stock
(par $1). Of these shares, all of the preferred stock and
25,000 shares of common stock are to be offered in units
stock
of
Cincinnati,
13,500
shares
of
com¬
(par $1) to be offered first to common stock¬
holders, then to general public.
Proceeds—For
purposes.
O.
notification)
equipment
and
Price—$16.50
other
per
general
share.
corporate
Underwriter—Estabrook & Co., New York and
Boston.
Bids—
jointly by Halsey, Stuart & Co., Inc.,
Continued
on
page
40
The Commercial and Financial Chronicle
40
...
Thursday, October 15,
1953
(1460)
To
39
Continued, from page
(10/21)
(Province of)
★ Ontario
debentures, due Nov. 1,
1978.
Price—To be supplied by amendment.
Proceeds—
To be advanced to the Hydro-Electric Power Commis¬
sion of Ontario to be used for capital expenditures.
Underwriters
Harriman Ripley & Co., Inc.; Wood,
Gundy & Co., Inc.; Smith, Barney & Co.; The First Bos¬
ton Corp.; A. E. Ames & Co., Inc.; The Dominion Securi¬
ties Corp., and McLeod, Young & Weir, Inc.
$50,000,000 of 25-year
Oct 9 filed
—
Hotel Co., Orange, Texas
of capital stock (par $20) and
41,333 registered 4% debentures due Jan. 1, 1984 of $100
each to be offered in units of one share of stock and one
$100 debenture. Price—$120 per unit. Proceeds—To con¬
struct and equip hotel building.
Underwriter — None.
(Subscriptions to 4,949 shares of stock and 4,949 deben¬
tures are held by a group of citizens of Orange formed
under the auspices of the Orange Chamber of Com¬
Orange Community
Sept. 14 filed 8,333 shares
merce.)
Schlafly Nolan Oil Co., Inc.
of common stock (par
Segal Lock & Hardware Co., Inc.,
the
1,000,000 shares of com¬
mon stock.
Price
30 cents per share. Proceeds—For
exploration. Office—West 909 Sprague Ave., Spokane,
Co.,
Office—Lock Haven, Pa.
Planter's
working
Underwriter—None.
Frank L. Edenfield &
★ Professional Acceptance Corp., Amarillo, Tex.
Oct. 7 (letter of notification) 300 shares of series B com¬
mon stock (par $50); 300 shares of series A non-cumu¬
lative preferred stock (par $50); and 300 shares of series
B cumulative preferred stock (par $50).
Price—At par.
Proceeds—For operating costs. Office—816 Harrison St.,
Amarillo, Tex. Underwriter—None.
Price—To be supplied by
pay
common
Co.
and
Glore,
Broad
and
I
for
•Stuart
be
rights
to
expire
on
repay
Oct.
bank
new
Rockland
1983.
working capital.
Address—P.
Underwriter—None.
For
Nov. 20 filed
loans
and
in
Canada.
j
Gas
Corp.
due Dec.
used to build a 1,030
Underwriters—White, Weld &
Corp., both of New York. Of¬
000,000 first mortgage bonds, to be
mile
oil pipeline.
crude
Co. and Union Securities
fering—Postponed indefinitely.
Line Co., Dallas, Tex.
1,125,000 shares of common stock (par 50
cents). Price—To be supplied by amendment. Proceedj
—Together with other funds, to be used to build pipe¬
line. Underwriters — White, Weld & Co. and Union Se¬
West Coast Pipe
Corp., both of New York.
curities
Offering—Postponed
Indefinitely.
West
Virginia Pulp & Paper Co.
Sept. 28 filed 1,270,344 shares of common stock (par $5)
to be offered in exchange for common stock (par $10)
of Hinde & Dauch Paper
Co.
on
the basis of IV3 shares
Virginia Pulp stock for each Hinde & Dauch
The offer will expire on Nov. 18. Underwriter—
West
of
None.
■
Western
Massachusetts
,
••.;
.
Companies
Sept. 17 filed 128,316 shares of common stock
(no par),
being offered for subscription
stockholders at rate of one new share for
eight shares held on Oct. 5. The remaining 6,000
subsidiary, to be used to retire up to $4,000,000 of out¬
standing bank loans incurred for construction purposes.
Underwriters—The First Boston Corp. and White, Weld
None.
by
common
each
are
expire
on
To
loaned
&
be
,
Stuart
Hughes & Co., Denver,
*:
^Worcester County Electric Co. (11/17)
Oct. 12 filed 75,000 shares of cumulative preferred stock
(par $100). Proceeds—To repay bank loans and for hew
construction. Underwriters—To be determined by com¬
Beane;
City, Colo. Underwriter—R. L.
new
to
Co., both of New York.
bidding.
Lehman
operations, equipment, etc. Office—Central
Oct. 21.
★ Wing Oil & Gas Corp., New York (10/19)
Oct. 5 (letter of notification) 750,000 shares of common
stock (par 10 cents).
Price—40 cents per share.
Pro¬
ceeds—For drilling expenses and working capital. Office
—42 Broadway, New York, N. Y. Underwriter—Lewis
Smithken Co., New York.
.
<r
<
petitive
United Mining & Leasing Corp,
to employees. Subscription rights
Price—$29.60 per share. Proceeds—
Western Massachusetts Electric Co., a
to be sold
shares
Aug. 26 (letter of notification) 1.700,000 shares of com¬
mon stock.
Price—At par (10 cents per share). Proceeds
1
for
Line Co., Dallas, Tex.
$29,000,000 12-year 6% debentures
15, 1964, and 580,000 shares of common stock (par 50
cents) to be offered in units of one $50 debenture and
one share of stock.
Price — To be supplied by amend¬
ment. Proceeds—From sale of units and 1,125,000 addi¬
tional shares of common stock and private sale of $55,-
—For mining
bank
O. Box 7, Caldwell,
of which 122,316 shares are
21. Price—$10.20 per share.
loans. Underwriter—Merrill
retire
additional working capital. Under¬
Lunt, Buffalo, N. Y., and Allen &
★ United Merchants & Manufacturers, Inc.
Oct. 7 filed 574,321 shares of common stock (par $1).
Price—At the market (either on the New York Stock
Exchange or through secondary distributions). Proceeds
—To a group of selling stockholders who will receive
the said shares in exchange for outstanding preferred
and common stock of A. D. Juilliard & Co., Inc., on the
basis of 6V2 shares of United Merchants stock for each
Juilliard common or preferred share.
Underwriter —
Light & Power Co.
Proceeds—To
&
Weld & Co. and
Sept. 17 filed $8,000,000 first mortgage bonds, series E,
due
by amendment. Proceeds—To repay bank
indebtednesss, for further exploration
other
sey,
share for each
.
I
■-
.
Stuart & Co. Inc.; Morgan Stanley & Co., White,
Equitable Securities Corp. (jointly); The
First Boston Corp., Harriman Ripley & Co., Inc. and
Goldman, Sachs & Co. (jointly). Bids—Expected to be
received up to noon (EST) on Oct. 26.
deter¬
oversubscription priviledge),
Xynch, Pierce, Fenner & Beane, New York.
v.
sidiary, to provide it with funds for construction; and to
replenish the treasury of United Gas Corp. and for other
general corporate purposes, including advances of such
additional funds as may be required by Union Producing
Co., another subsidiary. Underwriters — To be deter¬
mined by competitive bidding.
Probable bidders: Hal¬
(10/27)
being offered for subscription by common stockholders
.'Proceeds—To
'
(10/26)
Sept. 23 filed $25,000,000 of sinking fund debentures due
1973.
Proceeds—To purchase $10,000,000 of 5% sinking
fund debentures of United Gas Pipe Line Co., a sub¬
Light & Power Co.
one
;
.
share.
United
Sept. 17 filed 210,721 shares of common stock (par $10)
an
and
underwriters for distribution
Probable bidders: Halsey,
the basis of
,
(par $1).
writers—Hamlin
ployees pursuant to "Employees Stock Option Plan."
(with
stock (no par) to
^ Welchel Mines Co., Caldwell, Idaho
Oct. 6 (letter of notification) 3,000,000 shares of common
stock.
Price—At par (10 cents per share),
Proceeds—
of properties and for
•jV Reliance Electric & Egineering Co.
Oct. 6 (letter of notification) $300,000 aggregate value
of common stock to be offered through options to em¬
on
stock
supplied
loans
Co. Inc.; Kuhn, Loeb &
Co. and Lehman
(jointly); Morgan Standey & Co. and Drexel
& Co. (jointly); The First Boston Corp. Bids—Expected
to be received up to 11 a.m. (EST) on Oct. 27 at 80
Park Place, Newark, N. J.
shares held
-
Strategic Materials Corp., Buffalo, N. Y. (10/28)
Aug. 31 filed 198,500 shares of common stock (par $1)
to be offered for subscription by common stockholders
at rate of one new share for each share held. Price—To
&
^even
■
Co., New York. W. C. Pitfield & Co., Ltd., of Montreal,
Canada, has agreed to purchase 50,.000 shares from the
Underwriters—To be
1,088,940 shares of $1.28 cumulative con¬
stock (par $25) and 1,088,939 shares of
be issued in connection with
the proposed merger into company of Puget Sound Pow¬
er & Light
Co. on the basis of one-half share of pre¬
ferred and one-half share of common for each Puget
Sound common share to holders who do not elect to re¬
ceive cash at the rate of $27 per share. Underwriter—
vertible preferred
Nov. 20 filed
1, 1983. Proceeds—To repay bank loans
cl record Oct. 7
.
•
Brothers
Rockland
-•
Casualty Co., Miami, Fla.
