Full text of Commercial and Financial Chronicle : October 18, 1951, Vol. 174, No. 5056

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UNIVERSITY
OF MICHiGAN

ESTABLISHED 1S39

18.1951

OCT

ADMINISTRATION

BUSINESS

LIBRARY

Reg. V. S. Pat. Office

New

Number 5056

Volume 174

\

EDITORIAL

'

Undei the Tent"

changeth, giving place to new.

By C. E. WILSON *

This

generalization of the poet can be applied al¬
most universally in this day and time. There are
a
good many who seem to suppose that these
changes are synonymous with progress, that the
new order which is replacing the old is of neces¬
sity and obviously better than the old. Indeed
it would appear at times that these malcontents
proceed on the assumption that whatever is, is
wrong.
With this view of the matter we find
ourselves in sharp disagreement.
Change and
improvement are not synonymous in this instance
any more than in millions of others.
'
~
Yet in

real

some

the times

sense

are

new,

and
to

-it would be idle and foolish" to shut our eyes

Nowhere

fact.

the

perhaps is this truth more
the moment than in international

observable at

Supply-Demand Stalemate
By EDWIN B. GEORGE*

.

Director, Dept. of Economics, Dun &

President of General Motors

Citing old Arabian proverb
tration of totalitarianism in
tive

accuses

illustrating gradual

as

nation, General Motors

and says

as

we are

same

*

growing defense program and
those who feel that there are now too many tired mar¬

tionary potential of

.

time, divert attention from

The title I have chosen for my talk, as most of you
know,. is "The Camel's Nose Is Under the Tent." The
expression comes from an old Arabian fable, and to
an Arab it spells trouble and disaster.
The fable of the
;
Arab and His Camel goes something

-

>

changes reflect themselves in
the Far East, where the Korean war and the
muddled Chinese situation speak eloquently. They
These

relations.

.,

like this:
One
his

everything else Western is the order

day. Nearer home the same virus has
struck in Iran, and in Egypt and is quite possibly
the

and

It

what is
;

•

Continued

..

on page

32

earner had

the

not

well.

as

may

but

otherwise

;

little

more

fined

if

room

the

cards.

I have

Edwin

B.

George

con¬

during this fiscal year
assumptions about highly mercurial
and arbitrary matters would have to be made for a
longer look. These concern primary upward revisions
in military program, of which the now widely adver¬
tised
expansion of the aircraft program from 95 to
140 groups
(composition as among types of fighters,

I

my

also plant your forelegs within," said

in

myself

because

the

too

developments

to

many

Continued
address

"An

by

Mr.

George at the 23rd Boston
Distribution, Boston, Mass., October 15, 1951.

Mr. Wilson before the Dallas Chapter, Society
for the Advancement of Management, Dallas, Texas, Oct. 10, 1951.
address

probably not upset a near
stalemate if it were

supply-demand

Arab, moving a little to make room, for the tent was small.
Continued on page 34
*An

for defense spending to hold them all up, seems
likely to wind up in little better than
a draw during the current fiscal year.
My own estimate is (1)* that the"
trends in both aggregate supply and
demand
will
be
slightly upward
through the remaining nine months
of this period, and (2) that although
the
advantage in the race should
still be with demand it will be so
slight as to exert little new upward
pressure on prices in general.
The
prospect of another turn in the costprice screw, as through a new round
of wage increases, is a separate ques¬
tion, but even a successful flank at¬
tack on the indexes from that quarter

would

only

forelegs within the tent. It
difficult
standing without."

by

CONVENTION ISSUE READY

NSTA

-

camel, who had been turning
side to side, said, "I

take

place
is

an

neck

will
C. E. Wilson

/

accordingly, definitely worth while to
effort to gain a real understanding of
taking place. "Reform" of the New Deal

is,

make

.

his head from

"You

■

that

The

regarded as a vital link in the British life
line. Not only Britain, but most of the remainder
of the world has a stake in what takes place in
-

in
thrust his

looked in.
me put my
is cold and

put his nose in the tent but his head

oil, and the Suez Canal has long

regions.;

a
under

found

been

these

*

'

>

"By all means, and welcome," said
the Arab, and turned Over and went
to sleep. A little later he awoke and

incubating elsewhere in this part of the world.
Britain as well as Iran is suffering seriously from
lack of Iranian

*

camel gently
the flap and
"Master," he said, "let
nose in your tent, for it
stormy out here."

stewing in India and surrounding regions,
where anti-British, anti-French,v anti-Dutch and
of

\

cold night, as an Arab sat

tentj

nose

are

anti almost

'

'

our

kets

inflation evils.
•

by the infla¬

The debate between those who are awed

controls reduce rather than increase essential

materials supplies and at

j

supply and demand factors. Finds output of goods
gradually increasing along with steady rise in consumer
expenditures, but not enongh to be of particular conse¬
quence to public policy.
Predicts civilian supplies will
be more plentiful than in World War II.

alternative to
opposing.
from overpreparedness,

our economy

j

in

government of using present emergency to

Warns of danger to

Bradstreet

Reviewing : recent business trends and the immediate
outlook, Mr. George foresees an approximate balance

pene¬
execu¬

promote regimentation under false assumption that this is
best way to get job done. Urges removal of price and
wage controls during defense period
shifting into the very economic system

copy

a

The Immediate Outlook—A

Camel's Nose Is

As:-We' See It
The old order

Price 40 Cents

York, N. Y., Thursday, October 18, 1951

on

page

Conference

30
on

NEXT WEEK—In addition to the usual issue, the

week an 84-pige special supplement devoted to the Annual
Convention of the National Security Traders Association at Coronado, Calif.

CHRONICLE will publish next

DEALERS

State and

in

Municipal

U. S. Government,
Stale and

Municipal

Securities
telephone:

R. H. Johnson & Co.

STATE HUD MUNICIPAL

600 Branches
across

BONDS

Established 1927

HAnover 2-3700

Bonds

Canada

Monthly Commercial Letter
INVESTMENT

SECURITIES

-

:

'

upon request

'

Bond

Chemical
BANK & TRUST

Street, New York 5

Troy

-

Buffalo

Albany

Allentown

Washington, D. C.

Massachusetts

Second Fund
Prospectus fmm
VANCE,
Ill

authorized dealers

or

SANDERS & CO.
Devonshire Street

i'

'

,

Los

Angeles1 "




Chicago

Bond

Dept. Teletype: NY 1-708

Pacific Coast &

THE CHASE

Direct

Private

Street, New York, N.

Toronto

New York Agency: 20

Exchange PL

BONDS & STOCKS

Boston

Los Angeles •
•

Honolulu

New

Y.

CANADIAN

DEPARTMENT

Goodbody

Chicago

Analysis

8t

Co.

Dommiox Securities
Grporatiox

ESTABLISHED 1891
MEMBERS NEW YORK

England

Public Service Co.

Quoted

Principal Commodity
Security Exchanges
•

THE CITY OF NEW YORK

OF

Portland, Ore. San Francisco Los Angeles

Members of

San Francisco

NATIONAL BANK

Sold

^

Wires

DejsnWitter & Ca.
14 Wall

Bought

and Bonds

Office:

CANADIAN

4

Stocks

and

BOSTON
New York

Head

Seattle

Hawaiian Securities

Investors

of Commerce

Scranton

Williamsport

Wilkes-Barre

ST., N. Y.

The Canadian Bank

OF NEW YORK

Harrisburg

Providence

BOND DEPARTMENT

THE NATIONAL CITY BANK

Department

PHILADELPHIA

BOSTON

COMPANY
30 BROAD

64 Wall

STOCK EXCH.

115 BROADWAY
NEW YORK

CHICAGO

40 Exchange Place,

New York 5, N.Y.

Teletype NY 1-702-3

WHitehall 4-8161

request

IRA HAUPT&CO.
Members New York
and

Stock Exchange
Exchanges

other Principal

111 Broadway,
WOrth 4-6000

105 W. ADAMS ST.

upon

Boston

N. Y. 6

Teletype NY 1-2708

Telephone:

Enterprise 1820

\

2

The Commercial and Financial Chronicle

t

..

.

Thursday, October 18, 1951

(1450)
;
t

The

TRADING MARKETS IN

N. Y. State Electric &

Puget Sound Power

Gas

in the investment

& Light

(The articles contained in this forum

Service

they to be regarded,

are

as an

A

5

The

ing

in

security I like best at the
stock

preference

Standard

Fruit

and

of
the
Steamship

Company.

Rights & Scrip
Since 1917

This

stock

represents the
senior capital
the

of

ppNNELL & CO.
Neva

York

Exchange

York Stock

New

Curb Exchange

BROADWAY, NEW YORK 5

120

Tel.

REctor

2-7815

Co.

Moore

as

Fansteel

as

LD 33

Tele. LY 83

HumimuiHUUinunnniiininiHin

trading markets in

CANADIAN

Best"

other industries.

dividend.

to assets and $3

entitled to re¬
dividend as is paid
is

it

same

shares. All arrears

on

the preference were

common

cleared in

1945 and the stock received $5

in

dividends in 1950.

kets
m a

t

nine
years

lly

earnings

10

years

$1,600,000

about

were

average

annually. For 1950, net earnings
amounted to $1,898,305 or $17.87

share

on

ternatio

tors

purchasers

148

fire

craft

Tel.

State
CA.

on

request

St., Boston 9, Mass.

7-0125

Teletype BS

:

259

m^^^l^Y\jrelep^

or

used orig¬

Cone Mills Common

store an
electrical

or

scientific

Foote Mineral Co.

applica¬

General Aniline & Film "A"

by Bell Telephone,

used

are

in television,

of
in-

n a

ex¬

tions in electrical circuits. Capaci¬

proximity fuses, air¬
equipment and

control

the advent of television and other

1

the preference stock. Uncertainties,

For the first six months of 1951 a

Information

having mianifold

now

and

industrial

life

capacitor

in

charge'

but

form,

and

great

a

device

a

to accumulate

inally

of pros¬

in the light

is

electrical

perity and in¬
creasing in-

the

THERMO KING RY.

:

the layman,

For

ten

longer

y

:

condenser

After

activity

much

has

pectancy.

dustriai
last

the

For

U.S. THERMO CONTROL

ca¬

and

rating

similar

of

which

conventional

the

of

size

pacitor

mar¬

or

branch offices

forty-four

ally stable characteristics which
approximately one twentieth

the

current

levels.

Fansteel's

is

in

the

e r 1 a

to a detailed dis¬

be devoted

developed new demands and pses
for its products and services. Out
of many products, I have selected,
as an example, one new product,
a tantalum capacitor of exception¬

s

decline

from

our

no space

of research are now begin¬
ning to pay big dividends as tech¬
nological progress in industry has

caution

decline

probably

NY 1-1557

New Orleans, La.-Birmingham, Ala.

years

\
a

St., New York 4, N. Y.

HAnover 2-0700

:

presentation,

methods,

Exchange

Corporation
"

short

a

cussion of individual products and

when

security

25 Broad

Stock Exchange
Curb Exchange

York

chemical, aircraft, automo¬
tive, electrical manufacturing and

general price level and

if

and

New

serves

LEVY

time, I offer

will

price

the

per

We maintain

Metallurgical

the

to

New York

Mobile, Ala.

suggest that "The Security I Like
Henry C. Keister

is callable
share, and has prefer¬

addition,

Co., New York City. (Page 30)

V In

New York Stock

this

Members

Direct wires to

v

(Common)
At

on

Lynchburg, Va.

&

'

stock.

ceive the

Scott, Horner &
Mason, Inc.

S.

Curb Exchange

of

at $110 per

In

U.

Steiner,Rouse&Co!

79 V2

consists of

ence

to

Associate Members: New York

capitalization

common

Levy,

M»mber$

and callable
possibility of
very attractive capital gains and
adequate yield on the stock of a
soundly
financed
and
growing

Members:

The

stock.

J.

Robert

—

United Corporation—E. Bates Mc-

Partner, Robert J. Levy & Co.

The preference stock

Handley Hardware Co.

(common)

Partner, Robert J. Levy & Co.,
New York City. (Page 2)

can

ing preference
and
264,504

Dan River Mills

in

the

offers

110

preference

shares

American Furniture

subject

ROBERT J.

106,234 shares
of participat¬
Trading Markets

are

preference stock currently

company.

or

Bought—Sold—Quoted

Kee, Partner, Richard W. Clarke

selling around

ahead

bonds

C. Keister
Co., New York City (Page 2)

&

tax.

com¬

loans, notes
of

Members

The

bank

no

not

are

income

at

Louisiana Securities

C.

Keister, Partner, H.

there

pany, as
are

Fruit

Standard

of

States

present time is the $3 participat¬

Specialists

Co.

and not transferred to the United

Steamship Co.
(Preference Stock)

Teletype NY 1-583

BArclay 7-5660

nor

foreign countries. Earnings put
into improvements and renewals

Fruit &

Standard

be,

to

Steamship

&

stock) —Henry

larger proportion of the fixed Fansteel Metallurgical Corporation

assets

Partner, H. C. Keister & Co.,
New York City

Established 1920

New York

intended

not

are

offer to sell the securities discussedo)

KEISTER

HENRY C.

Corporation
Broadway,

Fruit

Standard

Alabama &

and

Selections

(preference

New York Hanseatic

120

particular security.

a

Participants

Their

a

participate and give their reasons for favoring

Pennsylvania Power & Light
Northern Indiana Public

each week,

Forum

different group of experts
and advisory field from all sections of the country

A continuous forum in which,

Week's

This

Security I Like Best

electronic

Robert J. Levy

applications

has de¬
and grow-/

veloped "a very large

of

ing demand for Fansteel's product.'
$1,538,915 was reported securities should hesitate beforeIncreased
facilities
cannot
yet
which compares with $808,711 for
increasing their net commitments come close to
supplying this de¬
the first six months of 1950. The in
equities at this time. With this mand.
While- the
company
is
net for the first six months of 1951 admonition and with a reference
making important useful contri¬
was after charges of $1,175,000 for
to du Pont as my choice as the
butions to the rearmament effort,
depreciation, $2,180,000 taxes and greatest individual company <in
it is generally believed that return
$200,000 special reserve. The in¬ the country (a reference I made
to a peace time economy will find
dications are that the earnings for last year in my article on Ameri¬
the company well, situated
and
the last six months of 1951 will can Cyanamid
Preferred as ; the
well supplied with materials now
continue at the same rate.
"Security I liked best" at that
scarce. The company is doing well
The company is the second larg¬ time), I select this year Fansteel in
i a.;,f semLwar; • economy
and
Metallurgical Corporation.
est
engaged in the production,
should do better, especially if and
"Growth Company" is a term
transportation and distribution of
when excess profits taxes are re¬

Gersten & Frenkel
Members

N.

Y.

Security Dealers Ann

of

net

150 Broadway

New York 7

Tel. DIgby 9-1550

Tel. NY 1-1932

.

SECURITIES
Burnham and Company
Members

York Stock Exchange

New

York

New

Curb Exchange

New York 5

15 Broad Street

bananas.

Teletype NY 1-2262

DIgby 4-1400

Cable Address:

Coburnliam

Although small' in com¬

that

has

misused

been

and

over¬

duced

are

factors:

Specializing in

;

Mountain Fuel Supply

Equity Oil

an

Analysis

unfavorable excess

profits tax base/and (2.) a short¬
ships and charters three addi¬ bold, yet sound managements, that I age Of certain metals such asmaintain reseach to develop prodtional. It owns plantations in Cen¬
tungsten, platinum group metals,
ucts
and
improve
methods. !
tral America and' the West Indies,
copper and nickel.
Science is the by-word of the age.'
and to supplement its own pro¬
The following are some signifi¬
The
miracles
of
chemistry are
duction purchases bananas from
cant facts and comments:
well known; chemical and tech¬
native growers. In addition, the
nological progress has necessitated f
(1) Sales: From a high of $12,—
company
is seeking
a
subsidy
and inspired wonderful new de¬
753,000 "in 1943, sales declined to
from the Maritime Commission to
velopments in metallurgy. Fan¬ a low of $5,620,000 in 1946, and
construct
four
new
ships.
The
steel is one of the two
largest reached $13,815,000 in 1950. 1951
company's income is supplemented
refiners and fabricators of rare sales for six .months were $11,by passenger, mail and freight
non-ferrous metals. It is preemi¬
583,000 and full year sales are
revenue. As of Dec. 31,
1950, the
nent as a refiner of tantalum and
estimated at approximately $26,fixed assets were valued at $17,-

OREGON

SECURITIES
•

Harbor Plywood

•

Puget Sound Pwr. & Lt.

•

Wheeler Osgood

BOUGHT

•

SOLD

QUOTED

•

Member New York Stock Exchange

SEATTLE

4

columbium.

Mu.

1900

A

very

able

management
quired

and

has
of

control

aggressive

recently

the*

Tele. SE 482-483

of

this

made

an

excellent start to

company

ac¬

common

and

have
vastly

improve the earnings and size of

has

It

achieved

no¬

000,000, or about twice 1950 sales.
tung-, With increased capacity provided
sten
and
molybdenum. Its
during 1951 and planned for 1952,
products consist of rods, sheets, sales in- 1952 should show sub¬

table

stock

Portland, Spokane, Eugene

successes

in handling

strips, wire and ribbon and such
finished

products

rectifiers,

contacts,

in

capacitors,

first effect of battery chargers for railway
management was shown signal, telephone and fire alarm
figure for the first six systems, acid-proof chemical plant

new

the

months of 1951.

equipment.

UTILITY STOCKS
Direct

Private Telephone
to

New

York

CAnal 6-1613
I. B. Magnire & Co, Inc.
Members

Nat'l Assn. of Securities Dealers Inc.

31 Milk St.j Boston 9, Mass.
Tel. HUbbard 2-5500
'

Portland, Me. "
Hartford, Conn.

Tele. BS 142

Enterprise 2904
Enterprise 6800

Open End Phone to New York Canal 6-1613




The

participating feature of the

preference stock dilutes the earn¬

sion

Abrasion

resisting alloys

Johnson

and

corro¬

produced.

are

Johnson

&

distributes

ings available for the common. It
is, therefore, very much to the Fansteel surgical products made
interests of the management to of tantalum. Vascolet-Ramet
Corp.
eliminate
the
preference stock. and
Weiger Weed
&
Co. are
The exchange of the preference
owned subsidiaries, the
stock with a like amount of de¬ wholly
bentures would

tion

for

permit the deduc¬
tax purposes of

income

interest paid. Add this savings to

the additional amount paid on the

preference because of the partic¬

former

manufacturing

tantalum

cutting

and

tungsten,

columbium

blanks,

tools

carbide

and

wire

drawing dies and precision cast- J,

ipating features and it amounts to. ings, the latter resistance welding
a

substantial

sum.

'

alloys

and

stantial

*■

8c COMPANY

\

Established 1899
160 S. Main St.

4_ :. s-

rV

Salt Lake City 1

Bell Teletype SU 464 *■-

Oldest Investment House in Utah 1.

accessories.

Fansteel

(2)
of
2

Net Income:
in

$1.37
to

1943

S.

SAVINGS

B ONDS

From a peak
(adjusted for

split in

stock

1

U.

growth.

electronic

as

tubes, radar equipment, electrical

this company. The
this

ACTIVE TRADING MARKETS IN

•
V,

„

000,000.

(FOSTER & MARSHALL

request

EDWARD L. BURTON

.

WASHINGTON

upon

principal .limiting

two

(1)

•

Utah Southern Oil

eliminated. ..Presently,

or

there :

used but it certainly applies to
parison to United Fruit Company,
Fansteel.
I have liked companies
does a sizable business.
The
with
aggressive, intelligent and
company owns seven refrigerated

it

i

1946)

earn¬

ings receded to 47c per share in
1949, and were $1.87 in 1950. 1951

earnings

for

months

six

were

for

substantial reserves
inventory revaluation)
and

full

year

$1.46

at

(after

earnings

estimated

are

$3 to $3.25. Because the com¬

pany's

earnings

ceiling

excess

growth

in

profits

net

moderate but 1952
be

somewhat

with
net

a

tax

cany

get

some

for 38 Years

rates,

only

-

be

eai4rh\gs Should

larger

taxes.

Quotation Services

to

than

1951,

substantial improvement in:

^before

may

subject

are

Over-the-Counter

The

on

..

^

Incorporated

.

I

Established 1913

company

46 Front Street

relief from the new

Continued

National Quotation Bnrean

page

30

CHICAGO

New York 4, N. Y.
SAN

FRANCISCO

Volume 174

Number 5056

.

.

The Commercial and Financial Chronicle

.

(1451)

Your Stake in American Business

INDEX

By II. P. LIVERSIDGE*
Chairman

of

the

AND COMPANY

The

Utility executive, asserting, in order to continue our spectacular
business expansion in next half century, we must take steps to
tect

responsible

of private capital;

use

attacks higher taxes

pro¬

to reestablish sound

Cover

_„_r

CASH AND CARRY

Cover

Liversrdge._-„.._-i!

Carry
cash

3

•

Canadian Prairie Profits—The Crude Way—Ira U.

_

rising

I believe sincerely in the prin¬
movement.

There

is

that

plosively
question but that this movement* needs of
will

and

can

develop into

result

m

of

same

war

living.

But

is

economy

—Charles

defense, we must
cold facts that the

little,

plays

if

any,

The

per¬

most

effective

manent part in contributing to our

force

opposing

national

the

steady

of

drifts

tion of
free

We

our

that

enter¬

belief

giving

too

—

to fit the

mates of some

the

H.

P.

is

but

growth

past

the

forerunner

a

expect

should

we

during the next 50

\ The

of

expansion

century

all

for

basic

the

elements

brilliant

a

land blessed with

an

future:

still at

wealth

the

centuries

of

disposal; and

our

a

almost limit¬

less store of natural resources;
accumulated

will

system

a

is

support

of

of

trend

Haile

Jessop Steel
13

nation

no

0

'

'.-42
\

si:

,

"

'

in Per Capital

Leads

Stoek

Reeves

.17

J. F.

Ownership,

It's the

Government

Now—Always

will

(Boxed)

Incorporated

20

Need Exists for Another Million New Homes!

be

never

v

still

are

our

have

free

a

it in

our

Investment

Details

pening, and then act to prevent it.

We

people.

power

Broadway, New York 6

20

Bankers

Association

is hap¬

to what

up

Convention

of

of

America

Soundcraft

Reilly & Co.

17

—

61

moving

Steel

■' '

Proposes Peace Talks With Russia....

England

i

Portsmouth

18

According to NASD Survey..—

The

BO 9-5133

Teletype NY 1-3370

Direct Wires

Philadelphia and Los Angeles

Announces

Registration.—

21

•C Prominent Guests to Be in Attendance at "Financial Follies" 44

to de¬

changes that will safeguard

future prosperity, and our in¬
liberties.

■

West End Chemical

Regular Feature»

■"

Today it is estimated that there

As

See It

We

(Editorial).....

*

Cover

.

Greater N. Y» Industries

2%- ! million

approximately

today,

are

to

blame

employees on the civilian payroll

one

New

in

us

surround

have

It

wake

better

if we fail to
of the oppor¬

Truman Again

■'

King Brothers

^__.__15

Houses—Roger W. Babson
:

pri¬

today

been

Mines

12

-

Carmichael___^___l______lCi2__^_

H.

On Remodeling

changed unless the people of this

dividual

that

Bohmfalk

taxes,

statement.

has

taxes

disaster..

a

privileges of a free society. If the
next 50 years do not bring an even

of life,

this

Inc.

H

steadily forward toward just such

mand

shall

—James

im-

The

us.

evidence

abundant

still

take full advantage

lead

Cinerama

1

Progress in the Air Transportation Industry
.

not idle words—there

are

We

we

F.

in

the end result confiscation of

to the individual all the rights and

tunities

Spahr___

a

vate wealth.

of free enterprise that guarantees

way

—John

as

and

wealth,

WHitehall 4-6551

Primary Trading Markets

Outlook for the Chemicals and Petrochemicals

substantial part of

away, a

These

for this belief are
quite obvious for we have at our
command

in

well

as

mediate result is increased

years.

reasons

heeded

involved

been

of destroying,

trend

a
*

the

say

this

imagination to predict where such

Liversidge

spectacular
business

and

decade

a

Telephone:

Peregrin..... 10

exceeding anything ever ,Television's New Era—H. C. Bonfig..".
before experienced in the history
.! Impact of Population Shifts—Roy V. Peel
of the world. It requires but little

servative esti¬

Dept.

8

._

"amounts

con¬

that

than

national

our

perhaps,

rosy,

further

go

has

business

It is also my

Securities

STREET, NEW YORK

7

;

Impact of Electronics—Paul A. Just

—Walter E.

Our National Wealth

more

6

WALL

Long-Range Implications of "Welfare State" Measures

.

might

for

nation

prise system.

of

standard

our

living.

"Destroying

destruc-

half

or

Wilson

E.

What Is Happening to Railroad Profits?—G. T.

toward

the

—'

wealth

for

Carrie!

Defense Mobilization Moving Into High Gear

the

meet

to

-.1—

".J...

—Harry A. Bullis

carry

cash*

ex¬

or

face the hard,

a

And

give

5

Obsolete

expanded

no

us.

Strength of U. S. Economy and Its Meaning for the World

standards

when

ciples underlying the "Invest-In--

to

We'll"

Cobleigh____4

The Defense Program and the Business Future—A. W. Zelomek

99

America"

obsoletes
away.

anything but

economic system.

our

Supply-Demand Stalemate

Your Stake in American Business—H.-I\

as

maintain

Outlook—A

"The Camel's Nose Is Under the Tent"—C. E. Wilson

.

leading to confiscation. Urges expanded
ownership of industrial enterprises as personal incentive to

;

Immediate

—Edwin B. George-...:

and to effect drastic reduction in Federal spending,

currency;

Page

Board, Philadelphia Electric Company

safeguard sound elements of economic life; to uphold and

llCHIEIWfin

"

Articlet and New $

3

but ourselves. It is we, the

of the Federal

of this

is stated that there is

and Insurance Stocks

V Bank

24

Sterling Oil

Government, and it

citizens
generation, on whom rests
the responsibility of determining
the kind of country this will be

for another half million. We refer

25

but

50 years

and

Actions

from

speak

words. What

now. '

louder i than

'

do, not what we

we

will shape the pattern of
things tb come. We must take
steps to safeguard the sound ele¬
say,

ments of

hold
use

lish

and

the responsible

protect

of

private capital; to reestab¬
sound currency; and last but

a

not least, to

effect drastic reduc¬
tions in the expenditures of our
Federal

the

of

some

These

Government.-

*

more

are

important ob¬

stacles that lie ahead. Their solu¬
tion

is

and

when

immediate

our

attained,

challenge,

will

the

be

certain guarantee of a better fu¬

I

the

In

light

of

our

of

some

fanciful theories that

destinies today, such things as

I have

ficult

just enumerated
to

attain.

distribution

measured

as

dif¬

seem

Production

and

by

ing
t

national product must keep
with the demands of a grow¬
population and the steadily

*An

address

by

Mr. Liversidge

"Invest-in-America"

luncheon

of

an

uncanny

ing
A

From

treatises

on

the scien¬

published^ by

Indications

everything from the

lizards

squirrels,

to

i

on

This

u

d i n g

sparrow.

of

sort

1

1

Observations—A.

skunks,
magpies,
not,

thing

Our

Prospective

that

may

projects

not

only

at

the

an

ing

incentive,

sapping

be

But

add
are

Public

all

up

to

Securities Now in Registration

Ro¬

The

State

page

interested in offerings of

COMMERCIAL

FINANCIAL

WILLIAM- B.
25

preferred stocks

S.

and

CHRONICLE

c/o

Copyright 1951

'

WILLIAM

SEIBERT, Editor & Publisher
DANA

D.

SEIBERT, President

RIGGS,

Business

Manager

Thursday, October 18, 1951

Members New York Curb Exchange

Albany

•

Chicago

-




50 Congress Street, Boston 8

Thursday (general news and ad¬
issue) and every Monday (com¬
plete statistical issue —. market quotation
records, corporation news, bank clearings,
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Other Offices: 135 South La Salle St,
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„•

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-

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Stromberg-Carlson

by William B. Dana

Company

ary

25,

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Y.,

N.

Whitin Machine

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1879.

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Quoted

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rate

of exchange,

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Monthly,

130:00 per year. (Foreign postage extra.)
Note—On account of the fluctuations in
the

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year.

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Whyte

—_—

Reentered

High Grade Public Utility and Industrial

New

Dictograph

4

Hoving Corp.

Reg. XT.

Members

(Walter

You

Published Twice Weekly

.

The
are

2

....

and Industry

42
4

We

of Trade

and

on

Collins Radio

37

,

...

Security I Like Best—

The

are

Markets

Continued

27

.......

destroy¬

Tomorrow's

say

Baker-Raulang

26

....

Washington

I

21

Salesman's Corner

Securities

it's high

we

Air Products

40

Securities

that

wealth.

tary Club, Philadelphia, Pa., Oct. 10, 1951.

Utility

postpone such expensive

new

25

Offerings.

Security

produce

time

43

Railroad Securities

one

but-actually
ability

5

May

Governments

to

our

40 Exchange PL, N. Y. 5

■

wouldn't know.

similar

taxes

Wilfred

Report

Reporter's

Our Reporter on

;a

fact I do know. The costs of these

and

MACKIE, Inc.

23

News About Banks and Bankers.

Col-

the economic status of

English

right,

&

HA-2-0270

22

Teletype NY 1-1825 & NY 1-1826

scissor-tailed

the

n c

woodchucks,
believe it or

and

treatise

n

and

flycatcher,
bats,,

36

Business Activity.

of

Singer, Bean

9

Funds

Mutual

enlightenment of
the public. These studies covered *
lard

10

the

Bureau of Wild Life Service for the

education

^...

Washington Ahead of the News—Carlise Bargeron

Washington ^correspondent

almost

Reeves Soundcraft

8

Einzig—"British Favor Free Gold Market"

\

recently commented
tific

Cinerama, Inc.

12

Dealer-Broker Investment Recommendations.....

of spend¬

new ways

our money.

-

20

...

multiplying rapidly when

agencies,

new

of Oklahoma

14

_

Coming Events in the Investment Field.!

our

gross
pace

habit of

the

guiding

are

bureaucrats,

as

bureaucrats have

the

•'

ture.

casually

Canadian Securities

given the slightest encouragement,
endlessly conceiving new plans,

economic life; to up¬

our

them

to

Bookshelf

Man's

Business

urgent need

remittances for for¬

eign subscriptions and advertisements
be made in New York funds.

must

40

Exchange Place, New York 5,

WHitehall 4-2250

N.Y.

Teletype NY1-3230

4

(1452)

The Commercial and Financial
Chronicle

place their money at work in
promising hunk of mineral
terrain, are baffled as they run
through the Toronto List of doz¬
ens of exploration companies. It's

Canadian Prairie Profits

Way

hard to tell which

By IRA U. COBLEIGH

promise.

Author of the Forthcoming Book,

trail, let

Expanding Your Income",
a

of the

border—or through Alberta
stockholder.

panies

*

'

,j

land

,

the

Province

got its name, back
sumably
of

rels

Alberta

of

with drill, derrick and

this total

year

impress;

1882, pre¬

in

a

but

may

remember

So to blaze
me

some

talent

for

State of Trade

oil,

fail to
Alberta

First,

let's

talk

about

a

further

"rev"

with oil

drill-

to

i

h ic h

146,000 bbls.

n

g s

w

are now

ing

•j

Ira U. Cobieigh

intrepid

many

investors

and

prospectors into the King Row—fi¬
nancially, that is. Not since Spin-

dletop blew its top 50
in

Texas

has

there

scurrying for oil;

or

spread belief that

a

with

a

that

ago
such a

such
new

wide¬

a

oil basin

potential equal perhaps to

of

Texas, had been marked

out.

■

.

„

The

years

been

■

,

geographical

output

Calgary

of

Alberta toward the Northern end
a belt of
sedimentary rock for¬
mations running from the Gulf of

of

the

Arctic

"natural"

for

oil

Ocean, is a
and
gas. * But

early explorations just never hit
the "big time."- As far back as

middle

Its land

more

flow

that

terprizes
for

such

by

Western

Stock

1949

from

varied

3VS

to

since

January

16.

Another interesting situation is
phase is,
to agitate this gas Dome Exploration (Western) Lim¬
Launched under the guid¬
East to Toronto and ited.

Montreal; the
Texas

New York.
several

same

to
So

tens

as

done

was

Philadelphia and
get ready now for

of

millions

of

Ca¬

of Dome Mines,
Ltd., a long
highly successful extractor of
gold (which today owns 24.39%

ance

and

of

common),

this

nadian pipeline

securities; and if acquired and is developing
they all work out as well as In- series of leases in Alberta

wide

a

in

far

Pipe Line Convert¬ vorable areas. * 23 wells were in
(which came out at par production as of June 15, 1951 in
Redwater field
years ago, and now sell at the
alone,
and
370) investors may be in for some numerous drillings are now in
worth while oil, but not in
great
good hunting here.
progress in other proven sections.
quantity; and dabblings a decade
Management is impressive, direc¬
later unearthed some more
Before attempting any apprais¬
profit¬
tors
including
eminent
names
able wells. But, whether because al of the
companies gunning for
from the banking and
costs were to high,
brokerage
exploration oil, perhaps a word about access
techniques too inefficient, trans¬ to Alberta land is appropriate. In fraternity. Currently around 11%,
Dome Exploration appears to have
portation inadequate, productive the United States most oil
pro¬
interesting possibilities.
fields too
r,
scattered, or markets ducing land is privately, corpotoo remote,
A third favored entry in the
nothing really stirred rately or state owned.
If
you
here till Imperial
sweepstakes r is
Ca¬
Oil, Ltd. brought want to drill for oil on it, you petroleum
in a big one at Leduc in. 1947. either buy the
nadian
Superior Oil. This one
land, or lease it
starts off with a load of
Only then did the world come to on a royalty basis. As a
glamour,
1914

drilling in the Turner Val¬
ley brought fourth commercially

think of Alberta as a
burgeoning
billion barrel petroleum

reservoir,

instead of the

(1) grower of the
world's best wheat;
(2) premier

terprovincial
ible

4s

three

result,
as
its sire, Superior Oil of Cali¬
here, sought for pur¬
chase, has been bid to as high as fornia, is one of the sable beauties
on
the
Stock
$180,000 an acre. Royalties cus¬
Exchange, selling
tomarily range all the way from today at a plushy 560. Superior
oil-lush land

pasture land of steers for steaks;
(3) possessor of a proven coal re¬

bonuses

serve

in

equal

turies of
and

(4)

to a couple of cen¬
Canada's present needs;
of a scenic beauty

land

unsurpassed by
Lake
Louise,

the Alps (Banff,
Jasper
National

Park).

Well, the four
have
'of

omy

of

Western

pint-sized

a

years since Leduc

rerouted not only the
but the entire

Alberta

Canada.

producer

of

fame
econ¬

From
crude

and
natural
gas,
Alberta blos¬
somed out and in 1950 produced
over
a

at

28

million

barrels.

Against

Texas output
currently running
the rate of 1,000 million bar-

Vsth

H. Hentz & Co,
Members

in

by

of

of

proven

oil

production,

certain

it's

all

cases.

different.

¥

plus

Well,
Over

oil

rights are owned
province itself.
On un-

the

areas,

rights

you

rent

can

the

on

a

to prospect for oil

company

amazingly

low

initial

at

cost,

since no land need be
bought;
and wide swaths of
land can thus
be probed

economically.

it brings in
to
Alberta.

a

company (or in¬

Stock

Exchange

dividual)

York

Curb

Exchange

or

have

Cotton

Exchange

to dig deeply or in
enough places to locate black gold.

he

has

Chicago
New

Board

Orleans
And

of

Cotton

other

Inc.
Trade

Exchange

Exchanges

may

his

out

of

dough,

expire,

run

lease

Naturally
appeals
panies. Thus

this
to

No warranty goes with
any
of them but if you delve further

into

them

assemble

might

you

a

decide

to

low

Exchange Bldg.

NEW YORK 4, N. Y.
CHICAGO

DETROIT

Dome

Exploration

Canadian

—

PITTSBURGH

GENEVA, SWITZERLAND




this,

the

you

16.50

tangle, they'll have to look somewhere other than the
industry to find a whipping boy. This became clear last week

when steel leaders broke their long silence and fired a list
of
point-blank suggestions on how to improve production planning.
These suggestions can not be ignored.
/
*/
'

They strike at the
concrete

causes

of the distribution snafu and offer

proposals

which, if put into effect, can help correct
inequities and make the Controlled Materials Plan work. Above
all, these suggestions are the fruit of real industry
experience,
this trade
The

weekly asserts.

next

move is up to
top mobilization officials, since the
industry suggestions were requested by Chief Mobilizer Wilson.
It is presumed, this trade journal
adds, that he will direct certain

alterations

be

in

made

controls

tailored

to

fit

industry's needs.

Consumer appeals to NPA for relief from fourth
quarter allot¬
ment cutbacks are reported to have all been
processed about a
week ago.
But
being cancelled.

as

there is

yet

sign of

no

any

sizable tonnages
^

,

The carryover control

order, also aimed at opening mill

big

com¬

tions

for some time.
Consumers whose third quarter
tonnage
shipped after Oct. 7 are expected to hold off cancellation of
any of their fourth quarter tonnage as long as they can legally
was

do

v*

so.

There

several

are

why mills aren't booking orders
"The Iron Age" states. They
feel most of these would be dummy orders—that the consumer
doesn't really know sizes and specifications he will need.
Also,
later government regulations might make the orders invalid. The
cost of altering orders is running administrative expenses sky
high.

(except military)

reasons

far ahead,

very

and

Under

phases of
Raw

these

conditions

expansion

an

materials, of

head of the list.

Some

it

is

program

course,
are

extremely difficult to keep all
progressing at the same rate.

are

a

worry

too.

also concerned about

Scrap is at the
boats to feed

ore

the

enlarged capacity. They point out that several of the boats
now planned won't be
ready for 18 months, "The Iron Age" con¬
cludes,.
'
■

•.

t

It

is

currently learned that the automotive industry faces a
cut of about 13.6% in the first quarter of 1952 from the
1,100,000
cars
scheduled for the present quarter.
A high official in the
National Production Authority stated last week the
government
will try to allocate enough controlled materials to the auto industry in the first quarter of next year to permit production of
950,000 cars.
,

Steel

Finished

.

•

,

Output Scheduled to Rise Slightly in Current Week
steel

tonnage placed in

order
excess

cancellations

due

to

duplications

new

Wizard

the

board it is

glamour of all
eager

On

to

Canadian
now

your

.

oil

-

,

,,

checker¬

move.

Per¬

haps you, too, can rack up some
prairie profits—the crude way.

or

of final National Production Authority

allotments for fourth quarter are developing slowly, says
the weekly .magazine of metalworking.
Steelmakers

"Steel,"

report vol¬

ume

that

by
too

canceled

to

date

negligible despite the government ruling
carryover not shipped by Oct. 7 be charged
against their fourth quarter allotments. It still is
early for final conclusions as to the efficacy of this latest
third

quarter

consumers

,

on

page

EST. 1894

STATE AND MUNICIPAL BONDS

CORPORATE BONDS
LOCAL STOCKS

prelimi¬
then de¬

like

■

Steel people are gravely concerned with the problem of
pro¬
curing materials needed to complete steel expansion projects and
keep present facilities adequately maintained. Cuts in structurals,
extended delivery of mill equipment and shortages of certain
parts are pushing completion dates further into the future,*

cide to wrap

investigation

space,

is achieving no better results. Steel producers are
beginning to
doubt that either of these moves will cause substantial cancella¬

$42.25

make the vital

nary

outfits

investors, though

decrease

11.75

Package Price
If

lease

(Central Alberta).

Because of

a

The long campaign of
taking toll and steelmakers are

$14.00

-

Superior

,

tensive acreage in the

Lake field

101.8%> of capacity, or

point from the week previous.

a

Continued

Gulf

N. Y. Cotton

of

Cost About

Calgary & Edmonton..

cost

the

see

expanded

than offset the decline in the

more

package like this.

One Share of—

up multiples of this
package in your own vault, one
Oil, with lease holdings of of these three
might turn out, with
4.280,000 acres in Alberta; and a little
luck, to be a junior model
Texaco Exploration Co. with ex¬
Amerada.
we

increasingly

that

durables.

consumer

before

time

deal

ters.

became

in the week

the controls
steel

of

benefit

economy

noted

Second

wonderful revenue
The
drawback, of

a

course, is that

Exchange,

Company holds about 1,700,free hold leases, and can
by the bird-dogging of
other companies, since its leases
are
spread-eagled over Alberta,

000

it

York

York

oil.

These three have been invested
pretty complicated
accomplishes two things. in by a number of persons with
First it permits an individual or traditional
discernment in oil mat¬
but

New

Commodity

owns 51.7%
of Canadian Su¬
perior and brings to this venture
a fabulous flair for
locating lush

This all sounds

New
New

Oil

big chunk of real
estate for a lowly $1 an
acre; but
Saskatchewan and Manitoba. Div¬
you have to agree to drill
right
away.
Then if you're lucky, and idends are not in any immediate
find oil, they give
you 90 days to offing, but if Cahadian Superior
inherits the oil producing talents
checker-board your lease.
Half
of its
of these squares
parent, these 4,450,000 com¬
go back to the
province; and you also kick in a mon shares might some day be
15% royalty to Alberta for oil worth considerably more than to¬
day's price tag of about 16V2.
produced on the half you
keep.

an

1856

i/4th

Alberta

90%

a

Established

to

the

on

also

was

The current week, "The Iron
Age," national metalworking
authority, states that if Washington officials aren't able to unsnarl

has

company

It

capacity operations, however, is
meeting growing difficulty maintaining facilities at peak efficiency.
Further, sporadic labor trouble and slowdowns at various produc¬
ing centers are hampering operations seriously.

the annual

has

of

of 0.8

city to the Montana border.

course,

pipeline

from

candidates

gas-induced
The second

migration.
due

natural

are

pronounced.

'

Steel ingot output continued last week at a rate in
excess of
2,000.000 tons weeklv with the national rate placed by the Amer¬

of

and

last

ican Iron and Steel Institute at

acres

Read

Index

Failures

industrial production in past weeks
week, though on a very small scale. Total
moderately higher than that of a year earlier as the

was

production for defense needs

good oil country, 500,lying north of Calgary,
600,000 running south from

000

Industry

impact of defense spending

is spread in the

report of this
trillion cubic feet, probable mar¬
keting is a two-stage affair. The enterprise, and you'll be impressed
first phase is to use this fantastic by the area of its drillings and
the distinguished names (includ¬
supply of cheap fuel as factory
the President of Canadian
bait to lure major industries to ing
Alberta. Paper and chemical en- Pacific) on its board of directors.

-:

position

Mexico to

the natural gas, which is
lurking under ground in the
paltry amount of an estimated 5

now

in

■/,

announced.

was

About

jump¬

grea,t

a

this flow to

up

day

a

Salt Co.

Price

Auto Production

Business

uptrend in over-all

continued

was

—

d

Commodity Price Index

J
The

and Edmonton.
2,415,000 shares
the Royal consort has only been in this game, really,
here represent fee ownership in
Victoria, this outpost for four years. During the time,
the
mineral
rights to 1,142,109
prairie
prov- there has been no
worry about
acres
of Alberta land.
This land
i n c e
gave the capacity to increase produc¬
ownership itself is unusual, in this
small promise tion;
rather there was concern
and permits company
about how to get all this oil to territory,
of
the
more
property to be developed without
An important answer to
mundane roy¬ market.
time limit.
Calgary is no new¬
alties that lay that was the completion, within
comer
profitable drilling has
in store for it. the past year, of a pipeline from
been conducted for years.
Cur¬
Today
this Calgary to Lake Superior—1,127
rently Calgary gets its income
Originally scheduled to
p r o v i n c ial miles.
from (1) leases; (2)
participating
plateau is lit¬ ooze along 85,000 barrels a day,
interests; (3) options, and (4) in¬
line
has
been
stepped
up
erally check- tne
vestments including the Alberta
er-b o a r d e
twice; and only this week,
plan

MCMj

Output
Trade

or

all three, seem to deserve further
study and, possibly, a high priori¬
ty position on your stock shop¬
ping list.
V'
'

<

Retail

Food

and

of

or re¬

locating

Production

Electric

com¬

because

location, management,

Steel

Carloadings

sort of

some

set down

from

Queen

Thursday, October 18, 1951

The

have real

ones

which 'either

puted

brief account of the fantastic oil exploration north
*

When

..

such a

—The Crude

Giving

.

The

Robinson-Hurnplireu Gompanu,Iric

RHODES-HAVERTY BLDG.

ATLANTA 1, GEORGIA

WALNUT 0316

LONG DISTANCE 421

35

i
-

V.

Volume 174

Number 5056

..

The
Commercial and Financial Chronicle

,

easily send supplies; and she

can

The Defense

Program

can rally Asiatic manpower to an
extent which would be impossible

in

And the Bnsiness Future
By A. W. ZELOMEK*

■

,

:

.

Implications of the British Election
tion

for

the

concerning

impact

the

What

conclusions

a prognosis of our own

on our

In

citizen?

>'

political
international relations?

course

can

we

sales, prices, and production will

average

lines will be stimulated by growing

,

the

excess

which
inherited from
Any of you who
remember the early stages of the
last war, and the heavy and dis¬
tressing shipping losses along our

higher. Asserts soft
of purchasing power.

professional polls' and other ex¬
perts' forecasts
of
Conservative
return
to
power Oct. 25 there is considerable analogy

this time,

to take my word for it.

to

fense

pre-November election situation of

our own

1948.

On

both sides of the

Atlantic; the for¬

A Conservative

happy to be here at

very

to talk about the De¬
Program and the economic

outlook.

will appreciate the

quite
months
m a n

particularly happy

expressed

turn to power

feeling of great

of further

uncertainty.

and

would, of course, imply absence
nationalization, a more free pound,
other changes in the degree of

some

socialization.

But

both

on

I

do

fallen

into

the routine

would

th is

This

of

is

i

England just before the bye-elections in 1949, this writer
inquired of a number of Conservative members the nature of the
specific aims and general philosophy on which they hoped to get
Me too-ism with more efficiency appeared uniformly

to power.

(with the exception of colorful Stassen-like David Eccles) as the
plea for change—a motif which bogged down,
the polls, despite the many dissatisfactions created
by the

basis of the outs'
at

'stale

ins.

\:

^

.

"■

*V

:■

■

:"

""

is wholly valid even in

the face of

mere

a

choice

between

a

a

(most of them seemingly tired); and between the detailed means
overlapping ends in lieu of differences in the ends themselves;

as domestic.
Under questioning at a press conference in
York, the former apostle of opposition to appeasement merely
went as far as wishing to amend, rather than decisively reverse,

all the Socialists' actions and aims—even
The Laborites
Iran

or

Egypt,

overseas.

using grievances abroad as a scapegoat de¬
politically distasteful duty of acknowledging as

'

boy

U.

S. the

Goat

Specifically, the United States is being made the whippingwith a variation of alibis for 'the resurgence of Britain's

United States must transform itself into maintaining its prosperity

high-price buying but low-price selling basis, in lieu of
getting her own house in order at home by ending subsidies and
featherbedding for the benefit Of production, may be politically
convenient, but assuredly is economically false and illogical.
A
second count in the indictment against this country, advanced by
Gaitskell et al., in disclaiming responsibility for insolvency, stim¬
ulated
by Mr. Bevan's politically effective strategy, lies in
blaming the entire West's need for Defense preparations and sac¬
rifices on America's selfish "militarism" in preparing for "her"
a

War/ While such epithet hurling about U. S. and Pentagon war¬

mongering in order to gain political advantage from dubbing the
Conservatives
condoned

as

as
a

a

kow-tow-tog. "War Party,"

legitimate election

tunately does .add permanent,

scars

stunt,

are

be synically

nevertheless

it unfor¬

to the already difficult enough

state of trails-Atlantic earneraderie.

-Such

may

.

the effects* abroad and at home, of the muddling-

through workings of present-day democracies!

according to how the
furnishes

us

wjth

a

voting goes for about

the

one

home-front

hand,

hundred key seats,

valuable laboratory of practical politics.

will supply conclusions as to
on

a

It

the actual relative effectiveness of,

courageously fighting op^ihe real but Unpopular

issues*

or

instead

slogans, and foreign scapegoats.




of

hiding

behind

up

or was

back

if

there

should

be

a

Collins Radio

affect

earning

.

sense
on

was

44 Wall

It was. ah
year's specula¬

and

home

at

abroad.

There

■'•/'■

new

orders

in industrial

CUSS "A"

consumers

to believe that world

reason

goods,

will

sions

production and even

suddenly

hand.
I

am

however,

"me

too-ism,"

paying growth
in Crude Oil

opportunity
r

Information on request

GENESEE VALLEY

is

SECURITIES CO.

*

for

9-0040

dividend

A

period

tended to strengthen that coun¬
try's position, put us at a disad¬
vantage and cause us difficulties

of having

employment

BOwling Green

SENECA OIL COMPANY

tinue its program of increasing its
armed strength.
over a

St., Now York 5, N. Y.

NY 1-1862

if the United States failed to con¬

look back

request

Teletype

war;would be greatly increased,

can

on

BUTLER, MOSER & GO.

implying that war is inevi¬
That would be a defeatist
attitude of the worst possible kind.
I do not believe, however, that a
United. Statesthat is militarily
weak will be able to reach any
sort of a settlement with Russia.
In fact, I think that the risk of

We

Engin. & Mfg.

Memo

table.

power.

of last

Texas

of years now and see that every
not move made by Russia has been in¬

Powers Bldg.,

Rochester14, N. Y.

Telephone LO 8190

Teletype BO 87

:

ten¬

replaced

be

prices, is already at by peaceful settlements. Avoiding
war, and reaching peaceful settle¬
quite willing to admit, ments, will, I am convinced, have

Placer Development,

v

that for

a

longer this recovery

be

to

few months
will be mod¬

out the hard

worked

What I

saying in

am

very

Limited

'

■•./'••

way.

'

.

•

•

-f

LEAD-ZINC

sim¬

ple terms is that the uncertain¬
•
ties of the foreign situation actu¬
the economy is
ally add up to one great big cer¬
beginning, more than a year after
tainty, that the Defense Program
the
invasion
of
Korea, to feel
will have to
be continued and
some of the expected impact from
quite probably enlarged.
!'
the
Defense
Program.
This is
small so far, but it will rapidly
What About a .Cease-Fire in
become greater. Economic activ¬
.'/
Korea?.
ity in 1952 will, for the first time,
I do not mean to imply to you
reflect the full force of an expand¬
that we have passed all of our
ing defense production.
psychological hazards. The Ko¬
/The inflationary trend should rean War has been
going on now
also be in evidence again next for more than a
year and in the
year/There Will be a chronic Fed¬ past few months the rumors of a
erate.

TUNGSTEN-OIL-GOLD

,

/ Nevertheless,

.

eral

deficit and

basic influence

this

on

will have

a

cease-fire of some sort of

the money sup¬

ply. The background will be in¬
flationary in nature, and prices
generally will respond more easily
to stimulating influences than they
will to depressing ones.

ment have been
:

frequent.

a

settle¬

cease-fire agreement in
possibly be reached.
If it is, I suggest to you that its
importance will be minor.

Korea

the

that
its

Seems more

it
a

purposes,

this

war

likely to come in the

It is in the Far Eeast that Rus¬

sia is in the most favorable posi¬
in

terms

manpower.

It

is

/

request

1006 SECOND AVENUE
SEATTLE
'

Teletype SE 105

ELlot 3040

L. A. DARLING

COMPANY

an

of

logistics

and

.

area

It is expected

will
in

have

its

less

the

that this company
largest

earnings

history but is selling 1/3

than tits

1946

high.
'■

'f

Latest information
upon

request.

does—where it
major war will

Far East than in other areas.

tion
♦An address by Mr. Zelomek before
the
Purchasing
Agents Association of
Chicago, Oct. 11, 1951.

point—if

believes

on

a

may

further

available

John R. Lewis, Inc.

I do not eliminate the possibil¬

ity that

First of all, a -cease-fire agree¬
outlook, as I have described
it to you, is favorable. It does not ment in Korea would not prove
imply that there will be no ups that Moscow wanted a real peace
and downs in prices, or that there agreement in the Far East.
As a
will be no business problems. It matter of plain and simple fact
does indicate strongly my belief if, as and when Moscow gels to

economic
activity next year will be high and
probably, during most of the year,
tending to rise gradually. It is an
outlook that justifies you in plan¬
ning aggressively and construc¬
tively for next year's business.

Analysis

;

This

that the general level of

The British contest at the polls Oct. 25, which will be decided

Far East

entire

the

'

nothing that I know of in the
of
totalitarian govern¬
I do not imply that all of the history
excessive inventories have been ments, or any information aboutpresent
condition
and
completely cleared up. But evi¬ Russia's
dence of a moderate recovery, in policies, that would give us any

y

enormous trade deficits and loss of dollar exchange.
In the first
place, the loss of dollar reserves amounting to $638 million during
the past quarter is being pinned on America's high activity and
the shortage-with-high prices of raw materials. A thesis that the

on

in the

one

serious

tion.

are

vice to avoid the

the real domestic issue the necessity for dis-inflating and reducing
the standard of living to what the country can really afford.

that

extent

in wholesale

their side, no less than the ruling regimes in

on

such mi

ican position in Japan to

not

-•

This recession

over.

basic

and

country.

well

'

aftermath

was

New

weakened the Amer¬

would have

that.

This uncertainty and

about

are leaving British
slogans, personalities

to

as

success

,

pessim ism,
however, is not justified. Those
who let it affect their planning
for next year will be starting off
at a disadvantage.
This is one
time, and I speak from many years
of experience, when the business?-,
man can feel a great deal of con¬
fidence about business and price
prospects in 1952. Let me very
briefly put my own views on rec¬
ord at this point:
:
: ;
V •
V
The
recent
recession / is
just
r

a

recently confirmed by Mr. Anthony Eden in his visit to this
Mr. Churchill's past and prospective second-in-command
and heir-apparent revealed himself as surprisingly docile and
wishy-washy in his observations on his opponents' policies; foreign

This

don't

nitude.

The conclusion that the Conservative outs

to

immediate

of the Communist forces in Korea

peaceful settlement of interna¬
A. W. Zelomek
tional problems.
Prices
in
Do any of you, honestly, ex¬
many markets
have been weak, inventories of pect this to come about? ■■■■■'.
If you do, then you may be jus¬
many items have been excessive,
and there has been a lot of liqui¬ tified in feeling uncertainty about
dation. The Defense Program, so • next year's economic trend.It is simply inconceivable to
far at least, has certainly not in¬
that anyone can
sulated our economy against re- me, however,
really.hold such a belief. I am
; cessions of fairly important mag¬

36-page policy
statement just issued by the Conservative Party under the engag¬
ing title "Britain Strong and Free."
Running through this
"manifesto" is the merely vague reiteration of familiar themes
of endorsement of. free enterprise reduction in controls to create
wealth; of the need for stimulating incentive at all levels; and
about taxation the following: "the government must help by a
taxation policy directed to reward extra initiative, efficiency and
ability, and to assist the necessary provision of new capital"
Typical of tweedle-dum tweedle-dee choice before the voters is the
Curchill-Butler proposal to Substitute excess profits taxation for
the castigated Gaitskell proposal for dividend freezing.
Citizens confined

An

a

completely

cut back?

,

the economy is

Aagain in England last August, the writer encountered a sim¬
ilar negative issue-less condition regarding horiife front matters. This
conclusion

•H.M

bout

a

folded

gram

-

/

uncer¬

tainty

deny

North Atlantic Me Too-ism

be if the Defense Pro¬

we

disarmed.

began at

cut

justified.

In

as

stimulating influence, but where'

Korea

time when Japan was

in

us

understand¬

lieve

to have

merely waiting to
Js such duck¬
A. Wilfred May
ing of live issues perhaps an v unavoidable
characteristic of today's election process in all the
democracies;
and is it really the most effective course?
>
'

The

in

war

for

peace

able ~I

the At¬

cash-in the Gallup Poll chips.

-

a

Korea, if it occurs,

mean

suddenly might have been lost.. The mere
fact that it has not been lost repr
question involves us in
\
Continued on page 29
world-wide
political
considera¬
tions. It is only conceivable that
the; Defense Program would be

of

seems

sides

power

a

-

be¬

not

international situation.

Defense Program' is recognized

y#
WmM

,

lantic, the party out of

the

■

not

The

uncertainties have stemmed from;

m

a

that

therefore,

sure,

Asia.

A part of the recent fears and

&

have

nessmen

re¬

feel

Will

Political Certainties

busi¬

.

I

I merely

cease-fire in

now,

y

you

understand my rea¬
sons, and draw your own conclu¬

few

a

importance of

this.

However;11 do not expect

sions.

I am

because/for

merly rock-ribbed conservative
(small c)
party
has
become
appreciably
liberalized
by the political exigencies of "welfare" cham¬
pioning,
while,
the
"welfare-ists"
have
necessarily slowed up; resulting in a blurring
if not extinction of issues.

am

partially

Germans.

coasts and almost in our harbors,

want you to

I

advantage

major

the

was

,

Economist predicts expanding level of defense activity provides *
foolproof guarantee of high business operations; and in 1952

draw

in 1952, and the

*

:

the

implications of next week's British general elec¬

American

get

from her submarine force,

Economist, International Statistical Bureau, Inc.

are

Europe.
It is in the Far East that Russia

would

By A. WILFRED MAY

What

S

(1453)

to, which Russia

Moreland & Co.
Members:

Midwest Stock Exchange
Detroit Stock Exchange

1051

Penobscot Building

DETROIT 26, MICH.
Bay City

Muskegon

■

(B

The Commercial and Financial Chronicle

(1454)

Strength of U. S. Economy and
Its Meaning for the World
f:'

product as

industrialist

At

the

beginning

of

have

the

1950,

American economy was producing
at the rate of $250 billion a year.

When the conflict in Korea began,
at the end of
-the

gross

na-

vtional product

unable

to

$275 billion
annually. By

other

is

present

fourth

question

no

nations

(the rate had
to

as

Increase in

to

Table

billion a
*
year.
'Y.
f
Our highest
jprewar pro$326

That

11929.

"

\

v

;

•

/

price level in 1951 is about

level, it is evident that the physi¬

5is
;

of production in

volume

that

twice

capita basis,
than

1951

a

per

total

a

product per
did in 1929.

more

we

This country's

;

On

have

we now

output of 55%
person

1929.

of

the

one-year

50% higher than it was in 1929.
Allowing for this increase in price
cal

•

with

Harry A. Bullis

iachieved until 1940.
The

->

of

United

various
in

1949

percentage
gain).
»*

States

and

1950,
increase (a
•
:

Since 1929 and 1940

we

saw

into

a

worker

has
or

at

exceeded

a

in

rate

^billions

iriel
i

of

and'

the

pa-

dollars

military

for

war

mate-

assistance

in- agement.

eluding the $55 billion lend-lease

but also the expenditure
billion for postwar eco¬

»program,
t

of

$35

nomic aid to other

.still leaves
as

the

nations; and it

all

Workers

cannot

the

richest

well

as

productive nation in

the world.

the

last

20

years

we

allies

.

pact.

becausewe

marked

have

acceleration

We

building

in

(still

rifles.

pro¬

in

the

include
must

we

North

good

new

Atlantic

which

make

consumers'

ership

use

that

in the fu¬
use.

we

iheet

Y;

lead

we

building

are

European

machines"

which

processes

mobile
more

Pro¬

an

of

military

allies

„

share

our

of

the

more

For

goods

to

example, if

automobiles,

additional

factory,

it

an

,;,The
it

a

raw

materials and

in. Turkey;

fan

Western

ing

proc¬

Germany;
air

an

we

in

base

claim

rica,

gain for themselves.
If. tities.
The
figures ./for "capital'
productivity increases'at the rate formation" break down as shown
of only 2% per year and if indus¬ in Table
III.
</Y\Y<Y^YY/Y/YY
try can continue to provide pro¬
Construction, for consumers
ductive jobs for our
young people housebuilding—rose very
sharply
as
they reach employment age, from 1949 to 1950 and attained
the
the national output will exceed
highest level ever known.
Then
$400 billion in ten years, even tight credit cut it
back.

where

fcooperation
France.

have

we

of

the

Inasmuch

to

vY./'■'/'"•

a

Electric

In

1

__

uct

to

.

$51

from

on

This

page

24

Gain

8,003,000 '

28%

6,200,000

v

*

39
41

4,290,000

3,033,000
2,887,000

3,529,000
1,830,000

.

3,000,000

Y 92,700,000

76,369,000
19,220,000

suits

73

21

-

23,200,000
'*•

•

145,000,000

(dozens).

22
"

14,590,000 /
39
7,464,000
149

10,500,000

;

_

.21
10

159,000,000 "V

492,000,000^ ^4 V
^-- 7 Y
1,874,000,000
392,000,000,000 r < •
2
385,000,000,000
473,000,000

•-'v

Cigarettes

TABLE

/

2,008,000,000 Z

n
-Annual Rate of Output-

(Billions of Dollars)
Second

Ross, Knowles

Year

& Co.

Consumer."- purchases

Members
V

goods

and

326

/

The Toronto Stock Exchange

156

services

"Capital formation"

h

176

,

-

•

....

ma-

chinery, houses, inventories, and con¬
sumer
-

Bay Street, Toronto

20

'

(construction,

'

The Investment Dealers' Association of Canada

330

69

non-durable

of

*

-■

Increase

1951

257

national expenditures

y

Quarter

1949

Total

Telephone Waverley 1701

' /

YY.\*

90

57

durables)-.

Government purchases

Y

44

:

TABLE III

33

60

16

.

/
Annual

Rate

(Billions of Dollars)

Donald G. Ross
E. R.

Pope

George G. Knowles

G. A. Taylor

S. M. MacKay




1951

Increase

'

-

W. W. Stratton

,

L.

W. Scott

Capital formation—gross private investm't
All consumers' durables (autos, radios,
electrical

WINDSOR

*

■>...■

Quarter
1949

BRANTFORD

SUDBURY

BRAMPTON

24
9

appliances,

*

26
13

..

»

2
4

change in business inventories....
Public
construction
(not
included
in

27
—3

37
14

10

6

construction)
Net

9

3

above total)
Economic

33
-

<

etc.)
construction
Producers' durables (machinery, equip¬
ment, farmers' tractors, etc., including

Source:

90

57

•

Residential & other private
HAMILTON

Second

'

.

Indicators

and

Mid-year

Economic

■

/

prod¬

billion,

,1,056,000

Refined petroleum (barrels)
:

-

4,450,000

ranges

Y

conflict, the

1950

6,254,000 YY/'

_

Shoes and slippers..'

-

Korean

increased

Men's

name

.;

?

...

following the out¬

year

of the

Continued

.

Y_

Hosiery

■

the

Rubber tires

change of the firm

-

,/

$275 billion to $326 billion.

.

refrigerators

Radios

M.ilner7 Ross & Co.

the

TABLE I

_

.-Television sets

our

have taken place

annual rate of gross national

ally,

Vacuum cleaners

Electric

crisis

in

detail

some

which

fleet in the

Washing machines

the

in

June, 1950.

break

'

\

point

perhaps it would be well

1949

,v

Y\Y-V'Y )'

;

.

Korean

Economy^ Since June/1950

But in¬

Automobiles

Announce

the

as

Developments in the. American

and

YY.:.

;

assure

building mili¬

turning

a

examine

since

We have bases elsewhere

in North Africa, and

expect

can

security,YY /

marked

hearty

loyal

our

we

defense effort is to have

Korea today we are

tary

goods.
Only then are the probably another in Turkey, as
"consumers' machines"—the auto-'
well as one in French North Af¬
mobile—available in larger quan¬

the

and the impor¬

seen,

,

our

build¬

are

the

on

political and economic security. In

meet¬

Cyprus

is

•.

military security which will

of

have air bases in

we

today

of the greatest advance

ever

changes

lot, of

by adequate force. / ;

from

strong ally

a

Organiza¬

gradually building an
of the rule of World

gain* which

essed

man¬

has

countries.

We have

in

side by bring¬

our

world

economy,

machines, and eccumulates inven¬
tories. of

is

ing the need for restraining any
invasions by Communist

auto¬

still

allies and associates.

tant

responsi¬

are

Nations

helped

us many

acceptance

further

make

builds

buys

Atlantic pact countries

'con¬

tov

company .wants

ing

Law backed

will

defense

issue

•'

The UN

to

bility for the mutual

important

ideological

and

with: the

tion has
•

our

and

Obviously

immediate

United

The

theY confidence

business

mean

in

oc-»

now

doubt.

lead-' threshold

have the expenditures for "the

sumers.

that

is

conflict,

by the taxpayer and by
private industry. The next hurdle

Here

world.

the

in

assumes

area

is to develop the flow of war ma-

treaty,

brought to

48 nations,

six years of Japanese

Asia

for the teriel so urgently needed both
Y. v/'YYY here, and in Europe, -v; •:/ formation", we Y. Our, rearmament
program is tak¬
group the purchases of inventory,
ing form in an encouraging way.
machinery
and
equipment, and Under, General Eisenhower's
houses."

seek to

we

role which the United States

expectation

and

may

European war,

a

cupation and symbolized the new

American, people.
Under "capital

factories

their

Korea

major catastrophe

close

a

plants have

war

raising

way

prevented

signed by

inventories; and
important) the equip¬

more

that

The San Francisco peace

the

give to

of

up

can

demands

avoid.

stiff hurdle

are over one

they

their

merely

by

In

have
the

that

Russia

obtain

frightened countries on their

borders

been built

—

us

most

Within

progress, and more efficient

from

consumer

time "we

Communist

notice to

and

longer

place

a

be limited

same

the

are

we

in

war

a

At

scope.

China

Security

needs

Korea
can

no

accumulation of stockpiles, and the

distribute

made

decade

our

economy

machine,
and
more/ transport
equipment. Then we produce and

tremendous pro-

last

defense

assistance which

<

in

in

free nations. There are many, evi¬
greater production in America are!
dences of the firmness with which
a new.
factory, a new the United States and the North

ductivity has increased largely be¬
cause of more
power-using equip¬
^possible not only the hundreds of ment per worker, technological
in

Our

in

Military

in

have served

producers'

of

allies.

resisting

engaging

highly important

flow

making progress

we are

where the conflict

first to build

'

duction

Building

factor, together with stay--

The

only three

four years of this century.

for

deteriorat¬

be

to

seems

our

By

duction for defense have been met.

consumer was sec¬

ture, not only for today's

productivity per

increased

been

year,

with

almost

goods when the demands for

ping of the

and for

tainly in another ten years — per¬
haps in five—we shall touch the
$400 billion mark. Last

countries

in
meeting those
needs.
That,
hurdle in the initial planning, the

maenines

our

larger

of capital formation.
It
capital formation increase,

one

we

and then by the end of 1950,
$300 billion economy. Cer¬

tional output and

businessmen

tinued

rate

new

$100 billion economy move into a
$200 billion economy in the war
years

our

homes

new

the

in

assistance

our

ing, while

strong

is

narily

manufac¬

a

because it is through such expen¬
ditures that we will have a con¬

the upper reaches of out¬
put, which produces an extraordi¬

Productivity ■••Y'

shows

articles

tured

$100 billion a year in
rate
was
not again

i duction was

I

production

in

buy

durable goods is

ing in

$300

billion, and by

'mid-1951,
i

Yv/ YY,y\

con¬

have

The amount of $37 billion
spent

rose

rise

to

by

third.

our

is

The

such

the

that '

homes
We

East "is

Far

Communism. Fur¬
thermore, in the European theater
Russia's position with its satellite

importance and govern¬
Our American econ¬

in

ment

is this

the

remarkable

"kick"

real

had

greatly to be preferred to that of

*

this

last year.

condition

economic

1930's;

purchases

consumer

was

...

.

There

been

capital expenditures that provided

omy

assist

j quarter of 1950
irisen

It

ond

to

has

in Table II.

though part of these increases are
higher prices, the increase
capital formation is significant.

the

us

all

of

beginning

are

the

that

defense against

without limit.

due to

do anything to help the rest of the
world,
v YY'v '//■"'

for

how this

contained

able

by $20 billion and "capital forma¬
tion"
increased
$33 billion.
Al¬

enough left for high
consumption at home.

.to

the

Total

and still have

increased

Jbtfjs

•

of

year.

worthy

soft flannel for leisure, supplied
40 million motor cars, and

or

Means to the Economy

state of the

were

families to

people are fed to
overweight, clad in Sunday serge

Capital Formation and What It

ble

the rate

year,

we

understand

(2) Our present state of high
production, which makes it possi¬

second

quarter of the
of

when

last

in

The depressed

(1)

price

realize

to

with

achieved is

experienced two contrasting

1930's.

average

structed

We

Mediterranean.

about

country whose

to

sets of conditions:

States today

permit

our

$326 billion. An analysis accord¬
ing to the groups which purchase
the total national output helps us

regarding the nation's
remarkable economic progress in last decade, and stresses
importance of increased productivity. Says American economy
is strong because of marked acceleration in capital formation.
Though seeing threat of more inflation, holds deflationary
forces may overcome it provided:
(1) high taxes continue;
(2) labor is efficient; (3) technical progress is accelerated;
(4) new housing construction and new plant expenditures are
reduced; and (5) inventory accumulation subsides.

%

to

buy
new homes if
they could purchase
them at prices not
exceeding the

- "
second

the

and

United

quarter of
1951,
the
country's
gross national product rose from
$257 billion to an annual rate of

data

gives

1949

Between

the

sufficient

two-thirds of

least 30% added
compared with present

$326 billion.)

in

i:omes
are

should produce at

Chairman of the Board, General Mills, Inc.

Prominent

(Ten

percent addition to the labor force
and
20% increased productivity

By HARRY A. BULLIS

'i

inflation.

further

without

Thursday, October 18, 1951

...

Report.

17

Volume 174

Number 5056

.

.

The Commercial and Financial Chronicle

.

w (1455)

example of the diffi¬ otherwise. But if we look back at
with Commu¬ histoid, we find that war has often
nists is the exasperating course of been the result of unpreparedness.
the truce talks at Kaesong. They
In
1939, neither England nor
began early in July, nearly three France was prepared for the war
that Hitler started, and
long months ago, and there is still
it may
no sign of settlement.
well be doubted that Hitler would
A

Defense Mobilization

Moving Into High Gear
By CHARLES E. WILSON*
Director

*■

*

.

of

Defending U. S. mobilization

program

insurance against

as

and

militarily weak Uncle Sam would be duck soup for Soviet
Reveals data indicating defense mobilization is mov¬
ing into high gear, but warns scarcity of raw materials, particularly metals, is continuing problem. Points out because of
defense mobilization we are expanding our entire production'*
base, but warns program can be wrecked by runaway inflation.
Predicts civilian shortages.

talks in World War I

five

only

long

enough to

lions—let's
that

been

in

get

used

bil¬

to

hope I won't be there

long. It's really hard to

un¬

billion
Do you

means.

that

know

spending

-

Korean

the

It
,

has

still goes on.

war

been

long

the only diplomacy
Communists

the

of

billion

means

$1

minute

every

since the birth

of

As

is the

diplomacy

minus

In

49

V

j
round

numbers, the

'.

be

rea,

that unhappy peninsular long

cedure in wage and
zation.

I
have

to

would
a

;

if all

like to know

would

bright young men are going
by Selective Service,

your

to

salary stabili¬

■

.You

be taken

deferments

whether

or

will

be

granted.
tion

appreciate informa¬

how to advise your clients

on

cooperate in the defense effort.

to

production miracles
War II.
You are
about to witness them again.

been released for

have

We

are

fense

will

be

billion

a

50

and

use

lines

equip

a

be brought

the

decisively.

end

this

they

stand

and

Our

V

.

in

another

of

a

figure,

that

put

it is one-fourth
of

Most

use

the

still shy

us

is

Mobilization

last

$300 billion. It

the

in

close to

was

one-

trillion.

a

and

come

complicated

regulations

trained

interpretation
of

doubled,
them

is

CPAs

but
still

Defense

need

cal¬

and

10 years, the

has

♦

the

almost

for

demand

de-

voted

largely to contract-signing,
drawing of specifications and
blueprints, the tooling-up of industries and the other birth pains

the

pro¬

duced many new accounting

lems, and I know
to

have

cope.

of

you

how best to
with the orders of the Office

Price

rules

tell

prob¬
would like

of

me

the

one

of

National

and

the

Production

An

good-size

places

trouble

al¬

Malaya.

*An

lantic

address by Mr. Wilson before the
Institute of Accountants, At¬

to

not

Insurance

Against

Policy

As

I

have

is

often

taking

become

the na¬
insurance

being attacked

are

this

of

dium

There

are

those

who

fear

This

was

four times

a

a

are

stream

the

number

getting heavy

of

the

end

of

incen-

price

its backlog of orders

attack

with vigor and confidence,
The

materials,*
continuing problem. This was foreseen,
and long ago we took steps to increase
the
supply of steel and
-

scarcity of

raw

particularly metals,"is

a

part

.

0f

our

scarcity

problem.

arises from the expansion of these

and me-

bombers, light and medium

rockets,
completed

industry fell

at

needed

It

war.

may

soon

torrent.

of

tool

doldrums

tives, super-priorities for raw materials and new manpower. It is
getting these things, so that it,

ihdmtries

It

takes

steel

t

build

mdustnes. it takes steel to build.
new steel

fire control systems,

that

the

mass

aluminum.

■

will

that

tanks, guns of all kinds/electronic

policy against World War III.

subversion,

various types
while the Navy has
modernization
of
a

and aluminum plants.

But this is bread cast upon the

•

waters, and it has already begun

Continued

warships.

on

page

32

October 15,1951

es¬

pionage and deceptive propaganda.
All

We

said,

out' an

is

This

-

World War III

tion

billion.

five

the rate just before Korea.

machine

The

any

;

infiltration,

into

fits

of world conquest as

Announcing the partnership of

pattern

a

dreamed up

in the Kremlin, because, as

Stalin

William R. Staats &

has

said, quoting Lenin, our kind
of civilization cannot live side by

MEMBERS NEW

Co.

YORK STOCK EXCHANGE

side with the Soviet Union.
tried to deal with the

Communists

in

without

but

broken

numerous

success.

civilized

The

ize

Nations

United
in

Francisco

have

William R.

treaties

usages.

Communists helped

the

succeeding to the business of

ways,

They

promises, flouted

scorned

and

organ¬

at

San

1945, but ever since

We maintain direct

have been cal¬

UN's

harass

to

efforts

to

among

defeat

the

private wire service to the

principal cities of the United States

bring about har¬

nations.

Staats Co.

INCORPORATED

and

mony

City, N. J., Oct. 8, 1951.

is

but to prevent one.

move

warfare, the

then their actions

American

war,

are

culated

Authority.

a

when

age

many

you

Administration

fight

the result of an armament race is
is threatened;
fighting Com-^ likely to be war,
rather than
Indo-China, the British

We have

has

mobilization

defense

had to

ways

lie at the very heart of
production effort,
now

was

we

to overcome the
snoriages of machine tools, which

into

iThe first half of 1951

or

French

free countries

growing.

Mobilization

going.

a

where

world

In addition to open

laws

which

culation. In the last
number

in

we

an

fighting

are

munists in

by

Along with these Buck Rogers
figures

the

The

exceeded

year

de¬

against Communism in Korea

—yet it is only
in

at

where

various

in

■

Defense

three-year

happen—and usually

can

ready exists

goods

of

produced

States

of

value

total

war

living in

We

does.

comforting

more

a

services

United

third

approxi¬

To

look

—

we're

where

are

anything

from that word "trillion."

Yet, to
and

is

debt

way,

trillion.

away

:

-

$250 billion.

We

much

just how

"

national

mately

over-all

an

mobilization

visualize

that is.

me

$150 billion. It is diffi¬

or

to

from
fense

year

years,

de¬

as

You know how

building

are

moving into high gear.

quickly into action
of

speed

to cope with scarcities,

Today the people

Going Into High Gear
t

in any emergency.

/ ;At

well

mighty

production
facilities that

standby

operation in the inand accuracy, as
unbelievable
punishing

of

terest

the power."

also creating

and

finements in

power.

termination and

strengthen their defenses.
are

Twin-

of the United States have the de-

Army, Navy and Air Force, and to
assist our allies in the free world

We

F.

period,
we
should
be
strong that are the necessary preliminary
enough not Only to meet any chal¬ to mass production.
Over-All Look at Defense
v
lenge, but to discourage any chal¬
Mobilization ;
.In the three months from July
lenge from being made.
I feel, however,' that you* are
through September, deliveries of
For
the
supreme
objective of military goods totaled more than
even
more
interested iri getting

for three

i

cult

mobili¬

zation
Charles E. Wilson

of

World

"Among nations as among men,
Of course, we are having some
protection against a crim- temporary
disappointments and
inal is
the power
and the de- difficulties.
Of course, we are
termination to strike back swiftly having to smash bottlenecks and

building America's

now

industrial power to

to

Nathan

General

■

cost

saw

the best

elsewhere.

can

would

You

strength.

necessity

glad

You

during

to

dress:

If the United Nations
not used its strength in Ko¬

thorough explanation of the pro¬

Christ,

years?

would

You

constantly aswill reach a

peak of $4 billion a month in the
first half of 1953.

obvious that ing, Vice Chief of Staff of the U. S.
that impresses Air Force said in a recent ad-

applying ago would have been taken over
for by the Reds, and their huge armies

of

of

the

know

to

way

certificate

a

.

rapid tax amortization.

$1

'spending

like

efficient

most

for

derstand what

$1

would

You

Washington

It

days.

had

haven't

on a

curve.

^

Russia."

I

dared

plotted

cending

*

World War III, Defense Mobilization Chief asserts '*a fat, lazy

„

have

ward is

precipitate World
Two War II if they had been wellyou
see
n0^. only voiume
armed.
days' negotiation were enough to
production in the best American
bring about cease-fire order in
In any event, what alternative tradition, but you will also see the
Europe in World War II.
Four do we have except to build Ameri- result of superior methods and
days' talk brought about the end ca's might?: A fat, lazy and mili- new technological processes deoL shooting
in the Pacific.
But tarily weak Uncle Sam would be veloped since the last war ended,
after nearly 90 days of palaver, duck
soup (or Soviet Russia.
The hew weap0ns will have reconsumed

.

