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ESTABLISHED 1S39
Cp^ISl'Ty
d/2
//A
Financial
Chronicle
Reg. U. S. Pat. Office
Volume 176
Number 5164
New York 7, N.
Y., Thursday/October 30,-1952
Price 40 Cents
.
Copy
a
EDITORIAL
As
In less than
ican
people
Trumanism
Role of Toronto Exchange in
We See
It
week
a
will
the verdict of
be- rendered
; Prime Minister of
Re-
a
Praising the
.
j publican party which appears on the surface at
business,
mathematicians Would
as
President's economic advisers says there is now stability
at
Calls the Exchange one of great institutions of
Canada, now ranking third in size on the American Continent. .'Points out progress of Canada since the time
w^en a smaN group set up the Toronto Stock Exchange,
but
warns
are
dependent
further development and high living standards
on hard and honest work. Holds Canada's
financial position is strong and "only
weaken it."
say) under political trans¬
we
ourselves
It is
The year
a
the
ronto Stock
niversary
while
jwhose vision
likely
develop in much the same way in the months
to come quite
regardless of whether the Demo¬
cratic party or the Republican
party is returned
victor next Tuesday. So far as this type of rea¬
soning is but part and parcel of, or a basis for, a
forecast of the general business situation or of
the course of the stock market, we have little or
no
disposition to enter the debate. If such con¬
as
this
reflect
present
reflect
same
in the months
or even
The
hundred
The
or
Continued
of
work
what
L.
M.
Frost
the
would
the
of
we
regard
as
the fathers of
44
TORONTO
Toronto
Stock
EXCHANGE
versary
DEALERS
address
24,
appear
Prinie
Frost
the
at
Canada,
Oct.
PICTURES—Candid
Toronto
in
Minister
Exchange, Toronto,
DINNER
Dinner of the
06t.
by
Stock
the special
free-world
bered
31
of
tural
at
Turner
Robert
from
June,
in
least
a
matter
the
the
period
in
Korea, to
inventory cycle.
The wide
on
page
40
*An address
by Dr. Turner at the 30th Annual Agricultural Out¬
Conference, Washington, D. C., Oct. 20, 1952.
100th
the
Anni¬
Exchange, held at the Royal York Hotel,
Pictorial Section, starting
on
page
23.
Municipal
OIL & MINING
Bonds
SECURITIES
Hawaiian Securities
Wires
Dean Witter
14 Wall
COMPANY
,
Co.
&
Street, New York, N. Y.
Bond Department
THE NATIONAL CITY BANK
BOND DEPARTMENT
:NT
San
Francisco
Los
•
Boston
•
Angeles
•
Chicago
50 BROADWAY
Dept. Teletype: NY 1-708
Los
NATIONAL BANK
BROKERAGE SERVICE
I
CANADIAN
of INDIA. LIMITED
Bankers
to
the
Government
Office:
26,
Net
Bishopsgate,
In
London, E. C. 2
Banks, Brokers and Dealers
Branches
Burma,
in
India,
Aden,
Uganda,
land
Hardy & Co.
York
Stock
Exchange
York Curb Exchange
Broad St.
New York 4
Pakistan,
and
£4,562,500
Paid-up
£2,281,250
Capital
Capital
banking
and
description of
exchange
Tele. NY 1-733
Western
OF
OF THE
NEW
YORK
Cities
BONDS & STOCKS
El Paso Electric
Power
Securities
Company
COMMON
Executed
Analysis
Exchanges
DEPARTMENT
&
Co.
ESTABLISHED 1891
MEMBERS NEW
YORK STOCK
EXCH.
business.
Trusteeships and Executorships
Tel. DIgby 4-7800
other
CANADIAN
Markets
Goodbody
£3,675,000
The Bank conducts every
Orders
Canadian
CANADIAN
Protectorate.
Fund
10
BANK
NATIONAL
upon
request
Somali-
Authorised
Reserve
On
U. S.
Canadian
Or
Ceylon,
Kenya, Tanganyika,
Zanzibar,
Denver
Spokane
SECURITIES
in
Kenya Colony and Uganda
Head
NEW YORK CITY
Angeles
and
STOCK and BOND
•
Salt Lake City
Bond
Honolulu
CHASE
THE
1915
Members of All Principal Exchanges
OF NEW YORK
and Security Exchanges
JSr
J. A. HOGLE & CO.
ESTABLISHED
Members of Principal Commodity
30 BROAD ST.
30
fact,
Continued
look
Pacific Coast &
Municipal
BANK & TRUST
Nexc
of
WESTERN
Direct Private
Members
of
1950, when hostilities started
Chemical
New
sections
HAnover 2-3700
TELEPHONE:
Members
certain
world.
State and
Securities
for
say
remem¬
an era
of rising prices for
products—that is, agricul¬
products and raw materials—
...
U. S. Government,
■
give later, I dare
swings in the rate of inventory accumulations by business
1952.
at
on
Antjl, for
as
about now, forms a complete
tbe
taken
I shall
in
State and
pressure
economy.
primary
in
page
be
may
that the next decade will be
country—
One hun-
on
shots
think,
private demand put
As
Centennial
24,
I
reasons
ago
years
our
1952,
one
outstanding things
Continued
*An
page
hundred
cases
much
a
one
indeed, beyond
optimistic of its
business, in education and in political life.
Mr. Eisenon
Exchange of
has become
century has added
most
one
year
and
history of Canada is the greatness of the vision of
those whom
in
the
rise, but at
the
have dared dream.