80,000 shares of class B
Price—$3.75 per share. Office—
8268 N. E. 2nd Ave., Miami, Fla. Proceeds—To increase
capital and surplus, for expansion and to retire certain
preferred shares. Underwriter—Floyd D. Cerf Jr. Co.
Inc., Chicago, 111., and Miami, Fla.
Forgan & Co.
construction.
new
'
•
Sept. 10 (letter of notification)
amendment. Proceeds—To re¬
mined by competitive bidding.
•
Street, New York City.
State Fire &
Sept. 30 filed $30,000,000 of first and refunding mortgage
bonds due Oct.
.
*
....
West Coast Pipe
stock (no par).
Electric & Gas Co.
Box 2469,
purchase land for golf course. Address—P. O.
Phoenix, Ariz. Underwriter—Joe J. Peterno.
Co.
(par five cents). Price—$1 per share. Proceeds—
drilling costs. Underwriter—Arthur R. Gilman, 20
For
bank loans and for additions and improvements to
Public Service
★ Valley View Country Club, Phoenix, Ariz.
Sept. 30 (letter of notification) 374 shares of common
stock.
Price—At par ($800 per share),
Proceeds—To
Idaho.
(letter of notification) 300,000 shares of common
Oct. 2
property. Underwriters—Morgan Stanley & Co., Drexel
&
Underwriter—None.
stock
(10/21)
Public Service Electric & Gas Co.
stock.
preferred and one share of common
share of
one
Price—$10.15 per unit. Proceeds—For working capital.
Office—1301 Elm St., Dallas, Tex. Underwriter—None.
None.
rights will expire on Oct. 23.
Price—At par ($25 per
share).
Proceeds—To repay advances from American
Telephone & Telegraph Co.
writer—None.
Sept. 30 filed 800,000 shares of
Telephone Co.
Southern New England
Sept. 15 filed 400,000 shares of capital stock being offered
for subscription by stockholders of record Oct. 2 in the
ratio of one new share for each 10 shares then held;
Prugh Petroleum Co., Tulsa, Okla.
Aug. 28 (letter of notification) 35,000 shares of common
«tock (par $5). Price—$8.50 per share. Proceeds—To pay
Hoans. Office—907 Kennedy Bldg., Tulsa, Okla. Under¬
*
$5).
(par
common
Co., Miami, Fla.
of
common
common
Sta-Tex Oil
work¬
ing capital. Office—220 Miracle Mile, Coral Gables, Fla.
.Business—To process peat for fertilizer. Underwriter—
.
Washington Water Power Co.
unit. Proceeds—To liquidate liabilities and for
;per
,
Dallas, Tex.
May 7 filed
Corp., Coral Gables, Fla.
Peat
(letter of notification) 100,000 shares of 6%
cumulative preferred
stock
(par $2.50) and 100,000
ehares of common stock (par 50 cents) to be offered in
units of one share of each class of stock. Price—$2.50
6
of
Price—$12 per share.
Proceeds—For
Office—620 East Broughton St., Savan¬
nah, Ga.
Underwriters — Johnson, Lane, Space & Co.,
Inc., and French & Crawford, Inc., both of Atlanta, Ga.;
Grimm & Co., New York, and others.
Inc.
Proceeds—For
share.
per
Mines Financing, Inc., Spokane,
plant additions.
Pro¬
(letter of notification) 2,000 shares of capital
«stock (no par) to be offered to stockholders of record
June 29 at rate of one new share for each five shares
Price—$10
—
Underwriter—None.
Corp.,
Finance
(letter of notification) 29,000 shares of 70-cent
preferred stock (no par) and 29,000 shares
stock (par 15 cents) to be offered in units
Sept. 21
★ South Atlantic Gas Co., Savannah, Ga.
Oct. 7 (letter of notification) 25,000 shares of common
9
-capital.
Underwriter
Angeles, Calif.
cumulative
Wash.
•
Aug.
Exploration & Development Co.
Silver Dollar
Underwriter—None.
Chemical
Pedlow-Nease
ifheld.
loans and for
Aug. 20 (letter of notification)
stock
Price—40 cents per share.
ceeds—For working capital.
July
N. Y.
principal amount.
Proceeds—To repay
working capital. Underwriter—None.
stock (par 100)
(except
original incorporators) at rate of one new share for
Statement became
13.
Nov.
on
Universal Finance Corp., Los
Universal
held. Price—100% of
each 250 shares of common stock
Wash.
pires
per
SepVA filed $975,000 of five-year 6% convertible sink¬
ing fuhd debentures due Oct. 1, 1958, to be offered to
common stockholders at rate of one $100 debenture for
subscription by stockholders
-each two shares held.
effective Oct. 13.
Blvd., Los Angeles, Calif.
Overland Oil, Inc., Denver, Colo.
June 10 filed 600,000 shares of common
for
of 16 shares
postponed.
(letter of notification) 149,500 shares of com¬
mon stock (par 25 cents). Price—$2 per share. Proceeds
—For working capital.
Office—Marvyn Road, Opelika,
Ala. Underwriter—S. D. Fuller & Co., New York.
offered
Corp. on the basis
Finishing stock for each share of Aspinook stock. The
offer is conditioned upon its acceptance by the holders
of at least 80% of the Aspinook shares. The offer ex¬
of
July 27 (letter of notification) 12,000 shares of 6% cumu¬
lative preferred stock. Price — At par ($25 per share).
Proceeds—For working capital.
Office—3460 Wilshire
share.
Proceeds—To purchase
leaseholds, royalties and producing properties,
Price—$4
Sept. 28
be
shares of Aspinook
mon
250).
and sell
to pros¬
pect for oil and gas and to develop and operate produc¬
ing properties.
Office—Mt. Vernon, 111. Underwriter—
L. H. Rothchild & Co., New York.
Offering—Indefintely
March 25 filed 150,000 shares
—
Inc., Opelika, Ala.
Industries,
Orradio
to
bank loans and for new construction. Under¬
Witter & Co., San Francisco, Calif.
repay
writer—Dean
Equitable
scheduled
Nov.
Probable bidders: Blyth & Co., Inc.;
Merrill Lynch, Pierce, Fenner. &
Brothers;
be
to
St.,
Securities Corp.
received
Boston
16,
Bids
—
Tentatively
by company at its office, '441
Mass.,
up
to
17.
noon
(ESTp on
, j •
.cmu:
Colo.
construction.
who
were
Underwriters—Equitable Securities Corp.
awarded the issue on a bid of 102.079 for 3%s.
★ United Rayon Manufacturing Corp. (Netherlands)
Reoffering expected to be made at 102.738.
Saint Anne's
Oil
April 23 filed 165,000 shares of
Trice
$5
Oct.
Production Co.
common
tie Harris of
Chicago, 111. Registration statement
.
1.
company,
tions
.■
San Jose Water Works
-Oct. 5
(Calif.)
(10/27)
{par $25—convertible
into
common
stock
from Jan.'1,
1354). Price—To be supplied by amendment. Proceeds—
ordinary
Freres
to
American
&
•
7
to
be'offered
in
stock (no par)
exchange for the 15,000 outstanding com¬
about
150,000 shares of convertible preferred stock
on
expire
a
share-for-share basis,; about Nov. 5; rights
about
Nov.
waived their rights
Finishing Co.
common
Fidelity & Casualty Co. (11/5)
stated registration is planned for
was
(par $5) to be offered for subscription by common stock¬
Co.; New York.
United States
it
Oct. 16 of
holders
Sept. 23 filed 240,000 shares of
to
Oct.
the proceeds to be used by it for capital addi¬
and facilities.
Underwriter — Lazard
plants
,
filed 40,000 shares of cumulative preferred stock
Prospective Offerings |
receipts for
10.000
ordinary share of Hfl. 1,000 par value.
Price—To
Proceeds—To selling stock¬
holders, who purchased the ordinary shares from the
.
*
representing
be supplied by amendment.
be
may
American depositary
shares
each
per
Neb-Tex Oil
revised.
"A. K. U."
American
shares of A. K. U. at the rate of 20 American shares for
stock (par $1).
share.
Proceeds — To acquire stock of
Co., to pay loans and for working capital.
Office—Northwood, Iowa. Underwriter—Sills, Fairman
—
filed
9
200,000
j
—To
be
named
20.
Certain
stockholders
to purchase the new shares.
later..
Proceeds—For working
Underwriter—Geyer & Co.,, New York.
have
Price
capital.
Volume 178
Number 5264
...
The Commercial and Financial Chronicle
(1461)
•
American Telephone &
Telegraph Co.
't
Oct. 14 stockholders authorized the directors to issue up
to $625,000,000 in convertible debentures.
Price — Ex¬
Proceeds—For advances to subsidiary and
pected at par.
associated
companies. Underwriter—None.
Offering—To
(about $55,000,000 to carry
which may first be
interest rate not exceeding
an
4%)
offered for subscription by
stockholders. Proceeds—To retire bank loans and to meet
construction
costs.
authorized the
Meeting—Stockholders
April 14
Underwriter—None.
debentures.
new
be made to stockholders.
Dixie
Atlantic
City Electric Co.
Oct.
Oct. 5 B. L.
England, President, announced that the com¬
pany plans to issue and sell early next year about $4,<100,000 of new bonds and make an offering to stockhold¬
ers
l-for-10
a
on
raise
an
basis
additional
of
sufficient
estimated
Union
be
may
Co.
Securities
Previous bond issue
stock
common
to
$3,000,000. Proceeds—For
construction program. Underwriters—For
Corp.
common
stock
and
Smith, Barney
placed privately.
was
issue
27
it
later
proposed debenture
around $60,000,000.
The
financing
are
still to be
Stockholders voted
May 5 to increase the
$75,000,000 to $150,000,000.
Pro¬
ceeds—To be used to help pay for a $100,000,000 con¬
struction program for 1953.
