Full text of Commercial and Financial Chronicle : October 28, 1954, Vol. 180, No. 5372

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BUSINESS

ADMINISTRATION

LIBRARY

0CT 29 1954

ONiVcKa'n'V
OF MICHIGAN

AMERICA^ BANKERS ASSOCIATION CONVENTION ISSUE

M1954

OCT

STKATI0N

Volume 180

Number 5372

EDITORIAL

Xi

-i'C;;,

j

v '

r

'

-

.*

.•»

.achievements

have

By HON. GEORGE M. HUMPHREY*
""

:

by
Vital current problems have been
largely ignored in the oratory from the hustings
while voters have been regaled with accusations
about the personal life or behavior of candidates
or of their families. Old files have been
faithfully
gnawed^ and the politically dead (one must be¬
lieve and hope) controversies or prejudices in¬
voked day after day ad nauseam. Even the "big
guns" of each of the parties have usually signally
failed to come to grips with issues which should
he decided by the voters next week, but have for
the most part contented themselves with "perspnal appearances" and at least half specious

;

can

complained of apathy is, as a con¬
the most natural, not to say inevitable,

*

imaginable, and whichever party gains an
advantage by this indifference of the voter, the
public must lose in the long run. Of course, some
as

this has

to be almost "normal" for

tions at the mid-term of

to be

come

a

would
as

come

Congressional elec¬

working

everyone

the

matter of

in this administration.

planning in

every

to

way

looking for work

United States and 99% of nation's banking resources.
The American Bankers
nual
N.

{'

during

Convention

in

Association held its 80th An¬

Convention

Hall

at

Atlantic

City,

J., from Oct. 17 through Oct. 20, and, before adjourn'.-My..,

r

,

We

address

Convention

18

Oct.

19,

year

day

when

every

on

52

page

Fred

F.

Florence

National Bank of

Chicago,

as

President of the Associa¬

tion to succeed Everett D. Reese, President of the Park

Secretary

Continued

1954.

SECURITIES NOW IN REGISTRATION

Underwriters,

—

dealers

and

Snerman Drawdy

ment, elected Homer J. Livingston, President of the First

Humphrey before the 80th Annual
of American Bankers Association, Atlantic City, N. J.,
by

J. Livingston

Homer

We have shaped

job.

a

to

concern

working and

are

Continued
•An

this

Unemployment is

greatest

reach the

find

can

country and in the

page

17,021 banks and

98% of all banks in the

over

than in any other year in the nation's
a

particularly unfortunate at
on

branches, comprising

upheaval/

peacetime history.

George M. Humphrey

man

Continued

frey; Gwilym A. Price, and H. Earl Cook given herein.
Association membership now comprises

Industrial

people
-

to the conclusion that such

The state of affairs in this

Benjamin Strong;

John J. McCloy;

The number of unemployed is cur¬
rently decreasing. We have had more

President, but it seems

these do not pay.

world renders all this

Humphrey;

George Champion; Everett D. Reese; John L. McCaf¬

this year is already
brighter both industrially? and
commercially.

us

agers

M.

even

upon

tactics

reelected

fourth quarter of

that both parties have out-Heroded Herod
this occasion. One may well wish, though
hardly hope, that the outcome of the voting next
week would be such that all the political man¬

to

was

activity and total employment have held remarkably well
throughout recent
months. The

r

common

so

Republic National Bank of Dallas, Texas becomes

Georgia Railroad Bank & Trust Company,

welcome the fact that this nation

economic

^/

result

as

Treasurer. Addresses of Secretary of the Treasury George :

our people have successfully
changed from making things for kill¬
ing to making things for living. This
has involved temporary hardships in
some individual cases but this great
shift is being made without a greaU

.

Ohio,

F. Florence, President of

Vice-President, and Sherman Drawdy, President of the '

Hundreds of thousands of

,

as

Association's President; Fred
the

First Nu-

Chicago succeeds Everett D. Reese, Presi¬

dent of the Park National Bank of Newark,

-

making the shift from high to lower government
spending without more strain on the economy.'

The much

such situation

j

tional Bank of

is

claims.

investors

in

on

page

44

cor¬

securities are afforded a complete picture of issues now registered with the SEC
and potential undertakings in our "Securities in Registration" Section, starting on page 53.
porate

DEALERS

State and

m

Established

U. S. Government,
-

Stale and

Municipal

4

U. S. Government

Municipal,

New

AD Corporate & Foreign
^

EXCHANGE
*

MABON

*&

CO.

New

department

30 BROAD

ST., N.Y

w

THE NATIONAL CITY BANK

Broadway, N. Y. 6

Bell

System

Miami

Bond Dept. Teletype: NY 1-708

99

WALL

STREET

to
NEW YORK

Our Customers

5, N. Y.

Raw —Refined

—

Members N. Y. Stock

;

Exports—Imports—Futurea
50 BROADWAY, N. Y.




Banks

Brokers

and

BRIDGEPORT

PERTH AMBOY

Orders

Executed

Canadian Exchanges At

•

Detroit

Beach

-

Geneva,

•

•

•

.

Pittsburgh

Coral

Gables

Beverly Hills, Cal,
Switzerland

i

„

NEW

YORK

YORK

OP THI CITY

Holland

CANADIAN

Scranton

STOCK

NORTH

Spring

Brook Water Co.
COMMON
Analysis upon request

-

,

*

*

EXCHANGE

Pomcoox Securities
Grpokatiozi
40 Exchange Place,

New York S, N.Y*

IRA HAUPT & CO.
York Stock Exchange
Principal Exchanges

Members New
and other

111

Broadway,

WOrth 4-6000
1

OF NEW YORK

"

BONDS & STOCKS

Goodbody & Co.
NEW

NATIONAL BANK

All

DIRECT" WiRES TO MONTREAL AND TORONTO

115 BROADWAY

CHASE

THE

Regular Rates

Teletype NY 1-2270
.

On

DEPARTMENT

CANADIAN

MEMBERS

DIgby 4-2727

Bond Department

N. Y.

CANADIAN

Exchange

American Stock Exchange

Exchange

Maintained

Dealers,

SECURITIES
T.L.WATSON&CO.

Liquid

Markets

Active

To

Commission

SUGAR

Cotton

Amsterdam,

Net

122 Years of Service

Trade

of

N. Y. Cotton Exchange Bldg.

Hollywood, Fla.

********

LAMB0RN & CO., Inc.

Inc.

Exchange,

Orleans

Chicago

OF NEW YORK

RE 2-2820

Teletype NY 1-2152

Exchange

Cotton

Board

NEW YORK 4,

»

Members N. Y. and Amer. Stock Exchs. ±

115

Exchange

and other exchanges

^

Sixty Years of Brokerage Service
bond

York

Chicago

Bonds

Exchange

Stock

Commodity

^

Bonds

Preferred and Common Stocks

Stock

York

American

State and Revenue Bonds

CHEMICAL
BANK

—

Municipal

Members

Complete Brokerage Service

H^Anover 2-3700

1856

H. Hentz & Co.

CALL

ONE

ON

£

^

CORN

MARKETS

New

Securities
telephone:

ALL
*

t

*

Views future optimistically.

All Americans

•»

Oct 20. Homer J. Livingston, President of the

Secretary of the Treasury

Treasury Secretary, in calling attention to the shift from
a war to a peacetime economy without serious economic
depression, says record shows that most dangerous thing
is to permit erection of a great collapsible structure of
speculative credit. Stresses job creation through ex¬
panding business, and defends the "incentive" tax policy.
Says Administration is meeting responsibility to relieve
human suffering and destitution, and outlines objective
of converting short-term into long-term national debt.

neither party.

sequence,

Copy

Meeting held in Atlantic City, N. J., from Oct. 17 through

,

•"'*

/ ;

chosen

been

a

Annual Convention

with earnest convictions and established records

solid

Cents

ABA Holds 80th

-•

One of the most. uninspired and uninspiring .«*general election camngigii*4rr ourhistory is now
about to mini tTTTTjiTjI
wTiTTTii^ candidatesof

Price 40

N. Y., Thursday, October 28, 1954

From War to Peace

We See It

As

-

New York 7,

LA SALLE ST.

CHICAGO

Teletype NY 1-202-3

WHItehaU 4o8161

Boston

,

N. Y. 6

Teletype NY 1-2708

Telephone:

Enterprise 1820

■

-

2

77>> Commercial and Financial Chronicle

VTbursday, October 28, 1954

(1702)

The

This
Forum

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

A continuous forum in which, each
in the investment

and

;

.

for favoring

participate and give their reasons

.

Their

Louisiana Securities

intended to be, nor
securities discussed.) .

(The articles contained in this forum are not

they to be regarded, as an offer to sell the

are

Alabama &

Selections

particular security.

a

Yale

Trust Companies

Week's

Participants and

Towne

&

Company

Manufacturing

Glenelg P. Caterer,

—

Bought—Sold—Quoted

Vice-President, Lionel D. Edie

of New York
Yale

Comparison

&

Yale

request

on

of

fields

Associate

Teletype NY 1-40

WOrth 4-2300
OFFICE:

BOSTON

Direct

OFFICE:

•

Dallas,

Chicago, Cleveland,

Boston,

Portland,

s'

r

hardware

ac-

count

Me.

for

33%

Exports from
domestic

7

to

ment

Members

York

New

Exchange

-

BROADWAY, NEW YORK S
TEL.

of

electric, gaso¬
line, diesel and propane powered

Trading Markets

Alabama-Tennessee Natural

Company

Scott, Horner &
Mason, Inc.
Lynchburg, Va.

but

for

LD

Yale

Towne

&

NORTH and SOUTH

CAROLINA

through

Euro¬

exports

pean

ing,

through Euro¬
In 1953, both the

division,
licensees.

or

of

powered

European
industries, a profitable and stead¬
ily growing business is expected.
Earnings of the lock and hard¬

IDS

ware

division

in

factory

F. W.

RICHMOND, VIRGINIA

Teletype: RH 83 & 84

Telephone 3-9137

at the

the

of

Problems

CRAIGIE&CO.

have been

unsatis¬

postwar

period.

high cost operations

each
and

of

Although

1946

far-

some

5.6%

1

♦Six

accruals.

(b)

Includes

(c)

Includes

were

Dividends

$1.00

-

The products

sales

stock.

the

of

nerable

of busi¬
is particu¬

This

looxc

allowing

However,

moicaies

giowth

a

which

should

cause

of

young

manpower

'

declining

because

still

presents

of

savings in

duction

rising

South Texas Oil

for

manpower

The

Uranium Pete (Upetco)

outlook

Trade with

us

and

Repair

carry

a

WELLINGTON HUNTER

ASSOCIATES
15 Exchange

PI., Jersey City 2, N. J.

5-6005

should

continue

increase

this

Uranium & Oil Stocks

Capitol Uranium
Kutz Canon Gas & Oil
•

J. B. Henri Co.
INVESTMENT BROKERS
614

United

DENVER

in

size

the

CHerry 4-3462

the

population.
Volume cur¬
rently runs between $10 million
and $12 million.
Based

potentialities of $110

on

and

an

in

future good

some

overall pretax profit

stock.

$2.50

760

1.21

1.00

margin, of

can

10%,

be estimated.

52%

a

tax

rate

Dividends

the

of

Allowing

net

earnings

$5,300,000, equivalent to

annually

over

earnings

net

past

the

at

rate

have .been
three

of

paid

N. Q. B.
OVER-THE-COUNTER

INDUSTRIAL STOCK INDEX
14-Year Performance of

35 Industrial Stocks

and

years,

FOLDER

payouts

are

likely

ON

.

REQUEST

when

depre-

earnings, rise.

».

COLORADO "

truck

1.00

income

2,

Tele.:

Tel. DN-343

National

Building

with

of

2.21

other

States

mar¬

trend

1,364

share

WOrth 2-4578-0

gin, have been rising steadily and

about $8.50 a share on the capital

*'•'

Teletype J Cy 698

•

sales,

parts

better profit

2.50

'

tax

German

4.61(c)

excess

Y.

attrac¬

more

British

4.77(a)

years'

N.

save

for

2,895

five

and

equip¬

2,941

on

-

Elaterite Basin Uranium

and pro¬

handling

appears

the

subsidiaries.
which

handling
opportunities

would be

credit

.

& Gas

Wyoming Gulf Sulphur

years,

material

costs.

sales

tive

of

2.50

for

>

DEALERS

&

Bank

six

or

large

material

ment

be¬

poal

in this country

five

next

and

pattern

2.50

a

BROKERS

for

stimulated

be

the

the

over

year

,

$0.48

Trading Markets for

such periods, tne longer term out-

4.61

share

Broadway,N.Y.6 COrtlandt 7*5680

larly truex)f the material handling

2,824

a

Branches
Bankers

periods

recession.

ness

are

company

during

such
vul¬

3.5

$0.57

or

goods,
as

for

operations of't»erman subsidiary.
$303,143,

of Yale & Towne

essentially durable
mostly capital goods, and
are

6.8

.?)'-■

1897

Tokyo—70
Investment

earnings are believed to be show¬
ing considerable improvement.

larger
or

111

&

ent

taxes

J

Brokers

Direct N. Y. Phones:

1.50

"

■Established

Office

Home

HEnderson

shutdowns, the pres¬
rates of orders, shipments and

1.00

4.8

J

summer va¬

5.30

i

.«

because of

poor

2.49

6.3

earnings of German subsidiary.
Plus 5%

volume.

2,707

8.8

y Yamaichi

stimulate

to

1,269

[

,

write

result of

a

$11,000,000 before Federal income

7.9

45,028

"

as

1.60

3.5

$353,680.
J

In addi¬
continua¬

1.00(d)

2,127

*"

(d)

1953

months.

(a) Includes

the

as

5.85

2,845
„

or

Securities Co., Ltd.

sales
While third quarter sales
and

million sales

$2.12

weil

as

incurred

products

the

-

of

4.17,

7.9

93,127

Exchange

begin¬

—Per Share Common—

$1,030

5.8

65,153

—l.

year

Earned

Earnings

•

56,520

*1954-

of each

1

Net

65,191

ciation




Feb.

(000)

51,986

Tele. NY. 1-3222

payable

notes

Aug.

Profit Margin

109,626 (b)

,

of

year-end amounted to $49,740,426

89,009

Phone: HA 2-9766

May 1 and Nov. 1 of
beginning May 1, 1955
$250,000 on the second $10,-

Pre-Tax

$39,997

Dollar Bonds

4, N. Y.

notes

Total current assets at the

single-line

new

many

German

25 Broad St., New York

of

ning Feb. 1, 1956.

into the hardware busi¬

62,161

Stock

Feb. 1,

on

the entry

(000)

York

$10,000,000

and

Sales

New

on

year

000,000

Net

Members

first

payable

sprawling factory at Stam¬

producers.

QjxpAnheirwil &.

the

on

ford, Conn., were compounded by

ness

VALIDATED

through

witn installments of $250,000

1 »rl6

Call

cation plant

enlarged

1, 1967 and $10,000,000

with knowledge

Japanese potential.

addi¬

1954,

expenses

vigorous efforts to introduce new

of unsecured promis¬
sory notes to insurance companies,
of
which
$8,500,000 bear 2a/4%
interest rate, $1,500,000 bear 3Yi%
and
$10,000,000 bear 4%.
The
notes mature $10,000,000 on May

erated modernization of

for

expenses

expenses

$20,000,000

Yale indus¬

of

1954

those

investors with vision—

investors

to¬

in connection
with reorganization
of domestic
hardware and powdered metal op¬
erations
and
substantial
selling

consisted of 628,586 shares of

In view of the accel¬

trial trucks.

of

division.

subsidiaries,
having completed the neces¬
plant expansions and tool¬
started to make their own

versions

absorbed

tion

metals

1951

from

13%

have unusual appeal

may
to

sales,

of

half

starting-up expenses.
tion, there has been a

Capitalization at the end of 1953
capi¬
tal stock, ahead of which were

British

and

in

and

for the first

extraordinary

were

products busi¬
an acquisi¬
the operation
by a second acquisition in 1953.
Still a beginning industry, pow¬
dered metallurgy possesses large
potentialities for growth. The fa¬
cilities of one of the plants is be¬
ing doubled.
ness

tion

of

margins,

moving equipment from Stamford
to the two new Southern plants

feels

powdered

the

and

corresponding period of 1953.

tional

Yale & Towne first entered the

from the American material han¬

sary

VIRGINIA—'WEST VIRGINIA

the

served

markets

pean

after

Since 1932 Specialists in

for

1953

1946

profit

During the first half

position to make profits.

expansion of the industrial truck
business in Europe.
Until 1953,

dling
33

held

since

and

down

were

the

completed, the manage¬
sure of its competitive

once

ment

handling 100,-

promise is

German

L

$22

pound loads. In 1953 about
90,000 units of material handling
equipment were shipped.
Great

Dan River Mills

Bell System

from

000

Commonwealth Natural Gas

MUNICIPAL E

price

in

and

record

Sales

is

company

branch offices

our

securities

Total capital
1947 through

1952.
from

gether . with .the per share net
earnings and dividends is shown
in the accompanying table:

of these have continued into 1954,

etc.

hand hoists to about $65,000

for units capable of

Gas Company

62

hoists,

trucks,

in

ranging
some

of

line

industrial

American Furniture Company

LY

in

powered trucks, has
important factor here
company
now
has a

an

complete

Tele.

introduction

gas

The

Aoo.

The

electric lift truck

since

and

The

probably the
only- manufacturer
which now
produces and distributes the full
gamut of locks from inexpensive
padlocks to the high-style, high
quality, expensive builders' fin¬
ishing hardware. The transition
period has involved large moving
and starting-up expenses.' Some

the

The company is the larg¬

profits.

1949

of

bulk

the

est factor in the

become

2-7815

REctor

for

accounted

to

japanese

expend¬

aggregated

earnings

before.v

than

efficient

Direct wires

$24,006,000. de¬
amortization
charges of $1,633,578 were made
in 1953 and of $943,706 in 1952.

is much smaller but more

eration

handling equip¬

division in recent years has

field

Exchange

Stock

American
120

Stock

1953

the

$4,785,000

preciation

other

and

of

in
expenditures

remaining Stamford op¬

The

lic.

<

.

materials

The

10%" to

about

contribute

1953),

total sales.

Mobile, Ala.

-

de¬

net

and

from

reduced

itures

including

-

nignBatches

padlocks,

$35,003,157

$2,045,000

auxiliary locks which are sold in
retail outlets to the general pub¬

since

(German

domestic,

with

hardware

and

locks

NY 1-1557

Capital expenditures in 19o4 are

staple

of

lines

Yale

produces

Canadian
and German subsidiaries, opera¬
tions of which are consolidated
British,

The

abroad.

J)ONNELL & CO.

plants

operates

also

company

Since 1917,

Glenelg P. Caterer

the

but

8%,

or

of

much

cylindrical

tubular and

known

plants

leav-

preciated value at $23,191,309.

"key-in-the-knob" locks for lowcost mass housing as well as for
the commercial, institutional and
higher priced home construction
markets.
The Lenoir City plant

ing

Rights & Scrip

value

new-

the

as

$l3,l4*z,19y

were

working capital of $36,Property, y plant
and
equipment was carried at a cost

designed
low unit
cost
production.
The
Gallatin
plant manufactures builders' locks

2%.

York 6, N. Y.

Rector St., New

New Orleans, La. - Birmingham, Ala.

ing net
598,227.

single
story
structure
for volume, single line,

powdered

come

Specialists in

iiaoiiities

plants were
leased, one in Gallatin, Tenn., and
the other in Lenoir City, Tenn.
Each one of these two plants is a
two

1953,

Exchange

Stock

American

HAnover 2-0700

Current

Exchange

Stock

York

New

'

locks.

In

19

$4,536,692 was cash and
was
inventories
at

lower of cost or market.

was

manufactur¬

Hartford, Houston, Philadelphia,
Providence,

e

metals

Wires to

gage

Steiner, Rouse & Co.

$30,713,297 ;

This

duce

and

i 1 d

u

and

Building

Liberty
Private

b

of which

were

Stamford.

from

City.

York

New

Members

enlarged in 1953 to pro¬
automotive, cabinet and lug¬

plant

of

about

Street

State

84

PHILADELPHIA
Lincoln

York 5

Specialties ^Division

the

transferred

sales.

Locks

Exchange

120 Broadway, New

most

Inc.,

Members

first step, a new

a

Co.,

(Page 2)

plant was erected in Salem, Va.,
in 1948 to which the activities of

for

65%

total

Member

Stock

American

about

1920

&

production
effected at

ac¬

counts

Corporation
Established

which

As

products.

main

handling

is
material
equipment

important

New York Hanseatic

be

not

to mod¬
operations

competitive costs and could not be
extended to a satisfactory list of

.

Manufacturing

Towne

engages in three
manufacture.
The

Company
Available

-'""I

V*.

V*'/,'

.

could

there

Manufacturing Company

Towne

&

York City

Inc., New

Company,

Quarterly

undertaken,

e^

w e r

Stamford

the

ernize

Vice-President, Lionel D. Edie &

90th Consecutive

improvements

reaching

GLENELG P. CATERER

'*

representing 1952
\,,i

common

net

-

stock

Yale
is

,&

listed

Towne
on

the

1

National Quotation Bureau
Incorporated

New

York

Stock

closed last night

Exchange

at 483,4!

and

46 Front Street

-

New York 4, N. Y.

Number 5372

[Volume 180

...

The Commercial and Financial Chronicle

"The New Direction"

INDEX

By HENRY C. ALEXANDER*
President, J. P. Morgan

Commercial Bankers, New York

'The

City

Referring to the switch in Federal administration from
trolled

to

an

oldjsaying Jthat it is judgment,

light than to
thgC darkness. During the

curse

few
f

Direction"—Henry

as

light

one

-

minutes

I

have

-

f

to

y

heed this wise
1 d -admoni-

o

*

wtion in touch-

;ing-upon

the

that

obsoletes

6

peddling.

Investors

9

Speculators—Roger W. Babson

vs.

r

of

e

our

count r.y'«

The results

.

fmanees.: The

t. 7 —Alfred P.:
-

.

,

-.w

-v

;

11

-7

13

Sloan, Jr

...

Temco

..

.

;

^

14

-

Giant Portland Cement

'

i-

15

Bund

it

-

!
*

have been heartonf*-*

i

^

X"

ffe y I ABA- Addresses arid Convention News

ft"**-***" '*"*** W'

to > be -expected^- has t

uiGeorge:M„. rnained at-a-high level.-.Soma^sOft
:
'Humph rey,; spots here and there, yes, and an V
Secretary of increase; in unemployment—small ^

vV-*'V* •'*

\

■

C-

V.-.

\ *

'

•.

i

••

t

From W^r tO',Peace Economy. Without Upset
Humphrey.,t.... f.;IT.

f?

great; armament.,build-up, as was *

^ec r e ^ a r y- surely ?

;

'

*

.

••••/■

'

;»

j

r

; >

«•

.-.

Treasury)

in;

relation-to

.

Henry C. Alexander
To

the

paint in

to.

PreemPt

this

f

field.

few broad strokes

a

foir^nearly. 15>^years,
had the benefit of

economy

usual and extraordinarily powerful
stimulants at
other.

work

after

one

an-

They brought great activity

our

World

economy.

War

Cinerama. Productions

•

'22
;»

began the period and this
lowed

hard

by

on

postwar boom

an

was

fol-

enormous

bottomed

pent-

on

demand for goods and services

up

of

almost every variety. Increased
production brought this into balance

and

little beyond in 1949. A

a

small recession

along

underway, but
Korea and the vast

came

was

highly necessary program of
rearmament, that followed in its

and

wake.

'

With
and

these

great forces

boom and

armament build-uo

well

—pretty

behind

us

more

*

24

us>

whole
the

ncan

the sights we

that

the

results

here

-

i.

-

will hold to
business

and

>

ABA

a

year ago,

it seemed certain

Hopes
More

of

More

incentive

the

system

highly

work. These measures,
sential and

to

go

es-

highly necessary, repturn in direction, rep-

resented

a

resented

what

I

would

"The

call

New Direction."

This
*

An

fore

Group,

New

honor

of

Humphrey,

York
the

ores

.

'

'

46

v

20

of

the

As We

It

See

and

Bank

■" :

.

.

specialized in

36

SULPHUR
BURTON

Cover

:

FILM

GUILD

20

Stocks—

BISHOP

60
HYCON

5

Coming Events in the Investment Field..

'•-.fit)
We

Dealer-Broker Investment

8

Recommendations

Ahead of the News—Carlisle Bargeron—_

From Washington

"5

••

■'

markets

trading

over-the-counter

250

than

in more
securities

Singer, Bean

16

Indications of Current Business Activity

51

Mutual

48

Funds

&

NSTA Notes

—

-

MACKIE, Inc.

HA 2-0270

and

Money

•

maintain

38

Einzig—"Will the British Boom Continue?"

6

40

Exchange PL, N. Y.

Teletype NY 1-1825 & NY 1-1820

_

Observations—A.

Wilfred

Our

Reporter

Governments.

Our

hope that more and more money
at cheaper and cheaper rates will

Reporter's

Public

forward against all odds,
There is a limit to what money
can
do. The money climate has
been made favorable for agriculcarry

17

News About Banks and Bankers

us

on

5

May

20

42

^nntinvP(f

071

^

TtaHP

53

GUILD FILMS CO.,

/

The

Salesman's
,f.

.

LITHIUM CORP.

16

and You—By Wallace Streete

2

Security I Like Best

Washington

and

MEXICAN GULF

5

You

,—

1

Weekly

and

COMMERCIAL

FINANCIAL CHRONICLE

Park

DANA COMPANY, Publishers

Place,

REctor

New

2-9570

HERBERT D. SEIBERT,
WILLIAM

Members New York Stock Exchange

DANA

York
to

7,

ST., NEW YORK 4, N. Y.

as

President

Thursday October 28, 1954

Eng¬

MINUTE MAID CORP.

*Prospectus

available

on

request

second-class matter Febru¬

•

Subscription

Possessions,

Pan-American

Dinhinion

of

W V. FRANKEL & CO.

Rates

In United States, U.
Territories and Members

Subscriptions

Editor & Publisher

SEIBERT,

E. C.,

Smith.

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

N. Y.

9576

London,

25,

Other
.

c/o Edwards &

SULPHUR

60

Copyright 1954 by William B. Dana
Company
ary

\

Gardens,

Drapers'

land,

Reentered

Reg. T7. S. Patent Office

•

*

49

Corner

£

19

INC.*

GULF SULPHUR CORP.

57

Offerings.

Security

Prospective
Securities

PREFERRED STOCKS

Spencer Trask &. Co.

CEMENT

47

Securities Now in Registration

ture,

,

GIANT PORTLAND

59

Securities

Utility

Report.,

Railroad Securities

25

BROAD

s

MANUFACTURING

Bookshelf

Business Man's

-V

AMERICAN

PAN

HAZEL

WILLIAM B.

25

EXPRESS

'

(Editorial)

Insurance

Published Twice

For many years we

AIR

Regular Features
-

GULF

INTERNATIONAL

Economic Recovery Aboard 21

'

^UTlLlUlliHl UIl fJOye la

.

York

MEXICAN

,

The

have

45

Peacetime Year": Eisenhower___:

"1954 Most Prosperous

v;l'-

Treasury.

Secretary

be-

Invest-

INew

1-576

Uniform Commercial Code.., 45

The State of Trade and Industry

the

NY

WHitehall 3-2900

44

Perhaps, but—(Boxed)__

dangers of an overabundance of

Alexander
of

T eletype

Telephone

44

State Ass'n Section."

Harlow H. Curtice Reports Strong

City, Oct. 21, 1954,
Honorable George M.

Mr.

Dinner

Association,

Dept."

SULPHUR

The Market

by

Annual

Bankers

my

Trading

...,44

Adopted at,Convention

commerce and industry. I
approve of what has been done;
jn fact, I advocated it. But at the
game
time, I Warn against the
'

in

is,

Direction

address

the

ment

in

New

Sub-Committee Disapproves

Somewhat Obvious,

These are our strengths.^Let us
fixing and wage fixing. We began rp*y
"P,®?1 them. And here, I
to cut expenditures. We reduced should
like to say a world of
taxes. As a nation, we set about caution about money matters,
generally to let the price system
Let us not rely upon the false
and

Unlisted

•

tion
W^1

False

John F. Reilly, Manager

i.

Backgrounds of New Top ABA Officials

v

and then find new ones, our busi- nessmen will plan more produc- •
tion and-distribution, our popula¬

ning
and
control
toward
the
higher and firmer ground of free
and dynamic enterprise. We unloosed
the economy
from price

i

...

Divisions and

Texts of Resolutions

will grow and our people
that we would subside into a spell
buy and use and consume
of at least relative economic calm more
Products of our soil,
•—even recession—unless we could
9ur m*nes' and our factories. This
successfully unloose- forces vital
s^dl the New World. Essential
and
virile for further economic to such progress* however, is the
growth
and
expansion,. Fortu- light of confidence and assurance
nately, our government took the to our business and our people
turn, a turn of national policy, a that free and profitable enterprise
turn away from the soft roads of
Is to be respected and ,not remore and more government planjected.
tion

;

-

and ' discovery
indomitable.
Our

more

*•»

i

Committee Praises National Monetary Policy

New Heads of ABA

will go forward with
designing and constructing, our
scientists will find new methods,,
our
farmers
will produce
more

miners/dig

New ABA President...

,

Economic Policy

engineers

our

";77.

Acceptance Address of Homer J. Livington,

have

invention
remains

*»

*

*

-

employment should be darkened
by serious misgivings. We can be
confident that the spirit of enter-

prise,

Trinity Place, New York 6

32

American Bankers Association Holds 80th Annual Convention.Cover

about

that

we
of

Gearhart & Otis, Inc.

Agriculture—John L. McCaffrey.... 34

7

have set, I don't see

future

f

we

enthusiastic

be

over-all

Bought—Sold^-Quoted

/

74

.

consider

we

had bej think the nation as a
which

readjustment
fore

crops,

war

—

Banking's Contribution to a Dynamic Economy
•—George Champion .........r....

0ver-all problem of

sjze 0f

11^ been obtained. If

.

will

7

«

Syst^ip^Past^and

Future of Mechanization in

Nevertheless, when

our

un-

hope

be short-lived,

background, I would remind
that

you

to

upon each family involved. I
that
this deplorable aspect

Sulphur

.Cover-

IWe .11 a vef-Ga in»d St£e^gth^£tfere(t D. Reese. ...... .h
,£'A New Background for Banking—John J. McCloy....

.

Gulf

V

i '<■

Common Stocks: "The BigjEhange"—Benjamin' Strong.......
-26*
total employment
would
not
Future—H. Eurl Cook .-... 28'
but, as always, large as a social ■« ^Oijr State Banking
wish', I know,- problem and ;cruel in its effect f, ";*The Atom and Electricity—Gwilym'A. Price..:..
;
30?

the

STREET, NEW YORK

Destroying Free Enterprise?

:Basic and Applied Research Needed for a-Virile Economy

[[" ,3.us^riess ^ n ^ s6me\vhat from - the, peak of th? \-

99 WALL

Telephone: WHitehall 4-6551

Are Labor Unions

Bu^ines;- activity,, while

ing;

you're
-

Obsolete Securities Dept.

Outlook for the Stock Market—James F. Hugh^s.ii.-.^-^ilft'

our

Directions

first—if it's

us

6

.distinguished : % Investment Potentials in- Atomic Energy
r'
Secretary- of the/Treasury is d^v^f^^wtonJ..|SteeM,
serving' of the highest complirftent. t ,. <
for- his part in setting this-New
Economic Stability to Prevail in 1955^Henry
you

HIDEWAY?

4

Light, Power and Progress—Brig. Gen. David Sarnoff

happeniqg in; financial- and eco-*
nomic affairs in our country in
remind

HERNANDO'S

4

Cobleigh

significant

most

the

Alexander.

C.

What's Ahead for the Bull Market?—Jacques Coe

—~

ta t

5
.

AND COMPANY

3

Try

I; the, last 20-odd years. I don't meed

to^speak

T. shall *1

Page

Economics of Pipe Line Financing—Charles J. Hodge

-^Philip Cortney

There is

^

better

free enterprise system

a

New

Low Spirits—Ira U.

con¬

a

"The New
Direction," prominent New York banker finds that the "results
have been heartening." Says it is essential to continued eco¬
nomic progress that there is assurance to our business and
our people that free and
profitable enterprise is to be respected
and not rejected. .Warns against "the false hope that more
and more money at cheaper and cheaper rates will carry us
forward against all odds." Sees brighter future abroad;
to

economy

llCHTfllSTEIH

-

Articles and News

Co. Incorporated

&

3

(1703)

S.
of

Union, $48.00 per year; In
Canada,
$51.00 per
year.

Countries,

$55.00 per year.

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J

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The Commercial and Financial Chronicle...

turned out
I

Low

Spirits

Fall review
and

of

the

of

business

making and seVing

first.

because racket money to be made
here

by tax evasion has lured
bootleggers and stills back into
furtive existence on quite a large

es¬

pecially in relation to certain oils
steels, there still are certain

and

shares
N.

the

on

Y.

Exchange

i

n

the doldrums
of

some

—

them

dis-

are

tillers. Wherethis column

as

not

is

ally

1 i

o

c

s

can

Ira

go on rec-

ord

as

report-

U. Cobleigh

lnf. a

v

ki

in

ker"

in

War
at

the

guzzling of

the

II, when

time and

to

U.

S.

During World
(especially
carried

incomes

one

hard lik-

half)

were

highs, drinking gained in
that, in 1942, 92 million
gallons of whiskey were consumed
in the U. S—and this, mind you,
new

vogue

in

so

in

which

little
whiskey was produced, due to the
a

year

effort.

war

the

very

From 1941-45 most of

distilling facilities here

were

converted to production of alcohol
for munitions.

So Jt was, that, in that period,
distillers recorded good earnings,
first

by

manufacturing

alcohol,

and
and

sppnnd hv scllim? aced whissecond by selling aged whis
key from big prewar inventories.

There

also another favorable

was

factor—taxes.
tax

In 1935 the Federal
waters
was
a

distilled

on

meek

$2.00 a gallon; in 1939 it
nudged up to $2.25; in 1941
to $3; in 1943 to $6.00 and
then,
as they say on
television, the "big
was

package" was enacted,
gallon on 11-1-51. This

economy

$10.50

a

burdensome
nuraensome
unto this
other
omer

the
ous

excise
excise

day and,

has
nas

remained
remained

than any

more

single iactor, nas Deaevinea
single factor has bedevilled

liquor trade—despite numerattempts in the Congress to

moderate

this

bite

vou

Lest

harsh

in

liquid

which,

am

a

of

tax

little

cite

revenue,
state
taxes

the overall nationwide

average, are around $1.50 a gallon.
This all
adds
up
to a tax of

working
value.
are

4,365,726 of com¬
share figures of $38.50

to per

mon

capital,

$53.12

These encouraging

of

it must be taken

years

warehouses, and the
paid on it. For

must then be

tax
cer-

tain

companies, this may mean
selling at once; and with a lot of
eight year potables coming out of

centers
toric

the

on

earning

and

how

question,

tagged

has distillers

a

problem

little worried

that
and

that is the

declining ratio of whishey drinking.
Whiskey, as recently as 1949, accounted for some
88% of all "hard likkers" imbibed

retail sales should be apparent to
the most naive. Compare this tax

load, if
sidies

you

will, with the fat sub¬

accorded

butter, wheat,
etc., and
you'll

corn,
tobacco,
swiftly see how it is that the distilling companies feel that they
have
been
especially
discriminated against by punitive taxation.
They feel that a lower tax would,
by spurring greater legal con-

sumption, actually deliver more
dough per annum to Uncle Sam;

figures,

business is

the

a

drug

doing better; and the

management

believes

that

"the

aggressive adin c o m p a n y

liquor sales,

up

stock

to

seems

bit in the last

two

weeks, and it has
good
leverage supplied

rather

a

by

the

$125 million of debt ahead of the
common.

Moreover, the stress

Schenley here is

It's slipped to below

hid/

be construed

0n

other

in

no

on

to

sense

adverse comment

as

major distillers—such

tional.

three

The

categories

our

one

conventional

crude

are:

three

unconven-

oil

pipe

of

time

and

It

space.

which includes coal, lies somewhere in the future, but the prohabilities of its development are

goes

without

saying that this progress
in transportation has had a
pronounced effect

on the
world, both
militarily and economically. And
pipe lines, which move more do-

mestic

freight than

overcoming these
of

time

played
tic

a

and

succeeded

They

space.

in

The

obstacles

same

of

the

have

petroleum

Generally speaking,
development
which

crude

oil

pipe line

is

the

oldest type of Petroleum pipe line,
This is not surprising since the

major part in the fantas-

growth

dustry.

trucking

our

industry, have also

promising. I intend to discuss only
the financing of the conventional
pipe lines, and I will start with
the Crude Oil Pipe Line,

crude

in-

pipe line has been the life

line for the refiner and the inte-

major

to

the

growth

of

any

has
an

j

.

•

woa^

among the

BigFou.r

distillers,

coverage of the alcoholic bevorage trade includes not only pro-

seem

unlikely to

into

go

serious tailspin from here,
all those current assets
per

Further,

should

there

SH

of

bottling

plants

and

market pep that made it

a

with

share.

be

Auction, bottling and distribution surgence of earnings,
of {"Stilled liquors and the own-conceivably show, once

a

demand for natural gas,
especially
for
residential
consumption
in

metropolitan
knew

re-

might

again, the
a
bouncy

but we also
needed
to

areas,

bridge

a

was

bring the forces of supply and demand together. This bridge turned
out to be a pipe line, and once

the pattern was formed, natural
lrr wines favorite eight years ago. Schenley
aad beers as well. Its best known has paid cash dividends since gas in these remote areas became
5 ?n
11i>C
i
HaJTper» 1941, and there have been four economically important to the enResen^e, Three Ferthers stock splits since 1944.

Natural Gas Pipe Lines
On

the

other

lem of company
Z

hand,

the

prob-

control, does not
'

.

,

..

i°om as large for the natural gas
pipe line as it does for the crude
line because the natural
gas pipe
^ne carrjes jts product to

a

public

The result has been that

,

and P-

Charter; and

anno ince-

?!

new

at

premium blends, one to sell

in low spirits.

known

Wines

Cresta

the

are

well

Blanca

line; and
Blatz, produced at Milwaukee, is
national

for

a

favorite

(and

except
76 day strike in 1953, a good

®

,

T

/Schenley

Dewar s Scotch

...

Laboratories,

Inc.,

a

subsidiary, distributing antibiotic
drugs,

Halsey, Stuart Group
Offers Equipments
Halsey, Stuart

try

of

rounds

out

the

list

&

Co.

Inc.

elusive.

and

the

issue

group

Oct.

on

99.019%.

■

award

won

21

on

bid

a

-

.

certificates

are

priced

is

authorization

subject
of

the

to

The
new

Corporation

the

Interstate

issue

is

to

be

standard-gauge

secured

by

railroad

equipment estimated to

cost

$3,-

675,000, consisting of 350 all-steel
placed privately by the undersigned

refrigerator
Other
group

-1"*l

•:

.

.

*'

cars.

members

are:

R.

'

—

W.

of the

offering

Pressprich

Co.; Freeman & Co.; The Illinois

Unferberg, Towbin Co.
iMs

i

■

"V

of gas

have benefited sub-

from

abundant

the

you

pipe

conclusion

re-

lines.

contrast today's

price with that of

that the

15

escape the

pipe line has

added untold value to

our

national

the great

pjpe

majority of natural gas

lines

have

been

financed

publicly.
The

growth

of the

natural

Co.; Wm. E. Pollock & Co., Inc.;
and McMaster Hutchinson & Co.

gas

pipe une industry has been tremendous.

In 1946 there

were

226,-

500 miles of natural
gas pipe lines
versus

393>900 at the end

This is
short

an

of 1953

increase of 74%

span

of

seven

in the

years

Gon_

resources.
^

^

^

For the purposes of this discus-

sion^JE should like to divide pipe
*An address

by Mr. Hodge before the
American Society of Civil Engineers, New
York City, Oct. 21, 1954.-

sidering the cost

per

mile of pipe

nne ^0 be well up in the
thousands

0f dollars, the investment
ral

gas

pipe lines
^

*

..

alone

reaches

.

COTltifllLCCi

■

in natu-

OTl

to

Commerce Commission.

American Research and Development

those

have

years ago, you cannot

on

The

particular,

which

well-head

annually Nov. 1, 1955 to 1969, inof

feeds,

states

In

Moreover, if

Oct. 22 offered $2,850,000 of Bangor & Aroostook
RR. 2%% serial equipment trust
certificates, series P, maturing

barrel manufactory, and
production of live stock and poula

nation.

stantially

npS^associates

rin

tire

serves

$12.95, to be the "Cadillac of

Whiskies."

a

Schenley

stockholders have not
always been

certificates




categories;

and

.

.

15,500 Common Shares

C. E.

cles

as" contributed

yield from 1.45% to 3%, accord¬
ing to maturity.
Issuance of the

were

four

•

New Issue

The above shares

It has often been said that

into

conventional

naufe

•

The
Not

can

lines

grated oil company. Being a life
line, it is also not surprising that
80% now, due to the impressive
the crude oil pipe line is conDistillers-Seagrams, National Dis-:: industry,-of necessity, represents a V
inroads of gin
trolled or owned by the oil corn(credit an assist tillers and Hiram.
Walker.' As
sizable investment on the part of:
here to Commander
pany or by the refiner.
Whitehead!),;-matter of fact it qould • perhaps
This, I
companiesand of indiyiduals. The believe, is
vodka and rum, all of which are
be argued that' the whole
essential, and being esequity : pipe line is no exception.
less expensive.
:
sential, we then find that most
list here has quite decently disThis
enormous
investment
In of the funds required for the con^ Well, we've probably dished out counted the adverse industrial
pipe lines has increased payrolls, struction and operation of crude
enough 0n the gloomy side to ac- factors ticked off earlier.
Further, added
greatly to the consumption oil lines have been provided by
coun^ in part at least, for the as all successful market
operators of steel
and power, and has been the oil companies and refiners,
general lack of market enthusi- know, the most favorable
buying of
asm
for
great benefit to the construeThere has, therefore, been very
distillery
shares, and opportunities are usually found in
tion industry, as you well know, little need for
many stockholders in this trade the
public financing of
right growing companies, in
More important, I
look back wistfully to the lush an
think, is the crude pipe lines. When funds have
early stage; or in mature cornfact that practically every indivi- been raised
earnings and plump quotations of panies
to construct a crude
before, or when, they've dual in
1946.
this nation has benefited
In that year, for example,
line, they have been raised under
turned the corner from a
period from the
Schenley
common
sold
at
80. 0f
pipe line.
the name of the individual oil
soggy or non-existent earnings
Let me point out one
example company or refiner and have not
of"that'e!eeant"aUiP<«iu0noi some in particular;
namely, the natural been directly related to the con¬
we
mav
well
tn en! °£
l
"ow"
so
^ J?
p
e 0 J1
much Hiram Walker and Sea- gas pipe line. It wasn't so many struction or operation of the crude
qUire m the ensuing paragraphs,
grams )
nrncneetc
«?pbenlev
hac
tn
'
uh
line- As a result of these two fac* prosp
SP?i7 y
?
In any event those intrepid ground was going begging, with
move up
again.
(17V2, recorded enouch to consider SH
r0^e
investment
mmin much of it being flared off into tors>
fhi_ vpnr
ifc. lmv „inrp iq4c \
enougn to consider bfi common the
there
® ^
waS
.
w S "ce
./* now, can rely on some defensive was atmosphere. We knew of it. banker has been minor in the fia
tremendous volume
Schenley Industries, Inc., with qualities contained in the Schennancing of crude lines. >
gross sales of $421 million in 1953 ley balance sheet.' The stock We also knew there was a large
in the U. S.

is

unjust, and loaded against distillers is rather obvious; and that
the height of this tax slows down

a

modes of
transportation; air- lines, natural gas pipe lines and
steadily reduced
planes,
high-speed
automobiles, products pipe lines. The unconjn the past two
years, beer sales trucks and
high-speed trains have ventional category, such as the
have recovered from last
year's
substantially reduced the obsta- handling of solids and chemicals,
strike-ridden

years, largest and most
always the possibility of
vertising program
slicing by the less wellhistory" can "rev"
heeled companies to convert the
Marketwise the
weighty inventory into cash.
have caught on a
another

on

tories have been

is

There's

restored

Certainly

I have been asked to
say a few
words on the economics of pipe
lines and their financing.
;

underpriced. Inven¬

as

to being convinced of the soundness
potentialities of his product, must exercise extreme
preparing venture capital financing for the public.

in

care

his-

balance sheet basis the stock
ke

banker, in addition

here

can

be

power

soon?

price

ershlp

American social and economic order. That a tax of this magnitude

ment

and profit

(1953,

per share).
"
Our
whole
problem

waJehouses but big sales

fantastic

rely upon the successful public offering of its securities. ExC plains procedure in financing
pipe lines, and concludes invest¬

10 year

earnings 1944-1953 averaging
$5.70 per share and dividends at

$1.53

proof of blended whiskey, proffered to sustain sociability, or aniour

book

figures

further buttressed by

growth in national income,
the major problem of the distillers
seems to
be a big warehouse inventory—over 700 million gallons
at the 1953 year end.
There's a
catch to this inventory deal, too.
After whiskey has been in bond
our

roughly $2.20 for each 1/5 of 90

mate conversation in

As a basis for financing natural
gas pipe lines, Mr.. Hodge
prescribes the following: (1) the company must have contracts
for an ample supply of gas;
(2) it must have a market for
such gas; (3) it must
operate under jurisdiction and rate mak¬
ing powers of Federal Power Commission, and (4) it must

8-31-54,

worked out,

the annual average of $1.70

this

of Federal

further
on

onerous

condemnation

source

I

may

most

think I

Partner, Glore, Forgan & Co.
Members. New York Stock Exchange

in respect to the

!?er there in 1954, and following
b°nd

noticeable dechne

demand for whis-

a

for

one

Financing

By CHARLES J. HODGE*

net

-

Apart from

We lack the

key that is not keeping pace with

0ut

h

Anonymous, it

G v/f:'?

/ /

bulletin for eight
for Al-

board
o

gener-

regarded

ts a
c

scale.

Stock

Economics of Pipe Line

sheet and

but last year's (1953)

—

displayed,

com¬

earnings pros¬
We'll hit the balance sheet

pects.

particular look at a major factor in this
trade
Scheiriey industries, Inc.

Even with all the wide market

SH

as

balance

a

enthusiasm recently

of

perhaps a quite undervaluated equity at around the 20
level, leads to a discussion of

Enterprise Economist

whiskies

consideration

mon,

By IRA U. COBLEIGH

A brisk

by this quite versatile

enterprise.
Our

Thursday, October 28, 1954

NOW AVAILABLE.

.

.

The NEWLING CANADIAN LETTER
A

fortnightly review of the Canadian Securities Markets

FREE COPY UPON REQUEST

MUrray Hill 2-4545

NEWLING & CO.
Members

of the Toronto Stock Exchange

21 West 44th

Street, New'York 36, N. Y.

Direct Private

Wires

to

Canada

Volume 180

Number 5372...The Commercial and
Financial Chronicle

The

Steel

\

i

Production

(1705)

Observations..

Carloadings

State of Trade

Retail

and

Price

Auto

Industry

In

on

THAT

year

.

.

the year, they were more than double those
week a year ago.
The week's decrease was
return to jobs of almost 10,000 automobile
haustion of benefit rights by others.
in

the

week

ended

Oct.

question which

9

in

the

ex¬

labor

surplus

in

pected

for

the lowest level

at

the

seasonally

as

month.

However, the September total of
casualties was 19% higher than those in the same
month last
and also larger than in
any September since pre-war 1940.
the

largest

cities

819

and

year

While

you

into

expect

can

that

market

a

a

total

years

sities

•

linished

it is

is

ease

-f

carbon

of

oil

and

goods.

country

alloy

bars

are

stronger.

and

After several
scrap

as

these

This

products

•

had

highs of

amateurs

1928;

"groundless"
;

with

.

a

may

(2)
•

fears,

car output
nudged 100,000 units on Friday of last week with Chrysler Corp.,
General Motors and Studebaker all showing strong gains, according to "Ward's Automotive Reports."
Pontiac 18% and Chevrolet 51%
the industry's 1955 model

addition, operated at
f..

a

over

up

>15%,--

an

-

„

a

roar¬




'

;

>

members

Midwest

of

Stock

the
Ex¬

'

or

COMPLETE

SUMMARY

of all Value line Recommendations

ON 613
Investors

MAJOR STOCKS

can

extra charge a

receive

now

without

timely 16-page Sum¬

of Recommendations on 613
supervised stocks, just released by
mary

The

otherwise prudent remained

Value Line

In addition
Line

Investment Survey.
the latest Value

to

recommendations

stock,

this

booklet

vital

information

ence

form:

in

1954

each

on

brings

you

handy refer¬

and

1955

earn¬

ings and dividend estimates, div¬
idend

yields. Value Line Quality

Ranks,

long-term

timates
normal

of

prices,

growth

(1958-60)

earnings,

es¬

dividends,

relative long-term
You

expectancies.

have at your

•

fingertips

will

a summary

698-page Value Line Survey.

corporations

You may

would

have

it

tremendous

a

would

soon

ing

scarcity valve (Ex., it w°s
impossible to buy utility

:\

Common

stock

buying

on

margin

not

was

current model

■

fore

any
/

this

In this way you

convenient

Sum¬

the

can take

to

year-end

steps be¬
adjust your

holdings so as to concentrate
•

j

your

investments in the strongest stocks
-for greater profit and safety in the

speculative.;

critical months ahead.

You will receive in the next 4 weeks
under this

money

quick capital

-

I;

s^

,_4

•

-

"4,.

SPECIAL

,i

VJ

the United States

Because

is

marvelous

a

always

be

bought,

for the "long pull" and

never

Chip-itis.]

(7) A

very

was

Ratings & Reports

IvAm

4?

major

the

pervised Account Report, 2 Fortnight¬
(Annual subscriptions $120.) *New

sold.

,

ly letters and 4 Weekly Supplements.
subscribers

[More

.

valuable

A

Wilfvad

on

613

Stocks.

11

"

Send

shareholder when

a

price less than the

Continued
kv

Summary
$5 to

Dept.

CF-62
'

stock at

>

will also receive,

without charge under this offer, the

THE VALUE

accrues to a

more

only.

As a bonus you

*1

'

Mav

Cn!iamki»

on

page

1 IntVI*rcitV.

52,

LINE

1

i

I

1

INVESTMENT SURVEY

through the issuance of "rights" he is. permitted to pay into his

■-#

on over 200

stocks and 14 industries. Also a Spe¬

automatically enhanced by multi¬

valuable privilege

\

OFFER*

irrespective

country,

.

r

$5

Special Introductory Offer,

cial Situation Recommendation, Su¬

company-additional funds for

Continued or^page 50

against

mary, as thousands of i^estors do.

become

already selling at 100 times earnings, at

find it profitable to check

the stocks you own or are consider¬

—through split-ups, stock dividends, etc.

level sufficient to rank it number 3, its historical

* /•

A

plying the paper share certificates which represented its ownership

•

i

that

(6) A property's value

^

r

and

Announcing

the

buy at any price [Blue Chip-itis].

of price, and put away

but predicted that this year's weekly

position, in industry output.once Ford ends.Jits

Michigan Corporation,

at 12% to buy equities stocks yielding 2%, for
gain, was "investing." Such credit use was no
different from borrowing from the commercial bank for ordinary
a

(5)

-Among truck producers, the statistical agency said^ Dodge is

operating at

of

were

well-managed

of

"leading" common stocks should

htigh of 148,645 reached during May would be shattered during
4mid-November.

Chronicle)

changes.

New Era Credo

."

were

Blue

a year ago,

Financial

Building,

Detroit

(4) Bear markets in the "New Eha" have become obsolete and

agency counted 59,672 car and truck comple¬
tions in United States plants last week against 57,424 in the prior

142,716

millions

V.

statistical

week and

First

Buhl

.

ing industry volume.
The

of

permanently extinct.

end, heralding

The

Riker has been added to the staff

are

stocks

price)..

Studebaker, in'*

36-week high level.

two-year low last week, neared

to

business purposes.

,

the previous week, pushing

output to 94,100 units.

a

Stocks

Borrowing

'

Meantime; model changeover shutdowns at Buick, OldsCadillac and Ford which held domestic car and truck out¬
a

(Special

realizing the "error" of their previous
rushed back in July-September, 1929;

they

-

Common

imagined

(3)

.[mobile,

put near

the

>

stocks, which

'

moved

McCoy &

DETROIT, Mich.—Alexander J>

susceptible to quantitative measurement—
be epitomized in this summary of the credo ruling that "New

always be

indust^'s cumulative 1955 model

production

by

an

•

Chrysler1 Corp.

with

New York Produce Exchange, which for

been

mounting pressure and higher prices,
demand has leveled off, at least temporarily.
Several steel¬
additional blast furnaces back into operation in order

said

Chronicle)

of the conclusions reached in the

makers put

"Wards"

Financial

With First of Michigan

consequent jumping-out-the-windows in 1930.

(1)

.

Is¬

scarcity of stocks, but also of exchanges^

a

Era" period*:—

.

td, keep, their scrap'costs from mounting higher. /

The

least

at

but after

economic data which

cold-

is

to

associated

now

In fact the experience of the early skeptics was
particularly tragic—emotionally as well as financially. Cautiously
and wisely they withdrew from the market at its "unwarranted"

weeks of

The automotive

is

had been perfectly happy in dealing in such earthy neces¬
vegetables and lard, suddenly constructed a large addition

•

especially welcome development,
lagging badly earlier this year.

(Mackinac

Willard, 30 Federal Street.

properly aloof.

seasonally,

Hot-rolled

all

loans

experts, knowledgeable economists

holding much better than had been anticipated.

true

1955

.BOSTON, Mass.—Vera E. Egan

The psychological influences—in contrast to the business and

to

the

With McCoy & Willard

to see themselves becoming rich to the tune of the glamorous
ticker, sizzling along hours behind the quotations on the Stock
Exchange floor. But it must not be imagined that the professional

tighter market, this trade magazine points out.
far

activity and prices

playing the market;
barbers, chauffeurs, bootblacks, elevator boys, servant girls, elbow¬
ing sophisticated traders to crowd into branch brokerage offices

new

are expeeted to ease seasonally during the next several
Bui the overall outlook on flat-rolled products is for a

same

hand and business

13-16,

as

Rank

products,

so

one

to its building, and increased its
membership, to help satisfy
insatiable demand for trading in
company equities.

recovery,

pickup is being felt on hot-rolled sheets,
hot and cold-rolled strip and plates.' Galvanized sheets and tinplate, which have been consistently among the most popular

The

securities

Not only was there

A somewhat milder

but

the

to go around.' Thus the

,

expect structural demand

on

dopine of the race-tracK—ail stemmed from speculative psychoiogy-plus-credit.

users who had been getting
quick delivery from mills
scurrying to warehouses as rapidly extending mill de¬
livery promises to catch them with inadequate inventories. Warehouse buying is picking up
too—very sharply in some areas, "The
Iron Age" reports.
;

still

at

National Security Traders Asso¬
ciation annual convention. ;

other, occurred in the post-World War II period.)

1929; uiree years later it sold at 2) in an atmosphere com¬
bining the frenzy of the gambling casino with the tipping and

now

Producers

Finan¬

land, Mich.)

in

199

Small

weeks.

Sept.

practically

2-hour sessions), stocks selling at anywhere from 20 to 200 times
boom earnings (American and
Foreign Power, earning $1, sold at

business.

are

was

$10 billion, new issue offerings at
the astounding rate of $1*4 billion
monthly, Stock Exchange vol¬
ume at a daily
average of 4 million shares (including the Saturday

expected to be in tight supply for at least the next 60 to 90
days.
Some producers are trying to increase output of their

•

commodity prices

common stock prices, a
yield to 3%%, call loans averaging 8% and on
days rising to 20%, brokers' loans at over $6% billion with

some

producers is putting

bigger share of the

of

Societies
Commodore.

The 1920's four-year
quadrupling of

are

a

4

first

fall in their average

was

sheet mills in order to be able to take

the

Federation

Analysts

Hotel

1928

only rose from 51 to 53,
eight months of boiling market action,
the similar slow rate of 3%.

1929's

cial

Production

great rise and fall of stock was motivated by psycho¬
phenomena peculiar to the market place—illogical and
unpredictable; fanned by the use and abuse of credit.

more

rise again this week, mark¬

reflecting the sharpest

are

Industrial

The

already gaining steadily.
temporary letdown toward the end of

sheets, which

to

of

(Special

December, demand is expected to continue strong well into 1955.
Still higher production rates may be
expected in the weeks im¬
mediately ahead, this trade weekly asserts.
Cold-rolled

1926

Index

the
,

May 8-10, 1955 (New York City) >
National

FRB

Emotion-Plus-Credit

ing the eighth consecutive week of increase, states "The Iron Age,"
national metalworking weekly.
Operations this week are sched¬
uled at 74.3% of rated
capacity.
steam

The

the stock market
on

yearly gains in Los Angeles, Cleveland, Baltimore and

A strong influx of new orders from auto

Novt 28-Dec. 3, 1954
(Hollywood, Fla.)

unchanged between January to September of 1929 (rising from
to 62.5); and
declining by only 0.1% in October, 1.5% in
November, and 0.01% in December. (Similar divergence between

San Francisco.

more

Tabulating

-

Wall Street annual
dinner at the Hotel Statler.

62.3

pro¬

is expected to

Purchases & Sales
Division of

Annual
Convention: at(
Hollywood Beach Hotel.

And the index of wholesale

decline in failures in New York City.
Mortality in metropolitan
areas was 26% higher than in
September 1953, with the most

Steel production

during

advanced at

sharply than did those in non-metropolitan districts; the former
declined 15% and the
latter, 7%. There was a particularly marked

nounced

'

.

(New York City)

Investment Bankers Association

logical

declined

Nov. 17, 1954

the

from

Businesses less than five years old had the
highest proportion
of casualties.
Two fifths of the
failing enterprises were in their
first three years of operation.
25

Convention and

basis either

activity or in the price level (via
"inflation-hedge" factor), to- justify the

May

ex¬

ties per 10,000 enterprises listed in the "Dun
& Bradstreet Refer¬
ence Book."
This was the same rate as in
August; the Index registed 36 in September 1953 and 65 in
September 1940.

the

ciation Annual

Election of Officers.

factors.
Wilfred

A.

According to the seasonally adjusted "Dun's Failure Index,"
September mortality rate was at a post-war high of 44 casual¬

September casualties in

(Florida)

Security Dealers Asso¬

our

stock market rise.
And, consist¬
subsequent decimation of share
and vanishing of buyers in the face of
the
16-milliort-share-day
selling
onslaught
.stemmed from no relevant change in outside

.

the year,

of

no

annual

ently,
prices

September business failures declined 10% from those in Au¬
were

was

Club

tremendous

Lawrence, Mass.; Providence, R. I.;
Muskegon, Mich.; Charleston, W. Va.; Altoona, Johnstown, Scranton, Wilkes-Barre and Hazelton, Pa.
gust and

examining

business

the

were

.

Florida

completely inconclusive, is evi¬

From 1926 to 1929 there

claims for insurance

highest point since July,
about 29% higher than a
year ago.
Layoffs in trade and textile,
apparel, food processing and primary metals industries were
responsible for the increase.
The major areas with a
very sub¬

stantial

at

Bond

Nov. 4-6, 1954

'
-

Initial

slanted

general economic factors should be
as

(Milwaukee, Wis.)

fall Dinner at Alonzo Cudworth
Post.

their former "dizzy" peak.

near

are

3, 1954

Milwaukee

denced by the 1929 segregation of the market
boom from external conditions.

primarily due to the
workers and

or

recognized

the corresponding

the

at

were

business

at the lowest level of

were

Nov.

That the current reactions to this fearsome

unem- ;

Although continued claims for insur¬

benefits in the week ended Oct. 2

ance

PERFORMANCE

Encore Ahead?

long re-ascent to

There was, however, no
improvement in the reports on

ployment the past week.

an

Pervading the dramatic reminiscing about the greatest collapse
in financial history at this twenty-fifth
anniversary of October,
19294s market cataclysm is the
question, "Can it happen again?"—
a query given additional timeliness
now
by the stock averages'

week displayed slight gains
before, but continued about 7 % lower than a

ago.

1929

Is

—

Wednesday of last

that of the week

Field

Production

Business Failures

Total industrial
production for the country as a whole in the

period ended

Investment

By A. WILFRED MAY

Index

J
over

EVENTS

Trade

Commodity Price Index
Food

COMING

j

.

Electric Output

5

«•

r

I

'

-—Published by

'

"

*

"

ARNOLD BERNHARO & Co., Inc.

9 East 44th

-

St., New York 17, N. V.

The Value Line

Survey Building

-

•T

ft

6

The Commercial and Financial Chronicle... Thursday, October 28, 1954

(1706)

VAV1

mi

-

.

„

Senior

j

.1

11

W%

Light, Power and Progress
*nt° an entirely new atmosphere

g~\

,

t~*

c

xt

u

i

"■

'

n-*

v

Partner, Jacques Coe & Co. New York City

4

]

Market economist maintains recent market strength manifested
usual culmination phase of the second stage of a typical

i

bull market; to be followed by

;

By BRIG. GEN. DAVID SARNOFF*

of
optimism, based
upon
confidence in a cooperative government
administration.
Also, that

JACQUES COE

>Members New York Stock Exchange

,:

mediately after Eisenhower's elec-

■*!

1

MM

the Bull Market?

tor

By
«

7

If

11

What's Ahead

Chairman of the Board, Radio Corporation of America

final phase of speculation in
low-priced issues. Asserts premiums on blue chips are now

^ensitiv^ atmosphere!11

k

to

I

to

cause

of "blue chips getting paler
low-priced stocks blush with the excitement of things

while

conclusion

his

to
All

broad

definite
tnree

bull

patterns

distinct

cumulation:

(when

while

have

markets

the

e

,

,

■

The Rumor Factory

,

Wall

g

did

-

JM

their

have

now

J!M$m

|Bg

d

We

have

and

Senate

weakness

more

a

familiar

Wall

Street

whether

matter

the

Jacques

stage

rather, excuse)

(°r>

Coe

-:We

have

never,

"reason"

a

^expressors

h

e

Fair,

n

we

the addition of

sight to

radio

lamp,

Sarnoff

those

the

birth of which

of market opinion hid-

we

cele¬

now

brate, is elosely
related to the
seemingly can rationalize "one should be cautious." The real
developments which followed in
what it imagines is going to take problem
is
how
can
one
beelectronics. It was while working
place or what it would like to see-cautious and what should one do
on
the
incandescent
and
lamp that
happen.
*
'
,7
about it?
/

getting

.

market°lhis Summer
surprised,
founded

Edison made his vital contribution

§ Fall

and

astonished

and

con-

of

the experts—yet
typical culmination phase
most

Reasons necessarily do not-have

t°

Paling Blue Chips

j?e e^ber coherent or logical—

so iong as they are plausible.
And it they are plausible, tney

We bave ana]yZed

to

the pattern

he made inventiveness
and

which

organized

the

hundreds
men

of

minds
and

a

purpose¬

enterprise—in

and

energies of

thousands

even

of

focused upon the solution

are

specific problems.
He provided us

working

method

ment

material

of

the

and

is

continues

to

physics, chem*
from areo-

metallurgy,

dynamics
from

It

progress.

wrest secrets from

istry

wonder¬

a

the. attain¬

for

that

method

|

with

and

electronics,

and

itself,

nature

Not far from Edison's workshops

i

in

New

Jersey,

stands

now

the

7 ;
Research Center of the Radio Cor¬
Indeed, Edi¬
son's
electric poration of America. I am highly

public

ready tor the linal phase.
The
broad
uninterrupted

electronic

Princeton laboratory which is the

sound.

that the ing behind that trite expression:

so

Foresees

demonstrated

much

had

■

35

later at

World's

labor troubles; higher costs;

down—al- patience with straddlers

did

the New York

David

up or going
there must be

ways

market

tele¬

as

years

higher taxes, etc.

the

1904,

just

wealth;

of'

made

vision

in'

more

redistribution*

field.

ful

front

pages in

capital-:

1956;.a dissipation of the

and is nothing unusual.

WBmmKmMM

the

towards

trend

a

Administration

Democratic

is

this trait of "colorization"

■pjgjyjp is going

?. P * n 1 ,°, n
second

and
a

It

era.

Democratic House

a

of

tele¬

.

came into
being after Eisenhower's election;
a stronger trend towards the Left;.,

No

my

ximshing

its

in

factory

v

strong

a

this

an important mile¬
highway to the modern electronic

was

stone oh the

7

wireless

heard all sorts of fanciful tales istic confidence which

we

in

overtime.

work

not

be

rumor

phony,

Forest's exhibit

prodigy,

the busipick, flip
real elec-*
would got

that

the

inning.

are.

v/ould not

if the

'possibility of

infant

an

to run itself aut.<

take some time

explaining the strength in this or
that security. It is only fair to say

low-priced

.Right

Street

element

own

speculation—

i-ssues

chips has

,

lected); third,
when

blue

consisting of dominated the market to such an It is our opinion that, if
— first, vac-^extent that these
fancy jewels ap- ness
index
fails
to
appreciation pear bluer and more diamond- sharply there may be a
;
studded than ever.
'tion scare. The thinking
MHf .*
somewhat
as
follows:

rise,

n

the

on

—

secon-

are

n

centration

stages

issues

dary

in great force, and,, in ac¬
cordance
with
precedent, vwill
tinues

*

second,

better .class

issues

come."

con-

de

Lee

Dr.

momentum

overall

in

flat TV screen, like a picture on the wall, is destined for the
future, and concludes "electronic amplification and conversion
of light will enrich the life for all of us."

Election Influences
The

Gen. Sarnoff discusses

progress,

research

a

Cites pattern of previous bull markets

quick loss.

a

substantiate

and easiest

group

electronic

further

light emerging from television research, and reveals develop¬
ment of a light amplifier and a new form of illumination.
Says

the

in

factor

important

most

of

lines

entire s*tock market picture,

excessive, making them the most speculative

a

After reviewing

fnto^qutties!°Sinceefh?s

ing
capitalistic confidence basically is the

radio.

His

aroused

was

sensitive

by

curiosity

mysterious elec¬

a

it

that

honored
all

Like

the

concentrates
and

bears

mv

name.

great research efforts, it
diverse

talents

skills of a large
number of trained scientists, phys-?
icists and engineers.
V
tspecialized

The

of collective re¬
which it operates—
the technique of setting a fixed
goal
that may seem
impossible
principle

search

upon

prevjous bull markets — and trical
manifestation
inside
the until it is reached—is a product
struck with one outstanding bulb. Some unidentified force, he of Edison's extraordinary mind.
stage of a
bull are k°und
oe acceptable.
similarity.
In
late
stages,
the observed, seemed to be at work. So we can say that he has a right¬
market.
The amplification of the romance ratio
of
low-priced
shares
to He was too busy with other fate¬ ful share of credit for multitudes
varies with the state of the marhigh-grade
shares
always ' ad- ful explorations
to pursue
the of products that have materialized
Market Up, Business Down
ket. For some time past, rumors vanced
sharply.
This particular clue.
But as was his habit, he since the dav, 75 vears ago. when
There
have
been
numerous
of
spinoffs
or
stock
dividends phenomenon
has been
lacking made copious notes on the phe¬ the electric lamp became a prac¬
times in the past when the stock
tical fact.
serVed to create that much extra thus far—but we .can begin to see nomenon and it entered the stream
market kept going up, while, at
hnr_nnwpr nf h.lllis.h pnthnsiasr*
initial indications of blue chips of new electrical knowledge un¬
The lamp will remain forever
the same
it

was

of

a

the

oi-

were

second

time, business

down,

but

the

divergence
.

has

accepted

peak

been

.

..

Practically

.

all

time

of

business

1953.

line

in

a

the

then,

been

rumors

the

in

Almost

various

around

Since

has

hor^powei ot bullion enthusiasm.
of

the
ir-

an

.

Everyone

the

for

waiting

is

From

week

tendency

is

to

later

in

the

on

issues

to

retail

it

until

Thus

year*

sales

ths

week

postpone

..

general

the

t

whether

n

smauei
into a

a

no

skywiien

differ-

whether

or

bei

e

rous-

is being

company

•t

u

is

atmosphere

ingly bullish, it makes
ence

formed

the

for

three weeks

rabid

whilp

nrippd

inw

Pa*er ™hl1®

Settl"g

low Pncea

stocks blush with.the excitemeht
°* things to come.

J '
.
.
.
vn
most speculative group that is to
saY» those in. which it may;-.be.
easier to make a "quick loss" "at
*be moment
is the blue chip
,

groun,
;

.

n

and that it might be well
^

0uAtlf

Set oneself into about 50 ,o
cash- Then, if there should be a

bull...

following Labor

Day> 87,000,000 shares of General

der the

the "Edison Ef¬

of

name

fect."
It

Edison

insoired the British

readjustment
high-priced

of

the

in

prices

group,

cash

this

first electron

dio

luminous

the

physicist, John
the

vided

the

to develop

of

element

two

which he called

Fleming's

Effect that

tube detector

signals-—a

ra¬

tube

in

honor

his

dow,

pro¬

Dr.

to

Lee de Forest's epoch-making in¬

tion,

electric'

steel

production,

production, billion, three hundred million in-

power

bank clearings,
etc., etc., combined with the first
two,
to

merge

as

into

what

the Index

7;, 7 ; 7

ness.

We
turn

do

the

expect

do

we

market

indices

audion

"audion."

an

amplified

only detected
radio signals, and

it also functioned

as

an

have

in

the

on

'

in

one

.,

,

,.

,

of

on

their

way

.

We made the observation, im- and selectivity.
;

..

■

:7-

.:

^

the

lAlMlfeW

|%i ^

1

pension

to

mi mm

A

'-IIjII^rlnW
MmIW

Points

Team
1.

Donodio, Hunter, Fredericks, Demaye, Saijas, Kelly.

2.

Barker, Brown,

Corby,

20

Whiting, Fitzpatrick 20

Weseman,

mezzanine

4. Leone, Nieman, O'Mara, Forbes, Greenberg, Gannon

18

are

more

opinion,
jmuch

at

this

the

more

level

so

obvious,

more

that, in
chips are

so,

blue

speculative
than

the

our

ground

low-priced

sPeculatlve step-

Many industrial shares in the
medium-priced field remain at
comparatively low levels. They
have a long way to go on the
upside, when their time comes—
but

meanwhile

the

unique




Meyer, Murphy, Frankel, Swenson,

Dawson-Smith,

con-

But

Kuehner

industrial

to

become

Kaiser, Hunt, Werkmeister, Kullman, McGovan, O'Connor 15

7- Growney, Alexander, Eiger, Valentine, Bunan, Craig___ 15

1Q

14

Krisam, Clemence, Gronick, Stevenson, Weissman, Reid 13

Manson> jacobs, Siegel, Topol, Frankel, Tisch

13

and

and

can

essential and

trial

set

up

the

was

fruit¬

first

indus¬

tensive

New

POINT CLUB
Jack Manson

Jack Barker

200 POINT CLUB
■

Jack Barker

218

Giles Montanye

213

pronhets

bringers of light
no

fate

worse

into

cast

Light,"

we

utter dark¬

and
of

unto

as we

as

first¬

prayed

feet,

my

path,"

my

it

hailed

Heaven

Psdlmist

The

Lamp

ly

for

and

a

all do

repeat the beautiful line

1 i g ht,

amid

the

encircling

gloom."
"More, More Light"
Tradition
words
man
more

to

it

has

bv

uttered

that

the

Goethe,
light!"
And

pret.

It is

the

an

last

great Ger¬

were

what Edison

mankind.

he

invented

It

light,

"Light,
more

bequeathed
overwhelm¬

Though natural and man-made
is an element as indivisible

a

be said that

light

technique for

from

may

new

Without denying free

and

*An

St.

address

Louis

by

Chamber

observance

Gen.
of

Sarnoff

Commerce

at the
Lunch¬

in

to

genuity.

processes

it

is
a

science

of life as air
still endlessly

continuing chal¬
and man's in¬

"

We know that light,

of

Light's Diamond
Jubilee, St. Louis, Mo., Oct. 19, 1954.

eon

the

water,

mysterious and
lenge

a

is

born."

laboratory at West Orange,

Jersey.

play for intuition and inspiration,

pt ttr

to

spi¬

laboratory in un¬ ing thought that he made the
pretentious form at Menlo Park. monumental gift m>iy ^ vea^s ago;
Later he established a more ex¬ the scan of a single lifetime.

IV2

potmt

and

research

12.

9nn

the

venture

ereat

our

as

"offsoring

the

light is

,

inventing.

pt ttr

I

of Cardinal Newman: "Lead, kind¬
con¬

9

phwt

small

of the word.

oonceb'p
the

^

ful element in American scientific

-7

Amer¬

only in

intellectual

teachers

light unto

11. Klein, Rappa, Farrell, Voccolli, Straus, Cohen__________
Serlen, Rogers, Krumholz, Wechsler, Gersten, Gold

senses

when

primary

.;

screen.

a

John Milton proclaimed that

research, which

an

but,

We sreak of

triumphs. I refer to the laboratory
of

a

in

ness.

17

8. Bean, Meyer, Bies, Pollack, Leinhardt, Weiler
9

his

light, not

the

of

de¬

They

tributions, perhaps the most im¬
portant of all, is rarely included
in the amazing inventory of his

Edison
g

of

one

light

to

major step

every

television

is

produce

sense

in

ritual

in

extension

fpirnriqinn

of

amount

hooe.

And
new

a

homes

"A

in

progress.

in

issues which heretofore have been

children ^

5.

has

and

32

ican

feeling,
have been

as oicturps on
million TV sets

ployed
The

and

than

technological advance.

our

pe¬

Edison

all-pervasive.

Industrial Research

Security Traders Association of New York Inc. (STANY)
Bowling League standing as of Oct. 21, 1954 was as follows:

the

disparity is
been getting

that.

a

a

light.

fo*'

"God

of

the

seats

I'^ht.

sion, indeed,

into

balcony

the

—

thinking

behold

be traced in telegraphy and
telephony, in the phonograph and
the cinema, in radio and televi¬

front-row

unoccupied. The

than

more

influence

immortal.

can

18% "

and

far

of

ness

material

make him

me

that symbol. For

vocabulary,

drenchori

achievement in itself

was

NOlcS

3' NewinS> Drfine. Gavin- Montanye, Bradley, Huff

less

he

Edison's

Ii?proportkmSto' tC'pSmlums,
or

Edison.

lamplighter who dispersed

Effects—are

and

these

Alva

WF

trusts

come '

buy

the

SECURITY TRADERS ASSOCIATION OF NEW YORK

in the Front Row

funds

market

Thomas

But

in

are

in

part
genius of

incandescent

to

MTfCfn A

derive

to

We rightly think of Edison first

discounting much,

investment

the

an

Obviously there has been an
acute shortage
of supply whenever

said

be

from

V77'''t"^-V."'f7.:^:

if. not all, of whatever business
improvement comes along.

Scarcity

fairly

as

up.

influenced

the world you and I live in, may

sufficient

so

greatly

so

•+

,

'■

has

darkness:

market

already

groups

towards becoming primary groups,

to

fast
shares of

respects

many

process

going
along

secondary

all of which takes time, patience

Can this be healthy?

COmoany..
,ir

value

which

stock

the

stock

gone

companies

some

market

Our
very

oscillator.

The revolution in communications

to

seems

the ages light has awed
inspired mortal

through

De

not

every

on

and fascinated and

our

Forest's

soon,

very

expect

keep
of
the

Many
that

not

to

leaders

Bust-

in

crease

77^

modestly upward

but

referred

is

General

of

Motors advanced 15 points, or one money can be used to go into

there

culiar fitness in

man.

he called

which

win¬

ship or plane, we behold
imperishable glory of Edison.«

And

turn

stepping-stone

the

of

every

street,

every

on

In

lighted
the

we

Other^mdk-es, such^aT^onstruc-

Edison.

of

moment

everv

day and the night.

"valve."

a

valve

vention of the three element tube

but

symbol

Throughout the world it shines in
this

was

My personal opinion is that the jv/r-hroco Fleming,

unus aie Dem* IO™ea *
big company.- Either, is to

sufficient

far,

railroad

nor

fh

e

split into smaller units

well-advertised business turn-

Tieither

both

two

Wdid> Ali ot Ulls P™ves mat wnen

regular downtrend.

about.

between

f thj

AI1

breath,

same

mergers

companies send

.

the

of

business indices made

some

Spring

going
period of
longer than
was

current

a

•.

traveling at

speed of 186,000 miles a second,

(1707)

'Is -the

Man:has crashed through

energy.

the barrier of the speed of sound

but,—though

his

pretensions

infinite, he cannot

are

x

imagine a
break through the speed limits of
light.
Certainly

even

have here

we

fun-

a

-damental

building block of
universe, and one with which
have

science

been

generations.

New

lumination
now.

are/

in

last few

patterns of

emerging

il¬

even

' ./-.J --i*

-

/

the
men

playing

their laboratories-in the

spectacular -future * he

of

sion

all of
~A

had -

No cabinet will be required..; The

un-

light will enrich life for

us.

/

first

:

mood.

your

ments, appliances and services.

'

;

the

ment for this address.

light will flow into
Right down the line it
I believe that The TV tube of -to*** will provide substitutes for presday will eventually be eliminated, ent types of light used for illumi-

three

touched off at that moment.
Read Admiral Lewis L.

Light, the first of

topics

in

Strauss,
Energy
Commission, hailed that episode
as "more fundamentally a pioneer
Chairman

assign¬

may
*

*

home.- daily life.

in .the

pictures

much for

electronic

this.re-

search will •be bigger and brighter
television

So

Television, however, is only one
of the avenues through whichj

_

benefitfrom

and

eye

,

Power
The

second

is

of

the

Atomic

venture than the first railroad

Power.

And

we

penerate the West."

to

Again, strain

«

l

It

■

the intensive search for

was

terials

that

for

led

the

television

the

to

the fluorescent tube

incandescent.sion

as

of

•

rival to

a

today,
televi¬

more

once

research

that*, bids rfair

produce, another

far-reaching
ing.,.--,

screen

light:* -And

curiously, it is

ma-

development

to

Qr,

even

revolution

it

can

the

engaged in the de¬

are now

lead

a

of the house.'

which will make

a

little television

near

nuclear

mean

submarine,

will. add greatly to

locomotives,

'

duced -and perhaps abolished by
controlled, such electronic devices providing
box no big- far-reaching light without .glare.

been

Already

energy.

launched.
r

autorhobiles

That

Today, 73% of electric

will

in

due

'

r

'■

"

■

ahead, electricity will be increas¬
ingly derived from atomic .energy.

TV and

as we saw on

waved

a

.

neutronic

Continued

wand

on

f—electronic light.* This

new form
to Scarry forward

destined

Seems

the great work sparked by Edison
and is likely to loom ever larger

New Issue

i.

in public consciousness as this de¬

velopment progresses.
t
The story, or at least the climac¬
tic chapter in the story, begins as
recently

1951'., On the occasion

as

$10,000,000

a.

of the 45th anniversary of my as¬

with radio, I suggested

sociation

the research

to

in

they

Commonwealth of Puerto Rico

foregathered

men

Princeton Laboratories that

our

three

invent

"presents"

for

Public Improvement Bonds Series A

-

by the time the 50th anniver¬
arrives in 1956.

me

sary

All

••

suggestions

my

sounded
.

/'impossible.". But those of
unhampered'

are

General obligations, for the payment of which, both principal and interest, the
good faith and taxing power of the Commonwealth of Puerto Rico are pledged.

.

who

us

tooT mttch

by

knowledge of the obstacles have
confidence

more

the

in

scientists

Dated

July 1, 1954. Principal and semi-annual interest (January 1 and July 1) payable at The National City Bank of New York
office of the Government Development Bank for Puerto
Rico, San Juan, Puerto Rico. Coupon Bonds in denomination
of $1,000,
registerable as to principal only or as to both principal and interest.

*

than the scientists sometimes have

in

themselves.-

that

Personally I have

proceeded

always

whatever

mind

of

the]

man
■

iihagine/ the mind of

can

or «t

the theory

on

the

man can

ultimately pfoduce.-'r"1*'>

—

■■

*

V

a

:

*

x*

*

*

'

'

'

^

4

*

.

J.

*Exemption from Federal, State and Local Taxes. The following is an excerpt from the United States Code Annotated
(Title 4$_Chapter 4, Section 745):
.
and all bonds issued by the Government of Puerto Rico, or by its authority,
shall be exempt froip taxation by the Government of the United States, or by the Government of Puerto Rico or of
any
.

7 Ih
for

any

I asKed them first,

case,

magnetic tape recorder ior

a

television

for

electronic air-conditioner:

an

second,

political

municipal subdivision thereof,

or

other municipal subdivision of any State,

or

by

any

Territory,

State, Territory,

or

possession,

by

or

possession of the United States,

any

county, municipality;

or

by the District of Columbia."

and

programs;

third, for

Acceptable at

true amplifier of light.
And amazingly, there is reason to
believe
three

a

that

of

shall

I

these

receive

anniversary

par as

or

or

Security for Public Deposits and Eligible to
Postal Savings Funds

secure

Deposits of

Aall

pres¬

ents within the time I specified
'

The magnetic TV tape recorder
has already been produced and it

functions

in

color

black-and-white.

It

sight

reproduces

well

as

as

records

Prices

Amounts

implications

for

the television

future

the

To cite just

camera

can

make

can

be used

record

you

it

on

2%

Prices

1.85%

1956

21/4

1.00

1,075,000

1962

2

21/4

1.20

1,100,000

1963

2'/4

2.10

100

550,000

1958

2

1.40

1,125,000

1964

21/4

2.15

1959

2

1.55

1,150,000

1965

21/4

100

625,000

1960

2

1.70

1,150,000

1966

21/4

your

-

993/4

(Accrued interest to be added)

own

set.

Bonds maturing after July 1, 1964, subject to redemption, either in whole or in
part in the inverse order

As for the electronic air condi¬

their

numbers,

on any interest date not earlier than July 1, 1964 at par and accrued interest
of 1% for each twelve months' period or fraction thereof between the date fixed for
the stated maturity date of such
bond, such premium, however, not to exceed 1% of such

of

tioner, I

can say that encouraging
is being made and that
laboratory model is now under

progress
a

1961

or

1957

as

project

can

Coupons

$1,050,000

.80%

heretofore you could
his first prattlings — and

television

Due

625,000

Willie eating his porridge, an-*

color, just

Amounts

500,000

tape recording of

a

Yields

Yield

550,000

to make tele-movies in the home.
You

2>/4%

to

are

example,

one

Coupons

1955

$500,000

as

magnetic tape does for sound. Its
many.

Due

.

and

readily

as

AMOUNTS, MATURITIES, COUPONS AND YIELDS OR PRICES

in

of

premium
redemption and
plus

a

principal amount.

way.,

The above Bonds
The

But in

terests

of

most

us

reach.

I

as

are
offered, subject to prior sale before or after appearance of this advertisement, for delivery
and if issued and received by us and subject to the approval of legality by the Secretary of Justice of
Messrs. Mitchell and Pershing, Attorneys, New York City.

Commonwealth of Puerto Rico and

Light, what in¬

directly is the evi¬

dence already available that the
light amplifier is not too far out

of

the

the context of this Dia¬

Jubilee

mond

when,

Light Amplifier

speaking of light
which is produced directly within
a thin
layer of electronically ac¬

The National City

Bank olNew York

am

tive

this

B. J. Van

Ingen & Co. Inc.

The First Boston Corporation Lehman Brothers

Merrill Lynch, Pierce, Fenner & Beane

material.^Already,

seen

C. J. Devine & Co.

Chemical Corn Exchange Bank

I have
amplification ex¬

light

perimentally, in ratios of more
than 20; *&nd further progress is
certain

to

What

be

potentials

It

is

not

foresee all of them
invention

reaches

practical application.
know

from

significant

possible

before
the

are

not

to

new

stage

Often,

experience,
uses

a

of

the most

Incorporated




Corporation

Mercantile Trust Company
St. Louis

C. F. Childs and Company

Kean, Taylor & Co.

.

Braun, Bosworth & Co.

.■

F.Brittain Kennedy & Co.

,F. S. Smithers & Co.

Incorporated

Andrews & Wells, Inc.

Stifel, Nicolaus & Company

Incorporated

Incorporated

.

Seasongood&Mayer

^

Lyons&Shafto

Lakeside Securities Corporation

Wurts, Dulles & Co.

Incorporated

Boettcher and Company
October 27, 1954.

neither

A. C. Allyn and Company

^

*

Indianapolis Bond and Share Corporation

Prescott & Co.

immedi¬

When Faraday first produced an

current,

-

as we

ately-apparent.
electric

Lee Higginson Corporation

—t

for

practical use of such a revolu¬
tionary development as the light
amplifier?

Popular de Puerto Rico

Stone & Webster Securities

made.

the

are

Banco

he

nor

,

,

•

-

•"

.

*

'

in

steam power plants fired by coal,
oil or gas, and nearly all the rest
from water power.
In the yearo

be

can

'

r

power

the United States is derived from

-even
time be

radio, President Eisen¬

on

hower

of power.

ships,

aircraft; and

taken for granted.

-Recently,

a

j powered,

propelled by atomic fuels

heard

cannot

future power will

atomically

has

the safety of
our transportation on land, at sea
and tn the air. • The perils of night
driving, too, are'likely to be re¬

imaginations as we might, it
possibly encompass all the
potentialities of that new* source

our

crystal ball to foresee

no

that in the

vision possible in darkness. These

house./ If desired, the
program could be received
number of screens in differ¬

rooms

to .devices

require

form of light

new

a

your

room on

same

ent

on

The pictures could be

x

velopment of

may

living
and, being portable,
be moved to any other part of

from

(.We

a

table

room

more

in light¬

like

frame than will sit

on

and

by a thin, flat nation.
picture on the wall. V In other areas,-the electronic
be in an. easel-like light amplifier may be expected to

It will be displaced
screen

high-efficiency ; fluorescent
•

In short, the sky is the limit in
over an electronic device in Den¬
imagining the future of electronic;, ver, Colorado that set into
motipn
locked. Neither did Marconi dream television box will contain-all the light. The one; certainty is that, a power shovel at
Shippingpoft,
of
broadcasting
and v television controls — tuning, volume, lights like other major scientific inno¬ Pennsylvania. The shovel, in tufn
vations in the past, it will open
when he succeeded in sending the station selector—and a knob will
broke the
ground for the first
first faint wireless signal through enable you
to make the image •roads to improvements on existing commercial plant to be powered1
the air. I am convinced that elec- larger or smaller, and in
black-j products and processes, and will by atomic energy. The era of nu¬
tronic amplification and conver- and-white or in color, to suit your; give birth to entirely new instru¬ clear
power for civilian use was

fastest :7ftbving-: fortitvv,<Jf? his generation? could.wisuali^e ^he-^ger than a jewel case or cigar box.

-

of

7

Park, Ryan, Inc.

page

21

8

York

City. In the

lists

and

Television

It

send interested parties

to

Analysis of prospects

—

Uranium
nium

in

the following literaturef

Business—"Highlights

No.

&

Glore, Forgan & Co. and Halsey,
Stuart & Co, to manage under¬

Digest—Brouchure of facts and figures on the ura¬

& Company, 10 Exchange

writing

Potash

Chemical

&

—

Analysis

—

in

Meeds, 120 Broadway, New York 5, N. Y.
analysis of Canadian Pacific Railway.

Brief—Quarterly

ing the bonds.

of

Arkansas
&

Nassau, New York 15, N. Y.

Beaver

v

Stock

For

&

Hentz

Splits—Bulletin—H.

60

Co.,

Bird

Street, New York 4, N. Y.

Di¬
Securities Co., Ltd., 1-lchome, Nihonbashi-

gest"—Nomura

Bulletin"—The

Stock

"Weekly

Securi¬

Nikko

Investment Opportunities in Japan—Circular—Yamaichi

Ekco

36, N. Y.

New

York

third

City

&

Co.,

Street,

44th

West

21

Stocks

Lucky

New

17

Comparison and analysis for

—

York

York

City

Stocks—Quarterly comparison—New
Corporation, 120 Broadway, New York 5,

,

:

'

- <

',

ir

New York City Bank

1954—First Boston

•

-

»

C

'

r

Industries, Inc.

Co.—Report—James

M.

Toolan

National

are aware of the
day-to-day traffic prob¬
lems, and since they are so closely

—

Analysis

—

Starch

Products,

and Waukesha

tied in with mid western develop¬

interest

11 Wall

Averages, both as to
performance over a 13-year period —
National
Quotation Bureau, Inc., 46 Front Street, New
York 4, N. Y.
market

Heller

&

Motors.

Special report

Friedman & Co. Inc., 52

—

ask for Report C-308

McKinnon,
Also available is a report

special

on

122

introductory offer, ratings & reports on
major stocks and 14 industries, plus special situa¬
tion recommendation supervised account
report, 2 fortnightly
letters and 4 weekly supplements—for new subscribers only
$5.00—Dept. CF-62 Value Line Investment Survey, 5 East
44th Street, New York 17, N. Y.

—

Card memorandum

—

$583,-

system to be

toll highway

The

Company—Analysis—A. C. Allyn & Co.,
South La Salle Street, Chicago 3, 111.

Official Films, Inc.

bonds

000,000.

Co., 1 Wall

through

funds

private

by

the sale of revenue bonds consists
of

4-week

200

over

the

approximate

could

built

613 Major Stocks—16 page summary included in

country who want to

in

which

Northern Illinois Gas

Summary

than 508

more

marketing

share

Street, New York 5, N. Y.

Broadway, New York 4, N. Y.

meantime,

-

banking houses

investment

around the

Omnibus—Bulletin--J. R* Williston & Co., 115

Norris-Thermador Corporation- -Analysis—Cohu &

the

In

applications from
other

Broadway, New York 6, N. Y.

L. D.

—

;

Glore, Forgan & Co. and Halsey
Stuart & Co. Inc., have received

&

:A

—

high¬

of

November.

Street, New York 5, N. Y.

toll

■

the Illinois toll
highway system awaits the fea¬
sibility report being prepared by
Joseph K. Knoerle & Associates,
Inc., due around the middle of

Southern Company and on Cannon Mills.

New York City

:VV;

Financing

Inc.—Analysis—Stanley

continuing

a

State's

the

in

system.

way

be

will

theirs

ment

Baruch Brothers & Co.,

New York Central Railroad—Bulletin—Thomson

on

They

State's

Co., 30 Pine Street, New York 5, N. Y. Also available is a
bulletin on H. L. Green Company, Campbell Wyant & Can¬

in the National Quotation Bureau

Quicksilver

position to serve the

best

mission.

&

i

Stocks—Comparative figures at Sept. 30,
Corporation, 100 Broadway, New York 5,

non

and

the

in

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

Over-the-Counter Index—Folder showing an up-to-date com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks

yield

centers, these firms are

financial

Company—Analysis—Freehling, Meyerhoff &

Uranium Mining

D

Maule

New York.

used

Chicago and sales offices and rep¬
in the other major

resentatives

,

Corporation—Analysis—Standard Investing Corpora¬
tion, 40 Exchange Place, New York 5, N. Y. Also available
is an analysis of Drewrys' Limited U. S. A.