One
the
our
great success,
founders
Hon.
ago
to
business activity completed its course,
and once again the sirength of public
great institutions of America.
to
up
years
continued
The
country.
our
Stock
unprec¬
heights, and in certain
remembered as the year when the
world-wide lull in certain sectors of
also desire to
we
upo^i its contribution to
little
of the
the years to come
regardless of whether Mr. Stevenson
gresitness,
as
slower rate than before.
men
and enterprise brought
province and
belief
a
those
to
by economists
country of the free world,
general, the level of activity remained at
it into being and developed it into its
that, whatever
may have been said or may be said during this
election campaign, the policies and the
programs
of the national government are
likely to be much
the
off. In
it
that
tribute
remembered
one
edented
con¬
paying
be
and
Ontario
great
a
will
an¬
us
this, it has of late seemed to
to
clusions
of
hundredth
one
growing disposition to reach the
clusion that the basic business situation is
-
anniversary of The To¬
Anniversaries sometimes provide,
On this
1951
when, first in
then in another, a war-stimulated boom suddenly leveled
hundredth
one
Exchange.
occasion for stock taking.
an
the year
this occasion, which com¬
on
:
not
Canadian institution, the third larg¬
est
Stock
Exchange in America,
In much of
was
pleasure to be here
memorates
which, according to the forecaster or appraiser,
are
likely to hold regardless of the results of the
forthcoming elections.
there
a
a
,
can
formations.
That is to say, effort is
being made
to formulate forecasts or
appraisals of the outlook
high level and
"stagnation." Warns, however,
present situation is not without dangers, since demands
on
productive resources "may verge upon the inflation¬
ary." Points out demand for primary products exceeds
supply, and undeveloped nations should he helped by
U. S. investment abroad and by more U. S. imports. Calls
attention to current study of Public Advisory Board to
Director of Mutual Security on our foreign trade policies.
progress.
i
are
full cycle
completed, so that ab¬
normal demand for goods has ceased, newest member of
token of Canada's
a
a
of business fluctuation has been
and foresight of the organizers of
courage
hails its hundredth anniversary
particularly
largely centered in Wall Street, have been
busily engaged
in trying to foresee
developments during the next
.j several months. It is perhaps natural in the cir;
cumstances that factors are
being sought which
are
believed likely to remain invariant (as the
those sections of business which
Holding since outbreak of Korean hostilities
Ontario Province
the Toronto Stock Exchange, Ontario's Prime Minister
-
least to have been in substantial
degree re-unified.
For
some
weeks,.
;
Member, President's Council of Economic Advisers
By HON. L. M. FROST, Q.C.*
•
of
case
Eisenhower at the head of
vs.
By ROBERT C. TURNER V
Canada's Economic Growth
the Amer¬
hr the
World Economic Ontlook
also undertaken
115
BROADWAY
NEW YORK
I
NORTH
'
DoMimox Securities
Grporactoh
40 Exchange Place,
New York 5.N.Y,
LA SALLE ST.
CHICAGO
ira haupt & co.
Members New
and
WHltehall 4-8161
Exchanges
ill Broadway, N. Y.
WOrth 4-6000
Teletype NY 1-702-3
York Stock Exchange
other Principal
Boston
6
Teletype NY 1-2708
Telephone:
Enterprise
1820
financial Chronicle
The Commercial and
2
.
.
Thursday, October 30, 1952
.
(1614)
The
POSITION and
WE
IN
TRADE
in the investment
Bank of Manhattan
each week,
intended to be*
(The articles contained in this forum are not
Chase National
Partner* Oppenheimer, Vanden
& Co., New York C'ty
Guaranty Trust
Manufacturers Trust
paying
American Express
Stock
Co
Associates Investment Co.__
Exchange,
$.50
quarterly,
yielding more
5 Vs %
than
New York Hanseatic
Corporation
Established 1920
N. V. Curb Exchange
120 Broadway, New York 5
Teletype NY 1-583
BArclay 7-5660
I
•
last
Members
Curb
York
New
120
Stock
York
New
Exchange
Exchange
YORK 5
BROADWAY, NEW
Tel.
Rector
2-7815
'imiiiiimiiiiiiiiiiiiiiiiimiiiiiiiiiiii
Trading Markets
Alabama-Tennessee
10
Gas Co.
Co.
to
standard
the
Lynchburg, Va.
LD 33
llllllllllllllllllllllllllllllllllllllllllll
improves.
Spring this year, stringent
restrictions
credit
in¬
ex¬
restrictions, receivables of Traders
company's stock.
The company is one of Canada's
foremost automobile financing
Sales of automobiles
in
Canada
increasing sharply,
are
old cars and
The company's business
VIRGINIA-WEST VIRGINIA
NORTH and SOUTH
CAROLINA
new
have expanded con¬
siderably during this current year
to a new record, and it is safe to
that the excellent management
of this company assures a
dynamic
participation in the extraordinary
-F. W.-
expansion
CRAIGIE&CO.
Telephone 3-9137
economic
Canada's
of
these
Under
would
with
circumstances, one
expect
other
most
in
that
Ltd.
would
Canadian
H. Hentz & Co.
shares
show the special
Members
Stock
Exchange
these
New
York
Curb
Exchange
shares
New
Exchange
Cotton
Inc.
Exchange,
of
Cotton
Orleans
Trade
Exchange
other
shares
funded
the
For
other
N. Y. Cotton
Exchanges
Exchange Bldg.
NEW YORK 4, N. Y.
CHICAGO
DETROIT
GENEVA,
PITTSBURGH
small
one:
SWITZERLAND
Corp.
which
is
None of the American
has
larger
working
than
its
capital
receiv¬
ables. The Canadian company
has.
as
Corp.. 1.95:1
in
the
makes
presently out¬
at¬
shares very
"A"*
Ltd.
The number of shares is
tractive.
small compared to the vol¬
very
thus making for
of business,
ume
Standard & Poor's,
high leverage.
at
the
one
of its
of
Sep¬
end
9 9
is
SUGAR
Raw
—
Refined
—
Liquid
Exports—Imports—Futures
reputedly second rich¬
the
in
county
the
Farm land is sell¬
States.