Underwriters—Smith, Bar¬
ney & Co. may head group.
authorized
debt
was
holders of the parent company on a pro rata basis under
proposed divestment plan.
Holdings Corp.
June 24 it
sell
company plans to issue and
publicly $2,000,000 of convertible debentures. Pro¬
ceeds
For
development of Stanwell Oil & Gas Ltd.,
jnewly acquired subsidiary. Underwriters—Blair, Rollins
—
Co. Inc.
and
The
First
California
Co.
which
are
preferred
Central
Feb. 20 it
was
collateral
bidders:
Halsey, Stuart & Co. Inc.; Estabrook &
The
Kidder, Pea¬
body & Co. (jointly); Glore, Forgan & Co. and Harriman
Ripley & Co. Inc. (jointly).
Co. and Stone & Webster Securities
Corp. (jointly);
First Boston Corp., White, Weld & Co. and
it
2
be
&
reported company plans sale during the
1954 of $10,000,000 common stock after
^distribution by New England Public Service Co. of its
holdings of Central Maine Power Co. common stock.
first quarter of
;
: Probable bidders:
Blyth & Co., Inc. and Kidder, Peabody
'& Co. (jointly); Coffin & Burr, Inc.; A. C. Allyn &
Co.,
Inc. and Bear, Stearns & Co. (jointly); Harriman Ripley
& Co., Inc.
it
reported company
was
may
issue
Stone
Webster
&
Securities
Corp.; Lehman Brothers
(jointly); Blyth & Co., Inc.,
j-Harriman Ripley & Co.., Inc. and Smith, Barney & Co
(jointly); Salomon Bros. & Hutzler.
and Glore.
Forgan & Co.
April 6 it
Gas
was
System,
announced
Inc.
-r
it was reported company plans issuance and
$4,000,000 30-year first mortgage bonds. Under¬
writers
May be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Lehman
Brothers, Merrill Lynch, Pierce, Fenner & Beane and
—
Union Securities Corp.
Florida
plans
company
to
issue
and
•
$40,000,000 of new debentures. Pro¬
bank loans and for construction pro-
repay
''Underwriters—To
gram.
bidding.
Probable
be determined by competitive
bidders:
Halsey, Stuart & Co. Inc.;
Power
was
Corp.
announced that the company plans to sell
be
determined by competitive
bidding. Probable
Halsey, Stuart & Co. Inc.; Kidder, Peabody &
Co. and Merrill Lynch,
Pierce, Fenner & Beane (joint¬
ly); Lehman Brothers; Glore, Forgan & Co. and W. C.
Langley & Co. (jointly); The First Boston 'Corp.
bidders:
6
was
For
bonds, underwriters may be determined by competi¬
bidding. Probable bidders for $10,000,000 of bonds:
Halsey, Stuart & Co. Inc.; White, Weld & Co.; Salomon
Bros. & Hutzler; Dillon, Read & Co.; Union Securities
Corp. and Glore, Forgan & Co.
(jointly); Lehman
Brothers; Lee Higginson Corp. and Carl M. Loeb,
Bhoades & Co. (jointly).
tive
-
r
Oct. 5 it
in
announced company plans to issue and sell
was
1954 about
Bank, Franklin Square, N. Y.
stockholderss
authorized
issuance
and
sale
to
Boston
Weld
Corp.
and
Halsey, Stuart & Co. Inc.; The First
Blyth & Co., Inc. (jointly); White,
& Co. and Shields & Co.
(jointly); Union Securi¬
ties Corp.; Lehman Brothers; Morgan Stanley & Co.;
Kuhn, Loeb & CoJ and Salomon Bros. & Hutzler (jointly);
W. C. Langley & Co.
♦
Delaware
Oct. 5 it
common
Power &
Light Co.
share.
per
Underwriter—Blair, Rollins
& Co. Inc.,
York.
Aug. 24 company received SEC authority to acquire its
distributive portion of portfolio stocks
being distributed
by New England Public Service Co. pursuant to tnat
company's plan of liquidation and dissolution. By reason
ownership of NEPSCO stocks, General Electric will
of its
be
entitled
shares
Go.
was announced this company plans
offering to
stockholders of record Nov. 25 of 232,520 addi¬
tional shares of
common
stock
on
a
one-for-seven basis.
Bights will expire about Dec. 15. Employees will receive
rights to subscribe for up to 150 shares each. Price—To
be
named
by
determined
company
by
on
Nov. 23. Underwriters
competitive
bidding,
bidders
W. C. Langley & Co. and Union Securities
—
may
If
be:
Corp. (joint¬
ly); White,
Weld & Co. and Shields & Co. (jointly);
Lehman Brothers; Harriman Ripley & Co. Inc.; Blyth
& Co., Inc.; Kidder, Peabody & Co. and Merrill Lynch,
Pierce, Fenner & Beane (jointly). Price—May be set by
directors, with bidders to name their underwriting com¬
pensation. Registration—Expected about Oct. 28. Bids—
Tentatively expected to be received on Nov. 25.
of New
the
:
receive
of
(3.89%)
97,030.95
Central
of the
shares
Maine
was
announced company plans to issue
common
(3.89%) of the
Co.; 45,690.45
stock
of
Public Service
stock
of
Central
Vermont
Public
Service
Corp.
General Electric proposes to sell or otherwise dis¬
such securities within a period of one year
from the date of such acquisition
(subject to its right to
apply for additional time to dispose of such securities).
of
unspecified amount of convertible debentures due 1963
Com¬
that
this company plans to
raise $184,550,000
finance construction of three
hydro-electric projects
Snake River, Idaho. If
approved, the, financing will
to
on
consist of
$105,000,000 of bonds through 1962;
$27,4O0,G0€stock; and $52,150,000 of common stock
Throughout the financing period, the
company would
borrow and repay
$29,000,000 of short-term loans. Final
financing details would depend on market
of
preferred
Illinois
Sept. 21
and
Power Co.
it
sell
writers
was
reported
$20,000,000
To
—
be
of
company is planning to issue
first mortgage bonds. Under¬
determined
by
competitive
bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; White, Weld
& Co.
and
Merrill Lynch,
Pierce, Fenner & Beam
(jointly); Harriman Ripley & Co. Inc. and
Glore, Forgan
& Co.
(jointly); The First Boston Corp.; Kuhn, Loeb &
Offering—Expected in November.
Co.
•
Long Island Lighting Co.
14
it
was
announced
issue of
an
that company this November
$25,000,000 of first mtge. bonck.
(this is in addition to 785,648 shares
of com. stock now
to stockholders and
employees). Proceed"
repay
bank
loans
and
for
new
construction.
Underwriters
To be determined
by competitive bid
ding.
Probable bidders:
Halsey, Stuart & Co. Inc
Blyth & Co., Inc. and The First Boston
being offered
—To
s
W.
Corp. (jointly>
Langley & Co.; Smith, Barney & Co.
C.
Maier
Brewing Co., Los Angeles, Calif.
April 18 it
was
announced company will offer 400,OOf
additional shares of
share.
per
stock to its stockholders
common
a*
shares for each share held.
Price—fy
Prcoeeds
To help finance a new
bottling
new
—
Government Employees Corp.,
Washington, D. C.
dend rate not to exceed 6% annually. The
management
states that, under present plans, these shares will be
issued as the growth of the corporation warrants.
Government
Employees
Corp.
(11/24)
23, Leo
Goodwin, President, announced that the
company soon plans to register with the SEC an issue
of $500,000 10-year 4% convertible
junior subordinated
debentures (convertible into common stock at the rate
of $20 per share), to be offered for
subscription by com¬
mon
stockholders of record Nov.
of
debentures for
on
Dec. 9.
15
shares
It is expected that
be mailed
—For
each
on
or
ployees Insurance
Bldg.,
at the rate
of
$100
held; rights to expire
subscription warrants will
about Nov. 24.
working capital, etc.
17
Price—At par.
Office
—
Proceeds
Underwriter—None.
Milwaukee Gas Light Co.
Minnesota Power &
Light Co.
Aug. 3 it
on
Washington 5,
D.
C.
Under¬
This
will
latter first
loans.
issue
and
$483,000
to
place
with
promptly
necessary.
the
any
company
new
Immediate
in
a
financing
offer
position to proceei
that may become
not
contemplated. Under¬
writers—May be determined by
competitive bidding
Probable bidders:
Kidder, Peabody & Co.; Blyth & CoInc.
Monongahela Power
Co.
(12/1)
Sept. 9 it
suance
1983.
was announced that
company is planning Is¬
and sale of
$10,000,000 first mortgage bonds due
Proceeds—For construction
program. Underwriter*
To be determined
by competitive
ders: Halsey, Stuart & Co.
bidding. Probable bid¬
Inc.; W. C. Langley & Co. ani
Corp. (jointly); Kuhn, Loeb & Co.
Kidder, Peabody & Co.. and
White, Weld & Co. (jointly).
Glore, Forgan & Co.; Lehman
Brothers, Equitable Se¬
curities Corp.; Union
Securities Corp. and Salomon Bror
The
&
First
Boston
Hutzler
(jointly); Merrill Lynch, Pierce, Fenner t
Beane; Harriman Ripley & Co., Inc. Bids—Tentative? *
expected to be received
on
Dec. 1.
Registration—Expect¬
ed about Oct. 30.
Mystic Valley Gas Co.
was
reported company plans issuance
^nd saV
$6,000,000 of bonds. Underwriters—May be de¬
termined by competitive
Connecticut
to
and
stockholders will vote Oct. 1
common stock
(no par}
2,000,000 shares (858,047 shares
outstanding) to 3>,000,000 shares and on
approving a 2-for-l stock split
Sept. 21 it
Greenwich Gas Co.
the
announced
from
of about
7
was
increasing the authorized
Government Em¬
writer—None.