New York.
i

country.

Ludman

Bank

Hanseatic

Toll

State

Illinois

.

national underwriters in the
With main offices in

ing

Corporation—Analysis—Scherck, Richter

Co., 67 Wall Street, New York 5, N. Y.

York

-

New

Products

the

ac¬

Chair¬

Howell,

Highway Commission, first of all,
because they are among the lead¬

anal¬

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

City Bank Stocks—Laird,
Bissell & Meeds, 120 Broadway, New York 5, N. Y.
Also
available is an analysis of Sylvania Electric.
of

of

chosen,

were

Evan

to

cording

Illinois State Toll Highway Cam-

Bank

quarter

Gas

&

an

Company, 320 North Fourth Street, St. Louis 2, Mo.

Newling Canadian Letter—Fortnightly review of the Canadian

Markets—Newling

Oil

Also available is

firms

These

Co.,~:

man

Broadway, New York 6, N. Y.
ysis of C. L T. Financial Corp.
Colorado

tied in

dle West.

61

Secu-

closely

been

development of the Mid¬

with the

V

'

the

of

have

which

City Investing Co.-^Memorandum—E. F. Hutton & Company,

'f- rities Co., Ltd., Ill Broadway, New York 7, N. Y.

York

Street, Boston 10, Mass.
Lines—Memorandum—G. H. Walker & Co., 503 Locust

Inc., Union Commerce Building, Cleveland 14, Ohio.

Septem¬

Co., Ltd., 4, 1-chome, Marunouchi, Chiyoda-ku, Tokyo,
Japan.
,.
-

New

Public Service Co. of New Mexico. *

on

Street, St. Louis 1, Mo.

ties

Securities

memorandum

a

Chesapeake Industries, Inc.—Bulletin—Gottron-Russell &

Foreign Investment Through the Japanese Market in
1954—In

Co.—Memorandum—Rauscher, Pierce
Also avail¬

Son, Inc.—Analysis—May & Gannon, Inc., 161 Devon¬

Blaske

Tori, Chuo-ku, Tokyo, Japan.

ber

&

shire

Chemical Fertilizer Industry—Analysis in "Monthly Stock

Gas

Co., Mercantile Bank Building, Dallas 1, Tex.

able is

Candidates

Western

".--j

Illinois toll
highway system will be co-man¬
aged by Glore, Forgan & Co. and
Halsey Stuart & Co. Inc., two of
the
leading investment banking
firms in the country and two firms
Financing

Chase

bulletin—The

economic

National Bank of the City of New York, Pine Street Corner

>

re¬

de¬

participating in market¬

Laird, Bissell &
Also available is

an

Business

Applications

group.

ceived from 500 other houses

*

sirous of
American

Co., 74 Trinity Place, New York 6, N. Y.

Anticipated

Bonds

Place, Salt Lake City 1, Utah.

Singer

28"—Troster,

Of Illinois Toll

Sutro Bros. & Co., 120

—

mining industry—Whitney

:y;:
Atoms

$583 Million Issue

Broadway, New York 6, N. Y. Also available is a review of
changes in the holdings of investment trusts.
" I

firms mentioned will he pleased

that the

understood

is

brief analysis of Movies,

are a

portunities in Canadian

Dealer-Broker Investment
Recommendations & Literature

issue

same

of

possible beneficiaries of economic growth, op¬
Shares, and 40 selected companies
with Foreign Operations.

y

1954

Chronicle,;,Thursday, October 28,

The Commercial and Financial

(1708)

skirting Chicago from

route

a

the Indiana border to the Wiscon¬

Aetna Securities

sin

Corporation, 111 Broadway, New York 6, N. Y.

line,

route in

a

northwest¬

a

direction to Wisconsin via
Rockford, an East-West route to¬
ward the Cities of Rock Island-

erly
Pressed

Car—Data—Bache

Steel

& Co., 38 Wall Street, New
Also in the same bulletin are data on St.
Joseph Lead and Affiliated Gas Equipment.
York

TV Makers—Analysis of prospects in current issue of "Market
Pointers"—Francis I. du Pont & Co., 1 Wall
Street, New

5, N.

Riverside

Y.

Cement

Moline and

East
—

Lerner

Analysis

&

Co., 10 Post Office

thruway connecting

a

Louis with Indiana near

St.

Terre Haute.

Square, Boston 9, Mass.

Glore, Forgan
Scranton Spring Brook Water Co.—Analysis—Ira Haupt &
Ill

Co.,

& Co. has been

prominent in toll

Broadway, New York 6, N. Y.

road financing

first, participating in the
of Pennsylvania, New Jer¬

from the

On the Press-

Southeastern Public
&

issues

Service—Progress report—Troster, Singer
Co., 74 Trinity Place, New York 6, N. Y.

Highlights #28

Traders
&

Finance

Co.,

Ltd.,

Canada.

"Atoms in Business"

Corporation

25

In the

ment Fund,

Adelaide

same

bulletin

are

data

Smith Paper Mills Ltd.
; ■ ;•.'
.
Western Maryland Railway

HA

Members:-

2-

2400

74

N.

Y.

Security Dealers Association

Also

376

A

/J

Western

-

i

-

Company—Bulletin

(No.

the underwriting manager

proposed

.

178)—

pany's

Co.; 44. Wall Street, New York 5^ N. Y.
is^

a

bufytetm ^(No * 179}

*&'•}?

t •i.v.:.; \-

v>

->

i.:

on

Worth

■\ I

iV-

•

.

...

•

;

-

..

Railway Co.—Analysis—Vilas
Street, New York 5, N. Y.

&

.""J ;;.
Hickey,

Wiseonsin Efc«trir'Power ^©mPany^Ai^ys»>.iBTCinTent(issue
i *
-of> "Business &* Financial Digest"—-Ijoewi & Co.; i225l Hast
•

Looking for

a

Growing Producer!;

•

r

Mason

Street, Milwaukee 2, Wis. AIsoe available in the
-Uarco Incorporated.

_J|L

LUCKY D URANIUM MINING CO.

.has
and

already mined
is

about

to

4,100 dry tons

over

deliver

$1,000,000 in additional

pleted drilling operations
i

of 50,000

tons of

ore

of Uranium

on

assaying

two

claims

approx.*

REPORT

ore.

hofria Turnpike.. Hie firm is also
advisor, to the Department

..." v fiscal

^

same

a

■■a*ai#»A

DEPENDABLE MARKETS

of

Highways

of

cently

sold

finance

to

,

construction
..

STOCKHOLDERS

share

t

available

on

request

sues

Japanese Stocks and Bonds
without

JAMES M. TOOLAN & CO.
61

67 Wall

Street, New York 5, N. Y.




States

HA no vex 2-9335

"

BOwling- Green S-0187
Head

Office

T«kyo-

in

of the account

toll
of
has

toll

The firm has

road

man¬

financing

Indiana

and

in

New

participated in is¬

for the Massachusetts Turn¬

pike,

obligation

Connecticut

Expressway^

Pennsylvania Turnpike, New Jer¬
sey

Broadway, New York 6, N. Y.
Tel.:

and

York

v

as one

for

Inc-haa

prominent

equally

agers

Materia] and Consultation

40-

a

from Louisville

Haisey-stuart & Co

the
a

of

.

to Elizabethtown, Kentucky.,».

on

TO

re-

bonds

fc

served

Broker and Dealer

Commpn-

which

$38,500,000 - of

highway financing.

Member N.A.SJ>.

minimum

the

Kentucky

wealth

been

Co., Xtd.

Com-

1.20% Uranium.

Currently selling around 70t
SECOND

show

oxide,

nriiriininip

Itomura ^ccurtttcs

iV Y

^Houston, and ds jomt

mile toll highway

j

Corn-

manager of

: ^

issue is ah analysis of

v

to

for the

Turnpike

Texas

....

Miswrnri JPtactfkr

?■;*
v-»

been designated

Co-, has

&

gan

of

*

•

i

.

Maryland

49 Wall

-

..:

availably

NY lw.Y<
'

Trinity Place-, New York 6,N..Y-.

Smith, Barney

;•

,\w;" ji' i;

W >

Canadian Invest¬

'

;

,

Troster,. Singer & Co.

on

International Nickel Co. of Canada and Howard

and

addition* Glore, For-

In

Kansas.

York

New

Indiana,

Ohio,

Limited—Data—Ross, Knowles
Street, West, Toronto 1, Ont.,

Connecticut,

Massachusetts,

sey,

1

-

—

»

DEMPSEY-TEGELER &. CO.

Turnpike, Garden State Turn¬

pike, Ohio Turnpike and. Kansas

Turnpike.

~

'

*

Volume ISO

Number 5372... The Commercial and Financial Chronicle

•

and providing future employment

Investois

vs.

•

Asserting the nation

:

get top-

may

third college in the center
United

help

willing to take

by patting

;

risks

some

New England

I

capitalists. Praises
tax" legislation and

that

meet

big

—

come

them

have

I

doing

nation."
I

of the

as

from
were

amongst
of

companies.

I

e

nve s

1 y

the

rule

men

who

are

education

big cities.
brought up

Most of
farms.

one

on

This

announcement

in

as

the

is under

buy

world.

as

Co.,

Building.

Cortland

With Arthur M. Krensky
(Special to The Financial Chronicle)

LA

CROSSE, Wis.—Holland L.
now with Bell & Farrell,
Inc., Exchange Building.

CHICAGO, 111.—Ira J. Kaufman
has become affiliated with Arthur

this:

the New York and Midwest Stock

any¬

Exchanges.

In

the

past

he

was

with Francis I. du Pont & Co.

Merrill
(Special

SAN

circumstances

no

to

be construed

as an

offer to sell,

or as a

Serial

get
invest¬

dividends

of

old-

Some

to

Dated November I, 1954

rill

solicitation of

an

offer to

each November 1, 1955 to 1964, inclusive

on

Interest

Interest
Maturities

Maturities

Rates

,

1955

American

Rates

1960

3.60%

1961

3.70

3.25

1962

3.80

1958

3.35

1963

3.90

1959

3.45

1964

4.00

,

Industries?

the

"investors"

did

3.15

1957

not

3.00%

'

■

the

cotton
factories,
the
mills, the woolen plants
England.
These
were
built
by men
willing to
take
risks. The sailing ships which set
forth
from
Boston, Portsmouth,
Gloucester, Salem, and New Bed¬
ford to all parts of the world—

Price for all Maturities

New

charts

before

houses—

steam

or

the

$25,000,000

and

days

built

were

—

4

lators," not by "investors."
The

100%

plus accrued interest from November 1, 1954

of light¬
by "specu¬

Securities

and

Commission has done

Exchange
good thing

a

% % Sinking Fund Debentures,
Due November 1,

Dated November 1, 1954

1969

for conservative investors and the

big,

established

companies;

but

whether the Commission has done
well for the nation

debatable.
more

as

America

a

whole is

today

plus accrued interest from November 1, 1954

needs

speculators.
Pioneering Encouraged

It

is

Democrats

the

that

said

inaugurated most of the new tax
law changes to help the sick and
aged. The Republicans, however,
are responsible for the features of
1954

the

Tax

which

Law

en¬

industry, and
young
concern s.
During the
i Roosevelt Administration,
busiinvention,

courage

•

-

ness

with

treated

was

a

certain

disdain. The New Deal politicians
and

professors, who had had no
experience with business, wrote
the laws.

Such

legislation has helped the

unfortunate
.

who

were

unable

to

work, but it has discouraged the
formation of new companies to

'

future employment.
It
difficult for young
men to get the capital or to
save
enough from earnings to start a
provide

'

has been very

new

business.

.' trying to run
-

t

has

It

been

like

church without a

a

Sunday School—or have a family
without raising

children. The new

1954 Tax Law makes it easier for
any young man

to

start

a

encourages
•

/-

take

some

enterprises,
uranium

new

of good character
business.

older
risks

It

investors

by starting

prospecting

and

other




rare

also

to
new

for

metals,

The

Prospectus

may

of the undersigned

be obtained in
or

any

other dealers

or

State in which this announcement is circulated from only such

brokers

as may

Calif.

Lynch, Pierce, Fenner
Montgomery Street.

Beane 301

Debentures, Series A

Due #5,000,000

take

Chronicle)
—

James E. McClintick is with Mer¬

$50,000,000

paper

even

Financial

FRANCISCO,

Equipment Lessors, Incorporated

1956

without

Lynch Adds

to The

of these securities. The offering is made only by the Prospectus.

any

.,

Robb is

(A wholly-owned subsidiary of Safeway Stores, Incorporated)

-

servative

;

(Special to The Financial Chronicle)

people cannot

many

Built

added

Joins Bell & Farrell

nation.

an

President,

Chas. A. Goodwin &

Masonic

been

October 27, 1954

past few weeks I
have been studying the industrial
history of New England.
Con¬

-

No

se-

.

build

much time

D.
the

enterprises.

During

of

use

Charles
to

NEW ISSUES

risks by putting some money

Who

have

You

may

corporations.
must be willing

new
'

ap¬

—

has

nation

established

'''

My
you

Oreg.

Garver
staff of

fair

M. Krensky & Co., Inc., 141 West
Jackson Boulevard, members of

for

remember

CUrity.

as
a
whole, however,
top-heavy
with
"safe

'

that

is

(Special to The Financial Chronicle)

SALEM,

give

The

<

should

money.

is

time

willing¬

struggling

are

than

week

that

—

These

safety and
Ro?er W. Babson

'

who

more

this

realize

day every

proportion of your time in
taking risks for the good of the

to risk is the need of America

and

today, I find
they did not

little

a

should

.

peal
a

"

with

money.

1.

greater

worth

will

some

t-

for

those
o n

into

A

reader

that

I

Mutual

and

Funds

some

risks.

take

men

I forecast

With Charles A. Goodwin

Trusts

ment

'

in

favored

have
t h

people

heat

severe

They
consisted
of

a

That is why

the

fight

number

large

on

and cold in winter.

ness

diversification

live

Minister,
Professor,
br
of Industry has more
time than you have.
Captain

young

things
a

Prime

through

buying
stocks
in - well-known,
standard, dividend-paying
com¬
panies, plus

Too

box
were

encouraged the

always

safe investment of money

ments."

to

to

States, at Eureka, Kansas.
school is intended to

worthy

As

taking risks "for good of

urges

They

people with today.
One More Thought
vision do new things which their
parents or friends may think im¬
Young people who are born
without luxury or without money
possible.

prises. Cites risks taken by early
"incentive

field.

modern luxuries do not teach

third

This

into new enter¬

money

the wood

was

thought that
life
three successful colleges—Babson taking risks with horses, cattle,
Institute for men at Babson, Park, and storms. Steam heat, air con¬
Mass., Webber College for women ditioning, and flossy colleges may
good investors, but these
at Babson Park, Florida, and a make

must be

;

corn

summer

What Utopia Means to Me

heavy with "safe investments,w
Mr. Babson holds some people

.

college

the

Mrs. Babson and I have founded

By ROGER W. BABSON

f

.

and

obliged

Speculators

I

Their

for the next

generation.

t

(1709)

lawfully offer these securities in such State.

&
'

The

Pio

(1710)

^

m

-

wUlwwVJl- JllIJi

.

.

IvlATKf^t

l»v JpllrVIV

f

m

1 .■ mm

mu

i

OlltlAAl/ f tit InA SlAflr

.

V

Market Analyst, Auchincloss, Parker & Redpath
Members of the New York Stock Exchange

.

severely criticized for any in- consolidation-,after 1951 highs dreds of listOd issues ^which in
crease.d speculation following the comparable to their. 1947-8-9 per- ;the. past >twb years haVCJoeertv
in
reduction
in, legal
reserve
re- formance:
plodding along in price ranges valong in price_ ranges
quirements in July. Because the
credit managers know all about

By JAMES F. HUGHES *
,

1927

Alumim

unlikely that they will

it is

the advance
analogous to
the
beginning of the 1949-1951
uptrend is the fact that practically
of

have

persistent

the

of

leaders

the

advance

in

been

in

which

but

such

concentrated

that

stampedes
avanaoie

they

recently

£?rT ^er 18^3, as has a series of market
developments

]'e utryl,ng t0 m?kf, a

,

.

cast

the

of

future

of

stock

the

.market for 1955, I think it is wise
to

try

understand what hapPened
from

to

1945

t

1954.

o

To

begin with,
things happened in 19o4
high grade

to

blue

chip is-•
sues
that
haven't

hap-

pened since
but rela-

1929

tively little
happened

t o

•hundreds

of

the low

was

bettei than high Srade stocks dui-

and the first year

ing the, war
thereatter.

v

stocks,
supe-

in the Dow-Jones

12-month
period since 1929. From September 1953 to September 1954, the
average showed a net gain of 108
points. This makes it the third

industrial average for a

following

in the

is shown

stocks

th

prices.

Some

Dixie

,

of

technicaI

table:

priced

this type
of preparation from the autumn ot
^
^ summer m ,lfi49 tbat

Gillette

Co.

American

It

recovery

was

provide<J the" majority of stocks
tvith a strong base from which to

lm*ortant

an

be_

advance

the

of

return

to,hang

it

was

ICO

another

up

record.

1949 and

i951.

,

,

the

that

the

old

average

Era

New

is

groove

General Electric Technical

Since

Pattern

1946

a

Before

a

performance of low priced speculative stocks. Certainly the performance of the D-J industrial
in the past year has not
accurately reflected the action of
the market as a whole.
In fact
tlie record of a great many sec-

industrial

showed

30

points

to

August

monthly
net pain of only

a

from
1954.

September 1953
This moderate

,

.

stilt

forma-

,rom,

fmn

noopio

Howeveivyery few people

1949
coam

seem

Outboard

iustration

the

of

difference

the

1946-1949

1951-1954

be-

pattern and

been

generally explained by the

agers

in 1954, for the first time

fact that the moderate decline in

since

1927, inaugurated a major
designed to ease credit

activity has hurt the
smaller and economically less efficient companies more than it
has the large, efficient companies,
As a result it is logical that the
stocks of the big companies have

the Federal Reserve money man-

done
ket.
ness

much

so

better in the

mar-

Furthermore, now that busirecovery has set in the low

priced and

secondary stocks

be expected to

can

do relatively better

Geminations

appear

ha^ thf support

program
.

conditions
.stock

The

0f

41

*

An

■

'»*.

time

was

when

right

a

mations of

was

extremely

an

to 32.

•

^

j,

.

p

the

'the

From

a

to .1929

than

And from

an

are

mations

they

aire

to

closer

1927.

economic viewpoint

.

t

that

Vances

™n

-

th

qualify

for

less

ffct

nware of rthe
that for the
first time in 27 years they are
the in a position where they can be

have

the

of

climaxed

subsequent

aPnprfli

comDari

in¬

Regard¬
of
71

course

artitHtv

t h

p

f

.

Znv

early part of IMe

mhe,-

issues h
e
t f0l.: the process of making toeir stm
theexact GE Dattern since

important

l**#!

contr.outed

a'ties

to

hartna'started a'new'bu^marknt
Following

is

list

a

;mnnr+ant ofopw ;n

o(

the

thi«

-

In

be

Continental Can

war

DuPont

were

of

International Paper

interest to

some

stilt

of

Business Machine

-

looking back at 1946 it may

the

Jewel Tea

that

expedition

Borden

International

viJwpofid

the

into virgin prrce territory.
.Stilt Formations1'

p

omm-

favor

American Can

formations

victory
made

that

note
the

of

post¬
advance

celebration
against

a background
industrial activity.

declining

From February 1945 to February
the FRB

1946,

•'

Kroger

index

of produc-

tion declined 35% while the D-J

V

>

Lone Star Cement

industrial

Louisiana

by the time the production index

Land

&

advanced 34%

average

Exploration
Minn. Mining & Mgf.

had advanced 20%

National

ruary

Dairy Products

1946

from its Feb¬

low,

the

Reverse Copper & Brass
Shell Gil

On

the

formance

basis

this

of
it

record

is

Seaboard Oil

to be positive that a

Sunshine Biscuit

covery

Texas

continuation

Co.

Union

Carbide

S.

in

1955

impossible

the

relationships,

resemble

the

a

advancing

in the stock market.

in the

re¬

guarantee

trend

Gypsum

per¬

business

will

of

-

past

nical

United Biscuit
U.

industrial

average had declined 23%.

National Tea

technical

Tecn-

visible,

now

situation

spring of 1946 and the early

cnmmor

,

t

+„rrt

General

Eiectric

i

sfnee

since

^

1945

thpv

ceDtemhpr

is to

have

bee*

in

persistent

as

formation

a

result show

that

on

the^S

of

Virg

Price

n

Territory

a

1/ formation that on. the-basis

Practically

all

'

is

a

list

of

the

:

with

.

LOS

ANGELES, Calif.—Charles

Butterfield
Morgan

is
&

now

Co.,

associated

634

South

Spring Street.

„

have been
advance,

yea?s will be able to come to life

ln 1949' but thereafter, leader^run out of gas there is

W. H.

Wittmeyer Opens

BUFFALO, N.
_

^

Y.—William H.
WIWX„4i4.

show

-Dow-Jones Ind'is#ri?»!s—

Points Gained

Low to High

Points Gained

1946

83 to 294

+211

129 to 207

+ 78

June 1949-Feb.

1951

105 to 221

+116

161 to 255

+ 94

Sept. 1953-Aug. 1954

160 to 190

+

30

255 to 363

-

anything

ities business from offices at 940

-thus far in 1954.
This

opinion

:

is

Atwill Adds

comparr

able to its minority performance

based

-

—

to

-

-

Staff.

+

(special* to thb financial chronicle)

MIAMI BEACH, Fla.—George I.

j
bn

xx

^WUtmeyer Is conducting a sechr:

in a consistent major a possibility that a long time may East 29th Street. with no time out for elaPse before the market will be

Nov; 1943-Feb.

9

Morgan Staff

(Speci?.l to The Financial Chronicle)

W.

,

.

stocks

they remained, below their 1946

Low to High

Joins

-

have exceeded highs made during
past 45 years. Under condi
...

.

stocks

Hons resulting from the regulae

1949

in 1955 that is now
forecast by practically all

recovery

forecasting economists.
Of

t h
fbp
aJ^vi"ties there is relatively little
that have followed;the *GE Pat" chance that- stocks which have
tern since 1946- Thls means that been unable to advance in recent

ih

ate

being

i

of technical preceaent looks rnor^ listed have been free-wbeelmg in
like the end, rather than the be- Price ranges that haye either repginning of a bull market. •
resented new all-time highs or

Following

of lavorable business trends. The

activity fails to show the moder¬
Exploitation

1949 and

maior

havp

able* to

•

?

all

are

In addition to the stocks in the sun?.mer of *948. In these two
The purpose of this detailed foregoing lists practically all of "j®"ler JearsL «e
"J™?"
study of the market career of the utility and natural gas issues a?^n regaraiess or tne existence

Standard & Poor's L®w-Priced
——Period of Advance——

that

hnLw
hov^hLn V.n»hii
1

ad

U. S. Rubber-

.

above

abovp„

concentrated

^

with

listed

dividual major advances.

ine rattern ot mock

technical

much

th

list haye staged

stocks

examples of exceptional stilt for¬

Aircraft

of

'

The

"to thl'redifllg'er4" ofl^Varl ^ ^

by Mr. Hughes at a
meeting of the Association of Customers
Brokers, New York City, Oct. 14, 2954.




by investors. It staged quite a
rediscovery celebration with a
stilt formation that zoomed from
69 to 145.
Instead of bringing
back memories of the seven
months following June 1949, this
performance is more reminiscent
of the five months between March
and August in 1929, when, on a
corrected basis, General Electric
soared 46 points from 54% to 100%.

AU

Texas Pacific Land Trust
V.

-

United

August 1945 and Febru-

1946

long

1954

Schenley Industries
'

'

between

program

developments of
haveas much to

address

at

viewpoint, however, the stilt for-

e^Lri?

past year
do with the performance of the
industrial average since ,Septem■■

of

1927

1928-1929.

of
logic but it is doubtful whether

economic

a

Paper
Sperry Corp.

•

Pfizer

Mfg.

Scott

performance. -The

major advance.
'
opened
the-Continuous Advance Since
Pins Recent Stilt
door for the wild speculative orgy
J
peak

-

at

market

&

Cement

Union Tank Car

for using 1927 as
comparable to 1954 is the fact that

of the low- priced stocks has

business

Marine

Penn.-Dixie

postwar victory celebration of GE

justification

perform-

ance

Pete

Co.

advance> provides an excellent il-

Price Trend

Comparison With 1927 and

e

relatively poor

was

,

.

points.
The

market

tions which in 1946 climaxed the
bull market careers of several
hundred stocks.

of Standard & Poors on a

basis

bull

the dangerous

sues

average

Merck &

Montgomery Ward

mob

Probably the simplest
way to describe what has happened in 1953-1954 is to say that
the regulated market has duplicated with high grade leading is-

advanced 108 points in 12 months,
the low-priced speculative index

International

Parke, Davis

mar-

concerned.

ondary and low priced issues during the past year has been extremely disappointing.
the

postwar

range

Electric Au o-Lite

Northern Pacific

two

ing the postwar victory celebration, several hundred stocks were
all through as far as the longer-

average

While

climaxed

has

ket

any

Consolidated Min. & Smlt.

Lockheed

Minneapolis-Honeywell
of the

one

as

In the eight months following
September 1953, the low montn
years
of in the industrial average that is
advancing trend with a number supposed to resemble June 1949,
of fantastic stilt formations dur- GE made up for its long neglect
By the time uncontrolled
psychology in the regulated

forecast contingent
drastic improvement in the

make

on

or

year

to t h i s
advisable

yielding
may be

it

temptation
to

another

for

advance

of

two. i

;+

Otis Elevator

Electric,

1943, and February 1946, ad- sold below 66 and in May and
vanced 254% as against 60% for August it established new high at
the Dow-Jones stocks.
74 and 76.

points a year there is
temptation to project this rate

.hundred

+/

-

National Lead

General

reached 64; fn December fit got
above 72.' During 1953 GE never

were pos-

in

'

-

ouSkTding^Te^de7s"ofV'the"^954

average.
As a < result the low
priced group between November

of a

.

"

Lily-Tulip Cup

.

the D-J

sible with most stocks

back

Corp.

Case

I.

Celanese Corp.
Coca Cola

i

McGraw Hill Publications

•

.

63. Unlike the situation following 1946, it. did not take five
years for GE to exceed its 1951
high.
In July 1952 the stock

outright purchases than

v

,

Now
in

point

Tele.

&

Tobacco

McGraw Electric

|

During the next 24 months
not been entirely the result ot it held in a range between 32 and
economic trends influent'ng earn- 43, comfortably below its
1946
ings of the two groups. Economic high. It started the 1949 recovery
factors have, of course, played a from a June low at 34 and seven
has

J.

-

K-mbeHv-Cl^rk

Tele.

Canadian Pacific

Co.

(B. F.)

Goodyear Tire
Ingersoll Rand

Westinghouse Electric Corp.

Ad- priced stocks because they offered
able far .greater percentage profits on

Republican

a

before

Goodrich

servative 10 point advance, from
n ce of the low
42 to 52. From February 1946 to
compared with May 1947, GE declined 20 points
average

Smelting & Refining

Amercan

rela-

worse

Cyanamid

American

Telephone

l\«Llfu™!da®diitST^8

ministration

American

-

Vanadium Corp. of America

stocks as
D-J industrial

the

:

con-

progressively

tive p e r f o r m a

American Airlines

General

ary

The

r

further

.

tor

£oundation

outstanding

Amerada

>

General American Trans.

a

popularity

the

Freeport Sulphur ;

below

quietly building

been

members of this group are:

Zellerbach

Cup
Douglas Aircraft

their

1952-1953,

t

:;.ttween the

Progressive deterioration in the

The

point advance

stocks as a group since
1946 is that they did so very much
priced

technical action of the low priced

performance of the blue chips
reflected in the first hundred

rior

ulative stocks. In the regulat
market, completely uncontrolled
mob psychology frequently plays
a far more important role than
logical economic factors. The most
important reason for the relatively poor performance of low

priced

priced
Hughe.

position of high grade investment
issues while impairing the teehmeal position of low-priced spec-

medium

and
James F.

which.!have, progressively favored the technical

have

considerably

their, peak

Ex-Cello
-

attractive
caught up
buying

as

got

Cutler-Hamnr.er

fairly

from

recovery

issues

stocks which are,

or

regarded

were,

1946

in this group

below

Crown

recent

a

or

Included

number

are a

Champion Paper & Fibre
Cincinnati MiLing Machine
Container Corp.
Corning Glass Works?

since September 1953

all

1952.

Carrier Corp.

make

to

and

Bulla rd

The chief technical defect in the

attempt

biou-o ts scattered between

-

Boeing

market.

bull

erated

Mr. Hughes first reviews

considerably below stilt formation

Co. of America

m

American Rome Products

permit two more years of accel¬

trend of stock prices from 1945 to
1954, and then states that, on the basis of past performance
record, it is impossible to be positive that a business recovery
in 1955 will guarantee a continuation of the advancing trend.
Says visible technical relationships resemble the situation in
the spring of 1946 and the summer of 1948, when the market
turned down regardless of favorable business trends.

Commercial,and Financial Chronicle.. Thursday, October 28,*1954

the

technical fact that there are hun-

Reed

is

now

with

Atwill

Company, 605 Lincoln Road.

and
-

JVblume 180

Number 5372 ...The Commercial and Financial Chronicle
(1711)
there is

Are Labor Unions

Destroying
Enterprise?

Free

By PHILIP CORTNEY*
President of

Economist
economic

and

coln,

President

Electric
even

Co.
far

so

tive

of

economic

of

physical

When

full benefit of increased productivity

tions are

stantially increased workers* share of national
,

income.

lii

publicly. Even

business¬

more, we

Yet deeply buried in

together

men,

.with

most

tics

of

a n

that

coddling

are

d

to

pamper-

ing the

eral

those

the

will

be

-avail.

of

of

to

show you

or

Who

spectacular

companies,

both

the workers

at

or

faculties

i*

the

businesses
lng-

Philip Cortney

enterprise.Besides, the

fortunately they

the

at

are

:

,

structive

of

free

the

social

society,

fabric

Will be

Let

by the labor unions during the

W

sential

of

tem-is

a

wages

so-'

if

our

not

process. We

free enterprise
to

succumb

in

come

sys¬

the

should not forget that

an

•

•

Workers Absorb Whole
Of Increased

As

we

have

a fnse

in

seen

bankruptcy,
to

a

S.

an

or

in

is

,

a

transmit

relatively stable currency, is
the benefits

commensurate

with

This

portant

as

of

tech-)

declines

in

the

people

are

is

the

im-'»

more

great majority of
employed
in
jobs
where there is hardly any tech¬
nological progress.
It

or

used

ted that

pensions, that this should constitute a pattern' for all other conto

into

real costs.

Motors

wages

:

conse-:

nological progress to consumers at/
large by prompt price reductions:

when

General

increase

worst

lower prices. >
prices make for,'
larger consumption by the jyhole"
community, one of the necessities»'
of a dynamic industrial
system,1,
compatible with the maintenance
to

go

Steel

the

result

of

These

are

fallacious

%

to

one

be

generally admit¬

of the secrets of

ris¬

a

ing

standard
of
living in
United
States
was
higher

be

negotiated between
employers and labor unions. This
view is not only absurd economi-

higher

prices.

er

the
and

wages and lower and low¬

nominal

two

This announcement is neither

simply

■

*/

an

offer to sell

nor a

solicitation of an offer to buy

The offer is made only by the Prospectus.

•

.

economic

....

What this
wages

slowly

and

progress

was

means is

that

increasing
technological

were

that

translated

Continued

any
..

.

on

mainly

page 12

of th

ese

De ben tares,

.

theories which have taken hold of

many minds, and of bad laws due
t

mainly to demagoguery.
t The
labor
unions
have
come
to expfect an increase in
wages or
other benefits each time a con¬
tract

is

reopened

How could

it

labor unions
dues

$100,000,000

for

negotiation.
be otherwise?
The

are

mainly concerned

^vith justifying their
the

,A

'

Continental OilCompanu

existence and

they receive, regardless

of means and
consequences

J

to the

.

a whole, to the work¬
they represent, or to the em¬
ployers. This situation is only too
human.
Besides, the LVnployment

economy as

r.

-

':

:rv

•"

,

■

■r

;

-

■-

i

i
\

:"

.

of

1946

as

interpreted
politicians
tion

as

long

as

can

it

by

has

labor

means

come

be

to

unions

and

1, 19.;

Due November 1,198i

>;'■

essentially infla¬

;

;

f '

Interest

payable May 1 and November 1 in New York City.

.

v

a
way of life, at least as
the inflationary joy-riding

last without

upsetting the ap¬
Inasmuch, as the bar¬
of labor unions is

ple-cart.

gaining

power

increased manifold when

Price 101'A% and Accrued Interest

have

we

full employment and inflation, the
labor unions have come to have a
Vested

interest in inflation, even
they profess to dislike the

when

"

rise in prices due to inflation.
I

Let

\

examine,

me

Jew of the
bad
i

Copies of the Prospectus

Consequences of Bad Laws

,

laws:

(I)

one

by one, a
of our

consequences
»

.

The present labor laws

putting

in

serious

are

jeopardy

MORGAN STANLEY & CO.

the
great majority of small and me¬
dium sized businesses, by which I
mean

Jet
o

I

n

employing up to
1,000 or 1,500 workers,

understand this, we must keep
mind that the Wagner Act, like

the

Taft-Hartley. Act, was written
With consideration given mainly to
the problems of large corporations
confronting powerful national la¬
bor unions.- As
when, discussions

lic

BL YTH & CO., INC.

businesses

us say

-

a

matter

of
on

*

or

becomes

J

LEHMAN BROTHERS

,

*

GOLDMAN, SA CHS & CO.
LAZARD FRERES & CO.
,

SMITH, BARNEY

STONE & WEBSTER SECURITIES CORPORA TION

'

,

S. SMITHERS & CO.

UNION SECURITIES CORPORA

ON

pub¬

are

the Taft-Hartley Act

invariably, obvious

WHITE,

it

An address

by Mr. Cortney before the
As so-' "
fjatiou, Berkeley,-Cal., Oct.-19,1954.'

California-Personnels-Management




WELD & CO/

that
October 28,

*

KIDDER, PEABODY & CO.

Incorporated

/

fact,

held

•

-

THE FIRST BOSTON CORPORA TION

HARRIMAN RIPLEY & CO.

-

platforms regarding the labor

Unions

be obtained from only such of the undersigned as may legally offer
compliance ivith the securities laws of the respective States.

may

these Debentures in

„

*

"

195^..

DREXEL & CO.

'■
!

Thirty Year Sinking Fund 3% Debentures
Dated November

{

b

'

ers

Act

/

lower

of

|s the habit to consider that
when
a
large corporation like

grants

of

Benefit

Productivity

quences of labor unionism derives>.

Because

will

company

or

One

ing translated

re-

bosses

cases>

(II)

'

•'■i

ominous alternatives

or

facing.

are

-

industry!

industries
are
absorbed;
in increased wages instead of be-:

things: (a) a right cally but can have the most serious
to strike, and
(b) a prohibition^ consequences for corporations unagainst the employment of work-'able to grant wage raises,
ers ready and willing to work at»
"lntse comments leau to the "ob¬
mean

of

employers

anized

easiei

it
out of business.
What makes the situation even

of, u.

ea

Collective bargaining has
to

be

the labor bos£es to create

tracts

at Co lective Bargain ng

unions

wages:*

on

the

make clear that I do not
the labor unions for the

blame

the

result

accord

an

me

•dangerous
We

a

■,

+h

threatens

free.

called collective bargaining.

for labor unions.

room

no

as

would

give [n :0nly when
near

the animosity and tension created

in modern society
with big industrial units, but there
are a few safeguards which are es¬

regimented
controlled economy, wherein there
or

deplorable

the country;*
fact, in Sweden and.'

between

labor

may

of

from, the fact that increases iiu
productivity- in the highly mecb-r

'

power.

_,

animosity between employers and

even-

in

termine

same

time destroying the free
enterprise
system. The result of their poli¬
cies can be either inflation de¬
our

war,

a^ainst

safeguards

^relations? *.worse

There may well be no other way
than collective bargaining to de¬

Un¬

,

^pels

seriously-undermin-.

the morale, courage, and

*

negotia¬

^^,1° obtain because the
f"£*1° Justify the
labor unions com-;

medium-sized_

the health of those engaged

em¬

Economic Power of Labor Unions

committing
suicide.

is

and

of

decisions

rest

tions.

°+ r.esP°osibility and showed rethls see+TS

as

unions

small

such

jeopardy.;

,if, a11 the labbFA bossef had

not

became

1

some

The situation

cent

of

in

put

,.

between management and workers

are

seriously

therb be

on^xr

serious finanriaUHif

secure

-

to the veto of the con-.'
federation of all other unions not:
involved directly in the

that

proves

cor¬

is subject

no avail because

could

one

abuses 0f [abor union

The small and

The present tug of

Ors

■

'

verv

the

on

point

and

larly for the protection of small!
and medium-sized businesses, that

prices

are

In

there

remedy, overcoming all legalis¬
tricks, the business may-* be

very

S

businesses

have

11 is therefore essential, particu-

an increase
at the

raise

that

their

sequences

firm,

a

unions, but all

experience

'SkEw wworkers:
bet
een.lab
and employ-

many

labor

unions

least

as

the

the

In

time while wn,,kinp

tell

and

big la-u

k" recently 1'®°°
!? seen-

and

by

ever

v

for

large

tic

they increase wages, but for the,
overwhelming majority of t bent a'
strike may mean bankrutpcy, or

General Electric,

will

in

only unable to increase prices

These

unnoticed

goes

for the

labor

by the time

corpora¬

useless and senseless?

that

believe

the

fact

as

steel

beat

business

at times have

claim

such remedy is of

eco-

ployers involved in these strikes,
of which are completely

why

I

the

strike.

violence by

a

big

of

that

able to pass increases in
wages on
to
the
buyers, and consumers,
should be most careful of the con¬

a
remedy in law against arbi-. Holland
trary
action
in
picketing; and reached

have

medium-sized

story of the suffering and anguish

It is my

-purpose

of

public.

no

the statis¬

discover the fact

on

w.
We

wages

snrri0

constantly 200,000

men

longshoremen,

conspir¬
silence

of

acy

300,000

can

are

being strikes not

unions.

The great gen¬

-

there

match

70%. of capacity.

published by the Department

of Labor one

the politicians

i

?
in

large corporations and big unions.

least

at

a

workers.

.

subject

unions,

should

we

that while the

out

can

people

practical

about the

by

conclusion

porations like U. S. Steel, General
Electric and others, which seem

accepting
the labor

consequences

Some

vious

is

in the form of

prllTip? !? !

the debaters have in mind the
po¬
sitions interests and problems of

labor

.

able
prac-

business-

of

put

going

is

all

the

choice

conditions

deadly

bor unions, this is not the case for
small and medium sized businesses

from experience that
businessmen dislike to discuss the
of

power

mind

through higher wages in
highly mechanized industries, and thus prevent lower prices.
Concludes, despite increased wages, unions have not sub¬

speak

we

the

or

for

that

because strikes

intimidations, threats, etc.

;

has

unions

to

employer

means

purposes

the

but also that

power,

power

This

man

went

equivalent

the

wages

pay.

tical

tending parties during negotiations. ^This power takes the form

nomic

f know

Lincoln

that collec-

say

bargaining- is

ployment of workers ready and willing to work at the wageT
the employer is able to pay. Maintains workers now absorb

I

the

Cleveland,

to

as

the
to

war" because there
is no
criterion but power to
guide con-

Coty, Inc.

laws, finds collective bargaining has come to mean two things:
(a) right to strike; and (b) a prohibition against the em¬

'

of

of

to

Mr. James Lin-

"civil

,■

industrialist,' in contending that" the rising
of labor unions is the consequence of bad

power

criterion by which

no

determine wages.

11

SALOMON BROS. & IIUTZLER

12

; The Commercial and Financial

(1712)

Continued

from

11

page

Unions

^

.......

;

•

Labor Unions

Destroying
Enterprise?

Free

into lower and lower prices.
1914

fore

it

took

about

nominal

increase

to

30

Be-

by
50%. Rufus Tucker computed that
between

1860

annual

age

and

1932

increase

the

in

aver-

money

increase of

2.1%, and the annual
real wages slightly less

than

Prices

wages

was

1%.

produced
were

and

of

most

mass-

manufactured

decreasing.
1920, wages,

goods
Between 1914

by
immigration
laws, went up by about 120%. Between 1941 and 1951 wages went
up also by about 120%, due basically to monetized budgetary defiinflation

cits

and

banks.
per

and

influenced

our

credit-inflation

to

But

present

wage

unit of production

are

than double those of 1939.

by

costs
more

A Ford

sedan automobile which cost $680
1939 costs now $1,750.
of

the

crucial

of

events

economic history, which has
weighed
on
our
destiny
ever
since, was the rise of 120% in
wages during World War I, withour

out
to

any

rise

in

-

productivity, due

monetary inflation

and

the agriculturist

third of

to the

gaging

on

Statistics

the

share

cant.

the

of

national

the

on

detriment

great

the

of

is

and

eco¬

mass-consump¬

economy like ours.

said

I

in the

What

ers.

omy like ours
on

a

between

should

years was

'

i

'

rather

houses,

like

<ttno rtri

*1UZJ)U
—;

be

deficit

on

industrial

called

the
and

I

mention

to

etc.

in

passing that the high

102.50

for

building

brooder-

spending,

also

houses

mand confidence because it is

pected to fall in value.
be

have little
clothing."

perpetual

wages

paid

and

a

If
need

free

shall

no one

of

job-seeking

remain

men

decide

that

we

permanent wage controls,
also have

to

we

control

profits,
having thus blocked the price

mechanism

long in¬

shall

we

get

regi¬

a

mented controlled economy.

growth
millions of

see

should

we

and

economic

likes to

the

—

regulation of collective bargaining
or the acceptance of a steadily de¬
preciating dollar."

boom, which spells in¬
can only bring disaster

terruptions

Nevertheless it

country will even¬
to decide which al¬

ternative is the lesser evil

our

ex¬

That will

if the

as

tually have

left

rather of

or

hard choice.

a

looks

champions of so-called

flation and

great deal

the wage structure and

relation

on

The labor unions have be¬

the

come

they

new

approve of

depends

choose, therefore, between sub¬
jecting collective bargaining to
fairly drastic control and accept¬
ing a dollar that does not com¬

installment

change of goods.
The maximiza¬ in its wake or the end of
tion of production in a mass-pro¬
society.
duction, mass-consumption econ¬
No one can

should

iy14
1929.:——

workers and farm--

and

"full-employment,"

is in reality a blockage in the ex¬

f0u0ws-

the! industrial

(IV)

call over-production

we

that
for

over

duction of the higher paid work¬

and

to

in

monthly payments

mortgages

goods

1930's the farmers and

unemployment in the United agricultural prices. I am strongly
States during the 1930's can be convinced that our wage-structure
is imbalanced to the detriment of
explained in a much more sensiboth investment and mass con¬
ble way by our wage policies than
sumption; this will become obvi¬
by any other theory.
It is interesting and important ous as soon as we shall stop stim¬
to have present in our minds the ulating our economy by artificial
changes in prices of a few prod- means like so-called easy money,
ucts of great consumption:
subsidies, extremely easy condi¬
tions
for
buying homes, which
The price of an Underwood Size

imipigration laws. This promoted
a
basic maladjustment between

generally explained

are

steadily drops.

"The community may be forced

loans for the purchase of durable

before, in the 1920's,

the lower paid third of the popu¬
lation were unable to buy the pro¬

the
the popula-

Typewriter by

goods

fixed number of dollars if the

a

value of the dollar

the grounds that many people have
committed so large a portion of
on

As

in

,

"The rather spotty situation

to

28, 1954

people cannot afford to hold, over a
long period of time, assets, payable

long
Reserve
a

retail trade and the decline in soft

their income to

tion

acquire

Federal

nomic equilibrium necessary to a

dustries hampered investment and
construction on account of the rise
in costs. The economic stagnation

standard

the

mass-production,

tion, who were unable to buy the
production of the higher paid
workers.
Moreover,
the
high
wages in the durable goods in-

as

| ago

to

Not

lowing comments:„

income

However,
the
impact
the wage structure,

great

income

maintain-'one.

Bank of New York made the fol¬

to prove

seem

their

and

time

distributed to labor is not signifi¬

a

paid

lower

Impact

that the impact of labor unions on

sion, together with wrong monetary policies, is one of the great
culprits of the depth and length
of the 1929 depression,
During the 1920's and 1930's
the high wage policy in the durable
goods
industries
impoverished

Small

National Income

and

in

One

tural

years

wages

*

(III)

collapse of the agriculprices. This credit expan-

prevent

Have

Increasing Labor's Share of

Chronicle...Thursday, October

Our choice is clear: If

.

we

"<

do not

put an end to the excessive power

unem¬

ployed for long periods of time.

of

But it is about time that
every¬
one, particularly the labor unions

shall get either a worthless dollar

and the

or

politicians, understood that

large-scale

are

causes

of

cies

not

economic

our

of

due

credit,

and

so-called parity prices, artifi¬
cially held low interest rates, ex¬
tremely easy conditions for buy¬
ing homes, deficit spending, easy

disturbances, and of unem¬
ployment.
They contend that we
cure

that

aware

at

eco¬

nomic

can

balance

easy

abuses

means.

concerned with the

economy.

be

mainly
to
bad farm poli¬
wrong wage structure,
sustained by artificial means like
buying agricultural commodities

unemployment is

avoid or minimize booms in¬
stead of trying to perpetuate them

The modern economists

we

is in an unsound and un¬

economy

to

by artifical

should

unions

labor

regimented

a

We

the best way to avoid depressions
and

monopolistic

disturbances

and

making without
money, etc.
■
t
knowing
their
causes,
goods
Too many people have come to
mainly by inflation of money and
began to slip
make only more serious the evil
believe that inflation is a "cure1954 J:: 1750O
*
credit and large government ex¬
World War I.
!«
consequences of installment sell¬
:'ff\
.:
all" for all the mischief commit¬
penditures. The advocates of full
■.*
ted by wrong policies with the
I|t is this fact which is responsi-: The price of a Ford Tudor Se- ing on our economy.
employment would even prevent
blei for our agricultural policies dan by
What are the effects, for in¬
years was:
'
;
needed readjustments which are help of demagogic or bad laws.
of (restricting output, or for sub1Q1.
'
stance, of the high wages in the inherent in the
Much as I wish that these optim¬
*07*00
very way a free
sidizing farmers ,* as a means of
"
** *
o.uu
.
automobile industry on our econ¬
ists
should
prove
right, reason
society functions.
restoring "price parity" between
1929
500.00
and
omy as a whole?
The automobile
historical
experience
bear
Worse yet the labor unions ad¬
agriculture and industry.
It is.
1939
680.00
is an instrument of necessity and
sufficient
evidence
that
there
vocate
full employment policies
the same fact which is responsible
of pleasure.
will be a terrible day of reckon¬
1954__
1 750 00
People have come to without
ever* mentioning
wage
for: the high tariffs, instituted at
■'
desire an automobile whether they
ing if we continue our present
rates, if not for requesting higher
the end of World War I. The high
Man's Shirt:
can
afford it or not.
absurd economic policies.
The high
wages in the name of "purchasing
wages of our workers have come
1914
$1.50
wages in the automobile and an¬
power."
to be protected by the immigraNow, one of the main
The Remedies
iqoq
* qq
cillary industries have the result causes of
tion laws and by high tariffs. The
unemployment is pre¬
*
Is there any hope for escaping
that a great mass of the lower
disparity created by the huge rise
cisely high wages and a distorted the dilemma
i9o4___4.25
of
inflation
or
a
paid part of our population, most¬
structure of wages, due to monop¬
in wages was a factor in the credMan's Shoes:
regimented economy?
ly occupying jobs which hardly olistic
practices, or to violence, or
it expansion policy of the Federal
The remedies are at hand if it
1914_
$3.95
benefit directly from technologi¬ to lack of
countervailing power were possible to
enlighten the
Reserve Banks in the 1920's who
1939
5.00
cal progress, are either unable to of small and medium-sized busi¬
people on the dangers confront¬
thought that they would thereby
nesses.
1954
11.00
buy a car or are heavily morting them, and if it were thinkable
It is simply absurd,to leave the that the
politicians would gqt the

ers^

as soon as

agricultural prices
after^ the end of

>

,

z 2 115.50

1939..'

.

'

"i automobiles

and

durable

~

_

determination
of the wage

listic, unions

Full Employment, Higher Wages
And a Sound Dollar

The
ment

Equipment Trust Certificates

/

and

$190,000 annually November 1, 1955

to

is

90%

that

full

employ¬

inflation

(as

the

the other day).

said

a

sound dollar.

ployable workers, the bargainging
power of
the labor uniojns be¬

guaranteed unconditionally as to payment of par value and dividends by endorsement
by the Bangor and Aroostook Railroad Company

comes

(accrued interest

1955

1.45%

to

The bargaining

as employers do not re¬
sist increases in wages when busi¬
ness is good.
As wages rise, costs

1965

2.95%

2.75

1966

2.975

ucts rise.

2.80

1967

3.00

1.80

1961

2.05

1962

1958

2.25

1963

2.85

1968

2.45

1964

2.90

1969

rise, and the prices of the prod¬

3.00

1959

3.00

are

Issuance and sate oj these

Certificates are subject to authorization by the Interstate Commerce Commission.
The Offering Circular
may be obtained in any State in which this announcement is circulated from
only *
such oj the undersigned and other dealers as
may lawfully offer these securities in such Stale.

In

our

country, the cost

•

farmers

get

WM. E. POLLOCK & CO., INC.

McMASTER HUTCHINSON & CO.
i




to

the

anti-trust

and

medium-sized busi¬

good.

businesses

is

not

It behooves both the

gov-*

ernment and

laws

big business to adopt
policies which should

and

protect

small

businesses

and

from
and

pressures

medium

the

sized

unbearable
of

consequences

labor union practices. Neither
free
enterprise system nor

oux

the
labor unions will survive
the at¬
trition, and slow death of
small
and medium-sized

businesses.

With Oscar E.
.

automatic

MIAMI, Fla.
is

Oscar E.

associated

with

Building.

increases

With FIF Management
(Special to The Financial
Cheonicle)
-

MIAMI, Fla.—Vincent

T.

Cor¬

connected

with

tina

has

FIF

Management Corporation

labor

recent

thus

aggravating and
accelerating the destruction of the
*

J dollar.

become

of

Denver.

,

"

v

*

\

!

ter states:

;

--

!

"Nothing less than the integrity
is at

.

!

■

of the dollar

:

Dooly & Co., Ingraham

contracts

that

.

j

Bernard R.

—

now

-

Dooly

(Special to The Financial
Chhonicle)

Keegan

This is the fa¬

In his last book Professor Slich^

.

have so-called escalator provisions
which will soon become express

of

elevators,

October 22. 1954.

essential

seem

Contrary to the experience of
the large corporations, particular¬
ly of those which enjoy govern¬
ment orders, the profit picture of
the great majority of small and

rising spiral of wages and
prices, which destroy the purchas¬
ing power of the dollar.
On top

FREEMAN & COMPANY

THE ILLINOIS COMPANY

unions

of small

^y the so-called "par¬

for their products.

t,

;

measures

nesses.

tied up to the prices of indus¬

ity" formula.
When the cost of
living goes up, the workers ask
again for higher wages, and the

HALSEY, STUART &. CO. INC.

R. W.'.PRESSPRICH & CO.

the

urgent: One is to subject the

labor

mous

s

resist

laws; second, to prohibit picketing;
and last but not least, to amend
our labor laws so as to
give con¬
sideration to the special problems

living goes up the more as the
prices for agricultural products

trial goods

.

to

of

1956
1957

'

of the labor unions is the

greater

be added)

2.60%

1960

excessive.

power

MATURITIES AND YIELDS

Three
and

medium-sized

When unemployment gets under
certain percentage of the em¬

1969, inclusive
a

To be

truth

is

We can't have full
employment,
higher and higher nominal wages

(Philadelphia Plan)
mature

the
em¬

fortitude

of the electorate.

pressure

or

ing else than inflation.

"Economist"

intestinal

and

monopo¬

violence

to

ployment by deficit-spending and
cheap money, which means noth¬

Bangor and Aroostook Railroad
Equipment Trust, Series P, of 1954
To

rates

wage

and

coercion, and then request
government to maintain full

$2,850,000

2%% Serial

of

structure to

stake, because

With

Goodbody & Co.

(Special to The Financial
Chhonicle)
;

SARASOTA,

Fla.

—

Cecil

' v. *

G;

Bundy has become associated with
Goodbody & Co., 21 South Palm

Avenue.

,

'

*

•.

•"

'

•

Volume 180

Number 5372... The Commercial and Financial Chronicle

icant

Basic and
By

little

tor

minds to devote their lives

relationship bebetween

viduals and it affects

our

civiliza-

In

everything we read. In
everything we hear. Wherever,
see.

we

to fundamental science.

It

go.

celerate

Sees need of better

understanding of the relationship of the
production processes to human progress, and
says our problem is to adjust national policies to a clear real¬
ization of the possibilities of technology in
promoting progress.

power

of

economics

the

nations,

tion in many other ways. It stands
out dramatically in everything we

human progress,
age young

little

too

groups
within nations and between indi-

expand the creation of wealth and thereby promote
holds we have failed adequately to encour¬

way we can

is

It

Too little

involves

tween

Prominent industrialist, in pointing out that basic knowledge,
combined with fundamental and applied research, is the only
•

in-

investigated,
frequently ignored. This fac-

Too

Chairman of the Board, General Motors Corporation
*■

understood.

discussed.

P. SLOAN, JR.*

ALFRED

limiting factor of great

fluence and potential danger that
cannot be overlooked.
It is too

Applied Research
Needed for a Virile Economy

■

13

(1713)

havior.

the

to destroy

is

That

has

the

to

ac¬

has

also

civilization.

our

factor of

tific

human

be¬

To

appraise human be¬
havior requires the services of a

AAA* in Chiracm

^°°at}oay AGds ln ^HlcagO

(Special t0 THE PrNANC,AL Chronicle):
CHICAGO, 111.—Paul H. Robinthe other hand, is too often d'om- son is now connected with Goodinated by weakness, the vicissi- body & Co » 1
North La Salle
tiides, the emotions, and the self- Street,
knowledge—the approach of

the

engineer.

ishness that

Human

so

often

nature,

on

characterize

human behavior and too little by
the greatnesses of human reac¬
tions.

of the

One

nature

man

human

more

progress.

With Reynolds Staff
(Special to The Financial Chronicle)

major problems

of the future—a real challenge to
our
civilization—is to bring hu¬

the

power

It

progress.

I believe to be clear. Human progress has been actuated by scien-

in

line

with

We must create

SAN

Friede

M.

connected
425

Calif.

FRANCISCO,

William

with

has

Reynolds

—

become

&

Co.,

Montgomery Street.

leadership and develop values in
the social sphere which will meas¬
ure

up

to

our

nological

scientific and tech¬

accomplishments

and

Joins

Goodbody & Co.

(Special to The Financial Chronicle)

under-

MIAMI, Fla.—William L. Shaw

only of trained professional engi- stands and can value the inneers to deal with these problems,
tangibje. Such an
appraisal is
to any pattern we may elect to but trained
engineering leadership
use.
But all we do is to take from to translate these scientific ad¬ largely outside/ the : province of

th® materlal Pr°gress they have has become affiliated with Goodgiven 0Ur c,vlllzatlonbody & Co., 14 Northeast First

social

'

Whatever wealth

we

may

»

and give

some

way

can

we

and

tion

ln

■%

Sloan, Jr.

edge.

just

before

an(j

extending the
Cancer
levied

curse

clear

values

of

to

me

that

human

say

the

that it has

material

progress

have

of

human

behavior.

The

reason

knoyriedge, , profundamental research

to support the process

Avenue.
'

Chicago, ill.—Frank Harmon
been

abided to the staff of

David A. Noyes &

La

Salle

far out-distanced the advancement New

Street,

York. and

Co., 208 South

members of the

Midwest

~

Joins Federated Managem't
(special to the financial chronicle) •»;
WORCESTER, Mass.—Alfred J.
Ford, Jr. is

now

with Federated

Stock Management Corporation, 21 Elm
Street.

Exchanges.

-

,

;

us.

.

This announcement is not

/

offer to sell or a solicitation of an offer to buy these securities.
offering is made only by the Prospectus.

an

The

by

of effec-

span

the

—

greatest

nature

$3,000,000

the

on

now for the first
time in history under heavy scientific attack. , Given talent, sup-

,constant,p0rtjng

basic

Wisconsin

and time, does

resources

anyone dare say that cancer can
survive the challenge of concentratecl coordinated and persistent

of applied

research,

Michigan Power Company

First Mortgage

advanced -engmeering.
sdenti(}
ffort? Scienceand tech_
processes.-,
;
...
Hrarlv
Now I believe history will
the production

and

Suffice it for

seems

Noyes Adds

(Special to The Financial Chronicle)

1 ? a.i,crT|a.,* human race—is

;

He must-have.a

by

„..

the people. They see, as
before,
the . marvels
of

tjve

The fundamental t<wl. With, which
the engineer works is basic knowl-

Vlded

David A.

confine

must

Sr muting better living, better health

healthy, pout-

i

A

the fields

in

research, capitalized by engineering interpretation, will accomplish miracles in further-pro**

atrial- economy
operatmg lp. a
Alfred P.

who

Basic

by. a

.

engineer

.

himself to the physical realities.

~

developments, lie

°logical

processescap-

^v

who

.,

.

.

the

tech¬

our

science.
Personally, I am conyinced that tremendous scientific

is

thrpugh tech-

italized

of

never

mote human

n

v

of

of atomic energy, electronics and
the like, have fired the imagina¬

pro¬

progress

life

The achievements

expand

wealth

the

nological age.

the creation of

thereby

into

vances

to others. The

only

philosopher

pro-

•

.

Dated October

15, 1954

Bondsi VA% Series due 1984

-

--Due October 15, 1984

-

■

dem-^"°0S_aVor^vLun?

onstrate that far.too much of

have relied in the past, and which

'.

of production insures greater
length and stability in our ef¬
fectively, has been associated with ,nom£ life. Cur
problem then is
foreign sources.
We have been no$ whether these
things are pos-fbetter
exploiters than creators. sible. 0ur
prGblem is to adjust
Somehow, we have failed adeour national policies in order that
quately to fire thei imagination ot tbe
clearly realizable possibilities
our
own
, brilliant
young minds of our science,
technology and
..

•..

■

.

..

,

,

.

-

Price 10and accrued interest

'

the engineer has capitalized so ef-

.

.

yqth an urge to devote-their lives

to the

off und amental

cause

economic life
jn

terms

the United States called attention
...

to .the

significance

quacies

of

and

re¬

the

ne¬

to

and

programs

inade¬

basic

present

our

cessity of expanding them to
support applied research and
advancing technology which, in
turn, advance human progress and
national

security. Whatever we,
engineers,
or
as
managers,

whatever

tribute

we

in

be,

may

our

own

can

as
or

con¬

to en¬
of basic

the

research,

"assuredly "to"'thaTd^gree

will

be

we

I have

rather

expansion

expanding

the

tools

me

based upon the experience of
over
50 years on the American

significant the need for

foun dation

broader

a

Zelrch

of bask

may

be, it is equally true that the chal¬
lenge to the traditional disciplines
of the engineer is

day than at

role of the
engineer, yesterday and today. So
far as tomorrow is concerned, his
role stands out crystal clear. The

rapld advances

their increasing penetra¬

nology,

into

tion

far greater to¬

for science both here

and

aggressively

moving

a

research

tn

forecast

the

higher

among

living

us

imagination

neacetime

ene^y

nuclear

of

Who

area.

evening has the

in

future

terms

standards,

of

better

health, and the promotion of hu¬
man

progress

physics

en¬

chemistry, biology or some
combination of
the
traditional
scientific
disciplines

ergy,

specialized
are

by

no

ground.
nature

In
of

any case,

the

the

in

means

back-

whatever the

evolution

or

revo-

lution of science may be, we shall

«rui

'

an

•From

occasion

ever-growing supply not

an

address by Mr. Sloan

of' the

of

on

the

to <him of
Annual Dinner

presentation

the. Hoover Medal -at the

the American

Institute

of

Consulting

as a

scientist who seeks additional

basic

knowledge.

true of the
a

It will

'

-

-

'




<

*

•

:

offer to sell or a solicitation of an offer to buy thesi
offering is made only by the Prospectus.

an

The

•" r.

ties.

$10,000,000

of

,

economic
,,

.

,.

Florida Power &

Light Company

also be

engineer in his role

proponent
u.

as

First Mortgage

states-

,

Bonds, VA% Series due 1934

.

.

thJ

Due November

Dated November 1, 1954

1, 1584

service as a humanitarian.

The engineer knows that progress

in

democracy is

a

individual.

than

collective

more

believes

He

Price 100.877% and accrued interest

the

basic PurP°se of human effort is

h"ma" nrogress
His

,0
broad

scale.

clear

to

him

basis

of

human

a

training makes it

that

the

essential

progress

That

is

ex-

is the

catalyst with which he works. He
accepts the fact that
is

a

fundamental

a

The

Prospectus may be obtained in any State in which this announcement is circulatedfrom only such
of the undersigned and other dealers as may lawfully offer these securities in such State.

free society

field

of

unlim¬

ited

opportunity. The incentive is
twofold: first, individual accom¬

the

plishment,
each

of

to

us

responsibility of
ourselves; and sec-

ond, the responsibility each of

owes to

part.

for

human

It is one to

engineer
moves

But

us

HALSEY, STUART &. CO. INC.
R. W. PRESSPRICH

BAXTER, WILLIAMS & CO.

Such

is

the formula

progress,

as

which I

am

will

I

see

sure

-subscribe *

as

one

& CO., INC.

THE ILLINOIS COMPANY

HIRSCH &, CO.
FREEMAN

COMPANY

THOMAS

COMPANY

it.
the

he

into the future.

there is

WM. E. POLLOCK

SALOMON BROS. & HUTZLER

& CO.

the society of which we

a

■-

Engineers, New-York City, Oct. 19, 1954.
.I *
) Li.*k: ■
■
'
hoi.r

This announcement is not

tn,0

0 t e .en&ineer> not opdy
bJs
Professional capacity, but in his
as an administrator and

are

need

,

econ¬

the engineer, of neces-

Jt 'thS panded knowledge.

nuclear

of

because

moment

van

<

^TenTaccelSnfh^
P
Vf

in other ways? While
be in the

may

the

of

sectors

abroad

forward.

The postwar age is in every sense

this

all

omy mean

time in the past;

any

October 27,1954.

.

to present the

scene,

SLr nnt^nlv fn h^

also, that however

say,

HALSEY, STUART & CO. INC.

tried, gentlemen, in these
remarks, which

are

with which the engineer works.

is

•L3

disjointed

way

courage

Let

can be capitalized
human progress and

of

Recently the President of happiness,

science.

search

Copies of the Prospectus maybe obtained from the undersigned.

highly signif-

MULLANEY, WELLS & COMPANYOctober 28,1954

a

/

WALTER STOKES & CO.
d i

..I

;

The Commercial and Financial Chronicle

(1714)

14

dent's

the

recent

ladies

of

them

Raw Materials Director last month.

the

diggers

haps,

their suitors
for

per¬

real

is

gled

dan¬

those who

are
as a

sort of dubious

amination

dowry, most of
Which
is

older

to

hard

I. Steers, Jr.

asked

not

anything

to

before

the

National

Beard,

of

hopeless job.

been

by

as

Steers

Industrial

York

New

Mr.

matter

Oct.

14,

useful

a

completely irrelevant in
an industry which

ready been anticipated in pushing
the stock up."

has grown in 15 years from an
equation whispered in the Presi-

believe

I

this

Price

% Increase

Present

1954

Foote

Over 1953

Indicated

High

1954

15

23

36

13.75

'9.40

Mineral

Lindsay

50

Chemi

Corpoi

Homestake

Inst

3.4

144

39

0.8

105

24

a

General

and

25

West

1.5

Consolidated

Rand

.

,,

Price

'

5.0

0.28

47.5

3.4

American

1.00

0.50

7.0

7.0

Babcock

0.35

14.2

5.5

Blaw

/

■

/

.

.

-

4.8%

•.

j

/ ACF Industries
;

Average

•

-

Jones

Industrial

Average
je

«■

.7

'•

294

255

v
-

67%

364

-

-

.

-2.1%

:-v

24%

'

6

*

O

I.,'i

■

1

,**" >

■

;

•

Oct. 4

3.00

8.4

5.7

3.96

1.50

6.1

6.3

13.30

3.00

5.8

3.9

,3.7

3.7

/

/

Mallinckrodt

4A

Metal

Price-Earnings Ratios and Yields of Atomic Companies
Price-Earnings

Sub-Table

Ratio

4.1.11 Raw Materials

—

Uranium

Mining

—

U.

4.1.12

Raw

Materials

—

Uranium

Mining

—

Raw. Materials

—

4.1.20 Raw

Materials

—

4.1.30 Raw

Materials

—

4.1.40 Raw

Materials

—

S

14.1

42

0.48

4.3%

Uranium Mining — Africa
Uranium Processing

19.5

2 00

3.45

2.00

.

9.3

Uranium

Lithium, Thorium, Zirconium, Beryllium

/ 2.00

7.5

5.5

14.5

5.3

9.3

5.0%

months, July 31, 1954.

.

2.6%

A. E. C.

Operating Contractors

Raw Materials— By-Product

5.0

Price

Earnings

4.4

17^0

3.3

Oct. 4

12 Months

Indicated

Earnings

4.5

Apolication of A'omic Power

107

6.0

June

Dividend

Ratio

4.6

Diversified

24.6

2.3

Atomic

and

Radiation

Instruments

Activities

,

1954
Blockson

Price

Earnings

Molybdenum..........
53
Vanadium Corp
35Vs
Anaconda Copper....
42Vs
Atchison, Topeka & S. F. RR. 117

Indicated
Dividend

30/54

5.02

Ratio

3.00

1.40

16.8

3.6%

Goodyear Tire & Rubber

2.44

1.60

15.0

4.4

Monsanto

,

15.9

,

4.0%

Petroleum
&

Yield

3.2%

8.3

*1.42

1.00

28.8

5.75

5.00

25.8

3.4

4.1
2.7

2.5

85

Gamble

...

10.48

3.50

4.51

2.50

20.1

5.50

2.60

10.5

4.1

93%

...

8.1

63

—

Chemical

Phillips

Ratio

3.00

92

2.33

J,-

Earnings

Dividend

10.13

147%

...'

36%

V.v.V ♦>,;/

10.6

SUB-TABLE

Yield

Raw

5.7%

2.39

1.20

14.8

5.42

2.70

17.3

2.9

17.0

3.3%

3.00

13.7

7.1

/, 12,12

5.75

9.6

4.9

V

Price
•

*2.53

1.60

15.2

4.1

2.10

1.60

22.2

3.4

7.93

6.00

11.2

6.9

Foote

+2.64

0.60

Z 16.5

1.4

103g

1.10

Lindsay

135%

14.72

'

17.6

6.00

9.2

Average

14.1

...........

Beryllium

Corp

Months,

March

31, 1954.

Price

Consolidated

Mines.

Co

21.6
1.00

56.0

0.8%

40.8

1.5

3.82

0.23

337/s

2.57

*

...

*

4

#

'

*

1954

2.00

0.18

13.6

47

13.2

............

General

3.3

1.75

/<•'

14.9

5.2

/.

Average

Price
Oct. 4

56.0

0.42

4.07

.

SUB-TABLE 4.5

Application of Atomic Power

...

0.60

6OV4

.

T**/

0.97

23%

.......

•

2.2%

4.2

&

Ratio

30/54

Yield

7.96

3.50

8.4

,V

331/4

1.91

1.60

17.4

33%

2.27

1.72

14.7

5.1

391/4

6.52

3.00

6.2

7.7

451/8

5.62

2.75

8.2

6.1

241/2

2.40

2.00

10.2

8.2

621/4

6.48

3.00

Aviation..,.

..

.......— -

Aircraft...

United

Price-

Webster

Earnings

Dividend

67%

News Shipbuilding..•v

American

North

Stone

SUB-TABLE

Light.,,,.

Newport

Indicated

..

;...

Edison

Duquesne

Price-

Earnings
12 Months
June

..

Dynamics

Detroit

:

30.9

■

May 31, 1954.

Yield

2.16

.

"B".......

Ratio

1.46

39%

Mining—Canada

Earnings

30/54

.

Potash

Carborundum

SUB-TABLE 4.1.12
Raw Materials—Uranium

Sullivan

Dividend

121

Corp

months,

Indicated \ Earnings

3H/2

.

Chemical

Lithium

*12

Price-

■

12 •Months

June

1954

1

Mineral

4.3

4.3%.;

Earnings

Oct. 4

vY ./Y

•;

:\

Average

4.1.40

Materials—Lithium, Thorium, Zirconium, Beryllium

3.4

3.08

384s
46%
87%

tl2

Chemical

Earnings
,

American

1954.

duPont

Indicated

941/z

...

Chemical

Procter

43i/2

Oil

Cm p. ...........,
Union Pacific RR...;.......,.

Yield

30/54

Price-

12 Months

Climax

opper

30/54

Dow

June

41

Aviation

391/4

........

&

Bendix

Price-

Earnings
12 Months

1954

Price-

'

June

1954

Penn-Texas

,

,

Uranium

.,':/

'

.

Oct. 4

....

Min.

Average

Materials—Uranium Mining—U. S.

Gas

Chemical,

International

SUB-TABLE 4.1.11

•

Price

Oct. 4

;•/

0.9

Materials

Months, July 31,

2.58

Average

-

9.3

Kcrr-McGee

*4.30

37%

.v.

SUB-TABLE 4.1.30

Radioactive

Kennecott

32i/2

Co

24.2

SUB-TABLE 4.4
20.0

Suppliers of Special Equipment
Atomic Energy Commission Contractors

Mining...

.'
1.80

3.7

4.2

Homestake

0.60

0.99

,.

9.6

5.2%
4.8

4.8
——

Oct. 4
1954

Algom

U-anium..

Pres'on

Centre

Croft

E.

41/8

Ratio

Yield

0.08

59.0

2.0°

Oct. 4

X

X

§

*12

months,

29.8

0.69

51/8

Abbott

Average

.>■

0.75

221/z

Victoreen

131/8

,

Instrument

Co

Laboratories

"■

.

0.40

f

32.6

31,

A"e:age

1953.

tEstimated

available.




1956.

tNot

production.

SUB-TABLE 4.6

Oct. 4

1954

35.4
Vitro

0.07

2

,stock
1.85

13.8

2.32

>

37.9

Electric..,..

4.2
Union

0.9°

Price-

Earnings
12 Months
June

30/54

Indicated

Earnings

Dividend

Ratio

Yield

37.5

Carbide

............

Westinghouse

15

0.40'

44

2.13

1.69

20.6

3.6%

83

3.17

2.50..

26.2

3.0

72%

5.09

2.00

14.3

2.7

24L6

Corporation

99.5
General

<

431/2

,

Price

1.8

Infinite Ineligible
Dec.

.

Diversified Atomic Activities

T

0.32

.

61/8
.

Yield

48.5

Corp.

Engineering

•Tiacerl';*), Inc

Ratio

r

6.0%

Earnings

Dividend

*0.17

Nuclear Instrument & Chemical

X

102
1.24

Indicated

30/54

22%

Instrument

Consolidated

t22.5

June

8V4

Instrument

Beckman

X

12 Months

1954

Atomic

TO.40

0.44
5.40

Rexspir Uranium.,
Rix-Athab3ska

Dividend

10.7

Average

X

9.00
.

Radioactive Materials and Radiation Instruments

Earnings

X

0.82

Uranium

Indicated

X

*0.07

0.71

Mines

Mylam'que

Pronto

30/54

0.92

Uranium...

Gunnar

12 Months

June

8."0

Dome

Lake

Faraday Uranium
New

.

4.8

4.3

Raw

5.28

Electric....

*12

12.1

:

Average

2.2

37.5

2.«4

41%

4.0

30.9

54%

19i/2

2.6

15j

1

Chemical

77V2

4.8

2o!o

By Product

1.9%

40.2

Harshaw

Yield

■

Yield

18.4

0.80

2.23

20

Chemical

Hydrides

24

24.

Pfaudler

Ratio

k.

Corp

Sylvania

Price-

Earnings

Dividend

30/54

M-iijnrnl

Average

Canada

4.1.13

Paso

52Vz

......

Process..,..........'.

Houdry

Indicated

12 Months

June

6.0

3.8

6.27

Engineering

Industries.;

Griscom-Russell

Processing

Earnings

Price

.

y-1

1954

TABLE

j;

SUB-TABLE 4.1.20

9.3

3.3

Giinnell Corp..;..-.,..........
V

4.00

5.2

3.0

Raw Matprials-^-Uranium

10.8%

7.19

/.

6.0

8.0

11

2.7

Yield

4.75

7.6

83

79

■

1.20

75

38

i

*"

2.00

General

-

Ratio

2.88

1.8

r

■

Earnings..

Dividend

7.96

5.2

14

Price-

Indicated

"7.27

23

47

72

30/54

'60%

45

Average

June

'.

Wflson

&

Knox Co

68

77/8

concen-

10.2

22

52

ore

1.00

24

5%

—

2.17

15

39

1954

261/2

17

Corporati
Westinghouse

are

in

though val¬
in processed

Foundry

&

Machine

Combustion

.

67

Allis-Chalmers

47

41

case

(Spodumene

43%

11

'

Lithium Corp.
are
expected

million

Earnings

1954

0.45

,

Mineral

12 Months

Oct. 4

11.3

71/8
■

million.
$20

this

form.

Yield

0.20

6%

in

ues

;

F

0.17

...

•

$1

Foote

gross

Suppliers of Special Equipment
'.

3.3%

9V2

.

■'

shipped from

ore

mostly from lithium,

is purchased by

17.5

•

Reefs

Western

3.4

to

all

nearly

(and

world

31

Carbide

*12

about

present annual gross value
in

free

Ratio

0.30

•

lithium

Total

Earnjngs

3%

Randfontein

*

comparable

auxiliary atomic metals
zirco-'

on

U. S. mines in 1952 was valued at-

of the uranium mining industry

Dividend

29.00

...

It is difficult to get

figures

sub level.

E

Vitro

El

or

19.5

Vlei

IV

Uranium Mining and Milling

Indicated

50.38

Copper

Luipaards

284

51

6V4

•

11

56

*

•

Katanga

5.7%

encouraging uranium
the newly increased

Other Raw Materials

Ill

the

be

That
such as lithium, thorium,
dollars are included on
nium, and beryllium.
private profit may be

prime

only

The

will

allowances.

depletion

earned.

-32

122

19

33

26

41

3%

•

..

the

Prre-

30/54

and

cost-type contract with the gov¬

Mining—Africa

12 Months
June

of

flowing in accordance with

Dyn?n

Consolidated

Union

15
•

Miti

Beckman

,

vp£5#-:*

;•

policy

mining

exclude

below

They

past.

SUB-TABLE 4.3 >

Earnings

Oct. 4

Yield

Price

43

Mines.

Lithium

Dow

High

33

..

Cor

values

uranium produced

ex¬

for

time

SUB-TABLE 4.1.13

;—1953
Molybi

perfect

a

Raw Materials—Uranium

Oct. 7
Low

is

have

will

the

in

joined shortly by Savannah River,
Paducah and, later,
Portsmouth.
An increased need is confirmed by
the A.E.C.'s announced and active

.

ernment, whether such contract be

selling for more than twice
its book value, the glamor has al¬

growth factor
from the very

capacity which the A.E.C. is
Oak Ridge and Hanford
have been the $2 billion installa-.

parts of what may
the industrial atom

we

dollar

those

is,

inferred

be

building.

put in focus the stock market

which

a

marked

very

large increase in uranium consum¬

variety of analysis which follows.

conjecture.
Certainly,
General Dynamics Corpora¬

when

than

of

TABLE 4.0

V

is

instrument

war

A
may

here.
However, a recapitulation
in .rough economic terms will serve

at

spent has been used
be

in creating stock piles of ore to

milled.

have been analyzed in greater de-

tion is

connection with

Confer-

City,

\

Gunnar

Whether

atomic submarine.

an

be

Capital Appreciation of Selected Atomic Companies

Vanadium

to

Of

Congo.

twice that of mined ore, but much
of the money

plain

opinion,

Belgian

ore purchase. The
milled
ore
is
perhaps

of

tions

a

glamorized

be only a moment in history,
but it* is a long time in the life of
an investor." No doubt this is true,

1954.

Climax

1

.

due to the present building

death

It is a

.

value

various

termed

The

the

ing

The

to

that South

ably devoted to

may

"Anatomy" of the Industrial Atom

tail

com¬

this figure, more than half is prob¬

II

be

Congo

of

A substantial

been

has

atomic develop¬

my

Corpora¬

the atomic submarine will actually

but it is

once

has

"This

in

winners

.

in

sources

authoritatively stated

It is one man's opinion,

is,

are

Africa will, within a year or two,

error.

out of line for

way

it

and

.

that the Belgian

Canada

new

great an extent as other
closely related to the

as

be

million

plus factor arises since it has been

commentator

first

rapidly.
may

$100

parable magnitude.

more

industry.

stated, and comparable

reasons

entmarket value.

may

con¬

distasteful

so

presented

paper

.

The commentator I referred to has

cash.

*A

Dynamics

selling

..

stated that "A quarter of a century

generally

tribute

is

tion

the

so

certainly improve

picking

on

harder job, but not a

and

friends

—friends who
are

In

stocks

conclusion

our

opinion, went too

this field, as in any other.
Newton

closer

my

will

the. odds

dowry

reserved

caution.

ment to

Cor¬

>

before

interested

of

General

that

the

therefore,

the

to

the

figure given by the A.E.C.'s

surpass

there

that

will benefit from

securities are obtainable at a marfar. For. example, he stated that ket value of no more: than 20 to.
only a "clairvoyant could pick the
"Past Earnings Record — Based
potential General Motors, Ford, or
Chrysler."
I don't believe it is upon the nine-year average earn¬
record of both companies
necessary to be quite so despairing ings
as all
that.
Dynamics
Corporation
Clairvoyance would, General
of course, end our problems.
should be selling for 173?4 based
But
an informed
and continuous ex¬ upon Consolidated Vultee's pres¬

estate

which

is

true

radically

a

from

know

and

again, it is more than "plain Eng¬
lish" to state that Sears Roebuck

It is a

Dynamics

poration are glamorized.

investment struck

note

General

as

At that

over-optimism, but if I

refer

the bandwagon when securities

such

is

much

fi¬

characteristic of investors to jump
on

of

S.

We

growing

approximate figure

inferred

The point is that conven¬

the

It

Cor-

Dynamics

from 33 to 39.

poration

us

on

General

of

rise

tremendous

a

of articles in

sorts

signifi¬
General

atomic energy.

light
technology.

periodicals, and to this
be attributed
the recent

should

"It

atomic

of

welcome

doing, he, in

They gener¬
ally have a lit¬
tle

nancial

the

million,
This

price-earnings ratio is still less

in

publicity and publica¬

of all

tion

reasonable chance

a

of

miss

totally

of

than 10.

with

coincidental
amount

approach has caused

tional standards must be modified

launching of our first
atomic energy submarine has been

prejudice

commentator

recent

field
a

dig¬

either.

gers

not

and

February

in

the

1954.

of

to

v

another invest¬ ings from $5.72 to $7.01.

"The

happiness.

A

but"not

uranium

should

investment.

private

analyst

March

shady

of

him

going to read to you a few

I am

prevalence

for

remarks made by

against the honest and respectable
girls of good character who offer

easy
virtue.
Many of
adventurers—not gold-

are

the order of $300

probably still thinks, was high at
39 has now risen to 68, and earn¬

there has been much
potentials of atomic
energy, calls attention to the rapid progress of this new devel¬
opment, which "has grown in 15 years from an equation whis¬
pered in the President's ear to a $14 billion program." Reviews
advances in atomic power and presents data on several "atomic
stocks," which have "investment potentials."
ladies

is

available

Energy

investment

doubt that many of
uranium
stocks
are

on

U.

Mr. Steers, though asserting it is true

no

is

and

Dynamics, which he thought, and

ment

Introduction

the U. S.)

survival, and which has just been
made to a much greater extent

By NEWTON I. STEERS, JR.*

There is

whose cautious

man

a

cance

President, Atomic Development Mutual Fund, Inc.

But

of

and skeptical

program

a

In Atomic

regarding

ample

$14 billion program,

a

whose success is the
major determinant of our nation's

Investment Potentials

over-optimism

to

ear

Thursday, October 28, 1954

...

2.5%

§Not
*12

months, Dec. 31,

1953.

^Deficit.

Average

...........

>

.Volume 180*

Number 5372... The Commercial and Financial Chronicle

(1715)
trates

valued

are

at; ?bout

per lb. of contained

Philippines may now be

$0.60

salt

production, should

$3.2 million in 1954.

gross

./

'

,

General Electric and A.E.C.

perts think power
tween

.

tion.

in

The

zirconium

last-named

producer,

Corp.

tive
built

produc¬

has

not

is

million

in

have

lion

worth

<

plants).

Radioactive

"•

-1

Radiation Instruments
materials

are

re¬

the

be

research last year, so
must keep in mind that
is

a

big

of

use

industry,

the

that this figure will
billion annually in 10

future

terials will

of

ma¬

be

counter

life

of

fresh

with

clude, only
preciated
4.°.)

even

after

the

the

most.

atomic

stocks

more, over

or

have

must

keep

be

to

sure,

tion

accordance

with

reactor.

reactors

are

fast

dividends

the

units

other

by

large

reactors

is hard to

predict, but the Army's
Belvoir "package" unit can
hardly fail to be the forerunner of

It is clear that

until

atomic

tive."
this

concept

which

is

panies

"competi¬

vary

been

which

low,

pacity

which

of

would

have

competitive,

atomic

an

to

have

even

in

to
a

It

im-

their
v

scene

government

more

own

larger

a

com¬

high

and

Bund

equipment

continue

at

will

a

to 10%.

Last

and on

make. it

the

high-cost

In other words, a
large re¬
actor is necessary to produce elec¬

econ-

about

the

to^hem

«

J

.They-have^ seen production
S10e! to 20^
ThevWhave

than 3%

more than

Wn™Jhnrnlr"-/capacity,

tfSsur?on
sist

more

Rv

Drices

and

harder\o

large

thev

re-

have

thg

^

5%-

outget

Construction, finally, will show

nQt

mild drop.

This year's fantastic-.

with additional
modern,

mOre

a

performance of the building

higher

period and its dif- ;pla7 e,v^7
wdl
search Institute. However, despite
faculties quite well, as evidenced
this year
On
tl)e stimulating effect of new
most clearly in the Profit
state-housing: legislation, Zwe believe
ments not o^ily of the industrial
andYhis
the backdron of
that at least part of this year's
giants but in many of the smalier,
companies as well. -; *
i
activity has actually; borrowed
-

mon^h) thi?
no\
the^contrary

weathered this

a"ainst

Now the silver
been so

"S
With

!

^

lining which has

their

a"t, „;°.r
where the
"

^ that the

rate of

long talked about and ad-.. 1953 and 1954.

lation

many

business

execu-

"iw.'J/S
expansion

continuing

„//^„o. hc,,1fr.rt /t fo'/
"

greatest hazard of 1955

business will lie.

Tumi"g to
Inatiexpe.cts .c?n!u™5 wit tw
sSand/nS
be
t ■ ± ^
[n n

t

tA StiaAsTodationDo? Sheet MeZ*
trtb'utcfrs, Atlantic City, N. J., Oct. 5,1954.

current

to

^

t

Look

f

coming out from under the downP"11' wil1 undoubtedly have

there^s ft^dangCT
tendency

an

offer to sell,

nor a

than in 1954 for most firms.

against

solicitation of offers to buy,

offering is made only by the Prospectus.

NEW ISSUE

-

/

,

of these shares.

any

/ ••

\

150,000 Shares

The Mead

Corporation

Cumulative Second Preferred Shares, 4.30% Series
(Par Value $50

per

Convertible into Common Shares

cheaply than that
Eureka, Nevada; and
ETureka, Nevada, cannot use that
much power.
•
••
• '•";more

Nevertheless, the "package" (or
reactor

is

expected

to

be

literally competitive in the remote
areas

in which it will first be used.

Costs in mills

Philippines,

run

to

63

from

in

16

in

the

Greenland,

Price

becomes

•

brought

down

so

that




have
even

been

the

certain
are

Share)

prior to December 1, 1964

$52

|>er

Share

earn¬

destined to

-

The

problem,

of

course,

study
the
companies
above, and others which
them,

Copies of the Prospectus

ones

is

may

be obtained in

as

thorough

to

may

join

a

This involves

knowledge

as

Drexel & Co:

well

particularly*
study of the impact hf"
atomic development on them.

intensive

as

a

Harriman Ripley & Co.
Incorporated

G. H. Walker & Co.

pos¬

sible of the companies' non-atomic
as

State from only such of the undersigned

covered

to

ation in the future..

any

registered dealers in securities in such States.

anticipate which
will undergo capital appreci¬
so

business

costs

that

as are

as

these

clear

ings and dividends

years ago were estimated at 25 to
40 mills.
It is reasonable to sup¬

that

It

rise.

and costs for "package" power two

pose

"

October 26, 1954

up-.

but business will not be any easier

thatthe usual

overproduce

to

the trend will be

year.; True,

ward> during ihe first half at least,

may

available in

small)

valuation.

made

Q

saasstaa

Personally,

tricity

market's

be

an

re¬

that

com petition tor the oon.ome'r dot'««""* ™PO«a»t lor the m.n
)ar growjng m0re intense. - Soft who is running a business to. regoods, which are only now really sist over-optimism about next

This announcement is neither

; v

'and

need

the first mild dent will

ward

n

building is too high in

well be that ratios will rise
further and yields fall lower as it

;•

the

in-

;Speed ec*uiPment. and more dis- dustry has taken most observers
tributl0n facilities coming into by surprise, including the, Re-

the whole, I do not believe
to be any less bright

than

the

year

f

almost,

.was

future

area.

some'

alone; in disagreeing with the of-

are

reflecting the fact that the
caoitalbing on the basis

favorable future.

dip

*

plants"

on new

rnmp

market is

reactor

'

tal spending at $26 to $27. billion.
(Latest estimates are that the year

will

omy

in¬

yields

of*

civilian markets.

f™e> teY ex®cuJlves Research Institute

be

averaged,
equal

an

hoid

to

share

more, but probably not more than

in. a very, .about 3%

prepared to work against.

made in each stock.

was

are

that

who

ficial, forecasts which saw capital'
spending holding almost level. )
We correctly put the probable to- v

are

will

con->

contracts

determined

gain

or

-Business spending

and

-s one

i

to

on

yields have

arithmetically'

Ratios

most of the continental U. S.
highcost areas could not use the ca¬

ratios and

implies

vestment

so

provided.

are

that

noted

"competitive" bears
the power costs
bettered

the

of

some

More detailed tables showing the

relative nature of

be

for

data indicated for individual

this field

And, equally important,

.

out

given in table 4A.

really large im¬
in

yields

atomic industrial subdivisions

since

must

sharply.

a

power

But the

emphasis,

Vn;;'V,

occur

1 ?

uy' 31

less

•Overall, the prospects for 1955
shaping up quite clearly; Always
barring new international

The

earnings and dividends
meaningful only as related to
price, price-earnings ratios and

Components

petus will not

lose

-

Since

dividend

/

recently let government
tracts will continue; those
on

are

inevitable.

VI

Reactor

Henry

dividends.

.

-

constituting,

last section, can only occur if sus¬
tained by life-giving earnings and

considerable
numbers
of
addi¬
tional reactors.
This industry has
grown to about
$40 million in five years from
about
one-fifth
that.
Further
appears

as

economic

somewhat

final analysis of course, the growth
in market value, considered in the

Fort

rapid growth

Dr.

what

Industrial

the
physiology; for the life process of
our atomic companies is their abil¬
ity to generate earnings.
In the

by 1960.
How
Duquesne plant will be

followed

8

char¬

stinctively,
suncuveiy

the

!m-e ^ u1'

temporary!

IS/

V

of

the

on

Desl be neutral,

through

major

growth of part of it, we can per¬
haps term the rate of earnings and

planned by many universities. The
Navy plans- 20 full-scale atomic
propulsion

their

an

•

t

neutral

buyiTlg than it did in 1953. The/
sharperbidding already evident'"

are

ahead, but
rather, in the experiences of these

a

If the above may be looked
upon
as a brief anatomical
summary of
the industrial atom, and of the

in

Research

of

/ wm.?1
worst provide

;

at

,*

decline'

complications, the national

o e s

Atom

another.
also

sec¬

vm

"Physiology"

conjunction

one

used

with

atomic activity.

However, they
conjunction, in
considerable numbers, with
every
are

ap¬

examination is made

an

with

While

.

4

.

pfce a* which it is moving now. will wind up at $26.7 billion.)
past two yearsThe normal growth and the fact, However. in the light of the cur-,/
-Mnct
havp inQf
for ^stance, that inventory cor- rent decline, most of the current
a Period
readjustment fection has run its course in many foliecasts are turning to the other
CiStLr twa!Ln,."nportant/'llhes, will'. mean some extreme and predicting a much
reces^mf as applicable
or
net gain-''In the Institute's judg- higher, further reduction than wo
nmdnSinn ment- the net gain will not be believe likely/
v,. •'
1 A '
not.

price *you

In the next

even

so.

whole it will at best bp

a

,

cost control, plan-

condition which, except

are.

in- the

of

in

or

additional

by further spending
by state and local government as

on

vW

lies

larger number of stocks classified

that of radioactive
materials since
the two are used in

with

acter

are low;
might be expected

as

Be-

this

offset

oe

will be

The
d

.

the mistakes

par¬

o v e r

lie

frnm

Jones

.

jiqmiQ growth to permit it.tp beat,
last year s figures and to wipe out

gle factor

busi-.

radical'

preciation of 26%.; Yields

radiation
pace

their

reason

appreciated

any

Dow

a

in

instruments

course

?

might have paid during 1953/ as
compared with

self.
of

pate the

nesses'

;

after such rises.

use

in¬

to

which ap¬
(See table

/ '

67%

Je¬

the

the fact

ones

prosperity.

in. general economic
conditions the most dominant sin-

the next 12-18

/ You will note from the data in
table 4.0 that on the average the

untreated

in

t

stocks, but. I should like

selected

not

age.