United
STREET;
WALL
NEW YORK 5, N. Y.
3
group
which
agricultural
est
DIgby 4-2727
ing here at a minimum of $300 per
acre.
The small community has
size where
a
a
community
shows distinct ad¬
household wells or
system
debt amounts to only
the
has
village
in' the
standing 261,299 Traders Finance
LAMBORN & CO., Inc.
an over¬
community of 650 successful farm¬
water
1.56:1
payment
interest
on
$11,386 and
never
any
defaulted
of principal
obligations.
or
A
Sioux Oil Co.
COMMON
Inquiries
STOCK
Invited
quality and quan¬
people have voted tax
obligations of $23,000 for the es¬
The
,
Producing, Refining
Distributing Company
supply has been developed
water
and tested as to
tity.
A
and
tablishment of
a
water system.
A
engineer has certified
the
proposed
plans, and based
upon adopted rate structure has
estimated
average
debt service
competent
of 1.73 and average in¬
3.62.
The water revenue bonds of the
JAMES M. TOOLAN & CO.
67 WALL STREET
NEW YORK 5, N. Y.
HAnover 2-9335
Teletype NY 1-2630
coverage
of
a
split of the "A" shares.
year
Earn¬
earnings
average
Dividends
moderate
I
from
*There
it
safe to
to
per an¬
have
to
The
1948
share
paid
compared
feel
been
earnings,
expect
also
120,000
that the "B" shares have
voting
have
"A"
a
power.
poorer
shares.
"B"
more
a
.
fered
finally issued and of¬
yield 3.65% at a time
are
to
when
(1951)
high-grade obliga¬
maturity are
tions of comparable
offered
to
.<
-
-1
N. Q.
B.
OVER-THE-COUNTER
INDUSTRIAL STOCK INDEX
The dif¬
yield 2.10%.
ference here of 155 basis
12-Year Performance of
points in
35 Industrial Stocks
yield is the price an investor pays
for
higher
a
quality
obligation
FOLDER
ON
REQUEST
possessing the best marketability.
I
submit
that
for
a
true
tax-ex¬
generous
However, the "B" shares
market compared to the
.
village
that
will continue its pol-
shares
outstanding which in every respect rank
pari passu with the "A" shares except
are
terest coverage of
should be substan¬
tially above last year's $6.23.
and
companies
NEW YORK 4, N. Y.
polit¬
ing called to public attention.
Picture for a moment a small
ers
1926
STREET
Telephone DIgby 4-0985
worthy of be¬
reached
Associates Investment Co..
BROAD
and
vantages over
cisterns. The total tax supported
C. I. T. Financial Corp..—/•1.9l:-ldebt
including
all
overlapping
Commercial Credit Co.... 1.62:1
the company
vestment Co. and General Accept¬
or
being
7.04:1
The C. I. T. Financial Corp., Com¬
ance
this
Traders Finance Corp. Ltd.
1951 were over $6 a
a
favor¬
Ratio
num.
and
Established
80
obliga¬
looked
Tuller
N.
Request
on
inate
ical entities
Robt.
Quoted
LEWIS & STOEHR, INC.
cer-r
municipali¬
ties
and
these
n o m
er
SCHEDULE V
comparison, I am using the three
States
but
tions of small¬
ratio is given below.
General Acceptance
Tel. NY 1-1932
Sold
Analysis
vestors.
n
tax
7.19:1
of
New York 7
CORPORATION
qualifications
Ratio
comparison
A
bilities.
Dealers Assn.
Security
Y.
N.
Bought,
tain classes of
able ratio of current assets to lia¬
largest finance corporations in the
United
Members
to
being
as
"best" for
tember, mentioned the expectation
States.
time
also
revenue
extremely
company's
5s
Gersten & Frenkel
Tel. DIgby 9-1550
careful
of
operations by a large
debt. - This accounts for
attractiveness of ings this
the United
in
Ref. 4s and
interesting
usually
are
8.41:1
similar discussing this stock in
compared to similar
Wisconsin Central
qualify their "best liked" security
as
being "best" not only in point
financed its
mercial Credit Co., Associates In¬
And
this
for
Corp.. 8.27:1
Aceptance
in the United States. publications
give comparisons which
Below I
York
Board
with
statistically
Far from it, however.
New
Chicago
compare
unfavorably
enterprises
York
forum
studying
Corp.
common
the stock of Traders Finance Corp.
1856
In
This
life.
RICHMOND, VIRGINIA
Teletype: RH 83 & 84
General
4s-1967
super cold
I
Associates Investment Co._
is supposed to
say
MUNICIPAL BONDS
cars.
in
Obligations of Smaller
With
Co
Deb.
Conv.
Stock
i
Credit
Commercial
&
are
Municipalities
Writers
Traders Finance
Finance Corp. Ltd. have increased Corp. Ltd., one is also struck by
steadily from year to year, and the fact that the corporation, con¬
with it the dividends paid on the trary to American companies, has
both with regard to
Commodity
Revenue and Tax
Corp. Ltd. 5.17: 1
the
C. I. T. Financial Corp
8.59: 1
Up
In spite of these
isted in Canada.
companies.
Specialists in
demands
credit
their
crease
Scott, Horner &.
Mason, Inc.
New
light
Rgts.
Foote Mineral
Com.
.
favorable
&
Common
Exchange
stands out in
if one compares
also
Ltd.
offices
City
York
Traders, Finance.
of
stock
New
in
Studies
them.
stallment
Established
The
York
New
Members
one
Corp.
branch
our
Partner, Tuller, Crary & Ferris,
shares,
gives confidence and, thus, makes
people anticipate the continuation
of good
income by buying the
necessities immediately instead of
to
too
not
shares
ROBERT N. TULLER
attention to
book value of
Corp. Ltd. "A"
the
Finance
Traders
the
draw
to
that
fact
the
my
more
Bell System
like
would
of the main reasons
SCHEDULE III
calling Traders Finance
Corp. Ltd. "A" the security I like Estimated Book Value at 12-31-52
as
Pet. of Current Price
best.