May
-
of
March 18 stockholders authorized an issue of
3,000 shares
of preferred stock (par $100) to carry a cumulative divi¬
bonds
an
mission
Power
Hampshire; and 20,730.20 shares (2.72%) of
common
company
Detroit Edison Co.
March 24 it
to
stock
common
Sept.
(11/25)
Aug. 6, officials of Blyth &
Co., Inc. and Bankers Trusi
Co., New York, testified before the Federal Power
July 7 company sought SEC
approval of a bank lea*
$9,000,000 the mature Aug. 1, 1954. These
borrowing!
plus retained earnings, are
designed to finance expansion
pending formulation of permanent
financing prior t*
maturity of notes. Probable bidders for
bonds: Halsej
Stuart & Co.
Inc.; Glore, Forgan & Co. and Lehma?
Brothers
(jointly); Smith, Barney & Co. and Blyth &
Co., Inc. (jointly); Kuhn, Loeb &
Co.; Kidder, Peabody
& Co.; Harriman
Ripley & Co. Inc.
New
trust bonds.
Probable bidders:
Co.
—$43
$10,000,000 of first mortgage and collateral
Proceeds—For construction program.
Un¬
derwriters—To be determined by competitive bidding.
Corp.
Power
plant.
pose
if Delaware Power & Light Co.
Corp.;; Lehman Brothers; Smith, Barney &
Co.;
Kidder, Peabody & Co.; Equitable Securities
rate of four
General Electric Co.
reported company plans some financing
curities
stockholders of 39,000 additional shares of
capital stock
(par $10) on the basis of one new share for each 10
shares held on Oct. 6; rights to
expire on Oct. 23. Price
Columbus & Southern Ohio Electric Co.
Sept. 22 it
Co.
—
Proceeds—To pay off bank
purposes. Underwriter
Morgan Stanley & Co.
-later this year. Underwriter—For any preferred or com¬
mon stock may be Dillon, Read & Co.
Inc., New York.
Lighting & Power
was
reported company plans some new fi¬
nancing to provide funds for its construction
program.
Bidders for about $25,000,000 of
bonds may include Hal¬
sey, Stuart & Co. Inc.; Kuhn, Loeb &
Co.; Union Se¬
Oct.
(jointly).
borrowings and for construction
—To
the
Corp.;
Lynch, Pierce, Fenner & Beane and
White, Weld
(jointly); Lehman Brothers; Kuhn, Loeb & Co.
and A. C. Allyn &
Co., Inc. (jointly); Lee Higginstm
Corp. and Carl M. Loeb, Rhoades & Co.
(jointly). Bids
—Tentatively scheduled to be received on Nov. 23.
plans to offer
Oct.
!:sell later this year
ceeds—To
Halsey,
Kidder,
21
Franklin National
Columbia
bidders:
of
the latter part of this year.
sell
and
(60,000 shares of new preferred stock. Underwriters—To
i, be determined by competitive bidding.
Probable bidders:
.
Probable
approximately $10,000,000 first mortgage bonds due 1983
Central Power & Light Co.
2
17.
County Electric Co.
Sept. 11 it
March
Dec.
on
Inc.; Salomon Bros. & Hutzler;
Peabody & Co.; Blair, Rollins & Co. Inc.
sale
that
conditions.
Co.
Maine Power Co.
was
announced
Co.
&
reported company plans to issue and sell
equipment trust certificates. Bids—Expected
received
Stuart
(11/23)
President,
was
$5,400,000
to
(12/17)
Nelson,
Merrill
Idaho
announced company plans sale of $7,000,trust mortgage bonds due 1973.
Under¬
writers—To be determined by competitive
bidding. Prob¬
000
S.
company expects to sell a new issue of
$10,000,000 first
mortgage bonds. Proceeds—To repay bank loans and for
new construction.
Underwriters—To be determined
by
competitive bidding.
Probable bidders:
Halsey, Stuart
& Co. Inc.; Salomon Bros. &
Hutzler and Union Securi¬
ties Corp. (jointly); Stone &
Webster Securities
Eastern Utilities Associates
Sept.
Oct. 7"it
stock
—Blair, Rollins & Co,, Inc. and Cohu & Co., both of New
York.
Registration—Expected in near future.
Essex
'
Roy
Sept. 25 it
an issue of 200,000
(par $10), 100,000 shares of
expected to be offered publicly. Underwriters
of
Oct.
announced
was
one-for-five basis
a
Industries, Inc.
Erie RR.
Blair
on
7,
Houston
able
reported company's common stock (held
by Southern Union Gas Co.) may be offered to stock¬
a
stockholders
common
15-day period. Proceeds—For expansion. Under¬
writers—Glore, Forgan & Co.; Hornblower & Weeks.
from
Aztec Oil & Gas Co.
Aug. 11 it
3
a
Eastern
that
be
exact nature and timing of the
determined.
offered to
for
shares
will
year
stockholders will vote Nov.
Aug. 20 stockholders voted to create
announced
was
this
announced
was
authorizing the creation of a new issue of 200,000
shares of preferred stock (par
$50), of which approxi¬
mately 150,000 shares as a convertible series will be
on
Oct.
&
Atlantic Refining Co.
March
Cup Corp
it
2
on
if Gulf States Utilities Co.
11
P.
sell
par
U.
$200,000
value
stockholders).
Commission
of
of
first
common
authorized
mortgage
stock
(the
Proceeds—To retire bank
Underwriter—F. L. Putnam & Co., Boston, Mass.
bidding. Probable bidders: Hal¬
Stuart & Co. Inc.; Merrill Lynch,
Pierce, Fenner &
Beane and Union Securities
Corp. (jointly); Lehmao
sey,
Brothers; Kidder, Peabody & Co.
Continued
on
page
42
The Commercial and Financial Chronicle
(1462)
41
Continued jrom page
Narragansett Electric Co.
applied to Rhode Island P. U. Commis¬
sion
for
authority to issue
150,000 shares of pre¬
ferred stock (par $50).
Underwriter — Previous pre¬
ferred
stock
offer
(in 1940)
was
handled by The
First Boston Corp. If sold through competitive bidding,
•
Oct. 8 company
probable bidders may include The First Boston Corp.;
Merrill Lynch, Pierce, Fenner & Beane and Union Se¬
curities Corp. (jointly); Blyth & Co., Inc. and Harriman
Ripley & Co. Inc. (jointly); White, Weld & Co.;
Brothers and Goldman, Sachs & Co. (jointly);
Peabody & Co.
Lehman
Kidder,
and Stone & Webster Securities Corp.
of the project is $186,000,000, including $2,000,000 for
working capital. Financing is expected to consist of first
mortgage pipe line bonds and preferred and common
stocks.
Underwriters—White, Weld & Co. and Kidder,
Peabody & Co., both of New York, and Dominion Secu¬
rities Corp. Ltd., Toronto, Canada.
South
before
build
See
Corp.
reported that company may, later in 1953,
$20,000,000 first mortgage bonds. UnderTo be determined by competitive bidding.
Feb. 27 it
was
and
sell
—
Probable bidders: Halsey,
Stuart & Co. Inc.; The First
Corp. and Glore, Forgan & Co. (jointly); Blyth
Co., Inc. and Smith, Barney & Co. (jointly); Hemphill,
Noyes & Co. and Drexel & Co. (jointly); Kidder, Pea&
Salomon Bros. & Hutzler (jointly);
Brothers; Harriman Ripley & Co., Inc.
&
body
Co.
Lehman
April 29 it
Sept. 21 it
reported that company plans issuance and
was
Underwriters—May be
determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce, Fenner
of
about
bonds.
$3,000,000
Securities Corp.
& Beane and Union
(jointly); Lehman
Brothers; Kidder, Peabody & Co.
Gas Co.
Northern Natural
announced company plans to issue and
additional debentures later this year. Proceeds
Sept. 23 it
sell
some
was
—To repay
bank loans. Underwriters—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
Co.
&
Inc.; Blyth & Co., Inc.
until the early part of 1954.
it
was
companies and other institutional investors and $9,-
000,000 of 5% debentures and 1,400,000 shares of common
stock at
$10 per share publicly
Canada. Underwriter—Morgan
in the United States and
Stanley & Co., New York.
Oklahoma-Mississippi River Products Pipe
Line, Inc.
Sept. 23 it was reported this company, a newly organized
subsidiary of Sunray Oil Corp., plans to issue and sell,
privately and publicly,
securities to finance
pipeline from Duncan,
Okla., to the Memphis, Tenn., area, at a cost of $22,000,000 to $25,000,000.
Underwriter—Dillon, Read & Co. Inc.
Registration—Expected in October. Offering—Probably
the
construction
of
Ormond
10
it
was
with the SEC
nationally.
querque.
an
announced
company
issue of stock,
Office—5003
plans to register
Central Avenue, N. E.,
Albu¬
N. M.
of
25 FPC
authorized
to
provide
funds
to
temporarily finance the
$8,700,000 and $9,200,000, is being accomplished by means
of bank loans under a credit arrangement which will
in November, 1953.
Repayment of the loans at
maturity, plus the procurement of an additional $1,500,000 needed for the rest of the year, will be accomplished
mature
done privately
Riddle
mile
application
transmission
Pacific
&
proposing
line
to
extending
construct
from
the
Northwest.
Estimated
overall
a
* Seaboard Air Line RR.
the
of $4,350,000 equipment
company
cost
it
was
about
reported
Beane and
$4,000,000
plans
company
issuance
and
Union
bonds.
Securities
Corp.
(jointly); Lehman
Halsey, Stuart & Co. Inc.; Stone &
White, Weld & Co. (jointly).