Growth

mo s

These have

suits in the properties of the com¬
pounds produced and in the
pro¬
motion of the chemical reaction it¬

■

found

to point out that these stocks were

potatoes of
Irradiation of con¬
ventional !; chemicals • has
been
shown to produce unexpected
same

date

a

yprovement

j

invested 4n' each

the average

of atomic

definite preference for irradiated
potatoes eight months old, as com¬
the

have- to

we are not about to en- ;
oeriod of nrosneritv
Re

$2 billion

of

some
Vviu.

ment.: Because

few:

really

months."

were

another

ningand just plain good manage-

w

ticular

done better than

the latter count has been
the
potato
preservationtests
where a
taste
panel
showed a

*

.

i II
antici¬

of

w

/. .-/'0

.

worthy of emphasis.

beef

on

pared

'

vii

-

long

a

that

any,

not

we

has been extended from
five days
to three weeks
by means of irradi¬
ation, without / harmful effects.
There has,
however, been an im¬
pairment in flavor.
A
hopeful
note

bet
if

of

stock,-to get- an average appreciaition.
I v'hav.<S'"hot done this.* but
instead have selected the 13 which

greatly brightened
if the fission product
variety can
be
applied
economically, Z T h e
meat

y

^

safe

a;

amount

/

radioactive

over

tically/

It would be possible to
analyze
all atomic
stocks, and, if the same

reach $1

years.

.The

learning the
The Others will

care

problems.
•
•
"
Defense spending will be down •

ex-

'

"Growth- of the Industrial Atom

"tagged" atoms,

and

mav

are;

behind/:for this kind

;

$100 million last
year

means of these

ter

except-,

pressures and

S ~ af"d ^aileTdf cause+110 company will be able to
sound
It , count on the momentum of eco-

in

"technology.

left

painstaking
period. //

A.E.C. Commissioner
Campbell estimates that U. S in¬

by

average • executive

critieaf anH

takes his first

types of equip¬

lead

out

just started.

dustry saved

the

has

new

and

know-how cannot be learned with--

and

tool

Z ;:

,

in, uranium
power
plants overlap, ;to 'a large extent,

new

on

research

ness

volume—again

those

lines where over-pro¬
duction will tend to create
special

.

J A unique hazard confronts busi- ■;"* Because
as
the

power

companies

^

we

uranium

Z

used

taking

According to Sumner
Slichter, $3.2 billion were spent in
that

power

dollar

ing

"

Forecasting a period of economic stability in 1955, with a
slight upswing in production, Dr. Bund looks for stiffer com¬
petition, with a dip in spending on new plants and
equipment, v
*
f
an(l some letting up in rate of home building. / : Z *

;;

aggerated and
the conventional kinds and
types..*
yet it is prac¬
But only certain

search's newest and most
promis¬
ing-., tool.
the U. S.

-of

kinds

ment

Radioactive Materials and

$259

power
would

been

The

...

uranium

Six-mill

in

Execulive Director, Research
Institute of America

war

least

at

or

of

the

Durable lines by and large stand:'*
to 10% better next year

to do 5%

Ry HENRY BUND*

the

of

$200, depending
form and grade.

.

kwh.,

since

in 1955

'

competitive jvita 4p%
incremental capacity (4,881,000 kwh., or at least $732 mil¬

of

ranges from $50 to
on

S.

U.

worth

plants).

It grossed $9
Price
per
lb.

1953.

the

million

major

held,

in

(1.728.000

$10

a

the

closely

beryllium products.

To

would have been competi¬
with 15%
of > the
capacity

power

million contract at
$13.46 per lb.

Beryllium

can now be pro¬

large reactors for be¬
and 7 mills.
Seven-mill

6

good market may have to be
paid for later in 1955 by fiew in- \
ventory pressures and price cut-i
ting..
a

Economic Stability

/

.

National
Lead,
Carborundum Co. have all

been active

exr

duced from

over

Westinghouse,.
and

a profit¬
"package" reactor.

able spot for a

*.,1'
| Lindsay Chemical Co., which
h^s a near monopoly on thorium
lithia.)

15

,

,

'

Glore, Forgan & Co.

V

1#

The Commercial and Financial Chronicle...

(1716)

Thursday, October 28, 1954

Papers and Cements Lag
The erstwhile

THE MARKET... AND YOU

run

their

the way

STREETE

By WALLACE

ancy

Stocks reacted a bit this of
the
stronger,
and
the
week, mostly because of the eventual dividend action
failure

of

the

rail

proved to be well-founded,
again to make any progress was Warren Petroleum which
into new high
territory. The reached its best price since
net result,
consequently, was the issue was last split in
that it is now left up to the 1948. It is an all-time high for
average

election results to set the

the

near

which

stock

first

was

term pattern after the next listed as
recently in 1945 and
couple of sessions.
which is, as a matter of fact,
*

Some
hari

concentrated

of which

of the

one

he abs°rbed

to

eas

*

*

in the

ones

newer

selling large oil lineup. The present
the company was set up in 1937.

n°t

the steel

was in

appointment

was

Among the other oils there
evident was little: to choose from.

when Armco and U. S.

action. At the worst immedi- Dutch

ately after the news, Armco,
usually a slow-moving item,
was off past three
points and
it kept the entire steel division nervous throughout, with
Bethlehem Steel's meeting today necessary before the entire story will be told.

the

went

and vice

versa.

other way,

The gyrations

of the higher-priced members
of the section continued to
cover considerable ground but

what

held

for the

might

be termed a trading
slightly below the highs

range

in

most

of the year.

J

^

*

*

*

the

of

aircrafts it

a :

was

somewhat

persistent
despite good dividend action. Along with the
corporate largesse came a recurring tale of a stretchout in

One of the few issues that

dividend action was National
Gypsum. The solid reason for
it all

seems

country—and I personally have not had the opportunity to do much
traveling of my own—is that there is an unusual apathy towards
the Congressional campaigns but a trend to¬

the

"P to

te

they have given the
the

mi

the industrial

,

there
not

I

*

*

_f

__

_

; - -

steady

of

.

*

are

increases

the

in

even some

Chemicals

had

a

rather

t

columns withm

lar

disbursement

sion.

any

market enthusiasm, j-;
*

*

warranted

American

stock,

*

single

a

which

sesPotash B

showed

a

for reelection in highly debatable States than-

up

\

the reports are

Dworshak in Idaho will barely skim through over the irresponsible

ally

Douglas in

a

by the rail failure this week.
But the

to better its average.

Senate.
Then
is

we

get back to that paradox in these reports that there

Democratic trend but

a

it and I entertain

for

a

general apathy.

bearish side had little to cheer

selling
that

was

around,

which

started

week

Tt
at

failed

as

off

the

venerate

or even

whole
It

were

some

forced to eat

crow.

without saying that in the past two weeks the Re¬

goes

publicans have woke up and have been putting on a hard hitting
campaign. They have very plainly thrown aside their smugness
and have gotten down to work. They are unquestionably fright¬
ened and this goes for President Eisenhower. If nothing else is
accomplished before Noy. 2, at least the President will definitely
have cast aside the bad counsel he had been getting and decided
that he is

a

Republican, that his fortunes are inextricably woven

with the Republican Party.

myself

very

;"..P■ *"
lThe views expressed in dhis
-

SSTXfilSfiS
chronicle.

Then are presented as

those of the author

oniy.] f

f

Nagler Helicopter :;j

.

into

*

made

overall,

t

selective

group

to

little

,

show
.

„

a
.

o

Oils Irregular
Oils

,

T the profits of the
some

*

progress

Shares All Sold

-

new

J°hn JJ-i Boland- ot.

so

I doubt very seriously that any

concerned about my health as to be

afraid

seemed either to be

; cans

too lazy to do this heretofore, that

or

favor
,.

the

Nagler

were

joined

in

more

than

and equally pinpointed both
s

t

re n g t




cases,

however, it

h. One far from spectacular.

was

^Botand
City;

•

&

Co./in^New
■:

: •

•

;.

...

some

high order of

pageantry in the President's

that night. There

piece of political pageantry and that

which Roosevelt used to put on.
the country on a crisis.

In Roosevelt's case it

was

to sell

Monday night's pageantry dealt with peace.

It should have been effective.
From

Michigan I get reports that the Charlie Wilson episode

about the dogs that

redounded to the

sit

on

their fannies has, in that State, at least,

benefit of the Republicans in that it projected

Walter Reuther back into the

terrible beating in

trad-

York

Administration,, not the

Foster Dulles and of the nationwide TV program

helicopters

Co. issue has been sold, the

was

is this difference between this

acknowledging the rather has been compieted and is undergood strides made m cleaning going test flights at present; and
up the heavy inventory prob- tests for the Armed Forces are
lem 0f earlier this year' They
^Not'thatTheNagle'r HeUcopter

alternating .between momentary popularity by ing and underwriting activities of
weakness in the some of the airline issues. In John
Boland. will be ;taken

subsequent

There

Democratic

people generally were thinking.

going to the airport on Monday to greet Secretary of State John

is located at the Westchester
County Airport in White Plains,
of

during the

incumbent one, as

j" Delaware in shop and hangar
November *9jL2;
Its office, work

period plus N °ne
Y.

have decided-to let the voters know that the current housing

scandals brewed

N^ler

...

my

they* the farmers, are operating today under a farm price support
1 program that was written by the Democrats; at least the Republi-

A

W^1C^ logically is anticipating
J the holiday gift season and

backing and filling.
*

.

of

'

Pick

,

some

of these gentlemen will be
restrained from writing this
;but at least Mr. Eisenhower has come to think differently. ''"
'■X -V In some States, notably New York, the fright of flie Republicans
has come to border on hysteria. But at -least they have come up
; with a convincing case that there is more employment today and
less unemployment than at apyf time, except during war, in the
rpast 25 years; at least they are telling the farmers, when they
stand.

r

™

times

forcibly recently to

editors, telling them that if on Nov. 3 they
write that the Republican defeat is not by any means to be taken
as a defeat
of Eisenhower, that it would be more than I could

anv

approaching t f ra y,

.

anv

HwinXn
dwindled

best
best,

more

to

such

I just don't understand

hope, some little hope, that we may be In
repetition of 1948 when the political prognosticates almost

a

as a

v Helicopter
Co., . Inc.*
commoni
pi
*T
stock, reecntly offered to the pub\
Up
iic at $1 per share, have been sold.
The televisions continued at
The company was incorporated

about since what concentrated

are

hardy, indeed, to expect the Republicans to hold control of the

'

tion caused

gener¬

not likely to beat the ultra
State like Illinois, one would be very fool¬

I have expressed

The bullish

element, natu- fast-turn : favorite: recently,
rally, had little to go on in has been having troubles, losthe-adverse technical situa- ing ground both last week and

through; when the reports

that the Republicans

agree

liberal

friends among Eastern

it for

some

signs of being something of

.

are

Glenn Taylor even if he skims

b's

pay-

only an increase in the regu-

mathematical situation by which they stand

a

seats in the

- I :
practically unanimous that a man ^
like Cordon in the staunchly Republican State of Oregon; Fergu¬
son
in Michigan; Saltonstall in Massachusetts, are fighting, for
their political lives against relative nonentities; that Republican

stock

rough time of it and it was
ments that have come to be
getting somewhat routine to
more
or
less regular
have find such pivotals as DuPont
been shrugged off with a rare and Allied Chemical showing
insistence by investors that in both the
plus and minus

dissatisfied

five.

or

Yet when

k

extra

10

Republicans.

*

profit-taking. And

not

are

than 20 seats.

Democrats

payments.
have The 35-cent rate of 1953 was

*

they

In the 83rd Congress they had a margin of ;
On the other hand, the mechanics in the Senate
in favor of the Republicans this year which means that more

more

only four

.

.

If

up.

overturn in government would not seem

one exception, has suffered a retrogression in the
off-year Congressional elections. Also, the population shifts in our
country have brought about a situation whereby the Republicans,
except in landslides, cannot hope to have a margin in the House

•

'

voters

always, with

~

'

*

Carlisle Bargeroat

or

ordinary course of things. At least
of the past 35 years or so is that the party in power

the history

was

rrmcmifipd it somewhat

the

up an

faced with

are

to lose around

their,

there

stir

to

conditions

over

am not saying this
by way of predicting that the Republicans
retain control of the House and the Senate. In the House

they

encouraging around

g

; r- X

dissatisfaction

no

enough

may

liquidations, gave at
to

is

enough to be stirred

International ttar vesters
ability to maintain a meager
plus during one of the week s,
That

the : unusual

of

„

.

to be in sight.

...

f^tle else

told

Apathy in political campaigns comes about
two things and two things only: either

withstand sellmg periods, and

comfort

have

from

standing, about it but in a
eir a?1bty

small

the gripe is supposed to be
Then in the next breath these

JvX 'V

apathy.
-

long-depressed f
equipment s h a r e s show d
some tentative slgus that t y
were thinking of changi g
their; ways. Again, there w
nothing, too^onvincing or ou -

\east

for the trend: In

reasons

areas

correspondents
•

,

some¬

farm

unemployment.

figure,

,

.

trend is

a

belt, usually the stronghold of the
Republicans, the dissatisfaction -with farm
prices and the new flexible price support pro¬
gram which has not yet gone into effect; in

shade above its year's low,
attempts

\

Just how you can have

-

without any serious

#

in the reports of

The correspondents generally have agreed
that there is this apathy and this trend and

:

^nough support to loll'around
#

me

political correspondents who have been traveling about the

apathy and at the same time
thing that I can't understand.

^0X}veTf}l
somertimeGfound

to violate its floor

point that has stood out strikingly to

wards the Democrats.

Dm1"68 Have Election Jitters
affecting profits that
Utilities, h o w e v e r, defibeen piling up from capacity pushed to 40 cents for two nitely had the election jitters
operations. Glenn Martin, quarters this year, 45 cents which the Dixon-Yates conwhich made its first payment the next and this week raised troversy and its high place in
since 1947 and larded it with to 50 cents
along with annual the campaign speeches : did
a stock payment in addition,
payments of 2% in stock. The little to quell. For the group,
was
unable to exhibit
any issue held in a trading range as measured by the averages,
great independent enthusiasm only slightly changed year by some four months' progress
in this atmosphere.
1
'
year from 1950. Then, earlier has been canceled out, which
this year, it broke out to a means a standing about three
For the staple issues in the historic high that was nudged points below the year's high.
bellwether class, anything less a C0UPle of notches higher The scope of this retreat can
than an increase seemed to be a§ain on this week's news.
best be gauged by the^ fact
a
signal for precautionary
*
*
*
that only a couple
but

By CARLISLE BARGERON
A

cf;nt tra<^ing ,?emen|;
shares, also snowed signs o
running out of steam and
Jhey, too, were swaying m
with the market m contrast to independent strength

to be the impact

of repeated raises plus small

deliveries in the last quarter,

of the News

S1°ually. fne even more re-

showed definite benefit from followers.

Weakness

Ahead

of outstanding buoy¬

^ona^ ^aP®r' particularly,
subjected to some ra er
Pron°unced pressure o c c a -

heavier
For

Washington

this week and Interna-

Steel

Royal Dutch seemed to deonly the regular light in running a perverse
dividends against a backdrop course; when the group genof high expectations for better erally was doing better, Royal

From

with little in

was

declared

case

course

i

a

,

and aircraft sections. The dis-

favorites, the

stocks, seemed to have

paper

;

political limelight.

and the other CIO luminaries have
in the

Since the CIO's

Ohio in the Bob Taft campaign of 1950, Reuther

background.

thought it best to do their work

Reuther couldn't stand the lack of

light. It's too bad the Republican
1 episode in this perspective at

apologizing for Wilson.

the spot¬

strategists couldn't have seen the

first, instead of running around and
-

Number 5372... The Commercial and Financial Chronicle

Volume 180

State
Assembly ; for two years,
helped develop the Atlantic Basin
and docks, etc.

News About Banks

County Trust Com¬
during its span of 65 years.
Joseph C. Hendrix served from
October

Walter

of

Assistant

an

A.

Secretary

Hebrides

New

donia.

at Manu¬

Treasurer

Assistant

Fork, was announced

Commercial State Bank and Trust

it was
M a 1 1 o r y
Stephens, Chairman of the Board,
and Jacob Leichtman, President.
Mr. Spartalis' career in banking
began in 1932 with the National
announced

He is

October, 1940.

a

graduate of the American Insti¬
tute of Banking and is assigned to
the bank's West Side Office, in
New York at 481 Eighth Avenue
at 34th Strbet. Mr. von Gontard, a
graduate of Washington Univer¬
sity, joined the bank in Septem¬
ber,

He is assigned to the

1951.

Business

Depart¬

ment, and his territory embraces
the
States of Kansas
and Mis¬

Bank

of

of

D.

Reed

T.

*

*

President,

Vreeland,

of International Bank, New York,

announced on Oct. 22 that
organization has purchased
the majority iownership
in the
International Trust Company of
N. Y.,

he

where

Greece

of the two American
owned banks in Africa. Mr. Vree¬
one

will

land

assume

the position of

the

of

Chairman

Board

the

of

the

Presi¬

past

a

Jersey Bankers

Association and Vice-President of
Amercian

Bankers

Associa¬

Trust
dale

of

until

J.

the

death

the

Wason,

time

until

1926

by his

Jr.,

of Mr.

he

he

Julian

Allen

has

served

Chairman

Mr.

in

served since

1- 7

leaders

in

*

:

He

*

until
1945,
leaving
to
personal Secretary to the
Prime Minister of Greece. Shortly

Heliport, N. Y., reports a capital
of
$75,000 as of Oct.. 13, the

thereafter, he was appointed press
envoy for the Greek Government
in the United States. He joined

On

the first national

was

of

the

American

Insti¬

Chairman

was

of

the

Com¬

and Marine Commission

of

the American Bankers Association
for 33 years, beginning in

of

Bank

Commerce

and

the

Oct.

tional

the

1

of

Bank

Merchants

Na¬

Quakertwon, Pa.,

office

merce

The Bellport National

of

of

that

Brooklyn.
*

Chamber

Hoboken

the

with a common stock of $100,000,
Banking, being elected to
and the Sellersville National Bank
in
1903,
and
was
of Sellersville, Pa., common stock
closely associated with the Insti¬
of $75,000, consolidated under the
tute during its formative
years.
tute

that time.

Kings County
Company have been prom¬

inent

Kent

President

All Presidents of the
Trust

headed

He

ern Hudson County. He was Pres¬
Company and of the Scars- ident of the board of trustees of
National Bank & Trust Co., Stevens Hoboken Academy.
Scarsdale, New York.

Fairchild's

became

Board

when

son

January 1952.
The present President Chester A.

charter and title of the Merchants
National

The

Bank

of

Quakertown.

latter, at the effective date of

from

serve

the

as

of

Bank

and

Athens

in 1948
and

*'"77;7.

Research

a

Council

the consolidation had

a

capital of

$155,000, in 3,100 shares of

member of the A.BA.'s Executive

*

*

Council in

*

1920-21

and

a

com¬

The Northern Trust Company of

member

Chicago, has announced that Gil¬

of the

Advisory Committee to the
The Mohawk National Bank of ;
bert H.
Scribner, Jr. has been
Schenectady, N. Y., has increased' Export-Import Bank from 1934 to
1936.
elected a member of the board of
77
its capital from $500,000 to
$625,Mr. Kent was born in Chicago, directors to fill the
000, the enlarged capital having
vacancy cre¬
been brought about by the sale Illinois, and entered banking in
ated by the dealth of Merle J.

and, in 1953, was ap¬
pointed a Vice-President of the
Royal State Bank of New York.
The

its

,

of new stock.

Relations

pany

of

having been increased from 1937 to 1953 and an ad¬
mon stock, par $50 each;
surplus
$25,000. A stock dividend of> visory member in 1953-54; and a
of $545,000 and undivided profits
$25,000 yielded part of the in- - member of the Association's Ad¬
crease
while
the same
amount visory
Committee
on
Special of not less than $300,000.
($25,000) resulted from the sale Activities since 1942. He was a

Trust

bank repre¬
director of Public
as

1921;

member

-

amount

his

Liberia,

and

Hospital, Jer¬

was

New

Chamber of Commerce of North¬

re¬

mained

sentative

souri.

York,

New

by

Company
*

the

of

Vice-President

named

Company

Out-of-Town

been

Oct. 21

on

the

Association

Christ

He

the

of

24. At the time of his
death, Mr.
Kent was a director of Bankers

served

succeeded

from

Mr. Faller came to Manufacturers

in

Bankers

For

of

City.

dent

William

has

Spartalis

Council
sey

dent until his dealth in June 1934.

■

*

*

*

Gregory

by Horace C. Flanigan, President.
Trust

;7-

of New

Trust Company

facturers

1893.

Geological Survey, the Hudson
County Park Commission and the

P. Fairchild who remained Presi¬

Cale¬

New

and

7'; ,7

>7

and Adalbert von Gontard, Jr. as
an

May

member of the State Board

a

of

tion.

was

as

to

was

17

American Institute of Banking, its
educational section, died on Oct.

child

Appointment

1899

*

a
Vice-President of the Bankers
Trust Company, New York, and a
leader
in
both
the
American

the next 33 years Julian D. Fair-

CAPITALIZATIONS

*

Fred I. Kent, 85, for many years

served Kings

Bankers

and

OFFICERS, ETC.

REVISED

Faller

*

pany

BRANCHES

NEW

Jr., John H. Walsh, and Walter H.
Young.

Only five Presidents have

,

CONSOLIDATIONS
NEW

(1717)

Kings County Trust Com¬
of Brooklyn, N. Y., is cele-'

of

brating its founding in 1889—a
year that the United States was

stock

new

$125,000.

the

to

The

became effective

celebrating the centennial of the
Washington's Inaugural, Paris was

*
'

amount

increased

as

tional

a

clerk

Bank

advanced

Oct. 15.

on

*

As of the Oct.

1886

of

capital

at

the

Na¬

Chicago, 111. He
through various posi¬

tions of the bank and

*

First

of

was

named

Trees.
of

Mr.

Scribner

Winston

estate

&

Co.,

firm.

is

a

partner

Chicago real
7

.

of the Foreign Exchange
Department in 1905. He joined

manager

1, the Plattsburg

celebrating thecentennial of the
An increase of $250,000 in the
National Bank & Trust Company
Fall of the Bastille, and Henry
the Bankers Trust Company
of
of Plattsburg, N. Y., with common
capital of the Continental Na¬
New York in
1908 and became
Stanley was off to Africa to find
stock of $500,000 was
merged with Vice-President in 1909—the
tional Bank of Lincoln, Neb. has
Dr. Livington. The company first
posi¬
the National Commercial Bank &
tion which he held until his re¬ occurred, raising the amount of
opened its doors to the Brooklyn
Trust Company of Albany, N. Y.,
tirement in 1928. He organized the
public on Oct. 14, in the Arbuckle with
the capital from $750,000 to $1,common stock of
$3,000,000. Paris office of that institution in
Building at 373 Fulton Street. In The
on
the purchase of the Interna¬
merger was effected under
000,000. The enlarged capital be¬
1893 the company moved to its
1919.
the charter and title of the Na¬
tional Trust Company of Liberia,
*
*
;> "7
13.
••• came effective on Oct.
present location at Fulton Street
tional Commercial Bank & Trust
Mr. Vreeland noted that in re¬
*
*
*
at
the corner of
Court Square
The death of Clarence G. Meeks, 7777'
cent years the International Bank,
Company of Albany, which as of
where it occupies the first floor.
The officers and directors of
President
of
the
Company
of
the
date
of
the merger
which was formed in 1920, has
has a
This building is of French Victo¬
Union County, N. J. and Hoboken The
First
National
Bank
of
capital stock of $3,000,000 with
played an imporant role in fi¬ rian
since 1940 occurred on Sept. 28
design and copied after an
150,00 shares of common stock,
Tampa, Fla., announce the death
nancing trade between the U. S.
old French City Hall.
The span
according to the Newark "Evening
and
Latin America.
The
bank
par $20 each; surplus of $7,500,000
on
Oct.
16 of E. P. Taliaferro
of life of the Kings County Trust
News," which also states that he
and
now
undivided
plans to play a similar role
profits and re¬
had been a director of the Hudson Chairman of the Board of Direc¬
Company has encompassed four
serves of not less than
in Africa.
$1,000,000. Trust since 1918. Mr.
wars: in 1898, the Spanish Ameri¬
Meeks was tors of the bank.
The present location of the Platts¬
7
The International Trust Com¬ can
73 years of age. From the "Eve¬
War; 1917 to 1913, World War
;
*
*
*
burg National Bank at 2 Brinkerpany
of Liberia, founded by a I; 1941 to 1945, World War II; and
ning News" we also quote:
hoff St., will be known as the
A stock dividend of $50,000 de¬
group of American investors, car¬
the recent Koeran War 1950 to
"A past President of the Union
Plattsburg office of the National ;
ries on the business of a trust 1953.
City Rotary Club, he served as clared by the American National
Commercial Bank & Trust Co. of
company in Liberia and acts as
Governor of the New Jersey inter¬ Bank in
The bank countered, survived,
Winter Haven, Flav, has
Albany, while the other banch
the sole agent of the Government
national district for one year be¬
and went ahead during five de¬ offices of
the Plattsburg Bank be¬
raised the bank's capital, effec¬
of Liberia in the registration of
ginning in 1948.
During World
pressions. Four years after its come the Au Sable Fork
Branch, War I, he was food administrator tive !Oct. 11, from $100,000 to
ships under the Liberian flag.
It
founding the first depression the Champlain Branch and the
also assists clients in establish¬
for

new

George Schaeffer,

company.

formerly a Vice-President in the
foreign department of the Chase
National Bank, of New York will
continue as President, according
to Mr. Vreeland.
In commenting

*,

■

■

ing companies under the Liberian

Corporation Law. The actual pur¬
chase of the majority ownership
of the company by the Interna¬
tional
Bank
was
completed on
12

July
ment

has

but
until

nounced

the

been

not
Oct.

22

an¬
state¬

by Mr. Vreeland.

is
chartered under the laws of Ari¬
zona

and has

two

subsidiaries:

Washington,
sents

wholly owned
of

International

Inc.,

the company

which repre¬
in New York

City and the International Bank
of Washington, S. A., a Panama

corporation.
a

The company is also

shareholder of Washington In¬

ternational Corporation Ltd., Ber¬

International

In 1896 there

although

nancial

disturbance.

banks

their

and

seriously

was

financial

in

tested

Bank

to

1920

The

an

aftermath

of

this

last

pression and before it had

was

From

deposits
has

friendly foreign governments to¬
the development of world
trade. Since then it is announced,
ization

of

an

the

policies, and organ¬
bank

have under¬

intensive period of re¬

organization.
management

Under
the

bank

the

has

new
en¬

gaged in merchant banking during
the

past two years in Brazil, Co¬

lumbia,

the

Union

of

South

Africa, Bolivia, Peru, Venezuela,




two banks at

voted

Its

days
its

deposits

years

capital

when

in

were

1889

effective

on

under

of

of

the

Oct. 26
the

two

name

Na¬

the

Westchester, with

without interruption. In the
early part of this year the out¬
standing shares were increased
from

5,000 shares of
value each, to 50,000
$40 par value.

$100

most

of

the close

of

per

busi¬

business
-

under

the

new

W.

Chairman
P.

Birckhead
of

the

will

the

for

quicksilver,

at

previous prices. With

higher production

now

scheduled, both

earnings should show substantial

increases.

Company also has various oil and

be

Board; Edward

gas

of

interests

at much

per

share, should sell 7

higher prices in the

free report

Advisory

This stock, now

in Canada.

quoted around $2.25

Committee; John F.

of

demand

higher prices. Current market is $331

sales and

dent; and Robert N. Bavier will
Chairman

in

flask (76 lbs.) compared with $275 in

much

Boland will be Senior Vice-Presi¬
be

million

name,

Prezzano will be Chairman

the Executive

$117>

to

expanding its output to meet

June and much lower

Mr. Tyner will be President of
the National Bank of
Westchester;
Oliver

close

near

tells why. Send for it

future. Our
.

.

.

NOW!

Board.
The

prises

Board

the

of

Directors

following:

J.

com¬

Ask For Report

Lester

C 308

Albertson, Oliver W. Birckhead,
of John F. Boland, Honorable Fred¬
erick P. Close, Oscar A. de Lima,

par

shares

Joseph C. Hendrix, the
President, drew about him

$150,000.

old producer of quicksilver—

paid

increased

much

October 29. On Nov. 1, 1954,
the combined banks will
open for

was

year

as

has

dividends—is

ness

$53,-

16 year

which

Avenue, White Plains, New York,

of this

men

consolidation

institutions

on

$1,600,000, the bank

and

Brooklyn's

a

meetings

of

the head office at 31 Mamaroneck

June 30

of

the

stockholders

its

early

were

grown

This

an¬

that

tional Bank

engage

ward

gone

Company of Tuckahoe, N. Y.

its doors.
its

He

EXPA-NSIO-N

Com¬

nounced

its

bank in the country
closed. Kings County Trust
one of the first permitted to

re-open

Trust

New Rochelle, N. Y. and
Mr. John F. Boland, President of
The First National Bank & Trust

course, every
was

area.

*

Westchester Bank &

de¬

run

Hudson

a

pany,

1920-21, and the tremendous
depression that started in 1929.

As

*

joint statement, Mr. Ralph
Tyner, Jr., President of The

T.

was

the United Government and other

the personnel,

In

twenties brought two depressions,
the very short lived depression

$500,000, and it stayed that way
in until this year when the
company
the international private merchant added
$1,500,000 from its surplus
banking field. After World War to make the capital
$2,000,000. The
II a group of industrialists and fi¬
surplus grew from $250,000 to
nanciers, includling Henry Ford $7,500,00 with $1,500,000 going to
II, Charles Payson, George T. its capital. Since November,
1890,
Weymouth and Mr. Vreeland, ac¬ when Kings County Trust Com¬
quired the bank, stimulated to this pany paid its first dividend,
regu¬
action by the renewed interest of lar dividends have been
paid each
in

chartered

♦

was

1907.

North

Branch of the Na¬
tional Commercial Bank & Trust
Co. of Albany.

severe

strenght

the

Rouses Point

fi¬
Brooklyn's

less

particularly effected

were

323,000.

muda.

The

1893.

another

of

Bank

International

The

struck in

first
some

prominent

in

Howard B. Fonda, Leslie B. Gillie,
John M.

wood,

Joyce, Jr., John E. Lock-

Harold

J.

Plunkett,

organizing the bank.
Among them was James S. T.
Stranahan, First Vice-President of
Kings County Trust Company,

mund, Robert P. Smith, Gervin C.

who had

Fred

served in the New York

L. D. Friedman (r

Ed¬

Co., Inc.

Investment Securities

ward P. Prezzano, Carl E. Sieges-

Stein, Holland N. Stevenson, M.D.,
A.

Storay, Ralph T. Tyner,

52

Broadway

New York 4, N. Y.

DIgby 4-0860

18

The Commercial and Financial Chronicle

(1718)

Continued from

j

often described

I

page

and the

We See

As
this

first

There

time.

are

so

matters that need to be

many

made

of the present Republican regime. It would, how¬
a grave mistake to suppose that this is another
way of saying that the party is correspondingly divided in
its attitude toward New Dealish or Fair Dealish types of

attempt to get vital issues before the general public this

of the Roosevelt and Truman Administrations. Some

cesses

of these

achievements

Administration is

The

plain truth of the matter is, however, that many
if not most of the really basic questions involved in the
New Deal and Fair Deal type of programs have often not
even been considered by the present Administration and

apparently completely forgotten in this cam¬

it

blocks of votes

Democratic

further than

Roosevelt and

any

members

Truman Administrations.

Apart from an

apparently somewhat more rigorous and realistic dealing
with subversives in governmental circles, about all that
the Republican regime can and does boast about is a better
and more systematic and business-like administration of
the New Deal and Fair Deal type of programs, and it is

into two

political
these occupy the

essentially this that is being preached upon the

such matters as
activities of the campaigners.

hustings today
minds and

far

so

as

good for him, individually, is and must be good for the
nation. Nowhere, or almost nowhere, according to this
is

substantial number of
voters willing and capable of standing aloof and coming
to grips with the welfare of the country as a whole on a
broad and abiding basis.
,
In

these

circumstances

any

it

is

inevitable that basic

principles
should be forgotten or relegated to subordinate.places in
the plans of the parties. It is commonly said that the
Republican party is "split down the middle" and that this
is the explanation of the "middle of the road" plans and
procedures of President Eisenhower. In one respect and in
one sense of the word the party is divided into two cliques
or segments, but this division or split revolves about per¬
sonalities, individuals, and party politics. For want of a
better or more terse way of expressing it, the situation is
as

Continued

Offered

as a

speculation

factors

out

to

billions

you

have

which

dollars of

of

I

of these

natural

gas

pipe lines.
the natural gas pipe line

Since

companies operate under the ju¬
risdiction

Commission,

Federal

the

of

Power

of the first steps

one

to be taken is to secure

Certifi¬

a

cate of

Necessity from that Com¬
mission.
This, gentlemen, is not
an easy task.
To put it very sim¬
ply, the Federal Power Commis¬
sion requires that you

Have

(1)

natural

line

either

to the pipe

available

gas

in

owned

of

reserves

proven

tracted for which

fee

or

con¬

that the

assures

will be available for

period
to
meet the initial requirements of
your market.
(2) Have contracts and evi¬

gas

least

at

of

20

years

need

and

or

a

more

salability

of

serve.

detail

meeting

engaged in the exploration and development of
and leases. The

com¬

and

WABASH 5-2000

LINDEN, N. J.

WOOD AVE.

copy

of the Offering Circular relating to Maine Mining &

this

have Let¬
ters of Intent from capital sources
stating that they are able to sup¬
you

the investment funds neces¬
sary for the construction and for
the
operation of the pipe line
company. in its initial stages." At
this point you run into that old
which

Exploration Corporation.
Name

Address

;.

i_".

s

j,

City—




_

•

^

Phone

•

comes

<

return

earn

to

present

in pipe lines—
Pipe Line.
Pipe Line

pipe

house-brand gaso¬

aviation

gasoline, jet fuel,
distillates and liquid

kerosene,

gasses, the latter
cluding butane and propane,*
the

natural

in¬

pipe
growth
be
approaching maturity, the prod¬
ucts pipe line should be classified
as a rapidly growing infant.
gas

ent, there
750

to its present high level
of economic development only by
the

enough

this

go
rate of

The

ventures.

into

to

growth.

thought

new

return

will

a

new enter¬

to

for

form

to

ize its

plans.

bankers

sells these

all

sections

The oipe line
officially born.

country.
is

then
I

line

have

is

cause

hazards
one

officially

of the

that

said

not

in

many

which

has the funds.

even

There

are

a

suf-=

service

the debt and to bring down suffi¬

is

not

an

easy

line

con¬

effects

which

the

on

over

to

care

head,

products

our

In each case,

my

discuss

the

pipe

railroad sys¬

however, I be¬

lieve that it would be difficult to
refute the arguments that

(1) the

products pipe line is the most
nomic and efficient

means

eco¬

of

ship¬
ping petroleum products and (2)
it

is

the

what

cause

public

consumer

For purposes of this
I

be¬

the reduction, or hold¬

on

ing down of

haz¬

wants

of the effect which the line

has had

after

task.

I

has had

tem.

be¬

However, the investment in natu¬
gas pipe line companies has

ral

would

impact

pipe

varying steel prices, haz¬
ards of providing the necessary
right-of-way at a reasonable cost,
hazards of delays in receiving the
necessary
equipment, and many
It

I would be out

nor

problems and

arise-

refiners

or

competitive

sure

company

business

the

which the products pipe line may
have had on them, because I'm

the

the

marketers

cerning

and

of

which

I

with

the

equity securities to in¬

in

vestors

efficient and

previously pre¬
marketing prob¬
should not like to get
involved in any serious discussion

The group of invest¬
around

and

consumer

more

difficult

lems.

group

turns

a

costly distribution of products
areas

sented

of invest¬
ment bankers for the purpose of
a

pro¬

the economy of the nation
in the reduction of

offered

less

from large institu¬
of funds, then pro¬

sources

ceeds

Intent

to

the

resulted

product cost to the

ahead definitely with the fi¬
nancing plans.
The investment
banker
who
has
been
working
with the new company and has
of

on

has

go

Letters

to

has

tioned, the natural gas pipe line
company
then ..gives the green
light to its investment banker to

usually

industry, to
the defense

The impact of the products pipe

Necessity and satisfied the re¬
quirements which I have men¬

debt,

beneficial

be

to

nation.

line

of

secured

and

gram of the

Certificate

the

continue

petroleum

public,

will seek other

secured

Having

this rate of growth

that

taper

will

attractive outlets.

more

This

ooeration.

outstanding rate of
While
it
is
generally
an

the

prise if capital is to be attracted.
If the rate of return is not attrac¬

tive, this capital

jn

ofL somewhat, many
competent industry observers pre¬
dict a future steady growth which

on

be commensur¬

capital must

ate with the risks of

approximately 33,-

are

noiioq

represents

of capital which was cour¬

use

ageous

pipe

mileage increased from 7,000

miles to 21,898 miles, and at pres¬

Our country h^s Pro¬

financing.

may

From 1940 to 1950 products
line

the latter objective is a very
tonrfer point at this stage of the

others.

of

with

discuss

petroleum

me,

,

rate

capital.

promising

mium gasoline,

should

like

to

prices.

discussion,

divide

products

pipe lines-into two classes; the
shipper-owned pipe line, and the

ards of

ficient

most

products

line,

-

providing a fair
equity-holders. Believe

to

first, the
chicken or the egg?
Obviously,
the money is not going to< be ad¬
vanced unless the pipe line com¬
pany is permitted by the Federal
—

more

fair rate

development

earnings

return

ment

The Federal Power Commission

saw

for
a

line, as you
ships all ,grades of clean
petroleum products, such as pre¬

Line Financing

cient

Power Commission to

a

com¬

know,

and allows the company to final¬

requires that

Com¬

to

the

A

is

sure

.be of little interest to you at
time.

also

that

want

day

would

am

I

the Products

in

I

Power

markets

you

party—but the

is
on

it must continually

for

return

Now

involved

ply

SONNENBERG & CO.

me

of

It

cases

financial

a

capital and must insure

requirements

these

staggering

Federal

the

to

come

its

constantly being argued

the

because

pany

buying the equity from the com¬
pany.- This step permits the issu¬
ance of the large amount of debt

work

product.

because

Products

tional

(3) Back up your representa¬

The

UNDERWRITER

send

firm

are

before

gressed

marketing studies.

has under lease or option mineral rights on over 68,000 acres
in Franklin, Hancock and Washington Counties in the State of
Maine and 1,045 acres in the Masham Township, Gatineau District,
Quebec, Canada.

Please

law

mar¬

it must

has had a dynamic
and, from all indications

tions by geological studies and by

l(ty per share

pany

129 NORTH

point

the

line

dollars. /

of

entered into the financing

_

PRICE .40c PER SHARE
The company is

to

the

of

plan to

COMMON STOCK

mineral properties on which it holds options

like

should
some

billions

■

future

a

because

company

mission, and it is

4

page

the gas in the markets which you

Mining & Exploration Corporation
Par Value

the

into

dences

745,000 shares

Maine

a

rates

is

It

gas.

market

Whereas

Economics of Pipe

of

New Issue

keting
also

party" is at the helm and the Southerners still

from

of

witn

itself

concern

reserves

the so-called

—

Evidently, something rather drastic needs to be done
to get basic issues before the voters of this country. We
think it could be done, given the rise of the right man,
but we must say that we can see little prospect of it in
the early future.

all but inevitable that

major political parties would be seriously divided among
themselves. It is almost

less distinct elements

or

^

natural gas

mostly vote Democratic, anyhow.

political success in this day and time is to promise almost
anything to the American public and cater as fully as
possible to their prejudices and their cupidity. It is all
too widely assumed that the ordinary voter is swayed
chiefly, if not solely, by his judgment as to what he can get
out of this or that candidate or party—or else that he is
consciously or unconsciously firmly convinced that what

there to be found

more

"rest of the

obviously,« a reflection of the situation
in each of the major political parties, and of the persistent
belief among the professional politicians that the way to

are

.

party

Southern conservatives and the rest of the

We have here,

view,

that

v

bring these points out because
pipe line is not just
a
transportation company; it is
also a geological, marketing, legal,
and
financial
company.
It is a
geological
company
because
it

party. There are, to be sure, a few prominent

of

i

under the

operate

I

a

to be said of the

course,

must

market for

bution of its securities.

who are still rather consistent
advocates of programs which would probably be quite
acceptable to some of the real American statesmen of
times gone by, but their number is relatively small and
they have little or no influence in party councils. The
party, like its opponents, is in a sense divided along per¬
sonal lines or in accordance with prejudice and trauuion

of the "achievements" of the

It

must

is, of

same

or

own

supply of

(4) It must rely upon the suc¬
cessful public offering and distri¬

few. dis¬

ar*

the

forth the rate of return,

sets

election day.

on

Somewhat the

in certain instances the present Administration

said,

tvoe. There

of the

are

for

a

t

jurisdiction of the Federal Power
Commission,
which
Commission

tressingly few, members of influence in the Republican
party who have not made distressing concessions to the
semi-socialistic trends of the day, or who have not been
taken into camp by some of the pressure groups by which
they are surrounded and which can supply substantial

paign debate. Others, despite large claims, have hardly
been more than dabbled with. And, with deep regret be
has gone

(3)

and self-reliance

parts of the New Deal and Fair Deal policies
at the same time that they vote for other

which

me

company:

must

company

contracts

on

let

character; of

pipe line

(2) It must have a
the sale of such gas.

and programs
measures

Basic Issues Ignored

have been

ardent way

lines,

gas in volume sufficient to assure

will condemn in the most

cut; Most of his followers

were

genuine, and the Eisenhower
warranted in claiming credit for them.
are

to

years

efficient service.

<

of the cloth of

grams and policies which were hardly
which historical American free enterprise

the

(1) The
have

and

remarks

my

pipe

gas

summarize

plans. Senator Taft himself — outstanding
that he was—was a supporter of a number of pro¬

leader

-budgetary improvement, tax reform, and some other suc¬
cess in eliminating or reducing certain of the
crass ex¬

recent

concluding

natural gas

programs or

there has been boasting about

in

It

cases.

more

the proper rate of return.

natural

be

most

become

difficult

in

in

investor

however,

secure

plain by much that has taken place during the two

ever,

the

more

description has been

years

tragic that a professedly anti-New Deal, anti-Fair Deal
Administration and political party has made so little real
course,

to

has,

Split in Evidence

of

True, of

'

v\

That there is substance in this

righted, and the righting of them requires so much public
education and public understanding that it is little short

autumn.

proved to be very sound, and has,
in my opinion, given a fair return

bifurcation of the party into the Taft

as a

Dewey wings.

.Thursday, October 28, 1954

..

_

non-shi pper-owned pipe line, both
o£ which are
normally common
carriers.
mean

line

is

which

An

by

a

the
is

example of what I
shipper-owned pipe

Plantation

owned

by

Pipe Line
several

oil

.

Number 5372

yolume 180

...

refiners and has
the Southeastern
part of this nation both in peace
and in war.
A typical example,
on the other hana,,of a non-ship¬
per-owned pipe line, which is
publicly owned, is the Buckeye
Pipe Line which serves Pennsylvania and New York State.
*

to

served

As

all

in

product through
the projected
pipe line. I personally believe that
once
a
responsible shipper has

the publie welfare, these pipe lines have
come under the scrutiny of Governmental Agencies. Both classes
of
products pipe lines operate
under the jurisdiction of the Interstate
Commerce
Commission,
In addition, however, the shipperOwned lines in the past have also
<L
been subject to the close scrutiny
of the Department of Justice. The
Elkins Consent Decree of
1941,
which resulted from action taken
by the Department, in a broad
sense, can be considered a restric¬
tive decree in so far as it relates
to the profits which can be carried through to the owners of a
shipper-owned line. I do not feel
that I should go deeply into the

tion systems which affect

_

.

i-

•

•.

..

*

iL«

•

but I might say

that this has been
trend toward

the

in

factor

one

this point,

non-shipper-owned lines,
The construction of the

i

lines to date has required
substantial amounts of capi¬

pipe
very

however, you
has bpen

most cases,

In

tal.

products

will find that this capital

provided by the oil companies or
the refiners and has flowed into

shipper-owned

the construction of

because of the
non-shipper-owned
lines, I believe that the substantial amounts of capital required
for these lines will be provided
by a much broader public participation than we have seen before.
I have taken you over some of
the problems of financing a natu¬
ral gas pipe line, and I should
now
like to discuss some of the
pipe

But

lines.

toward

trend

problems
of financing a
nonshipper-owned products pipe line.
of

^Estimates of the cost ot con-

from $25,mile dene/ ing, of course, upon the terrain,
size of pipe and other factors. You
struction run anywhere

000

$50,000

to

point

this

at

see

can

per

that

any

fairimmediately repre-

o^1
ed

Ku

nirifi

nbmrr

T nHoro

who

their

on

in¬

line' will

pipe
more

become

ate

vestment of funds.

this

Completing

discussion,

I

vape
^

^

basis of

Letters

I

Intent.

of

intention

the

try to get it."
'

A

of

rule

-

usually

capital

fol¬

for

a

pipe line venture is to obtain long
term debt funds constituting be¬
tween 60% and 75% of the total
capitalization. This debt must ob¬
viously come from the institu¬

tions, such as insurance, com¬
panies, pension funds, universities,
and certain foundations which are
best
of

this

matter
sources

lend

to supply capital
type.
It is not a simple
to
convince these great

equipped

of capital that

this

to

money

they should
a pipe
line

always

will

Money

outlet

an

ah

line,

lending agency

any

will have to be convinced that the

project is sound.
thorities
over

have

and

The lending au-

above

convinced,

be

to

the

nomics of the line

surely

as

paper

eco-

and the desir-

find

the

as

propriated.

sun

too

pf




.

wonder

(Special

American

The Financial

to

Chronicle)

BURBANK, Calif.

;

—

Elizabeth

Jensen has been added to, the staff

omy

,

'

the

the

that

result

public

route

has become easier than it used- to

shaping

be.

•

ever;

while

that

point out, how¬
the investment

banker must at all times convince

himself

of

the

soundness

and

profit potentialities of his product,
he

must

human

almost

exercise

care

in

preparing

supera

ven¬

capital financing for the pub¬
large private sources of
venture capital approach a pipe
line financing in a very sophisti¬
ture
v

The

cated

manner

haustive

and by

checks

making exsatisfy them-

to

I

up.

Asia

and

recent

to

appears

m

such

a

man-

Treaty

very

not

mean

economic

In

outto the satirfachon

new

and

trade

BURBANK, Calif.

that it

Zejss has

—
been added tQ

healthy

oppor-

6f

Nielsen

.

believe

......

tunity for greater activity in our

Lon¬

All

W.

G.

matter

Magnolia Boulevard.

of record only

is brighter. Many

example,

by

industry

self-

and

discipline, have struggled up from
the pitiful aftermath of war. More
and more of them are giving a
better
and
better
account
of
themselves.
Their production
is

their

increasing,

resources

NEW

October

ISSUE

27, 1954

299,000 Shares

are

NAGLER HELICOPTER

Belgium,

exports to Europe have
increasing.
The
dreaded

0ur

us

COMPANY, INC.
i

1

Common Stock

multiplier of the slightest down-

business here did not
—
quite the contrary,
Their economies have recently
been
helping
— to sustain ours.
—

turn" in

multiply

Other countries, too, are

ing

in

their

Price

$1 Per Share

proceed¬

expansion and

our

trade with them keeps pace.

this economic

Contrast

growth,

this developing climate favorable
to savings and investment with so
many experiences in the past in
so many

Copies of the offering Circular may be
from the undersigned

.

,

obtained
-

1

■

places—controls, quotas,

embargoes, subsidies, freezing, devaluations, even defaults, re-

pudiatioris

*

and

confiscations,

I

shudder to recall that horrifying

resolution adopted by the United
Nations* few vears ago in which

hS" isoverign

rights resuming natural

^

o.

,

ag^rwssively as-

a tip of the
prompt com-

JOHN R. BOLAND
30 Broad

Street, New York 4, N.

BOwling Green 9-3250

the

Co., 3607

of these Shares having been sold,

progress

scene

Y.

.

...

Philip E.,

this advertisement appears as a

abroad,

affairs

in many places.
of the
countries of Western Europe, for
there is

The

that individuals should not invest' been

in venture projects of a sound
nature» because as you all know,1
^ ^ country was built on this
Principle. What I do mean, however, is that the utmost care must
be taken in financing publiclyand
so
that the individual's
funds

offers

T

I

the

and

promising

in Holland, in Western
entirely 'Germany and, yes, in France,
the representation of the in- This has not meant less trade for
I do

world
..

..

don Accord.

and must rely almost

upon

of greater

investment.

be

^ves. that the project is feasible, building up, their dollar gap is
Ihe individual investor has narrowing, their economic growth
neither the.time nor the resources
accelerating — in England, in
to
satisfy himself

(Special to The Financial Chronicle)

direction
and

have in mind the

.

Southeast

I should like to

lic.

world

free

the

Specified number of barrels per cerned. ;This, is certainly, a basic.
dayrthrough the line. This agree-) factor in the proposals for any resources were
; meht is.not-ehsy to obtain, but if new project. - ..
serted without even
obtainable from responsible
-1 believe the products pipe linerJ-.af to. any duty of
,

No

v'

Now With Courts & Co.

ex¬

,No, each country that is to par¬
ticipate must build a sound econ¬

go

money,

pubirdistributionSince

the initial successes of the natural

y

,

tional'Bank Building.
>■"

pensation for private property

with money. Too much
cheap, like the love
money,
can
be the ■ root of

not to

..

of

the shipper contracts do ship a

Chronicle)

,

-

t

to The Financial

r" ROME, Ga.—John W. Williamn
will rise in the East. If there is private capital shied away from
is now affiliated with Courts &
countries so minded and preferred
more money about than the forces
to stay at home or go to
such Co., 213 East First Street.
of production are willing to use,
it will find its outlet not in mak- places as Canada.
Nor
must
international
trade
ing, jobs, not in making employ/With King Merritt
ment for the unemployed—it will and investment be built upon the
7
'-(Special to The Financial Chronicle) - *
reckless extension of credit that
find its outlet in inflation, in
;
CHARLEVOIX, Mich.—Dean B.
speculation, in stock prices, in the shouldn't be i extended at all to
Davenport is now connected with
non-productive shuttling of goods finance the sale and purchase of
King Merritt & Co., Inc.
' '
from one hand to another at goods that shouldn't be sold or
higher and higher prices without bought at all. Surely, we and the
W. G. Nielsen Adds
adding to real wealth. There are world had enough of that in the
limits beyond which it is better 1920s.
(Special to The Financial Chronicle)

serving the proposed future projects of merit are not
area, that the traffic will actually
Jeopardized. ' f
^ ;
flow through in sufficient volume I -should like to touch on one
to guarantee service on the debt
of the most important parts of the
and
to
provide
the
necessary; creation of a non-shipper-owned
margin
of safety.
Believe me products pipe line. This is Manwhen I tell you that this convince agement. It's the same old story,
ing takes a lot of. doing.
The for if there are good, able, honest
easiest way is to negotiate what people managing the
pipe line, is known as a "throughput agree-;, you will find that, where a seii.ment" with each of .the proposed ous error in judgment: has n at
shippers. Under this agreement been made,.the project will v/o.rjt.
ability

the

to

'

vestment banker.

-

added

'

dustp', they have a great respon¬

owned

been

for itself, based on greater
of W. G. Nielsen Co., 3607 West
much evil.
production,
greater
savings,
Magnolia Boulevard.
greater
freedom,
and
greater
j bave explained the procedure
The Foreign Situation
enterprise. We can help with our
through which you must go to
Two With Curran Co.
Now, finally, for a look beyond military aid programs and off¬
secure
the debt monies for the
(Special to The Financial Chronicle)
our own
shores, for opportunities shore purchasing
for this is a
pjpe ^ne.
The next step is to
beyond
those
within our own part of our national security pro¬
SACRAMENTO, Calif.—Core E<
raise the remaining 25% to 40%
James and Gertie M. Sands havo
gram. But we can stop subsidizing
of equjty money by either going land of which I have spoken, for
opportunities more wholesome economic nonsense and monetary joined the staff of The Currari
to
substantial
venture
capital
lawlessness. In our own interests, Company, 4336 Fourth Avenue.
than war, boom, and armament
funds
which
specialize in pur¬
build-up. I see these opportuni¬ and not as do-gooders, but as
chasing equities of this nature, or
ties in increased world trade and realistic
businessmen, ' wecan
With Harris, Upham
,
by going to the public. Often it is
investment and,' notwithstanding buy more, ease our tariffs and our
easier to secure funds from pri¬
(Special to The Financial Chronicle)
j ■
the many
difficulties, I predict quotas, and in turn sell more, all
vate
institutional
or
individual
KANSAS CITY, Mo.—Frank E.
that we shall see these on the without
risking
our
industries
sources; hence, one reason for the rise.
Bolin, Jr. has become connected
Here, I believe, is the next that are essential to our defense
term
"Private Placement."
This
with Harris, Upham & Co., 9111
whose
livelihood
and
con¬
great phase. I emphasize, how-f or
.g especiajjy true if the project is
Baltimore Avenue.
ever, that it is not a matter that tinued well being are - dependent
noj. Q£ sucj1 magnitude as to put a
„
.
.
,
strain on the resources of these ^es wholly, in. our .owmhands as upon protection. .:'
;
W. G. Nielsen Adds
nrivafp cn,]rr>p«?
Tf it i<?
thpn wp
some of our friends abroad are
The turn, I believe, is in this

ner

sibility to insure that these funds
are placed into sound projects.:
In the case ux the xx„aa-*xxxH^.of
non-shipper-

has

-

<

field to pipelines. Kaneb, I beHeve, takes the lead in demonstrating a method of financing for
future projects of this nature,

While most of them are
favorably inclined toward the inproject.

Chronicle)

King Merritt & Co., Inc.,
South Broadway.

(Special

'

money..;

as

evidenced by Letters provided by
responsible refiners will be car-

.

thumb

seeking

in

lowed

7

Harris

1151

£

am

ried out, although there is no legal
obligation. Kaneb has been operating for about a year now and
has successfully moved all the
products which I have previously
mentioned. Incidentally, Kaneb is
now
delivering substantial quantities
of Jet fuel to
major air
bases, and this is the first time
that a private pipe line has done
so.
This opens a completely new

The Financial

staff of

future

"The New Direction"

financed on the

was

confident; that*

to the time you

easy up

B.

we

to

ANGELES, Calif.—Robert

DENVER, Colo.—Neal C. Finch
is with L. A. Huey Co., U. S. Na¬

'

"Money is

LOS

a separ¬

3

always telling us
ft this area the political and
sents a substantial sum of money.
gag pjpe ]jne financing, this type
ynihtary climate in, the free world
1
a™„s,ure yOU have a l hveard tb® of financing has become more and 18 of h!«h. importance. This seems
erm.
term, "Money appears to be easy
be easy'
more p0pUlar with the public with
somewhat more favorable. for
A
clearer and firmer direction
meaning that you can borrow at a
low rate of interest, but in my
business we also have a saying,

problem, and

King Merritt Adds
(Special

*

Line, which

should

we

With L. A. Huey Co.
Continued from

nf

My firm at the present time is,
associated with the Kaneb Pipe

conversation pertaining to a
sized pipe line

the

many

that

that

darkness

and strength and in the living and
strength of the whole free world.

look forward
opportunities to
aid in the financing of the pipe
line industry.
V
to

in¬

here

area

much

the

of

for

type of pipe line presents

and

more

favored place for the

a

our participation
financing of these projects
good for ihe economic

nation, has been
investor, and has
aided the defense prgram of this
country.
We believe that each
good

is

this

in
so

light the light and carry it
forward
for
the good
that will
come
to
us
in
our
own
living

been

growth

it

and

products pipe line companies.

has

very

It

been

has

19

next

gas

We believe that

time that some mistakes; willbe
made, but over ail, I predict that
the non-shipper-owned products

pipe lines by using Letters of

Intent.

returns

crude, natural

is

economy.

there

underwriting

line

include

in the

v^toent. I■ ^eheve at the wme

evidence provides a suitable prop
for
financing.
j Unfortunately,
there are those who disagree with
me, some of whom are the people
who nave tne funds to lend. They
are therefore more than worthy
opponents. I believe, however,
that progress will be made in the
construction of non-shipper-own-

^tr

merits of this Decree at

substantial

people
enjoy

will

them

in

and

to say^at this, point
firm has participated in

pipe

which

substan¬

a

like

my

many

exists.

now

financing, and

the

that

believe,

invest

given evidence of his intent, this;

transporta-

of

cases

tial market for this
I

it

as

there is

L believe that

of

amount

specified

a

conventional line

shipper intends

warrants that the

ship

Intent

of

Letter

a

is to
which

approach

alternative

An

obtain

that

decade, and that
there will be variations from the

much easier.

comes

well

so

should

the job of financing be-, over enjoynext
will the V a tremendous growth

sources,

and

companies

(1719)

Chronicle

The Commercial and Financial

^

WesT

20

(1720)

The Commercial and Financial Chronicle.. .Thursday, October 28, 1954

F

Jas. Adams Reelected
Our

By Amer. Cancer Soc.

v

Reporter

on

Bank and Insurance Stocks

Governments

==========

By JOHN T. CHIPPENDALE, JR.
Investors

the

showing only

are

Government market

nominal amount of interest in

a

there

because

are

other investments

the income from the latter
obligations is more favorable than that which is obtainable in
Treasury securities. Another reason for the lack of active interest

The

Speeches by those that

S.

The main

ner,

of

re

the

S.

-

elected

Vice

of

Board

-

there

markets will continue to stay on the

in

the

of

were

periods, which

there

will

a

surprise when it

though

even

Milwau¬

Bond

Cocktails

from

5

Harold

to

E.

type

one

or

another,

will

with

7

age

be

It

results

between

Co., St. Paul,

with

Harold

Franke, The Milwaukee
Company, who is chairman of the
dinner. +
v::

seems

is

the forecasts and

losses

who

behind them, fire

teenth

A.

now

used in the late year

As yet

Six¬

fined

Malmberg Adds

J.

Malmberg

&

Co.,

money

not

market specialists

no

are

625

According to advices, it
been

will

There

STATE
and

as

so

are

a

number of

was

some

the

"Abroad,

tabulation

Obvious, Perhaps, but-

must be willing to accept a world
filled with diversities and build our alliance with
friends whose ideas
for ourselves. At
ance

be

we

may

home,

that the Bill of

willing to meet

we

not be willing to accept
must practice the toler¬

Rights champions. We must
idea at the level of argument

an

and
counter-argument, not at the police level of
suppression.
•'

Aubrey G. Lanston

"Fear of ideas robs
if

& Co.

we

are

us

to understand

of the

sweeping Asia and Africa."

INCORPORATED

William O.

ST., NEW YORK 5

WHitehall 3-1200
.

St.

CHICAGO 4

BOSTON 9

ST 2-9490

HA 6-6463

,

On

resiliency needed,
presently
Associate Justice

the revolutions
—

Douglas.
than

occasion in the past we

have
Douglas.
We think, however, that here he has uttered a
timely warning — which should be, but is not
always, obvious.
more

one

found ourselves in disagreement with Mr.

year

that the index

so

considerably above the low of 2Q4.23

practically all stocks show gains

below

show

we

price

comparisons

and

to date for 24 of the major fire and casualty

year

CURRENT
v

Aetna

PRICE

Insurance

MARKET
DEC.

POINT

31/53

'

1954

,

CHANGE

PRICE RANGE

62 %

56%

+

6%

80

-

56y4

32

29%

+

2%

37

-

30

30%

26

+

4%

33%- 25%

Surety

65 %

60

+

5%

69%- 57%

Boston Insurance

37%

33

+

4%

43%- 33%

American
American

Insurance

.

Continental

Casualty

76%

48

+ 28%

94

Continental

Insurance

86

75%

+ 10%

97%- 72

60

43%

+ 13%

64%- 42%

87%

77%

32%

28

69

62%

Employers Group
FidelityrPhenix-T

__

potential switch.
Ch^feAmericaa^-,
change iff quotas^ +«

we

high for this

a

companies.

v

34%,

38%-

aq-%*

39

93%

82%

41

44

Insurance

-

—

84%

76

St. Paul Fire & Marine

44%

33%

Security Insurance

41%

35

Springfield F. & M

49

49%

U. S.

76%

Fidelity & Guaranty

United

States

Fire

Westchester Fi*e

,

99%- 76

:•

43/4

39%- 271%

6%

76

-

-f-

2

43

-

32Y*

+

32%

Insurance Go. of No^ Ameriea

-

48%

+

139%

Hrtmo-rlncnwrni^v
«

+ 10

-

"-+

39% * i

*

.

f

Phoenix

Somewhat

time

equal to 279.69. Since

further decline

New Hampshire Fire

SECURITIES

same

compared with year-end prices.
In

though some of the pension
the longer term Government bonds

still in the market

At the

ease.

changed. Thus, it is to be expected that

the index is still

changes for the

seems as

MUNICIPAL




now

beginning to

surely be lower at the next reporting period.
Even

yield is attractive to

operations, and it will not take- much more of a
tions to put these over^ These are being done On: a price spread
basis, with the trend the same as it has bear; namely, -frmrrthe;
shorts and the intermediates into the longs,
^
Ji

45 Milk

were

buying has not been too sizable, but it has been substantial at*.
times, and there are reports that under the marketorders by theses - Firemen's
(Newark+ &funds are beginning to reach fairly important proportions:
s-r4 - V cgera Falls IfaaaamcSS

U. S. TREASURY

231 So. La Salle St.

the

reached earlier in the year and

because the income is favorable and they do not believe that prices
of these securities will decline much from prevailing levels. This

15 BROAD

the

as

Agricultural Insurance

buyers of

there

as

that time the index has eased to 262.03 at the end of last week.

Pension Funds Continue Active
funds have

major storms

one

were con*

in

Since then there has been

Also, some of the more distant Govern¬

at levels where the

couple

were

no

during the first week in August when it

real evidence that the various pension funds

now

underwriting operations

"Barron's" insurance stock index reached

refunding will be tailored to meet the needs

recently.

a

share prices would reflect the less favorable
prospects.

certain institutional buyers.

Broadway.

been

Much of this has

be

only

satisfactory six months

very

The prospects of another large fire such

Government

ment securities

DIEGO, Calif.—Frans ter

W.

to

has been around

Horst has been added to the staff
of

will

issues, there appears to be enough of the
longer term obligations around to take care of the demand which

(Special to The Financial Chronicle)

SAN

those

are

there

have not been able to put money to work in the securities which
have been coming into the market. Where investments are con¬

Street.

J. W.

there is

had

fire losses themselves

and this means the
shorter-term obligations. Also, it is being pointed out that the
monetary authorities are not anxious to have the Treasury in the
money markets competing with corporate, tax-free or mortgage
borrowers, because these various units are too important to the
business pattern to have any changes take place in these borrow¬
ings at this time.

with

2200

There

a

Livonia catastrophe in August 1953 was remote.

of the commercial banks and the central banks,

Percy

connected

Harrison,

that

time until

some

companies were-hopeful that !954 would be

of the better years so far as

forecasters, at this time, do not appear to be

the belief

It will still be

promising.

of months ag<x. At that time with

any issues in the
refunding offering which will be longer than a note in
maturity. They are of the opinion that the securities which will be

(Special to The Financial Chronicle)

Masaki is

to

large portion of private dwelling business

This represents quite a change in the outlook of

December

With Richard Harrison

Richard

hold

months, it is possible that several of the
a

finally be determined but prospects for the last half of

can

1954 do not look

too much in agreement.

LOS ANGELES, Calif. —Grady
Galloway is now affiliated with
Akin-Lambert
Co.,
639
South
Spring Street, members of the Los
Angeles and San Francisco Stock
Exchanges.

Even with the very satisfactory underwriting
six

where damage was extensive.

spring of 1953.

On the other hand, there

large

cover¬

type of business handled and concentration of risks in

upon

as

matter in which the

a

statutory underwriting loss for the year. -Experience
expected to vary widely among the different companies depend¬

ing

As to whether there will be an eightten-year obligation in the refunding package, this seems to be

(Special to The Financial Chronicle)

T.

first

cerned.

a

—

the

the solid part of the picture.

With Akin-Lambert

likely to be considerably

may record a

'

SACRAMENTO, Calif.

In

or a

-

extensive

more

was

likely to be rather unfavorable in the last six months

are

companies that handle

though some in the financial community are now
putting forward the opinion that the Dec. 15 refunding will con¬
sist of a "package deal," with the longest maturity in the "bundle"
not likely to exceed ten years. This, to be sure, gives plenty of
latitude to the guesses which are being made, but it seems as
though the near-term issues which will be a definite part of the
so-called "option deal" are being considered by the forecasters as

dinner

Reservations may be made

lines

of the current year.

that be must always have a
to new offerings or refundings,

differences

affected

area

Thus, operating results for those companies that have

powers

comes

at times the

the latest hurricane the

portion of their business concentrated in fire and extended

areas

special guest.

a

Because of this much of

by insurance and in other instances
few companies that specialize in small

greater than the total of the two earlier storms.

Refunding Expectations Aired

Wood, President

of Harold E. Wood &
be

of

the actual terms have been rather minor.

at the Alonzo Cudworth Post

will

information,

Club will be held Nov.

kee
3rd

7.

are

so ago.

is, of course, the hurricane and
the last three

insurance companies are concerned are

that it is waiting for the time

means

more

fair amount of investment buying being done in

a

bit of

MILWAUKEE, Wis. —The An¬

served

be

It appears as though the

Annual Fall Dinner

at

that several

month or

and the damage much greater. The extent of damage is still to be
determined. Because of the nature of the storm, losses so far as

there has been and still
specific issues.
The guessing as to what the Treasury will do to take care of the
December maturities seems to be getting a little more prolific, de¬
spite the belief that no matter what the financial district does in
the way of predictions these are not likely to be right in line with
what the Treasury eventually decides upon.

Milwaukee Bond Club

Clubhouse.

a

eastern states in

also sizable small boat losses.

the impact was felt by a

about the year-end refunding operation,

is

New York City.

of the

between

when

to
the
Society's
annual
meeting at the Hotel Roosevelt in

Fall Dinner

the

swept

been

boat insurance.

Even though the Government market is again in one of those

Chairman

Directors

gates

nual

for the decline

reason

that have

has

general liquidation,

no

the damage was not covered

Sporadic Buying Interest

American Cancer Society by dele¬

V

weeks

recent

trend of the Government market.

Adams

Adams, general part¬
Lazard Freres & Company has

been

in

Property losses from the first two storms were substantial.
However, a large amount of the damage was caused by water and

In

James

shares

Although there has been

months.

side and this will eventually be reflected in the tone and

easy
James

Insurance Stocks

—

insurance

considerably below the highs reached only

windstorms

in charge of monetary policy seem

are

indicate that the money

to

in

for

individual issues have reacted rather sharply so
now

the way of guesses or

fore¬
casts as to what the Treasury will do in the big December refund¬
ing. It will not be too long before the year-end operation will be
upon us. In the interim, quotations of Government securities are
getting more attractive to those that have funds to invest.
more

market

quite unsettled.

in Government securities is because traders and investors are in¬

clined to wait until there is

By H. E. JOHNSON

This Week

in

which money can be put to work, and

:

1

48

-

36%

•

+20%
-

178

,.+ 1%

+

102%- 83

3

47 %-

7%

\+ 8

-139*" +

48%* 38%

+ 11%
—

v.

-

40%

99%- 723/4
-

51%- 35%

6%

52

%

62

61

+ 153/4

81

-

45%

38%

+

7%

52

-

26 %

25%

+

1

30

-

+
—

62%

-

-

35%
46%
64%

37%
25

Number 5372... The Commercial and Financial Chronicle

Volume 180

Continued

from

In another

7

page

(1721)

eral

of its ads, the Gen¬

Electric

in

Company,

re¬

ferring to electronics and atomic

said:

energy,

Light, Power and Progress

".

.

.

no

one

can

certainty.

commercial

But

we

be

may

transportation

sure

devices

be

can

the voting age is

remaining problems are
primarily those of making the new
This

Doubtless

economical.

the

They

in

change

a

of

some

that

proves

such

spell

changes

another, and in
cheaper one.

From the

energy expands and more nuclear

viewpoint of the coun¬
whole, we may be sure
that it will mean many new jobs
for every job cancelled out. The

reactors

contrast between the millions

But

»

the industrial and

as

mercial

development

of

try

com¬

atomic

put in operation, we
expect the availability of large
are

as

a

em¬

amounts of suitable low-cost waste

ployed by the automotive and re¬
lated industries and the employ¬

products from these installations.

ment

can

And

the

waste

radiations

from

provided by the blacksmith
shops they displaced is an over¬
worked example. But it tells the

these

products

may one day be
directly into electricity.

converted

basic

story—the example is trite

but true.
Much Work Yet to Be Done

Naturally,
work and

to

much

applied research remain

be done and

before

leaders

this

becomes

practical

a

reality.

However, when this goal
reached, we shall see atomic

is

generators

of

electricity

the home.

in

use

This prospect offers

a

than

more

on

you

recall,

may

public

a

the

battery powered by
atomic energy. The amount of cur¬
rent produced was minute:
barely
telegraphic mes¬
sage which I had the privilege of

tapping out.

the

of the

a

far-reaching.

in disguise for
The new industry

blessing

a

art.

elder

lucrative

was no
longer a matter of
using nuclear energy as a fuel to
produce steam to generate electric

of

source

the electrical

This

revenue

industry.

for

A recent

shows that $450,000,000 will
be paid this year for the electric
current used to operate television
survey

current.

It was the direct conver¬
and radio sets in American homes.
sion of atomic energy into electric4
It is estimated that within three

power.
The principle has been
successfully established—and that
is always the break-through point

this figure will reach $700,000,000. :
I think it only natural that those

years

in the emergence of new forces.
When atomic batteries become

who make and distribute electric¬

*

ity for light and power with the
methods of today, should take the

available they will bring into the
realm of

of

practicality

miniature

a

long

devices,

array

such

telephones,

as

ods

shavers
the

possibility

radio.

how

of

had

not

yet

transistor

womb

and power

been

in

a

I have been

mar¬

velous midget already in practical
It was born of the explora¬
of

the

electronic

launched

properties

In

RCA

built
with

a

transistors.

It

set
uses

day

and

the

picture

The

fact

atomics

will

that
are

How
on

it be

can

done

a

portent of incalcul¬

able changes ahead.

Never before

have two such mighty forces been
at the same time. To¬

unleashed

gether, electronics and atomics
!

fated to dwarf

even

are

the industrial

and

many

-

"America is

practical
feasible,
and

we

expenses

no

one

trial

.

can

:

-

say

,r.

with

when the developments
I have touched upon will become
assurance




for

laboratories

Edison's

the

forefather.

I

considerable
two

was

terror

and

destruction,

are

unlimited.
To

keep

with

pace

the

science,

erate

steps socially.

our

.

have

spoken

anwers

now

answer.

and

its

the

wider

road

there is ample

Science

and

Society

rapid

must accel¬

we

close to

To do

so

true
and

We already know

how
can

they

will

estimate

will be.

In five

will

same

be

cost

topics of

the

If

with

my

multiplication

mere

Curtice, after inspection tour of GM plants in
Europe, finds there is good improvement in industrial produc¬
tivity and a rise in the standard of living.

of

Harlow H. Curtice, President of
General
Oct.

Motors

19

States
after

aboard

tion

progress,

GM

ple.

turing and

and

true

ured by

be

cannot

sense

the yardsticks

meas¬

we use

for
Its

electronics

or

nuclear energy.

standards

of

measurement

on

United

'Queen Mary"

inspec¬

material

things were the whole of
my task would be sim¬
But progress in the deeper

the

who

the

to

three-

a

week

Corp.,

returned

tour

all,

Eu- ;'

coun-

It is good for our

inflated pride
things we cher¬

to recall that the

ish

most—our

moral

great

and

religious systems, our treasures of
learning and art and philosophy,
our heritage of what is closest to
the

Divine

the

the

in

Declaration
us

mortal

of

forget,

never

—

have

Independence;
were

written

by torch, kerosene or candlelight.
Whether
the
splitting of the
atom can be called "progress" will

depend,
whether

m

the final analysis,
can

we

direct the

channels

of

on

find the wisdom

released power into

peaceable

and

con¬

structive use. We can all ardently
join President Eisenhower in the

hope

he

"the
man

expressed

miraculous

recently

that

inventiveness

of

shall not be dedicated to his

death

but to

his life."

.

That and

spair.

is

no

excuse

was

$

for

de¬

We know that electricity,

Motors
I have

pressed

and

Harlow

during the
postwar period by
which

I

visited.

ductivity

Curtice

H.

countries

Industrial

pro¬

showing good im¬
provement, and there is an ac¬
companying rise in the standard
of living.
/ 'r;
has

come

ly and
basis

remarkable
good deal

a

to be

appears

than

mistic

of

even

more

the

rapid¬

sounder

most

an even

.

v

personnel

United

States.

possible

They will be
built

sidy."

without

believe

the

left

Curtice

Elizabeth."
tions

in

He visited GM opera¬

England, Belgium, Swe¬

den, Denmark, Germany, Switzer¬
land and France,

r

Mutual Fund Assoc. Add
(Special

SAN

a

to The

Financial Chronicle)

FRANCISCO,

i.

Calif.

that

eral

Motors

operates

ingly good. We

are

exceed¬

are

expressing

our

Joins

confidence in their economies and
in

our

business

own

with

an

$182,000,000 program of expansion
modernization

to

the

meet

growing

demand for GM pas¬
senger cars and trucks overseas.

Witherspoon Staff

(Special

LOS
Scott

to The Financial Chronicle)

ANGELES,
has

Calif.

joined.. the

only

as

Seventh

West

Street.

been sold, this advertisement
a

matter of

record,

j

~

Bonanza Oil & Mine

Corp.

COMMON STOCK
(Par Value 10c Per Share)

PRICE:

AT MARKET

BUSINESS:

Sutherlin, Oregon. Company also

owns

—

staff

Joe
,

of

Witherspoon & Company, Inc., 215

certain oil and gas

interests in Alberta and British Columbia.

LD. FRIEDMAN & CO., INC.

as

■

United

prospects for to the staff of Mutual Fund Asso¬
industry, in the
ciates, 444 Montgomery Street.
European countries in which Gen¬

these shares having

52

an

our

States Sept. 15 aboard the "Queen

their

privately financed,
government
sub¬

Such

automobile

134,150 Shares

as-.

be¬

Europe

accelerate

can

NEW ISSUE

in

in

—Ralph S. Raven has been added

the

appears

•

greater

progress."

opti¬

few years ago.

"We

overseas.

progress

on a

believed

us

the

Mr.

the

is

"Europe's

our

General

our

staff

of" information

interchange

re¬

made

covery

encouraged

tween

strong

economic

executive

interchange

im¬
with

the

and the caliber of

ees,

gen-

and

that alone is the test.
Yet there

"I

uinely

of mind.

peace

.;;v/•

"My visit has been most inter¬
esting and
productive. J have
been greatly impressed with the
skill and industry of our employ¬

as¬

seven

ropean

and

Additional expansion projects also
are
under consideration for GM
France.

are

peace

many,

plants in Sweden, Copenhagen and

of

tries, gave out
spiritual, in units as tenuous as/ the following
beauty and virtue, happiness and statement:
fulfillment-—above

projects already have
for England, Ger¬
Belgium and Switzerland.

been approved

manufac¬

sembly plants
in

Expansion

years—

operating at about
those using coal.

for

travel

H.

operate,

what

to

-

happiness, stable prosperity,
lasting peace.
A/

I

a

human

room

must pursue in our search for

we

Company established in 1938 produces quicksilver from its m.ne

very

of

progress

.

own

again

on

this Diamond

as

of Light.

ben¬

can

think

Strong Economic Recovery Abroad
Harlow

of the first

assurance

but:

—

to

especially

General Motors President Reports

of

address—Light
Now, I should like to
say a few words on the remaining
topic—Progress.

to

occasion such

On

need

we

without colliding. This is the road

march of

robust

and Power.

let

This

Jubilee

increasing prosperity and
eliminating poverty, for health
and
happiness rather than for

the

research

which

certainly within ten—a number of
them

,

into

Full-

the kinds of plants which will be

the

.

gazed

economically
that many

people

General Electric

electricity.
Obviously

r

have

I

so

question by saying,
quote their words:

.revolutions brought by steam and
»

an

efit?"

and

simul-

full-scale basis

a

areas

tube

electronics

unfolding

Can it be done?

"

taneously is

Well,

produce power
10 years.

can

will make way for the new picture
screen
I have already described.

|.

about, in humility,

war,

5 to

not been:

look ahead confidently to the
when TV rp^eiver<; will u«e

transistors

life, then surely
"livingest" entity produced by man in
all the millenia of his history.

plants will generate elec¬
tricity from atomic energy.
Biggest
question
in
producing
electricity with atomic energy has

tubes

We

himself.

po¬

Its

The secret

can

tentials for the services of peace,

mass

that ig¬
spirit within us.
of Progress is in man

Divine

nu¬

Adam

Atom.

nites the

evidences of

products since the
declares, and I

new

the

"The atom

equipped
no

the

over

effectively we
that illuminates

mind and the Power

our

are

American business is the

series of

a

.

television

triumph

with

same

The

power.

and

Light

sized

have

we

except the picture tube.
now

reading

for homes in

•

Laboratories

1

do the

can

it

use,

the

quote their exact words:

can detect,
amplify and oscillate, which is to
say that it can perform the fun¬
damental functions of the familiar

electron tube.

of

end

No larger than a kernel

of corn, the transistor

.

to

need

Power

the Gen¬
eral Electric Company that seem
to me significant for the future.
One of them, having indicated the
rate at which the company has

use.

tion

and

power

intelligently

recent advertisements by

the

of time.

Today, the transistor is

a

as

growth and renewal

All of

split and

still

was

so

industry.

'Atomic

■

•

of solids.

enterprise

wrist-watch

a

But I could not foresee just
it would be powered.
The

atom
the

a penknife.
I talked about

years ago,

the

man

have learned to

coal, oil, and gas by
atomic energy will offer enormous
scope for expansion of the light

bigger than

no

Thirty

If

whole.

we

of

ment

electric

or

developing the new meth¬
of tomorrow., -The displace¬

lead in

wrist-watch radios, or vest-pocket
radio

American

for

On the

movies.

of radio and television has become

But the implications
were

older

death

prove

a

of that moment

be different, but the pattern

come down to us from ages when
contrary, by forcing motion pic¬ .there was no electric power, no
ture leaders to explore new tech¬
automobiles, no radio and no tele¬
niques, TV may in the long run vision.
The Magna Charta and

demonstration of

electric

enough to send

not ob¬

phonograph in¬
Nor has television meant

dustry.

the Radio Corporation of America

staged
an

the

solete

January,

to

will be channeled in the new

Radio broadcasting did

dream.
Last

the

on

business

directions.

fantastic

a

count

can

American

pace

ence,

bright hope for mankind and it is
based

we

of

they will make the most of the
new day and its new hours. Their
technical and commercial abilities,
honed on the whetstone of experi¬

small

enough to be installed for

.-v'S:-k;

with the great surge of
change. Rather than attempt to
turn back the clock of science,
keep

will elapse

years

\v

■

Besides,

fundamental

The figures and the percentages

clear

crystal ball—or rather the indus¬

progress.

to

the long run a

for

today's business or¬
ganizations. However, the whole
history of our American economy

public utilities.
simply be converting

fuel

one

exist¬

our

Man

also holds true for the Radio Cor¬

methods of operation

or

in

nation's

will

from

of

years

ence."

poration of America. It holds true

innova¬

the

of

some

call

products

likely to affect the basic structure
of

will

tions

of atomic energy is not

use

75

previous

may

reduced to 18.

Changes Spell Progress

The

process more

have

done, already

has been answered in the affirma¬
tive.

I

practical use before
they cast their first vote—even if

home will be atomic. The question
of whether it

which

forces

and

promising that we
expect to produce more in the
next ten years than in
all the
so

mentioned in

the

and

ven¬

predict that children born
today will see every one of the

that with every passing year, more
and more electric power plants for

industry,

I

ture to

yet estimate with

as

But

realities.

its

control

if

savage

But

beneficently.

All these fields—and many

others—are

How much of it and how soon,

v

canbe

too,

chooses.

21

Broadway, New York 4, N. Y.

.

,f

V

22

The Commercial and

(1722)

We Have Gained
My most interesting and thrill¬

Retiring President, American

may be a sigh of relief, but there
is also a feeling of regret and nost a 1 g

i

than two

more

of

and other situations

suit¬

a

story of

dent and VicePresident

the

of

are

of

about

In

over.

to

his

sue-

then

some

But

ancl
one

must

liave wanted to make

nation

work

hard

Convention dates

October,
office to

io

was

Miss

extending
13

give

the

America

return home

bankers

term of
Perhapsrit

my

months.

plenty

so

of

for

time

to

that the country's

would

from, serious

candidates

be

not

distracted

here

work

in

At-

intend

to

.

no

.

.

jn
in

being p
permitted, through your
dropmncnoec
and
graciousness, to
serve in the leadership of the As¬
sociation. It has given me an even
i
pupp
confidence

mn

anr

r,

stronger faith in the future
*

of our

Address of Mr. Reese before
Convention

Bankers

Oct.

19,

the

of

the 80th
American

Association, Atlantic City, N. J.,
1954.

<

if it

live

can

up

to the

our coun-

us

conclusion is foremost

one

J ears, to. travel so wiaeiy over tne

consumption. ' I have observed all

the future.

in

into

the

therefore, if I failed to take

g.ye

tions of what I
travels

yQu
saw

my

and

a

few' inventory building
to

heard

in

Maine to California,
Washington State, with
stops at close to 44 states in befrom

Florida
.

fwppn

to

x

x.

*and

-x

a—

.

i..

not

hard

to

the
local

industrial

nation

a

as

developments

us into hysteria.
One of the country's outstanding

a

in

developments

so

policies and opera¬
that our job of learn¬

our
us

terrible

tragedy

unsound

or

It would be
if banking,
inadequate

to

lend

its full weight to the po¬
tentials inherent in our nation's

Bankers have

growth.

a

great op-

portunity to play a large and constructive part. in the wonderful

developments that lie ahead. We
must not hestitate to accept lead-*
ership in those areas where our
influence can properly and judici-

'ously "be' ekercised, :T am cobvinced, and proudly so, that bank,
,ng has within it wonderful people
^9. not .or?ly ^m0nSi^rSe Jollity
in financial matters,"but who-are

economists said recently that the JJ*? ;
/most remarkable and encouraging dnn ,n ine naiI°" as a wnoie.
thing about the business situation
There is only one basic reason
is that the readjustments we have for the existence of banking. It
experienced have not fed upon must serve, and it must serve well.
themselves.
The optimism and The job that lies ahead, then, is
resourcefulness that so frequently for us to explore constantly and
have been brought to my attention zealously the .ways* that banking
these past few months, I believe, can still help to promote our na^
are the reasons why this is so.
v tion's growth—even after, one and

and stockpiling

consumption

answer for this lies not in
As a nation, we have consciously three-quarters centuries- of 'exist-f
single government policy that or otherwise exercised remarkably.^'encev. *
,I '•. t•\'A
h: i,
might be presumed to be able to good judgment that has paid off r Our Association, is based on our
turn the spigot of economic activ- in
stability — a sound base for .common interests and objectives.

MPvlPO

The

lwee"» dI,u iViexiLUIt is

genuine

the

have not

we

allowed

of materials, and from labor shortages
to labor fluidity; and yet I believe
that we have made these transitions remarkably well. /
>
:

observa..

and

man,

can re-

sources

worker,

like these to force

shooting war to quiet military
fronts, from inflation to price stabilization, from military plant expansion to peacetime growth, from

cross-

shaping
conditions
in
trade, industry, agriculture, and
finance.
I would
be
negligent
mjnutes

from

the

.'

still,

•• •

painlessly

for

banker.

It is not easy to make transitions

and

concern

business

—

instructive. Bankers are close to
swiftly
the nerve centers of the economy.
drawn

of

my

observations
our
country
has
gained strength through resource?
fulness, courage, and a deep faith

which were made possible for me
BeinS with bankers and other
groups in scattered areas is highly

are

in

and

larger

a

flowing

policies and practices, should fail

better stream of goods for human

.V^der such readjustments, as many of these developments, and
lew^Americans ever nave nationg in history have done. But port that they have been

lose

a

sight of

ity

*

further economic growth.
frequent- rumblings on the

on or off.
It lies rather in the
dynamic character of our nation,
In

Too
mili-

England, il did not find <tary fronts and the world political
changing fortunes in s'efene have hot produced the war
J parts of the textile industry, but hysteria that leads' to' scare-buyrather opiimism over the poten- 'ing--and/commodity
speculation.,,
*. tials
of new businesses and new! Equally as important, the transiideas.
One need only mention the tion from the Korean War to more
New

despair

over

atomic

,

submarine

"

■»

"•
"■*

the

of

through

giving

is

back

great.

or

ing is never ended.

,

that

A less

years.

sit

can

crosscurrents

through

tition resulting from the new
product and marketing 'research

readjustments

and
less
optimistic
nation might have weakened un-

1

*

■,-

fundamental

bankers

time
never

bask in the light of past ac¬

many

"/V///

••; -W

t

none¬

the

arrived—and

yet

The

a

me

that

complishments, small

a source

.

very

_x_.._.

Ann'ual

places have not shared

public confidence.

that have taken place in

currents

adjectives to
describe the privilege I have had
use

not

will—when

and the local banker. Sees

resourceful

They

lantiCvCity. '
I

that

responsibilities before it.

moved into

were

the

troubled

try in the past two

the

so

a

assurance

banking will share importantly in

that I

sure

enough,

its role in

and

world, and renewed

,,

would

has

Says it is "a

and this has been

detail

some

optimism, let

emphasize

tions tell

that role

aS°

theless

growth and concludes banking has been in

;;V\:

the gavel

some

man,

the forefront in maintaining

cessoramonth

gone fishing.

the, business

turned

have

Reese

worker,

would

ident

D.

the

to

concern

sound base for further economic

anyother
year,the Pres¬

Everett

and optimism," but points out

progress

al¬

most

over

affecting banking during his term of office.

the growth and prosperity experienced by others,

Associa¬

tion,

dence and

impressions regarding economic conditions

on

in

you

impression of confi¬

conveyed an

and

Presi¬

case, as

•

:\

Retiring ABA President reports

told

v/hat I have observed in my trav¬
els on your behalf; and if I have

'

;

!

living

years of
out

v.'Vr

■

.Thursday, October 23, 1954

have

I

;'A/'*

^

Bankers Association

President, Park National Bank of Newark, Newark, Ohio
2"

that

a

..

Strength

REESE*

By EVERETT D.

ing tour is coming to an end. There

Financial Chronicle

r

and

of

revOlu-

a

photographic process for
composing newspapers and books
of /the!, industrial
quartered in New Eng-

now

land.

A

presents

swing

down

peacetime basis has not been vOf-us^must

a

.

the- coast

strength

growing

great variety of recent
developments: the new office
buildings in the great,trade center

by ^providing. business, industry,
and labor with the incentives to

of New

a

York; the sprawling

h^yfe/Toll. undferstand-

.

examples

magic

tions is to stimulate and help its
members find more ways to serve
better and more efficiently.^ However, the real responsibility for
providing ; better banking rests
upon the bankers themselves-Each

accompanied by' a* defeatist attir 4*^ °f his obligations.
Butgit~ifr
tude on the part of government, not enough for-us todearn through^
Public policy apoears to have been our associations — state and na*
foctised unon giving full exores- tional—and other channels how to
sion to the b a s i c underlying be better bankers.
We must be

tionary

'as

It derives its strength only from
its membership. One of its func-f

of

our

,

nation,

better bankers,
to

Toward this end,- I would like
set down several major are&s

tap that strength instead of offer-

in

of the Fairless Steel works at Mor-

ing

ually and through our associations

risville, Pa.; and the

i

determined

arid

-cal

industrial

West Virginia,
linas, and on through
story

much the

Securities of the United States Government
;

-

areas

.Car©-

South.:,

a-fresh

burst

resources

are

developments

in

causing

State, Municipal and Revenue Securities

great

a

Utility and Railroad Corporations

The pressures of

growing population are cutting
pieces for our jigsaw puzzle

of economic life.

proud

am

;

Bank and Insurance Company Stocks

of

progress

and

optimism,

But I would be dishonest if I mis-

:

Many times in the

1(jans when riooles anthe

credit waters

on

sailing

became

experienced

hf»ve

on

this

are

score.

little

a

.'•«

./

.

We must stimulate the inter-t

the highest caliber of

est of

men

Ranking their
workiAll of bur learning
experience will prove

life'

jyigtcly of little
be

passed

This

oroblems

Demands for credit

being met: and. bv and lar^e.

you into beneving tnat I saw -the attitude of the lending officers
only the eood.
Some olaces have of our banks remains wholesome

How

can

capable manage-

ment

day

unless it

use

to

on

serjou<.

ig

mogt

bankina

of

often

the

Qf

one

does

to-

hear

one

abou^ mergers undertaken in part
consolidate

to

rougher!
complaint

no

dutiful

more

a

dynamic and growing

a

and women to make

unjustly, maligned because they
called in loans or refused to exnew

banking

servant to

1.

past, bankers have been, justlv or

peared

story

make

to

individ-

work

can

we

nation:

11

to note, moreover

lie confidence.
-

tend

Story of Progress and Optimism

which

...

front in helping to maintain pub—

'

A

patient

...

I

Public

the

be

that banking has been in the fore-

elec-

new

Bonds, Preferred and Common Stocks of Industrial,

I

of

energy,

tronics, and natural

many new areas.

could

Banking Has Aided Public
r
■"tConfidenee

older

activity, and atomic

and its Instrumentalities

it

whether

_

is

country
our

before

fencing growing pains.

the

Many of

had

crutch

a

Vir-; was.actually lame or just experi-

of

the

the

over

same.

have

chemi-

new

plants

ginia,
The

acres

personnel?
the
bank

and

important

today,

and

key

conserve

is

Personnel

most

assets

of

it does

yet

a

not

the balance sheet.

appear on

of

one

Let

itu

Bankers'

Acceptances

not

emoloyment
nificant in
cultural

Development

•

has

some

areas

been

not

insig-

cities. Some agri-

have been forced to

make needed

ply

Canadian Bonds

the

growth and prosperity experienced bv others TTn.-

Securities of the International Bank for

Reconstruction and

shared

Foreign Dollar Bonds

and

readjustments. Supdemand conditions have

intensified

the

forces

of

co^re-

and constructive.
cided.

in

no

They have been

s^all

the monetary poMcy of the FeH_
eral Reserve Svstem. When it. hecame

dear that the dancer o* in-

fla+ion had subsided, the monetary
authorities
courage

were

nromot

to

Now and

Underwriter

Distributor

•
•

Dealer

Contrary to the charge from
Federal Reserve Svstem

then—as in

dustry—technological
resource

the coal

in-

progress and

develonment

in

other

some

used

?s

a

being

tool of "hard monev"

p

lines have led to fundamental dis-

location^

New York

Philadelphia




flexibility has been domnr^tra+^d
that is essential to maintaining the

monetary

Older

Boston
.

Pittsburgh

Cleveland

.