The delivery rate from here for-

dealing

Armistice

Mobilization

Defense

of

classic

culties

7

-

New York

correspondent, CLARK, DODGE & CO.

,

We

are

pleased to

announce

the opening of

William R. Staats &

a

ESTABLISHED

MUNICIPAL BOND DEPARTMENT
Under the management

INVESTMENT

of

LOS ANGELES

640 So. Spring

R1R. WILLIAM S. MORRIS
and

a

1887

•

.

;

SECURITIES
SAN

14

FRANCISCO 4

111 Sutter St.

St.

SUtter 1-7500

TRinity 4211
.

Co.

;

'.

;

'

~

Members

New York Stock

Beverly Hills

CORPORATE FINANCING DEPARTMENT

San

Diego
..

-

.H

Under the management

Santa Ana
Los

Phoenix

Exchange

Angeles Stock Exchange

San Francisco Stock Exchange

V

of

MR. EDWARD A. LOVE
October 15,1951

.
t

Talmage & Co.
.

New

members:

York Stock

New York Curb
115

We
.




pleased to

announce

*

the association of
George Hepburn

Richard W. Millar

Exchange

Exchange (Assoc.)

BROADWAY, NEW YORK 6, N. Y.

Telephone WOrih 4-7913

are

as

General Partners

:M

Teletype: NY1-2378

William R. Staats & Co.

aKS""S*L

r

8

(1456)

miles of

The

Impact of Electronics

than

By PAUL A. JUST*

Though stating it is too early to
developments, Mr. Just reviews

further

than

of

progress

this field.

than

developments

heating of ferrous
metals; electrostatic precipitation;
various control operations such as

in

of the flow of materials and fluids

tion. World War II speeded up

the

electronics

by

and of the speed of motors and of
years, and the -electric current in welding; varipresent crisis ous uses in measuring speed, thickmany

apparently

ness,

will

the

and

sameresult.lt

and

alarm devices

is

and flaw detection, burglar alarms,

too

for

early
to

us

the

sess

full

impact
these

of

A. Just

certain
the

•'/'

%

Peculiarly enough, the implica¬
tions of great inventions are rare¬
ly understood in their early stages.
has

engine,

been

true

of the

these
•

did

uses

reasoned

a

were

colleague

not

new

they

gineering

as

line

The war,

in

with

the

Thomas Edison. For the electronic

tube, which
scientific
the

only one
capitalize into
in

1883

Edison's greatest

was

discovery,

that

he

v..';

new weapons

tube

later

a

which

what

the "Edison ef-

the

little

flow

of

research

was

Two

years

development

Dr.

Lee

called

we

ultra

all

high

know

radar alone,

help,

cent

frequency

now

the

was

audion.

use

mnrfthfn qnlo

/

'

rSf?\commer"
broadcasting

V +
entists, had

tion of the role the

vision

any

3

York,

gin

concep,,

1.

And

chine

newscast

when

ideas

WGY

cast

the

on

story

There

were

vision

sets

the

;

outlet

of

Pearl

perhaps
in

in

use

in

to

would

Americans

give

a

seat

the

over

tele-

United

40,000 000

in the first

row

at the conference where
the peace
treaty would be
T
j
.
*
Industry had made considerabIe use of the
vacuum tube and

signed'

,

Of
eorcd

ma-




&

his

After

c"

without

runs

tions.

But

output
is

it

industries
the

production

mass

concerned,
that
of

factories

see

lines

all

of

'■(.

con-

high-speed computer. It
is quite probable that more than
will

be

used

in

first

electronic

Bush

to

was

develop

a

persue-

computer, almodel was not

and

used

electricity

only to operate the motors which
ran

the

were

machine.

Vacuum

tubes

employed in subsequent im-

electronic

100-fold

ity

'

r™

computers

consideration^!!

no

will

^

enable

the

almost
bors.

which

well

anywhere

effect of this
of

even

it

our

has

to

thp

K

ma.^hf.nJat1Jcal

reduced

the

of

Weeks

~

-

&

Harden,

Wall

1

Street,

New

N. Y.
Stocks—Bulletin—A.

M.

Kidder

&

Co.,

Wall

1

*

*

memoranda

are

on

Aluminium

Ltd., General

Black

Hills

Power

&

Light

Co.—Card

memorandum—G.

Co., Inc., 70 Pine Street, New York 5, N. Y. Also
available is a bulletin on Public Utility Common Stocks.
Canada

Dominion

&

Sugar

Company,

Ltd.—Review—James

Richardson &
and

Sons, 367 Main Street, Winnipeg, Man., Canada,
Royal Bank Building, Toronto, Ont., Canada. Also avail¬

able is
Climax
;

review of Hamilton Bridge Company, Limited.

a

Molybdenum

Co.—Analysis—Freehling,

Meyerhoff

Connecticut Light &
&

ton

Co.,

available
New

are

Haven

data

on

United Illuminating, Connecticut

Gas Light,

Hartford

Electric

chores

Light, and

!

Continental-Diamond Fibre Co.^—Memorandum—Hirsch &
Co.,

'

25

Gas.

Broad

-

>

Street, New York 4, N. Y.
Continued

Argo

Oil

Delhi

on

page

Over-the-Counter
Oil

Oil

Hugoton

of

Production

Southern

Primary
Markets

Union

Petroleum

&

Gas

Stocks

Currently Active
Gas

Heat

&

Power

»

Aircraft's

over

^Prospectus

on

Request

anh

desk-side

name

Maddida.
of

$1%®000

"Typhoon." It has

4,000 electron tubes, several

revolution which will free human
hemps

frnm

the

routine

tasks

of

nr^Stin^nwoUHno thl hlnh I
the

.

74

» has been said that history

ls but the portal throuSh which
Continued

Troster, Singer & Co.
Members:

sensomr'system

on

page

33

-

Power,
Hart-

ford
?

Power—Descriptive data—Chas W. ScranChurch Street, New Haven 7, Conn. Also

209

the

the

successive^dels
such weird names as ENIAC,
BINAC, UNIVAC, AND Northrop

&

Co., 120 South La Salle Street, Chicago 3, 111.

pro¬

«nhw3y sclentists, 1have housework. Electronics, which, of
The names of thes^^ntpfp?' course' includes radio, television,
trnn.v
iS
t»iant elec- radar and microwave as well as
termert them
?
Jvriters. bave the amazing electronic brains, has
mark t
'i ran^e
simply already begun a second industrial

^
®

A.

Saxton &

over

where

tiresome

■

in the commercial utilization of

progress

Electric and Oliver Corp.

Sln.ce ^he war, and the vacuum cleaner, the automatic
+,iaes' whlcb washing machine and the auto?ulng ^eed matic dishwasher have so greatly

fniVp

brief

a

Dealer?—Brochure—Joseph Mayr & Company, 50 Broad

almost

carried

homes

"Gleanings" there is

•

Also'available

man

from the

mechanization
Now

into

-

*

in

the full

near

brawn

In

Allegheny Ludlum Steel Corp.—Memorandum—Oppenheimer,
Vanden Broeck & Co., 40 Exchange Place, New York 5, N. Y.

century

a

transition

human

to

^James

freed

over

value

individuals-

Street, New York 4, N. Y.

entirely from physical la¬

It took

to achieve

use

has

its

and

selected lists of high income stocks

are

shares.

metal—Baker,

ment

Watt's steam engine inaugurated
the first industrial revolution—a
revolution

discussing

trustees

What Do You Know About the Stock Market and Your Invest¬

greater space and with smaller

of

institutions,

Street, New York 5, N. Y.

power

introduction

low-priced

Undervalued

make

requirements an electronic
computer perhaps as much as 1/10
as competent as the human brain,

of

York 5,

into

build

to

us

another

discussion of Florida East Coast Railway and two suggested

portfolios.;

machine now with tubes which
is about 1,000 times less competent
than the human brain. The transistor

and

Company, 44 Wall Street, New York 5, N. Y.

Titanium—Study of

a

duction.

™°Jk. on computers has
«r0!lt

been

-

vacu-

we can

War

Street, New York 5, N. Y. Also available in the current issue

factors including

speed, he states that

Service—Brochure

dealers,

of "Market Pointers"
and

com¬

Taking

Civil

Incorporated, 1500 Chestnut Street, Philadelphia 2, Pa.

pany,

increase in the complex-

of

the

Television Industry—Review—Francis I. du Pont & Co., 1 Wall

further

a

Research

Shields &

our, writing in the August "Scien¬
tific American," estimated that the

tubes would permit

before

years

Spiking Inflation—List of stocks suitable for forming the basis
of a long-term investment program—H. M. Byllesby and Com¬

plexity far greater than allowed
by vacuum tubes. Louis N. Riden-

of transistors instead of

to

the companies have

investment

limitation?, permitting
devices and especially

use

ancestry to

Shields

block to further

computers to attain levels of

complete

provements
'

these

come

as

of the years 1833, 1840 and 1858—National Quotation
Bureau,
Inc., 46 Front Street, New York 4, New York.

factory, possibly under the
guidance of a master computercontroller. One "brain" may control the divices which handle raw

a

Quotation Bureau Averages, both

have received annual dividends regularly with the
exception

the

same

becoming

New

beginnings in 1900 or earlier.
Twenty-three
been paying dividends continuously
from seven to seventy-nine years. Of the other
twelve, one
started paying dividends 119 years ago, and its stockholders
of

modern

"brain"

Broadway,

.

nine had their

trolled "by "somethfng* "ike "the
one

100

yield and market performance over a 12y2-year period. Of
the 35 companies represented in the National Quotation Bureau's Over-the-Counter Industrial Stock Index, 12 trace
their

us

with

centrally

Corporation,

.

used in the National

conclusion

litetime

will

we

the

as

are

foregone

a

within

here,

far

5, N. Y.

Jones Averages and the 35 over-the-counter industrial stocks
-

changes in specifica¬

as

Stocks—Comparative figures at Sept. 30,

Boston

parison between the listed industrial stocks used in the Dow-

i

prevent

The

large-scale

has been
'

the project

own,

fo°nheeNavhy atarost

"„d

by Ceorge d. b,
BoobHgM
Rochester, n. y., Oct. 5, 1951.

form.

spent, a lot of
days, of which

though his first

on

Harbor.

those

Vannevar
the

tele-

10,000

been

was

cessful

•
'
in

States. How
many of us then foresaw that less than
10 years later
a
coast-to-coast
television
network

Q<!e ■£
to

First

Over-the-Counter Index—Booklet showing an up-to-date com¬

where

so^man
^LLLur
reasonably long

f or)erations is

as

abandoned.

Dr.

television

air

workable

in

haps

until 1941
*1

into

money

tele¬

Columbia Broadcasting

System went

computing

no means a new one.

ag°' Charles Bab"

$85 000 had

was

operations
first

by

was

$30,000

made later that
year

was

the

,

York

™tC°KP

um

.

bage of EnSland conceived the
theory of a computing machine to

authorized to be-

the

But

a

~

tube

of

from

commercial

July

th

Earnings—Preliminary 3rd quarter earnings
Corp., 120 Broadway, New York

Hanseatic

Y.

1951—The

dude reliability, size, operating
enough. The' temperatures,
and power conthe speed of the sumPtion. The
aewes.t1 transistors
necessary to per- developed by the Bell Telephone
control anti-air- kafc>s> when perfected, will over-

The idea of the

in 1928 that the

mdp

New

was

?*?iii

economicalinceSin^elds

N.

Bank

York

New York City Bank

.of aB of th®se devices.

magnifi-

means at his disposal to put his

vacuum

Schenectady, it was not
fw
that wmht
WNBT, the NBC

radar.
a

handle large-scale problems at
became a high speed but had insufficient

broadcasts

commenced

This

Electronic Computing Machines

shaping the future.

was

regular

waves,

the capacity of the human being,
It was to this problem of computing machines which the scientists gave their attention.

Television Developments

Although it

pos-

opera-

not

?Ver 125

s

first

Brit-

speed and an
accuracy of prediction far beyond

In

comoon^n in"
TnP.01il

would have in

wave

away.

as

although

was

feet a device to
craft fire with

DeForest,

.

n

Integration of the

4, New York.

York

York City Bank Stocks—Third quarter comparison and
analysis of 17 New York City Bank Stocks—Laird, Bissell
& Meeds, 120
Broadway, New York 5, N. Y.
'

Progress. Its limitations had been
aPParent for some time. These in-

discovered

....

sc

makes

explaining about put-andBotts, 50 Broadway, New

&

New

,

was

the audion its first commercial

JLaiitv

5.

Please!"—Brochure

options—Thomas, Haab

—New

which had made all this possible

telephone company gave

a

New

system. The

computer

.

airplanes many miles

detector.

he

1915 the

..

was

that

by

...

mit

as

further

perfected

electronic

and to catch their reflection from

on
the subject until 1904
Fleming developed an elec-

tron

call

York

out-performing human beings in
virtually every function of the
nervous

the New York

on

Exchange, 86 Trin¬

ity Place, New York 6, N. Y.
"Information

aspects. They are the core
the completely automatic production line of the future. We already have electronic devices

not

airplanes made it

when

for

ish had completed the first five of
a great chain of stations to trans-

and

men made available for research,

great increase in

done

calculators

new era, almost awesome

and

Co., 14 Wall Street, New York 5, N. Y.

Curb Exchange—Booklet—New York Curb

material receiving and inspection;
a second, the actual production
facilities; a third, the inspection
and packaging of the actual finished product,
Ironically,
the
vacuum
tube

a

and

and the

resources of money

large current could be controlled
by a small one. The great in/ventor did not appreciate his discovery

&

more

invention. It

an

means

are

pleased

Airforce Expansion and Aircraft Stocks—Review—Dean Witter

^

sensory

will be

following literature:

Industrial Classification of Securities Traded

perhaps

he

feet," which put into simple language

speed

firms mentioned

send interested parties the

to

.

were

did

was

which

became known

of

with the urgency for

brought about a great new
of developments. In 1938 the

has its roots in

discovery of the great inventor,

en¬

task

electronics which
a

nor

the

invention of

unlimited

form

yet

railroad, the electric
the motor car, and the
airplane. It has been true, also, of

motor,

at

technique,

associated

communication."

steam

the

Wiesner's

M.I.T., the great mathematician
Norbert Weiner, has pointed out,

tremen-

lives.

the familiar door opendevices. The place of elec-

fessor

limits

dous effect which electronics apdestined
to have
on
our
pears

This

entirely

as

was still largely in communications as a supplement to
existing techniques, and as Pro-

we

outline within

machines

metal

as

ing
tronics

already

can

well

as

develop-

ments, but

such

fire and smoke detection and the
automatic stopping of machinery

as-

"before the missiles

high

strain, weight, transparency
color; and various detection

have

It is understood that the

the solution of mathematical problems. They are the basis of an

,

induction

inven-

Recommendations and Literature

year

these

But

celeration

and

rechris-

actually built and' flown."

its sister, the photo cell. The applications of electronics included

science

one

months

One of the few things that can
be salvaged from war is the acof

Laboratories,

of operation "Ty¬
phoon" has saved the government
$250 million and years of time by
simulating nearly 1,000 test runs
of guided missiles in the last ten

factor in future economy, but investor must exercise selection

Paul

Princeton

Concludes electronics will be important constructive
m

Dealer-Broker Investment

dedication ceremonies of the RCA

Center, disclosed that within less

electronics in computing machines and other devices. Pictures
second Industrial Revolution arising out of electronic age,
with electronic production already in excess of $4 billion an¬

nually.

better

to

in

tened the David Sarnoff Research

progress

Discusses

wiring, and its
exact

are

part

;

full impact of electronic
leading up to inven¬

assess

of radio and television.

tion

I

one

25,000. A week
ago last night General Sarnoff, at

Executive Vice-President, Television Shares Management Co., Inc.,
Chicago

intricate

components

N.

Y.

Security

Dealers

Association

Trinity Place, New York 6, N. Y.

Telephone:

HA

2-2400.

Teletype

Private

wires

NTT-376;
to'5

377;

378

'

Cleveland-Denver-Detroit-Los Angeles-Philadelphia-Pittsburgh-St. Louie

43

Number 5056

Volume 174

(1457)

The Commercial and Financial Chronicle

.

.

.

Eleanor.

and

Edw, Parsons

Forming

From

His

ence.

ten his

The

of

"broad"

the

these months.

dering

tunes

&

Mericka

J.

Wm.

of

say the
insofar as

are

concerned he

has

now

Partnership

; LOS ANGELES, Calif.

nouncement is made of tne forma¬

of

tion

tne

partnership of
South

new

William R. Staats & Co., 640

Spring

succeeding to the

Street,

business of William R. Siaats

Co.,

in 1887

Incorporated, established

investment house to

and the first

incorporated in California.

be

The

firm, one of the largest

new

West, will maintain a mem¬

in the

New York Stock
Exchange in addition to its char¬
ter membership on the Los An¬
bership

the

on

Exchange and mem¬
the
San
Francisco

geles Stock
bership

on

Stock Exchange.

Partners of the firm are:

Donald

Earle

Jardine, Jr.; Edward C. Henshaw;
Richard
W.
Millar; Harry B.

Paul V. Barnes; John E.

Brooks;

as

friends and

another

Carlisle

Bargeron

minded, progressive thinker at all; that indeed, this standing adds
weight to his charges. But it can't be that way. He has left the
church. He was one of the State Department crowd, the fact that
he enjoyed its blessing, ran with the same people, shared the same
thoughts, was responsible for his political stature. There is no
room or career for him among the Taft-thinking, those backward,
m

\

.

The rather

widely held impression in political Washington is
that he has seriously erred in a desperate attempt to build up his
declining political stock.
'
\
.

If

this

is

.

,

profitable lesson to
those youngsters who, inspired by the accomplishments of Alex¬
ander the Great, want to set the world on fire. They should study
the career of this veteran youth leader carefully.
Harold

true, his story should afford

was

a

elected Governor of Minnesota

his sketch in "Who's Who" brags that he was
in

Minnesota

United States.
was

an

history

This

and

the

at the time in. the
of the New Deal and there
itself and

awful lot written about how youth was asserting

that

perhaps, such forward looking, progressive youth as Harold
represented was the answer to the New Deal. Such a youth move¬

ment

never

41

was

years,

old

but

he had

international affairs; he had the

an unusually
"fresh" view¬

Yet his sophomoric oiscussions of world

him in his

were

making

so

lot o'

a

vm?lthy and influential

worried those master politicians, Roosevelt the Great

a

champion.

impatient,

he to be served that he went into Ohio

was

behind him because he was an "intelligent, forward looklLg ^apuMicEn witn an undeistancing of world affairs," Knowing
how to

do the

the extent

Pacific

of

if

anj

amazing how

right things, he had played ball with Roosevelt to
getting appointed to Admiral Halsey's staff in the
you look over his "Who's Who" biography it is

fellow, in

desk job, can garner as many decora¬
just the right sort of cooperating Re¬
publican for Roosevelt to name as a delegate to the United Nations
tions

as

a

a

he did; also he was

formation conference in San Francisco.

He was always in there oil
big things, "broadening" himself and becoming versed in inter¬
national and statesmanlike affairs. Indeed, he had come, by the
time of the Philadelphia 1948 convention, to be called a statesman
by the global minded editors and columnists who said that if we
had to have a Republican President it should be such a man as he.

the

However, even here at Philadelphia in what has now devel¬
oped to have been his "greatest hour" his "youth" did him wrong.
He had set himself up as a

"youth" leader; "those of

us

the world in World War II must.be served."

By

who saved
*

of accentuating his leadership of youth as against

way

Sinatra's fans.
the

mature

Well

sir,

you

delegates looked

seen the way in which
spectacle. It was a silly

should have
upon

this

thing for Stassen to have permitted and it ruined
may

have held for the nomination.

;

•

any

.

chances he
;

En¬
This announcement is not

with

corporated will continue their as¬
sociation with the new partner¬

New Issue

-

an

ojjer oj securities for sale

,

or a

solicitation oj

an

offer to buy securities.
October 18, 1951

,

„

ship.
addition

In

William R. Staats

in Los Angeles,
4

&

offices in

have

Co.

office

head

the

to

$50,000,000

San Fran¬

Hills,

Pasadena,
Beverly
Ana,
San
Diego

cisco,

and
Phoenix. Through its New York
correspondent
Clark,
Dodge
&
Co., established in 1845, the firm
will maintain direct private wires
Santa

all

to

modity

Celanese Corporation

stock and com¬
in the
United

principal
centers

been

'

•

of America

Debentures, due October 1,1976

the firm has
identified with the

Through the
closely

and

corporate

3V2%

•L

States.
years

under¬

municipal

writing business, financing many
of the large and outstanding de¬
and industrial enter¬

velopments

Price 100%

in the West. Among the
corporations with whom the firm

prises
has

been

plus accrued interest from October 1, 1951.

prominently identified
So. Calif. Edi¬
and Union Oil Co. of

for many years are

Co.,

son

Copies of the prospectus may be obtainedfrom such of the undersigned
(iwho are among the underwriters named in the prospectus) as may
tegally ojjer these securities under applicable securities laws.

California.

Today, William R. Staats & Co.
offers

and

complete

a

rounded investment

well-

banking serv¬

underwriting,
and whole¬
industrial,
municipal,

including

ice,

retailing

brokerage,
saling

of

government,
and

public

utility,

insurance

and

bank

■

6

„■

.

>

Jtfk '

-r

Dillon, Read & Co. Inc.

and

securities,

The First Boston Corporation

Glore, Forgan & Co.

supervisory and consultation

Merrill Lynch, Pierce, Fenner 4 Beane

departments.
Formation of William R. Staats
& Co.

was

Blyth 4 Co., Inc.

previously reported in

Goldman, Sachs 4 Co.

Harriman Ripley 4 Co.

Kidder, Peabody 4 Co.

Incorporated

the "Chronicle" of October 4th.

Cazard Freres & Co.

Lehman Brothers

Smith, Barney 4 Co.

Stone 4 Webster Securities Corporation

E. F. Hulton Adds
(Special.to The Financial Chronicle)

FRESNO,
row

E.

Hutton

F.

Tulare

with

Calif.—Paul

Union Securities Corporation

H.' Dar-

has been added to the staff of

Street.

&

Company,

He

was

2044

previously

Bailey & Davidson.




fi

White, Weld 4 Co.

such

old fogies as Dewey and Taft, a hot shot New York publicity man
sold Stassen on the idea of having a hundred or so youngsters
follow him wherever he went, squealing in rapture like Frank

S. Staats; John E.

personnel formerly associated
William R. Staats Co., In¬

tire

and do¬
who

men

political aspirations to the hilt in the feeling

seeking to take Presidential delegates away from Bob Taft
and in doing this he almost had to come out for repeal of the
Taft-Hartley Act. He lost prestige here but when he came to the
r. liaae.phia coiwtnuon a iew months later he was still a formid¬
able factor.
He had a sizable block of delegates and plenty of

at the age of 31;

the youngest gover¬

youngest

at the height

was

he

on

mont; Chester M. Glass, Jr.; John
F. Kelsey; John

as

pos¬

money

say

reactionary Republicans,

a

in 1948

that his attack on the State Depart¬
doesn't afrect his'standing as an "internationalist," a broadprobably

mind

But

of the despised "isolationists" who

one

time

the

the abstract.

they

forward-looking young man who kept
etc., he will become just

a

At

Jardine;
Wm.
S. Patterson;
J.
Lester Erickson; Allen B. Beau¬

Cameron; Marvin M. Roberts.

years,

He seemed to have the

Presidential nominee. By the time of the 1948 convention
amazing how much financial and delegate support he had

is

it

backed

abreast of the times,

nor

Royce; George Hepburn; J.

three two-year terms.

mestic afairs imorcssed

acceptable Republican who,
notwithstanding the mossbacks. in his party,

ment

An¬

said to have got¬

1944 he figured in the Republican Convention as

as

sible

in

held with them, an

You would

—

was

works just exactly like theirs although his effusions were far more

given support

doesn't realize the world has shrunk.

New

Harold

with the advanced writers of the times, and he turned cut literary

McCarthy and this will alienate the support
he has had. He is now saying pretty much the
same things McCarthy has long been saying.
Mark my word, the Leftist propagandists will
go to work on him.
From the status he has

was

William R. Staats & Co.

charmed political exist¬

point of the young towards globahsm and the relationship between
management and labor. In other words, he was in perfect accord

least.
his personal political for¬

to

Mr. Parsons was

officer
Co., Inc.

an

ren¬

service by speaking up, even though

a

But

think also that he is

I

tardily, to

Avenue.

a

mustered.

all

formerly

acting

and

Republican County Leader and was
politically around among the Scandi¬

acquiring the right financial people

early

tially right but I wonder where he has been

Euclid

youth

youth movement held sway in Minnesota for six

and Harold served

against the State Department stick, a question of who said what at
a particular conference.
I think he is substan¬

&

up

political astuteness from him.

knack

E.

a

navians and Germans of Minnesota.

of the News

propaganda of. the times, the impression in political
Washington is that the political saga of Harold Stassen is nearing
an end.
It is not a question of whether he can make his charges
In

Ohio — Edward
Parsons, Jr. is forming Parsons
Co., Inc. with offices at 925

daddy had been

said to have known his way

By CARLISLE BARGERON

CLEVELAND,

talking

Nevertheless, Harold seemed to have

Washington

Ahead

E. Parsons, Jr.

forever

were

youthfully themselves.

Own Investment Firm

Edw.

They

9

Dean Witter 4 Co.

Salomon Bros. 4 Hutzler

10

(1458)

;

1929,

What is

Happening

Class

Pierce, Fenner & Beane,

Members New York Stock Exchange

Railroad

in

revenues

Class

as

railroads

I

so

con¬

looks

a

1951,
are

cerned, should reach an all-time
record, but net income will not.
So

far

the

as

overall

it

should

be

of

indispensable

usven

industry

million.

will

report around

$10.3

to

billion

here

year—passing
the $10 billion
mark

first

for

be

may

George T. Peregrin

was

of

rate

good $130 to $180 mil¬

million back
1947-1949, so that

Africa

ore

,

v

of

of

final

four

net

months

will

northwestern

for

pay

show

net

income

of

$272

million

was

$1; million lower than the $273
million

reported for the
sponding 1950 interim,

f

There

corre-

$600

to

$620

million

net

of

accelerated

million

in

the

first

six

the

buyers acquire it for speculation or hoarding. A larger per¬
centage of the output will henceforth be allowed to be so treated,
even though the governments will have to earmark a substantial

mating 1951 earnings of the rails.
Using the carriers' own forecasts

by the end of October, this could
boost 1951 rail net to around $640
million, to $660 million. If the ICC

filed

in

the

rate

The

<

'
,

.

■

at

such

time

war

is

over,

(Last Half of 1950

vs.

as

very

■

of

Korea.

statistics

Percent Gain

v.

However,

available

are

Pacific

Northern
Texas &

Southern

Dollar Gain

•

some

ish.

<

;v

which

Grande Western

18,898,000

16.4
and Pacific

11,400,000
16,100,000
4,696,000

15.9

15.8

(1950

vs.

carriers, for

George

Dollar Gain

$12,000,000

Southern

"

7,100,000
9,100,000
8,700,000
6,500,000
3,000,000
900,000

Percent Gain

a

Sirota

Street,

&

New

200

when George Sirota

600
240

Sons,
York

„

60

City,

Stock Exchange on Oct. 25

acquires the

Exchange membership of Wesley

970

"•

Mr

Oler.

firm

are

-

change will be simply that a larger percentage of
will disappear in private hoards instead -of
satisfying the monetary needs of the gold producing countries.
the

current

Other
Norman

Benjamin Sirota.

partners
L.

in

Sirota

output

Now that the dollar gap

has reappeared with a vengeance, this
some importance.
Any increase in gold
hoarding, unless corresponding to an increase in the output, will

consideration has assumed

tend to increase the deficits in dollars and other hard currencies.
Indeed the agitation in favor of a free market was based

exactly

on

the assumption that the increase of the profits of
gold producers
a sufficient increase in the
output to ensure that,

would result in
in

spite of larger demand fbr hoarding, the monetary gold stock

would increase.

?

If we should find that, owing to a decline of the
premium, the
increase in the output does not offset the increase of
hoarding, then
the decision of the International
Monetary Fund would have to be
of

as

having got for

the

dollar

us

deficit

the worst of both worlds.

would

or

loans.

mean

that

the

An

United

dollars, whether in the form

►

*

such circumstances there would be

:

in¬

States
of

'

strong revival of the
agitation of favor of an increase of the dollar price of
gold. This
agitation would not assume the form of a demand that the United

would

will become members of the New
York

440

net result of the

In

the

while at least.

500%

3,000

increase of gold output.

would have to provide even more

a

States should devalue the dollar.

Such a change would stimulate
exports and discourage American imports, and would
aggravate the evil which it is expected to cure. The
alternative solution would be an all-round increase of
the gold

American

terns mentioned will be adversely
affected "to a greater extent than

Beaver

1949)

..

we

as

-

GAIN IN CERTAIN TYPES OF WAR
MATERIALS

high premium would be advantageous, for it would encourage
The main argument in favor of free
dealing in gold was precisely that the additional profit it secures
to producers would tend to cause an increase of the output. Should
a
decline of the premium wipe out more or less the additional
profit there would be no increase of the output. In that case the
a

an

grants

war

coast, but at such time

To Be N. Y. Exch. Members

TABLE II

of

deplored

expect that traffic and earnings of
the western transcontinental sys-

other

tages of the change will be heavily outweighed by its disadvan¬
tages. From the point of view of the generaL interest, as distinct
from the sectional interests of the gold producers,4tjhe; maintenance

materials to the

shooting ends in Korea,

.

Unless the premium is reasonably well maintained the advan¬

/

crease

19,888,000
6,063,000
40,597,000

44,000,000

r

Pennsylvania,
B. & O., for
also benefiting from
as

west

18.9

Moreover, any decline in the premium is bound to stimulate
buying for hoarding or speculation. Even so it remains to be seen
whether the market can absorb a substantially increased quantity
without a sharp fall in the premium.
' ^
.

and

53,833,000

18.8

Chicago & North Western
Chicago, Milwaukee, St. Paul




such

Central

$8,241,000

20.2

Pacific

Western Pacific

Y.

example, are
shipments of

23.4

Northern

Denver & Rio

N.

28.2

Pacific

Pacific

Atchison, Topeka & Santa Fe
Great

centers,
:

29.4

—

that, owing to the uncertainties of the political and economic

are

presumed that other rail¬
serving the big industrial

46.7%

Western Pacific
Union

is

roads
;

sensitive to changes in the supply. Jn the absence of an in¬
of the demand the release of large quantities of gold is
Admittedly, the chances

crease

v

tation

'

Last Half of 1949)

'

:

a

price. The extent of this decline will determine the effect of
the change on gold mining profits. If the volume sold at a pre¬
mium is doubled but the premium is halved then producers stand
to derive no benefit from the change. And the free gold market is

§ outlook, hoarding demand will tend to increase rather than dimin¬

It

FREIGHT REVENUES

V;
supply of gold in the free
declining tendency of the premium over the offi¬

of

cial

certain « rails

TABLE I

-

-

result

market will be

the rail¬
clearly indicate' that the Western
roads estimated about $10.2 billion
hands down a final decision in the transcontinental systems have ob¬
gross and $757 million net railway
pending
mail pa.y
case,
which tained considerable traffic as a re- •
operating income for 1951. Our some observers expect this
suit of the war in Korea. Since the, i
year,
railroad contacts in Washington
and the rails get a 50% permanent Korean hostilities started in? June,'': ^
estimate the recent rate boost will
boost retroactive to Jan. 1, 1951, 1950, «
comparison
of freight
give Class I railroads about $100 we
figure it would add roughly revenues for the last half of 1950
million additional gross for the
$30 million more to 1951
net, compared with the last six months
final four months, which would
which would boost Class I profits of 1949 throws some light on what
raise overall gross to about $10.3
to around $670 to $690 million. It railroads have benefited from the
billion, and net railway operating may be noted in passing the latter Korean incident. The
comparisons
Income, after a 50 % income tax range would make Standard & are shown in Table I.
; ;
rate, to about $807 million. Esti¬ Poor's Railroad
Department's
Some statistics, are available as
mating 1951 "other" at about $270 estimate of
$685 million look to
shipments of certain types of
million, miscellaneous deductions piretty good!
war
materials.
Table
II
shows
at $50 million, fixed and contin¬
the
gain in revenues
in
1950
gent charges at $465 million, the
One of Our Favorite Rails
over 1949 derived from shipments
AAR's
estimate
rounds
out
to
Great Northern: We like certain of
military vehicles, airplanes, air¬
about $562 million net income for
other favorably situated rails, of craft
and parts, guns, small arms
course, but we like GN because and parts, ammunitions and ex¬
*A talk by Mr. Peregrin at the Rail¬
(1) it has enjoyed better than plosives of certain western rail¬
road Industry Symposium, New York So¬
ciety of Security Analysts, Sept. 28, 1951.
average growth of ton miles since roads, both in dollars and percent. 4
case,

own requirements.
the increase of the

proportion for their

standpoint of. shipments of supplies and materials for rehabili-

months,

and may approximate $40 million

ways

gold which is sold in the free
The practice adopted

sold is sold in the form of crude objects

will continue to benefit from the

charges, which amounted to $19.3

of esti¬

several

are

Einzig

the." bound to affect the premium appreciably.

that

"hot"

amortization

Pau]

weighing one ounce or. the multiples of one ounce, is expected to
be upheld, in order to keep up appearances that the gold is really
used for industrial purposes, even though it is quite obvious that

region<

sider

for 1951. If the ICC orders rever¬

sal

Dr.

however, whether

seen,

after the war, that gold so

the Far East. There is also to'con¬

income

list

:

responsible for ensuring that the

good

miscellaneous deductions. Result—

be

diminished

market should be sold for industrial purposes.

improvement over the low
the real net earnings of 1950 were rate of July and August, we be¬ What Rails Would be Especially
Affected
in
the
Event
of
lieve they will remain well below
$715.8 million.
the profits of the closing months
Complete Cessation of
What is happening to rail pro¬
in 1950, when they averaged bet¬
Hostilities in Korea?
fits? You all know the answer—in
ter than $100 million per month.
the first seven months this year,
This is a rather difficult ques¬
Without allowing for reversal of
tion to answer with any degree
gross revenues increased $857 mil¬
accelerated amortization charges
lion or 17.1%, to $5,853 million,
of
because
complete
accuracy
and
additional
back
mail
pay,
but all of the gain yras absorbed
statistics are not available
;as to
(retroactive to Jan. 1, 1951), our
rail shipments of war materials to
by higher expenses, taxes and
present estimates indicate about
mail

to

of the most

one

producing companies and countries will really benefit by
change. It means that their respective governments are now

the

of taconite in the
region. While GN has very
reserves

entire

investments.

remains

now

Britain's

the gold

should naturally benefit this very
fine rail system.

earnings in

in

items

overseas

It

tion, growth and development of

railroad

.

important

30 years' reserve of high

the

While

of

sonably, having been forced to sell most of
gqld at prewar price in spite of the sharp
rise in the cost of gold mining. There is natu¬
rally much sympathy in Britain with the point

need "Kaffirs" constitute
•

little land for possible oil explora¬

months.

removal

gold-producing countries of the
British Commonwealth. Moreover, a very large

high-grade

spring and

summer

achieve the

of view of the

fear

grade iron ore in the Lake Superior district. There
are
also
same

to

running out—at the St. "7 proportion of South African and other gold
Seaway
hearings
in • mining stocks is held by British investors. In-

were over

some

Canada

It is

their

Congress earlier this year, Secre¬

huge

the

widely realized in London that
gold producing countries— especially South
Africa—have been treated unfairly and unrea¬

tary of the Interior testified there

in

and

the ban.

the

extra around

pre¬

supported

$4.00 dividend rate,
an

a

dealing im gold, British opinion was
strongly in sympathy that the efforts of South

the

from

its embargo on free dealing in gold at

United States Government in its opposition to

of.

(10)

7.3%

revaluation.

free

con¬

ratio

currency

mium "for industrial purposes" was welcomed with
relief in Lon¬
don.
For even though the British Government

'

the

Lawrence

net

now

its

with the rate in effect during the

the

about $67.5

rates

to

iron

reduction in
outlays
compared

and

maintenance

lion less than the $783 million net
earned in 1950. Included in 1951
net

higher freight

effect,

in

history—but net income
a

annual

finally
of

year-end.

As

income should improve because of
the

the

time

railroad

the

dropped to $582
Undoubtedly the annual

the

and

return

plus possibility of

months

on

year;
(7)
price-earnings

well protected

net for the
first eight
dropped somewhat lower,
possibly to $565 million—but from

this

this

$11.00

liberal

months

gross

revenues

Fund to withdraw
.

1947-50, rising to $9.11 last
and to an indicated $10.50

standing;

of

rate

$10.5

85%

remedy for gold shortage in worldv/ide

no

LONDON, Eng.—The decision of the International Monetary

only about five times; (8) excel¬
lent management; (9) high credit

car¬

were

floods in July and partly be¬
cause of lower traffic, the annual
rate
of
earnings
for
the
first

that this

us

4

income
is

Monetary

on

Expresses doubts whether free gold trading
.will benefit gold producers or increase gold output. Foresees

1940;
assur¬

good

which

source,

servative

sas

turbing to all

and

embargo

free gold dealings for indus¬
analyzes probable effects of restoration of free

trial purposes,

(6) average earnings
per
share in last four

$7.84

to

the first half this year, b,ut partly
because of the effects of the Kan¬

somewhat dis¬

continued

this

year

us.

straight seasonal projection
of railroad earnings for the first
earning at the annual
rate of $715 million net income in

con-

cerned,

"Burlington"

of

years

A

riers

charges since

withdraw its

to

'gold markets.

non-

tax exempt;

This

year.

in

profitable investment

very

the

ance

six months of 1951 shows the

rail

picture is

this

fixed

from

the low side to

on

in

(5) its
in

of

railroads

bit

reduction

31.7%

Einzig, referring to decision of International

Fund

equipment debt and 41.7% reduc¬
tion

Favors Great Northern.

far

Dr.

we mean

road's

Analyst states outlook is disturbing in that Class I railroads'
gross will this year reach all-time record, but net income will
fall considerably below 1950. Cites revenue absorption by
higher expenses,.taxes and miscellaneous deductions. Explores
potentialities from possible cessation of Korean hostilities.

I

By PAUL EINZIG

railroads

I

Thursday";-October 18, 1951

British Favor Free Gold Market

aver¬

(by profit mar¬
ratio of net railway
operating income before income
taxes to gross revenues); (4) the

gin

...

31% for Class

vs.

(2) longer than

haul; (3) better than average
profit margin—16.2% average for
the 1947-50 period, vs. 14% for

By G. T. PEREGRIN *

Class

The Commercial and Financial Chronicle

age

To Railroad Profits?
Merrill Lynch,

58.7%,

or

I railroads;

.

therefore
-

value of all .currencies of the countries associated
with the Inter¬
national Monetary Fund. Provision for such a
change was made in
the Bretton Woods plan, and it is
arguable that the application of
the relevant provision is called for in
existing conditions.
The main argument against such a
change is that it tends to
produce an inflationary effect. This would only be
true, however
if the increased- "Volume of gold is allowed to result
in an
in the volume nf
currency and credit. Under the systems
in the United States and elsewhere this could

An increase of the gold output is
needed,
internal currency and credit

•of the

dollar gap.

the

it

and

in

was

increase'

operating

easily be prevented.

not to widen the basis
structure,.but to reduce the

While in the old days of the automatic gold
standard
impossible to separate the internal effects of an
increase
effects, in our days
problem.

the volume of gold from its international
this would not present an
unduly difficult

Volume 174

Number 5056

.

.

The Commercial

.

and Financial Chronicle

(1459)
what

or

M3.lt!

ITlGaSlllGS

aiivKwoavif

wrong.

to

as

of Economics, New York

Executive

Vice-President,

Committee

University

governmentally-managed
public purse by adapting

Says people

will

taken into

were

.

requires
to

.

.

definition.
that

appears
term

.

.

,

.

describe

.

,

.

their

The

is that

mental pro¬
grams

is

assume

that, the

label

that

majority
the

believes,

a

to

1 f

e

m/

.

Walter

"

one

find \a

in

case

E.

Spahr

"

'

tend that what he proposed
in the interest of the

was

.welfare—as he chose
to

state
In

to

con-

did

or

general
it

see

it

or
••-

•

this country

have

Communist,

progressivism

"Socialism"
the

It is

vroaress

solve

can

in

and

fair

those

com-

to the

the

he

says

to

'nroeressiv

crisis

breakdown

resulting

Marx

Part

Socialism'

of

II

capital-

Proqress

published

Earl

bv

Browder; 7 Highland Place
I

N. Y.

p.

13

of

years

Yon-

'

4.)

-

through-

his

national

(leadership in developing the
gressive

program,

cit.

(ov.

"F. D. Roosevelt

the

©ut

1950

Browder'further

Says
p. 91):

found

it

pro-

tacti-

"cally expedient to emphasize that
it is not
There

socialist program
reason
to believe, how-

a

is

<ever,

that Roosevelt himself

liully

aware

was

that the progressive
consists of steps toward

program

socialism, and that his reasons for
avoiding discussion of that issue
-was

expediency."
j

\

.

How Truth Is Obtained

;

As

areas

wife

Satires in
commands

in

ter

reason

than

that

death.

the

conditions

has

she

answers

become,

monopolies"cannot

or

-

and

description.
premises which

Therefore,
'

as

.

These extend to

one
A1

^

attempts

„r

*

,,

to
j

in

mean

a

given case,

it is

necessary that it be described pre-

must

jective"
,

To appiaise it obiectivelv
to aonraise it objectively,

required by scientific method,

we

clearly
are

understand

means,

our

good

We

see

many

people, including many o£

free

is

our

adopting attitudes instead of getting and presenting facts. We see

so-called

social

scientists

it

may declare to them adopting and
following leadbe the general welfare. The Fed- ers, thus
disqualifying themselves
eral. Government may legally act as
independent, competent, truthonly under the specified and lim- seeking individuals. We see these
ited powers granted by the Con- posers
and
assumers-of-an-atti-

aa

1

w\

_

Jl

J.1

and

in

one

her

she

no

a

or

degree—we have drifted from ob-

This

in

is

the

•

"Reactionaries."

which they think they are
progressing and why, or what it
is they wish to conserve and why,

economic

revealed

1

ward

jective, to subjective, appraisals
bet- 'of what is good or bad,
desirable
undesirable,

111

_

careful,

hus-

desires ,or

•

_

They are not
do
as lb the SCldltlSlj XO 0X-*
is til" scientist, to explain what it is they are liberal
about and why, or what it is to-

Into Dictatorship

To a high degree—apparently to
^what is for us an unprecedented

When her hus-'world.

_

in

or

the

what

is

it

they

against and why.

are

As

reacting

one

observes

and

what

we

premises

political

and

"ob-

economic

to

<

by

world except those yielded by the
operation of the forces of free
and fair competition. There are
no principles of Economics that
meet the test of science except
those learned from the operation
of the forces of free and fair competition.
The principles of monopoly
are
stated against the
.background of those of competition. Monopoly prices are said to
be-high because they are meas,ured £ against
the lower prices
.which competition tends to proThe productive

bushel, -there is
basis on which any
Per

no

amble, to
...

secure

ground of agreement..A

sellers—reached

rect or proper price has
meaninS in an objective
different

0pini0n

as

a

no




dictatorship. And such peopie find that their conclusion
rest upon reIiable evidence.

'

We should profit from the im
p].essions of the Communist, Ear

Browder, as to how far our drif
jnt0 government dictatorship h
taken
the

us

as

we

Welfare

1950 he said

pursue

nrw+iwnA

<

Continued

; ;

,r

This announcement is not

an

ojjer oj securitiesjor sale

or a

solicitation oj an ojjer to buy securities.

■

October 17,1951

New Issue

•

166,864 Shares

0

Robbins Mills, Inc.
Preferred Stock, Series A
4.50% Cumulative Dividends, Par Value $50

per

Share
Mm

(Convertible
The

on or

prior to November 30,1961)

Company has issued warrants, expiring October 30,1951, to holders of its Common Stock, evidencing

rights to subscribe for shares of Preferred Stock, Series A, at the rate of l/5th of
Stock for each share of Common Stock, at the subscription price

-

prospectus. Preferred Stock, Series A, may be offered by

a

stated below, *11

the underwriters

as

share of Preferred
as

set forth in the

set forth in the prospectus.;

Subscription Price to Warrant Holders
.

$50

per

share

'

Copies oj the prospectus may be obtainedjrom the undersigned (one oj the underwriters named
legally ojjer these securities'
under applicable securities laws.1
'

in the prospectus) only, by persons to whom the,undersigned may

s*

Subjective Appraisals and

man

r^nr*^

OU page

•

other

,

The subjective approach to hu¬

problems is the approach of
untutoted, of the tyrant, of

way o

Writing
i
(in his KeynesFos

price is subjective in nature and
has no standing in science.

Dictatorship

the

State.

cor-

proper

tha

lose fo

to

or

and

5

com-

sense. A

to

wealth;

measures

V-'-'a

—

^he

impair

*:

Z?0 lpw' concerned the buyers
or improper All those
directly
an(j

against

■

the blessings of we are doing 111 these respects or

■;/•

proper

mon

react

promise to

the state over the Pe°Ple- degree an arm of the Socialist poStates become what St. Augustine Jitical movement in this country,
ca[led them_..great bands of rob. wJth the focal pojnt -n Washing.

activity and

Dr. Spahr before the
Harding ColPerson who WOUld Substitute
1951.
his notions, will, and power for

is,

who

sized these days that we have no tended
that
arbitrary
power-undesirable
in
Economics
and
objective — that is, scientific — should exist in any department of Government.
standards of right and wrong, of our government.
That- ConstituIt is not clear that we are keengood and bad, in the economic tion was designed, states the Pre- ly and generally aware of what

the

An-address

Arkansas, Oct.

Sociology private •-enterprise, and

have departed
of science and

of

and.stagnation.

what

economic

Government,

"baVe beC0I:le', esse"tially subjec- us this great-heritage; who under¬
J6 apP'(ulSa
agitations by stand that the Welfare Stat
sc£rl^d imitation on the power:their authors—in short, in high means government paternalism

social

and

Objec-;nomics

'The Bas.is of Objective Standards bers." (Augustine De Cmitate ton. It is revealed in much of our
of Right and Wrong in the
Dei, Cap. IV, col. 115, Thesis 7.) journalism and m a great proporY'
Economic World
jj'-vThe framers of the Constitution jtion of the debates among our
It clearly needs to be empha- of the United States never in- ^people as to what is desirable and

must state

systems and good government.

^reedoinTonim,

intelligent, thought-

£eJiulfnd'

retrogression and Stagnation

duce.

determine what the Welfare State

as

avnaa

which

Jhe w," J the lawgiver

must
be
stated
person, in'(described) clearly if the ends of eluding a government official, may.
Science are to be served.
say that the price is too high or

ciselv
ciseiy.

our

that

choose to

may

tive standards of right and wiong and related fields
applicable to both the ruler and from the standards

degrades human beings

vail under free and fair competition.
tain truth only by pursuit of the
If a million buyers and sellers,
methods of science. -Basic requi- operating in a wheat market, under
gites in scientific methodology are "conditions of free and fair cornaccurate classification, definition, petition,
establish a price of $2

; may

of

ceases to'be any standard of right, demic world it is revealed in those tatorship; who wish to conserv
Practically, except that found in cases in which textbooks in Eco- our great heritage of freedom,

do

-Ourselves of the method by which
truth is ascertained. -People ob-

,

what

acteristic of science.

the

mean

Government

anything it

promote

not

of

in

<

i

,'Federal
do

Preamble

does

in

to obtain an -costs of a Socialist State are measaccurate
understanding of what ured and appraised, if measured
the Welfare State is, abroad and and appraised objectively, against
'"here, perhaps we should remind the conditions that tend to pre-

\,

ploying the careful thinking char-

Slogans and Labels,

endeavor

we

Constitution

lawgiver.

Tne test the slave's
so,

produce

brings

and

noinf wh/re''

fEarl Browder Keynes Fos-

kers

the

part

a

slumped to the level of
slogans and labels in lieu of em-

fairness' not the rules
brlefy> 1S found in band asks her why he
or
devised

economy

hiil

of

ism."

' and

nnl

band to crucify a slave for

(4) A governmentally-managed

So-

the

and

a-P

classic illustration found

willful

free

as

from

ter

•
in-

by

in

as

dictatorship- We

have

•

has approve the costs involved.

is

continuation

Ism' deveTooed
'it

themselves

Earl'Browder,

that

cialism

t'or'ical

ctf nt-i/4

^greatest benefits are of Juvenal's
the greatest number of

cam function.

ulated

the New Deal-

regarded

«'

<■

provided

gov-

was

.

clause

The nature of law based
merely
*

muiti

not function,-and only when the
•advocates-of the Welfare State cost accounting system of private
'and have labeled themselves as enterprise is employed and the
Progressives and Liberals * The people in general understand and
stated

is

Our Federal

practices

of our battles in the realm of subjective appraisals and of our drift
into government

nature as to produce the condi- A. F. Cole, G. P. Putnam's Sons,'defiance of laws of Congress; in -ful, and responsible people who
tions that result from free and New York, 1906, Satira VI, p. 110.) price-fixing, subsidy, and a multh .find no defensible basis im which
fair competition.
When laws and governmental ;tude of other measures based upon to be liberal with other people's
(3) Government should operate Practices rest upon the mere will nothing more than the subjective money instead of with their own;
only in those areas in which com- *of the lawgivers who have the appraisals and arbitrary will of who do not wish to progress in.
petitive private enterprise or reg- Power to enforce their will, there government officials. In the aca- the direction of government die—

the

'

ers

law

a legal
balances

and

'•

*

engaging in still other

-

which

ruthless tyrant did not

most

goods,

checks

are

,

It

that

could

,

We

unfortunate

our

should do political field by the persistent the common use of the word
a sentence that 'practice
of
treating our United /'Liberal" these days, and the attithe legal field, States Constitution as though it tude and
proposals of those who
that would prevail if the competi- the
classical expression of law as 'granted
general
powers
to
the like to call themselves "Liberals,"
tors had equal strength and ac- mere
will: "Hoc volo; sic jubeo; Federal
Government; in a readi- it seems proper to conclude that,
corded to each the same freedom sit
pro ratione voluntas";
which ness, on the part of the legislative in
many, if
not most, instances,
in their rivalry.
means, "This I will; thus I order;
and
executive
branches
of
our ."Liberalism*/.means
Socialism, or
(2) In those areas in which let my will be in place of reason," Federal Government, to violate
Communism, or being liberal with
natural monopolies operate, their . (Juvenal, The Satires of Juvenal, fthe
Constitution; in the frequency other people's money.
'
'*
>
regulation should be of such a with introduction and notes by- with which the Executive acts in
There are
u

tend

doubt-

seems

world

fnl 1 n\xrincr

whether

a r e

State."
ful

of the

economic

fVip

when

W"1C^!

sponsored

"W

a

in

they record

^

Just

aKi AntitrA

the

petition prevails

times

-sacrifice

or money as

,.their judgments.^

so

the present

has

.

people

parently every
tyrant from

some

services,

upon the Wl11 of.the dictator has

gained by

fact is that ap¬

ancient

-make-

;a

the

in

of

designed to be one
of delegated and limited powers;
not
a
government
of
general
powers.
The
"general welfare"

to

'

of

public

of those

ernment

that

or

To these ends,

provided.

was

the

Holes*

the

unde-

or

by all the people
-directly concerned—by those who

.

f*2311

•

desirabie

of the significance of it

pos^

to Good Political and

applied in

rirp

automatically
justifies them
and

as

.

it
the

use

liberty

our

our

not designed to im-

was

formed officials who utilize the ^titution- and under those clearly .tude attempt to settle issues in
Economic Systems
-objective standards of science as implied in those specified.
the economic world
by proclaim¬
contention advanced here ?U
ing
themselves
as
SA
*
^ -S n0t
"Liberals,"
Our Drift Into Subjective
Apprais¬
when the method o£ sciethe mere desire or the will
"Progressives,"
"Conservatives,"
als, With

Premises

govern-

who

pair

wrong provided

an

Although

those

terity; it

authority for the
objective ^standards of right and

when they lost control of
irredeemable currency, "the most
important tool of the dictator."

.

is

concerned and freely rein the market place, that
government
has
substituted
the

economy

The expression "Welfare State"

what

corded

Dr. Spahr quotes from Earl Browder writings to demonstrate
that so-called "progressivism" of New Deal was along lines of
Socialism and Communism.

-

rectly

National

Economists

Monetary Policy

on

teach' liberty to ourselves and

bad, right

or

sirable in the Economic world for
the judgments of all people di-

By WALTER E. SPAHR*
Professor

procedures

correct, good

When government officials sub- posterity.
stitute their subjective appraisals system of

l|

WGIIMfi

scientific

to be

us

11

Dillon, Read & Co. Inc.

i
....

f

9

2

12

The Commercial and Financial Chronicle

(1460)

is

Outlook for the Chemicals
And Petrochemicals

ing an ergosterol extract from the
mycelium of citric acid produc¬

Clark, Dodge & Co., Members N. Y. S. E.

i

-

/

yeast

factor in evaluating individual chemical companies, recognition of the industry's
fastest-growing areas must also be recognized. Includes among
latter: drugs and pharmaceuticals, synthetic fibers, and agricultural chemicals; with special consideration of petrochemicals. States Union Carbide controls nation's largest petro¬

;

.

While

tion.

most important

equipment

would

ergosterol down to

point.
pete
from
of

$25

kilo.

a

Since growth is the most ap- must be slowly absorbed.
Three
pealing characteristic of the chem- drug concerns will probably inical
industry, a philosophy of troduce new types of pencillin
investing in the industry must be before very long.
Recent price
with

the

antibiotics

covery
of
those
areas

cillin.

are

likely

say

I

and

well
be

drugs

story makes fas¬
reading and has been

Q{Jr;P11n„rni

chemicals. A look at

told.

here will

concern

un¬

the

various

routes

cortisone,

to

pftrochemi- °jere is..first th? Partial synthesis

feed\these and other
occurring
would also\be profitable.

which

areas

steroids

oxycholic

Drugs and Pharmaceuticals

'

Our

attempt to predict the

an

folding of the wild scramble for
larger cortisone production.
In

Bohmfalk

F.

John

pharma¬

ceuticals, synceuutuiSj

cals

the reduced profit mar¬

cortisone

cinating

would

acid

such

desbile;

as

cattle

from

cholesterol from wool fat and egg
w

r

an<fr pliar- wolk; stigmasterol from soy beans;
proprietary ergosterol, a product of yeast
and ethical, is researching very metabolism;
and diosgenin, exactively in several directions in tracted
from a Mexican yam.
the hope of carving out a chunk Problems of supply eliminate
of the $1 billion plus ethical drug desoxycholic acid, cholesterol and
Almost

every

maceutical

business.

drug

concern,

The major concerns are

drug which cures
tuberculosis and which does not

shooting for

a

stigmasterol from serious consideration as plentiful raw materials,
For

example,

extraction

of

the

develop resistant strains. As the annual 600,000 tons production of
broad-spectrum antibiotics are in- soybean oil would yield sufficient
effective in the control of smaller stigmasterol to make only one ton

Plantations

grows

the

in

growing the

works.

diosgenin

A total
coal

synthesis, starting from

tar

The
has

raw

biosynthesis

attracted

it

regressions in

activ-

dramatic
forms of can-

produce
some

toxicity and side ef- from ergosterol. Ergosterol supindustry, ply at present is very limited, and
successful drug must over- it is sold at a price of $150 a kilo,

Drug

cer.

fects are the bane of the
but

a

come

these

problems.

Another

-

(A kilogram is

active area in drug research

so

that if

is concerned with the development

0f

cortisone

o£oral forms of penicillin which

cost

very

♦An

of

by Mr. Bohmfalk beforeP COrtison
York Society of Security AustlystSi
October ii, 1951.
>
sells for
1t

a

thousand grams,

assume

from

ergosterol

address

New

we

«

becomes

5%

a

yield

ergosterol, the
per

adrenal

cortical

with

fused

gram

-

now,

mash,

oxygen, penicillin
steroid.
An enzyme in the

blood,

steroid

the

converts

desirable compound,

pro-

are

containing

solution

a

to

a

and a
glands
more

dominated

terms,

the

Merck

do

has

cortisone .market.

you

with

whole lot

a

do

can

acetylene,

depends on
research for the competition is in

of

an

can

you

with both.

more

constructing

bet¬

some

and

Monsanto also is in

Success for the future

the process

acetylene plant

in Texas, and Chemical Construc¬
research; however, Merck is more tion Corp., an American Cyanamid
than holding its own.
Continuing subsidiary, will construct a Sachse
price reductions in cortisone will Process acetylene plant for Alamo
prevent newcomers from making Chemical Co., the General Anilinea

killing.

successful,

very

synthetic

of

Usage

cluding

duction of

ex¬

expected
to
pounds by 1960

trile fibers,

All

outlook

glycol

include

the ethy¬
terephthalic
acid

-

Possibilities

fibers

the

would

ammonia, all derived from natural

have

many.

fibers

^

'
"

Conclusion

to

In

conclusion, while manage¬
aggressiveness and research

ment

probably the most im¬
factors in evaluating
chemical companies,
there is a
great deal of merit in the supple¬
quality

caprolactam fiber
nylon in Ger¬
As in synthetic rubber,
of varying properties can
has

'

gas.

high-cost polymers,

however, and
which

can
be synthe¬
ethylene, acetylene and

which

new

polyurethanes which

basically

are

for

very

sized from

for Dacron,

polymer.

all,

is

products

excited about the properties

lene

in

the petrochemical
bright when you
consider the tremendous range of

such as Orion, Dynel

future

pro¬

derivatives.

The acryloni-

Chemstrand, have been most
publicized, but the chemists are
more

volume

as

major product will

commercial develop¬
high-pressure, acetylene

of

ment

and

and

one

support the

thinking in terms of

are

billion pounds.

one

fibers,

is

rayon,

reach 750 million
—some

venture.
I be¬
will prove

Borden-Phillips

lieve this latter project

Synthetic Fibers

a

are

portant

outsold

mentary approach which examines
be synthesized,
and the textile
the fastest growing areas of the
industry will benefit from an
industry.
;
assured supply of raw material at

for instance,

a

level

price.

Just

rubber

improved

stature

of

will

so

the

the investment

beginning of

steroid obtained from soy beans.
Compound F, medically speaking,
has the same therapeutic value as

other fibers at

the

in

treatment

The

hitch

not

write

is

that

eventually we will have
the development of these

see

Ross, Knowles & Co. i

improve

9s New Firm Name
TORONTO, Ont.; Canada—MilRoss & Co., 330 Bay Street,

textile renaissance,

a

but

arthritis.

fibers

We

F, when starting with
compound S, a readily available

cortisone

the

quality of the tex¬
are just in the

tile industry.

to

synthetic
investment

as

rubber companies,

synthetic

compound

ner,

to

members

announce

their firm

markets.

mass

of

Exchange,

or

low enough cost

a

service the

the

name

Stock

Toronto

the change of

to Ross,

Knowles

& Co.

;
Partners of the firm are Donald

Agricultural Chemicals

of

G. Ross,

the

George C. Knowles, S. M.

Approximately $4 billion worth

MacKay, E. R. Pope, G. A. Taylor,
supply of adrenal glands is lim¬ of food and fiber is destroyed W. W. Strattan and L. W. Scott.
ited; they are needed for whole each year by insects—grasshop¬ Offices are maintained in Hamil¬
adrenal cortical extract, used in
pers,
boll weevil, leaf hoppers ton, Windsor, Brantford, Sudbury
treating Addison's disease; and and corn earworms and borers. and Brampton, Ont.
the biosynthesis from live glands The use of insecticides has grown
is industrially too difficult.
Nev¬ into a major industry with the
Gross, Rogers Adds >
ertheless, Upjohn has used this development
of
DDT,
benzene
(Special to The Financial Chronicle)
process
to
produce
laboriously hexachloride,
Parathion,
Toxasome 50 grams of compound F, at
phane,
Aid r in
and
countless
LOS ANGELES, Calif.—Russell
a cost of $800 a gram.
others.
Every
major chemical L.
Miller
is
now
with
Gross,.
I

would

off the bio-

synthetic technique, however, for
it

is

an

matic

attempt to use
synthesis
and

the chemist

some

enzy¬

thereby

of nature.

processes

fact

an

that

it

takes

20 steps of com¬

plicated organic chemistry to pro¬
duce cortisone, while an enzyme
can

do

it

nately,
very

in

one

enzymes

step.
are

Unfortu¬
themselves

complicated substances, and

o£ full development and utilization of

gram

Cortisone

$3.
••

ArtA

$20

a

ethylene,

.

much. Furthermore, the cortisone
synthesis from stigmasterol re- duplicate the
Consider the
quires a few more steps than that

anti-cancer

have

attention.

Briefly, adrenal glands which are

which

even

Upjohn
of

kept alive by tissue culture, or an

There is a commercial demand,
however, for at least 20 times as

exhibit

and

lot

a

cortisone

of

great deal of in¬

a

Searle

terest.

given

promising
compounds have been developed
and

simple

synthetic

,

material, is only
in the academic stages, but does
offer a fruitful approach.
a

of cortisone which would approximately double present output,

ity

the

accorded

for more cortisone.

race

microorganisms "as the viruses, this
field of research is also extremely
very

Consequently,
be

must

are

yam

leading position at present in the

active.

Some

is

abundantly
tropical
America.

which
anywhere
in

This

The

necessarily include

prices will broaden
than

the

at the out¬
that those

areas

attempt

an

action demonstrates
philosophy of the industry:
You don't kill the goose that laid
the golden egg—you nurse it.
gins.

should like to
set

Lower

overcome

of

growth.

represent

markets sufficiently to more

to ex¬
perience
the
most
rapid
rate

broad-spectrum

to
bring these. products into a
preferred position vis-a-vis peni¬

.

which

in the

reductions

dis-

diosgenin

And

picture, how¬

ter

In

comnetitive

a

If so; it will have to com¬
with
diosgenin, extracted
the Mexican yam at a cost

yam,

rned

is

it

easily collected from the Mexican

•

c e

required,

be

the overall chemical
ever.

quite possible that quantity pro¬
duction could bring the price of

chemical operation.

c o n

capital in¬
to grow

large

a

in

vestment

Expert maintains that while management aggressiveness and
are

connection, Pfizer

has become interested in develop¬

'

quality

In this

needed.

By JOHN F. BOHMFALK*

research

exceedingly unlikely that this

price will be maintained.)
Con¬
sequently, a much greater supply
of ergosterol at a lower price is

Thursday, October 18, 1951

...

enzymes

is

some

distance in

the

It is

a

very

bright spot in

more

Rogers & Co., 559 South Figueroa

newer

Street, members of the Los An¬

ones,
Lindane, illustrates the
character of the chemical indus¬

Lindane

try.
isomer

is; t h

BHC

of

concentration

and

''\.v

gamma

e

in

occurs

about

of

geles Stock Exchange.

15%,;

the

value.

insecticidal

no

COMING

For

EVENTS

this reason, Hooker sells Lindane
at

price of $6.75 a pound, and
sells all it can make, but the waste
isomers begin to pile up.
A par¬
a

tial

solution to

found

when

was

Oct,

New

$70,000,000

It is used

cream and

Chapter

Association

of

Special
at

meeting

the Federal Reserve Bank.

Oct. 26, 1951
Ohio

as an

America

soap.

the

(Cincinnati, Ohio)

Valley Group of the In¬

vestment

antiseptic and germicidal in baby

lotion, shaving

York

Libaries

Upon reaction with for¬

and labeled G-ll.

(New York City)

18, 1951

isomers

converted to trichloro-

was

phenol.

problem

waste

trichlorobenzene

to

cracked

which

this

the

maldehyde, hexachlorophene was
obtained by Givaudan-Delawanna

New Issue

j.''H-ifj'm

a

remaining isomers, some 15 in all,
have

were

,.

but it future.

company produces one or
insecticides.
One of the

Bankers

annual

Association

Fall

Meeting

of

at

Cincinnati Club.

The total output of agricultural

Federal Land Banks

chemicals amounted to

and

2/4% Consolidated Federal Farm Loan Bonds
Dated November 1, 1951

The Bonds

Banks and

are
are

year

Due November 1, 1954

.

Not Redeemable Before

Maturity

V

the secured

joint and several obligations of the twelve Federal Land
issued under the authority of the Federal Farm Loan Act as amended.

eligible for investment by savings banks under the statutes of a majority of the
States, including New York and Massachusetts. The Bonds are also eligible for the investment of
are

indicate

a

States.

100% and accrued interest
offering is made by the twelve Federal Land Banks through their Fiscal
Agent,
with the assistance of a Nationwide
Selling Group of recognized dealers in securities.

31 Nassau

Street, New York 5, N. Y.

ited

Association 26th annual dinner at

only




the

by

amount

of

Carbon

&

..

.

Security Dealers

the Waldorf-Astoria Hotel.

Petrochemicals

Nov.

Chemicals

14, 1951 (New York City)

Association

of Stock Exchange
largest petro¬ Firms Annual
Meeting of the
chemical operation in this country. Board
and Election.
Dow also has a large investment
in this field.
The most important Nov. 25-30, 1951 (Hollywood
r
recent development is the produc¬
Beach, Fla.)
has

perhaps

of

the

acetylene
of

the partial

by

methane

German Sachse Process.
&

Carbon
a

has

in

Investment Bankers Association

the

Annual Convention at the

Carbide

successfully

oper¬

Sept. 28-Oct. 1, 1952 (Atlantic

plant
and has in¬
tegrated its petrochemicals around
both

ethylene

clined

to

and

acetylene
Would

predict51 that

as

in¬

be

sooner

or

later, Dow will be forced into the
production
you

pan

'of

do

City, N. J.)

process

materials.

acetylene.
many

things

Holly¬

wood Beach HoteL

semi-commercial

utilizing this

raw
October 18, 1951.

dinner

(New York City)

New York

chlorine available to it.

ated

Macdonald G. Newcomb, Fiscal Agent

Club

meeting at the Boston Yacht Club.

po¬

Nov. 9, 1951

combustion
This

larger market

(Boston, Mass.)

Investment

tential for all products except the
arsenates.
The industry is lim¬

tion

trust funds under the statutes of various

Boston

government targets for next

Carbide

The Bonds

Oct. 25, 1951

billion

one

pounds in the latest selling season,

While

with

American

Bankers

Association

Annual Convention.
j

' *

?« a.,

Oct. 19, 1952
National

ciation

'

(Miami, Fla.)

Security Traders Asso¬

Convention

Plaza Hotel.

at

the

Roney

Number 5056

Volume 174

.

.

.

The Commercial and Financial
V

\

Chronicle

(1461)

which time I went into my present

Progress in the Air
Transportation Industry

don't

operate

the dividend, but it" fa ahead

basis

and

Without

you

that

major

some

solid

big

think
trunk

minis
goals

ninour

are

We wanted to get

mail pay

subsidy. Says some mergers of airplane
companies may be in public interest, and urges creation of
sound coordinated system. Foresees no immediate use of jet
planes in civil aviation. Looks for stronger market for avia¬

We

wanted to

of

mail

provide

tion stocks.

and

pay,

return

some

vestment to

wanted

we

on

that

to

thing I want to stress most
thing I would like to get
most
particularly is the
that in 1951 you can look

and

the

across

fact

air

upon

transportation

it

big

that

been

believe it

time I

fectly

that

a

per¬

growing

was

We

and courteous airline.

a

It

too

of

fast.

We had

through the

enforced

control,

through
25 years of

almost 100%.

fered

suf¬
the

all

growing pains
that one might

ing

priority

or

those

factors

close

has

for

fi¬

what

was

was

and

and

life held

day.

a

The

that we, all of us—

putting

that

make

which

transportation

expansion program

an

quite disas¬

proved to be

Capital

venture

with

and

could
business

we

sound

a

we

are

have

We

a

.substantial

essary:.

:

-

I think

was

separate that inflation travel from
real market and then so gear

our

>.

financial solidity that

a

needs to be enhanced and maintained and you don't do that oper¬

ating the way we used to years
a&0,
in

We are not unlike chain stores
our operation in that we are

have

gpt to improve our
We,have got to continue
make every effort to revise our

We

service,
to

and
to

procedures

niques

as

so

operating tech¬
give the public

what it wants. / In the old day$,

planning and thinking as to we used to try and jam down the
develop Capital's future in rela- Publics throat what we wanted
tion to
theJ real market rather them
to have. Now, we have
\

than to this inflated peak that we

experiencing.

nec¬

/',/'■
.
>•
'V.
■.
V
have done it. At that

we

-

.

We have

amount

o£ milita^ travel whieh 1 ^

are

felt

we

any

as

venture

business

iting.

in the normal travel.

providing the type of air¬

line service that

We
were
at
that
time,
I
think, basically contemplating the
thought that anyone who moves is

our nation, and on the
basis of any of the usual statistical

had

...

our

the

then had,

trous in the ultimate.

serving

into better

us

then

we

the system we

into

business

think should be considered nor-

™nadrk^edinthat01wUh
rate

We know

mal' We in CaPital are trying to

.

sound

would.

i

structure,

'

operate

other

more

by revision of our route

or

'

ballyhoo and the
press-agentry type of operation is
g°ne- We no. longer are permitted
operate in that manner, but
rather have
to

certain amount of

a

the

in

ahpad

doing at the moment, aside entire- entirely dependent on volume to
ly from the inflation that exists make money and to continue prof-

Civil Aeronautics

J,

+hrn„

rates

all began

we

out

inflation

taki

therefore

never seen op-

thinking

there is

that

matogmi!£eh^ern£orheusWeUh^

ac¬

went

major forms of

Jamcs H. Carmichael

that

the

what

and I think Capital led the group-

the

of

one

that

net result

nally emerged
as

100%
forever

us

90's

the high

to

up

to

to

as

operating with load

to

think

to

years,

it

but

customed

We became so

com¬

pull Capital together and make
company

are

we are carry-

awfully careful.

attempt

an

Things

For that reason x think we have

.

stayed with the

as

We have

now.

timistic

basis that those

upon

ivinfJ
,

justified
than it is now, by reason of the
amount of business we are doing,

of it.
We
stopped kidding ourselves entirely

which utilized
all the
we
offered to the public

space

in

expect

who

real

a

war years

system,

growing,

to

that

on

embarked

pany

The War Years and After

an

was

us

1946.

is

whole

a

as

majority of

e old-time

We have never carried

load factors such

rently while simultaneously operating a safe, dependable, friendly

did, but at
was

development of

natural

business

business.

has

It

to have got¬

ten into the scrape we

relatively

as

rather silly

seems

in

existed

booming.

wanted to do these things concur-

The

ulp

matter of

in-

an

stockholders.

our

^

j don't anticipate any serious trou-

fact, the situation
today is not unlike the situation

get out of debt,

were

we

"»

pretty realistic look> and

completely realistic about our
business, about what lies ahead.

We wanted to get a service rate

that

I think the in-

dust

philosophy which has brought
to this point.
We continue to
a

limb

back in 1947.

that holds true o(

business-we certainly want
along the same line

As

condi¬

awfully

other companies out

same

be

operate in the black.

and

be

to

0ther companies.

represent

does

continue

out of the red

change

0^00"^hmb" a'gahT'l fhfnk

the fact that

us

rinsoifiorf
classified

ar»

less in this order:

or

realistic

any

the present

going

to find

the

on

is

Big Business

a

it

position

is

it

easy

have made.

we

to

proaching them intelligently.
T
I

tion,

that

on

there

whatsoever in

the industry has readied a pretty

problems still ahead of us, and I
think—and hope—that we are ap¬

more

I

of the
successful recovery which

1 think that despite

We recognize the
have

we

and

tainly hope it is, because if they

on

We still have quite a

fact

need

indicative

Aviation Now

Capital has been quite

near

feel

we

future

near

again,

kind of

are

the

in

and

obviously

them—the

of

aware

long way to go.

business and service should be improved.
Points to rising costs and problem of adjusting rates. Dis¬
cusses question of government
subsidy to air transportation
and concludes there is less lack of dependence of scheduled
or

pay

statis¬

any

sure

am

substantial.

inflation in present

air lines

well

I

earn

/think,

recovery of

25% ahead of 1950. Warns, however, there is

or

going into

tics—because

quite

in 1951 will be

revenues

good

a

of ours out of the hole.

of air transportation in last

Aviation executive recites progress

$650 million

the money with which to

me

of the fellows who have
collectively pulled this company

President, Capital Air Lines

and reveals air lines

and* also

to

with

took

and

many

By JAMES H. CARMICHAEL*

two decades

tough,

job

13

I

think

is

that

other

of

true

companies in the industry.

learned that rather than attempt
that> we have to provide the type
of service that they want in order

Continued on page 2

I cer-

time we had close to a debt of
it certainly can be
measured as big business.
That has been re¬
going to fly and, therefore, we $15 million.
In
1951, it will do business had the obligation to prepare and duced in the ensuing 33 months
somewhere in the neighborhood of provide
a sufficient
number
of and as of Sept. 30, to $3,026,000.

yardsticks,
;

million—incidentally,

$650

Revenue

,

about

seats

ahead of 1950.

25%

to

1950 approximated

in

In

<

ready to

us

particular instance,

our

you

went out

we

and borrowed $10 million worth
employed, domestically, of money and bought four-engine
somewhere in the neighborhood of airplanes to the point that we just
60,000 people, and had about 1,100 didn't have enough airports to
airplanes in-service. Just to give park them.'
you a little background as to
Then, the whole industry
where Capital stands in 195l in started
providing the most pe¬

senger revenues.

\l. We

relation

industry

overall

the

to

culiar type of

service, I think, that
had ever been provided by any
transportation agency.
We made

picture, depending upon the par¬
ticular yardstick you choose
to
use, we rank fifth in the number
of

so

carried—this year of
very close to two which
passengers; and we rank which

passengers

we

will

million

We have some 5,500
we

cities

77

serve

the outstanding one or

one

produced the worst re¬

sults.,. ;

route miles;
employ

•

an

completely current with
indebtedness.

our

have changed from
earned surplus deficiency to an
time,

This advertisement is neither

the

At

>

"

•

million gross
So, from a

which

about

tied into

We

so

was

poor

million.

$10

This

year

In

that service

that the public

million,

with

the

expected

growth that I mentioned for 1951.
The

industry, generally, has
through the mill.
We have

been

our

that

mean

literally, not figuratively. We

'have
any

and downs, and I

ups

experienced everything that

business might in its develop¬
and
growth, and I think

ment

that
we

have

we

have

traveling
We

the

reached

now

arrived

point

at

after

pretty rough road.

a

dislike for

NEW

grew

in leaps and bounds

to the point of 1946 and 1947,
when
we
fell
into
a
situation

which might have been expected,
I suppose.

Certainly, in hindsight,

■"Transcript address by Mr. Carmichael
before

Brokers,

the

Association

New

York




City,

of

Customers'

Oct.

8,

1951.

any
.

of then

,

,

,

October 16,

ISSUE

have

1951 ^

acquired some work¬

ing capital.

We have added some

We

12 new

airplanes to

for out of
moment

healthy one.

so

picture
«

We have additional

order to meet

too,

airplanes

West Virginia

on

for

V

•

Goal & Coke

problem. Those,

our

anticipate being able to
out of earnings without

we

pay

80,000 Shares

fleet, paid
that at the
is quite a

our

earnings,

our

Corporation

additional

borrowings.
We have had an earnings record

stretching

now

teenth

month,

its

seven¬

Common Stock

have

accom¬

(Par Value $5 Per Share)

into

so

we

We are in the

black.

have

We

where

we

rate in

approached the point

~?

service

f,

about at

are

far

so

a

mail pay is con¬

as

away

our

form

Then, to
a

the climax, we had
of accidents, one in the

series

cap

winter of 1946-1947, and the latter

in the
them

late

the

summer

out

fell

bottom

business

nature, sen¬

covered by the news
The ultimate result was

agencies.
that

1947, all of

spring of

spectacular in

sationally

of

our

is,

in

the

entirely, that
of 1947.

■

.

That is when, I guess,

'

,

from per¬

sonal-experience
the

having
road

in

again, we" can
dubious distinction of

gon§

farthest

comparison

company.

the

down

to any other

In September,

late

or

August, of 1947, Capital was bank¬
and
we .had
no
lousiness

rupt,

whatsoever to continue operation;

yet

we

Price $17,625 per

did.

managerial

share

Copies of the Prospectus may be obtainedfrom any of the
only in States in which such underwriters are
in

securities

which

and in

the Prospectus

several underwriters

qualified to act

may

legally be

as

dealers

distributed.

transpor-, ahead, and we continue, and ex¬
pect to be able to continue on that

of

'

claim

up

solicitation of offers to buy

surplus.

earned

people took

tation, and we seemed to do par¬
ticularly well.

1941, the industry did about

$522

Our

sands.

it

,$96 million. In 1950, it was about

had

literally stayed

our

be about $38 million.

will
'

beginning,

humble

nor a

offering is made only by the Prospectus.

we

cerned.
That was another goal
by the thou¬
accomplished.
a don'tWe are out of debt to the ex¬
company, too, has approached or give-a-damn attitude; they were
tent that we paid off our banks
developed into a company of sub¬ rude; they wouldn't answer tele¬
and
have
substantially reduced
stantial size.
phones. If they did answer them,
our bonded indebtedness, as well
why,
they couldn't have been
as being completely current with
A Decade of Aviation Growth
more disagreeable.
We lost bag¬
interest and sinking fund provi¬
It is particularly interesting, I gage— which we still
do, inci¬
sions, so, there, another goal has
.think, if you take a look at what dentally.
We had oversales.
We
been more or less reached.
•.has happened in the last 10 years. had just all the things that we
Little by little, we are moving
{Capital, for instance, in 1941 did could possibly have to effect a

1951.

in

business

rather

offer to sell

an

securities. The

.

made.