Webster Securities Corp. &
Bids—Tentatively expected to be received about Dec. 1.
Transcontinental Gas Pipe Line Corp.
May 4 it was reported company may issue some con¬
vertible preferred stock before the Fall.
Underwriters
—Probably White, Weld & Co. and
Securities Corp., both of New York.
Stone
Webster
&
Virginia Electric & Power Co.
Sept. 3 it was announced company plans to sell 558,940
additional shares of common stock later this year.
At
current market price, the sale would amount to about
$14,000,000. Proceeds—For construction program. Offer¬
ing—Probably late in November
early December of
or
by competi¬
series N, to be dated Nov. 15, 1953, and to mature serially
tive bidding. Probable bidders: Stone & Webster Securi¬
in 30
ties Corp.; Blyth & Co., Inc.; Merrill Lynch, Pierce, Fen¬
ner & Beane,
and Kidder, Peabody & Co.
equal semi-annual instalments.
Stuart
&
Co.
Inc.;
Salomon
Probable bidders:
Bros.
&
Hutzler;
•
West Coast Transmission Co.
it was announced that company now plans to
$29,000,000 in l-to-5V2-year serial notes; $71,000,000
in 20-year, first mortgage bonds; and $24,440,000 in sub¬
ordinated long-term debentures and 4,100,000 shares of
common stock to be
sold to the public.
Proceeds—To
Seaboard Finance Co.
Aug.
11 it
reported company
was
do
may
some
financing (probably in the form of debentures)
of
end
this
year.
public
before
Underwriter—May be The First
finance construction of
Corp., New York.
was
of 10,000
sale
Canadian
1,490,000 additional shares of
shares at $2
November
or
per
share.
December.
Peace River
a
natural
field
to
pipe line from the
gas
western
Washington and
OregdfirUhderwriter—Eastman, Dillon & Co., New York.
announced that the company contemplates
of
14
issue
Westpan Hydrocarbon Co.
July 1/SEC granted Sinclair Oil Corp.
(no par), following completion of present offering,
capital
York.
February 1954.
or
this year. Underwriters—To be determined
stock
in
of
Probably bidders:
trust certificates,
1,466Juan
l-for-13
a
New
Underwriters—To be determined by competitive bidding.
(10/26)
and
areas
on
Co.,
&
Read
^ Tennessee Gas Transmission Co. (12/1)
Oct. 6 it was reported company plans to issue and sell
$25,000,000 of first mortgage pipe line bonds due 1973.
Inc., New York
issue
San
stockholders
first to
Brothers; Kidder, Peabody & Co.
was
third
a
offered
Underwriters—May be
determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce, Fenner
announced company plans future public
financing to secure cargo transport aircraft.
Sept. 3 it
Basin in New Mexico and Colorado to market
the
sale
Sky Ride Helicopter Corp.
Pacific Northwest Pipeline Corp.
be
Suburban Electric Co.
through Blyth & Co., Inc.
Airlines,
Aug. 11 it
the
Jan 29 company received FPC permission to file
Public Service Co.
was
Underwriter—Dillon,
Sept. 28
it Public Service Co. of Colorado
Oct. 13 it was reported company is planning to float an
issue of $15,000,000 first mortgage bonds, due 1984, early
next year.
Proceeds—For financing, in part, a $17,000,000 electric generating plant to be constructed in Denver,
Colo.
Underwriters—To be determined by competitive
bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.;
Kuhn, Loeb & Co.; The First Boston Corp.; Harris, Hall
& Co. Inc.; Harriman Ripley & Co., Inc. and Union Se¬
curities Corp. (jointly); Lehman Brothers; Kidder, Pea¬
body & Co.; Blyth & Co., Inc. and Smith, Barney & Co.
(jointly).
Boston
be Glore, Forgan & Co. and Kalman & Co.
(jointly).
it Storer Broadcasting Co., Birmingham, Mich. •
was reported company may do some financing,
with registration later this month.
Registration filed
May 19, 1952, covering 215,000 shares of common stock
(par $1) was later withdrawn.
All but 15,000 shares of
these were then outstanding.
Underwriters — Reynolds
& Co., New York, and Oscar E. Dooly & Co., Miami, Fla.
July 22, Thomas W. Delzell, Chairman, and James H.
Polhemus, President, announced that financing of its
1953 construction program, which will range between
company's 1953 and 1954 construction programs prior to
Underwriters—May
Lynch, Pierce,
Corp. (jointly);
Securities
Union
Offering—Expec^d in January
Oct.
maximum
a
Merrill
Inc.;
Co.
Oct. 8 it
arranging for long-term financing.
substitute
basis).
Kidder, Peabody & Co.
to issue
company
$4,000,000 unsecured promissory notes to banks, the
proceeds
latter to
Portland General Electric Co.
Halsey,
Otter Tail Power Co.
June
preferred
announced company plans to issue and
sell about $20,000,000 of securities (to consist of around
$12,000,000 bonds; from $2,000,000 to $3,000,000 of pre¬
ferred stock; and the remainder in common stock, the
Bids will be received at the office of Willkie, Owen,
Farr, Gallagher & Walton, 15 Broad St., New York 5,
N. Y., up to noon (EST) on Oct. 26 for the purchase from
which will be offered
cumulative
of
Brothers; Blyth & Co. Inc., and Stone & Webster
6 it
Aug.
fall.
some
Corp., Albuquerque, N. M.
&
and
Southwestern
Offering—Expected this
Co., Dallas, Texas.
Ripley
Beane
Securities Corp.
was
&
&
Fenner
Service, Inc. (Texas)
reported company is considering issue and
sale of $300,000 of 6% debentures due 1963 (convert¬
ible
into
common
stock).
Underwriters — Probably
Garrett
shares
Kidder, Peabody & Co. (jointyl); W. C. Lang-
Harriman,
Petroleum
475-mile
a
in November.
March
50,000
(par $100).
Lehman
reported
000,000 of 4V2 % first mortgage pipeline bonds to insur¬
both
sell
ley & Co. and Paine, Webber, Jackson & Curtis (jointly);
Natural Gas Co.
was
that this company plans to
1,300-miles pipeline from Canada to
the Pacific Northwest by the issuance and sale of $60,23
finance its proposed
ance
announced company later this year will
and
Underwriters — May be determined
by competitive bidding. Probable bidders, White Weld
either by expansion of the credit arrangement or by the
sale of first mortgage bonds.
Previous bond financing
Northwest Natural Gas Co.
March
was
issue
and
North Shore Gas Co.
sale
Westpan Hydrocarbon Co. below.
stock
Pipeline Co., Chicago, III.
Feb. 4 company filed an amended application with FPC
for authority to construct a 163-mile pipeline system at
an estimated cost of $40,269,000. Financing is now being
done privately through sale of $34,125,000 bonds. Un¬
derwriters—Glore, Forgan & Co. and Stone & Webster
Securities Corp., both of New York. Of the common
stock of this company, 83% is now owned by Northern
Aug. 4 it
estimated cost of $8,141,518. Underwriter—
Southwestern Gas & Electric Co.
& Co. and
New York State Electric & Gas
Boston
an
Co., New York.
Southwestern Development Co.
Telephone & Telegraph Co.
announced company plans to issue and
sell to its stockholders 1,004,603 additional shares of
capital stock on a l-for-7 basis. Price—At par (100 per
share.
Proceeds—To repay bank loans.
Underwriter—
None.
American Telephone & Telegraph Co., parent,
owns
91.25% of Pacific's outstanding stock. Offering—
Permian Basin
writers
a
Shields &
(jointly).
issue
the
Florida at
was
Not expected
Georgia Natural Gas Co.
was reported that an application is pending
Federal Power Commission for authority to
335-mile pipe line in Alabama, Georgia and
Sept. 28 it
Pacific
July 2 it
Thursday,.October 15, 1953
...
capital
extension of
in which to dispose of its
holdings of
Offering—Expected in
Office—1705—38th St.,
an
six mdnths from June 21, 1953,
Westpan and the
common
western Development
in
stock
Co.
Sinclair
South¬
384,860 shares
(52.85% ) of the stock of each of the other two companies.
Underwriter—May be Union Securities Corp., New York.
S. E.,
Washington, D. C.
owns
-
Continued
jrom
page
tremendous expansion of our
middle class market since
"Fortune", in a series of
articles on our changing American
market, estimates that during this
ing
9
a
tions
in
great
National
know
1947.
the
months
ahead.
Administration
is
We
Since
tries
Korea,
have
California
indus¬
tremely
the
ex¬
expanded
their
physi¬
anxious to prevent any cal facilities at a rapid rate. One
of the best measures we have of
major setback and it is possible
action may be taken in time to the amount of investment that has
year,
42% of our total income prevent even the/ slight down¬ been poured into increased pro¬
will go to consumers in this cate¬ turn I anticipate, jtt should be re¬ duction facilities is the amount of
gory.
Because these are persons membered that cyclical variations tax amortization certificates
who spend the largest portion of in our economy are a healthful
granted by the Defense Production
are several reasons why I believe their income, a high level of buy¬
phenomenon as lc(ng as they do Administration.
These certifi¬
this might be so. Incomes in this ing will be maintained. This buy¬ not result in largfe scale unem¬ cates represent scheduled
expen¬
ditures for new plants, plant ex¬
t:
country are still rising. Employ¬ ing is at the expense of savings ployment.
ft
ment is currently higher than it and is beneficial to our economy
pansions,
and
new
equipment.
California Economic Trends
has ever been and the demand in a period similar to the one
Our
statistics
are
not
complete
Conditions and California
outlays for such are running at
7% ahead of 1952.
about
If
the
expenditures
and
services
and
for
goods
for
by the
government
plant and equipment by
t."'