Chicago

San Francisco

for

fibers

*uA-u

*

of

new

—

both

businesses

natural

ujx

and

companies have

their markets -invaded

base

needed as a
for sound economic growth.
stability

^,-^xi

,

room

miracle fiber products

the chemist's laboratory.

resourceful

made
in

xu

,

•

Banking has taken the cue, and is

actively

seeking out new oppor-

Less

tunities

to

seen

bank credit in sustaining business

by compe-

optimism.

encourage

the

use

of

of

our

systems.

increas¬

banking
Even

knowledge,
,

.

and
be

those

to

engaged
increase
their

to

not
,

educa-r

more

should'

opportunities
available

banking

only
.

in technical
,

,

.

bankjn^but abroader subr^ls WLl "e,P to .improve
standards o our services to

s',

the pubhe. A.I.B.. banking schools
and
as

related educational programs,

well

our

existing

synthetic—have had to make
for the

tional

wider

nolitica1Tv biased ouarters that the
was

and

vi4.al

a

We must continue the devel¬

opment

er-

banks to lend and invest.

tition, and thereby have produced
temporary local business setbacks.

2.

bv

measure

it

make

us

ingly valuable asset.

as

own

training

banks,

courses

demand

within

the

sup¬

port of all of us.

3. We

must

strengthen

our

bankjna
can

organizations so that
make most effective use of

we
our

state, local, and national associa-

ti°ns-

This means active partici-

Continued on

page

42

Volume 180

Number 5372 ...The Commercial and Financial Chronicle

(1723)

■

WMw.

Bill
mmm.

Sw'^v?:-.

I

|

V/frs/tf*

THE

ration will offer
Within a few weeks, Chrysler Corpo¬
five all-new motor
you

and

.

.

.

Plymouth, Dodge, De Soto, Chrysler

cars

will present,

tinctive way, a
named this

these

each in its

fresh styling

new

You will know
you see

express

.

concept.

own

dis¬

We have

concept the forward look.

why

cars.

we

chose this

They

are

in

kind of fresh ideas and fresh

seeking today in all the things

name

tune

feeling

when

with the

the public's contemporary feeling for

form that flows from purpose
with
the

Imperial.

These

LOOK

FORWARD

"These three words

*•

Chrysler Corporation's signal for a dynamic new era in your life!"

are

cars

'/#

a

spirit which would

to create cars

capture

and match

spirit of the people who would

drive them.
V

...

"

'/ C

*'•'*'

/

■

development,

y

■:

,

■

4

'

are

■

seem to

that reach

out

be in motion

to

your

make up

dealer

now,

be

among

I

new,

the first

suggest you

while he is smarting

to

his advance order lists.

cars

will be offered

as new

this

year.

Only these five will offer the forward look!

for

even

standing still. They have the
President

forward look.

you are

you use.

Chrysler Corporation designers set out to

Coming soon: The 1955 PLYMOUTH

•

CHRYSLER CORPORATION > THE




see

personally, like

something good and

Many

:

thinking, after months of

now come cars

the road ahead and

they

and

A
-

Out of this kind of

when

own

If you,
with

This Thursday see

Chrysler Corporation's great

new

DODGE

•

DESOTO

•

CHRYSLER •

FORWARD

IMPERIAL

LOOK

full-hour TV musical—"Shower of Stars," CBS-TV, 8:30-9:30 P.M., EST.

23

24

The Commercial and Financial Chronicle..

(1724)

A New
is

It

By JOHN J. McCLOY*

honor for me to
this gather¬

great

a

ing.

I

the

much

very

am

I

that

fact

o

c

m

as

age

this makes the

speak

tum

to

to

you

of

were.

Outside

you

the

.

which

of

,

occasion

one

I

is

and

then

was

deeply obscure to

now

elevated

was

it

On

me.

which I

such

only they were all
either customers or—I hope—pros¬
pective customers; and while I am
happy
to see
many
customers

be

may
I

have

Apart

sharp

from

most

which

me,

also

I

and
ana

verv
very

the

place

of

the

center

have

sensed

will
win

community level
community level,
address

Annual

80th
ican

by

Bankers

N. J.,

Association,
Oct. 19, 1954.

of

at

the

the steady and persistent demand
which those industries that serve

.

,h

{

.

t

er<^

™
confront

of

full

of

use

the

mo_

in

years
we

fail

its

move

to

make

resources?

will

or

Coun-

our

J.etain

to

recent

life —will

economic

ahead

wjn

pjrst

us

ab]e

be

mentum

And

we

our

second, can we continue to de¬
velop means by which we can
with

work

ing

achiev-

in

allies

our

defense

common

a

im-

and

proved living standards throughthe free

0ut

tions of

course

the

and

These ques-

world?

not

are

unrelated,

lie in the realm

answers

0f the

be
be

greater tnan
greater than

many

our
ever
ever,

of the old

future

■

! Iulure'

!;

v

I

,

an

in

allies
but

in
but in

pressures

with

all

provide
appliances and all those other

goods that make for
more

d

and

easier and
one

marke

s

for

such

ariri?

mnds
goods

ened
ened.

seriously

weak-

This is

I his is an annronriate mo
an appropriate mo

ment, then, to ask ourselves what

the

the

City,

implications of these

/

,

,

may

.

new

cir-

.

be for business

our

Technical Progress

skills and
"
And then there is another factor
those of
the earlier migrants.
And along which has never ceased operating
with this movement of people is a m American life but which m
continuing dispersal of industry some ways is more powerful than
away from the main centers.
The
before. This is the matter of
talents

that

incomes,
*
"

far

surpass

volume,

record
*

*

construction

of

—

technical change and, related to
x

.

«rnwth

"ow under way uin r!ew h™"4®.
new
*""" roads, new shopping centers, sometimes
"""
sometimes
schools, is all

new

to this
our

dispersal of
industry.

of

capitab

.

the -lifetime, of

^

*

of

many

which

brings with it

tunities

new oppor-

and steady

cite

can

improvement,
number of fac-

a

of speclai

mention, for they
Will have much to do with the
level at which we operate in the
mg

faxxr

npvf

At the tiitn of the century the

Higher Incomes of the People

electric

industry'

power

was

or'.flying
development of the 'machine The growth of the autopast 15 years.
Here I have in mobile lay ahead of us
as
did
mind the huge improvement that the
development of
electronics
for

another

hppn

maHp

in

the

incomes of

for higher prices,

j

the income of tries, and

the average American, after taxes, be cited

Tr1 °

,

all major

are

»

numerous

indus-

others

could

to match them.

the change in the distribution of is regarded as basic to survival by
income among our people. Most companies in many lines. Take the
of us have been conscious of the chemical industry, for example; it

one

of these—indeed, a
of the forward

generator

economy—is the
high rate of growth of our population.

Much

has

been

made

of

this in recent years; yet I am not
certain
that
even
now
we
all

its full significance.
only to cast back to

grasp

have

sentiments

had set

prevailing

an

m

the new cars and the crowded

highways and, for that matter, in
the increased salary and wage

outir\

movement of the

in

We

own

business

And

banks,

m

weil as in other busiinesses
"a^e n°j,
11

and ml?
kave advanced
®
^ain m
has been much the sma
matter of fact, as; I sa

we

a

|V

of

rncome

oroducts

nro-

it

fc

di-

^

increasingly

better
^

of its
prod-

in

research is not only

af 'new

at

of doi

This search for

and

new

thi

n?w equipment

advance in costs,
know

from

er

known

recipients

in

as all of you here
firsthand experience,

While banks do not lend themselves

.

of the

?"

ajme(j

JAnd

or

has been intensified by the steady

®

the

prewar

ductiorh

rected
as

whi1p

_

ucts not yet discovered

completely to the process
as automation, there is no

doubt whatever that much

new

equipment will be developed and

limit of 160 mil¬

upper

lion for the United
that

was

States, a peak
to be reached about 1975.

Population was actually increas¬
ing by only 1 million a year, and
the

level* set

144

million.

for

1954

was

some

These calculations

must have led to many an errone¬

policy

ous

on

the

of

part

both

business

and government for, as
know, our population,today
is expanding at the rate of about

we

3

all

million

has

a

year

it

and

topped 163 million.

well

reach

hence
1975.

and

186

205

million
to

210

already

it

is

clear

that

right circumstances

are

invited

to

avail themselves of

our

services.

Salomon Bros. & Hutzler
Dealers and Underwriters

af High-Grade Securities

Members /few York Stack

Exchange

•

PHILADELPHIA




•

CLEVELAND

•

CHICAGO

*

SAN FRANCISCO

DEALERS IN ALL

years

million

by

an

under

the

increase of

the
a

business.

next

two

decades

CANADIAN SECURITIES

can

Vancouver and

And

the impact is not
gauged from a mere
reading of the totals — there are
changes in the relative numbers

only to

Direct private wires to

Montreal, Ottawa, Winnipeg, Calgary,

The First Boston Corporation, New

York

great deal for American
Slock orders executed

on

all Exchanges

be

various age groups that
their own influence. Then
of

SIXTY WALL STREET, NEW YORK 5, N. Y.
BOSTON

mean

LIMITED

Members of The Investment Dealers' Association of Canada

We may
10

25 to 30% in the number of heads
over

McLeod,Young,Weir & Compamy

-

Now

Financial institutions

a?

be on a smaller scale were it not ^ther by voice, sight

-——*■
costs paid

wore

"exi Iew yedrsClearly

40 years

here.

us

a feeling of is half again as large as it was
Rather than abating, the pace of
strong forward movement, a sense in 1929. But dramatte ^ this totel technical change has, if anything,
of ?ontmFng growth and change gam appears, it is no less so than been stepped up. Research today

main

Policy

We

to forget
directly linked how far-reaching has been the
our people and technical
development that has
been compressed solely within
prone

a
are

than in the '30's—is

—

Our Steadfast

ta

markets J": such goods adds to
for movement of
the
forward

Jors
contribute to this, but rising living standards reflected can expect at least one-fifth
*W0 0r three of them are dejserv- m the new homes of the suburbs, bus'mess in 1975 to consist of

been

can

]arE,~

nf

r

has been made in tne incomes or synthetic fibers and plastics. To-

:

that is noticeably sharper

one

an

^pleasant life. No
fh t th
*tion

1,200,000 are movthe suburbs

an average of
ea®*1 y®ar
and

new

those which

We all

have

cumstances

over

In

continue to enjoy—

consumer

particularly

Certainly one-of the principal our people. Even after allowance day, these

characteristics of American life—

work

to

with

the

abating.

1907, almost a half-century ago,
some 1,200,000 people came to our
country from abroad, establishing
the Peak for such migration. Now

has

light on the
path that is at least open to us in

War

a

need

in

which may cast some

of

it

and

areas

many

signs

no

income

middle

new

will

Amer-

Atlantic

Questions

vast

a

market has thus been opened up,
and it has done much to create

acting to maintain that harmony

life,

It seems
it seems

McCloy

Mr.

Convention

the

harmony

which

whether it be at the national level
or the
or the

when

era

close

a

banks at

economic

our

n7World

II have at last been dissipated;

deen awareness or
deep awareness of

American

of

that

our

suburbs has reached massive pro-

in

capitalism inevitably
ever-increasing pau¬

an

to say, when viewed
costs, these higher wage and
salary figures have had their less
pleasant aspects, but the fact is

working in har¬

portions

which

Needless

peace.

shows
Great

Two

m

demand born

ness

experience with banking has

given

we

for active war, but m
shall be required to

up very heavy defense expenditures; an era when the vast
backlogs of consumer and busi-

first-

my

we

set of

keep

com¬

impression of

the

competition that

hand

new

a

new

*

start of a .new one curUy
t^*SSy"i"dSi toy
St
!his I"or.m,lgto sl.ngle life certain
trends
American
today

a"d a»
^ffa
preparing

long enough to know that I have

gotten myself into
petitive industry.

a

our own

political as well as the ecoare
bound to have profound ef- nomic.
Indeed, within the anfects on our economic and politi- swers to these
questions lies, in a
cal life. We are at the end of one
very real sense, the ultimate se-

boy at banking, but
involved in it just

been

with

in

circumstances—circumstances that

ImongTvlu ' Nowl
kJ

a new

we

confronted

are

group,

competitors'

for

advice, and credit assistance
minimizing its impact. Now

in this same spot and spoke to an¬

other

have
nave

generally, as well as for
business of banking.

Marx's

Karl

as

particularly that

on

to

complete re¬

a

of

perization of the masses!

and

Concludes, the strength and stability in

Allies toward international

our

try

the past two
been
particularly
Deen
particularly

witnessed the accompanying re¬
adjustment in business and have
played our part through counsel,

extraor¬

that it
that I stood

week ago

a

course.

regard,

have seen the
economy move from the support
of active war to a period of peace
—albeit an uneasy one. We have

I have to confess to you

only

more

forward

this

eventful,

dinary recognition.
was

a

years

connected, but

was

received

to

to

dignity of carrying an um¬
brella upstairs to the great E. T.
Stotesbury, who was
then the
head
of the banking institution
seldom

banker,

In

the

with

that

than anyone
eise? sits with his finger on the
puise 0f business. His is a unique
*
_
.
opportunity to gauge the state of
health of our economy and to determine what is required to hold

of you were born—was as
banker; that is, if you could
call banking running around the
streets of Philadelphia with things
in my hands called "items," the
nature

with

trite to say so but it is a fact

before

filled

.

leads

a common

progress,

is

Manifesto,

that

stated

the

first job—

a

.

standards. Reviews recent economic

What

this

Communist

continue to develop

Allies in achieving both

our

momen¬

ventures,

my

mony

many

u

can we

likely to continue, but much depends

present situation is

tutor¬

some

ing

„

work with

arising from monetary policy.

before

most

John J. McCloy

can

we

continue, and (2)

(1) will the

tremendous force of government in the economy,

stresses

a

was

banker

of

by which

defense and improved living

the fact

I

background for banking,

How¬

indeed.

is

of progress in recent years

means

pleasing to me
ever,

new

great questions now confronting the nation:

two

as

more

even

discussing the

about 40%.

futation

finds

banking, and
invitation

days, whereas the aver¬
income of the bottom two-

fifths of the population had risen,

Prominent New York Banker, in

to

r

from

down

actually

was

prewar

.

a

new-

e

years

Chairman, Chase National Bank of the City of New York

of

aware

viewed

am

relative

I

Background for Banking

asked to speak to

be

.Thursday, October 28, 1954

exert

again,
this rapid growth cannot help
but force vast change through de¬
centralization.

The

trek

to

the

Head

Office

50 King Street West,

Toronto, Canada

MONTREAL

OTTAWA

WINNIPEa

VANCOUVER

CALGARY

KITCHENER

LONDON

HAMILTON

QUEBEC.

NEW YORK

Volume 180

Number 5372... The Commercial and Financial Chronicle

(1725)

Only STEEL can do

jobs

so many

well

so

Modern Guillotine Cutting loose
.

from the

launching sled,

a

guided missile

severing the cables and
tubing between various elements of a multi-stage
missile, presents a number of problems. But this ex¬
or

plosive driven chopper, which can be actuated by
remote control, and makes a clean, fast parting of
wires and cables,

helps solve

some

of them. The

case-hardened steel knife blade in the device is of
USS Steel.

Hung by the Heels.

This

'by the heels while

fluid that is

a

down toward her head

as

new

diagnostic X-ray machine makes it possible to hang
opaque

the doctor

a

patient

to X-rays is injected into her spine, and travels slowly

fluoroscopes her spine in the search for

a

possible tumor.

The support for the huge geared ring on which the X-ray table is mounted, as well
of the sheet steel panels used on this unit, is made from USS Steel.

as

most

Ever See

a

crossing at

Skew Bascule Bridge? This is
45° angle

a

over

one

.

.

,

Miami Canal in Miami,

Florida, at S.E. 4th Avenue. Like its mate, built
at N.E. 36th

Street, it is floored with I-Beam-Lok

Open Steel Flooring, made by U.S. Steel. The
of this

use

flooring saved 272 tons of deadweight! This

bridge recently received the A.I.S.C. award for the
most beautiful

bridge of its class.

SEE the United States Steel Hour. It's

presented

every

local newspaper

Roof Raised in
xoof of this
was

used

members.

new

...

a

full-hour TV program

for time and station.

Hurry. 260 tons of USS Structural Steel went up in just 25 days for the
Municipal Civic Auditorium in Corpus Christi, Tex. "Lamella'' construction

a

kind of on-the-bias system with

Only steel

can

do

so many

jobs

so

diamond-shaped

areas

between intersecting

well.

UNITED STATES STEEL




a

other week by United States Steel. Consult

For

further information

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This trademark is your guide to quality steel

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•

UNIVERSAL ATLAS CEMENT COMPANY

4-1813A

your

25

The Commercial and Financial Chronicle

26

j

.

Thursday, October 28, 1954

.

(1726)
A

"The

Common
title of this talk

The
I

amplification. I will give you this
at once in order to remove any
tions,
y

apologies

and

thanks to

m

few

a

ago

years

"The

this

and
50

or

that

1900

As

1950—the

and

and

years;

know,

legal

use

we

both

opinion,

had to sum up those reain one broad sentence, I beit would run about as folumieu
Oldies
The
United States iws
has
lows
If

requi1"*-

we

sons

lieve

uamci

addition, public t

amateur

are

justify being there.

degree,

some

ouicr

been removed. In

of age.

came

to

not

closely at the reasons why
there, and how we can

look

of the

any

do

ments have been relaxed over the

of America
cence

stocks
all

we

listed

have

I

common

when the United States
completed its adoles-

years

rarity if

it is indeed a

funds

and

emerged as the financial center

pro-

that investment prochad a part in this change is
say

years.

By conservative funds, of
I mean the investments of
insurance
companies,, savings

this

banks, pension arid profit-sharing

more

plans, endowment funds, individual and family holdings, and the

suc'h as London has been for generations. This country became a
cheap money center quickly and
dramatically in the early '30's
when two seemingly unrelated
developments brought it about almost overnight. In 1933 the Federal Reserve authorities issued a
regulation prohibiting the pay™ent °f i"t®.rest on
bank

elements that have brought about

course,

change itself particularly as
these implications affect those of

various

many

forms

us

Without

pxeention

during

States

engaged

in

trust

investment

'

the

and

of

the

states and municipalities. The view of common
stocks prevailing at that time is
separate

suggested by this quotation from
an
opinion handed down by the
New York Court of Appeals in

investors

we have had services to
Provide ratings of quality, and in

ments

c

L

J™.

cannot, and must not, be subjected
to violent and sudden price fluetuations brought on by unsound,
speculative positions and manipulations. We, as investors, may be
position w
ill
*
in a jjuoxhwh to guard against

the
varying complexities of our economy or to the changing character
of a particular industry or company; but we cannot cope with the
contrivings of the gambling element that in years past has often
brought disaster to the conservative investor. It can be said, I believe, that we now have a climate
in which we can function in common stocks with reasonable expectation that we can buy or sell
in a broad market of acceptable
stability.

manv

■

„

Dract;ca]iv

an

period.

ffatiog andh de£lation- We
therefore, have to take the

Today

mUSt
Bankcrs

is,

h

,

.

HaiKPc

hnwJ

na^pd

gradual relaxation ha^
'
° T WO]jlrt 011P„ thaf in
futurp thpre will hp vprv fpw
a

J®;™,™ rinnnt.'rrv
DOwprs
,

,

Obviously, these broad powers
demand more : skill, experience,
and knowledge if they are to be
successfully executed. Full discretion carries a great responsibility and demands a high degree
of professional skill. The techniques used in supervising a legal
bond portfolio, or any bond portfl?i0 f°.r Hlat
^ fH' ^
adequate for handling a diversified list that includes a goodly
percentage of equities. The highest degree of ability and experience is needed in the trust investment personnel, with mature understanding at the management
level and in the committees involved in policy decisions. those
Per■

tors

roum.

Association, Atlantic City, N. J.,

and

timing,

by

policy

investment

vative

we

as

we

are discussing it here today? Why
In short, we are in equities does a cheap money market give

kTeeP. thfse risks £o a

for all

1954.

selection

interest rates; and I need hardly

add this pattern is still with us.
How does all this affect conser-

in-

evitable hazards involved; and

careful

Oct.

™lfc and dwds

f or^

time; and we

..

„

little

having

iu this room who has the
temerity to say that he will have
the wisdom to eliminate, or sub-

ir,

1934, to

years since

arbitrary

New York- for one
wj]]o anH
dppd<?

aii

thpqp rpctrirtivp Wnl

ripH

ever

take

have had annrovpd
nrotect us In a num-

we

- states

,

P««*aUy

or

during'then20evM?s sfnet

states
.

. j. .

j

no

•auring tne

r

by a mortgage or other se¬
position.; For such invest¬

cured

or

care

our

past, we were largely
in
debt,
usually pro¬

years

tected

gives the opportunity for
Development of Cheap
mutual
understanding
that
has
vestedin «t™kit hif« ilfMhpSrnn"
Money Policy
trol of the trustees- it« sqfetv
stantially reduce, equities from
The second development in the never existed before. Furtherrisk of loss is
longer denendent his trust accounts before the next direction of cheap money in the more, the financial position of intheir skill
discre- deflationary Period comes.
early ;30's was the government's dustry is, for the most part, sound.
tion* and the terms of & InvestThe fact is that common stock^-' . embarkation on the deep and^ SuHely^ the-corporations of this
ment do not contemplate that it are now ? necessary Part of ouy., troublous
waters of unbalanced country are today more worthy of
be returned to the trustees " conservatlve
investment fabric; budgets and large Treasury bor-y our investment:Consideration than
Ohvinmlv
?-nd and ,will stay S0' in good rowinSs adventure called for low
Obviously, thP atmnenhprp has timesthey bad, war and peace, in- cits. Thisto meet government defi- they ever were in our history.
the atmosphere
•

upon

of

radically

methods,

In

__

110 one

,*

tho

more

,

,

,

„

1869:

"Tho

history

To begin with, I do not believe
^at inflation accounts for the
wh°le movement, despite the fact banks to lend profitably for the changed aspect of American inthat majority opinion would prob- spread between what they re- dustry in the past 50 years. It has
ably 6iva it as the principal rea- ceived in interest from borrowers, passed through the growing pains
son tor the present broad use of In a real sense, this put a theoret- of the late 1800's and the early
equities. Tim funds that I am dis- jcal ceiling on the prime bank 1900's to the full maturity of the
cussing . have permanence; they lending rate, and thereby" sub- mid-Twentieth Century. Corpohave ^ c o n t i n u i n g investment stantially reduced the fluctuations, rate management now inspires
problem, in good times and bad. as well as the inflationary in- confidence; and its willingness, functory trust committees or thos<
even
eagerness, to
discuss facts, composed of officers and direcFurthermore, I am sure there is fluences involved.
figures, and policies with inves- tors

or

Government

various

a

should

and

iSiy
deposits. This immediately made iviaturiiy 10 American mausvry
it possible for the commercial
Influence number three is the

The Impact

real estate. Then
railroad mortgage bonds as
as obligations
of the United

mortgages

well

fully the implications of the

policy.

early and middle 1800's, conservative funds of this type were placed
came

investment

big

estates.

in

in

practice and to discuss somewhat

trust

of

change

big

£

the

business,
change our
approach to investment problems

of broad price movements due to

fessional, has accepted this liner- the world, and the United States
esses
alization and is now committed to = ;doiiar i<? now the free world's hard
a gross understatement.
It might, the granting of broad investment currency.
even
be said that the science of powers.
...... uoes that rather staggerinvesting conservative funds was
I should like to try to analyze inS role involve? It means prinrevolutionized .during
these
50 briefly the various factors and cipally a cheap money center,
To

*

character

whole

and

of maturity to American indus¬
increased responsibilities and need of skill in making investment.

Finds

try.

on

place in
country

between

Benjamin Strong

To

in

reaching effects than this big
change. In a sense, it alters the

stocks a necessary part of con¬
inflation, may be added the government's

Big

Change"
took

a

nothing

me,

far

"cheap money" policy along with the coming

pub¬

lished

analyzes the various factors and elements
"big change" in investment practice. Finds infla¬

servative investment fabric.

of

that intriguing
book

To

largely responsible for making common

tion is

Allen,

author

the

about

that have brought

the late Fred¬

erick L.

change?

of trust investment has had

during last half-century, Mr. Strong

render

to

as

big

substantial investment

does

in equities demand of us who are

of funds has been revolutionized

Pointing out that the conservative investing

well

as

of New York

of this

impacts

What

responsible for trust funds?

misc oncep-

•

and

STRONG*

President, United States Trust Company

early explanation and

sure,

am

By BENJAMIN

deserves,

Big Change''

had better

us more courage to
stocks. The answer

materially

price

fluctuations,

the

risks

et

mar

range

of

therefore
lxe

e

-in-

the

as

cial banking side may predominate> x am sure that every bank
president realizes today that the
trUst department can never again
be considered a routine operation,
a necessary evil, or now as an opa sideline. It
must be recognized

erat.Qn tha{ requireg decree of
yery
f taipnt and-highest the
broadened. No longer is it pos-

^ more stable interest rate

^now]edge

available

Sources of information

(2) A

more

equity

favorable

market in which to function.

^

a

more

mature

manual or

a

rating

officers must
industries and companies at

Investment

list.
gtud

hand,

first

industrial

must be

yible to run a trust portfolio from
the pages of a

.

climate in which to invest.
bonds,
What then are the implications

in

_

commer-

funds, we have:

Vioiee„tPOand0 often mpid'ehanges

SfieciativU fa

matter" how heavily the

h

that it re-

and

in

well
critical eye. No
may

So, to sum up the reasons why
are justified in being interested in equities for our trust
we

buy common

is

the

duces

A Summary

he subjected to a

and

financial

experience

investment

or

have

available to

them the reliable opinions of

those

who have this knowledge. Wise
Continued on page 41

well

prices of long-term
as
preferred stocks, now

appear

less

likely than

in years

past.
In

it

seems

fixed-income

the

CONSULTANTS ON

evident

portion of

portfolio now contains some-

the
'*

case,

any

that

what less market risk Jand expos¬

than heretofore,, and

ure

that ac-

'

balance of the list
may
be dealt with on a more
flexible
and
constructive basis.
We all can recall the days of 6, 7,
cordingly

and

8%

the

prime

bonds,

to

MUNICIPAL FINANCE

say

nothing of the periods of 3 to 4%

Stale and Municipal Bonds

:

yields. What this brought in the
way of price movements is also
a
vivid memory. Here, then, we
have the impact of a cheap money
market

influence

as

number

&

Chicago

Street, New York 5
Boston

Cleveland

•




•

Philadelphia

Cincinnati

•

•

Washington
•

?

of

Pittsburgh

the

public relations,

Reserve

System

and the

public finance.

sion

have

excessive
that

reduced the
speculative influences

individualized service are invited.

WAINWRIGHT & RAMSEY INC.

Securities and Exchange Commis¬
-☆

its value to all types

credit; sound financing of
capital requirements and other problems of
Inquiries about this

is

The

Federal

San Francisco

independent financial

governmental agencies in financial

self-regulation of our
stock exchanges and the super-'
visory
measures
taken by the

CO.

HAnover 2-2727

St. Louis

20 years our

improvement of public

me,

past.

48 Wall

over

advisory service has proved

changed character
of the equity markets, which are
considerably
more
suitable for
the investor tbday than in the

to

C. J. DEVINE

For

one

equities.
number two, it seems

in the trend toward
Influence

VITAL LINK

Consultants

on

Municipal Finance

sharply

prevailed for so many years.

70

PINE STREET

•

NEW YORK 5, N.

Y.

yolume 180

Number 5372

,..

The Commercial and Financial Chronicle

(1727)

Pure Oil's newly acquired Lemont

Pure Oil

Makes

strengthens refinery facilities

new

advances in oil

.

Refinery will

•

increased service

mean

Three

.

Pure

production and

acquisition of the large modern refinery at

Lemont, Illinois, Pure Oil capacity for service to
Midwest customers takes
a-




summer

at

Oil becomes

Two
the

new

pipelines

new

products from the Lemont Refinery.

boost lubricant sales.

Large

Midwest customers.

a
shipper-owner in the Badger
(new products) pipeline which will transport finished

pipeline participation. New motor oils

With the

to

a

new

line from eastern Colorado

major step ahead.

near

*

:

Beaumont, Texas;

Toledo, Ohio; and Newark, Ohio have further

pipeline from

50 per cent owned

are

Pure Oil facilities.

New

refining facilities completed during the

at Pure Oil refineries

crude lines—the Pawnee

Adena, Colorado field and the Arapahoe pipe¬

Pure

Oil's

'

*

products

prove

line of motor

new

Purelube" and the

new

r

popular
oils—"Super Duty

multigrade "High HP Pure-

strengthened the company's growing capacity to

lube"—have proved extremely popular, both with

serve.

the service station and

New oil

As

motorists.

production

a

car

dealer trade and with

consequence

Pure Oil's lubricant

sales have continued to increase
156

producers, out of the 182

new

wells completed

during the first six months of the
company a

year,

give the

highly satisfactory head start for

record of oil

production for the

a

fine

Proud to be

ican

...

Four

new

fields have been opened during the year

by Pure Oil exploratory drilling.

substantially.

growing part of such

a

vital Amer¬

industry, Pure Oil salutes the progressive spirit

that is

year.

a

so

prevalent throughout the Industry today

and that holds such promise for the future.

The Pure Oil

Company

35 E. Wacker Drive

Chicago 1, III.

Be

sure

with Pure

PURE

27

Thursday, October 28, 1954

Commercial and Financial Chronicle...

The
28

(1728)
.'

'

.

(

;

• •

.

/'

_

'

.«*

•

.

System-Past and Future

Our State Banking
heritage

By H. EARL COOK*

80th

testifies

Association

Bankers

the

is

state

the

state

banking
tem

and remedies that have taken

op¬

under

flourished, while raised and muti¬

each

the

Development of Bank Supervision

opposition was
an
understandable reaction to a
new and misunderstood business.
The deep depression of the late
1830's and early 1840's had at least
while some of the

average

in

clearing house

established in New York

was

1853.

strong

was

that

beginning,

the

In

City
there

opposition to the idea
office handle

central

one

significant improvement
banking, originating under the
state banking system, was the de¬
A third

in

The first modern

design,

than

rather

ignorance,

began to bewilder
citizen. Each bank
issued its own notes, choosing its
own size and color. Counterfeiting

supply

rency

conversion to na¬

tional banks.

in state banking systems.

the

to

erate

because of their

sys¬

building of
this heritage.
For
although
you

for further improvement

participating banks expired or

the

healthful, and sets forth a few suggestions

place. Finds dual banking system

contribution

the

Lays

established banks.

novelty of banking, and points to improvements

day I want to

of

tually most of these systems came
to an end because the charters of

performance, Mr. Cook traces history of
defects and early failures of state banks to the

imposing in strength and dynamic in

To¬

talk of

banking system as unique in structure,

Characterizing the American state

is yours as
American
bankers.

Corporation

to

of cooperation and
mutuality
o f
purpose which

successful

of Indiana, Ohio,
and Iowa. Substantial protection
was also received by creditors of
failed banks in New York and
Vermont during this period. Even¬
the systems

were

Chairman, Federal Deposit Insurance

American

the

of

convention

the

this

that

Most

available.

fore

fact

The

of modern techniques
supervision. When bank¬

velopment
of bank

ing began in this country, super¬
vision was virtually nonexistent;
it was not even considered within

this op¬ the authority of the state! What
It position, which came largely from supervision there was took J the
eliminated many banks which had the older bankers, gradually sub¬ form of reports of condition, but
mental
authorities,
your
banks
flagrantly violated the canons of sided, disappearing entirely when this was done only because; in
nevertheless constitute a system
it became apparent that the clear¬
sound banking and left the way
most instances, the
state was a
with an historic past and a chal¬ rency until he consulted the
clear for the state banking system ing house was fulfilling a long- stockholder. For example, as date
"banknote
Earl

H.

one

Cook

of 52

dif¬

well as the notes
added to the
confusion. No businessman could
be sure of the value of his cur¬
lated

notes,

as

favorable

one v

of nonexistent banks,

ferent govern¬

daily clearings. However,

consequence:

table," published daily

lenging future.

section of the nation—meeting the

needed
function. The idea soon
we might term its
as
1837 the right of the state of
age." Antibank feeling spread to other cities; and at the Louisiana to exercise supervisory
time the national banking system
An Antibank Mania
gradually subsided; and, for 20
authority over two
banks \vas
was
established, clearing houses
The wave of antibank feeling years beginning in 1845, the sys¬
denied
by the bankers on \ the
flourished
and
introduced were in operation in Boston, Phil¬ grounds that the state held; no
which swept the country did not tem
adelphia,
Baltimore,
and
New stock in their banks.
consist merely of criticism or dis¬ many of the great improvements
\
)
York.
In
like—of which we all have occa¬ which ever since have been hall¬
many
states, it was found

daily requirements of millions of
farmers, manufacturers, mer¬

sionally been the victims—but in¬
stead took the form of insistent

chants, and consumers. With as¬
sets .totaling
about $85 billion,
state
banks
account for almost

demands for the

This

American

system

of state

banking is unique in structure; it
is imposing in strength; and it is
dynamic in performance. Com¬

prising

banks,

9,000

than

more

banking extends into

state

two-thirds

of

commercial banks; in many
the
in

of

commercial

of all banks.
was

outright abolition

We

heeded by state

banks are op¬

erating under state charter.
Probably
there
is
no
better
testimonial to the inherent vitality

At one

time,

incorporated

legislatures.
fewer than nine
banking. Several
Other

Deposit insurance represents
contribution of the state

cite

the

first

in

this

con¬

of

development

the

primitive basis, even in the larg¬
cities. Messengers from each
bank would make the rounds daily
—or sometimes weekly or month¬

a

states,

est

permitting the operation of
previously started, placed
of state banking than the history great obstacles in their paths in
ly in the western and southern
of its progress to its present stat¬ an undisguised effort to eradicate states — returning notes, checks,
them. There have come down to
ure. The beginning was not easy,
and
other
obligations.
It
was
for a movement to abolish bank¬ us
many
stories of those who recognized
quite
early that a
the
importance of
ing appeared early in our history. understood
change was necessary, but it was
When the earliest bank failures banking to the growth of the na¬ difficult to accomplish this in such
tion and therefore fought to pre¬
occurred—at about the time of the
a
highly individualistic industry.
War of 1812—the fact that they serve and improve the banks.
The
forerunner
of
the
modern
brought to life
which

ment

significance
decades.
sified
*Ar>
80th

as

an

Oct.

to

for

the

be

This

feeling

the

nation's

address

Annual

18,

antibank senti¬

was

by

Mr.

Convention

Bankers Association,

banks

immediately

unexpected

were

while

of

great

inten¬

fickle

Cook

back

look

we

it is

cur-

before the

of the American

this

clearing house was established in

of

Boston in the middle 1820's when

one

the basic difficulties was the very

both

when

public

were

the

was a

bankers

the

Suffolk

the

England "country banks" permit¬
ting each "country bank" in turn
to redeem by offsetting, in whole

and

or

"country

of the abuses
the

result

of

in

course

of condition

legislature were both inade¬

to the

banking system prior to 1860. In
1829 Joshua
Forman, a public-

quate and irregular. Consequently,
members of the legislature were

merchant

spirited

New York

then governor,

of

bank

central

Martin Van Buren,

disastrous

the

that

from

State, proposed to the
consequences

might

failures

be

miti¬

sometimes appointed to
the

determine

of these statements.
the first bank examin¬

accuracy

These were
ers,

their

but it should be noted that
examinations were limited

investigation of the correct¬
condi-:

gated

by a system whereby the
provided an insurance fund
for the redemption of the obliga¬
tions of failed banks. Mr. Forman,

to an

banks

ness

of the totals shown on

tion

reports; examiners

conceived this idea
Canton, China,
where the so-called "Hong Mer¬
chants" made themselves mutually

actual

responsible for the debts of a fail¬
ing member. New York immedi¬
ately adopted his insurance plan,
which in some ways was quite
similar to Federal deposit insur¬

that

incidentally,
while

visiting

ance;
years,

this

and within the next 30
five other states followed

example.

were

appraise >the

permitted to

rarely

condition of bank assets. (
New York

When

was

consider-?

ing adoption of its pioneer insur¬
ance

in 1829, the charge

program

would

insurance

premium

place

a

reckless banking—to

on

the detriment of the well

managed

banks—was soon raised. It became

obvious that* if the banks were

to

mutually* responsible for each

be

then,

"action,

others'

at the same

time, there would have to be de¬

prevent¬
banking.
Consequently, in the same act
positors and noteholders of failed which provided for insurance, the
part, with notes of other

operated and what they could, and

undoubtedly

arrange¬

ments to redeem the notes of New

could not, do. Some
were

made

Bank

time

learning how banks

Atlantic City, N. J.,

1954.

upon

evident that

few novelty of banking. It

next
was

As

period,

that the early reports

another

time, clearings were conducted on

such prohibitions in

constitutions.

their

banking.

clearing house. It is not likely that
today's highly complex business
of banking could operate without
a clearing mechanism. For a long

no

forbade

states

can

nection

in many quar¬

states,

American

Clearing House Development

"Destroy the banks"

the cry heard

of

marks

ters, and not a few of these were

proportion is still higher; and
10 states, four-fifths, or more,
all

"golden

of all

number

the

every

what

enter

to

in the local paper.

of

banks"

received

in

the

business.

The

record of these

insurance

banks received,
a

degree

early state

shows

plans

that

de¬

in most instances,

of protection never be-

veloped some method of
ing unsafe and unsound

New

legislature introduced
concept of bank:

York

revolutionary

a

supervision: (1) Examiners would

appointed to devote full time

be

m

to, and receive adequate compen-,
sation

AGreat Milestone in Connecticut Banking
On

July 1 of this

year,

State Bank and Trust

The Hartford-Connecticut Trust Company and Phoenix

Company merged to form The Connecticut Bank and Trust

Company. This notable milestone in Connecticut banking brought together two
strong

and progressive banks with

a

rich heritage of service to

our

capacity to

serve,

♦..

Through these offices and with its

The Connecticut Bank plays

Business which contribute

so

much

to

a

greater

financial

major role with Industry and

the National

(2)

ords

to bank rec-r
recommend the

access

and- could

bank for unsafe and
practices;
(3)
Examination^ would be made at
regular intervals.
>

closing of

a,

banking

unsound

expect, there was
opposition to
this

As we would

considerable,

the opposition

Most of

proposal.

legislation was
directed not against insurance it¬
insurance

the

to

self, but against the hitherto un¬
heard-of idea that banks should

State.

Today, The Connecticut Bank and Trust Company has 21 offices in 13 thriving
Connecticut communities

the examination of
They would be given

for,

banks;

unrestricted

be

examined

a

individ¬

policy soon became evident; and,
exception,
every
state

without

which

adopted

same

time

for

bank-obligation
provision

made

insurance

Economy.

by trained

specifically appointed for that
task. However, the merits of such
uals

a

Many

supervision.

the
bank

at

system of

other

states

which did not provide for the in¬

Lillie

Honorary Chairman of the Board
Lester E.

Chairman




John B. Byrne

Shippee
Chairman

of the Executive Committee

The Connecticut Bank
AND

TRUST

COMPANY

also

adopted similar supervisory

Charles A.

bank-obligations

pro¬

surance

grams.
There

Raymond C. Ball
President

of

other ad¬
this aptly
termed
"golden
age"
of
state
banking. Among them: manage¬
ment techniques were improved;

vances

were

made

many

during

capital positions were strength¬
ened; state participation in bank¬
ing largely disappeared; and, in
many states, banking systems
were developed which, to this day,
have been unsurpassed in strength
and

integrity. Needless to say,

all

problems had not been solved
—particularly in the frontier
the

Number 5372

Volume 180

states

The Commercial and Financial Chronicle

...

the

which

progress

hopes

of

banking

state

en¬

thusiasts.

systems, and

even more important,
free-enterprise banking would
actually be more effective with

sacrifice of the essential

that

of

two

but

—

had been made justified the fond¬
est

tion.

with

healthy systems,'rather than
only one.

The Impact of the National Banks
In

the

1861

reviewed

came

period I have just
to an abrupt end

with the outbreak of

the

(1729)

states.

There

between

war

was

fear that

a

the state banks would not be equal
to the task of assisting in its fi¬

nancing;

and

lem of

Summing Up the Heritage of the
State

Banking

System

How can we best sum up the
heritage of the state banking sys¬
tem?
I would say that it is the
ability to adapt to changing re¬
quirements and conditions without

function

meeting the financial needs of

the

local

community and the

na¬

Of course, we are all inter¬

ested in

making sure that this heri¬
tage is not dissipated. We want it
passed on with even greater luster
to

those who

will follow.

quently, it is appropriate

Conse¬
now

to

suggest an important way in which
this

can

be

done.

cant role of bank

only is it
to

the

of

success

federal

ing of

gradually
be

lessening,., there

who

many

to
hold
your
standards
I believe that it is time for

the

public

basic

interests

of

vidual

banker.

which

examiners

merely

a

The

rules

under

operate

developed out of

perience of 150
have

indi¬

are

summation of preventive

measures

As

each

banks,

right to

be

so

you

proud

of

to

us

give

servants

these

faithful

renewed

support

that they may do the
job which

they

know

they

should

do—the

type of job

you want them to do.
It may surprise some of
you to

ex¬

of banking.

years

officers of state
every

an

all

know

that

of

part

in

the

a

number

money

Continued

of

of

on

for

page

42

should

uniform currency. Con¬

a more

system

a

federal

of

charter

banking
was

pro¬

posed, and finally adopted in 1863.
/
At the beginning of that year, all
of

the

chartered

country

banks

in

the

operating under state
but within about five

were

sanction;

years, the number constituted less

than

15%.

As

of

matter

a

fact,

toward the end of the 1860's, there
were
less than 300 state banks;
and

doubted

few

witnessing
state

the

bank

that

they

death

of

were

great

a

system.

The state bankers did not stand

idly by at this seeming break-up
their system.
The contest was

of

marked

with

bitterness, since it
knowledge that many

was common

supporters of the national banking
system hoped through this new
act

to

eliminate

forever.
two

the

Actually,
after

years

banks

state

the

for

first

the

of

passage

National Bank Act, the state bank¬

ing system

seemed

to

be

waging

winning fight. At the end of
1863, there were only 66 national
a

compared with
1,466 state
banks; by the end of the following
year, there were still
relatively
few national banks although the
as

number

was

467.

now

It

be¬

was

coming clear to the proponents of
the

national

their

act

banking system that

had

additional

be

to

revised

and

adopted

measures

acceptance of the

encourage

to

banking act
thoroughly rewritten to make
attractive

more

But

ers.

eral tax of 10%

the

to

state

important,

more

notes of every

-for

levied

was

cities,

deposit

business,

banking.

country
farmers

typical
close

seemed

bank

notes

the

were

operations

and. business

state

to

of

areas

the

to

the

large

a

prohibition of

a

In

where

essential

the

Except

where

this

be tantamount to

Fed¬

on

state bank.

larger

bank¬
a

state banks had developed

state

had

bank

of

either

to

join the national banking

or

We

of
-

the effects

see

can

banking.

year,

of these

in the cold statistics

measures

^had

the

By

of

end

that

the number of national banks
increased from 4^7 to 1.294

while
well

,,

These

are

all

important reasons for using
as a New York correspondent,
but National
City's friends agree that
the most
important extra service they get
is the Bank's well-trained, seasoned,
loyal
staff.
(Including 2,654 members in the
Bank's Quarter
Century Club with aggregate
years of service reaching nearly 100,000.)
National

City

banks

state

declined

from

1,000 to only 349.

over

City has long recognized the
importance of extra training to promising
staff members.
Throughout our organization
you will find key positions filled by
officers who came to us from all
parts of
the
country and who have taken part in our
specialized training programs. As a matter
of fact, our
present Chairman, who came
from Vincennes,
our

Indiana,

was a

have

City Foundation
Tour is made up

complete

a

City officer who serves
problems. As part of our continuing effort to- bej
of America's cdmplex economy, each year National

grasp

six-week tour of the country's leading industrial centers. The
of promising Citibankers. Here a group inspects an automobile plant.

sponsors a

TRANSIT, .BOOKKEEPING
ating personnel

So,

and

trained in

other oper¬

completely
equipped model bank, comparable to one
$50,000,000 in deposits. Here new

member of

are

a

with

National

College Training Class of 1916.

City employees learn basic bank

operations
Conducted

help you help your customers
anywhere in the world, one New York
correspondent—The National City Bank of
New York—is ideally equipped with the
resources, facilities, and trained people
to assist in
any banking problem.
to

on
out

day business,

a

full-time,

full-pay basis.

of the mainstream of
so

not to

as

day-to¬

interfere; with

regular Bank work, the Training Center
overcomes fundamental
problems of on-the-

job training. Curricula for these training
courses are available to our
correspondents.

This

of

the decade as though the
banking svstem was about
to disappear entirely.
We all
know what..saved the
Estate banking system:
deposit

state

BANKS ALL OVER THE COUNTRY

„

grow in giant
In the years prior to 1860,

1 deposits
the

had

of

fbut their subsequent growth
deposits

were more

large

as

state

lease

life

beginning

in

,

ous

in

American

of the most

of

gence

the

for

our

nor

in

was

a

the

ladder

It

was

one

emer¬

was

of

great

that

contest

banking

victory of neither

the other.

omy.

oc¬

dual banking system,

outcome

between* two
terns

banking,

important

It
of

was

time that there

America's

was

room




sysone

another step

not realized

you-r
•

territory

■

*

1870;

developments which have

curred

knows

\

_

our

group.

The

reflect on the numer¬

we

problems.

City's

member of

new

THE NATIONAL CITY BANK OF NEW YORK

the number of national banks.

When

is

serves

National
a

The Bank's
organized so. that the

you

and its

and in about 20 years, the number
of its banks once again exceeded

t

policy

officer who

than four times

as

on

coordinates

Domestic Division

was

circulating notes.
banking system took a

here,

Domestic Division's

ranid that by the middle 1880's

so
„

pictured

correspondent services, and is

smaller than
circulating notes;

been

yolume

National

ganizations. Highland C. Moore, Vice President,

banking began to
strides.

-

use

City's broad list of services—services designed
to meet the specific needs of
varying size or¬

?

-

sure our men

he confident that the National
your

continued during the next
few years until it appeared by the
end

.

can

has first hand knowledge of

trend

,

,

YOU AND YOUR CUSTOMERS
you

the

men,

system.
1865

of banking
experience, and up-to-date, high speed
operating departments whenever and
wherever
they can be useful.

National

In 1865 the national

it

York,

57 Branches overseas, 142
years

new

system.
was

National

City's correspondents call on
the Bank's 71 Branches in Greater New

econ¬

at

that

for both

Head Office: 55 Wall Street, New York

EXECUTIVE TRAINEES, many

of whom will one day move into
positions of responsibility, are selected for leadership po¬
tential demonstrated on the job or for their academic back¬
grounds. Training consists of a formal course of instruction
by Bank officers, supplemented by rotation through major
Domestic and Overseas Departments of the Bank. Here
George B. Roberts, Vice President and co-editor of the
Bank's Monthly Economic Letter, shows how to interpret
broad economic trends.

in fyfoild tyiide
Around-the-clock Tramit Service
Bond

Portfolio Analysis

Dealers in State and

•

•

Collections

I

fficmAinrj

Personalized Service

Complete Securities Handling

Municipal Bonds

MEMBER

•

•

•

Credit Information

Participation in Local Loans

Complete Metropolitan New York Branch Coverage
Complete Foreign Facilities

FEDERAL

NCB Travelers Checks

•

DEPOSIT

INSURANCE

CORPORATION

going places... sell them and profit.
Keep the entire selling commission 14
1%•
are

/

states

pay

you

were

felt that there

sequently,
under

throughout the years, have

helped

high.

supply consist¬
varieties of notes was

many

your stale systems and of the
men

who,

but, more important,
good bank supervision is vital to

currency

a

although the prob¬

deposit

insurance;

This

history of the state bank¬
ing system emphasizes the signifi¬

supervision. Not

essential ingredient

an

29

30

The Atom and
It has occurred to

ress

that is

ing

that

me

observations of mine

Mr.

dustry and in¬

Hi

ice of

-j111/'

our peo¬

%m

and may

%

WW#*

:

l

you

utilities because:

bank¬

as

ers:'

sr

I

|

(1) atomic plants will

displaced; and (3) civilian

that

not

am

inhabitants. Foresees

(2) increased demand for electric

I do not need
to tell you

equipment

use same

power means no

of atomic

use

power

subject

Price

the

'

,.

dlseases; and the use of radiation since the human

to

or

+Vi^.+ t
tool sinep t.hp mir'rncr>nno
that"! '?°J S1.ne,e th® microscope

bankers. If I

back

I.-

_—

—

almost

thousand years-

1
x t
and is what I >—
know * *
best.

nail

a

...

__

#

have

written

out

Still another area of development is in the field of atomic
Power—power to propel ships and
Power to generate electricity. The

here, then I
certainly can.

know that all of you

You will remember that the historic

Atomic

Energy

transferred control

ergy

from

military

monopoly.

Since

^om and electricity are my subJect * s mormn£*

en-

civilian

to

This

some

appropriated

of

reactor

cepts as there are moves in

forward

several

on

fronts.

somewhat the

ing the

i;

Annthpr

hoc

same way

that dur-

for the

material

atom

work

t

on

one

0f these

re-

Like any other power

plant> the
atomic variety starts with the fuel

The theory of

.

nuclear reactor is superficially

a

and

uses

-...

-..v.

that

j

fly

and

the

apart,

fragments strike other atoms and

picked up by a "coo ant"
and carried to
a

a

or

fluid

boiler similar to

steam boiler fired by oil

coal.

or

that

converts

water

as

it does in

into

steam.

turbine, just

a

conventional in-

any

xT.ii

U.U..U1.011.

uu

iu

iicive

we

is

varied

.

the

diagnosis

and1

treatment

to be practical; and one or two

of

Where

the scientist leaves off

•

turn out to be outstandingly

may

annual3
Bankers
Oct. 20,

and

the

engineer

takes

and

up,

mr'fri^ at athe ®0th successful. The evidence required especially where the work overAssociation, Atlantic CitJ" n^j" f°r any sort of solid judgment at laps, is the point at which prob'

1954.

''

*

REPORT

OF

this

point

CONDITION

is

just

plain

lacking,

OF

,

,

plant now being
that it may start

nuclear

sending

out

in

power

The Basic

Design
,

The basic design of the plant
has for some time now been an

aI?a I?ay

1980. Extraor¬

200 million by

pass

demands will come
play for air conditioning, in¬

dinary power

The most interesting and highly
developmental part s,
,
bre*{c}{or 9°]^* 1' ™ aJ
aDf t
?*£et in ° a~
Yess'el

satisfy our

for power, in¬
stalled
generating capacity has
doubled every 10 years in this
century, until it now stands at
100-million kilowatts.
I believe
it will continue to double in fu¬
ture decades.
Our population will
hunger

ravenous

1957.

#

In order to

economy.

We expect

built.

When Uranium-235 atoms nign

smashed

are

cover'" wide actor approaches-the only ap- stallation All "we have to do is
"range Indudine^the proacl1 now s5h?duled for con- deslSn and eng'neer this atomic
scbeduled
design
engineer
range, including the proach
photographing of' the insides of structi°n of a full-scale plant.
plant in detail, put it together,
steel castings; exposure of aeriNow, any or all of these meth- and make
do exactly what it is
cultural
seeds
to
radiation
to ods may prove satisfactory.
Or, supposed to do.
Unfortunately,
speed up the rate of changes in as was the case in making the *bat ™ not quite so simple as the
their
hereditary characteristics* bomb material, several may prove tbeory>
civilian

,

_.

.

be

may

those now being

and test a pressurized light water needed and used. Atomic power
reactor and primary coolant cir- will enter the picture as another
cuit intended as a heat source for major source of energy, not as a
generating 60,000 or more kilo- replacement but as an essential
watts of useful electric energy, supplement.
The rate of growth of electric
This is about enough to service a
city of 100,000 inhabitants; and as power in-this country has been
far as • I know, it is the largest about twice that of the rest of the

atomic plant primary system for established reality.
You may be
generating civilian electric power, interested in a few details,

Westinghouse is carrying The steam turns

bomb-

weap-

•

misssion, announced the award to
iiuooDiun, cuuiuunceci
ine
Westinghouse of the first contract
for developing and designing an

the Manhattan Project The coolant, flowing through pipes
ways of which are in contact with water,

war

obtaining
hnnn

mem¬

explored four different

broad

One has been in militarv
one;

a

conchess

a

This must be very Commission is exploring five difto Mr. Hughes.
Inferent approaches at once, in

the eight years of civilian control
of the atom, developments have
gone

years away.

Energy Com-

produce enormous amounts of
heat In the most common variety
game; and so in this program the of atomic power plant, the heat is
different kinds

pointed out,

into money.

discouraging

Murray,

the Atomic

of

simple.

the

year

year,

you spend a billion here and a billion there and it begins to mount
up

ber

$200-million program for developing reactors for industrial
power.
There are almost as many

then, the Fed-

once

essentially the
used. .
In the second
place, the de¬
mands for electric power in the
decades ahead will be so stupend¬
ous
that every resource that is
practical and available will be
as

same

plant will be

power

this week

ago

year

and its container.

billion for atomic

one

one

Atomic Energy
Commission began a special five-

development.

energy

As

$12

1946

government

a

eral Government has

than

of

of atomic

hands and made it

more

Act

was

that Thomas E.
v.y f-1

;■■■

Power to Generate Electricity

understand what

can

dates

;**

be just the person to explain
a
complicated technical subject
like atomic power to a group of
may

I

will

turbines

plants;

some

is still

point out that

T ficurp
mPMntiof
I figure, moreover,

vears
years.

steam

as

generators and transformers
be of the same types.
The

The

threat to

power

power

useful

race is still only
sources
gauges to measure and scratching the surface of atomic
onlv engikeep uniform the thickness of power technology.
I must talk
neering degree I hold was con- metals> rubber, plastics and coat- most extensively this morning
ferred °on me rather recently in a ings .as tbeY 8° through the pro- about our own work, in terms of
moment
of
academic
liberality. duction lines.
Radioactive iso- the experience of our company
But I have been exposed to this *?Pes have been described as pos- and our people working in this
atomic program for a number of sibly .the greatest new research field. This is simply because that
A.

atomic

no

of the coal boiler.

take the place

an

expert on
A

_

Gwilym

the

plant is being built 25 miles west of Pittsburgh, and will

be able to service 100,000

even

useful to

prove

art, we anticipate that
"uranium boiler" will simply

state of the

Reveals that first large

power.

atomic power

first place,

will use much the same
equipment and facilities as coalfired steam plants. In the present
plants

still only

technology," describes problems of de¬

power

atomic plant for generating electric

an

scale atomic power

interest to you

t

f

signing

ple may be of

pp.#

Price, prefacing his remarks by stating that "the human race is

scratching the surface of atomic

directly to the
peaceful serv¬

W&i

reasons.

In the

in¬

American

three

nothing is
I say that for

to that is

The answer

going to happen.

President, Westinghouse Electric Corporation

being made in bring¬
power
directly
to

atomic

1954

Electricity

By GWILYM A. PRICE*

some

the prog¬

on

Thursday, October 28,

Financial Chronicle...

The Commercial and

(1730)

into

automation, refinement of

dustrial

grade ores, manufacture df
high grade metals, better lighting,
low

a

appliances.
constant labor force,
merely in order to obtain the 23%
increase in physical output called
and more home

abou^ac.r°s® ®Jl. ^

With

leeJ
material will be ^uranium an
^re tnan iu tons may be u^ea i

a

population increase, indus¬
its use of elec¬
54%.
The utility
™ m turn will De Durnea ap. man probably will have to in¬
Thus we will der'™ P°we^
crease his investment by $35 bil¬
drilled lion or more in the next 10 years.
coolant will be ordinarydistilled If I were in your place, I'd lend
^a;£r*
'^
it to him.
He's a member of an

tne nrst core.

as me reactor

for

p

by

try must step up

erates, it wiU produce pWomum,

trical

energy

b

•

^WRr"mea"ing£^su^f

that ranks right
atomic energy itself in
development.

efficient industry

Reactor —by reason of the fact

along with

thatwaterunderpressurew.il be

of

rate

used.
The reactor which provides the
heat, and the heat exchangers
which generate the steam, will be
placed underground m concrete
and steel structures. These underground structures will provide
safety insurance over and above
the many protective devices built
into the reactor itself. The entire

Atomic Power

Still Some Years

Away

place, the wide¬
extensive use of atomic
for civilian purposes is still

the

In

third

spread and
power

away.
We speculate
1964, the total amount of

years

some

that in

atomic power installed may be in
the negihborhood »f 2 mililon kil¬
primary plant will be encased in a owatts. This would be 1.2% of
the
genuis of the scientist, of steel container, to confine any ra- the total installed capacity antici¬
course, there would be no such dioactive materials which might
pated by that year. Some experts
thing as a reactor. But this very escape from the plant as a result have estimated that by the year
fact has tended to divert attention of an accident. Actually, however,
2000, about 50% of the then in¬
from the painful, creative role of accidents are extremely lmprobstalled capacity of the electrical
the engineer, who must bring the able,
because pressurized, water utility industry will be nuclear-

lems become intense.

Except for

,

First National Bank
of

salt

lake

scientist's

city

dream

and make it into
SALT
AS

LAKE

OF

CITY,

OCTOBER

1954

RESOURCES
Cash and Due From Banks
U. S. Securities

(Par Value

......

or

Less)'

! !

earth

$26,143,768.15

changer, and all the other specially
adapted gear that comprise an
atomic power plant.

65,854,688.10
,r.u

Municipal Obligations

to

working structure
of
fuel
elements, control
mechanisms, moderator, shielding,
pipes, pressure vessel, heat ex-

UTAH

7,

down

a

8,159,466.79

The

»

,

Power Plant

,

TT

.

Undergoing

Liquid Assets

$100,157,923.04

Loans and Discounts

Stocks

15,443,749.37

,

80,100.00

.......

! ! ! ! !
..!!!'*'

Banking House
Furniture and Fixtures
Other Assets

Total

LOO

1.00

9,249.51

....

$115,691,023.92

......

LIABILITIES
Demand
Time

Deposits
Deposits

Total Deposits

7,192,705.26

.

Duquesne Light Company of Pittsburgh.
The offer stipulates that
Duquesne Light will furnish a site
for the entire project, will build
and pay for an electric generating
plant, will contribute $5 million
toward

$111,132,425.37

.

J
1

Surplus

750,000.00

....

1,500,000.00

............

Undivided Profits and Reserves

Total Capital Investment

! .' ! .'

......

2,308,598.55

$4,558,598.55

Total

I

Member

tion

of

the

Federal




Deposit

Insurance

Corporation

of

the

reactor
por-

and bear the
entailed, and wlil
reimbursement by the

any

government

plant

if

the

contract

addition, Duquesne
Light will buy steam produced by
the reactor plant at a rate equivalent to 8 mills per kilowatt hour,
This

first

large

scale

atomic

plant is being built on the
of the
Ohio River,

south

bank
25

airline

Pittsburgh.
cation is to

miles

west

of

be designed in such

safe.

powered.
If such an

correct, there

There

are

other features which,

frankly, I do not understand in all
respects; and some which I could
not talk about if I did.
One final

point, however, is worth stressing.
This PWR plant which Duquesne
will

demonstrates

operate

tion

two or

estimate proves to be
will still be in opera¬
three times as much

generating capacity, using coal,
oil, and gas, as is in existence to¬
So you see,

day.

ment is not

present equip¬

going to be obsoleted
out—or until it be¬

until it wears

advisable to
generation of
American private industry is will- atomic power will find its appli¬
ir|g to invest large blocks of cap- cation in an orderly fashion.
ital in harnessing the atom, and it
This conclusion is more than a
is able to invest that capital,
casual
one.
Westinghouse has
Now, I have not talked too often backed it with some $50 million
on this subject before, and I have
invested in new plants and facil¬
things

tried
y0ur

hard

beyond

to

imagine

has occurred to

me

if I

myself in

were

up

try to

I

I would want

down

were

permission,
an(j

doubt.

that there may

be several questions
to ask
you

any

place in the audience; and it

is

terminated. In

about

$115,691,023.92

cost

labor costs thus

power

1

the

plant, will operate the reactor

can

that they are inherently

Way

^wo

Last March, after receiving and
analyzing nine proposals, the AEC
accepted an offer made by the

waive

Capital Stock, Common

i

$103,939,720.11

...

.

I
*

•

a

Light

construction

Total

reactors

here.
would

answer

there and

With your
like to ask

those questions,

What Effect on the Utility
Industry
First what is atomic energy de_

velopment going to do to the
of

the

eco-

utility

indus'Xy?
That is, what is going to happen
to the industry's investment in
turbines, generators, transformers,

Our general specifi- and
other
develop, design, build, ment?

economicaly
Thus the

retire it.

ities

to

and

conventional

eqiiip-

and refine our
the thermal cycle

increase

knowledge

of

the steam

turbine.

second question I might ask
is this: Why do we need mass pro¬
duction atomic energy at all In
view of our rich resources in cool,
A

oil, and

water?

The answer,

.

nomics

comes

I think, lies

in the

the
of our
sources of energy, and with others
are approaching a condition where
rising costs make the continued
use
uneconomical.
Coal will be
a major but progressively limited
undeniable fact that we are on
road to

source

depletion of some

for

perhaps

75 years or

Within 20 to 30 years, the
contribution made by petroleum

more.

Volume

180

Number 5372...The Commercial and Financial Chronicle

and natural gas seems sure to de¬

cline.

These statements take into
account
the
tremendously
in¬

creased
in this

rate

of

fuel

consumption
Other nations are

country.

far behind
energy as

the

power,

industrial tool.
now

scale

prospect

Thus,

comparatively

and

is not an early
major energy source.
the long range view,

as a

in

when

we

ergy

requirements

forecasted

measure

against

en¬

con¬

ventional energy reserves, it seems
obvious that the books just do not

balance.

PWR

plant is an all-civilian
with no direct military

reactor,

application, since this permits
the

of

objective

The

real

issue

here

of

Atomic

Energy

fuels.

We actually

have no choice
Regardless of com¬

in the matter.

fully utilized, has

the energy equivalent of
1,500 tons

200,000 gallons of fuel
Geological estimates indicate
or

that the world's

of

reserves

uran¬

ium recoverable for less than $100
ton

a

may amount to 25 million
This represents energy re¬

tons.
serves

of

something

25

times

combined
tional

those

of

commercially;

power
source

apparently is going to be

atomic energy.

There is

light,
currently in
have been for

In

Europe, for in¬

stance, there have been interest¬
ing experiments in harnessing the
tides

ocean

glacier

in

and

utilizing

ent.

the

As

the

former chairman

famous English
that men dig

A

engineer proposed
shaft

a

ple, strong natural resources, and
intentions."

bad

Thomas

that

E.

Commissioner

said

Murray

are
running two atomic
against Russia—one for the

opment

of

12

miles

final

passed in
The

I

hundreds

act

of

believe

oil

one

of

of

tug

No

create

Interesting and probably signifi¬
has

also

been

done

in

uitilizing solar energy—that is,
collecting heat from the sun itself

harnessing

this

heat

earth's

re-

as

surface

to

generate electricity.
The AT&T
Company's Bell Laboratories have

ment,

least

there

and

ficiently

one

has

develop¬

been

suf¬

widespread

activity in
this field to justify Stanford Uni¬
versity
in sponsoring
a
World
Forum

solar energy.

on

stand that

a

for

20

some

steam

I under¬

mine in New Mexico
years

ran

small

a

engine by solar energy.

A few years ago, someone

$1

million

Vermont
mill.

of

on

had

It

private

a

one

spent

capital

in

type of wind¬

new

thing to

recom¬

should
a

but the price of wind

up

remain

while.

driven

A

constant

for

quite

1200-kilowatt

electrical

wind-

generator

was

built—and it worked—but it could
not

quite

compete

in

with

cost

electricity generated from coalburning boilers, so the project was
abandoned.

special
sources
of
have created considerable
speculation—more speculation, so
power

far, than
of

deal
to

It takes

power.

to

power

the

turn

light

wheels

of

great

a

city

a

or

American

industry.
When

Will Atomic

Another

question that is
is this: When

quently

asked

atomic

power

competitive

be

with

fre¬
will

answer

knows,

variable.

course,
tional

plant

power

is

that

guesses

where

located.

depend

method

that

the

the cost of the

was

also

to

and

to

be

the

atomic

Much

the

on

conven¬

never

one

used—the

thing:

plant costs until
one
one

we

learn how

rate

of

We do

certainly will

much
we

would

accounting

amortization, for instance.
know

no

are

Much would depend, of

on

a

full-size

build the first

and find out—and the second
will

be

cheaper still.

the

is

some

its credit.

to

cesses

notable

suc¬

One example

government-Westinghouse

in world

Yet

history, *,

the

immense

an

wartime

made

investment

in

synthetic rubber, in electronics,
in radar, in automatic controls, in
jet propulsion research. The fruits
of

that

research

being

are

ab¬

sorbed into the national economy,
to the benefit of all our people,

without
much

criticism.

adverse

has

stress

Too

placed on
unique aspects of atomic
power; too little on its similarity
to
other
military developments
that have

been

ian

Peacetime

adapted to

civil¬

of

use

the

atom does not depart as radically
from
earlier
patterns as many
have assumed.

made.

way

progress

With

is open for

and

at

the

even

accel¬

an

erating rate.
The

key
to
the
broad
and
development of atomic

rapid
power
use

for civilan needs lies in the

of

forces

the

normal

which

American

competitive
prevail
in
other

industries,

made

those

and

which

industries

rest

of the

world

for

have

on

any

can

made

run

free.

private

enterprise
for the
In

this

(Special to The Financial Chronicle)

Francis I. du

just as true to me now as they did
then, and which seem singularly
applicable to the situation in 1954.
a

de¬

chance, permitted to operate

Pont, 723 East Green3
:

Smith, Hague Adds
DETROIT, Mich.

—

Smith, Hague, Noble & Co., Pen¬
obscot

Building, members of the-

New York and Detroit Stock Ex¬

changes.

vate

company
to

resources

the biggest pri¬

even

tend

How

muster — we
America has

can

forget that

something vastly bigger than Gov¬
ernment

itself.

This is American

industry taken collectively, taken
as

whole.

a

So

long

to

Govern¬

as

ment

essentially monopolized the
atom business, American industry
—our greatest
source of physical
strength — could not adequately
its

shoulder

the

to

task

of

A

get

CLEAR PICTURE

developing atomic power.
Now,
thank heaven, the new act will
permit industry—the force which
is far bigger and stronger than
even
Big Government — to start
getting behind the atom and push¬
ing its development.

In

opinion, then, the new
atomic energy law, viewed broad¬
ly, is a great and constructive
achievement of the present Con¬
gress. It will unquestionably mo¬
bilize more
minds
and
greater
my

for

the

upon

broader

a

problems

of

attack

atomic

If

you

need the right connections in New York—if

information and advice

on

banking requirements overseas—if

picture of conditions and developments here and abroad,
will benefit from the

customers

you want

up-to-date

you want a

clear

bank and

your

your

correspondent banking services of Guaranty Trust

Company.

power.

During the debate

the atomic

on

bill last summer, a certain amount
of nonsense was spoken about a

"give-away of public property to
the
predatory private intrests."
this charge. It apparently is to be
an
issue in the present election
for

and

The

some

In addition

ties of its

to

serving correspondents in New York, this Company offers the facili¬

European branches and its correspondents in all parts of the world.

Please call

on

us

services

can

offer

for additional

information about the

time

to

we

to

correspondent banking

you.

.

come.

who voice such senti¬

men

ments, it

to me, show little
understanding of how democratic
seems

capitalism

works

less

and

faith

in its

principles. I do not impugn
their motives;
I simply believe
that they are wrong.
Their pro¬
gram

the

by

of government monopoly of

basic
now

a

means

of

production is

in

one

had been

ent

basis

field
could

in

adopted
this

on

a

country

of atomic power,

it.

If

perma-

in

We

have

because

tapped

we

140

the results
could

not

the full strength of

Capital Funds $395,000,000

Broadway, New York 15

Fifth Ave. at 44th St.

Madison Ave. at 60th St.

New York 36

New York 21

the

eventually have proved dis¬
-r-

of New York

country

after another that has tried
it

GuarantyTrust Company

thoroughly discredited

It has failed

one.

astrous

the third
be glad that




does

private

Big Government

Government

32 Lombard St.,

40 Rockefeller Plaza
New York 20

PARIS

BRUSSELS

4 Place de la Concorde

27 Avenue des Arts

LONDON
E. C. 3

Bush House, Aldwych, W. C. 2
Member Federal

Deposit Insurance Corporation

Francis J.

Lynch has become affiliated withi

•

of

era

\

(Special to The Financial Chronicle)

Detroit just six years ago.

I ended
that talk with words which seem

j

Street.

does

it

we-

Oliver has become connected with.

climate

—

If

PASADENA, Calif.—Everett, S.

would

which

...

With F. I. du Pont Co.

take hold and build

can

dwarf what

cheaper,
can

in

future.

when

—

enterprise

scope

..

and keep it there, I ant
that this country and
people can reach any goate*
they set for themselves."

after

it

But

favorable

.

place,

attitudes

one

before

It can endure

its

Gentlemen, I had the privilege
speaking to this audience in

cent

system,
survive-

restore incentive to its proper-

vided by the spontaneous coopera¬
tion of a free people."

"Given

been

never

can

confident

technology,

Wilson, quoted recently

said at that time:

It

out¬

by D w i g h t Eisenhower: "The
highest form of efficiency is pro¬

I

American

us.

system.

will not let it

capita supply, widespread use,
and low price.
In the words of

of

this

for

everything but the hobbles whicK
grind the machine to a halt and.

per

Woodrow

do

as

standing in comparision with the

been

the

use.

faster

have

government • also

eight years, great pro¬
been

law, the

which

son

law is perfect

is.

ever

more

a

provide

commercially
conventionally

produced power?
The

partnership has

This

and flourish under demands sueik

has

gress
new

Passage of the Act did not silence

Power Be

Commercially Competitive?

one

for

resources

these

All

law

—no

puts

mend it, at least—the price of coal
may go

partnership.

cannot

in the past

public and

many

I haven't heard just how hot they
find it down there.

at

ment-industry

operate, then*
economic rea¬

private hearings held during the
past 18 months.
It reflects the

claim that the new

announced

government

meant to

going

am

drawn up

was

hours

company
has gone down more
than four miles in
California, but

the

the

was

August?

new

and

on

that

nothing within

tially amended, was ably drafted
and ably administered.
Certainly,

for

energy

question I

viewpoints.

and

true

it

is

susbtan-

to ask for you is this: What about
the
atomic
legislation that was

pull

"ceived

is

as

time

Atomic Legislation
The

and

work

It

Energy Act of 1946,
first

the

purposes.

nuclear

internal

cant

recently

we

races

straight down and tap the earth's
heat.

of

Atomic

Energy Commission,
Gordon Dean, has said, "The Rus¬
sian program operates at a high
priority with highly qualified peo¬

the

of Mont Blanc.

power

advancement.

for

now

are

they

as

decades.

some

need.

we

peaceful

power

news,

way

production of atomic weapons; an¬

conven¬

to

for technologi¬

race

The Atomic

might

has invested heavily in atomic fa¬
cilities and research in a govern¬

other

no

to close the
what we have and

between

Other predicted sources of

the

that

other for leadership in the devel¬

fuels.

heat, and

and

world's

the

of

resources

cal

we

ground

ing the submarine Nautilus, first
nuclear-propelled undersea craft

order

the

on

Russia in the

lost

joint effort that brought into be¬

costs, we are compelled
develop some new source of

The menace of Russian progress
in atomic technology is ever pres¬

energy that lies in the nucleus of

have

parative

what

the atom seems almost limitless.
You will remember that one
pound
of uranium, if

industry, and

therefore

to

hand, recoverable

On the other

oil.

so

Limitless

Almost

of coal

not

much whether atomic power is or
ever
will be cheaper than fossil

gap

Is

is

American

con¬

or

fusion of the end results.

presently known
Volume

ex¬

ploration into the subject without
dilution

Water

big replenishable

one

is

resource,
small

in the utilization of

us

an

the

31

(1731)

Commercial and Financial

The

Chronicle... Thursday, October 28, 1954

(1732)

&2

Banking's Contribution to a Dynamic Economy
I

am

—if

only

cussion

The

•

After reviewing

ities,

and

ture

fu¬

discharg¬

ing our great
responsibility
i n
providing
credit

commerce,

of

expansion which will come

year of

There
better

George Champion

is

forum

for

no

such

I welcome the opportu¬
nity to make a few personal ob¬
servances along these lines today.
group, so

romnlishments
svstem

of

much for which
We

vears

considerahlv

have

more

and thew

the end of World War II
triDled

in

Rut

nrewar

banks

than

.our-loans^oustandine sinee

doubled

havp

find

we

be Droud

can

we

ar-

hanking

our

recent

over

thp

wp cnrvpv

comnarison

shown

with

this

than

morp

have

our

flexibility

a

and willingness to adiust to chane-

ins needs that have

read down the list of

our

a

of

growth

have

We

economy

our

made them

the huge

kev factor in

onlv

to

current

activities to realize how true this
is

the wide

use

of term loans're-

volving credits and standby credits

methods

new

utility

expansion

loans

the

for

credit—all

little used

century

oil

spread
of
as

ago.

these

financing

production

of

consumer

unknown

or

recently as a quarter
•
In war ' in peace '
--

through periods of incessant pres¬
sure, we have met the demands
that were put to us with resource¬
fulness and imagination.
Now this past year we have
w

faced
tion

a

—

younger

somewhat different situaone

is

that

bankers.

to

new

"

the

It has been

a

■

"

""

€f AA/i

1 H

good

V\ ri

v»4*

part

economy from

tive

war

to

armed peace.

U

*

r

«-%

/-»

Ut

*

■£ 4-

I

maintenance

It has posed

•'

w

a
shift in
the support of

by

of
a

our

an

ness

r* n n

r\4-'

4*1A

t

n

/-I

r f\

1

rvv\vv\ AM T

OP

Many banks throughout the nation
actually extending more credit
today than they were a year a^°while this is not the case for all.
banks in larSe centers, even many
of -^em are lending more than in
the like Peri°d of 1952 or 1951—
times which we then regarded as
extremely active from a lending
P°int °f view.
This lending exPerience of our banks over the
past Year reflects developments in
the ecor>omy with which you are
a11 familiar- Yet I doubt that the
Seneral public appreciates the key
contribution which the banks have
made *n helping to hold the business readjustment to modest proportions. I should like to review
rnatter with you for a momebt, for there is much of interest
and value in the record of constructive achievement made by
last met.

.

„

..

„

,

T,

It may

here

Actually,

,

the country. It is highly signifithe record. There is no doubt cant that throughout the current
about its being a most satisfactory readjustment, capital spending by
one' Banks have Played their role industry has remained very large.
with regard to the inventory prob- At the same time, outlays for the
lem exceedingly welllengthen- construction of new homes, coming commitments where necessary, mercial facilities,;and public
extending new credits, and pro- works have actually been mviding sound counsel and advice creased. - We bankers cannot claim
on inventory policy.
Complaints credit for all of this, or perhaps
that the banks have failed to stick even for a major portion of it.
by their customers in these less Yet how different might the piceasy times must be few and far ture be if we had failed to display
between. I for one have heard a confident and resourceful attinone.
The results are written tude in our countless dealings with
large in the experience of recent "all sectors of^the business cornmonths — a gradual reduction of munity,
inventories with a minimum of *G Without question, the record
distress selling and an impact that shows."that the policies of banks—
has failed to disrupt business.
' and: of business generally—have
Then again the banks have con- paid oft' well over the past year,
tributed to another sector of the The adjustment brought on by the
economy that has displayed un- end of the Korean War has been
usual strength—the consumer and accomplished with a minimum of
Today we are able to look
luaay we are auie io iuuk.

his

spending.

Here

terms

The national prod-

disturbance.

;for

great elements

the

of

dynamic growth that shape Amer¬
life

today show no signs of
weakening.
.

ican

to turn

tain

the

structure

rate

to nonbank
somewhat

a

to ob¬

sources

their

through

needs—chiefly

issuance

of

share of

larger

and the sale of commercial

Now these
that
nor

in

not

are

sense

any

should they

alarm.

surprising;

are

for

any cause

that

months

18

years ago many

businesses

unwise

it

felt

paper.

developments

be

know

We

to two

the

long term obligations

issue

long term

they

normally

obligations,
would

to

as

have

because of the

done,

structure.

rate

They came to the
instead; and we were for¬
tunate in being able to take care
banks

of their needs, even

where

the

usual

in

some cases

funds

of

source

closed to the borrower. Today

was

the rate structure has changed, as
institutional

other

and

have funds available.

investors

As

result,

a

again are
expanding their long term indebt¬
companies

many

once

edness.
'

>

Then

rate structure
in recent months has encouraged

the

again,

expansion in the sale of com¬
paper.
Today the total
stands at about $2.2 billion.
Cor¬
an

mercial

A

JSohco- de Pancei

ing at

a

industry must serve a
larger by a fourth than at
present. Incomes are rising stead¬
ily as productivity improves, and
market

Agencies

a
*

is
*

vast^new middle-income market
opening up.
Huge numbers of
people are on the move, leav-

our

*

ing urban centers for a richer life
*

the

in

;

:
:

suburbs.

Industry

known, designing

at

new

products and developing new ways
of doing things.
Many of the

new

products re¬

sulting from research and devel¬
opment involve increased outlays

Moyoguez

arid

business

by

in

the- consumer.

Television sets cost

letters of credit

than the

more

radios of

yesterday, and the new
improved models will cost even

and collections

than the present ones.

more

Upwith

to-date electric refrigerators,

expanding

their

Puerto Rican

improvements,

than the early ones.

Market

bile

has

doubled

in

the past 15 years

finer

much

Broadway—Phone: Dlgby 4-1140

are

the

borrowers

America is get¬

reecived

if

are

we

net

our

this

all

banks.

cannot

new

It

help

but

opportunities for

can

be only

a

ques¬

tion of time until bank loans move

Cabo Rojo, Arroyo,

on

„

our

to

new

our

bank

forget that
to

access

com¬

be

which

the

be foolish indeed to let this

small

the dog so far as our rate

tail wag

concerned.

is

structure

The

bor¬

required

In the meantime, it would

ability.

activity of corporate treas¬
the open market points

in

urers

another factor that has a bear¬
on our loans—an increase in
the liquidity of certain companies.

up

ing

Several

to

have

developments

tributed

this

freed by lower

—

has

cash

con¬

been

inventories, for

ex¬

ample, and the flow of deprecia¬
tion funds has expanded greatly.
This

it is estimated that in¬

year

will have available some
$14 billion from depreciation al¬
lowances, about double the amount
dustry

in

set aside

huge

credit

volume
tinues
tal

1949.

While this is

a

it need not displace our

sum,

bank

in

any

substantial

long as business con¬
expand and make capi¬

so

to

improvements

on

the

present

scale.

I

peaks.

Such has been

history in the past, and so it

Capital

in

Guidance

for

needed to produce and

large

of

to use
to continue their avail¬

should

believe

we

Spending

ourselves

are

charged with a certain responsi¬
bility for guidance in this matter
funds

Now

have

lines—lines

rower

of

create,

aggregate

Nor should we

loans.

ter living.

Ponce, San Juan, Moyoguez, Arecibo,

$300

is small compared

itself

total

with

merchandise these things for bet¬

IN PUERTO RICO

than

less

and represents a

car.

value

dollars

9-3425

Guayama,(ayey, Utuado, Santurce, Caguas,
Aibonito, Aguirre

cost more
The automo¬
price within

all its
goods, but the fact is that more

ting

IN NEW YORK CITY

153 East 116th St.—Phone: ENright

is

work in research on a scale never
before

been
the

1952 has
million, and

since the end of

paper

bank

population is expand¬
rate of 3 million annually.
our

1975,

By

<

New York

Products

New

Today

,

The increase in commercial

tive.

mercial paper only because their
credit
is
fully assured through

and

Population

Expanding




by changes in

our^dis- credit have been lengthened where uct, for example, declined only 4%
necessary,/and requirements for at its lowest point. Industrial out- porate treasurers themselves have
new loans have been eased for the put fell off no more than 10%. acquired an increasing amount of
this paper, encouraged to do so
time, it was agreed that many most part. This faith in the con- Now there is evidence that this
companies would have to reduce sumer appears to be well merited, modest downturn is beginning to by the very low rate to which
inventories, and that inventory re- for the rate' of delinquencies re- saucer out. Inventories have been treasury bills had declined. Yet I
believe it is important that we see
Auction generally would play a mains remarkably low.
reduced to more healthy levels;
major part in shaping the business
Finally, our banks have never the decline in defense spending, this activity in its true perspec¬
Some of you may recall

important,

51

However,

sources.

cussion. at the Credit Conference
in Chicago early this year. At that

*

in

little when account

firms have been encouraged

some

at
ai

*i,*A«m?driss byi Mr* Chan?pion fefo/"e picture in the months ahead. So wavered in their great confidence which we ourselves felt in reduced
American Bankers Association) Atlantic
it has proved to be. In our dis- in the future of the American loans to machinery and metal proCity, N.
Oct. 18, 1954.
cussion, moreover, we concluded economy.
On the contrary, we ducers, is flattening out; but most

^Specialize

that

and

dropped very
is taken of all

—

some

credit in use by
industry has

total

commerce

steady stream of credit that has
helped support the expansion of
industry, as well as to maintain a
high volume of construction across

consider

to

special circumstances

affect bank loans to business.

now

available

have

we

,

be worthwhile to pause

moment

a

the

of

powerful

most

fall short

a

^ Satisfactory Record

•

that

means

generally,

new

are

we

ti/J nwl 5

orderliness of this development as
as with its impact on busi-

well

challenge to us, and I believe we
have
met
it
remarkably well.
nave
mei
ji
remarKaoiy
wen.

the banks since

/\

ac-

the

with

fidence

ahead, al¬

may

1953.

of

Affecting Bank Loans

have continued to back this con-

that the policies pursued by banks

transition and adjustment

!0r business generally, brought on would have much to do with the
in

a

discussion than this important

Pprtainlv when

"

the record

Special Circumstances Now

industry, and
the individual.

healthy demand

a

though the volume

increasing population and enhanced output

an

have

to

for loans in the months

executive of New York bank¬

of old and new
products. Calls attention to special circumstances now affecting bank business
loans, such as corporation open market borrowing, but holds this need not dis¬
place bank credit in any substantial volume if business continues to expand.
Sees need for more aid and support to business, both large and small, by banks.
about from

program

to

year,

ing institution points out forces for further banking

policies,
present activ¬

proper

the banking record of past

our

past

for

York City

Chase National Bank, New

again. We should

long range sights accord¬
ingly.
In the meantime, there is
every indication that we shall con¬
our

tinue

dis¬

—

set

Senior Vice-President,

a

as

for

basis

will prove to be

By GEORGE CHAMPION*

this

happy to have

very

opportunity to be here with you
today. I do feel it is constructive
for all of us to review occasionally

capital
are

spending, whether the
obtained partially or

wholly from

a

bank.

Too often a

good customer begins to slip be¬
cause
he has failed to provide
himself

with

adequate

tools

to

keep in the forefront of the race.
all have seen this happen., I

We

/'

\

Volume 180

Number 5372

think particularly of certain tex¬
tile mills that failed to keep their

banking widespread

schools,

machinery thoroughly modern,

Rotary,

and

aim

of

could

survive

not

the

return

know

customers

our

well, and be

that in

solution

a

is

business

the

of

day

a

with

work
and

an

I

can't

concerned

about

stances,
ing-

liquid

so

business

it

for
to

gain

in

riches

the
the
em¬

Nor
over

gloss

do

I

our

think
own

we

mis¬

I

takes.
cans

makes

with regard to the Small Business

proper

understanding and appreciation of;

each

year,

with

public is-

no

still en¬

in

we

If

credit

a

is

There

of

a

credit

country.

lions

Our

made

total

'One

which

loans

our

In

need

inventory
refer

affect

Nor

guaranties.

do

Yet

we

is

worthy

Continued

of

on

for

mention/

of

activities

the

to

of

the

'ommodity Credit Corporation.
CCC in effect is financing'

The

inventories -which

normally are
the merchants and
processors
of our
agricultural
products. Unfortunately, this activity will continue as long as

carried

such

by

sell

products

support price.

•

•

thef

around

But offsetting this

development, at least to
tent, is another trend.

some ex¬

This is the

tendency of

many seasonal pro¬
spread their operations
year-round basis, thereby ex¬

ducers
to

a

to

panding

their need for credit to
of finished

r

inventories

carry

products.

In

s

spite

of

all

special

these

circumstances—the return to long
term borrowing, heavier sale of

commercial

to

paper

and

activities

the

of

corporate

liquidity,

treasurers," increased

CCC

—

-our

total loans to business should
main

at

normal,

the resultant increase

activity.
as

in business

On. the> whole, then, the

outlook for loans

only

be regarded

can

most promising one.

a

Responsibilities- for

Aiding

Business

-

'

re--

healthy level. As in¬
buying again becomes
banks stand to gain by
a

ventory

;

+•

.Along with these opportunities
that

confront

us," we must con¬
to* accept the responsibility

tinue

fOi'* aiding business at all levels,
large
we

and .small.

regard,

again^ are hearing much from

Washington
the

the

heard" of
You

business

has

has

just

I

as

never

gentleman

and

of

needs

had

before.

know that small

been

major

our

in¬

historically. Government aid
infinitesimal

been

aid

t9

the

banker

this

know

terest

about

businessman

small

though

,

this

In

and

in" relation

small

given

support

business

by the banks, for small
business has always
been
the

backbone of
More

our

leading activities.

than,, this,,

banking

for

competitive

our

has

system

instrument

been

the

key

a

development

of small busineess into enterprises
that

call

to

large. The head of

are

of

one

largest corporations today used

our

of

my associates
Friday in order
to borrow for Saturday's payroll.
His firm, like many others, grew
to a position of leadership in less
than a generation. All of you can
on

virtually

one

every

cite
many
similar instances, in
varying scale. It is this process,
which

in

the

its

to

banks

role,

major

a

much

that

develop

have

has

played

done

so

to

economy

our

present level, with a vast im¬

trade

Every day some New York by
elers arrive in 11,000 trav¬
air. When their
over

plane wings in

lower Manhattan,

matic,

this dra¬

bird's-eye view of the

city's financial center is spread

methods in

ness

kets

as

well

as

United States.
New York

branches

a

foreign

mar¬

in all parts

of the

They also find in

network of Chase

whose

staffs

are

in

maintain

banking connections

in New York have selected the

Chase National

If

interests and

When it

to

comes

talking about

Here is the head

office of the

achievements like these—or about

continuing

our

for

small

that

we

aid

and

business—I

bankers

hide

our
light
Perhaps this is

are

a

found

twisted

is,
can

many

and

however,
count

become

on

of

our

distorted.

that

New
why

don't you

Chase?

if

we

a

good

stay

job

silent.

We need to broadcast the story




of

THE

city.

of town

are

welcomed

American

industry,

many years

out

has also been num¬

every

day.

ber

fact

longer

enterprises of the

Chase stands first in loans to

of businessmen and bankers from

when
words

talk to the people at

scores

basket.

The
no

we

having

known

to

hangover from

the days of two decades ago,
we

ChaseNational Bank where

afraid

am

inclined

under
a

support

considering

a

are

provement in living standards for
all.

depositary.

as

banking connection,

you

York

touch with the diverse business

before them.

out

developments and busi¬

one

in

and

for

correspondent bank

NATIONAL
OF

At Chase these visitors find

officials who

are

familiar with

relationships. Almost half of
the banks in the country

which

HEAD

private

THE CITY
OFFICE:

Pine

OF
Street

BANK
NEW YORK
corner

Member federal Deposit Insurance

of Nassau

Corporation

its

need

cannot

we

that

loans

our

of

judgment, we do not
Small Business Admin¬

my

the

istration.

be

grow¬

circumstance

other

loans

compared with the bil¬

as

of

needs to turn- to banks for credit.

continues to

year

$45 "million. We all
is but a drop in the

longer

no

a

business each year.

anywhere
system

start

banking system extends to small

small

can

has

this

bucket

it is not
taxpayers

certainly

of

shortage
the

risk

new

around

know

Administra¬

unsound,
saddle the

to

it.

only

clearly "show that
justification for

Business

Since its

the Small Business Adminis¬

tration

for

Administration

real

no

business

which needs telling over
again.
For while the

gaining

facts
is

Small

tion.

over

banking by the general

Business

The

the

nature

correspondent
full

ago,

Justification

No

Small

there

the

see

problem.

defensive. Un¬

of our critics, who have
never been exposed to the uncer¬
tainties and risks of business, we
have a fascinating story which we
can
tell with all the authority
born of experience; and it is a

like many

and

to

of this

There is no cause—no reason—

story

record.

among our

only

no

to be on the

banking provides
safeguards against this. But
perhaps the best proof of our
contention is again to look at the

Administration to

man

us

misinformation,

friends. We have
consider our experience

even

thing.
for

much

counter

confident that Ameri¬

mistakes is
who has never done any¬

who

man

the

am

have come to realize that the

overly

become

that

point

the

community.

In these circum¬

equipment.

doors

but

to

rags

should

than the most modern machinery
and

we open up

ployment and well-being for the

other

to have

doing

concern,

of

small
real

problem. This
age when no

afford

can

so

the

moral—to

story

toward

him

the

re-educate
on

opportunity for their sons with
character and, ability.
Tell the

slipping behind, our
job is to find out why, and then
and

to

people

of

customer

try

be

signifi¬
cance
of banking to their com¬
munities and in their daily lives.
Let them know again that it is
their money we are lending, and

thoroughly familiar with the in¬
dustries
of
which they form
a
part.
We should know of new
types of equipment and the most
recent techniques.
When we see
a

and

should

American

buyers' market. We need to

a

before
like
Our

—

P. T. A., clubs
similar groups.

the

33

(1733)

Financial Chronicle

The Commercial and

...

talk

page

43

34

(1734)

The Commercial and Financial Chronicle...

■'■?■///:?&

Future of Mechanization in
find

of two

at

fall

Every
we

to illustrate what I mean, both
relating to new models recently
developed by my own company.

President, International Harvester Company

which have become

seasons

traditional

middle

the

in

Agriculture

By JOHN L. McCAFFREY*

time

this

about

ourselves

America.

in

One

the

other

the

farms

is more

technological changes.

getting fewer and larger, while total farm

are

know

how

the

tom

of

one

of mechanical

out

tion

as

basis for

a

tractor

v

' ■■'■"

■

■■■■

start; but this
L.

McCaffrey

liminary to some other statements

of farmers has

is
John

which I believe

declining

the

time

when speakthe outlook

equipment business,
or the automobile
business, or the
clothing business, and so on.

When

asked

are

ior the

about

nobody

wants

prophet, and most of

to

us

be

and

I certainly would

not

a

want

to

short-run

be

prophet

outlook.

jhand, when

On

will

—which

asked

what

talk

basic

some

and which

One

of

I

have

do

we

There

been

about—there

things

we

tions

are

know

people

things

United

and

know

we

States

been

other

is

full

no

of

are

more

of

^ere
to

are

eat

iue

us.