We will do about $38

of

■:'f. plished goal No. 1.

:•;';>{.;■/

The overexpansion planning was
certainly the greatest mistake we

and

3,900 people to do our job.

about

was

carry

sixth in the number of route miles.

mistakes that it is sort
to
put your finger on

many
hard

We are

all

same

remember that

may

that wanted

would find

them.

move

$522 million, of which some $428
million
is
represented V. in pas¬

that anyone

so

move

It culminated

in

reorganization,

a

at

basis, to develop Capital into the
kind of company that you fellows
would

from

respect

point of view,

a

As of Sept.
close to

will be

we

restriction

contemplation of
gram

a

as

far

as

Paul H. Davis & Co.
j

;

Laurence M. Marks & Co.

Pcnington, Colket & Co.

DeHaven & Townsend, Crouter

& Bodine

Brooke & Co.
Doolittle & Co,

dividend pro¬

Cruttenden & Co.

Hill & Co.

A. E. Masten &

Company
I

is concerned.

would

value,
ment

as

is

far

sometime

in

would

want

guiding manage¬

dividend

a

which

as

concerned, will certainly

consider

I

•

the

expect that our direc¬
tors who have been of inestimable
I

-

very

having met the indenture

no

Tucker, Anthony & Co.

W. E. Hutton & Co.

Francis I. duPont & Co.
.

30,

Corporation

an

requirement as it relates to our
earned
surplus position, so that
in the relatively near future there
will be

The First Boston

financial

well as from
operating point of view.
as

to
we

accrue

Westheimer & Company

Sills, Fairman & Harris

a

Chaplin and Company

Incorporated

Kay, Richards & Co.
that

Bioren & Co.

Arthurs, Lestrange & Co.

program

1952

think

Riter & Co.

we

reserve

would
upon

might fall if things get

Newburger & Co.:.

„

14

(1462)

The Commercial and Financial Chronicle

comparable nine months

Missouri Brevities

of 1950,

At the end of

increase of 2%.

an

Connecticut Brevities

September this year there were
266
retail
units
in
operation,
owned
at Sept. 5, by
shares of Stix, Baer & Fuller Co. American, would total not more against 268 last year. There were
2,591 wholesale accounts at the
common stock
(par $5) was made than 79% of Domestic's outstand¬
end of the latest period, versus
at $20 per share.
Of these 73,294 ing common stock.
2,586 a year ago.
were for the account of the com¬
On Oct. 9

an

offering of 216,694 already

pany and 143,400 for the account
of
certain
stockholders.
Of

ered

the company's
stock, 29,549 shares
first offered to common and

Donnell

were

preferred stockholders of record
Oct. 5
at
$20 per share, with

rights expiring at 12 o'clock

scription agent.

The offering was

The

net

Rice-Stix,

to

the

com¬

pany, will, in the first instance, be
added to the general funds of the
company to be available for gen¬
eral corporate
purposes, includ¬

ing additional working capital and
for

the

reimbursement

of

funds

Inc.,

months

three

the

Louis,

a

$16,211,620

31,

expanded

corresponding period of last
the

For

nine

months

of

Aug.

net

Department

subsidiaries

sales

for

the

of

The

Co.

Stores

and

six

to

are

will

stock

company,

be offered

for

as

its

July

31,

1951

the

semi-annual

La

earnings for the 6 months

Net

to

49

cents

per

common

against $7,049,000 or $1.11
share in the first half of last

The earnings per share for
both periods have been adjusted

year.
to

reflect

the

two-for-one

stock

the

12

Laclede

months

ended

Earnings for the

12 months' pe¬
riods have also been adjusted for
the two-for-one stock
split made
;

with

the

pany,

$2,687,422, equal to
share on the 3,039,860

This

Famous-Barr

is

the

ompany's
t. Louis

second

branch
*

of

:
*

:

'

!<!

■' •'' '

Co.

convertible

preference

*tock

riginally
as

of

Finance

on

a *

to

be

to

offered

ceeds:;

at

$10

underwriting.

will

be

used

The
to

at

so

3

Under
would

New

York

Stock

3527

.

Hoffman

Poplar Ridge Coal Co., St. Louis,
subsidiary, of Union Electric Co.
of Missouri, on Sept. 21 filed an

Miss

Exchanges.

previously

was

&

cated

basis,

Sept.

25, erty and for equipment.

(CST)

The

to be used to pay for
improvements to company's prop¬

that it will
p.m.

Louis.

Sales
Co.

for

1951

Western

the

month of September,
$13,105,000, and com¬

were

For

the

recently

was

(Special

i

&

nine months ended

with

Sept.
1951, sales aggregated $116,546,000, versus $114,285,000 for the

Mitchum,

South

Co.,

of

Investment

sheets.

loan

is

its

Company of California,

be

;with Dean Witter & Co.

will

MIDWEST STOCK EXCHANGE

to

Bell

Teletype

SL 456

Midwest

Stock




Stix & Co.
503 OLIVE

Exchange

2, Mo.

Behrens

is

with

Waddell

STREET

on

I

a

*

but

facturers

Power
due

1,

South

.

Africa

New

.

York
'■
7;

Today

—

Inc., 22 East 38th Street,
York 16, N. Y.—Paper—25c.

com-

CONNECTICUT
LIGHT

markets in:

Garfield 0225
L. D. 123

LIGHT

other

HAVEN

•

ILLUMINATING
GAS

HARTFORD

available

memoranda

and

UNITED

•

NEW

•

ELECTRIC

these

SECURITIES

POWER

POWER

Descriptive
on

&

Connecticut

on

LIGHT
GAS

request

companies.

CHAS. W. SCRANTON & CO.
NEW
New Yorki REctor

NEW

HAVEN

2-9377

17,

'•

Alan

Paton—Public Affairs Committee,

deben-

into

'

Avenue,

J

1959

'

Association, New Center
Detroit 2, Mich.; 366

N. Y.—Paper.

3%

■' •'

Automobile Manur

Building,

■*

Company's
Jan.

V

—

Madison

Conversion of Connecticut Light
&

•

31st Edition

;
*

L

•

1

Automobile Facts and Figures—•'

„

supplement present
of brass and copper

MEMBERS

St. Louis 1,Mo.

&

enter¬

products will

HARTFORD

Quoted

Landreth Building
St. Louis

of

program

new

CONNECTICUT

SCHERCK, RICHTER COMPANY

>

to The Financial Chronicle)

Reed, Inc. of Kansas City.

-We maintain primary

Argo Oil

Member

(Special

Cor¬

embark

CONNECTICUT

—

Joins Waddell & Reed

cost

a

MEMBERS

Southern Union Gas

He

Marache,

*

.

mill products.

tures

Texas Eastern Transmission

Sold

its

to

Finance

expansion

used

production

880 East

formerly

Tennessee Gas Transmission

—

with

$370,000 from

intention

rather that the

John L.

Colorado Street. He

Rockwell Mfg.

previously

•

planning

It is not contemplated that

Securities

was

Exchange.

.

MINNEAPOLIS, Minn.—Arthur

of

*

company

large

-

Bought

Los Angeles Stock

v

.

Delhi Oil

•<

LOS

past the company has done some
experimental rolling of aluminum

650

to The Financial Chronicle)
—

Gross, Rogers

(Special to The Financial Chronicle)
-

ing the aluminum business. In the

the

PASADENA, Calif.
staff

Harshaw Chemical

Joins

*

•

.

contracts.

announced

Ainsworth has been added to the

1
-

a

*

Tully

&

broker

a

Bridgeport Brass Company has

Financial Chronicle)

Tully

visit

to

company's

defense

With Inv. Sees. Co.
;

Petroleum Heat & Power

] '

addition

an

Reconstruction

Co.

Spring Street.

(Special

Spinning

to The

unable

during ordinary business hours.

be used to pay operating expenses
in connection with the

Services,

Lester

desiring guidance iii
their investments but

poration..The additional funds will

LOS ANGELES, Calif.—Richard
C.
Secord has become affiliated

30,

Berkshire Fine

with

With Mitchum,

Supply

recently pare with $14,237,000 for the like
offer, month of 1950, a decrease of 8%.

tenders
o the extent that
Domestic shares
icquired, plus the 407,999 shares

Diversified.

are

}.

in this country...

obtained

Inc., 3761 Wilshire Boulevard. He

the

accept

-

those

planning
who

in¬

one

.

if

''

of

Auto

..

if

construct

the

Investors

St.

savings banks and
company.

assist

The

New Haven Clock & Watch has

(Special to The Financial Chronicle)

Bank

the

of

Avenue, New York
will
remain
open
every
Thursday evening until 10 p.m. to

of about $720,000.

Inv. Diversified

are

expiration

City,

R.

proceeds

at the

15-year agreement.

at 601 Madison

privately

present plant in Stamford at

Goodwin.

National

Phoe¬

15-year with the

a

Sims & Co.

Walston,

for

in

will

loans.

will be sold

Pitney-Bowes, Inc.
to

a

Rejoins

2I7

a

j
To Be Open Thurs. Night 1

was

LaTouf

with

Building,

ANGELES, Cal.—Herbert
J. Hilgen has joined the staff oi
fice and
warehouse
in
Atlanta,
Georgia. This brings to eleven the .Gross, Rogers ,&/Co., 559 South
number of branch sales offices lo¬ Figueroa Street, members of the

Drive, members of
and Los Angeles

common

one-for-five

terminate

\merican

the

issue

Electric openedra branch of¬

man

Calif.—

000 of bank loan notes to the First

)ct. 25, Donald L.
Barnes, Presilent of both
companies,
innounced.

South Beverly

com¬

Phoenix
Company

Heller Uptown Offices
"

Utilities

1, 1952 and $750,000

:i!

Chronicle)

HILLS,

initial

On Oct. 1, Arrow-Hart & Hege-

joined the
staff of Daniel Reeves & Co., 398

increase

bonds

surance

'

Jeannett C. LaTouf has

_

$1.25

stock

terminate

to The Financial

BEVERLY

pro¬

Jan.

on

six

to

for

Dougall and Associates,
consultants, New

'■■v.v'

the

of

outstanding bank

new

With Daniel Reeves ^ ?
(Special

.

share,

per

of

"apement

:

signed

periods

$1,000,000 of 4%
mortgage bonds which ma¬

ture

LOS ANGELES, Calif.—Paul R.
Davison has rejoined the staff of

Illinois

Corp.

been extended

low

V'V

a

:
application with the SEC for au¬
exchange American thorization to issue and sell $500,-

Investment
Domestic

the

Stewart,

Public

Proceeds

first

Com¬

associate

research

York City.

tion with the SEC covering 29,000
common stock (par $8)

,

May

in

1976.

has been associated

Electric

4

+

'

'•

be used to retire

.

Sprague

senior

was

shares of

was

the

stores

area.

The offer to

Co.

past

Brown

\

seller providing for annual rentals

has obtained permission from
Connecticut

the

Insurance

.

made

Commission to issue $1,750,000 of
1
Stanley Heller & Co., members
3V2% series B refunding and gen-,
of the New York Stock Exchange,
eral mortgage bonds, due Sept. 1,
have announced that their office

North Adams, Mass., for the
three years.
Previously he

Mr.

totaled

:

v

'.

Fawcett.

The Bridgeport Gas Light Com¬

the

Director of

riod. Net income after interest and

capital and surplus" The
opened last Aug. 24 and that sales pany's office is located at
have
been
up
to
expectations. Broadway, Kansas City.
of

as

*

>

been

ranging from $200,000 to $265,000
and option to lease for additional

$8,000,000 due in 1971.

'V'-v- H"

pany

of Research and

Department

Statistics.

88 cents per

of

v*

v

Life

nix has

is

It

has

chase price was $2,800,000.

seven

thereafter.

'
'

story store and office building in
New York City. The reported pur*

repayable at the rate of $500,000
a year for 19 years" with the bal¬

Keith

Jonathan A. Brown

3%%

and

years

v
*\

purchase by The

of

of

loan provides for
for the first

the

Mutual

'

$28,206,209, as against $20,603,313
in the preceding- 12 months'- pe^

without

f

•

The report said the Southtown
tore

The $17,500,000

interest at 3%

.

the

of

Na¬

*

Announcement

produc¬

balance

*

'

and

the

of

~

area.
❖

subsidiary,

The

facilities

writing insurance in the

New York

debt

$10,000,000 will be used for
payment of current bank loans.

Funston, President of
the New York Stock Exchange,
announced
the
appointment of

Co., St. Louis, fof
the 12 months ended Aug. 31, 1951
reported operating
revenues
of

Rayon.

Group for the convenience

of agents

the bal¬

rayon

office will make available the

office

$2,500,000 will

its

Com¬

tional

$4,820,000

modernization

Insurance

home

about

Appoints J. A. Brown

Gas

and

for

Hartford

■

G.

1946

Fire

has opened its metropolitan

Vice-President and Secretary. The
new

commercial

repay

cash

$4

*

department in New York under
the supervision of W. L. Bellmer,

Com¬

long-term

a

tion-facilities* of

has been assor

Exchange

in

to

on

used

ance

N. Y. Stock

used

expansion of carpet

for

ac^

July 31, 1951, amounted to $419,- outstanding common shares. This
compared with a net of $2,420,913,
«10,000 against $396,023,000 for the
or 80 cents per common
share, for
preceding 12 months. Net earn¬
the 12 months ended Aug. 31, 1950.
ings were $17,793,000 equal to
*
*
#
'' :
$2 .85. per common share against
Mid-Continent Casualty Co. on
$20,017,000 or $3.23 per share for
the 12 months ended
July 31, 1950. Sept. 17 filed a letter of notifica¬

in June of this
year.

be

eiated with J. P. O'Rourke & Co.

'

taxes

split in June, 1951.
Sales for

Prosser

Mr.

Street.

the past ten years

$3,-

were

«hare
per

share.

National

and

$17,500,000

five

plus

if

permit;

jet

Carpet

this amount

due

made

months

471,000, equal after preferred divi¬
dends

Salle

the

were

statement.

to

pany

and

debentures

of

after Jan. 1, 1952.
$

of

borrowed

Of

been

ance

count of certain selling stockhold¬
$186,- ers. It is expected that the stock
304,000 compared with $183,183,- will be offered for
public sale at
€00 for the corresponding period
$12.50 per share, with an under-?
of 1950, the company reported in
writing commission of $1.15 per

ended

built

production

America

has

No part of the proceeds

to the

go

and

has

banks.

of

Centralia.

Consolidated

Hartford,
North
Haven

from the Prudential Insurance Co.

$38,256,806 for the
already spent and to be spent for nine months ended Aug. 31, 1950.
completing the additions to the
j'\Cv
parking
garage.
Such
general
Stifel, Nicolaus & Co., Inc., St.
Walter W. Prosser
funds will also be applied to the
Louis, has been named as princi¬
payment of $600,000 of short-term
CHICAGO, 111. —Walter W.
pal underwriter of a proposed of¬
indebtedness incurred for working
has
become
associated
fering of 50,000 shares of common Prosser
capital purposes. "
stock (par $5) of A. B. Chance Co., with Chesley & Co., 105 South

May

$50

East

being

are

pany

the

31, this year, net profit- totaled
$694,079 from sales of $42,505,345,
against a net profit of $754,420
sales

in

Bigelow-Sanford

as

and

and

piston engines.

year.

ended

receive

large number of

plants

for

for

to

to four shares of common for each

to

the

which

net profit, after pro¬
tax, of $315,144

of

reduced

$2,611,100. The present conversion
rate of four shares of common for

income

sales

and

been

$3,970,000

each $50 of debentures is changed

new

of $10,254,
with sales at $14,174,501, as com¬
of

of

total

has

debentures

The

converted.

were

1950

31,

dis¬

depot

Southington

St.

Dec.

a
steady
$157,300 of

chines that will be required in the

Ghesley & Go.

*

ended Aug.

debentures

feet of

square

at

ma¬

tool

tribute

With

70,000

some

continues

September

In

pace.

from the Manufacturers
Foundry Co. in Waterbury.
The
space will be used as a machine

1951 reported a net loss

vision

proceeds

*

*

leased

stock

mon

Corp. has

floor space

Waiter W. Prosser Is

Corp., St. Louis,

Whitney Aircraft Divi¬

of United Aircraft

sion

jet-pow¬

a

Navy announced on Sept. 24.

the

Pratt &

awarded to Mc¬

been

Aircraft

underwritten by Goldman, Sachs pared with
& Co. of
New York.

build

to

"Cargo unloader" type heli¬

copter has

noon

(CST)
on
Oct.
17.
Mercantile
Trust Co., St.
Louis, acted as sub¬

contract

A

Thursday, October 18, 1951

.;;

YORK

STOCK

EXCHANGE

Telephone 6-0171
Teletype: NH 194

Hartford 7-2669

New

Volume 174

Number 5056

.

.

Chronicle

The Commercial and Financial

.

(1463)

and,

Television's New Era

Only

By H. C. BONFIG*

Mr.

Bonfig, hailing rapid growth of television industry, ex¬
optimism regarding future of new Ultra High Frequency stations and on development of subscription or "box
office" television. Cites value of Ultra High Frequency stations
having insufficient commercial advertising to support regular
TV channels. Looks for system of subscription television which
will permit public to pay for special events without going

of

or

broadcast

any

would be

shadowed by

is

cants

began

the

to

than

jockey

UHF.

doubts

has

ever

growth

seen

industry with

an

equalling

curve

television. We

that

a

of

ignore the dec¬

can

ade

preceding

the last World

War

h

: w

en

television

was

floundering

.

with

around

fruitless, false

about

for

UHF

VHF

this

torily but they

chaos

nancial

tions and began

staggering fi¬

would

involve,

working

applica¬
on a new

allocation plan that would permit

television

national

service

with¬

out excessive interference between

stations

the

on

channels."

same

Enough

-

munications Commission had stat¬
that

there

channels

national

and

to

provide

truly

a

competitive

system

of television.

To establish such

television

C.

H.

in¬

national

competitive system,

the

duced

Bonfig

magnificent
.■1947
a

marked

the

members

of

the

and

the Commission
necessary

in the

beginning

of

channels higher

to use

spectrum in what

Radio

Manufac¬

turers Association produced nearly

When
on

after

the

the

evident

in

the

that

UHF.
plan

1948, -it
had

time

was
come

satisfac¬

never

satisfactory

as

that

so

for

UHF

new

wanted VHF.

•

they

receivers, a
spectacular
was multiplied five¬

that

a

grand total at the beginning of

this year of more than 11

million

television receivers produced and

when television must expand
the UHF.

for

a

tem.

into

There were many more

nationwide competitive sys¬
Since
there are only
12

channels

the

in

VHF, this meant
sold to the American public. Sales that the industry must prepare to
slowed down early this year, but operate from 38 to 58 channels
the
have picked up so rapidly in re¬ in
new,
untried, uncharted
cent months that our only problem UHF area.
Cv'/A;:'s''-'V'
At this point, it is difficult for
today is to build as many televi¬
sion sets

as

we

sell.

can

This growth, mind

spite

of

serious

a

you,

in
im¬

was

in 1948, when the Federal

posed

Communications

Commission

it necessary to freeze

the

felt

expan¬

sion of television broadcasting.

A

ers

as

a

was

distant

saying,

Some of the best technical

brains in. the broadcasting indus¬

try

feel that the UHF chan¬

now

offer

nels

great

as

greater op¬

or

portunity for good broadcast ser¬
:

vice than do the VHF.
It has been the

,

history of broad¬

approach the use
of new frequencies yvith doubt and
fear.'
Back in the days when I
casting that

we

a

future,

Zenith had taken

to

panding radio industry—technical

nels.

Commander

these UHF

utilize

refused

McDonald

authorize

to

chan¬

the

had
of

sale

any

Zenith television receiver to

of technical experts.

the

public that could not accom¬

On

basis

the

the

modate

theoretical

of the

that

UHF

new

felt

we

opinion, that

channels

inevitable.

were

Coverage

of television stations in

my

what

call the Very High Fre¬

wisest decisions ever made

we

radio

City,

radio

Our

channels, the Commission
cities.

different

tion

In

operating

theory, a sta¬
Channel 2 in

rather

on

Chicago, for example, could
ate without interference

there

were

other

no

oper¬

provided

stations

on

Channel 2 within 150 miles. Chan¬
nels

were

allocated accordingly.

Then the

built

tackled the

and

them

on

limited

transmitters,
the

air.

radius

and

Instead

put
the

of

was

one

In

and

we now

and FM
Not

use

into

the

today,

UHF channels

It

was

tried things that

who

the higher
;

trail

the

blazed

the majority stayed

up,

predicted,

more
a

stations

serious

one

ple,

stations

one

found

that

interfering

station

a

in

with

within

Detroit

problem—

in Detroit, for

channel

points

the air, was

came on

interference

station

same

began

its

five

It

perfectly obvious that
the

stations

granted

as

him,
a

the

on

was

reception
miles

UHF

exam¬

Cleveland

transmitter.

a

of

at
the

became
more

in the

of

allo¬

cation plan then in force came on

*An

in

many

address




the air, and let

in

own

a

receive

dealer's

store

Bridgeport.

so

signals from the

experimental UHF transmitter

It took

him

:

In

1923, Commander Donald B.

into

shares

in

exactly

regular
1925

In

the Navy

the

board

with

left

U.S.S.

the

on

about

the

West

Coast

a

rest

time

are very

Fleet

a

16

solicitation of offers to buy any of thest

nor a

$.

■

great communications system

Capital Stock
or

'

Par Value)

for

the

rate

on

per

offer 372,205 additional shares for sub-.

share by the holders of its outstandingv

of one share for each ten shares held of record at the close 1

October 19,1951. Arrangements have been made to

facilitate E

The
on

Subscription Offer will expire.at 3:00 P.M., Eastern Standard Time,

November 8,

1951.

/y-'

v-7--;:7

■

/

»•-

The First Boston Corporation has agreed with the Company to act
as

Dealer

purpose
Limited

Manager to form and

manage a group

of securities dealers for the

of soliciting subscriptions in the United States. A. E. Ames & Co.
have a similar agreement to act as Dealer Manager in Canada.;

Such dealers may

Capital Stock

under certain conditions offer and sell

as set

shares of the

forth in the Prospectus.

V;

At

left the
the

short-wave

with

of the Solicit¬
with respect to this
offering, the solicitation of subscriptions and the fees payable therefor, by
Any securities dealer may obtain a Prospectus and a copy

ing Dealer -Agreement containing full information

communicating with the nearest office of the undersigned.

Jt

was

of the

amateurs

respective expe¬

of

direct

even

the

Admiral

radio

short

maintained

Eskimos sing a song

im¬

:

cruising off Tasmania—
almost half the world away—radio

fit

portant to the future of television
as

page

S.

equipment. While McDonald was
at Etah, Greenland, and the U. S.

had

Channels

U.

cruise.

fleet

headed

McDonald

fied.

the

of

it

Commander McDonald

north

sailed

the

and

when

Seattle

goodwill

Fleet

Orient,

amateur and sent

an

by

is simplicity personi¬

channels

on

purchase by United States resident subscribers of the necessary Cana-:^
dian funds. Reference is made to the Prospectus for further information., •

5

communications

The UHF

Continued

the

I

maintaining

at

;of business

in

succeeded

and

ation.

UHF

offer to sell

Aluminium Limited proposes to

short-wave radio

the Arctic

ditions

This

got better pictures

offering is made only by the Prospectus.

scription at $65 (Canadian)

make surprising dis¬

five minutes to complete the oper¬

localities

by Mr. Bonfig before the
Kansas City Electric Association, Kansas
City, Mo., Oct. 16, 1951.

his

set

could

the air, there would be intolerable

interference

on

hands, insert
strip in the tuner of a standard
with

Zenith

it

station

:

In'.

from the UHF station in Bridge-'.

(Without Nominal

time called short waves, and

him with short-wave apparatus on

hard-boiled

radio and television editor of

pictures.

the

October 16, 1951

\

with very low-powered transmit¬

this

the

of

Aluminium Limited

When they first were given the

commissioned

to

interference

372,205 -Shares

spectrum from 1500 kilocycles on

Some months ago we demonstrated
feature

the,,

_V">'

into

United States.

our

was

clarity and freedom from ignition

in

NEW ISSUE

frequencies.

tuner.

on

characteristic;

stations

UHF

could not be

said

the book

know

done—who

contact
through radio amateurs with the

simple insertion of

available

these

they didn't

of the

spaces

outstanding

•One

of

quote—"the absolute limit

an

;

.long enough
to give a very good measure of
UHF potentialities.

had reached

the radio amateurs—kids

needed

one

we

that only those

MacMillan took

is the

Bridgeport, Conn. It

has been established

New Haven we

be¬

proposed by» the Federal Commu¬
nications Commission, All that is

tuning strip in

several experimental.

of which is iri

today.

This announcement is neither

tance records.

UHF

are

stations in the country, one

UHF

the Ultra

to

unvalued.

and

sold

new

in the

nication,

ters began to

television set we have
the public can accommo¬
of the

;

Experimental UHF Stations

band, where television

are

the,

operation, of.,

terminology
industry

our

lieved 28 years ago

that every

date any

stations.

UHF

that

characteristics

long after

—and I

for

needed

identify

close to
of the their dividing line. Then some be¬
in this gan to venture into what we at

these
of the leading trade journals in
sending
their signals many miles, further .the merchandising field. We took
him to Bridgeport where there is
than anticipated.
The result, as
television

VHF

the night the day, that

We found many new

desirable

the

as

power

History again repeated itself as
solutions to these problems were
discovered.

yet

there will be no limitation on

problems.

new

not

There

upward

was

t

While they,,
reached the power
attained in lower frequencies, it;
in these frequencies.

have

Again the
engineers tore their hair as they

signals by their frequency
than their wave lengths.

that

a

engineers designed and

the

spectrum

where the new TV channels
Other engineers

to be located.

developed transmitting equipment

terminology has changed in

Translated
we

are

strips that could oper¬

discovered

we

securities. The

industry.
Zenith, alone among
manufacturers, can truthfully state
to

step

we

recent years

radio

range

to

High Frequency band.

•

quency

allocated the different channels to

next

of what would happen.,

developed a turret tuner,

efficiently throughout the UHF

follows

characteristics

200 meters.

ment of 1945 that television would

had exceeded the prognostications
Here is what happened:

Kansas

ate

with

invaluable.

TV, FM, Radar, and a
myriad of new
radio
services
operate, was unknown, untried,

have

frequencies

selling

was

Our

men

with tuning

learned how
high-frequency
they came into

use,

do any good.
not impressed

this grousing because it had
familiar ring.

Our

tuning.

as

new

made them

cies in which short wave commu¬

given

or

ex¬

new

and

was

very

confident

soon

these

many

broadcasters

beginning to look eagerly at

little

had

have lived in this

of

handle

I

to

"I

seriously the Commission's state¬

performance

to

change and

had felt that
problem for the far-

whole

to UHF

thought
this

from

situation had developed which had
a familiar ring to those of us who

burgeoning,

However, they

frequencies lower than 1500 kilo¬
point with pride." Although the cycles were worth a tinker's dam.
radio and television manufactur¬ The whole high range of frequen¬
refrain

to

me

handicap

other methods of

to

power

how

channels with

So,
when the industry was
grumbling about the UHF, I was<

open¬

had

these

in

Gentlemen,

coils left, and after
reaching that point had to develop

general

UHF.

enough

any

signals,

,

many

They

knew

nobody

broadcast

problems that

insoluble.

more

are

because

followed.

confronted

were

In recent months there has been

a

soon

use.

technical

weren't

receivers
in
utilized only a
fold in 1948. Then came 1949 with
applicants for stations than there tiny portion of the radio spectrum.
2,400,000 receivers and rosy pre¬ were channels available. In Janu¬ In those days we spoke of "wave
dictions that 1950 would see pro¬
ary, 1949, Chairman Wayne Coy of lengths" rather than frequencies.
duction by RMA members of be¬ the Commission, told the Radio We considered valuable only those
tween 3 and 4 million. Actually Executives Club of. Boston that a wave lengths from 200 meters and
output for 1950 was nearly lxk total of 50 to 70 television chan¬ up, and tossed to the amateurs, as
million TV receivers, to give us nels might be required to provide worthless, the short waves below
180,000

output

ships

general effect that

work in UHF was a waste of time

S.

take wires off of coils until there

the
pur¬

So

They

seemed

available

stations.

comments to the

of

U.

Other navies of the world

spectrum

new

potential broadcasters
that
the
present
be

the

a

ly.

assume

not

in

frequency reception rebelled

been

by

for practical

would

began

allocation

new

freeze

now

we

Commission

the

work

a

said, it would be

call Ultra High Frequency or

sustained expansion. In that year

public

enough

the

total of 6,476 receivers.

accepted

-

not

were

year

pro¬

frequencies have

any

engineers in developing
tuning strips for UHF chan¬
nels.
I also recall industry-wide

the

Engineers in
radio factories charged with the
job of designing receivers for high

of

use

introduction

High Frequency range.

well remember the struggle

can

by

in

can

the

audience

Back in 1945 the Federal Com¬

VHF

dustry

with

poses many

;

Channels

channels

VHF

the

radio

unquote,

of Zenith

from

began to call them, high frequency
channels, represented the ultimate

There

receive UHF
an outside
converter.
The history of our in¬
dustry shows that converters to

only

could
Not

production got
that

it

the Commission froze all

ed

In

the

and

losses

receive

I

—

technical pioneers led on into

the Ultra

utilization of short wave, or as we

con¬

receivers that will

own

distance

frequencies"

high

our

Many people in the radio indus¬
try thought that this successful

service,

were

of

Greenland and Tas¬

to

and merchant

audience of mil¬

an

lions who

postwar TV
underway.

is in existence

fighting to get on the same
living room TV screen. To prevent

with

when

1946

television pic¬

more

tures

starts, and be¬
gin our ap¬

praisal

or

Navy.

addition to

In

broadcasters

would-be

led

short-wave

wonder that TV appli¬

no

rather

stadium.

with two

mania

buildings,

terrain, etc.
It

al¬

sea,

powerful

The successful communica¬

tion between

range

cerned about the audience.

I do not believe that the world

shore.

areas

service

with

substantial

any

highly sub¬

was

ject to reflections, that large

presses

of

told that its range

were

short, that it

was

theatre

We

UHF.

skeptical

ships at

wave,

equipped

long-range transmitters, were
completely out of touch with land
during daylight hours, if they were

the in¬

ago

highly

was

short

though

short time

a

dustry

Vice-President, Zenith Radio Corporation

to

of

to the radio and

of course,

television industry.

15'

wave.

a

group

of

for the bene¬
the Fleet,

of

13,000 miles away.
Until

these

strated the

amateurs

demon¬

long-range possibility

The First Boston
New York.

Philadelphia

Corporation

Pittsburgh

Boston

Cleveland

Chicago
San Francisco

a'

16

The Commercial and Financial Chronicle

(14-34)

Continued

from

Tomorrow's

country and crew, and of conduct¬

15

page

Television's New Era
miles

17

port,

than from

away,

Walter

the local New Haven VHF stations.

Says —

problems in the use of UHF. It
has
been
anticipated
that
the

There

definite

course,

of these stations will be less

range

By WALTER WHYTE;

of

are,

than VHF and there are problems

A minor reaction

during the

week gave bulls a little heart
failure and bears something to

The end result, how¬

standoff for both
sides with valid arguments
that could be convincing for
whatever side you happen to
be on.
The market's high
ever, was a

reaction
from the current levels highly
dangerous.
It's also acting
like it will do nothing of the
enough

make

to

sort. All

a

the

on

method is

coin.

a

think such

don't

And

of

toss

a

far fetched.

so

of

solution

a

,

Crystal gazing is always a rash
venture, but on the basis of what
what
of

know about the UHF and

now

we

University of Colorado.

ability

about the

know

we

engineers to discover new ad¬

make the

in new frequencies, I
prediction that the sta¬

tions

the

vantages
on

channels

UHF

are

going to render as good or better

It is

in operation.

now

expected that the great

now

will

of television

freeze

the VHF

than

service

all-around

stations

thaw, within

steadily growing number of new
VHF and UHF stations throughout
which

to areas

television

will

and

plicity of stations in many cities
which now have only one or two.
The result will be

swiftly grow¬

a

The purpose was to determine
heads or tails was better

ing market for television receivers
and a rapidly growing use of this

than the Dow

great new means of communica¬
tion and information.

if

Theory. The

searchers took the Dow

re¬

and then tossed

critical

favor of the

in

were

could find

if I

Now

coin.

The final

junctures.

results

coin I'd try

the

*

*

*

as

I'll have to

it may, I

back to

go

So

From everything I
industrials

the

continue to go up.

will

As the rails

get higher and higher rates

they'll also
believe

a

confirmation of

by

average

except

I

continue

to

some--

as

The

thing to point to.

favor

one

will

other

the

much

mean

I don't

creep up.

groups

are

the

major

the part of tele¬
Will it be able in coming

questionmark
vision.

on

after it has developed into

years,

truly national service, to bring

a

to television set owners all of the
fine

entertainment, education and

information of which it is techni¬

I

old

bogey of who's going to pay
what.

We

have

seen

growth of television
the

broad in

so

that it has already changed

behavior patterns

of families.

of millions

We have

seen

splen¬

did entertainment features devel■

/;

•

.

••

-v..

1

:vi'f

..

■;

.

\

oped for television alone. We have

participated with
an

events

as

feeling,

new

in such

awareness,

tional

a

great

oils, amusements and
If

steels.
aboard

you

want

don't do it

to

on

get

strong

days. Wait for sell-offs.
[The
time

not

coincide

Chronicle.

They

presented as
only.]

are

those of the author

Most of

us

impressed by having

monies at the

are

deeply

opportu¬

an

Executed

on

Pacific Coast Exchanges

inaugurated

active

span

we

1919

SECURITIES

Members
York

SPECIAL

CALL

OPTIONS

Per 100 Shares PIjs Tax

Exchange
New
York Curb Exchange
San Francisco Stock
Exchange
Chicago Board of Trade
14 Wall Street

Private
San

Wires to

New York 5. N. Y.

Dec. 31

287.50

Dec. 31

425.00

Fr..@30VzDec. 13

137.50

.

Western Union@45
Dec.
7
Inland Steel. .@52%Dec. 15
Huds. Bay Mg.@62l/4 Jan.
2

287.50

Std. Oil N. J..@70

5

487.50

Corp...@23%Jan. 7
Tel.@18% Dec. 24

237.50

Radio

Mar.

450.00

475.00

87.50

findings

were

on

did

I

television

my

not

see

any

of these once-tele¬
vised sports
vanished from the
screen
because
the
promoters
found that televising hurt them
more in
gate receipts than they
All

hockey.

could

gain from television rights.

It

is

vision

events and many

this

in

sports events from television be¬
cause there was still an abundance
air.

the

fights

still

headliner

like

the

Sugar Ray Robinson-Jack LaMotta

Valentine's Day.
But
suddenly something happened. A

fight

last

TV

bid for rights to

Louis-Savold

the

installed

theaters

of

bunch

and successfully

fight, leaving

just

educational

Zenith has

Principal Offices
Barbara

Fresno—Santa Rosa




50

extremely important

Phonevision

—

possible

Also—

televising.

ing-sponsored
feature

the

make

can

extension
television so

of

use

teaching methods on

that countless thousands of young¬
sters

a major portion
education withbut

secure

may

of their college

leaving home.
is

subscription

that

believe

We

television

the most im¬

of

one

used to

portant tools that can be

help television fulfill its destiny.
We know from our test results

in

of

providing
With

public wants it and we
it is highly in the

the

that

believe

Therefore, we are
immediate future going to

the

apply

of

establishment

the

for

box office for home

a

subscription television as a com¬

television

television.

a

mercial service to operate

Phonevision,

in

con¬

The

picture

tition, television will become the

making a telephone
call and having the correcting sig¬

greatest educational and entertain¬
ment medium that the world has

United

nal sent into his receiver over his

ever

almost

the program of
This was bad

on

sports.

in

everybody
to

wanted

States

had

moters

the

The

see.

already

pro¬

that

learned

keeping their events off of tele¬
vision

was

terrific

a

at the

office

box

and that

stadium

it also added great value to motion

exclusive

rights to the Robinson-

Turpin fight to
theaters and

got

exhibition

for

small group of

a

hefty guarantee
rights to motion
a

pictures.
The result for producers was a

Their

success.

gate at tne fight exceeded $700,000
and established

a

motion

above

record for

new

fights at this weight.
far

The return

picture

$200,000,

rights

ran

their

that

so

return from this venture was

One lead¬

ing sports authority told

me

that

keeping this fight from so-called
"free" television was worth nearly
half

million

a

in

ture

a

broadcast the pic¬

can

form.

scrambled

a

subscriber

the

have

can

cleared up by

Without this

telephone wire.

recting signal his television screen
show only a jittered,

will
bled
box
for

office, since he

scram¬

provides

This

picture.

receiving the correcting signal.
of this year

For the first 90 days

Zenith

with

conducted,

cations

commercial

ap¬

Phonevision.

of

test

the

Communi¬
a
limited

Federal
Commission,

proval of the

moters.

dollars to the pro¬

for

premium

the

economic

crucial

problem confronting TV:

the

and

producers

test

by the National Opinion

Chicago.

with

Nine

receiver

which

total of 90 feature
to

pictures avail¬

These

us.

section

cross

of

a

represented

Hollywood

through the

years

a

pro¬

preced¬

of them had

own

ing

pleted the first, second and third

1948.

All

reissued.

We

and

runs

had

some

been

:'vV;,y;

<;';!/

the average
one new motion picture a day for
90 days with three showings of

to

had

for these events, and will

pay

even

quite

break

down

theater

doors

presented

each picture.

on

Our 300 test families

accepting

of $1.00
of watching

charge

did in Chicago at the
Robinson-Turpin fight, when the

each

event is good

television programs they

as

they

thing is

enough. When

added

up,

promoters must put

rights to

every¬

the price the
on

television

great events is

many

so

a

showing,

other

In

words,

television

was

with

tion

or

great that advertisers will not be

television

able to pay

the

direct

four

Chicago.

it.

stations

that

the

football
a

drastic

mos.

187.50

to

attendance

within the

a

not

of

only

drop in gate at¬
heavy body blow

at

area.

televising

games

smaller

This is

colleges
a

matter

of critical importance to the entire

physical education program of our
colleges. With most schools it is
football

financial

revenue

that

burden

of

carries the

financing
money-losing sports such as cross

per

the

the

air

in

by

audience,

bought
rate

pic¬

of 1.73

is about

A, $50

average

at¬

motion

pictures.

On

each picture
25%

of the

17

common

cumulative

and

the

at

series

value, at $50 per share

par

of

rate

one

share

of

preferred for each five shares of
held.

investment

An

banking group headed by Dillion,
Read
&
Co. Inc. will purchase
the

company

preferred

stock

subscribed

at the

The

:

period,

scription

any

common

,

shares of

remaining

un¬
of the sub¬

end

1951.

30,

Oct.

■

convertible

is

stock

new

stock at any time on

30, 1961, at $36
share taking the pre¬
ferred stock at $50 per share. A
prior to Nov.

or

per common

sinking

fund

30,

1961.

.-V,v

the

Of

5% per annum
commencing Nov.

of

is provided for,

from

proceeds

the;

financing, $6,000,000 will be util¬
ized to reduce outstanding bank;
loans

and

the

will

balance

made available for

be

capital expen¬

ditures, working capital and other
corporate

in

Mills,

Inc.

wide variety of

thetic

yarns.

; >

is engaged

and sale

manufacture

the

'

purposes. ;

Robbins

of

a

fabrics from syn¬

Fabrics

are

sold

principally to the cutting-up trade
and are used for year-round men's
women's

and

suits,

dresses,

derwear, blouses, shirts,
other

company

its

line

a

recently added

number

including

holstery

un¬

draperies

household furnishings.

and

The

three fabrics

national

at

tendance

average

which

week,

times

office

competi¬

commercial

on

families

the

at

fit.

;

test

Our
tures

any

saw

box

our

in

for

Oct.

on

of its

convertible preferred stock,

the

privilege of seeing any
of these pictures they wished by

Inc.

4.50%

of

shares

864

com¬

frequently
means a disastrous drop at the box
office. They have also found that
the public is willing and eager

events

Mills,

holders

to

stock, rights to subscribe for 166,-

into

producers

by making

us

they

televising

that

University
provided

was

picture

major

cooperated with

theater

experience

Each

television

a

Three

selected for

were

would also receive Phonevision.
v

Robbins
offered

from

create, and they have found from
their

pay

tele¬

on

homes.

own

Research Center of the

duction

the entertainment properties

programs

vision in their

hundred families

of

television

willing to

Offering Underwritten

common

able

;

is

Here

wanted subscription

lic

and if people were

Bobbins Mills Stock

the

be charged

can

known.

cor¬

We wanted to find out if the pub¬

smashing box office

from

transmitter

So they sold

pictures of the fight.

but also deals

Broadway, N. Y. 4, Tel. BO 9-8470

pioneered in the de¬

many

costly for advertis¬

too

are

enough, although it was not a very
important fight.
But then came
the Robinson-Turpin fight which

vacuum

325.00

Association, Inc.

Monterey—Oakland—Sacramento

which

junction with and over the same
stations
as
advertiser-sponsored
television. If FCC grants our pe¬

mos.

THOMAS, HAAB & BOTTS

of

of

presentation

great events, such as Grand Opera,

public interest.

chased

Members Put & Calls Brokers & Dealers

the

and more than three years
announced Phonevision as a
technical solution to the problem

the average,

request

Moreover, it can make pos¬

sible

1931,

tendance for most of these games,

on

major feature of Phonevision

A

ago

causes

price change

commercial opera¬

regular

that

650.00

or

it does

tion.

velopment of subscription televi¬
sion. We began working on it in

425.00

sale

service

capable—that

"admission fee."

an

Cyanamid @114 Dec. 13

prior

is

full-

viewing costly box office features
in their own homes can be charged

Grt.

to

frcrm

de¬

period

the

during

more

voted to Phonevision than

method

evidence

Explanatory pamphlet

the

subscription
television,
by which people

is

some

major

Subject

the air and

and

television

187.50

@45% 5
Budd Co. ....@17
5

Phonevision would,

on

and this is an

to keep

way

one

entertainment

fledged

see.

Wednesday night with

every

occasional

an

could

We

soon

provide the greater abundance

to

of

way

nothing too alarming
slow
disappearance
of

others will

these great events on

which
was

is

There

upon

sports

great

the air.

vanish from

162.50

U. S. Steel....

far

College

solely

depend

@17% Dec. 31
Steel...@56%Nov. 14
North pf..@54% Dec. 31
...

station

television

the basis of these results, earn

on

alone.

these

advertisers

Subscription Television
There

to

Similarly, the National Collegi¬

Beth.

be.

inevitable that if tele¬

seems

ate Athletic Association has strong

Magnavox

will

afford to pay.

375.00

@43

television

of

gate attendance. In my mind,
question as to what

upon

287.50

.@40% Jan. 14

Woolen

to de¬

there is little

Dec. 21

Amer.

Teletype NY 1-928

Francisco—Santa

•

Pipe & Fy.@39% Dec. 31 $350.00

Celanese Corp.@53
Int'l Silver, .@61

Stock

COrtlandt 7-4150

have

effect

the

termine

part

as

continuing study

Am.

Schwabacher & Co.
New

And

screen.

of

Cont'l Can...

Established

of tele¬

of football broadcasts

their

bitter

growth,

Int'l Tel &

INVESTMENT

action

in

Bears

Promoters

Through the brief

St. L.-San

Orders

which

trans-continental television.

U.S.

Securities

cere¬

signing of the Japa¬

Treaty

nese

•

Pacific Coast

that

Dame

played outside the conference.
I did not once see our Chicago

well beyond $1,000,000.

hearings.

operating

to come.

more

a

-

Purdue-Notre

the

precedent-breaking Kefauver

Moreover,

which almost certainly is that if" it is established as a
Chicago, I did not see a single means our whole system of inter- commercial service it can make
and intra-collegiate sports, cannot possible television stations in many
Big Ten team in action on tele¬
vision except for a few games such survive if college football is tele¬ communities too small to support
as
Wisconsin
Pennsylvania and cast for prices that advertisers can a station on advertising revenues

gross

expressed in this
necessarily at any
with those of the

views
do

events. All last year,

umphal sweep of the country and

vision's
article

na¬

MacArthur's tri¬

nity to observe the solemn
coppers,

lush

a

with millions

This,

partial black¬

a

as

athletics,

stimulus

for

the

from

screen.

shown

greater than they origi¬
nally yielded in theatres, And, re¬
member, there are already 13 mil¬
lion television receivers in service,
or

in

»

referring, of course, to the

am

scope

here goes.
see

There is still, however, a

cally capable?

conventional methods.

can

a

method.

same

Well, be that
guess

coin at

a

their

these sports

televised

Who's Going to Pay?

age;

umn

something has been happening to

big

aver¬

set the opinions of its
leading exponents in one col¬

of

no

multi¬

a

having

we are

out

on

have

now

give

fall

want to keep

not

spectacles

television

American

football games, both col¬
and professional; cham¬
pionship prize-fights; professional
hockey games, etc., etc. •
But over the past year or two

a

These will bring ser¬

great

legiate

and

long there will be

world

the

as

they do

major

begin to

months

few

a

that before too

vice

at the

prob¬

the

of

some

lems.

the country.

Some years ago the toss of a
coin was the basis of a study

an¬

However,
nature of UHF points to

the very

this, I suppose, means

you'll have to make your deci¬
sions

transmitting

in receiving and

tenna, yet to be solved.

such

events

sports
series;

abundance of fine

an

seen

cause

these

Markets

cheer at.

great

features

the

of

many

ing physical education programs.
The NCAA is making an earnest
effort to solve this problem be¬

f'4

Thursday, October 18,. 1951

..

and

seat

of

to

industrial

automobile

up¬

covers.

Capacity for the production of

was pur¬

potential

which is somewhat

synthetic

staple

fabrics

is

ex¬

pected to be doubled early in 1952

percentage of when the company's new $12,500,originally 000
plant at Raeford, N. C., reaches
in theatres.
full
operation. Other mills are
Projection of these test results
located at Robbins, Red Springs
to a theoretical 10,000,000 Phoneand Aberdeen, N. C., and Clarksvision-equipped receivers indicates
greater

these
seen

a

than

the

families that had

the pictures

Phonevision box office value for

ville,

Va

Number 5056

Volume 174

.

.

The Commercial and Financial Chronicle

.

(1465)

This

Tiiiman Again Proposes Peace Talk
In address at Wake Forest College,

N. C., he

and disarmament, but warns free
continue to arm and develop strength, because of
lack of faith in Russia's pledges.

world must

is

the

toward.

goal of

goal

fense

program,

program

a

tions.
our

is

It

this

have

and higher taxes,

of aid to other
this

for

nations,

brought

brought

at

sneer

chance to

great

our

"Yet, at heart, I do not greatly
such men for they have al¬
ways been with us, and
in the

fear

hope, It is

by those who spread

on

to

us

do good for mankind."

by those who aban¬

on

don faith and

that

striving

are

blind

by doubts and fears. This danger
is

na¬

purpose

cynicism and distrust and try to

future. The worst danger we face
is the danger of being paralyzed

de¬

a

blinders, and look toward the

your

great

and the soldiers of other

men,

free

are

we

that

peace

work¬

we

for

is

It

and

invitation

renews

Soviet Union to talk peace

to

ing

17

long

run

they have always failed."

and

fighting in the hills of Korea,
In

the

address

an

ground-breaking

monies for

Forest

of

course

marking

a

new

at Wake

campus

College,

cere¬

Winston-

near

creation

of

the

defenses must

armed

inevitably lead to

war.

This is not

We do not think

case.

war

is

inevitable.

Salem, N. C., President Harry S.
Truman renewed his invitation to

defenses will make

the Soviet Union to conduct talks

So

on

rearmament.

and

peace

The

portion

man's

address

President Tru¬
dealing with this

of

topic follows:
Our

country is standing before

the bar of

history today in

conspicuous place.
is

watching

world
that
of

All the world

the

all

because

us,

a very

knows
the

tent,

ent

time,

and

tions to

fort

is

But

in

peace.

We know now

Hitler.

fighting in
aggression.

people who point to the sac¬
rifices, the
inconveniences, the
cost, and wYfi say it would be
better to do*'nothing—or as close

Must we then have

jff.:';;v

great effort for peace is a
It is not the deci¬

national effort.

group

the result of

one

or
our

person.

entire

na¬

experience over the last few

to

We Support United

Nations

By the end of World War II we
had learned, as a nation, that we

by keeping
the affairs of the world. We
have

peace

determined to act, positively

other na¬
tions, to preserve peace. That is
why we embraced the United Na¬
tions, and pledged to support it.
with

vigorously,

Everything that we have done
since has been the result of this
have

we

other

with

defense program, our

done,

our

nations,

our

aid to other

countries has been the result of
our determination
to uphold the

principles of the United Nations.
been

harder

and

more

than we expected, be¬
the refusal of one of the

dangerous
of

cause

out the
spirit of the United Nations, and
great

to

powers

carry

live

to

peacefully and coopera¬
tively with its neighbors.
But, if I understand this country
correctly, there is no desire to
backtrack on the path we have
taken toward peace. There is no
intention

of

obligation

running out
undertook

we

to

We made our

fenses.

As

a war,

have

it out—and

defense

leaders

our

program

Soviet Union

gin to take effect, that
objective—our

only

our

interest.

am

our

discuss the pos¬

enforceable
arrangements to reduce and con¬
genuine,

of

Since the end of

armaments.

World War

II,

to work

ing

have been try¬

we

out

a

plan for

the

balanced reduction and control of

ing

to

we

price

the

pay

shown

have

comes

will¬

are

for

the Soviet Union
atomic bomb, we devel¬
oped a plan to control atomic
weapons. Other nations endorsed
this plan. It was a good plan. It
before

Long

the

work.

would

would

It

free

world from the scourge of

the

atomic

afraid

that

some

people,




market

of

owners

in

New

cor¬

England,

proportion to population, than

in any

We

it.

stocks

other section of the country
a
survey just
released

by positive acts that

bv

Wallace

willing to work and sacri¬

are

Fulton,

H.

Exec¬

utive Director
Twice within

generation

one

we

the

with

mind

the

rope,

and

tional

rities

neighbors,

of

has
est

left,

were

thieves,

stint

oil and

population

New

come:

price.

newest

the

high¬

8.8%, and then
H. Fulton

Wallace

wine,

our

without

and

of

one

and

robbed

half dead, we have
our

the

1,923,980 stockholders.

mutual funds

of

owners

ceeds

The NASD

shows that the number of

survey

owners

were

not

State-by-State

covered

and

Leading

States

in

numbers

according to
the survey of the 494 issues of
stock: New York, 296,369; Cali¬
fornia, 278,642; Connecticut, 177,284; Massachusetts, 150,861; Penn¬
sylvania, 134,232; Illinois, i 19,728.
The 494 stocks included

Union

counter market.

H

a m

p

Brooke-Willis Branch

shire,

In Norfolk, Va.

3.7%; Maine,
Island, and Massa-

threats and

curses

of freedom—and
us

even

of the enemies

bring

may

ratios

our

of

sins

commission, for which

of any

sins

and

But

that

I

maintain

dare

that

before

sowers

that

seem
our

track
or

and

that

woe

would

say

has

stock

With Barrett Herrick

the

owners

it ranks 7th in the
to population.

owners

(Special to The Financial Chronicle)

ST.

Knopfel
have

LOUIS,
Mo.
and Arthur

become

Barrett

—

a

is

no

sixth,

Herrick

connected
&

Co.,

ruin

lie

The survey covers

ahead,

494 stocks in
In¬

LOS

ANGELES,

G. Roman is
du Pont

cluded
ance

I

40

were

banks, 60

insur¬

&

now

Cal.—Ulysses

with Francis I.

Co.'s Los Angeles of¬

fice, 722 South Spring Street. He
was
formerly with the firm in
the 494 have Chicago.

companies and 394 industrial

"Take off companies.

thing:

With F. I. du Pont

,

.

the over-the-counter market.

In all,

$5,250,000

Chicago, Rock Island and Pacific Railroad
Equipment Trust, Series K
2%%

tions commissions working in

field, the one on atomic energy,
and
the one on other types of

this

Work

has

forward and good pro¬

gone

on

(Philadelphia Plan)
To

mature

has been made. We are ready
as we have always been, to
sit down with the Soviet Union,

To be

gress
now,

and

all the nations

concerned, in

the United

gether for

lifting

are

$175,000 semi-annually May 1, 1952 to November 1, 1966,

Priced

to

yield 2.05%

securing the peace.

determined to

leave no

unturned in this search

a

the

not

of these Certificates are subject to authorization by the Interstate Commerce Commission.
Offering Circular may be obtained in any state in which this announcement is circulatedfrom only
of the undersigned and other dealers as may lawfully offer these securities in such state.

Issuance and sale
The

such

HALSEY, STUART&.CO. Inc.

that the growing strength
world will convince

HORNBLOWER &, WEEKS

BEAR, STEARNS &, CO.

L. F. ROTHSCHILD &,CO.

free

leaders

to

2.925%, according to maturity

durable peace.

of

the

Soviet

that it is to their own

est

to

by

the burden of

only for relief from the horror of
another world war but also for the
basis of

inclusive

guaranteed unconditionally as to payment of principal and dividends
Chicago, Rock Island and Pacific Railroad Company

Nations, and work to¬

armaments and

Equipment Trust Certificates

proposal

weapons.

lay

aside

Union

best inter¬

their aggressive

A.G.BECKER A CO.

THE ILLINOIS COMPANY

WM. E. POLLOCK & CO., INC.

INCORPORATED

GREGORY &SON

McMASTER HUTCHINSON & CO.

INCORPORATED

and their
phony peace
propaganda, and join with us and

plans,

practical arrangements for achiev¬
ing peace.

with

Inc., 418

(Special to The Financial Chronicle)

vey.

honor

of the two United Na¬
this

merger

Lawrence
Langtry

C.

Locust Street.

in the land, and

one

State,

of

proportion of citizens owning
stock, according to the NASD sur-

that there

and

York

New

number

of suspicion, and

of fear, to all those
bent on persuading us

left

Germain Street.

after-the New England States, in

country is on the wrong

loyalty

CLOUD, Minn.—Conrad M.
has joined the staff of
King Merritt & Co., Inc., 1616 St.

number of stock owners, ran

the

the peddlers
who

matter

much

done

have

we

right.

was

the

ST.

Lidstrom

California, threatening New York
as
the
residence of the largest

in need of the mercy of the Lord.

world

in

States

ratio of such

stand

we

of stock ownership

King Merritt Co.

(Special to The Financial Chronicle)

ownership.

/Although
largest

We have com¬

omission

of

various

such

of

country the mantle of per¬

fect righteousness.

mitted

the

should claim

that I

exact

not

among citizens of a State, but they
indicate the relative positions of

history, it is these things that will
justify it, and not the negative
virtue of meaning no harm.
God forbid

therefore,

are,

measurements

less, if this nation is justified by

for

The

two or more different stocks.

upon

troubles. Neverthe¬

worse

Rhode

re¬

jected these plans, too.
Last year,
before the United
Nations, I proposed further work
on
the problem of disarmament,
and a new approach. I proposed

repre¬

sent issues active in the over-the-

developed initial plans look¬

Soviet

of

resident stockholders

NORFOLK, Va.—Brooke-Willis,
smallest nations of Asia was in¬
cnusetts, 3.2%
each.
Vermont Inc., of Richmond have opened a
vaded, we led the free world to ranks 13th in the list with 1.5% branch office at 9 Selden
Arcade,
its defense.
of its population owning stocks, Norfolk, Va., with John H. Willis
These
positive acts have not according to the survey which as the firm's representative.
been
easy
to
do.
They
have does not take into account the
brought upon us the hatred and fact that one person may own
Joins

3.5%;

ing toward the balanced reduction
and
control
of
other
types of

The

the

stock

ownership.

jected it.
Working with other nations, we

weapons.

ex¬

in

of

survey

warfare. But the Soviet Union re¬

also

now

1,190,000. These mutual fund

density of
shareholders,

in Scripture who fell

man

Dealers,

Connecticut

of

god

Na¬

Associ¬

Inc., discloses.

the

against

false

the

offered them

When

weapons

spirit,

of

our

like the

all

the

of

ation of Secu¬

six long years now we have con¬

To the

the other free nations to work out

here and abroad, believe that the

in

more

are

poration

fice for it.

armaments.

to

peace.
I

as

example, the Kremlin may

sibility

the

objective—is

And

live up to.

of

basic

that

increases, we should be
able to negotiate settlements that
the Soviet Union will respect and

as

be¬

success¬

strength

I hope

begins

de¬

improve,

negotiating

the

of

self

own

that is that.

alliances for defense

adequate

peaceful arrangements are in their

stone

turn out more and more weapons,
and

same

fully with the Soviet Union will
increase.
The growth of our de¬
fenses will help to convince the

sup¬

It is important to remember,
our

in the

defenses

our

the chances of

We

decision, it was the
we are going to fol¬

right decision,

Peace

on

the Soviet Union—if the

as

nations

free

the

on

port the principles of the charter.

low

have shown that

we

Our policy is based' without

live, without

world

got

decades.

has

completely

the hope that it will be possible

trol

'

It

Peace

say.

high in these troubled days, and

among

it.

treaties

is

Policy Is Based

then be willing to

All

until one

a war

other

js clear, to most of us at
least, that the effort is worth mak¬
ing—indeed that we have to make

decision.

defenses

have

we

the

or

For

But it

and

can

in defense of human freedom. For

I think not.

nothing as possible.

were

I

have spent our blood and treasure

aggressor

showdown, and

on

are

out of

counter

tyranny. When the nations of Eu¬

President Truman

positive effort, this
questioned and criti¬
cized. There are people who ask
whether it is worth doing. There

could not

But that is

so.

There

This

wounded and

any
is being

tional

they desire to do

something this country will never

in the world.

an

once

Our

Like

one

plunge the world into carnage

we

folly of weakness in

victorions?

the

young people who are
the front lines against

is

if

England Leads in Per Capita
Stock Ownership

Wallace H. Fulton, Executive Director of NASD, releases data
on
stockholder distribution covering 494 stocks in over-the-

Kremlin

adherents

side

taxes, in energy, in unwel¬
changes in our daily living.
It is even costing us the lives of
some
of
our
bravest
and
best

sion of

ef¬

own

the

tended,

a

ac¬

come

It

our

of

the next step?

costing

Our

on

rulers

sion that Hitler practiced, what is

—in

to

The

enough to prevent the
sneaking, creeping kind of aggres¬

great deal

one

entirely

must have defenses when

we

world. This ef¬

us a

pos¬

solid

out

strong

secure

in

peace

work

lasting arrangements that will
war.
Our strength will

there is

series

positive

to

prevent

that

this

engaged
great

of

become, the more

we

sible it will be

the days of

nation of ours

a

stronger

what

on

will

we

do.

We saw the

At the pres¬

is

country has aggressive intentions,
real peace is
unattainable.
The

do.

we

forts.
can

make for

depends, to a
very large ex¬

less likely.

war

guarantee that

goal. The result does not

our

depend

long as one country has the
power and
the forces to over¬
whelm others, and so long as that

fate

civilization

I cannot

•

reach

believe that the creation of

We

New

Kremlin Can Plunge Us Into War

MULLANEY, WELLS &,COMPANY
October 17, 1951

18

(1466)

The Commercial and Financial Chronicle

'V
having more than a million population. The combined population
of these 12 large urbanized areas

Impact of Population Shifts

amounts

By ROY V. PEEL*

Director, Bureau

in

years

in the

•

'

■

means

-A

•:

%'k

.

In the

V'.

..

v/x

•

United

by 19 million,

States

increased

rates

14.5%. Since the

or

Mdecline

Aug.

divisions

76

„

-f

.

..

_

Population
Decline

cupied dwelling units were oc-cupied by owners. This compares

..

with 45%
jg4Q

0ver

"

'

'

J

mQ and

the

pop ulation
Roy V. Peel

geographical

F

over the numbers thii was an

rll?' Innfarm

ituo

anH

Th-

»■—~—

mmion;

iw

Lin Mil!

h

J

fh

?ul

ine

J

r? ® ^

to

}

x

urban

companied

%

popu-

was

ac-

net ; population

for

3,000

counties:; in

about

Southeast,

regional bringing

1L

centers

by

losses

one-half

the

of

the

United

States.

lea
168

standard
stanaara

metropolitan
mexropoiuan
of the country with central
of 50,000 or more

-

nearly

10

,

million

outside

areas

thpir

number

one-third
one third

of

the

ot

,

the

nntinnsl
national

.

population gam the. remainder of
them metropolitan areas
accounted
r nan of the
for half oi uie national
nauonai gam.
The farm population
xiie lann
pupuiauun

showed

a
a

siiuwcu

great loss during the decade. The
rural farm
population

decreased

by about one-fifth

and

stood

at

23% million.
Regional

actually

_

•

-

_

West, instead of 21/2 million loss.
the

namely

South

the

Middle

Migration

that^they will
the

o«K,o,irv,0v0

con-

•

25%

population
is

urban

with

urban population
the North Central

an

69.9%, and
Region third with an urban popuurpan
lation of 64.1%. Only the popuxatiuii
/o.
omj
South
has

an

v»t.x

of rural population

excess

urban

over

population,

with

Jl Uiai
rural population of 51.5%
urban population
of
VA

UA.V

a

and

(\J

an

UiiVA

MA*

By
1950, the urban population of the
e
country totalled 96 million, an in....

of

crease

except about 1 million of
country's 19 million population "gain between
1940 and^SHo

21.5- million
tutai

ut

new definition

-

.

from

lf>

^

uai!

A

ten

the

n
inrriiutl.

n.u

for urban

pop-

old

years

all

but two-

dwelling units

structures
nearlv

built

half

i

x

i

the

in

1920

Census.

"

?.

v

Ace

Qne
h

Un

5

in

years

—

1

tb

,

growing

over,

on

representing

n0niilation

Ten

population,
those

8.2%

vears

fen

1950

and

II

i

.

than

half

.

ook.^

eooKing

j i s^d

nver

mirm

the

i

urban

'

«

*'

but

*

electric

lighting
lacking

lighting was
the
rural, nonfarm
wcyTf thp "farm
22%, ot.the farm
"V c
d
under 10 vears 0f age in 1950, the homes. About 6 'nr
years of age. In
oj.
mlllion,
29 V2 million children under 10 of all homes, ha< no kitchen sink.
had
gain
gainf 111
in

10%

of

.

the .pupuiauun
uie
.population

nnA

homes

and

in

i)

?e^s

Industrial Employment

tu...

.

_

Per"lincluded

or

44%,

gain

occurred

South
of

Natural

in

the

total popu-

s

reduced

was

outmigration

by net
2% mil-

nearly
mcrease

the

an

4RrtmillSn IfS t^about
'l T:

icor

26%

°f the

PnnnWc

country

s

nral
natural
na

?n
in-

crease, but Its population gain was
tempered by net outmigration of
about

third

a

of

Northeast had
of
or

a

little

18%

crease,

gain

more

the

plus

a

net

with

a

million.

The

natural

than 3x/4

million,

total
third

of

a

million

immigration.
the

in-

The

greatest

total

gain,

of 2.2 mil-:

12% of the total natural
7. ;
lncrease, which was greatly
augmented by a net
immigration of
or

.

xi

about 3%

While

of

the nine
major
geographical divisions of the
——
,

areas

new

1950

ur-

drawn

„

typi-

.

conditions

are

•—

'




its

who

f 1"10riiprp0^pa
f
effect of the

Thf^s
lower

new rule rec°gnizes the
in 157 urbanized areas fac^
.of

Females Outnumber Males

country the urban
overfiowed

from

their suburban

banizea

areas

the

marked

square

things

500

or

mile,

that

set

apart from the rural
Npaiv

fiQ

or^|%

0f

banized

areas

tL

"f„
the country,
more

in

15/

48

million live in-

their

suburbSt

nnri

Z1/\ milll0n'

91

mil

1/

*

iu

or about % of the
tf the

eside in 12 urbanized

country.

areas

each

naH0nal gain,

was

in tbe

.
.

markpd

s population

half

a

sex

the

a

from

an

ex-

gst proportionai

""i1®f
ratio

the

West

The great-

gainj 46%,

was in

represented

and

nearly

one-third of the national increase
in service trades employment,

+hp
tne

tor

The

number

mRRon

been in Pr°grels since 1910 when
males
outnumbered- females

2/

million

The

1910

males
■pAwinlpft

females.

for

A nriAt*i4inrt

According

4-f\

to

sex

each
n

a

mary examination of the

sex

an

1950

rvi

-

data

West

tn

of

mately

of

persons

sexes

with

even

a

,

with

e

electricity had

pow-

by( electricity
As

a

1940

this

one

7.1

to

million

marketer
marKeter

deCrease,

million

this

amarp
aware

great

of

and

.

Families

The median income
for Ameri-

£amilies

in

the

nf

-

*

"*

"*

l949

in

Thls,m!.®"s that
Porting

t°

the

$3,068.'

was

one-half of the
Census

their

on

incomes had incomes below
this
J,ll..tu..t..HL-J!7
median and the other half
had incomes

the

over

'"b"*""

435,

was

median

amount,

highegt median
u«.vuiv,
income> f")
$3
mvuiun

found

U1VUU1V

for

the 5 million
families in the West and
the next
highrst mpHian
Rfi9.
highest median, $3,362, for the 1 fl
for the
10
million families in the
Northeast,

With almost

an equal
number of
11.8 million in each rethe North v/v,uoiai
Central

families,
gion>

vxaw

Region

xiugivn

had

median

a

$3,257

as

family

income

compared

.with

of

the

$2,248.

Four out of five
families had^^inunder
$5,000, while about
one in 35 families had
incomes of
comes

.

$10,000
^be

or more.

At the low end
of

scaie> 51/2 million

one

in

of

seven

all

families, or
families, had

incomes under
*i,w,u
$1,000
one
Qne

in

pnmpc
comes

12

a
a

^ai
year, anu
and

of all families
had
ha(j

iinrlor
under

families

in

$500

the

n

a

in¬
in_

f~\t

iroow

year.

nil

Of. all

under-$l,OO0

come

in¬

group,
nearly
one-half
were in th
the g
,,
South ah]d;df
Southern families ahnut
Ane
^.^x about. ®ne
in three were
non-white
.

(49%)

theJe

fariiilies.
TT

J

Mechanization of the Farm

Population Estimates
the
frequently asked
in the Census
Bureau's

of

questions

*

approxi-

was

thp national
decrease
|n agrjcuitural
employment,
*•

fullv
luiiy

are
are

One
—

threeirtv>c

whirh

Annual

balance of
In spite of the decrease in the
proportion of ratio of farm workers to the coun100.4 males for
every 100 females, try's
population from 1 in 15 in
In the Northeast, there
were only
1940 to 1 in 20 in 1950, American
the

XI

em-

o

100
t

prelim-

the 1950 Census, only the
maintains

by

ratio

dlP

Incomes of American

ma7s •
ea.
490 females. A general decline in ployed in agriculture decree
b
4 ^
million, or 18%, from
the sex ratio of the population has

thar; in

More

071/

tbe

tQ 12 Q million in 1950.

1q_

homes

StatS. ^;South's

South.

?°"n..try ^as ?

•

ur-

50,000
population:; Of these 69

sidp thp central'ritip<5

Uon

other

total nopiHaHra of
tne

the

to,af'ex^s of/boQ^c0^
aJJd °5ft, JL?
rQxf
195°- itle 1950

category.

in

■„

x**

more

Tl5^Jr

in tne

population

of cities with

or

country

ur-

minion'Americans

,1.
live

mixxivJii

total u. S. gain

Employment m the service industries increased by 1.9 ™lllian'
or 19%, from 10.1 million in 1940

Th

dwelling units
the

XTC.x

million,

f'the

inTtu6p h^Li ol the sexes Inshift
ln th.e balance ^ th^ Jexes
the

into

by contin-

and
the

1.3

iinn in 1940 to 10.4 million in
1950.
About 1 million, or over a t
or
third

Population

"

patterns, common ?es!
°fna.bout
services, 2,000 or more in 4940

population

or

cities
to form

areas

of
ot

years
in

141'miUion

I\J
^

JLtfrtU

d

Employment in wholesale and
retail trade increased by 2.9 million' or nearly 39from

of

street

utility
per

tJiat
?e
population has

h-

^^^tifcentral

th:

number

bjrths during.the depression
the 1930-40 decade.

•

^

t2iAmil4

fiplirp nt

^

III
Jn

About

m

number^having5 declined

integrated with
tbe centrai
city populations. This

A°..7r,I'i1 total popufat'0"1
verUsers, New York City, Sept.
26, 1951.

and

yeconomically

TT111 III 111

years

was 13% smaller *n 1950 than

adjoining central

cities 0f 50,000 or more
population,
whose residents live under

million, about

million,.

each

urbanized

uous

natural

numerical and proportional
had a natural increase

lion,

.

under the

increase

a

of

by

West,

..

r

1

,

^

rfner. new^ worker^ wiill^be
during the next few

,

of nonulation

T-»

^

?a/a

—

the]population,natura1940
ab

South, but the

lion.

military

million

11!

farm

•

ga^d

18

icnuo

1

all dwelling units in
had

areas

*

in

1940, about 2 million farms
electricity in the farm
■'
J
dwelling. By 1945, the number of

.icywucu
reported

the Potentials of
grQwi
market<

but

-

electric

been^counted

sonnel. Of the

Electrification of the Farm
In
xh

r>nhliratinn«

,

iion ^ Thp npw^areas

trac

are directed to the farmer to observe that the manufacturer and

cen-

homes

,

,

million

dSc"

....

Practically

*

ac

a

autumn

trucks anri
iiucks ana

greater

-t^^ha^th^ hmnes^mt
inrtep^om^stifl. used^wooa
used
ileetrtHtv for
electricity for

one

o—

.great

for

'

o

lar^e

a

one

more

over

total population.
The last decade likewise brought p
yrnaL

H
a

market

mfes a^ weU^s
wen as

panding.

heating ' Utility gas is the
nedimg.
chief cooking fuel, being used in

Act.t]^^out^^7^8 Million^ or^ about
?
n

and

is rapidly exmarket for durable
consumer goods, the farm off ers

of

out

of. irai

ago,

repre-

,A/W

c+iii

tors.

sented_ only 6.8% of the popula- ime o
horn Inl--y
1935 - - the W of the households
at
„•

thprp

trucks

'eDlacement

ered

radio

a

four

^"uta^lf ^ the homeshTd

ago

years

aged^ 65 years, and;
numbered 9 million and
a"? ,1?!:" '

rnnntrv

and

greater potential th
than ever before.
in eight homes had tele- Today, the farmer can use
many
vision, the manufacture, and sale things he once envicu ms
cuy
of television sets since then has cousin, *-and has the cash to
buy
outmoded +hic figure, Most homes them. One has
this fieriirp
most nomes
only to look at the

that

30 years.

was

April,

five had mechanical refrigerators,
^
Censu§ reDOrted
While the 1950 Census reported

^

In

Among us, there are about 12%
million who are 65 years of age

Jf}e

on

than 5 million

markV

tractors

7

automobiles

more

thp

easier keeps
growing. In the farm
shop, the use of machinery

,

Almost every home had

in

nnnnlation of
,^Ast a whole, the population ^of
the United States is

v-

million

in

vacuum
chines,
cleaners,
food
1929, mixers and other electrical devices
dwelling that make the housewife's work

all

in structures built be-

*»_

•:

Generation

*'

-

6

With

fnrmc

electric refrigerators,
washing marefrigerators, washing ma-

_

Averae-p

•

'

lation

completed,

were

"lation in 1950 included about 7.5.total population
Up, Farm
In
1940, they
■,
■
was
million
represented by naiurai in- nullion as nrhan
>y
whirh
natural inurban
Employment Down
which wnnlH numDerea aDOUt Zl /4 million ana
would
M17"'
*'
crease, the excess of 32.3 million have been counted
norlrol
represented
+V->o
Over the
16%
of
the
10-year period, the
popubirths over 14.3 million
lation.
deaths. the 1940 definition.
"^omnlovod nersons enNet immigration of
1.6 million was-rule the .1950 urban
The 15-to-19
population
<
in manufacturing increased
age group, from
L."^
offset by net
§a8oT/ 1-nT^
z~o1/n miiiion or oow
outmigration of two- would have been about 88.5 milfrom 10 i
from 10.6
x.j

8 million

1950

when
is in-

before

of

.,

and

Northeast, 79.5%i The West

ux

than

separate figures for the
population first were

average age

United

P^^^a^st aegree oi urDanizauon
m the
0f

its

1920, a generation ago,
the average age of the
population
was about 25
years. In 1950, the

thp highest degree of
urbanization

is next with

population,

-

farm

compiled

Now

the

of

64.0%

now

.

since

rural

64.0% Urban

'

states

'

older.

Nation's Population

All

the

increase

show,

increased by
three-quarters of a
One-fifth of all dwelling units .million,, 'As farm
electrification
counted in 1950 were in structures continues, the farm market
for

As for

and

tinue lu unci
unuc to offer uic
larger hiciau^
icigu
markets
in terms of total number of
new

The

*

■

farm

numbers have been
—.less
declining over
range and by a total 01

Atlantic^ and East North 4
means

Central,

rural

However, de- the long

48.5%.

Modifies
Natural Increases

of

are

1

.

-

spite the slowing of their growth
rates> the gain in total numbers
in divisions with
larger population

the

4

near-

thirds

will

tocto^ 2?Tminton. W*and

by
nearly
1900 farms.

between

^

in their relative
proportions of the

in the sections of the

was

central cities,
largely in the immediate suburbs of these
cities,
While the central cities had

•

What the

years.

figures

tabulations

Pied dwelling units increased

t te

_

x.-

,

metropolitan

•

war

census

taenia
iq^D

....

further increase

a

popula- consumers
greatest ^proportional:
f

The

'

Southwest, and

about

national population.

;bases,

About four-fifths of the
nation's
population increase was centered
,

lv
&

of the

1

**

'

Wpcf

changes. Movement of the

growth

over 4 million> the obvious effect

pji

inis increase ^represents

u"

nnnnlafion

^

annpipratinn
tVlo

S

tion.

H'

—

—„

normal

min*

cities

Il0n* .lbe number of automobiles
remained unchanged at a little

+hp

y

.

inflnflnpoc,::nf
dvnAmt"itrends,
.y

areas

iqso

J,n" na"„nipH
1

^decrease
"f™.E mimnn'in'the
of near 6/3 million in tne rural

t

-

given

than

the
tne

numbered

^ree

between

in

about 44%

owners

r

Tremendous

lation

bon. ave,r, 1940. During the same
period, the number of trucks on
farms increased by nearly half a
P?1**10"40 a to4a* °4 about 1 k nail-

23V3 million in 1950.

r»pfwppri

segment
of the
rural
an population increased by 15.0%, the

an£

in

Home

whose growth has exceeded the
crease of about 2% million in the
national average
between 1940 and 1950
to give them rural population.
However, it must-^n between mo and raau.
plus-proportions are South Atlan- be borne in mind that under
the
uia^ o/v„tu
The Kind of Houses We Live In
T\/o.,,n+o4ri
now
tic, West South Control Mountain, new 1950 definition for
iqm
Central,
dpfinition
urban
" ~~~~,
and Pacific. The greatest
1^.
gains in population, approximately 7.5 mil-'-*,
out of five dwellings in
the proportions were in the Pacific
lion were classed as urban who *be United States .
vand Mountain divisions. There beunder the 1940 rule would have detached houses. J
ing no manifest reasons for any been counted in the rural -----1- of all
*»■»&
popu- 01 an dwellings is in l-to-4 dwelluwenmgs is xu x-w-* iawwxAj.-ntn nimnrto in
immediate change'in thoco general lation. Taking this into account.
these donorai latinn
Taking this into
unit structures. Only
account,
unit structures. viuy one in
trends, it seems reasonable to as- the rurai pupuiauun under
tne
rural population
unuei
the — of all dwelling units is in an
25
mc
^^
sume that the rates of population 1940 Census definition would u„-7 aoartment
have' apartment building of 20 or more
growth will continue higher in the shown a
gain of about 5 million apartments.

mil¬

lion in 1900.
'

ir,

>

years, more than half of the house-

Continues

tral, West North Central, and East,
South Central. The divisions
farm

as

of

country's"^ace

4Snan.-^r

compared

tw,tn

greater need. Substitution of gasoline power for mule
power also
has diverted a large
acreage from

;

than

more

ulation declined by 4.5% between
1940 and
1950. While the rural

'

SX3

1,

million

s
areas,

five

work-

in the urbanized

us

dn

u

increase

esti¬

was

shifts

in

of

reason

and

mated at 153%

with

Renters

By

have been able to supply the

ers

more.

products.

mechanization, fewer

For the first time in the last 50

While the urban population increased by 64.0%, the rural pop-

among
that their relative pro-

so

or

cultural
farm

males

over

largest

of the country's whole
population have shown a 50-year nonfarm

population has

1951,

gain

generation

lives and

us

females

Home Owners Now Exceed

this

million.

•

portions

century, the
country's
doubled

of

varied

turn of the

on

12

Farm

,

-

a

of

excess

'•

,

1900, the
them have

•

-

an

for

'

farms have been able to keep up
with the larger demand for
agri-

the production of feedstuffs to the
production of food. In 1945, the
holders
in
the
United
States Census
of Agriculture reported
area popluation live in clusters of
owned their homes. The 1950 Cen- nearly
2% million tractors on
a million
up to New York's peak sus showed that
55% of the oc- farms, an increase of about a mil-

?■'? V?.'

iv;-

•

the

Briefly,

and

areas

_

^

"

one

half of those of

decade ending in
April, country has shown a numerical
1950, the population of the con- population gain since
me
jlo^u,

tinental

in four of

nation, while family income rises.

':''

'

areas.

urbanized

Finds average age of population
up live
generation and home owners now exceed renters

one

of

works and trades in the 12

Points out nation's
predominantly urban as farm, population

continues to decline.

v

40%

urbanized

increase and composition of the
people.
now

about

urban population1 and
55% of the population of the 157

Census Bureau head reveals the
changes that are taking place
in the regional shifts of
population and their effects on the

population is

to

v':'"

96.4 males for every 100 females,
Many of the larger cities of the
country however have reported

country's

of the Census, U. S. Dept. of Commerce

Thursday, October 18, 1951

...