Experience in this country
has shown that the more the liv¬ Traders Finance Corp. Ltd.. 102.6
68.8
ing standard rises, the more re¬ C. I. T. Financial Corp
course is taken to financing dur¬
Commercial Credit Co.__._
82.2
able goods purchases. The reason Associates Investment Co.__
74.8
is clear.
An expanding income General Acceptance Corp.__
65.1
is
for
wires
150 Broadway
I
this comparison,
continue
To
57
these
increase
an
in
The
future.
country have shown that those
Dan River Mills
Since 1932
Oppenheimer
H.
VV.
from $8.5 billion to $22 bil¬
Canada's
living standards
been boosted during this pe¬
deferring
Commonwealth Natural
Tele. LY 62
Corp.__
General Acceptance
this price-earnings ratios.
in¬
SCHEDULE IV
come
groups which benefit most
by improved living standards in¬
Traders Finance
Natural Gas Co.
Moore Handley Hardware
Co.____
Co.__
Credit
Commercial
compared to its current
riod by 50%, or much more than
quotation, is far higher than that
ours.
This increase in the living of the other four American com¬
standards, which is still continu¬
panies.
ing,
frfc pONNELL 8c Co.
Ltd..
Associates Investment
na¬
as
rate
of
96.8
35.1 selling at a very low price-earn¬
34.2 ings ratio, offering good yield and
39.1- exceptional possibility for capital
50.8 appreciation without undue risk.
distant
T. Financial Corp.-..-
I.
NY 1-1
Dow Chemical
company
split
a
well
as
dividend
the
The
shares.
consider
shares
Receivables
of
the
Since 1917
Pet.
as a
northern
lion.
Direct
to year.
American
may
Capitalization
C.
have
dividends
its
increasing
of
from year
terparts, they seem to be more
attractively priced than similar
tional
Rights & Scrip
of
Exchange
Orleans, La. - Birmingham, Ala.
Mobile, Ala.
shares with their American coun¬
Total
Curb
St., New York 4, N. Y.
HAnover 2-0700
New
SCHEDULE II
has
York
39.8
equally well. In this respect,
figured total debt at par and all
listed securities at current prices.
output
risen
in
York Stock Exchange
New
25 Broad
T
Traders Finance Corp.
years
Members New
Members
2)
(Page
icy
neighbor.
Specialists in
Steiner, Rouse & Co.
Partner, Tuller, Crary
Ferris, New York City.
&
Ltd.
Corp.
Finance
dynamic
growth of our
Canada's
of
with
To
sum
up,
Traders Finance
the four American companies
Corp. Ltd. "A" common shares
mentioned above in a ratio of re¬ offer one of the most attractive
ceivables to
their total capital,
participations
in
Canada's
dy¬
Traders Finance Corp. Ltd. comes namic
growth.
Comparing these
the
in
Obligations
63.4
Corp.__
receivables
Comparing
Traders
acquisition of
this equity
gives excel¬
lent participa¬
tion
Tax
Municipalities—Robert
off
that
believe
Credit
General Acceptance
Canadian
Home Insurance
Financial Corp
T.
Commercial
selling at about $39
Toronto
the
on
I.
C.
time is Traders Finance Corp.
"A" common,
and
N. Tuller,
security I like best at this
Ltd.
The
National City
Bought—Sold—Quoted
'•
A
Smaller
104.4
57.6
43.8
Corp. Ltd.
Traders Finance
Corporation Ltd.
Finance
Pet. of
as
Receivables
Irving Trust
Member
2)
Revenue
Working Capital
Broeek
Members New York Stock Exchange
Traders
Vanden
Co., New York City.
&
SCHEDULE I
WINFRIED II. OPPENHEIMER
First National
Associate
Broeck
(Page
Chemical Bank
Oppenheimer,
Partner,
nor
discussed.)
they to be regarded, as an offer to sell the securities
are
Louisiana Securities
Oppenheimer,
H.
Winfried
—
Corporation Ltd.
Finance
Traders
particular security.
a
Bankers Trust
Alabama &
Selections
Their
a
for favoring
participate and give their reasons
Participants
Forum
different group of experts
and advisory field from all sections of the country
A continuous forum in which,
Week's
This
Security I Like Best
empt investor holding a portfolio
,
Continued
on paae
21
National Quotation Bureau
Incorporated
46 Front Street
New
York4,N.Y.
Number 5164
-Volume 176
.
The Commercial and Financial
.
.
(1615)
Chronicle
INDEX
Outlook for the Domestic Economy
By JULES
BACKMAN*
World Economic Outlook—Robert
business conditions
following Korean outbreak, concludes in this period, expansion
of war production and plant equipment has more than offset
decreases in civilian economy. Lists sustaining and expanding
forces in future outlook as well as unfavorable factors. Sees
after reviewing data
on
a
important
very
a
I
-
underneath
prop
our
ord
business forecasts start with hopes
billion
as
—Ira U.
goals, and- billion
and
then the fore¬
builds
caster
the figures
and
them.
So
I
if
m
a
r
where
i
e
z
will become
d
of
more
ahead
period
are
we
Steel Hormones and the
with
profits,
terms
of
the
come
in
prevailing
com-
early
the
minor ex¬
started
Inventories
moving
personal consumption expendi¬
tures
for nondurable goods, ex¬
practically
in
minor decline in one
in 1951, ; in practically
every
For
quarter since Korea.
durables, there was a sharp
increase in
immediately af¬
sales
Korea, reaching a peak in
ter
-
the manufacturing
risen about $3.5
know, starting in the second quar¬
ter of 1951, the total has actually
been below the pre-Korean level.