The

u„

Still

another

will

factors.

a

these

is

that

the

farmers

It is

statement of the

a

only

.

as a pre-

i^1* at^ress by Mr. McCaffrey
Annual

at the
Convention of the American
Association, Atlantic City. N. J..
19, 1954.
'

50%.

to

this

of

first

future

the

ques-

by the

we

and

govsame

mechanunon

.,

£?rn

There

are

,

we

,

values,,

.

\
long

Since

a

the

the

1950

ple living

little

more

than

degree

us

trends

in predicting

the number of farmers. Here
a
history which shows

have

Bankers

that from colonial times

Oct.

the

ization,

of

rate

of

number

about

million persons per year.

a

bureau estimated that farm

census

well established,

a

long term decrease in farm population and in the number of farm

workers, whether

they

farm

are

owners or hired labor.
that trend to continue.

down

II,

6,096,000 farms in the United

States.

In

1950

census,' the

was Placed

at 5,382,000,
12% in only 10

decrease of

That decrease, too, reflects

years.

a

the

which

to find with

we
would expect
trend toward fewer

a

farmers.
But

land

also

we

is

that

know

brought

into

the

number

by

12%

10

is

larger.
an

the

years,

in

farms

about 9% in the

up

a

.

saying

that

getting fewer and

are

In

of

way

1940

the

American

the

size

average

farm

third

174

was

up

to

23%.

factor

is

the

nature

Ponce, Puerto Rico

of the crops grown. There
fruit
and
other
specialized

are

which have largely resisted

crops

mechanization,
bulk

great

far.

so

of

But

tne

American

farming
activity is concentrated on wheat,
corn,
hay, cotton, rice, tobacco,
soybeans

and

other

crops

production requires

a

of

extensive branch

•

One

mechanization.

and

industry

high degree
of

the

trends in agriculture, the
trend toward greater use of fer-

of

agriculture,

.

tilized
commerce

whose

newer

#

on

the Island

are

covered.

j

pasture

and

grassland

farming involves more rather than
less mechanization.

Finally, there is the matter of
the

values

and

farmer himself.
you,
as

a

I

am

much
years

ideals

It is

sure,

person

greatly.
Member Federal Deposit
Insurance Corporation

the

that

has

no

His educational

the

secret to

the

been

of

farmer

changing
level

is

higher than it was a few
ago. His living customs and

habits have become closer to those
~~




—

the

city

man.

His.

the

gear

shift¬

or

••

importance

development

to

a

let's

assume

that

he

is

deep

with

eight

inches

inch plow

four

bottoms, in third

hits

of those

one

of

farmer,
plowing
14-

gear.

bad

spots

His

frequently occur in a field.
Instead of having to stop,
shift

gears,
and
start
up
again,
he
merely pulls the torque amplifier

business

ability and business methods have

Without

lever.

tractor's

through
We

hard

the

estimate

I think you must also conclude

will

the

be

the

future

greater

trend

toward

degree

of

a

the second

Now

is:
is:

question to be

What
What

will
will

be
be

the

farm

equipment in the future,

to

meet

the needs

this farmer

of

we
have been describing?
Here
again, I think the broad outlines

are

in

be,

opinion,
two kinds of mechanical changes.
They are:
m

rhanjJpt;

mechanical

in

my

thp

nf

,nnrrp

available to the

D0wer

£®mer
Changes

that

power

much

the

entire

on

tractor.
As a second example of greater
flexibility, we have another new
wrinkle,
which
we
call
the
Hydra-Creeper. This is a hydrau¬
lic attachment, easily installed or
removed, which
will let the

farmer operate his
throttle

tractor at full

but at

speeds as slow as
one-quarter of one mile per hour.
To

it another way, this
device lets the farmer get
horsepower while only trav¬
eling 23 feet per minute or about
say

creeper

full

of

ing speed of
Who
The

the

a

normal

walk¬

man.

wants

to

go

that

slow?

is many, many

answer

farm¬

engaged in transplanting ot
harvesting operations on vegeta¬

ers

where slow speeds are needed for

long periods of time.
At

power.

interal

either

of

source

combustion

carbureted

engine,
diesel,

or

changes in the

about

the

agricultural

tobacco

country,
already at work on
design of a mechanical trans¬
planter to utilize this new creep¬
engineers

are

ing speed and permit the growth
been

talk

we

in

the

of

When '

of the great

one

colleges

tractor.

aromatic tobacco which has

an

seldom grown

in this

coun¬

we

try because of the high labor re¬

talking mainly about changes

quirements of transplanting. That
is
an
example of the kind of
changes which greater flexibility

power

source,

in the tractor,

The first and most noticeable
change is the trend toward greater
power

output.

exception,
the

have

three

or

four

years

been

this trend will

tinue

its

to

up

Fewer

farmers

certainly
natural

and

con¬

limits.

more

acres

require more power,
There is a limiting factor present, and that factor is weight. It
is
essential
to
keep
the
total
weight of

a

tractor within limits

which will avoid too much

paction of the soil
passes

it.

as

corn-

the tractor

This

problem can
needed, in
various

over

makes possible.

without

models of tractors

new

last

Almost

considerably more
powerful than their predecessors;

be

tear

day,

per

with

and

the nature and

in

The primary source of
for farming operations is

power.

and

farmer to plow
more

ble
farms, nurseries, tobacco
plantations, and other operations

Let's look first at the

in

it-

avaname to tne

us.e °t the tools which he operates

are

and

wear

a

fuel,

less

if

as

'T{

acres

one-twelfth

fairlv clear

There will

the

using
less

—that

two

to

spot

that this develop¬

up

I conclude from this evidence—

re¬

th&reT~'

not

were

idly

farms.

the

is

speed

33% and the drawbar pull
is increased 45%. He walks right

mar¬

enlarging. There are fewer
farmers, and they operate larger

pause,

any

traveling

duced

mounted in the frame of the farm

By 1950 it had gone
acres,
an
increase of

215

went

period.

farms

our

in

farms

included

acreage

Now,

areas

of mechanization.

once

production,

of

-.

.

explain

ment will enable

long term trend toward fewer

farms,

speeds.

•.To

ket—our total population—is rap¬

in

1940, just before World War
the
government
said
there

The likelihood is that it has grown
still larger since that time.

principal

wants

nature of the mechanical changes

growing smaller.

This

Founded -1895

the

well-educated

a

considered
considered

...

of

all

is

statistics canhot be compared with
ones.
But no matter how we
olu.on{:b- cul nu matter now we
old

acres.

system,

farmer

of mechanization in farm production, and that the rate of change
will be fairly rapid,

were

lower

The net effect is to give the
10 forward; and two. re¬

He

time, the government has
changed its definition of what
constitutes
a
farm,
so
present

to

the relative number

Banco Credito Y Ahorro Ponceno

our

picture

a

time for himself and his familyto live a better life. His crops are
those which ~
require a high de¬
- u:~u

as

time to

same

Head Office and

of

efficiency-minded producer,
not only to
make a
profit but to have some leisure
who

I expect

Now' the second factor is the
number and size of farms.
From

total

our

kind

the

and

mechan¬

and

gree

have

we

actually went

Through

this

rate

farm

And More Efficient

The

three-quar¬

population represented only 13.5%

down

-

future

The Farmer Is Better Educated

peo¬

April of this year—the most
recent figure available — the

while

Office

the

to

as

first

our

a

tractor

emerges:

it tends to be kept in production.
This is confirmed by the fact that

Head

answering

of

farms has declined

on

much

a

declutching

this

So, in
question,

by

which

In

a

,

term

of these things. Take the first
*

present,

and worked on
that proportion

1870

1900 it was under 40%.

By

good number

erS

available to guide
arW

of

ing.
verse

manufacturer.

or

1930 it reached 27%.

In

In

size of farms.

farmer's personal
,

90%

merchant

define it, the number of farms has

the

number

fnr

one,
o

BOth

matter

timp

a

The nature of the crops grown.

Now, of course, this is like tell¬
ing you that the sun came up this
I make it

the

How much

tion.

obvious.

at

at

one

things*

The
,

By

had awinalfcd to

been

equipment of some
help them in their produc¬

looming.

farms.

The number of farmers.
The

history,

our

people lived

our

So

jZe and how ouicklv denends

group of spe¬
called farmers.

in

Early

tion.

factors that have governed it in
the past. There are four of these

require

sort to

in

-

by

workers

them

answer

erned

any

general

the

tion, 1 believe, is going to be

cloth-

wear

as

technological

be

the

changed. He strives for efficiency

has been accelerated in modern

of the total United States popula-

will

take

decline

.

times.

ters of
ques¬

constantly

this

■■

•

engineering sense of that
word, and he is as cost-conscious

at

ization first

>

™

rake.

considered:

of

look

an(j

production from the land will be
on

hand

degree and the speed of mechan-

people, they

and

be

What

Let's

-J!' An°ther is that, so far as we
?ei
va
much of,
iL* !Ag !£U®V'. co5?e, from
the
iana.
land.
Another is that this
Anotner
carried

the

changes in the future?

Another thing we know is that

cialized

we

ahead?

(2)

but the baby crop
sign of faltering. Every

as

and

just two major

are

nature

There

losses

crop

is
of

kinds,

shows

month there

have

that

■■1

•■

the

backward toward the

go

to

years

getting fuller.

have

may

mechanical

assume

(1) What will be the degree and
the speed of mechanization in the

talk about with

can

the

the

we

Two Major Questions

reasonable confidence.

ffiat

that

we

is

to

can

binder

look at the longfuture in farm mechanization

run

agriculture, I

assume

of future

We

not

horse

other

can

nature

progress.

the

on

the

we

been
that

and

1

in

about the future

really talking about the rate

are

not

are

talk

we

believe

■

-

of mechanization in

a

very good at it.

>■

obvious.

so

farm

Almost

equally well

but which may not be

founded

ers

are

■■

set

regular

controlled

immediately drop the

into

without any

its

g o t

■

and

torque

gear

the

It could just
readily be controlled by a push
button, but that would be more
mostly. When the lever is pulled,
the planetary gears come into
op¬

ing fall prophecies

of

simple hand level.

farm credit.

more

The

planetary

as

eration and

mak¬

speeds.
a

ahead

transmission

changes in farm equipment, and points out effects of mechaniza¬

cus¬

reverse

installed

higher efficiency and better education of the farmer. Explains nature

stresses

upsets,

don't

Points

may

amplifier is

is increasing, and

acreage

and has

—

fewer

amplifier. As
know, the farm tractor
ordinarily has five forward and

you

(1) the degree and speed of mechanization in

are:

the future; and (2) the general nature of

football

seasoji

fun

questions to be considered

I must

think

I

say

First is the torque

force requiring increased agricultural

a

as

productivity through mechanization, farm equipment executive finds the major

is

prediction

season.

I

Stressing the growing population

and

season,

the

is

football

the

Thursday, October 28, 1954

met, as
through

Then, the third major develop¬
ment

in

the

power

for

source

farming is the application of new
or altered
types of power to farm
work.

to the beginning of World
II, the farm tractor had been
developed to make mechanical
power
available to farmers in

■Up

War

three ways:
(1) As tractive, or
pulling power; (2) By transmit¬
ting power to stationary equip¬
ment by pulleys and belts;
(3)
Through the power take-off shaft
the

at

of

rear

the

tractor,

from

which power was delivered to
op¬
erate
the
mechanisms
of
farm

ways

machines connected to the

tractor

such

as

possible

corn

picker.

the design of the
engine and through the
use of lighter metals in
such engines,
But

there

is

a

definite

and,

I

believe, permanent trend toward
tractors of larger power
capacity,
Secondly, the power source—
the

tractor

changed

—

in

is

being rapidly

the

direction

greater flexibility in operation.
will

give

you

of

I

just two examples

a

Immediately
the
kind

late
of

'40s,

after

we

the

added

tractor

or

war,
a

power—hydraulic

We installed

the

tractor,

harvester-thresher

a

in

fourth
power.

a hydraulic
pump in
engine, and the new

hydraulic controls greatly simpli¬
and speeded up the farmer's
work
by enabling him to
lift,

fied

lower,

or

regulate implements

Volume

Number 5372

180

mounted

either

The Commercial and Financial Chronicle

...

the tractor

on

or

pulled behind it.
Electrall

*

Now our company has a new
pre-production development which

the

call

we

promises
tractor

Electrall

add

to

power

flexible

fifth

a

whicn

kind

of

the steady and

—

of

power

and

electricity.

It

has evolved from several years of
intensive research work carried

can

I

in

difference

to

a

parts

right
is

trical

generator, mounted

tractor

as

Power

the

compact elec¬

a

is

unit

a

the

on

attachment.

transmitted

tractor

the number of

engine

it

and

from

is

to

con¬

verted

by the Electrall into elec¬

trical

energy.

is

Power

We will

tomatic
trols
The

see

more

acres

and

goes
more

semi-automatic

or

applied

to

some

as

prominent

a

the hillside harvester-thresher

of

see

in

will

we

direction

the

Out

and

more

machines.

weight. We want

So

putting

and
on

the

to

go

of

fur¬

getting

up.^
au¬

the machine
where that

tractor

will

That

rather

drastic

probably
changes at

the

There

feature

the

wheat

hillside

side

to

travel

side

leveled

that

so

the

around

they

as

were

they

hills

their

uniform

could

without

are

on,

uphill
it

many

of
as

cause

let

me

mention

briefly

of

This
neers

spilled

tilting forward
year

came

of

some

with

up

engi¬

system of

hydraulic cylinders, actuated
tomatically by

a

I

back.

or

our

a

be¬

au¬

down.

or

more

ing

still

machine which

regardless

whether the machine is

out

they

a

height

are

from

spilling the grain out of the grain
But

have

form is automatically located at a

There have been

combines,

called, which

we

from
front
to
back, uphill or
down, and around the curves. Not
only is the body of the machine
kept level, but the cutting plat¬

of

country

Pacific

for many years.

now

it,

Finally, to make

added

we

standard

mention

ample

cable

be

to

of

this

the

just

kind

solving of which

capable.

power

You will

on

as

generator has three outlets.

provides 220-v o 11, threephase, 60-cycle alternating cur¬

rent, primarily intended to drive
electric
motors
on
trailing
or
One

farm machines.

provides

120-volt, singlephase current such as is used by
an ordinary household circuit.
The third

provides

for 220-

power

volt, single-phase circuits.
What's

good

so

Well, I'll tell
it

in

three

and there are undoubtedly

now,

lot

that?

about

you.
We have used
general ways up to

of

things

a

NCR paper

(No Carbon R

Makes

Copies

haven't thought

we

of yet.
'

First, we

tractor, such
ers

pulled

In this

use,

placed

is

motor

on

implement, replacing

engine

ordi¬

It has the advantages

narily used.
in this

an

the

auxiliary

an

combustion

internal

the

by

harvester-thresh¬

as

hay balers.

or

electric

it to operate

use

can
machines

farm

of silence, smoothness,

use

low maintenance costs, and
ease
of control, since

very

wonderful

push button does the work.
There is also the possibility for

a

future

farm

implement design of

using several small electric motors
at different points on the machine
of

instead

the

drives

"belt

present

and

arrangements.
Second, we

numerous

special

gearing

■

can

.

Electrall

with

for

as

the tractor

use
a

power

source

operation of all kinds of

the

tools anywhere on the
ranch, and not just where
,the high lines run. For example,
it will power chain saws for the
portable

farm

or

wood lot, or electric drills, planes,
shapers, saws, and other tools for
farm building projects. It will op¬
erate
sheep shears or portable
welding equipment. It will run a

mixer

concrete

floodlight

or

a

do a great many other
useful things.
Third, the tractor with Electrall
field,

or

be

also

can

used

as

a

source

of

standby emergency power, within
its

capacity,

needs of the

hold

for other
farm, such

electrical
house¬
household appli¬

lighting,

milking

pumps,

ances,

as

machines,

'and other electrical equipment.
The

development to farmers is
we

I

-

potential importance of this
great;

don't yet know how great.
should add

applied
truck,

that

we

have also

Electrall to

the
and

we

can

motor
all the

a

do

things with such a truck that we
can do wth the tractor, except for

'operation of farm implements.
So I

thing

you can

power source

tion to
•three

look for the

of farm mechaniza¬

develop in the future along
lines:

(1)

Greater

available; (2) More
power available;
(3)
of power available.

National has important news for business
everywhere! The duplicate copies you see
above were made without carbon paper! This
is made possible by use of a special paper
developed by the research laboratories of
The National Cash Register Company. It is
called "NCR Paper" (No Carbon Required).

power

flexible
New kinds

NCR
of

Paper puts

carbon

storing. '

an

paper

end to irksome handling
inserting, removing,

will

machines

which

the power.

are
actuated by
What is ahead in this

direction?
I

have

already mentioned the
possibility of multiple electric
-drives
.

J

on

We

Can't

Time,

When forms

machine,

copies

are

are

placed to¬

or

or

your

local business

nearby National
— or

write to

The National Cash

Register

representative

by typewriter, busi¬
— clear, clean
made without carbon paper.

gether and written on

—

by hand

Ends Carbon Paper

Avoids

smudge copies

or

Smudges.

Faster.

Company, Dayton 9, Ohio.

NCR

Disposal.

With
*TRAt>£

Paper, troublesome removal and dis¬

posal of used carbon sheets are avoided.

fingers.

Making multiple records is now as easy as
picking up 3, 4, (or more) forms from a stack
and inserting them in a
typewriter or

NCR Paper and be amazed at
simplicity, cleanliness and
time-saving it brings to multiple copying.

Try the
the

new

new

ease,

1-

mm*

are




Contact your

forms printer for NCR Paper

—

the

larger farm maseeing also a con¬
sistent
development
throughout
the industry of new methods of
attaching machines to the tractor,
chines.

Saves

Paper provides

—

Better Copies.

ness

Now

obviously these changes
bring other changes in the

business machine. And NCR

exactly the same advantages when making
copies by hand (receipts, sales slips, guest
checks, etc.).

THE NATIONAL CASH

REGISTER COMPANY, Dauton 9, Ohio

-

949 OFFICES IN 94

COUNTRIES

PIP:

<•'«««' 0.

ex¬

this ability

see

One

tractor-mounted

an

problem-

industry is

our

desired.
The

as

of

Continued

pendulum device.

steer¬

equipment.

taken

applied

of

traveling

fun and take all the work

from the generator by a quick at¬
tachable

35

stays level from side to side and

tank.

from

aside

farm machines.
detail develop¬
ments
on
particular
machines.
But just as an example of
the
kind of ingenious engineering that
goes

in

So

our

year.

Northwest, as
you
know, the hills are big, and they
slope in all directions. The har¬
vesting there has been a problem

I can't attempt to

con¬

introduced this

point in the general design

tractors,
engines.

push button is probably go¬

ing to be

will

save

cost.

of

machines.

farm

we

possible.

lead

greater capacity.

and

far reaching.

The Electrall is

*

save

ther

This is happen¬
on by our engineers and engineers'
ing now and is certain to happen
of the General Electric Company. as the power available increases,
The possibilities of the Electrall the number of farmers decreases,
are

is

rid of wheels and axles and other

farmer's work on
crops, especially at harvest time.
Beyond question, we shall see
the development of machines of
efficiency of

already

tractor-mounted

We want to

and

timeliness

tne

it

as

company

believe

more

That makes a great

day.

a

life

urban life..

not sound like much; but it
often save several hours, even

half

farm

of

doing it much faster, much more
easily and with great saving of
the farmer's working time.
This
may

(1735)

AW.

page

40

The Commercial and Financial Chronicle... Thursday, October 28, 1954

SG

(1736)

Drawing
of

"1954 Most Prosperous Teas
In Oni History": Eisenhower
'

an

National Security Indusall fears of a paralyzing
depression should be set aside, and, at present, the economy
is working near record levels. Foresees an annual national
output of $500 billion within a decade, if seven means are
taken to expand our economy.
Reveals 400,000 drop in

President Dwight D.
televised

a

Eisenhower,

address

delivered

$3,000 for every American family
of today. And these can be real
dollars—dollars of stable buying
power,

Washington
on October 25,

were
more

pictured

than

the national
-economy

and

...

p'rosperous

tremendous eco¬
and, for all of us,
the door to a better, happier
release

should

with

nomic energies

pro¬

open

duction and

spending
«ear

future. For, in two years, we

at

levels. He de¬

cried fears of a

paralyzing de¬
pression, and
Pres. Eisenhower
set
$500 billion as a goal
hi
national
output within the

record

near

levels.

Over 62 million

have

must

people have jobs.
steadily increasing.
of work are getting

hours

The

a

ad-

of the President's

dress follows:
It has

at

working

spending at
higher rate than ever before.

said that the
economy is largely a

been truly

being
broken month by month. Wage
rates are at their all time peak.

Construction

records

are

manufacturing
are again on the rise. Our people
national state of mind.
have more personal income after
For 20 long years, somewhere
.slate of

our

,

Weekly earnings in

•tightly joined in people's minds.
Many came to believe that these
liad to live together or not at all
without war, without the
mountainous demands of the
—that,

1>attlefield,
America

modern
always

would

industrial

mately cascading all of us into the
terrible pit of depression.
As

war

succeeded

year

war

this attitude toward our na¬
economy
exacted a heavy
loll. It stunted growth. It warped
economic
behavior.
It
blighted
3'ear,
tion's

And

eased.

a

heart

as

well

encourage,

as a

head. It

guide, backstop,

be

must

omy

our

In

supplement— but never dominate
or attempt to regiment our people.
Events of recent months provide
lessons we must not ignore.
.

,

A year ago, inflation was

Defense

reduced.

government's

must

affairs, we
lose sight of the fun¬

conducting

never

damental

fact

our

that

our

succeeds only as our

economy

people suc¬

ceed. On the release of the treas¬
house

ure

of

energy,

brains and
of our

confidence of all 163,000,000

people,

depends

our

that many thought were

ness

essential

props

govvernmental obliga¬
and more to their own living

economic

tions

requirements.
$7,400,000,000
dollars
are
being left with

every

time

envelope,
takes

future.

tax
our

people to spend at a time when
their buying power needed to be
sustained. This saving is evident

a

citizen opens a pay
goes
to the movies,
a

train

or

a

bus trip, buys

measures

sustain

economic strength.

our

extended to

10,400,000 more people, inclmding,
time, 5,500,000 farm¬
ers.
Thus hundreds of millions a

for the first

ment

added to the buying
of our elderly people.
protection of unemploy¬
insurance was extended to

some

4,000,000 workers not previ¬

were

ously covered.
A

housing law helped our

new

homes and
throughout

people acquire new
encouraged
building
the country.

carrying out farm laws still
basic crops were sup¬

In

in

effect,

ported by loans and purchases
amounting to $1,646,000,000 in the
current fiscal year.
At the same
time,

farm program was
evolved to attack the

new

a

carefully

production

problems of markets,
and surpluses which,

for

seven

steady de¬

have forced a

years,

strength,

military

being

are

purchased in an amount of $900,000,000.

together for...

A

new

multi-million dollar pro¬

for shipbuilding and repair
keeping in operation needed

gram

is

facilities and creat¬

shipbuilding

ing many jobs.

tional

high compression

In these and

high octane, clean-burning

time,

And
our

the result?

time year in

year

history.

picture

course,

industries and localities some un¬

employment
aftermath of

with Veedol 10-30 Motor Oil.

Cuts down octane-robbing >

is

deposits!

exists

when

us

the

as

and inflation.

matter of deep concern

a

of

still
war

that

means

number

must do a

we

of things.

First,

must

we

develop a

It
to all

looking

people,

for

for¬

eign economic program that will
expand trade, encourage invest¬
ment, help bring about currency
convertibility and reduce the need
for direct aid to other countries.
This

will expand mar¬
It will
help improve our standard of liv¬
ing, as well as the security and
solidarity of the entire free world.
Our economy can grow only as
part, though a vastly important
part, of a growing free world
economy.
Just as there is no se¬
curity in isolation for America,
program

kets for

goods abroad.

our

is

neither

durable

there

pros-*

perity.
Second,

of

government, so
tax cuts. Al¬

have more

can

we

must continue to re¬

we

cost

the

duce

ready in two years

have cut

we

by $11,000,000,000.
To the limit that national security
costs

Federal

will permit, we must make more

and return them,

savings

in the
Amer¬

people. Tax cuts will add still
to private income and ex¬
penditure. They will stimulate the
continued growth of the economy.
For
every
dollar cut down on
Federal expenditures, I believe we
ican

more

reasonable

with

can,

assurance,

expect a two-dollar expansion
our

in

private economy.

modern

we must give America a
highway system. In ad¬

the nation's traf¬

will, by this
powerfully stimu¬
late healthy economic growth and
strengthen the nation's security.

fic

problems,

we

program,

Fourth,

must continue to im¬

we

farm program.
American farmer keeps

prove

is
marred,
of
by the fact that in certain

This

performance farther

This

most prosperous peace¬

na¬

a

Output

keep great

to

nation's economy on an even

our

1954 is

carbon

high

Outlines Program To Increase

dition to easing

other ways,

many

has helped

government
keel.

up

Year in

History

power

Tydol Flying -A- Ethyl gasoline.

Step

is

it

production of $500 billion.

Third,

Prosperous' Peace

'Most

Get

that

believe

I

in this great,

form of lower taxes, to the

Strategic materials, essential to
our

with

meet

of history.

This

also have helped

Social Security was

ages.

Citizens coiald devote fewer hours

con¬

and working people.

men

Other
to

among

cline in farm income.

made to go

the tests of
peace.
With this confidence, we
shall keep on making this kind
will

and investors, among busi¬

sumers

halted.

expenditures were being
Wartime economic stilts

confidence

maintain

to meeting
so

powers

American

the

that

confidence

years,

We were shifting from the
shortage economy of war to the
1952.
We know that, if we act wisely, plenty of peace.
And why wasn't the result chaos
before us is continuing expansion,
with a steady rise in the living and economic despair, as many
feared?
standards of all of our people.
To foster this expanding econ¬
First, because taxes were cut.
levels of 1945 through

above the

economy

repeat, was to release individual
enterprise and initiative — to

The

Our

surpasses

1944.

was

I

year

of

economy

our

is

money

power

peak

war

over-all economic growth

our

was

and credit were used
to stabilize the buying power of
the dollar.
They were used in

over

for

peacetime

to

given added strength.
Second,
government

swept away civilian market short¬

before.

overpro¬ /goal.

duce, forcing unemployment and a
downward economic spiral, ulti-

wartime

appliances and other products had

the

ever

production

national adjustment

our

from

It is far

happiness—waste and plenty
—foxholes and jobs—have been
and

Thus

na¬

than

tional

a

wage earners

even

taxes

few months ago. Thus,
for almost a generation, tragedy
until

in the fact that

1949 and 1950, or

unemployment today is less than
one-third its level in the years

their homes, to
with heavy medical 1933 to 1940, when as many as
bills, to businesses needing to ex¬ 10,000,000 Americans were out of
pand and thereby to create more jobs and couldn't find them. . . .
I repeat that a central reason
jobs—the tax burden was reduced.
in

dependents

for business were being cut
down. New floods of automobiles,

in the world there has been war—
up

zens—from working mothers

growing, productive
gently and vigorously do its part. January, 1953, to stop the spiral- land of ours, to put behind us the
rash of fears that for so long have
ing inflation which could have
Dollar Value Must Be Stabilized
resulted in serious unemployment haunted some among us—fear of
Government must work to sta¬ and depression. Later, as this risk war, fear of unemployment, fear
bilize the buying power of the diminished, the process was grad¬ of ourselves—fear of the future.
dollar, else the value of the pen¬ ually reversed to ease credit mar¬ Certainly, we know now that one
sion, the insurance policy and the kets and encourage economic ex¬ such fear—the fear of a paralyzing
savings bond is eroded away.
pansion.
This helped people to depression — can be safely laid
Government, through social se¬ buy homes, automobiles and away.
curity and by fostering applicable household appliances. It encour¬
But we must not rest.
In our
insurance plans, must help protect aged them to construct new plants,
economy, to stand still is to fall
the
individual
against hardship manufacture equipment, build new behind. Our labor force is grow¬
and
help free his mind from shopping centers.
It stimulated ing. Productivity is rising. We
State and local public works.
anxiety.
In must do more than simply to plan
Government must use its full these ways, our nation avoided
against trouble or accept unem¬
powers to protect its citizens from liquidations
which in the past ployment at its present level.
depression, unemployment and brought on panics, widespread un¬
Rather, we must advance toward
economic distress.
employment and despair.
and beyond the goal I mentioned
Government, my friends, must
The objective of these measures, earlier—within ten

The number is

longer. Consumers are

next decade.

The text

have

America's
prosperity does not necessarily
depend on war's sacrifices.
Without war, our economy is

again demonstrated that

record

For all of our citi¬
with

refrigerator.

a

J

But, in the past two years, there
have been heartening events. They

condition,

C

on

our

fuller life.

in a

4P.ound

of

in their

daily
tasks
are
bringing this
about, government must intelli¬

people
frightened
into
grasping
for security and protection
for new opportunity and a
Many

confidence.

at

while our people

And

thrive

that

investments

ed

not simply more dollars of

cheapened value.

need¬

confidence and discouraged

$500 billion. This would equal
average increase of more than

to

unemployment.

*it

will
from today's $356 billion

increase

President, in t-rtvised speech at the

the richly varied

our

decade the national output

a

trial Association in Washington, says

;

can

we

on

entire citizenry,
foresee that in less than

abilities

our

As the
in¬

on

creasing his productivity—already
the highest in the world—he must
be helped to gain his fair share of
the steady increase in our national
income.

Fifth,

must speed the

we

con¬

work, cannot find it.

version of the atom to the peace¬

ment

ful service of mankind.

Unemploy¬
far more than

figures are
They reflect heartache

statistics.

Sixth,

must work for more

we

hardship — and ulti¬
mately, loss of confidence in our
country's future. It is not only in

and better schools and homes. We

the interests of the

social security system.
We must provide better protec¬
tion against the hardships of un¬

—anxiety

Get

Tydol Flying -A- Ethyl and

men

Veedol 10-30 for extra power

us,

and action...made to go

that the problem be solved.

It

is

essential

friendly

been

ployment has
clining.
Still

DEALER

needed.

HOUSTON

•

TULSA

more

There

comfort for




to

create

more

and to ease these war-born
hardships. Good progress is being
made.
Since last spring unem¬
jobs

TOE WATER ASSOCIATED Oil COMPANY, NEW YORK • SAN FRANCISCO •

must

improve

teachers.
prove

We

us

is

steadily
progress

certainly

de¬
is
no

in the fact that the

opportunities
must

for
im¬

further

our

ill

employment,
Essential to Create More Jobs

greater gasoline mileage.

FLYING

jobless work¬

but for the benefit of all of

together

for highest octane performance,

at your

—

health,

poverty

and old age.

in

Seventh,

partnership

with

states, local communities and pri¬
vate

citizens,

water,
our

In

shall
for

must develop the
and soil resources of

we

power

great river valleys.
these

unemployment level is much lower

peace.

today than during the recession of

citizen

other

and

continue
all

Thus
of

ways,

economic

America

in

a

we

progress

world

at

shall

assure every

maximum

opportunity

we

Number 5372...The Commercial and

Volume 180

to

enjoy good health and a good
job, a good home and a good edu¬
cation, and a rising standard of

Three basic
this future

facts

City Bank of New
York heads a group offering $10,000,000 Commonwealth of Puerto
Rico, 2% and V-k% public im¬
provement, series A bonds, due
July 1, 1955 to 1966, inclusive.

prosperity.

First, of course, is our free way
life.

Second, is

rapidly growing

our

population.

The

'

Third,

is

ing

The National

will promote

the

amazing variety
of new products of our technology.
Our population grows at a rate
of five new Americans every min¬
ute. We have grown by 20,000,000
in the past ten years, by 1970 we

bonds

are

offered

yield of 0.80%, out to
price of 993A.

a

scaled

are: Chemical Corn Exchange
Bank; The First Boston Corpora¬
tion; Lehman Brothers; C. J. Devine & Co. Inc.; B. J. Van
Ingen
& Co. Inc.; Kuhn, Loeb &
Co.;
Merrill Lynch, Pierce, Fenner &
Beane; Banco Popular de Puerto
Rico; Lee Higginson Corporation;
A. C. Allyn and Company Incor¬
porated; Stone & Webster Secu¬

rities

Corporation;

Mercantile Trust

a

Also participating in the offer¬

Puerto Rico Bonds

Prosperity

Will

dollar

Syndicate Offering

Basic Facts That Promote

(1737)

from

National City Bank

living.

of

Financial Chronicle

Company, St.

Louis; Braun, Bosworth & Co.

In¬

corporated; F. S. Smithers & Co.;
C.

F.

Childs

and

Company

&

Wells,

Nicolaus

&

Company

Inc.;

Indianapolis
Bond
satot
Corporation; Prescott
Co. and Park, Ryan, Inc.

pany;

Share

In¬

corporated; Kean, Taylor & Co.;
Andrews

Stifel,

Incorpo¬

To Form Ross & Hirscf*
Arthur

J.

Ross

will

Laurence

Shafto

of Ross &

Hirsch, Jr., the firm
Hirsch, members of the

Exchange.

Office will be located

Incorporated; Lakeside Se¬

curities
Dulles &

Corporation;

Wurts,

Co.; Boettcher and Com¬

at 120

J.

Broadway, New York City..

up

Americans will powerfully stimu¬
late expansion of our economy.

And, to provide
ard of
more..

us a higher stand¬
living, it must expand even
Y.
" Y;
~ -

This

expansion

within

only

our

look

frontiers

is entirely
Doubters need

power.

at

the

of

some

science

to

opens

new

al¬

us

most

daily—in plastics, new
metals, peacetime atomic develop¬
ments, antibiotics, television,
aeronautics.
Today
more
than
twice
in

of our people work
and development as
working a dozen years
America now invests four

as

many

research

were

so

ago.

billion dollars
research

nation's
In

in scientific

year

development.
better invested in

is

money

a

and

No
our

future.

own lifetime, from my
boyhood in Kansas to this day, I
have
seen
automobiles,
radio,
television, telephones, electricity,
tractors, power machinery, new
my

insecticides

and

fertilizers,

roads and modern schools

America.

rural

much could

America's

be

good

come

in this time

If

to
so

done, I know that
will

tomorrow

be

still

exciting, still more produc¬
tive, filled with more and better
things for all of our people.
more

We

must, therefore, encourage
economy along the ways of
healthy expansion and be vigilant
to keep it vigorous and free.
our

Lasting

Peace—Our

Greatest

Hopes

My friends, there remains one
thought, the most important of
all, that I must leave with you.
It is that only when we win the
struggle for permanent peace
devote

we

the

full

mighty country of
vancement

can

of this

power
ours

to the ad¬

of human happiness.

America's greatest hope and op¬

portunity

is to make strong and
lasting the present uneasy peace
that has
so
lately come to the
world.

With

If

we

our

•

no rea¬

exercise

maintain

we

future

us, we

for fear.

son

dom, if

bright
have

a

clearly before

wis¬

faith in

the genius and energy of our peo¬

ple, if
that

we

is

avoid the centralization

the

refuge of fear, our
will remain healthy and
growing and strong.

economy

With

this

strength,

confidenae,
fortified

its

with this
nation will be

our

in

cease, never

nal

goal

has

quest

that

quest

peace—a

for

must

world
never

slacken, until the fi¬
been attained.

Joins Parrish
PHILADELPHIA, Pa. —Parrish.
& Co., 1421 Chestnut Street, mem¬
bers of leading stock
exchanges,
announce

is

now

that

Stanley Bright, Jr.

associated

with

them

as

a

registered
representative.
Mr.
Bright was formerly Pennsylvania
representative
ers,

Vickers

Broth¬

New York.

Joins
(Special

LOS
eric

of

S.

to

These three

catalytic crackers dominate the skyline of

our

Lake Charles,

Louisiana, refinery which normally processes 175,000 barrels of oil every day.

Morgan Staff
The

Financial

ANGELES,
Funakoshi

staff of Morgan

Chbonicle)

Calif.—Fred¬

has

joined the

& Co., 634 South

Spring Street, members of the Los
Angeles Stock Exchange.




a

rated; F. Brittain Kennedy & Co.;
Seasongood & Mayer; Lyons &

number 200 million.

keep

acquire

membership in the New York:
Stock Exchange and on Nov! 4tftt
will
form, in partnership witlk

Simply
with our needs for
homes, factories,, schools, roads,
and
goods for
these additional
to

3V

CITIES

@ SERVICE

A Growth

Company

The Commercial and Financial Chronicle,

Thursday, October 28, 1954

..

(1738)

38

^

Will the

of

".y

EINZIG *W

By PAUL
'

,

\

'

/

r

^

THe" result

\

Dr. Einzig, in
business

demand, but,
to

of

continuation

a

.

the

that has
been proceeding in Britain
during the last
five

six

or

After

months.

unspectac-

an

ular

but

sistent

per-

rise,

the Stock Ex-

change

exper-

ienced

A New

com¬

Background for Banking

few

next

In

years.

other

lines

able

were

example—the trend is toward

to

Once in

reserves.

anr

greater substitution of equip¬

even

control ment, forced in

instances by

many

—one

that few of

none

of

welcome but

us

ignore.
It has
tremendous weight to the

added

can

us

place of government in our econ¬

There

omy.,

are,

considerations
aid

of

relates

have acted

this

abet

and

One

of course, other

that

to

the

to

development.
strong

desire

people for a range of social
that they feel should be

our

services

heavy competitive

pressure.
they were in a position to divert
And, of course, we cannot speak provided by government. And stiil
shoppers who have evidently a these reserves for their own reanother is tied to the problem qf
fair amount-of money to spend. quirements. The rise in Stock Ex¬ today of research without men¬
economic stability. Whatever the
Throughout the summer and early changg quotations during the past tioning activities of the govern-, reason, the fact is that govern¬
ment. These spill over into many;
autumn the holiday resorts have year or s0 has to some degree
ment today is a claimant for al¬
"been full to capacity in spite of discouraged such operations, but fields, but are particularly im¬ most one-fourth of the national
the bad weather. Trains and buses there is still a fair scope for them.- portant in appliances for the mili¬
product. Federal Government ex¬
are
well filled with travelers Nothing short 0f a further sub- tary. All in all, some $4 billion i
penditures alone may amount to
There are long queues in front of standal rise would stop them,- and are now being spent each year by
more than $63 billion in the cur¬
cinemas and theatres.
The de- notWng but further dividend- in- industry, government and private! rent fiscal
year.
1
!
mand for semi-durable goods such creageg coul(i *bring about such a sources on research. This invest-<
ment is almost certain to bear fruit XThis is a far cry from even the
as television sets and motor cars rfse
in the years ahead,. Indeed, some, days .of the mid-'thirties when, the
remains at a high level. Nor has
Unfortunately the much-needed
is about ready for the harvest,,to-? Federal budget ran to mK more
the gharp rise in the pripea of an<^
long-overdue dividend inthan $8 hiljion. And. it is a corhfoodstuffs such ps. jneai, but$e& ^creases^ have, stimulated excessive day —the new metal titanmm.!
which approaches the strength of; pietely^new1 world , from that - 6f
tea and
coffee^a.slacfcenmg wages.demands.'At the time of
about a half-century ago, when

boom

business

most

acquire
the control of companies with big
liquid

..x,

,

of

'

expressed

Financiers

justified limit.

...

LONDON, Eng. —Some doubts
have arisen lately about the prosr

minor

ri

24

page

Exchange

distinctly less cheerful picture. Concludes there is A
believe British wage increases have gone beyond
the economically

pects

from

in the Stock that do lend themselves more read¬
quotations of equities, ily to this development—mass pro¬
and the low prices provided op¬ duction industries like automobiles
portunities for "take-over bids." and certain electric appliances, for
hot

was

expansion

the other hand, industrial

on

that

was

their accumulated assets

value of

pessimism, the atmosphere remains rather hopeful, than other¬
wise. Finds there is a persistent increase of domestic consum¬

reason

Continued

have accumulated dispro¬
portionately large reserves. The applied to bank operations in the1

for

calling attention to some recent setbacks in
boom in Britain, finds that, despite some grounds

presents a

"restraint in

panies

the

ers'

degree of

a

of dividends that was
sharp contrast with the lack
restraint
of wages demands.

in

'

•

exercised

the payment

some

and the lightness of alumi-v
demand.
' ** writing the country is in the throes
there was no Department of Com¬
Building aotivity continues to 0£ seVeral strides, and there is a num; the electric brains wl)ich.
merce,1 no Department of Labor,
increase; month after month hous-. possibility of further major strikes are set to control intricate proc¬
no Federal Trade Commission, ho
d i s t i ne t ly
ing figures, sdow a progress com- arising
from
excessive
claims, esses of manufacturing; and the Federal Reserve System;- arid
weak
under- pared;with
which was itself geyon^f doubt to some degree the color so eagerly awaited in tele¬ when President Cleveland, a good
Dr. Paul Einzig
tone.
Follow- a record year.^n-partioul^fhere wagesj«laimg" are justified by the vision.
Democrat, vetoed a $10,000 farm¬
Atomic Energy
er's
relief bill as being; totally
;
ing on a. series is^a steep increase in Jhe- nuM^ ^g. ^ 0utpujvJ^1954 the Vblume
of gains, the last three monthly of privately built htiu§e^„hi. conindustrial production,-Has* been
Finally, one cannot dwell on > outside the province of the Fed¬
figures of the gold reserve showed trast to the h^sihg^activihes of f.unning at mQre than 14% above this matter of research and tech-: eral Government. We are indeed
moderate losses.
Industrial dis- previous.-years which were .con^ fHg corresponding figure lor iyc»o.
nical
change without a special in a different era in this matter
putes gave rise to sbme incon- fined almost entirely to. conafcrtffcabsence of an increase of word on atomic energy. This
prom-1 of government and its responsi¬
venient strikes. After having been tions financed by pubhc money. «-w^ages
domestic market could ises to be one of those key inno¬ bility. But having moved into -it
stable for well over the year, the
On the other hand,^industrial. not p^s^ie -have" absorbed the vations which mothers many oth-" —or having been pushed into it
cost of living
resumed its rise expansion presents a distinctlydess <vhoie: of the increase of the sup- ers and
provides a new basis and by events—we owe it to ourselves
during the late summer, These cheerful picture. Capital investj-es 0£ g00ds>
it is true
their a new
impetus for economic life ? to make the best of it. And the
and other unfavorable points have rucot by privately ONyned indus- prjces vyould have remained lower,
to
move
forward.
We
already- fact is that the huge volume of
given rise to a certain amount of tries is not proceeding at a satis- gut SOme increase of wages and know of many uses for this new' government expenditures can pro¬
vide an element of stability in the
pessimism, or at any
rate they factory rate. Speaking at the an- prices was essential to provide
energy—as a source of heat and
nave
damped the optimism that uual dinner of the1 C am be
of, additional purchasing power and power, and in such diverse fields economic picture which might not
steel

setbacks.

Sterling has
developed a

,

-

has hitherto

Shipping on Oct. 14,..Mr.

prevailed.

Nevertheless,

generally

ing, the atmosphere remains hopeful

otherwise.

rather than

Very

few

people expect the boomlet to
give way to a slump, and the
number of those who expect it
to
peter out gradually is also
moderate. The prevailing opinion
is

that

business

continue

conditions

remain

to

will

reasonably

A further all-round
increase of profits is widely anticipated.
None of the indices

prosperous.

mentioned above is of
extent

The

to

as

basis

a

nature

the

Excheque

the cost of living. Generally speaking, .the -purcijj sing
P°wer °f dividends is still below
rise in

prosperity is,

foremost, the persistent

increase

of

is no indication of any in-

clination on the part of producers
Qr

Day after day the shopcenters are crowded with

COMPANY

will

have

later to

or

decide

to

one

JX,

,nown

as

a

dependable supplier of

the automotive, aircraft, farm implement and
industries, Eaton has held this enviable

repu¬

its

The

investment.
tained
sumer

almost

Eaton

leading

manufacturers

practically

in

basic industry with volume production of Motor Truck
Axle

Axles,

Components,

If

demand.

main¬

on

con¬

when

and

Heating-Ventilating

Automotive

this, the

Permanent Mold Gray Iron

Devices,

Spring

Sodium Cooled

Valve Seat

the boom is liable to

chances

become

Whole

the

On

centuated.

therefore,

are,

Castings, Hydraulic Rotor Pumps,
Wire

Valves,

Forms,

that

Engine Valve* and

Tappets,

Inserts, Jet Engine Parts, Hydraulic Valve Lifters,

Neb.

Chiles-Schutz^
tional

additional parts.

is

Bank

Pierce,

PLANTS:

Cleveland

Battle Creek

PLANTS

Lawton

'

Vassar, Michigan

OPERATED

BY

Lackawanna, New York




Marion

*

'

*

Detroit

Massillon,

'
*

Marshall

Kenosha, Wisconsin

SUBSIDIARY

'

10, Ohio

COMPANIES:

London, Ontario, Canada

Co.,

B.

Eldridge
Omaha

with

Na¬

Mr. Scurr

Building.

Fenner

prior thereto

General Offices: Cleveland

—

associated

now

formerly with Merrill Lynch,

was

'

The airplane and

taken

atom,

revolutionized
national

together,

the

have

pattern of

securitv.

with

the

busi¬

in

And it gives govern¬
play an even more
in

role

active

seeking

to

stabil¬

employment and purchasing
power — t h r o u g h tax changes,
proper timing of expenditures and
the automatic bringing into play
of what the economists have come
ize

not

do

I

in

"built-in stabilizers."

call

to

our

firs*

the

For

decline

ment leeway to

propose

'.-f

talk here

to

detail about possible pro¬
the government might fol¬
to soften the effects of the

any

grams

low

business cycle.

I would only have

ager

was

&

Beane

and

Assistant Man¬

of the municipal department

of John M.

Douglas & Co.

With California Investors
(Special to The Financial Chronicle)

LOS
M.

ANGELES,
has

Saltzman

tbe
.3924

staff

of

Calif.—Irving
been

California

Wilshire

added

point bevond which

a

cannot drive

we

that in

fact
een

transcendent
leased in

new

atom

force

a

powers

face

and

have

we

war.

imaginations

must

we

the

weapons

our

these

comprehend

—nonetheless,

is, of course, a matter which
here. For some

it.

We

principal tools the govern¬
holds in its kit relate

still

ment

to monetary
The

and

if

re¬

could be reasonably

conceive

is close to all of us

of the

policy.

hydro-

new

which,

the

expected to destrov civilization
now

Einstein's

call

as

macabre

I

Monetary

believe

we

Policy

might

verv

well

the gov¬
policy for .a

here and consider

pause

ernment's

monetary

IV—thev

can

re¬

comment' background
what
he ered by the

would

rocks!

And the other dav Niels Bohr.; the

inflation in which money progres¬

sively

deteriorates. Having seen
of inflation in Ger¬

ravages

both before and after the
am perhaps more deadly
facing the wor'd was no longer• apprehensive of it than are some
one
of co-existence but of exist-, others who advocate just a little
ence.
Accordingly, we cannot but more of it year by year merely,
conclude from all we know and as they say, to keep the standard
of living up. It is still worthy of
have heard about these weapons
note that those countries in Eu¬
that
for

just

a

arrived

visit,

the

said

in

this

country

tkat the problem*

destruction

involved

many
war,

I

in

rope
which have achieved the
most
spectacular recoveries and
proceed on this as¬
whose
living standards are the
sumption. Yet only 15 years ago
highest are the ones which took
one could honestly feel that, come
the most drastic and sometimes
what mav, one's own home base,
painful steps to check inflation
was
invulnerable.
and solidify their currency after
a

third world war might be com¬

plete,

and

Force

of Government in
Our Economy

to

Investors,

Boulevard.

you

this

—for there is

has

OMAHA,

and

Saginaw

turn out to be the

fluctuations

cycle.

ness

not

need

welfare,
normal

great Danish atnrmc physicist, who? the

(Special, to The Financial Chronicle)

trols, Radiator and Fuel Tank Caps, Air Conditioning Drives,

*

way—a

may

profound.

more

the

another

still

in

which

War

Joined Chiles-Schutz

Scurr

Ohio

lives

touches

of

Eldridge B. Scurr Has

Drawn Steel

Cold

Magnetic Drives and Brakes, Dynamometers, Electronic Con¬

numerous

change—its

change

this

moment—particularly against.the
of an economy pow¬
when
he
was
asked
dynamic forces I haVe
ac¬
thought the chief weapons of just outlined, and committed to
the
World War TTT would be. His an¬ large
government exoenditures.
the swer,
you will remember, was that' What should oup monetary polidy
he was rot certain.* but he was be?
Certainly we are agreed that
this policy should not be one of
sure what they would be in World

pace

boom will continue.

Wire,

our

way

we

to

Systems, Leaf Springs, Coil Springs, Chrome Plated Stampings,

Fastening

technical

-But

a

strong demand for capital equip¬

than 40 years.

serves

is

boom

entirely

ment is added

every

that, in spite

persistence, it has failed so
far to leafi to large-scale capital

of

Today

.

to

of the unusual features

of the British boom

more

sooner

expand their plant to

with the rising demand.

It is

for

radical

a

likely impact on a field like met¬
allurgy, for example, or the great
impetus which it is certain to give
to the dispersal of industry.

mercilaflts t0 allow their inven- time in our history, distance and
£0 keGOme depleted. ' The geography in themselves do not

cope

tation

such

For

it.

spending to the extent that it is
necessary
for defense, road^,
schools and other items of public

tor^es

firms

other important

from

without

there

be

recognize that its powers in
this regard have grown since pre¬
duction.
And
since in
a
great some
to talk about the v^st notenwar
days, if only because of its
many instances the output is run¬ tjalities of thp destructive forces
ning very near capacity, industrial with which the world is now faced heavy weight in the economy. And

MANUFACTURING

components to

culture.

consumers''lts Prewar level.
maintenance of their inventories
afford us either the sense or the
Boards of limited companies in [n face 0f an increasing consumer
reality of freedom from direct at-"
Britain have until quite recently demand is bound to stimulate pro¬ tack. Although it is becoming tire¬

domestic

demand.

EATON

medicine, chemistry and agri¬
But we mgy fail to com¬
prehend many of the indirect con¬
sequences that are bound to flow

as

>

level.0* dividends; to the. all-?round Thele

or

first and

ping

_

*

give rise to alarm.
of

^Butler,

additional inducement to exercise
that purchasing power,
P01"ted out that the degree ot in- •- There is reason to .believe that
vestment in comparison \jitfi oih£r
extent^of wages iteeases has
European^countries is far too low. gorje beyorid the limit that has
^ .jald tdat ln ust™al,. irn?5 been economically justifiable,
should pay far more attention to prom the point .of view--of the
equipping -themselves to rr\eet^rogpec|;s 0£ ^ British business
tJ8" boom, however, the increase of
dividends,
lhere: vJJias reaj wages js encouraging, for it
deen>
Jr. '.?
}P~ ensures -continued ' demand" for
crease °* dlv ■
v^e"N^onsumer goodst. -Thfe * persistence
Past year 5r*^Vf-J!£aLa of that demand, in turn/fs bound
®vf.rd.^e adj.us^en.!1
to stimulate industrial investment,

of .^jhe

^hancellor

speak-

This

revolution

in

our

the

war.

To draw the fine

national

security has had one great effect

tary
not

line

on mone¬

policy requires courage and
a
little artistry. We are for-

Volume 180

tunate

in

honored

phrey)

Number 5372

trymen

having

men
like our
(Secretary Hum¬
those who are asso¬

with

it. I know

him

others

who

rendering

as

free

the

to

guide

now

With

Today

Allies

Our

And this brings me to

for

the other

problem which I suggested

great

confronts all of

monetary

policy — for their
their ability and their
courage. They are doing the very
best they know how to do and

at the outset

strength;

ability to
work in close harmony with other
nations who are our allies, in the

this

interest of

is

high

a

standard

us

indeed.

Somehow

now

Americans—our

as

our

defense and

common

a

welfare.

mutual

is

This

a

they must walk the
narrow
ridge between inflation
and deflation, and it is frightfully
important that they maintain a

problem from which some of our
countrymen stilly.would like to

good

to avoid the

balance

task

is

hardly

meanwhile.

made

I

need

world

by the fact that strong

say,

political

easier,

no

escape.

Their

our

winds

are
blowing—and
always come from
the
side
of
inflation.
My only
admonition is, and it is a fervent
one, that they constantly lean into

these

ning

almost

Now

have
-"

quite

'*•

policy

We

ment

clearly

tremendous

a

monetary

at

levers

to

expand

I

know

all

of

you

it is to turn

back to the begin¬

economy

of the

our

centdry.

Indeed, the

indirectly related

of'our dynamic

eco¬

over

nation is responsible

our

half

of

the

free

world's

production; we produce 58% of its
steel, and generate two-thirds of
its electricity. We bulk so large in
the free-world coalition that
minor actions

our

are

even

apt to have

real impact on our allies.

Apart
from any ideology, this binds us
inevitably to the people of the
free world, and them to us. With
a

all

this

we

cannot

and

stand alone. There is not
of

a

doubt

Union

we

formidable

the

confront

do

most

opponent—one that is

we

its hostility

to

us.

add the potential of

imponderable

China,

Soviet

a

giving

mass

the

a population
of more than
million, the scales could pos¬
sibly be tipped against us — not
necessarily today, but in the dawn

qualities that

800

of

tomorrow.' Clearly

some

need

tion

the

friendship and

the

of

280

million

government

analysis the actions of

temperate

coopera¬

There

Asia

to

be

growing

and

India, Pakistan,
Japan if we are

borne

menace

down

of

by

Soviet

of its ally,
Communist

Unfortunately, the task
is

never

an

easy

to

a

our

govern¬

solid base of

informed

responsible
fallen

on

opinion
citizens.

each

of

us,

the realities of the world situation.
And certainly one of our

primary

the

duties in this regard is to gain a
better insight into the national in¬
terests of our allies, and to seek to

en¬

croachment.

leader

has

leave

therefore, an obligation to sharpen
his thinking and to seek to
grasp

the 700 million in

South

on

and

its

among

people in

Western Europe and the 182 mil¬
lion in the Americas, as well as

not

cannot

we

alone, for in the last $

ment must rest

we

not

shadow

a

but that in the

implacable in
And when

dare

world

39

of

understand

the

one,

and
with

for

the

and

make

allowance

peculiarities that custom,

tradition

and environment lend to
day-to-day cooperation
in economic, politi¬ their position. For if we fail in
cal
and military affairs can be this, we shall find ourselves con¬
tortuous and difficult, as we have tinuously falling
prey and perhaps
already discovered many times. It even in the end
succumbing to
requires balance, infinite patience
the
tensions, recrimination and
and a high degree of vision and
Continued on page 40
understanding. And these are

the

other nations

~~

this

of

>

the"

the

thorities need to pull if

"thifn

position

responsibilities

govern-.

some

which

responsibilities of

to the extent

banks
in

the

of

stand

principal

the

stake

Yet it is~gp more possible

growing magnitude of our world

the wind.

since that day—a

progress

which

fact

recognize.

Harmony

our

(1739)

nomic

working at

now

respect and appreciation for them
and

well

assistance

world.

all have the deepest

we

as

essential

guest
and

ciated

The Commercial and Financial Chronicle

...

T.

au-:

,

they

are

contract the

supply
of money. And the manipulation
of these levers, particularly those
that

or

affect

has

interest

required

serves

vital

<a

naturlfr

effect

and

re¬

deposits,

our

our

.on

healtfh. and^.
welfare*
■f

and

rates

for

It

own/

is

quite,

then, that

proper,

v

we

should call „tp the attention of the

autho^tiesrfrojn fime to time the-

impact of their policies

on

well-being.'Certainly

own

we

~

our
all

appreciate that the objective must
be to seek

best

balance that is in the

a

interest

yrhole,

Otherwise.
is

of

nation

asv.a

'

Yet we also know that

main

a

the

would not have it

we

ana

concern

of

the

Fed-

eral Reserve to maintairf-Ti sCuncf

monetary system, and that this in \
turn

requires

k.»

..

healthy system of*
banking. We would only ask, then, -"f
a

.

that the authorities bear this latter

.consideration in mind

„

?

-

;

they dis-,,

as

charge their responsibilities. Obviously it would make little sense"
to follow a line that crimped the
banks for they are key„ instru- ^ ^
ments in generating' $n economic >>
expansion and moreover-they are
$t the very core of the- capitalist J,
system. Banks must be able con-;

.

tinually^to

display a -Confident: ;
resourceful, attitude in their

and

operations

many

which

have

so

vitaFdn influence on the economic

future
In

of

all

oiff-country.
said

have

1

thus

far

I

,

have tried to stress the strength in

present situation—to point out
factors that make the position of
our

our

economy

/by
;

;

-

h'A

■i

stable than in

more

the

'30's^i have suggested that
Our
present position is indubitably
stronger; that We Rriojv. considerably

about the nature of

more

than

problems
that

and

in

pre-war

circumstances

T;

our

.days;

printed

have cast

on a

sheet of

HOW ETCHED PRINTED

the government into a position to

I

exercise

t

of

more

/stabilizing

a

force.

By all this I
imply that the
'

before

do

not

to

mean

future

stretches

long uninter-.
rupted march forward. That is not
jus

as

one

achieved in

ciety, and

we

a

free

let

us say,

second

shall have to have

in

our

recognize,
that the achievement of
even

or

history

third best year

a

may

be

a necessary

To

phase of our forward progress.. It
is certainly not possible to foresee
all

the

circumstances

that

'

which

those

and

you

others

who

I,

make

and

keep

pace

with the fast-growing demand for "Electro-Sheet"

copper

in

help

bring about.

the task of
of the
eries

the

and

the

researchers

*

held
This

-

more

to

very

exceptionally clean and smooth surfaces with
close tolerances. •«

gage

size

tangible form of practical reality.
Beyond all else, we must never
falter in

knowledge and faith
that American business is a strong
our

and

progressive force, capable of
fulfilling the hopes of our coun¬




'

I
I

3.

Unwanted copper etched away

I

"

cn
4.

I

Protective

".a

coating removed

4-

4-

4

4.

I

(only oltctricol circuit remain!)

I

production of "Electro-Sheet" copper typifies Anaconda's program for serving
effectively industry's many needs for copper and copper alloy products.

I

In

I

I

'

The American Brass

Company

Anaconda Wire & Cable

•

AnacondA

Andes

Chile

Company
Copper Mining Company

Copper Company

Greene Cananea

Copper Company

Anaconda Aluminum Company

COPPER MINING COMPANY

Anaconda Sales
International

Company,

Smelting and Refining Company

nents

the

I

4

tions

I

I

of radio and

production

television

I
I

3

is

the

4

I

I

54292-B

discov¬

into

4

1

the

ours

4

I

translating the desires

consumers

of

For

of desired circuit

~

I

I

business community, can do much
to

Acid-Resistant Printing
4

I

I

all

up

2.

I

I

with

look

to "base-board"

i,

I

This calls for

-

outlook for the American economy

confidence, enthusiasm and
profound respect. And it is an out-'

"Electro-Sheet" bonded

I

television, Anaconda is producing substantially larger quantities of
this material, in 1-oz. and 2-oz. weights, and of
"printed circuit quality."

will

have every reason to view the

1.

I

radio and

-

mold the future. Yet I believe that
we

I
I

Many millions of pounds of this thin-gage copper sheet have been supplied
to
industry over the years. A typical use of "Electro-Sheet" in the building field
has been for
waterproofing-membranes and paper-coated flashing. Because
"Electro-Sheet" is furnished in widths up to 64", as thin as Vi oz. to the
square
foot (.0007"), and up to 7 oz.
per square foot, many other industries have
found
important, yet economical, applications for this product.

so¬

the balance of mind to

a

I

I

the nature of the process by which
progress is

CIRCUITS ARE MADE

I

Today, circuits for many electrical appliances start on a paper-thin sheet of
copper called "Electro-Sheet" ... a versatile product of electro-deposition
developed by Anaconda over 20 years ago.

are

receivers,

compo¬

mounted in place on

printed circuit and connec¬
are

made

simultaneously

by dip-soldering.

I

I
I

•

Inquiries
should

on

be

American

"Electro-Sheet"

directed
Brass

to

The

Company,
Walerbury 20, Conn.

i J

.

J

40

The Commercial and Financial Chronicle...

(1740)

y

■

A New

have

I

that if
work
among

night

and

day

plant

to

Position
Let

cite

me

illustration

an

of

the

peculiarities in

or

I speak

two of what I mean when

allies'

our

to gain a

position—for this need

Four

East.

with

vigorous trade

Chancel¬

former

lors, the latest being the notorious
Papen, have recently come out
against Adenauer and his Western
policy.
To be sure, no one of

us.

Peculiarities in Our Allies'

;

the

earlier

these is

more

but

of Adenauer's

one

tion

leaders,

have

taken

than

spent force,

a

coali¬

own

Dehler,
seems
to
much the same

very

larger measure of mutual under¬

line and

standing with our allies is one of
the
foremost
problems pressing

Yet today the people of
Germany as a whole are solidly
pro-Western and very few indeed
would wish to see our troops de¬
part. They have had the example

today. Consider for ex¬
ample our British friends, who on
occasion give signs of compromis¬
ing more than we feel desirable.
Clearly this attitude is not un¬
related
to
certain
experiments
with the new thermo-n u c 1 e a r
upon

us

we

carried

have

the

and
out

weapons

Russians

independently

the past two years.

of one

The mere
of our explo¬

sions in the Pacific

severely shook

over

description

thinking of Winston Churchill,
who certainly has never
flinched in the face of disaster.

does the Socialist op¬

so

position.

of

Communist

oppression right
eyes — in
Berlin,
Eastern
boundaries,

their

before

along

the

from

the

experiences of
refugees—as the
have not.
But the point
to make is that though
dinary German's attitude
Communism

is

much

the

that

one

than the average

When

heard—whether

he

rately

or

accu¬

do

I

inaccurately

not

the

of

be

some

not

for

taken

French

wish

I

the

or¬

static

small,

of an island, however
a matter of no little
what he
frequently

was

to

concern

play

many

policy

our

and

and

bases

Likewise

their soil.

on

Middle East and

determine

in preparation in
The fact that

immediate

to

bombing

should

Soviet
war—is

there

rather

itself

in

the

of

be

of

strength

our

Security

linked

I

eco¬

our

security with

our

incumbent upon us

bomber

Asia, and it will be up to each of
us as citizens to
appreciate this if

deny that some

Soviets'

the

strategic

guided missile pro¬

force and their

is no wonder that the
is seriously raised in

it
question

gram,

Britain whether in

Isles

British

the

all-out war

an

really

are

fensible. Whatever the

de¬
to

answer

question, the British Cabinet
to tread very carefully
before it accepts the arbitrament

this

bound

is

of

They are naturally bound

war.

concentrate

to

deterrents

on

to

less
bellicose than some of our politi¬
cians seem to be as they ponder
those problems. All this we must
weigh and understand when the
and

war

British
than

softer line

of

country which has,

a

coincidences

of

the influences of her

and

history,

own

Communist voting population of
between one-fifth and one-fourth

a

of

entire

the

not

are

electorate;

and

no

appreciable dent has been made
in their strength since 1944.
The

frenchman has

recollection of

no

to

indifferent
of

terest

lose

them.

casual

or

Britain

To

to

and

the

essential

be

the

in¬

Com¬

to France, to Japan
Geramny would be folly.

to

no

is also

and

irritations

with

Britain, and

and

the

on

Commonwealth
side.

our

The

passion

developments

tees

this

of

It is just that im¬

peace.

with

dignation

but

mind

losses

the

the
First

when

bear

in

suffered

in

we

she

World

War,

the

occupation

decisions-

cult
make

can

her

is

her

be

attitude.

induced,

has

close

of

the

to

war,

palliation

some

With

attachment

had

her
to

of

resources,

democratic

too

forms

of

people and, for that matter,
too
many
legislators who are
Communists. In short, the French

tional

relationship and her latent

look

France

such

a

basis.

There

are

many

as

upon the Communists more
political group seeking a par¬

a

majority

than

conspiratorial

body

liamentary
sort

of

as

a

to be

suppressed by the Surete and the
Secret

the

that

This

Police.

is

majority of

not

say

Frenchmen

not uneasy over this

are

to

situation;

but it is difficult for them to treat

this

all

group,

or

indeed

to

look

government,

tradi¬

our

not

were

on

our

side.

And

with all the pulls and hauls on
Germany—well, I may need to be
instructed

by the Joint Chiefs of
Staff
concerning
the
strategic
importance of the island of Quemoy,

but

portance
revived

affair indicate treason).

all

feel

I

struction

no

need

them

from

on

for
the

in¬
im¬

aligning Germany's
strength with that of the
of

West!

This may

unfortunate

be

and for the
act

and

Then
and

for France, for us
alliance, but one must

think in

into

them

propaganda that
alignment
with
must

who
that

to

it.

Germany.
Day in
day out the Germans have it

hammered

tion.

relation

take

if

There

have
the

Germans

hope

are

Soviet
arm

West

of

in

they

unifica¬

Germans

many

the-

lingering feeling
destiny of their nation

lies eastward.

concept,

they

the

forego all

by

as

Bismarck had this

you

alive
J

know, and many
today can recall
Jft




•

to

risks

we

in

run

or

the

of

importance

and

our

a

as

traditional

in

Many Of

position of the
community is one

the

influence

and

you may

positions

responsibility.
be remote from

of" political

but the wide range

influence,

and nature of

contacts are such that you
in particular can do much to mold

your

which

that

our

leaders

much

so

need in order to formulate

clear

a

and strong

policy in this period of
strength, we must realize that we tension: namely, a knowledgeable
would
suffer
a
and sober attitude throughout the
heavy loss
if

them,
as
traitors
(even
tnough incidents like the Baranes

upon

to

these
well

of
comport

some

thermo-nuclear ;, age

The

de¬

great and diffi¬

she

the

since

there

on

have

we

world leader. It is
our duty to set the example, for
calm
discussion
and
objective
thinking.
v
*

be

just too large to be dealt with

be¬

nation.
The

present Administration, in
the person of the President, has

splendid expression of this
and objectives.
He has pointed out that we seek
dominion over no peoples and no
lands — a fact that is generally
recognized throughout the free

given

a

nation's character

world.

Rather

seek

we

to

assure

political and economic environ¬
ment in which the peoples of all
nations may improve their lot and

a

Again let

me

that I

say

because

this

I

wish

recite
to

re-

emphasize the need for, and the move forward along paths of their
duty of, the responsible citizen own choosing. To this end we our¬
to
gain some awareness of the selves have made an enormous
realities

of

including
allies.

the

the

We

cannot
iLast,

all

us

an

forces
the

can

in
that

world

individual

of

be

our

Secre¬

members of

the

Council;

i

the Far

tunate

nations

Europe;
be sufficiently
respect of the

before

known.

or

are
playing
today to make

contribution

to

a

establishing

riches

shared

on

n

a

peacetime prosperity and a level
of
productivity- never
before
reached in history. And we have

we

America

knowledgeable
around

all

be experts

but each of

great

or

Security

South

situation, contribution

position

cannot

taries of State

National

world

hard
tional
are

our

at

other

to

with
a

We

less

degree
have

for¬

never

worked

aspects of interna¬

cooperation,

and

occasional lapses or

from

time to time which

alter

our

general

course

if there
reactions
seem

of

to

con-

Come

will

titanic

con¬

struggle to keep men

Agriculture

equipment — and about the fi¬
nancing of it—which none of U3

will

the

is

this

all

his

bankers

are

I

and

basis

that is

you
your

efforts in that field.

has

in

future, just

the

in

recent

as

it—
how
much equipment and what kind
of equipment he needs has been
very good judgment indeed.
He
knows, usually better than any
one else, what it takes for him to
earn the maximum profit.

it

years;

the farmer is going to
larger share of his assets
productive equipment.
should not frighten any

a

It is

the

of

Our

that

fact

work

has

he

to

fewer human helpers,

acres,

In 1941,

cording

in

went

have

of

help,

ma¬

In
for

you

in
I

see

a

to

wiU

get the job done.

,

Corp.2nd Pfd.Stock:
investment

banking

group

headed

by Drexel & Co. and Harriman Ripley & Co. Incorporated
on Oct. 26 offered publicly a new
:

of

issue

shares of Mead
cumulative second
(par $50) at $52

150,000

that

in¬

Corp.,

with

the

preferred stock

term developments
That's the first thing

long

as

in the banking profes¬
we
face the future, if

accordance

farming.

interests with

count in the same friend¬

of

.growth

in

vestment
known

,

past,

Bankers Offer Mead
An

expect to see a moderate

the

friendships,

many

common

As

can

be able

stepped up again to 10.4%.

steady

in

port from you, I believe we

1953,, the most recent year
which figures, are available,

but

we

ship and understanding and sup¬

total assets.

would

I

we

task

our

and'

men

sion.

the investment in machinery;:
equipment amounted to 9.5%

it had

things

always had a great deal

many

That to¬

includes their
automobiles, and barn
equipment as well as tractors and
implements.
By 1945, near the end of the
war,
that investment had not
changed very much—it had gone
up to 6.5%.
By 1950, however, it
had begun to grow; and in that

of the

about

we

undoubtedly

and

same

had to do. They will
change in the future. As we

not

trucks,

year

the

are

have always

and
tal

do
the

for themselves in use.

Those

Agriculture, the farmers of this
country had only about 6% of
total assets invested

it

do

done,

he wants it, sell for a price
can reasonably afford, and

pay

before World War II, ac¬
the balance sheet of

to

chinery and equipment.

wants

that he

agriculture which is prepared by
the United States Department of

their

he

way

products. The process, in fact, is
already well under way.

that will

design machines

what

expanding market for his

an

job in the farm equipment
is to help him do his
and earn his profit: We have

industry

normal and inevitable

a

credit records for

our

many, many years will prove
the
farmer's judgment on

thing is obviously going to

happened

be

The second fact is that over the

years—and

it should be; and
will continue and

expand

will

ever

It must pay

back its own
cost
and return a
profit to its
owner within a reasonable period
of time, or it will not be bought.

the way

hope

I

it

which

on

salable.

not.

am

product

a

for itself in use. That
is the only basis on which is has
ever
been salable, and the only

to

answers

is

which pays

bankers.

the

know

'

that farm machinery

have

borrower, and

as a

as

question
will

forget.

ever

The first and most important is

question much better than I.

and

France's indecision and equivo¬
cal attitude have created great in¬

suppressed by an FBI or a Sena¬
torial investigation program.
It

to

politi¬

are

men

result

dignity

position

that

there

farmer,

You

more

portant.

looked

something

deeply

that

the

either

the series of

as

so

over

ization of this fact throughout the
world is one of our best guaran¬

and

upon

that

it

dulged in too much recrimination
and

real¬

vivid recollection of several
ones. Moreover, the Com¬
munist Party in France
is not
German

of the great

World

banker

a

but

spite of peripatetic missions to comprehend. We have to view
and Peking, I have not these things with the same per¬
slightest doubt that from the spective and flexibility as we view
very beginning of any conflict in great economic and financial
which
the
issues
were
drawn, trends. The nation has already in¬

of

has

banking;

to face and un¬

nation

35

page

in the years ahead.

effect

you

That

Moscow

be

on

one.

the

would

the

namely,

is

our

is

free.

invested in

in

German

he

but

nation

the

of

good

some

Western

moralization which the defeat and

invasion

Russian

very

»

to

forces

cal

what

on

have

us

ginning to affect our daily lives.
The
British
Commonwealth, It is not only the coming of the
though perhaps not as mighty, airplane and atomic power, but
represents strength comparable to such things as the rise of Com¬
that of either Russia or the United munism, the awakening of Asia
States.
With all our differences and the shift of power
in the

the

a

forces

necessary

derstand

Finally,
of

One

would
knowledge of the

among

one

economic

monwealth,
and

Britain

He is

the Frenchman.

series

a

a

desire,

citizen

by

to take

seem

we

Or take
a

apt to be

they are

we

the

machines in

many

ways

happen

problems which our

enormous

economy

bold.

it

may,

should

all to seek to

understand and to face objectively

American

and

tinue to stand in the forefront of

Mechanization and Farm Credit

You

speaks of as "our island Empire."
seriously, in the face of such
and with the development

of

what

Furthermore, you have been gain¬
ing more and more experience
these last few years in the financ¬
ing of farm equipment. To me,

Security

of Economic

Link

tainly

many

concrete

present technology and our pres¬
ent world position involve. Cer¬

But

applied to

Southeast Asia.
have such bases

we

and, I believe
to us, indispensable values to be
preserved both in Europe and in

iorces

of the

forward

In

at least are

invitations

—all

nomic

our

the

is

shall continue

we

that the underlying

prove

Future of Mechanization

bases in the

some

With Physical

great

are

are

greatest overseas

our

have other great

we

the

There

of

some

At the outset

action.

to

friends and alli¬

our

that

and

ances

troops are quartered

our

Ger¬

upon

in

Deneve we snail

iney may De. i

hold fast to

Britain, France and Germany,

The

and they must be
seriously into account as we form

appearance

in

physical
security, and I want to return to
taken this
thought before I close. It is

erations

which

fact that

from

as

course

shall fully

we

responsibilities

Continued

Soviet blandishments have

many

are

Ijjpow—that an island had disap¬

other nation.

our

respect, though
to
be done and

yet to be deflected before we can
be fully assured of its achieve¬
ments.
Nor can we blink at the

cannot

There

peared in the course of the opera¬
tion, he naturally felt that the dis¬

v

remains

much

good step

a

was

this

in

forward

alliances.

strong counter-consid¬

very

Conference

don

like

and

any

I have faith that
meet

American's

granted.

achieved

been

never

our

evidence

Frenchman's, the

to

degree of perfection from
has

by

slightest doubt
good¬

the

do maintain our

be

strength and, above all,
period ahead, that we shall make
our
common
sense, we will re¬
whatever
adjustments
are
re¬
ceive all the cooperation through¬
quired of us, painful and exacting
out the free world that we need
and deserve.
Certainly the Lon¬
will,

toward

more

average

is

situation

10

over

million

a

would

that

us

not

we

otherwise

it

exact

crimination.

Background for Banking
their

have

gain this knowledge without bias
or
slant, without hysteria or re¬

_

dissension which the Communists

duct they are understandable. To

We have to

public opinion.

sober

Continued from page 39

Thursday, October 28, 1954

trend.

4.30%

share.

per

The

second

you can ex¬

pect to see new investments made
by farmers in farm machinery,
not necessarily based on the old

preferred

into

convertible

Secondly, I believe

stock

is

shares

common

prior to Dec. 1, 1964, at the rate
of lVs shares of common for each
share of second preferred.
Proceeds from the

sale will be

equipment having been worn out.
In industry, it is common to see
productive machinery replaced

added to the

long before it is worn out, because

ment, expansion and improvement

machines of greater

new

capacity

and

usefulness, offering great
cost-cutting
possibilities,
have
been made available.
Right now
is

there

in

discussion

much

the

business journals of

what is called
"automation," which is a fancy
word meaning greater mechaniza¬
with

tion

latest

the

automatic

equipment.
I

have
of

some

chine

tried
the

to

explain to you

trends

design

in

which

farm

will

make

machines obsoles¬
from the standpoint of pro¬

many

cent

present

duction

costs

of

the

farmer.

farmer is in business, too;
has costs to cut.
any one

the

ma¬

of

in

new

pared to be frightened also by in¬
dustry's investment in new indus¬
trial equipment.
are

two

policy of replace¬

its facilities.

In

the ten

years

ended in 1953

approximately $46,000,000
was
expended for this
purpose
and approximately $7,500,000 will be spent this year.
The company produces paper and
paper products.
Associated

G.

gan

in

the

Walker &

H.

offering are:

Co.; Glore, For-

& Co.; Blyth & Co., Inc.; The
Boston Corp.; Goldman,

First

Sachs

&

Co.; Kidder, Peabody &

Co.; Carl M. Loeb, Rhoades & Co.J
Merrill Lynch, Pierce, Fenner &
Beane; Smith, Barney & Co.; and

White, Weld & Co.

and he

equipment unless he is pre¬

There

is engaged in a

So I don't think

investment

The Mead Corporation

company.

William J. Minsch

should be alarmed about

farmer's

farm

The

general funds of the

things about farm

William J. Minsch passed
Oct.

25th

at

the

age

of

away

70.

Mr.

Minsch, one of the founders of
Minsch, Monell & Co., was a part¬
ner
in Robert Garrett &
Sons,
prior to his retirement.

Volume 180

Number 5372

A. The Commercial

and Financial Chronicle

(1741)

Continued

from

26

page

production.
dous

and

Witness

West Coast
of

areas

the

tremen¬

thrilling growth
as

of

one

our

manufacturing

of

the

leading

and

com¬

Witness also what is
going

merce.

in every section of the South
and Southwest where some of
our
on

commercial bank management will

this

encourage

and

will

its

type of approach
the doors, through

open

commercial

customers

and

friends, to research and study by
investment
vestment
rather
must

officers.

If

trust

in¬

policy is to be dynamic,
stodgy and static, it

than

have

broad

a

and

addition

volved

these

to

recent

years,

in¬

healthy

very

greatest

the temptation and

ing.

opportunity to
seek proxy votes for the purpose
of challenging
existing boards of
directors. Careful and wise thought
must be given to such problems
and

decisions.

directorships must be

weighed objectively, and positions

in

present-day investment must be taken on merits, rather
procedures, there are certain re¬ than on prejudices. The best in¬
sponsibilities.

Not the least is

responsibility to
rent

see

favorable

that the

climate

in

equity markets continues,
we

can

forward

go

so

with

our

cur¬

the

that

confi¬

dence.

Any tendency to revert to
"old days" must be resisted.

the

terests of the trust

or

investment

client will not always seem to co¬
incide with the best interest of the
bank itself. The trust

department
must have the
authority and the
independence of decision to act

abuses would end conservative in¬

according to its best judgment, no
matter how the chips
may fall.
We must always remember that

vestment; in

each

A

reversion

and

so

to

past

the

excesses

equity

it behooves

market;

those who

directly involved in those
those

and

them

over

tive
in

funds

them

markets
in truth

who
to

see

are

markets

supervision

that

conserva¬

continue to

can

with

have

and

confidence.

invest
If

our

show that they have
"grown up," there is al¬

can

most unlimited

trust

estate

has

a

entity and is beholden
its rights are

secure

separate

to

and

no

one;

definite.

Too

corpo¬

a

responsibility for the

ment

of

takes

us

manage¬

these corporations.
This
into waters that at times

are
rough and full of dangers,
especially when there is a con¬

and

impar¬

to

are

be

found

throughout the length and breadth
of

the

U.S.A.

It

also

must broaden

we

stretch

our

means

horizons and

imaginations

our

the situations

find

we

that

beyond

on our

door¬

steps.
In

in

opinion

that

than

more

it

me

venture

means

that

to

the

something

us

all—and

something we must ponder on
long and prayerfully. Now every
section, in fact every state, has a
interest

common

whole.

plete

the

to it that

our

legislators and ad¬

as

an

understand¬

integrity.
of

our

If

and

com¬

do

we

so, the
business-

fiduciary

limitless, and our segment of
banking world will grow and

highest hopes.
is,
indeed,
a
challenging
thought and an inspiring prospect

CHARLOTTE,

ing of

Smith

and

of

necessity, become

in

all

affiliated

Investment

was

with

Co.,

In

up

to

to

us

..-The

We

prejudice that

still persists in some minds

executors

con¬

against

and

trustees.

of

common

implications

stock

ownership in these stirring
and changing times are many and
compelling.
They are infinitely
more

*

comolex

than

they

were

when-the East and Midwest com¬
prised the industrial belt of the

country, and
tion

was

culture

the rest of the

na¬

largely engaged in agri¬

or

the extraction and proc¬

full

facets of

our

confidence

on

with

past

Jackson

&

R.

S.

Dickson

&

Co.,

both

that

sides

is

V,Net proceeds from the sale of
bonds, together with funds to
received

sale

of

(Special to The Financial Chronicle)

essential.

the

scheduled
common

organization,

Wisconsin Electric
Power Co., will be added to the

of

$1,700,000; to finance the
continuing

additions

and

to the company's
utility plant and to reimburse' its

treasury for capital expenditures

previously made.

-

...

,

Wisconsin Michigan Power

Co.

is engaged in the
generation, dis¬
tribution and sale of electric
ergy in

the

Thomson, McKinnon Adds
v

from

50,000 shares of

stock of the company to its
parent

timated

involved

so

economy

on

the
be

Inc.,

the

Inc.

dangers; and it's

N.

Building.

and

Oct. 26

improvements

C.—Cecil C.
Joseph O. Sargent

become

Mi. Rankin

on

.4

cost

(Special to The Financial Chronicle)

have

by the underwriter

won

loans of

Two Join Southern In v.

Rankin

was

at competitive sale
its bid of 100.07%.

general funds of the company to
be used to retire short term bank

that faces us!

it.

our system and believe in
The Federal Government
has,

Power Go, Bonds

we

objec¬

It

see

government is sym¬

Halsey, Stuart Offers
Wisconsin Michigan

sue

authority,

ourselves

prosper beyond our

—

Every state must

this

conduct

future

the preserva¬
tion and future growth of the in¬
a

than

are

tively, and with wisdom

dustry and trade of this country
as

we

assuming

must

is

closing, let

inves-/.

as

involved

acquiring as- ..Halsey, Stuart & Co. Inc. yes¬
investors the right and
duty to terday (Oct. 27) offered $3,000,000
influence trends and events. We of Wisconsin Michigan Power Co.
have emerged from
first mortgage bonds,
complete ab¬
3%%, series
sorption in debt and now have an due Oct. 15, 1984, at 100.75% and
important position in ownership. accrued interest, to yield approxi¬
In
occupying this position and mately 3.085%. Award of the is¬

tiality. Fortunately, the banking
fraternity is now alive to these

essing of our natural resources.
test for management control. The Today
every section of the coun¬
broadening of equity ownership try has a part in our industrial




equity investment is nation¬
wide, and that opportunities for

matters, for

ministrators have

independence

corporate

on cer¬

officers?

for

deeply

before in the big things
go¬
on in our nation.
We should
have an audible voice in
these

losing

omy.

tain responsibilities that we rarely
had as bondholders. First, we have

trust

invest¬

ever

Johnston

must overcome the

commercial, and financial
rations, we inevitably take

to

that the reservoir

trust

our

ing

Southern

constantly grow¬
ing and improving American econ¬

important partners in the
ownership of American industrial,

and

means

more

Washington

joy the fruits of

As

it

me

of

we'find ourselves

tors

pathetic with our free industrial
system and that those it sends to

vince the public of that fact.

■

investment
To

share

So

often the corporate executor
trustee has been left out of wills
and deeds because of the fear of
or

opportunity for the
investor, large and small, to en¬
a

installations are unfold¬
What does this mean to trust

investment

Loyalties and interlocking con¬
nections and

duties

a

development, has brought with it

construc¬

tive approach by us all.
In

in

large
ments.
V

41

e»-^
territory having an es¬
of 203,000 in

a

population

east-central

portion of
Northern

northern

and

Wisconsin, and in the
Peninsula

of

Michigan.

CHARLOTTE, N, C.—James W. The company also distributes in
hardly mention that any
McKinney is with Thomson &
government in Washington, of
Appleton,
Wisconisn,
and
its
McKinnon, Liberty Life Building:
whatever political party, that is
vicinity, natural gas which it pur¬
patently hostile to business would
chases from Michigan Wisconsin
Joins Carter H. Harrison
soon-.- destroy * the
understanding
I

need

and

confidence that permits to¬
day's tremendous growth in pro¬

duction, research, and the tech¬
niques that increase the output
and

earnings

capital.

Such

of
a

both

labor

and

political develop¬

ment would undermine

our

equity

position and would jeopardize

a

V

:

ney

has

Carter
South
of

Pipe Line Company.

(Special to The Financial Chronicle)

CHICAGO,

the

La

Har¬

1953, the company had total

associated

become

H.

with

ating

Harrison
Salle

&

Street,

Co.,

209

members

Midwest

Stock

Exchange.

Mr.

Harney for

many

years

with

Lillig-Gould Investment Co.
George J. Lillig & Co.

and

For the year

A.

111.—John

So you

throw

was

a

revenues

net income of

12

months

operating
at

oper¬

of $12,159,630

$1,599,787.

ended

and

For the

June

30,

1954,

reported

revenues were

$12,254,858 and net income at

$1,605,697.

*

'

v-V

lot of weight in a board of

directors' meeting!

So what? The caprices of

the

frequently have been known to leave

fair

sex

you

stewing in your own juice,

'

■'{<
To

duplicate

your

nonetheless.

executive prowess in

the

realm of

"women"-may we suggest that you

resort to

the flattery of a

You

truly fine perfume?

might start off with the jewel fragrance,

EMERAUDE. (Less expensive

variety—and
T.T.'s. of

our

very

nearly

than the square-cut

as

effective, say the

acquaintance!)

-

$50 tO 2.85

m

plus tax

\

The Commercial and Financial Chronicle

42

...

Thursday, October 28, 1954

(1742)

')*
Continued from page

staffs
in

do with respect to the

you

22

of

banks—it

your

equally

is

best interest to see that they
done for those charged with

your

pation in their work, even at some

-

*

personal sacrifice.
en¬

such

banking system.
Of all the
credit agencies in the economy,
the role of banking is most per¬
vasive.
It is intimately
woven

I

By OWEN ELY

confident that there is no

am

New

would

who

audience

this

in

one

suggestions run
counter to the long-run interests
of bankers.
All of us in banking
are
dedicated to a mutual goal:
these

that

feel

efforts

our

expressed in fine per¬

formance—deeds not words.
We must work

5.

constructively

supervisory authorities, leg¬
islators, and government agencies
in the search for better and more

they might find distasteful. / \
These

with

resourceful banking in the
interest.

areas

are

ing.

each

In

service.

material

has

and

can

them,

of

one

of
role

its

Yet

give them the benefit of our necessarily must be somewhat lim¬
Ours is a complex banking
best thinking, and support their ited.
It is a system of di¬
efforts to promote a sound and structure.
verse
interests,
developed
on
stable economy.
6. As leaders in the community, democratic lines in the traditions
to

help

must

we

to

create

a

better

£ understanding on the part of our
people regarding their duties and
obligations if they wish to pre¬
themselves

for

serve

their

and

great privileges of
freedom of opportunity and a re¬
liable dollar coupled with a high
standard of living.
We come in
the

children

contact with large

numbers of per¬

and we can quietly and ef¬

sons;

good

fectively foster the cause of

citizenship, which in the long run

solidify the progress that we

will

have made

nation.

a

as

maintain

government; and the pat¬
banking organizations

our

tern of our

it.
In so many
ways, we can, through this Asso¬
ciation, not only increase our us¬
able
knowledge, but also make
more
effective
our
efforts "in
has

others.
However,
the real job lies with each one of
with

working

fulfilling our responsibility

in

us

public. Tools have no value
unless the worker is willing and
to the

able to
We

Permit

thoughts

think

them

over

these

of

banking

system by serving well the finan¬
cial needs of

have
28

opened

venience of clients in the

i.i

,

i

...

,

i.

are

Chapin Opens

PITSFORD, N. Y.

•

sound

intended

by you. You pay your
state taxes: ad valorem real estate

capital stock taxes and, in
some
states, deposit taxes. You
are all in the forefront of support

enough, there are still
in which supervisory

and

civic enterprises.

compel

therefore, justfied in seeking

support your state banking de-

instances
Some Suggestions

There!

many

are

can

be

banking

state

most

other

we„

job.

All

that

is

required is your determined and
enthusiastic support
Here are a
few suggestions

a

which come to me

the result of my experience as

as

state bank

my

more

In

some

of

mismanagement

may

the difference between

mean.

supervisor and from

The
many

bank

0f

commissioner

0ur

states

is

in

not

too

ade-

quately compensated for the
sponsibility
with
which
he
charged

nor

do

the

best

job.

missioners in other states.

of

In

new

permit him
regret to

missioners—who

frequently

per-

chartering form other duties as well—a salbanks should be broadened, ary no more than that received by

some

been

a

Stock

York

the

states, it is almost man-

datory that a charter be granted
when the proper forms have been
filed and minimum capitalization

examiners with minor responsibil-

ity in other supervisory agencies,

At the end of 1953

plant

authority and assistance to
Yet efforts which will attract to the

requirements have been met
there are other factors which are

always vitally important to the
making of a correct decision. For

example, consideration should be
given to the ability of the com-

important business of bank super-

on

with the present market price

Exchange.

on

a

Financial Chronicle)

to The

(Special

OAKLAND, Calif.

—

Hal W.

Wakefield is engaging in a securities business from offices at 5830
College Avenue,
C. W.

five-year

business.

Co.

OGDEN, Utah—Weber Invest¬
xjas
has

Co.

offices

2341

at

uecii
been

,uimeu
formed

wllI1
with

Kiesel Avenue to
A

branch office is located at 10 West

Center

Provo

Street

'
Carter Co. To Admit
Carter
New

New

&

York

York

Co.,
City,

.

14 Wall Street,
members of the
Exchange, on

COMMON STOCK RECORD

Nov. 4th will admit J. Louis Don¬

nelly to partnership."

my

1.23

34,000.000

1.15

__

1949

__

(8pedal to The Rnancul Chron1cle)

1948-^a.

-

aW^t

t?q

t

*

_

1946_-___
^

.

**

5' 29,000,000

1945-^—-

„

1.00

...

1.46

.

1>31.

14

16-13
16-12

0.85
0.80,

-

16-14
.

,44-10

..^12-10^

0.40 >•

1.37

.>22,000,000
20,000,000 V _

•

-

G.95

; 1.31

^29.000,000

__

V

1.46

131,000,000

J:-'>25,000,000

1947

1-3

1.00

1951
1950

.

1.28

V-";

Beverly

-The figures

include the New

Joins Gdodbody

Hampshire-and Maine subsidiaries, sokl m 1954.

Staff -

*

n

is

now

Fla,—Girard W, Moore,
connected with Good-

.»Gerard JobinAdds

- -

(Special to The Financial Chronicle}''

(£v>ed:ii to The Financial Chronicle) -•

Jr.

■>

...

ST.

PETERSBURG, Fla.—Harry

S. Williams has become associated
•with .Gerard. R.. Jobin. Investments

Co.,I 14 Northeast First
examiners"—initiated or* in-~ties Co. He was previously with body
Ltd., 242 Beach Drive; North.
Avenue?-—
~T \ L-:
creased. All or most of these things Dean Witter & Co.
-*• ;
!

point that the char* of




*,$38,000,000

$1.00

%

Three With Daniel Weston

APPR0X. RANGE

DIVIDENDS

__#36,000,000

1952

■

EARNED

$1.23

1953

T nc

,

& ELECTRIC ASSOCIATION *

-jg- REVENUES

YEARS

MIAMI

tering- of new banks is a function

ENGLAND GAS

NEW

Stock

t

In the 12 months

$1.37 a share was reported vs. $1.42 in the
preceding period,, on a consolidated basis; parent company, earn¬
ings were $128 Vs. $1.37 (these figures are on average shares
outstanding), jihese earnings would be subject to some dilution
(perhaps abou|':5c a share) if the $4.50 preferred stock should be
entirely converted. The sale of the New Hampshire and Maine sub¬
sidiaries is nd|'expected to have any material effect on earnings.
Earnings for the calendar year 1954 some time ago were fore¬
cast at about $1.40, but the subsequent hurricane damage iwhich
may be amortized over a three-year basis)
may reduce this by
about 3 to 5c?§tt is conjectured that consolidated earnings would
probably h av£to exceed $1.40 consistently before an increase in
the $1 dividend might be considered.
The stock^has been selling recently around I6V2, to yield 6%.
The price-earrings ratio is 12.4, which is substantially below the
industry average.'
j

,

ment
1IiClll

record is shown below.