Is

(<What

^bat

™ated.,.p7P
States?"

io

's tb?

Is+ao*

flab3sb

^+i

Li

UnI.ted
By reason of the
compilation of monthly and
annual estiKoca/4
mates, based on birth and
death
registration reports of the
**

States,

on

migration figures from the
Im¬
migration
and

Naturalization

Service,

and

on

movement
"""7' ",u l,"""'c,uc'u

of the
UI ule

armed forces, the Census
Bureau

Number 5056

Volume 174

able

is

Drexe! & Go. Launches

reply to this question. In fact, the
final
estimate
for
1950,
made
the

of

Census

1950

the

exceeded

when

indeed

population
ficult,

much

are

much

involve

indi¬

more

dif¬

com¬

more

with its services and facilities.

plicated calculations to arrive at
migration factors, and are subject
to a wider margin of error. How¬

The
of

by

subject to their limitations,

ever,

its

campaign also is the first
kind

any

to

ever

firms

the

of

borne the name—"Drexel &

present reasonably accurate infor¬
mation
on
trends and are kept

It

by

up

population

will

months

of current
which
the

means

surveys

trait

most

run

over

and

will

the

the

next

Co."

eight

ment

for' the

utilize,

of

Estimate

An

States,

the

Drexel
ener¬

of

need

part, daily newspapers.

a

wars,

the

bringing together those

have

soundly

conducts

Bureau

by examining

by

who

each
The original Drexel & Co. was
scientific founded in 1838 when Francis
sample of the population.

Census

month

United

partners have devoted their

gies to
finance
in
its
various
sponsored fields, and have played a full part
in the nation's economic develop¬
that have

be

these regional and State estimates

trued

Martin

.

annual

for

estimates

vidual States

150

over

The

involved.

is

million

difference

of

total

a

by

figure

minor

80,000—a

only

known,

were

Census

(1467)

Advertising Campaign

months before the results

several

Chronicle

investors — institutions,
Drexel, a successful por¬ served
Subsequently, in 1940, J. P.
painter, put aside his paints banks, insurance companies, es¬ Morgan~& Co. and Drexel & Co.
and palette and, at the age of 46, tates and individuals—and gov¬ became
entirely separate organi¬
began, in Philadelphia, another ernments, municipalities, rail- zations; the former incorporated
successful career as a private roads,
utilities and
industrial its business as a commercial bank¬
PHILADELPHIA, Pa.—Drexel banker.
Since then, partnerships corporations.
ing corporation under the laws of
& Co., 1500 Walnut Street, one of
New York
bearing
his name have been
State, while several
For many years prior to 1940,
the oldest and most distinguished leaders in
individuals
associated with the
fostering the growth of J. XT,
i!
v_-u.
j'Jt vV
JL
names in the world of finance, is
American enterprise.
and Drexel & Co. in Philadelphia Philadelphia office formed a part¬
launching
its
first
advertising
under the name of
Throughout this 113-year span constituted a single partnership nership
Drexel & Co. to engage in invest¬
campaign to acquaint the public in the dynamic development of which until the amendments to

rather accurate

make

to

The Commercial and Financial

.

.

.

funds

managed

capital

to

invest

enterprises

funds.

and

in

partnerships have

Banking

Federal

ment banking,

effec¬

Act,

with the principal

both a bank of office in Philadelphia and branch
deposit and an investment bank¬ office
in New York.
During the
ing organization, engaged in
ensuing 11 years, the activities of
underwriting and dealing in se¬
curities.
Compelled, under the the Drexel firm have expanded
1934,

was

provisions of the amendments, to
choose

one

Through fields

panics, good times and bad,

successive

the

tive in

or

1934 to confine

in

elected

the

operation,

of

in many

The

the other of those

firm
its

ac¬

tivities to commercial banking.

*

important respects.

advertisements,

series,
guage

describe
the

various

of the future

popula¬

tion size of the country have been
for

made

but the

graphers

by

years

many

demoT

Census Bureau

has only lately entered this

field.

Making population forecasts is
risky business,
forsee

not

influences

the

a

those who could

as

of

war

and

prosperity in the last decade
discovered. About a year ago, the
Census Bureau issued

timating

the

report

es¬

population

1960

of

a

the United States under three sets
of

assumptions. Assuming

high

a

mortality rate, a low birth rate,
and low net migration, the esti¬
for

mate

1960

set

was

161%

at

increase of-10 million
1950. Assuming-a medium

million,
from

an

position for these factors, the esti¬
1960 is 169 % million, an
increase
of
about
18%
million

mate for

and

basis

On

1950.

over

of

low

a

birth rate,
high net immigration, the es¬

mortality

high

rate,

timate for 1960 rises to I8OV4 mil¬

lion,

of 29 % million
gain be¬

increase

an

actual

The

1950.

over

tween 1940 and 1950, as a

basis for
WMm

a>V5<X»

19 million, with
the governing set of circumstances
being a low mortality rate, high
comparison, was

birth rate,

tion.

and low net immigra¬

Those

who

wish

may

background

the

study

estimates should

write for

to

these

for
a

copy

of the

publication entitled "Illus¬

trative

Projections of the Popula¬
United
States, 1950 to

of

tion

HOW tflactic

1960."

Marketers

A

spots
the

of

recitation

high

the

only

Census data bearing on
changing American picture
in

becomes

with statis¬

weighted

so

rately at the next tower. And

tics that the listener must become

what

confused.

But

confusion

there

would

the

if

be

hundreds of Long Distance
the same time.

telephone calls ride the beam at

of

welter

a

ZRetay WORKS

used for telephone transmission travel
in a straight line. So relay towers, like those shown, are
usually built on hilltops, averaging about 30 miles apart.
Each tower picks up microwaves from its neighbor,
and with complex electronic equipment amplifies and
focuses them like a searchlight, then beams them accu¬

The microwaves

Facts for Advertisers and

great mass of Census data which
is available did not exist. Happily,
however, the statistical means are
at hand for the national adver¬
tiser

careful

make

to

measure¬

he seeks to

the market

of

ments

reach.
Some of the 1950 Census tabula¬
tions have not yet been completed

will

desired

be available before next year.

New

not

skyway

spans

nation with words and pictures

But

and

much

within

data

month, the Census Bu¬
have
published final

a

will

reau

0tadw=0te/a^
BUILT FOR LONG DISTANCE CALLS AND TELEVISION

BELL SYSTEM

population figures for every city,
town, and village, and for every

its minor civil divi¬

and

county

Information

sions.
sic

characteristics
has

been

the

57

of

published

population

each

for

standard

largest

the States. Detailed data

metro¬

characteristics

metropolitan
be

There is

now

1950

to
a

mation

Printing

Tabulated

Census"

detail

and

next

which

Office

be

a

of the
presents in

Data

description of all
to

cities

spring.

available,

been

new

Telephone construction

last link in

a

coast-to-coast

on

the national horizon!

crews

have completed the

0l€iclw~&lelay system that

completed.




were

—

carried

across

the United States by another means

cable, both underground and overhead.

comes

And

The

system is

already in

for Long Distance

unique in all the world. Today, communications ride
on radio microwaves, flashed through the air from tower

telephone service and coast-to-coast television.

to tower.

new

is

It

was

an

historic event in 1915, when wires first

three thousand miles of

carried the human voice

across

mountains and

By 1942, telephone messages

prairie.

new

use

This

skyway helps make America's vast communications

network

even

stronger

hardly happen at
are

now

gRadic-tflelay to supplement wire and cable!

a

and

more

flexible. And it could

better time. The demands of defense

heavy and urgent.

infor¬

both

S8SH

in

published and unpublished form,
when all the Census compilations
have

something

in publication at the

Government

"Key

States,

urbanized

areas,

available

popu¬

for

areas,

economic

areas,

will

on

Bell

of

politan areas and for nearly all of
lation

There's

selected

on

the

BELL

TELEPHONE

SYSTEM

in

that

Drexel & Co. offers today.

in 1960

Forecasts

run

lan¬

Population

the

to

simple
services

in

es

ju68);

TheCommercial and Financial Chronicle

'What provision,

-

if

is there for resolving
the Treasury (or other

any,

policy
Recent

served

lief

troublous
throw

to

the

lack

into

of

have

events

sharper

litical cooperation on

Reserve

the system of the European Pay¬
ments Union provided some meas¬

re-r

spontaneous

international

of

ure

po¬

in combating temporary

the part of

the Western powers. Developments
in Iran and Egypt, which although

pressures,

the

show

ments

the

that

stitute

strains.

nevertheless

threat
the

the

to

free

divide

serious

a

general stability

world.

Once

primary aim of
to

one

and

again

aggressor

from

the

obvious

which

in

the

When it is

pound.

considered that

-

no

less

im¬

world.

Western

>

made

to

the inroads of Communism ther devaluation
following on the
Europe in particular have been heels of the previous drastic cut
successfully
checked.
The new in the value of the pound would
U. S. program of military aid will have
irreparable consequences. It
also operate in a similar direc¬ is
probable therefore that in the
tion.
Superficially, therefore,
it event of the return of a Conserva-i
would appear that cooperation is tive
Government,
Britain
will
fully effective in the economic take the initiative to arrange im¬

unquestionably

less

-

wealth

S.-British

discussions

Canadian

bilization of the currencies of the
Western world. ;

a

T;

tion fund

would

not

in

the objectives of the International
Monetary Fund have not been

also permit

realized.

cies.

Fixed

parities

that

of

ex¬

change have been the targets for
international speculation and have
been subjected to additional pres¬
with every change of senti-

sures

the

Western

Frank W.

sterling but would

world's

key

of Canada in

there

Tripartite

a

would

be

of

The

balance in the U. S.-British Com¬

year

monwealth

the

exchange

position.

United

another

the

have not been available to bolster
weaknesses

even

temporary nature. As matters

of

a

now

not

can

be

expected

to

adequately

and

is

undoubtedly

free

key factor ip the
economic system.

world's

During the week there

Up to

a

of the country
a

14.

somewhat

still

was

heavy tone in the

ex¬

ternal section of the bond
market

certain point with
offerings slow
uidation

process

the

on

internals

was

as

a

to

move.

other

hand

result

of

of

: difficult

less

a

Liq¬

the

strong

CANADIAN BONDS

if

Government

pronounced

in

the

Western

,

oil

and

paper

The base-

groups.

Provincial

metal

Municipal

to resist the general trend and
the

golds

Corporation

issues

also

showed

were

•

a

tendency

o

f

H

o

F.

W.

mortgage finance regulations
down

families

"The

payments
afford.

can

need

for

lion units

INDUSTRIAL
WESTERN OILS
MINING

A. E. Ames & Co.

SECURITIES

"As

we

Two Wall Street

homes

duced

ny

KlPPEN & COMPANYjNC.

Members Investment Dealers Ass* n of
Canada

Boston 0, Mass.




610 St. James St.,
W.,

Montreal, P. Q.

Telephone Lancaster

5101

Direct Private Wire to Toronto

mil¬

be pro¬

workers

to

are

\

.

can

be

»

-

ment

in gas appliances

heating

systems

major

factor

have

in. the

-"The world has
a

burst

curred

said.

"One

persons

living

of

since

in

in
a

never

home

and

been

a

enormous

years!'

seen

such

building as has oc¬
1946," Mr. Cortright
out

the
new

of

every

United

home

ment. We have put up

has

of

been

asso¬

with

years

division

Pierce,

has

ber

renters

who

and

1940,

of
&

Fenner

Beane,

He is also a mem¬

District

Columbia

of

And

56%

it

Stetsons

dent

of all

had

not

startling facts.

and

tre¬

for

these

we

of

man

now

in

1947.

Mr.

Chair¬

serves as

Committee

the Executive

probably would have had

time

in

setting
'

Lanston Co. Elects

this

Montgomery V.-P.
Marshall
been

of

the

Boston

H.

elected

Montgomery

Broad
is

In¬

vestment Club will be held Thurs¬

its

associated
main

with
in

office

firm

the

New

York

City.

Club at 5:30 p.m. ;■>

associated with D. W. Rich &

New

York

will

be

City, .whose

"Boom

enough

new

homes and apartments in the last

Mr. Montgomery, formerly

Co.,
widely known in banking cir¬

is

Speaker will be Arthur Jansen,
partner of J. R. Williston & Co.,

cles

as

market

subject

student

his

of

the

duties

money

with

the

firm will be concerned with

new

Ahead for Rails."

a

and

an

Exch. Firms

and

Changed to Nov. 14
'The date of the annual meeting
of the Association of! Stock Ex¬

Firms

to Nov.

been

President

changed

made

1951, date previously-announced.
The

money market

meeting will be held in New

away

at the age of 57.

made

Vice-

Assistant

Vice

-

President

Assistant Vice-President.

William F. Reilly

Sergei Aiasheieff
Aiasheieff, associated
with Hayden, Stone & Co., passed

been

and Assistant Treasurer; and Dan¬
iel J.
Callahan has
been made

York City.

Sergei

has

President;
Edward
T.
Cranley,
Assistant Vice-President, has been

14, 1951, from the Nov. 21,

has

short-term Treasury

securities
dealings.
Aubrey G. Lanston, President
of the firm, also announced that
James P. Duffy, Assistant Vice-

Meeting

change

enlargement of their activities

in

is

apart¬

of

Street, New York City, and

now

at

seven

States
or

has

Vice-President

a

Aubrey G. Lanston & Co. Inc., 15

BOSTON, Mass.—The next din¬

meeting

•V-

*

Hear Arthur Jansen
•

retired

of the Illinois Central Railroad Co.

Boston Inv. Club to

ner

Eu¬

Chairman of the Guar¬

he

Stetson, Sr.,

But

been

7

of

anty Trust Co. of New York, from
which

are

are-sons

from

W. Stetson, well known in
banking circles as former Presi¬

own

free and clear of mort¬

are

graduate of the Yale Law

a

gene

today

their

the

Merrill

background in munici¬

a

the

The

rented

homes,

own

rent.

in

and

properly

Cortright told the convention
that the rapid development of gas
facilities and technical improve¬

1-1045

Fifty Congress Street

defense

families

housed."

Established 1922
4-2400

if

other

a

is

year," Cortright said.
it, 850,000 units is the

see

building volume in recent

New York 5, N. Y.

and

from

day, Oct. 25, at the Boston Yacht

"

new

minimum number that

incorporated

Inquiries invited

a

per¬

average

still at the rate of at least

CANADIAN

Lynch,

Cortright

e

m

affected.

CANADIAN STOCKS

their

families

harder 7
record."

Builders, asserted that the build¬
ing industry is capable of keeping
up its-production pace if it can
get the necessary materials, and
mit

only moderately

of

people

owned

a

Association

graduated

Prudden

pal securities.

ities,

National

having

ciated for several

1

Whereas

&

University in 1942.

Mr.

available

ecutive

initial

stocks

service,
Yale

,

Cortright, Ex¬
of

Seligman

time, he had four years of Naval

mendous development of gas facil¬

downwards

selling

were

Louis,

Vice-

He
partner in

a

W.

School, and was separated
the Army in 1945.

proportion
owners.

"These

W.

Rein¬

Co., with which he had been asso¬
ciated since 1946.
Prior to that

gages.

Convention in

as

of J. &

firm

the

of

New York.

.recently resigned

million people.

homes than

turned
most

committee

Corp. of

Bar,

homes

lowing

with

He

of St. Luke's Hospital in

only that, but we have
completely
reversed
the
tradi¬

more

Ass ociation

President

University in 1934.

finance

"Not

than

king

the

buoyancy

—about 21

there

Oct.

Frank

He

banking and invest¬
since his graduation

His brother, Charles P. Stetson,
a
director and member of the

is

to completely rehouse
largest cities in America

tional

before the

St.

formerly
has been

member of the board of

a

managers

,

are

home

trend of the Canadian dollar. Fol¬

worth

is also

years

,

S p e a

fields

ment

from Yale

Com¬

Trust

was

vice-president.

a

active in the

underwriting

five

told

on

he

surance

is not restricted.

the eight

American

ciation

a

Ginger

Dry

and

Bank

which

of

pany,

assumed

now

if materials

pace

next

American Gas

particular currency is the

concerned.

Chemical

building industry is capable

says

need

Gas Associa-

a

defense of the standing

sole responsibility

will

homes

new

if the demand is to be
met,
of the nation's
home

the financial
economic
responsibilities of
the vast sterling trade area which

concerning the immediate
outlook. The resources of the Fund support

any

are

chief

builders

of

matters

mortgage financing

States

million

Britain

Canada

is

Jr.,

Stetson,

W.
of

.

province of government. ,S

its production

up

and

currency

&

>.•!'•:1

Ale, Inc., and of Yale & Towne
Manufacturing Co., and is a memr
ber of the advisory board of the

Cortright, Executive Vice-President of the National

keeping

curren¬

healthier

a

will

Dominick

through

Eugene

most about all this is the obvious

Association of Home Builders,

Moreover with the inclusion

pool

cleared

purchase and sale
Transactions

securities.

be

Need Exists for Another Million New Homes!

Without U. S.-Canadian assistance

stand the

us

to be within the

ment

exchange

of

New York.

implication that all such

inter-convertibility of

admitted

!

-v

y

complete

*

only restore

•

E. w. Stetson, Jr.

with

facilities for the

4

.

What disturbs

agreement

confidence

be

vestment
business

Employment Act of 1946."—Repre¬
Patman, Chairman of the above Subcom-

sentative

substantial stabiliza¬

a

in-

director

mittee.

Kingdom-

currency

backed by

now

disagreement, however,
the Government, with re¬

Dominick.

currency

A formal U. S.-United

firm

general

much

the

national collaboration for the sta¬

must

The

will conduct

favorable. matters.

That is the lack of effective inter¬

It

•'

•set forth in the

Common¬

on

42d

East

Street.

policy disputes of the past year have also
brought into sharp focus the question of whether
our
machinery for the determination of monetary
policy—set up for the most part many years ago—
is appropriate to
cope with the problems of the
present day and to carry into effect the policy of
the Congress with
respect to economic stability as

aid

U.

60

Economic

"The

in

mediate

Building,

be followed remains to be charted.

promote

field. However, there is one aspect
of the economic situation that is

been

Lincoln

the

'

management; and notwithstanding the 'accord' an¬
nounced by the
Treasury and the Federal Reserve
System in March this year, much of the course to

Every

efforts tion campaign speeches, Winston
the Churchill has emphasized the im¬
economic stability of free nations portance of strengthening the in¬
of the world, and as a result of ternational standing of sterling.
the operation of Marshall Plan He ciearly recognizes that a fur¬
been

has

York,

with offices in

spect to the proper steps to be taken in the present
emergency in the fields of credit policy and debt

notable) postwar

Some

the

on

both inside and outside

effort,
portant. In fact, it is well known therefore, should be made to re¬
tthat the protagonists
of world store confidence in the pound and
Communism hold the firm belief this can only be achieved effec¬
that the free world will not neces¬ tively with the support of this
sarily fall by force of arms but country and Canada.
jrather by economic disruption.
In the course of various elec¬
have

Committee

"There

the

foreign trade of the free world
fields in which a higher degree is financed on a sterling basis, any
of international collaboration
is serious impairment of the stand¬
vitally necessary. In addition to ing of the pound must be regarded
the military and political fronts as an economic blow to the entire
the economic front is

Joint

town

-

New

Report in
preparation for another extended inquiry into fiscal
and monetary matters.
7
•

than half of

more

mid

System, on the other, pursue
conflicting policies indefinitely?"—Subcommittee of
the

The

company will
be located in

;•

the Federal Reserve

-

confi¬

undermined

have

situa¬ dence

tions in Korea, Indo-China, Malaya,
Persia and Egypt there are other

greater

of cooperation in matters

R.

Prudden.

they be resolved or could the agencies directly
responsible to the President, on the one hand, and

exchange is now quite apparent
following - recent
developments

,

and

Stetson

.*

that

■

of

been

only too clearly demonstrated,
Apart

The vital necessity of a
measure

powers

has

conquer

of
the

'./■ :V;,' 77:!v. !-^:

'

"If you do not believe that the President should
(or does) have such power, how, in your opinion,
should policy conflicts be resolved?:* Is it
necessary

of

resources

member of the Western bloc, con*

of

already does under

.

the New York Stock

of

Exchange, has been announced by
the partners, Eugene W. Stetson,
Jr., Charles P.

power

;

organization are clearly in¬
adequate when subjected to major

responsibility

believe that this

you

Co.,

The formation of Stetson &
members

.Horton

exchange
develop¬

recent

Do

the Constitution)?

.

this

direct

but

System?

should lie with the President (or

cooperation

Is Formed in New York

.

conflicts between
agencies of the executive branch) and the Federal

'

By WILLIAM J. McKAY =
-

Stetson & Company

It's the Government Now—Always

Canadian Securities

Thursday, October 18, 1951

...

;

William
Laird

&

F.

Reilly,

Co.,

New

partner in
York City,

passed away at the age of 49.

\

'

Volume 174

Number 5056

.

.

Commercial and Financial Chronicle
The

.

(1469)

21

;

Investment Bankers Association of America

New York

Public

By OWEN ELY

The

details

of

have

program

the

convention

not

yet been fully
completed but will, however, fol¬
the pattern of recent years.

low

There will be

convention session

a

each

morning from Monday
through Friday. Prominent speak¬

Wall

Chicago Special Train—Pullman

addition

to

the

convention

sions, there will
meetings of the
and

ernors;

be

or

three

of

Gov¬

two

Board

most

of

ses¬

the

national

committees of the Association will

hold meetings during the conven¬
tion and will present their annual
reports at the convention sessions.
An

open meeting of the Munici¬
pal Securities Committee will be

held

Sunday

on

afternoon.

With

one

other

two

or

com¬

mittee meetings, it is not planned
to schedule any business sessions
in the afternoons.

'Hollywood

furnishes

an

nish electric service to

the

going trip
be made through Robert
Podesta, Cruttenden & Co., 209
La Salle Street, Chicago 4, 111;

A.

S.

Cleveland

Special

Car

reservations should

man

National

123

W.

land

Bank

of

Detroit

Special

Cleve¬

Car

—

cost of about 8c per

made

been

Pittsburgh

Special

Car

reservations should

through

M.

served

be made

the

M.

Grubbs, Jenks,
Kirkland & Grubbs, Union Trust
Bldg., Pittsburgh 19, Penna.

most

popular

meeting

places.

attended

St. Louis

were

most suc¬
cessful in the Association's
history.
It is

2, Mo.

definitely

are

By-Laws

eligible under
attend

may

convention.

It

will

Depts. for Talmage

of

"approximately
Debt

be

take

other

guests

than

mediate

to

the

will

pre¬

Industry"

annual

awards

banquet, which will be attended
by more than 1,300 business and
financial executives from all

over

the United States and Canada.

[ft

■

;

-

«
i

Enjoy the

finest-tasting whisky
in the world

,

*

„

resources

petro¬

as

..

.

as

follows:

.

$155,000,000
40,000,000

—-

'•Common Stock Equity

(8,485,000 shs.)

53%
14

98.000.000

33

the convention,

members

family

companies 97%.

Preferred stock

impossible to comply with requests
to

there has

years,

.

the

therefore

surveys,
"Oscar
of

at

The company's capitalization, including the estimated
proceeds
500,000 shares of common stock being currently offered, is

f

annual

an

report

the

sent

trophies

processing of oil and natural gas products, chemicals, carbon
black, zinc, glass, cottonseed products, building stone, ceramic
material, cement, clay tile and brick.
■

Morris, Love Head

established policy of the
Association that only those who
an

Smith, Executive Viceand
originator of the

"by the system companies with electricity increased 32%,
electric customers 49%, and total kilowatt hours

It has also important reserves of such natural

earlier

the

among

annual

leum, natural gas, gypsum, sulphur, coal, iron ore, salt and timber,
which have been a contributing factor in the expansion of manu¬
facturing in recent years. Manufacturing industries include the

conventions there will recall that

they

Weston

President

./.The territory served by the system .is basically agricultural,
its .rriain products being cotton, wheat, corn, rice,, citrus fruits,
winter vegetables and
livestock, including cattle, sheep and goats.

reservations

Those who have

Past.

,

St. Louis Special Cars—Pullman

un¬

Fry,

number of

sold by system,

should
be
made
satisfactory site for an
IBA convention, and has
proved through Harry Theis, Albert Theis
& Sons, Inc., 314 N. Fourth
to
be
one
of
the
Street,
Association's

usually

in the postwar

substantial

tivity has been further stimulated by the defense program of the
Federal Government. During the five
years and six months ended
June 30,
1951, the estimated population of the territory now

Pull¬

—

a

growth in population and economic activity
throughout the service area. During the past year, industrial ac¬

through Ralph Fordon, Fordon,
Aldinger & Co., Penobscot Bldg.,
Detroit 26, Mich.
man

Guy

mcf.

During World War II and

Pullman

should -be

are Tulsa, Oklahoma; Shreveport, Louisi¬
and in Texas, Corpus Christi, San Angelo, Laredo,, Abilene,

etc. Revenues are 97% electric and 3% ice. The
properties of these subsidiaries are effectively inter¬
connected, forming a well-integrated system. Gas is used as fuel,
being available in ample amounts at a recent average (delivered)

1, Ohio.

reservations

Rela-'

electric

Cleveland,

Prospect Avenue,

Gris-

Public

Texarkana,

be made

through Charles M. Colyer, Cen¬
tral

773 communities. Among

some

News/ and

of

the larger cities served
ana;

Pull¬

—

population of 2,260,000 in Texas, Okla¬
Louisiana. The area thus served covers
a

homa, Arkansas and
142,000 square miles and contains

should

the exception of this
meeting, and

possibly

for

publisher

«.

Corporation, which emerged from the
an integrated holding company a few

System, as
years
ago, controls Central Power & Light .Company, Public
Service Company of Oklahoma, Southwestern Gas & Electric
Company, and West Texas Utilities Company. These utilities fur¬

Street, New York 5, N. Y.,

reservations

will address these sessions. In

ers

Central & South West Corporation

is Chairman.

Societies;

President of the National
Society
of Art Directors.

Central & South West
West

of

Denny

wold,

man

Middle

Analysts

tions

Beach

•

y.1

Federation

Elmer Walzer, financial editor of
the United Press;

Utility Securities

Special Train—Pull¬

reservations for
the
going
Hotel, Holly¬ trip should be made through the
wood, Florida, beginning on Sun¬ New York Transportation Com¬
day, Nov. 25, and ending on Fri¬ mittee, of which W. Scott
Cluett,
day, Nov. 30.
Harriman Ripley & Co., Inc., 63

Hollywood

National

Financial

Announces Details of Convention Registration
The 1951 Annual Convention of
the Association will be held at the

the

of

of

of

the

im¬

delegate

a

$293,000,000

100%

'■"Including intangibles.

or

alternate.
*

residential revenues per KWH in the 12 months
30th, were 3.89c and average annual usage 1,292 KWH.
While these figures would? compare somewhat
unfavorably with
,

A
registration
>fee
will
be
charged for each delegate and al¬

ternate

the

his

and

member

of

his

wife

convention.

This

other

or

family

the national averages, the widespread character of system
opera¬
tions, together with the competition of cheap natural gas for the
use of appliances, must be taken into account.

attending

fee

will

Average

ended June

be

-

$40 for

and $20 for

men

women.

During the post-war period ending June 30, 1951, there
Hotel Arrangements

\

William

S.

through the Chicago office of the
Association.

whereby

wood Beach

Manor,

Town House will also be available
if

needed

to

New

the

an

from

the

experience

of

William
with

recent

the

of
department

S.

Hollywood
place their ad¬
representatives
at
the

other

and

hotels.

It

ghould

rioted

be

that this limitation does not

nec¬

Corp.

one

Hotel, as that may not be
if the attendance is a
large one.
'
The

hotel

will

be

able

to

ac¬

commodate those who wish to

few days ahead of the

a

vention

or

stay

afterwards.
sary

provided

It will

such

for

municate

over

few

a

not

be

persons <

to

ar¬

con¬

of

the

The

of

Bear,

and

the

corporate

ment of

com¬

tion

have

been

New York and
wood

and

special
and

St.

the

conven¬

arranged

from

Chicago to Holly¬

return.

cars

Cleveland,

for

are

In

addition,

planned

Detroit,

from

Pittsburgh,

Louis.




from

subsidiaries'

Dividends

Earnings

Months

12

June

ended

30,

$1.44

1951

Calendar Year

cash

Price Range

I51/4-I3V4

$ .90

Stearns

&

16 V2-I2

I41/2-IOV2

1.38

.75

12

1.38

.35

12-9

with

depart¬

been

price-earnings

a

ratio

the dilution due to the issue of

/

(Special

SAN

to The

Financial

FRANCISCO,

the

basis

of

the

diluted

1951

gain in earnings in 1952 it
crease

Robert

earnings, and with the anticipated
reasonable to anticipate an in¬

seems

W.

Rudolph and
Montgomery Street.

Stone &
(Special

are

with

Co.,

127

Youngberg Add

international

has

been

staff of Stone &

Building,
Francisco

to

the

Youngberg, Russ

members

KANSAS

of

the

Stock Exchange.

tional Bank
been

Report Award

CITY, Mo.—City Na¬
& Trust Co. has just

awarded

the

"Oscar

of

In¬

won

for

contest in

its

competition.
a

runner-up

statement

1949, and last

City
second
in

this

year was

in the last classification of 30 from

which the final award is made.
The

annual

report is the work

of Edward F.

Lyle, Vice-President
dustry" by "Financial World" for and Comptroller, and Tom Collins,
publishing the best annual report Publicity Director of the bank.
of any national bank, according to The art work and
layout was the
the findings of an
independent work of Felix Kubicki, staff artist
board of judges.
with Burd and Fletcher Printing
R. C. Kemper, President of the

Cal.—David

added

National

f

World's Choicest Blend

'

to The Financial Chronicle)

SAN FRANCISCO,
Frankel

Annual

Cal.—Gene

Thomas

/

award

Rudolph

C.

new

in the rate to $1.00 in 1952.

Chronicle)

Edwards, Wilbert E. Rojewski

and

THE INTERNATIONAL WHISKY

stock, they are estimated at
$1.30-1.35. The current dividend payout is below average even on

Financial Chronicle)

Three With Paul

8V2

-

selling recently around 15 to yield 6%,
of about 10.5. Earnings during the
summer benefited
by abnormal sales of electricity for air-con¬
ditioning requirements due to the hot weather in the areas served,
and for the calendar year are estimated at around $1.50 on the
old basis; adjusted for the pending increase in tax rates and for

Co.,
of

manager

Mitchum, Tully

has

.90

.821/2

1948

The stock

1.44
1.40

1947

previously

financing

to The

1950

City National Wins

be necessary for them
change rooms at,the opening

trains

Construction funds will be

million

First

The

close of the convention.

Convention Transportation

$15

geles Stock Exchange.

Paul

Special

follows:

as

a

FRANCISCO, Cal.—Joseph
F. Edelstein is with Mitchum,
Tully &
Co., 405
Montgomery
Street, members of the Los An¬

R.

to

a

Since the Company emerged from the Middle West System on
recapitalized basis in 1946, the common stock record has been
approximately as follows:

of

Talmage & Co.

(Special

directly with the hotel,
they indicate their ar¬

or

was

system

amortization and retained earnings.

formerly

SAN

rival and departure plans on their
reservation forms.
It may, how¬
ever,

The

stock

a

days

neces¬

about

buying de¬
First Boston

appointed

With

Beach

possible

and

department

Love,

with

been

the Hollywood

at

room

A.

has

essarily imfcly that each member
organization will be assured of at
least

million.

hand, $6 million from the current proceeds of sale of common
by the parent company, $25 million from sale of other
securities by subsidiaries, and about $17 million from
depreciation,

mu¬

a

department.

partment

at the

rooms

Hotel

ditional

$132

of

1949

bond

than two
Beach

provided

Corp., has been appointed
manager of Talmage & Co.'s new

associated

necessary

Morris,

department

to limit

it will be

account

Boston

member organizations to no more

rive

opening

bond

Edward

years,

property

on

Hirsch & Co. and the government

an

attendance. If there is
overflow, as appears likely

in

year-1952 will aggregate $63'million.

financing department.

bond

accommodate

overflow

increase

construction program for the last half of 1951 and for the calendar

the .Holly¬

Apartments, Seacrest
Surf Hotel, and the

the

net

Co., 115 Broadway,
City, members of the
York
Stock
Exchange,

to the Hollywood
nicipal bond
Hotel, arrangements have corporate

made

Love

York

addition

been

A.

Talmage &
New

announce

Beach

Edward

rooms

for the convention must be made

In

Morris

,

All reservations for hotel

,

San

will

bank,
award

Hotel

at

receive
the

Statler

the

award
in

New

coveted

banquet,

York

City,

Oct. 29.
A
were

total of

5,000 annual reports
considered this year in the

Co., publishers of the report.
The

jury who

made the final
by Dr. Car¬
Blough, research director of

selections
man

the

is headed

American

Institute

countants, and he
Dr.

Pierre

R.

was

Bretey,

of

Ac¬

assisted by

President

BLENDED WHISKY 86.8

PR.

THE

STRAIGHT

WHISKIES IN THIS PRODUCT ARE 8 YEARS OR
MORE OLD.35% STRAIGHT WHISKY,65% GR;

NEUTRAL SPIRITS.

SCHENLEYDIST.',INC.,N.Y^

•

22

The Commercial and Financial

(1470)

j

A

Joins A. C. Allyn
STURGIS,

Mich.

—

...

Thursday, October 18,1951

ceeded

$51,700,000, an increase of

which will

keep corporate earn¬
ings and dividends at satisfactory
level, is expected by Wellington

nearly $10,000,000 during the year,
for a new high record in assets.
Net asset value per share also
reached a new high of $19 on
Sept. 30, compared with $17.56 on

Fund.

June 30 and $16.91 a year ago.

income, supported by an

accelerated

Mutual Funds

L.

Frank

business and

HIGH LEVEL of

national

(Special to The Financial Chkonicls)

Tennent is with A. C. Allyn and

Chronicle

Company, Incorporated.
By ROBERT R. RICH

rearmament

program

The proportion of the fund in¬
Wellington management, in
its quarterly report, told share¬ vested in common stocks increased
holders a recession in some lines slightly during the quarter, from
of business continues, but added: 58% of the total on June 30 to
The

THE THREE BILLION

DOLLAR mark in total net assets for the

during the third quarter of 1951,

mutual funds industry was passed

it

announced Tuesday.

was

assets

Net

V:

mutual

103

for

"There

$3,045,707,000

totaled

funds

on

Sept. 30, 1951, recording an increase of $691,367,000 for the last
12 months, and a growth of $515,144,000 for the first nine months*
of this year.

securities

research

a

corporation

120 BROADWAY, NEW YORK S, N. Y.

amounted

1951

to

$480,571,000, com¬
pared with $383,439,000 during the same period in 1950, and net
sales, after redemption, were $221,171,000, compared with $185,477,000 in 1950, the National Association of Investment Companies

Prospectus upon request from
your investment dealer, or from

National

in

shares

new

stated.

matic if

recalls that, in

one

chases of the bond and

the first quarter of 1951, the repur¬
group totaled over 9% of assets.

specialty

Mutual Funds'

Repurchases

Percent of Assets

as

(Total

1, 1950 to

Repurchases

September
Percent

as

30, 1951

Total

of

Assets)

No. of

AH

2nd

1st

4th

3rd

Quarter

Quarter

Quarter

Quarter

Quarter

in Group

prospectus from

3rd

Funds

1951

1951

1951

1950

1950

1950

1950

2.75%

2.62%

3.92%

3.27%

2.70%

3.71%

2.64%

Funds

103

2nd

1st

Quarter Quarter

(Fund

Group

Repurchases

Percent

as

of

Assets)

Group

or

Common

2, PA

Stock__

46

2.84%

2.03%

2.77%

2.32%

2.16%

3.54%

Balanced

Fund___

31

1.76%

1.59%

1.93%

1.32%

1.44"%

2.26%

1.76%

Specialty

26

2.99%

5.56%

9.20%

7.09%

5.30%

5.76%

4.33%

Bond

&

2.31%

Sales during the third quarter, for all
funds, were 1.99 times
greater than repurchases, compared with a figure of 1.90 in the
quarter, indicating an accelerated rate of growth for the
industry.

second

For the first time in

showed

aggregate,
growth of

the

the bond and specialty funds, in
exceeding repurchases.
The rates of

a

sales

year,

stock

common

fund

and

balanced

fund

groups

declined.

Ratios of Mutual Funds' Sales to Repurchases*
(by quarters)
January

A Mutual Investment Fund

Fund

All

vestments in

stocks.

common

Sept. 30 were:

Freeport

Be¬

backlog
cash

senior securities and

of

with

reserves

the

objective of providing

twofold

COMONWEALTH

Company reports that on Sept. 30,
investment program and reason¬
1951, net assets amounted to $39,able stability.
This backlog was 049,957, with 5,552,243 shares out¬
listed at 16% of resources in gov¬
standing and over 22,000 share¬
ernment honds and cash and 21%

in

investment

bonds

and

pre-

holders.

time

owns

&

1, 1950 to September 30, 1951

of

year.
"Wellington's con¬ THE ASSETS of National Securi¬
growth in assets and new ties Series reached a pew high of
shareholders," Mr. Morgan said, more than $88,000,000 on Oct. 3,

"reflects

the

confidence

the

Fund

their

and

made

were

dustries.

quarter:

in

the

Increases

were

also

automobile,

auto

4th

3rd

Quarter

Group

1951

1951

J951

1950

1950

1950

103

1.99

1.90

1.70

1.64

1.88

1.57

2.51

46

1.91

2.06

2.10

2.02

2.12

1.34

2.58

31

3.52

3.90

3.82

3.69

4.32

3.17

4.54

The

investments

26

1.16

.93

.83

.71

.89

1.10

1.48

and

oil

Specialty
are

divided

sales

by

repurchases.

Figures

less

1

than

average

1st

Quarter Quarter

than

1951,

monson,

"Reductions
Total assets under
"National"
building, food,
management also have reached a
beverage
and
tobacco
stock new
high exceeding $92,000,000.
groups, whose near term earnings
The largest single fund in the Na¬
outlook was considered less fa¬
tional group is National Stock Se¬
vorable.
Increases were made in
ries, with assets of over $31,000,common stocks considered to have
000.
National Income Series is
a
good long-term outlook in the second in
size, with assets of over
drug, electrical equipment, insur¬
$23,000,000.
Since both of these
ance, merchandise and paper in¬ funds are said to feature a better
September

Quarter

2nd

in¬

of

according to Henry J. SiJr., President of National
preference
for
a
conservative Securities & Research Corp.
The
balanced program."
current market value of portfolio
The report gave this summary issues is
$8,700,000 in excess of
of portfolio
changes during the cost.
•/:
in

vestors

1st

repurchases for the

made

in

the

1950

and steel

accessory

indicate

net

quarter.

at

prices

common

considered
in

stocks

stocks

rent

OPEN-END

INVESTMENT

COMPANY

chemical

slightly re¬

Sept.

30

ex¬

THE JOHNSTON Mutual Fund re¬

ports net assets of $1,227,529.46 as
of Sept. 30, 1951, a 60% increase

103

Open-End Funds

June 30, '51

Dec. 31, '50

Sept. 30, '50

$1,543,560

$1,363,899

$1,221,697

$1,120,465

900,210

806,972

727,679

Stock

Balanced

Funds

26

Bond

103

&

Funds—

Specialty Funds

601,937

554,440

581,187

$2,725,311

$2,530,563

Sales
3rd Quarter

31

26

BONDS

103

Stock

Funds__

2nd Quarter

1st 9 Mos.

1st 9 Mos.

1951
Common

upon request

$2,354,340

Certificates of Participation in
46

Prospectus

1951

1951

1950

$216,288

Lord, Abbett & Co.

$159,564

132,395

$83,754

$56,892

Balanced Funds

55,618

49,978

163,233

Bond &

27,928

28,705

101,050

$135,575

$480,571

—

Chicago

—

Atlanta

Los Angeles

—

91,480

$167,300

New York

$383,439

1st 9 Mos.

Specialty Funds

Total

(Series B1-B2-B3-B4)

Repurchases
3rd Quarter

46

Common

Stock

2nd Quarter

1st. 9 Mos.

1951

PREFERRED STOCKS

1951

1951

1950

$27,645

$107,532

$83,155

'

'

.

43,701

33,780

24,050

30,813

'L

108,167

81,027

_____

$83,668

$71,263

I

$259,400

$197,962

2nd Quarter

1st 9 Mos.

1st 9 Mos.

103

(Series S1-S2-S3-S4)
%

12,805

Specialty Funds

3rd Quarter

COMMON STOCKS

15,821

26

(Series K.1-K2)

$43,797

31 Balanced Funds

'■

Funds__

•

.

Bond

&

Total

•

Net Sales
The Keystone Company
SO Congress

T951

Street, Boston 9, Mass.

46 Common
31

Please send

your
ten

me

prospectuses

describing

103

Funds__

Balanced Funds

$39,957

Total

York

Volume

Address

dollars;

J

State

37,173

119,532

—2,108

—7,117

$64,312

$221,171

$185,477

1st 9 Mos.

1st 9 Mos.

1951

1950

2nd Quarter.




Stock

D14

1951

98,025

100,149

•

98,615

\

A

10,453

Exchange

Diversified Investment Company

Prospectus

may

be obtained from

investment dealer

or

your

local

The Parker Corporation,

200 Berkeley St., Boston 16, Mass.

(No. bf shares—^not

000's

omitted)

Figures compiled,
.......

1950

$76,409

3,878

1951

Name
New

1951

$108,756

39,797

Specialty Funds

3rd Quarter

Cr/y
J

1951

$29,247

$83,632

26 Bond &

Organization and the shares of your

Funds.

Stock

._

by National Association

345,214

of Investment

Companies.

373,505

LP

FOUNDED

on

Sept. 30, 1951

558,557

$3,045,707

Total

Net asset value on

675,318

Sept. 30, *51
Common

of $767,048.83

1950.

Fund, Inc.

Total Net Assets

31

assets

Affiliated

:

(000's omitted)

4G

net

STATISTICS

For the period ending September 30, 1951

r

it

income.

Sept. 30,

on

return,

place important emphasis on cur¬

over

Fund

current

that investors continue to

attractive.

the

were

appears

duced after their substantial rise."

Putnam

York

investing their capital in

present
324 different securities

last

Quarter

Established 1894

FUNDS

the

net assets of the Fund at the close

TOTAL NET RESOURCES of The

calvin bullock

Custodian Fund

at

Morgan, President,
representing more than 25 indus¬
pointed out that the Fund's net
tries. These securities were diver¬
assets of $187,040,605 on Sept. 30,
sified as follows: common stocks,
last, were an all-time high. This
64.9%; preferred stocks, 23.2%;
figure represented a $33 million
corporate bonds, 3.3%; and cash
increase over the $154,486,613 in
and governments, 8.6%.

2nd

Ealanced

eystone

.V

,■.

Commonwealth

L.

Quarter

Stock

^Figures

New

INVESTMENT

balanced

a

'

INVESTMENT

on

Lead, Seaboard Air Line RR.,
foreign uncertainties the Union Carbide & Carbon, Allied
fund is maintaining a substantial
Chemical.

3rd

Funds___

Bond

One Wall Street

•

largest

of

Quarter

in

Group:

Common

or

.

common stock
investments of The Putnam Fund
10

Sulphur,
Pure
Oil,
were
informed
Standard Oil of New Jersey, Cities
Wellington Fund has con¬
Service, International Cellucotton,
tinued to keep about 60% of in¬
International
Paper,
National

Funds

investment dealer

Sept. 30.

on

The

that

No. of

your

63%

tinued

investment doctor

Prospectus from

outlook, the 70,-

shareholders

000

Walter

(by quarters)
January

PHILADELPHIA

the

ferreds.

tELLINGWN

four

indications

leveling off, with cer¬
tain lines already showing im¬
provement."

cause

Total repurchases, as a percent of total assets, increased mod¬
erately from 2.62% in the second quarter to 2.75% in the third
quarter. Repurchases, as a percent of assets, increased for the
common stock fund group from 2.03% to
2.84%, and for the bal¬
anced fund group from 1.59% to 1.76%. For the bond and specialty
fund group, however, repurchases, as a percent of total assets, de¬
clined drastically from 5.56% to 3.99%, a situation even more dra¬

that

is

In view of this

of

Sales

are

decline

1925

52

Volume 174

Number 5056

$31.60

was

.

The Commercial and Financial Chronicle

(1471)

shareholders for purchase of ad¬
ditional shares. The proposed re¬

compared

share,

per

.

.

to $27.92 a year ago.
At the end of the

quarter, the
portfolio of the Fund shows 66.9%
in common stocks, 19.6% in cash
and governments, and 13.5%
in
preferred stocks.

News About Banks

of

assets

$15,545,854

Bankers

and

OFFICERS, ETC.

REVISED

to shareholders of record

CAPITALIZATIONS

of

21, 1951, with 78-3,046 shares out¬

standing and a net asset value
share of $19.78.

Lawrence

tan

REPORTS

C.

Company,

been

Marshall,

Commerce

&

tion

General Corporation at Sept.
30, 1951, with securities valued at
market quotations and before de¬
duction
of
principal amount of

of

assets

1951.

stock

common

September

on

with

$13.71
1951. •
Y

$15.54

was

President
native

coverage

excluding

1951,

30,

with

un¬

6.79

ended

clusive

nine

30,

of profits

curities)

Halsey

months

the

net

1951

of

assets

in

June,

President

30,

same

of

income

for

'■

that

stated

Invest¬

September

for

report

net

assets

$743,471, the increase for the
months

Net

was

assets,

$6,200,000

on

$8,892,093.

President,

Preferred Stock,
per

share of

were

com¬

1,780,738 shares outstand¬

ing compared with $22.89

30,

and

$22.35

on

on

June

December 31,

1950.

Net profit from the sale of se¬
curities for

the

$2,463,501,

and

dividends

and

pieriod, after

nine months

net income
for

interest

expenses

municipal

was

from
the

and state

taxes,

was

a

the elec¬

announces

Vice-

as

and Treas¬
II. Blum as

and

Comptroller.

of

New
■

York

Bank

remodeling
Fifth

and

Fifth

at

of

the

Avenue

Avenue

44th

and

Street, New York, John C. Traphagen, Chairman of the bank, and
Albert

C.

Simmonds, Jr., Presi¬
dent, joined with John I. Downey,

Vice-Chairman
Fifth

Avenue

head

and

office, to

customers and friends.

mansard-roof

the

of

welcome
The four-

brownstone

landmark, built in 1866, was pur¬
chased by the Fifth Avenue Bank
of

New

B.

The

in

York

Cornell,

John

from

adjacent

director.

brownstone

subsequently

were

chased

1889

original

an

two

houses

pur¬

the combined ground
15,000 square feet have
comprised the Fifth Avenue office
of

and

of

the

Bank

of

York

New

and

Fifth Avenue Bank since 1948 fol¬

lowing the

the two in¬

merger of

stitutions. The chief

change in the
interior arrangement is the elimi¬
nation of the brass and wainscotted

peninsula

"The

of

tellers'

formerly took
space

new

the

on

banking department
floor into

On

the

15

there

cages

the pre¬

up

main

floor.

layout consolidates the
a

explained

Fund

comple¬

Fifth Avenue office of the Bank of

ferred

Knickerbocker

following

15,

the

President

main
was

the main

on

efficient

more

bank

Simmonds.

floor

Oct.

on

exhibit

an

unit,"

of

early

documents connected with the his¬

tory of the Bank of New York—
New York's first bank which

founded
in

by

Alexander

was

Hamilton

1784.'Among the exhibits

the

celled check for six pounds fifteen
shillings made out by Aaron Burr.
Also on display is a $10,000 war¬

MAIL THE COUPON TODAY!-

KNICKERBOCKER

SHARES,

INC.

rant

loan

its

totaling
of New

New

Farr,

Officer.

had

been

As¬

as

Mr.

Carr

associated

with General Electric Co., serving
various
capacities
with
the

in

its affiliate, Interna¬

company and

tional

General

the past
a

three

Electric

Co.

For

he has been

years

regional auditor, responsible for

can¬

York

in

#

*

York

announces

the

books

of

purchase at

20,000
in

proportion

holdings of

asso¬

ciated with Provident

since 1933,
serving in the real estate depart¬
ment and more recently in the
commercial

Mr.

Farr

banking

entered

department.

the

bank's

date.

posts in the audit, court account¬

ing and trust tax departments.
H:

A.

The

for

Cincinnati

that

9

Fletcher

shares

of

of

New

Mr.

will

Thomas

M.

the

bank

has

Vice-President

addition

Director.

Mr.

letter

a

C.

that

from

Laurance

II,

Mr.

Facilities

Wright,

calls

the

President. This

attention

board

of

the

to

fact

directors,

in

as

had

a

its

Field

location

present

Building

in

1940,

the

in

$91,-

to

in¬
crease of over 1,100%. This growth
had previously called for an in¬
743,000

June 30, 1951,

on

an

in the bank's capital stock

crease

During

served
of

of

the

the

The

War

Com¬

mittee's

major function was that
determining the necessity for
expanding industrial facilities to
meet
the
requirements
of
the

000 to

$1,150,000. With the adop¬
tion of the proposed changes and

forces

related

For the past

grams.

Mr.

Nyce

with

the

pany

and

has

New

seven

been

1946

in

its

pro¬
years,

associated

York Trust

since

and

President

Com¬

Vice-

was

commercial

banking division where he handled
the banking business of many of
its

public

utility,

railroad, steel
Mr. Nyce grad¬

and oil customers.
uated

laude from Yale Uni¬

cum

versity in 1930 with an A.B. de¬
gree. He is the author of numer¬
articles

ous

Budget,
lished

the

of

last

the

by

the

on

Federal

which,

pub¬

York

Trust

New

divided

profits,

will

count

surplus

the

increased

be

to

$1,-

Chicago

that

announces

as

of

Oct. 1 Kenneth K. DuVall has as¬
duties

his

sumed

Chairman of

as

the Board of Directors and Presi¬

DuVall

election of Mr.

The

dent.

to his new

posts was noted in these
Aug. 30, page 780.

columns
? v-"i ;■■ ■-il -; ■;

On

*

called

cago

the directors of

11

National

First

the

20%

Bank

The

sale

amount of

of

de¬

the economy.
*

stock

new

to

the

$250,000, has increased

the capital of the Citizens National
Bank

of

Evansville,

Ind.

from

$750,000 to $1,000,000 of Sept. 26.
*

The

directors

*

*

of

held Dec.

be

payment of
dividend.

stock

Chi¬

of

meeting

La

of

consideration

of

be

in

charge*

Banker's Divi¬

Company.

$

❖

According

*

St.

the

to

Louis*

"Globe

Democrat," rights to buy
shar.e of stock of Boatmen*®

one

National Bank

of St. Louis at

the basis of

on

held

stockholders

$3(1

each eight shares#

mailed

were

to

the

Oct.

on

1

bank*®

following

ratification of the plan to sell 25,000 new shares. Stockholders also

being given a stock dividend o 1
12V2% of record Oct. 1, said the#

indicated,

making

total

a "

which

added:

50,000

of

also*

share®

being issued.

Rights to buy will
expire Oct. 15. An underwriting

the issue is headed by

group for

I. M. Simon & Co.
*

*

:'v;

*

.'

The First National Bank in Do¬

niphan, at Doniphan, Mo., openeil
for business

Sept. 29, following
on Sept.

on

the issuance of its charter
25.

The officers of the

S.

bank

new

H.

Lawrence, President^
V: Snodgrass, Vice-President],

are:

E.

and L. E.

has

Hood, Cashier. The bank

capital of $50,000.

a

The

of

sale

stock

new

the#

to

amount of

Salle

Na¬

the

bank's

the

24,

board's

par

value

The

"Wall

(Chicago Journal
of Commerce edition) reports that
if

this

is

approved,

the bank's
increased

$75,000,000
to
$90,000,000
the
$15,000,000
dividend

with

coming from present surplus. The
dividend would be paid on the
basis

of

held.

The

be

share

one

for

each

additional stock

distributed

record

to

the

at

five

would

stockholders

close

Dec. 7 said the paper

of

business

of

from which

quote, and it added: "The last
the

bank's capitaliza¬

increase

in

tion

made in December, 1948,

was

when authorized

boosted

from

capital stock was

million to $75
payment of a 25%

$60

million through

stock dividend. The directors also

$150,000, consisting of 3,000 shares

issuance of subscription rights to

worse

per

at

Bank

Columbia

a

of

* regular

$2

a

quarterly
payable

share,

1 to holders of record Dec. 7.

Barring
in

major

changes

business

Carolina

South

of

28)

Sept.
$500,000 to $600,000.
(on

Hs

*

from,
,

*

Effective Sept. 24, the American#
National Bank of San Bernardino*

Calif.,

capital from

its

increased

$200,000 to $500,000.
the increase
while

of that

further

the

$100,000

$200,000 off

brought about by„

was

stock dividend

a

the

to

amount,

addition

stock.

new
'is

'i!

V

Alger J. Jacobs has been
moted

to

off

resulted

capital

from the sale of

pro¬

Vice-President of the*

a

for

it

Francisco,

Oct. 4 by

on

ident.

with

has

been

bank's staff in

con?-

investment
joined the*

Anglo's

since

department

pointed

announced

was

Paul E. Hoover, Pres¬
Jacobs

Mr.

nected

he

1931.

He

was

ap¬

Assistant Vice-PresLdent in 1948.
A graduate of the*
University of California, he is a
an

member of the

Bond Club of San,

Francisco

of

and

the

Municipal-

Bond Club of San Francisco.
■"

18

proposed

a

Street Journal"

we

tional Bank of Chicago have called

special

and

meeting of

special

a

stockholders, to
to consider

':

*

*

October

from

projected

*

will

He

sion of the Trust

San

of

the

fense program on

was

of the Banks

Trust Co*

Oct. 11, W. (X
elected
a
Viceon

Anglo California National Bank off

i'f

sis

$

The Merchandise National Bank

capital stock would be

the

Crawford
President.

ac¬

500,000.

Company in March 1951, analyzed

impact of

board ot

of Mercantile

of St. Louis held

the transfer of $200,000 from un¬

of

armed

of the

meeting

a

National

of

Senior

Nyce

Board.

new

into

Officer

Committee

Production

of

*

$7,254,000, when the bank moved

has

company.

War

*

Ar¬

1948, from $600,000 to the pres¬
broad
business, investment and
banking background. He was as¬ ent $1,500,000, with a further in¬
crease to $2,000,000 now proposed.
sociated
for
10 years
with the
New York City office of Scud- Jn the period since 1940, the bank's
der, Stevens & Clark, a Boston surplus has increased from $140,-

Executive

At

directors

Chairman of the Board, and

in

as

$120,000^

$100,000 has served to
increase the capital of the Firsfc

Committee

Nyce

World

of

$80,000

posits of the bank increased from

position

investment

of

that

Vice-Chair¬

his

dividend

sale
*

The letter also points out that de¬

to

Central

named

and

to

the

Executive

of the Executive

man

in

Accompanying the notice of the
meeting, received by the
over
the
weekend,

proposals,

Director

and

been

will

recommending

announced

Conroy,

Vice-President

stock

a

shareholders

Trust

his

assume

Mitchell also

Oct.

Vice-Presi¬

in

by
and

stock.

...

was

Director of the

sometime

fective Oct. 4, was brought about

are

the

by

changes

new

York,

dent

He

change in

adoption
of the
is influenced by the
continuing growth of the bank,
and the corresponding increase in
the demand upon the bank for
necessary
loan accommodations.

Executive

Trust.

$25
will

he

approved

these

Vice-

Nyce,

become
and

If

the

which

special

share, and to increase the total
capital funds of the bank through

Suffern, N. Y.,

value shares

par

shares

November.

E.

been increased from $600,000 to
$800,000, the enlarged capital, ef¬

"This latter amounts to 25,000

is increased from

City

of

that each

the bank's capital stock
$1,500,000 to $2,000,000, and
total capital funds from $3,406,000
to $4,056,000.

letter

President of the New York

Company

that

*

from

John

on

on

*

increase

Jan.

Co.

shares

divi¬

of Commerce, of Lincoln, Neb., has

share the

per

maintain

paper

President

announced

proposals to change the

of

$25

value.

par

Company,

Banking

Trust

24, would

effect is

three

value

par

mour,

Trust

the

at

value shares
their respective

to

net

new

each

was

*

Mitchell,

Central

*

par

common

The

the

of

em¬

ploy in 1929 and has held various

the

capital
&

bank

Oct.

shareholder will receive rights to
subscribe for one additional share

dividend

the

Bank

a

the

$32.50
$25

new

ing capital shares from $50 to $25

which

of

of

business

per

have the right to subscribe for and

the

Lafayette

2

$32.50

share.
Shareholders appearing of record

declared

Oct.

at

shareholders,

for

ap¬

shareholders

filiates.

Mr. Flood has been

to

value of $25 each.

hold subsequent to the

shareholders, to be held Oct.

State

shares

common

par

the audits of various departments
of the parent company and its af¬

States

subscribed

24, bringing the

additional 20,000 shares of
value common stock to the

of the bank's presently outstand¬

under




United

a

an
par

certificate

on

Address_
State_

Trust

previously

a

Department
proval

.

sistant

$200,000 which the

*

The

Name

and

entirety.

without obligation, Prospectus

for Knickerbocker Fund.

and Henry C.

Assistant Vice-President;
Carl F. Flood, as Assistant Treas¬

he became Secre¬

from the first

Bank

20

Send me,

before

tary of the Treasury

Dept. C

Exchange Place, New York 5, N.Y.

as

urer;

B.

ledger containing Hamilton's

phone or call at our office, or
send the attached coupon.

Carr,

*

account

ing

close

William

are

Prospectus, describing
the Fund and its shares,
For

Presi¬

at close

to

The capital of the National Bank

proposals also include offer¬

on

William

Trust Co.

Mitchell,

appointments:

of

*

The

three

Co., Ltd.

*

William

Oct.

tion

K.

of
a

dent of Provident Trust Company
of Philadelphia, announced Oct. 15

duties
On

which

$1,054,298.

Oct.

60,000 of

$25

*

$

R.

the Commercial

and

Vice-President

area

and

of

December

Secretary

and

urer,

story

after deducting

equal to $27.34
mon

be¬

Mr. Marshall is

year.

of New York

the

$54,888,459. After dividends

nine

and

Corn Exchange Bank

amounted

AMERICAN

its

1951,

were

of

William

of

ended September 30

GENERAL

in

Bank

1948,

in

*

September 30,

$284,866.

ors,

the

tion of Harold H. Boswell

income

Net

months

was

United

$6,456,283.50. Undistribu¬

$1,724,505.
nine

the

of

Union Assurance

compared

30, 1950, an in¬

on

investment

ted

with

1934, Mr.

Company continuing

Railroad Co.

AMERICAN EUROPEAN reported
total

Co. In

Director of the Baltimore & Ohio

(ex¬

of 21.32%.

crease

&

went

with $231,322 for the nine months
ended September

Exchange firm of

Vice-President

came

sales of se¬

on

banking

Company, assigned to
the division handling New York
City business. He was elected a

com¬

1951

$280,642

was

Stock

Director

the

September

the

D.

a

were

applicable to

for

stock

mon

outstanding

his

Col¬

Manhattan

times.

income

Net

Dartmouth

there until 1946, when he became

financing
Interest
and amortization requirements on
earned

Orange, Mr. Mar¬

started

States Trust

amounted to $5,657.

debentures

Association.- A

in 1925 with the American

Marshall

debenture

amortized

costs

was

City. Following that institu¬
tion's
merger
with
the
Irving
Trust Company, he was associated

of debentures outstanding on Sep¬
tember

it

16

York

$1,000

per

Inc.,

:!s

the

Exchange National Bank in New

C.

asset

East

and

career

•

The

the

attended

lege

30, 1951 compared
share on June 30,

a

Oct.

(par $50) to $200,000 consisting of
4,000 shares, par $50 each.

has

of

Industry Associa¬

York,

on

of

of

shall

share

a

New

York,

New

by Thomas
Jefferson Miley, Executive Vice-

$9,561,723 on June
asset value of the

Net

of

Presi¬

Manhat¬

Director

a

and

announced

outstanding debentures, were $10,589,700,
excluding
unamortized
debenture
financing
costs
of
$71,342. These compared with total
30,

of

elected

TOTAL NET ASSETS of Carriers

net

business

number

per

dent of the Bank of the

CLOSED-END

share for each share held

common

intends

dend payments at an 8% rate on
the increased stock."

outstanding 30,000 shares
$50 per share to $25 per

share would be brought about by
the
issuance
of
one
additional

NEW BRANCHES
NEW

Sept.

on

ently
from

CONSOLIDATIONS

GAS INDUSTRIES FUND reports
net

duction in par value of the pres¬

board

23

Directors of Union Bank & Trust*
Co.

of

tober

Los

Angeles

dividend

of

their Oc¬

stock

a

5,000 common shares-

distributable Jan. 2

to stockhold¬

of record Dec. 17. This is

ers

to

at

declared

meeting

one

held.

board

follows

Board Ben R.

approval

the

by

Meyer,
stock¬

of 30,000

issuance

the

holders of

increasing the total
outstanding from 70,00O

shares,

new

number

to

be#

This*

action, according to Chair¬

of the

man

shares.

fractional

now

will

certificates

Scrip

issued for

equal

share for each 14

new

100,000.

total

this

Of

25,000

shares will be held for future dis¬

position.
proved
of

an

Stockholders also ap¬
increase in the number

authorized

to 21.

from

directors

10

Concurrently with the dis¬

tribution

of

dividend,
the direc¬
made to the capital
the

stock

transfers authorized by
tors

will

and

surplus

the

be

combined

accounts
total

of

increasing
these

ac-

the

conditions, the

Continued

on

page

31

24

The Commercial and Financial Chronicle

(1472)

Continued from page

This Week

—

Bank Stocks

be

avoiding

Strength of U. S. Economy and
Its Meaning foi the World

By H. E. JOHNSON

to

seems

6

tors

Bank and Insurance Stocks

Thursday, October 18, 1951

...

good-chance of
inflation.
Fac¬

a

further

pointing to rising productive

ity

the continued increase in
incomes (which should

are

workers'

bring high morale), and the im¬
provements
been

that

made

in

have

plants

already

and

equip-'

ment.

,

,

$51 billion is made up as

The most significant development of the week affecting bank

operations

the increase in the prime loan rate in New York

was

only 41%
of the expansion in total produc¬
tion after one year of defense ef¬
fort
was
due to expansion
in
defense
expenditures.
The in¬
crease in the outlays
of business
for new construction, machinery,
and equipment, plus the increase
in inventories, amounted to 32%
of
the
total.
Approximately a
third of the increase was account¬
ed for by expenditures for per¬
sonal
consumption and net ex¬
ports.
Thus of the expenditures
that brought about the boom only

Increasing demands for credit reflected in record borrowings
by business, plus a general firming of interest rates prompted the
It had been anticipated in investment circles for the past

action,

The previous change in

there is

some

the rate was last January. Also,
thought that should current conditions continue it is
possible that a further increase in the rate to 3% might be made.
The full

impact of the higher rates will not be reflected in

earnings for

months yet.

some

While the increase in the prime

rate will necessitate upward adjustments in other rates, the higher
rates will have little influence on the earnings for this year.
Loans

outstanding q,t present were made at the old rates and

it will take

some

time before renewals

current rates become

or

loans made at the

new

important factor in the earnings picture.

an

little

a

third

a

over

actu¬

were

of

production

the

for

ally

shows that

IV

Table

City from 2V2% to 2%%.

month.

shown

in Table IV.

war

this

In

year

same

credit

rose

a

review of the results

so far

period, and bank
loans increased more than $10 bil¬
12-month

a

In general, most of the New York banks in spite of higher tax
burdens made a favorable showing—better than had been antici¬

lion.

pated.

nanced

the

institutions, which report operating results,
showed higher earnings in the third quarter than a year ago except
In

one.

ings

of

instances

some

was

ception,

As

are

pattern

same

above those of

Shown below is
the

a

one ex-

year ago.

a

tabulation of the

earnings reports of 17 of

principal New York City banks for the quarter ended Sept. 30

compared with those of

a

Also shown

year ago.

for the nine months and the indicated

are

the earnings

earnings based upon changes

in book values and .dividends paid so far this year.
'■%

-

Third Quarter

1951

Bank of Manhattan
Bank of N. Y.

§

& 5th Av.

Bankers Trust

0.85

Exchange

First National

1.951

•

1951

1950

$1.57

$1.61

16.05

15.76

1.79

1.86

1950

§

§

$5.74 $18.42 $17.43
0.57

2.46

1.86

———-

0.57

2.00

1.78

0.76

2.53

2.17

1.16

1.19

3.67

3.88

§

§

4.59

—

Guaranty,Trust

0.69
0.84

—

Chemical Bank
Corn

,

Nine Months

§

$6.02

—

Chase National

Nine Months

1950

4.18

,

—

Hanover Bank

§

2.04

2.06

2.56

2.23

3.54

.

§

13.45

3.76

55.83
13.39

12.75

59.01
13.54

§

Manufacturers

Trust

Morgan, J. P.

♦fNational City

§

§

§

4.20

3.94

0.37

1.14

1.07

1.01

0.95

1.25

——

0.39

1.12

3.65

3.39

3.65

4.44

15.20

11.45

13.77

0.71

2.47

2.15

Public National

income is still
;

of almost $20

increasing at
billion a year.

1.70

6.18

1.01

0.97

§

§

U. S. Trust

Thus

billion.

the

boom

that

just been experiencing was
by income enlargement
expansion, not by gov¬
ernment
"deficit
spending," al¬
though the deficits of earlier years
created over $200 billion of liquid

and credit

which

assets

activated

became

during

the Korean buying spree
and thus helped to feed the price
rise.
The boom forced prices up;
by March 1951, wholesale prices
had

risen

18%, and the cost of
living 8V2% over June 1950. Now
the cost of living appears to have
flattened

Wholesale

out.

have

declined

by about

a

Inflation

vs.

present

2.08

2.02

5.16

6.18

5.17

toward deflation,

2.66

2.91

2.6-3

12.86

12.12

§

working toward inflation and
as

are

some

new

retroactive

be

bill become effective in the
current
to April 1 as now seems

revenue

liable

Had the banks made

for

substantially higher

tax

the
provision.

some

provision for higher taxes in the third
quarter, it is likely that there would have been
fewer increases
in earnings.

Thus, depending

upon the nature and timing of the new tax
bill, earnings of the banks may not show the same
gains as in
previous periods. It seems
likely, however, that most of the banks
will be able to show
earnings for the year slightly above or close
to those reported in 1950.

what

the future?

Increase in

defense outlays

powerful

than

forces, provided certain conditions
These

(3)

Increased

ments

no

compared

20
1

FORCES

(5)

17 N. Y.

City

for

6

productivity
housing

12

expendi¬
2

in

Decline

in

plant

rate

October

of

accumulation

:

Monetary factors financed and
possible inventory accumu¬
lation, which was one of the forces
that
produced
inflation in the

made

nine months

at

Kenya Colony and Uganda
Head

Office:

8

Bishopsgate,

in

India, Burma, Ceylon, Kenya
Colony, Kericho, Kenya, and Aden
and

Zanzibar

Subscribed Capital

Exchange

Paid-up

BROADWAY, NEW YORK 5. N. Y.
Telephone: BArclay 7-3600

Reserve

Capital
Fund

£4,000,000

to

cause

recent decline in wholesale

In

first

the

was

paid

for

than

it

arid*

•

allowed
in

the

prices.

£2,500,000

being
goods

to

consume.

pursuit of goods

brought rising prices.
When inventary accumulation ceased, and
the economy as a whole was al¬
lowed"

to
consume
as
great
a
quantity of goods as it was being
paid for producing, prices ceased

to rise.

is

being

the

was

the

-

Trusteeships and Executorships

in

the

second

though

quarter,

rise.

to

in¬

Thus

the

that

downward

results

from

price
the

is

a

tion

"one-shot"

increases

months

14

Consump¬

the

in

absorb
v*

may

next

largely

tinue

to

they

in

six

inven¬

the

they

industries*

some

Productivity and Civilian

Y

Purchasing Power
We

have

can

economic

welfare

provided

military

and

Therefore,

economic

and

maintain;
security. 1

we

political

it is

»

high degree of'

a

strength,

evident

that

our'

to

the

Atlantic

countries

pact

of

are

our:

of

the*^
real:

to everyone in the
United States.
What we will gain
by fighting in Korea will more

*

than compensate for the sacrifices"

which

we,

people,

a

as

now

are

called upon to make.
Our real

problems in the

years

*

ahead

are
going to be at home..
production rose sharply last

Our

because of the prospective.
demand for war supplies.
It will ■
continue
to
rise until we have;

year

the

won

struggle

munism.

Then

against
will

we

Com--

have

an

>

expanded productive capacity, and
it will
be
our
job to sell the
product of that capacity.
We

that

sure

are

,

expand '

we can

output and increase productivity,.
but

how

the

about

purchasing *
to buy such huge produc- ■

power

tion?

The fact is that the Amer-'

ican

people will have a very large
aggregate income which will come;
from both
military and civilian

production.

incomes

That

will

•

exceed in value the civilian goods

which
So

available to

are

consumers.

backlog of purchasing power >'
will be built up just as it wasY
during World War II, ready to be
a

whenever

available

when

to

the

duction
have

goods

more

civilians.
for

need

declines,

plenty of

expanded

are

Therefore,

military pro-

to buy an

money

of

output

•

should

people

consumer

goods.
The potentials are so great that!
the young men and women of to- ■

day can expect to earn from $5,500 :
to

$7,000 a year as average work¬
by the time they are 50.
If
they acquire special skills, their

agaih

whether the
Washington con¬
on

keep

increases

taxes, whether

credit controls, and
whether they impose restrictions
that effectively limit the rate of
expansion

There

is

for

by

business.

considerable

a

reduction

current business

at

just
the

oppor¬

here,

since

expenditures

are

billion annually,
before Korea they

rate

of

$18

billion

inflationary forces of $41 annually. Then if the productiv¬
deflationary forces of ity of labor continues to rise, there
TABLE

tially

New construction

skilled

a

Steel

earn

in

The

purchase rate of consumers' '
goods in the second
of 1951 was $20 billion
over -1949
and the purchase rate
of consumers' durable goods was
up $2 billion.
Residential build¬

non-durable

quarter

ing increased by another $3 bil¬
This

lion.
in

1951

billion
lion

possible

was

income

personal

creased

to
as

for

an

The

*

in-/
of $250

annual rate

1949.

increase

The

was

purchase the enlarged
and

to
to

more

annual

to

6

are

rises.

32%

2

4%

21

41%

-1

—2%

leave almost
be added to
of

rate

labor

100%

compensa-,

increased

same year.

price

Furthermore,

level

under

by

$321

1950, to De-

increasing steadily

(

Incomes i

as

output;

with

control

ourl
it;

(as

has been for several months

now),'
banking ability;
additional credits as;

we

shall have the

to

product

well

also undertaken

51

because

had

compared with $205 bil¬

sufficient to

9

______

,

steady increase in output
equally steady improvement;
productivity.

billion from January,

16

S.

U.

$12,000

as

and

cember of the

Decrease in other government expenditures

much

as

But all of this is depend¬

year.

tion

Purchases

Increase in net exports.
Increase in defense expenditures...

with

workman

can

ent upon

25%

1

by business of machinery and
equipment

as >

savings.

Dollars

13

today,

Even

Benjamin Fairless recently stated,

$20

Increase in expenditures for personal consumption
Increase in gross private domestic investment:

will be substan¬

power

higher.

production
billion

IV

Investment in increased inventories...

earnings

a

Whether prices will go up

tunity

inventory

affair.

and

Total

although

hit

consumer

than it had been

1951

first

price de¬

that

fact

continued

comes

A

the

in

less

was

quarter of
in

for producing.

paid

element

1952,

will

before them.

used

Inventory liquidation brings
lower prices, for more goods are
being placed on the market in a
given period than the economy

._

conducts every description of
bonking and exchange business

it

economy

was

inore

producing,

was

dollars

More

the

period

producing,

__£2,000,000

The Bank

Teletype—NY 1-1248-49

(L. A. Gibbs, Manager Trading Dept.)




26,

London, E. C.

Members New York Stock
Exchange
Members New York Curb

Specialists in Bank Stocks

accumulated

were

time helped

that

Bankers to the Government in

Laird, Bissell & Meeds

Bell

following Korea. The

inventories that

at the rate of $26

billion

think

in

Billions of

Branches

120

1,400,000 units

A cessation of inventory in¬

creases.

plant

expansion
8

of INDIA, LIMITED

Third Quarter 1951
Available

900,000

plants and equipment.

(6)

authorities

expenditures

With

Bank Stocks

than

A decrease in expenditures

depends

(Billions of dollars)
Increase in rate of taxation

Shrinkage

construction
units,

housing
to

after

1950.

were

NATIONAL BANK

technical

more

a

we

importance

productivity re¬
improve¬
in plants and equipment.

(4) New
of

perhaps

believe that

cyclical difficulties—
major recession—some¬

time

North

Efficient labor.

from

economists

will; have

assistance

(2)

sulting

Some

present defense of Korea and

are:

(1) High taxes.

pressure

increases.— 20

DEFLATIONARY

in

inflationary

the

in;

period of relative stability with:
possibly a slight inflation of
prices during the next six months. -

remain at
moving

It seems possible that the de¬
flationary forces will prove more

whereas
COMPARISON & ANALYSIS

Will prices

are

a

for

their present levels,
neither up nor down?

tories.

Decline

mean

ending of inventory accumulation

Increase in stockpiles..

in

this

does

However,

FORCES

wage

Increase

March

between

It would appear that we

ers

tures
....

prices

personal savings increased.

(Billions of dollars)

likely

a

combi¬

August 1951.

Just

41

quarter and be
would

are

the following

INFLATIONARY

fPer share figures adjusted to

in most instances after taxes at the current cor¬
No allowance for the
prospective increase
tax rates to 52% has been
made.

banks

and

demand

forces

table will show:

§

wholesale

further

Deflation

some

This

only stopped the up¬
ward
movement
of
prices, but
brought about a 4J/2% decline in

cline

At

porate tax rate of 47%.

Should the

prices
fourth

of the increase since Korea,

Prospective

in

we

financed

2.17
•

2.91

""Includes City Bank Farmers Trust
Company.
present capitalization.
£Not reported.

Earnings

rate

a

Except for defense expenditures,
the government did not contribute
to last year's boom. In the fiscal
year ended June 30, 1951, its total
cash receipts exceeded total gov¬
ernmental expenditures by $7J/2

11.77

0.86

...

New York Trust—

expenditures.

3.39

5.90

Irving Trust

business

have

>:•Y;:vr:YYYYY
"
:v ^;
Operating Earnings
Indicated Earns.

V

expansion in credit fi¬
considerable
part
of

expenditures were fi¬
nanced by loans and by a rise in
labor income of $25 billion. Labor

has prevailed in the two previous

as

result, earnings for the nine months, with

a

inventories.

Consumer

shown.

This is the

quarters.

a

increased

favorable increase in the reported earn¬

a

This

budget

not

number of new houses ever built
in

All

heavy

by about $3 bil¬

real estate credit rose sub¬
stantially to finance the largest

30 avail¬

this year can now be made.

the

in

nation

expanded markedly.

sumer

spring

last

surplus, the application of several
types of credit control, and the

the use of
Con¬

credit

lion,
With earnings reports for the nine months to Sept.

able,

origin

prevail.

materials.

Nevertheless, it is very important from the standpoint of earn¬
ings next year. The higher rates could aid the banks in offsetting
higher taxes, increases in expenses and in maintaining a satisfac¬
tory level of earnings.

$42 billion, the issue is in doubt.
The deflationary forces had their

as

to

use

our

accumulated!

liquid assets to buy goods which

•

Volume 174

will

keep

Number 5056

the

up

high

.

.

.

level

The

CommerciaFfflffid~Tinancial Chronicle

sible

of

economic activity.

in

reducing

expenditures,
very heavy
We must

still, have

will

we

(1473)

Announce Lectures

a

budget and high taxes.

The Expanding Economy

;•

One

more

make

this

re-examine

thing is required to

picture

icy and

of

But

expanding
economy complete and that is the
ability to sell goods.
We will
need

techniques to sell our
huge production and we will have
to

devise

the

sale

which

new

the

of

to

means

finance

additional

productive

our

turns out.

goods

machine

Of course, exploration

ing to increase
in

tinue

the end

of

especially.

1945, industry

have

to

in

plants

new

we

to

are

con¬

production,
industry must continue to invest
many billions of dollars in plants
mass

and

equipment of advanced design
and
improved efficiency.
Only
the

can

to

it that incomes of
workers increase along with pro¬
to

see

This

•brave and

may

be

a

a

its.

it

Instead,

sacrifice of prof¬

recognizes

well

as

which is not

one

undertaken at

incomes

to

seem

daring program, but it

discerning

that

productivity

as

•must increase if the

enlarged out¬
put is to be distributed and con¬

sumed.

Such

should

large ' production

create

the

well-being

world if

greatest

it

wisely and share

V j'vA

What of the

optimistic

am

fully

am

mate¬

ever known in the

we use

it generously.

•

Future?-

as

to the

aware

and

If

develop,;a

mental and,,spiritual
toughness which is not evident at

'present.

While the United States

rich country, there is

very

limit to what

we

will

be

able

a

to

.'undertake.
If the Russians pro¬
ceed to give us more trouble by
"stimulating additional situations
that

tainly

in Korea,

would

examine
As

be

ment

most cer¬

we

forced

to

fact, this contain¬

policy needs re-examination

no.w.

budget
fore

will
a

make

must

reduce

inefficiency

and waste and eliminate

unneces¬

and projects—both

sary programs

the

civilian and military,

of

and especi¬

ally the military.