Since the de¬
industry
and
private
persons for labor remains very strong.
If which we are in.
This picture of
^national busi¬
should drop as much as 4% in the
unemployment should appear in mand for savings for capital ex¬ ness conditions gives us a frame¬
year ahead, this could be offset some
areas,
those involved are pansion is declining, it is only work
within
which;, we
might
by an increase in expenditures by very apt to find jobs in other lo¬ through enlarged consumption ex¬ examine the California situation.
consumers
of but 2V2%.
Is this cations. Americans are becoming penditures that we can continue Of
course, we do not have figures
likely to occur? In my opinion, more and more a single class mar¬ to maintain full employment.
entirely
comparable
to
those
We
are
increase
tures
very apt to experience an
in
that
consumers'
will
come
expendi¬
close
to
ket.
Out of the 47 million family
units in this country, 35% of them
have
disposable incomes some¬
Although
there
is
much
more
that should be said about the
tional
economy,
it
seems
to
na¬
me
available
economy
for
stud# of
the
total
but it is possible to in¬
vestigate the
same areas
of activ¬
equaling, if not exceeding, the de¬ where between $4,000 and $7,500. that all of this adds up to a down¬ ity with the thought of determin¬
crease
by other groups.
There This is a 44% increase, represent¬ ward adjustment of minor propor¬ ing basic trends.
but
they do cover the period from
October, 1950, to April, 1953, and
they do represent practically all
construction
lion
for
industrial
pur¬
During this period, $26 bil¬
poses.
worth
of
certificates
were
issued by D. P. A. of which Cali¬
fornia's share was 4.5%
or
$1.2
billion.
Since
our
state
received
9% of the total number of certifi¬
cates,
it
is
obvious
that
on
the
Volume 178
Number 5264
The Commercial and Financial Chronicle
...
(1463)
the
average
size
issued
cates
to
below
was
of the
rest
of
the
certifi¬
California
those
issued
firms
to
the
nation.
lating to investments in plant and
equipment.
However,
because
investments
are
the future growth of
few
this
will construct plants nearer
Of course, all firms
market.
cannot
hope
share
Time does not permit us to dis¬
cuss all the significant factors re¬
these
them
vital
so
to
California,
generalizations
might
be
of
result,
the
greater
a
market
of
some
and,
as
outlays
a
It is well known that California
led
the
struction
nation
every
in
home
con¬
of the post¬
year
in¬
vestments in plant and equipment
have gone into the manufactur¬
amounting
to
nearly 15%
Although in the
of the U. S. total.
first
months
seven
residential
of
this
construction
year
in
the
ing industries. Every industry has state's two major centers of
pop¬
experienced
some
growth
but ulation was about 26% above the
four—primary metals, transporta¬ same period a year ago, the state
tion
equipment, petroleum and as a whole is estimated to be
chemicals—accounted
$726 million out of
for
81%
or
running about 20% ahead.
total of $895
a
A
decrease
in
home
construc¬
million
going to the manufacture tion for the nation as a whole
ing group.
Of the non-manufac¬ does not necessarily foretell the
turing group, expansion of our same degree of
experience for
utilitiesaccounted for $173 mil¬ California. Our
state continues to
lion or 65% of the value of all
grow somewhere
between 35,000
certificates issued for non-manu¬
and
40,000 persons each month.
facturing purposes.
The
70%
It is
possible to break the avail¬
able statistics down by geographi¬
areas.
When
this
is
done,
cal
southern
California, as defined
by the northern limits of Kern,
Inyo, and Santa Barbara counties,
accounted for 54%
all
investments,
of these
data
finger
our
that
have
the"
industrial
with
of
the
down
entire
not
state.
since
dergone
a
modest expansion
very
As
program.
un¬
is
well
known,
the
present
plans for industrial ex¬
pansion around Fresno will raise
that
level
in
to
area
of
the
an
exceptionally high
expenditures
investment
coming
The total
ured by D. P. A.
definitely
as
meas¬
certificates have
strengthened
C
a
However,
it has not increased
diversifi¬
cation.
The
our
investments
have
on
west¬
our
would
the
on
since
States.
in
decline should be expected
year ahead.
We are still
a
the
far
behind
in
our
for
programs
em¬
increased
back
in
86%.
In
activity
our
7.8%
of
the
ac¬
in
marked
contrast
downtrend.
to
the
in
Jobs
this
States
and
higher
perienced
the
The
and
in
forces
study if
derstand
declines
that
we
we
are
be
sectors.
must
are
to
that support a low number of em¬
ployed persons per thousand dol¬
maintain
DIVIDEND
ly 400%—to the point where there
now
*
of
The
data> indicate
that
Cali¬
fornia's share of the manufactur¬
the
experts
all
war
ing certificates is somewhere
tween 5%
and 6% of the total is¬
sued in the United States.
below
California's
ihvestment
cilities
be¬
of
total
manufacturing
as
below
fa¬
share
our
of the total value added by manu¬
facturing
Annual
-All
that
of
if
go
reported
in
the
1951
Survey of Manufactures;
this
adds
still have
we
we
are
rate
will hit
this
to the
up
long
a
to
to raise California's
portion of the total manufactur¬
ing industry of this country. The
year
upon
fornia
D.C.
the
for
their
than
•
in
jobs
the
in
PACIFIC
ployees
has
been
local
more
CORPORATION
Directors of the American
Corporation
cose
meeting
clared
ahead.
cannot
of
the
and
under
examine
that
the
share
all
fall
but
49%)
while
the
on
for
add
rate,
million
nearer
post¬
birth¬
high but
but 30%
we
of
cents
($1.25)
(50^)
share
ers
on
at
will
people
pres¬
structure
omy
by
1960,
a
and
population base becomes
the
tire
permanently
industries
as
well
ones
as
increased
will
new
the
Manufacturing,
larger, the demand for goods will
new
of
California
by
while the trades, finance
services are declining.
Each
be
and
developed
branches
of
old
created.
is
bringing
closer
us
employment pattern of the
United
States.
As
to
en¬
California
grows we can expect this tendency
continue..
Manufacturing will
to
become
source
still
important as a
jobs while the trade and
of
more
Here, this increasing
not pouring into a service industries may decline in
single big city. Instead, through¬ relative importance.
nation's manufacturing center.
It
I
have failed to mention the
out the state, we are witnessing a
has strengthened our economy
by
fact that approximately 20%
of
increasing the absolute size of our nearly fantastic growth in subur¬
the total
manufacturing employ¬
plant -and equipment but rela¬ ban living. This living is respons¬
defense program has not resulted
in a westward movement of the
tively,
our
physical
in about the
same
facilities
are
proportion they
population
ible for
late
is
new
the
markets that
to
consumer
stimu¬
spend
his
most
significant developments has
income for products quite differ¬
ent than those he needed when he
been
the
resided
prior to Korea.
were
expansion
One
of
of
the
steel-
our
making equipment. In my opin¬
ion, this expansion foretells fur¬
tion
in
the
east.
stimulates
the
Suburbaniza¬
demand
for
sore
spot,
one
that
we
great
the
concern
to
$0,311/4
$0.311/4
b> c.
Reynolds,
Secretary-
••••••••••••••••••••
GOODYEAR
NOTICE
DIVIDEND
The Board
of Directors
has declared today the fol¬
lowing dividends:
$1.25
per
quarter
Preferred
RAYMOND
share for the fourth
of 1953
upon
the $5
CONCRETE
ers
140 Cedar
of record
at
the close of
cents
Common
CO.
per
share
Stock,
upon
Street, New York 6, N. Y.
Soil Investigations • Foundations
business November 16, 1953.
75
PILE
Stock, payable De¬
cember 15,195 3, to stockhold¬
Heavy Construction
the
payable De¬
The Board of Directors has this
cember 15,19 5 3, to stockhold¬
ers
of record
at
The
day declared
the close of
business November
16, 1953.
dend
Goodyear Tire & Rubber Co.
of
75*
quarterly divi¬
a
per
share
on
the
Common
stock, payable
November
By Arden E. Firestone, Secretary
Ohio, October 7, 1953
Akron,
2, 1953 to stockhold¬
ers
The
M.
Greatest
of record October 20,
M.
on
1953.
UPSON, Chairman of Board
G.
F.
FERRIS, President
Name
October 7, 1953
in Rubber
This is of
I believe
me.
^worCD^MDE
aircraft
industry is an inte¬
clothes, processed foods,
grated part of the American way
ther
development of subsidiary garden
furniture,
barbecues,
a
of
life
as
integrated
as
the
industries and, thus, still greater second car, more roads, schools,
automobile. We will have our dif¬
job opportunities.
public
buildings,
air ficulties
During
this hospitals,
from time to time the
coming year, there will be areas conditioners, home freezers, and
same as the
casual
11-2-53
have to be
the alert to combat.
no
$1.25 Sinking
Fund Series
$1.25 Series 11-2-53
the close of busi¬
ment in this state is found in the
aircraft and parts industry.
Many
people point to this as a potential
on
$1.25
Preferred Stock,
par value
Secretary
way.
measured
as
$1.25'
$25
WILLIAM H. BROWN
econ¬
continuously under
are
change
be
and
employment, is increasing its re¬
15 lative
importance
in
our
total
date structure
than the end of World War
our
aircraft
11-2-53
October 19, 1953.
electrical
have nearly
II.
As
the
Per
Share
5% Sinking
Fund Series
on
of record
Rate
Pay-
November 2, 1953, to sharehold¬
ness
this
1953, as follows:
able'
the
stock, both payable
common
15.