What
billion.
expenditures
about
for
roughly some $25 to of 1951, when an annual rate of
at annual somewhat in excess of $27 billion
as compared with somewhat "was
achieved.
Throughout 1952,
than
$26 billion prior to vthe rate has fluctuated around
Figures
were
$26 billion each quarter
rates
more
the Korean
start of
the
War.
taxes
reached a record peak in the first
quarter of 1951, then dropped very
sharply to the third quarter, and
have
crease
all
•
a
the
above
practical
very
1951
purposes
minor
in¬
peak;
for
a
sidewise
movement for the past year.
changed since then.
Unemployment
long time. We have over¬
employment to the extent of at
Corporate
profits after taxes least a million and a half persons
reached a peak in the last quarter .tcday because we normally figure
long,
'
Corporate
•
Profits
sharply to That frictional unemployment —
1951, and have that is, people moving from job to
since
shown
relatively
little job, seasonal unemployment, peo¬
change.
The level is about 10% ple who are temporarily laid off, ■
below the pre-Korean rate.
You businesses going into bankruptcy,
might be interested in having that and so on—runs somewhere about
figure. Before Korea—that is, the 2.8 to 3 million. So, when we get
quarter before Korea—the annual 1.4 million in unemployment we
rate was $19 billion.
It then are very much overemployed.
reached a rate of $26 billion in
Department store sales thus far
the fourth quarter of 1950, fell to for 1952 have
averaged 1% under
$17.3 billion the fourth quarter 1951, but if you made month-toof 1951, and is estimated at $17 month
comparisons
you
would
billion the third quarter of 1952. find that in the first two or three
of
1950,
then dropped
22,
and Research Corp.
Cinerama, Inc.
(Editorial)
rAs We See It
5
Securities
Canadian
Coming Events in Investment
Dealer-Broker Investment
Einzig—"British Treasury
From Washington
U. S. Airlines
8
Recommendations
Singer, Bean
20
Financing and Inflation"
10
Ahead of the News—Carlisle Bargeron
Funds
Mutual
sons
were
38
—
Wilfred
Observations—A.
—.
very
1952.
on
page
Our Reporter on
____
Offerings.
_____
Now in
"Security Dealers of North
32
*
are
Washington and You
General
of
*
Not available this week.
of
Twice
Weekly
1
Gardens, London,
Drapers'
E. C., Eng¬
have
specialized in
PREFERRED STOCKS
Reg. U. S. Patent
WILLIAM
25
Spencer Trask & Co.
(...
*
r
...
25
"
Members New York Stock Exchange
ST., NEW YORK 4, N. Y.
B.
DANA
COMPANY, Publishers
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REctor
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SEIBERT,
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TELETYPE N. Y. 1-5
•
-
1952
Phone
Company
Dominion
Thursday, October 30,
.
President
BROAD
TELEPHONE HAnover 2-4300
Copyright 1952 by William B. Dana
2-9570 to 9576
HERBERT D. SEIBERT,
WILLIAM
Office
Character
berships
COMMERCIAL
FINANCIAL
Office
Department Heads
Stock
land. c/o Edwards & Smith.
and
CHRONICLE
Post
Securities Handled
Names
32
The
including
Numbers
District
52
___*
which business is con¬
and date established
Street' Address,
50
(Walter Whyte Says)
Tomorrow's Markets
and
alphabetically,
and
comprehensively detailed:
ducted
5
Industry
America'*
book
page
Firm name under
2
_*
1,400
geographically
46
Best_____
The State of Trade and
OF
containing 7,900
listings covering all United States and
Canadian cities.
Listings are arranged
A
33
Registration
The Security I Like
RECTORY
STOCK and BOND HOOSES
10
Salesman's Corner—
Securities
D I
19
—
Railroad Securities
Securities
BfflSBSggBgigSgSBg^^
18
49
—
Securities
Utility
Public
PL, N. Y. 5
NY 1-1826
*
_____
Governments
Security
Prospective
Published
For many years we
40 Exchange
Teletype NY 1-1825 &
5
May
Reporter's Report
Our
•
16
....
and Bankers—
News About Banks
the compari¬
sour
because of
Continued
MACKIE, Inc.
&
43
Activity
Notes
NSTA
Soundcraft
8
Field
Indications of Current Business
Reeves
31
—
&
Light
18
Bookshelf
;Business. Man's
Puget Sound Power
Cover
__i
Stocks
months of this year
stenographic report of remarks by
Prof.
Backman
before
the
Investment
Association
of
New
York,
New
York
*A
City, Oct.
Associated Development
52
Regular Features
the third quarter of
,
51
Top $22 Billion
'
.
Detroit
•
36
Freedom!
Bright Outlook Seen for Rails
Mutual Bank Deposits Now
Chicago
34
Savings—
•
Angeles
• " Los
Philadelphia
•
22
Education and Business, Partners in
Continued
Direct Wires
HA 2-0270
in
September
un¬ reached 1.4 million, which is the
lowest figure we have had for a
practically
remained
billion,
$27.5
before
profits
Corporate
;
Teletype NY 1-3370
BO 9-5133
21
English Gold and Silver Markets
Public and Private Debt vs.
Broadway, New York 6
61
21
Hailed
Centenary of Toronto Stock Exchange
Bank and Insurance
plant and equipment? They rose •
very sharply until the latter part
Incorporated
20
75% Margin Requirement
Protest
J.F.Reilly&Co.