Federal

2Vz%

bearable.

more

As yet, we

have found

the problems

Buying

no

in

Federal

will

powerful force for in¬

be

a

creasing
panding
It

>

production

our
our

budget
and

out

War

II

like

we

this:

taxed

World

46%

War

II

32%

budget.

taxed

we

of the Federal

After

for

of the cost of the Federal

In

ex¬

economy.

works

World

our

for

budget—$100

billion expenditures with taxes of

$46 billion. Then we reduced ex¬
penditures $68 billion, down to
$32 billion, and we had $14 billion

New

power

of inflation.

goods

should

supply,

have

it

the

that

should
not

the

ing needs between

be

the

of

ment of Federal income

dollars

our

dollar

added

armament.

cost

91-day bills.

being received for the long bills than would otherwise have
case.
To be sure, there will be no real answer as to what
go at until the bidding is over.
However, it is evident
from the gossip going on about the 144-day bills that bids are
likely to be below those of the recently offered 90-day regular

re¬

.

Treasury bills.

do

to

.share

our

in

To do this we must face

ous.

securities
the

We

means.

must

our

>■

the

accept

responsibility of being citizens of
,

-

a
nation, like that of an indi¬
vidual, is not static, but dynamic.

in

con¬

the
national leadership

quality of our
so
important.
who

We

also

have

was

leaders

need

integrity.

They must

imagination

the

and

long-term high-coupon bonds.
•

ance

*

such

cause

members

has

been

manager

eventually,

when

reduce

we

ex¬

in

be

able to

reduce

taxes

If

can

duce expenditures $30
billion, we
should reduce taxes by nearly $30
billion.
Then
corporations can
reduce prices to the ultimate
sumer

mand

for

which

turn

and

our

thus

the

increase

con¬

to The Financial Chronicle)

the

de¬

additional

goods
productive machine can

New

Co.,

Street,

York

and.

Mont¬

45

members
San

of

the

Francisco

Stock Exchanges.

•

Economy

But, being realists,

mit that

riod,

Essential

we must

during this cold

even

if

we

war

ad¬
pe¬

go as far as pos¬




(Special

RED

to The

—

Beeman is with Waddell

Inc.

government

The

will be

tickets

sold.

scheduled

program

is

as

follows:
Oct.

30—Background

for

Invest¬

ment Selection.

Railroad),

Insurance,

Life

Stocks,

Utility, In¬
Preferred

Pen¬

sions.
Nov. 13—Common

Stocks, Invest¬

ment Trusts.

Nov.

20—Real

Income
Nov.

Estate:

Mortgages,

Property, Residences.

27—Discussion Panel

on

In¬

vestment:

Robert

H.

Walter

N.

Pease, Chairman;
Hiller, Penn Mutual
Company;
Milton L. Williams, Hornblower & Weeks;
Life Insurance

Representative from the Chi¬
cago District, Illinois Bankers
Association.

4
Developing Your
Investment Program.
—

Own

New Members of
San Francisco Exch.
SAN

Francisco

has

announced

Arthur
of

Cal. —The

FRANCISCO,

San

R.

Stock

the

Exchange
of

election

Mejia, general partner

Harris,

Upham

&

Co.,

and

ner of Holt & Collins, to regular
membership in the Exchange. Mr.
Mejia acquired his membership

by transfer from Lowell L. Grady
Mr.
Murphy acquired his
membership by transfer from Edi¬
son A. Holt.
Mr. Grady and Mr.
and

Holt will remain
ners

general part¬

as

of their respective firms.

With Highland Sees.
SAN

FRANCISCO, Cal. —Carl

A. Mattison is
Securities

now

Co.,

with Highland

Inc.,

1521

Locust

Street.

one

and

U. S. TREASURE

long time yet.
on

II STATE

Sidelines

still

The loaning

end of their business

is

good, and it is likely to continue that way for the balance of
so that the appeal of the higher-income Treasuries is

and

MUNICIPAL

year,

non-existent

at

this

time, except for tax-sheltering

pur¬

SECURITIES

Also, the time is not too far distant when the list of eli¬
gible bonds will be augmented by quite a sizable amount of the
restricted obligations.
is

This

seems

to have created

a

cautious look-

attitude among

the deposit banks with the feeling that there
nothing to get excited about, at this time, because from the

see
,

sea

the road ahead appears to indicate there are no cum¬

enlarged interest about for the

last three partially-exempt obligations, with not
bonds available for purchase.
However, it is

too many of these
understood that a

few rather good-sized deals

(considering the lack of breadth and
activity in the market) were consummated recently in the 2%s
of 1960/65 and

banks

the

1958/63s.

involved

a

couple

of

active

weeks ago.

in

the

Vies, but not nearly

8c Co.

the intermediate-

INCORPORATED

more

Reed,

Aubhey G. Lanston

New York and Chicago commercial

along with
sized non-banking institutions.
were

&

Financial Chronicle)

WING, Minn.

a

The

protected

Lynn R.

With Waddell & Reed
of

for

case

a

There is a modest amount of buying going on in the noneligibles with some of the smaller non-bank investors still build¬
ing positions (not too substantial, to be sure) in the near-eligible
obligations.
A part of these funds has come out of the shorts
with the balance from new money.
Pension funds were a bit

out.

Extension

admission

on

bersome detours to worry about.
There has, however, been an

to The Financial Chronicle)

Witter

mostly

are

give assistance if there be need for it.

driver's

FRANCISCO, Cal.—George
Salinger has joined the staff of

Dean

Treasury financing has cast somewhat of

longer partially-exempts.

<

SAN

gomery

The lectures will be given on
Tuesdays from 6:30 to 8 p.m. at
32 West Randolph Street.
Cost
of the series ticket is $8; no single

poses.

Joins Dean Witter

A.

new

Commercial Banks

the

Building.

(Special

surance.

Commercial banks, as a whole, do not appear to be too much
interested in the government market aside from the shorts and the

D.

SAN FRANCISCO, Cal.—Irving
Brock is with Waldron & Co., Russ

re¬

investors

and

rather

approxi¬

we

who have invest¬

(Special to The Financial Chronicle)

the whole government market, there is nonetheless

this will be the

Schmid

penditures $10 billion, we should

mately S10 billion.

over

market, from the shorts to the longs, is still

With Waldron & Co.
(Special

women

problems relating to stocks,
bonds, real estate, and life in¬

It seems as though the psychology of the
market has been bolstered because it is evident Federal will step

James Co., Sacramento.

balanced

and

men

ment

existing quotations.

of

of William

tures, to be given by Robert H.
Pease, Vice7President of Draper
and Kramer, Incorporated, are for

the inactive side, with scattered
selling here and there, but not sizable enough to cause concern.
These offerings have been absorbed with practically no effect upon

the New York and San Francisco

Mr.

shadow

bank

SACRAMENTO,.Cal.—Harry L.
Schmid, Jr., wilUbe admitted to
partnership in Irving Lundborg &

Exchanges.*

on

important change in the tempo or the activity, and nothing of
great importance is looked for in the immediate future.
Non-

Harry LSchmid, Jr., to
Be Lundborg Partner

Stock

position to take

a

no

ture only that is at stake, but the
future of the world.

Francisco,

The savings banks and life insur¬

companies by that time might be in
obligation.
j

of

"In¬

on

an

Although the
a

For it is not America's fu¬

San

government's

of the

care

%

of free¬

Co.,

just about take

for new money for the present fiscal period.
This will
relieve the pressure on the outstanding marketable issues and it
needs

courage

and devotion to the
dom.

meeting the cash deficit of
current fiscal year. In other words, barring
happenings, it seems as though this medium of the long

might be that by the close of the current fiscal year, the govern¬
ment market will be in good enough shape to absorb an issue of

of " understanding,

men

are

should go a long way towards

unforeseen

Treasury bills should
j

history

our

The $1,250,000,000 initial offering to mature on March 15, 1952,
anticipated offering of another $1,000,000,000 or there¬

N.

lec¬

William V. Murphy, general part¬

Financing

the Treasury for the
-

stantly renewed.
Never

Prelude to Long-Term

and another

abouts

of

if it is not

minimum, the Treas¬

a

will be able to borrow by means of short-term paper from
the corporations'that are setting aside funds for tax purposes.
;

the world's most powerful nation.
We must realize that the strength

It dwindles away

to meet the demands of the market and

deposit-creating inflationary forces at

By tailoring its
in order to keep

ury

problems squarely and live within
our

borrowed now to meet the current deficit.

money

bringing about world peace, it is
absolutely necessary that we keep
our economy
healthy and prosper¬

six

center

vestment Commonsense." The lec¬

Dec.

Corporations under the existing law have to pay 70% of their
income taxes between March and June, 1952, which means that
the Treasury, now rather substantially in the red, will probably
be in a better financial position during the first half of 1952.
This
should make it possible for the Treasury at that time to repay

dence both at home and abroad.
are

member

they will

committed, we will find our dol¬
lars growing weaker.
Weak cur¬
rency
saps
the strength of the

we

Treasury tax and loan account balances,
banks, gives them attraction over the
These features will no doubt result in more favorable
of

been the

If we, as a nation,
permit ourselves to become over-

If

books

of

course

downtown

University of Chicago

may

rates

trade
of

the

on

impaired,
the serious

international

on

taxes, and the payment of these bills

be made by credit to the

further

the

111.—Announcement

a

the

at

dustrial,

and next June 30, the end of the current

now

of

made

tures

Nov. 6—Bonds (Public

Like the existing bills, they will be sold to the highest
bidders, and the average discount will conform to the going market
rates.
The fact that the new paper will be eligible for the pay¬

buy less.
important

highly

.

fiscal year.

-

inflation

becaues of
savings, but because of

on

effect

and

is

value

not

only

effect

in

government

further

dollars^ would

our

believe

I

if ,~„the

or :

short

surprise.

no

The new Treasury bills will have a maturity of 144 days and
will be acceptable in the payment of Federal income taxes.
This
medium will probably raise the greater part of the deficit-financ¬

resort to deficit financing,

would

and

become

was

Treasury Bills Additionally Attractive

•

in the hands of the
public is increasing. If consumer

of tax reductions and

a
completely
budget. So far, in this
present limited war, we are tax¬
ing for nearly 100% of the Fed¬
eral budget.
After this defense
period is over, and it will be over

a manner that should be satisfactory to all
However, by selling the 144-day bills to commercial

to 2%%

solu¬

Any substantial

reduction

financing in

backing and filling in an effort to work out the lower reaches
of the trading area.
The short end of the list is in good condition
because there is no let-up in the liquidity-mindedness of many
institutional investors.
The increase in the prime bank rate from

ex¬

flaming zeal that inspires

Is Essential
We

new

smaller factor and there¬

courage and

:

the

products

our

„This kind

-

Economy in All Federal Activities

t

further

re¬

containment policy.

our

matter of

a

increase

services.

pansion

are

serious problems.

very

we

leaders in business and politics to

like

an

were

deficit

entire economy and shakes confi¬

future,

that

are to solve those
problems, it
going to be necessary for our

a

have

not

for

we

is

should

ening the market for

to

ploration, and'(3) developing

should

we

and

upon the whole government market.
Corpora¬
expected to go for the new obligation in a big way,
which means the Treasury would be able to do this phase of the

productivity of labor; (2) devel¬
oping technical research and ex¬

force.

is

times

products and services and broad¬

order

ductivity
and
that there
are
enough jobs for our growing labor

.facing

the

adverse influence

tions

and

tion to

It is the responsibility of indus¬

.but I

of

needs

inflationary pressure is not decreased.
Activity in the market as a whole has not broadened to any
great extent, even though there has been a bit more interest in
Treasury issues, since Federal moved in and helped to stabilize
prices. The market is still in a give-and-take mood, which makes

productivity of labor

continue to increase.

I

the

meet

banks the

items—metals

$140 billion
equipment. If

rial

plant

to

seems

formation

by investing many billions of dol¬
lars

fancy of the money markets, and to more than a passing
a position of importance in the limelight.
It

in

must

in the United States has invested

a

capital

is

extent has assumed

We will do that by (1) continu¬

concerned.

about

is

tured the

economy.

*

on

Invest. Gommonsense
CHICAGO,

payable March 15, 1952, although expected, appears to have cap¬

prU

our

ficiency and installing cost re¬
ducing machinery and equipment

Since

.

vate

must expand

we

Governments

tax anticipation Treasury bill, which will be due and

new

to compensate for inevi¬
increases in
shortages of

critical

try

bearable,

The

Federal budget

our

on

By JOHN T. CHIPPENDALE, JR.

In

our economy.

go

research

forward
table

thus

expand

and

way

equipment of
advanced design and improved ef¬

technical

and

and

another

is

order to make

new

Reporter

must reduce expenses.

we

there

that is to

Our

containment pol¬

our

25

as

important

as

some

15 Broad

Street

45 Milk Street

NEW YORK 5

BOSTON 9

WHitehall 3-1200

HAncock 6-6463

26

The Commercial and Financial Chronicle

(1474)

Continued

from

page

..

Thursday, October 18, 1951

.

and lost it

11

quickly, for the people

concerned.

there

If there is to be freedom

Long-Range Implications
Of "Welfare State" Measures
Western Pacific

ter and

Marx, Part 1, State Capi¬
talism and Progress, published by

wisdom

accumulated

of

ages

The

insecurity

are

great driving forces and stimula¬
in

tors

from

human

from

and

want

unattainable

as

Security
the grave and

activity.

the cradle to

freedom

the

the importance of the indi¬

to

be insecurity and fear.

must

fact is that fear and

fear

are

from

freedom

as

Western Pacific common was a
relatively poor comparisons
disease and death.
The greatest
vidual as the basic starting point
big disappointment marketwise of July and August (the latest Earl Browder, 7 Highland Place,
fears, the greatest insecurity, both
figures available) cut substantially Yonkers, N. Y., 1950, pp. 29-30): in devising a proper system of without the
throughout most of the first half
quality of wholesome
of the current year, when earn¬ into the earnings gains of the first "State capitalism leaped forward government.
stimulation, and the least freedom
half year.
For the eight months to a new high point in America
The advocates of any of the
ings were showing wide increases
come
with government dictator¬
It be¬ systems of governmentally-manOver the
like months of a year both the operating ratio and the in the decade 1939-1949.
ship.
overwhelmingly predomi¬ aged economy—and this includes
■earlier. More recently, with earn¬ all-important transportation ratio came
ings falling off fairly sharply from still ran below the 1950 levels. nant in every major phase of eco¬ our so-called economic planners, How Were We Taken Into the
nomic life, and changed the face since
General Parade Toward a
year-earlier levels, the stock has The transportation ratio of 28.9%
they are potential dictators
The

of politics.
•developed a much firmer tone. It was, in itself, highly encouraging.
is hovering right around the top Also, the fact that net income at
"After the war, with the lifting
levels for the year, more than 11 $4,684,8-35 was $916,465 higher than of some forms of state control,
points above the 1951 low. The for the year-earlier period can there was a certain slowing up
market action appears paradoxical hardly be construed as bearish. of the tempo of this development,
—the stock under pressure when Nevertheless, in view of these re¬ but not a
change in direction.
•earnings are improving and buoy¬ cent trends it is obvious that ear¬ State capitalism, in substance if
lier
estimates
of probable 1951 not in formal
ant when earnings are deteriorat¬
aspects, has pro¬

This is not, however, unique
in the railroad list, and railroad

ing.

analysts

the

still attractive regardless

common

of

consider

generally

near-term

compari¬

earnings

"■ 4

sons.

„

Pacific had

Western

.

tionally good first half

an

excep¬

Gross

year.

earnings must
ward.

down¬ gressed farther in America than

be revised

V;

-

in Great Britain under the Labor

as

—wish to
of

the

deprive all other people
to act according to

their individual

plans in

response

to the objective standards of price
and

justice

of

competitive

yielded

enterprise

by
and

free
mar¬

The purpose of the planner

kets.

Governmentally-Managed
Economy?

power

or

would-be

his

own

dictator

is to make

plan the exclusive

eminent

one.

or pre¬

When the people lost control

their

of
in 1933, by
irrredeemable currency

public

having

an

purse

thrust upon

standard
was

them—that is, a
redeemable
in

not

rency

dollars—the

gold
to

open

our

cur¬
our

door

government

to

He seeks the

power
take the people of this country
September traffic was again off Government, despite its national¬ to regiment people. That is the into
a
governmentally-managed
from 1950 and it appears likely ization of certain industries, which foundation principle of the "Wel¬
economy.
A people legally con¬
is a formal stage not yet reached fare
State"
as
it
is
that passenger business was also
generally trol their government by means
in America; the actual, substan¬ advocated today.
down.
Partly this will be offset
of two basic devices: by the ballot
by the higher freight rates now tial concentration of the guiding
Planning intelligent government and by being able to require the
reins of national economy in gov¬
in effect but even at that it ap¬
to fit into an economy in which government and central bank to
,

probable that earnings after ernment hands is probably on a free and fair competition is the redeem their promises to pay.
and charges continued be¬ higher level in the U. S. A."
basic criterion as to what is proper When the people lose the latter
In respect to our government's is a correct procedure.
ing six months of the preceding low those of the like 1950 interim.
But the power, the government is free to
Under the circumstances, it seems controls of
year.
Expenses were held under
foreign trade, travel, planning characteristic of the Wel¬ spend as it sees fit and the people
strict control. The total operating hardly likely that earnings for the and
exchange, which comes as a fare State with its government- have no effective means by which
ratio was 8.5 points lower than a full year can do any better than natural
consequence of using an ally-managed
economy
is
the to hold it to an accounting. Even
year earlier and the all-important equal the $10.50 per common share irredeemable money—a basic tool planning of the dictator.
the power of the ballot can be
transportation ratio was cut 4.2 realized last year. They may fall of a dictatorial government in a
corrupted or finally effectively
No
just

a

third

pears

higher than they had in the

open¬

taxes

revenues

ran

points to 28.1%.

about

This

one

was

of

the lowest transportation ratios in
the industry.

The combination of

the sharply higher

and the

gross

improvement in the operating per¬
resulted in a jump of

formance

almost

100%

in

somewhat below that figure.

Even

926,528 compared with $2,095,618

would

higher foreign trade

justify

normally

prices for the common stock.

Aluminium Ltd. Slock
Offered at $65

'

For the first two months of the

half

the

story has
been considerably different Rev¬
enues continued upward
in July.
year

Transportation

costs

still

were

held under strict control—the
tio
a

just about unchanged from
ago. Other costs, however,

was

year

materially

were

ra¬

overall

higher

the

and

operating ratio advanced

than
three
points.
Taxes
also heavier, with the result
that net income for the month was

more

were

less than half what it had been in

%

Aluminium Ltd. will offer 372,-

additional

205

stock

of

shares

capital

(no pa r value) to its stock -

holders

of

19

Oct.

record

precisely

the

at

$65

eral

welfare,

people who

with

are

the

of

mass

free to vote their

with

ment

the

people's

at
is¬

purse

its disposal and with power to

.

.

.

.

for the main

bulk of such trade."

lars for this and to withhold them
from

share (Canadian) in the ratio

per

government or governmental
organization can begin to compare destroyed by a government with
in efficiency, or in intelligence, the powers obtained under an ir¬
A govern¬
"or as a means of promoting gen¬ redeemable currency.

sue irredeemable promises to pay
dollars
and
to
exchange their
organizer, director, and financier
goods and services as they think directly or through the central
of the whole process, 'i
State best under conditions of free and banking system need not count
capitalism in its most advanced fair
costs. It not only can promise the
competition and under a rep¬
forms is taking over the field of
resentative government that pro¬ people security from the cradle to
foreign trade more than any other tects and fosters that freedom. the grave but it can subsidize
field.
The day of private Producers
groups whose support it desires. It
can never obtain better
trading between nations is coming
can
throw the people's money to
guidance than that given when all
to an end; it has already ended
the winds of the world.
buyers are free to spend their dol¬
.

Sh.

a

than

intervention of the government as

for the first half of 1950.

second

State—Browder said this
.

net.: Net income

before sinking funds stood at $3,-

Welfare

earnings, however, would af¬ in 1950 (op. cit., pp. 43-44): ". .
ford more than adequate protec¬ There is nothing more
necessary
tion for the $3.00 dividend and in the postwar
development of
such

"The

that.

Buyers

can

be

never

An irredeemable currency
most

tool

potent

is the

dictator

a

can

large-scale

entry of the served as well as when they can employ legally to subjugate a
shares held. The subscription offer government into the sphere of for¬ vote their dollars as they please people. Wherever one sees a gov¬
eign trade is only another part and when producers must respond ernmentally-managed
will expire at 3 p.m. (EST) on
economy
Nov. 8. The First Boston Corp. of the development of state capi¬ to
these
indicated
preferences. one also sees an irredeemable cur¬
It is another step in the
and A. E. Ames & Co. Ltd. will talism.
Departures from this method of rency.
act as dealer-managers. No frac¬ capitulation of the bourgeoisie be¬ buying and selling inject into the
Since our Federal Treasury and
fore the invasion of the principle
tional shares will be issued.
economy inefficiency, waste, con¬ Reserve Banks can issue
promises
The net proceeds to the com¬ of socialist planning.
It is pro¬ fusion, frustration, and maladjust¬ to
pay which they do not redeem
pany
(estimated at $23,881,524) gressive—that is, it can be made ment.
'<
—except as held by foreign cen¬
will be added to general corporate progressive—in
the
only
way
Freedom of the individual and tral
banks
and
governments—
funds and will be available for progress is possible while capi¬
free and fair competition cannot they have special privilege with¬
working capital requirements re¬ talismretainsa hold on a! con^
prevail properly unless individ¬ out corresponding responsibility.
sulting from the present expansion siderable portion of the earth."
uals are free in both the political That
is
a
case
of
government
program
in
British
Columbia,
and economic world—that is, un¬ tyranny.
In
private
enterprise,
What Do We Know About
Quebec and Caribbean area, to
less they are free to cast their people are
required to redeem
Dictatorial Governments?
meet any increases in
the esti¬
political votes, free to exchange their promises to pay or suffer the
mated cost of such program and
We know that Socialism, Com¬
their goods and services for dol¬ prescribed
penalties
under
our
to provide for other projects that munism, and authoritarian
gov¬
lars, and free to vote their dollars body of contract law. One stand¬
the company may wish to embark ernments in all forms
belong to for
goods and services, as they ard of responsibility for private
the world of arbitrary will and
upon in the future.
think best.
Such freedom brings citizens and a lower standard for
power.
They abandon objective
compromise and agreement out of government agencies has no jus¬
standards for the" subjective—for
disagreement. It permits liberty tification if we are to adhere to
the
standards
which
those
in
yet enforces tolerance. It requires uniform standards of honor, have
power wish to enforce.
The only
respect for the rights of individ¬ responsible government, and main¬
effective
standard
of
right or uals. It denies to
tain
of

share

new

one

each

for

10

,

July, 1950. Even at that, the show¬
ing for the full seven months' pe¬
riod

was

was

up

In
with
ness

=

August,

comparisons

were

period in 1950 when busi¬
expanding rapidly in re¬

a

was

flection

in

highly encouraging—net

63%.

of

Korea.

freight

widening of hostilities
Neither

revenues

passenger

match the performance of
earlier.

Gross

nor

this August could

as

a

whole

a

year

was

off

14%, in sharp contrast with
the substantial
year-to-year gains
lhat had been registered in earlier

,«ome

months.
Although business was
-off, all expense classifications were
higher than they had been in Au¬

gust,

1950.

For

the

month,

the

Halsey, Stuart Group
Offers Equip. Trust Gtfs.
Halsey,

-overall transportaition ratio
soared

associates

nearly 15 points. While the

Chicago,

Stuart

trans¬

portation ratio continued below
30% (much better than the indus¬

try average) it

was

approximately

4% points above that of the like
month

a

year earlier.

Specialists in

RR.

Plan

Selected Situations

at all

Times

than

under
will

the

be

Diesel-electric

Philadelphia

secured

railroad

estimated to

$7,000,000,

cost

l/fj/Jt.

25 Broad Street

till

New York 4, N. Y.

Telephone BOwIing Green 9-6400
Members Nat'l Assn. Securities Dealers, Inc.




by

new

equip¬
not

less

follows:
15
general
purpose
as

locomotives, and 900 50-ton steel
sheathed box

group

If

Pacific

2%% equipment
maturing semi¬

wrong, under such governments,
is the will or caprice of the ruler.

Under
tance

such
and

a

system the impor¬

freedom

vidual

are

of the

of

the

indi¬

State.

sacrificed

to

the

will

include—Bear,

the

offering

Stearns

&

every

power

to

control

capacity for desire

and

the

man

another.

Man's

choice is

given free

scope,

choice is

prerequisite of moral¬

a

and freedom of

ity.

freedom.

our

If

a

government employs

redeemable
cannot

currency,

be

avoided, cthat

in the form of

is

it

evi¬

dence that the nation is economi¬

cally bankrupt.

The advocates of planned econ¬

ir¬

an

because

irredeemable

If it employs
when

currency,

an

it

be

avoided, that is evidence
ally-managed economy, character¬ of moral bankruptcy and
irre¬
istic of the Welfare State, would sponsibility on the part of
the
destroy the wholesome forces of government that employs it.
free and fair competition.
They
A
redeemable
currency
is a
would impair or destroy both eco¬
dividual freedom.
people's best and certain protec¬
Such freedom
nomic and political freedom. They
tion against dictatorship.
is man's priceless heritage.
Human
Logic,
would be dictators under the ban¬
freedom and a redeemable cur¬
humanitarianism, and apparently
ner of the "Welfare State" which,
rency are inseparable. If our peo¬
every
important religion of the
they imply, contributes to, and ple would regain and protect their
world, including the Christian re¬
fosters, the general welfare. They freedom, they will need to elect
ligion, teaches the importance of
are the enemies of every man and
to the Presidency a man who be¬
the individual.
History reveals a
constant

cars.

Other members of

JB.yt&ifiiim

&

certificates

standard-gauge
ment,

SECURITIES

Island

K,

and

$5,250,000

offering

Rock

Inc.

annually May 1, 1952 to Nov. 1,
It is a simple and well-estab¬
1966, inclusive, at prices to yield
lished fact that no social organi¬
from 2.05% to 2.925%.
Offering
zation is good if it does not, in
of the certificates is being made
addition
to
contributing to the
subject to approval of the Inter¬
material well-being of a people
state
Commerce Commission.
in general, protect and foster in¬
The certificates which are to be
issued

RAILROAD

Co.

are

series

trust

&

omy

woman

struggle

establish

individual

the
as

of

mankind

importance

of

a

government-

who values freedom.

lieves that the control of the peo¬

to

the

There appears

against that of the history in which

to be

no

case

a government

can

in

has

Co.; Hornblower & Weeks; L. F. State.
achieved lasting security for its
Rothschild & Co.; A. G. Becker
The backward slide of so many
people. It also appears that those
& Co., Inc.; The Illinois
Co.; Wm. nations of the world, including
governments which have pressed
E. Pollock & Co.,
Inc.; Gregory our own, into government dicta¬
& Son, Inc.; McMaster Hutchinson
hardest
for
security from
the
torship of various degrees is a
& Co., and
Mullaney, Wells & Co. movement running counter to the cradle to the grave have lost it,

ple's

purse

people

should reside with the

rather

than

with

an

un-

restrainable government and who

understands

that

the

currency

is

principal

means

a

redeemable

necessary

by

which

and

the

people exercise control over their

Volume 174

Number 5056

.

.

.

The Commercial and Financial Chronicle

(1475)

and,

purse

consequently,

over

their freedom.
A Recommend

•

t.

for Us to

^urse

r

ie

ciated

sharply in value and has
impaired greatly the value of peo¬
ple's incomes, savings, and insur¬
it

ance;

sits

dictator

as

at

our

international

boundary line, con¬
With the institution of a re¬ trolling
trade, travel,
and ex¬
deemable currency and control of change rates;
it is regimenting
the public purse returned to the our people; it has built dictator¬
people, we should expect to have ship into our economic and po¬
a
more
responsible type of gov¬ litical
system
in
respects
so
ernment which s' ould
end

bring to

an

the wild and reckless spend¬

that

numerous

tion.

Much

they defy

of

such

enumera¬

prosperity

as

change of goods took place with¬
out
friction under free play of
private enterprise, and when the

State confined itself to

regulations—sees today with
horror how governments labor in
vain to restore international trade

by

should

constitutional

be

return

a

to

The

government.

responsibilities appropriate to the
and local governments and

State
to

the

.be

people

returned

themselves
them.

to

insurance, aid,
be

restudied

tific

the

hope

they

by

and

should

experts

in

in

gov¬

simply re¬
damping down of all
on
the part of those

exhausted

struggle
racies.

today

largely

against

State

in

a

bureauc¬

Artificially

...

international

estab¬

finance

erty.

struction and prevention of inter¬
national transfers of capital—all

Our
has

paternalistic

not

government

only embarked

the

upon

of directing our people as
what they shall sow and pro¬

to

duce and

and at what prices

reap

these

the

on

interna¬

exchange of payments, ob¬

deprive

trade

and

tion of any basis for

produc¬

The Paternalistic State does not

provide the

to

way

and

progress

cick, the

the

dividual

incentives

and

the characteristics of
All

such

without

dictatorship.
should

programs

be

perience with Puerto Rico, over a
period of 50 years, demonstrates
our
ineptness in providing wise

issue

of

"Modern

Sales," which as
probably know, is a brand

service

for

terested

dealers

in

who

you
new

in¬

are

distributing

Mutual

Funds, has just

come to my desk.
published by Fund Services
Washington,
219
Woodward

It is
of

Building, Washington 5, D. C.
I

can

assure

that I have

you

no

interest financially, or otherwise,
the recommendation to all of

in

who

you

have

not

investigated

the possibilities of using some of
this
material, to write for a
find out

and

the

about

more

selling

the general story of
They have been filed with
the NASD. Newspaper ads in mat
form,
ideas
for
holding
sales
meetings, suggestions for assisting

ex¬

salesmen in their work and their

selling

offered.

bulletin

There is

which

It

imprint.

your

best sales talks

have

yet

entitled,
So

Many

is

the

of

one

anywhere.

It

is

Services

has

complies

of

been

with

ap¬

Washington, it

the

Statement

of

Policy of the Securities and Ex¬
change Commission.

Bankers Offer W. Va.

Goal & Coke Com. Sfk.
The

First

Tucker,

Boston

headed

and

& Co. jointly
investment
banking

an

which

group

Corp.

Anthony

Oct.

on

16

publicly 80,000 shares of

Have

People

Some of the

available.

Reasons

Few

offered

stock

Why
Bought

Mutual Funds."

Our course, domestically and in¬
ternationally, points in the wrong

material

also

and

are

proved, and in the opinion of the

with

Mutual Funds I

on

seen

"A

.

available

the

Fund

four-page

a

is

presentations,

general sales letters

cellent sales aids and ideas which
are

on

Funds.

All

sample copy of the October issue

recovery."

crippled, they shall buy and sell, but it has the degree of security which a
insane, the orphans, the dere¬ discarded as not worthy of seri¬ people seek. Progress and as much
licts, and those lacking food, shel¬ ous consideration the wisdom of security as people can properly
ter, and medical service are given George Washington regarding the hope to attain, if they are to pre¬
the care which respect for the im¬
undesirability of meddling in the serve freedom, come in the long¬
portance and dignity of the indi¬ affairs of the peoples of other na¬ est-lasting form only where people
tions.
Three wars have been one are free and maintain a represen¬
vidual dictate among intelligent
people—all without impairing in¬ of the results. Although our ex¬ tative and responsive government.
the

aged,

Help You Sell More Mutual Funds

October

Security

rela¬

tions, restrictions
tional

The

the

enterprise

lished

To

interference

ernment

sults

This continual

they control their government and
protect their freedom and prop¬

course

would make certain that the help.less

—

that

programs

government

our

ballot—by which

that

expectation

produce

can

of

currency

has deprived the people of one of
the two basic instruments
the
other being the

most scien¬

our

experienced

and

*

relief

d

a

should

Matters

able

By JOHN BUTTON

succession of regulations and

a

interference.

■

There

Securities Salesman's Corner

few gen¬

a

eral

ing, the foolis'* borrowing, the exists rests upon induced scarci¬ engaged in trade. The efforts of
crushing taxation, and the insane ties, subsidies, destruction, waste, businessmen, formerly concen¬
.dissipation of our national patri¬ war, and the blood of our boys. trated solely on the organization
mony.
Through the use of an irredeem¬ of production and markets, are
,

27

Selling Points

common

of West
Virginia Coal &
Coke Corp. at $17.62 % per share.
Of the net proceeds of the
sale,

$765,000 will be used

to reimburse
the corporation for a like invest¬
ment in its
subsidiary, Paradise

Covered

direction fundamentally. We need
to conform to the pertinent ad¬

(1) Like a Great Ocean Liner—
fitted into the four basic premises, aid to the people of that small and
"The designers of modern ocean Collieries, Inc., which proposes to
^stated at the beginning of this nearby area, our reckless pre¬ monitions of
Washington and Jef¬
engage in strip mining in Kern
.analysis, as to what constitutes a sumption of recent years is to the ferson. We need to return to con¬ liners know that any ship at sea
faces some risks.
That's why to¬ tucky. The remainder will help
.good political ml economic sys¬ effect that we should advise and stitutional
government.

tem.

And

upon

the

is

the

superior

le

to

fundamental

.that

hould

prinr-

be

that

based

volition

compulsion

ri

for

freedom

the

as

a

reason

'^appears

where

[compulsion begins.
The most inw mtant fact should
recognized
that, when our

...

■be

Federal Govern

ent

departs from

direct and provide financial aid to
all the peoples of the world. One
been

'lender,
.with

insurq

private

fields

tion,

'* n

pro

and

is

latter

•to which the pe
-from

dictato

a

1
r.

a

gov

to manage an er

■the

morals

fall below the s

individual.
-not

.the

truth

is

Subservience

rites
lis.

t:

on

Collective

rt

ma4

violation

of

govern¬

haracteristic of

the "Welfare F

'

trated

nment

in

our

f

by the methor'

c

so-

that is.involw
Of giving aw°*
takes the ©the
he

as

sees

f;A

that Robin Hr
social security
and

other gov

giving
The

away

C

Long-R

•:

e

robber who

>

is much

cedure in
ms,

of

our

subsidies,

^ple's

money.

Plications

of

Measures

lications

they be-

easures

-

of
are

charac-

uor
"

teristics of f

'—that is, of

listic State
nt dictator-

In

lead
State

our
our

it

goT
peo"

has

the

people's
huge bureauis

dissipation

inflicted anir
on

wise

abandon,

admonitions

of

to the appro¬

of

scope

Government.

The

our

errors

cause

have presumed that

we

we

our

peo-'

*7

efforts

♦he

->ssession
Ms
*>s

to

Welfare

built

of
a

been and

in

need

We

sound—that is, redeemable
We need respect for
Golden
Rule
and
the
Ten

Commandments.

We

need

intel¬

in gov¬

men

ernment. We need political parties
which will recognize that the first

obligation of themselves and their
candidates

is

that

they

be

right,

We

need

verities

adhere

life

of

take

to

to

the

if

the

to

great

people

our

which

course

are

In

time

cannot take

us

where

wish to

we

international

relations.

It

is

a

mania not unlike that of the Cru¬
sades.
a

At home

have reached

we

state of affairs that caused the

Communist Browder to state that
we

We

farther

are

cialism

than

advanced

in

So¬

is

England—and in
principle Socialism is but a slow

fuse

for the

dictatorship of Com¬

munism.

knees.

The

planners

talk

much

of "one World" while

which

not

the

of
we

are

showing

currencies

use

of

and

otherwise,

the

save

and invest, and develop and fight

die, to

pass

to

on

pursue

pleasure and profit,
a

reality.

(2)

Says he (in his
Gerald Duck¬

worth and Co..
p.

3): ".

.

.

is involved

crisis

us

a

great

to^°v in

v~eos

and ecomr~is+-

a

permanent

all

politicians

^'ghting for breath.

those

who

mternational

ex¬

Year—"Four

of

checks

from

fees

and

After

man¬

operating

ex¬

Management
bonds

has

"An

—

who

experienced
stocks

owns

choices.

two

He

devote quite a bit of time to con¬

River

Company, is the

common carrier in point
tonnage on the inland water¬
ways in the United States.
The

of

sells coal to diversified

company

industries

and

retail

dealers

for

use

principally in Ohio, Indiana,
Michigan and the Great Lakes
area.

•

,

Dividends have been paid on the
stock in each year since

common

1941.

The

dividend

company
of

30

has

cents

paid a
share

per

in every quarter since March
1948
and has disbursed an extra
div¬
idend in each df the
years 1948
1949 and 1950. Total
payments i:
were

$1.70

far in 1951

share has
Total

and
can

Ohio

largest

1950

Continuous Investment

investor

subsidiary,

The

investments

year."

(3)

country's 29th largest producer of
bituminous coal. Its

per

share.

Thu.

total of 90 cents
pe

a

been

sales

paid.

in

1950

amounte.

to

$21,997,000 and net income
$1,639,000.

wa:

recognize

such

no

re¬

for a loan at any bank)—Which
Fund is best for you?

Suite

the

of

Hotel

Waldorf-

Astoria, New York City. Harold
indifferent or thoughtless or are
Any salesman who has studied L.
Bache, senior partner, and
busy undermining and dissipating and used the ideas for presenting Robert J. Sullivan, Club Presi¬
Funds as clearly and simply as dent, were speakers at the dinner
our priceless heritage.
sponsibility

and

who

are

either

they are given in this little which was followed by a program
Each member
pamphlet could probably improve of entertainment.

New York Stock Exch.

his

Weekly Firm Changes
The New York Stock Exchange
announced

the

following

changes:

by the Exchange

on

Oct. 25.

Transfer of the Exchange mem¬

bership of the late Bernard E.
Hyman to Joseph F. Gleicher will
be considered

on

Oct. 25.

With Rockwell-Gould
ELMIRA,
Monroe

N.

has

Y.

—

Edward

become

159-167 Lake Street.

r

a

the Fund sends you

year

The company's 1950
production
2,871,000 tons ranks it as the

.

War—when

t*

in¬

of

stant study of the market so that
and freedom
merely
Bache Quarter
he'll know what to buy, what to
Century
squandered and dissi¬
sell and when to take such ac¬
Club Holds Dinner
pated by an unworthy generation.
tions, or he can employ profes¬
The eighth annual dinner of the
Every person who appreciates sional
investment
counsel
who
Quarter Century Club of the New
the importance of the freedoms
will attempt to do that for him."
York
Stock
for which mankind has struggled
Exchange firm of
Other selling points covered Bache &
Co., comprising 84 men
throughout the ages owes it to his
are: A chance to
keep pace with and women on the staff of the
forefathers, to this generation, and
inflation—Like ready cash (Mu¬ firm for 25
or more
to posterity to do all within his
years, was
tual Funds are excellent collateral held
Oct. 10 in the Perroquet
power to
save
this nation from

Ltd., London, 1950,
All international trade

which

different

that, if the Fund profits from
buying and selling, you may get
additional check at the end of

selling technique considerably.

Note

L.

affiliated

number

you use

would
direct

3

it to set

Co.,

Inc.,

up an

enable you to
an
interview.

choices

couldn't

idea which

control and
Why not

time

of
a

the club

was

the

recipient ol

gift of mutual fund shares.
Seventeen members of the staf:r

reached

their

during the

year

25th

anniversary

and last night

re¬

ceived pins signifying membership
in the club.
The new members

they must make? who brought total membership tc
either devote quite a bit 84, are associated with various

which

can

to

constant

study of the

offices of the firm—nine with the

they will know New York City offices, three with
what to buy, when to buy it, and the San Antonio office and one
when to sell if, or they can em¬ each in the Albany, Buffalo, Chi¬
ploy
professional
investment cago, Kansas City and Philadel¬
counsel to do these things for phia offices.
The longest service record is
them."
For
your
advertising needs, held by Noah Niedenthal, who has
market,

so

that

"Modern Security Sales" has pre¬
pared transcriptions of radio spot
announcements

Rockwell-Gould

above:

say, "Mr. Investor, isn't it true
that all investors have two broad

of

dictatorship.

over

to

ered

and

you

deducted you get your
proportionate share.
In addition

seen

the

.

penses are

They

has

in

it has made for you.

to Gordon B. Leib will be consid¬

men,

.

varying amounts. The
receives many dividend and

Fund

He,

evils of government
management,
with
its
irredeemable
currency

a

checks

by governments today.

per¬

Fund,
your'; investment

Four Checks

times

haps above all

international

.

dustries which helps to reduce the
risk element in any investment.

Transfer of the Exchange mem¬
bership of the late Sidney F. Ward

the

safe

are

Mutual

a

companies

many

planning

about

others

quality and
quantity of mine output at Omar,
West Virginia.

have it

has

We should note with profit what
Dr. Hjalmar Schacht has to
say

leak, the
section is damaged.
a

to enlarge and modernize facilities
which will increase

patrimony

to

operation of the endless ingenuity
of private enterprise which, when
make "one world"

in

spread

ourselves

great heritage of
the trustees. Past

irredeemable

the

share

the

generations, did not work and
and

If something

an

they impede,

through

are

worthy

of

composed

causes

one

the

all

agement

The paths to the Welfare State

are

the big ship keeps going ahead."
"When you buy as little as one

and other nations.

government dictatorship.

our

in

cargo

But

that

interest

our

rampant, domestically and in

happens

should prove to be wise, safe, and
in the best interests of ourselves

more about the
consequences go. They lead to the darkness and
meddling in the-affairs of other destruction of freedom inherent in

people than did Washington.

day's big liners

many small sections.

not that the candidates be elected.

has




market

a

with

depre¬

to

—currency.

Anyone who l"m 1 through those
happy days b~^o the first World

it has

the

place and in all other forms.

le currency

lth;

and

know
of

"Gold for Euroue,"

ship.
•

Federal

t'lending and free to

Welfare

that

part

's purse to use

lomi-

our

in

mople's money

Oiir Welf-

The

•

similar

^ad.

are .not
-what
if anyt

is the liberal!"*

George
have we, with like

so

and

the

of

In
international
The peo¬
affairs,
the
?d to decide planners are indulging in a circus
they wish to with the world as their stage and
foreign coun¬ with our people's purse an inter¬
1 "Liberalism" national grab bag. Private enter¬
"us procedure prise has been brought to its

-people's savin

tries,, The

That is illus¬

to scatter the

ple.

give of their

soon

robbed by
the robbers

m

and

a

attempts

and people,

are

dictatr

thievery
ment

ignored

a consequence,

to share in thr

of

foolishly ignored

the

governme

the

so

admonitions

plunge into Paternalism,
dictatorial planning for others, by those who
wish to direct others, has become
wgages in col¬

sV

of those v "

to

have

we

wise

func¬

the latter may

government sc
lective stealing
many

As

the

can

onlicable to the

The

legally

before

never

in the history of this nation.

seen

foolishness

rernment

freedom

We need

foster

ligent and honorable

world—certainly

those

iment
my

o

to

the

hvors to

who; r
.objective stand
When

fool¬

and dangers revealed in ignoring
apply the wisdom of Jefferson seem to
match those that are apparent be¬
'i of justice,

•'

;umpire

j

man¬

a

protect

and

the

arbiter Thomas Jefferson as
can appeal for priate functions and

a

our

has

respect

ishness and recklessness probably
never before seen in the
history of

in

nnot be expected
is the neutral

policy

wealth with

our

neutral

v

justice. Justice

manager,

this

dissipation of

and

competitor Washington,

mprise

r

where th

there

c e r,

the

power

its proper functMn as umpire and

-becomes

of

consequence

to

four

one-minute

which

radio

been

with

City

offices

present Niedenthal,
commer¬

cials that do an enthusiastic job of

the

firm's

for
a

47

New
years.

registered

York

Mr.
repre¬

sentative of the Wall Street office,
celebrated his 63d birthday Oct. 12.

28

The Commercial and Financial Chronicle

(1476)

Continued

from

to get

Progress in the Aii
Transportation Industry

authorizations unless it does stand

system

13

page

the test of those yardsticks.

the military transportation such that that 53-cent rate is not
started, and continued to far out of line. We do insist, how¬
operate that program until the ever, that fair consideration be
Air Transport Command was de¬ given our costs and that fair con¬
veloped and grew to an extent sideration be given our stockhold¬
where it could take over.

ers

take out

attract

-

.

yet we have absorbed in the years
intervening a very substantial in¬
crease
in cost by more efficient

better procedures,
efficient equipment.
We
been able to absorb those

techniques,
more

ihave

increased

sales

prices

than

a

the prewar
have ever

at

return

greater

still make

and

costs

we

be,
with the along. Within 36 hours, the air¬
thought in mind that perhaps I lines were back in business
again

might

questions
could

in

first

out

them

toss

my

words and then answer them

own

the

punch

embarrass
or

me

We did arrive at two or

form.

things

three

.

that

think

we

are

our

Rates and Costs

the

trends

if

to offer

We have

ket.

that

to attract a

we are

uct at lesser

got

same

our

prod¬

them.

increase
I

would

about

matter of

a

had 66 air¬

we

known to me,

airlift

our

the Korean

continues.

still

The

66

airplanes have shrunk because the
has

need

lessened; and the mili¬

like

to

reassure

you

point, and that is about
cutting costs. I would like to em¬
phasize just as strongly as I can
the fact that no company that I
know of in our industry has ever
attempted to save a nickel at the
expense
of safety.
I think our
record proves that.
Whereas, you
do read in the papers occasionally
©f an airplane accident, the sta¬
tistical
ratio
has
been
coming
one

too

inclined to steer clear of any

discussion

on

this subject.

Well,

maybe we are foolhardy in our
approach to the thing, but I have
been out

on

this circuit

our

over

system for the last couple of years
talking
principally
about
two
one being safety, and the
being subsidy.

points,
other

return

as

investment

on

clearly indicates that air travel is

7.4.

That

is

comparison we use
for two purposes. First, more peo¬
ple use automobiles than anything
else.
Secondly, it's an awfully
good statistical comparison from
©ur point of veiw.
a

Safety Factor Improved

Actually, it is quite remarkable
how

the

creased.

safety
We

factor

has

in

Capital—and
certainly true of the rest of
industry—intend to develop
future along that same line.

in¬

it's
the
our

,

Aeronautics

passed,

the

Act

Post

of

1938

Office

was

Depart¬

had

many

as

the

at

moment

tinues to operate one. That,

in it¬

tary lift
military

requirement

transport

itself

gear

up

have been before; and com¬
ing out, in effect, another one of

the operators on

ciently to take

Jet

Question of Mergers
talk
For

while

a

time

every

it

a

seemed

picked

you

though

as

up a news¬

paper, whether it be general news
or trade
paper, you could see how
else

someone

to

way

ital.

had

carve

I

like

right

now

that

great

deal

of

to

tell

a

interest in
We

you

have

don't

we

those theories.

out

and divide Cap¬

up

would

figured

a

of

most

thoroughly
in accord with the basic thought
that

we

are

operating

are

overall

an

picture

We think that the CAB is

con¬

attempt to do just that—to

an

modernize,

solve

to

the

of

some

problems which exist in

of

some

the

have

feeling

reached

now

word

"investment."

the

point justified
where emphasis needs to be
put, national

perhaps,

more on

service.

I

won't

have arrived at

a

dependability of
say

we

feel

we

sufficiently high

has

when

defense

been

airlines

you

to

a

real

the

I

come

aspect.

payoff

nation

the

think

moneys spent
them are concerned.

as

it

to

airplanes suffi¬
is clear jus¬

that has been put into our
and which is so loosely

We know that if
tic

about

it

look

at

realis¬

are

take

and

constructive

we

the

the

same

overall

picture, that certain things should
subsidy.
be done. We think Capital is in¬
Actually, I think it is rather in¬
volved.
Those things can be done
teresting that this year of 1951
in one of several ways.
It can be
has seen a
development within
done by merger, by acquisition, by
all of the carriers—the trunk car¬

1950,

payment received

our

from

the Post Office Department

was

$3,816,000.

months

the

of

In

which

1951,

have

more

and

being an estimate, we
anticipate
receiving
any
$1,400,000. That $1,-

than

400,000

represents

what

classification of carrier is
than the service rate.

pared with the air transportation

picture

back

for

our

no more

,

the

a

far

as

revised

should
We

in,

to

determine

as

1936

and

1938,

I would like to remind you of
something: The Civil Aeronautics

Board

has

consistently

many

of

th e i

look,

they

r

to

that

to take a

propose

whereas

and

added

releases
they

may,

through the medium of showcause orders, attempt to persuade,
that
have

actually under the Act they
no legal authority to enforce

any

type

of

proposal

unless

such

and

as

I

provided

parties involved

concur and
along. So, certainly, that is

for

the

several

carriers

large

a

of

protection as far as
forced
to
do
something

measure

permanent

of Oct. 1,

mail

rate

to

be

classified

as

a

do

increase

the

we never

class 2 carrier for which the Civil

in

dependability,




the personnel and

the equipment

and the volume

that

we

carry

is

could,

we

stick,
or

be.
are

If

what

developing Aeronautics Board feels 53 cents
First, in World a ton mile would represent a com¬
could do that; but the
safety factor War II, we, without any hesita¬
pensatory service rate of mail pay.
is such that we could devote a
tion and immediately after war
We in Capital don't propose to
good bit of attention now to de¬ was
declared, jumped into the pic¬ take too great issue with that.
pendability of service, and as we ture—the airlines—and supplied We
think that our costs are such
degree of safety, because

do.

reasons.

jet

the

of

some

business

First,

take

jets

people

There

in

The

our

several

are

don't

we

available.

Canadians

don't
about

I

view

have

British

a

and

have

developed a jet
transport with attendant ballyhoo
and
publicity which looks aw¬
fully good when you read about
it and read what they are doing

But

it

they

you

stop to

ana¬

you find
that
long way from the an¬

are a

swer.

if

carefully,

.

,■;.

Neither

the

of

airplanes

have

sufficient range.
Neither of them
can
be
operated
economically

to

justify

other

than

enough

thing

don't

items

that

any¬

subsi¬

there

those

of

in

100%

At the moment,

believe

likelihood

them
a

is

being corrected within the

very near future.
We have one or two other
lems.

that

any

particular

Assume

had

we

would

for

the

test

far

as

and efficiency of

economy

prob¬

moment

jet transport that

a

meet

the

as

opera¬

tion
is
concerned.
A
jet
air¬
plane is efficient only at what we
would

consider, from
normal
viewpoints,
extreme
altitudes.
You have to get them up to 30,000, 35,000, 40,000 feet before they
really start to function and real¬

ize their inherent

tually,
in

have

we

this

efficiency.
very

routes
could
be

that

country

Ac¬

few

transcontinentals,

will go

You know, I am sure, that the
Civil Aeronautics Board who con¬

proceeding

jets.

veloped.

the

a

the

about

optimistic

operated on that basis.

mentioned,

CAB Survey of Mail Pay

in

to how

as

when the present system was de¬

eight whereas

gone

rest

don't

is

There

by

think

the
that

dized operation.

called

In

asked

am

going to be in opera¬
Well, I will tell you what
are

I

meet

present-day stand¬
ards and overcoming some of the
problems of the carriers.

over,

go

our

jets

tion.
I

Planes

vised

to

and

subject of equipment, I
perhaps more than any¬

thing else, I
soon

structively surveying the situation
in

developed

the

think

great deal of
subject of merger.

the

on

be

the

reserve

constructive

a

tem strengthened materially.

On

There has been

could

carriers, and to emerge ulti¬
mately with a sound system re¬

tification in my estimation of the
money

is

component parts of that sys¬

service rate.

a

—

we

system

can

until

system

by using its

its mothball

and

it

the

ever

as

con¬

of

years

be expedited and should come to a

No ment has recovered 93% of the trol and
supervise our operation being
has been spared, nor will money it has put into airmail pay¬
have recently completed a detailed against their will or
against their
it be, as far as the improvement
ments—and in the next 18 months analysis of the needs of the
big best interest is concerned.
©f operational procedure is con¬ will
undoubtedly recover all of four carriers and have come up
We try to
be pretty realistic
cerned, and as far as the devel¬ the money it has put into the air with an
agreed-upon service rate within Capital. We have taken a
opment of additional aids is con¬ transport industry.
for those carriers which became
look at that part of the airline
cerned.
In addition to this, this country
effective July 1.
; i
system'
which
affects
us
most
In that respect we see electronic
has without question the finest
I am sure you also know that
aids coming into the picture which air
closely, or those parts with which
transportation system in the by show-cause order issued last
we
come
in contact.
We
have
are going to substantially
improve world. You need only to look at week
they have just opened up made a
not only the safety of
study—and quite a few of
operation, the efforts of other nations, and the mail
rates,
the
remaining them
but also the dependability of it. it
taking different assump¬
actually takes no comparison, trunk line carriers simultaneously
tive bases as the premise of the
At the present time,
we
are because it is obvious.
coming up with their own idea
study.
We know that there are
operating as an industry slightly
In so far as the postal service as to how a
separation of com¬ one or two
over 98%
mergers which might
of our scheduled mile¬ and the commerce of the
country pensatory
rate
from
subsidy be
very much in the public in¬
age, so you can see that the prob¬ is
concerned, you have the best. should be effected.
terest and might be very much in
lems that go with weather actu¬ You
have
an
industry that is
They have classified the car¬
Capital's interest, and when I say
ally don't affect too much of our sound, is still developing and is
riers, and for each classification
"Capital's interest," I mean the
operation at this time, and we meeting the public requirement.
they have arrived at what they
interest
of
the
can
get into these more highly
corporation, its
But we take issue completely consider
to
be
a
compensatory
technical developments. It is that with the use of
the word "subsidy" rate. I think there are ten of us personnel, its owners, and also the
2% that is going to shrink as well. and
public we serve.
propose rather the use of the involved who

Actually, it is

that

fact

lyze

has

going

are

amount

reasonably fast conclusion, cer¬
tainly in better shape than we

expense

that

the

with it.

three, and

we

along those lines, because other
carriers, like Capital, recognize

is outdated and badly needs mod¬
ernization.

carry

that

considerable

activity in the next several

the whole load, but we
still have 28 airplanes in service.

to

by

plates that moneys will be paid
to develop that system. Likewise,
it contemplates that for that mon¬
ey the government and the people
are going to get something.
We think you have gotten some¬
thing. Admittedly, a great deal
of money has been poured into
the development of the air trans¬
portation system by the Post Of¬
fice Department, but I would like
to tell you that since the Civil

believe
a

national network of airlines which

a

the government, commonly pay, or mail pay which contains
called subsidy, for the develop¬
relatively safe.
any element of subsidy whatso¬
Actually, the statistics run 1.2 ment of a strong air transporta¬ ever. That is true as much for the
deaths per 100 million passenger tion system in the
interest of smaller carriers as it is for the big
miles. You compare that with the
commerce, the postal service and ones. Again, I do use Capital as
automobile, for instance, running the national defense. It contem¬ an example.
about

do
see

approach to a rather serious prob¬
lem and that a stronger national

Admittedly, it has been a prob¬
lem to us, so we chose to meet
the problem head on and try to
down each year greater than the
get our thinking out on the table riers—and when I keep talking consolidation, through the medium
of
interchange
agreements,
all
where people could understand it. about
year before> to a point where our
carriers, I am talking about
designed to consolidate the over¬
To begin with, the Act under
fatality rate at the present time is
thq scheduled, certificated car¬
we
perhaps as low as it has ever which
operate — the
Civil riers, in that there is an increasing all picture and bring it up to meet
been.
By comparison with any Aeronautics Act of 1938—makes lack of dependence on the part of the requirements of air transpor¬
tation in this day and age, as com¬
other form of transportation, it particular provision for payment
the scheduled industry for mail
.

I

to

little better able

tary has been

Capital

reasons un¬

many

call

We

airlift—it

generally seems to
self, the ability of the scheduled
be a somewhat taboo subject. Too
carriers to move quickly into the
fares rather than many of the people in our indus¬
picture and to take over the mili¬
try in my estimation have been

reduce

can

Subsidy, for

For

months,

military ships, so we were
doing about a three-to-one ratio
of jobs.

The Question of Subsidy

prices to the public.

So, I think that we should look
forward and plan as intelligently
as we can
toward the day when
we

sort

to in question form necessarily, but
line merely as items in which we think
greater mar¬ there is some general interest.

certainly

have

toe continued along

discussed, and I would like to
of throw them out here, not

is

I think that the tendencies and

military.

about six

I might beat you planes in service that did the job
and you wouldn't or the
equivalent job of some
in any way, shape
190-odd

pretty generally talked about in
industry when our industry

been able to before.

for the

in my own way.
to

far

so

Even
throughout the war, in is concerned.
continuing this, the nucleus of
However, we anticipate going
the Air Transport Command was into this
proceeding, which should

the inconveniences and derived from the scheduled air¬
them. We have to, of
the annoyances, we feel, again, lines.
In itself, that represented
necessity, continue to cut costs.
that we will attract a considerably a
pretty good return on invest¬
Our costs have risen. The costs
greater market.
ment.' :
■' V ■ •'
5:'"
of operation have risen just as
We were talking
on the way
After the war we went back
havq the costs of every other
up, again, as to some of the things into our normal
business.
r
every-day oper¬
that you
people would like to
Peculiarly enough and for sev¬
ation, continued to expand and
eral reasons, we are still selling hear about, trying to figure out or grow in a healthy manner until
anticipate
what some of your June 25 of 1950 when Korea came
our product at prewar prices and
to

Thursday, October 18, 1951

...

reach

more

would

using

that

with

agreement

carriers,

voluntarily

in

we

yard¬

zation.

based

However,
on

before

no

giving
any

of

it

peti¬

authori¬

has

to

be

that yardstick.

have

We

have

necessary

no

interest

thought

up

our

any

of

cities

and

we

whatsoever

of

routes

or

our

or

to Miami—there
but

any

of our

are

comparatively

a

few routes,

few.

So, in
itself, the jet plane at the present
state of the art, would be ineffi¬
cient

for the average carrier to
contemplate using.
Another perhaps equally impor¬

even

tant

fact

that neither

is

facilities

our

air¬

terminal
designed to take air¬

system

ways

are

our

nor

planes operating at those speeds.
I
am
sure
you
have all expe¬
rienced delays here in the New
York

Chicago, Washington,
the larger cities Where the

area,

any of

volume of traffic is such that the

facilities
their

available

utmost

to

them

in

conditions,

instru¬

conditions.

ment

Well, that is
airplanes, cruising
in the neighborhood

present-day
somewhere

miles

300

of

taxed

are

handle

to

weather

bad

down

to

an

hour,

ranging

160, at approach

speeds

considerably lower than that, and

certainly not capable of taking
anything that is "going to operate
an

hour and

approach at about 250.

So, if we

at

400

miles

500

or

have

to

were

efficient

jet plane today,

a

its

to

as

tion, why,

cost

of

opera¬

just couldn't fit it

we

into the present-day facilities.

You

spend

certainly couldn't afford to
the money that would be
to get that airplane if

necessary

the

time

only

would

be

on

you

could

fly

it

clear and unlimited

days.

Capital

appear

the Civil Aeronautics Board

tioning for the

one

Nonstop
perhaps
onestop transcontinentals, New York

Those
to

me

to

items together seem

two

put the jets back a little

have

question in my
ability of manu¬
facturers to develop a jet com¬
parable to or superior to either
way.

I

mind

as

the
I

British

know

and

to

no

the

or

that

the

Canadian

Lockheed,

job.

Douglas

Boeing—any of the three—•
do it quite simply, but it

could

Volume 174

isn't
I

Number 5056

The Commercial and Financial Chronicle

.

.

.

appropriate to do it now, and
tnat is the reason they

believe

haven t

done

There

is

it.

just

one

little

more

influence public

appreciate

it

opinion, I would
much if you

very

would spread the good word.
I think the ainine market,

item L.at goes into the
pot, and I
think you fellows might appre¬

the

ciate it

little

bolstering.

Liere

are

Let's
an

take

American

into

went

equipment

They

Airlines

as

million

$80

an

program back in

completely

airline

the other.

As I recall it, Amer¬

example.

ican

than

more

even

with

1946.

the

reequipped

Convairs

Just very recently I read
that American is augmenting that

for

airline

pretty thin.

securities,

I think it needs

think

We

several

reasons

a

that

for that

perhaps should be given
consideration, but I think not the
consideration they have gotten, or
would have

we

It doesn't

Many companies have a
good dividend record, but to have
thin

that

market

a

there

for

it

understand.

plus

be

have shows
reason

some

frankly,

we,

So, the

people that
the

as we

must

which

don't

more of

can

get talking on

the

we

side,

" effect

more

more

can

we

will" have

it

in

strengthening that market which
is

to

and our

proper for

me

up-side

a

vital thing to

very

us

development if we are to
ahead as fast and on as sound

go
a

very,

basis

as

like

would

we

go.

$35 million"

some

DC-OB's.

newer

I

sure

am

from

5

page

they

have

amortizing that loan, I think, not
according to schedule, but
slightly faster than scheduled.

only

The
hold

would

same

of

true

million,

the

but

undoubtedly

additional

I

$35

imagine

can't

j American in its corporate wisdom
,

embarking
million

additional $35

upon an

capital

it

if

program

| thought for a minute that within
the normal amortization life there

jet planes in the picture. So,

were

I

think

would

pretty
one

that

that

indication

good

is

that,

a

as

the biggest carriers in the

of

business, American doesn't antici¬
pate

within

jets

what

life of these airplanes

just signed

be

that it has

Program

like

add

to

one

more

item and throw it into the pot.

personally think that there is
intermediate

airplanes

step

I
an

between

which

have

turbo

airplanes

prop

-

much greater

a

ciency than the airplanes
using

kind

the

same

you

effi¬

we are

but don't get

now,

into
that

up

do with the true jet.

of

problems

Incidentally, most of the new
airplanes presently being deliv¬
ered

been

have

they

be

can

designed

type

that

so

the

from

converted

conventional

reciprocal

of

engine to the turbo-prop.
when

As to

I

personally think we are
going to have jets, I think it is
going to be a matter of five to 10
years before we see them in oper¬
ation.

I

going

to

that

think

first,

then

to

have

carriers

keep

see

with

up

the

and

try to adopt an air¬
plane that isn't designed for the
operation to our particular prob¬
lem.
If there
would

items that you

more

are

like to

discuss, why, I

possibly

a

Far

During this period it will be—or
should

be

for
the
United
States to
agree
to any
cease-fire agreement which would

give

tactical

Russian
If

impossible

—

Chinese

and

these

countries

position

where

un¬

questions.
But, before clos¬
ing, I would like to add one more
thing; I assume you fellows have

the

our

business

here

or

today.

I

you

have

feeling that you want to try

and learn

a

little

bit

about

more

then

That being the
think you have a

I

responsibility
think
more

you

that

it.

I

acquire
average

if your interests lead you
point, then I think you

responsibility to

a

missionaries in
that

with
can

knowledge than the

person,
to

have

along

if

that

you

can

our

do

become

behalf.

a

job

I think

of selling

air transportation.

left

are

they

can

in

in any way, shape
that it is sound business,

regard

a

tion

later

to

cease-fire

invita¬

an

as

disaster.

A great deal

cease-fire

and

or

form

has a rightful place in
then I think I have

picture,

earned

pay today, but I will
know it if I start to get a dividend
my

when you do a little

And, in

so

far

as

selling for

you are

us.

able to~




money

authori¬

last fiscal year, which

ended June 30, was $54 billion.
The amount requested for the

defense authorities in the
fiscal

for

present

is

year

$67.6 billion.
This
$50 billion in orders

about

goods of

sort

one

be

and

important than

more

be

on

basic

startlingly
am sure

fense

construction

next

construction

gain.
seems

more

is heard of the

though

even

ar¬

want

a

Moscow

trouble

The

Defense

reduced

Program

Another

reason

nature,

has

in

for

misunder¬

been

rate

a

of

$54

billion

will

be

reached,

according to present
schedules, in the second quarter of
the year.

'

«

•

The Elections
You

will

from

see

timing

and

was

substantial

expansion

quick
sums

this

alike

discus¬

for

an

consumers

the

goes

actual

de¬

next

up

see

in addition that the
have

sub¬

a

disposal, against which orders will
months.

appropriate

last

war

Korea.

regimes rely

And

both

since

heavily

United

States

is

vicious

a

and

imperialistic country, it is hard to
see
how a cease-fire would help
them with their internal problems.

Might Moscow

In What Respect

Or Peking Be Interested in a

Cease-Fire

in

Korea?

There is only one way in

which

cease-fire might interest Russia.
That is the conflict it would cause
a

between
some

the

United

and

States

of its potential allies.

New
election
compaigns
are
coming up in Europe and they
may change the
constellation of
inner-political forces. The position
of

India

is

also precarious.
Mos¬
feel that peace negotia¬

may

-

Korea

would

strengthen
in

forces

these

countries, and put new difficulties
in the way of military alignments
with the United States.
cal move,
feel
that

a

tacti¬

therefore, Moscow might
in

cease-fire

a

would have political
other

As

Korea

advantages in

areas.

This

in the next six to nine

leads

naturally to the
domestic political factor. An elec¬
tion

is

us

coming

up

next year.

We

do not like to believe that politics
are involved in such fundamental

questions
be

less

Apart from this,
\

would

a

give

cease-fire in

as

defense.

We

kong,

a

the

cnance

to

greater

now.

What Is the Conclusion From This

Discussion
I
a

would

be

cease-fire

About

Korea?

*

the last to say that

is

completely, impos¬

sible.

And if it should develop it
would have a.temporary impact

on
a

psychology, which might have
considerable

importance.

Such

be

for.

below

result of

the

on

continued
of

use

scarce

will

ers

no longer buy
anything at
price. But I want to point out
to you that marriage rates are still
high and that income is still go¬
ing up.
Moreover, the replacement mar¬

any

ket for autos and all kinds of
ap¬

pliances is still big.

The average

age of cars on the

ple, is still

a

road, for exam¬
lot higher than it waa

The

prewar.

consumer inventory
appliances is also above
average in age, and this indicates
a good volume of
replacement de¬

of

most

mand

.

With

income

supply

rising, and the
appliances and autos*

of

limited,
begin to

inflationary gap wiH
again. Not a big
one, as during the last war, but
a gap big
enough to act as a stim¬
ulating business factor. Its conse¬
an

open up

quences will be as follows:

(1)

Price

pressures

will again,

be upward.

(2) Soft lines—textiles, apparel,
etc.—will

helped

for

by

purchasing

a

the

first

growing

time

be

excess

of.

power.

(3) Consumer buying, which has*
lagged now for most of the year,,
will

again

become

sive-

7.

more

aggres¬

■

Conclusions

ever,

Congress was appropriat¬
didn't stop to count up
the time it required to tool up war
plants and actually get the De¬

there
be

fense

spending.

are

but

Program

the things

about

underway.
Here
that should be un¬
the

Defense

billions to

staff of Continental Securities Co^

spent before the next elections.
Very few markets will fail to re¬
ceive a big volume of new defense

Inc., Peoples National Bank Builds

are

No

Pro¬

billions

and

First of

is

a

very

large

sum

MINNEAPOLIS, Minn.

are

indeed.

in

a

There will be

a

expand their plants or buy
tools, or otherwise pre¬
for a later effort.

pare

some

economists

decline next year.
mav

not

be

believe

ciated with

it

Mitchell
man

Francis I. du Pont fk

&

was

Mr-

formerly with Kal~

Company, Inc.

Olsen, Donnerberg Adck
(Special to The Financial Chronicle)

ST. LOUIS,

Mo.—Otis O. Gill-

worth has been added to the stafi!
of

Olson, Donnerberg & Co., Inc.*

418

Olive

Street.

Witt H. L. Robbins
(Special to The Financial Chronicle)
*

will

another big increase,

Ken¬

Co., 607 Marquette Avenue.

sub¬

I'll admit there

—

neth A. Mitchell has become asso¬

good level of profits to most

businessmen.

machine

A'

(Special to The Financial Chronicle)

Spending

all, there

V

Francis I. du Pont Adds

Second, there is the amount of
stantial volume of funds available
orders placed.
Placing of orders
for
new
plant
and
equipment
is done by the defense establish¬
ments and has quite an impact on spending; it should also be easy
for most companies to sell new
the economy.
Companies receiv¬
ing these orders may not produce capital stock issues.
Such spending has made a new
any
defense materials for some
time to come; but in any case they record this year. That may be why
will

ing.

Serious Drop in Capital

gram.

concen¬

example, would be in
danger after a cease-fire

the

with this money.

ing,

Chinese

for

will

But this won't

tors and other durables. Consum¬

would

Some
of the
pessimists insist
different
kinds of defense money which you there will be a big drop in spend¬
trate
more
forces
in
Southeast
are
compelled as businessmen to ing for new plant and equipment.
Asia.
British experts in the Far
I am convinced they are wrong.
East already feel that their posi¬ keep track of.
The
rising
trend
of
defense
tion in that area would become in¬
First, there is the amount that
creasingly insecure if a settlement Congress appropriates, and which work, and the high level of civil¬
ian production, will again bring
were
reached in
Korea.
Hong¬ will sooner or later be spent. This
communists

production

1952

materials.

than

money

derstood
Korea

in

I do know, how¬
that placing of orders has an,
I stated .my views at the begin¬
impact on individual markets. If ning of this
run
these fears may be justified.
talk, so I will merely
But I said at the time, and I repeat there is an order for experimental sum up:
;
-£•••••'' '■. '
aircraft, that makes demands on
now, there was no reason to ex¬
Next year will be a good year.
pect shortages of durable goods in engineers and technicians in the
Sales, prices, and production wiH
the Spring of this year, as so many development stage, and will lead
to employment of labor and con¬ average higher.
people did.
sumption of raw materials only at A An expanding level of defense
In this sense there is an analogy
a much later date.
But if there is activity provides a foolproof guar¬
with the fable, of the boy who
antee of high level activity. The
an order for wool fabrics, or cot¬
cried wolf.
At first, his parents
ton fabrics, or something else that Defense
Program, in fact, will
and friends came running to his
probably be expanded.
can be produced quickly, employ¬
aid, only to find
that he
had
ment and mill activity is stimu¬
My recommendation to you fet
fooled them. Finally, when a wolf
lated immediately.
Furthermore, to make the most of these favor¬
actually did appear no one would
producers
immediately
go
into able prospects.
Don't let doubt,
pay any attention to his calls.
raw material markets and buy the
and uncertainty undermine youx
The speculation and the exces¬
necessary supplies;
and this has thinking. This is the time for ag¬
sive buying that took place last an immediate
impact on prices.
gressive and constructive planning.
year counted on shortages and a
Cynics have said for many years
stimulus from the Defense Pro¬ that
any
administration
with
With Continental Sees.
gram that could not possibly begin money to spend can improve its
(Special to The Financial Chronicle)
to
develop until late this year. chances of re-election by stimu¬
Most people did not realize this.
GRAND RAPIDS, Mich.—Ron¬
lating business during the election
They looked at the amount of period. We must remember that ald W. Sherwin has joined the*

accompanied it, and jump to con¬
internal clusions of this sort.
In the long

on

propaganda, to the effect that the

goods

year's levels.

(

in

to

be because of the lack in demand.

stantial amount of money at their

the

of armament spending.

remembered

as

authorities

of

money

and

production

be placed

scope

to
of

and

the

defense program.
When Korea was invaded, Con¬
gress

salaries

wages

with

connection

order

of

rate

You will
un¬

in

this expansion.

There has been a big volume o£
spending is ap-„ production
since
the
last
war
proximately $38.0 billion. In 1952 ended, of automobiles, refrigera¬

annual

defense

recent

another

Demand for Durables to Exceed

restrictions

year.

Is

double

show

somewhat

make way for

realistic, however, if
and Russia both have internal eco¬ and
jumped to the conclusion that we did not recognize the political
nomic problems.
These, however, manv shortages would
develop pressures, which frequently influ¬
do
not
come
directly from the quickly.
ence decisions.
'
Korean war, but from the overhead
I
have
emphasized the huge
Since that time a lot of water
causes of the political regimes and
has gone over the, dam. Many of sum of money against which or¬
and the armament programs. These
ders can be placed in the next six
the earlier views were wrong.
It
internal causes are not likely to
to nine months. I don't pretend to
was natural enough to remember
be reduced no matter what hap¬
know exactly what will be bought
the last war, and the inflation that
pens

will

Private construction, Wilson
to believe, will have to be

It will be

fense

Misunderstood

Businessmen

It is true that Communist China

be

to

seems

will

and industrial defense

year,

The annual rate of spend-1 this

one,

almost certain in the long run.

optimistic tnan

score.

Supply

apart from its sion of Defense
Program spending
impact.
Regard it that there will be a
rapid and
from now on as only a tactical
substantial increase in the actual
problem
in
world-wide
sphere, amounts of money paid out in

where

Wilson, in fact,

more

this

consumers

actually are. My advice to
is to forget about Korea as an
important business factor.
It is
a

a

He gives some
high figures, which I
are more than
guesses, for
defense construction. Military de¬
am

Durable

you

not

indications of

another

or

they

not.

may

consideration

more

to

standing

big busi¬

you

the

receive
seem

resume

convince

ness,

are fringe maneuvers, tacti¬
cal situations which unfortunately

a

to

than it is

If I have been able to

the

in

of

defense

By the first quarter of this
year, the annual rate had gone up
to $24.4 billion.
At present the

They

to

under conditions favor¬
them, at a time of their
choosing, then we would have to

it than you know.
case,

ties

amount

the

to

to

lion.

however, lie basically
of shadow-boxing.

fighting

in

any

The

available

this

find

Chief Mobilizer

ing in the third quarter of 1950,
right after Korea, was $12.8 bil¬

realm

certainties

American

be

the

the
opponents.

advantages

tions

a

flow of

in

psychological

anti

interest in

of

Power.

period, and I would be perfectly
delighted to do my best to answer

wouldn't

balance

Eastern

cow

an

and

or
three,
before
condition to influ¬

two

the

ence

discussion

is

there

derstand

itself

untrack

to

questions,
in

remember, however,
is still unarmed, that

Japan is in

then the rest of

and

Com¬

that it will be another year or two,

the
getting

struggling with ourselves to
just how soon we can.
We

beginning

is

it

lis

Joneses

the

from

Defense Program is only

own

our

with perhaps

start

transcontinental
them

must

that Japan

the

jet transports that should, in my
estimation, come through the me¬
of

We

failure

a

point of view.

previously had and gument that the Chinese

we

dium

resents

munist

able

for.

up

would

might

the amortization

called

normally

I

funds. "

the dif¬

involved

ferences

can't

seems

I

compare some of

us

behind.

And the Business Future

hand-over-fist with those
airplanes, and
they have been

money

!

Let

manufac¬

are

delivered.

I

sharp decline.

liveries, however, have lagged far

The Defense

made

'

materials

and

but

year.

They took full advantage of the
and

actual

Actual payments for defense de¬

$80 million equip¬
beautifully.

situation,

involves

will be placed in the present fiscal

Continued

dled its initial
ment

defense
tured

that American has han¬

you know

series

third

means

to

worth of additional Convairs and
the

A

spending for defense, that is the
payments made to producers as

you

get out ourselves, and perhaps the

stronger market.

a

seem

industry that is entirely on the
with good earnings rec¬

an

ord.

as

or

which

with

and

DC-6's.

earlier fieet with

is

market

29

(1477)

WORCESTER, Mass.—Walter

Zawistowski is with H. L. Robbins*
&

Co.. Inc.. 300 Main Street.

30

The Commercial and Financial Chronicle

(1478)

the

to

Continued

jrom

that

a

I Like Best

conserva¬

very

policy, retaining
finance its further

dividend

tive

earnings

to

expansion

esti¬

now

program,

mated to exceed

$2,000,000.

at present

United Corporation is

registered public utility holding
company.
Its financial balance
sheet
is
extremely simple.
Its

(5) Balance sheet position: Cur¬
assets of $8,827,000
(as of

exceeded current
over
$6,600,000.

1950)

31,

by

Equity per common share was
$14.24. However, the plant ac¬
quired from the government is
valued at only $500,000 on the
based

and

books

cost

on

re¬

or

interest

and

dividends

approx¬

$3,000,000 or 21 cents a
after expenses. It
is the

imately
share

intention of the

announced

agement to pay
such

all

of

of

earnings in the form

in

beginning

and

1949

this amount.

cents has been

paid regularly. The

(6) Capitalization: Except for a
small subsidiary preferred stock
issue
($360,000 as at Dec. 31,
1950), the company's capital con¬
sists of 624,000 shares of common

next

can

funded

no

indebtedness.

:

or

bank

'»

~

York Curb

Exchange at about $27

share.

per

been:

since

1944

Price

for

range

1951

High 30%, Low I6Y2;
(adjusted for 2 to 1

split in 1946): High 53 (in 1945);
Low 8V8
(in 1949). The high in
1945

achieved when

was

only 78c

were

in

due

earnings

share and

per

payment

be expected in

December.

of

There is

special reason for the
of the word "equivalent" in
above
paragraph.
United

use

the

a

Corporation was formed in 1929
acquired its assets at the in¬

was

part to unwarranted and
stories that exag¬

values

flated

therefore

of

has

that

period.

its

on

books

It

un¬

realized tax losses of $105 million,

equivalent

$7

to

share.

a

These

losses

can
be used each year to
offset its regular income and any

atomic

energy

pro¬

worth
tired

is

turn

small

and

net

earnings

after heavy excess profits taxation
moderate (price-to-earnings ratio
about

9

to

acteristics

1), the growth char¬
of

the

company

war¬

rant

confidence, long term, in this
as
a
sound speculation in
the development of science in the
stock

field

of

their

as quality products in
respective fields. Fansteel's

research

the

has

results

gratifying.,

been
to

The

intensive

date

and

capital

and

dinary

income

dividends

not

subject

to

or¬

all

tax.

Instead

to

paid

used

is

1,443,000
Hudson's

over

457,000

stockholder

him

by

a

to

1950

dividend is 4.2%. To
in the 50% bracket (over
$20,000 of net income based on
1950

of

rates) is equivalent to

yield

a

8%, far more than can be
obtained by buying the common
over

light

port¬

indicated

value

of

its

$52,000,000 and the

assets

common

as

the table have

paid
dividends

these

market

a

Choosing

somewhat like
whom

Other

Columbia

date

choosing

it

is

a

is

favorite

the person
chosen and the
on

occasion

for

which

it

intended.
we

is
If

During this period the manage¬
of the Corporation has also
taking various steps neces¬
to divest itself of its status

Gas) which it

pects

to

accomplish

the
is

son

tor,

class

Gas

N.