3% 1954,

ended Sept.

Nolting Opens,

BIRMINGHAM, Ala. —Carl W.
Nolting has opened offices at 117
Rosebud
Drive
to
engage
in a
securities

noteXS

The comrfion stock

to extend is not
in order bearing
the health and security The'Atomic now associated with
Lam confident it this listnecessary fringe benefits—particularly those . Lotspiech is* Development Seciirito make

stock about a year ago
share, which was 93% subscribed

per

primary rights, with the remaining shares nearly nine times
oversubscribed-pnthe secondary rights. No equity financing has
occurred this y^ar to date. " The sale of the company's New Hamp¬
shire and Main^subsidiaires to Public Service of New Hampshire
last April did hot involve cash, .since NEGEA received 120,000
common
sharps, of Public Service and the company's $2,250,000

Opens

munity to support a bank, for if
earnings prospects are poor, the
bank is not likely to be sound, men, and the salary scale should
\i/*fi_
a#.
*
IV.
1
vAnother factor to be considered, recognize the value of experience.- Wit" AtomiciX/evelopmeiic;
for obvious reasons, is the char- Advanced training
programs*
(special tathe fdukcsl chronicle)
aeter of the proposed management, should- be made - available, and
LOS ANGELES, Ctlif.—John E..
on

basis at $13.75

l-for-10

on

H. W. Wakefield

vision men of high caliber and Holmes Maurice J Kanlan and
qualifications. Such positions Alh£?r£221
should be available on a merit connected with Daniel D 'Weston
basis only—free from political in- & Contoanv'118 South Beverlv
terference. Salaries should be suf- Drive
South .
ficient to attract highly capable "

r me

NEG<E'A's equity ratio was about 34%, with

original cost basis and with negligible intangibles.-

an

Book value w^ts $15 which compares
around I6V2. The companv sold common

member of the

As state bankers, you can lend
your

subject to cyclical influences. In any event, the

profitable.

his retirement Mr. Hotch-

I

recent observations of s^y that there are a number of
faced by bank com- states which pay their bank com¬
over

Hotchkiss Jr.

Hotchkiss, Jr. passed

isbuSSI.

is his term of office

0f such length as will

to

re-

the problems

Discretion

price of which may
efficient manu^
factured gas plants will provide for substantial expansion in the
future, especially if added supplies of natural gas may involve
higher field costs. The company has been very active in develop¬
ing house-heating customers, and the gas business is considered
be

in the

offices

leaders in perfecting its

however, involves the sale of by-products, the

a secur¬

Valley Trust Building.

had

v:1

oil-gas manufacturing process, and unit costs have been reduced
to a level somewhat comparable with the cost of natural gas. This,

Francis

—

is engaging in

Form Weber Inv.

and financial crisis,

It also maintains very efficient gas

Co.

NEGEA has been one of the national

Oct. 2nd at the age of 86.

hiss

available

gas

operated for peak shaving, effecting operating economies by

oil-gas set.

,

things maintenance of banking stability

done to help your
department do its

effective

to discon-

bank

The ability to act
and decisively in

promptly

purpose.

which

few states
authorities

E.

away

also

other states, the authority actuauy held does not permit sufficiently prompt action or suitable

used for no other penalties.

partments be

a

a

You tinue unsound practices.

to assure that the money you pay

to

cannot

is

practices

n

prjor

needed by supervisory authorities
fn
some
states.
Surprisingly

banking

J o h

—

Bradley Opens

Horace L.

where it is used for purposes never

are,

-

business from

New

natural

reducing the demand charge payable under natural gas purchase
contracts; they also serve as protection in the event of interruption
of the natural, gas supply. Cambridge Gas last year built another

Chapin is engaging in a securities
business from offices on Palmira

Horace L.

,

quin Gas Transmission

Diamond

fortunate-in; having

the'Northeastern Gas Transmission Co. and the Algon->

manufacturing facilities which can produce gas of high BTU con-'
tent which is interchangeable with natural gas.
These facilities

Genesee

and bank su-

has -been

NEGEA
from both

con¬

Center.

ROCHESTER, N. Y.

which should never be permitted
pervision does not go to building to become routine or the creature
up the department but,
instead, of political pressures,
to the general fund of the state,
Broader authority to check un-

for worthy

Street for the

47th

West

Cambridge which generate most.of the electricity for those areas;

branch office at

a

Road.

people/

our

Extra power is available when necessary

through interconnections with other utilities in the vicnity, and
from two small diesel stations.. There are two steam plants in

of
Exchange,

Stock

York

New

A

shipping berth has been dredged to allow 500-foot oil tankers to
make dock-side deliveries and an additional oil storage tank has

Oscar Gruss & Son, members
the

England utilities, the system has no

New

needed for the southeastern Massachusetts properties.

power

part, or all, of

goals.

J. E.

chartered

the

most other

Unlike

hydro capacity although some of its purchased power (about. 13%,
of the total) may have hydro-electric origin.
The largest steam
generating station, in New Bedford, provides virtually all the

been under construction.

29

,

Massachusetts.

Oscar Gruss Branch

best insure the perpetu¬

Oat Slate Backing System
—Past and Fntnie
,

that you take
home with you,
thoroughly in a

of any

of southeastern

all

and the island of Martha's Vineyard.

immense satisfaction from the
results which will stem from the
attainment

9% of the system total. The company's
with electricity Cambridge, New Bed-,

Massachusetts including Cape Cod
It also supplies gas service
in Cambridge and Somerville, Greater New Bedford, Plymouth
and an area extending from Worcester in central Massachusetts
to the Hyde Park district of Boston.
All operations are now in
ford^ and

i^

that you will de¬

I predict

them.

or

present subsidiaries serve

rive

ities

.

only about $10 million

spirit of reflection, and then un¬
dertake
to
do
something about

M. Bradley

examinations

.

spring sold its interest in two subsidiaries,
New Hampshire Electric and Kittery Electric Light. While these
companies served a fairly large area in new Hampshire and along
the southeastern edge of Maine, their gross plant investment was
The company last

to urge

me

these

holding company

heating. The company also has about a 35% equity interest in
Algonquin Gas Transmission, one of the two terminal pipelines
delivering gas to New England.
V'

deserved.

F. M.

bank

long as trust

only so

a

sidiary. Revenues,are about 58% electric, 40% gas and 2% steam-

ef¬

our

Electric Association is

with three electric subsidiaries, two gas, and one electric-gas sub¬

Trust will

this direction.

ours

them.

use

can

a

Continued from page

moment

one

England Gas & Electric Association

New England Gas &

paralleled

ation

construc¬
tive attitude toward credit because
therein rests the true vitality of
We must

7.

of

be

our

been

for

relax

to

forts in

for

of challenge

toward better bank¬

in our goal

us

public Association

be ready

must also

We

it done for them in ways

find

to

Utility Securities

examination.

cialized job as bank

the

Public

exacting and highly spe¬

an

in public rela¬ into the lives of all of our peo¬
tions. We need to broaden and in¬
ple. Bankers of the country must
tensify our efforts in telling the
continue to exercise dynamic lead¬ that of
making ever stronger that
story of banking to our people.
ership in serving the credit re¬ confidence in the American sys¬
We have a great message to con¬
quirements of new, changing, and tem of dual banking which is so
vey and can increase our oppor¬
growing lines of economic activity. essential to the welfare and econ¬
tunities to serve when more peo¬
A negative attitude could tend to
omy of the nation.
Neither the
ple know that we are vyilling and
thwart the continued growth of
heritage of the state banking sys¬
ready to serve them to their ben¬
our
country.
Bankers can and tem nor its present condition of
efit.
However, the best public re¬
must do the job, or else expect
vigorous health should permit us
lations are
large

-

and

continue

must

We

4.

are

Strength

We Have Gained

^.

Volume 180- Number 5372...The Commercial and

Financial Chronicle

(1743)

Continued

from

33

page

to

ness

340,000

Banking's Contribution
To a Dynamic Economy
4 this

death.

to

We

must

have

more

by deeds—by meeting our
full responsibilities to small busi¬

since

1949

agency

»kill

it

taking

ness,

advantage

j of

I

we

sponsibilties
Should

viding
sel

and

than

more

funds.

than

; more

in

involve

Small

advice.

We

be

must

fgressive

in providing such
[whenever it is required. *

"•Now

if

we

doubt

if

! ness

in

to

are

we

is

the

period

of

this,

try

and

it

is

quite

and

trade

would

'.handicapped without
in
:

t

♦

4

ability

our

clear

to

be
an

lend.

that

certain

indus¬

greatly

inated

banks

necessary

is

to

are

almost

nonexistent

How

essential

free

banking

to growth in the American

;
•

econ-

time,

our

That

is

our

debt

we

to

applied

to

It

formula

We

the

does

have

a

vital

statistics

economy.

The

good.
the

equitable

more

and
banks

heaviest

losses

for

reserve

bad

is

obviously imperative. In
judgment, such a reserve

should

amount

to

5%

some

of

distance to

this reserve, for
published at yearend
only 1.6% of loans.
Legislation may be needed, and it
should permit expansion at the
rate of V2% a year to the
ceiling.
the

average
1953 was

This

is

matter

a

Association
to

take

might

on

which

well

The

far

the

problem

reserves

solution,

concern¬

is
as

of a shortage of
certainly capable of
is our need for more

capital in the longer run. But to
accomplish these aims we need to

ing the births and deaths of busi¬

banking.
of

our

The

public

legislators)

often

r

•

•

t.

of

not available to

are

capital or for
Then again, the mone¬
as

authorities,
in
fashioning
policies, must have an eye '

their

to the health of the
to

other

must

banks,

the

us

that

so

well

as

considerations.

permit

expansion,
on

if

aggres¬

growing economy. Too
find people unaware that

dividends.

as

appre¬

reserves

contribute

reserves

tary

They
for

means

we

may

prime movers for
throughout the economy.
as

ther

huge expansion in

try;

our

growth

adds

enterprise system
energy and vigor that

from

banks.

our

that
of

is

all

we

of

this
life

required
is

as
on

More

the

for

sound

a

gress

role

in

methods

expansion.

of

the

great

re¬

dynamic pro¬

of America.

of

the

Anniversary with the
joined

members

of

Stock

formed

New

The

'

v

•

-

World's

women.

v

OMAHA,

.

.

this

.

the

is

than

more

shoes

produced

Edwin

and

Sh oemafyers

MEN'S SHOES

Poll Parrot

The Rand

Red Goose

the

City Club

Weather Bird

10%

in

John C. Roberts

United States.

Winthrop
Florsheim

Controlled
more

with

than
no

owning

by

13,000 stockholders,

person

WOMEN'S SHOES

organization

or

much

as

3% of the

as

Accent




63

shoe

Canadian
other

plants

plants,

neries, producing
soles,

heels,

.

.

.

including
upper

cotton

plus
7

Velvet Step

Vitality

factories, including

Trim Tred

Grace Walker

Operates

Queen Quality

Dorothy Dodd

3,400,000 shares issued.

Florsheim

6
33

Sundial Shoes for entire

tan¬

Conformal

leather,

textiles

linings, etc.

family.

Shoes—featuring custom-fitted arch for
men

for

and

Hy-Test Safety Shoes for

Int er nation at
•

'

■

Shoe

women.

and

men

1509

women.

Co mpany
•

General Offices:

Neb.—Paul

Edwin D.

Dulles,

York

*

yearly to 30,000 retail customers
of

be

Broad

McGuire

Huey Co., Patterson Building.

Mr.

-

CHILDREN'S SHOES

nearly 56,000,000 pairs of shoes

will
25

has become associated with L. A.

Recognized Brands Include:

Sells

at

Nat Toll^f sr
ner, principal of the firm, was
formerly a partner in Schwamm
& Co., in charge of the municipal
department.

*

'

Inc.

Street, New York City to special-'

Nationally Advertised & Nationally
and

men

-

Bean,

D.

Morgan

member of
Philadelphia-Baltimore Stock Ex¬ the New York Stock Exchange,
changes, just one year after the passed away Oct. 18 at the age of
firm's founding in 1903.
63.

Lar gest

Employs
36,000

'

&

ize in municipal bonds.

•

.•

Street

high.

with offices

*

A

17th

To Form in New York
Tollner

H.

De¬

firm.

Wurts,

the

for

With L. A. Huey Co.

partment of Wurts, Dulles &
Co.,
Oct. 22, 1954 celebrated his 50th
Fischer

trader

(Special to This Financial Chronicle)

PHILADELPHIA, Pa.—Emil
head

David

Tollner & Bean Inc.

50 Years With Firm
Fischer,

new

20 inches

this,

Today, more than
the banker plays a key and

critical

The

daily life
than

and

position

a

Michael

weighed 6 lbs. at birth and stood

vast

helpful guide to

means

of

Clark, born Oct. 19th to Phillip
J. Clark, Jr. and his wife Barbara.

stand

sponsibility.
ever,

grandfather

We provide the credit

essential to the

serve

J. Clark

Phillip J. Clark, manager of the
trading department for Amos C.
Sudler & Co., Denver, is the proud

motivation;

economic

business.

business
Ours

"center

of

panorama

sound

a

the

at

coun¬

free

the

comes

our

Pbillip

carry

I am one of those who
believes
in horizons unlimited for
America.
We have the
resources, the skills,
and the technical basis for a fur¬

and

Grandpa

a

we

such

P. Clark Proud

are

(and'some

should

role

to

are

on

the

healthy system of

a

the ..vital

sively to

our

continue

lead in negotiations
with appropriate authorities.

con¬

of

required for

loans.

achieve

to

go

re¬

go

to

risk-

our

banking

poor

the

incurred

debts

calculations,

not

out

two decades ago now
get the larg¬
est reserves. A more
adquate and

current

only

31%

rose

only is the recent formula

rewards

that

loans

covering only the most

doubtful

or

banks

flurry in the

a

penalizes

can

If all banks used the
years

sider

the most recent

carry

public and
policies that

the

the stockholders

inadequate; it also is inequitable.

But for a banking
system that must be dynamic, the

I
mentioned earlier, our total loans

are

effectively and
strapped whenever we

into

Not

As you

cent 20 years.

as

question,

understanding

of

government

banks

their

better

a

part

of

function

feel

run

to

are

taking

formula

new

debts

if

the

ciate

$420 million.
This
was close to 6% of our total
capi¬
tal accounts.
We clearly need a
very sizable reserve for bad debts

position

reserves

The

bad

as

enough.

in

to seek

in

of

We should have

new

All

•

substandard

total

a

not

capacity to

for bad debts.

its

ratio

ence

our

same

to

This

omy can be seen very

70%; but at the

addition

is certainly a
good step
forward from the earlier formula,
which was based on loss
experi¬

simply from
experience in
the postwar
-years.
Over this period, the gross
J national product has risen about
.

-

no

2.37% of loans.

is

pe^

business

small.

of

ume

the total reserve would amount to

these countries.
;

There is

in

1928 to 1947 for their

in

es¬

40%

fail

new

my

loans.

competitive
dynamic free

economy.
Loans to new firms
which display integrity and ca¬

pacity

of

this

free
a

risks

-

that

will

The maximum amount of the bad
debt reserve, then, is three times

or

banking

estimated

In this regard,

to

banking sys-capital if it
its full job in the

but

bad

of

were
same

records.

assets of national

the

outstanding for any consecutive
20-year period following 1927.

controlled by a government-owned central bank to see

how

which

ratio

has

dom-

are

if

grow

permits each bank to calculate the

increase

the

of the Comptroller of the
Currency carries some significant
facts.
He points out that in 1953
—hardly a difficult year—the vol¬

the

our

be accumulated.

foreign countries where

commercial

risks.

reserves

on

One

if

know, the Internal Revenue Serv¬
ice recently revised the formula

only to look at the economies of
the

:

on

is

never

need to enlarge one fur¬

we

adverse

businesses

the

more

on

ahead;

bear

risks must grow. Our banks provide the lifeblood of free enter¬

prise,

that

ther dimension in

expansion

[a continuing expansion of

must

need

carry

years

ahead—our capacity for taking on
i
>

to

our

assist all busi-

Grow

is to grow.

but

will

tem

in

first three year. Without

ex¬

is

Banks

economy

help

(Obligations to small business—in¬
deed

Even

impressive evidence
place in the scheme of

our

But

we

some

report

Must

this

things.

ag-

fulfill

to

are

of

coun¬

it

new

Economy Is to Grow
All

business,

large, peeds wise

all,

38%.;

k

pro¬

1953,

businesses

new

of

cause

by 56%, while the na¬
product has moved higher

Banks

and'our remany
instances

risks

the year

riodr234,00""withdrew from the
field, large numbers of them be¬

,

by

doing;

are

doubled.
loans. have

I

tablished.

panded
tional

our

correspondent relationships if need
rbe, and letting the nation know
>what

than
our

the

measure

confront.

43

Washington Ave., St Louis 3, Mo.

Morgan,

44

The Commercial and Financial Chronicle...

(1744)

1)Continued from first page

Thursday, October 28, 1954

[f
HI

Heads of ABA Divisions and Siafe Association Section

ABA Holds 80th
Annual Convention
Rational Bank of Newark, Ohio.

.

4*Ted F. Florence, President of the

NEW ABA OFFICIALS

when we had
of $100 billion.
A
nation
with $275
billion of
Federal debt requires far differ¬
ent
bank
management
than a
nation with only $48 billion of
Federal debt in 1940. A nation
as

late

1940,

as

annual production

B.

Republic National Bank of Dallas,
was
elected Vice-Presi¬
dent, and Sherman Drawdy, Pres¬
ident
of
the
Georgia
Railroad
Bank and Trust Co., Augusta, Ga.,
was
reelected Treasurer for the which has grown to a position of
preeminent economic and politi¬
ensuing year.
It was announced by Glen C. cal power in the world, and whose
industries pour their products in
Mellinger, Chairman of the Asso¬
ciation's organization that 17,021 a steady stream into the ports and
cities of scores of countries, re¬
banks and branches were mem¬

Texas,

the Savings

Bank Division;

dent of the Trust

E.

of the

President

State

George C. Barclay, Presi¬

Division; and Robert

Hill, President of the

Lee

State

Association Section.
B. M.

Wingfield

Joseph R. Jones

year.

qualifications required of
bankers today.
The
In
nineteen
states
and ' the sweeping changes that have oc¬
curred
in
a
single
generation,
District of Columbia, every bank
within
the nation,
and in our
-is a member of the Association;
^l-and in six states, only one bank position in the world, make im¬
is a nonmember. The states with perative banking leadership of a
stature far greater than has ever
100% membership are Alabama,
Arizona, Arkansas, Colorado, previously been demanded of us.
"Confronted with the chellenge
Delaware, Idaho, Iowa, Louisiana,
of our vastly expanded industrial
Missouri, Montana, Nevada, New
economy and of the position of
Mexico, North Carolina, Oregon,
the United States
in world af¬
Tennessee, Utah, Vermont, Wash¬
fairs, the American Bankers As¬
ington, and Wyoming.
sociation has at least four clear
The ABA has members in every
and unmistakable responsibilities.
and

States

United

the

and Mortgage Division; Ben

S. Summerwill,

31,

August

on

close of the Association

Bank

Division; Joseph R. Jones, President of

quires strong banks and strong
banking leadership.
"A knowledge of monetary and
The membership is made up of
fiscal
problems, a
fundamental
14,174 banks, 2.667 branches, and
180 members in foreign countries. understanding of the techniques
of central banking and the vision
During the past year, the Asso¬
and
determination to build the
ciation's membership increased by
148 banks and branches. Included capital structures afid expand the
services of banks are only a few
are over 98% of all the banks in
ABA

the

of

bers

Magruder Wingfield is newly elected

President of the ABA's National

over

99%

~a£ the nation's banking resources.

of

the

competent

'

.state in the Union and in Alaska,

Brazil,

Bermuda,

Canada,

Cuba,

France, French West Indies, Great
.Britain, Hawaii, Honduras, India,
Japan, Mexico, Philippine Islands,
Puerto
Rico, Salvador, Tangier,
Venezuela, and the Virgin Islands.
The New President's Accept¬
Address

ance

President

National

First

the

"(2) The responsibility courage¬
ously to resist all unsound eco¬
nomic and banking proposals and
to support

J. Livingston,

Homer

of

"(1) The responsibility of sup¬
porting every activity which will
further
strengthen
the
present
able
management
of America's
banking system.

Bank

of

sound proposals.

"(3) The responsibility to help
its members inform the American

Chicago, upon his election to the people of the services and func¬
Presidency
of
the
Association, tions of private banking in a free
the

delivered

enterprise economy.

following

"(4)
The
responsibility
for
providing thoughtful and intelli¬
gent national leadership on im¬
portant economic, monetary, and
fiscal problems.

acceptance
address:
"No thought-

vful

person

accept the
opportunity to

can

serve

"With

President

of

out
Ct"

with¬

economic welfare of the American

tude, humility,
and
responsi¬

J.

Homer

Livingston

bility.
"The Association represents ap¬
with

banks

15,000 American
$200 billion in

over

•deposits. Our banks are located at
the crossroads and the grass roots,
well

as

in

as

the

great

metro¬

politan centers of the nation. The
activities

of

banks

our

are

in¬

related
to
the
lives,
fortunes,
and
hopes
of
every
American
citizen,
whether
we

timately

safeguard his savings, finance his
Itome, grant credit to his business,
jtnanage his estate, or extend other
essential financial services to him.
But

side

banks also reach far out¬

our

the

nation

movement

of

the

across

and

finance

goods and

oceans

and

the

services

continents

of every

hemisphere. The Ameri¬
can banking system
is today the
largest and most powerful bank¬
ing system in the entire world.
Moreover, it represents private
enterprise, private ownership, and
private management operating in
a

"By an interesting paradox, the
^great growth of the American
•economy
which has been made
.possible by the banking system
lias

at

vided

a

the

same

also

time

pro¬

serious challenge to bank¬

ing leadership. A dynamic econ¬
omy producing over $360 billion
of

jaoods

demands

«ystem

and
a

than

services

far

EDITOR'S NOTE:

each

greater

was

banking

required




year

even

Full texts

of other addresses made at
the Convention, including
those,

of Secy. Humphrey;
McCloy; Benjamin
Strong; Everett Reese;
George Champion; John
McCaffrey, and Gwilym
Price appear elsewhere in

John J.

far reaching im¬

plications for banking and for our
whole economy. This report sum¬
marizes what the Commission re¬
gards
these

the most
implications.
as

important of

increasing
credit

rapidly.

this

for

chairman

of

the

In

of

of

Commission, there appeared
danger that we might
bubble
on
top of the

'a

it

until

War

of

spring

the

apparent that this ob¬

became

jective could not be achieved un¬
less the Reserve System was freed
from its commitment to peg the
prices of government bonds at par
or
higher. This problem was re¬
solved
by the so-called accord

the

most

important

business activity in
"From
an
overall

the

be real

to

supports
1954.

standpoint*

influence of the Federal

serve's

Re¬

policy is re¬
flected in the fact that today total

boom.'

easy

money

bank deposits and total bank loans

"Under these

circumstances, the
1953, the main objective of Fed¬ Reserve System was clearly justi¬
eral Reserve policy was to pre¬ fied and met its responsibility in
vent an excessive expansion
of permitting some further tighten¬
credit
in
order
to
combat the ing of credit conditions.
"It is generally conceded, how¬
danger of inflation. By early 1951,

Korean

that for a short time in the
Spring of 1953 some credit mar¬
kets became tighter than the

ever,

monetary authorities had in¬
tended.
There
is
no
evidence,

however,
that
stringency had

short-lived

this

and

investments

higher than they

actually

are

were a year ago

at this time. This is in

sharp

con¬

trast with the contraction of bank
credit

and

that

was

business

the

of

supply

money

characteristic

once

recessions.

Federal

of
Re¬

policy of the past
provided the credit to

year

has

ease

the

economic

It

serve

readjustment.

clear that this

seems

policy has been

a

constructive exercise in monetary

lasting ill ef¬ flexibility.
reached between the Federal Re¬ fects. In fact, it may have helped
The Four-Year Record
to prevent the threatened 'bubble
serve and the Treasury in March
on top of the boom.'
of that year.
"Looking at the four-year peri¬
"Indeed, the evidence indicates od as a whole, the fact stands out
Revival of Monetary Policy

The

"The accord of 1951
mark

in

monetary

was a

land¬

The

history.

that

restrictive

the

policy
more

any

early

of
than

monetary

served

1953

simply

a

as

that

monetary

restored

as

a

has

policy

been

flexible weapon for

deterrent to
encouraged

combating
economic
instability.
Also, over these four years, mone¬
of some capital tary policy has been put to the
the revival of monetary policy as expenditures from 1953 into 1954. test—both on the
upside and on th&
an important instrument for help¬
This was particularly apparent in downside of the business cycle..
ing
to
stabilize the American the case' of housing. Monetary It has demonstrated that the Fed¬
economy.
policy thereby helped not only to eral Reserve can contribute sub¬
"During 1951 and 1952, the Fed¬ temper the boom but also to cush¬ stantially to the stability of bank¬
eral
Reserve
authorities moved ion the readjustment.
ing and of the entire economy.
cautiously but steadily in the di¬
"Equally significant is the fact
The Policy of "Active Ease"
rection of restricting the expan¬
that the Reserve System has re¬
sion of credit. Official support in
"Since the spring of 1953, the gained its freedom. It is
important
inflation.

abandonment of par pegs for gov¬

renewed

It

the postponement

the
was

for

government securities market
greatly reduced. Member

rather

Economic Policy Committee
Praises Monetary

Robert E. Lee Hill

Demands

abnormal.

were

words of the former

have

the

of

outbreak

the

"From

banks

this issue.

Banks

forced

were

heavily
to

reserves

borrow

to

from the Reserve
the additional

obtain

they required.

situation has been com¬ from the standpoint of the broad
pletely reversed. Stringency has public interest that the Reservebeen replaced by ease throughout
System should not be subservient
the entire credit market. This has to the dictates of
political expedi¬
been accompanied by a spectacu¬
ency. Also, over the long run, the
lar rise in bond prices and lower
independence of the Reserve Sys¬
credit

interest rates.

;t
tem is essential to the independ¬
opinion, monetary pol¬
"During this period, the Federal ence
of
our
important contribu¬
private
banking
On the last day of the Conven¬
tion to the stability of our econo¬ Reserve System has actively pro¬ system.
tion, the ABA Economic Policy my during that period. It was not moted easy credit conditions. This
"Another significant aspect of
Commission, whose Chairman is the only stabilizing factor, of policy has unquestionably been in the four-year record is that major
Evans Woollen, Jr., Chairman of
the right direction. Flexibility of reliance has been
course; but it was one of them.
placed on the
the
Board of
One cannot say with certainty that monetary policy obviously must use of the traditional techniques
the
Fletcher
be a two-way proposition. Policy
inflation
would
have
been
re¬
of discount policy and open-mar¬
Trust Com¬
in the direction of
newed during those years if the should flex

Policy

"In

our

icy made

an

Indi¬

Federal Reserve had continued its

restraint when inflation threatens

anapolis, Ind.,

But it
can be said with certainty that if
an inflationary wave had started,

and in the direction of

pany,

support-at-par

issued the fol¬

lowing
ment

free economy.

taken place have

ernment bonds paved the way

people."

of grati¬

proximately

continued

and

for banking and for the

progress

deep

a

sense

and

constructive

Bankers Asso¬

ciation

strong

cooperation of our
15,000 banks, we greatly hope that
the coming year may be one of

American

the

continued

the

support

as

George C. Barclay

Ben S. Summerwill

state¬

apprais¬

ing the
rent

have

been

no

ade¬

threat of renewed inflation.
The

policy
been

tensively

ex-

re-

The

of

Inflation

"During
_

„f

„

that

Threat

early

of

1953

months

availability

.

the past year. Ready

of

credit

has

indebtedness.

fore¬

liqui¬

Ready availa¬

bility of mortgage money on lib¬
of

1953, there was a resurgence of
inflationary
pressures.
At
that
have time, business inventories were

Evmn* WooI,en»
changes

the

over

eral terms has been a
in

keeping

ket

operations.

there

major factor

home-building

at

a

high level, and this has been one

Reserve's
serve

agitations

over

bank

requirements. Largely

count

and

ago*

years

enlarging the Federal

powers

result of the

this

Four

considerable

was

in favor of

monetary

stalled possible pressures to
date

four
mone¬

has

usefulness

strated

would

had been retained.
Federal Reserve policy constituted
an essential safeguard against the

"During the

modeled.

"The

if the par pegs

monetary
policy:

tary

when business declines.

quate monetary defense against it

cur¬

years,

relaxation

policy in cushioning a decline in
business has been clearly demon¬

there

national

past

program.

success

has

a

of the redis¬

open-market

agitation

re¬

as

policies*

almost

com¬

pletely disappeared. Similarly, the
proven

effectiveness of the Fed¬

eral Reserve's general credit con¬
trols has reduced the pressure

the

use

for

of selective credit controls

\

Volume 180

Number 5372... The Commercial and Financial Chronicle

(1745)
such

funds which

Regulation W and Regula¬

as

tion X.

a

"We

Responsibilities of Bankers
"It

is

clear,
therefore,
that
bankers are vitally concerned
with maintaining and
strengthen¬
ing a flexible monetary policy and
helping to preserve the independ¬

tion

that

means

important

with

present

proposition
serve

that

to

Re¬

and

survive

rapidly

the

Federal

and

to

the

the

support

purchasing

free from

independ¬

his
of

are:

the

Herbert V. Prochnow, VicePresident, The First National

Arbor

Bank,

Ann

Arbor,

W.

Rochester, N. Y.
Lester
E.
Shippee,

years

President,

L.

National

Bank

are

with

and

of

support

policy

to

economy

engaged in

readjustments,

when

46

LINKED

AND

At present

sound

has

economy
measure

proud
of
American

and

American

growing

due in large
high quality of the

banks. We

our

the

which

part

Bankers

is

are

—the American Institute of Bank¬

Its

man.

Western

threat,

ica
is

who

restraints.

recognize
To

strength
the

attack

well

welfare

our

to

as

Sound

economy,

as

by

which

interest

take

more

than

made

pre¬

proved living conditions and the develop-,

hardly be exaggerated; for no nation

ment

of useful skills, do demonstrate that a 1

individually

training
of

of

associa¬

c

h

Is

o o

other

of

a

powerful link between

the good earth to the south

kets of North America
dance. Each

programs. In

the

can

management
the nation

where

their

can.

be

among

'

<

the

'

company's firm intention to

usefully to

serve

spirit of laws

of the countries wherein it operates, to
toward

a

future of

con¬

the Americas... and,

in strict accordance with the

helps the other.

seeking to better conditions in countries

urged to

make.

tinue

purchase in abun¬

of private aid

worthwhile investments North America

It is this

-

Many of our international industries are

serve

are

forged

most

produces in abundance while the good mar¬

edu¬

guaranteeing

bank
to

or

aspirations. Such mutuality of in¬

work

ever-increasing mutual

benefit.

activity centers. United Fruit

to

them

by

the

Bankers Association

and their state associations.

United

Fruit

Company

Savings Bonds
American

-

bank

tion

consume,

the exercise of initiative,
industry,
and. thrift
acquire the capital

notes

that

must

spend, and by




have

available

American

sound domestic

we

not the whole answer.

advantage of these facilities

ciation

we

bankers

effectively, all banks

mili¬

"The

we

are

of state

best qualified

of

than

are

results, "rmeasured in terms of im¬

the Americas, for

the

a

individuals

more

pro¬

program

continuity

Economy
a

Such activities
But the

private funds in Latin Amer¬

of jungle into

'*•

needs and

prosperous, and
ductive domestic economy.

"To maintain

acres

ductive farm lands.

terest has

cational and

our
people,
strong, sound,
abundantly pro¬

must maintain

.

dependent with the countries that share its

We

jointly established s
banking or instituted

moral

no

support
as

.

multi-crop

encouraged by

tions

military' strength and a
retaliatory striking power so great
an

.

portion of the

a

number

allies must maintain both de¬

prevent

establishing

.

increasing interest in banking
education
as
evidenced
by the

fensive

will

can

every

completely independent. Rather is it inter¬

the

and

we

in

in Middle America and transform¬

well-planned and efficiently administered

personnel.

out.
this

portation systems, United Fruit has been
instrumental

Hemisphere.

The need for

health, sanitation and

construction of communication and trans¬

that with proper en¬

benefit of

a

anxious to promote

ing thousands of

»

by the
development
of a
reservoir
of
specially trained and skilled bank

tack is twofold.
It seeks by de¬
ceit, lies, and treachery to infil¬
trate, debase, and corrupt from
within, while it prepares for the
day when it can attack from with¬
meet

fields of education,

economy

the great

engaged in

public works. In addition to this and the

sister republics. More, it

strong indication

to

lence of bank management

at¬

our

years

proof positive that

government loans to neighbor nations

Association,

through its educational activities

civilized

'

of privately financed aid in the local

program

couragement private capital can supplant

the

shooting

business is

production in

men and
boys. ing and the Graduate School of
however, under constant 'Banking—has taken and is
taking
in a cold war by a.relent¬
-in assuring the continued excel¬

of

Company has for many

U. S. investments in Latin

except Canada. Here is

been

to the

management of

de¬

MUTUAL NEEDS

larger than in any other part of the world

"The

which does hot react

BY

America, totaling six billions of dollars, are

.

Banking Education

of

country's

nobler-impulses and

EFFORT

nec¬

adjustments.

nation

our

a

BY

econ¬

inevitable casualty

its

enemy

earn

page

a

American

produce

on

generally

,

we

Continued

flexible

a

and

are,

serve

Uniform Commercial Code whick

we express our gratitude

for the assistance which kas been

credit

strength of our banking
system and its contribution to this

grateful that

now

monetary

than the continuance of mal¬

omy

At the closing session of the
Convention the following resolu¬
tions were adopted:

tary

a

proposed

magic formula for

no

wartime

a

derly

Resolutions Adopted

men

the

on

life.

essary, are far better for our

Duluth, Duluth, Minn.

that it

report

some

nature and character of a
large
part of domestic production. Or¬

Bank
and
Trust
Company,
Richmond, Va.
*
*
Stuard Wilson, President, State
National Bank, Texarkana, Ark.
Willis D.Wyard, President, First

American

are

readjustments
are
during a period when
major changes take place in the

ers

our

During the Convention!,

unavoidable

Vice-President, State-Plant¬

"To

as

recom¬

special subcommittee made

100-page

and the citizens of

press,

be

in

"Economic

Smith, Chairman of

N.A., Salt Lake City, Utah.
Wilkinson, Jr., Execu¬

cencies

city,

the

not

.

peacetime economy.

Board, First Security Bank of

the

this

are

To the ho¬

"enactment ©F

a
policy in the past two
during a period of transition

from

J. Harvie

to

tels, the

should

mended."

success

that

commend the actions taken under

Hartford, Conn.

Charles

our

such

Hartford-Connecticut Trust Com¬

less

outstanding

sincerely appreciated.

whole

a

conven¬

reported

heritages of

economic

of

monetary

Remington, President,

Lincoln Rochester Trust
Company,

attack

an

making this

have

of the dol¬

These

precious

use

firm

Mich.

of

tion

in

bankers

assisting in making credit readily
available during periods of eco¬
nomic
readjustment.
We
reaf¬

Chicago, Chicago, 111.
Rudolph E. Reichert, President,

lists

the Uniform Commercial Code

Jersey

tion and speculative
excesses, and

Bank of

We

tion

New

prosperous
economy.
A careful,
continuing, and intelligent mone¬
tary policy is, however, of great
importance in helping to stabilize
the
economy
by providing re¬
straints during periods of infla¬

Mervin
B.
France, President,
Society for Savings in The City of
Cleveland, Cleveland, Ohio.

war

the

Legisla¬

by Government as a sub¬
stitute for production by the peo¬
ple of a nation as a basis for a

N. Y.

"We

of

the

State

on

controls

Company, Indianapolis, Ind.

is not

special subcommittee

confiscatory taxation by

"There is
the

John R. Evans,
President, First
National Bank, Poughkeepsie,

and

be

A

ABA Committee

Monetary Policy

Chairman of the Board, Fletcher

tive

reduction

power

Government.

American

Eyans Woollen, Jr., (Chairman)

Utah

work

not

ac¬

produce, by al¬
lowing the retention by the indi¬

>

icy Commission

the

could

Code-

vidual of most of the proceeds of
his
mental
and
physical labor,

Members of the Economic Pol¬

pany,

Association

we

Commercial

Disapproved

budget may be
figure that will

a

further

a

comprehensive

The

them

Uniform

lar, and preserve for the Amer¬
ican people the traditional Amer¬
ican incentive to

be

tary policy."

John

at

the

extend

of

all

I&*>

visit

"In this way we can maintain
sound government
credit, stabilize

Sound

of the Federal Reserve
Sys¬
and the
flexibility of mone¬

Ann

year.

of

as

balance

our
sincere
appreciation for his
leadership during the

splendid

To

our

a program for a
system¬
atic reduction of the public debt.

truly effective
without the enlightened support
of the public; and this, in
turn,
requires the enlightened support
of the banking
community. It is
an
obligation of bankers every¬

,

ac¬

s/taff.

given by them during
Atlantic City."

knowledge our appreciation. \
"The help and assistance which

rendered

"To Everett D. Reese, our Pres¬

action

permit

monetary management cannot

-

sup¬

on
successfully and effi¬
ciently without the work of the
Council, the various commissions,
the committes, and the other offi¬
cers including the members of the

;

"The conclusion is clear.

Trust

continued

carried

taxes and

trations.

tem

ciation pledges its

ex¬

Asso¬

we

in

the attitude of all future Adminis¬

where

Bankers

ident,

that

System should not be sub¬

ordinate to the Treasury, but there
is no assurance that this will be

ence

have

American

thanks

as

the

Federal

"The

along these lines
possible without endangering our national security
and other essential
programs, so

responsibilities

the

thrift.

port for this important program.

further

monetary policy.
Administration
in

Washington is committed

which

steps

individuals to buy and hold

more
Savings Bonds. This lead¬
ership has contributed to the goal
of sound money and the ideal of

and

tivity which can better be carried
on by its citizens under our Amer¬
ican enterprise system.
We urge

bankers

as

the

leadership as "au¬
issuing agents" in urging

the Government from fields of

respect to

The

we

sound

been taken to reduce Federal

from the standpoint of the welfare
of the economy as a whole.

"This

remain

active

penditures, to eliminate waste, to
improve
efficiency
in
govern¬
mental activities, and to withdraw

problems both from the standpoint
of the welfare of
banking and also

have

more

our

healthy if its Government contin¬
ually lives beyond its means. We

Federal Reserve Sys¬
tem. We are concerned with these

♦

cannot

commend

of the

ence

reaffirm

their

thorized

strong con¬
viction that the economy of a na¬
-

\

are indispensable to
growing economy.

vital and

45

and

efforts
sale

Bankers

with

of

General Offices: 80 Federal Street, Boston 10

Asso¬

gratification

in

the

United

COLOMBIA

promo¬

States

Savings Bonds are being more
widely recognized and appreci¬
ated by the general public.

EL

,

,

"We

commend

the

banks

for

.

•

SALVADOR

COSTA
•

RICA

•

GUATEMALA:

CUBA
v

•

DOMINICAN

HONDURAS

•

REPUBLIC

NICARAGUA

ECUADOR

•
•

PANAMA

>4*

«.

The Commercial and Financial Chronicle..

(1746)

#6

Continued from page

long been active in Chi¬
civic affairs and is at pres¬

cago

ent

Trustee

a

The Art Institute of
rector

to

existing

replace

laws in the various states relating

negotiable instruments, collec¬

to

tions, and other commercial trans¬
actions.

The

adopted

in

is

and

several

in

consideration

under

other

has been

Code

new

Pennsylvania

has been the
subject of intensive study by le¬
gal committees of bankers asso¬
states,

and

ciations and other trade groups.

its

In

general conclusion, the
ABA special subcommittee recom¬
mended that "the greatest benefits
from
the scholarship and work
has gone into the Code can, -i
believe, be best obtained by
amending the existing uniform
statutes to incorporate the desir¬
able changes and new rules pro¬

the

banking

both

and

the

public.

Article

this Article should not be

its

in

enactment

present

r-

That

comm'nded for

form either as

uniform

legislation

covered

interests
this

of

cause

and

and

need,

secu¬

nonpossessory

tangible

in

Be¬

property.

because

it

is

ap¬

Article 9 has much merit,
your Committee plans to continue its study
of
this subject especially
in the light of
the results of studies still being conducted
that

parent

in

and

California

and

submit

to

Article

the

Article

before

is

the

and

detailed

elsewhere

report on
future.

or

for

should

study

part

any

of

enactment

be

the

in

any

made

of

which woufd be repealed
or
modified
and appropriate amendments
of the latter should be prepared.
existing

statutes

Members of the

F.

special subcom¬

Chairman

include:

mittee

George

Director,
Common¬
"We- have concluded that the wealth
Trust
Company,
Pitts¬
interrelation between the various
burgh,- Pa.; John A. Alexander,
fields Of commercial law repre¬ Counsel,
Indiana Bankers Asso¬
sented by the various Articles of ciation, Indianapolis, Ind.; Robert
the Code is not such as to require H. Brome, Resident Counsel,
Trust
inclusion of the law relating to Bankers
Company,
New
each of these fields into one stat¬
York, N. Y.; Ben C. Corlett, Vice-'
ute.
In addition, it seems to us
President, American Trust Com¬
that the effort to do so will in¬
pany,
San Srancisco, California;
evitably tend to destroy rather R. S. Douglas, Counsel, The Cleve¬
than promote uniformity in the
land Trust Company, Cleveland,
law, because it replaces most of Ohio; Sherman Hazeltine, Chair¬
the established terminology of the man, ABA Committee on State
law with new phases and clauses,
Legislation, and President, The
and
many
new
concepts, thus Bank of Arizona, Prescott, Ariz.;
Edward
L a n d e 1 s,
necessitating a long period of un¬
Legislative
certainty and (especially with the Counsel, California Bankers As¬
provisions of Article 1) assuring sociation, San Francisco, Calif.;
conflicting interpretation and ap¬ Thomas B. Paton, Assistant Gen¬
plication, and also because various eral Counsel, American Bankers
nonuniform amendments in vari¬
Association, New York, N. Y.,
ous states seem inevitable."
Secretary; and John Rene Vi,ncens, New York, N. .Y, Assistant
Recommendations of the com¬
mittee with regard to separate ar-4" Secretary.
Taylor,

proposed Code were
in

Backgrounds

the report as fol¬

ABA

lows:
these

General

1.

provisions

Most

Provisions.

should not

of

Article
actions
Law

2.

Sales.

Sales,

conclusions

statute

Article

the

than

3.

the

of

as

Sales

separate

a

part

a

any

except

2,

Uniform

form

of

Uni¬

a

Code.

not

either

That this

Paper.

recommended

be

^

3

as

Negotiable
the

and

a

Instruments

substance

of

the- various

visions

discussed

provided

port

Part

the

the

Article

of

1

in-

to

worthwhile

other

in

Law

body

pro¬

this

of

established

re¬

terminology

and concepts of that statute are

not other¬

varied.

wise

Article
That

4.

this

mended

Bank

approval

lection

the

the

Improvements

in

approach

and

bank

col¬

approved
law

of

would
uni¬

inclusion

the

recom¬

part

a

we

separate

a

the

ABA

with

as

but

of

following

of

code

be

not

either

separately,

statute

substance

should

enactment
or

recommend
form

Deposits and Collections.

Article

for

Code

the

and

the

of

few

practice

re¬

lating to bank collections contained in that
part of Article 4. We would also recommend
approval of a group of model statutes cover¬
ing,

with

vision,
bank

appropriate

most

the

and

susbtantial

ground

provisions

Article

4)

of

Ar¬

Documentary Letters of Credit.
Article

mended for
Code

should

enactment

or

either

separately,

be

not

part of
would not

as

and

recom¬

a

we

recommend

preparation of a separate uni¬
statute on this subject.

Article

6.

Bulk

That this Ar¬
ticle, with appropriate amendments to the
sections discussed in this report, be recom¬
mended
form

for

Transfers.

enactment

as

separate

a

Lading,

I.

Warehouse

and

this

mended

Code

but

that

Other

Article

for

the

a

such

Bills

Documents

should

enactment

or

Receipts,

separate

changes

of

Warehouse
of

Receipts
Lading Act.

Article

this

8.

Article

part of
statute;

be

may

as

recommend

a

and

consid¬

proposed
Unfiorm

the

Uniform

not

Securities.
be

That

recommended

part of the Code.

approval

of

We

uniform

a

revision of the Uniform Stock Transfer Act
to include the more

important

this Article;
proposed as
with
in

but
a

we

believe

separate

appropriate amendments

this

report,

it

would

benefits

that

uniform
be

as

even

if

discussed

desiraole-




of

statute,
irom

First

stitution./

Mr.

1920,

in

Bank

became

Studies

from

1934

Subcommittee

Committee
tion

tional
in

to

Defense

1941-42

Committee in

Small

Business

from

Credit

1944

Policy

1950 to 1954,
to

term

Committee

National

Loans
sion

Legisla¬
the Na¬

1941;

the

and

the

1937;

Loans

War

1942-43; the
Commisr;

Credit

to 1950; apd the
Commission from

being chairman from

1954.

He

served

a

three-

the ABA's Executive

on

from

1947

term

elected

and

1947-48.

in

ABA

He

Vice-President

Annual Convention

at the 80th

a

the Administra¬

on

Committee

1950

to

J.

Livingston,

the

President of the American Bank¬

Association, is President and

Director

is

He

The

of

Bank of

National

Chicago, Chicago, Illinois.
native

a

of

that

city, and

from

graduated

was

First

the

John

Marshall Law School,

Chicago, in

1924,

degree and

with

awarded

was

L.L.B.

an

honorary L.L.D.
Washington
and
Jefferson
College,
Washington,
Pennsylvania, in 1952.
Mr.
Livingston
entered
the
banking business with The First
degree

an

from

National Bank of

Chicago in 1922.
In 1930, he became an Assistant
Attorney; in 1934, Attorney; in
1944, counsel; and in 1945, vicePresident.
in

He became

Director

a

President in

1948 and

1950.

in

Mr.

Livingston

was

a

Fed¬

on

Legislation and Chairman of

the Subcommittee
from

the

1940

to

Credit

from

1949

President

on

1950,
Policy

to

member

of

Commission

1953,
the

of

Bankruptcy

a

and

Vice-

Association

City,

New

Jersey,

served

as

Oct.

Presi¬

dent of Texas Bankers Association
in

1936

and

President

was

of

the

Dallas Clearing House Association
for three terms.
rector

the

of

He

is

past Di¬

a

Association

City Bankers.
Outside the banking

of

Re¬

serve

Mr.

is

Florence

a

business,

Director

in

a

number of

firms, including Austin
Company, Baker Hotel,
Dallas Power & Light Company,
Dallas
Railway
and
Terminal
Company, Lone Star Steel Com¬
Missouri

Railroad

Kansas

-

-

Texas

Company of Texas, and

the Wyatt Metal and Boiler Works.

He is President of the Cosmopoli¬
Hotel Company.

tan

is a Director of the Camp
Girls, Inc.; Civic Federation
of Dallas; Dallas Citizens Coun¬
cil;
Dallas •" Community
Chest;
He

in

Dallas

.

Opera Association;
Dallas Symphony Orchestra; the
Pilot
Institute
for
Deaf; Texas
Oil

&

Gas

of

America,

served

later

and

Cashier,

and

Council

and

1949

from

to

ing

State

Committee

Departments

the

1950-51.

He

State

Committee from 1951
to 1953, Georgia State Chairman
of the
Treasury Savings Bonds
Committee from 1951 to 1953, and

Legislation

a

Legislative

as

a

member

Board;

a

the

Board

of

of

of

the

the Salvation

Illinois

Bankers

Association

in

and

Administration

1944.-45.

Mr.

the

He

is

a

St. Paul Hospital Advisory

the

Committee

Council

of

Texas).

member of the Advisory
the

Dallas

Army;

Executive

a

Branch

of

member of

Committee

of

Southern

Liyingston

executive

is

Chairman of

committee

and

Methodist University; a
Trustee and Treasurer of the
Southwestern

Chairman of the stock trustees of

tion;

the

in

1952-53.

elected ABA Treasurer at

was

meeting of the Association's Ex¬

ecutive
of

the

Council

Railroad;

a

Director

of the Continental
pany

Casualty Com¬
and the Continental Assur¬

ance Company, President of the
National Safe Deposit Company;
and Director of

Company.

Sears, Roebuck &

a

Medical

Founda¬

Director and Treasurer of

23,

for

second

a

year

time

Research
Dallas

National

Foundation; life¬
County chairman of
Foundation

Jer¬

Georgia
Railroad and
Banking
Company; and a Director of North
Augusta Banking Company. Au¬
gusta Lumber Company, Castleberry's Food Company, Cato
Stores, Inc., Professional Building,
Inc., and Claussen's Bakerv, Inc.
He is married, has two children,
!and makes his home in Augusta.
Presidents

Division

The officers elected for the four

divisions

tion

the

the

Associa¬

State

of

and

Section

American

B.

Magruder Wing-

National
Houston,

.field,

-Bank

•'

for

In¬

French, A.
to

Allyn

R.

Ben

S.

the

Trust

S./Hinckley,

Hinckley, Newark, N'. X.

Members

the

-of

Committee

Nominating
Walter

were:

F.

Blaine,

Goldman, Sachs & Co.,
Chairman; Raymond D. Stifzer,
Equitable Securities Corporation;
Paul

Devlin,

Blyth & Co., Inc.;
Marks, Laurence M.
Co.; and Stanton M,
Weissenborn, Parker & Weissen-

Laurence
Marks

M.

&

born, Inc., Newark, N. J.

Sonnenberg Offers
Maine Mining Shares
is

Sonnenberg & Co., Linden, N. J.,
offering publicly 745,000 shares

of

common

Maine

Corp.

(par

10 cents)
Exploration

&

as

a

speculation.

^

The net proceeds are to be used
to exercise certain

options, to pay
exploratory drilling and de¬
velopment expenses and for new
equipment.
Maine
Mining & Exoloration
for

Corp.

organized in Maine

was

on

Nov.

6, 1953 to hold, explore and
develop as assignee of leases, cer¬
tain properties irr

Maine in Wash¬
Hancock
and
Franklin
Counties
(now
covering
68,744
acres of property).
Subsequently,

ington,

company
acres

acquired

leases

on

of property in Masham

.Township, Gatineau District, Que*bec, Canada, with potential value
uranium claims.

as

r

*.

*

.

•.

-

Holton, Hull & Co.

(Special to The Financial Chronicle)

LOS

Iowa

Company,

/

ANGELES, Calif.—Robert

J. Henderson and

become

Holton,

Summerwill,
Board,

stock

Mining

at 40 cents per share

have

State Bank Division

of

succeed

Henderson, Tavlor Join

Angeles, Calif.

President:

Edward

succeed

to

Adams &

v

Chairman

Inc.

Gammons, Bradley, Gam¬
Co., Inc.; W. Enos Wetzel*
E. Wetzel & Co., Trenton, N.J*

W.

r

Jones,
Vice-President, Security-First Na¬
tional Bank of Los Angeles, Los
Joseph

Co.,

&

&

mons

Savings and Mortgage Division
President:

Bas¬

Paul A.

1,045
President:

-

C.

the

National Bank Division

t

K.

Walker & Co.; John S.

of

Drawdy is President of the

New

-

Ralph C.
Sheets, Blyth & Co., Inc. to suc¬
ceed George H. Walker, Jr., G^ K,

at

20, 1954.

the Endowment Committee of the

the

held

vention in Atlantic City, New

Mr.

succeed

sett:

was

Executive Council

Oct.

to

Bassett

Earl

Annual

the close of the 80th Annual Con¬

sey,

K.

Earl

reelected
at the meeting

he

1953;

State Fair of Texas; Trustee,
'State Bank and Trust
Treasurer, member of the Execu¬ -Iowa City, Iowa. tive Committee, and member of

Texas

t u s,
W.
C.
Langley & Co.

Washington, D. C.,

in

Sept.
the

79th

Association's

Convention

:

.

the close

held at

the

Monon

and

Commerce

Commission

Marine

a

the

of

member

Saxton

Commi tee:

from

Division

Bank

tee of

1954.

20,

served

(North

of

1953 and of the Division's

1950 to

-

Trustee of the American Heritage

Annual

of

Committee

Executive

vt he

in

member

a

was

of.

Division

Bank

City, New

He

^Council

80th

1952,

member of the State Bank¬

a

the

Legis¬

of the Execu¬

and

Council

tive

Federal

the

of

member

lative

A.

Co., Inc.

Edgar J. Lof-

in

tion Committee from 1947 to 1949,
a

EL

District

the

of the Organization
1946-47, a regional
Vice-President of the Organiza¬

Bas-

W/

succeecf
Stolle,

G.
&

Georgia

Jersey, t Oct.

elected President

at

to

he

of

K.

Carl

state Vice President

was

Committee

Ten

the

was

of

o v e mors:

sett,

1947.

President

as

Convention in Atlantic

He

ABA

the

Board

G

first

Associa¬ (Bankers Association follow:

Circle

Dealers.

following

slate:
r

After

to

Vice-President,
t,of Commerce of
Foundation; Chairman and Trus¬ .Houston, Texas.

1953-54.
of

the

-

.

Bankers Association. In
American
Bankers
Associa¬

for

tion; U. S. Cerebral Palsy Associ¬
ation for Dallas County: and Boy
Scouts

Securities

of

submitted

has

Drawdy has long been ac¬

tion, he

Grand

Midcontinent

Comptroller.

President in

elected

the

of

Bridge

pany,

sociation
Inc.

the

for

Nominating Committee of
the National As¬

District No, 13 of

Georgia

He

Florence

Fire

In the American Bankers Asso¬

ciation,

member of the Committee

Mr.

new

Fed¬

Sixth

the

District

Cashier

and

Banking

on

Federal

on

from* 1937

Receives Nominations
The

tive in bankers' association affairs

Taxation of the

on

NASD District No. 13

Hutton & Co.,

Mr.

was a mem¬

to

House

ing

hosts to the Convention.

Reserve Bank of Atlanta.

Vice-President

In the American Bankers Asso-

ber of the Committee

na-.

EaiT

was

.

,

the

of

Chicago Clear¬
Association will be,

Mr.

and

Guar¬

1929.

ciation, Mr. Florence

meeting

1955

tion's bankers, the

being advanced to Vice-President

Florence

anty Bank and Trust Company,
Dallas, the forerunner of the Re¬
public National Bank.
He was
elected President of the Republic
National

the

At

President and

*

-

Vice-President of the

1951.'

to be held in Chicago was in

Drawdy became associated
with the Georgia Railroad Bank
& Trust Company in 1936 as Vice-

V,

of that in¬

,

Reserve

Federal

1912,. In 1915, he

President

in

Examiner

eral

period as
Bank,

State

20, 1954.

Homer

the

Investment
should

for enactment
would

Act

Title.
recom¬

a

as

uniform

as

of

be

not

either

ered necessary should be made
by
uniform
amendments
to
the

Bills

uni¬

statute-.

Article
That

elected

one-year

new

short

a

the

Alto, Texas, in

In

The
be,

will

Sept. 25-28. 1955.
The last Convention of the ABA.

Examiner and continued in

an

nior

Ratcliffe, Texas, he became ViqePresident of the Alto State Bank,

Bankers Association follow:

eral

P.

this

form

and
of

Atlantic

re¬

covered by the

(Part

4.

That

the

of

deposit

ticle

stitution
Cashier

advancing to Cashier
1926 he joined the

In

position for seven years. In
1933 he joined the Federal De¬
posit Insurance Corporation, and
shortly thereafter he became Se¬

few months with that in¬

a

Convention

the

for

that

joined the American
Bank, Dallas, Texas.

Exchange

there.

dates

clerk in the Bank of

a

1924.-'

as

that bank

1911

ranking officers of the American

for

part of the Code or
separately, but we would recommend ap¬
proval of a uniform revision of the Uni¬
elude

in

as

Groveland,

ing business in 1907 with the First
Bank of Rusk/ He rose

first

Bankers Association

Florida State Banking Department

National

Cashier of

Bank

schools

attended

and

1921

in

Mr. Florence entered the bank¬

to Assistant

President

is

Georgia Railroad

He entered the banking business

City, but moved with
his parents to
Rusk, Texas, in
infancy.
<C >

was

Thumbnail sketches of the

ers

Commercial

should

-

Article
the

of

in

rather

enactment

form

in

York

;

trans¬

not

concerning
be

banking

questions in
expressed

have

we

Commercial

Article

Since

involve

revision

any

should

form

New

tive

President

seldom

of

that

Act

ida,

Top

HOMER J. LIVINGSTON

Association

&
Trust Company, Augusta, Georgia.
He wase born in Groveland, Flor¬
the

Republic National Bank of Dallas,
Dallas, Texas.
He was born in

year

New

included in

be

statute.

any

of

of

Fred F. Florence, the new ABA
Vice-President is President of the

Council

Article

Sherman Drawdy, who was re¬
elected Treasurer of the American
Bankers

was

the

of

Convention

1955

the

will be held in Chicago, 111.

1951

Officers

that

American

Treasurer

;

announced

the Convention, it was

Vice-President

After

Chicago

adjournment of

Before the final

SHERMAN DRAYVDY

FRED F. FLORENCE

and

v

Next Convention in

Dallas.

in

Hillj

Missouri
Columbia,

one

Illinois.

distant

too

Code

considered

careful

state

not

Effective Datg and Repealer.

10.

That

York

New
more

a

the

in

married, has

Lee

Manager.,

Association,

Bankers

daughter, and makes

one

home

is married, has
and lives in River Forest,

fields

general

two

and

his

Executive

E.

Robert

President:

Missouri.

Mr. Florence is
son

a

namely accounts re¬

Article 9,

by

ceivable financing

rity

in

Com¬

of

Chamber

merce.

'

Code

summarized

Chicago; Di¬
Chicago

Treasurer,

Livingston

part of the Code or as a separate uniform
statute; but that there is great need for

we

ticles of the

Mr.

one son,

Transactions.

Secured

9.

that

posed in the Code but still retain¬
ing most of the established ter¬
minology of the law.

of

standpoint

investing

and

of the

of the In¬

Section

State Association

member

a

Trustees

Council

States

ternational

Boys Club, Inc.; and Trustee of
the Chicago Child Care Society
and of the Farm Foundation.

Annual Convention
intended

the

of

Paralysis; and
Board of

the

of

United

University
Chicago; Trustee and Treasurer,

of

ABA Holds 80th
is

fantile

He has

45

Thursday, October 28, 1954

.

Hull

Craig H. Taylor

associated

-

&

Co.,

210

with

West

Seventh
Los

Street, members of the
Angeles Stock Exchange. Mr.

Henderson

formerly

was

with

Neary, Purcell & Co. and Frapcis
I. du Pont & Co. and in the past

Division

was

an

officer

of

Edward

J.

Barclay, Bourbeau & Co. Mr. Taylor was
First
California
Vice-President, City Bank Farm- with
Company
President:
nn

4-

George

C.

"NT

V

and

Hannaford

&

Talbot.

Volume

Number 5372... The Commercial and Financial Chronicle

180

(1747)

Merrill

that

Lynch Heads

nationwide

which

underwriting

issue, which
Involved

pacesetter.

be

may

Cortland

Equipment Lessors, Inc.
This company is a wholly-owned
subsidiary of Safeway Stores, Inc.
which pioneered the development
of the sale-and-lease-back financ¬

ing.

Some

organized

in

1945,

Lessors,
store,

owns

warehouse, and office fixtures and
equipment, and bakery, creamery,
coffee

other

and

manufacturing

equipment, with net book value
of $87,700,000 after depreciation.
These

items

Safeway

leased

are

Stores,

nationwide

a

to

which

chain

of

parent

operates

over

food

2,000
stores in 24 states, the Dis¬

trict

of

ern

Columbia

provinces

lease

west¬

The

arrangement is in line with

Safeway's
of

five

Canada.

and

of

established

philosophy

separating various parts of its
business and of reducing

grocery
the

amount

fixed

of

capital

tied

up

in

assets!

The

debentures

new

replace

similar

a

principally
financing

type

handled

arrangement

loans
shorter-term
by

through banks on a
basis.
Over
two-thirds
money will
bank loans

be

used

of

to

r

the

off

pay

held

now

by major
York, Chicago and California

New

banks.

The

remainder

advances

pay

will

pre¬

from

speculative

veloped

in

common

week,
the

New

stock

the

might

in

President,

have

formation

favorable

amount

The

the

of

in¬

had

as

been

cautious

acterized

question it

a

was

estate

of

the

is

track

in

new

this

time.

This

the

east,

maintenance
release
where
also

at

costs

rail

used

been

since

ever

be necessary

they

cash

the

is

traffic

railroad

will
use

dividend
the

also

Shops have

the

least.

has

to

needs

be

is

predicted

its

agement

long

a

as

backed

are

credit of Cortland

the

statements

way
will

on

there

all

always be sufficient to

Cortland's

operating
depreciation,

includingi
and

of

income

$140,000

taxes

plus

the

large

degree of

obsolescence

million

in

J.

ANGELES,

Bastion

have

and

J&L

are

become

Standard

fornia,
Mr.

Investment Co.

210

West

Bastion

Turner

affiliated

ended

Seventh

The

in

000

A

Nov.

on

the

debentures

of

1

after giving effect to a change in accounting

depreciation and amortization of

CHICAGO, 111.
Coughlin

will

Frank J.

—

become

a

La

Salle

Street, members

changes

on

Nov. 4th.

large amounts of the Corporations amortization of

very

of

each

will-

made effective

January 1 of this

year to

take

as an

of

will

have

depreciation

there may

was

1955

through

Both

1964

Third Quarter ended

may

in

operating

from

expenses
penses

Open

Second Uptown Branch

needs

it

area,

in

the

second

Provision

Grand

.

for

■

of

ex¬

has

fifth

a

are

Avenue,

30

at 14 Wall

midtown

other

as

office

well

cities

as

from

904,000
income

and

Harris

&

as

an

Partners

7,203,000

22,718,000

21,182,000

1,096,000

2,742,000

2,742,000

3,707,000

8,408,000

9,313,000

9,313,000

25,966,000

—

>'
-

1,210,000

1,210,000

2,349,000

—

$

4,387,000

—

15,122,000
$

2,076,000*

$.65

$.28

,

^Effective January 1, 1954, depreciation hat
been.provided in the book; of account of the

to

on

the total cost of all aisett covered by Certificates of Necessity by the de¬

regular rates of depreciation in lieu of amortization and

still be deducted for Federal income tax
purposes.

which

are

thus

as

formerly provided will

The difference between the income

payable and those which would be payable

on

taxes

the current income shown in

the above statement has been deducted from the current

■

6,648,000

22,940,000

$

44,406,000

8,807,000

$

.

16,534,000

—•

—

50,543,000

69,084,000

$ 10,397,000*

$ 25,170,000

$1.36

....

of
u>

taxes. On the

tion and

$1.50

$2.49

$3.88

1954,
have

depletion provided in the third quarter and the nine months ended September 30,

$4,660,000 and $12,785,000 respectively, less than the amounts which would

are

been

Similarly
has been

on

provided for depreciation, depletion and amortization

the

new

basis

an

additional

reserve

on

as

a

reserve to

provide for future income

new

basis deprecia¬

the former basis.

for Federal income taxes in future

yeors

provided in the amounts of $2,349,000 in the third quarter and $6,648,000 in

the nine months ended

September 30, 1954.

(

year's income in the statement and

will be carried

affiliate of
Limited

our

depreciation formerly provided. Amortization and depreciation

Broadway,




18,229,000

$488,360,000

offices

coast

Toronto.

$ 94,254,000

15,770,000

:.~

excess

ing at end of each period (1954—6,497,454
shares; 1953—6,200,654 shares)

604

Harris & Partners Limited, Inc.
will engage in an investment busi¬

City,

60,940,000

25,703,000

Practice

.•

Earned per share of common stock outstand¬

Corporation

York

$ 60,940,000

6,233,000

904,000

—

Net Income

Harris & Partners In N. Y."

New

$ 31,747,000

5,348,000

Accounting

emergency

■

clining balance method at twice

from offices at 160

$370,068,000

17,198,000

12,811,000

coast.

ness

$370,068,000

8,348,000

Future years

Street,
at

$160,504,000

17,198,000

$

-

Federal

in

(See Footnote)

$108,702,000

depreciation and depletion

amortization

Change

1953, for
Comparative
Purposes
(See Footnote)

in

Comparative
Purposes
(See Footnote)

Current year

skyscraper.
brokerage company, whose

main offices
now

After

%

new

The

Practice
Followed

1953, for

profits taxes—

by
Alan V. Tishman, Vice-President
of Tishman Realty & Construction
Co., inc., builder and operator of
the

for

Interest charges

reported

was

incident thereto, except those

facilities

branch to meet exoand-

business

Central

of
Accounting

all

shown separately below

Provision

Co., nation¬
wide investment
brokerage firm,
has leased large office
space at

ing

in

$108,702,000

revenues

operations after deducting

Less—Provision for

&

its

On Basis

7,660,000

Accounting
Practice

Sales and

for

Change

(See Footnote)

interest.

Avenue

of

Followed
After

Income

Park

1953
s

Practice

plus accrued

99

1954

Accounting

range

midtown

both the

.A

On Basis

$3.^00,000

to 1C0%, and for the
series B debentures will be
104%

Upham

on

A
1953
^

from 103%%

Harris,

facilities formerly
forth in order that

Nine Months ended
September 30

A.

prior to maturity at
the company's option, in whole or,
part. Initial redemption prices for
the series A debentures will

to

set

be ample opportunity for comparing the results

September 30

1954

be redeemed

Harris, Upham

are

/"

1965 through

series

of emergency

A

benefit

1968.
of debentures

amortization

1955

year

and

and

former and present methods of
accounting.-

a

each year

purposes, in respect of the cost of assets covered
by
Necessity, depreciation by the declining balance method
Corporation's regular rates of depreciation. This is in lieu of

provided for these assets. The six columns

emergency,

income deduction.

sinking fund at par to ret re
$1,000,000 debentures each year

in

the

$5,000,-

the

periods of 1953

statement

at twice the

practice with respect to

of the

New York and Midwest Stock Ex¬

Pittsburgh

same

partner

in Rodman & Renshaw, 209 South

Certificates of

facilities. Because of the

emergency

through 1964, with interest rang¬
ing from 3% to 4%. The series B
debentures

Corporation's income

facilities in relation to its property account and its income, a decision

amount

for

with

Rodman & Renshaw Add?

And.Subsidiary Companies

for the third quarter and the first nine months of 1954, both before and

interest.

series

•;

Street.

formerly

was

Cali¬

Walston & Co.

September. While this

September 30, 1954, compared with the

The statement of income set forth below shows the

being offered at 100%;

mature

CORPOR AT ION—

with

of

Consolidated Statement of Income for the quarter and for the nine months

per year.

plus accrued
.

v

STEEL

tures, Series A and $25,000,000 of
414%
sinking fund debentures,
series B, due Nov. 1, 1969, both of
which

STEEL

flat fee;

The $75,000,0P0 debentures con¬
sist of $50,000,000 Serial Deben¬

still

Calif.—Harry

Henry C.

cover

interest
a

man¬

is

(Special to The Financial Chronicle)

LOS

by

expenses

as

new

2 With Standard In v. Co*

which

60-year lease. Safe-,
the rental payments

agrees

will

to hoe.

row

in turn receives rentals from Safe¬
way under a

say

own,

by

management, but based

interests

of economy and even when traffic

the

to

Central

into

come

most

that

dim

Perhaps

been

the

of

pushed,
feel

outlook

eventually

else¬

to
op¬

modernization

analysts

and

quar¬

won

the foreseeable

over

came

if

company

con¬

final

1954, and considering

the substantial

quite a recovers the
management feels
surprise, as Mr. Young had pre¬ that
the
equipment repairs may be
proxy
fight,
Mr.
Perlman
viously given disposal of this non- concentrated in fewer
shops than
emphasized the magnitude of the
rail property number one priority
formerly. Passenger losses have
job
confronting 1 the
road
and in his
plans for rehabilitating the been
warned against the
pared significantly by line
possibility of credit of Central. It was also a
and
train abandonments
of
the
any miracles. This factor had, of
disappointing
announcement
to
past year or so but the deficit is
course, also been stressed by the
those who have felt that the pro¬
still
substantial.
To
cut
this
previous management, which had
ceeds could profitably be used for
further the road has joined with
been given less than two
years a start on the reduction
of Cen¬
a number of others to explore the
to work on the
problem, and has tral's top-heavy debt structure.
possibility of the development of
long been recognized by most The
management now takes the
standardized light weight equip¬
railroad analysts.
stand that the value of this real
ment. This, also, is viewed strictly
On the point of finances, which estate
may be
substantially en¬ as a long-term
potential.
have been causing some concern hanced
when, and if, the large
All in all,
Mr. Perlman held
in financial quarters because of office
building
that
has
been out the
prospect of disappointing
the
rapid
evaporation
of
cash talked of is constructed on the
earnings for as much as another
during the past 12 months, Mr. air rights over Grand Central
two or three years as the pro¬
Perlman stated that the picture Terminal.. This
possibility is, of gram
is
being
implemented.
had taken a turn for the better
course, in the distant future.
and that it was not
in
Mr. Perlman spoke at consider¬ Meantime, the company was
anticipated
that any outside borrowing would able
length on what he termed the black to the tune of about $1
management

the

nine

the

indications pointing
better than break even

little

multiple

for

in

closed

in

out

for

With

program

the system.

on

wiped

substituting

centralized

reported

million

erations for

is

It

income

net

be

$5

be

Also,
eliminate
a

proposed
to
amount
of
the

roughly

through September would

ter.

pos¬

dieselization.

large

the

mately

longer

made

still

below

million

over

will

months

de¬

efficient

much

been

it

in

anticipated that this
step will materially reduce track

Society also said by Mr. Young, Chair¬
Analysts on Thurs¬ man of the
Board, that the man¬
hopes were quickly
agement
had
decided
against
While
holding
to
the selling the hotel
properties and
optimism that has char¬ other Park Avenue
real
statements

it

the

the

have

through

therefore

time.

some

to

answer

permit
of

that

sible

trol.

In

These

dashed.

trains

is

improvement

an

months

about

debentures

full

cash,

for

rumored

Safeway in
$16,000,000
and approximately
$5,000,000 will
be added to the
working capital.
the

raise

members of the New York
of
Security

day.

present

no

This program

to

handling

of

to

ern

before

talk

had

the

selling its stock hold¬
ings in such roads as Reading and
Delaware, Lackawanna & West¬

nature

his

a

in

tention

that

hopes

He further stated that

management

last

of

Mr. Perlman,
important in¬

some

of

divulge

future.

de¬

Central

middle

presumably

new

interest

York

$3.5

i

September, 1953. Mr. Perlman
also* stated that it was
hoped that
the cumulative deficit of
approxi¬

it will take time

and

money.

signed

to

Equipment

and

mark

substantially

started
about
two
is to be pushed al¬
there still remains much

to the done

New York Central

a

000 in two series of debentures of

Cortland

will

previous

ago,

though

$75,000,-

are

Central

was

years

group headed by Merrill Lynch,
Pierce, Fenner & Beane yesterday
(Oct 27) offered a new type large

debenture

the

particularly
with
re¬
spect to the yards and signaling.
The
job of modernizing yards,

"Pacesetter" Offering
A

characterizes

property,

47

\

t

The income account for 1954 is subject to annual audit and adjustment.

.

48

(1748)

The Commercial and Financial Chronicle... Thursday,

Eberstadt Receives Report

7 MUTUAL INVESTMENT FUNDS

SECURITIES

By ROBERT R. RICH

SERIES
Mutual FundB with

THE

varying investment
350

over

porations. For FREE
information folder and

name

dividends

earned by

&

CORPORATION

in

represents

of

3%

120 8roadwoy. New York 5, New York

United

since

$30,000,000
which

States
an

June

1954.

investment

The

company,

operations

on

the above date, shows that $19,812,971, approaching two-thirds of
the Fund's assets, was invested in
stocks

common

porations

of

$10,256,851,

the

Fund's

cor-

assets,
in va-

invested

was

rious types

Canadian

of Oct. 15, 1954. The

as

remainder

of

of fixed-income bear-

ing Canadian securities.
H

a

d

stated

i

w

c

k

Stires,

agernent is confident of the longterm vigor of the Canadian econregards the portfolio as
well constituted to reflect
the development of Canadian in-;

INVESTORS
fund

mutual

being

The porthe said, will be altered as
economic conditions change. .
dustries and resources."

%

with

and

omy

INCORPORATED

jng

diversified

ment in

for

in

was

long-term growth of

its

and

on

the

all

interest-

more

the fact

of

only

rated

about

that

the

two-thirds

capacity.

of

Never before

the industry demonstrate an
ability to earn anything at so low
did

a

relationship to capacity.

before did it weather

Never

a

recession,
however
mild,
without
serious
price weakness in its products.
"This record encourages the ex-

pectation

of
substantially
earnings,
possibly

greased dividends,

in-

in-

steel pro,u iori con^inues
slow but
steac*y recovery. Moreover, rep°rte<? earnings understate the
situation. Cash earnings are subs an, f
^ r. Because a large
P?rtotl1th1?1f^ent |reat expansion
equipment is
as

..

cnL-i*

°f

sJction, yrep!arted earnings

Oct. 15;

quoted value of $3,973,004, or 13.2% of the total ap-

Prospectus may be obtained
from investment dealers or

a

I t

second largest common stock com-

5? fourth

A

?»1 £e
"J
g
Fund 1135 come off
common
presses.
were:
paper, $2,608,750; banking
The "Guide" is designed and
and finance, $1,981,250; construe- written for use in sales training,
tion, $1,969,975; food and bever- ancJ foe new edition, tab indexed
age,
$1,718,693;
merchandising, for easy reference, contains tested
$1,388,225; steel, $829,500; public techniques for prospecting, sellutility, $792,250; automobile, $465,- |ng, handling objections and clos000; agricultural equipment, $406,- tog Sales. \1?

Corporation

—*—

of

made

was

by

Weston

Custodian Funds
BOND, PREFERRED AND

Operation to Investment Companies \
CARTER BURKE

By

■

.

SAN JUAN, Puerto

Oct.
for

Rico, U.S.A.
bill providing

1954—A

27,
the

1. Its principal - office shall
maintained in-Puerto Rico. J

Funds

prospectuses

describing

Organization and the shares of your'

Funds.

ten

me

Royal

was

50 Congress Street, Boston 9, Mass.

Please send

permits

20%

to

up

in-

of

aj-ioJ

Putch Petroleum
par, of which

shares, 100 Guilders

shares, quoted at $988,761,
were"' held,
followed
bv
20,000
7,500

shares of International Nickel Co.
of

Canada

shares

Ltd.,

Powell

$928,311;

25,000

State

shares

Dominion

Stores,
Ltd.,
$750,000; 4,500 shares Canada Ce¬
ment Co.,

of

Bank

Bank

of

Imperial

What is

Ltd.; 12,000 shares Royal
Canada;

12,000

Montreal:

14,000
Ltd.;
and

Oil

shares

Industrial

shares

shares

10,000

Acceptance

Corp., Ltd.

Canadian

>

A

PROMISING

stocks

is

report,

^Fund?

y
Canadian

company

Fund

is

offering

investment in

a

a

mutual

on

investment

diversified, managed

common

tions selected

that

stocks of corpora¬

the oasis of

outlook

discussed

part

of

a

vestment service

dustries,

in

an

steel

interim

continuing

on

supplied

for

dealers

Grouo, sponsors
Group Securities, Inc.
"Steel stocks
an

are

in¬

Values in In¬

to

Distributors

viding

'Do I know
Wellington

it

is

to

his

by

anyone who owns

Fund?'

'Will the management be able
to

keep up as good a record
the future as in the past?'
'Do

River

Co., Ltd.,
$912,500; 800 shares Unilever N.V.,
1.000 Guilders par, $835,966; 25,000

Address

City

feels

orospect

its

advantage to buy. He generally
assets in non-Canadian securities will
give you buying signals, such
and its largest single investment as:

The Keystone Company

your

policy

of

think

you

right for

me

the

ture

"If

be

the

as

trading in securities and which
own investment
securities having
a value exceeding 90%
of the toor

tal

value of their assets less gov-

The firms, upon
mercial

in the past?'

prospect does not indi-

?a^e his interest by questions, try
3
questions by
P°smg. some y™''sclfa. ™le;

President

or

Secretary, shall be
Kl^0' ana

havinJ th,f

operation here will be

empt

for

Rico

taxes

from

the

10

from

years

income

on

purchase

ex-

Puerto
derived

and

sale

of

stocks and other property in which

they traffic, in order to
their

development

encourage

increase

and

the amount of the investment operations This provision was made

eral

done

presentation,
will

getting

generally take

Other
include:

job

good

a

in

the

o r

your

d

e r

of itself."

care

Puerto Rico

months

The

new

new

s

Income Tax

ago.

bill

*

'

.

.

:

:

*
5; "Within V one year -from the
date °t registration, and at all

tjmes thereafter, at least 20% of
the value of its total assets, less
cash, shall be invested in (a) secunties of or guaranteed by the
Commonwealth of Puerto Rico or
any.political subdivision, agency

mftrumentality thereof,

(b)

partnerships organized under the laws
0f Puerto Rico and deriving more
than

70%

sources

reeistr--

their

f

registered

imDOs-

toplovenlackof

due

securiti

th

Secretary

Treasury, through
£lve

ties

t0raj

for

a

in

cash,

such

dating

year

the

administralimit to 10%

less

assets,

investment

such

of

an

resolution, may

,ts

company

thel reoSfre-

to meet the last of

^ents

from

income

becomes

iM

firm's

reouires

of

within Puerto Rico,

.

Law signed by the Governor sev-

have

in

' or . Assistant
a resident of

securities of corporations or

up com-

j

Vice-President

or

-

|nd 4lts

or

setting

r
having the prospect ask questions
during the presentation.
If you

"Who

unusually high rate of

issuers

business of investing, re-investing

is

to invest?'

good

as

companies as those
engaged primarily in the
such

ernment securities.

■Will the dividends in the fu¬

the

securi-

from

the

chapter
is

the

Prospects

are

headings

Market?",

for

Mutual

Funds?" and "How to Sell Mutual

Funds."

tion of investment companies with

approval of the resolution.

Puerto

requirements which all registered

The bill provides that no investment company shall be registered or, if registered, make a
public offering of securities of
which such company is the issuer

companies

main

"What

of

currently pro¬

time

in

function in the. Commonwealth. It

defines

be

2. Its annual meeting of stockholders shall be held in Puerto
Rico.
"J '• /
: ^ :•
3. At least two directors shall
be residents of Puerto Rico.
4. Its Chairman of the. Board,

'

The

-

.

Puerto Rico Grants Tax-Free

on^6^ St°CkS 9U°ted 3t

vestments

4,

in petroleum

$3,175,510.

.

COMMON STOCK FUNDS

.

dent, "Financial World," at the magazine's annual report awards
at the Hotel Statler, New York, October 25, 1954.

creation, registration, opchemical, $248,537; rubber,The section on markets in the eration and regulation of invest$166,025; and container, $90,000.
manual is so thorough and de- ment companies in Puerto Rico
Investment in bonds comprised: tailed that it might well
apply to for the first time has been signed
Government of Canada, $6,349,256; the whole broad field of
selling. by Gov. Luis Munoz Marin to beCanadian
Provinces,
$1,242,875;
Under the c h a p t e r heading
come effective on Jan. 1, 1955.
municipals, $100,562; and corpora- "How to Close
Sales,"^here's a
Referred to as the Investment
tion bonds, $2,319,062.
The Fund sample of its adviceCompany Act of Puerto Rico, the
bill
sets
up
the machinery by
• "Usually, there's a time during
the sales presentation when the which investment companies will
'

;

funds.

Smith, Executive .Vice-Presi-

'banquet held

250;

Keystone

(left), aceepts

Industry" for the best annual report of mutual

Presentation

shares,
Other major
stock group investments

was

carried at

Berkeley St., Boston, Mass.

F. Eberstadt, President of Chemical Fund, Inc.

"Oscar
i

._TT

MILTON FOX-MARTIN, Manager
The®*
e a ,fr. Relations, has an-

praised value of the portfolio.
mitment

200

is

during that 5-year amortization
oeriod are being artificially remining shares duced."

stocks

common

metals

which had

capital and income

The Parker

being
wide margin," the re-

a

The Fund's largest group invest-

of

portfolio
selected

securities

present

industry is currently operat-

'

as

their

currently

are

view

at

onLg
V,; me^t

folio,

a

"This

jng jn
steel

creased

President,
in the report that the "man-

r

because

port states.

dollars

appreciation

14,

commenced

Eitobliihed 1930

A

return that appears well-

a

protected

which

and address.

SECURITIES

RESEARCH

return,

appraised valuation

an

share

prospectus, clip this ad

NATIONAL

stockholders'

of $30,069,822 in Canadian dollars,
or a net asset value of
$30.93 per

cor¬

and mail with your

interim

report of Scudder Fund of Canada

secu¬

rities of American

FIRST

Ltd. shows

objectives,currently in¬
vested in

Award

Mutual Funds

NATIONAL

7

October 28, 1954

unless

Rico's

Secretary

the

of

Treasury, in which they must disclose their investment policies, or
intended policies, and it prescribes

must

meet,

including:

such

company

has

net

a

possible

participation in Canada's growth.
The facts
tained in

your copy,

on

this mutual fund

free

a

are con

Affiliated

booklet-prospectus. For

ask any investment dealer

or

below

to

Fund

calvin
A

BULLOCK

~

Name.

n&a

'

are

growth

for

its

Prospectus

free booklet-prospectus

EATON

shareholders.

upon

request

Lord, Abbett & Co.

"

,ur;

New York

/*!:
't i

.

■

—

Chicago

—

At lanta

—

&

HOWARD

INCORPORATED

24 Federal Street

BOSTON

H—K




Managed by

objectives of this Fund
long-term
capital
and
income

'

Address

STOCK FUND

Common Stock Investment Fund

One Wall St., New York
Please send

EATON & HOWARD

Investment

Established 1894

on

EATON & HOWARD
BALANCED FUND

—

mail the coupon

333 Montgomery Street

BOSTON
ESTABLISHED

SAN FRANCISCO

1924

^

Prospectuses from

your

*- r

Investment Dealer

''

or

if**

,a

the above.

►

Los Angeles

-

\

4
r

t i

j.

Volume 180

Number 5372 ...The Commercial and Financial Chronicle

(1749)
worth of at

>

least 0$100,000

Rico, particularly, such- firms will success ' selling v mutual /funds
90
days after such registration be valuable assets in accelerating through the tax
saving approach.
statement becomes effective. * ^ '
the ? progress ,qf:Gperation Boot-, .He has literally become an
expert
v.«.
xhe * act
classifies" investment strap, the* island!s: vast economic Jon inheritance tax laws, income
companies as diversified and non- development program, in addition tax laws, and the savings that

service

is

pany

which

one

more

than

total

■

assets

5%

than

invests

securities

and

which

20%

of

of

1.

classified

as

Offers Florida Power

An invest¬

than

issuer

75%

nor

other

issuer.

given

in

law

the

to

In

to

stock

own

Nov.

of motives

and

value

like

of

Puerto

develop

production
tal

Rico

which

varied

more

and

need

where

the

that

1946

100%

time

shareholders
number

the

Fund

stock divi¬

of

Fundamental's

totalled

the

The

7,800.

Fund's

this

for

out

which

are

and

to be able to throw fast

seems

gifted

individual

balls, knucklers, curves, and wind
it up with a
change of pace then
to

power

you—but

if

you

like most of us, then find your

spots

(with

people)

NET

to

ASSET

VALUE

that

of

Wall

that's

suits

it.

best)

you

and

/

.

issue

at

was

Investing

Sept.

capi¬

30

each

Corporation

"

27)

on

:

proceeds

$17.22

sold

from
be

the

sale

used

by

The

corporate
1984

of

the

will

at
regular redemp¬
prices ranging from 103.88%
to par, and at special redemption
prices receding from 100.88% to
par, plus accrued interest in each

Florida

engaged

'

&

Co.

the

State

of

Florida.

the

of

to

304,682

shares

cently.

higher than the $13.62 reported

In the Commonwealth of Puerto

man

it

announced

was

This

$3.60

was

Sept. 30, 1953.

flair

started to

the most

wide

business.
who

took

headway in almost any¬
thing in this life—sales work is
no
exception.
There are curve

he

ball

&

Co.;

v

•

Salomon

Bros.;

his

on

in

year

throw

A

"nothing balls" and
mainly on control, but
every top flight hurler knows his
strong points; so does his man¬
ager, and
he plays to strength.
That's also the way it is in sales

&

Co.;

The

Illinois

&

Co.; Thomas & Co.; Mul-

&

Co.

.

You

Stimulate

letter

in

couldn't

meet

Enterprise

and

the

in¬

than

a

of

introduction

and

have

the

made

first
a

by returning to the

the

make

people on a
basis
with

"cold"

himself
not

From

less

*

his

new community
complete stranger.

was a

who

tically

in

and

grew

himself

Individual

man

to

brand

a

man

a

clientele

business

calls and

him

prac¬

only

between

call,

success

GOLD COIN STANDARD?

could

of

this

work and in the investment busi¬

procedure.

sonality, patience, and confidence

in

a

man

community with a sim¬
letter
preceding each
call

day.

He

were

rated

picked

10

names

out

every

people

$50,000 and

who
and

over

religiously made his 10 calls

day.

He would

then

three

mail

days

the

a

letters,

he

would

call and introduce himself.

Many

of

his

calls

eventually

later

were

he

met

wasted,
quite a

to

out

new

ple

which he sent to

he

who started

but
few

the

do
I

•

had the per¬
■

job.

know another

man

who likes
INDIVIDUAL

enterprise flourishes only when risk'
be calculated, and when earned rewards can be
refined. Calculation is impossible when the medium
of measurement

tenuous

The Federal administration

have

elected

on

sovereignty

•

GROWTH FUND

•

INSURANCE FUND

i

know

does

considerable

the

—super-hard cemented carbide introduced in 1938;
has tripled the output potential of
metal-working
and mining industries. But, it is a losing battle.

redeem currency for gold coin is
a

free economy.

The President, important Cabinet members, Sen¬
ators, and Congressmen have recognized the inher¬
ent Tightness of return to the Gold Coin Standard.*
Why, then, should legislative action on it be de¬

It gives the people

government. When displeased with
government financial practices, they can automatiover

layed? The United States owns 65% of the world's
gold—$11 in gold for every $100 of currency and
bank deposits.

Excerpt from Republican

constant

a

business.
doesn't

tions

INCOME

FUND, INC

"Monetary Policy" Plank

a
;

-

.

.19 RECTOR STREET, NEW YORK 6, N. Y.
Prospectuses
.

may

the above

or

be obtained from
local dealer.




He

of

source

has

complicate

mutual

broad

among

LTD.

with

0

has

a

in them—will win the world's respect

0of

fu\ty

tonV-

he

We must

resume

without devaluation

or

delay.

conversa¬

funds.

market

women

knack for

He has found,
for

securities

investors

and

gaining the

he

con¬

great many decisions to him
sound securities do the rest.

gold
free
end
vote

will help
.

to

.

.

o»k

restore

your

Write

of

Coin

The

Gold

to

League, Lotrobe,
it

on

attociotion

patriotic citizens joined in

the
•

league

common

sound

series of odverlisements

published In the public interest by

Senolori

Gold

the

Pa., for 'further information.
The

a

keep America

Congressman to work ond

Stondard.

—

There is another friend of mine
who is making a very unusual

On# of

^ The
right to redeem currency (or

Standard

fidence of many women who leave
a

Returning to the Gold Coin Standard will demon¬
our citizens that its government has faith
for our mone¬
tary might—will encourage individual enterprise
and stimulate American industry, of which Kenna¬
metal Inc. is a key organization, to contribute
ever-increasing benefits to all our people.
strate to

...

new

patience,
his

&oW<*\

or

Distributed by

HARE'S

who

business

letters, he talks income
and safety, and he does a
good job
selling conservative investments
and

•

salesman

widows, and he has developed a
technique of working with these
accounts that brings him radiation
and

•

another

power

dollar's shrinking value. For example, Kennametal

too.
I

the purchasing

Improvements in industrial productivity during
same period helped to
mitigate the effects of the

prom¬

money.

now.

The right to
fundamental in

con¬

some

less to say he has none with them.
He knows his groove and he
stays
in it—he's happy and successful

FOUNDATION FUND

was

years,

of the dollar declined about 60%.

The
to fulfill these promises is by enactment

best way
is

speculators
patience with him—need¬

no

people. During those

by the fire of

of the Gold Coin Standard. The best time to do it

income, growth and safety
principal. He puts conservation
so

the smokescreen created

as

'

twenty years the recently deposed federal
administration held this power away from the

—

ises of sensible economics and sound

to

that

money

inflation.

investment business is based upon
analysis of the investor's needs

capital first and he is

—

currency

For

is unreliable. And re¬
wards—paid in curency of shrinking- value—are as

an

servative

cally halt monetary inflation by cashing in
for gold coin.

can

basis.
He analyzes accourts, he checks into a client's
affairs, and he does a complete
overall job of investment counsel¬
ling. His entire approach to the

of

•

man

fessional

of

BANK FUND

This

the statistical approach to the in¬
vestment business.
He wants to
do business with people on a
pro¬

as

•

Co.;

on

ness.
a

&

Why Don't

friends.

of

established

where he

successful big leaguers

depend

know

Press-

i *

^

recommend

vestment

I

Stuart

R. W.

are:

share

a

Finally he met one
a
liking to him

circle

then

pitchers, cross fire throwers,
knucklers, speed-ball tossers and

who

$9,557,000.

re¬

people with whom he began to do

for something. It is the man who
knows
his
own
capacity
and
sticks to his own field that makes

very

its

laney, Wells & Co.; Walter Stokes

Electric

Making Your Strongest "Pitch"

some

also

beyond

Wm. E. Pollock & Co.,
Inc.; Free¬

is

sectors

JOHN DUTTON

certain

is

gas

reported at $75,663,000

the offering

prich

Securities Salesman's Corner

a

the

*

out¬

ties.

has

In

Hutzler; Baxter, Williams & Co.;

principally in supplying

electric service in various
of

in

Hirsch

Light

bottled

at

pur¬

Daytona

Associated with Halsey,

r//v/::

Power

and

company

and net income at

be

redeemable

'

the

enues were

bonds

is

distributed.