17
Third-Quarter Profit; Reports on Public Trans¬
$3 billion since the
quarter of 1951, and, as you
first
Nomi¬
of America Receives
Association
action Study
no
middle of 1951;
inventories
have
Industry
Gas
Finance
to
1953
for
nees
change since then. However,
manufacturing inven¬
tories have continued to rise while <
retail and wholesale inventories
have fallen. The figures show re¬
tail inventories have fallen about '
a
Available
4
NYSE Reports
up
rapidly
right after Korea
and
were
pretty close to their peak
in June,
1951; they have shown
quarter
17
Growth
Investment Bankers
have continued to in¬
fairly steadily since Korea.
There has been a steady increase
ceptions,
for
Continental Aviation
16
Deemed
Funds
of
part
crease
cept
Service to Utility Industry
General Aviation
AmoV
Industrial production rose stead¬
posable income rose sharply until
the end of 1951, had a moderate ily through 1951, was moderately
rise after that,
and in the last lower just before, and, of course,
few months have been flattening during the steel strike, when it
fell very sharply.
out.
The latest fig¬
Personal consumption expendi¬ ure is the highest since Korea.
tures, with one or two
U. S. Airlines
14
Inventions—Roger W. Babsori
New
»
1951.
dis¬
and
12
Expanding Civilian
B. Jolliffe
—Charles
Reeves Soundcraft
11
a
National in¬
Dr. Jules Backman
Gas Companies
Carry Through a Transition by
Can
Television's Increasing
favorable in the
because
Cinerama, Inc.
9
Economy—Herbert R. Silverman_;__
*par.isons will be made with the ;
few of the im¬ $17 billion a year ago rather than,
portant
na¬ as was the case in the early part
tional figures. of 1952, with the $26 billion rate
in
8
—George F. Shaskan, Jr
We
WHitehall 4-6551
Programming for You
Sound Investment
having
Dept.
1953
Buchanan
C.
—Thomas
.
STREET, NEW YORK
WALL
Ferro-Alloy Industry
Policy of FPC Toward Natural
Rate
!
cash for 'em!
Securities
Telephone:
7
99 Wall.
to
go
pay
r
99
C. Keeley
—William
of
ourse,
that if they stay at this
level year - to - year comparisons
sum-
us
profits,
level
;
and the Taft-Hartley Act
Capital Investment and the Economy in
-—Nathan M. Koffsky_:
'
'.evel, and from that it follows,
very
briefly
1951 had rec¬
you
even
Obsolete
6
Slichter
H.
—Sumner
by the third quarter of
have stayed at about that
951,
help
might
the
We'll
F. Murray
Current Labor Trends and Problems
dec ined
it
think
I
.hat
unless
4
'___,
Cobleigh
—Roger
year-to-year comparison would be,
ower.
I repeat I am emphasizing
to
facts
support
biilion
3
Ore and Optimism
Capital Supply Prospects for the Gas Industry
compare
rate
'EM WITH YOU!
t
Economy—Jules Backman
Canada—Oil,
in
"O's"
Three
The
and, obviously,
the current $17
the $25 and $26
rate of early 1951, the $17
rate
would
suggest
the
level
you
f
'
'
'
CAN'T TAKE
YOU
Economic Growth
Cover
____;
Outlook for the Domestic
economy." Predicts
first part of
The
that if I want to
know where I am going I better
find where I am at.
Too often
always find
L. M. Frost____:
—Hon.
1,-1
downward movement sometime in 1953.
up
AND COMPANY
Dover
C. Turner.
in Canada's
Role of Toronto Stock Exchange
Republican victory "as negative factor for the short-term," and
holds national and private debt increase will result in "pulling
out
Page
Economics, New York University
Professor of
Prof. Backman,
licHTtnsTfin
"
Articles and News
3
25
Park Place
REctor
CO., INC.
New York 7, N.
2-9570
Y«
The Commercial and Financial Chronicle
4
.
.
Thursday, October 30, 1952
.
(1616)
the number high grade ore reserves afore- this year with the magic word
Hollinger's slice
of "Canada" in their titles.
Canadian oils, mentioned.
has over 6,900 owned retail out¬ this pie is 17.7% of Iron Ore of
With
some
misgivings in our
lets, a refinery capacity of about Canada, (directly and indirectly minds about our own immediate
British
two
The Three "O's" in Canada-
capi¬ owned) 51% of Labrador Mining
aggressive drill¬
sells
is more par¬
McColl Frontenac
ticularly
North Shore Exploration Co.
1951 year-end, there was
$7.40 in net working capital for
inger
sion
the
economic
cour¬
Toronto
Stock
Ex change.
in
Starting
400.000
capacity of around 49,000 barrels.
lots
is
nearer
search
The
for
great, but this
Other
the consumer.
oil is not for
tion may not seem
oil
A
miles;
square
favored
would
and
include
persons
Ed¬
and
Calgary
this
Exchange
volume of
apiece,
Stock
Toronto
same
ore
Available to Finance
sweepstakes—the Steep Rock
field in northwestern Ontario.
the speculative
Here
in
second
ranks
now
Ex¬
change 1951 volume 642 million;
Toronto 561
million) and third
in total market value, of all the
security markets in the world;
traded
shares
and
seat is
Toronto
a
Y.
(N.
Stock
worth
now
$90,000.
The
growth
present
mag¬
market is
Toronto
the
of
nitude
and
significant not only in itself, but
as
a
rather impressive gauge of
the
scintillating economic prog¬
of the Dominion, especially
ress
the
in
five
last
be
may
a
Canada
years.
cold country, but it of¬
fers
rare
the
flowering
fertility
of
Gas
vehicle that
first
The
big
about is
talk
dabblings
"O"
oil.