Y.,

restrictions

and

its investments
rant.

able

to

Electric

Baltimore,
Power

view

facts

of

lations

to

Public Service

Electric and

Southern

Company,

The

United

The

West

Other

the

between

U.

S.

Gas

Penn

and

the

United

Securities and

whole
28

-

under

Treasury 2%

Treasury

Commercial
Accrued

£. Bates

McKee

?

Shares

Indicated

Bonds

271/4

I

Market Value

20,196.1

$550,344

24%

1,004,081.72
154,231.8

878

46,870

38%

24,976,533
2.660.499

'

415,971

17,359

663,982

16

755,136

mood of exaltation for

inspired effort.

Defense,

204,680

be

below

a

second

recovery
more

in.-efficiency, and
shortages. Even so,

1951

quarter,

and

production-out of the

system

a

same

We have been

pouring
production

into

our

since the

war

capital

new

on

scale

a

that
was
almost
disturbing at
times, and it can hardly help mak¬

ing its weight felt in higher out¬

13,755

352,472

30,000

1.012.500

33%

iZZZZ
capital

.

put per manhour.

In

response

to

the shift in composition of national

'

•

7;

9%

48,705

474,874

327s

14,240

468,140
1,374,843

406,129
44,065

28%

5,832

28%

common

48,667

23%

71,837

9,645,564
512,256
,

•

164,025
2,038,375
330,808

"

cost)_

_

$64,221,952
$750 234
095 840

.

_

(at

"

•

$750,000

bills

qq'qnn
qqq'448

_

.

purchased

;

'

Z-ZZ-ZZZZZZZZZZZZZZZ'
ZZZZZZZZZZZ

3 697

1,450^531

L

"

Oct.

follows: Second

quarter,

perhaps

$328

bil¬

lion; fourth quarter, $331 billion;
first
quarter 1952, $334 billion,
and in the second

$339

mite

quarter, around
Actual figures may

billion.

a

higher due to

a

small

further advance in prices.

ZN.

■NDemand
must

we

;Z_

$619,743

purchased

prior

to

1951

140,866

or

government of this growing

Total

Shares

_

outstanding,

$67,754,993
14,072,149Vz;

per

share,

$4.81;

closing

price,

4%.

,

$52

,

1952

'

'

1st Quar.

2nd Quar.

$57

y $62

„

est

to

•

rate of mili-.

is that the

us

• ■ -

of inter¬

What these figures say

output that is assumed for
the quarter ending next June 30
will be about $27 billion abovetary

that

of

second

quarter

and

1951

$27 billion swirls
controversy about

that around that

what
ness

the

of

most

is going to happen
and to the economy.

to busi¬

(Paren-',

thetically, third quarter 1951 data,
suggest that the figure will be
about

$21 billion above the rate,
period.)

for that

In

the

meantime, as has been,
by countless protesting;^
committees, the rest of the gov-;t
ernment keeps on spending, and:
so
do
states,
cities and other:
observed

smaller units. The issue for us oL
course

or

is not whether it is all

good,'

inexcusable,

it

of

some

but

merely how much. The states and.

municipalities give the impression
of milling about

rather forlornly,;
things and^
being frustrated principally by
material shortages, and to some,

wanting to buy

extent by

many

credit restrictions. There
doubt

without

serious
other
public works to be made up. Also
there will be pressures for higher
wages which if realized would add
to the outlays. On the other hand,,
are

in

arrearages

control

amny

roads

and

construction

over

will be

econ¬

tighter. And on balance, it seems
will try to spend. If our guess
doubtful
whether
Federal
nonr.
is good we will have accomplished
security
spending
will
depart
two
things., We will have an-,
greatly from the second quarter, (
swered both (1) thev homely old
1951 annual rate. As a very rough
question that probably preoccu¬
guess, the net thrust of these con-*
pies us too greatly in this statis¬
flicting forces is gauged here at'
tical age, namely, what's ahead for
about $24.8 billion in fourth quarbusiness, and (2) the more mod¬
ter
1951, $24.3 billion in first
ern
and sophisticated query, will
quarter 1952 and $23.9 billion inor will not the pressure on supply
second quarter 1952, all at annual
be such as to generate more in¬
rates—the last figure being some
flation?
;
$1.3 billion below the rate at¬
^

Federal

Expenditures for

In the short time at
we

can

do

few broad

no

tained

Security

more

our

disposal

than look at

a

categories, but certain¬

looming over all of them, is
defense. What average time-shape
are outlays for this purpose likely
to

assume?

For- several

the

in

this year.

ly,

$760,609'

;

omy

$68,515,602

/

1

know

guess
how much money the people and

$4,293,650

taxes, expenses and accounts payable
payable upon receipt of securities

6,

as

National

'

Less:

Amount

would be about

Now

acquisition

paper

interest

:

—

$41

$34.8

business and produc¬

at those points will mean

resources.

"

Quar. 3rd Quar. 4th Quar.

either green or

are

average

was

1951

-

2nd

due to the input of

slack

materials

6,498,590

11%

P

'

a

Power

common

series

when the trend factor is strong.

And there

12,082,176

31%

Gas Co., common

Co.,

broadly defined to
merely conventional-

to be

not

are

really

third

or

28%

Co.,

'
My defense fig;- *

work

quarter actual, nearly $326 billion;

CORPORATION

Two

principal
factors
make
United
Corporation attractive at this time.




an

Exchange

"

is United Cor¬

poration.

the

to

of
its management,
United V In second quarter 1951 prices,
Corporation appears to be a very the quarterly totals, on a season¬
attractive investment at the
adjusted annual rate basis,
pres¬ ally

Cash

Accrued

my

stock

at¬

be

additions

ber

bonds, 9-15-53/51—100.1

91-day

Savings Bonds,

has

advance,
favorite

the

and

as

month

should

normal

would redound to their credit and

25%

enjoyed
a

summer

Commission have stated that
believe
such
an

common

Improvement
Electric

securities

S.

the market

through

tion letdown in some industries in

inquiry, but both the Corporation

v!
U.

present, when

tained

there

predict the results of such

common

The

indi¬

the

manhours

total

in

V".1'

Securities and Exchange Commis¬
sion. It would be out of place here

common—

Philadelphia Electric Co.,

-

sub-normal increase in which are more illuminating than:
productivity. This rise figures for calendar or fiscal years;

manhour

to

a possible Con¬
gressional investigation of the re-"

common

Co.-

be

not

at

for my

military expenditures, but outlaysslewly for foreign aid, stockpiling, atomic ;
rising. It is my guess that in the energy, and the costs of adminis- :
second quarter, 1952, real supply tering
defense
production
and'
will on the average be a little, economic stabilization. They will;
perhaps %%, above its average relate to the value of deliveries

war¬

'

and

a

in connection with

common

Lehigh Coal and Navigation Co.,
Ohio Edison
Company, common

will

ures

bases

still

output 4s

be

The

the

calculations.

own

include

National

interesting in
the
publicity that this

Corporation received last

A

and

declare myself and

forth

set

Supply

people

are

17%

Light

best

least

upward.

necessary

diversify

conditions

as

;.Vv.V-

These

common

Inc.,

had

I

be by that time, the trend of
military spending itself will still

the

investment
company
such be free of its present

as

per¬

occasion is the

a

of

Consumers

inves¬

an

vidual

com¬

preparations

may

ex¬

within

future. It will then become

near

common

of

however, is the profusion of forms '
which data on this subject are(
given to us. This being the case,f
in

The trouble is that I
can
be;
force, recruitment of much bolder about
my
meth¬
as a Public Utility Holding Com¬
marginal workers, perhaps a tiny
odology than I can about my fig-',
pany, so that at present all that lengthening of the workweek, and ures.
I can merely say that my1
remains is for
it to reduce its after allowing for the drains of
own sensual reactions to the vari-holdings of more than 5% of the selective service. The expected ous estimates of the
authorities,!,
outstanding shares of any com¬ increase in manhour productivity and to their
reasoning, lead me to
panies in its portfolio (Niagara can hardly be confused with a
expect about the following:
Mohawk Power, South Jersey Gas miracle of growth. The American
(In billions of dollars)
v
and Columbia
going
in the
sary

assume

that

total

ment

Co., common
System, Inc., common

Gas

Edison

translated

probably

to

Companies:

Consolidated

stock

Corp.,
Corp.,

!

impos-r

nine years previously.

Prices

American Water Works Co.
Inc.,
Cincinnati Gas & Electric
The

favorite

industrial

rea-

obvious

more

the rate at!
military intentions will be:
into
goods. Another,'

which

away,

1953, and however

our

the

of

for the division is the

$259,000,000 which certainly justi¬
Hickey's prediction made

Closing

Power
Power

Jersey Gas Co.,

Consolidated

necktie; it depends
for

Mohawk

Niagara Mohawk

Co.

one

value of

fies Mr.

Statutory Subsidiaries:

South

City

plete

-

sibility of predicting

thought

tucked

bad

a

level in the second quarter of this and not government disbursements {
year—the gain being compounded in payment thereof. They will run t
of a rise in total manhours of be¬
in terms of seasonally adjusted 1
tween
2-3%, and a small and annual rates for quarterly periods, >

distributions

plus

ASSETS OF UNITED

Niagara

New York

pay¬

$67,754,000. Present market value

Securities—

people.

Corporation

be

One
sons

scattered

they;
output from normal activities to
investigation
defense, a great many workers
will by the same token be shift¬
the market action of the stock
ing from low productivity indus¬
would indicate that the
investing
tries to high.
Therefore, on bal¬
public is not worried on this score.
the prospective investor a
ance
and without exaltation, we
great
Because of the quality of its;
deal of confidence in its
ought to improve a little although
present portfolio,
the
attractiveness
of
management. In June, 1942 the its tax-free
not very much in real terms.
dividend and the cali¬
stock of any good power and
stock such as make up the

form and improve
industry and in
turn the daily lives of the

United

least

at

in

omy

be

remaining for the
present stockholders as shown in

20-cent

a

was

Partner, Richard W. Clarke & Co.,
Members, New York Stock Exchange,

re¬
own

ments the assets

long-

anyone

even

E. BATES McKEE

has
its

has

and

common

technology, including stock, preceded by debt and pref¬
erence
the
wonders
stock, was "under water" ent time.
of
chemistry and
metallurgy, continues to trans¬
brighter

a

of

stock

common

of $4,300,000. After all

the

reduce

as

in

The

has been suffering

division.

to

as

shares

$23,000,000,
shares of

stock

through

capital gains. At its present
price of 4% the tax free yield on

very

future

should

actions

industry.

will

net

are

of

workers who

metallurgy. Its products,
folio of United Corporation itself.
generally
classified
as
electric
A brief study of the
past record
contacts, carbide tools, electronics,
of United Corporation will
give
rectifiers, tantalum metal, etc., are
recognized

distributed

has

stockholders

common

Niagara

term
re¬

anticipatory
parts

and

return of

as a.

thereafter he treats them

Conclusions: While dividend

total of $162,000,000, has

a

dividend

stated cost price of his stock until
it is written down to zero, and

the

ar¬

seems., opinion

This pros¬

pect, however, is not expected to
inflate us during the next nine
months
except possibly through

closed-end

treated

are

are

in

and

to be most substantial.

paid out

gerated the company's participa¬
gram.

preference stock

in

Supply-Demand Stalemate

bombers, etc.,still unknown)

realized profits, so that dividends

unauthorized

tion

A

some

$4,000,000,

the

been

and

(7) Price Range: The stock is
currently selling
on
the
New

has

semi-annual dividend of 10

a

with

rears

page

The Immediate Outlook—

the

man¬

out the equivalent

dividends,

opinion

his

in

statement received

a

common

Corporation earns from

United

placement, it is worth many times

stock. There is

from first

however, that whatever the shifts
of paid off bank loans in the amount in the domestic sector of the econ¬

solely

consists

Hickey, then
President
of
United,

that

retired

panying tabulation.

rent
Dec.

Continued

-

William

at the
skepticism. Since
that date the management, by ob¬
taining the most beneficial solu¬
tion to
its
problems under the
Holding Company Act, as a result
of reorganization of its statutory
subsidiaries on a sound basis? has
000,

time

(4) Backlog: The company re¬ 14,072,150 shares of common stock.
ported an $8,000,000 backlog in Its assets consist solely of a port¬
1951, which provides them with folio of utility stocks and cash and
capacity business in almost all equivalent which as of Oct. 6 gave
products for a substantial period it a liquidating value of $4.81 per
ahead.
share as shown in the
accom¬

liabilities

At

$76,000,000.

holding company's assets had an
intrinsic value of over $230,000,-

a

capitalization

now

stated

products provisions in the Reve¬ It provides a means of acquiring
at a discount ownership in a di¬
nue Act of 1950.
versified portfolio of well-man¬
(3) Dividends: 75c per share
aged
public
utility
companies
was
paid in 1950. A larger dis¬
and, secondly, its dividends are
tribution is expected in 1951 but
and
should
continue free from
the company will probably con¬
Federal Income Tax.
to follow

Mr.

and

The Security

tinue

of

extent

that time it is interesting to note

2

page

Thursday, October 18, 1951

...

reasons

not

second

(The

intended

use

to

quarter

of

of fractions is.
unusual

indicate

daring, but as in the case of al^
figures in a story like this to con¬
vey

a

Federal,
for

idea

general

proportions

and

state

goods

and

of

trends.)

and

expectqd
For all

local

outlays

services—security

sVolume 174

Number 5056

.

.

.

The Commercial and, Financial Chronicle

31

(1479)

;and non-security

— the prospect
therefore is that the second quar¬

ter 1952 total will exceed that for
he second quarter of this

by

year

bout $26 billion.

continue to rise well into the first

nificant in size. I am venturing to
place the annual rates of increase

from private sources, and

quarter

at

payments

1952

Gross Investment

and

fall

off

but

moderately thereafter. Commer¬
cial, institutional, farm and mis¬
cellaneous

Private
This

and transportation—should

power

the

to

contract

billion

contrast

of

the

with

control

during

quarter

a

remainder

in

fiscal

year

in

rather

the

second

third

and

not

category includes sharply as control
orders
and of this year. Despite this prospect
outlays for equipment, .withholding of necessary resources of continued rise, here we find
jexpenditures for nonfarm residen- really take effect. For both classes the biggest loss of stimulus to
of private

orms

construction, net

fnvestment in inventories which

jtried

to

during

do

the

and net

In

foreign investment.

the

able

a
little skywriting
middle of this year,

of

case

essential

the

dur¬

outlook

demands

quarter

for

is

spe¬

construction

that of

indirectly to implement
of military end items

be

business that

five

the trend until
the middle of next
year.

Net
vate

and
'or expansion of several basic in¬

the

13-month

already

of

Korea

nnual

>econd

ter

/ear. Even so,

the peak

have

may

aeen

passed already. There may
the necessary eagerness to exand and funds with which to fince the
expansion, but the

increasing stringency in

plies
uch

of

essential
to raise

as

sup¬

materials

are

doubts about the

easibility of all these brave plans,
t

almost

seems

,

An

shift in net

the

to

scribe

defeatist

parabola

a

for

ment.

first

logical parts.
sion

next three

For useful analysis it must
of all be separated into its

of

the

Under

the

rearmament

amount

to

what

is

upposed to be the very bulwark

tinue to

by 18%, purchased materials
and goods in process rose by
47%,

rose

two

or

and

half times

a

(both partly in price)?

the last two

will

be

do?

much

as

,7

Inasmuch
To

the accumulation of purchased
materials and goods in process was
as

*

future

our

security,

to

$28

•

i

■

.

$27

tories

the

2nd Q. ^

S26.5"

'

Residential

elongs
eets

ime

construction

under

rivate

:

$26

this

also

heading

of

investment, and here

pros-

quite different. For

some

are

it

has

been

expected

that

utlays for housing would skid to
round

$9.5

billion in

the

fourth

sales

to

goods

1952 \

1st Q.

show

of

any

wholesale

level

in

this

distribution

discernible

tistics

without

has

But

in

occurred

still

about

concerned, but tax

ef¬

pros¬

Moreover,

sta¬

ratio

come

from

had

the

in¬

that the industry would
to

hold

to

this

vel

during' the first half of 1952.
principal causes here beyond
eed for any
scholarly research
ere sundry forms of
private and
ublic:: credit
restraint
with
a
he

loderate

assist

from

high

materials

equipment

the ends and down in

on

middle.

e

durable

atedT for

some

circumstances this overload could

represent
balance

dreaded, type

a

requiring

general

a

sion for its reduction.
make

the

horrendous

worst

The

only

reces¬

strict

impute them
This kind

consolation

can

and

payment

The

the

antici-

recovery

second

quarter

of

..

ultimate

g

outlays

round
f

should

a

get

back

to

levels

billion

or

after
so

a

in

dip
the

eahtime.
"Other
resents

for

private
a

more

one

may

elds

of

good while to

cause

steady

will

pull

resources

under

areas

short, imposition of

physical limitations far from dis¬
penses with the need for effective
credit and fiscal
»

measures.

The outcome? I don't myself be¬
lieve that there is great danger
of
a

going through the roof

our

result of the

factors.

We

reasons:

output to

schedules

while

(b)

re¬

heavy

on

re¬

dur¬

consumer

houses,

of

in¬

of

construction"

tangled situation,

servations,

designate

as

in-

movement,

building—outlays in the
mining,

manufacturing,




pace

last

far

three

area

is

and

that

though
below

I

may

the

proceeding
that

set

be

overall

in

at
the

quarters, will remain
positive in sign and at least sig¬

will

plentiful.

more

In fact the prospects are that

they

will be

ever

abundant than

more

before, taken in aggregate and
perhaps even per capita. It is
guns and butter for fiscal 1952.

Continued from page 23

News About Banks
And Bankers
counts from

$7,500,000 to $8,500,plans for the issuance

The

000.

of additional shares

were

noted in

these columns Sept. 20, page 1073.
v

*

«

*

Directors of the Bank of Amer¬
ica National Trust Si

Savings As¬
sociation, of San Francisco, have

appointed
leader, to
the
Di

McEnerney, II,
attorney and civic
seat on the board, and at
Garret

Francisco

San

a

same

time have added Robert

Giorgio to the board's Advisory

Council.

some

factors, while certain to play
role in the situation, will be

somewhat weaker.

A brief review

of developments will convey some

impression
these

(1)
credit

of

the

character

of

shifting prospects:
We

know

control

that

has

been

relaxed
ac¬

tion.

a

the

figures
part

of

forecast.

We

that

know

Housing

the

Act

recent

reverses

down

payment requirements and
giving more time to pay, granting
the FMNA

new

authority to

chase

mortgages,

direct

government

erans

providing
loans

to

pur¬

for
vet¬

who cannot obtain 4% loans

*

*

*

.

The merger is announced of the
Bank of Australasia, established

banks

form

merged

were

The

Oct.

1

to

bank under the title of

one

Australia

the

1837.

on

and

New

Zealand

Bank Ltd. The head office of the

enlarged

Joank is at 71

Cornhill,

London EC. 3;

the

for Australia and New Zealand is

good standing in the

I

am

hoping for

the principal office

five

at 394 Collins Street, Melbourne,
Australia, while the principal of¬

quarterly figures of moment

come

fice in New Zealand is at Lambton

my

guild

out somewhat

that

follows: $202 bil¬

as

Quay,

$204 billion; $212 billion;
billion; and $217 billion-

whatever

the

measurement,

imperfections

Wellington, New Zealand.

Joins du Pont,

of

Homsey

(Special to The Financial Chronicle)

slow
gradual
figures are in ex¬
a

BOSTON, Mass. — Lester A.
prices,
i.e.,
they; re¬ King has joined the staff of du
Homsey & Company, 31
flect
price changes that rather Pont,
Milk Street, members of the New
mechanistically, and without re¬
York and Boston Stock Exchanges.
gard to a revival of pathological
King was previously with
behavior on the part of consumers, Mr.
might be expected to result from Merrill Lynch, Pierce, Fenner &
and
Whiting, Weeks &
total spending pressure after al¬ Beane
rise.

These

pected

lowance

for

a

rising supply

and

Stubbs.

vVY

77v

the limited effectiveness expected
of

price and

With Howard, Weil Co.

controls.

wage

(Special to The Financial Chronicle)

1

Conclusions

NEW

In
of

form, the upshot
foregoing is roughly as

summary

the

follows:
1.
rate

If

expectations

areas

of

J.

ORLEANE, La.

the

sepa¬
ex¬

&

Building,
Orleans

follows:

(2Q1951
actual);
(3Q approximation);
quarters lying ahead, $338,

billion

and

2.

Of

these

advances,

perhaps

supply.

If

real

output

Midwest

T. J.

SHREVEPORT,
McKean

S.

with T. J.

half will spring from additions to

Company, Hibernia
of the New
Stock

Ex¬

Pringle

(Special to The Financial Chronicle)

billion

$325.6
$328

for the

Albert
to the

members

amined should be
fulfilled, the
changes.
seasonally adjusted annual rate of
total net spending for the five
With
quarters in which we are inter¬
as

—

Meyer has been added

staff of Howard, Weil, Labouisse,
Friedrichs

in

activity I have

$334, and $350.

Defense

of

re¬

admitted

ested would eventuate

installment

significantly by Congressional
(2)

big

uate

the

$215

The present outlook is that all

the

over

—

sup¬

1835, and The Union Bank of Aus¬

substantially easing regulation X

ticklish

be much

course

II,

civilians

for

tralia Ltd., established

physical

a

of

in World War

was

available

will

should increase by between 3—4%

overbold

plies

sur¬

The

bad mistake could

freely

astrologers'

lion;

these

a

and
so

damage

these

of

effect

about to make is

make

seriously

sake

the

significant.
now

the total that

but

rather sharply earlier policy with

is

Since the national security share
the totals will be much less

events

stage;

analytical matters.

hazards,

involved

With

untoward

them

rise

reduction

on

for

not

are

Without

full

of

or

international

be

to

several

sharp

the

on

respect to residential construction,

My guess here—and this

activiity will be moving steadily
toward that figure henceforward.

in¬

and
perhaps
even
substantial
jumps in stocks for defense pro¬

a

ustrial

a

with

goods

duction.

current

half

hat

use

be

can

credit and

on

other

In

pressure.

am

tion chain should decline—a proc¬
.1951 and third quarter 1951, but I
ess
that should be intensified by
had in mind a longer period of
the
recent
relaxation
of
credit
time.
terms.
In the case of soft goods

for

the

easing of credit and

any

from

away

the flow of gross savings.

offer

a

in the late fall of 1943, industrial

con¬

strict credit terms,

restraints

stallment purchases of such items
in 1950 and early 1951 maintained

common.

I

outlays

ables

It is easy to
out
of

to the general economy.
of
hypnosis&Ttf- indeed

notably

direct limitation

stories

and

cases

of im¬

by private con¬
modest one to be sure,
sumers, the analysis of consumer
ut is a recovery of sorts never"expenditures to follow, read in
eless. It may still have to con- the
light of prospective availabil¬
nd with partial market satura- ities from current
production, sug¬
on
(at prevailing price levels), gests a sharp drop in the rate of
meager allocation of some im- inventory
growth.
Absolute de¬
ortant building materials such as
clines, however, may not be as
pper, and tightness of mortgage important as many expect during
ds, but the blockages here are any of the quarters under consid¬
r from complete and a
Meanwhile, the rising
guess is eration.
ade that by early summer hous- military
program
seems
certain

is

952

tax

hardly

In other
hortages. But the compassion of
is the conventional one that DPA
words, we could expect a pincer
bngress in
anything affecting restrictions
may
eventually bite process on spending, the arms of
ousing is never to
be
taken
so
hard* that-'the
possession of which would be less dissaving on
ightly. Overriding the Federal standard durables at least
may the one hand and more positive
eserve
Board, it recently and
presently be a-comfort rather than saving on the other. Also an addi¬
ignificantly relaxed down pay- a pain.
tional saving would be forced for
ent .requirements
and
restricThe forward;behavior of these the reason that with price controls
'ons >on the
length of pay-off
inventories TsTb'fact difficult to spending
on
available
supplies
eriods
and
otherwise rendered
forecast
closely.^ As output of would be limited by permissible
urchases' easier. This kindness,
consumer durables falls off at the
price ceilings. Result: Immobiliza¬
ise or
unwise, permits us to same time that
of
some
excess
spendable incomes tion
spending
raw a course for
housing that, in rise and
prices are
controlled, power.
ipe if not in scale, dating from
stocks of consumer durables down
The consumer saving ratio did
e beginning of this
year to mid- the
manufacturing and distribu¬
rise, of course, in second quarter
952, is the opposite of that just

escribed for

obviously

mise I

(a)

pressed

largely

on

the

output

conserve

output than people would take off
the market

savings

expected

for

or

incomes.

consumer

been

significantly

directly

personal

"dissaving" or withdrawing from
hoards, as tight consumer and
mortgage credit controls joined a

hard

on

measures,

other

on

these

would

directly

afflicted merchants at least cannot

e

than

pressures

flationary
effects;
and
if
the
physical limitations permit higher

half

a

easily be charmed

In

use

hold

will and should

fiscal

program,

uarter 1950. It

owever,

for

might

of the Di Giorgio Fruit Corp., a
major California agricultural en¬
terprise.
*
>

are

is

near-term

as

—

consumer

away.

mix

rector of the Di Giorgio Wine Co.,
and Vice-President and director

far

as

durables, and in' the minds of the

also expected,

in

customers' available cash released

tive level and distribution of tax¬
able income
of which roughly

channels

resort- to

And although differences

product

course
either
the
are not.
Then we were en¬
possibility of
visaging a tax program designed psychological anticipations or of
'further big jumps in the military
to yield $10 billion at the
prospec¬

.

particular lines.

effective

pects

overall jump was only 10%
(part of it in price), it could and
probably - does
mask
a
lot
of

in

in

as

contemplated
same

fects

13-

the

back-up

War II.

than it

durables to

more

real

index of industrial production be¬
low the record level of 247 set

a

thought hitherto.

and

•

overall

of

interplay of these
cannot
ignore
of

the

at

month span. The same ratio at the
retail level did rise, and although

trouble in

rate

Mr. McEnerney, a grad¬
University of California,
has been practicing law since 1934
and is currently a member of the
firm of McEnerney & Jacobs. Mr.
Di Giorgio is President and di¬

then

non-durable

change

annual

output will top the all-time peak
set in the latter part of World

of

less

resources

bought

obvious, the out¬
depends upon such

■,

great

toward

limited supply of durables

if they

uarter 1951 from the
unparalleled
eak of SI3.7 billion in the third
was

trols

-'7.-1

.

$26.5

7

at

may

the separate effects of credit

wit—

,

employment will continue to rise.

ing to expect too much of them.
they are strict in relation to

the

here

out parallel in our history. Civilian

remain. But it is easy and tempt¬

And what

consequences
-

be

consumer

critical

high rates of

quarters?

the

:■/ :'■* ,7,v,

state

come

the

at

will

These figures imply levels of
activity that are largely with¬

If

principally in support of defense simple little matters as how much
production, and that of finished money people will have left after
•apacity and more capacity—but
goods although probably for non- taxes and what percentage of that
hat is the way
my own figures
military use was small, there was net income they will be willing
pme out:
\
nothing here to shake the economy and able to spend.
Conditions
have changed since last
L. 1951 ■
very roughly.
:
<;
?
spring.
2nd Q. V 3rd Q.
The
national
4th Q.
security
Neither did the ratio of inven¬
program
f

of

quarters.

save

work

(5) Direct limitations

Finally I turn to consumption
expenditures, which in the aggre¬

program,

the

taxable

of

although it

time

had been

spending involved.

•

the

than

at

balance raise dispos¬

on

supressing demand

Consumption Expenditures

propul¬

may

more

annually

distribution

same

devices

biggest increase at the manu¬
gate represent by far the
largest
facturing level occurred in raw
How will
materials components and goods part of total spending.
consumers behave?
signs in
Will they con¬
process.
While finished goods

ae

)f

proportion

measures

(4) The recent legislation with
respect to price controls and de¬
veloping policy in the field of
wage controls suggests that such

This year we ran from a net defi¬
cit on private account to a small

outlays

true of both the current
quar¬
and the- first quarter of next

ae

of

all

tax

so

income

the

an

imports.

defense

higher savings ratio.

be¬

and

or

and

able

half that proportion in
physical
significantly
volume.
And yet one can reason surplus, and without any very good
even
the record-breaking
grounds I am anticipating a bare
rate
reached " during the away at least a few of the hob¬
return to a deficit status over the
quarter 1951. This should goblins surrounding this develop¬

hold

bove

on

real

The

corporations)

This will

balance

3.

down

income assumed in calculating the
yield of the $10 billion package.

adequate explanation of what may
happen henceforth would be out

from

through July 1951; overall
inventories rose by 30% in dollar
dustries
to
provide
insurance
against all-out war will for a terms and by slightly more than
hile

exports

of

on

mobilization

so-called

new

billion

level

en¬

pri¬
is bobbing around,
exceptionally sharp im¬

precarious

tween

period

$6

account

pact of world

toward

Inventories
In

foreign investment

due to the

pro¬

vision

are

we

barring

or

yield- (or raise accruals in the

case

Net Foreign Investment

gentle but persistent
with industrial building

decline,
bucking

likely to
in this journey. •

counter

some¬

a

cialized facilities intended directly
?r

should

score

the

thing like the following: $11.6 bil¬
lion, $11.3 billion, $11 billion, $10.5
billion, $9.3 billion. The net effect
is

producers'

equipment,

that

private

in

(3) The

quarters

general

of

mortgages

be immediate.

reducers'

ial construction and for all other

over

Even so, the effects will not

areas.

the

spectacular
leaps of $14.4 billion and $8 billion

construction, however,

certain

seem

$2.5

has

La.—Mrs. Erin
affiliated

become

Pringle Investment Co.r
Street.

Mrs.

McKean

515

Market

was

formerly with Investors Syn¬

dicate.

this

period as anticipated,
and if spending should materialize
as
anticipated, 2nd quarter 1952
prices in general should be only

slightly higher than in the 2Q1951
enough to be of any particu¬

—not

lar consequence to

public policy.

With Waddell & Reed
(Special to The Financial Chronicle)

DETROIT,
Smith
"RppH

is
Tnr.

Mich.

now

with

Frank

G.

Waddell

&

—

,

32

The Commercial and Financial Chronicle

(1480)

-

Thursday, October 18, 1951

,.

•

.

turies past

him and win him.

It is this sort of

We It
See

As

oil the people whq would

by fellow countrymen

now warn

Continued from first page

a

situation in world politics which is

testing the abilities of the powers in various coun¬
One finds it easy to wish that abler men were at
helm in many lands.

now

tries.

type has been the order of the day in the leading countries
of the world including the so-called non-imperialist coun¬
tries as well as those which historically have been actively

engaged in colonialism. General world ferment stemming
in some part from two world wars and a gigantic business
depression is also clearly evident. One result is that in
most of the so-called colonial areas a strong feeling exists
against heretofore dominating nations.
•

the

Continued

from page 7

This is often termed anti-Western

feeling—and those
purposes wish to turn millions against
their Western rivals are constantly making use of the
term.
It happens that it is anti-Westernism for the
simple reason that the empire building nations have for
the most part been Western nations, and their empires
own

have often been built in Eastern

areas

of the world.

But

the

feeling of rebellion is not against Westernism as such
so much as it is
against the "ruling" foreigners of ages
gone by. It is, in fact, a form of nationalism in parts of
the world which have in the past been obliged in one way
or another to bow to
foreign interests. This feeling is,
moreover, not always rational or well reasoped.
Not in¬
frequently, as in Iran, the rebellion can not well fail to
place heavy penalties upon those who rebel, penalties
which will be roughly in proportion to their success in
ridding themselves of foreigners.
But when feelings are rampant, economic wellbeing
rather, rational appraisal of the prospect of wellbeing,
does not govern, and it is clear that the British colonial
system, long regarded as the most enlightened in the
world, is not faring well. Where members of the Empire
are of the same race and
background as the people in the
motherland, the British have been generally successful in
yielding formal control and yet keeping the Empire intact.
Thus in Canada, Australia, New Zealand, and South Africa
restlessness has brought a status which appears satisfac¬
tory. But the story is not /quite the same, indeed it may
be very different, in Asia, and the British themselves, or
rather the radical elements in Britain, are caught in the
uncomfortable position of having argued consistently
against the very principles which make Empire possible,
but at the same time finding themselves with their very
economic lives more or less dependent upon some sort of
working arrangements with parts of the Empire.
iv
or,

Were It Not for Russia!

It might not be too difficult to reach workable rela¬
tions, despite all the obvious difficulties, were it not for
the

existence

of

another

historically imperialist power
adopted, adapted and perfected ancient tech¬
niques which seem to get behind the nationalism of the
day. This technique is now known as setting up puppet
regimes with natives "running the show," but natives
who have been trained in Mosow; trained in the ruth¬
less techniques of communism and indoctrinated to the
point where they accept as a matter of course the notion
of the infallibility and the utter selflessness of one Josef
which has

Stalin;;.'

;

v/:.' 1V

-

This is

^

.■>

C.J--

system to which the Kremlin type of abso¬
lutism may often be applied with
appalling success—al¬
ways provided the proper puppets can be found and effec¬
a

Defense Mobilization

ing to the so-called free world.
also

exist

in

are

not

wholly pleas¬

Communist movements

of the other

where Britain,
France, Holland, and the United States have vital interests
of

one

sort

or

many

areas

another.

One trouble is, of course, that

the Kremlin is utterly
unscrupulous. It is often difficult to match such a foe
without becoming one with him. Another is that the sort
of ferment

now found in
many parts of the world is the
which communism thrives. Preached by dreamy
enthusiasts, the system seems to promise milk and honey

stuff upon

without

end.

When

such

illusive economic

doctrine

is

wedded to the notion that to embrace communism is to
free oneself from the
"oppressor" of the ages, it becomes
an

explosive mixture. It is certainly not

easy

to convince

the victim that he is about to be swallowed—the
since in fact he has been




more

or

more

less swallowed in

so

cen¬

Runaway Inflation

creased

production.
Copper presents a special prob¬
lem. Our entire domestic supply,

also

must

be

revival

a

spiritual values in our daily
lives, if our industrial mobiliza¬
tion is to be fully effective.
As
America has been growing over
years, too many of our peo¬
ple have drifted from the religious
concepts^ of
their
forefathers.

the

spiritual
implicit
According¬

faith in the

their

of

because

Almighty.

ly, now is the time for a reviva
of interest in the faiths of oui

fathers, and for greater efforts t<

teach¬
faiths
gram could be wrecked by runa¬ America's greatness traces back tc
plus what we are able to buy way inflation, and whether or not God-fearing men and we, like oui
from Chile, is not sufficient to we have
runaway
inflation de¬ forefathers, should ask for His
meet our needs.
pends to a large extent on the blessing and guidance in our ef¬

will

be

time

long

before

put into daily practice the

mobilization pro¬

defense

The

We are seeking new copper de¬
velopment in Nevada, Arizona,
South America and Alaska, but it

ings

of

forts to safeguard our

policies of" the
large pressure
groups—industry, labor, agricul¬

to build

ture.

the

respective

our

future.

country anc
solidly for th<
keep in mind tha

even more

Let

us

Ben j amin
Franklin
Once
said
restraint or will
'God governs in the affairs o:
for individual ad¬
men'."
gin to flow to industry.
vantage? Will they accept reason¬
In the case of rubber, imports
So our defense mobilization
able prices and
wages, or will
of natural rubber are being large¬
not a slide-rule operation or on<
they seek to upset the balances
ly augmented by our synthetic that the
government is trying to whose beginning and end is to se<
plants. Oil drilling and refining achieve in the interest of over-all how many weapons of war can b<
goes on at an accelerated pace,
turned out of our factories. It i
stabilization?
and
large increases are
being
an exercise of faith—-faith in th<
We are now enjoying a period
made in power production.
right of mart to enjoy the preciou
of relative calm on the price-wage
qualities of freedom and justice.
Expanding Our Entire Productive front. The freeze order of last
We can no longer take freedon
Base
January has had the most salutary
or
justice for granted, as gift
results. In the last seven months
Thus, to meet the demands of
handed to us by the blood an<
defense mobilization, we are in¬ the consumers' price index rose
sacrifice of our forefathers.
Th<
creasing our entire productive less than 1%.
lights of freedom and justice ar<
Of course, other factors besides
base. This is just another example
going out all over the world when
of the
dynamic quality of the the freeze order have contributed the shadow of Communism ha
American system, and of its abil¬ to this result, such as the piling up fallen.
We are going to have t<
ity to spurt ahead under pressure. of huge inventories and the fact fight and strive to keep ther
Not many years ago, there were that people are saving instead of
alive, because without them lif«
a

metal from these

those

who

sources

contended

Will

will be¬

that

use

spending.

our

had already reached a
condition of maturity. That im¬
plied
that
arteriosclerosis
was

the

But

/

Vv/

January

is not worth living.

freeze,

how¬

If

the

nation

I

will

tackle

th

imperfect

it was, had a task of defense mobilization im
tremendous psychological effect. bued with that great ideal, ther
When people believe that prices need be no fear about the out
will rise, they will buy even if come.
■'
ever

about to set in.

How false that diagnosis was is

shown

they

jockey

they

economy

by the record of the last

they don't need'the goods. If they
accomplished see prices steady they are more
production willing to buy • only what they
for World War II, providing for need
our
huge forces both in Europe
Whereas
there were no real
and in the Pacific, besides send¬
when
the
1950-1951
shortages
ing billions of dollars of goods to panic buying occured, we are now
our Allies under lend-lease.
entering a period when inflation
Next, we confounded the so- pressures will be real rather than
called experts who predicted a
psychological.
recession after the war. Instead of
There will be fewer things to
the long line of unemployed that buy and more purchasing power
was
forecast, industry and com¬ in the hands of the people. Then
merce moved smoothly from war
will come the real test of the nu¬
to peace production and, instead merous safeguards that have been
of post-war depression, we had a erected against inflation.
I am happy to say that Con¬
post-war boom. The year 1950
was a record-breaker for civilian
gress is now reconsidering some
of
the
weakening
amendments
production. :
decade.

First,

we

the stupendous task of

$70,000,000 Fed. Farn

.

Now

are

we

rearming

on

that

a

were

added

Production

to

Act

the

when

Defense
it

was

gigantic scale, and we are able to
do so while maintaining civilian passed last July.
One of these amendments tends
production at high levels. When
all of the new expansion plans to upset the whole price structure,
have been completed and are in as
applied
to
manufacturers,
place,

we

shall be ready to write which the Office of Price Stabili¬
zation has worked out after many

and

glowing chapter in the
months
history of the Industrial Revolu¬
a new

future of America

date it must be said that the results

"There

"Men will die for their

Program Can Be Wrecked By

to return to us in the form of in¬

Czechoslovakia, and the other so-called 'satellite States
Europe. It missed fire in Yugoslavia, it is true,

our

spiritual strength.

Moving Into High Dear

tion. ;

but the end of that story has not been written as
yet. It
will likewise be
interesting to see what the mighty Krem¬
lin can and will make of Communist
China, although to

upon

of

beliefs

tively trained and made sufficiently ruthless. What can
be done in such cases is clearly in evidence in Poland,
in Eastern

beep ,heaped

had

country and he said:

They failed to realize that no na¬
tion can be truly great which lacks

Anti-Western

who for their

that

"

;

Barring another world
and

can

the
be splendid
war,

magnificent. Our people

can

enjoy even higher standards of
living and the fruits of our indus¬
trial progress can spread through¬
out the world.

But at this

that, df

we

.

point I must warn
are to enjoy material

It

of careful consideration.

has been

ant's dream.
called

instead

nightmare.

an

account¬

an

accountant's

If all the accountants

in the nation
—and

called

I think it should be

were

laid end to end

I

sincerely hope this will
never
become necessary — they
could not
hope to unravel the
Rube Goldberg puzzle presented
"by this amendment.

Loan Bonds Offered
The

12 Federal

land banks

ar

offering publicly today (Oct. 18
through Macdonald G. Newcomt
their fiscal agent, $70,000,000 con

solidated Federal farm loan bond
to

be

Nov.

dated

1, 1951, and t
1954. The bond
bear interest at 2%% per annur
Nov.

mature

1,

payable semi-annually,
being offered at 100%
interest.

crued

distributed

on

They

and

ar

and

ac

bein

are

hationwide basi

a

through a large selling group c
recognized dealers in securities/
Net

proceeds from the sale ar
for repayment of ap
proximately $44,000,000 of con:

to

be

used

mercial

bank borrowings and t
provide approximately $26,000,OC
for lending operations.
consolidated

The

offered

gations

are

not

and

heir

bonds

government obi

not

are

guarantee

the government, but are th
joint and several obligations <
the 12 Federal land banks. 'Tfc
bands are Federally chartered ir
stitutions and operate under tt
supervision of the Farm Cred
Administration, which is fund<
the general direction arid superv
sion of the Secretary, of Agricu
by

ture.

:

,

benefits, they must be accom¬ Confidence in Nation's Productive
Capacity
panied by spiritual values and by
rugged qualities of character.
I have complete confidence in
Henry White Co. Eormec
We cannot accomplish the ob¬ the nation's genius for production.
TULSA, Okla.—Henry M. Whii
jectives of defense mobilization If, at the same time, we can exer¬ has formed Henry White & C
cise

the restraints and the self- with offices in
sacrifices ancl restraints.
the;<Oil Capit.
military production bites discipline to keep the economy Building to engage in the secur
deeper into our capacity, there stabilized, we will have met the ties business. Mr. White was pr<
will be temporary shortages of test imposed upon us in these cri¬ viously with Harris, Upham & C
civilian goods. Higher taxes will tical times.

without

As

have to

be

I
paid. Regulations re¬
have spoken of spiritual
prices and wages -will values and I don't1 know how bet¬
have to be observed. Individuals ter "ipifcan explain what' I mean
will have to make* decisions of than to repeat to you an .eloquent
f

garding

kinds concerning their- own statement I heard at I^£w York
actions, and the question they University last June. The speaker
should have constantly in mind is: was Acting Chancellor James L.
many

"Will it

effort?"

help

or

Madden

Kahn has formed Nort!

eastern Securities

told

the

blessings

Co. with offie«

at 325 East 47th Street, New

City

to

engage

business. Mr.

harm the nation's Madden.
Mr.

Northeastern Sees. Co.
Leon

in

Yoi

the securiti

Khar^ was previous

with E. M. North & Co.

Number 5056

Volume 174

The Commercial and Financial Chronicle

.

.

.

(1481)

Continued from page

The

to the already

8

television

jwe enter the future. But it should
that

added

e

the

has

pace

peeded up because history, while

itself, is telescoped in
probabilities are that

epeating
ime.
he
'

The

industrial

second

revolution,

hich may be said to have started

output

reach

on

ears.

And in the event of another

orld conflict,

half.

in

Cut

the time would be
'
_

_

,

...

_

plications of Second Industrial
Revolution

im-

lications of the second industrial
evolution

he

in many

Today
a
far more
enightened attitude exists. There is
elec-

very reason to believe that

ronics

will

bring

shorter

work-

ng hours and greater leisure time.
t holds the promise, if handled

"isely, of raising our already high
tandards of living.
From

the

viewpoint,
the

economic

he effects

are

reation of

a

twofold. First,

great

new

inaustrial

actor per se, and

second, its effect
industries. First let
look at the great new developexisting

n
s

of electronics. Electronics

ent

ot

industry;

an

hose

various

it

is

a

is

science

influences

affect

ifferent segments of our economy,
rom the manufacturing point of

iew

electronics

alone

may

k

be

SJ JZ l/tS'ih

.rnS pf domestic f'nninmtnt
upplies
equipment
radio

s

econd

television

and

« ch
such

A

sets.

part is the, group of comwhich
which

Qnipc
anies

cnnniv communicasupply communica

ions equipment; a third supplies
Awinoc
ndustrial
electronic
devices;
a
o

ourth, the industry which builds
will

nd

electronic compu-

build

finally, there is that
companies which has
evoted itself largely to the prouction
of
military equipment,
here are, of 'course; companies
hich operate in one, two or peraps all of the various segments
f electronic manufacturing.

ers;

roup

and
of

Production

$4

It

he

is

while

worth

The

figures.

look

to

best

at

available

igures indicate that the electroncs industry in 1939 was producing
t a rate of $230,000,000; of which
he
greater part,
$160 million,
epresented home radio sets,
hese figures are not the retail
alue but the factory value. From
his

low

point electronic produc-

ion, largely for military purposes,
ose
to a peak rate of over $4
illion annually in 1944. With the
the

of

nd

ack,
mall

war,_ production fell
but m 1950, with a very
percentage of military

f

the

produced,

quipment

indus-

estirTiate(J *n e*cess

$2 Y4 bilhon, or almost ten times
at

of

1939.

■

•

will be at

ilitary production

a

ate of $41/2 billion. The producion of industrial electronic equipent has

ittle^ to
ivilian

yet contributed but

as

the

total

volume

of

production. This segment

f electronics has

oint where it

can

now

reached

a

be expected to

eyelop rapidly. It has begun to
ature in the
,

,

sense

that the basic
.

,

,

■

,

.

,

esearch has been completed and
e

period of commercial exploita-

ion

is

just beginning. When the

eeze on

ision

construction of

stations

is

new

tele-

lifted,; and the

lecasting industry is allowed to
xpand

—

iscuss

in

a
a

subject which I will

minute—production

f television sets will undoubtedly




the

companies which

many

the

it

not

That

has

will

field

will

or

successful.

picture

of

of

necessity

a

broad picture because the science
of electronics is

extending its in¬
throughout our national

fluence

Some indication of this

economy.

is

given

by

fact

that

the

Guide" pub¬
by McGraw-Hill lists the
of

which

over

over

TV

broadcasting
expected to exceed $250 mil-

are

And

have probably all

you

the predictions of the Chair0f

man

the

the

Federal

Communica-

industry has reached

fuller

a

stage of development, say in five

will be a thousand
operating instead of the present 108 and total
revenues
from telecasting alone
there

years,

television

stations

will exceed
When

$1 billion,

the

the

country's homes will be
within range of telecasting. Al~
lowing for only a few two-set

famiiies>

it

is

there will be
in

anticipated

facturing business for
these 40 million set
sent

manu-

moment,

a

owners

repre¬

potential replacement mar¬

a

ket

that

40 million sets

some

To return to the set

use

of

perhaps

annuall

or

6V2

million units
nearl

market

a

as

bi§ ^ the retail market in 1950
when some 6,600,000 sets were
in<?+a]iPf3
nrnhablv
<?afp
to
lnstalied. It is probao y sa e
sa.y ,that ,aU. of thePf3ent,13^
million sets in use will be replaced

b£ .se(s which will receive color
This isn't going to be anything
be
that

happens

year

or

the

tomorrow

next

or

after. The CBS

year

system of color, which is now
thorized

by

the

Federal

au¬

Com¬

munications Commission for
mercial

Despite the individual casualties
which
a

may

whole

com¬

will go

care and only
thorough investigation. New

after

fields

of

endeavor

for

The

other

is

ated

2,500

companies
electronic

manufacture

effect

tries.

I venture to say there is
scarcely any article in common
use today that is not touched
by

electronics

before

consumers'

hands.

tronics

is

where it

jority

must

of
to

tors.

or

out

by engineers and fire¬
dispatched
by
television,
atom-powered locomotives.
Already more than half the coun¬
try's railroads use radio. Micro¬
with

relay systems

wave

stalled

by

certain

a

efficient

more

works

traffic

Developments

may

very

come

as

Professor

Ernest

cyclotron

fame,

showed his color tube privately in
York. It is too early yet to

New

evaluate

this

tube, but it illusrapidity of develop-

the

trates

ffeld.

ments in this

Similarly, with

theater television and Phone vision
other form of pay-as-you-

or some

television,

see

measure

or

yet

cannot

we

forecast the

effect

of

these forms of telecasting. Opiniong vary wi^eiy> hut there is no

both have their

merits.

Theater

proved

itself

TV

has

own

already

I

have

plication
of

seem

to warrant

conclusions
be

as

do

its

issue

of

"Newsweek"

headlined

"Electronics

up

chan-

wt}jcb aPPear already to be
It does not seem

likely that

scarce.

tern

of

channel
dance

wjp

this

authorize

sort

until

of

Will

to

there

any

take

is

television

an

sys-

over

a

abun-

which

front

Rule

was

cover

the

Air."

Already the electronic equipment
on airplanes in some
cases has a

of

our

the

elec¬

nervous

which

But

tire

World

some

War II plane, and in
planes like the night fighter

interceptor, the electronic equip¬
ment

represents

the value

introduction

of

important

factor.
seen

less

half

With the

guided

electronics becomes

as

than

more

of the plane.

missiles,

an even more

And

you

have

statements that

few years warfare in the
know

it

will

now

no

of the pilot-

era

aircraft, both for attack and

defense, is in sight.
We

in

will

all

-

the- automobile

likelihood

find

that

electronic
production
for
military purposes, especially for
guided missiles, will be continued
at a relatively high level for a
number of years to come. The im¬

industry has

rubber, steel, and oil
The

automobile

has

pay-as-you-see

television," and

color

are

tive

television

'factors giving

all

construc-

added impetus

manufacturer

with

a

certain

volume of business, but more im¬

portantly,
search

the 'fact

that

the

re¬

been most

in

most

military electronics

pro¬

■

scien¬

a

of the country's fore¬

electroqics laboratories who

said "human activities in the
next
half century will be affected
more

by electronics than by peacetime
of atomic
energy."

uses

Dillon, Read Group

.

Offers Geianese Debs.
Dillon, Read & Co.

Inc.

heads

investment banking group com¬
prising 110 firms, whcih is offer¬
ing for public sale today (Oct.
18)
an

a

issue of
$50,000,000 CelaCorp. of America 3y2% de¬

new

nese

provisions

one

entirely

created

even

business—that of

new

the tourist court, or

motel,
popularly called.

now

it is

as

fortunate enough to in¬

was

vest his money

in the one or two
companies that have continued to
grow

or

shrewd

was

enough and
to follow the

had

time enough
changes taking place in the for¬
tunes of those companies in the
industry, and shift his investments

with

the

changing

quire

tides,

has

profited handsomely.

industries.

many

Similarly it will have its casual¬
ties. But there

be little doubt

can

in anyone's mind that in the

long
influence will be highly

its

run

constructive

on

economic and

our

social well being.
For- the in¬
vestor, the problem is more com¬
plex. His concern is to select the
companies with top management

which

promise

to

share

growth of electronics
of

debentures

new

the

in

primary

as

equipment

and

be

that they will benefit and not

harmed

by this

science.

new

finally, he should invest an
important part of his portfolio in
companies which promise to widen
their profit potentials by the ap¬

plication

of

electronics

products

own

and

methods.

is

in

scene

a

their

to

production

\.

There

1,
1976,
inclusive.
The
aggregate of such amounts is $30,000,000.
The corporation, at its

option,

to

says

his

spirators, "and

we

current

it

when

date

IV

new

amount it is

fellow

obligated to retire on
Sinking fund redemp¬

tion

is

cannot

wait to

must take the
or

Fund.

has

or

company

a

success.

bark

on

means

make

ments until the

For

that

our

current

carried

the

invest¬

of prog¬

well along toward

We must be ready to em¬
an

investment when the

current starts

Optional re¬
from 103%

par.

range

750,000

will

be

corporation to
its

sale, $19,by the

applied

the redemption of

outstanding 2%% serial notes

due
be

1953-58.

added

The remainder will

to

its general funds
which will continue to be used in

part for capital additions to plants
facilities.
The
corporation

and

and

its domestic subsidiaries

have

under

construction,

for

proved

additions

000,000,

now

or

ap¬

construction,

estimated

including

to

capital
cost $47,-

new

petro¬

plant at Pampa,
the Panhandle area.

Texas,

a

chemical
in

Mitchell Sees. Corp.
MIDLAND,

Tex.

—

Bancroft

Mitchell has formed Mitchell Se¬

curities Corp.

with offices in the
Mr. Mitchell was
partner of Bancroft

Allen Building.

formerly

a

Mitchell & Co. of New York

Other

officers

L. M.

are

of the

new

City.
firm

Mitchell, Vice-President,

and B. L. Potter

secretary.

Joins Lester, Ryons
(Special to The Financial Chronicle)

LOS

ANGELES, Calif.—JamesGray has become affiliated

M.

with

Lester,

Ryons & Co., 623
Street, members of
the New York and Los Angeles
Stock Exchanges. Mr. Gray was
previously with Hill Richards &
South

Co.

Hope

and

Bateman, Eichler & Co.

we

development

a

price

demption prices

con¬

phrase, "we must take the current
when it serves," if applied to in¬
policy,

through the
sinking fund

such date.

of

lose
our ventures."
This very clearly
defines
the
investment
policy
which we have developed at Tele¬

vestment

on any

additional amount of the
debentures not
exceeding the
an

'

Act

serves,

vision-Electronics

redeem

may

sinking fund

Shakespeare's Julius Caesar where
Brutus

the

of

-

April

to

investments to make

present

semi

re¬

retire

annually
1, 1956 to April 1, 1966,
inclusive, and $1,000,000 semi¬
annually from Oct.
1, 1966 to

diversify part of his funds in this
group. Secondly, he must examine
his

to

Of the proceeds of the
/

Similarly electronics will have
on

corporation

to par.

Selectivity
effects

fund

the

$500,000 principal amount

Investors Must Exercise

its

Oct.

are

from Oct.

I have cited before the casual¬
ties among the automobile manu¬
facturers. Nevertheless, the man

who

due

debentures

Jacob J. Gilbert Opens
(Special to The Financial Chronicle)

LOS ANGELES, Cal.—Jacob J.
Gilbert has opened offices at 756
South Broadway, to engage in the
securities business.
He was for¬

flowing. We cannot merly associated
Manning.

with

Phil

R.

wait until electronics has become

important part of

be made

that

a

as

soon

company

as

a

company's

it is apparent

Joins Renyx Field
DENVER,

Colo.—Mrs. Jane I.
joined the staff of

is either growing

Ferrell

has

starts

Renyx,

Field

in the field of electronics

or

using electronics to improve the

u

(Special to The Financial Chronicle)

Voct

on

aptly stated by

one

Sinking

velopments and has

the

provides

more

examples of this sort to illustrate
impact of electronics. This
impact in its broader sense has

plus accrued

basis. In the long run, theater TV,

it

have, to

the

resulted in many constructive de¬

an

fact that

will

cases

poses, but on the other hand it has

operations. The investment must

obvious

in most

good
extent, discounted the
benefits. I believe it is safe to
say
that we will find more and

1, 1976.
The
priced at 100%
interest.

portance of this is twd-fold. First,

programs

on ^

pro¬

item, the price of its

bentures

the

public

an

a com¬

eliminated the carriage maker and
the blacksmith for practical
pur¬

free

available to the

has entered commercial

duction of
stock

a

railroads.

marked expansion in

a

the cement,

ress

-

pany

and

time

some

problem to the

resulted in

its

be¬

generally known that

Auto

passengers

freight has been for
serious

of

the

af¬

was

industry.

of

salability

is

come

indus¬

an

economy. I have mentioned

automobile

transportation

value greater than that of an en¬

air

casting involves tying

fcq

the

on

longer exist. The

tele-

not

was

science

a

its

And

of

General Spaatz' article in a recent

can

of

called

fecting all the different segments

action. Perhaps some of you read

field

any

system

are

industry,

our

that electronics

try but

be called the

can

be

producers

ap¬

you

tremendous

every

drawing

pointed out, however, that the

of

of

can

such

speed of de¬
velopment and innovation in elec¬
tronics that by the time it has

tist

steel

as

tronics

sure

in

to its future. It

pay-as-you-see

nels

All

Just

impor¬
military

tance

we

not

Phonevision

the

of electronics for mili¬

a

on

are

which

to

uses

discussed

purposes.

within

Radio

the

not

Zenith

certain

conditions

electronics is being put today.

undoubtedly

as

for

net¬

controlling

weather

of

having a great
types
of
sports events. The very limited
tests
conducted
in
Chicago by
potential

ves¬

radar

of

means

when

aware

of

a

few

tary

ago

being installed not
liners but lake

installing

are

a

two

Lawrence,

more

would otherwise halt it. These
but

rapidly in the field of color. About
weeks

and

of communica¬

means

sels, and the great harbors of the

system

present black

and

complete electronic

or

equipment.

being in¬

are

railroads

of the natural gas pipe-lines

some

world

on

competi¬

men,

industry

be received

his

attended

on ocean

and white sets without any added
equipment — will be available
within two years at the most,

to

a
recent speech at the
anniversary celebration of
the sending of the first train order
by telegraph, the Chairman of the
FCC pictured as a future possi¬
bility radio-operated trains un¬

only

can

measuring

100th

well if you are to

all-electronic

and

ma¬

a

In

bow

Radar is

an

the

manufacturer will

a

tion.

the

reaches

be used for

control

operations
have

it

Already elec¬
approaching the point

present black and white sets, and

in

other indus¬

on

components

industries.

economic

aspect of
which must be evalu¬

its

as

believed

in¬

tinuous and careful study.

economical

as

the

the greatest opportunities
profit. But they require con¬

an

the picture in color. It is gen¬

offer

vestor

on

converter

forward for the

that he choose with

broadcasting, requires

see

as

previously pointed
out. From the investor's point of
view it is,
of course, necessary

adaptor if it is to be received
a

electronics

occur,

I have

reasons

electronics

television broadcast-

ing system is fully developed, 90%
0£

dustrial

and

a

the

"Electronics Buyers
lished
names

be

is

system, and promises to become a
large part of its brain. I have said

from

^question that

By the fall of 1952 it is estiated that combined civilian and

of

broad

It

just about 10 fingers.

figure of

$100 milliorli In 1951 the total

revenues

that

Billion Annually

make this states

recognition

entered

which will be compatible—that is,

Over

in

the

For

*

backbone

erally
Electronic

electronics

is

*

facture of automobiles. Today you
can count
the companies left on

of the

revenues

cases,

labor.

full

that

question

no

sense

enter

.

by social tions Commission, Mr. Wayne Coy,
pheaval and the exploitation of that when the freeze is lifted and

stages,

in

is

This

usefulness

present products.

million. Of this amount, telecastjng ajone contributed something

seen

early

I

economy.

ment

*

electronics.

developments

new

use.

$550

high

new

lion.

its

in

our

economic

expect from

constructive factor

a.

with

us

peacetime

been true of every in¬
development. If memory
serves me
correctly, there were in
1920 100 companies in the manu¬

revolution

industrial

,

Th« Broadcasting Industry

difficult to appraise,

are

first

characterized

as

be

have

In 1950 the total

over

economic

and

social

The

that in the broad
will

the

are

we may

There

electronics?

vides
for

Constructive Factor

a

then,

effects which

fact

broadcasting industry, including
both radio and television, reached
a

•„

of electronic devices will

new peaks.
T

lives within 20 to 30

ffect

What,

reach a figure well above the
stupendous 7y2 million unit output of 1950. It can be concluded,
therefore, that even without production of military equipment, the

oughly with World War II, will
chieve the greatest part of its
our

Electronics

Impact of Electronics

amazing growth of

broadcasting..

33

Pnlfav

&

Co.,

Avenue.

Inc.,

2239

34

The Commercial and Financial Chronicle

(1482)

Continued

Defense production at its maxi¬

from first page

uThe Camel's Nose Is
if

standing as I do.;
said the Arab.
"Come wholly inside. Perhaps it
will be better for both of us." So
the camel came forward and

for which the nation was
founded, which is the welfare of
its individual citizens and not the
pose

the tent open by

yes,"

"Yes,

crowded into the tent.

difficulty

The Arab v/ith
crowded

went to

again

quarters

the

in

sleep. The next time he woke up
he was outside in the cold and the

himself.

camel had the tent to

of how
he got
there, the important point is that
the camel of government control
now has his nose under
the tent
of free competitive industry and
is crowding in. We will all have
to watch him or he will take over
the tent, and we will lose our eco¬
nomic freedom and with it all our
other liberties. Of course, if the
camel is
really successful in
taking over the tent, the members
of the Society for the Advance¬
ment of Management had better
be studying how to become gov¬
ernment bureaucrats—not how to
become more effective members
of our marvelous American in¬
Independent

,

V?

*

aggrandizement of the state or the
temporary rulers thereof. It would
be tragic indeed if our efforts to
organize military strength to save

major

two

problems today. One is the possi¬
bility of becoming engaged in a
third world war. The other is the
problem or danger of-losing our
type of free society in the process
of preparing for war. This is the
one I
am going to talk about to¬

present

The

emergency

is

being used to promote regimenta¬
tion under the false assumption
the job done.

get

best way to

is the

this

that

Some regimentation

if

preserve, or

overdo military

we

world

third

a

after

even

leave

the

desire

the world

country was

our

nation

our

the

of

rest

pointed out in

the

"Detroit

under

last

Korean

is now more
old. It is still

war

months

15

-spoken of by some as a police ac¬
tion. It is much more than that
the

to

who

men

the

doing

are

fighting. It has already developed
linto a war of considerable magni¬
tude with all the

that always result
*from war. We and our allies in
the United Nations are trying to

aggression, but we are also
trying to localize the fighting. We
are not using all our resources to
vanguish our known enemies. The
free nations still hope that in this

supposed

deter

still is
check Com¬

if

they

proof that

would be hard,
and they would probably not win.

the

"But it

intended that

never

would confront the Communist

world

with

project

or

way

was

which

immediate

their objectives in Korea can

precipitating

be achieved without

future

Russia genuine fears
security and thereby impel
strike while there is yet

give

for her
her

the

power,

of armament

a program

in

might

preponderant

to

"Those outside the military es¬

supported

have

now

rearmament

will

not

support it that far, for they realize
all too well that

jeopardy for another,
gravely menacing because of

more

its

it is but trading

form of

one

nation

cannot

long in

once

for

peace, or

perity,

live

in relative pros¬
it is converted into

armed camp.

an

.

<

t

beggared by
cost of military upkeep, and
starving of the supply to its

the

currently required by the military
program is left available to the

There

free market.

the

Controls

do

not

produce

Controls

ian

or

evils,

The emergency

of the Korean

defense

the

and

war

program,

^however, is being used to justify
more
and more government re¬
strictions and controls. It is being
used

to

justify more and more
state planning. It is being used to
more
policies
inconsistent with thfe fun¬

justify
that

are

damentals of

people

and

more

free society. Many

a

coming to believe that
danger of a third
war
is
lessening. Many

are

immediate

the

world

believe

more

losing
our

that

the

danger of

society through
internal policies is in¬

our

own

to

get
after

over

short.

itself

In

free

a

is

society

money

he

cannot

have

to

free

times past have met ruin by hav¬
ing to make this same fateful
choice,
"Vast

Due

to

our

and

industrial

great

initiative

the

and

our people, we can have
great military power when we are
forced to organize it. By organiz¬
ing that strength now we hope to

avoid

a

third world

organizing
war

we

Americans

strength

our

lose

the

to

willing to fight
unfortunate

a
as

avoid

freedoms

have enjoyed

years, we would
values for which

so

But if in

war.

lose
we

war.

to

that

for

very
would be

If

we

become

gaged in another world

175

the

war,

I

are




the threat from Russia

society,

At the present time,
sorted to

and

a

production

the

same

ices

offered

his

than

money

something
of the

tion

goods

else.

separate

trols

his

such

of

the

it

own

program

the

demand

enormous

for

is

denied

sidered
the

should
lost
of

hi

enough

to

in

Hazlitt
the

aptly

October

states

1st

really want to? For

effects
about
and

of
a

inflation

redistribution

income.

In

accept
in

will

money

them

causes

it

is usually

the

results

tions
are

By using the steel

the
^

assumed

justify
tion
and

the

steel

,

control

shortage

shortage
and

or

to

restric¬

inflation. Many of us are shouting
in effect: 'Hold down everybody's

price and income except my own'."

the

From

real

cause

by using the threat and fear

pressure

such

circumstances

groups

are

their

rule

weakened

and

the

as

dissatisfied
that

on

plan
peopl

when

of

some

con

planner:]

the

the assumj

which the plans are base

false.

Under

such

condition

serting their liberties.
An

indication

what

of

we

ca!

from such governmerj
planning was contained in
expect
recent

editorial

in

the

Free Press." I will read

"Detroj
it to yoi

~

"When

price control agent,
predawn raids on 50
slaughter houses we * admitted!

made

the

the

y ■

couldn't
/ was

standpoint

of

increase

the

money and

inflation,
in

the

credit

as

of

con¬

which

quantity

is

"We

of

of inflation and all the talk there

is about
in

created

new

and

it to

regard to

iighting. We
Marxism
sors,

and

confuse

what
are

our

minds

really
fighting militant
we

are

totalitarian

aggres¬

and increased prices and

ma¬

y

•

think

no

Sherlock Holme

is necessary now to make the cor

compared to

deduction.

rect

quantity of goods and services

terial

Creating New Pressure Groups
Under

commercial

must

of the

—again.

early stages
(until it reaches the point where
it grossly distorts and undermines
production itself) it benefits some

production,

of

will

controls divert attention from the

its

building up too big own incomes faster than our living
military organization, we face costs. So there is a great deal of
the added danger that our civilian
*ihypocrisy in the outcry against
basic individual rights lost.

citizen

trolling inflation, price and wage

a

many

all

only kankaroo courts, secret polic
and finally military dictatorshi
'will prevent the people from
a^

down

swoop
was

on

is that th

It

the slaughterer

meant to

hypnotize the hous^
believing her budge

wife^ into
.was

being

by

guarded

the pric

control farce at the very momer
more

cost of

being

problem

and

intentio '

bring

tent..v;;;.yy

of the

from

economy will be undermined

be

become

af¬

over

best

population

the

to

realize

too late to undo the

already taken

entire

will

to

economic

the

finally be coercive becaus'

Otherwise

damage which has been done. The
camel has

j

sme'

the part

form

government

all

camel

you can

see
what tangible resu^
supposed to ensue.
"However, close in their wak
the price of beef has been booste

to
of

their

This

close

so

with

must

and

many

controls

That

personal affairs of

are

place

certain poll

a

air.

of those who have th,
responsibility, any form of stat'
planning of the economic an

regimented
since when

ability to buy

detect

the

Planning Is Essentially

on

of the major

people since
led to believe that with

more.

of

Coercive

fairs under the fallacious assump¬

the

ar

wealth

one

is

one

tion that government knows best.
When they find out differently

issue, of

fror

we

Even

ever

with it gradually many
other freedoms. Price con¬

intervention

re¬

different

systems

State

economic freedom is

pay,

are

too

ultr

of

controls decide who
and
how
much
he

temporarily

sults in unsound financial policies
that inevitably lead to inflation.

Henry

continued

fully

a

deceive

buy

all

cover

able to

con¬

and

our

price

con¬

politically feasible to tax

people

re

defens

will

we

him.

production,

the-market

what

gets

and

Usually

these circumstances it is not

in

not

crowding in

II, are examples
talking about.

am

government

they

rise.

been

the desire and

an

goods

the

o

em

We must

war.

during

Otherwise

totalitarian

tion

interests

control

and planned economy,

trols

to

have

Price control is

services of all kinds that appears
to
be
insatiable.
Consequently,

tend

vested

rubber

steps toward

will.

result

be

of

they rapidly

government

of what I

and to ordinary civilian
-

One

govern¬

since World War

for

power

big
military program are added to an
already big government spending
requirements,

and

which

from his

man

powerful

synthetic

through taxa¬

a

against his

money

spend

un

resisting. Not only is the camel:

name

make them permanent. Rent

buy but will

or

in the

controls.

evils

great

the

and habits of mind which tend to

serv¬

would

Only

government

can

and

he

he will not

money,
save

hand, in a free
buyer would

a

the

is

inflation, we have re¬ nose under the tent but any of yo
system of wage, price who will take a deep breath wil

of stopping

government activi¬

unless
have

It

only hope

our

big

them

ernment

create

rather

another

move

another

of Controls

Evils

of

and

of

they

as

that

mately create by our own intern
policies a form of autocratic gov

ment controls is that

social

is

them.

remove

getting rid of them is at the

it

-groups at the expense of others. 'currently available. Hence direct
be, we must continue to run The first
"controls are treating the symp¬
groups acquire a vested
risks in that quarter, rather than
-interest in maintaining inflation. toms and not the disease and thus
visit
an
entrenched
militarism
Too many of us continue under prolong and intensify the inflation
upon the United States."
the delusion that we can beat the they are represented to cure.
In addition to the danger that
We must not allow this
game—that we can increase our

.

living increases wer

authorized."

,

If the present

trend continues,
expect to read in the papers som
morning that one of* my fellm
citizens
thrown

has
in

been

arrested

jail for

steer the wrong way.

an

cuttings up

In the mean

enemies but problems to be over¬

time, serious offenses against th
common good will be overlooker

come.

and the morale of

shortages

Just how much

are

we

of

can

not

our

improve

suffer.

the nation wi

•

.

inflation to justify wage and unsound
economic
policies
are
About six weeks ago, a felloi
.over the history of
the past in
for
price controls, the economy of the .adopted
politiral
reasons. rthe
present emergency remains to Detroiter, John S. Coleman, Presi
whole nation is being placed un¬ Governments themselves are usu¬
be seen. It will depend on how dent of Burroughs Adding M
necessarily under increasing regu¬ ally the worst offenders in this .well, the
people of our country chine Company, made a talk i
lation.
Whatever
materials
hypocrisy. It has always been .understand the facts and
are
Mackinac Island under the titl<
perhaps,
required for direct military pro¬ politically popular to spend and on how
"Business Looks at Government.
big.the defense load turns
duction, of course, must be made politically unpopular to tax.
out to be. If too much reliance is He said several things so well th*
available and civilian shortages
Theoretically it is possible to placed on -a multitude of direct I am going to quote them to yoi
created if necessary

en¬

that purpose.

am

war

that America and its allies
would ultimately be victorious.
But we wouia again lose the
peace
mire

as

This

as

may

<

capacity
spirit of

a

materials

war

applies to businesses and all forms
ties. On the other

war

to

thinkable

is

things

The

a

long continued, and we mu]
develop a situation where w

fear

why under such conditions
have usually resorted to
currency and credit inflation.

do that

or

afford.

now

for

pay

certainl,
society if the]

period.

activi¬

many

not

free

a

ou

We

nations

ties. If money were no object and
the
ability
to
buy
unlimited,

think of

are

money

an

mor(

no

reason

always

the overall rationer of all

cannot have

be

price

be

can

difficulties.

re¬

to

increase

temporary expedients in

ap¬

produced.

are

short supply ever since World
War II. Even when nothing else
money

present

be

can

direct

controls

point

expedient to raise all the
required to
is fought or

Therefore,
wage

than

seems

press

by running machines.

other
to

increase

bookkeeping entrie

and

never

be

printing

than production

his

equities and

in

jth'

If

to do so, the mone

always

can

between different

as

it

supply

of

to

difficult

so

policies

supply.

supply.is inflated a heplateau of wages and prices wi~
inevitably result. If it is the na

political

a

new

citizens that

have

left

in

short,

is

sponsibilities

is

military effort. Shortages are
not new, even in an
economy of
plenty. Many materials have been

is

it

will

what

on

the

we

"Our magic is not greater than
that of other countries which in

creasing.
i

Hitler did.

as

third world war.

fiscal

nation',

money

citizen

relation

From

view

praise these

■

a

money

the

the

of

share

each

financial

controls, the civil¬

no

economy

along

of

fair

a

in

carry

abilities.

any

question to be asked today is not
how can we stop inflation, but do

off these

and

flate

divide

problem

that

load

health,

age,

the

is

what

war

should

tion,

ward

how

also

is

deciding

pression and political demoraliza¬

to

monetary

sto

cannot

as

faster by running
and making

"Newsweek." To quote, "The first

will take the road to war, even

of

long

balanc*

into

controls

so

tribute the shorter supply of goods
and services.

case

or

to

problem

brought

tional policy

civilian economy will promote de¬

we

inflation

obtainin

advantag

demand and suppl;

new

direct

equitably new wealth currently
being created and how to dis¬

government expenditures. This

"Either it will be
the

But

from

financial

being

are

intensifies

the

prices

multiple dangers.

"This

commodities

temporary
while the

of the population. This

ma¬

When the expenditures for a

.

until

of

re¬

war

and the civilian economy
be maintained if

he would like

to undertake a gen¬

were

eral war,

we

other

reasonably

everyone can

visible

with

or

taken out of total

are

the balance of these materials not

can

to

Russia,

forces

its

satisfactory sub¬

these

for

purpose

munist aggression and to provide

stop

way

the

Down

Road to World War III.";

hardships, death

suffering

and

Sunday,

"Over-Arming

Nation

the

Lead

—

editorial in

an

News"

title

the

tablishment who

The

or

world.

the

danger of over preparedness

was

society in peace.
than

has

ambition to control

or

time.

'

make

and

of

rest

that

and

dominate

Can

terials,

less

or

Materials

adhering to the pur¬

are

after the defense

left

are

who have the health and strength
to work or fight) and the balance

actually reduce the supply.

for which

The

more

Still

now

that

production.

Controls Reduce Supply of

a

services

and

quirements

But

cases

we

Direct controls may
stop a litth
profiteering. They may preven*
individuals, businesses and owner

over

work

can

war,

establish

policies

tional inflation and future trouble

goods

of any material but in many

founded
no

out

stitutions

materials.

more

clear to

pose

management

stable

national
it

critical

We must clarify our inter¬

peace.

that

so-called
American

with the unsolved prob¬

us

of how to

lem

pay

the

would

victory,

will

What actually occurs in time of
military war is that there is a shift in
program requires a much bigger- equities, opportunities and respon¬
percentage of the supply of certain sibilities between producers (those

that

know

all

a

Such

war.

All
regimentation is fatal to a free
be necessary in war.

may

loss

preparedness and
are
at least
partly responsible for precipitating

to

Problems

faces

country

the

in

liberties we seek to

very

"Our

Two Major

day.

the

of

resulted

liberties

our

dustrial system.

Our

of the basic pur¬

lost sight

we

who

and

industry itself.
We

Finally the camel said: "May I
not stand wholly within? I keep

dollars

Obviously, the nation and
the people must live on the

all

steel is being rationed contrary to
the recommendations of the steel

Under the Tent"

in

cost

them.

planned rate will probably
not require more
than 15%, or
at the most, 20% of the nation's
steel capacity.
Nevertheless, all
mum

Thursday, October 18, 1951

...

to accomplish

However, the Korean

fight

a

war,

pay

for

it

as

it

is

being fought, and avoid inflation.

controls

of materials,

production,
prices instead of on a

"The

State

is

too

remote

an

provide - for th
defense pro¬ We realize that this is true when few indirect controls
affecting the essentially intimate social need
gram
are
probably taking less we think of the cost of war in money supply, the financial his¬ of human personality. There is n
than 10% of the country's
greatly terms of physical goods and where tory of World War II will be short cut to our goal. The huma
increased steel production.
.they come from instead of the duplicated and we will have addi¬ problems of the corporation ar
and

the

direct

wages and

impersonal

to

Number 5056

Volume 174

solved by calling

not

alized

alL

it

undertaking.
troubles

our

of

issue

legal
collective

ownership is

attractively

But

not

do

we

nature of work in mines

or

rights.

majority

of

the

indirect

inflating

will

still

be

.interested in his wages, his hours,
his working conditions. He will
;

still

want

participation.
;with

his

-

still

We

seek to resolve

we

Exactly the

results

same

occur

government takes over the

control of wages, prices and

v

problems of
industrial
system

solved

not

time

in

even

eminent

our

are

of

J by the simple expedient of
t

pro¬

The

1 American

taking control. As

a

war

govmat¬

ter
of
fact, the problems
are
1 usually magnified and made much
more difficult, since the effort is
.

to

imade

them

solve

in

ivory

an

J tower

and not ion a local and
case-by-case basis in the factories,

t

cities and

mines,

"where the

communities

people live and work.

great virtue of

can economic system

■

our

Ameri¬

is its ability

adjust production and prices
changes in supply and demand
through positive
incentives for
individual action and by competi¬
to

tion at the grass roots

rather than
by government directives from the

v

top.
C

Our high

standard of living can¬
on the grounds
%of natural resources, important as
not

be

explained

they are*. Others, too, have great
resources. Nor, can it- be

f,

; natural

explained by claims of racial
superiority. We have a common
racial background with many
other nations, since most of our
ancestors

from

came

Europe,

.v

|; sponsibility that

comes with per¬
sonal freedom. They have had the

opportunity to educate themselves,
to choose their own religions, to
t select' "their
own
occupations,*; to
♦ accumulate
capital'-arid to invent
/ better ways of doing-things. Thus
j they
have developed their indir, vidual talents, energies and in¬
itiative
to
the
maximum/ and
through striving to improve their
own welfare they have raised the
level
of
prosperity for all
Americans.

j;,;/-

...

still

is

Americanism

<£• .-J..
the

before

much

not too

philosophy in the world
today.'Based on the principles
recognized by the founders of our
country, the government of the
United States has been a great

probably the most brilThis is
system we must continue to
preserve at all cost.
.

Casualties

A

.

.

';s

it became
time, of
approaching and that

In the spring of 1945

to

clear

victory was
some
of the

the

that

me

existing

manpower

restrictions should be removed so
(

planning for peace could be-

that

trade paper declares. In fact, it states,
impact of the regulation will not be felt

November.

However,

while

experience

to

him. He was
very courteous to us, listening to
our
whole story, but apparently
did not think that the timing was

■

see

right. He said, "You engineers and
mechanics don't understand po,:litical

leaders.

leaders

Political

keep
looking over
their
shoulders all the t'meto see if the

vmust

boys
are

still t

are

not

still

s longer polith a
,,' What I am

v-directed
may

t:T

that it will

ing

they

e,

regard

no

are

^ders."
.

'

.

today is being
nericans

t

read

If the boys

re.

in
:s

±se

the

who

hopes

their think-

important




or

show

more

below those of

hand, took place

the

date is

current

index

is

still

13.9%

above

the

a

a

de¬

year ago.

among

small

pre-Korea figure of

of 31

Plan tickets still

generaLtrend of food prices at the wholesale level.

are

The

unplaced.