Preferred Stock,
$100 par value
5% Series
11-2-53
per
on
per
of
Date
dollar
one
the five percent (5%)
cumulative preferred stock and
our
contin¬
population at the
we
and
Oct.
on
and
parts industries testify to the fact
that
important changes in the
Vis¬
at
dividends of
cents
Stock
corporation, payable to
stockholders of record
their regular
October 7, 1953, de¬
twenty-five
fifty
7, 1953, the Board
Preferred
Dividend Notice
since
Oct.
of Directors declared regu¬
lar quarterly dividends on
Employ¬
year ago.
If the Administration
has its way, we can expect a still
further
decline
in
the
months
We
•
On
entirely at the
than 4,000
•
AMERICAN VISCOSE
a
subdivisions
FINANCE CORPORATION
CO
C7
Washington,
levels.
;
;
DIVIDEND NOTICE
Cali¬
area.
Duting the past year,
increase in governmental em¬
vehicles
the
the
all time
an
accounts
to
ent
fact
ways
during
This
population increase. If
ue
in
well
as
This is
share
period.
NOTICES
NOTICES
employees depend¬
the United States Gov¬
importance of the phenom¬ machines
The
investment.
DIVIDEND
more
equipment industry
Industries
enal growth in population here in has grown the fastest (an increase
with a high
of 641%). Recent increases in em¬
employment invest¬ California cannot be
overempha¬
ment ratio received but a small
sized. This is the dynamic aspect ployment in the food processing,
portion of the total certificates.
metal, machines, motor
of our economy and has confused primary
lars
fornia.
same period. Federal em¬
ployment alone has gone up near¬
of
Growth
overex-
as we
long
as
products
145% dur¬
discuss
Population
is
ing the
un¬
market
this
have
numerous.
like
watch
to better
California
our
in
ex¬
I cannot see
the horizon that fore¬
per
by the Federal Government
might
private
present,
on
will continue.
increased
has declined
any
the
anything
a scarce labor
supply, wages will
million in 1953. Total employment
remain relatively high and a
high
by state, local and federal gov¬ demand
for
consumer
ment
that
At
the
for the immediate future is not too
panded but
the like. Increases in this
offset
in¬
on
rates
greatest number of jobs, expand¬
ing from 393,000 in 1940 to over 1
and
construction
not
,
.
state
will
conclude
are
nation's
better
highways, schools, hospi¬
tals, public buildings, sewers, and
area
but
1940
category.
Today, I would manufacturing
How¬
three, population, ever, all of the 18 major manufac¬
were
prominent
before
Korea.
industries
have
employment, and income, all of turing
expe¬
Also a large segment of these in¬
an
which have a significant bearing rienced
increase in employ¬
vestments, over 38%, has gone
ment since 1940.
Since that time,
upon the demand for
goods and
into such industries as the util¬
the furniture industry has been
services by Californians.
ities, petroleum, and chemicals,
the slowest to expand
(an increase
gone into the same industries that
help
in this state
verge of a sudden downturn.
reflected
in
economy,
we
will
continue
to
capita
retail
sales. move in the direction of better
Throughout the country there has balance
and
integration.
New
category increased by 43% from
been a tendency to narrow the
gap technological developments in all
1940 to 1953 while in the remain¬
between the high
and the low fields of our industrial and social
der of the nation, farm
employ¬
per capita income states, but Cali¬ structure
ment dropped 36%. In spite of the
can,
and will provide,
fornia remains
21%
above the ample
increase in agricultural employ¬
opportunity for future in¬
U. S. average.
dividual
as
well
as
community
ment, farming has become rela¬
Californians are spending their growth and expansion. Advances
tively less important as a job
incomes. It is estimated that total in
such industries as the petrol¬
source
as
other industries have
retail sales are running about 11%
expanded.
eum, chemical, electronic equip¬
ahead of last year.
Some busi¬
The majority of new jobs that
nesses
are
enjoying very high ment, bio-chemical, atomic energy
have been created
in California
sales while others are
experienc¬ equipment and air transportation
over the
past 13 years have been
ing severe competition and can¬
equipment will, along with our
cconcentrated
in construction,
not look forward to
any immediate
growing
manufacturing, and government.
population,
bring
in¬
improvement. Here, as elsewhere^
Manufacturing has supplied the certain industries
creased business activity to Cali¬
1940
national
ernment
reason
total
ways remain the measuring stick
encouraging.
for a high level of business activ¬
Per capita incomes in California
total employment.
ity.
Although
California
could
have been consistently above the not
Farm employment in California
hope to extricate itself from
average for the rest of the United a
has
continued to increase since
depression - infected
national
for
steadily
no
has
Today,
counts
ent
see
while
cannot
comes
Wage tells a downturn of business ac¬
are
increasing and average tivity of significant proportions. I
earnings
are
close
to
all-time doubt that the next 12
every
months will
job supported 2.6 people whereas highs. Farmers in California are see a
higher level of sales, em¬
today every job supports but 2.4 having the same experience as ployment or income than has ex¬
persons. In 1940, business activity they are in the rest of the United isted over the
past 12, but it must
in this state furnished 5.5% of the States.
Their
incomes
are
off be
recognized that an increase
total jobs available in the United about 9% or 10% and the outlook over the
previous year cannot al¬
Califor¬
I
1940
words,
in
and
population has jumped
ployment
increasing
been
1946,
why
1 i-
fornia's economic base.
it
construction
has
partially
years.
investments
effect
as
71%
are
San
that have
an¬
a change in
requirements or
Our
ernment has
be
can
in maturities would
same
Public
Jose
areas
be
de¬
national.
Diego, Fresno, Stockton, and San
four
to
some
course,
payment
market
nia
are
es¬
building
seem
construction
ticipated. Of
ern
California—areas
growth
in
crease
real
our
permits for the state
us
to place'
have the
soft spots within
kept
housing and,
significant
a
Because
any extension
enables
upon
pace
market.
from
came
running ahead of sales,
northern
California received the remaining
47%.
A still further breakdown
will need
areas
therefore, serve as
bolstering factor to
tate
of the total of
while
other
of these who
tion.
other
may
unprofitable.
prove
has
units,
of
the
gain
a war period.
Last year, the state
in constructed about 170,000 dwelling
order.
By far the largest share
to
with the increase in popula-I
pace
43
BANKING
NOTICE
DIVIDEND
—
that will experience a decrease in
any
capital
This
fornia
expenditures
as
whole
a
experience
a
is
but
very
Cali¬
apt to
total investment fig¬
by private industry every bit
great as it has during the past
ure
as
12
months.
forecast
concerns
is
to
One
the
reason
desire
capture
a
of
for
this
national
larger
por¬
tion of the California market.
order to
accomplish this,
many
In
of
number
demand
of
is
rapidly becoming
other
products.
growing
a
and
is
"mass market"
for any product that fits into sub¬
urban
life.
Employment in California
California's
shows
growth
The Chase National Bank of the
New York
people of Detroit will
continue
-
however,
to
experience
the
represents
a
strength for
aircraft
source
our
future
50c per
theirs:
the
industry
of
at
The
employment boom next phase of the
development of
signs of a let-up. The transportation is unfolded.
in employment over the
Since I
no
am
optimistic about the
past 13 years has more than kept future of
California's employment,
share
on
THE
CHASE
OF
THE
BAHK
CITY OF NEW YORK
City of
dividend of
the 7,400,000 shares of
holders of record
the close of business October
21,1953.
The transfer books will not be closed"
in connection with the
HATIOHAL
a
capital stock of the Bank, payable
November 16, 1953 to
great
economy.
know-how being nurtured in
that industry will
place us in a
competitive advantage when the
has declared
payment of this
dividend.
KENNETH C. BELL
Vice President and Cashier
A"
■44
The Commercial and Financial Chronicle...
(1464)
Thursday, October 15, 195$'
could release from rats from their
BUSINESS BUZZ
Washington
A
BeKnd-tlie-Seene Interpretations
•
•
•
r.
Flamingo
I'll
V/hf#
y|/~f
JTjL i t/fJb
Capital
from the Nation'*
ships. Make it kind of fuzzy but
point the right way.
help.
call
you.
Library of Congress OHBC'er
Lincoln
fool
all
Flamingo
.
The
in
covered,
an¬
participate
any other
dead, or
the characters who
in this drama and
who
between
similarities
alive
characters
or
ought
maybe
drop
to
dead, is just rank coincidence.]
[The scene is of men, all
well-dressed, alert-looking,
about
seated around
ble in
an
middle
below
or
age,
luncheon ta¬
a
exclusive club in
an
imaginary great world capital.
It is the capital of a wealthy
Republic which is pouring out
vast
treasures
and
building
mighty military machines to
the world from conquest
save
by the barbarians of
erous Blue State.]
[Those who
vened
bers
are
have
business
Flamingo
"One
Flamingo—Well you can fool
The
catch up
C.
I
But
—
what Arturo wanted
about
Air
help
that like
on
to
Hundred Billion Club."
With
exception, the members
are
(a) key government offi¬
cials below the Cabinet level,
(b) whose minimum pay is
12,000 pesos per annum, (c)
their
served
C.
A.
know
at
Sinny Strong and Charley
all seem to be teaming
Motor
up
budget-balancing
this
on
Pumphrey is talking all
You've got to ad¬
the lot.
over
mit Pumphrey goes across.
Welfare
gov-
OHBC'er—We
Dept.
Flamingo—Well, it had to be
H-bomb.
an
because
Not
I
am
the senior member here, but be¬
■
ernment
it
see
sufficiently long to
spend 100 billion pesos
while
they were employed
(hence the name), and finally
(d) who subscribe to the fol¬
lowing mottoes:
P
for patriotic to one world.
for indispensable to gov¬
I
ernment.
S for state
dedicated.
[In
irreverent chatter
among the sophisticated of the
capital, they are commonly
referred to merely as "PA's."]