There
of cash
out
or
nothing,
will run
or
before they
can
ever
If the penny dreamboat
you happen to hold a few thou¬
sand shares of is shy of cash, drill¬
gush.
ing experience, and acreage, then
watch out. You'll get better bub¬
bles
from
Ivory
hurt
won't
had
drillings,
in
duced little
and
when
soap,
much
they
they
burst!
to
want
I
been
out Al¬
1914 but
My second "O" is for ore. The
dwindling supply in our famous
as
'V-v
Prime Canadian Companies
So
and
as
rein
some
to
unbridled
speculative zeal,
uninformed
Mesabi Range has
set
in,
come
and
far back
markets
transportation
as
were
to
remote,
population
centers, meager in those earlier
With the big Imperial hit
days.
at
Leduce,
ago,
short
a
five
years
all this has changed and to¬
day
Canada,
90%
of
now
its
instead
crude
producing
oil
over
of buying
outside, is
Va
of its
needs; and this fraction is getting
larger
every
day. The vast West
Canada
petroleum production
tential,
centering
in
generally believed to
po¬
Alberta,
cover
is
over
the
the
Labrador
management
does
project
million
10
tons
tunas for further
velopment
line,
some
may
I suggest
360
The
miles
north of the Gulf of St. Lawrence.
Here
in
a
of
zone
about
12,000
Basis
Now
mism.
It's
begin
for
the
for
hard
this
on
s,
depression of 1930
T„
a
a
U n i versity,
predicted that
where
in Labrador, were
granted to two
subsidiaries of Hollinger Consoli¬
dated
Mines. These compa¬
Gold
nies, together with M. A. Hanna
Co., Armco Steel, National Steel,
Wheeling,
Youngstown,
and
Re¬
up
of
this
government
each
since
year
Perhaps
less
World
optimism
stems
burdensome
devoid
War
tax
of EPT and
II!
from
a
structure,
more
flexible
for
corporations with wide earning swings; more favorable to individuals
because of no
capital
gains tax. Perhaps optimism oozes
from
branch
a
which had
banking, system,
failures
during the
depression, and has proved sound
for 140 years. Certainly some optimism
an
no
must
land
from
come
area
pride:
in
20% larger than the
U.
vately
sell
nor a
solicitation of offers to buy
in
Then, too, what about uranium?
any
If
of these securities. The offering is made only by the Prospectus.
as-
the
atom
is
the
future,
Canada's
known
reserves
power
second
of
the
of
place
in
uranium
is
persuasive to security in war, and
profit in peace. And so it goes—
225,000 Shares
1,200,000
13 V2
horsepower,
Gulf Sulphur Corporation
miles
square
millions
a
of
of
forest,
hydroelectric
brand
oil
new
pipeline
to
abuilding from Alberta
the Pacific (Trans Mountain—
(Par Value Ten Cents
a
Share)
interesting, better look it up)
and
COMMON STOCK
very
over
of
U.
rattling around this half
tinent
share
billion
S.
there in 1951, and only 14,400,000
are
Price $3.00 per
$7.5
already invested. Matter of
fact, the one big lack in Canada
is people. Only 190,000 migrated
money
altogether
—
roughly
con-
the
r*
rru
romance
j
x.
u
n
will
be
obtaining,
additional
nancing
Marcus Nadler
on
fi¬
fa¬
vorable terms.
"Although
^ 1S evident that the
business
operate,
FiycbfT
one may state
with a fair degree of certainty
that
swl"ls> b?th UP anf
down, w1^ probably be avoided,
Dr. Nadler stated,
*n °P}er words, while business
coitions, as in the past, will
continue to fluctuate, a depressioil 0
?nftfy*?e that occurred
during the 30 s is not likely. The
population is steadily increasing,
the standard of living of the
majority of the people is rising,
and the economy is dynamic in
character. It may therefore be
concluded that the expenditures
*>y the gas industry were warranted and that the demand for
Sas will continue to grow,
.,
Another question facing the gas
industry, Dr. Nadler commented,
is
also
not
hard
to (answer,
"American corporations of high
Credit standing will not find it
difficult to obtain the necessary
capital, both in the form of debt
and
equity funds, for further'
development.
In judging theprospects for obtaining .money
through the sale of 4>onds it
should be borne in mind that
the savings of the country have*
become institutional in character
and
that institutional
savings*
particularly as regards insurance
companies and pension funds,
will continue to grow. As funds
accumulate in their hands, theses
institutions are under pressure
to invest, and therefore-the flow0f capital going into bonds will
^
continue
to
firow
continue to grow.
population of New York State.
The
grow
diffi¬
experienced
i
debt, in
a
con¬
to
no
culty
surplus,
and reduction in national
—
will
and
it
miles lies a fabulous de¬ derives from sound government
posit of iron. Licenses to exploit finance;
a
balanced
budget,
a
about 4,000 square miles here, and dollar
that
sells
at
a
premium
20,000 square miles further East over the U. S. variety, and—think
a
to
already made,
the gas indus¬
to
Perhaps
ship in platinum, nickel and
bestos; and in second place
aluminum, gold and zinc.
offer
u g h capital
expenditures
try
S.; in the world's largest priowned
railroad;
in the
world's largest production of plup
tion in this section is Hollinger and paper (three out of evry five
exploration, has the money to
Consolidated Gold Mines, second pages of
our
newspapers
are
drill, and the management brains largest Canadian gold producer, strictly from
Canada); in fish,
addition to its big stake in furs and wheat; in world leadernecessary for progress and profit. in
an
h
square
in the
Company
Canada, projected to create
and McColl Frontenac?
ore
shipments
of
five
million
Imperial Oil Limited, Inc., in¬ tons in
1955, twice as much in
corporated 73 years ago, is the
1956; and ultimate output of 20
largest producer, refiner and seller millions a
year.