Steelmakers

generally

accepting no forward orders for
shipment' beyond first quarter except in cases of high-rated mili¬
tary requirements. One exception in this regard appears to be
cold-finished bars.

Last week signs indicated

makers continue to confine
and

they

are

cold-finishers

so

strong

to tax

directions

it

as

demand

awhile back.

was

303.54

that shipment.

does not

earliest.

last

in

still

wage

authorities

Right

increase,

claim

and,

another

be offset by

must

that

a

American Iron

The
the

operating

rate

corn

concludes

are

"Steel"

Steel

steel

point from

a

This
steel

week's

ingots

101.8%,.

a

week

Institute

ings

5

operating rate

and

castings

2.035,000 tons

for ithe

of

Electric Output
and

power

mated

at

;•

The

week

was

to

as

Cocoa

futures

commission

the result of better refiner demand.

as

Domestic cotton prices moved

week, but

steadily downward most of the
sharply at the close to register a mild advance for

rose

the week.

'.

bales,

with a 1950
of 12,030,000 bales.

compares

average

a

ended

represented a decrease of 5,153 cars, or 0.6%
below the corresponding week in 1950, but an increase of 284,522
cars, or 49.5% above the comparable period of 1949, when loadings

by strikes in the coal and steel industries.

Previous Week

total of

112,868

like week of 1950.

:

,

,

compared

units, and

with

previous
174,234 units in the
the

•

production last week in the United States was
higher than the previous week, but about 35% below

Passenger
about 9%

units,

(revised)

car

the like week of last year.
For the United States

alone, total output rose to an estimated
116,040 units from last week's revised total of 106,359 units.
In

the like week of last yea#Output totaled 167,909 units.

Canadian

output ip the week totaled 5,311 Units compared with 6,509 units
week ago, and

6,325 units a year ago.
"" •
output for the current week was made up of 91,611 cars
and 24,429 trucks built in the United States and a total of 3,651
cars
an(j
trucks built in Canada, against 4,479 cars and
2,030 trucks last week and 4,657 cars and 1,668 trucks in the
a

comparable 1950 week.

a

a

10-yea

was

reported for the period

1950 week, Dun &

high total reached in the corresponds

Bradstreet, Inc., states in its current

ago

year ago.

consumer

an

Total retail volume in the
was

While

considerable

increased demand for canned goods.
The
interest in meat remained centered largely on the lowerwas

priced cuts; this was accompanied by
for fish, eggs and milk products.
week

a

fruits and vegetables continued to be sold in

volume, there

,

virtually unchanged from the week-

figure and it continued to exceed that of

fresh

summary
.

,

was

an

appreciably larger demand

period ended

Wednesday of last

on

estimated to be from 2% below to 1% above

Regional estimates varied from the levels of

a

year

a

year ago.

ago

by the

following percentages:

Combined motor vehicle production in the United States and
the past week, according to "Ward's Automotive Re¬

week's

of 10,012,000 bales, and

of trade.

New

England

0

to

+4;

East —3 to

+1;

South

+1 to +5

Middle West —4 to 0; Northwest —2 to +2; Southwest —1 to +3
and Pacific Coast—5 to—1.

Department store sales

Canada

121,351

reports of

on

sustain volume above the

Output Gains Lift Level by 9% Above

to

stimulated by

Wednesday of last week.
The response to numerous
promotion sales held throughout the country was not enough tc

4,459,000 kwh. above that of the pre¬

The week's total

advanced

crop

A moderate decline in retail sales

further moder¬

Loading of revenue freight for the week ended Oct. 6, 1951,
totaled 858,750 cars, according to the Association of American
Railroads, representing a decrease of 5,823 cars, or 0.7% below
the preceding week.
!
V *
"

ports,"

was

Trade Volume Eases the Past Week

;

Carloadings Show Decline from Previous Week

Auto

demand

Subsequent weakness was influenced by private crop esti¬
indicating a sizable increase in the prospective crop.
Th
market strengthened materially, however, on the publication c
the official Sept. 1 forecast, which showed a reduction of
360,00
bales from its previous estimate.
The latest estimate, 16,931,00!

Retail food volume

reduced

year.

slightly for the week, but buying was mostly
bakers and jobbers had previously bought in

mates

ceding week; 651,789,000 kwh., or 10.0% above the total output for
the week ended Oct. 14, 1950, and 5,480,735,000 kwh. in excess of
the output reported for the corresponding period two years ago.

were

offerings decreased

strong holding movement in the South, coupled with active do¬
mestic and foreign price-fixing.

2,041,000 tons of

previous week.

total

current

as

dipped slightly the past week under -the
house and short selling.
Manufacturer
demand for spot cocoa was slow. Actual coffee prices were steady
and firm, aided by replacement
buying of green coffees by roasters
at the week-end.
Domestic raw sugar prices turned upward in the

distributed by the electric light

Output in the latest reporting week showed
ate rise above the

fill-in nature

influence of

Extends Gains of Previous Week

.

a

quiet.

industry for the week ended Oct. 13, 1951, was esti¬
7,160,380,000 kwh., according to the Edison Electric

Institute.

Rye advanced sharply

Scattered sales were reported to Norway and
Latin America, but export trade on the whole remained
extremely

a

The amount of electric energy

heavy rate.

fairly large volume.

this week

compared

indicating serious

crop due to freezing temperatures in late Sep¬
Oats strengthened along with other grains; country offer¬
remained light while farm consumption was reported at a

Early in the week,

industry,

early weakness
buying of cash

to the

corresponding week last

-

entire

After

demand improved.
Average daily sales of all grain futures
the Chicago Board of Trade last week totaled
42,200,000 bushels,
comparing with 49,400,000 the previous week, and 26,000,000 in the

week ago, and 101.2%, or 2,023,000 tons
a month ago.
A year ago it stood at 102.0% of the oM capacity
and amounted to 1,967,300 tons.
or

active.

result of fairly steady foreign

on

having

is equivalent to

quite

was

the past few months

and

facing threat of
magazine, trade

announced

companies

ago.

as a

over

year ago.

and reports from some sections of the belt

very

price increase, if granted.
of

corn

a

tember.

increase cannot possibly be absorbed

and

week earlier, and with

a

year.

aided by the

said to be about double those of

damage

93% of the
steel-making capacity for the entire industry will be 102.1% of
capacity for the week beginning Oct. 15, 1951, or an increase of
0.3 of

pound

show the

generally finished slightly higher than

was

Flour prices rose

.the steelmakers

now

9, comparing with 302.77
corresponding date of last

Trading in
prices firmed up

evidence.

rising.

per

is to

Mid-July

Export clearances of wheat and flour

summer xon

another

prices

were

seem

stainless and tool steels, prices have held at the
January freeze levels. However^ costs have risen sharply since and
are

the price

a week ago.
delayed harvest in western Canada and a
sharp falling off in Spring wheat marketings in the Northwest.

finished steel and related product price
Except for' isolated revisions, such as

on

the

Wheat

Bars

'

;

pressure

of

Grain markets at Chicago were somewhat unsettled last
week,

quickly taken
up on defense account and there is little prospect of any likely
change in acute steel supply conditions until well into next year

is

total

Oct.

on

but

quite
Overall requirements continue
pressure

on

290.28

the most part any lack that appears in demand is

Upward

sum

and its chief function

Level Since

producing capacity, but needs of certain manufacturers have

structures

the

use

Rising sharply toward the close of the week, the daily whole¬
sale commodity price index, compiled by Dun &
Bradstreet, Inc.,
reached the highest level since mid-July.
The index closed at

definitely eased off. This is true principally in consumer durable
lines, such as stoves and sanitaryware, where cutbacks in supplies
and heavy stocks of finished goods have forced production cur¬
tailments, "Steel" observes. On the other hand, some consumer
goods lines, television for example, are showing signs of quicken¬
ing activity as manufacturers prepare for the holiday trade. For

at

general

-

were

appear
in tightest supply position currently, though all the
major items, plates, sheets, structural, pipe, are not far behind.
some

in

Wholesale Commodity Price Index Attains Highest

order acceptances to first quarter,

new

booking cautiously for

even

index represents

foods

are

opening books for second quarter; at least some of them were
accepting April shipment business. Expectations are they will
book additional tonnage for the period just as soon as they defi¬
nitely know what to expect in the way of final NPA allocations
and special directives, this trade journal states.
Hot-carbon bar

'gin. Someone suggested that I try
-to get Barney Baruch's support in
such a policy. One of my General
Motors
friends and
I
went to

to

were

ing heavily on this policy as regards carryover tonnage to make
way for a large number of fourth quarter Controlled Materials

reassuring, it is evident steel control authorities

,

.Washington

1939

The wholesale food price index, compiled by Dun &
Bradstreet,
Inc., for Oct. 9 remained unchanged at its previous level of $6.79,
or
slightly above the 1951 low of $6.77 touched on Sept. 18.
Although down 7.1% from the year's high of $7.31 on Feb. 20,

success,

the

other

from the
-

$5.96.

liant success in all history.

.

from the previous week and

slight

increase, on the
failures during the week.

.

down 47%

involving liabilities of $5,000

bank¬

new

liberal

below the prewar level, failures were
total of 237.

*

—

government move, this
trade authorities believe

The

simple fact is. that Ameri¬
the obligation
of individual competition as a re-

considerably less numerous than in the similar weeks of 1950
1949 when 188 and 172 occurred
respectively. Remaining far

and

.

•

have accepted

were

Wholesale Food Price Index Holds
Unchanged for Week

and
cans

the

Commercial and industrial failures dipped to 126 in the week
ended Oct. 11 from 133 in the preceding week, Dun &
Bradstreet,
Inc., reveal. In the fourth consecutive week of decline, casualties

*

—

_

From

to

(

under

tent.

35

Business Failures Continue to Decline
Moderately

crease

'

Virtue of Our Economic System
The

from

out

nose

we

getting that

are

"

duction.

camel's

We

of

all

of industrial culture as
whole, and they do not vanish
J when a private company becomes
a public
authority." when

:——

avoid

supply.

chance

any

well

a

*

—

■

will

that

money

our

want

products

,

the

Continued from page 4

and

standing

workers.

controls

We must adopt

Only when the
fellow citizens

magic talisman.,But,

a

the tensions

t

of

fellow

/hanker for

status

will

He

satisfaction

the

of

sense

a

and

have

Stripes.

miner

done.

initiative

understand these problems will

railroads by raising the Stars and

The

possible get rid

as

individual

with

defend the country.

the

on

personal

quickly

as

of direct controls which interfere

The/military
program must not be
expanded
beyond the minimum needed to

simple,

transform

must

right; things

the

or

(1483)

problems and their understanding
of them, thereby making it easier
for our political leaders to get .the

compass

into

private

The Commercial and Financial Chronicle

.

nation-

a

To

.

.

the

Federal

Reserve

on a

Board's

country-wide basis, as taken froir

index

for

the week

ended

Oct.

t

1951, decreased 2% from the like period of last year. In the pre¬
ceding week an increase of 3% (revised) was registered above the
like 1950 week, but a decrease of 3% was registered for the foui
weeks ended Oct. 6, 1951.
For the year
sales registered an advance of 3%.

to date, department store

Retail trade in New York last week suffered from heavy rain

and thereby reduced the volume of sales by about 3% below
of the 1950 period.

tha.

According to Federal Reserve Board's index, department store
sales in New York

City for the weekly period ended Oct. 6, 1951,
In the preceding
below the similar
week of 1950.
For the four weeks ended Oct. 6, 1951, a decrease
of 7% was recorded below that of a year ago, and for the year to
date volume advanced 5% from the like period of last year.

decreased 5% from the like period of last year.
week a decrease of 2% (revised) was registered

26

The Commercial and Financial Chronicle

(1484)

AMERICAN

Equivalent to—
Steel ingots and castings (net

oil

—Oct. 21

.

and

stills—daily

BUILDING

1,967,300

6,705.000

Total

——

(bbls.)

at

a.

19,259,000

oct.
oct.

9,329.000

——

oil

(bbls.)

at

Residual fuel

oil

(bbls.)

at

and

2,620,000

2,240,000

8,449,000

8,156,000

114,871.000

33,704,000

33,837,000

31,980,000

28,170,000

98,198,000

96,695,000

90,430,000

78,601.000

6

47,966,000

47,893,000

48,323,000

42,213,000

uci.

858,750

864,573

732,908

863,903

Oct.

709,524

702,392

612,958

Other

730,574

nonresidential

freight loaded (number of cars)
freight received from connections (number of cars)

Farm

Railroad
Other

NEWS-

ENGINEERING

-

All

RECORD:

construction

Private

Oct. 11

State

$156,697,000
88,065,000

Residential

68,632,000

112,239.000
86,234.000

106,926,000
24,967,000

62,586,000

57,306,000

81,959,000

23,746,000

11,326,600

Hospital

Pennsylvania anthracite (tons)
coke

Beehive

—

Oct.

G

981,000

937,000

592,000

996,000

-Oct.

6

139,500

*132,100

116,000

150,006

___

(tons)

•

12

357

297

___

■

_

35

__

Sewer

__

and

and

TEM—1935-39 AVERAGE

=

100

other

Oct.

——

6

.

.

xK

'289

*323

322

CROP

Electric

7,155,921

7,160,380

7,137,652

6,508,591

Wheat,
(COMMERCIAL

FAILURES

INDUSTRIAL)—DUN

AND

STREET, INC.

~

—

:

°ct- 11

.

X

v

164

133

126

All

18£

IRON

Finished

Pig

Oats

COMPOSITE PRICES:

AGE

steel

-Oct.

9

4.131c

4.131c

4,131c

3,837r

-Oct.

9

$52.69

$52.69

$52.69J

$49.1£

-Oct.

(per lb.)
gross ton)———

(per

iron

Scrap steel (per gross ton)

9

$43.00

$43.00

$43.00

$40.67

,

METAL

PRICES

<E.

&

M.

copper—

Electrolytic

<

J.

QUOTATIONS):

Straits tin

Lead

(New York)

Lead

(New York)
(St. Louis )

Zinc

(East St.

S.

24.200c

24.200c

.Oct. 10

27.425c '

27.425c

at

at——

Average corporate

24.200c
'

24.200c

27.425c

•

BOND

Average

corporate

.

.

98.02

97.98

98.85
'•

111.25

110.88
115.63

111.62

115.43

115.82

116.22

115.04

115.43
110.52

115.04

104.14

104.48

108.34

111.07

111.44 '

114.66

114.46

105.00

107.80

107.80
v.\> 110.70

V

115.24

109.06

XX

Sugar

Hops

2.63
3.12
V:

3.10

2.87

2.86

2.92

Oct. 16

2.62

2.90

2.84

2.7r

2.88

(12
(3

Cranberries

'■

Group

_

_

3.17

"3.14

3.48

3.45

3.29

3.29

3.26

3.11

3.09

2.8 f

2.92

2.89'

2.7C

.Oct. 16

—_

,

-Oct. 16

i

-

3.17
3.50

-Oct. 16

.

3.13

.'•

V

' ^

a%:.' 2.93

3.0'

—.Oct. 16

464.8

463.8

;

received

INDEX
AS

452.0

463.6

_____

6

287,590

206,321

262,017

218,174

161,170

231,6o3

Oct.

6

88

Oct.

6

528,885

90

566,141

•-

71

458,150

•

.

6,243

(tons)____™

10,682

10,326

36

13,49

36

2

61,605

58,33

119,892

61,755

123,12

■

(bushels)_„__w___

117,524
69.932

states)

2,70

232

24

177

(barrels)™—

53,48

31,14

3,166

232

states) (tcns)____™_„_™__™
states) (tons)__.

68,703
31,393

3,198

177

916

/:>

146,895

Piece

15)35-39

—

index

100

=

OCTOBER

915
133,904

148.0

148.3

.

RETAIL

125,6"

PRICE

(COPYRIGHTED

\)\

___—j____™_™—

100

132.

,113.

157.0

157.3

145/

156.4

151.

190.9

181.

175.9

176.1

150.

104.1*

104.7

'

;■

wash

153.

116.7

154.4

Woolens

131.

162.1

115.7

'

137.0

160.8

^.r™_„__

132.

137.2

wearz„

140.

136.8

188.1'

and children's

furnishings
goods—

138.7
147.2

136.8

1

Rayon and silks

763,6/9

141

137.7

147.8

—1—
;

apparel

Cotton

OIL.

58,72!

6,538

2,032,45
6,93

32,293

apparel

Home

281,869

215,312

Percentage of activity
Unfilled orders (tons) at end of period.—

439,50i

36,374

2,226,433

—

crop

346,840

34,601

_______—___

goods

Infant

.Oct.

.Oct.; 6

___

_£

—

seed

PUBLICATIONS

OF

Men's

ASSOCIATION:

(tons)

Production (tons)

337,122

2,249,844

(pounds)

Women's

NATIONAL PAPERBOARD

287.01C

2,01X29"

—____________

(5

FAIRCHILD

Piece

INDEX-

2,979

3.2:

•

Composite
COMMODITY

7,598

16,84

i

3,717

273,406

(tons)

Pecans

2.9(

6,921

17,061,

1,74X705

(bushels)

Apricots

1

7,002

(bushels)

Cherrie§

29,636

271,203

_______

and

sugar

commercial

Grapes

41,02

10,814
3,717

____—___________

(tons)

2.6'

,■

____:

(tons)

beets

2.8:

3.08

;

for

2.3

2.58

12,5

45,385

31,864

1,684,780

;____

(pounds)

Apples,

10,012

106,81

\

'

(bushels)

Broomcorn

.119.00

237,45

(bushels)——__________

peas

_„_™„™_____—

111.62

162,661

45,975

(bushels)—™__„___™

beans

for

(pounds)

Sugarcane

4,749

31,864

_™

Sweetpotatoes (bushels)
Tobacco (pounds)

116.02

-Oct. 16

Orders

13,495

22,977

112,922

13,496

301,(
,

17,291

113,859

1,465,134

'

Potatoes

'•*

118.60

109.97

-Oct. 16

MOODY'S

16.931

Peanuts

119.61

114.66

.Oct. 16

Public Utilities

163,996

_™_™__£™_:

(tons)

for

Cowpeas

101.58
'

109.97

.Oct. 16

Industrials Group

37,971

Hay, lespedeza (lons)„__
Beans, dry edible .(100 poi\nd bags) __„__™ :
Peas, dry field (100 pound' bags)™^._

19.500c

-

Pears

.

44,762

.•_—__—

_____

17.500c

Aa

____

39,263

45,070

15.800c

.Oct. 16

A

34,959

——

16.800c

Aaa

Railroad Group

32,284

-17.500c

18.800c
•

AVERAGES:

:

3,891

clover and timothy (tons)

.Oct. 16

DAILY

25,138

4,060

alfalfa

.Oct. 16

Bonds

257,585

25,138

Hay,

19.500c

36,064

240,025

1,377,965

254,403

Hay,

.Oct. 16

YIELD

276,089

311,875-

1,372,248

___

16.000c

•

Government

750,666

36,536

306,491

.

111.500c

Peaches

S.

(bushels)—

17.000c

.Oct. 16

Industrials Group

1,026,755

348,411

(tons)—

Soybeans

,

3.131,009

909 149

650,738

36,369

103.000c

.Oct. 16
;

3,130,775

342,360

(bushels)___

19.000c

■■

8

993,598

103.000c

.Oct. 16

Group

3,104.988

84
'■

650,738

(tons)____

wild

.Oct. 16

U.

_____

(bales:

all

24.425c

-Oct. 16

Railroad Group

7

(bushels)

Hay,
Hay,

AVERAGES:

——

20

AGRI¬

19.000c

.Oct. 10

_

64

22

86

thousands):

18.800c

.Oct. 16

MOODY'S

OF

(in

.Oct. 10

L

i

Louis)

Utilities

1

103.000c

.Oct. 10

BOND PRICES DAILY
Government Bonds

Public

Oct.

.Oct. 10

at

at,

MOODY'S
U.

DEPARTMENT

(100 pound bags)—

Cotton

.Oct. 10

i

68

REPORTING

Sorghum grain (bushels)™.

v

^

Domestic refinery at
Export refinery at—

CROP

—

Barley (bushels)
Rye (bushels)
Buckwheat (bushels)
Rice

298

,

7

of

spring

56
21

280

84

(bushels)

Flaxseed

40

110

-

20

(bushels)

Other

42

68

enterprises

development

(bushels)

Durum

23

109

49

118

,

;_______;

public-service
and

S.

spring

230

96

134

49

^Winter (bushels)

BRAD-

&

319

753

-

136

(bushelsr

all

23

36

water

U.

all

Corn,

58

275

„

Oct. 13

1

950

329

.

facilities

naval

CULTURE—As

'

(in 000 kwh.)

output

6

65

institutional

PRODUCTION

BOARD

INSTITUTE:

ELECTRIC

EDISON

39
229

966

•

public™

SYS318

23

43

280

6

__

1

Miscellaneous
All

RESERVE

INDEX—FEDERAL

SALES

STORE

34

40

283

_

building

Conservation
DEPARTMENT

30

115

108

Military and
Highways

11,486.000

9,235.000

37
27

Other nonresidential

*11,075,000

10,865,000

33

140

telegraph

Educational

o

23

26

Industrial

26,005,000

Oct.

23

13

130

building

Oct. 11

00AL OUTPUT (U. S. BUREAU OF MINES):
Bituminous coal and lignite (tons)
————

43

_

_

construction

86,332,000

'

39

32

36

_

utilities

Nonresidential

Public

Oct. 11

;

—

—-—•

•

132

■

'

Oct. 11

L;

municipal™

and

Federal

315,014,000

82

152

•

_

_

private.

$189,224,000
102,892,000

$421,940,000

129,690,000

_

__.

construction

Public

$241,929,000

Oct. 11

Total U. 8. construction

other

60

358

_

_

_

public

121

48 *

32

_

Telephone and

CONSTRUCTION

ENGINEERING

CIVIL

108

42

institutional

utilities

101

,12

1

construction

Public

197

148

_

;

and

17

354

45

-

recreational

and

94

17

457

56

*
'

Educational

Hospital

Revenue

building

1.322:

1,211

k

101

buildings

garages

Religious
JSocial

Miscellaneous
Revenue

loft

and

91

2,095

202

'

_______

and

825

$2,843

■

16

__n_Z
office

933

451

_

_

(nonfarm

restaurants,

1,893

89

.

building

$2,843

810

alterations™.

Warehouses,

103,700,000

6

.

Ago

$2,826

_

__

Commercial

8,865,000

112,356,000

Year

Month

915

Industrial

8,732,000

Stores,
112,703,000

Previous
v

1,860

Nonhousekeeping
Nonresidential

AMERICAN RAILROADS:

ASSOCIATION OF

<

/

__

8,332,000

8,330,000

.

of that date:

OF

building (nonfarm)_.
dwelling units

2,549,000
v-

Oct.

.—„

...

construction

9,124.000

2,656,000

—Oc .
Oct.

^—

Distillate fuel

DEPT.

S.

construction

new

Additions

6,091.000

22,136,000

terminals, in transit and in pipe lines—
gasoline (bbls.)- at
Oct.

unfinished

and

Kerosene

6,558,000
21,085.000

oil output (bbls.Wl-

fuel

Finished

116,536.000
21,446.000

,_™_——

Distillate fuel oil output (bbls.)

6,278,200

6,303,500

6,337,600

Jvv

either for the

LABOR—Month of September (In millions):

5,871,900

Oct.
.Oct..

—~~—

_—

Stocks at refineries, at bulk

CONSTRUCTION—U.

New

of 4"

(bbls.)

average

(bbls.)
output (bbls.)

Kerosene

(bbls.

■——-———

to

runs

are as

Residential

average

are

Month

102.0

2,023,000

2,035,000

of quotations,

cases

Ago

101.2

Private

INSTITUTE:
condensate output — daily

Gasoline output

Residual

2,041,000

in

or,

Latest

-

gallons each)
Crude

Ago

101.8

that date,

PETROLEUM

AMERICAN

Crude

tons)

Week

102.1

Thursday, October 18, 1951

.

production and other figures for the

cover

Year

Month

Week

on

.

Dates shown in first column

month available.

month ended

Previous

...Oct. 21

(percent of capacity)

operations

steel

or

or

Latest

STEEL INSTITUTE:

AND

IRON

Indicated

latest week
week

Business Activity

statistical tabulations

The following

Indications of Current

.

goods

Domestics—

PAINT

AND

AVERAGE

==

DRUG

REPORTER

100

PRICE

L

___

INDEX —1926-36

Sheets

-Oct. 12

-

148.9

148.9

149.4

'S-M

137.8

Blankets

comfortables

and

Women's apparel—

£TOCK TRANSACTIONS FOR THE ODD-LOT ACCOUNT OF ODD-

Hosiery

LOT
DEALERS
AND
SPECIALISTS ON THE N. Y. STOCK
EXCHANGE—SECURITIES EXCHANGE COMMISSION:

Odd-lot

Number of
Number

Dollar

Aprons and
4

sales

by dealers

(customers'

orders

purchases)—,

Furs

__Sept. 29

29,815

35,154

26,153

31.014

Sept. 29
Sept. 29

867,872

766,124

941,601

$37,739,448

1,025,367
$45,026,496

$33,035,485

$41,807,525

Sept. 29

26,625

Sept. 29
Sept. 29

149

26,476

32,643

24,299

34.528

Sept. 29

753,464

929,213

697,344

997,313

Sept. 29

5,046

8,148

7,448

10,484

Sept. 29

748,418

921,065

689,896

986,829

_Sept. 29

._

$30,723,051

of shares

value

.

—_________

Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales
Customers'

short

other

shares—Total sales

Customers'

short

other

sales

1.

sales

Customers'
Dollar

;

value

Round-lot sales by dealers—
Number of shares—Total sales
Short

Round-lot

Sept. 29

sept!
.___

purchases

Number

of

32,871

24,510

34,814

228

211

236

$37,508,929

$27,855,249

$39,247,146

216,000

281,400

222,600

28lZ400

222Z600

432,220

Hats

364,750

295,400

271,660

320,350

1926

All

=

PRICES, NEW SERIES

—

U.

S.

DEPT.

OF

commodities

~

other

than

farm

177.0

ZZ_ZZZZZ_Z

Metals and metal products—

Building materials

9

185.1

183.8

184.0

165.4

q

257.2

260.1

255.9

221.1

190.9

189.5

189.0

171.1

285.1

284.7

279.5

234.4

*165.2

165.7

"_Z

166.5

162.D

9

165.0

9

157.3

9

138.9

*138.7

ZZZZZZoct

ZZZ~_

loct
nrf.'

_

™

allied

products

SNot available,




including

overalls

Z

155.

128.0

129.
J

127.

137.6

childrens'

133.1

130.

122.9

122.9

121.

161.6

147.

,

131
173.

wear—

Underwear

;

;.

.

185.2

162.2

_i

and

136.5

185.5

133.1

157.9

household

120.

135.2

-

135.0

132.

148.4

(

appliances

—-

176

125.9

148.7

143.

135.9

—

Electrical

151.

191.7

125.8

—

157.9

187.6

coverings

Radios

WEIGHTED

Z.ZZZ

COMMON

Industrial

Railroad

futilities
Banks

AVERAGE

STOCKS —Month

(125)

136.3

133.

138.4

Average
UNITED

•

6.03

5.98

Sept.:
—

!—

6.33

5.67

4.70

4.67

3.28

3.20

5.96

5.86

$257,386,206

$256,676,556

6,916,361

5,094,609

$250,469,845

-

6.13
5.78

135

190.9

188.2

177.6

As

223.0

222.3

219.9

General

q

343.6

343.6

342.4

140.9

141.0

140.2

131.4

(200)
GROSS DEBT

fund

DIRECT

Net

debt

Computed annual rate

$251,581,947

AND

omitted);

balances

t

9

—___

GUARANTEED—(000's
of September 30

190.9

Oct!

(10)

STATES

223.0

runs.

of

OF

(24)

Insurance

q

lilncludes 525,000 barrels of
foreign crude

YIELD

(25)

(15)

„

Oct
and

,141.

167.1

161.3

*168.7

9

Oct

foods"

lighting materials

Lumber

♦Revised.

168.5

189.7

_Oct'

and

Textile products

Chemicals

176.9

191.1

Oct

_

Fuel and

*177.1

192.6

:~-oct:*9

—-——

commodities

177.3

9

Ont

_

All

9

Oct

Z_Z„ZZZZZZZZZZZZoctZ

Livestock

148.6

139.

134.3

128.0

caps

Socks

200

Oct.

~

.

Grains

142.

134.3

Shoes

MOODY'S

Farm products

134.

151.3

142.
133.

LABOR—

100:

Fzd\
Meats

and

Clothing

China

WHOLESALE

137.1

148.6

neckwear™

Luggage
gept. 29

.

t

167.1

and

Infants'

Floor

by dealers—

shares—.

1

Shirts

432,220

216,000

29

gept. 29

149.7

apparel—

Underwear

Shoes
_

sales

Other sales

Men's

'

137.2

:

142.8

149.9

;

Hosiery

sales

Number of

i_t

•

143.5

142.8

A

Shoes

.

-

104.

143.9

brassieres

and

Underwear

...

sales

Customers'

;

housedrcsses

151.5

Corsets

:
-

2.283%

2.281%

$257,235,53'
5,504,685

$251,730,851
.

.

2.191%

Volume 174

Number 5056

.

.

The Commercial and Financial Chronicle

.

Securities

Now in

New Registrations and

Filings

Co., Inc., N. Y. (11/2)
248,805 " shares of cumulative preferred
stock, 1951 series (par $100) to be offered for subscrip¬
tion by common stockholders of record Nov. 2 at rate of
one preferred share for
each 11 common; shares held;
rights to expire about Nov. 19.
Price—To be supplied
by amendment.
Underwriters—Morgan Stanley & Co.
10

None.
Proceeds
For expansion and improvement of
manufacturing facilities. Office—East Martin St. Exten¬
sion, P. O. Box 230, East Palestine, Ohio.

filed

Lawyers Title Insurance Corp., Richmond, Va.
Oct. 16 filed 60,000 shares of capital stock (par $5). Price
—To be supplied by amendment.
Underwriter—None.

Loven Chemical
Oct.

—For

stock.

vote

Ripley & Co., both of New York. Proceeds
expansion program. Meeting—Stockholders will

Nov.

shares

1

creating

on

of preferred

authorized

an

stock

authorized

issue of 500,000
and/or increasing
3,000,000 to 5,000,000 shs.

(par $100)

stock from

common

Allegheny Ludlum Steel Corp..
Pittsburgh, Pa. (10/31)
Oct. 11 filed 81,347 shares of cumulative convertible
pre¬
ferred stock (no par) to be offered for subscription
by

stockholders of

common

preferred

share

for

Oct.

31

at

shares

of

common

record

each

20

held; rights to expire Nov. 14.
by amendment.

Underwriters—The

and

Smith, Barney & Co., New
expansion of plant facilities.
American

Yacht

rate

Price—To

be

of

one

stock

supplied
Corp.

Proceeds—For

Club, Rye, N. Y.

(10/19)

Oct. 11, (letter of notification)
$225,000 35-year 4% de¬
Price—At par.
Underwriter—None. Proceeds
cost

of

building, furnishing and equipment of
Club House at Milton Point, Rye, N. Y.

new

be

supplied by amendment.
Underwriter—
Blyth & Co., Inc. Proceeds—To pay off bank loans and
for

construction.

new

Engineering Corp., Pasadena, Cal.
(letter of notification) 575 shares of common stock

(par $1), issued upon exercise of stock options. Price—
$28.25 per share. Underwriter—None.
Proceeds—To H/
W. Luby and F. L. Vore, selling stockholders.
Crown

Oct.

10

nated

pal

Finance

Co., Inc., New York

(letter of notification)

debentures

amount.

due

March

$200,000 of 5%

1, 1982.

Underwriter—Hodson

&

Co.,

Proceeds—To reduce debt and for

Davis Wholesale Drug Co.,

Oct.

8

(letter of

notification)

Baton Rouge, La.
800

shares

of

preferred

stock (no par) and 800 shares of common stock

(no par)
preferred and one common
share.
Price—$100 per unit. Underwriter—None. Pro¬
ceeds—For working capital.
to be offered in units of

mon

stock

(no par).

Price—For preferred, at par, and

common, $20 per share.
Underwriter—None. Pro¬
ceeds—To finance purchase of raw materials and pro¬

mote

development of industries in Israel.
Broadway, New York.

one

—

170

Detroit Edison Co.,

Detroit, Mich.

$16.50 per share. Underwriter—Albert McGann
Co., Inc., South Bend, Ind.
Proceeds—To

mum,

Securities

bonds, series K, due Nov. 25, 1976.

gage

Underwriter—

Spencer, Trask & Co. (jointly); Morgan Stanley & Co.;
Corp.; Dillon, Read & Co. Inc. Proceeds

The First Boston

—For construction

National Plumbing Stores Corp.
15. (letter of notification) $123,500 of 20-year 3^2%

Oct.

income

notes

due

writers—None.

Oct.

1,

1971;

Proceeds—For

Price—100%. Under¬
general corporate pur¬

Office—79 Cliff Street, New YQik, N. Y.

poses.

Telephone &\Telegraph Co.
2,000 shares of common
to be offered for subscription by stockholders of
record Oct. 15, with rights expiring Nov. 10.
Price—At
par ($100 per share).
Underwriter—None. Proceeds—
To retire notes and for expansion program.
Office—
South Road Street, Elizabeth City, N. C.
Oct.

11

(letter of notification)

stock

Phoenix Industries Corp.,

N. Y.

Oct. 12 filed 1,465,167 shares of common stock (par 100)
to be offered to holders of outstanding common stock of
National Power & Light Co. at rate of

one-half share of
Phoenix Industries Corp. (name to be changed to Na¬
tional Phoenix Industries, Inc.) for each N. P. & L.
common share held.
Price—To be supplied by amend¬
ment.
Underwriter—Reynolds & Co., New York.
Pro¬
ceeds—To pay expenses of existing business, to pay final
instalment of purchase price on shares of Nedick's, Inc.,
and for acquisition of other businesses.

Inc.,

Dallas,

Tex.

common

stock

(10/22)
(par 500).
Price—To be supplied by amendment.
Underwriter—
Reynolds & Co., New York. Proceeds—For general cor¬
porate purposes.
'
■ •
/•'

Gearko,

187,500 shares of

Inc.,

New York
200,000 shares of

stock

per

(par 1 cent).

Price—$1

share.

common

Underwriter—

Gearhart, Kinnard & Otis, Inc., New York.

Proceeds—
current indebtedness and for acquisition of oil
properties and working capital. Office—45 Nassau Street,
pay

New York 5, N. Y.
General

Oct.

15

Fuse

(letter

notification)

(10/22)
shares of 5%%

50,000

convertible preferred stock to be offered for subscription

by

common

for each 12

share).

stockholders at rate of
common

shares held.

Underwriter—None.

program.
•

one

preferred share

Price—At par

Proceeds—For

($5

per

expansion

common

stock, of which 106,602 shares will be issued to officers
of company for services

cents per share).
Old

rendered.

Price

Underwriter—None.

Main

Tunnel.

—

At par

Proceeds—To

Office—1350

So.

7th

(10
re¬

East,

Salt Lake City, Utah.

Finance, Inc., Panama City, Fla.
(letter of notification) 1,250 shares of preferred
profit-sharing stock certificates. Price—$20 each. Un¬
12

derwriter—None.
•—9 East Beach

Proceeds—To expand business.

Office

Drive, Panama City, Fla.

Sulphur Corp., Washington, D. C.
Oct. 12 (letter of notification) 299,999 shares of common
stock (par 10 cents). Price—$1 per share. Underwriter
—Peter Morgan & Co., New York.
Proceeds—To pur¬
chase all outstanding stocks of Compania de Azufre Vera
Cruz, S. A., and for working capital.
Office-^^.46 Con¬

Avenue, N. W., Washington, D. C.

sj?

Knemar Manufacturing Co., East Palestine, O.
Oct. 9 (letter of notification) 12,837 shares of common
stock

(no

par).

share.
Underwriter—None.
capital.
Office — Turks Head

per

working

10

Electric

&

21,820 shares of

common

stock

(par $5), to be offered pursuant to options granted
under an Employees' Stock Option Plan at the last re¬
ported sales price for the shares on the New York Curb
Exchange prior to the date on which such options are
granted.

Underwriter—None.

of

Roy C. Weatherwax, the

Manufacturing Co., Columbus, Ohio
Aug. 14 (letter of notification) 40,716 shares of common
cents), to be offered to present stockhold¬
at rate of four-fifths of

Proceeds—For

.uV,*-'-

working

a

share for each share held

(unsubscribed shares to be sold to public).
share to stockholders

per

and

$8

per

Price—

share to public.

Underwriter—None.

Proceeds—For plant improvements

and

for

expansion

East Main

and

working

capital.

Street, Columbus, Ohio.

Office—2040
.

t

Flake

Graphite Co., Birmingham, Ala.
July 12 (letter of notification) $100,000 of 7% 20-yea3'
sinking fund bonds dated Jan. 15, 1949 and due Jan. 15»
1969 (in denominations of $1,000 each). Price—At paE*

Underwriter—Odess, Martin & Herzberg, Inc., Birming¬
ham, Ala. Proceeds—For plant expansion. Office—420
Comer Bldg., Birmingham. Ala.
^Aluminium, Ltd., Montreal, Canada
Sept. 21 filed 372,205 shares of capital stock (no par>
being offered for subscription by stockholders of record
Oct. 19 at rate of one new share for each 10 shares held;
rights to expire on Nov. 8. Price — $65 (Canadian) per
share.
Dealer-Managers — The First Boston Corp. and
A. E. Ames & Co., Ltd. Proceeds — For working capital
to be available for expansion program.
American

Brake

Co.

Shoe

June 29 filed 50,000 shares of common stock (no par) to
be offered to certain officers and key employees through*
a

stock* purchase

plan.

Price—To be not

greater than

the market price on the date of the offering, or no less
than 85% of such price. Underwriter—None. Proceeds
—To be added to
American

general funds.

Investment

Co. of

Illinois

Aug. 16 filed 167,105 shares of $1.25 cumulative convert¬
ible preference stock, series A (par $25), being offered
in exchange for
common
stock of Domestic Finance*
Corp., Chicago, 111. on basis of one American share tor
each five Domestic
on

Oct.

shares; the offer to expire
Kidder, Peabody & Co.*
and Alex. Brown & Sons, Baltimore, McL
common

25. Dealer-Managers

York,

—

Statement effective Sept. 5.

it Anesco, Inc., Toledo, Ohio
Oct. 3 (letter of notification) 250 shares of common stock
(no par) and 750 shares of preferred stock (par $100>«.
Price—$100 per share. Underwriter—None. Proceeds—
For general corporate purposes. Address—c/o J. T. Berry^
Nicholas

Engineering Co.

(letter of notification)

Estate

Aero

New

,

Bldg., Toledo 4, Ohio.

Bell & Gossett

Co., Morton Grove, III.
Sept. 27 (letter of notification) 1,000 shares of common
stock
(par $5).
Price — At market
(approximately
per share).
Underwriter—Ames, Emerich & Co.s
Chicago, 111.
Proceeds—To Clarence E. Pullum*
Vice-President, who is the selling stockholder.

$26.25

Inc.,

Blackwood &

j

Ridley Mines Holding; Co., Maida, N. D.
Oct. 5 (letter of notification) 40,000 shares of common
stock.
Price—At par ($5 per share).
Underwriter—
None.
Proceeds—To explore mining properties and to
develop mine.

Price—$10




0

Russell Manufacturing Co., Middletown, Conn.

Oct.

4

(letter of notification) 13,321 shares of common
(no par). Price—$15.75 per share. Underwriters—
Coburn & Middlebrook, Inc., Hartford, Conn., and Granstock

bery, Marache & Co., New York. Proceeds—For work¬
ing capital. Office—400 E. Main St., Middletown, Conn.
Boston, Mass.
notification) 9,000 shares of common
(no par).
Price—$20 per share.
Underwriter—
None.
Proceeds—For working capital.
Office—15 Chardon St., Boston, Mass.
8

(letter of

stock

Southwestern
Oct.

15

per

share.

Underwriter—

States

Telephone Co.

(11/5-6)

filed

70,000 shares of common stock (par $1).
supplied by amendment.
Underwriter—
Central Republic Co., Inc., Chicago, 111.
Proceeds—For
be

construction program.

Touraine
Oct. 16
stock

Gulf

necticut

For

Reliance

Price—To

Gulf

Oct.

Price—$75

—

Products, Inc., Detroit, Mich.
Oct. 8 (letter of notification) 10,000 shares of common
stock (par $1).
Price—$2.12V2 per share, or "at market."
Underwriter—A. H. Vogel & Co., Detroit, Mich. Proceeds
—For working capital.
Office—443 W. Congress St.,
Detroit 26, Mich.
: ■
/,

Oct.

Ensign Mining Co.
(letter of notification) 200,000 shares of

condition

(par $25).

Sonic Research Corp.,

-

Golden

Oct. 12

Proceeds—To

selling stockholder.

Nichols Co., Oklahoma City, Okla.*
Davidson, Hartz, Hyde & Dewey, Inc.,
Madison, N. J.
Sept. 27 filed $2,000,000 of contributions in oil property
interests (1952 fund) in amounts; of $15,000 or more.
Underwriter—None. Proceeds—To acquire and develop
and

oil property.

Corp., South River, N. J.

of

Life Insurance Co., Providence, R. I.
(letter of notification) 2,000 shares of capital stock

capital.

Oct. 10 (letter of notification)

To

Puritan
Oct. 9

program.

Industries,

-Oct. 11 filed

Mich.

Alabama

Oct.

Dresser

Acme Industries, Inc., Jackson, Mich.
Sept. 12 (letter of notification) 14,840 shares of common
stock (par $1), of which 4,840 shares are to be offered
to officers and employees of company and 10,000 shares*
to the public. Price—To employees, $3.08 per share and
to public $3.50 per share. Underwriters—Stoetzer, Faulk¬
ner &
Co. and Wm. C. Roney & Co., both of Detroit,

Estate of Rachel B. Miles.

Radioactive

To be determined by competitive
bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Coffin &
Burr, Inc. and

Inc., Costa Mesa, Calif.
notification) 300,000 shares of common
stock. Price—At par ($1 per share). Underwriter—None.
Proceeds —"For purchase of building and property and
for working capital.

ers

Laboratories, Inc., Elkhart, Ind.
(letter of notification) 6,000 shares of common
(par $2). Price—Maximum, $18 per share; mini¬

Bldg., Providence 1, R. I.

>

Wizard Boats,1

stock (par 25

12

Proceeds

Oct. 17 filed $40,000,000 of general and
refunding mort¬

*

Office

Miles
Oct.

toward 1951 construction program.

;

N. Y.

for

Derby Gas & Electric Corp. (10/19) ; *'■-T'
Oct. 11 (letter of notification) 13,000 shares of common
stock (no par).
Price—$22.75 per share. Underwriter—
White, Weld & Co., New York. Proceeds—To be applied

;

Corp.,

244

Oct. 10 (letter of notification) 1,800 shares of 5% cumu¬
lative preferred stock (par $50) and 9,500 shares of com¬

subordi¬

Price—At princi¬

Inc., New
expansion, etc.
Office—165 Broadway, New York 6, N. Y.
York.

Industries

—

Norfolk & Carolina

Consolidated

Oct. 9

East

Office

capital.

ADDITIONS

Previous Registrations and Filings

a

California Water & Telephone Co. (11/5-6)
Oct 15 filed 50,000 shares of common stock
(par $25).

Price—To

Middle

For

working
Newhall, Calif.

South Pine St.,

—

INDICATES

Oct. 10 (letter of

of California

(letter of notification) 200,000 shares of capital
Price—At par ($1 per share).
Underwriter—
Proceeds

stock

bentures.
—For

8

None.

First Boston

York.

•

Proceeds—To enlarge capital and for investment.

and Harriman

37

* REVISIONS THIS WEEK,

Registration
—

Air Reduction

Oct.

(1485)

Apartments,

Inc., Phila.,

(letter of notification)

(par $1)

to

be

Oct. 5 at rate of five

rights expire

offered

new

Pa.

(10/23)

100,000 shares of common
to

common

stockholders

shares for each 67 shares held;

Price—$2 per share.
working
capital.
Office—1520 Spruce Street, Philadelphia 2, Pa.
on

or

Underwriter—None.

about Nov. 7.

Proceeds—For

Vince Corp.,

Detroit, Mich.
8,973 shares of common
stock (par $1).
Price—$10.50 per share. Underwriter—
Reynolds & Co., New York.
Proceeds—To Joseph J.
Osplack, the selling stockholder. Office—9111 Schaefer
Oct.

11

(letter of notification)

Highway, Detroit 28, Mich.

Blair (Neb.) Telephone Co.
July 18 (letter of notification) $175,000 of first mortgage 4% bonds, series A, due 1971. Price—101 and ac¬
crued interest.
Underwriter — Wachob-Bender Corp.,
Omaha, Neb. Proceeds—To retire first mortgage (closedj
ZVz% bonds and to convert to dial operation.

Burlington Mills Corp.
March

stock

5

filed

300,000 shares of convertible preference*

(par $100). Price—To be supplied by amendment,

Continued

on

page

3$

38

,

(i486)

The Commercial and Financial Chronicle

•

r

•

r

Peabody
& Co., New York.
improvements to plant and

Underwriter—Kidder,

Proceeds—For additions and

California Tuna Packing

Calif.
6% convertible
Underwriter—
Proceeds—For
100% and ac¬

Corp., San Diegoy

(letter of notification) $300,000 of
sinking fund debentures due Oct. 1, 1966.
Wahler, White & Co., Kansas City, Mo.
general corporate purposes.
Price—At
crued interest. Office—2305 East Belt St., San Diego 2,
Oct. 4

(A. B.)

(par $5).

share. Underwriter—Stifel, Nicolaus
& Co., Inc., St. Louis, Mo. Proceeds—To certain selling
stockholders. Business—Manufacture and sale of earth
anchors and other equipment used in communication
lines. Offering—Expected this week.
Price—$12.50

per

Calif.
Aug. 29 (letter of notification) 23,250 shares of common
stock (par $1). Price—$5 per share. Undewriter—None.
Clary Multiplier Corp., San Gabriel,

Proceeds—To reduce bank loans and for

Office—408 Junipero St., San
Clinton

(Mich.)

Gabriel, Calif.

Proceeds—For

—None.

ment of accounts

Underwriter

Coca-Cola Bottling Co. of St. Louis
Sept. 26 (letter of notification) 2,500 shares of common
Price—At the market (approximately $30
per share). Underwriter—G. H. Walker & Co. and Wm..

iF. Dowdall & Co., both of St. Louis, Mo. Proceeds—To
Willard Cox, the selling stockholder.
Office—2950 No.

St., St. Louis, Mo.

^Commonwealth Edison Co., Chicago, III. (10/30)
Oct. 10 filed 1,716,500 shares of cumulative convertible
preferred stock (par $25) to be offered first for subscrip¬
tion by common stockholders of record about Oct. 30 on
basis of one share of preferred for each eight common
shares held;
rights to expire on Nov. 14.
Price —
/To be supplied by amendment.
Underwriters—Glore,
Forgan & Co. and The First Boston Corp., New York.
Proceeds—For new construction and to repay bank loans.
★ Consumers Power Co., Jackson, Mich.
I
Sept. 20 filed 561,517 shares of common stock (no par),
being offered for subscription by common stockholders
of record Oct. 17 at rate of one share for each 10 shares

held; rights to expire on Nov. 2.
Unsubscribed shares
employees of company and its subsidiary,
Michigan Gas Storage Co.
Price—$32 per share.
Un¬
derwriter—Issue
was awarded on Oct. 17 at competitive

to be offered

Lehman Brothers.
Proceeds—For property
additions and improvements.K Statement effective Oct. 9.

bidding to

Consumers Public Service Co., Brookfield, Mo.
Aug. 22 (letter of notification) 1,500 shares of 5% cumu¬
lative preferred stock. Price — At par ($50 per share).
Underwriter—None, but will be sold through WachobBender Corp., Omaha, Neb. Proceeds—For liquidation of

short-term notes and for further extensions
ments of the

company's electric property.

and

better¬

Office—201V2

No, Main St.; Brookfield, Mo.
Continental Can

Co., Inc. (10/25)
Oct. 5 filed $15,000,000 of debentures due Oct. 15, 1976.
Price—To be supplied by amendment.
Underwriters—
Goldman, Sachs & Co. and Lehman Brothers, New York.
Proceeds—For plant and equipment replacements and
working capital.
Meeting—Preferred stockholders will
vote Oct. 22

approving proposed debenture issue.

on

Continental Can Co., Inc. (10/25)
Oct. 5 filed 104,625 shares of cumulative
second

preferred stock (no par
subscription
by common

Oct. 24 at rate of

one

or

convertible

$100 par) to be offered

stockholders

of

share for each 30 shares of

record
common

stock

held; rights to expire on or about Nov. 7. PriceTo be supplied by amendment.
Underwriters — Gold¬
man, Sachs & Co. and Lehman Brothers, New York. Pro¬
ceeds—For plant and

capital.

Oct. 22

on

equipment replacements, and work¬
Meeting—Common stockholders will vote

approving authorized issue of 250,000 shares

of second preferred stock.

<

.

Temporarily deferred.
Continental Electric Co., Geneva, III.
(letter of notification) $300,000 of 6% sinking
fund debentures due Dec. 1, 1975
(to be issued in units
of $100, $500 and $1,000 each). Price—91% of
principal

March 2

&

Co.,

Chicago,

111.

Proceeds—To retire indebtedness and for working capi¬
tal.
Offering—Postponed indefinitely.
Crown Drug Co.,

Aug. 21

debenture

units

of

common

Kansas City, Mo.

(letter of notification)

4V2%

100

shares

notes for each 101 shares to
100

Oct.

1, 1962

(in

$60, $100, $500 and $1,000) being offered to
stockholders of record Oct. 1 on following basis:

$60 of notes for each
holders

by amendment $300,000

convertible notes due

or

less

held; $100 of

held; and stock¬
150 shares, $60 of notes for each
fraction thereof held. Rights will expire

owning

shares

or

150 shares

over

*V22' Underwriters—Roger W. Babson, Wellesley

Hills, Mass.; H.
ness

-or

Statistics

J. Witschner, Kansas City, Mo.; Busi¬
Organization, Inc., Babson Park, Mass.;

their nominees. Proceeds—To retire debt to
RFC and




Corp.,

J.

for,
per
per

For

Hex Foods,

a warrant to purchase one additional share at $1.25
share—Canadian—within 18 months. Price—55 cents

Proceeds—

Underwriter—None.

Family Finance Corp.

corporate purposes. Office—412

(10/30)

bank

Price—50 cents
Underwriter—Stanley, Pelz & Co., Inc., New
York.
Proceeds—To purchase equipment, to repay notes
payable and for other corporate purposes.
Office—545.
North Arlington Avenue, East Orange, N. J.
per snare.

commercial paper.

loans and

Fidelity Electric Co., Inc., Lancaster, Pa.

Imperial Brands, Inc.
20 (letter of notification) 50,000 shares of capital
itock. Price—At par ($1 per share). Underwriter—Floyd
Aug.

Cleland, President, the selling stock¬

To J. D.

—

holder.

<

,

Co. (11/14)
Oct. 10 filed $10,000,000 of first mortgage bonds due
Nov. 1, 1981.
Underwriter—To be determined by com¬
petitive bidding.
Probable bidders: Halsey, Stuart &
Co. Inc.; Carl M. Loeb, Rhoades & Co. and Bear, Stearns
& Co. (jointly); The First Boston Corp.; Harriman Rip- ;
ley & Co., Inc.; Shields & Co.; White, Weld & Co.; Leh- <
man
Brothers.
Proceeds — For new construction and/
(EST)

Bids—Expected to be received at 12 noon

plant at Forest City, Fla.

'

Underwriters

—

To be supplied by

—

for

Columbus, Ohio

(letter-of notification) 50,400 shares of common ;
rtock.
Price — At.par ($5 per share).
Underwriter—/
None. Proceeds—To finance inventories and to purchase
1

Aug.

:apital equipment.
Ohio.

Y

-i

.

Office—538 E. Town St., Columbus,'
'
•
,;
.

Ltd., Calgary, Canada
500,000 shares of common stock.
Price—At'

Key Oil & Gas Co.,
par

($1 per share).
Underwriter—None, but sales will
by James H. Nelson, promoter and a director of

be made

company;, of
<

for lease

Longview, Wash.

Proceeds—To drill well, '

acquisitions and properties held pending devel-

Lee Higginson Corp. and \ opment work, and for other corporate purposes.

Inc., both of New York, and WarW. York & Co., Allentown, Pa.
Proceeds—To re¬

P. W. Brooks & Co.,
deem

for

Oct. 3 filed

amendment.

ren

(10/24)
/
shares of common stock (par $15) re¬
conversion of 39,524 shares of 5V2% con- ;

5. filed 79,048

Keever Starch Co.,

•

Brick Corp. (10/23)
Sept. 28 filed $2,000,000 firsts-mortgage bonds, 5Vz%
series, due 1971, with detachable warrants for purchase
Price

>

stock which will be called for re¬
Starts on Oct. 24 and ends first week in No¬
vember.^ Price—To be supplied by amendment.
Under¬
writer—The First Boston Corp., New York.
Proceeds—
To reimburse company for money expended for redemp- v
tion of unconverted portion of 5%% preferred stock.

Glen-Gery Shale

stock attached.

working capital.

Southern Utilities Co.

demption.

Acceptance Corp.

common

,

.

vertible"' preferred

poses.

of

s

shares of capital stock (no par),.
so
be issuable upon exercise of stock option issuable
mder the company's proposed stock option plan. Price— '
To be 85% of Current fair market value of the stock.
27 filed 250,000

served

(10/25)
Sept. 28 filed $5,000,000 10-year 3y2% sinking fund de¬
bentures due Oct. 1, 1961.
Price — To be supplied by
amendment. Underwriter — Paine, Webber, Jackson &
Curtis, New York. Proceeds — To prepay senior notes
and other borrowings and for general corporate pur¬
General

Steel'-,Co.

Inland

Aug.

Iowa

centrate

.

equipment and for
Avenue, Inglewood,

Calif.

Fosgate Citrus Concentrate Cooperative (Fla.)
Oct.
June 29 filed 453 shares of class A common stock (par f
$100); 5,706 shares of 5% class B preferred stock (par
$100), cumulative beginning three years from July 10,
1950; 8,000 shares of 4% revolving fund class C stock
(par $100); 2,000 shares of 4% revolving fund class C
stock (par $50); and 4,000 shares of 4% revolving fund
class C stock (par $25).
Price—At par. Underwriters
—None. Proceeds—To construct and equip frozen con¬

Calif. Proceeds—To

purchase additional machinery and
working capital. Office—324 Hindry

Proceeds—For

Nov. 14.

on

Co., Inc., Los Angeles,

&

Allen

A.

Florida Power & Light

equipment.

J.
shares of con¬

Hydrocarb Corp., East Orange, N.
5
(letter of notification) 599,880
vertible class A stock (par five cents).

Oct.

Sept. 26 (letter of notification) 2,000 shares of common
stock (par $1). Price—At market (approximately $3.50
per share). Underwriter—Dunne & Co., New York. Pro¬
ceeds

W. 39th St., Kansas City,

Mo.

of cumulative convertible pref¬
erence stock, series B
(par $50). Price—To be supplied1
by amendment.
Underwriters—Merrill Lynch, Pierce,
Fenner & Beane and G. H. Walker & Co., New York.
Proceeds—To reduce

Mo.

Inc., Kansas City,

(letter of notification) 89 shares of 6% cumula¬
tive preferred stock (par $100) and 424 shares of com¬
mon stock
(no par). Price—For preferred, at par; and
for common, at $20 <per share. Underwriter — Prugh,
Combest & Land, Inc., Kansas City, Mo., will act as
dealer.
Proceeds—For plant improvements and general

par

share—Canadian.
working capital.

Proceeds—To Harry

Ind.

Indianapolis,

Herff, President.

Aug. 1

value common stock held. Sub¬
scribers will receive for each three shares subscribed
shares of $1

«

(letter of notification)

curities

(par 25

of which 3,234,303 shares are to be
offered to stockholders on basis of two shares for each
three

■

Indianapolis, Ind.

10,000 shares of class A
preference stock (par $1), to be offered to employees.
Price—At the market or less (approximately S10 per
share). Underwriter—For unsubscribed shares, City Se¬

Office—545

stock

development

Office—Boston Metropolitan

Sept. 10

Ltd., Toronto, Canada

$831,400 bonds and repay $500,000

expansion program.

-

bank loans and

it Kimberly-Clark Corp. (10/25)
Oct. 5 filed 102,424 shares of 4% cumulative

convertible/

preferred stock (par $100), to be offered in exchange
outstanding 4y2% cumulative preferred stock on av
share-for-share basis, plus cash payment of 37V2 cents'

for

.

Golconda Mines Ltd., Montreal, Canada
April 9 filed 750,000 shares of common stock.
Price— r per share; the offer to expire on Nov. 9. • Price—To be:
At par ($1 per share).
supplied by amendment. Underwriter—Blyth & Co., Inc., *
Underwriter—George F. Breen,
New York.
Proceeds—To retire unexchanged 4V2% pre-New York.
Proceeds—For drilling expenses, repayment
ferred stock.
Underwriters have agreed to purchase a,
of advances and working capital. Offering—Date not set ;
maximum of 37,424 shares of 4% preferred stock, pro-'
* Goodail Rubber Co., Trenton, N. J.*
viding at least 65,000 shares of 4V2% preferred stock'
Oct. 4 (letter of notification) 13,500 shares of class A
accept exchange offer.
common stock
(par $5) and 1,000 shares of 5% cumula¬
tive preferred stock (par $100) being offered to stock¬
^ Las Vegas Thoroughbred Racing Association
holders of record Oct. 15 on the following basis:
One/ Sept. 14 (letter of notification) 20,000 shares of common •
stock
(no par).
Price—$5 per share.
Underwriter—*
new
share of preferred stock for each share held and
None. /Proceeds—To William
A. Albury, the selling
one share of class A common stock for each seven com¬
shares

oversubscription privilege.
Price—Of class A com- ;
share and of preferred, $100 per share.
with

held,

Rights will expire

(letter of notification) 150,000 shares of common (voting) stock
(par $1). Price—$2 per share. Under¬
writers—Sills, Fairman & Harris, Inc., Chicago, and
Gearhart, Kinnard & Otis, Inc., New York. ProceedsFor working capital and
general corporate purposes.

Underwriter—Boettcher

Herff Jones Co.,

(estimated at $4 per share).
Proceeds—To Glidden S. Doman,

4,312,404 shares of common

filed

9

mon

^Continental Car-Nar-Var Corp., Brazil, Ind.
March 5

amount.

promotion expenses.
Airport, Norwood, Mass.1
and

cents—Canadian),

working capital, including pay¬

payable and purchase of inventory.

stock (par $1).

Market

Eureka Corp.,

Underwriter—None. Proceeds—For

mon).

Oct. 9 filed 80,000 shares

Machine Co.

share, but not more than $3 per share).

Of¬

Okla.

Price—At the market

Underwriter—None.

Oct.

Under¬

expenses.

3,000 shares of capital

(letter of notification)

20

stock.

working capital.

Aug. 16 (letter of notification) 100,000 shares of common
stock (par $1). Price—At the market (estimated at $2.75

ing

operating

Helicopters, Inc., N. Y.

Doman

Sept.

Price—40 cents per share.

Proceeds—For

Fidelity Building, Oklahoma City,

fice—219

Co., Centralia, Mo.

Sept. 21 filed 50,000 shares of common stock

for

(par 10 cents).

writer—None.

President, who is the selling stockholder.
Fifth Ave., New York 17, N. Y.

Calif.

per

Corp., Oklahoma City, Okla.

Deardorf Oil

Norwood, Mass.

(letter of notification) 7,750 shares^ of non*
cumulative preferred stock (par $1) and 7,750 shares
of common stock (par $1) to be offered in units of one
share of preferred and one share of common
stock.
Price—$25 per unit ($20 for preferred and $5 for com¬
31

July

Sept. 24 (letter of notification) 175,000 shares of common
stock

equipment. Offering date postponed.

Chance

Helio Aircraft Corp.,

working capital. Office—2110 Central Street, Kansas
City, Mo.

for

Continued from page 37

Thursday, October 18, 1951

...

mon,

$13.50

per

on

Underwriter—None.

an

Nov. 15.

Proceeds—To increase stock interest/

for

working

stockholder.
way,

Address—Highway 91 at Vegas Park High-

Las Vegas, Nev.

.

-

>

✓

.

V.
»

Long Island Lighting Co. (10/24)
'
Oct. 3 filed 100,000 shares of cumulative preferred stock,;

Underwriters—To be determined;
Probable bidders: Blyth & Con¬
ine., and First Boston Corp. (jointly); Kidder, Peabody
Goodall-Sanford, Inc. (10/26)
& Co.; Harriman Ripley & Co. Inc.; Smith, Barney 8cx
Oct. 5 filed 80,000 shares of preference stock (par $50)
Co.; W. C. Langley & Co. and Glore, Forgan & Co.:
—convertible up to and including Nov. 1, 1961.
Price—
(jointly). Proceeds—From sale of preferred stock, to-'
To be supplied by amendment.
Underwriters — Union
gether with proceeds from proposed sale of about $25,-'
Securities Corp. and W. C. Langley & Co., New York.
000,000 of first mortgage bonds in December. 1951, will*
Proceeds—From sale of stock, together with $3,000,000 to >
be used to retire $14,493,400 of bonds of former subsid-*
be received from private placement of 15-year deben-/
tures, will be used to provide additional working capital- iaries, topay off bank loans,; and for construction
-/■'•/'
V
required in connection with increased volume of busi¬ program. * '
Long Island Lighting Co. (10/24)
ness, and to reduce short-term loans.
Oct. 3 filed 524,949 shares of common stock (no par), to*
Grand Union Co., New York
be offered for subscription by common stockholders of'
Aug. 7 filed 64,000 shares of common stock (par $10)
record Oct. 24, 1951, at rate of one new share for each
to be issued pursuant to an "employees' restricted stock
seven
shares
held; rights expire Nov. 8.
Price—To>
option plan." Price — To be supplied by amendment.
be supplied by amendment.
Underwriters—Blyth & Co.,;
Underwriter—None.
Proceeds—For general corporate
in

Whitehead

capital.

Brothers

Rubber

Co.

and

Office—Whitehead Road, Trenton 4, N. J.

purposes..

warrants

ceeds—For

M.

attached.

Price—Expected

at

Payson & Co., Portland, Me.

working capital.

(par $100).

Inc. and The First Boston Corp.,

Office—50 Church St., New York.

Underwriter—H.

A

by competitive bidding.

^ Hathaway (C. F.) Co., Waterville, Me.
Oct. 2
(letter of notification) 12,000 shares of 5.8%
cumulative preferred stock (par $25), with common stock
purchase

series

par.

Pro¬

New York.

Proceeds—

To reduce short-term loans borrowed for construction.

>

(Ky.) Gas & Electric Co.
'
Sept. 26 filed 130,000 shares of common stock (no par).:

ic Louisville

share. Underwriters—Lehman Broth¬
Co., Inc. Proceeds—For property addi-'
Offering—Expected today.
>

Price—$33.50
ers

per

and Blyth &

tions.

<

Volume 174

Number 5056

MacMillan

(H. R.)

.

.

Chronicle

The Commercial and Financial

.

(1487)

Pittsburgh Plate Glass Co.
June 27 filed 450,000 shares of common stock

Export Co., Ltd.,

Vancouver, B. C.

NEW ISSUE CALENDAR

Sept. 26 filed 2,281,582 shares of class B capital stock
(no par) to be offered in exchange for stock of Bloedel
Stewart & Welch, Ltd. on the following basis: 44.54596
shares for each
ordinary share of Bloedel; two-fifths of
a share for each
preference share of Bloedel. Following
such acquisition, name of MacMillan
Export will be
changed to MacMillan & Bloedel, Ltd.
.

to stockholders at rate of

held

Oct.

on

24,

with

one

an

rights to expire Nov. 21.
writer— None.

Proceeds

for general

and

—

Fuse

U. S. Vitamin

Wisconsin

corporate purposes.

11

a.m?

Michigan Power Co.

for

each share

(offer subject to acceptance by holders of not less than
of. stock of Syracuse; offer to expire on Nov. 9.

Apartments,

\

Bonds
.Common

Inc

October 24,
Iowa

'

Miles Laboratories, Inc., Elkhart, Ind.
(letter of notification) 2,000 shares of common
stock (par $2). Price—$16.75 per share. Underwriter —
W. F. Martin, Inc., Elkhart, Ind. Proceeds—To Georgia

of the market price

31, 1955 at rate of

are

one

share of Pubco Development for
held of record Oct.

each Public Service common share

1951

1,

..Common

Southern Utilities Co._I

Long Island Lighting Co.—

a

<

★ Pubco Development, Inc., Albuquerque, N. M.
Sept. 18 filed 605,978 shares of common stock to be
offered for subscription by stockholders of Public Serv¬
ice Co. of New Mexico between Jan. 1, 1955 and March

1951

23,

Glen-Gery Shale Brick Corp.—
Touraine

of Syracuse stock

80%

Statement effective Oct. 10

Bonds

(EST)——
October

Syracuse Trust Co. of record Oct. 10 at rate of 2% shares
stock

..Preferred

..Common

Corp.

.

filed 276,000 shares of common stock (par $5)
being offered in exchange for all outstanding stock of
common

..Common

Corp

Sept. 21

of such

1951

Industries, Inc.___.__..

General

under

(par $10)

employees of the company and
stock option plan.
Price—At

ic Prugh Petroleum Co., Tulsa, Okla.
Sept. 25 (letter of notification) 60,000 shares of common
stock being offered for subscription by stockholders of
record Oct. 1, on basis of any number of shares not to
exceed present holdings; rights to expire Nov. 15. Price
—At par ($5 per share). Underwriter—None, but Prugh,
Combest & Land, Inc., Kansas City, Mo., will act as
agent.
Proceeds—To develop properties and retire in¬
debtedness.
Office—907 Kennedy Bldg., Tulsa 3, Okla.

Common

October 22,

oversubscription privilege;
per share.
Under¬
To acquire new properties

^ Marine Midland Corp., Buffalo, N. Y.

Debentures

Derby Gas & Electric Corp

Price—$9

subsidiaries

certain

change at time options
Common

American Yacht Club

Dresser

to

on the New York Stock Ex¬
granted. Underwriter—None.
Proceeds—For working capital.

19, 1951

Aluminium Ltd.

share for each nine shares

its

85%

October

★ Maracaibo Oil Exploration Corp. (10/24)
Sept. 20 filed 49,500 shares of capital stock to be offered

to be offered

39

($1 per share). Underwriter—
Public Service in gen¬
Business—To prospect for oil and gas. State¬

Price—At

1951.

par

Proceeds—To be used by

None.

Pfd. & Com.

_.

eral fund.

,

Maracaibo Oil Exploration Corp.___

Sept. 5

C. Walker, the selling stockholder.

Pacific Gas & Electric Co..
October

Offering—Indefinite.

Continental Can

Co., Pittsburg, Kansas
(letter of notification) $225,000 of second mort¬
gage 5% bonds to be offered to stockholders in ratio of

General

$300 of bonds for each share of stock held
June 30, 1951, with an
—At principal amount.

as

Mulhens

of record

oversubscription privilege. Price
Underwriter—None. Proceeds—

fective

Shellmar

Products

Goodall-Sanford,

stock

2,970 shares of

6%

re¬

preferred and

one

October 30,

Proceeds — To purchase land and
Office—123 West Main St., Missoula, Mont.

plant.

Commonwealth

Bearing Co., Inc.
Sept. 26 (letter of notification) 3,200 shares of common
stock (par $1); Price—$31.25 per share.
Underwriter—
Blyth & Co., Inc., Los Angeles, Calif. Proceeds—To Lloyd
A. Johnson, President, who is the selling stockholder.

★ New England Gas & Electric Assn. ;V
^
Aug, 6 filed $6,115,000 of 20-year sinking fund collateral
trust bonds,, series C,: due 1971;
/ Underwriter—Blyth &
Co,

Proceeds—To

purchase additional

.

y

share for each .five shares held;
■

Price—$2.25

v

y

-y"

November 1,

-J.r?

Ritchie Associates

Preferred

Finance

1951
.Debentures

Corp

-

per

Preferred

November

share.

5, 1951

Common
Common

Water & Telephone Co

Southwestern States Telephone Co

November
Rockland

"V:

November

Co., Bakersfield, Calif. jSvAug. 10 (letter of notification) 500 shares of capital stock
(par $1). Price—$4.75 per share.
Underwriter—Wab
ston, Hoffman & Goodwin, Bakersfield, Calif. Proceeds
—To Arthur; W. Scott, Secretary, who is the selling
stockholder, No general public offering is planned.

7, 1951

Light & Power Co. 11 a.m. (EST)_..Bonds

Norris Oil

8, 1951

Preferred

Fedders-Quigan Corp.

,

Northern

November 14,

November

Metals &

Mining Co

Common
..Common

—

Chemicals Corp

Co.-(10/30)
$15,000,000 of first mortgage bonds due

1981 and $7,000,000 of serial notes to mature
annually on
Oct. 1 as follows; $250,000

Stuart

&

6 Co.

and

Stone

Pacific Telephone &

1951
Bonds

Co

Gulf -.States- Utilities

Telegraph Co.__Debs. & Stock

loans and for
a.m.

new

(EST)

construction.
on

.York 8, N. Y.

Bids—To be received up

Oct. 30 at 30 Church Street, New
;

.

Pacific Gas

& Electric Co.

(10/24)

27, 1951

December 10,

<

1951

Virginia Electric & Power Co.————Bonds

Sept. 24 (letter of notification) 12,500

shares of common

of 5% debenture notes. Price—At par
($10 per share) for stock and notes in units of $500 each.
Underwriter—None. Proceeds—To erect parking facil¬

stock and $25,000

Office—1002 Warm Springs Avenue, Boise, Idaho.
Peabody Coal Co.

in

part, the company's construction program.

»tock

Pacific Telecoin

Underwriter—A. C. Allyn & Co., Inc., Chicago, 111. Proseeds—For construction program. Offering—Indefinitely

ceeds—For

working capital.
Francisco, Calif.

Office—1337

Mission

St.,

24

filed

Milling Co., Las Vegas, Nev.
200,000 shares of common stockiJPrice—At

Par

($1 per share). Underwriter—None. Proceeds—To
purchase machinery and equipment, to construct a mill

in

Mexico

ment

and

for

general

corporate

fully effective Aug. 29, 1951.




26

filed

(par $25).

shares of 5V2% prior preferred
Price—To be supplied by amendment.

160,000

postponed.

>

Phoenix-Campbell Corp.,

-

„

N.

Y.

$1)
will
be reserved against the warrants and 3,00(1 shares have
been
purchased by the promoters.
Price—For stock,
$10 per share; for warrants, 5 cents each. Underwriter—
Sept. 20 filed 203,000 shares of capital stock (par
100,000 warrants. Of the 203,000 shares, 100,000

and

Pan American
Jan.

purposes.

State¬

(EST).

expenditures.

Wallace, Ida.

(11/15)

(letter of notification) 290,000 shares of com¬
(par 10 cents). Price—321/2 cents per share.
Underwriter—Standard Securities Corp., Spokane, Wash.,
Sept. 25

stock

and

Kellogg, Idaho. Proceeds — To six selling
Address—Box 469, Wallace, Idaho.

stock¬

Proceeds—To acquire
an interest in so-called "special situations" and for work¬
ing capital.
Morris Cohon

Ashville, N. C.'

Sept. 10 (letter of notification) 6,000 shares of common
Price—$50 per share. Underwriter—None. Pro¬
ceeds—For construction and operating capital for a pro¬
stock.

March

San

a.m.

(10/29)
Oct. 9 filed 174,137 shares of common stock (no par).
Price—To be supplied by amendment^
Underwriter—
The First Boston Corp., New York.
Proceeds—For ex-»
pansion program and working capital.
Shellmar Products Corp. (10/25)
Oct. 9 filed 100,000 shares of cumulative preferred stock
(par $50), convertible into common stock on or before
Dec. 31, 1966.
Price—To be supplied by amendment.
Underwriter—Glore, Forgan & Co., New York. Proceeds
—To retire 4%% preferred stock and for additional cap¬

Skyway Broadcasting Co., Inc.,
Parking, Inc., Boise, Ida.

(par $25).
Price—To be supplied by amendment.
Underwriter—Blyth & Co., Inc.
Proceeds—To finance,

Sept. 14 (letter of notification) 59,000 shares of common
(par 10 cents). Price—50 cents per share. Under¬
writer—Gearhart, Kinnard & Otis, Inc., New York. Pro¬

about Nov. 7 at 11

holders.

stock

stock

reduce bank loans and
Bids—Expected to be received

Proceeds—To

mon

preferred

Corp., San Francisco, Calif.

Co.

Silver Buckie Mining Co.,

.—Equip. Trust Ctfs.

Erie RR.

ity.

Oct. 3 filed 1,500,000 shares of redeemable first

or

ital

November

&- Webster Securities

Corp. (jointly);
Equitable Securities Corp.; Kuhn, Loeb & Co. Proceeds
—From sale of bonds and notes (together with $8,000,000 from sale of 1,700,000 shares of common stock to
American Gas & Electric Co.) to retire $14,000,000 bank
11

November 20,
■r

Co.

Inc.; Morgan Stanley & Co.; The First
Boston Corp.; Glore, Forgan & Co.; White Weld & Co.
and Union Securities Corp. (jointly); Harriman Ripley

to

Bonds

1951

15,

Ohio Power

annually in 1955 and 1956;
$500,000 annually 1957 through 1960; and $750,000 an¬
nually 1961 through 1966.
Underwriters—To be deter¬
mined bv competitive bidding. Probable bidders: Halsey,
f

Silver Buckle

■' ' /

Sept. 28 filed
1

(EST)

common

—

<

1951

Florida Power & Light Co. noon

(no par). Price—At market (not less than $9 per
share). Underwriter — None. Proceeds
For working
■

&

Co.

Sharon Steel Corp.

stock

capital.

1 Estabrook

—..Common

Co.—_____

capital.

(11/7),
Sept. 21 filed $6,000,000 of first mortgage bonds, series D,
due 1981.
Underwriters—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; The First Boston Corp.; Merrill Lynch, Pierce, Fenner & Beane, Kidder, Peabody & Co., Union Securities
Corp. and White, Weld & Co. (jointly); Lehman Brothers
.and A. C. Allyn & Co. (jointly); Stone & Webster Se¬
curities Corp.; Carl M. Loeb, Rhoades & Co. and Equitr able
Securities Corp. (jointly); W. C. Langley & Co.;
for construction program.

1951

13,

working

Rockland Light & Power

on

Parker Pen

Illinois

Corp., DeKalb, III.
Sept. 13 (letter of notification) 5,138 shares of
.

November

•

Underwriter—Dillon, Read & Co. Inc.,

Proceeds—For

York,

New

tTo';j;Inc.______

■

California

(11/1)

★ Robbins Mills, Inc., New York
Sept. 25 filed 186,864 shares of series A 4.50% cumulative
convertible preferred stock (par $50) being offered for
subscription by common stockholders of record Oct. 15 at
rate of one share of preferred stock for each five shares
of common stock held; rights to expire on Oct. 30. Price
—$50 per share.

"i^November 2, 1951

,

(Canadian funds). -Underwriter—None.
Proceeds—To
repay loans from Cliff Petroleum Co. and for expansion
program.
Business — To acquire, explore and develop

mining properties,in Canada.

1951

Allegheny Ludlum Steel Corp
>

(no par) to
subscription by stockholders at rate of one

be offered for

Preferred

Co.—

October 31,

■■■/;•

Finance Corp.

(letter of notification) $200,000 of 6% 15-year
debentures, dated July 1, 1951, to be issued in multiples
of $100. Underwriter—Cohu & Co., New York.
Proceeds
—To retire debts and purchase building. Office—2 East
Church St., Frederick, Md.
,
Sept. 18

Preference
Ohio Power Co, 11 a.m. (EST)____..Bonds & Notes
West Texas Utilities Co. 11:30 a.m. (CST)_._Bonds

Oct. 8 filed 500,000 shares of common stock

r

1951

Family Finance Corp...

Air Reduction

Nickel Offsets, Ltd., Toronto, Canada

Edison

Gas Co.
of

Offering—Postponed.

term debt.

(EST)——Bonds

stocks

common

of five subsidiaries.: Statement effective Oct. 9.
5

Common

________

noon

Ritchie Associates

National Motor

«

Preference

Inc.

Co.

9.

cumulative preferred,
supplied by amendment.
& Co.,.Drexel & Co. and
Glore, Forgan & Co. Proceeds—For plant additions and
improvements and to. reimburse treasury for expendi¬
tures made for such purposes and for retirement of long-

26, 1951

Sharon Steel Corp.——

Underwrite^—None.
erect

—Preferred

Corp

Utah Power & Light

to

Oct.

★r Public Service Electric &
Sept. 26 filed 249,942 shares
stock (par $100). Price—To be
Underwriters—Morgan Stanley

V October 29, 1951

(par $100) and 2,970 shares -of
be offered in units of one
common share.
Price—$101 per unit.

(par $1)

11.

„____Common

—•

October

deemable preferred stock
common

Preferred

(Ferd.), Inc..

Montana Hardwood Co., Inc., Missoula, Mont.

(letter of notifictaion)

-Debentures

Kimberly-Clark Corp.

equipment.- Office—314 National "Bank Bldg., Pitts¬
burg, Kansas.
' ' :
Sept. 26

Debs. & Pfd.

;

Oct.

★ Public Service Co. of Indiana, Inc.
Sept. 19 filed 324,656 shares of common stock (no par)
being offered to stockholders of record Oct. 8 through
subscription on a l-for-10 basis; rights to expire on Oct.
24. Price—$28.12 Vz per share. Underwriter—Blyth & Co.,
Inc.
Proceeds—For property additions.
Statement ef¬

25, 1951

Acceptance Corp

For

•

Preferred

—

Co., Ind__:

Mineral Products

Oct., 4

ment effective

Common

& Co., New York.

posed television station.
Snoose

.