[The time is approximately
[Arturo
]
j
of August, 1953.]
Flamingo
is
the
only member at the Cabinet
level.
*
He is Minister
fense
Production.
of De-
He
opens
discussion.]
the
hauer
decided
he wouln't
be able to balance the
or
before
that
'56
time
of
could
to
had
we
work
but
budget
him
on
has
for
his
and
—
Yeah,
neck
stuck
way
budget
and
the beam with
on
PM.
older
than
remember
can
dared oppose a
fellows. I
nobody
balanced budget.
you
when
Let this idea
keep coming home
from Pumphrey and his crowd
day after day, week after week,
for
a
people
couple of years, and the
will again fall for the
idea it is
good thing.
a
OHBC'er—Listen,
all agree
A.
guys,
this trend toward
cutting spending is
thing—
C.
Slop
a
dangerous
And when the
—
Flamingo—Gentlemen, we are
losing ground. If we are going
stingy
a
to promote the world state with
got all afternoon. We all agree,
point one, that there is a great
danger of the budget being bal¬
state province, as
in line. We have lost
our own
it were,
controls
the
over
apite of the
us)
(if
economy,
unplanned
best maneuverings
could
work
even
Prime
on
Burney
Homer.
Minister
in
by
Now
Roosen-
hauer is bragging about our free
■economy
and our free markets
nnd all that rot.
nomic
-
controls
However,
are
not
every-
..jthing. There is developing
more
menacing
eco¬
a
far
challenge, and
it is coming up fast. To kick off
this discussion I have brought in
an
old personal friend of
Sure, he is not
us
all.
OHBC'er, but
Tie is long known individually
to us all. He has given
journal¬
istic expression to our interim
and limited
an
goals. I present
our
beloved
tive
and
friend, that construc¬
Oxonian, writer, scholar,
terror
of
Ministers of De-
Tense, Cockey A. Slop.
C. A.
Slop—I
can
assure
anced
Arturo is not seeing little State
up
for
too
defense.
time.
some
Point
two,
something
about it. The question is what
all
do
we
on
want
that
to
do
do about it.
one
Let's get hot
pronto.
Pentagon OHBC'er—We need
Flamingo—It'd better be good
because
the
in
what you
the
boys,
are
Blues
weeks*
seven
you
alfi
to do. Get-
it.
from
hand
ond
Dullard.
A1
this budget-balancing,
If
expendi¬
ture-cutting disease
goes
on
somebody will get
into
Center
Intelligence. McCarty couldn't make
it,
but
some
got is
Prime
Minister
Several—Ohhhhh, ugh.
Weapons Research OHBC'er—
more,
ass
on
the
will
Hill
one
we're
thing. Don't forget
announcing
one
public
just
take
bomb—the
will
Hit
the first—that the
Blues have shot off. The public
naturally
as
thinks it takes
a
couple of years
Blues to Junkpile what
for the
they call atomic weapons.
Flamingo—Sure, I know that.
The
public doesn't know these
time. Turning—Joe, you worked
for A1 Dullard. Go work on him.
things. The public doesn't know
that Munhall semi-publicly an¬
Tell him to feed up Windstraws.
nounced
Tell him
it
convince
to
Windy it
the
real thing.
You can
certainly get Gil Donne—he be¬
lieves the worst possibilities—to
was
it
done
tell
Dullard—and
am
in
Besides
way.
any
he's
government. Now
the
make
would EVER make
a
position to know things
I
he
knows
I
convince
can't
will
over—once
Air
Farce
forget
would
start
working
they find what
.
.
...
fast.
mean
How
they get their H-bombs
We
have told
people
we
H-bomb
or
the
Blues wouldn't
anything
them to
or
we
Hades.
up
I'm
the
dare
would
The
idea
In
less
than
going to
Blues
and
two
announce
have
the
H-
many
means
to
burn
American cities.
Ass't to
thing.
one
the
of
Guaranteed
Wage—Report of the Committeeon
Economic Policy—Chamber
of
of
Commerce
Washington
States,
paper—50c
(lower
quantity orders)
Unitecfc
the
6,
D.
prices
C.—
or*
Money, Debt & Economic Activity
—
edition
2nd
Hart
—
Prentice
Albert Gailorcfc
Hall, Inc.,
New York 11,
N. Y. (cloth), $9.
—
Fifth
-
Avenue,
Monetary and Banking Legislation*
of the Dominican Republic 194T
—Henry C. Wallich and Robert:
.
OHBC'er—Arturo,
have the best atom
blow
A-bomb.
an
(continuing)
the point is
that we've got to work fast and
he
boondoggle he's got
start
so
doubted that the Blues
that he
bombs
They
finer
industry can handle,
committee
here.
much
than most
that
you
A-bomb, that the
were
Windstraws this is the real Mc¬
a
that
once
tolerances
months
him
staff
Economics
subcontractors just
400
took
to
his
to
if
in
is
against them when Lyman
a
And another
Flamingo—Look, you guys at
AEC get your intelligence sec¬
(This column is intended to re¬
flect the "behind the scene" inter¬
pretation from the nation's Capita0
and may or may not coincide with
the "Chronicle's" own views.)
doggone smart.
so
and he has got to
guy,
sure.
leery of emergencies. He talked
lic Relations OHBC'er—Arturo,
when you do
this, write the
re¬
lease
will
the
so
it
have
Blues
IMPLY
hundreds
bombs and the
means
them, but don't just
it
so
had
of
Federal Reserve Bank:
(paper).
Ports of the World—4th Edition—*
latest
information
de-*~
scribing conditions in 135 of the
most important ports in all sec<»
tions of the globe—North Amer*
ica Companies, 1600 Arch
St.,.
Philadelphia 1, Pa. (paper).
H-
to deliver
Fix
say so*
that it could be said they
discovered
—
of New York
contains
Secretary for Pub¬
a
Triffin
some
kind
horrible germ warfare that
they
was
We Trade
of
RIVERSIDE
PM.
Pentagon
about
that
of
a
OHBC'er
lulu
would
of
on
—
scare
emergency
the wits out
including
Capitol Hill?
Flamingo—I
CEMENT
What
an
everybody,
suckers
am
all
"B"
those
ears.
Go
Analysis Available
on.
2nd Pentagon OHBC'er—Well
we
know the
of
an
Carl Marks & Co. Inc.
Blues pulled one
explosion August
FOREIGN
twelve.
department boys under his bed.
Were
tried
pretty sure it was an Hbomb, but we don't know. We
to
announce
SECURITIES
SO BROAD STREET
Atomic Energy OHBC'er—We
Charley Motor over there at
Defense is really fouling
up the
works. We had Congress all set
idea
the
modified B-29. We
thought that was the best prop¬
aganda for more money for the
Air Farce.
Maybe we weren't
have
a
carrying aircraft in the world.
another grave emergency.
heck
you
burn
Flamingo—Right! We haven't
we
is
he
Blues
the
all
that
around
is
Coy the boys from John Taber's
may
Iteep
careful
—that
world
welfare for all, we must at least
AEC-OHBC'er—But
announce
Labor
we
got to get this rolling,
going to propose we get this
announced by Lou Windstraws.
much
2nd Treasury ORBC'er—I'm a
little
we
I'm
be
balanced
a
Pumphrey is
cause
plenty
admit Roosen-
got to
you
the
need
swing 'im.
Treasury OHBC'er
out
for servants of progress.
for anonymous always.
N for never paid sufficiently.
T for tenacious for world
welfare.
,S for sure always of their se¬
cret goals.
A
middle
agreed before when Roosen-
hauer
,S
the
all
that
undiscovered
Pumphrey
Slop—Well,
thing.
swallow
Flamingo—OK
were
talking about.
and
19-jet
a
people
the
an
could do the job
we
we'lT
make it easier for them
It will
Cockey,
bet,
And!
—
military and production genius-
Minister of Finance.
Flamingo—You
convince
the BlueS have
budget-balancing
nonsense
that is beginning to
take hold under Pumphrey,
the
OHBC'er
announcement
your
discover the Blues have
to talk
me
get by if:
the people;
you
of
bomber. That odd number will
this
was
Farce
after
sure
am
that
most
most of the time.
motor age. He
Slop
thing Lincoln didn't
is
fool
you
with the atomic age.
A.
other
discover
Yeah, Charley is
can't
—
about
What
—
most of them most of the time..
find them.
still in the
...
last November?
fast
men
belong,
OHBC'er
One
chopping those
as his nosey
Republicos can
is
as
to
all the time
This was a brilliant adap¬
tation to Congressional ignor¬
ance that nobody much kicked
about
during
War
II.
Now
Charley
things off
you
people all
which I, ahem,
didn't dis¬
cover
two things. One is that
you can fool most of the people
later dis¬
given
say,
could
the
That great saint
—
party
a
fortunately
mem¬
semi-secret
a
have
we
we
bear down
con¬
one
who
of
peans.
treach¬
a
thus
are
luncheon
at
of
should
was,
three times
things as was
or
some
the extra hardware to the Euro¬
nouncement.
.
of
Then when the surplus
world-shaking
apocryphal
two
us
needed.
one
[Any
many
being an hysterical
act of a possibly
same
drama
.
.
give
as
said
once
of
time.
of the
to
Thanks, George,
—
on
—But
M,
can't
WASHINGTON, D. C.—
"DECISION
ACTION"
I'd be glad
to
get
it,
Roosenhauer
but he shied
to
off.
TEL:
HANOVER 2-0050
•
SPECIALISTS
NEW YORK 4, N. Y.
*
TELETYPE NY 1-971
LERNER & CO.
Investment Securities
10 Post Office Square, Boston 9, Mash
Telephone
Teletype
HUbbard 2-1990
BS 69
@FedFRASER