Lakeland

areas

by

except

butane

$69,597,000 and net income of $8,392,000. For the 12 months ended
July 31, 1954, total operating rev¬

tion

case.

and

plants,

For the year
1953, the company
had total
operating revenues of

purposes.

series

its

manu¬

on

amounted

commercial and industrial securi¬

man

&nd

through
is

mains.

of

,

will

where

Palatka,

sale

bid

a

in

Palatka,
chased

sold

on

standing,

Every

Lakeland

gas

company

..

Street

of

available lacks means, knowl¬

By

Beach,
All

by the

factured

by

won

competitive

(Oct.

bands

other

and

(the phase of the investment busi¬

company
also
service in Mi^mi,

Palatka.

and

company
to
provide
additional
electric and gas facilities, and for

a

fortunate

ness

Net

yourself.

If you

the

group

the

while

that

strong

the

by your ex¬
type of people

"go best with."

Inc.

Beach

of

yesterday
100.22%.

determine

perience

Co.

&

mains

groove
a

Stuart
are

Award

his

abilities,

After

The

gas

Daytona

offering $10,000,000
Florida Power & Light Co. first
mortgage bonds, 3V8% series due
Nov. 1, 1984, at 100.877% and ac¬
crued
interest, to yield 3.08%.

get along

comfortable

a

person.

can

more

Halsey,

am

We

Beach.

furnishes

-

-

types of people
others, in short

with

sharehold¬

edge and habits of investment in

•

is

find

you

from

Light 3i/8% Bonds

associates

niche.

some

do

we

You

are

today exceeds 52,000.

ers

areas

means

Mr. Brady

by

need

firms in

such

in

also paid a
dend.

con¬

recognition of the

that

than

income

dislikes.

with

you

on

share for

Nov. 8.

on

had

tained in the preamble to the bill
the
Commonwealth
Government
states its

additional

an

recalled

At

statement

receive

each share of Fundamental Inves¬

tors owned

companies.
a

28,

will

tona

&

to

nationally

has certain

us

and

better

—there

Shareholders

is

his

of

for every

Wm. Gage Brady, Jr., chairman.

Puerto

issued

of Fundamental In¬

gifts

quite sure
satisfactory to him. He

has found
Each

his

such that I

100% stock dividend, according to

to

Development Com¬
public instrument, to or¬

and

these

and

vestors,
Inc.,
one
the
nation's
largest mutual funds,
voted
a

ganize investment companies and
to participate in their organiza¬
tion

known

likes

Rico Industrial
pany, a

Attracting foreign capital for

DIRECTORS

any

Authorization

the

becoming

it is most

and,

2.

of the out¬

standing voting securities of

is

ness

work is

non-diversified

a

other

any.

more

par¬

and

investment in Puerto Rico.

but will not be permit¬
invest more than 25% of the

of

own

may

through

charitable institutions and
by es¬
tablishing living trusts. His busi¬

Rico

not

outstand¬

value of its total assets in securi¬

ties
.

means

effected

sub¬
stantially in the development and
expansion of production in Puerto

company,

ted to

Creating an effective

by which local capital
ticipate more actively

an¬

company
which does not
these requirements shall be

meet

be

can
_

not

owns

the

ing voting securities.
ment

to:

com¬

of the value of its

in

other issuer
more

diversified

is supplied in 447 com¬
munities, the largest of whiclnare
Miami, Miami Beach; West Falm
Beach,»Ft. Lauderdale and Day- /

Halsey, Stuart Group

'

A

u

■

•

diversified.

ft

within

'

cause

of

W

KENNAMETAL

(?:

Latrobe, Pa.

restoring

monetary system.

WORLD'S LARGEST Independent Manufacturer Whose Facilities are Devoted
to

Processing and Application of CEMENTED CARBIDES

Exclusively
*

•

-

'

-

t(-t

50

The Commercial and Financial Chronicle

(1750)

Continued,

jrom

5

page

Business Failures Rise

.

week ended

The State of Trade and

Industry

Dun

duction.

"Ward's" said
hind

in

a

entire

when

1952,

controls.

United

States

Truck output

the industry operated under
is 19.2% behind last year.

Liabilities

.year.

government

production is lagging behind the record 1953 jpace

with

Following a mild downward trend in the two preceding
months, the number of corporations chartered in the United States
rose
slightly from 9,041 during August, to 9,256 in September.
This compared with 7,433 charters issued in the corresponding
month a year ago, or a gain of 24.5%.
It was the highest for the
month
since
September
1946, when
9,551 corporations were

9.6%

the

above

1946

the

for

-businesses

182

of

excess

last

than

succumbed

last

—1;

Region,

Steel

Output Reaches Highest Level Since

all

'

estimate

hear most frequently for next

States

is an,
ingot production rate of 75% of capacity, says "Steel," the weekly
magazine of metalworking the current week.
That would yield
V o) 93,000,000 tons of ingots.-. In only three other years (1950, 1951
and

you

year

More

1953) has the out-turn been bigger.
75% rate indicates a belief that 1955's'business will
the accelerated

at

This

1954.

of steel

would

inventory liquidation than from

a

from

more

come

good

-

at

been

annual

up

rate

of

about

the

end

finished
1954.

products is expected

rate

is

consumption

that

$6.53.

It compared

of

in

the

Ohio Valley and

a

Iron

and

Steel

announced

that

74.2%
>

C-

or

The

steel

for

castings

as

compared

The Oct.

the

below

placed at 2,132,000 tons

percentage figures for last

117,547,470 tons

Electric

of Jan.

as

or

94.6%.

was

year

with

creased
a

1,

on

annual capacity

a

and

estimate of the Department

yield

at

2,949,643,000
a

are

prices

wheat

inactive

was

over a

week ago and

ness

of

1953.

were

Output Declined Further the Past/Week

;

reported to Cuba and the Americas.

active

continued

was

tric Institute.

A drop

kwh.,

fc^h.

or

and

the

Car

Loadings Advance 2.6% Above Preceding Week

Loadings of
18,209

12.3%

below

117,006

cars

or

to

1953

week,

and

a

decrease

week,,

the

of

daily

consumption for
rate

average

at

mid-week

to

absence of

the 'agency

reported

made in this country, as against 12,542
week and 19,200 in the like 1953 week.

there

"were "14,029

"trucks-

.

..

"Wardy estimated Canadian plants turned out 2,725

cars and-,
trucks in the

trucks last week, against 1,371 cars and 716
preceding week and 6,249 cars and 829 trucks in the comparable
195# week.
>
'
443




;

(revised) in the previous

Turns

which

from

showed

warm

-

reports of

an

in¬

the

from the level

Oct.

9,

1954,

a

also reported

four

1954,

change

no

the

1954,

weeks

in

ended

was

period Jan.
department

re¬

to

1

store

decrease of 2%

a

corresponding period of

Retail

York-

trade

City

volume

last

lar

period

a

in

week

from 6 to 10% ahead

?

year

New

advanced

simi¬

of the

ago

^aided

by

the stimulus of clear cool
weather
-

and

heavy sales promotions.

According

to

Board's

the

Federal

index

Re¬

department

a

Result of

the weekly period

ended

1954, registered

decline

below
year.

9,

-is

•<

the

a

like- period

for

Oct.

16,

of
of

8%
last

In the preceding
week, Oct

1954,

a

decrease

of

6%

was

reported from that of the similar
..

slightly below those of both the

preceding week and last year.: U

16

In

store sales in New York
City

year.

Slightly Lower As

were

week.

a

weather variously hindered shopping in different parts

Retail sales

.

in

Bad Weather In;Various Parts of the Country

of the country.

in¬

1953.
■

serve

33,400

Nature played the villain's role in .the retail drama of the
period ended on Wednesday ofriast week as hurricane, flood, smog
and

Board's

ending Oct.

the similar week

the

For

16,

a

'

inta the Government loan and pros¬

•

of

on

taken from

.

turned out.

«Trade Volume

16,

below the

Exchange Service

bales,

by

a

manu¬

a

ginned to that date since 1943.

In the like week of 1953

was

preceding

sales

as

was

sales registered

tight supply situation later in the season. Cotton ginned
prior-to Oct. 1 this season, totalled 5,691,000 bales, equivalent to
46%/of the indicated 1954 production, the largest proportion

preceding-week's

week,

For

corded.

,

.

week

preceding

that

Oct.

-

store

Reserve

the

the

Oct.

coffee

packed roasted coffee

September
32,200

prompted

was

creased movement of cotton

pects of

•

Last

estimate

Firmness

.

were

vacuum

the

slightly higher than

for

1953.

offering

leading distributor late in the week.

August and 36,100 in September last

industry for the latest week, ended Oct. 22,
"Ward's Automotive Reports," assembled an

output of 2,248 units, states "Ward's."

in

and

from

Principal bearish influences included the larger-than-expected

Bureau

Output Picks Up In Latest Week

amounted to 59,672 units, an increase above the

<

in

Green

reduced

Of

official crop forecast and the New York Cotton

of

estimated 45,-343 cars, compared with 44,882 (revised) in the pre¬
vious week.
The past week's production total of cars and trucks

142,716 units

pound

markets.

result

The total vol-

from

decrease of 2%

-

•

14.0% below the corresponding week in 1952.

S. Auto

according

a

the

appliances

ago.

previous

Spot cotton prices finished slightly lower after,, showing con¬
siderable strength at mid-week.
\

2.6%

corresponding

The automobile

1954,

a

domestic

as

hedge selling prompted by the continued

drop

U.

cents

by

all

major

1954, increased 1%

upward despite weakness in hog prices which dropped to the low¬

revenue

the

cars or

from

weaken

last year.

apparel, furniture and

Federal

of

est levels of the year to date.

freight for the week ended Oct. 16, 1954,
above the preceding week, accord¬
ing to the Association of American Railroads.,
Loadings totaled 721,402 cars, a decrease of 101,180 cars or
increased

for

the

facturer interest in the spot market and rumors that the British
Cocoa Marketing Board sold cocoa at lower prices.
Lard trended

like week in 1952.

most

country-wide basis

Cocoa prices were down sharply for the week on liquidation

8.8%

over

of 5

announced

was

This represented a decrease of 84,000,000 kwh. below that of

to

drop

and real¬

year ago

Department

.

prices by exporters to the United States market.

demand

a

of wholesale transactions

week

With most of the

prices

past
organ¬

representative

profit of 0.7% of sales,

and

year

only small supplies of free rice remaining
prices continued to advance the past week

under

the

by that

survey

unchanged

considerably above

and power

distributed by the electric light
industry for the week ended Saturday, Oct. 23, 1954,
estimated at 9,033,000,000 kwh.# according to the Edison Elec¬

net

a

ume

nearby delivery, but quantities ordered were generally small
broadening in volume failed to materialize. Busi¬
in soft wheat bakery flours was moderate.
Scattered export

rice crop harvested and
in the hands of farmers,

and used models

new

'

23,000,000

with

was

and

years,

reported

a

dex

moderately

the

at

were

two

revealed

orders

running

'

market

cars

in

slackened moderately in the week

month ago, and 227,000,000 bushels

year's outturn.

cash

new

point

textiles expanded.

about

less than a

was

compared with 1.2%

food

of Agriculture placed

bushels,

.

for

While the wholesale demand for

with

and the expected

The amount of electric energy

'

ized
as

year ago.

mixed

were

4

months of the year had a 2%

year ago.

sales

the previous week, but an increase of 727,000,000
over the comparable 1953
week and 1,337,000,000

Stocks of

in sales from

Demand for hard wheat bakery flours showed some improve¬
ment as declining mill balances forced some buying for immediate

The operating rate is not

based

markets

:

.

spending

department stores in the first six

prices showing1
little change.
The recent rains have helped in the completion of
seeding operations in the Southwest.
The volume;/0f trading in
grain and soybean futures on the Chicago Board, of Trade in¬

lower than capacity in 1954. The
are

1

corn

last

The

annual capacity of 124,330,410 tons as of Jan. 1, 1954.
For the like week a month ago the rate was
70.4% and pro¬
duction 1,678,000 tons. A year ago the actual weekly production
was

year's

bushels below the estimate of

on

comparable because capacity

grain

vesting. Primary market receipts of the yellow cerea)
considerably below a year ago at this time.

1,769,000 tons the actual output of a week ago.
industry's ingot production rate for the weeks in 1954 is

based

now

leading

V

ago.

ization

a narrow range.
Corn was quite firm and made modest
advances influenced by the heavy rains which have delayed har¬

operating rate of steel companies having 96.1% of the steelmaking
capacity for the entire industry will be at an average of 74.3% of
capacity for the week beginning Oct. 25, 1954, equivalent to
1,772,000 tons of ingots and

"

uphol¬

in decreas¬

The National Retail Dry Goods

holding in

this
Institute

in

••

t

and

were

consumer

Association

..

This compared with 276.31.

week earlier, and with 271.06 on the like date

Trends

the East Coast for scrap.

American

Oct. 19.

on

;

-

continued to lag. A brisk business
was
done in automobile parts. '

irregularly last week.

the index closed at 276.08

'

bedding

sales of both

After rising for several weeks to
reach the highest level at 277.78 on Thursday of the prior week,

prices are steady. This is reflected in "Steel's" finished
steel price composite, which holds at $117.95 a net ton. The scrap
market, however, shows additional price strength, largely as a
result of the improved rate of steel production and in export
The

.

The Dun & Bradstreet daily wholesale commodity price index
moved

increasingly

-

frequently purchased
goods, while carpets,

furniture

lowest

rye,

Commodity Price Index Reflected An
Irregular Trend the Past Week

Steel

on

year

Wholesale

tonnagewise in the steel industry.

demand

and

week that

plant shutdown- in the.:
West for installation of new equipment.
This put the national
rate for the week ended Oct. 24 at 73% of capacity.
Much of the recent new strength in steel demand is centered
in cold-rolled.carbon sheets, a product used extensively in auto¬
mobile's.
Cold-rolled sheets, however, are the largest product

v

-

such merchandise

1953, when it stood
the like date a year ago, or

raw foodstuffs and meats in general use and
its chief function
is to show the general trend of food prices at the wholesale level.

a

Wo-

poorly,

curtains, draperies,
glassware were among

most:

Total

31

point, largely be¬

popular.

ing favor.

hams, lard,
corn, oats, beef,
butter, coffee, cottonseed oil, cocoa, eggs and hogs.
The index represents the sum total of the price per pound of

"Steel" reports.
of floods

on

Up in wholesale cost last week were wheat,
cheese, sugar, rice and steers. Lower were flour,

big expansion in any steel consuming group is expected
next year.
There may be some variations from this year, but
gains and losses are expected to pretty much offset each other,

cause

with $6.54

•

houseware,

compiled

1.

to be fairly comparable to that in

a

price index,

in

were

suits sold

were

v.

-

household

rise of 0.8%.

a

No

Currently, steel ingot output is off half

goods

-

china

the current level to the lowest since Nov. 24,
at

'That's about

tons.

food

coats

most

Television,

by Dun & Bradstreet, Inc., slipped another 5 cents the past week to stand at $6.59
on
Oct. 19.
This marked the fourth straight drop and brought

pronounced upturn in

95,000,000 net

piece

bought.

.

areas.

wholesale

sport

demand, with darker char¬

while tweed and washable-flannel

many

last

suits moved slowly, but

and

men's coats and

Central

Further New Low for Year
The

con¬

to consumption, ingot outpuj; would have

equal to 75% of capacity, it adds.
The reason for this predicted

North

im¬

sales

total volume
to expectations. Men's

colors

coal

Wholesale Food Price Index Establishes

general, comments this trade weekly.
All this year
consumption of finished steel has exceeded steel production.
If

production had been

East

New

week,

not up

was

coats and

the

in

business

the

in

—3;

apparel

last

-slacks

businesses failed in the East North Central
year, while moderate increases from a year ago

as

prevailed in other

expected for the fourth quarter of

pace

demand

expected

and

46

to

—2; East —5 to
Coast —3 to
+1;

Although

stered

A

tinue

from

—7

to

Pacific

proved

Casualties exceeded the 1953 level in
the South Atlantic and West South Central States.

save

as

87

to

—6

to 4-2; South —<1
-j-3 and Northwest 0 to +4. '

to

to 41 from 15.

up

areas

Over twice

Week of Feb. 15
The

jumped

the

Southwest —2

,

•

failures

period.

comparable 1953
following percent¬

Midwest

England

,

out

areas

by

estimates

the

from

ages:

of nine, the West North Central and
Mountain States, had lower mortality during the week.
Notably
sharp upturns appeared in the Middle Atlantic Region where
two

retail

of

estimated

was

Regional

ago.

year

varied

1953 occurred in construction which
twice as many casualties as a year ago.
geographic regions reported an increase in failures; in

only

volume

week

by Dun & Bradstreet, Inc., to be
to 4% below that of

a

in all lines except service.

year

shopping

unchanged

the

in

levels

16 from 11.

late

frequently used to stir

dollar

:

showed higher mortality during

groups

and

relaxed

interest.

trade

compared

as

and

terms,

;

Thirteen of the

of $100,000

that

regained,

promotions,

were

The

the

158

and

credit

hours

be

weeks

shoppers'

sharpest upswing from

fact,

months

nine

27 in the similar week of 1953.
had liabilities in

rise brought commercial service failures up to

exceeded only in post¬

corporations

new

involved, in

were

anxious

were

aggressive

28, among wholesalers to 28 from 12, among retailers to 102 from
79, and among construction contractors to 36 from 22.
A milder

Most

103,638

with

more

or

few

past

preceding week,

were

against 130 in the previous week

industry and trade

had over

was

the

last week.

17

months of the

This year's cumulative total

period.
war

an

$5,000

as

ago and

aggregate of 85,596, representing an increase of
78,094 new concerns listed in the similar 1953

business incorporations for the first nine

in

152

Casualties

the week, with the toll among manufacturers climbing to 47 from

The

reached

of

concerns

All

formed.
New

the low of

from

Inc., reports.

A marked increase also took place among small casualties,

,

week

failing

by 27.1%, with cars down 32% and trucks 42.9%.

year

21

those with liabilities under $5,000, lifting their toll to 47 from 22

\

.

_

Oct.

Bradstreet,

week's failures

volume of 4,337,481

pass

a

In Canada,

&

output for 1954 is 18.3% be¬

car

but next week should

ago

year

Merchants

the moderate retail decline of the

considerably
heavier than a year ago when 185 occurred or in 1952 when there
were 154.
However, they continued 17% below the pre-war level
of 277 in the comparable week of 1939.

Currently, Dodge is number 2 in weekly truck pro¬

changeover.

Sharply In Latest Week

Commercial and industrial failures rebounded to 229 in the

f

Thursday, October 28, 1954

...

Week

in

weeks

1953; while for the four

ended-Oct.

elineof 5%

was

period Jan. 1

change

was

to

16, 1954,

reported.

Oct. 16,

registered

of the 1953
period.

de-<-

a

For the

1954,

from

no

that

Volume 180* Number 5372;;; The

Commercial
Financial Chronicle

(1751)

jChe following statistical tabulations

-

'latest-; week

•

week
Latest

AMERICAN

IRON

SIEEL

AND

Indicated

steel operations
Equivalent to—

Steel

Crude

PETROLEUM

oil

and

Week

Week

.

(net

§1,772,000

*1,769,000

42 gallons each)___
Crude runs to stills—daily average

(bbls.

average

1,678,000

.„

Oct. 15

(bbls.)

6,195,950

,■

6,152,450

6,196,400

6,310,950

16,765,000

6,711,000

6,969,000

23,095,000

23,131,000

23,852,000

23,717,000

Oct. 15

2,278,000

2,005,000

2,313,000

2,569,000

Oct. 15

10,163,000

*10,752,000

10,047,000

10,351,000

Residual fuel oil output (bbls.)
Oct. 15
Stocks at refineries, bulk terminals, in transit, in pipe lines—
Finished and unfinished gasoline (bbls.) at
Oct. 15
Kerosene (bbls.) at—_____________
Oct. 15

7,531,000

7,016,000

7,707,000

8,263,000

___

^

__

(bbls.)

t

___

_I_

___

150,928,000

—

Distillate

v

oil

fuel

Residual

fuel

(bbls;)

oil

at

(bbls.)

37,644,000

130,651,000

56U84.000

^56,054,000

57,268,000

Oct. 16

721,402

703,193

711,228

of cars) __Oct. 16

596,381

604,658

583,345

633,660

freight received from

connections

CONSTRUCTION

(no,

New

822,582

Revenue

U.

Oct. 21

construction

Public
State

and

__■

_

municipal

:

Bituminous

(U.

coal

BUREAU

S.

and

lignite

Pennsylvania anthracite
DEPARTMENT

EDISON

Electric

95,998,000

51,558,000

__Oct. 16

INDEX—FEDERAL

kwh.)

000

*

87,620,000
.

8,260,000

Oct. 16

i_.

135,621,000

29,929,000

17,103,000

115,805,000

23,952,000

561,000

*8,285,000

'

7,930,000

c

9,492,000

523,000

532,000

697,000

118

;

120

118

freight

___Oct. 16

119

(COMMERCIAL

Oct. 23

9,033,000

9,117,000

9,072,000

______Oct. 21

152

212

185

DUN

—

BRADSTREET, INC.______________

&

steel

(per

Scrap steel (per

i

Oct.

19

4.798C

4.798c

4.801c

PRICES

Electrolytic

Oct. 19
Oct. 19

$56.59

$56.59

$56.59

$56.59

$33.00

$33.00

$30.17

$32.83

ton)

gross

(E.

;

M. J.

&

—

•j.

Export

refinery

Straits tin
Lead

(St.

Zinc

(East

Oct.
Oct

St.

at_

20
20

30.350c

30.250c

29.900c

28.750c

—Oct.

20

92.875c

93.375c

93.875c

80.500c

Oct.
———Oct

•__.

20

15.000c

15.000c

14.750c

13.500c

-—

at—

Louis)

at
at-

—

.

29.700c

29.700c

29.700c

29.300c

20

14.800c

14.800c

14.550c

13.300c

_a___Oct. 20

—

Louis)

11.500c

11.500c

11.500c

10.000c

warehouse

Dollar

Railroad

Public

_____!.

Industrials
MOODY'S

i,--

Group—

95.83

110.52

105.52

115.63

115.63

115.24

110.70

112.37

112.19

112.19

—

110.70

110.52

110.52

corporate.

-105.00

104.83

104.66

26

109.06

103.88

26

111.25

111.07

112.19

112.19.,

26

.

'

a

Group

Industrials

(tons

Deliveries
In U.

109.06

103.64

110.70

105.52

'

,-r

107.62

HI 81

!

of

(tons
to

S.

of

2,000

CROP

S.

Winter
All

spring

.Other
Oats

EXCHANGE

2.87

2.89

3.13

Cotton

3.05

3.30

26

3.13

3.14

3.14

3.44

Hay,

wild

3.45

3.46

3.47

3.80

QT

93

100

442,581

408,830

523,839

106.23

106.24

105.64

106.00

ACCOUNT OF ODDON N. Y. STOCK
EXCHANGE COMMISSION:

SPECIALISTS

AND

SECURITIES

Oct. 22

942,032

$53,905,208

$46,602,053

706,904

579,679

$24,339,678

$33,251,350

Customers'

other

Oct

__________i.>————_ Oct

1,077.482
I
7,808

-Oct
—-Oct

1,069,674

965,431

679,456

$45,371,349

$30,060,985

$19,087,496

291,700

307,030

192,840

291,706

307~O56

192,840

973,696

691,548

497,206

8.215

12,092

10,185

___________

330,700

262,280

244,450

MEMBERS

—

401,910

385,700

378.200

318.720

9,747,070

10,855,170

9,552,430

4,991,020

10,148,980

11,240,870

9,930,630

2

1,109,270

1,132,260

211.800

171,850

119,040

1,003.570

1,037.230

458,290

2

1,106,100

1,215,370

1,210,080

577,330

2

291,660

344.600

321,290

Other

Jet.

2

25,470

22,400

18,700

23,200

Jet.

2

302,460

342.550

293.620

157,700

'Jet.

2

327,930

364.950

312,320

180,900

Oct,

2

—*

transactions initiated

off the floor—

round-lot transactions for

Toted

Farm

374.180

428.060

404.088

438,480

474,750

455,038

238,292

2

1,748,810

2,031,240

1,889.280

905,095

2

269.600

280.890

241.500

181,230

Oct.

PRICES,

U.

—
„

2

1,602,910

1.774,180

1,735,935

815.292

2

1,872,510

2,055,070

1,977,438

996,522

—

S.

DEPT.

OF

(3

tnns

PAvi«prf

rjj'
r.'

—

•

"oct

Oct,

than farm and foods.—

as

of

Jan

Number

1

1 includes

1954

of'orders

as

642.000

barrels

against the Jan.

not




41,803

92,877

60,881

64,473

29,954

29,297

29,081

2,701

2,696

192

192

(5

160

160

243

1,004

978

91,252

104,378

1,203
211,660

(tons)

<

224

'

(tons)

States)

FACTORY EARNINGS

(barrels)

reported

since

AND

ESTIMATE

LABOR—Month

of

HOURS—WEEKLY
—

U.

S.

DEPT.

OF

September:

Earnings—
'

All

manufacturing

$71.86

$71.42

76.59

77.14

64.91

64.45

63.57

39.7

39.7

39.9

40.1

40.1.

40.6

39.1

39.3

39.0

$1.81

goods

$71.06

76.99

goods

Non-durable

;

,

goods

$1.79

Hourly Earnings—
All

manufacturing

Durable goods

1.92

1.64

$1.79

1.91

1.66

APPLIANCE

Gas-fired

MANUFACTURERS

furnace

Gas

conversion

Gas

operated

METAL

of

,

1.90

-

1.63

ASSO¬

Sept.:

boiler

gas

of

(units)

shipments

75,200

(BUREAU

OF

28,200
8,800

10,300

204,200

MINES)

69,800

35,100

10,600

(units)

shipments (units)
shipments (units)

range

OUTPUT

Month

shipments

burner

178,700

209,200

59,700
31,100

—

Aug.:

Mine production of recoverable metals in
United States and Alaska:
Gold

(in

Silver

SELECTED

the

109.4

109.7

19

91.4

*92.8

92.8

94.5

19

103.3

103.4

105.8

104.2

19

85.0

19

114.6

109.9

110.0

83.4

90.3

87.4

114.6

#4

114.4

114.6

of

foreign

crude

runs.

§ Based

on

new

1953 basis of 117,547,470 tons.
introduction of Monthly Investment Plan.

capacity

annual

of

124,330,410

of

'

*

,

"

•

ITEMS

OF

S.

CLASS

179,951
3,022,436

$79,680,336

U.

•161,837
•2,949,983

I

Commission)—

June:

operating

income

deductions

available

after

for

fixed

from

fixed

charges—

charges

1

".

deductions

20,154,716
119.818,458'

3,485,763

73,717,815

61,813,815

income

$99,663,74'2

18,322,724

77,203,578

3,411,270
93,834,957

!

income

$58,880,854

17,565,891

97,246,227

!

income

Total

41,722,927

2,843,533

3,973,564
115,844,894
81,988,939

3,063,716

2,764,607

58,970,282

38,659,211

Depreciation (way & structure & equipment)

44,064,545

43,864,475

79,224,332
42,592,548

Federal

24,44^,421

16,167,905

58,692,592

Net

income

Income

Dividend

taxes

On

preferred

tNo

of

:

appropriations:

common

Ratio

1.

160,477

2,928,872

ounces)

INCOME

railway

Other

Other

ounces)

fine

(Interstate Commerce

Month
Net

fine

(in

Income

.

foods

fbnire

43,282

102,313

61,252

States)

On
•

30

43,488

(pounds)

Income

^l^commodities~o t her

23

103,011

(bushels)

crop

States)

Miscellaneous

19

products-—

6,883

13,593

t

199.302

2

—-

_______—

—

Processed

6,745

2,693

(12

RYS.

Commodity Group—
All commodities-*
t

2

Oct.

sales

NEW SERIES
LABOR—(1947-48 = 106):

•;

38,990

Oct.

——

Total sales

WHOLESALE

174,005

50.950

Oct.

account of memoers—

purchases

Other

,585.630

46.690

—

—

———

Total sales
Total

373,711
33,974
2,057,221
7,661
12,084

.

407,420

64,300

Oct.

purchases

Short sales

347,880

2
Oct,

Total

4,129

155,450

_

—

(tons)

(tons)

Domestic

—

—

sales

seed

44,374

29,851

,

13,829

575,640

179,830
926,270

Oct.

;

"

Other

and

29,136

2,164,459

(tons)

CIATION—Month

1,279.220

2
2

Jet.

1—-———-—•-

Short sales

262,341
1,588,415

28,722

(bushels)
(bushels)

Pecans

GAS

Other transactions initiated on the floor—

Total sales

3,350

Non-durable goods

Oct.

purchases

18,114

3,868

2,153,023

beets

Cranberries

5,309,740

Oct.

Total

19,134

3,868

7

manufacturing
Durable'goods

Oct.

;*—

—.—

2

27,997
3,881

18,400

(bushels)

(pounds)
Sugarcane for sugar

FOR

sales

Total sales

46,454

3,654

All

—._!Oct
Oct,
Oct.

—

*.—

purchases

Other

12,216

109,022

Hours-

ACCOUNT OF MEM¬
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered
Total

105,300

10,874

27.997

(tons)

16,465

103,687

48,628

timothy
(tons)

11,832

10,874

(tons)

Sweetpotatoes

Cherries

52,529

145,976

105,787
'

Tobacco

Grapes

36,813

t

,

147,323

345,515

Broomcorn

17,998

'

12,511

and

Non-durable

TRANSACTIONS

42,158
62,677

324,713

(SHARES):

sales

ROUND-LOT

(bushels)

.

1,167,970

229,530

STOCK SALES ON

—

sales

Other

61,755

;

(tons)

Durable

THE N. Y. STOCK
AND ROUND-LOT STOCK TRANSACTIONS

sales

Short

grain

:__

345,939

Total Round-lot sales—

Total

bags).

1,216,416
241,015

23,293

39,989

331,271

Weekly

———,—-——

OF

pound

AVERAGE

dealers—
sales——

Oct
\
Short sales
—-Oct
Other sales —————--—i—,—- Oct
Round-lot purchases by dealers— ';
'
*
' ■ ' -a
Number of shares
Oct,

ACCOUNT

369,050

23,293
•

1,083,130

148~970

—

—

—

Number of shares—Total

FOR

367,092

12,967
278,058

177,537

1,509,386

(bushels)

148,970

—

sales

value

175,395

48 (,021

$48,536,929

sales

Short sales—

t

877,511
291,025

8,698

(pounds)

Apricots

(customers' sales)—

Customers'

7,963

•

186,235

Peaches

1,112,144

--Oct,

775,900

Potatoes

Pears

:—

962,135
-

775,900
183,358

(bushels)

Hops
(pounds)
Apples, commercial

'

——Oct,

:

____—.

3,176;615
1,168,536

959,258

Peanuts

dealers (customers' purchases)7—
—

2,972,641

2,949,643
_____

(bales)

Sugar
.—

72,907

(in thousands):

Beans, dry edible (100 pound bags)___
Peas, dry field (100 pound bags)
Soybeans for beans (bushels)
1

93

—

1

394.7

429,295

104,886

DEPT. OF AGRICULTURE—

407.6

activity————;—_________ Oct. 16
(tons) at end of period-Oct. 16

92,475

58,387

REPORTING

3.30

'

236,069

1(H)

CROP

—

3.07

3.05

—

(100

114,760

88,947

lespedeza

3.05

...

Rice

86,748
*

47,666

clover

264,379

Number of shares—Total

EXCHANGE

103,901

(tons

alfalfa

235,147

ROUND-LOT

*61,609

87,623

A.—

Hay,

-

244.607

=

S.

pounds)

Hay,

3.22
3.13

247,919

—-——

U.

2,000

Hay,

3.23
3.11

261,389

Odd-lot purchases by dealers

TOTAL

2,732,000

Sept.:

3.53

3.22

3.10

252,442

sales by

*2,117,000

■

of

3.42

26
26

.—

---

:

Dollar value

Dollar

2,229,000

68,627

tons)

month

Hay, all (tons)

241,533

Odd-lot sales by

:

(net

(bushels)-

•

3.05

Oct. 16

Number of shares

Round-lot

40,994,000

-

Barley (bushels)
Rye (bushels) *

3.04

Oct. 16

—

33,055,000

1,506,213

2.87

ASSOCIATION:

—

in

spring

26

Oct

—

(tons*—_;

~

,

37,669,000

$514,941,000

13,935,000

(bushels)

Sorghum

401.3

DEALERS

47,374,000

(bushels)

2.79

STOCK TRANSACTIONS FOR ODD-LOT
LOT

,

$562,840,000

(net tons)

(bushels)

Durum

3.42

405,9

AVERAGE

:

28,826,000
65,703,000

$608,746,000

(bushels)

2.50

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
1949

'

^

2,000 pounds)
of

of October

3.14

—

INDEX

PAPERBOARD

orders

/

10,794,000

87,228,000

47,712,000

Corn, all (bushels)
Wheat, all (bushels)

2.51

26

of

Unfilled

shipped between
;

PRODUCTION

3.13

0ct

Percentage

75,342,000

pounds)

2.55

-Oct

(tons)

85,239,000

13,449,000

fabricators—

3.12

~2cr

—

Group—!

Production

and

(tons of 2,000 pounds)-.
Refined copper stocks at end of
period

Flaxseed

26

Orders received
j

134,767,000

30:

A.

26

———

Group—__________——

COMMODITY

NATIONAL

stored

production

26

Oct:
____Oct

*

-

MOODY'S

$237,182,000

134,439,0(^0

BANK

credits

anthracite

Oct

-

Utilities

$205,008,000

138,803,000
11,273,000
118,677,000

OUT¬

September

(BUREAU OF MINES)—Month

_Oct

-

A

-

Public

27,323

___•__

INSTITUTE—For

Copper

99.20

-

.—

____

Aa

Railroad

41,059

Sept.:

COPPER

105.17

AVERAGES:

YIELD DAILY

Government Bonds—

Average

48,818

___

26

S.

57,547
141,561

(tons)

countries

26

U.

of

Bituminous coal and lignite

107.62

Oct.
Oct
Oct

—

Group

BOND

99.96

110.70

——Oct.

______

Group

Utilities

99.81

110.88

26

corporate——!.

99.27

26

26

Vi

81,211

•76,584

*193,253

.

goods

on

*71,810

77,863
175,482

exchange

foreign

As
_

—

Oct. 26

26

Government Bonds———

Average

of

$207,042,000

Domestic

*

26

S.

5,706

III"II

.

BOARD U.

MOODY'S BOND PRICES DAILY AVERAGES:
U.

(tons

RESERVE

As

—

shipments

Refined

at
Yorki

(New

(New York)

grades

ACCEPTANCES

YORK

Imports
Exports ___'

Crude

QUOTATIONS):

copper—

Domestic refinery at—

Lead

2,297

4.634c

tont__:

gross

METAL

2,566
of

60,092

DOLLAR

NEW

Pennsylvania

lb.)

(per

Pig iron

6,498,605

delivered

cars

STANDING-FEDERAL
OF

of

IRON AGE COMPOSITE PRICES:

Finished

8,883,428

4,490,179

8,306,000

229

.

INDUSTRIAL)

6,666,907

4,681,242

—

INSTITUTE

output all

Total

________

6,771,000
tons)

;;

INSTITUTE, INC.—Month

smelter

BANKERS'

*

AND

24,378

pounds)

COAL OUTPUT

FAILURES

CAR

110,545

75,621

September:

ZINC

zinc

2,000

Based

RESERVE

AVERAGE tea 100

(in

output

RAILWAY

126,161

70,249

produced

(net

-___.

Domestic

_

(tons)

products

Shipments (tons of 2,000 pounds)
Stocks at end of period (tons)

149,576,000

Oct. 21

125,296

September:

139,757,000

OF MINES):

INSTITUTE:

ELECTRIC

$289,333,000

188,154,000
152,729,000

Oct. 21

(tons)_-_

SALES

STORE

SYSTEM—1947-49

$340,883,000

141,832,000

117,549,000

__

OUTPUT

$259,381,000

175,680,000

147,556,000

^

Federal
COAL

$323,236,000

Oct. 21

.Oct. 21

,i

construction

Ago

INSTITUTE:

Unfilled orders at end of period

S. construction

Private

steel

domestic

Slab

NEWS-RECORD:
Total

STEEL

August

of

AMERICAN

ENGINEERING

—

of

AMERICAN

,

,

freight loaded :(number of cars)__il______

of

/

S.

Aug
(short tons) end of Aug.

AND

~

Year

Month

tons)—Month of

ingots and steel for castings
tons)—Month of Sept.-

Month

Previous

MINES):

primary aluminum In the U.

IRON

Month

53,103,000

___.

Steel

OF

(net

37,164,000

124,021,000

Revenue

ENGINEERING

short

Shipments

140,618,000

151,787,000

38,480,000

131,198,000

-Oct. 15

;

_

at

151,550,000

38,796,000

133,128,000

Oct. 15

__

ASSOCIATION OF AMERICAN RAILROADS:

CIVIL

(BUREAU

AMERICAN

6,866,000

Oct. 15

output < bbls.)
Kerosene output (bbls.)
Distillate fuel oil output

.

(in

1

_Oct. 15

Gasoline

f

ALUMINUM

2,132,000

of

.

of that date:

are as

Month

94.6.

Stocks of aluminum

output—daily

of quotations,

cases

Ago

70.4

Production of

tons)

in

or,

(..*•>

either for the

are

Latest

INSTITUTE:

condensate

Dates shown in first column

-

that date,

on

production and other figures_.for tIie-

cover

Year

Ago

*74.2

§74.3

capacity).

Month

,

ingots and castings

AMERICAN

INSTITUTE;,

(percent of

month available.

month ended

or

Previous

,

or

51

•

stock

income

forecast for

fixed
Oct.

i

,

charges

1.---■

*

'

17,406,286

9,360,821

7,050,712

2.93

.*

29,413,788

1,425,190

stock
to

(

17,778,098

*

2.30

3.42

( >

52

The Commercial and Financial Chronicle.,.

(1752)

Continued

from first

has

page

to

been

from

the debt

stop

getting shorter—and then to start

Continued

from

Thursday, October 28, 1954

5

page

lengthening it gradually.

from Wai to Peace

This

done

have

we

during the

last 20 months.
In nine of the eleven major

Economy Without Upset
economic

entire

Our

the

that

happy day
possible time.
This

not

peacetime spending
major economic upsets.

without

American

ments

This

severe

true

was

the

all

great wars.
the War of

after

Civil

War, and

demands
war

It is

built

while

up

on.

wholly human, even if unfor
such
reconstruction

w*se,
booms

be

to

■speculative

overdone

credit

for

and

structures

to

into being. Soon the nation
finds itself with surpluses instead
•of shortages and an inventory re¬

duction

and

and

»ew

invention,

distribution

different

of

A

more

process.

must be done in
the proper ways which this Ad¬
ministration has already improved

Credit

the

-ought to be done.

things

It

also

•

cern

you

bankers.

as

intimately

are

familiar.
So

that

.

anything,

it

dangerous
erection

the

if

that

says

tells

the

us

most

thing is to permit the

of

structure

record

great

a

of

collapsible

speculative

credit.

When such structures
finally top-

-ple, they set off

spiral of liqui¬
quickly descend
widespread
depression
fhxoughut the economy. We
dation which

a

can

into

should

note

difference

that

in

the

the systematic

dation

-dimply
*

of

there
world

and

all

the

between

orderly liqui¬

inventories

become

is

that

have

too

large
and
liquidation forced
by
fear for
loans that are in danger of
going
"under

water."

History

We

makes

monetary policy, with which

records

•dramatically the "race of liquid¬
ity" and the disaster that it caused

But

this

January,

when

1953,

two occasions out of 13

only

on

longer

was

offered.

debt

lengthening in

the last 20 months has been

the

in

duction

amount

The

debt.

short-term

re¬

a

of

very

amount

of

marketable debt maturing in less
than

one

by

cut down

was

year

$11 billion.

over

The amount of marketable debt

running

than five

more

years was

by about $8V2

multiplication

a

*

of

Most

*.

•.

,

of

.

.

lions

dollars.

of

You

know,
upset

that

We

them
tion

to

The

the largest

half

a

while

the

cost

dinary living has shown

of

a

or¬

slight

decline.
You know what efforts

been

debt.

making
I

to

would

have

we

reconstruct

like

to

give

the
you

3obs

are

Created

created—and

estly created in

our

free competi¬

tive

price economy — by people
-tising
their money
to
expand
existing businesses or start new
iausinesses in the hope of making

profit. If any government policy
as
to make a profit un¬
likely or very difficult, people

jrfmply aren't going to launch the
ventures

from

which




debt

is

erately

to

robbed

the

new

the

inflation

dollar

which

of almost

half

of its purchasing power from 1939
to January, 1953.
to

ment trusts" (but often
acting as mere blind pools), chose this fren¬
zied period, not to withdraw from the
market, but actually to dive
into that maelstrom of speculative excesses with increased

vigor.
During the first eight months of that 1929 peak of the highest bull
market in history they secured from the public
market-playing
funds of $2,770,000,000 contrasted with
$1,078,000,000 for the entire
preceding year and with but $960,000,000 in 1926 when prices were
much lower.

so

Every month the debt gets closer
maturity simply as a result of

the passage of time.

Like the Red

Queen,

run

we

have to

to stand still.

fast just

Our immediate

job

The

higher, not the lower, prices went, the
buy.

more

did the experts on economics and business

Thus, factors from the outside-the-market areas were com¬
pletely ignored by even the most knowledgeable market partici¬
pants.

cv/

.

Interpretations by the Experts
Also in the forefront of the well-informed individuals who
either disregarded or misjudged the business
background of the
investment situation were the bankers.

Typically,

days before "the end," the ranking officer of

one

mercial banks, with resources
exceeding a billion
down this brilliant observation:
"The

markets

securities
sound

conservative

The market values have
of

our

in

now

a

Oct. 15, nine

dollars, handed

healthy condition;

even

by the standards of ten

sound

a

leading
perfectly

many

at levels which would have been considered

are

and

are

on

of the top com¬

years

ago,

value in the general prosperity

country."

And

representing

the

reaction

of

the

economists:—the

fol¬

inventions, such

our

years

economy.

borrow

must

it- needs so as not

to

This is due in large measure to

later

as

the world,

never

production and

mass

before has witnessed."

(Two

such

"technological advance" motivated the shortselling of stocks at prices 70% below their level existing when
this thought was expressed.)
With unique access

interfere with the needs of other
the

to business facts gathered from all over
the Standard Statistics Service, after having been
the stock market
intermittently during the rise in 192&

nation,

governmental units or private en¬
terprise for any money they may

bearish

need. The

and

borrow

the retention and purchase of common stocks.

government should not
large amounts of longterm
money
at times when it
would seriously interfere with the
supply of that money to finance

way

in such

Blue

Highlighting

whenever

the

things

we

ought

"P. S." of their

Administration

do

and

October

into

and

more

effect,

see

jobs

for

more

more,

new,

cheaper

things

for

have

ever

us

years

all, than

dreamed.

people

better

better,
any

©ecline

204

23%

1932 Low

63

Anaconda

104

75

28%

Amer. Water Works—

109

65

40%

11

Du Pont

165

80

50%

22
7

General Motors

3

53

33

38%

Tel

100

61

40%

2

North American

120

70

42%

13

Int'l

Tel. &

Radio

1

58

26

60%

2

*

175

100

43%

15

#

—

Westinghouse

Conclusion—Will History Repeat?
Does the past New Era's holocaust

justify any unpleasant im¬
plications or forebodings at this happy anniversary time? On the
reassuring "no" side there can be cited such constructive factors
as

elimination

of

manipulation and other market abuses, under
absence of market-credit expansion; govern¬

Federal regulation;

ment "guarantees" of economic

stability; and less general specula¬

tive activity.
On the other hand,

the

SEC-dictated

inflation

threat

fund

justifying at least

market

as

and distortion from

redemptions;

thinness;

short-term
investors'

some

forebodings

possible exaggeration

of

are

the

market
tax

stimulus; market inflation
policy; vulnerability to mutual

possible

over-estimation of the shorter-term
generally expanded fiduciary buying,
with supplanting of quantitative value factors
by a revival of the
"scarcity" credo; and the consequently high prices of Blue Chip
name-issues, on criteria of both historical levels and price-earnings
ratios (some of the same issues are back up to 30 times
earnings).
effect of pension fund and

And the truism must be remembered that

in the

same

history repeats, but not

way.

In the light of all the imponderables involved

to

greater prosperity

making

living for

the

Low

263

Amer. Tel. & Tel

external

ahead will

—

Percentage

a

put its sound fiscal and economic

policies

28-29, 1929

High

this

continue

can

subsequentiy further decimated prices.

Stock—

opportunity

to

Chips Yesteryear

irrelevance

of reassuring business factors
devastating blow-up of the so-generally embraced New Era
market credo, was the behavior of even the
"good" stocks. The
following table shows some of their "readjustments" which oc¬
curred during the two trading
periods Oct. 28-29, 1929, with the

interfering with the expansion of
our
economy and the making of
more and better jobs.
But

the

1929, changed its mind and urged

in the

to avoid the possibility of

as

on

early 1929, in September,

ticular time is to have the govern¬

ment borrow its money

infla¬

Handling of the debt by
previous administrations had con¬
tributed substantially and delib¬

a

4s such

Jiew

short-term

tionary.

only hon¬

last-named expert investors,
comprising the various types
holding companies—including general management investment
companies, trading corporations, bank-holding companies — all
coming under the general head of investing companies or "invest¬
of

an

much

Jobs Are

An important insurance of the safety of the price level
investment trust, which surely would be
standing by
effectively to stabilize the market.
the

individuals.

sensitive

^

How

(9)

was

effort not to

analysis of what we have presents itself to do so without
done in the past 20 months, which such interference or retarding ef¬
in the early 1930's.
shows that we have already made fect, we will seize it to extend
We have been most fortunate
steady, if not spectacular, prog¬ maturities to whatever it seems the
that no such fear caused
situation then existing will permit.
any sim¬ ress in this vital field.
ilar race for liquidity in the
Every program that the Eisen¬
past
The Debt Program
year and a half.
It must not oc¬
hower Administration undertakes,
cur in the future.
President
Eisenhower, in his every problem that we inherited,
There are other lessons from first State of the Union Message we look at with one thought in
tfee past which were applied to in February, 1953, said, in his dis¬ mind: Is it necessary for the good
■our
economic situation over the cussion of fiscal policy, that "too of most of our people? If so, we try
jpast year and a half. It was clear great a part of the national debt to make sure that it is done in the
that
the
government's
policies comes due in too short a time." most economical way. We are now
during all the 1930's were wrong The President said that the Treas¬ definitely getting more and better
and worked badly.
They were de- ury would undertake at suitable defense for less money. There are
jsigned to solve unemployment; times a program of extending part many other examples of how we
yet there were still nine million of the debt over longer periods are
getting better government at
itttiemployed in 1939. These un¬ and
gradually
placing
greater less
cost and so helping the econ¬
employed only got back to work amounts in the hands of longer
after war broke out in
omy to become healthier.
Europe. term investors.
I know of no one who thinks that
There is nothing to fear about
Our determination to do this at
war is the right
times
was
way to cure un¬ suitable
based,
of the long future of this economy or
employment.
course, on the knowledge that too
this nation. If we keep doing the
today

or

the

we

the building of schools, hospitals,
in the nation's
or highways by local or state gov¬
history. You know how waste and
ernments
or
the
expansion of
extravagance have been stopped
in many areas of government. You power plants or building of new
factories or other industrial enter¬
know how these and other poli¬
cies have been successful in creat¬ prises by private business. What
we are trying
to do at this par¬
ing a remarkably constant value
of the'dollar during the past year

wide

any

upset

ac¬

Progress

will continue

and

amount in any year

and

requirements would prevent

will continue

gradual.

government

money

;

Large margin
disorderly decline.

every

toward

start

immediate—but

But

to

as

previously-existing lesser number ol-

lowing psychologically-warped interpretation of the significance
of the business situation from the
highly respected and widely
quoted Professor Irving Fisher (September, 1929):—"There will
not be anything in the nature of a
crash. We are living in an age
of increasing prosperity and
earning power of corporations and

be

make

so

seriously

ill-considered

our

—

be

can

must

the

(8)

repeat that our goals

clear

be

or

sensitive

a

be

can

hasty

by

action.
can

is

our economy

mechanism

the

how

know

recon¬

debt.

because, as you so v/ell

care

for

shares outstanding.

.

are

taxes have been cut by

of

But we will
continue also to operate with ex¬

mechanism of

well familiar
by now with the major accom¬
plishments of this Administration
during the past 20 months. You
know how spending and spending
programs have been cut by bil¬
you

objective

the

to be made.

division of a stagnant

new

pool.

the

structing

also

production and income, not sim¬
ply

further

act

the

seek

increasing

Observations...
prevailing market

The

The major debt

has been made

and enlarged.

that

dear
some
of
the
things that
ought not to be done. Many of
the things in both categories con-

taken

by the individuals them¬
selves when overtaken by adver¬

Study of past depressions makes
of

be

cannot

of

care

I&anger of Collapsible Speculative

some

which

titution

and

sity.

clear

of

responsibility

primary

government must, of course, be to
relieve human suffering and des¬

services has often in the past been

along, slow painful

to

treme

Responsibility of Government

pro¬

products

a

of destroying the soundness

means

adjustment is required. Using up
surpluses and the resulting
readjustment of manpower and
the

ing investors securities other than
one-year certificates. This is quite
a contrast to the 20 months prior

and

of the dollar.

^tacse

to

govern¬

finally, became

and

around

come

resources

spending

was

billion.
lower taxes
We have made progress, too, in
will help to avoid the inflation
placing greater amounts of the
which destroys confidence and ul¬ debt in the hands of
longer term
timately any nation's economy. individual savers, largely as a re¬
The handout principle of deficits sult of the
highest level of E and
and resulting debts of the 1930's H
savings bonds sales since World
was
a
temporary expedient that War II.
Individual investors al¬
assisted nothing fundamental. It
together hold more than $66 bil¬
actually deterred individual risks lion of government securities at
taking in competition with the the present time.
free money that was being passed
We are continuing to work to

satisfying the backlog

which
was

The

ment

for the time being
the
production
of
all
sorts
of
peacetime goods. Once war ends,

the

of

reduction

tion.

postpones

to

shaped about the reduc¬

are

government spending as an
absolute requirement for the reduc¬
tion of incentive-destroying taxa¬

-el postwar depressions is the fact
that when our nation goes to war

turn

poli¬

tion of

As you know, one of the causes

we

or

deadening effect.

a

Administration's fiscal

cies

World

incentives

on

have

way

This

War I.

it

threat or

legitimate activity in

of

any

shows that we
economic adjust¬

following

*812,

Limitation
freedom

history

tiave had

the

by

or

by
other
actual
or

and

practice of government competing
with private enterprise.

to

war

of

costs

always

transition

the

prices

labor

uncertainty
has

nation

Of materials, labor, or

the last 20 months,
lengthened by offer¬

of

the debt

jobs grow. New ventures are dis¬
couraged by government controls

in

bring
earliest

to

the

at

Tboen able to make
from

program

best calculated

way

nancings

fi¬

and

fuller
of

us

factors,

in

judging the

qualitative and

quantitative, the key to confi¬
procedure would seem to lie in concentrating investing
policy on quantitative factors of value, as prospective long-term
dent

earnings and dividends, to appraise the

proper

price of individual

issues—in lieu of attempting to judge the present or future
status
of the market-as-a-whole.
.

While

this

"head-aches,"
tion.

J—

as

will

obviously

not

avoid

severe

v; * '

intervening

long-term policy it does provide the only solu¬

Volume 180

Number 5372...

Commercial and Financial Chronicle
The

S3

(1753)
'

'

-

Securities

Now in

Alabama Gas Corp.,
Birmingham, Ala.
Sept. 29 filed 84,119 shares of comon stock (par $2)
being offered for subscription by common stockholders
Oct. 19 at rate of

(with

an

Nov.

10.

one

share for each

new

10 shares held

oversubscription privilege); warrants to expire
Price—$22 per share. Proceeds—For construc¬

tion program. Underwriter—Allen &
Co., New York.
Allied Thermal Corp., New
Britain, Conn.
Sept. 23 (letter of notification) 5,333 shares of common
stock (par $25) being offered for
subscription by stock¬
holders of record Sept. 23 on the basis of one new share
for each 15 shares held; rights to
expire on Npv. 1.
Price—$45 per share.
Proceeds—For working capital,
etc.

Office—Corbin Ave., New

Britain, Conn.

Under¬

writer—None.

Allen Discount Corfh*

Aug. 13

Boulder, Colo.

(letter of notification)

900,000 shares of class

Registration

—Orlando, Fla. Underwriter
Petersburg, Fla.

Goodbody

—

&

Co.,

St.

American Uranium,

Inc., Moab, Utah
Aug. 18 (letter of notification) 3,320,000 shares of
capital
stock.

Price—At par (five cents per
share). Proceeds—
exploration and development expenses. Underwriter
—Ogden Uranium Brokerage Co., Ogden, Utah.
For

Ampal-American Israel Corp., New York
Sept. 17 filed $5,000,000 of 10-year 5% sinking fund
debentures, series C, due 1964; $3,125,006 of 5-year dis¬
count debentures, series D; and
$4,100,000 of 10-year dis¬
count debentures, series E. Price—Series
C, at par; se¬
ries D $2,507,659.53, to yield return
equal to compound
interest at rate of 4%% per
annum,
series E $2,502,111.10, to yield 5%.

compounded; and

Proceeds—For de¬
velopment and expansion of agricultural, industrial and
commercial enterprises in Israel.
Underwriter—None.

non-voting

common stock.
Price—At par (25 cents
Proceeds—For loans (mainly promissory

share)*

per

notes).

Office—1334 Pearl Street, Boulder, Colo.
derwriter—Allen Investment Co.,
Boulder, Colo.

Un¬

Amalgamated Uranium Corp., Salt Lake City, Utah
Sept. 1

(letter of notification) 2,500,000 shares of com¬
stock (par three cents). Price—10 cents
per share.

mon

Proceeds—For exploration and development costs. Office
Bldg., Salt Lake City, Utah. Underwriter—

—218 Atlas

—

Ned J. Bowman Co., the same
city.

Writer

American Buyers Credit Co.,
Phoenix, Ariz.
Aug. 6 filed 5,000,000 shares of common stock to be is¬
sued to policyholders of American
Buyers Insurance Co.

Peters,

Arkansas Natural Resources
Corp.
June 11 (letter of
notification)

and

&

Christensen, Inc., Denver, Colo.

stock

mon

American Buyers
Casualty Co., and employees.
Price—To so-called "Expansion
Policyholders"

—For expenses

policyholders of both insurance companies),
ployees, at par ($1 per share); and to all other
policy¬
in the insurance
companies, $1.25 per share.

holders

Proceeds—To

in the

expand

small

loan

field.

Under¬

writer—None.

Office—Rison,

16

on

a

For investment.

rata

pro

basis;

rights

to

expire on Nov.
Proceeds — To

12.

Price
At
par
($10 per share.)
ac¬
quire capital required by Arizona law for a stock benefit
insurance company. Office—2001 East
Roosevelt, Phoe¬
nix, Ariz. Underwriter—None.
—

American Independent Reinsurance Co.
Sept. 2 filed 900,000 shares of common stock (par
$1).
Price—$4 per share. Proceeds—To be invested in secu¬
rities of other companies and for
working capital.

NEW

ISSUE

4

Systems,

ing capital. Underwriter—Mitchell
Securities, Inc., Bal¬
timore, Md.
•

Aztec

Oct.
to

13

be

Oil

&

filed

Gas

Co.,

Dallas, Texas

285,005 shares of

offered

for

of record Oct. 29 at the rate of

ESI)

October 29

Inc.

U.

S.

&

Inc.)

shares

750,000

Common

Inc.)

Hatch

Common

&

Co.,

Inc.)

(No

(General

ty

(Bids

(Wednesday)

Corp.

and

Beane)

Merrill

(Offering

200,000 shares

Crescent

-Templeton Growth Fund of Canada, Ltd...Common
(White, Weld & Co.> $9,675,000
<•:
r

November 4

'

*

«

*

(Lehman

11:30

a.m.

Inc

Brothers)

(Bids

O'Sullivan

Rubber

a.m.

November 8

Interstate

Penn Fruit Co

—Allan W. Egbert

Underwrite*
Co., 2306 Iowa Ave., Ogden, Utah.

Big Indian Uranium Corp., Provo, Utah
July 15 (letter of notification) 500,000 shares of comnrcsat
stock (par 10 cents). Price—25 cents per share. Proceeds*
—For mining operations. Address—Box 77, Provo, Uteht.
Underwriter—Weber Investment Co., 242 N. University

Ave., Provo, Utah.

it Bikini Uranium Corp., Denver, Colo.
Oct. 15 (letter of notification) 3,000,000 shares of com¬
mon
stock (par one cent).
Price—10 cents per share.
Proceeds—For exploration and development costs.
Of¬
fice

—

705

First

National

Bank

Bldg.,

Denver,

CcJo.

Underwriter—I. J. Schenin Co., New York.

Black Hawk

Uranium & Metals Co.

underwriting)

Mines, Inc...!

Inc.)

1

(letter of notification) 109,000 shares of common
(par 10 cents). Price—$2.75 per share. Proceeds—
working capital. Office — 575 Forest St., Orange,,
Underwriter—Batkin &

Co., New York.

Mills

the basis

on

IV5 shares of

of

one-third

common

share of pre¬
stock for each PacSiic

unless*

Burlington Mills presently own 503,245 shares,,
52.4% of the outstanding Pacific Mills stock. Under¬

California Tuna Fleet, Inc., San Diego, Calif.
Sept. 29 filed $4,000,000 of 6% sinking fund debenture*
due 1966 and 160,000 shares of common stock
(par( fivecents) to be offered in units of a $500 debenture and 2€>
shares of stock. Price—To be supplied by amendment.
Proceeds—For purchase from National Marine Terminal,
Inc. of its undivided interest in 17 tuna clippers, subject,
to certain liabilities; for construction of four tuna clip¬
pers; and the balance for working capital and gejbera*

Common

Co.)

(N. J.)

and their associates will purchase any unsold shares.

1

&

Co.

.

Common

$300,000

.;

/

(Monday)

'

;

'

[

Common

100,000 shares

(Tuesday)

Continued

on

page

Common

(Tuesday)

"

'

Power

Co
to

Preferred

be

invited)

$10,000,000

$6,500,000

December

Common
F.

Cassell

&

Laclede Gas

Co.)

(Monday)

be

(Bids

New

to

be

(Bids

to be

Debentures & Common
December

Common

14

$15,000,000

(Tuesday)
Co

invited)

Illinois

Central

invited)

1&

(Bids

be

invited)

,

New York

(Wednesday)

RR.xjL—^——
to

Bonds

$6,000,000

•

.

Debentures

$30,000,000

Orleans Public Service Inc

(Scott, Horner & Mason, Inc.) $1,311,000

$299,880

invited)

December

100,000 shares of each

& Co.)

(Wednesday)
Bonds

to

New England Tele. & Tele.

underwriting) 381,018 shares

Tarbell Mines, Ltd

1

Co
(Bids

Preferred and Common

(Hemphill, Noyes & Co.)




Debentures

Freightways, Inc.

(Bids

Common

stockholders—no

(H. J. Cooney

Office—3375 Harrison Blvd., Ogden, Utah.

600,000 shares

Bonds
EST)

National Fuel Gas Co

V

Big Horn Uranium Corp., Ogden, Utah
Sept. 23 (letter of notification) 4,000,000 shares of com¬
mon stock (par one
cent). Price—Five cents per share.
Proceeds—For exploration and development expenses.

Cahokia Downs, Inc., East St. Louis, III.
;'ri£"
Aug. 30 filed 140,000 shares of common stock (par $1)
subscription by stockholders of record:
Aug. 28. Price—$5 per share. Proceeds—For construc¬
tion of racing plant. Underwriter—None. The director-s¬

,

Corp._

Shenandoah Gas Co

Lake City,
Phillips Building, same city.

to be offered for

•V

approximately 70,000 shares

to

(three cents per share).! Proceeds*
Office—510 Newhouse Buildtofc.
Utah.
Underwriter — Call-Smoot Cot*

expenses.

writer—None.

(Wednesday)

November 30

Preferred

(Troster, Singer & Co. and C.

(Offering

Price—At par

mining

„

$300,000

(Bids to be invited)

shares

of)

10

expan¬

Lehman.

Big Bend Uranium Co., Salt Lake City, Utah '
Aug. 6 (letter of notification) 7,000,000 shares of commem*

or

$300,000

Virginia Electric & Power Co

Common
150,000

offer to Derby Oil Co. common stockholders
by Union Securities Corp.) $12,195,500

(Territory

for
—

Mills share. The offer is to expire on Nov. 5, 1954,

EST) $50,000,000

November 23

—underwritten

Hawaii

$1,000,000 of short term unsecured notes and
and
working
capital.
Underwriter
Brothers, New York.

sion

extended.

(Tuesday)

stockholdei:sy-no

to

(Blyth & Co.,

.Common
shares

Colorado Oil & Gas Corp
(Exchange

Instruments, Inc.? (11/4)

150,000 shares of common stock (par $1).
Price—To be supplied by amendment
(to be related
market price at time of offering).
Proceeds—To retire!

lington

Common

November 22

(Offering to stockholders—underwritten by Lee Higginson Corp.)

Instruments,

Beckman

ferred and

Common

(Tellier

Consolidated

Barium Steel Corp.

Beckman

*'■

Oct.-18 filed

of capital stock of Pacific Mills not now owned by Bur¬

Common

Investing Corp.)

Uranium
.

f

(Thursday)

599,215

Pierce,

(Monday)

-

.

Lynch,

380,000 shares

Investing Corp.)

Aztec Oil & Gas Co.__

Common

Haupt & Co.)

y

...Common

Telephone & Telegraph Co

Common

Cott Beverage Corp
(Ira

$4,000,000

$3,000,000

^
-

EST)

November 16
Pacific

of America

Corp.)

a.m.

November 17

November 3

of

Burlington Mills Corp., Greensboro, N. C.
Oct. 1 filed 151,936 shares of 4%% preference stock (par
$100) and 546,969 shares of common stock (par $1) being
offered in exchange for the 455,807 outstanding shares

Bonds

(J. C.) Corp

Common

underwriter)

(Hunter Securities

^

as

being constructed; and for general corporate purposes.
Underwriter—Lee Higginson Corp., New York.
.-r

N.J.

105,000 shares

Hickory Copper Co

(General

—

Venezuelan Sulphur Corp.

11

Boston

$300,000

(Monday)

Corp

Brothers)

(Van Alstyne, Noel & Co.) 200,000 shares

$298,000

Old

November 1
Stores

share for each four shares held

Proceeds—To repay short-term loan made to
subsidiary~
a
major portion for completion of seamless tube

Oct.

Mexican Gulf Sulphur Co

Warren

Howard

First

shares

Zotox Pharmacal Co., Inc
H.

Lehman

November 15

Common
Co.,

and

Fenner &

Mercury Corp

(Frederick

(The

Common

&

new

(with an oversubscription privilege); rights to
expire Nov. 24. Price—To be supplied by amendment.

For

Union Tank Car Co.__

shares

750,000

Co.

(Bids

Common

750,000

Otis, Ine.)

(Greenfield

one

3

stock

(Tuesday)

Sierra Pacific Power Co

Pan-Israel Oil Co., Inc
(Gearhart

op¬

Corp., New York (11/4)
599,215 shares of common stock (par $1>
for subscription by common stockholders

filed

offered

Brothers Chemical

Common

(Bear, Stearns &

$1,250,000

Petroleum, Inc

Otis.

12

be

at rate of

Common

Panellit, Inc.
Common

Stearns & Co.)

&

an

Aug. 9 (letter of notification) 5,000,000 shares of capital?
stock. Price—At par (two cents per share). Proceeds-—
For mining operations.
Office—136 S. State Street, Ssito
Lake City, Utah.
Underwriter—P. G. Christopulos- &■
Co., same city.

(Watling, Lerchen & Co.) $1,121,680

,

(Friday)

Israel-American Oil Corp.___

(Gearhart

Price—To be

exercise

Barium Steel

Nov.

share for each

new

$15,000,000

Alstyne, Noel & Co.)

(Bear,

one

(par $1)

stockholders

common

CALENDAR
Yard-Man,

Continental Uranium, Inc

Israel-Mediterranean

(11/17)

stock

common

subscription by

November 9

(Van

Inc., Baltimore

Telebet units and Teleac systems and
additions to work¬

Notes

noon

Remote

filed

620,000 shares of common stock
(par 5G
cents), of which 540,000 shares are to be offered to
public and 80,000 shares to be issued to underwriter.
Price—$3.75 per share. Proceeds—For manufacture of

(Thursday)

Railway Co
(Bids

Office

Automatic

Aug.

Dec. 8.

•

October 28
Southern

<

it Atomic Development Mutual
Fund, Inc.
Oct. 22 (filed
amendment) 3,000,000 additional shares
of capital stock (par $1).
Price—At market. Proceeds—

American

Buyers Insurance Co., Phoenix, Ariz.
Aug. 18 (letter of notification) 2,500 shares of com¬
mon stock,
being offered to stockholders of record Aug.

to

Salt

New York, N. Y.

(various
and em¬

•

Oct.

—For

299,500 shares of com¬
Price—$1 per share. Proceeds
incident to drilling for magnetic iron ore.
Ark.
Underwriter—Eaton & Co.. Inc.,

on

Proceeds—To

ISSUE

purchase certain oil and gas production and un¬
developed leases from the Southern Union Gas Co.* re¬
tire bank loans and to increase
working capital. Under¬
writer—None.

stock.

(par 25 cents).

REVISED

tion to

Arco

Uranium, Inc., Denver, Colo.
Sept. 7 filed 2,500,000 shares of common
stock, of which
1,000,000 shares are to be publicly offered,
1,000,000
shares in exchange for
property and 300,000 shares to be
optioned to Benjamin Arkin,
President, and 200,000
shares to be optioned to underwriters.
Price—At par (50
cents per share). Proceeds—To
repay advances and loan
from Mr. Arkin, purchase
equipment and for explora¬
tion and development
expenses.
Underwriter

PREVIOUS

ITEMS

held; rights expire

supplied by amendment.

.

B

shares

seven

LA

•

ADDITIONS

SINCE
•

'•

-

* INDICATES

$18,000,000

Debentures

*

Boston

Philadelphia

v.Ziv.
"

Pittsburgh

San Francisco

Private fVires to all

offices

Chicago

Cleveland

54

•4.

\

Continued from page 53

& Co.; The First Boston

*-:*■

-

Underwriter

corporate purposes.

„

•-

i

'+■*

Barrett Herrick * &.

—

Campbell Soup Co.
27

Oct.

-

shares of capital

1,300,000

filed

stock (repre¬

stock of the company). Price
To be supplied by amendment.
Proceeds—To Estate
of Dr. John T. Dorrance.
Underwriter—The First Bos¬
Corp., New York.

ton

Canadian

Delhi

•

Petroleum Ltd.,

Cane Springs

'

Calgary, Can.

•

Uranium Corp.

Sept. 16 (letter of notification) 1,200,000 shares of com¬
mon stock
(par one cent). Price—25 cents per share.
Proceeds—For jexploration and development costs^ Of¬
fice—404

N.

2nd) West, Salt Lake City, Utah.

Continental

Under¬

McKafe Corp. of America

quire claims and mining equipment, erect and equip
<> processing plant, and for working capital.
Office—Nantahala Bldg., Franklin, N. C.
Underwriter — Allen E.

Uranium

Milling Corp.,

,

Proceeds
—

of New York.

'Z

4

Certajn-teed Products Corp., Ardmore, Pa.

Sept. 28 filed 412,950 shares of common stock (par $1)
to be offered in exchange for 825,900 shares of capital
stock

of Wm. Cameron & Co., Waco, Tex., at
of Certain-teed, plus $11.50 per

(par $7)

rate of one-half share

13

Cherokee Utah Uranium Corp.

Chesapeake Industrie^, Inc.
15 filed 996*304 shares of common stock (par $1)
33,818 shares of $4 cumulative preferred stock (par
$10) to be offered in exchange for preferred and com¬
mon shares of Home & Foreign Securities Corp. and Oils
& Industries, Inc., common shares of common stock of
Intercontinental Holdings, Ltd. and Intercoast Petroleum
Corp. and capital stock of Colonial Trust Co. The offer
is subject to deposit of not. less than 90% of the stock
Oct.

and

the

u

first

three

than

companies

80%

of

the

stock

of

mentioned above.

it Colorado Fuel & Iron Corp.
Oct. 18 (letter of notification) 3,853 shares of common
stock (no par). Price—At market ($18.75 per share on
New York Stock Exchange on Sept. 30).
Proceeds—To
Allen & Co., New York.
Underwriter—J. R. Williston
& Co., New York.
Colorado

Aug. 23

Mining Corp.,

300,000 shares of com¬
mon stock
(par 10 cents). Price—At the market (esti¬
mated at $1 per share).
Proceeds—To certain selling
Underwriter—L. D. Friedman & Co., Inc.,

and

Colorado Oil & Gas Corp.,

$25), to be offered
Derby Oil Co. on a

Denver, Colo.

(11/4)

preferred stock

(par
in exchange for common stock of
share-for-share basis. Underwriter

—Union Securities

Corp., New York, and associates will
offer to purchase any of the preferred shares issued
at $25 per share and accrued dividends.

Columbia Telephone Co.
Sept. 16 (letter of notification) 5,000 shares of common
stock (par $25) being offered to common stockholders
of record Sept. 30, 1954, on the basis of five new shares
for

each

13

Price—$40
eration

shares

per

and

held;

share.

for

pany's facilities.
Pa.

rights

to expire on Oct.
Proceeds—To convert to dial

modernization

and

expansion

Office—40 North Third St.,

of

31.
op¬

com¬

Columbia,

Underwriter—None.

Commodity Holding Corp.
6 (letter of notification) 1,460,000 shares of com¬
mon stock
(par five cents). Price—20^cents per share.
Proceeds—For working capital.
Business—Trading in.
commodities.
Office—15 Exchange Place, Jersey City,
Oct.

N. J.

writer—None.

Underwriter—Batkin

&

Co., New York.

Consol. Edison Co. of New York,

Inc.
April 7 filed $50,000,000 of first and refunding mort¬
gage bonds, series K, due May 1, 1984. Proceeds—To be
applied towards cost of redeeming $27,982,00(1 New York
Steam Corp. first mortgage bonds and $25,000,000 West¬
chester Lighting Co. general mortgage bonds. Under¬
writer—To be determined by competitive bidding. Probable bidders: Halsey, Stuart & Co. Inc.; Morgan




'

General Telephone Co.

'

T

4

of Pennsylvania

;

•

preferred stock <no

Oct. 7 filed 30,000 shares of $2.25

par). 'Price—To be supplied by amendment. Proceeds
—To repay bank loans and for additions and improvements; Underwriters—Paine, Webber, Jackson & Curtis,
and Stone & Webster

Securities Corp., New York. Offer¬

ing—Expected today (Oct. 28).

Stanley

—

.

Gulf States Utilities

Co.-v.f;Jk.'V,7

""C

V-

.

May 14 filed 160,000 shares of preferred stock (par $100).

Proceeds

To- redeem 50,000 shares of J$4.50 .dividend

:*—•

preferred stock, 60,000 shares of $4.40 dividend preferred;
stock, 1949 series, and 50,000 shares of $4.44 dividend ~
preferred stock at the prevailing redemption prices of:

10 cents).

(par

Underwriter—20th Century Pioneer SecuriCo., New York.
: '/•

Co. (jointly).

ties

Bids—Had tentatively been expected to be
11:30 a.m. (EDT) 'on June 15 at $The
Hanover Bank, 70 Broadway, New York, N. Y., but of¬
fering has been postponed.
/

•

Dole

.

Brothers and Equitable Securities*Corp. (jointly); Kuhn,
Loeb & Co.; Glore, Forgan & Co. and W. C. Langley &
,

received

to

up

Engineering Co. 7 > \
Sept. 17 (letter of notification) $217,524 of 5% convert¬
Gulf States Utilities Co*
ible income notes due Jan. 1, 1961 being offered to stock¬
May 14 filed $24,000,000 of first mortgage bonds due
holders of record Oct. 14 on the basis of $1 of notes
June 1, 1984. Proceeds—To redeem $10,000,000 of 3%%
for each five shares of stock held; rights to expire on
first mortgage bonds due 1981 and $10,000,000 of 3%%
Nov. 10. Each $1 of notes is convertible into one share
first mortgage bonds due 1983, and for general corpo¬
of common stock (par $1).
Price—At par. Proceeds—
rate purposes.
Underwriter—To be determined by com-*
For working capital.
Office—58 Sutter St., San-Fran¬
petitive bidding.
Probable bidders: Halsey, Stuart &
(James)

.

.

-

.

Underwriter—None.

cisco,4 Calif.
Eldorado

Uranium

stock

Co. Inc.; Lehman Brothers; Merrill Lynch, Pierce, Fenner
& Beane and White, Weld & Co. (jointly); Salo¬
mon Bros. & Hutzler and Union Securities Corp.; Kjuhn,

*

Corp., Austin, Nev.

»

-

one cent).
Price—10 cents per share.
exploration and development costs. Un-

Loeb & Co.

Higginson

,

Las Vegas, Nev.

it Eula Belle Uranium, Inc.. *
Oct. 18 (letter of notification) 5,000,000 shares of com¬
mon stock
(par one cent).
Price—Five cents per share.
Proceeds—For exploration and development expenses.Office—506 First Security Bank Bldg., Salt Lake- City,
Utah.
Underwriter—Utah Securities Co., same city.
.

,

to be offered publicly at $10
share and 35,000 shares to be sold to V. V. Jacomini,
a
partner of Tehuantepec Co., on an investment basis,
at $8.50 per share.
Proceeds — For operating expenses
and exploration development.
Underwriters — For the

then to public.
Price—5% cents per share.
expenses incident to gas activities (and
possibry uranium). Office—527 Ernest & Cranmer Bldg.,

Farnan

Securities

Hawaiian

Corp.,

Sept.

8.2

the

basis

shares

of

of

rights to expire
construction

stockholders of record Oct. 4
share of preferred stock for each

one

stock

held;

rights to expire

Proceeds

capital.

writers—T.

par ($50 per share).
Proceeds—For working
Office—752 N. Highland Avenue, Los Angeles,

Fidelity Acceptance Corp., Minneapolis, Minn.
Aug. 30 filed 6,000 shares of 7 % cumulative preferred
stock (par $25), to be offered to employees; $900,000 of
5%% capital debentures and 24,000 shares of 6% cumu¬

writers—M.
B.

I.

H.

reduce

(par $25).

outstanding

Bishop

bank

;

^

&

.

Corp., New York
250,000 shares of 7% cumulative sinking
fund preferred stock. Price—At par ($2 per share). Pro¬
working capital.
tain & Co., Inc., New York.

Underwriter—E.

J.

Foun¬

Under¬

purposes.

Inc.

and

Becker

East Fourth South St., Salt Lake

Brokerage Co., of the

&:

City, Utah.
same

it Howard Stores Corp. (11/1) Oct. 19 (letter of notification) 10,858 shares of
stock
mon

(par

$1).

Price—At market.

stockholders

of

Foreman

&

city.

common

Proceeds—To com¬
Clark, Inc. who ex¬

changed their shares for Howard Stores stock. Office—
40 Flatbush Avenue Extension, Brooklyn 1, N. Y.
Un¬
derwriter—None.

Husky Oil Co., Cody, Wyo.

~

Sept. 29 filed 14,899 shares of 6% cumulative _.^st pre¬
ferred stock (par $100).
Price — To be supplied by
amendment. Proceeds—To purchase outstanding shares
of prior

preferred stock of Gate City Steel Works, Inc.

of Omaha, and for drilling expenses, etc.
First Trust Co. of Lincoln, Neb.
International

Bankers

Life

Underwriter—

Insurance

Co.r

Uranium-Mine*'Ltd.4CmmkS^^.£:•'.Sept:--29 (letter of notification) 12,500 shares of

Aug. 10 (Regulation "D") 300,000 shares of cornmenrstGck.
and

Co.,

Uranium Corp., Salt Lake City, Utah
Aug. 23 (letter of notification) 3,000,000 shares of capital
stock (par one cent).
Price—10 cents per share. Pro¬
ceeds
For exploration - and development
expenses.
Underwriter—Cromer

Gateway Uranium Corp., Salt Lake City, Utah. Sept. 10 (letter of notification) 1,192,000 shares of com¬
mon stock
(par 20 cents). Price — 25 cents per share.
Proceeds—For exploration and development costs, etc.
Office—Hotel Newhouse, Salt LakefCity, Utah. -Under^^
writer—Muir, Dumke & Co., Salt Lake City, Utah, and
Las Vegas, Nev.

tion

&

—

Corp., Grand Junction, Colo.
Aug. 16 (letter of notification) 300,000 shares of com¬
mon stock.
Price—At par ($1 per share). Proceeds—For
exploratory and development expenses.
Office — 618
Rood Avenue, Grand Junction, Colo.
Underwriter —
Joe Rosenthal, 1669 Broadway, Denver, Colo.

Price—At

corporate

York, N. Y.

Office—65

Four States Uranium

Gatineau

general

Henderson

Homestead

filed

ceeds—For

For

C.

Headley (George L.) Associates, Inc.
/
15 (letter of notification) 295,000 shares of com¬
mon stock (par 10 cents).
Price—$1 per share. Proceeds
—For working capital. Underwriter—F. M. Hall & Co.,
New

Price—At par.
loans. Under¬

Co.,- Minneapolis, Minn., and
Barnes, Boulder, Colo.

29

—

Oct.

Financial Credit

Jan.

Nov. 4. Price—At par. Proceeds—For
Underwriter—None.

Cownie, Inc., both of Des Moines, Iowa.

Underwriter—None.

Proceeds—To

on

Hawkeye-Security Insurance Co.,
4 (letter of notification) 6,000 shares of 5% cum¬
ulative preferred stock. Price—At par ($50 per share)..»

Price—At

lative class E preferred stock

Ltd., Hono!uIu

Oct.

on

Unsubscribed shares to be offered to employees.

Nov. 17.

Co.,

program.

common

common

Electric

14 filed 50,000 shares of common stock

(par $20)
being offered for subscription by stockholders at rate of
one
new
share for each 13 shares held as of Sept. 28;

Seemann, Inc., Los Angeles, Calif.
Oct. 11 (letter of notification) 2,000 shares of 6% cu"
mulative convertible preferred stock to be offered for
by

share).: Proceeds—For explora-^
development costs. Office — 100 Adelaide St.
par

($1

-

57,310 shares, Fridley & Hess and Crockett & Co., both
of Houston, Tex.

&

subscription

Gulf Sulphur Corp., North Kansas City, Mo.

per

Proceeds—For

First

C. Allyn &

and

of which 57,310 shares are

of 40 days;

—

-

Corp.

Sept. 15 filed 92,310 shares of 60-cent cumulative con¬
vertible preferred and participating stock (par 10 cents),

it Fallon Gas Corp., Denver, Colo. '
Oct. 20 (letter of notification) 5,400,000 shares of com¬
mon stock
(par five cents) to be offered for subscription
by stockholders of Colo-Kan Fuel Corp. for a period

Denver, Colo.
Underwriter
Philadelphia, Pa.

and A.

Co*, Inc. (jointly); Lee
Carl M. Loeb, Rhoades. &. Co~
(jointly); Stone & Webster Securities Corp. Bids—Had
tentatively been expected to be received up to 11 a.m.(EDT) on June 15 at The Hanover Bank, 70 Broadway,
New York, N. Y., but offering has been postponed.

(par

Proceeds—For

Calif.

New York.

Oct. 7 filed 487,820 shares of $1.25

Under¬

Office—Washington, D. C.

corporate purposes.

sack, N. J.

on

Denver, Colo.

(letter of notification)

stockholders.

filed 50,000 shares of class A common stock
Price—$10 per share. Proceeds—For general

»

derwriter—Allied Underwriters Co.;

less

j

Co.

"

(letter of notification)

Office—65 East 4th South,
Salt Lake City, Utah. Underwriter—Cromer Brokerage
Co.,-Salt Lake City, Utah.
-

not

14

(par $1).

Sept. 15 (letter Of notification) 2,500,000 shares of com¬

ceeds—For mining expenses.

and

Underwriter—None.

Sept.

stock

mon.

Colonial

each Consolidated share.

General Services. Life Insurance

Beverage Co.

June 24 (letter of notification) 6,000,000 shares of capital,
stock (par one cent). Price—Three cents per share. Pro--

of

ing.

Price—$1 per share. Proceeds—
working capital Business—In orthopedic appliance
allied fields. Office—151 Hackensack Ave., Hacken^

stock

■

'■*

of General Gas for

I $105, $105, and $105.75, respectively.
Underwriter^-To
it Direkt-Form Corp. (N. J.)
'./VY"
v..: (be determined by competitive bidding. Probable bidOct. 21 (letter of notification) 50,000 shares of common • \ders:
Stone
&
Webster Securities
Corp.; ■*Lehman

share in cash for each ^hare of Cameron stock.
**

share

subject to deposit of at least 175,000 shares
Consolidated stock out of 210,000 shares outstand¬

of

(10/29)

—

Empire Bldg., Denver, Colo. Underwriters—
Gearhart & Otis, Inc., and Jay W. Kaufmann & Co., both

Office

a

/ - Great Chief Uranium Co., Salt Lake City, Utah,
Inc;-1.(11/17)
Sept. '20 (letter of Inotification) 20,000,000 shareS"Of
2,000,000 shares of com¬
common
stock. Price— At par (one cent per share).
(par one cent). Price—15 cents per share.'
Proceeds
For exploration and development costs, etc.
Proceeds—For exploration and development costs. .Of¬
Office
412 Walker Bank Bldg., Salt Lake City, Utah. „
fice—1028 First National Bank Building, Denver, Colo.
i > Underwriter—Havenor-Cayias, Inc., same cityw.-A
*
v
Underwriter—Tellier & Co., Jersey City, N. J<
^

For

Denver, Colo.

600,000 shares of com(par pne cent). Price — 50 cents per share.
For exploration and development expenses.

stock

stock (par

The offer is

.

(letter of notification)

Sept. 27
mon

&

of

it Desert Uranium Co., Salt Lake City, Utah !*18 (letter of notification) 2,008,000 shares of com-r'
mon stock Price—At par (15 cents per share). Proceeds
-For exploration and development expenses. j Office—
524 Atlas Bldg ," Salt Lake City, Utah.
Underwriter—
Van Blerkom & Co., same city. ;
i
/.v,;

7, Pa.

Co.,: Western Savings Fund Bldg., Phila.

Central

143,500 shares of common

Sept. 22 filed

Oct.

Aug- 19 (letter of notification) 299,000 shares of common
stock. Price—At par ($1 per share). Proceeds—To ac¬

Beers

*.

„

being offered in exchange, for common stock of Consol¬
idated Gas Co. of Atlanta, Ga., on the basis of 63/100ths

.

Carolina Resources Corp.

v

:.

—

(letter- of notification) 100,000 shares of class
A stock (par 10 cents). Price—$3 per share. Proceeds—
To purchase equipment and machinery and for working
.capital. Office—615 Adams St., Hoboken, N. J. Under¬
writer—Garden State Securities, same city. '

"

.

Crescent Uranium Mines,

Oct.

City, N. J.

Sept. 17

•

Inc.

*

Gas Corp.

General
v

(11/3) <
*
- <
Aug. 27 filed 200,000 shares of common stock (par $1.50),
of"which;i20,000'shares are for the account of the com-*
pany and 80,000 shares for certain selling stockholders.
Price—To be supplied by amendment. * Proceeds—For *
expansion. Office—New Haven, Conn... UnderwriterIra Haupt & Co., New York.
Cott

mon

Caramba

Uranium,

Underwriter—McCoy & Willard,

market •?. Boston, Mass.

date set

_

Underwriter—None.

writer—Luster Securities & Co., Jersey

new

stock (par 10
cents).
Price—$2.50 per share.
Proceeds—To pay for
properties, for development and drilling program and
for general corporate purposes.
Office — Chicago, lit
Underwriter—Van Alstyne, Noel & Co., New York.

shares of capital stock (par 10 centsCanadian) being offered for subscription by stockhold¬
ers of record Oct. 15, at the rate of one new share for
each 12 shares held; rights to expire on Nov. 10.
Price—
$10 per share (U. S: funds) and $9.70 (Canadian funds).
Proceeds—To be advanced to Canadian Delhi Oil Ltd., a

—

No

Sept. 24 filed 500,000 shares of common

Oct. 5 filed 268,686

wholly-owned subsidiary.

Corp., Offering—OriginaUy set / West, Toronto, Canada.

II, but has been postponed because of

conditions.

—

senting 13% of the total

•

for May

^ Constellation Uranium Corp., Denver,. Colo.
Oct. 11 (letter of notification) 1,000,000. shares of com¬
mon
stock.
Price—At par (one cent per share).
Pro¬
ceeds
For exploration and
development expenses.
Office—206 Mercantile Bldg., Denver, Colo. Underwriter
—Petroleum Finance Corp., Oklahoma City, Okla.

Co., Inc., New York.
+

October 28,1954-

The Commercial and Financial Chronicle... Thursday,

(1754)

54

-

per

;

stock to

common
be offered for subscription by stockholders of

record Sept. 20, 1954 at rate of one -new^share for each
share held. Price—At par ($10 per share). Proceeds—

Volume 180

Number 5372 ...The Commercial and Financial Chronicle

(1755)

For addition to capital and to be invested in appropri¬
ate securities.
Office—Continental Life Building, Fort

Worth, Texas.

Marion River Uranium Co.
June 14 (letter of notification) 300,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For development expenses. Underwriter—Crerie &

Underwriter—None.

Co.,

Investment Corp. of America
Aug. 30 (letter of notification) 3,799 shares of cumulative preferred stock (no par) and 3,799 shares of
com-,
mon stock (no
par)/ Price—For preferred, $20 per share,
and for

Houston, Tex.
-

A, due July 1, 1962, and $95,000 of 6% debentures,
series B, due July 1, 1970. Proceeds—To acquire assets
and business of H. & T. McCluskey & Sons, Inc. Office
—527 Grand Avenue, New Haven, Conn. Underwriter—
Barnes, Bodell & Goodwin, Inc., New Haven, Conn.

common,

•

Israel-American Oil Corp. (10/29)
Oct. 5 filed 750,000 shares of common stock
(par 10
cents). Price—To be supplied by amendment. Proceeds
For exploration and
development program.
Under¬
writer—Bear. Stearns & Co., New York.

Mercast Corp., N. Y.
Sept. 30 (letter of notification) 5,000 shares of common
stock (par 10 cents).
Price—$4.75 net to sellers. Pro¬

—

Israel-Mediterranean

Petroleum,

01 Jato Uranium Co., Salt Lake City, Utah
Aug. 5 (letter of notification) 1,750,000 shares of common
stock (par one cent).
Price—15 cents per share. Pro¬
ceeds—For mining operations. Office—114 Atlas Bldg.,
Salt Lake City, Utah. Underwriter —
Rocky Mountain
Securities, the same city.
•

Old

series

$2 per share. Proceeds—For working
capital. Office—3603 Broadway, San Antonio, Tex. Un¬
derwriter—Interior Securities, Inc., San Antonio, Tex.

•

-F?nn+

T

June 21 <letter of notification) $95,000 of 5%.debentures,

ceeds—To Atlas

Corp. Office—295 Madison Ave., New
Underwriter—Franklin, Mayer & Barnett, New York City.
'
York

Inc.
(10/29)
certificates for

Sept., 21 filed American voting trust
900,000 shares of common capital stock (par one cent),
of which 750,000 shares are to be offered to
public. The
remaining 150,000 shares to be under option to under¬

17, N. Y.

55

Hickory Copper Co., Phoenix, Ariz. (11/15)
(letter of notification) 750,000 shares of common
10 cents). Price—40 cents per share. Pro¬
For mining expenses. Offices — Mayer-Heard

Oct. 7
stock

(par

ceeds

—

Bldg., Phoenix, Ariz., and 2 Broadway, New York, N. Y.
Underwriter;—General Investing Corp., New York.
Oregon Washington Telephone Co.
(letter of notification) 1,000 shares of 5% cumu¬
stock to be offered for subscription by
present preferred stockholders on an allotment basis;
rights to expire on Nov. 19, Price—At par ($100 per
share).
Proceeds—To retire bank loan.
Office—Hood
River, Ore. Underwriter—Zilka, Smither & Co., Inc.,
Oct. 7

lative preferred

#
Merrit-Chapman & Scott Corp.
Sept. 7 filed 448,868 shares of common-stock (par $12.50)
Portland, Ore.
■
■'/ ■
'•
//■
being offered in exchange for stock of the Marion
writers. Price—Last sale on American Stock'
Exchange X
Pacific Telephone & Telegram Co. (11/16)
Power Shovel Co. and Osgood Co. on the basis of three
V
^
ok
day preceding the offering. Purpose—FOr exploratory
a„~ at
I; shares for each two Marion Power common shares, and
*
drilling and development of presently held acreage in
*
1
war
two shares Tor each three shares of OsgoodGb/s class A
; H»;
Israel. Underwriter—Gearhart &
Otis, Inc., New ^Tork;" :
istJ
and class B stock not held oy Marion Power Shovel C*F4% deb«ntures du« Sept. 15, 1984. Underwriter—To be
r'_•
;
*
"v
determined, by competitive bidding. Probable bidders;
The offer will expire on Nov. 15.
Laboratory/for Ele,ctronjcs*r'lnc«r<Boston, Mass.
Underwriter—None.
-Oct. 14 (letter of notification)
Halsejr; Stuart & Co.. Inc:TMorgan Stanley & Cor; White,
16,000 shares of common
+ Metals 4k Mines
Weldr & Co., Lehman Brothers- and Union Securities
Co., Reno, Nev.
~ r
stook (par $1).
Price—$18 per share. Proceed^To TO
/•
i
j-r»
a
-r*
w
WOct*&3 (letter"ofTio'fification) 2,950,000 shares of class
Corp. (jointly). "BidsExpected to be received at 195
~

,

q<?q PrnfrpHPPt %nt^f-^1

■

:

■

,

.

.

■

_

-75

St/Boston|nMa^s'n^ndemrHer

Pitts

Atherton &

Co.,

same

city.

'

^ c0mm0n stoc'c' Trice 10 cents
^or exploration and development

Schirmer,

,

Ladortc Mines

Ltd., Montreal, Canada /
(regulation "D") 600,000 shares of common
stock (par five cents). Price—50 Cents
per share.
Proceeds—For exploration, etc/ Office—3455
Stanley St.,
Montreal, Canada.' Underwriter
Daggett Securities,
July

if Mexican Gulf Sulphur Co.

30

(11/15-18) /*-

Oct. 22 filed 200,000 shares of common stock (par 100).
Price—To be supplied' by amendment.
Proceeds—^For

equipment, capital improvements and working capital.
Underwriter—Van Alstyne,. Noel & Co., New York.

—

Inc., Newark, N. J.

shar* Proceeds-

per

expenses. Office—220
Virginia St., Reno, DJeV: "Underwriter—None.