Mining Co., Hailey, Idaho

July 19 (letter of notification) 1,000,000 shares of com¬
mon stock.
Price—At par (25 cents per share). Under¬
writer—E. W. McRoberts & Co., Twin Falls, Ida. Proceed#
~For development of mine.
Southwestern Associated Telephone

Co.

17,500 shares of $5.50 cumulative pre¬
ferred stock (no par). Price—To be supplied by amend¬
ment.
Underwriters—Paine, Webber, Jackson & Curtis
and Stone & Webster Securities Corp., both of New
June

filed

15,

York, and

Rauscher, Pierce & Co., Inc., Dallas, Texas.
retire $1,500,000 of bank loans and tha
to general-corporate funds. Offering —

Proceeds—To

balance

added

Postponed.

Specialized Products Corp., Birmingham,

Ala.

Sept. 26. (letter of notification) 50,000 shares of common
stock
Price—$1 per share. Underwriter—Carlson & Co.,

Continued

on

page

40

40

The Commercial and Financial Chronicle

(1488)

Continued from page 39

■w

'

•

'

'

,

Birmingham, Ala.

'

(

■

''

j

Proceeds—For operating capital

and

advertising costs. Office—2807 Central Ave., Birming¬
ham 9, Ala.
■7'
:7v
;,77

•

capital.

Proceeds

Office—2130 West 110th St., Cleveland 2,

was

announced stockholders will

Ohio.

Proceeds—For expansion program.

Texas

Southeastern

Gas

;

May 16 (letter of notification)

Hoffman

-

otock

to

be

transferable

offered

to

warrants.

Underwriter—None.

common

Price

Bellville,

Co.,

Tex.

—

through
($5 per share)
working capital.

stockholders

At

Proceeds—For

par

if United Canadian Oil Corp., Washington, D. C.

»;■

July 31 filed 1,000,000 shares of common stock (par 10
cents.
Price—$1 per share. Underwriter—None. Pro¬
ceeds—For exploration and drilling activities. Statement
"

effective Oct. 8.
U. S. Vitamin Corp., New York (10/22-23)
Sept. 28 filed 120,650 shares of common stock (par $1).
7 JPrice
To be supplied by amendment. Underwriters—
Allen & Co. and Blair, Rollins & Co., Inc., both of New
York.
Proceeds—To repay $1,000,000 loan from insurance firm and
$700,000 bank borrowings, with the re¬
mainder added to working capital to be used for expan¬
sion program and other corporate purposes.
'
—

■

.

Utah Power & Light Co. (10/29)
Aug. 9 filed $9,000,000 first mortgage bonds, due Oct. 1,
1981.
Underwriters—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Kidder, Peabody & Co.; Lehman Brothers, and Bear,
Stearns & Co. (jointly); White, Weld & Co.; Salomon
Bros. & Hutzler; First Boston Corp., and Blyth & Co.,
Inc.

(jointly); Union Securities Corp., and Smith, BarProceeds—To repay bank loans and
for construction program.
Bids—To be received up to
xioon (EST) on Oct. 29.
Statement effective Sept. 5.
ney

& Co. (jointly).

Utilities

Co.

(10/30)

Sept. 24 filed $8,000,000 of first mortgage bonds, series C,
Nov. 1, 1981.
Underwriters—To be determined by
competitive bidding. Probable bidders: Halsey,'Stuart
& Co. Inc.; Hemphill, Noyes, Graham, Parsons & Co.
and Drexel & Co. (jointly); The First Boston Corp.; Kid¬
der, Peabody & Co.; W. C. Langley & Co.; Union Securities Corp.; Equitable Securities Corp.; Harriman Ripley
& Co.; Kuhn, Loeb & Co. and Lehman Brothers (jointly);
Glore, Forgan & Co.; Merrill Lynch, Pierce, Fenner &

due

Beane. Proceeds—To retire bank loans and for construc¬
tion

program.

Bids—To

be

received

up

to

11:30

a.m.

*"'■ (CST) on Oct. 30 at 20 No. Wacker Drive, Chicago 6, 111.

♦'

of preferred

*

Cott Beverage Corp.,

expand

New Haven, Conn.

Aug. 22 it was stated that the company plans issuance
and sale of 30,000 shares of preferred stock (par $10),
each share to carry a bonus of common stock.
Under¬
writer—Ira Haupt & Co., New York. Proceeds—For ex¬
pansion program.
•

7

7

Diamond Alkali Co.

financing

Stuart
& Co. Inc.; Morgan Stanley & Co.; Kuhn, Loeb & Co.;
The First Boston Corp. Offering expected some time in
November.

Allyn & Co., Inc., New York.
Proceeds—To
output of company's eight divisions,

,

7

:

\

7:

is planning some new
purchase of additional

Oct. 16 it was reported company

1952. Probable bidders: Halsey,

bonds due July 1,

$10,000,000

in

equipment.

connection with
There are outstanding

$8,000,000 of bank
Corp.,

Traditional underwriter: The First Boston

loans.

who handled private

placement of $2,500,000 of notes

in

1948.

Co.

Dobeckmun

•

777;7

Bing & Bing, Inc.

-

Aug. 30 it was reported company is contemplating sale
of
additional
common
stock following
approval of

Sept. 20 it was stated that company may probably offer
in November or December 90,000 additional shares of
common
stock.
Underwriter—Blyth & Co.,' Inc. Pro¬
ceeds—For

(approved Sept. 5.) Traditional under¬

3-for-l stock split

writer: Lehman Brothers.

;

7'7-: 77

expansion program.

if Eastern Stainless Steel Corp.
Oct. 8 it was announced stockholders will vote Oct.

25
on increasing authorized capital stock to
750,000 shares
to file in the
from 500,000 shares, of which 420,000 shares are out¬
near future a registration statement with the SEC cover¬
standing; Additional shares may be issued to stockhold¬
ing approximately 1,150,000 shares of common stock
ers, and the proceeds used for expansion.
Traditional
(par $2), following merger, which will be voted upon
underwriter: J. Arthur Warner & Co. Inc., New York.
Sept. 4, into Atlantic Oil Co., Ltd. (a subsidiary of
Pacific Petroleums, Ltd.), of Princess Petroleums, Ltd.
El Paso Natural Gas Co.
7
(an affiliate of Pacific Petroleums) and Allied Oil Pro- ; Sept. 18 stockholders approved an increase in the au¬
thorized first preferred stock from 100,000 to 300,000
ducers, Ltd., the consolidated company to change its
name to Canadian Atlantic Oil Co., Ltd. Underwritersshares, the second preferred stock from 200,000 to
Reynolds & Co. and Bear, Stearns & Co., New York.
300,000 shares and the common stock from 3,800,000 to
• Central Louisiana Electric Co., Inc.
5,000,000 shares; also authorized an increase in the ag¬
gregate principal amount of bonds issuable under the
Oct. 10 it was reported company plans in November to
issue and sell $4,000,000 of debentures due 1971.
Under- . company's indenture of mortgage, dated June 1, 1946,
from $157,000,000 to $300,000,00. Traditional Underwriter
writers—To be determined by competitive bidding. Prob¬
—White, Weld & Co., New York, t'7'7"' 7'v"-"7
7 able bidders: Halsey, Stuart & Co. Inc.; Lee Higginson
Corp., W. C. Langley & Co. and Carl M. Loeb, Rhoades
Erie RR.
(11/27)
V/7^p77,'V
& Co. (jointly).
7/ ;; "''."7 7 ■ ,•:: '7;;y• v ■'77;; 7/ Oct. 8 it was announced that company is considering
Central Maine Power Co.
sale on Nov. 27 of $5,400,000 of equipment trust certifi¬
7
Oct. 5 company sought SEC authority to issue and sell 1 cates, maturing semi-annually over a 10-year period, in
order to finance about 80% of the cost of acquiring new
$7,000,000 first and general mortgage bonds, series T,
•
due Nov. 1, 1981.
diesel locomotives and gondola cars to cost about $6,915,Underwriter—To be determined by
/
competitive bidding.
Probable bidders: Halsey, Stuart
0Q0. Probable bidders: Halsey, Stuart & Co Inc.; Salomon
& Co. Inc.; Coffin & Burr, Inc., and The First Boston
Bros. & Hutzler; Harris, Hall & Co. (Inc.).
Corp. (jointly); Merrill Lynch, Pierce, Fenner & Beane
if Fedders-Quigan Corp. (11/8),
and
White, Weld & Co. (jointly); Salomon Bros. &
Oct. 4 it was reported company plans issue and sale of
Hutzler; Blyth & Co., Inc., and Kidder, Peabody & Co.
about 60,000 shares of cumulative convertible preferred
(jointly); Lee Higginson Corp.; Harriman Ripley & Co.
Canadian Atlantic Oil Co.,

Ltd.

Aug. 7, it was reported company expects

,

.

...

;

stock

Proceeds—To repay bank loans.

Inc.

5

Maine

company

Power

Co.

applied to

SEC for authority to offer

be

to

holders.

Central

offered for subscription

Proceeds—For working
•

by common stock¬

Underwriter—Probably Allen & Co., New York.

capital.

/.

7

,

-

Granite City

Steel Co.
Oct. 15, it was announced company plans to offer to
exception of New England Public Service Co., which owns 7 common stockholders for subscription, the latter part of
November an initial series of 100,000 shares of convert¬
48.46% of the
presently outstanding common stock.
ible preferred stock (par $100).
Underwriters—To be determined by competitive bid¬
Underwriter—Probably
Merril Lynch, Pierce, Fenner & Beane, New York. Pro¬
ding.
Probable bidders: Blyth & Co., Inc., and Kidder,
ceeds—From sale of stock together with proceeds from
Peabody & Co. (jointly); Coffin & Burr, Inc.; Harriman
315,146 shares of common stock (par $10) for subscrip¬
tion by holders of 6% preferred and common stock, with

Ripley & Co. Inc.
for

new

Proceeds—To

construction.

repay

bank loans and

"7%vV'

$25,000,000

contemplated sale to insurance companies of

bonds, will be added to general funds
for use in connection with company's
steel production expansion program.
SEC Registration
—Expected ne.ar end of this month. Meeting—Stock¬
holders will vote Nov. 14 on approving authorized issue
of first mortgage

Chicago & Western Indiana RR.
2 it was reported company expects to be in the
market late this year or early in 1952 with a new issue

June

of

of

the

company,

approximately $70,000,000 of first mortgage bonds, "
of 200,000 shares of preferred stock, issuable in series,
1981, of which about $65,000,000 will be sold ini¬
and on mortgaging the company's assets.
tially. Price—Not less than par. Underwriter—To be
June 12 (letter of notification) 10,000 shares of common
determined by competitive bidding.
Probable bidders:
fdock (par $10) to be offered for subscription by present
if Gulf States Utilities Co. (11/20)
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; Lee
Oct. 11 company sought FPC approval to issue and sell
stockholders at rate of one share for each two shares held.
Higginson Corp.; Harris, Hall & Co. (Inc.); Drexel &
J?rice—$20 per share. Underwriter—None.
$10,000,000 of first mortgage bonds, due Nov. 1, 1981.
Proceeds— i
Co.; Kuhn, Loeb & Co. and Salomon Bros. & Hutzler * Underwriters—To be determined by competitive bidding.
2Tor financing expansion program. Office—1108 Lavaca
(jointly); Harriman Ripley & Co., Inc.; First BostOD
Probable bidders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb
Street, Austin, Tex.
Corp.; Lehman V Brothers; Paine, Webber, Jackson &
& Co. and A. C. Allyn & Co. Inc. (jointly); Stone &
Curtis; Kidder, Peabody & Co.
Proceeds—To refund
Wilcox-Gay Corp., Charlotte, Mich.
Webster Securities Corp.; Merrill Lynch, Pierce, Fenner
$49,988,000 of 4% non-callable consolidated first mort¬
Sept. 13 (letter of notification) 165,250 shares of common
& Beane and White, Weld & Co. (jointly); Salomon Bros.
stock (of which 82,625 shares represent stock to be issued
gage bonds due July 1, 1952, and to redeem $13,747,000
& Hutzler and Union Securities Corp. (jointly); Lehman
first and refunding mortgage 4y4% bonds, series D, due
on exercise of stock purchase warrants
issued in con¬
Brothers; Carl M. Loeb, Rhoades & Co. and Lee Higgin¬
nection with sale of 110,000 shares on or about Oct. 24).
Sept. 1, 1962.
The remainder will go towards property
son
Corp. (jointly). Proceeds—To pay off short-term
Brice—At par ($1 per share). Underwriter—None. Pro- > improvements, etc.
loans and to provide the company with funds to carry
ceeds—For working capital.
Colorado Fuel & Iron Corp.
>
,
,
..
7 <
forward its current construction program to the Spring
Sept. 26, Charles Allen, Jr., Chairman, announced that the
of 1952, at which time company expects to undertake
if Wilson Brothers, Chicago, III.
'
>
company plans to issue and sell $30,000,000 of
first
additional financing. Bids—To be invited on Nov. 7 and
Aug. 3 filed $2,200,000 of 5% sinking fund debentures
mortgage bonds due 1972 and $10,000,000 of 15-year de¬
due Aug. 1, 1966, with non-detachable common share
expected to be opened on Nov. 20.
7\v7'7
bentures, The former issue may be placed privately and
purchase warrants for the purchase of 154,000 shares of
Hahn Aviation Products, Inc.
,7 '
^ ■'
the latter issue offered publicly through Allen & Co.,
common stock.
Price—To be supplied by amendment.
Aug. 24 it was announced company proposes to offer
New York. The proceeds are to be used to redeem $14,Underwriter—Blair, Rollins & Co., Inc., New York.
12,500 additional common stock (par $1), in addition to
367,500 of outstanding first mortgage 4% bonds and the
Proceeds
To pay off outstanding indebtedness and for
17,500 shares recently offered. Underwriter — None.
remainder used to pay for construction of a new mill at
other corporate purposes.
Registration Withdrawal: A
Proceeds
For engineering, acquisition of machinery
Pueblo, Colo., Stockholders will vote Nov. 14 on approv¬
request to withdraw statement was filed on Oct. 12.
and other corporate purposes. Office—2636 No. Hutchin¬
ing financing program.
due

Western Reserve Life Insurance Co.

:

,

Co.

Sept. 14 it was stated that the company may refund its
outstanding $22,388,000 first consolidated mortgage 4%

Oct.

West Texas

& Goodwin and Shields &

Atlantic Coast Line RR.

Statement ef¬
v7'7- '' '/;

19,434 shares of common

Freightways

reported that there may shortly be a
public offering of about 100,000 shares of common stock.
Underwriters — Probably Blyth & Co., Inc., Walston,
14 it was

Sept.

rights to expire Oct. 24. Price—$14.50 per share. Under¬
writers—Shields & Co., New York; and Bacon, Whipple
& Co. and Rodman & Linn of Chicago.
Proceeds—For

;

issuance and sale of
stock.
Underwriter—A.

stated company piaas

was

C.

Chicago, 111.

if Sundstrand Machine Tool Co.
Sept. 21 filed 94,064 shares of common stock (par $5),
being offered for subscription by common stockholders
at rate of one share for each four shares held on Oct. 8;

.

8 it

Oct.

about

American Consolidated

plant improvements and working capital.

if Consolidated Grocers Corp.

prior to Jan. 1, 1962, to be initially offered for subscrip¬
tion by common stockholders at rate of 1 preferred share
for each 35 common shares held.
Price—To be deter¬
mined later.
Underwriter—A. G. Becker & Co. Inc.,

7^ Stiebei Shoe Co., Dallas, Tex.
Sept. 28 (letter of notification) $90,000 of 8% convertible
debentures.
Price—$10.75 for each $10 principal amount
of debentures.
Underwriter—F. J. Perkins & Co., Dallas,
'Tex.
Proceeds—For organizational expenses. Company
organized by John M. btiebel and Angel Sariego.
Of¬
fice—1508 First National Bank Bldg., Dallas 1, Tex.

fective Oct. 10.

vote Nov. 13

approving an issue of 106,851 shares of 4% cumula¬
convertible preferred stock (par $100X, convertible

tive

working

For

—

10 it

Oct.

Products Co.,

Underwriter—None.

share.

Abbott Laboratories

on

Cleveland, Ohio
Sept. 24 (letter of notification) 30,000 shares of common
stock to be offered for subscription by common stock¬
holders of record Oct. 4 at rate of one share for each 10
shares held; rights to expire Oct. 23. Price—$8.50 per
Standard

Corp.; Merrill Lynch, Pierce, Fenner & Beane and White,
Weld
&
Co. (jointly).
Proceeds —To redeem a like
amount of Westchester Lighting Co. 3(£% general mort¬
gage bonds due 1967. Offering—Postponed.

Prospective

1

18, 1951

Thursday, October

.

,

—

^Wisconsin Michigan Power Co. (10/22) 7
Sept. 25 filed $3,500,000 of first mortgage bonds due 1981.
Underwriter—To be determined by
competitive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Lehman
Brothers and Goidman Sachs & Co.
(jointly); Dillon,

5ea mf5

lnc*' Hemphill, Noyes, Graham,

Parsons &

Co.; The First Boston Corp.; Merrill Lynch, Pierce, Fen¬
ner

&

Beane

and

Salomon

Bros

&

Hutzler

(jointly).

Proceeds—From sale of bonds and
$2,000,000 of common
(latter to Wisconsin Electric Power Co., parent) to
be used for new construction and
to repay bank loans.

stock

•at

60

? receiyed ?P t0 11 am- <EST) on Oct. 22
Broadway, New York 4, N. Y.




Colorado

Aug. 20 it
Securities

reported that the holdings of the Union
Corp. group of stock of Colorado Interstate

(531,250 shares) will probably be sold publicly in Octo¬
ber

or

November.

Consolidated

■

Edison Co. of New York,

Inc.

March 23 company applied to .New York P. S. Commis¬
sion for authority to issue and sell $25,000,000 of first
and refunding mortgage bonds, series H, due May 1?\
1981

(in addition to $40,000,000 series G bonds filed with
the SEC on March 30). Underwriters—To be determined

by competitive bidding.
art & Co.

Probable bidders:

St., Philadelphia 33, Pa.

son

Interstate Gas Co.

was

Halsey, Stu¬

Inc.; Morgan Stanley & Co.; The First Boston

:

"

'

4

Illinois Bell Telephone Co.
V. Kahler, President, announced that thii
(approximately 99.31% owned by American
Telephone & Telegraph Co.) plans issuance and sale,
sometime before the end of the year, of 682,454 addi¬
tional shares of capital stock to its stockholders. Under27

June

W.

company

writcr-^None. Proceeds—To repay short-term loans and
for

new*
■

'

'

construction.

isq. n?r
Interstate

■ ■

,

Petroleum

-

<

•>*•>{

Co.

r.

Sept. 11 it was reported that .tHe, sale of 38,433 shares of
class B stock has been temporarily postponed.
Under¬

writer—White, Weld & Co., New^York.

Volume 174

Number 5056

.

.

.

The Commercial and Financial Chronicle

(1489)
it lowa-lltinois Gas & Electric Co.
Oct. 8

it

was

issuance

and

sale

over

•

that the company

announced

the

next

three

contemplates

years

of

60,000 shares of preferred stock (par $100) or $6,000,000
debentures; also an issue of about $12,000,000 in first
mortgage bonds. Underwriters—For bonds, to be deter¬
mined by competitive bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; Harriman Ripley & Co., Inc., Union
Securities Corp. and White, Weld & Co. (jointly); Equit¬
able Securities Corp.; Glore, Forgan & Co.; Harris, Hall
& Co. (Inc.); Lehman Brothers; Blyth & Co.; The First
Boston Corp.; Smith, Barney & Co. The following may
bid for preferred stock: Blyth & Co., Inc.; Merrill Lynch,
Pierce. Fenner & Beane; Kidder, Peabod.y & Co., in addi¬
tion to those mentioned as probable bidders for the

on

in

com¬

Jacobsen

Manufacturing Co., Racine, Wis.
Sept. 21 it was stated that company plans to issue and
call approximately 120,000 additional shares of common
stock.
Underwriters—A. C. Allyn & Co., Inc. and Shil-

linglaw, Bolger & Co., both of Chicago, 111.
For working capital.

Lehmann

Proceeds—

/

Co. (N.J.)
Sept. 1 it was reported that the Office of Alien Property
expects to call for bids in October on all of the out¬
standing stock of this corporation.
(J. M.)

Long Island Lighting Co.
Oct. 3 it

was

announced company

bank loans and for construction program. Additional
Financing—It is further estimated that company will re¬
pay

quire approximately $100,000,000 additional to complete
the construction program through 1954.
"

on

a

was

—To

increase authorized

common

stock by

500,000 shares to 2,500,000 shares in order to provide foi
a probable
offering of additional stock to common stock¬
holders.

Probable

New York.

underwriter:

Proceeds will be

Goldman, Sachs & Co.,
added to working capital.

&

be

bidders for bonds:
Halsey, Stuart & Co.
Inc.; Kuhn, .Loeb & Co.; Blyth & Co., Inc.; The First
Boston Corp. and
Harris, Hall & Co., Inc. (jointly). These

announced

later.

bankers bid for the
$30,000,000 issue of 3y8%

Co.

Inc., Chicago, 111.,
Co., Milwaukee, Wis. Proceeds

an¬

,

nounced that the directors have approved in
of

principle a
modest amount (not exceeding $300,000)
stock for subscription by common stockhold¬

common

Southern California Gas Co.

a

company indicated it would this
year be in
the market with
$18,000,000 of senior securities. Prob¬
able bidders:
Halsey, Stuart & Co. Inc.; Blyth &

Co.,

Inc.; White, Weld & Co.; Lehman
Brothers; Merrill
Lynch, Pierce, Fenner & Beane and Harris, Hall &
Co.
(Inc.) (jointly).
Offering—Expected in the Fall.

standing 197,600 shares of $1 par value. Probable Under¬
writer—H. M. Byllesby & Co., Chicago, 111. Proceeds—
For

working capital.

"

'

.

★ Southern Natural Gas Co,
July 31 it was announced company has filed

Penn Electric Switch

Co., Goshen, Ind.
Sept. 21 it was reported that company plans to issue and
sell 100,000 additional shares of common stock.
Under¬
writer—F. S. Moseley & Co., Boston, Mass. Proceeds—
For expansion program and working capital.

tion

'r.'.'.V

;

/v

•

1951 to 1956.

Co.]

plates issuance and sale of not
of

it

11

announced

was

to

:

will vote Nov.
Texas

around

in

was

and

Dec. 5

Sept.

& Co.
•

Merritt-Chapman & Scott Corp.

Oct. 9
in

it

reported company may issue and sell not

was

of $5,000,000

excess

convertible preferred stock. Un¬
probably include Hirsch & Co., New

derwriter—Will
York.

,

it Metals & Chemicals Corp., Dallas, Tex.
Oct. 3 it

(11/15)

stated company plans issue and sale of 100,000 shares of common stock. Price—$3
per share. Under¬
was

writers—Beer & Co. and Binford, Dunlap & Reed, both
of

Dallas, Texas, and Stuart M. Wyeth Co. of
delphia, Pa. Proceeds—For working capital, etc.
Mulhens

Bids

(Ferd.), Inc., N. Y.

will be received at

the

Office

Phila¬

of

150,000 to 200,000 shares of additional

Property,
Department of Commerce, 120 Broadway, New York 5,
N. Y., by 1:30 p.m. (EST) on Oct. 25 for the purchase

from The

Attorney General of the United States of 1,000
shares of capital stock (no par) at public sale, as an
entirety. These shares constitute 100% of the issued and
outstanding stock.
</ ' "
England Power Co.
Sept. 6 it was reported that company plans to sell about
50,000 shares of preferred stock this Fall. Underwriters—

-rTo be determined by competitive bidding. Probable bid/ders: Lehman Brothers; Equitable Securities Corp. and
Carl M. Loeb, Rhoades & Co. (jointly); The First Boston

vCorp.; Merill Lynch, Pierce, Fenner & Beane; Kidder,
Peabody & Co.; The First Boston Corp.; W. C. Langley
& Co.; Harriman Ripley & Co., Inc. Proceeds—To
repay
,

bank loans and for construction

program.

it Northern Indiana Public Service Co.
Oct. 4 it
on

was

stated that stockholders will vote

increasing

authorized

of

stock

rate
•

place

it

in

a

position

240,000

(par $25).

■offered to

25

stock to
4,500,000
approving the crea¬
cumulative preference

on

shares of new
The new preference stock will be first

common

stockholders.

Probable underwriters

—Central Republic Co. Inc.; Blyth &
rill Lynch, Pierce, Fenner & Beane.

the

to

may

Stone

sell

nine shares held.

Probable bidders for debentures: Hal¬

Stuart & Co. Inc.: Morgan Stanley & Co.; Lehman
Brothers and Union Securities Corp. (jointly); White,
Weld & Co. Proceeds will be used to repay bank loans
sey,

and for

ceived

expansion program.

on

Nov. 20.




Bids—Expected to be

re¬

this

year.

more

To refund the presently outstanding $4,000,000 of 4%%
first mortgage bonds and repay outstanding short-term
bank notes which

are

due before the end of the year.

Southern California Edison Co.

'

Aug. 29 it was announced company may have to raise
approximately $49,900,000 more through additional fi¬
nancing to take care of its 1951-1952 construction pro¬

Co.

Corp.;

Union

Securities

Proceeds—For construction
to

be

opened

on

or

about
*'

was

i

Leaseholds, Ltd.

(Canada)
reported that between 1,000,000 and 1,200,stock will

common

Price—In the neighborhood

soon

be offered to pub¬

of $11 per share.

•

Un¬

Morgan

Westinghouse Electric Corp.
//
Sept. 26, it was announced stockholders will vote Dec. 14
on
increasing authorized indebtedness to $500,000,000
from $150,000,000 in connection with a $296,000,000 ex¬
pansion program. Company plans sale of debt secu¬
rities the type and amount of which are undermined
(may be private). Traditional underwriter: Kuhn, Loeb
& Co., New York.
y
:
■,
'
-

petitive bidding.: Probable bidders: Halsey, Stuart &
Co. Inc.; Lehman Brothers; Blyth & Co., Inc. Proceeds—

$30,000,000 of 3f-year debentures and 63p,2^4 addi¬
tional shares of common slock at par ($100 per share)
to present stockholders at4rSte of one new
Sh&fs ^for each

&

Stanley & Co.; Carl M.
Loeb, Rhoades & Co., and A. E. Ames & Co., Ltd. ..Pro¬
ceeds—To Dome Mines, Ltd., the parent.' RegistrationsExpected early next month.
.-:>>•
-

announced company
than $8,000,000 by fall of
Underwriters—May be determined by com¬
issue of

Securities

derwriters—Probably

Co.

plans

Weld

Bids—Expected

000 shares of

President,

Pacific Telephone & Telegraph Co. (11/20)
Aug. 15 it was announced company plans to issue and

Webster

Western

Oct. 8 it

Corp.,
Dillon, Read & Co.; F. S. Moseley & Co.; Riter & Co.

bond

White,

•

bidder by the Office of Alien Property.

Smith,

common

any

Dec. 10.

Merrill Lynch, Pierce, Fenner & Beane;
Kidder, Peabody
& Co.; F. Eberstadt & Co.; Allen & Co.; new
company
formed by United States & International Securities

a

&

program..

Probable bidders: A. G. Becker & Co. (Inc.), Union Se¬
curities Corp. and Ladenburg, Thalmann & Co. (jointly);

Earl

or

Corp.;

was

24

stock and an authorizing is¬
part of such increased shares by the
offering to stockholders. Underwriter—Paine, Webber, Jackson & Curtis.
:
:>■'v
of all

directors without prior

lic.

South Jersey Gas

announced stockholders will vote Nov. 15
common stock by an additional

was

Virginia Electric & Power Co. (12/10)
Sept. 25, Jack G. Holtzclaw, President, announced' the
company proposes to issue and sell $20,000,000 of first
and refunding mortgage bonds. Underwriter—To be de¬
termined by
competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler;

reported that the sale of the company's en¬
tire common stock issue (440,000 shares) was not ex¬
pected for at least two months. The sale will be made

April

\

Co.

200,000 shares of

Sobering Corp.

Co., Inc.; and Mer¬

on

increasing authorized

suance

>

reservation

Oct 3 it

issue of like amount sold

Norman

Oct. 11 it

take the form of a general offering for
public or granting of rights to stockholders;
for conversion of long-term indebt¬
edness which could be issued with provision for con¬
vertibility into ,common stock. The company presently
has outstanding 439,193 shares of capital stock, of which
45,350 shares are held by the wholly owned subsidiary,
Ryan School of Aeronautics.
or

an

purposes.

Van

on

do appropriate financing of some form of its own securi¬
ties if and when advantageous to the company. The new

to the highest
Oct.

common

shares from 4,000,000 shares and
tion

bidding.
July 24 were
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.,
White,
Weld & Co. and Equitable Securities
Corp.* (jointly);
The First Boston Corp., Harriman
Ripley & Co-., Inc., and
Goldman, Sachs & Co. (jointly). Proceeds—For expan¬
sion program of United Gas
System and for other corpo¬
Bidders for

Ryan Aeronautical Co., San Diego, Calif.
Aug. 4 it was announced company plans to increase
its authorized capital stock (par $1) from 500,000 to

financing

f

pated this will be done by the sale of first mortgage and
collateral trust bonds during the latter
part of the year."
Underwriters—To be determined by competitive

sale to the

New

:

Rochester Gas & Electric Corp.
Aug. 1 it was announced that company expects to issue
$5,000,000 additional first mortgage bonds and additional
debt securities or preferred or common stocks, bank
borrowings, or some combination thereof, in connection
with its construction program. The method of obtaining
such additional cash requirement has not been deter¬
mined. Previous bond financing was done privately.
July 18, it was reported that the company expects to
raise money through the sale of some preferred stock
later this year. Underwriter—Probably The First Boston
Corp., New York, Proceeds—To finance, in part, a $10,000,000 construction program the company has budgeted

to

>

/:

million

shares in order

0

17

Corp./
,X-:/ y.: ;y
Aug. 1, N. C. McGowan, President, announced that "it
will be necessary to arrange for an additional
$50,000,000
to complete the total financing, and it is
presently antici¬

announced company plans to issue and
dollars of first mortgage bonds in
the Fall.
In July last year, $1,200,000 of bonds were
placed privately with two institutional investors.

1,000,000

.

United Gas

/

Alien

&

$1,500,000 on 3% notes. These notes would be
refunded through the sale of common or
preferred stock.
Traditional underwriters: Union Securities
Corp. and
W. C. Langley & Co., New York. Proceeds from notes
to
be used to pay for construction costs."

and sell

for the next two years.

(10/25)

sell

borrow

Hampshire

was

several

and

stock early

Boston

it was reported company has applied to, the
North Carolina Utilities Commission for
permission' to

.y'-1//•./;.//.'-'y

Public Service Co. of North Carolina, Inc.
sell

issue

may

common

First

,

Ripley & Co; Inc.

July 12 it

The

Tide Water Power Co.

"

Mengel Co.
:\
Aug. 10, Alvan A. Voit, President, stated that the com¬
pany plans to spend from $15,000,000 to $20,000,000 for
expansion, but that plans for financing have not yet
been completed. Traditional underwriter—F. S.
Moseley

company

Probable bidders:

Corp. and
Co., Inc. (jointly); Union Securities
Corp.;
Brothers and Bear, Stearns & Co."
(jointly);
Goldman, Sachs & Co. and Harriman Ripley & Co. Inc.
(jointly); Kidder, Peabody & Co. and Merrill Lynch,
Pierce, Fenner & Beane (jointly).
/

Kidder, Peabody & Co.
Blyth & Co., Inc. (jointly); The First Boston Corp.;

Harriman

reported

was

400,000 additional shares of

1952.

Blyth

stock. Probable bidders:

comomn

$18,Meeting—Stockholders #
approving financing program.
>

on

Lehman

reported company may issue

late in November

19

Utilities Co.

Sept. 24 it

,

stockholders will vote

Service Co. of New

Public

Sept. 25, it

20-year sinking fund de¬
Underwriter—Paine, Webber, Jackson & Cur¬
Proceeds—To retire $17,200,000 of 3V4%
debentures,
finance expansion program to cost more than
new

000,000 and for working capitals

authorized 5Vz% prior preferred stock,
first series, from 225,927 to
400,000 shares and the
authorized common stock from 1,500,000 to 2,500,000

•/. "•■//;

more

preferred stock

about $25,000,000 of

•

contem¬
than 200,000 shares
(about $20,000,000)

bentures.
tis.

increasing

on

convertible

new

and

Pittsburgh Steel Co.

Oct.

applica-'

an

permission to construct additional
estimated $13,641,000, of which ap¬

an

^ Sylvania Electric Products, Inc.
Oct. 10, it was announced that the
company

,

in the years

for

expected to be spent in 1951.
LThe additional matter previously
appearing under this
company referred to Standard Products

Philadelphia Electric Co.
Sept. 30 company announced that about $200,000,000 will
have to be raised through the sale of additional secur¬
ities, spaced at intervals, and in amounts which will
permit ready absorption by the investment market. The
overall construction program has already cost $217,000,000, and will require expenditures of about $365,000,000
more

FPC

proximately $9,187,000 is

Brothers; White, Weld & Co. Proceeds will be
expansion program. Financing not considered

for

with

facilities to cost

Pennsylvania Water & Power Co.
July 25, stockholders approved issuance of 78,507 shares
of cumulative preferred stock (par $100). Proceeds will
be used for expansion program.
Aug. 7, it was reported company may issue and sell
$8,000,000 to $10,000,000 of first mortgage bonds. Prob¬
able bidders may include: Halsey, Stuart & Co.
Inc.;
Lehman

<

April 4, the

This may involve the issuance of 24,700 additional
shares on a one-for-eight basis. There are presently out¬
ers.

.

first and

refunding mortgage bonds which were sold last week.
The nature, amounts and
timing of the new financing
cannot now be
determined,- and will depend in part on
market conditions
existing from time to time and may
include temporary bank loans.

selling stockholders.

plan to offer

Probable

gram.

Parkersburg Rig & Reel Co.
Aug. 1 A. Sidney Knowles, Chairman and President,

announced stockholders will vote Oct. 23

proposal to

.

Price—To
Becker

and Robert W. Baird &

shares.

Inc.

13.
G.

imminent.

bidders:
Halsey, Stuart & Co. Inc.; Blyth &
Co., Inc.; Lehman Brothers; Kidder, Peabody & Co.; The
First Boston Corp.; Union Securities Corp.; Equitable
Securities Corp.; White, Weld & Co.
Proceeds—From
sale of bonds, together with proceeds from sale of
100,000 shares of preferred stock (par $100), will be used to
retire $14,493,400 of bonds of former subsidiaries, to re¬

May 24 it

Nov,

plans to issue and sell

Probable

McKesson & Robbins,

about

or

used

in December about $25,000,000 of first mortgage bonds.
Underwriters—To be determined by competitive bidding.

(11/13)

was

Underwriters—A.

bonds, with the exception of Halsey, Stuart & Co. Inc.

$6,000,000 bank loan used to finance, in part, the
pany's construction program.

Pen Co.

reported that sale of from 90,000 to 100,000
shares of class B common stock (par $2) is
contemplated

about

Proceeds from the-sale of the preferred stock or debentures (probably late this year) will be used to retire a

Parker

Oct. 9 it

41

Wisconsin Public Service

Corp.

Kohlepp, President, announced

Sept. 4 C. E.
plans to build

a

company

$12,000,000 steam turbine power plant
Method of permanent financ-

in Marathon County, Wis.
•-

determined.
If bonds, probable
Halsey, Stuart & Co. Inc.; The
Corp.; Harris, Hall & Co. (Inc.); Kidder,
Peabody & Co.; Carl M. Loeb, Rhoades & Co.; Salomon
Bros. & Hutzler; Union Securities Corp.;. Merrill Lynch,
Pierce, Fenner & Beane; Shields & Co.

ing has not yet been
bidders
First

may

Boston

include:

42

The Commercial and Financial Chronicle

(1490)

Thursday, October 18, 1951

...

■k

Continued

from

3

page

'

■

facilities, and for research and de¬
velopment. We sometimes fail to
give due credit to the fact that
our spectacular progress over the
last 50 years was in no small de¬
gree-due
to
the
accumulated
in¬ wealth of the past and the use of
for eai'nings reinvested in the enter¬

*.

Your Stake in American Business

government services until we are chemical industry requires an
vestment
of nearly
$25,000
better able to pay for them.
each worker. The electric utility prise.
Investment Requires Faith in
industry requires an investment
The
Future Stability
You

this point very
the question: What
has all this to do with the need
at

may

approximately $62,000, by far
the largest of any industry, and
nearly nine times as much as for
manufacturing as a whole.

of

properly ask

in America? Well, it
lot to do with it. Before we

for investing

investors ask for the
of their savings are small, but

'• v"

,
i

•!'

;

basic

support

the
that

American,

which

for

take

we

is

people are reluctant to offer their
savings to industry. Just as wages
of employees are the part of busi¬

of these enterprises.

In

opin¬

my

future well-being of
business enterprise is not a matter
the

ion,

of good

bad business manage¬

or

ment, it is rather

matter of good
and its overall
national econ-

a

bad government

or

relationship to

our

importance. Unless there
return on the investment,

a

tools

without

people themselves who

must
and
the

Eleven

weary

with

Is

Incentive

Personal

Essence

of

billion

be good investment,

and

new

unproved

surest

demands,

if not the quickest
is through a public whose
way,

has

program

a

much

our
a

of

one

as

its

objectives

primary

ownership of
industrial enterprises. This is

task

expanded

of

small proportion.

no

It

requires the
development
of
greater confidence in our business
system.
Greater confidence will
better

from

understanding.
Better understanding will come in
large measure from information
come

which

explains

how

our

The

public

at

large

must

be

taught that the big difference be¬
tween our system of free enter¬
prise and the socialistic-commu¬

each

year

on

the
maintaining
Thus,

enterprise.

mounting taxes,

ing observa¬
can
be
made

A century

is

where

and

a

alternative, but I

believe

mention

to

that

American

half ago indus¬

will

every

who

-

it,

re¬

L

for

a jot about
family's future

real

danger that threatens

try— such

number

the

than

as

employees. V We face a serious challenge: it
is our responsibility to deal with
this challenge to the end that the

of

Today, however, three-fourths of
the labor force is
estimated to

forces

schemes

tries

can

other

any

ever

corporations

and

better

ever

tools

workers, enabling them to
facture

for

manu¬

more

products,, quicker,
cheaper, and in greater variety.
Shorter
hours,
higher
wages,,
greater job opportunities are the
direct result, along with the abil¬

ity on the part of all workers to
buy more of the goods they and
others produce, and thus enjoy a
better way of life.
This is the
American

brought

Every

way—which

the

us

standard of

world's

in

so

widely

opportunists

against class, inciting

be

business—there
are 3 million private citizen own¬
ers, one for every 12 residential
customers throughout the land.
and

light

power

a

need to protect his

a

plight

of

What

supply his

Consider

workers

steel

own

number of individual investors in

highest relation

job and every
savings invested in

man

business has

tools.

would

as

to the number of persons

that could and should have

job and his investments.
the

has

living.

with

man

not

by

part

set class

ings

of

nesses

individuals

in

the

without

worker

hearth

could

in American

stake

business.

A Federal

of

December,

Bulletin

Reserve

a

busi¬

enterprises of America,
the greater will be the
body of
the people who will think twice

of

American

Taxation
But

democracy.

Can

security
1

Bankrupt Nation

excessive

bankrupt

and

own,

taxation

can

nation.

our

Here, , then
is the real danger.
For, from the
1950, reports that there are eight
degradation and suffering of a
times
as
many
persons
owning
automobiles as own stocks in cor¬ bankrupt
people,
dictators
are
born. Their emergence sounds the
death knell of freedom. Greed and

porations.

furnace?

Thus, it seems basically sound
What
machinist owns his own
selfishness, led by the lust for
that if a much greater proportion
power, have been inherent traits
lathes, or what stenographer sup¬
of the public can be interested in
in human behavior down
plies her own desk and type¬
through
the ownership of a stake in busi¬
the ages, and, sad to
writer? Yet, we must have these
relate, these
ness, there will automatically be
things to do our jobs. It is the
created a force whose self-interest same qualities still appear as the
stockholders

money,

among
case

put

up

the

their

business and
The

who

savings, to equip
keep it growing.

investment in tools varies

industries,

they cost far

workers who

but

in

more

more

nearly

with

coincide

industry's,. and the influence of
business enterprise on our future
will

become

more

effective.

than the

guiding motives
our

political

Shrinkage of Available Capital

of too

leaders.

Walter Spahr, noted

cently

every

them could

use

will

would

stated,
appear

many

As

"Our

only

to be that

we

The

problem,

however,

goes

of

re¬

lower

industries

than

this.




are

The

able
for

to
use

retain
in

the

from

its

earnings

expansion

of its

To-day,
solute

our

and

me

shingles

casing

Or

there

wrong

way,

trusted

to

the time to

remodeling

jobs

on

houses,

old

laying
mitering

putting

or

him

was

door-

a

could

he

right

con-,

c. ;

enough individuals

a

be

even

working by
:■ ~;,v'

Not

course,

a

right and

a

the job

was

tract.

espe¬

He
were-

hardware.

on

and

do

though he

care¬

painstaking,

was

was

To

quality

Read Them

Use Contracts and

My friend's house is in an area
where skilled craftsmen

should be

Some of his jobs have

available;

contract; some have

been let under

done at an hourly

been

; y

•

or com¬

rate.

All

standards

buying

hardware

down.
When
today ask for
goods made before June 1, 1950.

The

But, though price was
the important factor, few reaL

mended.
not

ly took pride in the job they did.
Certainly, don't start a remodeling

quality since then has been'

losing ground.

," '

'

.

Is Remodeling a Good Investment?

Apartments are in demand.

the workmen were highly recom¬

houses

Many can
or

more

make

contract

a

Old

cheap!
be made over into four
apartments.:-; You "can
still be bought

can

so

as

to

know;

except by contracts; just what the remodeling wilE
then read your contracts before cost; you can also learn from reaf
estate agents how much rent yoU!
signing or else employ an archi¬
job

today

expect.

can

tect.

,

of

card

The

friend employed read: "Neat
craftsmanlike workmanship." Be¬
my

job- had gone far, the
had to remind the painter

the

fore

owner

spattered floors nor

neither

that

window sashes
were acceptable.
While the plum¬
ber spent considerable time talk¬
carelessly

drawn

about his fine workmanship,
his joints and pipes leaked and
he
carelessly chipped porcelain
fixtures.
Therefore, you must be
ing

work

insist

and

hard-boiled

after

even

on

have

you

read

over

with

full

the

safe

for

some

of

be

paperhanger

wife.

-

unwise to take the

be

may

a

lowest bidder for roof work.
ter contract with

a

•

f

5 MILWAUKEE, WIS.~Worth H.
with Loewi & Cd.J

now

«

,>

v*. '<"<

•

■

>

Raymond Storb Opens
BROOKLYN,- N. Y.—Raymond
C. Storb is engaging in the in¬
from offices at

vestment business
150

Columbia

was

previously President of StortH

Heights. Mr.

Irvine & Co., Inc.
».*

•; ;

;

•

Storb

of New York. "

' J,'

; -•

'V

Bet¬

James Marino
HILLCREST,

N.

Opens

;

Y.—James

J.

Marino is engaging in the seeuri-.
ties

from

business

offices

at

35

Everett Street.

roofer who has

been in business many years.

Too

Walter T. Rosen

roofers think that the own¬

will

inspect the gutters, etc.

never

he fails to oil the gutters

joints

friend
trician.

for

who really

ride

a

He

Romex

his

per

as

one

used

Hence,
and seal
contract.

16 at the

the elec¬
more-: BX
BC,

and

the

&

Co.,

age

of 75.

was

clips

than

As electricians get a
on

Thalmann

Ladenburg,

New York City, passed away Oct.

Paul Lee Co.

sable ,r>connectors,

cutouts

profit

of

took my

you'd suspect it takes to build a

battleship!

Walter T. Rosen, senior partner

climb up on the roof

er

big

•

to The Financial Chuonicle)

before

the selection of

plates,

good

Joins Loewi & Co.

Carbery is

buying
the paper; but be on the job when
it is being hung. The selection of
wallpaper is almost as important

and

you

vacancies.

a

(Special

paper,

many

! To be on
should allow
Remodeling

occupancy.

side,,

225 East Mason Street, v

particular paperhanger, meant he
could slap it on as fast as possible
—butt it or lap it, depending on
the wall!
This may be good ad¬
vice.
One should always consult

It

cover

located old houses
investment; but
investigate before you invest.

particularly for the
hall; it's easier to match and more
economical." Plain paper, for that

as

to

properly

may

v.

the

annually

repairs and'
left for yourself, even'

to have 6%

paperhanger said: "Choose

The

plain

10%

will get

This should

taxes, insurance and

Are Craftsmen Gone?

V

.

investment.

your

be

good

and signed your contracts.

;

Then figure what you

painter which

the

on

the

the

he

was

if the house

as

He

own,

He

his work.

of

.

the

nation is proof—ab¬

irrevocable—that

proud

acted almost

of

carpenter was

hundred.

a

as
the panies today render good crafts-!
deteriorate manship. Wars, government con-!
tracts,
sellers'
markets, and
even though the land increases in
material shortages tend to bring,
value.
; ••'/ i".y';';M-'y;/'1

But

about

Individual
or

and

cially

may

yet have the good luck to obtain

ever

of houses always

best

hope

For instance, in a recent
study by the National Industrial much deeper than this and grows effective leadership in statesmen
Conference Board, the investment out of the
disturbing fact that who know the difference between
in plant and
equipment behind there is a
steady shrinkage of the responsible,
intelligent
govern¬
each worker in
manufacturing in¬
available capital that industry is ment and dictatorship."
dustries was estimated at

$7,100.
higher

tells

to

Dr.

educator,

af¬

ford.

in

ful

and

However, such figures are apt before risking what they
method of free enterprise to be misleading as to the total the greater will be the

proven

—the

are

today, who

those
who
"have
not"
against
desirable. those "who have."
To-day we in
The
American
Telephone
and this
country are still far from
Telegraph Company just recently the point of
repudiating our
announced with justifiable pride American
way of life. The very
that it had secured its one-mil¬ fact
that we have possessions,; such
lionth
stockholder.
The
electric as
homes, cars, bank accounts, and
companies,
collectively
in
the insurance policies, acts as a de-r
United States, have an estimated torrent
to
any
such
foolhardy
3 million stockholders. > Thus, in action.
Therefore, the more and
my own business — the electric wider the investment of the
sav¬

owned

to realize that investors have pro¬
vided
and
continue to
provide
more

stockholders

of

system

whole must be made

earners,

wage

number

-'V:
as a

of

out-

devised.

People

consist

and

out-produce

progress

foist

would

some

now

one

his

As

friend's

wonder if this

Roger W. Babson

elec-,

Good Reputations

on

my

his troubles, I

gives

part when awakened

But

whether

is

the
will

mice

,,

present-day

do

only

the

and

job concerning

red-blooded

his

do

the

to

that

on

he

here

than they should. What's

Insists

Some

the

an

invest."

you

partitions

know!

interest¬

very

approaching

even

on

may

apart¬

ments.

workmen.

brackets

is

fuse

converting

the

stockholders—and

there

man¬
which he

individual incomes in

his future and his

crumble with it.

would

tricians

is

toll of more than 45% of the
industrial profits, with a

higher

the

in

tak¬

now

difference between this program "Invest-Ift-America"
should prove most helpful. Yes,
our way of life or

losing it is simply profits. With¬
out profit, business as we know it,
would crumble away into nothing,
and our comfortable way of life

recently

into

Free Enterprise

is the essence of free

has

use more

sion

final

In the

but "investigate before

tions

on

troubles of remodeling bouses,

18-room

old

re¬

working toward cer¬
clerical
tain disaster shall be
removed.
workers, and other non-executive
upon us is that our system pro¬
Our lesson of history is that as a
employees. Thus, today only 25%
vides incentive to the individual,
nation experiences prolonged suc¬
are
owners
or
executives who
and competition which makes for
have a close connection with the cess, as ours has, it finally be¬
greater efficiency. These are the
comes
weakened and a prey to
fruits of private ownership, and management of business.
new
ideologies, promulgated for
the basic reasons why our indus¬
Despite
the
relatively
large the most
nistic

mine

of
an

pro¬

it was — consisted the loss forever of those
basic
system mainly of small owner-operated freedoms which have character¬
enterprises, and the number of ized our
nation since its founding.
self-employed persons was greater

works.

friend

A

purchased

V
point,of confiscation, where, may
analysis, this profit 1 ask", are the capital needs of
system rewards most those who industry in the future to come
way,
from? One answer to this question
self interest prompts it to action. have the greatest talent for ef¬
ficient production and for service is self evident—from a very much
To promote this self-interest the
number of smaller
to society. This personal incentive increased
"Invest-In-America"
their

assert

on

(2) watch carefully quality of work done; and (3) insist

nation's
tax

pursuit of happiness.

years

dollars

With
a

and the.

great land—life, liberty,

good reputation of workmen. Says remodeling old houses

to

search.

ing

of

(1) don't start remodeling work except by contract;

no

production without cap¬
What that may be is just what ital. Payment of a share pf profits
is
necessary
to obtain capital;
we, the people of these United
States, choose it to be.
Here, therefore profits are the life blood
or our economic system.
therefore, is the most effective
key to the problems ahead. It is
the

Mr. Babson, commenting
advises:

provide. Just as there
production of goods ducts, and it is significant that
labor, there can be no to-day businesses spending a half

they
be

abundant

omy.

years

and $27,000,000 were spent in research by the
ness income which represents pay¬
ment
for
human ingenuity and duPont Company before a pound
skill, profits represent payments of nylon was sold. All this time,
to
investors for the use of the effort, and money was to provide

can

here

us

rights
this,

their

of

Constitution

the

under

By ROGER W. BABSON

developing an
electrolytic process of tin plating.
fifteen

us

of

exercise

free

On Remodeling Houses

development. U. S. Steel devoted

prises by more and more people,
we must be sure in our own minds
of our faith in the future stability

use

and

to the younger gen-

granted were

of vital

a

those

to

to-day, and

to

opportunities for the full'

golden

suc¬

the future well-being of every

to

right

1

.

honestly recommend increased
investment
in American
enter¬

has

give it. The

can

the

have

who

expect that we pass on to them an
America that still holds all ther

of this movement means much

cess

possible only because large com¬
panies could afford to spend im¬
mense
sums
for research and

The wages

we

orations

was

"Invest-In-

The

America" movement needs all the

published fiftystory of U. S. Steel, contained
very
significant observation
many of the modern miracles

year

it

which

on

work.

recently

can

i

truths

founded

material

they

supply you, they are tempted to

RICHMOND

B.

Lee

Lee

has

Opens

HILL, N. Y.—Paul

formed

The

Paul

B,

Company with offices at 97-45

—109th

Street

to

securities business.

engage

in

the

Number 5056

Volume 174

Continued

from

.

8'

page

The Commercial and Financial Chronicle

(1491)

But the change in the position

-f

,

,

,

of

the

secondary

market

in

the

43

Harold Bache to

interval brought about revision of

Dealer-ErokeiRecommendations
L. A. Barling- Company-—Latest

soot Building, Detroit 26,

i

these ideas and as a consequence
the debentures carried a 3%%
rate upon offering.

data—Moreland & Co., Penob-

Mich.

~

Public Service E. & G. Delays

Brayer-Hanson, Incorporated—-Progress report—Morgan & Co.,

Spring Street, Los Angeles 14, Calif.

634 South

Fairchild

Once

Engine

Airplane

&

v

First National Bank of Boston—Review—Geyer

& Co., Incorpb-

General Portland

'

clined

Motter & Associates,

Also available is

500 Fifth Avenue, New York 18, N. Y.
."•••'• special bulletin on Muntz TV, Inc.

:

a

:

^

Minnesota

•*

Mining and

Shaskan &

,

Manufacturing

Co.

—

Memorandum

the

La Salle Street, Chicago 3, 111.

v

Also available is

market

randum on Fort Wayne Corrugated Paper Co.

;•

J

,

'

Co., 160-

South Main Street, Salt Lake City 1, Utah. Also available
analysis of Equity Oil and Utah Southern Oil.

•

;

i

•

Mountain Fuel Supply—Analysis—Edward L. Burton &

are

3'.

New England Public Service

Co.—Analysis—Ira Haupt & Co.,
Broadway, New York 6, N. Y.

Ill

New
'

-

York,

Chicago

Hentz & Co

,

and St. Louis Railroad — Analysis
60 Beaver Street, New York 4, N. Y.

—

and

sibility of

memo-

a

situation

in

the

to

thus

avoid

the

Virginia Pulp & Paper
offering of $20,000,000 of
new 20-year
debentures, brought
tff market as 314 s at 100% and
interest, moved out quickly with
demand pushing the issue to a
fractional premium soon after the

Warren

$15,000,000

to

Company—Card

of

3U%,

not

15-

available

Also

*

-

memoranda

are

Associated

on

subject to

(No. 72)

Dry

Building, Rochester 14, N. Y.

/.

Spring Street, Lgs Angeles 13,
Verney Corp.

/Am

_

^

was

interested

are

is

3.25

to

indicated

.;

assured

were

..

but

of

Here again it
freedom

will

9,

the way

analysis—Faroll & Company, 209

Also available is information on

Mass.

.1 King Railway.

„

Thermo

1

brisk

a

West End Chemical—Circular—F.
way,

«■

New York 6, N. Y.

Star

.

a

was

Steel.

Wolf
-

Reilly & Co., Inc., 61 Broad-

Also available is

&

a

up

possible under

1
the

issue

tration

with

the

has

In

been

staff of John

With

On

be

of¬

first

was

Securities

now

more

connected with Bar¬

Avenue,

members

the

of

DIVIDEND NOTICES

negotiated
addition there
are

DIVIDEND NO. 48

Hudson
and
A

added

Kinnard

G.

there was talk of
probable 3%% coupon rate.
ago

merman

to

is

affiliated

now

Directors

held

8,

a

No.

close

of

A'

r'A ,J ":

business

E.

Oct.

22,

1951,

64

held

declared

a

a

Preferred

Stock

quarterly dividend of 15c

a

share

of the

on

the Common StOck

Company, both payable
.

October

a

11,

WARREN W. BELL,

President.

October is, 1951.

quarterly

the

Cumulative

$4.25

Preferred Stock of the
pany,

of

dividend

com¬

payable November 15,

1951, to stockholders of
ord November

1,

rec¬

GOULD-NATIONAL
INC.

BATTERIES,

1951.

MINNESOTA

SAINT PAUL,

A. SCHNEIDER,

1951.

P. ECKERLE,

33 %c

Directors has

of

quarterly dividend
share on the $1.35

dividend of U.06% per share

15, 1951 to shareholders of record

the

a

November 15, 1951, to holders
of record October 31, 1951.

CORPORATION
meeting

Board

Cumulative

COLUMBIA PICTURES

(15c) per share was declared pay¬

at

The

declared

a

able

Nov.

COMPANY
Dividend Notice

a

fifteen cents
on

November 16, 1951.

with

of

meeting of the Board

October

on

H. E. DODGE, Treasurer.

and

on

of

business

TIDE WATER POWER

DIVIDEND NOTICES

cincinnflT^OHio
Dividend

one

Webber-Simpson

ALuminum iiidustries, inc.

a

of

per

shareholders of record at the close of

the

The Board of Directors at

At

1

one
dollar
($1.00)
share and an extra
dollar ($1T00) (Ca¬
nadian) per share has been declared
on the
Capital Stock of this Company,
both payable December 17,
1951, to

Co.,

Webber-Simpson & Co., 208 South
La Salle Street, members of the
Midwest Stock Exchange.
;

DIVIDEND NOTICES

PERMITE

Dividend

(Canadian)

Dividend of

&

Bay Mining

Smelting Co., Limited

CHICAGO, 111.—Albert J. Zim¬

and

circular on Lone

Notes

may

Midwest Stock Exchange.

(Special to The Financial Chronicle)

:

a; Exchange Commission several

14, Ohio.

NSTA

he

71 Baker Arcade.

Dessauer—Memorandum—Fulton, Reid & Co., Union
Building, Cleveland

will

several smaller projects due
for competing bids.

Talaasen

•

negotiated deal paved
for quick success on this

When

«

Commerce

investment

ret, Fitch & Co., Inc., 1004 Balti¬

MINNEAPOLIS, Minn.—Palmer

noted that the

brought into the picture by regis¬
.

the

market

a

offering.

weeks

"

are
.

Corp.

of action

terms of

Salle

in

KANSAS CITY, Mo.—Landis B.

Elliott is

Joins John Kinnard Co.

public offering today.

upon

U. S. Thermo Control—Data—Raymond & Co., 148 State Street,
Boston

Tuesday.

on

bankers

undertakings.

ing fund debentures, due in 1976,

Street, Chicago 4, 111.
Also available is a
brief analysis of National Container Corp.
>
; a

v

Gas

Both these latter

the

■

/

out

involve

preferred
& Electric

of Continental Can Co.

that the $50,000,000 of
Corp. of America sink¬

Celanese

\; Broadway, New York 5, N. Y.
Radiator Corp.—Brief

due

will

of

(Special to The Financial Chronicle)

r-^'Tri-Continental Corporation-^Reyiew—Sutro Bros. & Co., 120

South La

these

shares

Wednesday

was

when

3.50%,

Celanese

•■#v>y;'Tfcxas- GUI# Producing Company-r-Analysis—Bruns, Nordeman
A:
Coc>>j60rfBeaver Street, New York 4, N. Y. v,w.;

;U. S.

of

of. Pacific

Corp.,

Meanwhile preliminary inquiry

Aiso available is a

Calif.

my

Barret, Fitch Adds

gets down to 3.10 to 3.20%.

'

attend

director of

104,625 shares of preferred stock

Goods

'

V

quickly

up

take to the woods when the basis

Teletone Radio Corp.—Memorandum—Fewel & Co., 453 South

to
a

(Special to The Financial Chronicle)

fering $15,000,000 debentures and

noted

~

interest

drastic change

any

reported with

Seneca Oil Company—Analysis—Genesee Valley Securities Co.,
Powers

Largest

good "off-the-

•-Corp., Federated Dept. Stores and Marshall Field & Co.....

;

'

ran

per¬

buying side. These buyers, it

—-Smith, Barney & Co., 14 Wall Street, New York 5, N. Y.
-

spectacular

premium of about four points.

yield

:St. Louis-San Francisco Railway Company—Bulletin

;

number of other

are a

companies, banks, and
pension founds all active on the

Falls Machine Co./'<

as

Mr. Bache stated further that in

in the meantime.

insurance

Co., 10 Post Office Square, Boston 9, Mass. Also available is
a memorandum on Gear Grinding Machine Co. and on Seneca

^

rather

street" demand

memorandum—Lerner ,&

able

panies in Japan."

ready for public offering
provided market conditions are

Petroleum

debentures

In both instances

Development Limited—Analysis—John R. Lewis, Inc.,
Cement

a

be

trip.

stock

Co., Inc., 199 Washington Street, Boston 8, Mass. Also avail¬
able are brief data on Springfield Gas Light Company, and
New England Electric System.

meeting

propose after his

offering this issue

convertible
a

will

first

which

1,500,000

Riverside

•

leave

deals

Meanwhile

Corp.'s

time

real

But there

.

; ' 1006 Second Avenue, Seattle 4, Wash.

/

Co., will

Sunday, Oct. 21,

extended visit to Japan.

recommendations

formance. Priced at par for public

Placer

an

foregoing issue,

staged

'

for

bankers will be competing for the

Oxford Paper Company—Brief memorandum—Chas. A. Day &

-

&
on

thority financing, this time $168,- addition to Bache & Co. he rep¬
709,000,
next
week
promises resents a number of other imanother busy period for under¬ portant private American invest¬
writers.
Of
course,
commercial ment banking firms who have a

Company—Analysis—Ira Haupt & Co.,
>111 Broadway, New York 6, N. Y.
v.'
;[■■■
!

of Bache

Daiichi Bussan Kaisha, Ltd., which
is one of the largest
trading com¬

stallment of Federal Housing Au¬

West

year,

the

Big Week Ahead

books closed.

Northern New England
1

make

company

Topped off by another huge in¬

Co.'s

H.

the

convertible.

pos¬

slow deal.

a

have

issue

secondary

—

Co., 40 Exchange Place, New York 5, N. Y.

MotorolaIncorporated—Analysis—Dayton & Gernon, 105 South
.

In

it is possible

to make last minute adjustment to

;

;

impression.

lasting

a

these circumstances

Corporation-—Analysis—May & Gannon, Inc.,
Devonshire Street, Boston 10, Mass.

161

also

San Francisco

whenever

route

make

Metal & Thermit

-

J.), has

(N.

#

Co., 15 Broad Street, New York 5, N. Y.

Kropp Forge Company—Bulletin—O. B.

Co.

Exchange firm, and Robert C. Hall,

tiating with bankers for the of¬ the investment opportunities in
Japan. Mr. Hall is the head of
possible. fering of 249,942 shares of $100
that department.
Except
in
rare
instances,
of par cumulative preferred and it
had been expected that the shares
"This trip will serve a duel
course, public utility companies
would reach market this week.
purpose," said Mr. Bache;
"Mr.
and the railroads pre barred by
But now it develops that the Hall and I will explore the possi¬
law from pursuing that course.
bilities of long-term investments
Nevertheless the fact remains issuer has been unable to reach
of American capital where it can
a
satisfactory basis and has de¬
that
the
several
underwritings
cided to forego the operation for best be used in aiding in the de¬
carried through by negotiation this
a
spell. Some thought that per¬ velopment and expansion of in¬
week went out in a manner to
haps bankers had made an effort dustry in Japan and at the same

Cement

Kaiser Steel Corporation—Analysis—Hill Richards & Co., 621
South Spring Street, Los Angeles 14, Calif.

1

point out wisdom of
financing via the nego¬

new

tiated

Gulf, Mobile & Ohio Railroad—Analysis—Eastman, Dillon &

s

to

doing

Company—Analysis—Cruttenden &
Co., 209 South La Salle Street, Chicago 4, 111

.

Gas

Service

fit to defer indefinitely a
Bache & Co. has established a
projected financing operation in¬
volving the
sale
of
preferred Japanese Department for the pur¬
pose
of developing trade with
stock.' ■
The company had been nego¬ Japan and also to examine into

People who make a business of
distributing new securities are in¬

Gamble-Skogmo, Inc.—Bulletin—Stanley Heller & Co., 30 Pine
Street, New York 5, N. Y.
; . ^
\

i

&

Public

seen

-

rated, 63 Wall Street, New York 5, N. Y.

,

Electric

and

Corp.—Analysis—Sincere

Company, 231 South "La Salle Street, Chicago 4, 111.

:

the

more

Visit Japan
Harold L. Bache, senior partner
of Bache & Co., New York Stock

V

Manufacturers of Automotive

Vtce-Pres. and Treat.

and Industrial Batteries

Secretary

DIVIDEND NOTICE
Preferred Dividend
f
J
.

The

Security

Traders

Association of

New York

(STANY)

Bowling League Standing as of Oct. 13, 1951 are as follows:
TEAM

.

Points

.

(Capt.), Siepser,, Gronick, Growney, Kaiser—.—— 20
Leone (Capt.), Tisch, Pollack, Nieman, Bradley__i
20
:
Goodman (CaptJ, Weissman, Farrell, Valentine, Smith
19
19
Kumm (Capt.), Gehegan, R. Montanye, Krassowich, Manson__
5
18
Hunter (Capt.), Craig, Fredericks, Weseman, Lytle
a
15
Krisam (Capt.), Gavin, Gannon, Jacobs, Murphy
15
Serlan (Capt.), Gold, Krumholz, Young, Gersten__t^____
15
Mewing (Capt.), G. Montanye, M. Meyer, La Pato, Kiein..:—
12
f
Greenberg" (Capt), Sieged. Cohen, Sullivan, Vbccoli
H. Meyer (Capt.), Swensbri^A. Frankel,WeclM&r? King—11
vDoriadio (Capt). Rappa*; O'Connor, Whitiri^uDemaye_^_-A-10
I
Bean (Capt.) Lax, H. Frankel, Werkmeister,! ReicL—_—6
Burian

♦

:

•

,

„

i

t

200

5 Point Club

Club'-"

Cy, Murphy221. .
W„ Bradley
202 "




-

Wilbur; krisam
Bill

Kumm

DIVIDEND NOTICES

Burroughs

SECURITY TRADERS ASSOCIATION OF NEW YORK

205th

AND

DEBENTURE: The regular quarterly

CONSECUTIVE

206th

CASH DIVIDENDS
A

of

ten

a

share and

cents

declared

($.10)

an

a

the

upon

extra

dividend

share have been

stock

of

BUR¬

ROUGHS ADDING MACHINE COM-

PANY,

payable

Dec.

10,

1951,

to

shareholders of record at the,close of
business Nov. 9, 1951.

Detroit, Michigan
October 15, 1951

benture Stock will be
to

quarterly dividend of twenty cents

.($.20)

dividend of $2.00 per share on the De¬

Sheldon F. Hall,
Secretary

The Board of Directors today
on

per

initial quarterly

share

on

paid Nov. l, 1951,

the Cumulative
Stock, payable

stockholders of record Oct. 22, 1951.

"A"

COMMON and

VOTING

COMMON: A quarterly dividend of
30 cents per

and

share

on

the "A" Common

Voting Common Stocks will be paid

Nov. 15, 1951, to

stockholders of record

A. B. Newhall, Treasurer

Dividend

\

.^19,1951.

The Board of

Directors

today

declared

a

dividend

share on ,
Common Stock, payable

November 1 to shareholders
of record October

Framlngham, Mass.
DAGGETT

President

)

of

record October'

Common

A. H.

©

Preferred

November

1 to shareholders

of 75c per

Oct. 22, 1951.

declared

dividend of 31

October 8,1951

19,1951.

A

The Commercial and Financial Chronicle

44

Thursday, October 18, 1951

...

(1492)

Be in Attendance at1

on

from the Nation's

Capital

•

>

•

•

"Financial Follies"

A

Behind-the-Scene Interpretation!

1

Prominent Guests to

BUSINESS BUZZ

gJ

Several

prominent

business

J. fJmMt

JTjL m vlv

American

personalities

have■

al¬

ready accepted invitations to the
"Financial Follies

of

1951," Sam¬

uel

Shulsky,
President of the
New
York
Financial Writers'

WASHINGTON, D. C.—Defense openly asked for a new design or
important modifications on a big
production is doing well, or it is
production order, they would get
doing
poorly.
You pays your
into trouble with "front office"
money and you takes your choice
Secretary Lovett.
—or
at least that is the way it
The military, of course, face a
looks from official statements.
From
Charles E. Wilson, Di¬ terrific problem in knowing when
rector
of Defense
Mobilization, to harden on designs and go into

'

ing sentence:

4
this Na¬

"For more than a year,
tion has been building military

r

York

year

all-out war."

.

"

,

plying some easy,
bell-ringing
copy for the dailies, Wilson's re¬
port, on a close reading, gives
something of a pessimistic out¬
look.
It would appear that the

*

*

*

.

;

the other hand,

of

Chairman

Martin,

System, and

mission.

i

••

Emil

Schram, former President
the New York Stock Exchange,

of

will be back to

see

the fun made

at someone else's expense.

The newspaper

industry will be

represented by William Randolph

Hearst,

Publisher

Jr.,

the

of

"Journal

American"; Arthur Hays
Sulzberger, Publisher of the New
York

"Times," and
Robinson, Executive

v'

expenditure figures,

Actual

of

Workers

McC.

Harry A. McDonald, Chairman of
the Securities and Exchange Com¬

who care to read it.

those

other hand, after sup¬

the

On

John L.
the United
America; Wil¬

of

Federal Reserve

the

military. And it appears to have
strength—with an Charley Wilson worried, and to
intensity of effort equal to any have an important part in giving
achieved in this country short of a pessimistic tone to the report, to
N

Astor on

Exchange;

President

Mine

liam

economic

and

Curb

Lewis,

and that
of this hold-up is due to the

lot

the Hotel

Friday, Nov. 16, will be G. Keith
Funston, President of the New
York Stock Exchange; Edward T.
McCormick, President of the New

duction is being held up,
a

the Scribes and

"Feast of

annual

Pharisees" at

production.
and

mass

this

announced.

Among those attending the 11th

;

If tbe.y freeze
the
big
war
shouldn't come for five years, they
know they are stuck with obso¬
"Three Keys to Strength."
For the lay reader who likes lete weapons. If they don't 'freeze
heroic rhetoric packed into a two- in
time, they won't have any
paragraph lead, Charley has it. weapons.
This
flamboyantly-printed
and
On the other hand, there would
heroically-written report is full of appear to be little doubt that nu¬
such
ringing
phrases inspiring merous reports from industry are,
confidence as this typical, open¬ in fact, well founded, that pro¬

viewpoints in

get both

can

you

"one handy package, in the form of
his first
of the month report,

has

Association,

on

William E.
Vice-Presi¬
the "Herald Tribune."

dent of

do not appear to

Rehearsals

support an overall pessimistic ap¬
praisal of the progress of defense

"Good

production.
On June
29
the
Mobilizer is trying Budget
Bureau
predicted that
to enlighten the spending for the U. S. and its
in a thousand who NATO allies would be running

currently

are

pro¬

ceeding under the supervision of
Bruce Evans, Leslie Kramer and
Floyd Hynes.
;V
\ '

morning, Pettingiil — a trifle dewey this
morning, isn't it?"

Ho. 1 Defense

,

conscientiously
one

person

It is said

to

be

million, the legal deficit for the

plain that vol¬

might get to read the report, about during the first quarter of this fis¬ ume production to reach the pres¬
some
of the difficulties he has cal year, "at an annual rate" of ent goal is not in sight before well
been running into.
One has to $32.8 billion.
into next year.
Any increase in
/
read between the lines, to be sure,
Actual first
quarter expendi¬ the legislative size of the Air
but Mr. Wilson makes it fairly
Force will simply have no more
tures, however, aggregated $8,687
easy for a discerning reader to do
concrete expression, for a year or
million, or an "annual rate" of
so, even if far less easier than for
so, than a resolution.
more than $34.7 billion.
the head of a copy desk to find a
An increase in the Air Force
On the assumption of a first
prominent news headline.
,
if
announced,
probably
quarter rate of $32.8 billion, the target,
One gathers that Mr. Wilson is
cannot be scheduled for comple¬
Budget Bureau insisted that the
worried about the power shortage
tion before 1954 or 1955—beyond
aggregate of U. S. and foreign
and its effect upon aluminum pro¬
the
supposed peak date of the
military aid outlays for the cur¬
duction in the Northwest, about
rent or 1952 fiscal year would be military building up of "some day
the great shortage of steel, and
in 1953."
$42 billion. The Defense Depart¬
about the copper strike. Most en¬
ment on June 29 disagreed, said it
lightening of all was the bland
It would appear that the Treas¬
would be $44 billion.
statement that the U. S. is just
decision to pick
Informed quarters would now ury's tentative
beginning the stage of mass pro¬
up in the neighborhood of $2.25
duction of weapons. This comes as give the Defense Department the
billion in long bills—used as tax
better
of
the
argument, figure
something of a surprise to some
certificates — will
total U. S. and military aid de¬ anticipation
150,000,000 people who have been
fense expenditures
(exclusive of raise a sum of money about equiv¬
told for months they must have
.

.i

current quarter may run

between

$4 and $5 billion.- By spring, how¬
ever,

Approve Proposal to
Increase Morgan Stoclc
'

At

receipts for the third quarter

should

exceed

stantially

to

sub¬

is

raising

cash

balance

Treasury

its

keep

high against the ever-present pos¬
sibility

of

emergency.

war

a

providing

is

Second, it

matur¬

a

ity which will be paid off during
next March's tax payment timeperhaps next June's also—thereby

relieving the money stringency or
offsetting it,

the

as

case may

a

special

stockholders

of

meeting
J.

P.

the

of

Morgan

&

Co.

than $3 billion.

more

the

Thus
money

by

revenues

be.

Incorporated, held Oct. 17, the
stockholders
approved the pro¬
posal to increase the authorized
capital stock from 200,000 shares
of $100 par value to 250,000 shares
of the same par value.
At the regular meeting of the
Board of Directors of J. P. Morgan
&

Co.

the

held

Incorporated,
the

after

today

stockholders'

directors

voted

dividend payable

a

meeting,
25% stock

Oct. 25 to stock¬

holders of record Oct. 18.
Look
sures

business

upon

has

Congress
has

been

OPS

renewed

for

as

soon

home.

gone

for

waiting

■■

pres¬
as

OPS

Congres¬

Joins Shaver & Cook
(Special to The Financial Chronicle)

ST. ~PETERSBURG,
Fla.—Roy
sional
action
on
the
"Capehart
an
additional $5 billion for "de¬ alent to the Treasury's cash deficit
amendment" before issuing a D. Neal, Jr. has joined the staff of
controls, "wage controls,"
fense-related" such as atomic en¬ (as distinguished from legal def¬
and $10 billion additional of taxes
batch of price regulations.
This Shaver and Cook, Florida Theatre
icit) for the current fiscal year.
to counteract the inflation a huge ergy, stockpiling, defense housing,
"'
wait has also provided an excuse Building.
Best estimates available at pres¬
etc.) at not less than $44 billion.
production of war materials pre¬
for withholding prospective regu¬
ent
are
that total. expenditures
So looking at it from the rate
sumably was occasioning.
lations that
might get OPS in
will run around $70 billion "for the
For
the money is going out, defense
trouble with Congress.
:But with'
However, one of Mr. Wilson's
fiscal year,
versus
$68.4 billion
greatest worries is only hinted in production, volume-wise, appears last estimated over three months Congress going home they will be
Large Appreciation Potential
to be doing pretty well.
the
"Three
Keys to Strength."
coming along.

price

,

ago

■

by the Budget Bureau.

WE

As¬

*
*
*
disposition of the mil¬
suming that before June 30, an
The slants of Wilson and the
when circumstances seem
additional $3 billion of revenues
propitious, to hold up mass pro¬ Budget Bureau, of course, are di¬ will be
brought into Treasury by
duction in order to shove in bet¬ verse. Mr. Wilson's job is to get

That is the

itary,

ter

designs.
happening, it is said, is

What is

large-scale production
is available of a weapon critically

that where

needed

by the military, then the

figuratively, grabs the
■weapon off the assembly line, and
after the most perfunctory test¬

military

ing,

swishes it off to the battle

line

or

On

into the training field.
other

the

hand,

where

the

all the
he

production going as fast as
He is not bound by a dol¬

can.

lar

how
grandiose.
The Budget Bureau,
on
the other hand, is concerned
with trying to translate the most
ambitious
plans into realizable
possibilities, and, in turn, with
translating these possibilities back
estimate,

into dollar
a

matter

no

figures.

'

^

x;

a

more

of $6 billion of expenditures

gap

over

revenues.

Of this
would

be

•

-

I

tion
new

is

not

more

or

less

academic

dis¬

provided by the

The

money

purpose.

to

a

Treasury

this

is

fall

As against

for

an

of

modest start: The proposal

subsidize

RIVERSIDE CEMENT CO.

expenditures

medical

education,

CLASS B
1

A

in

leading

(common) STOCK
of cement

producer

fast-growing

Southern

California.

killed

largely by Senator Robert

Taft.

The

proposal to extend

unemployment insurance coverage

Analysis of this Company
a

and

review of the Cement Indus¬

try available

on

request.

excess

raising
a

dual

actual def¬

to Federal

Selling under

employees.

(This column is intended to re¬
flect the "behind the scene" inter¬
pretation from the nation's Capital
and may or may

not coincide with
the "Chronicle's" own views.)

they have worked in larly in the larger aircraft of the
designs, modifications, and kind the flyboys talk about will

They

equipment.

achieve

this girdle
Stalin

the

globe

if he

and

get

don't watch out.

$14.00

LERNER & CO.
Investment

10 Post Office
Tel.

Securities

:i

Square, Boston 9, Mass.

HUbbard

2-1990

change in the shape of the widget
the addition of a better firing

and/or

mechanism.

In

tentialities.

or

this

way

to

been

able

Bob

Lovett's

the military have
get around one of
cardinal

procure¬

wonderful

better to

This

bearing
cision

size

of

machines,

the




ii

FIRM TRADING MARKETS

FOREIGN

Kingwood Oil

SECURITIES

riARL MARKS & ro. INC.

mm

Standard Cable

TexasEr.gmeering & Mfg.

pack them with new po¬
FOREIGN SECURITIES SPECIALISTS

may

upon
to

have

tremendous

the forthcoming de¬

increase

the

a

Air

the

Force

ultimate

to

which is that
once mass production is started, it thing around 140 groups or wines,
shall go on continuously.
If they from the present objective of 95.
principles,

Allied Electric Products

Joe

persnickety of testing, by never other words, the nearer we get
accepting delivery without sev¬ toward the Buck Rogers era, the
eral new tests. Or they send the air boys are delaying output of
new
weapon to the shop for a their newest
and most horrible

ment

after

billions

and

Federal

SUGGEST

until

hold-up of production by the most

In

billions

add

permanent

A.

critically needed
and is of a comparatively new de¬ pute,
however, is the fact that icit for the first quarter of $2,615
sign, then the military find ways where production is failing most
and means of holding up produc¬ noticeably is in aircraft, particu¬ ISiifeifiISS
weapon

this

quiet little New Deals

t

■

potent facets of

to

to

deficit, $4 billion in cash

of receipts over payments for trust
funds.

this
One of the

tax

bill, receipts prob¬
ably will run in the neighborhood
of $64 billion.
This would leave
new

Add

some¬

50 BROAD STREET...NEW YORK

4, N. Y.

TEL. HANOVER 2-0050... TELETYPE: NY 1-971

<

?

i

Hill, Thompson & Co., Inc.
Trading Department

70 WALL STREET, N. Y. S
Tel. WHitehall 4-4540