South

Mines, Ltd., Toronto,

Aug. 2 filed 660,000 shares of

common

Canadian), of wfrich 500,000 shares
behalf
of

of

the

and

company

Percy E. Rivett. Price—40

160,000

are

stock

shares

cents per

(par

for

W Missouri

account

share, U. S. funds.

development and exploration expenses.
Underwriter—To be named by amendment.

^Land-Air, Inc., Chicago, III.
1
Oct. 14 (letter of
notification) $300,000 of 6%
notes

10-year
1, 1964 to be offered for subscription by
and California Eastern Airways,

due Nov.

employees of

Nov. 50, 1854.

Price—
At par.
Proceeds—For working capital. Office—201 N.
Wells St., Chicago, 111. Underwriter—None.
on

writers.

■

company

Inc., its parent; offer to expire

mon

Oct.

21

Co.

filed

wards &

Monte

Cristo

~

Underwriter—James E. Reed Co., 139 North Virginia
Nev.

-

.

.

Uranium, Inc.

(letter of notification) 600,000 shares of com¬
(par one cent). Price — 50 cents per share.
Proceeds—For exploration and development costs. Of¬
stock

fice—100

West

—Hale & Co.,
•

10th

St., Wilmington, Del.

Underwriter

Salt Lake City, Utah.

Pan-Israel

Oil

Co., Inc. (10/29)
voting trust certificates for
900,000 shares of common capital stock (par one cent),
of which 750,000 shares are to be
publicly offered. The
remaining 150,000 shares are to be optioned to under¬
Sept.

21

filed

American

Price—Last sale

on

American Stock Exchange

day preceding the offering.

Proceeds—For exploratory
drilling and development of presently held acreage in
•

Uranium

Corp., Moab, Utah
Oct. 5 (letter of notification) 3,000,000 shares of com¬
mon
stock (par one cent).
Price—10 cents per share.
Proceeds—For exploration and development expenses.

—

Pan-American

^d-^ ^srae1. Underwriter—Gearhart & Otis, Inc., New York.

Sons, St. Louis, Mo., and 12 others.

Oct.

Liberty Uranium Corp., Salt Lake City, Utah
July 1 (letter of notification) 3,000,000 shares of common
stock
(par one cent).
Price—Three cents per

Insurance

202,320 shares of capital stock (par $5).
Price—To be supplied by amendment.
Proceeds—To
certain selling "stockholders.
Underwriters^—A. G.

if Leadville Lead & Uranium Corp., Denver, Colo.
15 (letter of
notification) 200,000 shares of com¬
mon stock (par
$1). Price—$1.25 per share. Proceeds—
For exploration and
development costs. Office
718
Syipes Bldg., Denver, Colo. Underwriter—None/'• '

.

Sept. 20

outstanding shares of $6 cumulative preferred stock
(no par)
on
a
share-for-share basis
(with a cash
adjustment). Underwriter—To be determined by com¬
petitive bidding.
Probable bidders: Union Securities
Corp. and Equitable Securities Corp. (jointly); Lehman
Brothers; Blyth & Co., Inc. and Shields & Co. (jointly);
White, Weld & Co. and Kidder, Peabody & Co. (jointly);
W. C. Langley & Co. and The First Boston Corp. Offer¬
ing—Temporarily postponed.

Proceeds —For

(EST)

a.m.

if Painted Desert Uranium & Gil Co., Inc.
Oct. 18 (letter of notification)-12,000,000 shares of cortistockr Price—At*par X'one cent per share). Proceeds
—For exploration and development costs.
Offite—737
Peyton Bldg., Spokane, Wash. Underwriter—None, sales
to be made ,through William M.
Fredericks, Secretary-

of

$1,

11:30

mon-

?3?;ftt&d:44j476 shares of cumulative preferred stock
(par $T00) to be offered in exchange for a like number

to be offered in

to

up

Treasurer of company.

~

.^^Mississippi Power & Light Co.
Lake Lauzon

Broadway, New York, N. Y.,
On Nov, 46.

.

share/s^Monterey Uranium Corp., Salt Lake City, Utah
mining operations.
Office—402-DarUng ::/A^a5/(letter Of notification) 1,500,000 shares of comBldg., Salt Lake City, Utah.
Underwriter
Uranium
mon
stock (par 10 cents).
Price—20 cents per share.
Mart, Inc., 146 S. Main St., Salt Lake City, Utah.
•
Proceeds^-Forvmining, operations. Underwriter—Muir,

Proceeds—For

Panellit, Inc., Skokie, III.

Oct.

19

filed

(11/9)

105,000 shares of

of which 60,000 shares

are

-

common

—

stock

(par $1),

for the account of the

com¬

pany and

45,000 shares for the account of certain selling
stockholders.
Price
To be supplied by amendment.
Proceeds—For expansion program. Business—Manufac¬
—

tures modern automatic control and data reduction
sys¬
Underwriter
Bear, Stearns & Co., and Lehman
Brothers, both of New York.
tems.

—

,

Lincoln Telephone &
Telegraph
Sept. 22 (letter of notification) 9,623 shares of common
stock
(par $16%) being offered for subscription by

Sept. 24 (letter of notification) 40,000 shares of

stockholders of record

stock/ Price—At

Sept. 1

share for each 19 shares

Price

1954.

on

the

basis of

held; rights to expire

$26 per share.
Proceeds
capital. Office—J.342 M St., Lincoln, Neb.
None.

'■/•;.

Loma

June

—

one

on

new

Nov. 2,

For working
Underwriter—

—

Corp.,

18

filed 1,000,000 shares of common stock
(par 10
Price—$1.25 per share. Proceeds—For explora¬
development costs, purchase of equipment, and
reserve for acquisition of
additional properties. Under¬
writer—Peter Morgan &
Co., New York.

cents).

tion and

Lorain

Telephone Co., Lorain, Ohio
(letter of notification) 2,500 shares of common
(no par) to be first offered for subscription by

Sept. 7
stock

stoekholders.
imburse

additions

Lorain,
Lunn

Price—$20

treasury
to

for

property.

Ohio.

per

share.

expenditures
Office—203

Proceeds—To

already
West

made

Ninth

for

Street,

Underwriter—None.

Laminates,

Road

Huntington,

and

N.

West

Y.

11th

Street, Huntington

Underwriter

—

Station,
Fahnestock & Co.,

New York.
Mac

stock

Natick

Industries, Inc., Natick, Mass.

10

(letter of notification) 58,800 shares of com¬
(par $1). Price—$5 per share. Proceeds—For
working capital, etc. Underwriter—J. P, Marto & Co.,
stock

Boston, Mass.
National Fuel

(par

cent).

Price—Three cents per share
Proceeds—For exploration and develonment costs. Office
—239 Ness Bldg., Salt Lake
City, Utah. Underwriter—
one

Utah Securities Co., same city.

Office—65 East 4th South, Salt Lake City, Utah. Under¬
writer—Mid-Coninent Securities, Inc., the same city.

ic Magic Uranium Co., Inc., Salt Lake City, Utah
15 (letter of notification) 3,000,000 shares of com¬
stock (par one cent).
Price—10 icents per share.

Oct.

mon

development and exploration

fice—529'Newhouse Bldg.,

Salt Lake Ghty,
derwriter—I. J. Schenin Co., New York.
\

of record Nov. 8




on

the basis of

one

new

share for each

shares held
(with an oversubscription privilege);
rights to expire Nov. 29.
Proceeds—For investments in
and

advances to subsidiaries.

New
June

Underwriter—None.

Mexico

Copper Corp., Carrizozo, N. M.

(letter of notification) 198,000 shares of capital
(par 25 cents). Price—50 cents per share. Proceeds
—For acquisition of power plant, improvement of
mill,

development of properties and general corporate pur¬
poses. Underwriter—Mitchell Securities, Inc., Baltimore,
Md.

■

.

New Silver Belle Mining Co., Inc.,
Almira, Wash.
Sept. 8 (letter of notification) 500,000 shares of common
stock (par two cents). Price—10 cents
per share.
Pro¬

exploration and development costs.

Under¬

writers—Percy Dale Lanphere and R. E. Nelson & Co.,
both of Spokane, Wash.
Northern California

Plywood, Inc.
Sept. 13 filed 300 shares of common stock
and

5,000

shares

stock

of

5%

cumulative

(par $100).

(par $5,000)
participating pre¬

Price—At

par.
Proceeds—To
purchase properties of Paragon Plywood Corp. and pur¬

chase

of

raw

materials..

Office

—

Crescent

City,

Calif.

Underwriter—None. Sales to be made through Raymond
Benjamin Robbins.
Northern Oil & Gas Corp., Bismarck, N. D.
Sept. 16 (letter of notification) 250,000 shares of 6%
preferred stock (par $1) and 50,000 shares of common
stock (par $1) to be offered in units of five shares of
preferred and one share of common stock. Price—$6 per

costs.

Of¬

unit.

Proceeds—For oil

Un¬

408Vz

main

-

/,

■

western

St.,

and

Bismarck,

Investment Co.,

N.

gas

D.

exploration.
Office—
Underwriter—Trans-

Inc., Dallas, Tex.

mining expenses. Office—325 Main St., Moab, Utah.
Underwriter—Van Blerkom & Co., Salt Lake
City, Utah.

if Pay Day Uranium Co., Las Vegas, Nev.
(letter of notification) 2,500,000 shares of capital
stock (par two cents).
Price—10 cents per share. Pro¬
ceeds—For exploration and development costs. Office—
230 Fremont St., Las
Vegas, Nev. Underwriter—Allied
Underwriter Co., the same city.
Oct. 15

Peabody Coal Co.* Chicago, III.
July 14 (letter of notification) 17,300 shares of 5%
vertible prior preferred stock (par
$25). Price—At

con¬

mar¬

ket

(estimated at $11.75 per share). Proceeds—To cer¬
tain selling
stockholders.—Underwriter—Fairman, Har¬
ris & Co., Inc., Chicago, 111.
Peerless Casualty Co.,
Keane, N. H.
Sept. 24 filed 170,000 shares of common stock (par $5)
being offered for subscription by common stockholders
on

14

stock

Utah.]
~<t

(11/8)

ten

ferred

Magic Metals Uranium Corp.
Sept. 14 (letter of notification) 2,995,000 shares of com¬
mon stock
(par one cent). Price — 10 cents per share.
Proceeds—For exploration and development expenses.

Proceeds—For

Gas Co.

Sept. 29 filed 381,018 shares of common stock (no par)
to be offered for subscription by common stockholders

ceeds—For

Fos

Uranium, Inc., Salt Lake City, Utah
Sept. 16 (letter of notification) 4,000,000 shares of com¬
mon

common

re¬

Inc.
Oct. 15 (letter of notification) 8,000 shares of common
stock (par 25 cents). Price—At market (about $5.75
per
share). Proceeds—To selling stockholder. Office—Oakwood

For

Pawtucket, R. I.

par ($7.50 per share).
Proceeds—For
Office—45 Washington St., Pawtucket,
Underwriter—Barrett & Co., same city.

mon

Denver, Colo.

City, Utah.
Inc.,

working capital.
R. I.

March

;.

Uranium

^
Moore Fabrics,

Paramount Uranium Corp., Moab, Utah
(letter of notification) 6,000,000 shares of capital
stock. Price—At par (five cents per
share). Proceeds—
Oct. 7

of

the basis of
record

$26

per

plus.

Oct.

share.

one

15;

new

share for each two shares held

rights to

expire

Proceeds—To

on

increase

Nov.

2.

Price—

capital and

sur¬

Underwriter—Kidder, Peabody & Co., New York.

★ Penn Fruit Co., Inc.

(11/8)
~
22 filed 100,000 shares of cumulative convertible
preferred stock (par $50).
Price — To be supplied by
amendment.
Proceeds
For
expansion program and
working capital.
Underwriter—Hemphill, Noyes & Co.,
.

Oct.

—

New

York.

if Penn
Oct.

22

„

Fruit
filed

Co.,

,

,

Inc.

(11/8)
100,000 shares of common stock

(par $5)T
supplied by amendment.
Proceeds—To
certain selling stockholders.
Underwriter — Hemphill,
Noyes & Co., New York,
Price—To

be

Peoples Securities Corp., New York
Aug. 11 filed 74,280 shares of capital stock. Price—$11
per share.
Proceeds—For investment. Office—136 East
57th

Street, New York, N. Y.

Underwriter—None.

if Petersburg & Hopewell Gas Co.
Oct. 15 (letter of notification) 13,750 shares of common
stock (par $10) to be offered for subscription by stock¬
holders; then to public. Price—To stockholders, $11.75
per share; and to public, $12.75 per share.
Proceeds—
For additions and improvemerfts to property, etc. Office
—22

S.

Sycamore

St.,

Petersburg,

Va.

Underwriter—

None.

Continued

on

page

56

56

Continued from page

Oct.

8

75,000 shares of capital
Price—At market (approximately
Proceeds — For working capital.

share).

per

Moab, Utah

subsidiaries, to purchase additional sales contracts, and
for working capital.
Office—1224 Sumter St., Columbia,
S. C.
Underwriters—Powell & Co., Fayetteville, N. C.;
Lloyd E. Canady & Co., Raleigh, N. C.; Smith-Clanton
& Co., Greensboro, N. C.; and Frank S. Smith & Co., Inc.,
Columbia, S. C.

of notification)

(letter

(par 15 cents).

cents

33

rants to purchase 15,000 shares of common stock). Price
—Of stock, $2.62V2 per share; and of debentures, at par.
Proceeds—To invest in capital stock of wholly-owned

55

Pioneer Uranium Corp.,

stock

Underwriter—Harrison

Brothers

S.

Co.,

&

Salt

Lake

City, Utah.

it Plateau Uranium Oil Exploration Co.
Oct. 14 (letter of notification) 5,000,000 shares of com¬
stock.
Price—At par (one cent per share). Pro¬
exploration and development expenses. Of¬
North 14th St., Las Vegas, Nev. Underwriter

ceeds—For

fice—117 B
—None.

;,:V

'</

.

it Preformed Line Products Co., Cleve'and, Ohio
Oct. 15 (letter of notification) 7,000 shares of common
stock (par $10).
Price—$40 per share. Proceeds—For
new
plant. Business — To manufacture and sell pre¬
armor

Office—53^.5 St. Clar

rods and dead-ends.

Southwestern Financial Corp., Dallas, Texas
Aug. 30 (letter of notification) 285,000 shares of common
stock (par 10 cents) being offered first for subscription
by stockholders of Texas Industries, Inc. (with a 14-day

Underwriter—-None.

Ave., Cleveland, Ohio.

Quaker Warehouse Co., Inc., Philadelphia, Pa.
10 filed $900,000 of 10-year 6% debent u *s due
Sept. 1, 1964, to be offered to stockholder members of
Quaker City Wholesale Grocery Co., a 100% cooperative
retail grocer owned organization.
Price—At par. Pro¬
Sept.

Price—$1 per share. Proceeds—To purchase
equipment and for working capital.
Underwriters —
Rauscher, Pierce & Co., Dallas, Texas; and Russ & Co.,
San Antonio, Texas.

Underwriter—None.

improvements.

it Sperry Rubber & Plastics Co.
Oct. 14 (letter of notification) $125.0C0 of 4% first mort¬
gage bonds due Nov. 15, 1974.
Price—At par (in de¬
nominations of $500 each). Proceeds—For general cor¬
porate purposes.
Office—31 West 7th St., Brookville,

Rapid Film Technique, Inc., N. Y. City
July 30 (letter of notification) 60,000 shares of com¬
mon
stock (par 10 cents).
Price—$2 per share. Pro¬
ceeds—For working capital. Office—21 West 46th Street,
New

York

N.

36,

Future Estate Planning- 630 McLean

Stardust, Inc., Reno, Nev.
July 9 filed 621,882 shares of preferred stock (par $10)
and 621,882 shares of common stock (par one cent) to be

it Raymond Corp., Greene, N. Y.

bet.

(letter of notification) $22,050 of 10-year 5^2%
debenture bonds and $225,000 of 10-year 5V2% debenture
21

bonds, second

Price—At

series.

offered in units of

—$10.01

(in denominations

par

$100, $500 and $1,000). Proceeds—For additions
improvements. Business — Manufactures material

—None.

,.v

■

Oct.

Price—At

par

($1

share).

per

of

common

other

—

To

bank

Price—$11.60

loans,

repurchase

com¬

general corporate purposes.

to

—

333

Scott,

..

to

Ala.,

the

5%

bonds

$1,000 bond

shares

per

holders

first

shares

of

the

mortgage

(par $1)

$1,300,000 City of
industrial develop¬

to and including Aug. 31, 1958;
bond thereafter and up to and

up

including Aug. 31, 1963; 250 shares thereafter and up
to and including Aug.
31, 1968; and 200 shares there¬
after to Oct. 15, 1977. It is the present intention of the
management of the company to hold any bonds so
thereon.

of receiving tax-free income
Underwriter—None.
purposes

Superior Uranium Co., Las Vegas, Nev.
Sept. 1 (letter of notification) 29,910,000 shares of com¬
mon stock.
Price—At par (one cent per share). Proceeds
—For development and exploration costs. Office—Medi¬
cal Arts Bldg., Las Vegas, Nev. Underwriter—Uranium
Brokers, Inc., the same city.

to repay

bank loans and for construction program. Un¬
derwriters—To be determined by competitive bidding.
Probable bidders:, Halsey, Stuart & Co. Inc.; Stone &
Webster Securities Corp. and Dean Witter & Co.
(jointly); Kidder, Peabody & Co. Bids—Expected to be
received up to 11 a.m. (EST) on Nov. 9.

Sytro Uranium Mining Co., Inc., Dallas, Texas
Sept. 9 (letter of notification) 2,975,000 shares of com¬
mon stock
(par five cents). Price-J0 cents per share.;
Proceeds—For exploration and development of
proper- >

Slick Rock Uranium Development
Corp.
Oct. 8 (letter of notification) 2,900,000 shares of common
jstock (par five cents), including shares for

ties.

option to
prior property owner to be amended.
Price—10 cents per share.
Proceeds—For development
and exploration expenses. Office—Newhouse
Hotel, Salt
Lake City, Utah. Underwriter — Van Blerkom &
Co.,
same city.
.
.
underwriter and

Office —1406

Texas.

Lake

Underwriter

Life
—

of

America

Western

Building, Dallas,

Securities

Corp.,

.

mon

Uranium & Oil Corp.,

Salt

City, Utah.

stock.

exploration

Price—10

cents

per

share.

com¬

Proceeds—For

and

development expenses.
Railway Exchange Building, Denver, Colo.
—E. I. Shelley Co., Denver, Colo.

Office

—

317

Underwriter

Tampa Marine Co., Tampa, Fla.
Sept. 28 filed 300,000 shares of class A stock (par $1), of
which Gulf-Atlantic. Inc., Tampa,
Fla., has agreed to
purchase for distribution not less than 165,000 shares
and to use its best efforts to sell the balance. Price—$3
per share. Proceeds — For construction of stevedoring

Somerset

Telephone Co., Norridgewock, Me.
(letter of notification) 2,200 shares of capital
stock. Price—At par ($5 per
share). Proceeds—For ex¬
11

new

facilities, purchase of additional barges and working
capital. Underwriter—Gulf Atlantic, Inc., Tampa, Fla.

equipment.

Underwriters—E H Stan& Co., Waterville, Me.; and Clifford J.
Murphy Co.."

Portland, Me.

.

*
,

...

.

,

.

.

Southeastern Fund, Columbia, S.

.

C.

6 % subordinated .sink-

due 1962 (with




Sept. 24

^

GcL 8 (letter of notification) 57,619 shares of ^common

f^^par SI ),$100,000 of 8-year
ing fund debentures

it Tarbell Mines, Ltd. (Canada) (11/8)1*
(Regulation "D"). 599,760 shares ..of .common
stock (par $1-—Canadian).Price—50 cents
per share,

'

•

stack purchase war¬

forts" basis.

Thunderbird Uranium Co., Reno, Nev.

(letter of notification) 1,800,000 shares of com¬
(par 10 cents). Price — 15 cents per share.

Aug. 3

stock

mon

Proceeds—For mining

activities. Office—206 N. Virginia

St., Reno, Neb. Underwriter—Stock, Inc., Salt Lake City.
Continental

Trans

Oct.

1

Uranium Corp.

2,990,000 shares of com¬
cents per share). Pro¬
ceeds—For exploration and development costs.
Office
—358 S. 3rd St. East, Salt Lake City, Utah. Underwriter
—Western Securities Corp., same city.
(letter of notification)
Price—At

stock.

mon

Triassic

Sept.

Uranium, Inc., Casper, Wyo.

(letter

20

common

(10

par

of

notification)

shares of
share). Pro¬
Office—

30,000,000

stock. Price—At par (one cent per

ceeds—For exploration and development costs.
300 Consolidated Royalty Bldg., Casper, Wyo.
E.

Hendershot, 2520 Deming

Under¬

Blvd., Che¬

Wyo.

yenne,

Ucolo Uranium

Co., Salt Lake City, Utah

Sept. 13 (letter of notification) 2,800,000 shares of com¬
mon stock
(par one cent). Price — 10 cents per share.
Proceeds—For

exploration and development costs.

Of¬

fice—906 Walker Bank Bldg., Salt Lake City, Utah. Un¬
derwriter—Western Securities Corp., the same city.

.

i
,

r—17. S. funds.

Proceeds—Fof exploration and develop*

-merit expenses and
—H. J. Cooney &

Uintah
Oct.

Uranium, Inc.,

Salt Lake City,

Utah.

5

—

Judge Bldg., Salt Lake City, Utah.
city.

Under¬

Union Compress & Warehouse Co.
June 25

(letter of notification) 30,000 shares of common
Price—$10 per share. Proceeds—To 35
selling stockholders. Office — Memphis, Tenn. Under¬
stock

(par $1).

writers—Leftwich & Ross and Mid-South Securities
both of

Co.,

Memphis, Tenn.

it Union Tank Car Co. (11/9)
Oct. 25 filed 380,000 shares of capital stock (no par).
Price—To be supplied by amendment.
Proceeds—To the
Rockefeller Foundation, present owner of 480,000 shares.
Underwriters—The First Boston Corp. and Merrill Lynch,
Pierce, Fenner & Beane, both of New York (latter to
handle books).

United States Lithium Corp.

Sept. 9
mon

(letter of notification) 2,990,000 shares of com¬
Price—At par (10 cents per share).
Pro¬
expense incident to extraction operations.

stock.

ceeds—For

Office—1111

Walker

Bank

Building,

Salt

Lake

City,

Underwriter—Thornton D. Morris & Co., the same

Utah.

city.

/

(10/29)
Oct. 14 (letter of notification) 298,000 shares of common
stock (par-one cent).
Price—$1 per share. Proceeds—
For exploration of mercury. Office—40 Exchange Place,
New York 5, N. Y. Underwriter—Greenfield & Co., Inc.,
•

U.

same

S. Mercury Corp., N. Y.

city.

Universal Petroleum

Exploration & Drilling Corp.

(letter of notification) 300,000 shares of common
stock. Price — At par ($1 per share). Proceeds — For
cost oL Driller- Boy (drilling equipment which company
rent&-out), -and -working capitaL Office—c/o Edwin J.
Oct. 4

'ip»o€son^.attorney-at4aw, Siinon^ Bldg,, 230 Fremont St.,
"Las.'Vegas, Nev.

Underwriter—Robert

B.

Fisher

In-,

vestments, 510 South Fifth St., Las Vegas, Nev.

acquisition of property.
Coy New' York.

Upper Peninsula Power Co.
30,625 shares of common stock (par $9) being
offered for subscription by common stockholders of rec¬
ord Oct. 26 at the rate of one new share for each eight *
shares held; rights to expire Nov. 10.
Price — $22 per
share.
Proceeds—To purchase stock of Upper Peninsula
Generating Go. (a 50% owned affiliate) and for general
corporate purposes, including company's construction
program. Underwriters — Kidder, Peabody & Co. and
Paine, Webber, Jackson & Curtis, both of New York.*
Oct. 7 filed

—

pansion and

455,000 shares of common stock (par 10
cents), of which 385,000 shares are to be offered for
subscription by common stockholders at the rate of one
new share for each 4Y2
shares held; and 70,000 shares
are for account of certain selling stockholders. Price—To
be supplied by amendment.
Proceeds—For exploration
and drilling, and payment of bank loans and advances.
Underwriter—Vickers Brothers, New York, on a "best ef¬
filed

•

Tacony Uranium Corp., Denver, Colo.
Aug. 17 (letter of notification) 1,700,000 shares of

Inc.
Oct. ,7 .(letter of notification) 2,000,000 shares of com¬
mon stock (par one cent).
Price — 10 cents per share;
Proceeds—For mining expenses. Offices
506 Beason
Bldg., Salt Lake City, Utah, and 1016 Baltimore Bldg.,
Kansas City, Mo. Underwriter—E. R. Bell &
Co., Kansas
City, Mo.

June

International Sulphur Co.

Texas

June 21

the basis of 500 shares of stock

on

$1,000

tendered for the

Pacific

,

share for each three

revenue

for each

Oct. 8 filed

Solomon

new

offered

be

ment

Power Co.
(11/9)
$4,000,000 of first mortgage bonds due Nov.
1, 1984. Proceeds—To redeem $1,500,000 of 3%% bonds,
Sierra

one

Florence,

per unit.
shares of

Underwriter
Lynchburg, Va.
-

(letter of notification)
common
(par $20) being initially offered for subscription
stockholders of recorcf Oct. 15, 1954 on the basis

Stylon Corp., Milford, Mass.
Sept. 27 filed 650,000 shares of common stock

stock of company, for construction program and

Horner & Mason, Inc.,

Underwriter—White, Weld &

writer—James E. Reed Co., same

Mobile, Ala.
5,000 shares of

Ala.

Gas

repay

6

Utah.

held; rights to
expire on Nov. 1. Price—$40 per share to stockholders;
and $41 to public.
Proceeds—To increase capital and
surplus for expansion of business.
Office—154 Saint
Louis St., Mobile, Ala.
Underwriters—Sterne, Agee &
Leach, Birmingham, Ala.; and Shropshire & Co., Mobile,

Co., Lynchburg, Va. (11/8)
Oct. 18 filed $741,000 of 6% sinking fund debentures
due 1979 and 114,000 shares of common stock (par $1)
to be offered in units of $6.50 principal amount of de¬
Proceeds

that Sandard will own at
capital stock. Un¬

so

Insurance Co.,

Stonewall

by

Price—20 cents per share.
exploration and development of proper¬
Underwriter—Coombs & Co., Salt Lake City, Utah.

bentures and one share of stock.

2,765,616 shares

offer is subject to tender

stock

(par five cents).

Shenandoah

The

—

Office—Toronto, Canada.
Co., New York.

Office—424

•

Prooeeds—For

«

Humble.

—

Santa Fe Uranium Co., Salt Lake

ties.

Refining
the basis of nine shares of Standard

(11/3)

450,000 shares of common stock (par $1).
$21.50 per share. Proceeds — For investment.

filed

1

(letter of notification) 15,000,000 shares of com¬
mon stock
(par one cent). Price—Two cents per share.
Proceeds
For
exploration and development costs.

Oct.

(letter of notification)

Templeton Growth Fund at Canada, Ltd.

Oct.

Underwriter—Ned J. Bowman Co., Salt Lake City,

Juan

stock

•

(par 2% cents).

Star Uranium Corp., Salt Lake City, Utah
Aug. 2 (letter of notification) 6,000,000 shares of com¬
mon stock
(par one cent). Price—Five cents per share.
Proceeds
For exploration
and development costs.

York.

Aug. 5

on

(par $15)

derwriter—None.

Racing Association (Puerto Rico)
Oct. 1 (letter of notification) 100,000 shares of common
stock (par 50 cents). Price—$3 per share. Proceeds—To
build
and
operate
a
horse-racing establishment in
Puerto Rico.
Office—Flamingo Bldg., Santurqe, P. R.
Underwriter—Hunter Securities Corp., New York.

mon

stock

Humble Oil &

least 80% or more of the Humble Oil

Fe, N. M.
Sept. 14 filed 300,000 shares of common stock (par 10
cents).
Price—$2 per share.
Proceeds—For develop¬
ment and exploration expenses, etc.
Underwriters—R.
V. Klein Co. and McGrath Securities Corp., both of

City, Utah
1,500,000 shares of

7

mon

writer—Glen

(New Jersey)

exchange for

capital stock
10 shares of

of at least

Samicol Uranium Corp., Santa

San

in

Co.

Proceeds—For

Co.

8,969,055 shares of capital stock

offered

for

acquisition of royalty and mineial interests.
Under¬
writers—Virgil McGee, Boise, Ida.; and Bud Mallett and
J. S. Williams of Portland, Ore.

New

filed

15

be

to

f.y,

it Royalties & Minerals, Inc.
Oct. 15 (letter of notification) 300,000 shares of common
stock.

per

Standard Oil

Office—-Greene, N. Y. Underwriter

handling equipment.

share of each class of stock. Price

one

unit. Proceeds—For purchase of land and to
construct and equip a luxury hotel. Underwriter—None.

of $50,
and

Underwriter—None.

Ind.

Underwriter—Jerome Rosenberg,
Ave., Yonkers, N. Y.

Y.

shares of com¬
Price — 3 cents per share.
Proceeds—For exploration and development expenses.
Office—39 Exchange Place, Salt Lake City, Utah. Un¬
derwriter—Walter Sondrup, same city.
(letter of notification) 3,500,000

Oct.

standby).

purchase building, and for modernization and

ceeds—To

it Temple Mountain Uranium Co.

Price

Southern New England Telephone Co.
Sept. 17 filed 488,883 shares of capital stock (par $25)
being offered for subscription by stockholders of record
Sept. 29 on the basis of one new share for each nine
shares then held; rights to expire on Oct. 29.
Price—
$30 per share.
Proceeds — To repay advances from
American Telephone & Telegraph Co., which owns 1,173,696 shares (or 26.67%) of the 4,400,000 shares pres¬
ently outstanding. Underwriter—None.

mon

formed

October 28, 1954

The Commercial and Financial Chronicle.. .Thursday,

(1756)

Underwriter

Urainbow, Inc., Salt Lake City, Utah
(letter of notification) 2,000,000 shares of com¬
stock (par two cents). Price—15 cents per share.
Proceeds
For exploration and development expenses.
Office—908 Kearns Bldg., Salt Lake City, Utah. Under¬
writer—Austin B. Smith Brokerage Co., the same city.
Aug. 31

mon

—

it Uran-Leunv Inc., Albuquerque, N. M. '
r
(letter of notification) 500,000 shares of common/
stock (par 10 cents). Price—20 cents per .share. Proceeds—For exploration and development costs.. Office-^—
1522 Sari Carlos Ave., Albuquerque, N. M. Underwriter
.

.Oct. 18

,

—None.

v

-

#*

Volume 180

Number 5372... The Commercial and Financial
Chronicle

(1757)
-jAr Uranium Corp. of America
Oct. 18 (letter of
notification) 24,500 shares of

To

purchase

and

common

for

Price—At par ($1 per share). Office—54% East
port, N. Y.
San Francisco St., Santa
Fe, N. M. Underwriter—None. ~ New York.

Uranium Corp. of Colorado

For

com¬

Washington Natural

Mining Co., Inc.,

Prospective Offerings
Aluminium, Ltd.
Oct.

Gas

Underwriter—

stock.

Price—At

share).

the

Proceeds—To

ing stockholder.
Inc.,-1 New York.

market

(estimated

Elizabeth

D.

at

$1.37V2
&

per

due

Securities Corp., New York.

20,

1952

Ames

filed

Oct.

7

mon

ture and

stock

(letter

one

share of stock.

one $50 deben¬
Price—To be supplied By

it Utah Apex Uranium Co.
Oct. 18 (letter of
notification)

York.

3,000,000 shares of capi¬
(par three cents). Price—Six cents per share.
Proceeds—For exploration and development
expenses.
Office—430 Judge Bldg., Salt Lake
City, Utah. Under¬

writer—Mid-Continent Securities, Inc.,
it Utah Premier Uranium
Oct.

same

city.

Co.

19

(letter of notification) 5,000,000 shares of com¬
mon stock
(par one cent). Price—Five cents per share.
Proceeds—For expenses incident to
mining operations.
Office
516 Conflnental Bank
Bldg., Salt Lake City,
Utah. Underwriter—J. E. Call &
Co., same city.
—

Nov. 20, 1952 filed
1,125,000 shares of
50 cents). Price—To be

common

supplied by amendment. Pro¬
ceeds—Together witji other funds, to be used to build
pipeline. Underwriters—White, Weld & Co. and Union
Securities Corp., both of New York.
Offering—Post¬
poned

indefinitely.

Western Central Petroleums,
Inc., N. Y.

Sept. 16 (letter of notification) 133,333 shares of common
stock (par 10 cents).
Price—At market (estimated at
cents). ; Proceeds—To certain selling stockholders.

,36¥2

Utah Uranium
Office «-r 32 Broadway, New York. Underwriter
Corp., Las Vegas, Nev.
<
S. B.
Aug. 20 (letter of notification) 10,000,000 shares of
capi? V '/Cantor Co.,. New York.
tal stock (par 1
cent). Price — Three cents per share.
/
Western Fire & Indemnity Co.,
Proceeds—For exploration and development
Lubbock, Texas
expenses.
Oct. 18 filed 30,000 shares of common stock
Office—1818 Beverly Way, Las
Vegas, Nev. Underwriter
.(par $10).
—First Western
Securities, same city.
,/•./" Price—$25 per share. Proceeds—To establish reserve to
qualify company to do business in States other than
Vendorlator Manufacturing Co.
Texas. Underwriter—None.
Sept. 27 filed $900,000 of 12-year 6% sinking fund de¬
;7'V;/.:.-'.;. 7.
bentures due Oct. 1, 1966 (with stock
Western Plains Oil & Gas Co.
purchase warrants
attached). Price—At par (each purchaser of a
May 24 filed 100,000 shares of common stock (par $1).
$1,000
debenture to receive a warrant to
purchase 50 shares
Price—$4.75 per share. Proceeds—To redeem 1,250 out¬
of common stock at $8
per share).
Proceeds—To pur¬
standing preferred shares ($125,000), to repay bank
chase plant equipment and for
working capital. Office
loan, etc. ($2,500); for purchase or acquisition of addi¬
Fresno, Calif. Underwriters
tional mineral interests, leases and
Lester, Ryons & Co.,
royalties in the
Los Angeles,
Calif.; and Bailey & Co., Fresno,'Calif.
United States and Canada and for other
corporate pur¬
—

Nov.

23

stock

will

from

Co., Ltd., and White, Weld &
Co./managed a
to procure
subscriptions for
Offering—Probably early in 1955.
/

New

Hills

Sept. 28 it

^

i

new

closed-end

through Axe Securities Corp.,

York, N. Y.

Black

}/■,**.

;

Power

&

Light Co.

reported company may issue and sell
ap¬
of new convertible preferred
Proceeds—To repay bank loans and for new
con¬

$1,000,000

Underwriter—Dillon,

Read

&

Co.

Inc., New-

York. Meeting—Stockholders on
Nov. 19 will vote on
authorizing sale of not over $2,000,000 of preferred stock-

Byers

(A.M.) Co.
/
11, A. B Drastrup, President, announced that com¬
pany plans to refinance the
42,277 outstanding shares
of 7% preferred stock
(par $100) through a new issue
of preferred
stock and
possibly also include issuing
additional common stock.
Proceeds—To retire existing
preferred stock and for capital
expenditures and work¬
ing capital. Underwriter—Previous
preferred stock fi¬
nancing was handled by Dillon, Read & Co.
Inc., New
Oct.

-'

—

—

•

Venezuelan Sulphur Corp. of America
(11/1)
Sept. 17 filed 1,000,000 shares of common stov.k
(par 50
cents). Price—$3 per share. Proceeds—To
pay obliga¬
tions of Venezuela
Sulphur Corp., C.A.; and for advances
to latter for
exploratory and geological surveys and re¬
lated activities.
Underwriter—Hunter Securities

New

Corp.,

York.

/'/z'

it Victory Exploration & Mining Co.
Oct. 15 (letter of
notification) 250,000 shares of
stock

(par

ceeds—For

cent). Price—10 cents per share. Pro¬
exploration and development expenses. Of¬

Albuquerque, N. M. Underwriter
7,.7;v;

;

Office—Glendive, Mont.

Underwriter—Irving J.

it Western Precipitation Corp., Los Angeles, Calif.
21 filed 60,000 shares of common stock
(par $1).
Price—$8.75 per share.
Proceeds—For working capital,
etc.
Business—Designs, manufactures and installs equip¬
ment used for clearing industrial
gases.
Underwriter—
Wagenseller & Durst, Inc., Los Angeles, Calif.
Oct:

Wind River Uranium Co.

common

one

fice—215 Kerber
Bldg.,
—None. -

poses.

Rice & Co., St. Paul, Minn.

—65 East 4th

_

Vigorelli of Canada, Ltd. (Canada) /
Aug. 9 (Regulation "D") 96,770 shares of
8% preferred
stock (par $2) and
96,770 shares of common stock (par

South, Salt Lake City, Utah.
T. Hansen & Co., same city.

K.

in

per

unit.

units

expenses.

Canada.

of

one

share

of

each

class.

Price—$3.10

Proceeds—For exploration and
development
Office—1812 St. Catherine St.
West, Montreal,
Underwriter—B. Fennekohl & Co., New York.

it Virginia Electric & Power Co. (11/23)
Oct. 22 filed 600,000 shares of
common stock
(par $10)
to be offered for
subscription by stockholders of record
Nov. 23

the basis of

one new share for each 10
shares
Price—To be supplied by amendment.
Proceeds—

held.
For

on

rill Lynch, Pierce, Fenner &
Beane;
Securities Corp.

'

it Vulcan-Uranium Mines, Inc.,
Wallace, Idaho
Oct. 15 (letter of
notification) 1,500,000 shares of

■

com¬

stock. Price—At par (five cents
per share).
Pro¬
ceeds—For expenses incident to
mining operations. Ad¬
dress—P. O. Box 289,
mon

Wallace, Idaho. Underwriter—AlTeske, d/b/a Wallace Brokerage Co., Samuels
Hotel, Wallace, Idaho.
J.

it Warner, Inc.
Oct. 25 (letter of
notification) $250,000 of 10% debenture
notes and 25,000 shares of class B
common stock

cents)

(par 10

to

be offered

share of stock.

in

units

Price—$12

portion

of

general

corporate

New

each share
—At

par

program.

World

debt

York, N. Y.

to

per

of

$10

of

notes

and

one

unit. Proceeds—To repay
Factors Corp. and for

Broadway

purposes.

Office

—

522

Fifth

Ave.,

Underwriter—None.

Warren Corp., Tulsa, Okla.
Sept. 27 filed 200,000 shares of common stock
(par $1).
Price—$5.25 per share. Proceeds—To retire
outstanding
notes, purchase and develop additional leases and over¬
riding royalties, etc. Underwriter—None.
.

it Warren

(J. C.) Corp. (11/15)\)
V
Oct. 25 (letter of notification)
300,000 shares of common
stock (par five cents).
Price—$1 per share. Proceeds—




offered

15,

for

mon

penses.

Utah.

Lynch

Pierce, Fenner & Beane (jointly); Lehman
Brothers and
Lazard Freres & Co.
(jointly). Offering—Not expected
until early in 1955.
/77,7,'
/;
/
.

Chesapeake & Ohio Ry.

one

held; with rights to expire

new

29

it

reported

plans

company

to

issue

and

Chicago & Eastern Illinois RR.

share

for

for the

Nov. 12. Price
($25 per share). Proceeds—For construction
Underwriter—None.
on

$40).

:

exchange, par for par*
outstanding 383,751 shares of class A stock (par
: 7
■ 7
7.
/-■•".v/; ;
7\
>•
..

•

Compo

Oct. 25 it

Uranium

was

Sept. 21 company filed an application with
the ICC for
authority to issue $15,350,000 of 5% income
debentures
due Jan. 1,
2054, to be offered in

common

Mining Corp.

1

(letter of notification) 9,996,000 shares of com¬
stock
(par one cent).
Price — Three cents per

share.

Central & Southwest
Corp.
was reported
company plans issue and sale of
between 500,000 to
600,000 additional shares of comi
mon
stock, probably first to stockholders.
Underwrite*
—May be determined by competitive
bidding. Probable
bidders; Blytli & Co., Inc. and
Smith, Barney & Co.
(jointly); The First Boston Corp. and Merrill

Sept. 2 it

Underwriter—May be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co.
Inc.;'
Blyth & Co., Inc.

subscription by stockholders of

1954 in the ratio of

Kidder, Peabody &
Co.
and Blyth &
Co., Inc. (jointly); Merrill Lynch,
Pierce, Fenner & Beane and Salomon Bros. &
Hutzler
(jointly); Kuhn, Loeb & Co.

bonds.

July 21

Stone & Webster
1

be

Oct.

construction

program.
Underwriter—To be deter¬
mined by competitive
bidding. Probable bidders: Mer¬

den

to

record

construction.
Under¬
writer—To be determined
by competitive bidding. Prob¬
able bidders: The First
Boston Corp.; Lehman
Brothers
and
Glore, Forgan & Co. (jointly);

$40,000,000 of new bonds. Proceeds—To refund
it3
outstanding $37,851,000 3%% bonds and
$2,441,000 4%

Underwriter

Woodbury (Conn.) Telephone Co. y
Sept. 10 (letter of notification) 2,650 shares of
stock

V'7 /< '■
'V.'
was reported
company plans to issue and sell
75,000 shares of preferred stock
(par $100). Proceeds—
To repay bank
loans and for new
Oct. 25 it

sell

.

$1)

it Central Power & Light Co.

Sept.

Sept. 15 (letter of notification) 9,965,000 shares of com¬
mon stock
(par 1 cent). Price—Three cents per share.
Proceeds—For exploration and development costs. Office

Proceeds—For exploration and development ex¬
Office—323 Newhouse bldg., Salt Lake

City,

Underwriter—P. G. Christopulos & Co., same city.

Shoe

Machinery Corp.

was

reported company plans the sale of
31,006
shares of convertible
preferred stock (par
$25), first to
stockholders of record about Nov.
5 on a basis of one.
preferred share for each 10 common
shares held

(with

an

oversubscription privilege); rights to
expire in abou:
20
days. Underwriter—May be Loewi &
Co., Mil¬
waukee, Wis.
7
15 to

:

Wyoming Uranium Corp., Salt Lake City, Utah
Aug. 23 (letter of notification) 9,166,667 shares of com¬
mon stock
(par 1 cent). Price—Three cents per share.
Proceeds—For exploration and development expenses.
Underwriter—James E. Reed Co., Salt Lake City, Utah.
.

Wytex Oil Corp.
Sept. 17 (letter of notification) $290,000 of 10-year 5%
sinking fund debentures (with warrants) being offered
to class A and for class B stockholders of record
Aug. 29
on the basis of
$500 of debentures for each 50 shares of
stock held; rights to expire on Nov. 30. Price—At
par.
Proceeds—To reduce bank loans and for development of

company's wells in Weston County, Wyo. Office —100
State St., Albany 7, N. Y. Underwriter—None.

Yard-Man, Inc., Jackson, Mich.
Oct.

18

filed

Price—$7
holders.

(11/8-12)
160,240 shares of common stock (par $2).

per share. Proceeds—To certain selling stock¬
Business—Manufactures hand and power lawn

mowers, and related

gardening equipment.
—Watling, Lerchen & Co., Detroit, Mich.

Underwrite!?

: Zenith Uranium &
Mining Corp.
July 12 (letter of notification) 300,000 shares of common *
stock (par one cent). Price—$1 per sharfe.' Proceeds—
For mining operations.
Underwriter—Sheehan & Co.,
Boston, Mass.
.

■

•'■■V:'1-*

was

struction.
stock (par

on

capital

Axe Atomic & Electronic Fund
1
Sept. 20 it was reported securities of this
fund will be soon offered

stock.

West Coast Pipe Line
Co., Dallas, Tex.

tal stock

&

proximately

:

>

„

amendment. Proceeds—From sale of units and
1,125,000
additional shares of common stock and
private sales of
$55,000,000 first mortgage bonds to be used to build a
1,030 mile crude oil pipeline.
Underwriters — White,;
Weld & Co. and Union Securities

Corp., both of New

stockholders

authorized

V

of notification) 6,000,000 shares of com¬
(par one cent): Price—Five cents per share.
Proceeds—For exploration and development costs. Of¬
fice—420 Felt Building, Salt Lake
City, Utah. Under¬
writer—Western Securities Corp., Las
Vegas, Nev.

Offering—Postponed indefinitely.

announced

group .of soliciting dealers
the Shares."

$29,000,000 12-year 6 %' debenture*
Dec. 15, 1964, and
580,000 shares of common stock

(par 50 cents) to be offered in units of

Uranium, Inc., Salt Lake City, Utah

was

increasing the

pected that the proceeds will amount to
approximately
$40,000,000. Proceeds—For expansion
program.
Dealer
Managers—In April, 1953, The First Boston
Corp., A. E.

Co.,

West Coast Pipe Line
Co., Dallas, Tex.

Nov.

Underwriter—Hunter

it

on

10,000,000 shares (9,026,234 shares
outstanding) to 20,000,000 shares (no
par value) of which a
part may be of¬
fered for
subscription by stockholders. Price—It is ex¬

Hardman, the sell¬

Underwriter—Barrett Herrick

13

vote

Co., Clarksburg, Va.
Sept. 20 (letter of notification) 10,000 shares of common

Uranium Mines, Inc., Wallace, Idaho
Oct. 1 (letter of
notification) 1,450,000 shares of com¬
mon stock
(par five cents). Price—20 cents per share.
Proceeds—For exploration and development costs. Of¬
fice—Scott Bldg., Wallace, Idaho.
Utaco

—

working capital. Office—122 Broad St.,
Stamford, Conn.
Underwriter—Frederick H. Hatch & Co.,
Inc., New York.

common stock
(par one
Price—7% cents per share. Proceeds—To
pur¬
chase mining claims and
exploratory equipment, and for
exploration costs. Underwriter—Weber Investment
Co.,
Salt Lake City, Utah,
y

stock
(par 1 cent).
Price —10 cents per share.
Proceeds—For exploration and development costs. Office

Utah.

•

Zotox Pharmacal
Co., Inc. (10/29)
>
Sept. 24 (letter of notification) 100,000 shares of
common
stock (par $1).
Price
$3 per share. Proceeds —For

cent).

mon

227 N.
University Ave., Provo,
Bay Securities Corp., New York.

individuals

Ave., FreeInvesting Corp.,

Aug. 6 filed 65,000,000 shares of

and development costs.
Office —129
St., New York, N. Y. Underwriter—None.

Uranium of Utah, Inc.,
Provo, Utah
Sept. 14 (letter of notification) 3,000,000 shares of

to

Hanse

General

—

Denver, Colo.

exploration
60th

debt

Office—21

Underwriter

Warren Oil & Uranium

Sept. 23 (letter of notification) 300,000 shares of common
(par one cent). Price—$1 per share. Proceeds—

stock

East

equipment, liquidate

working capital.

stock.

57

> Consolidated

Freightways,

Oct.

Inc.

(11/22-24)

18 the corporation
applied to the ICC for
authority
to issue and sell
100,000 shares of common stock (par
$5),,
Price—Not less than
$16.50 per share.
Proceeds — Tc
finance purchase of
equipment.

Co., Inc., New York

Underwriter—Blyth

and San Francisco.

&

;

Consolidated Natural Gas Co.
Sept. 16 J. French Robinson,
stockholders
additional

on

Dec. 2

shares

of

will

capital

President, announced thai
on
authorizing 920,822
stock for an
offering to.

vote

stockholders planned for 1955
derwriter—None.

on

l-for-8

a

basis.

Un¬

Consolidated Uranium
Mines, Inc.

July 23

stockholders authorized

of not to exceed

the

issuance

and

sale

$6,000,000 convertible debenture bonds

in connection with the
acquisition of Uranium Mines of
America, Inc. stock. Public offering of

$2,000,000 bonds

expected

early in 1955.

Underwriter

—

Tellier

Jersey City, N. J.

&
7.

.

Eastern Utilities Associates
Sept./20 it was reported company plans issue
and
of $7,500,000 collateral trust bonds due
1984.

Co.,
-

sale

Proceeds
principally to refund $7,000,000 4%% bonds
outstanding. Underwriter—To be determined

To be used
now

by

V

Continued

on

page 5$

v

~

58

The Commercial and Financial Chronicle

(1758)

Continued from page

Kansas Power & Light Co.

57

Fort Worth Steel & Machinery
it

was

announced

public

a

June 21 it

was reported company plans to issue and sell
$15,000,000 first mortgage bonds, series F. Underwrite*

planned

is

of common stock (par $1) to residents
Price—Tentatively in the $10 to $11

—To

Beissner

other

Inc.; The First Boston Corp. and Lehman Brother*
(jointly); Union Securities Corp. and Merrill Lynch,

&

General Telephone Co. of the Southwest

ceived in October

Aug. 25 stockholders approved an increase in the au¬
4Kentucky Utilities Co.
.;>*
thorized preferred stock (par $20) from 400,000 to 700,June 21 it was reported company plans to issue and sell
000 shares and in the common stock 'from 500,000 to
to its common-stockholders some additional
common
1,000,000 shares.- Underwriters—Paine, Webber, Jackson ' stock, either on a l-for-9 or an a l-for-lO basis. At
& Curtis and Stone & Webster Securities Corp.
April 30, 1954/there were outstanding-2,286,784 sharesXr
Underwriters—Previous

1953,

the

stock

common

July 2 it was reported company plans to issue and sell
Hilliard & Sons and associates.
50,000 shares of 5% cumulative preferred s|octt (par • Laclede. 6as_Co.
(12/1).~
$25). Underwriters—Paine, Webber, Jaekson Jt-Cprtisand Stone & Webster Securities Corp., both of

New Yprk,

*

Aug. 27 it was announced that; this company;:a subgidiary of United Cities Utilities Co*,, contemplates the
issue and sale to residents of Georgia of $300,000K par
value of preferred stock, subject to the approval of
the Georgia P. S. Commission.
■**;

Gulf, Mobile & Ohio RR.
23

due

1975

•

.

purchase

from

National

Sept.

from

312,000

proposal

to

592,000

was

to

Dec.

19

each

Oct.

"

;

of

&

authorized

an

State

Bank of

Newark

approved

19

(par $25)

four

it

shares

lative

it

was

on

Telephone

announced

of record

New Orleans

probable bidders may include: Smith, Barney & Co.;
Blyth & Co., Inc.; and Lehman Brothers (jointly); Mer¬
rill Lynch, Pierce, Fenner & Beane
and Kidder, Pea¬
body & Co. (jointly). Registration—Planned for Oct. 29.

Oct.

one

new

-

Sept. 15 it

&

Telegraph

Joston- Corp and Halsey, Stuart




by

Registration—About Nov. 5.
Rubber

Co.

reported

Co.

was

•

200,000
which

additional
are

struction.

to be

preferred

sold in series.

of America

reported company

later issue and sell
Underwriter

may

Ry

.

(10/28)

it

was

announced

company

on

Oct.

28

at "its

receive

&

Ohio

Construction

RR.

of

its

holdings in

South-

Co.

/

Joans necessary to pay for new construction estimateU to cost about $11,000,000 for 1954. Underwriters—
bank

White,

Weld & Co. and
Corp./both of New York.
United

Septi' 8

competitive

one

new

Stone

Webster

&

Securitie*

Dye & Chemical Corp.

directors

stockholders of

authorized

additional

offering

an

common

stock

share for each five shares held

at

to

common

the

(with

rate

an

oi

over¬

subscription privilege). About 150,000 shares are pres¬
ently* outstanding. Price—$9 per share. Underwriter—
None*/
'

Bids—Expected Dec. 14.

"

•

Utah & Idaho Uranium, Inc., Kellogg, Ida.
Sept.; 7 Lester S. Harrison, President, announced thai
the company contemplates obtaining funds to initiate
its urhniurmmining operations in Utah
by the sale to. the
public; of its unissued treasury stock. This financing wih
follow completion of the company's current drilling pro¬

gram/
a

proposal

stock

of

authorize

to

$100

par

Proceeds—For

Western Pacific RR. Co.
Sept. S, it was announced that directors have approvec
the^lsspe and sale about Jan. 1, 1955 of $7,000,000 ol
first- mortgage bonds, series B.
Proceeds — To re¬

value,

new

con¬

Offering—Not imminent.

Peninsular Telephone Co.
Oct. 19 stockholders approved
proposal to increase authorizedjpreferred stock from 6GO;QOO shares to -1,000,-000
shares and. the authorized, common stock from

imburse company for capital expenditures already mad<
and for future improvements. Underwriters—May be de*

c

termined by competitive bidding. Probable bidders: Hal-

sey, Stuart & Coz Inc.; Union Securities Corp. and Glore
to. 2,00:1000 shares.-Underwriters— Last
Forgan^& Cp.;_(jointly); Kidder, Peabody & Co. ant
financing-was
handled, by Morgan Stanley . &*Cor and^edggeshaH *& ; Blyth & Co.;-Inc^;(jointly); Lehman Brothers and Bear
& Hicks^ Not imminent.
Steams & Co. (jointly).
1
;•
-Z -• *
v-r

1,500JMX)

...

indebtedness of

Transcontinental Gas Pipe Line Corp.
Marcp 16 it was reported company plans later this yeai
to do some permanent
financing to repay temporary

•

The First

which ' in¬
5,000,000 to

York

western

(11/4)

Pacific Power & Light Co.
19 stockholders approved

authorized

from

from, $25,000,000

fronp Bajitmore

to offer to

a

14 it

proposals

stock

will up to noon
office, 70. Pine St.,
5, N. Y., bids for the purchase from it of
$15,000,000 collateral promissory notes to be dated Nov.
1, 1954 and to mature annually from Nov. 1, 1953 to
Nov^T, 1964, inclusive. Proceeds—To finance purchase
(EST)

New

Inc.

determined

Oct.

etermmeth

& Co* Inc.; (.with latter
handling books); Kuhn, Loeb & Co.,
Ladenburg, Thalmann & Co, and
Blyth & Co., Inc. (jointly).* "*

be

11

Oct.

—

of 4s due 1975 and $13,336,bidden

To

—

was

Southern

secondary offering is expected
approximately 70,000 shares of common stock. Under¬
writers
Troster, Singer & Co., New York, and C. F.
Cassell & Co.,
Charlottesville, Va.

Kansas City Southern
Ry.
*
Sept. 20 it was reported company may issue and sell in
November about $50,000,000 first
mortgage bonds. Pro-

Probable

year.

and

approved

—Paipe, Webber, Jackson & Curtis.

of

(jointly); Kuhn, Loeb & Co., Salomon Bros. & Hutzler
Union Securities Corp.
(jointly); Glore, Forgan &
Co.; Blyth & Co., Inc. and The First Boston Corp. (joint¬
ly); White, Weld & Co. and Shields & Co. (jointly); Har¬
riman Ripley &
Co., Inc., Equitable Securities Corp.

Competitive bidding.

this

• O'Sullivan

and

^

$6,000,000 of first mortgage bonds due 1965.

(12/14)
plans to offer for sale
mortgage bonds due 1984 in Decem¬
Proceeds—For construction program.

Oct.

Co.,

■

_

Oct. 15 it

March

Public Service

shares

company

it Sheraton Corp.

bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Equitable Securities Corp.: Union Securities Corp. and
Harriman Ripley & Co. Inc. (jointly); Lehman
Brothers;
Kidder, Peabody & Co. and Stone & Webster Securitie*
Corp. fiointly): The First. Boston Corp.: White. Weld *
Co.

construction. Underwriters—To be determined
by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.;
Lehman
Brothers
and
Bear,
Stearns
&

-To'

of

COrp.

>

to $50,000,000. ' The
company has no
specific financing program.
Under¬
writers—Previous offering of $24,952,800 3% convertible
debentures, in September, 1953, was underwritten: by
Drexel & Co., Smith, Barney & Co. and Merrill Lynch,
Pierce, Fenner & Beane.
'
r
*

and sale
Proceeds—To repay

company proposes

the

the

,

Telegraph Co.

&

common

10,000,000

share

19;

announced company

Underwriters

Bids—Expected Nov. 30.

—-

was

$6,000,000 of first
ber

Securities

/

s 27, stockholders
creased the authorized

—None.

1 it

Webster

around $250,000.

Ap^-il

announced company plans issue

was

stockholders

Oct.

&

convertible

gross

*'Scott Paper Co.

OOOof bank loans and for construction
program.

writer—Last preferred stock financing was handled
by
Smith, Barney & Co. If through competitive bidding,

Stone

acquisitions.

other things, an
additional shares of

(par $50). Proceeds — To redeem $5,000,000 of 4.70%
preferred stock presently outstanding, to repay $2,000,Under¬

re¬

.

preferred stock (par $1), expected
Proceeds—For expansion and
Underwriter—Probably Pacific Coast iSe¬
curities Co., San Francisco, Calif.
^
>
to

(N. J.)

the basis of

on

held

Telephone

England

19

T-

Savage Industries, Inc., Phoenix, Ariz.
Aug. g, j.ty.was announced company plans later this year
to issue and sell an additional block of 75-cent cumu¬

issue of

among

$30,000,000 debentures due 1988.

its

reported company is considering issuance
and sale of 200,Cr00 shares of cumulative preferred stock

Underwriter

r

.

April £?.the SEC authorized the company to register as
investment concern and to make a public offering of

Co., Inc., New York, handled previous fi¬

England

it New

was

/es due 1966.

»

issue and

may

securities in the United States.

1, next, 511,205 addi¬
tional shares of capital stock (par $100) on a l-for-5
basis. American Telephone & Telegraph
Co., its parent,
owns about 69%
of presently outstanding shares.
Pro¬
ceeds—To repay temporary borrowings.
Underwriter

^dsTT? refund $38,345,000
000 of 3

:

comply

an

Halsey, Stuart & Co. Inc.; Morgan Stanley &
Co.; The First Boston Corp.; Glore, Forgan & Co.; Kuhn,
Loeb & Co. and Union Securities Corp.
(jointly). Bids—
Expected to be received on Dec. 14.

(11/30)

Kansas City Power &
Light Co.
was announced that company
may sell in the
latter part of 1954 or early in 1955
$16,000,000 first mort¬
gage bonds. Proceeds—To repay bank loans and for new

mat

Noy/rl

^

Oklahoma

reported

was

tq- vote-

are

/V

Resources of Canada Investment Fund, Ltd.

bidders:

15.

Sept. 27 it

Public Service Co.

'

(jointly); White, Weld & Co.; Shields & Co.*

.

loans and for additions and improvements.
Underwriter
—To be determined by competitive bidding.
Probable

Oct.

-

.

(12/14)

(12/15)

reported company plans to issue and sell

Interstate Power Co.

financing.

Sept. 2 it was reported company may sell between $20,000.000 and $25,000,000 of first mortgage bonds in Janu¬
ary.* Proceeds—'To repay bank loans and fori-new con¬
struction./Underwriter—To be determined by competi¬
tive bidding.: Probable bidders: Halsey, Stuart -& Co.
Inc.; Equitable Securities Corp.;'Salomon Bros. & Hytzr
ler; The First Boston Corp.; Blyth & Co., Inc.,,Kidder,

Products, Inc.

stockholders

• New

$18,000,000 of sinking fund debentures due 1979. Pro¬
ceeds—Together with treasury funds to redeem 372,914
"shares of outstanding preferred stock (par $50)., Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb &
Co., Harriman Ripley & Co. Inc. and Union Securities
Corp. (jointly); Morgan Stanley & Co. Bids—Expected
on

;

rights to expire
Nov. 9.
This follows a 4-for-l stock split-up and re¬
ceipt of 25% stock dividend. Price—$80 per share. Pro¬
ceeds—To increase capital and surplus.
Underwriters—
Clark, Dodge & Co.; Union Securities Corp. and Adams
& Hinckley.

■

Illinois Central RR.

new

public Service Co. of Oklahoma

bonds.

offering to stockholders of 25,000

.

writers—Lee, Higginson Corp. and Kidder, Peabody &
Co., both of New York; and William Blair & Co., of
Chicago and associates.
//;„.
•
Oct. 12 it

/■;/■■

141 Broadway, New York 6, N. Y.

Starch

National
Oct

(par
Under¬

shares.

Proeeeds-r-To
Underwriters—

Gb>; Kuhn, Loeb & Co.; Glore, Forgan & Co.-

,

nancing.

for

a

Meetings-Stockholders

Peabody & Co. and

capital stock

shares

.Bids—

-

stockholders approved

28

Eberstadt

increase the authorized amount of preferred stock

$100)

(jointly).

40,000 shares of new prefererd stock (par $100), a part
of which may be issued privately to finance a new midwestern plant to produce vinyl resins. - Underwriter—F.;

stock to its stockholders.

approved

later.

accounts.

sell 75,000 shares

announced company plans to "offer' 500,(par five cents) to the motorist and general

Office—Room 717,

Nov. 4 for

Holly Corp., New York.
Sept. 9 S. B. Harris, Jr., President, stated that prelimin¬
ary financing has been arranged to be followed by a
public offering after which this corporation plans to
distribute a part of its holdings of Holly Uranium Corp.

'

approving

Aug. 28 it

public shortly after completion of the current offering
of 100,000 shares to service station owners and operators.
on

named

was

shares

000

Territory of
Hawaii of $6,500,000 public improvement bonds, series A,
dated Nov. 1, 1954, and to mature annually on Nov. 1
from 1957 to 1974, inclusive.

Household Finance Corp.
Oct. '7 preferred stockholders

>7

company

mortgage

Majestic Auto Club, Inc.

(11/4)

to 10 a.m. (EST)
Treasurer of the

the

announced

was

$15,000,000

Aug. 25 it

Bids will be received at the Bankers Trust Co., 16 Wall
the

New York.

Barney & Co.

& Co.

up

•

Lynch,
Pierce//Fenner & Beane and Smith Barney & Co^ of

•

plans late in 1954*
Proceeds —- To
finance construction program.
Underwriter—To be de¬
termined by competitive bidding.'
Probable bidder®:
Halsey, Stuart & Co. Inc.; W. C. Langley & Co.; Blytb
& Co., Inc. and The First Boston Corp. (jointly); Smith.'

Underwriter—To
be
determined
by competitive bid¬
ding.
Probable bidders: Halsey, Stuart & Co. Inc.;
Kuhn, Loeb & Co., Blyth & Co., Inc. and Salomon Bros.
& Hutzler (jointly); The First Boston Corp.; Shields

St., Ne\v York, N. Y.,

it

27

issue

to

1969, respectively; collateral trust 3%s
dup 1968; and New Orleans Great Northern 5s due 1983.

(Territory of)

be

capital

•

Long Island.Lighting Co.

Oct.

and

^ Hawaii

and

DrexeLf& Co., Philadelphia, Pa,; and Merrill

on

determined

Blair & Co., Inc. and Drexel & Co.
Expected to be received on Dect 1.

•

/

it

Price—To

ders:

-

'
was-reported company may consider the
issuance of about $25,000,000 bonds later this year. Proceeds^-To refund first refunding mortgagees and 33/4s

Aug.

held.

increase' surplus

>
of new "-preferred stock; (par /$100).
by competitive bidding.. Probable, bid— -; Underwriter—To be determined by competitive bidding.
Halseyr Stuart & Co. Inc.; The Fi^slBoston Gorp;; , -Probable. ? biddersr Harriman- Ripley & '• Go.7 Ine. k ahd
Stone & Webster Securities Corp.;r Lehman•. Brotheiwr/
Central Republic Co* JnC. (jointly);* Smith,
Barney* &

be

.

j/

...

shares

^

,'*?j/r/U -i

Z/7- //*•'.Qfct. 25 it was reported company, plans to issue and sell.
$15,000,000 first mortgage bonds/ Proceeds — To repay;
bank loans, and for new construction. Underwriter—To

Georgia Gas Co. //

(par $1D)
-

;

offerirrg, iir Aprijt,

to

right to subscribe to 100,000 shares of common stock
on the basis o£ new new share "lor each 14

"

underwritten by Blyth & Co., Inc. and J. J. R.

was

corporation's uranium program; an¬
will be used to finance accounts're¬

Pennsylvania Company for Banking and Trusts,
Philadelphia, Pa.
*
Aug. 24 it was announced stockholders will be offered

,

General Telephone Co. of Upstate-New York "

the

of a subsidiary and the remainder would be
develop proven oil reserves, including an ex¬
panded: drilling program.
;
/
used

November.

or

under

$1,000,000

ceivable

Pierce, Fenner. & Beane (jointly); Blyth & Co., Inc.;
Kidder, Peabody & Co. and White, Weld & Co. (jointly);Equitable Securities Corp. Bids — Expected to be re¬

&

„

T

chases

Co.

Co.; Shawell & Co., Inc.; Underwood, NeuCo.; Chas. B. White & Co.; Eppler, Guerin &
Turner; and several other Texas firms.

haus

determined by competitive. bidding.
Probable
Halsey, Stuart & Co. Inc.; Harriman Ripley &

be

bidders:

range, subject to market conditions. Proceeds—To cer¬
tain selling stockholders.
Underwriters — Moroney,

D.

the Board, announced

Kentucky Utilities Co.

Co.
offering

'

of 80,000 shares
of Texas only.

Corp.
Silberstein, President and Chairman of
stockholders on Oct. 18 will vote
on increasing the authorized capital stock
(par S10); by
1,000,000 shares, of which approximately 220,000 shares
are
to be publicly offered.
Price—From 15% to 25%
below the price on the New York Stock Exchange at
the time of offering. Proceeds — Of the
approximately
$3,000,000 which would be obtained, about $1,000,000 will
be used for drilling, exploration and additional pur¬
Sept. 26, L.

announced that the com¬
pany plans to sell approximately $8,000,000 of bonds in
the next few weeks. Proceeds—To repay bank loans and
for construction purposes. Underwriter—Previous bond
sale was done privately through The First Boston Corp.

Bids—Expected to be received sometime in November.1

5

Penn-Texas

>

Oct. 4, D. E. Ackers, President,

competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Kidder, Peabody & Co.; White, Weld & Co.;
Stone & Webster Securities Corp. and Estabrook & Co.

Oct.

■

Thursday, October 28, 1954

...

.

..

.

Number 5372

Volume 180

subscription price.

undertaking was divided into term—tional rederaption-^pfiiQeSi-^^cal^tRocky . Mountain areas.
Two
;^and serial bonds. : ^ from 104y4% if redeemed during wholly owned subsidiaries own

v

-^The $25,0.0 0,0 0 0 .constituting <the-year

Freeing Up Capital

,'

.

,

,

This

tion.
the

did the "standby"

job,on National City Bank's offer¬

ing

of

.

tional

capital

holders,
real

a

stock

•

addi¬

when

relief

of

day

pay¬

rolled

deal

that

on

especially true in

was

nrffani/ed

of

mpmhpri!

ex-

changes which require that capital

^

f
involved
i

u^

.

in such commitments be

t

$5o,000,000 of serials, how-

initial

the

in

were>

everi

tures

participants

found

the

in

obligated

were

that

Not

there

Morgan Stanley Group

a

"standby"

to

subscribed.

whjich

With

98.09%

was

the

in

But

of

words

payment

on

to

those

take

one

were

determined

another.

or

hedges,"

time

snipers

the

these

...'
position

i

one

long and

cided to test the. general

due

then de¬
situation.

ing"

so

this

The

the fact that there was no

dicated

the

able

was

sponsoring

to

"lay-offs"

big

make

in

acquired

-rights

against

group

which

shares

47,650

operating income

gross

second

A

week

was

eluding

of

lion

barrels of oil and 2.2

the sale,

the

It

The

Cortland

-

This

-

'

i~\ forty-five

cents

($.45) per share on
of the Company
of the

public has been declared payable Decem¬
ber 10, 1954, tq the holders of record at
the close of business November 8, 1954.
1

W. J. ROSE,

midwest, . southwest and

the

principal

commences

United States

INTERNATI ONAL

$96 mil¬

prior

amount

to

101.08%

from

range

HARVESTER

in

Sinking fund redemp-

prices

New York 3,

111 Fifth Avenue

the

100%

ending Nov. X,

year

after Nov.

1, 1983.

COMPANY
The Directors of

International Harvest¬

Company have declared quarterly
dividend No. 145 of one dollar and

Op-

197tii, Common Dividend

(85(f)

per

share has been declared upon the
American Tobacco

Company, payable

of business

November 10,

Harry L.

Hilyard, Treasurer

INTERNATIONAL

INCORPORATED

close
1954. Checks will

of

October

No. 175

26,1954

.,

/

The Directors of

of Directors

Board

today

International Harvest¬

Company have declared quarterly
dividend No. 159 of fifty cents (50#)

quarterly dividend of

a

on the common stock payable
15, 1955, to stockholders of
record at the close of business on

per

share

50# per share and an extra divi'
dend of 25# per share on the

January

outstanding capital stock of this
Company, both payable Decern'
ber 10, 1954, to stockholders of
record
.

Allied

Chemical &

per

Cents ($.75)

share.

($.15)

Both

dividends

per

December 10,

uness

payable

1954, to stock¬

close,

November 12,1954.

a

purpose

total of $3.00 per

of
to

the

in

1953.

or

October 26,

Secretary

1954.




value. Only shareholders

the

and

at

any

regular quarterly

the
Stock will be paid Dec.

A dividend of

1,200,000
Southern

of

declared, payable December 15,

-

on

adjourn¬

JAMES A. DULLEA

-■

.■>

u4

cents

shares

A

quarterly dividend of 30 cents

the "A" Common and
Voting Common Stocks will be paid
Dec. 3, 1954, to stockholders of
record Nov. 8," 1954.
R. N. Wallis, Treasurer
per

share

on

Secretary

of

dividend

A

Common:

record

of

(62'/2<)
of

YEAR

"

15,

at

the

been

1954, to
close

of

1954.

sixty-two

share

per

Common

Stock

and one-half
on

2,596,400

without

par

has
surplus of
net profits of the Company for the fiscal
year ended December 31,
1953, payable
December
15, 1954, to stockholders of
vajue of

Southern Railway Company

today been declared out of the

record

at

the close of

1954.'.»>*

-209th\

and Extra Dividend

A regular quarterly

dividend of

seventy-five cents (75#) per share
and an Extra dividend of seventyfive cents (75#)

per

share

on

the

Capital Stock of the Company have
been declared this day, payable
on
December 10, 1954, to stock¬
holders of record at the close of
business

on

November 5, 1?54-

The stock transfer books
main open.

business November

11

*

•

>

will' re¬

|

Robert Fisher

"j

.

J.

10™

share has today

per

November

business

"A" Common and Voting

$50.

stockholders

15,

October 27, 1954

T/4% (62V2<) per share
of Preferred Stock

shares

Debenture

of

26, 1954.

Railway Company of the par

value

3, -1954, to stockholders of record

thereof.

Montreal

The

Nov. 8, 1954.

27th, 1954, will be entitled

meeting

THE TEXAS COMPANY

Consecutive Dividend

dividend of $2.00 per share on

receive notice of and to vote at

ment

W. C. KING,

Debenture:

21 to increase the capital

par

NOTICE

New York, October

DIVIDEND NOTICES

of considering and, if

of record at the close of business

to

share-paid in 1954, the same
as

pursuant to the
of Directors, for

Company from 10,000,000

October

TULSA, OKLAHOMA

Company

DIVIDEND

Framingham, Mass.

20,000,000 shares without nomi¬

nal

FORSTER, Secretary

SUNRAY OIL CORPORATION

MANUFACTURING COMPANY

thought fit, approving Special By¬
law No.

Railway

til

on

Payment of these dividends
will make

Tuesday, November

Board

5.

Southern

ing, 1155 Metcalfe Street, Montreal,
of the

Nov.

Limited

Company, 21st Floor, Sun Life Build¬

call

record

Secretary

morning, at the head office of the

the

share.
are

holders of record at the

of bu

on

Quebec, Canada,

Special dividend of Fifteen
Cents

W. D. Bickham,

23rd, 1954, at 11:00 o'clock in the

Quarterly dividend No. 135
of Seventy-Five

will be held

quarterly

the close of business

at

Special General Meeting of the
Aluminium

EGER, Secretary

shareholders

The
on

1, 1955 to shareholders of record
Dec.
10,
1954 and the regular
quarterly dividend (No. 18) on the
second preferred stock, amounting
to 27V2 cents per share, will be
paid on Dec. I to shareholders of
W. D.

GERARD J.

to

5.

76)

November 5, 1954.

Record Date

Shareholder's" of

20

Nov.

the 4'/t per
cent
cumulative
preferred stock,
series A. will be paid at the rate
of 26/u cents per share on Jan.

December 15, 1954.

LIMITED

Dec

on

record

dividend (No.

COMPANY

er

A

directors, on October 15, de¬
clared a regular quarterly dividend
(No. 60) of thirty (30) cents per
share on the Common Stock, pay¬
able

HARVESTER
Dividend

October 26,1954

NOTICE
The

OIL COMPANY

in cash on December 1,

be mailed.
<

EGER, Secretary

SOCONY-VACUUM

GENERAL

of

Company

November 5, 1954.

GERARD J.

NOTICES

MEETING

Dye Corporation:

open.

of record at the

t

SPECIAL

Stock

remain

transfer books will

DIVIDEND

stockholders of record at the

1954, to

ALUMINIUM

the Common

The

United States Pipe and Foundry

—.

declared

011

quarterly dividend of seventy-five cents (75#)
per share and an extra dividend of one dollar
($1.00) per share on the outstanding Common
Stock of this Company, payable December
13, 1954, to stockholders of record on Novem¬
ber 19, 1954.

of Eighty-five Cents

dividend

regular

DIVIDEND

The

been declared

this day declared a

The Board of Directors

T
1954, to stockholders
close of business on

:

.

Secretary

following dividends have

Pipe and Foundry Company

er

1960

N. Y.

October 27, 1954.

The

NOTICES

DIVIDEND

NOTICES

DIVIDEND

Birmingham, Ala,, October 21, 1954

1960 will retire a total of

in

'the Common capitaTstocic

issued and outstanding in the hands

.

JOHN W. BRF.NNAN. Secretary & Treasurer

Common Stock of The

dividend of

and operates eight re-

owns

^

which

debentures

tion

A

Slock Dividend

gas.

finerieSi and distributes its refined

sinking fund for the new

maturity.

f\

A rcsular quarterly

of

to retire its outstanding

acjditions

lion

.

Common

trillion
*

feet

cubic

properties, and other property

' gas

privileged

COMPANY

exceed 600 mil¬

reserves

fi-

since

company

and

Oklahoma

the

ation and development of oil and
,

were

AMERICAN GAS

Street, members of the New York

Louisiana and estimates that its

-

AM) ELECTRIC

Ed-

Cali-

Wyoming,

Taxas,

Kansas,

in

NOTICES

DIVIDEND

G.

A.

& gonSj 499 North Eighth

war(js

be available for financing explor-

Inc.

Lessors

Equipment

with

connected

Thomas E.

Schuermann

L.

*n2 facilities in 25 states, chiefly

of-

of

Robert

and

Chronicle)

—

oil and natural gas in 14 states, in-

balance of proceeds will be added

this

behalf

on

Mo.

000.
; >
The company produces crude

to Continental's general funds, to

market

to

$371,-

in-

negotiated

large

brought

was

which
an

about

LOUIS,

productS.through dlrect market'

the

NOTICES

DIVIDEND

the^larg-

public

first

the

by

to

the bank's officers were

•

runs.

For the first nin£ months of 1954

fornia,

million will be used by

placed quickly, particularly since

#

and

refinery

3*« notes payable to banks. The

■

market, and wound up with only
some

yield

to

offerings

the

marks

company

Equipment

Cortland
1

the

however,

domestic'

in

2.937%.'

buyer

of

return

stand, fering

long

interest

Out of the proceeds of

a

,

the

The

1938.

more

fixed

lOIJi

of

price

a

yield

bid for

moment.

fund

to maturity.

nancing'

for the issue,

-

Throughout

year,

bewailing

they set up loud howls

the

production

(Special to The Financial

ST.

'

(0c«2g)

tQday

corporate

est

were

was

group

rate of 3%

setting

fighting among themselves,

were

crude

>•''

.

million Continental

accrued

$45

sponsoring

would

finding that they

upon

interest

investor

'

Two With A. G. Edwards

are

Price of the debentures is 101%

and

encouraging.

coupon

sharpshooters didn't like

and,

enter¬

oil

Bahr

Morgan

This financing, one of

indications

the

and

that

ting the market stand on its own
feet. The

Street.
'

.

g.

debentures

the market

reached

in-1984,

than

bid and let¬

stabilizing

the

$40,875,000 in

of

Stanley & Co- 1S offermS a new 057,000 and net income $31,337,- and Midwest Stock Exchanges.

debentures,

fund

sinking

today

they did by simply "pull¬

This

New England Inc., 68 Devonshire

$476,842,000

of

integrated

an

domestic

of

000

took

latter group

The

bid.

it.for just

by

.

2.937%

Co.'s $100,000,-

Oil

headed

houses
■

Continental Oil

:

.

cmoma.,)

t&peciai to thk financial chronicl*)

In 1953 it ranked ninth in

16th

invest-

of

group

their

to

again

circumstances.

by

ment

issue of $100

.

,,

,

"had8 been6"shaved Vm-

V Continental

gunning for the sponsoring syndi¬
cate's

turn

in

are

now
.

to

porarily

really

were

firms

.

nationwide

A

tied-up

such

regular pursuits, such as building

these

post, plus

asserted. At

he

and the conse-

of

release

from

at

shot

being

behind every pillar and
the

deal

profit out of the

were

<

quent
opera¬

continuous skirmish

who

a

way

"We

the

number,

tion proved a

with

is

prise.

Oil Go. Cebentufes

rolling

date

however,

around,
funds

their

of

(special to ™

to the outcome of the

as

undertaking

one

With Investors Planning

,

income

domestic

the big deal.

question

ui-

income

net

1953,

Offers Continental

any

ever

was

other

out- -

Continental Oil, which had gross

and

around.
-

u

nnn

in

held

are

ported t0 have a supply of thls ing $7.5 million long-t.erm notes. Investors Planning Corporation of

which they

period in

has

tal stock of $5 par value and $688

portion of the offering available,

of

scope

circumscribed

operations

bit for

the

Oil

interests

pipe line .companies,

deben-

new

'
I
1 ? vigorous in 000 purchase obligations and a
BOSTON, Mass. — Charles W.
""T?* °f Dealers 1Wer(!
pipeline subsidiary has outstand- Mitchell has joined the staff of

few of the

a

the

to

Continental

operating

Accordingly, quite

their

addition

standing 9,746,916 shares of capi-

stage

vigorous

t

i

in

up

premium,

a

tial

1, 1983.

"earmarked."

its share¬

to

70-day chore, breathed

a

sigh

ment

of

shares

2,500,000

The

to

snapped

were

capital qnickIy and moVed to

for the dura-

up

4%%..coupon

a

4.25%,

yield

of dealers and firms who

case

are

Bankers who

tied

was

dealer

and

underwriting
which

carrying

and

0

e annum

enng was

o

ending Nov. 1, 1955 to and operate over 2,600 miles of

term obligations, priced at(par,.tha principal" amount after Nov. crude oil pipe lines and substan-

.

,.

__

,,

phase of the Nationa

Another
ly

59

(1759)

aiotal of. 25*000 sharesi

to take up
at the

\X' ' "7

Financial Chronicle

The Commercial and

...

J,

MAHER,

Secretary.

October 22, 19S4

Treasurer

/

€0

The Commercial and Financial Chronicle

(1760)

...Thursday, October 28, 1954

applicants for help, had a

ness

good

Washington...
from the Nation'
»'»C»piUt

A

idea,

loan

CACKLE'S CALENDAR CORR

^ia

J OU

only kick in a
local comTrilttee

ready to back

were

of their

some

Administration

hower

achieved

have

to

.*

i

approach

break¬

volume of housing con¬
years to
come— V
-officials
hope — stimulated by

rising

are

from

one

year

old.

struction. for

credit.

sasy

In

Gorman

lyrical

release,

the

cations

whole

as a

24%

up

homes

than

much

a

actionary

law

demand.

As

a

FHA's

mortgages

houses
record.

credit

-under

;

ceiling

no

"I'd like to buy the

upon

amount of housing credit

housing is already taking hold.

credit

on

ernment

.

Applications for new 1- to 4family housing units under the

vastly

the

of

units,

of

subsidized
States

United

view

to

their

in

the

to

direct

loans,

guaranteed

ernment

applications,
well
over
half
for proposed mortgages on
jused houses and the balance for

under the Veterans Ad¬

ities

'new housing units.

More Than

Senator

Figures

Byrd (D.,
attempted to figure out
far the government had

Va.)
How

Harry

F.

into the business of "aid¬
ing"
or
subsidizing
housing
prior to the new and expanding
era of government subsidies un¬
der the Housing Act of 1954.
gone

minigovernment had sub¬
sidized prior to the new act, $60
billion of housing, either through
direct subsidies or government
loans and guarantees. It should be noted, of course, that the
"housing industry and the gov¬
ernment object violently to the terming of FHA a subsidy, for a "*
mortgage insurance premium is
a

very

the

-collected in

attempt to

an

the risk.

1949,

as

task

the Hoover Com¬
force

until

that

opined ^iit

there,

was

have

been

ministration
in

the

released

in rural

power

these

areas.

figures have

made

available for the first time

un¬

der the Eisenhower Administra¬

announced

was

that

4,965,962

United

farms

States

were

publicly
in
the
supplied

with electric current from
stations

This

amounts

number

of

June

on

to

92.3%

farms

as

of 1950.

1954.

of

the

reported

the country by the
reau,

30,

cen¬

in

Census Bu¬
a

a:

of telling how.

On

the

other

hand, like
must serve

any area

for

sure

eminent

only
can

so

long

by

credit, maintain

a

as

involve
So

absent

the gov-.'

forced

cheap

boom market

in housing.




conduct barter
Under

its

powers

old

SBA

for

scarce

of

was

Carl

Joins Olmstead & Mulhall
KALAMAZOO,

>

-L.

is

Swiat

-

now

&

Olmstead

Mich.—Thomas
associated

Mulhall,

with

Inc.,

123West Michigan Avenue. He was
formerly with the First National
Bank & Trust Co. of Kalamazoo*

started by the Eisen¬

idea

of

being

a

the

self-

We have available copies of

It "sparked" set¬

an

Analysis of

state

capital, with state and local in¬
itiative in determining just who

mate-

se¬

a

Mr. Burton

(Special to The Financial Chronicle)

the idea never

Administration with

up

in

engage

Vice-President

formerly

less.

committees ap¬
pointed by governors, to create
state and local
pools of risk
ting

to

McGlone & Co.

of .the previous
regional di¬
or

Street

recommendation.

help agency.

to

has bartered $121 million of its

commodities

was

avowed

CCC *

powers,

Salle

curities business.

the

course

this

to

hower

operations.

RIVERSIDE CEMENT
B

CLASS

COMMON

STOCK

recently prepared by

THE OVER-THE-COUNTER
SPECIAL SITUATIONS

SERVICE

nine

for farmers, whereas
years
ago farmers were

Therefore

were

it

is

stock

offers

portunity

an

for

exceUent op¬
capital

gains.

FOREIGN

fewer of same.

expected that

expanding its
existing lines as the
popi(lation increases, particu¬
larly in areas outlying present

will be sent

on

request.

i Carl Marks & Co. Inc.
TEL:

LERNER & DO.

SECURITIES SPECIALISTS

SO BROAD STREET

•

NEW YORK 4. N. Y.

HANOVER 2-0050

'

--

TELETYPE NY 1-971

REA will still be

business

analysis shows why this

This

A copy

of REA's customers,

when there

^

Of REA's total

were

77.3%

is*

non-

mortgages

is

CCC's

any

other utility, RE A with a monop¬

oaring

element

price-supported commodities for
critical and strategic materials,
but the Agricultural Trade and
Development
Act / liberalized

considerably

& Co. with offices at 105 South La»

about wound up as such.

only

guaranteeing and in-1

subsidy

of

$50,000

in number and increase in
resulting size of farms.

connections last June 30, 65.8%

the

*

cent has formed Burton J. Vincent.

age

on

will

Since of

tion

16, N. Y. (paper), 950.

shrink¬

of risk

taxpayer.

limit

Foreign

However, the

trend has been toward

far the government's assumption

the

the

And

place

in

loan

rectors of

foreign

Co.,.

&

CHICAGO, 111.—Burton J. Vin¬

several

here

met

and with; of course,
spontaneity,
recom¬

less,

has had the power to barter its

tion.

tral

for

Rinehart

(Special to The Financial Chronicle)

regional offices be em¬
powered to approve on their
own
motion, and without ref¬
erence to Washington, any loan
in the amount of $100,000 or

busi¬

—

Opens Own Firm

ad-j

SBA

operations Administration may]]■ would -have occurred to SBA
give them av/ay for famine re- -1 had not the consultants thought
it up themselves, SBA is sol¬
lief or for charitable distribu¬
tion.
emnly and with great serious¬
ness
It seems CCC for four years
giving careful considera¬

Some of

been

commodities

currencies.

indicating its place
of distributing

farm customers.

to

farm

business

there

costs

more

up

its

The

SBA

than

Agricultural Trade
and Development Act the De¬
partment of Agriculture may
sell
surplus
price-supported

53% of Farm

oly in

true

more

—

Barton J. Vincent

mended that the directors of the

an¬

ness.

Business

jset-back in the housing market,
was no way

is

it

York

ago

utmost

has

CCC

Finance

you

Hence, REA's farm business is

•'

However,
mission

cover

that

willing to pick

by the Rural Electrification Ad¬

It

He found that at

tnum

nounced

to

$60 Billion

stockpile/

Furthermore,

Depart¬

days

Under the

Rural

Runs

the

and

RE A Operates

Housing

Subsidized

consultants

gency

;

Y%(paper)/
Business

in

"consult¬

constitutes

committee.

visory

materials for the national emer¬

ments of Defense, Agriculture,
Interior, etc."

were

ministration

for

17, N.

Bradley

ants" to the Small Business Ad¬

barter of Com¬
Corp., commod¬
critical and strategic

Na¬

Inc., 232 Madison Avenue, New

com¬

that

of

committee

of direct
modity Credit

or more pro¬

grams

in the

F.

agency
is
equipped
advisory committee.

an

The

Business is picking up

advisory

—

Manufac¬

of

Every good modern gov¬

so.

with

an

recommend

Support

Leroy A. Shattuck and Joseph

"responsibilities,''/

d"

get

to

Business

:

.

and Home Finance Agency, and

the vet¬
erans' loan guarantees. Of these

to

mittee
do

a n

a

run

of the nicest things you can

is

do

pre¬

Expands Barter

CCC

loans,

way

ministration

powers
one

of

housing subsidies have
been going out through at least
30 programs under the Housing
another half dozen

were

Association

turers, 2 East 48th Street, New

CCC said.

government
and want to expand its
you

agency

dominantly private sources,

"These

getting

When

accommodated
;by the REA and the balance by
others

tional

expected that

Financial

Problems

rent, 54.3% were

•

,

Universities and

Their

York

30, of the 4,965,962 farms
receiving central station cur¬

The

since

this

of

half

"SBA-RFC" Plans Expansion

--June

others.

about

creased materially,"

credit
for
REA
private utilities still
have almost half the rural elec¬
tric distribution business. As of

the

extent

nomics, Ciudad University, Mex¬

barter activities will now be in¬

Despite the great liberality of

than $60 billion in grants,

priations.

less lyrical
about busting new records, re¬
ports a similar story, VA re¬
ceived requests for appraisals of
nearly 90,000 houses, with a
although

VA,

Senator

housing

Quarterly

—

ico, D. F., Mexico.

Jan. 1, 1953. "It is

government

insured loans, and direct appro¬

1950.

May,

since

said

years,"

Byrd, "the Federal Government

more

the

Highest volume under the pro-,
/jram

15

"In

has

section

FHA

new

35,000

totaled

•

credit

liberalized

more

terms
203

loans

direct

made

$306 million.

ness.)

rials,

projects,

amount of VA mortgage
credit
insured
through April
$22.5 billion, and the gov¬

calendar Jack Benny uses

the upgrade.

of electricity is on
;

gross

was

a

Furthermore, use

urban centers.

guarantee..; The

a

Research

Our Colleges and

.

under

kind of

figure his birthdays!"

to

thenv

extend

will

who

lender

(In only one category, apart¬
ment houses; is business down,
it is understood, although Mr.

information
this segment of FHA's busi¬

Economic

review—National School of Eco¬

ing limited only "by the number
of eligible veterans who find
the house they want and the

Mason omitted any

■';

'

Ceiling

the
which
can be guaranteed by the Vet¬
erans
Administration, that be¬
There is

used

of

sale

*'

y

the forced draft

for

last

to

"

>.

v

So apparently

billion

No

Has

VA

to an all-time

50%

rose

loans to an aggre¬

March 31.

under¬
existing 4

to
on

insuring

billion, and

of $24.3

$33.6

of

gate

and

consequence

applications

write

biggest

FHA prior

re¬

supply

of

guar¬

the

insured

has

better

old

the

under

and

authority

id&e government decreed that its
tracking should give mortgages
used

insurance

to the new act had an

*

break

coincide with
views.)

own

been repaid

of this total.

share

VJ(l*Qwer "Housing Act of 1954"
in

the "Chronicle's"

of FHA and

constitute

antees

Under the Eisen-

August.

<»ver

were

and may or may not

a

full,

Loan

Appli¬

insurance.

re¬

and the government's
contingent liability thereby was
extinguished prior to the opera¬
tion of the new act.
.C
in

Administration, announced that
-September was the biggest Sep¬
tember in the 20-year history of
*THA in terms of applications
for mortgage

liability, for

contingent

very large volume
VA mortgages had

Mason,
Commis¬
Federal Housing

P.

of

hand, the $60

the, other

On

(This column is intended to

flect the "behind the scene" inter¬
pretation from the nation's Capital

billion did not represent a Fed¬
eral

almost

an

sioner

< ;

office

day.

few months to

a

RFC's

occupying

SBA

and

loans out.

the

and sound more like RFC every

to the $60 bil¬

figures adding
lion

get

building and in getting to look

Furthermore, some of the

ones.

is

It

housing activities furnished
either no reports, or inadequate

through of the then . few re¬
maining barriers to a steady and
enlarging
supply
of
housing
mortgage credit. Hence the out¬
look is officially for a steady to

dropped,
to

told

was

.

.

soon

was

com¬

plete.
Many of the agencies
handling
the more obscure

appears

a •

admittedly far from

was

Eisen¬

compilation

Byrd's

Senator

D. C.—Some-

this fall the

gent with

a

hard-earned

own

conservative

This

early

and

Uncle

would

money.

W^rflNGTON,

brains.

when the

Sammy

-ft

plant,

good

a

.managerial

jtzm

Behind - the-Scene InterpreUtSwu

thousands of small busi¬

among

BUSINESS BUZZ

on

Investment

Telephone

y//;/'

■

"T

i1rti(rrirVi-'7 rfiVifliyirv V^iiilyftnf iWiin.Wfifcindtttit niA

...I uu

HUbbard 2-1990

.
mn

i

i■

liOlniirmA

Securities

10 Post Office Square,

Boston 9, Mass.
Teletype
BS 69