To bring this
of petroleum products in the
vital element to civilization, a $50
Dominion. A $430 million com¬
million railroad, running 360 miles
pany, over 70% owned by Stand¬
from Burnt Creek south to Seven
ard Oil of New Jersey, this is the
Islands, on the St. Lawrence is
Tiffany of Canadian Oils. Sells
now
under way.
today (N. Y. Curb) at 33 paying
The most obvious ore specula¬
$1 currently. It has led Canadian
This advertisement is neither
despite the
tinue
tell
to
"
unlikely,
is
*n 4add^?'ng .tha,
S Association at Atlantic City,
pf'
'. A' Marcus
Nadler' Professor °* Finance at
New
York:
"O"—opti¬
topic.
ob-
Holds business conditions
tained.
Optimism
third
de-
readily
Trough,
Labrador
i
necessary
be
can
year,
riding both sides of the Quebec-
jjv
.....
™ar,cus, Na.dlerl sa3rs additional
up a
consideration of
public all have lined
robody came up with a gusher of the prime oil companies of Can¬
$200 million Iron Ore
ebony gold; and even if one had ada: Imperial, British American, of
berta way, as
in
but
of this solvent and savvy company
Industry Growth
n/ia^,.o
as an
ultimate possibility;
global and ore here is far less costly to
scurrying for iron ore, not unlike transport. Steep Rock Mines has
the
oil
rush; and Canada has 7,008,000 outstanding shares. They
to earnings have frequently been
come
up with two areas of vast are
quoted
at $6 in Canadian
thrown to the winds, and a num¬
The first is what is funds.
promise.
ber of companies either have pro¬
known as the Labrador
for
prise.
field
wilderness,
The "Ore" Leaders
of
pouring of drilling company se¬
curities. Well, let's face it—a lot of
these are operation rat-hole!
Standard criteria of ratios of price
enter¬
climate
private
of
gleam
the
Ungava
(Cana¬
swift
riches; and led to prodigious out¬
with
dian)
this
Ample Funds Deemed
r
peasants and pikers.
sands South of the Border
optimistic
wind
Canadian travelogue on
S '
? ,s
the same accent I started off with,
Consolidated common namely on the "O"—oil, ore and
(sole capitalization), optimism. HappyBirthdayToronto
The stock has paid some dividends S. E.l
Nice to see you selling at
in each year since
1916, except par—100 that isf
one, and last year disgorged
18
cents a share. Current quotation
SfBSS SSCSTiSomS
Ira U. Cobleigh
We're
j
Hollinger
It takes monton, Royalite, Husky Oil and may enthrall you, is Steep Rock
money.
For exploration alone, Refining, Pacific Petroleums and Mines, Ltd., owner of a hematite
there
were
ore enterprise slightly to the west
over
$250 million will be spend Canadian Superior. Before invest¬
but 60 paltry
of Port Arthur, Ontario.
This is
railroad miles in Canada this year. Almost every ing, get the facts, set limits to
in all of Can¬
major American oil company »is your optimism, gird your loins
a
petroleum prowl
on
the with patience, select well, and
ada, and with on
tons in 1951 and has been, in proseats selling Great Plains, and there is a pleth¬ you may glean prairie petroleum
duction since 1944. No one expects
for a fabulous ora of wildcatters. The glitter and profits.
But watch your step in
Steep Rock to be as big as the
five bucks glamor of all this has lured thou¬ the moose pastures!
when
1852,
So
outstanding
ore
companies
smaller
informed
by
Canada.
that!
economic
10% royalty production agree¬
and only ment with Texaco Exploration Co.
5%
of
this
geophysical provides a call on the possibilities
tesy suggests that today we take about
Garden of Eden has been pros¬ of 1,755,000 acres of undeveloped
a
deep statistical bow in the di¬
land
and
6,760 producing acres
rection
of
Canada
which, this pected to date. Even so, Canada
is $14.75, Canadian
in Alberta. If you like assurance
week, is cel¬ produced 132,000 barrels a day in
Coming a few hundred miles
here. Texas Company owns
ebrating
the 1951, and about 160,000 a day, so
nearer vthe Great Lake Steel mills
100th
anni¬ far in 1952. Compared to the lush 56.52% of the 2,607,962 shares of
is the second major entry into the
oil sands of Araby, this produc¬ common.
versary of the
International
of
about
daily ?aclP
with
refiner,
a
economic future, we doubt not at
all the vast and sustained expan_
and Exploration, and 60% of HollAt
around 21.
with a few
investor's book.
Maple Leaf items for the
an
ing program. Common
"Expanding Your Income"
of dynamic Dominion progress,
A swift panorama
day, a sound
a
talization and
COBLEIGH
By IRA U.
American,
integrated
70.000 barrels
Oil, Ore and Optimism
Author of
of
In spite of the widespread talk
*
Canada holds for
the security buyer is amply shown
may
be obtained from the undersigned
about the shortage of equity capi-
not
Copies of the Prospectus
purchase
tal," Dr.
Nadler continued, "ex-
prairie oil shares, but
by steady dollar entry into such
perience
of
only
by the
eager
of assorted
standard equities as
PETER MORGAN & CO.
31 Nassau
Street, New York 5, N. Y.
j
the
past
few years
demonstrated
,
'
„
*
.
_
that
.
_
Pacific,
Abitibi
Power, Consolidated Paper, Con-
when a sound utility offers stock
solidated
The movement
ada,
Canadian
Smelting, Hudson's Bay
Company,
Telephone DIgby 9-3430
h
Bell of Can-
anda
Above
and
Massey-Harris,
Bank
of
to the public it is generally taken,
Nor- in
Montreal,
the
of utility stocks
few
years
has
in-'
creased the confidence of the in-
that, two major American vestor
mutual funds have been launched
last
in this type of
security*
and there are no reasons to be—
Volume 176
Number 5164
..
The Commercial and Financial
Chronicle
.
(1617)
lieve that
change in this respect
will take place.
One may there¬
fore
the
answer
second
r7
question
to
obtain
in
the
the
form
further
debt
or
development
in
what
So
long
high level,
a
ent,
to
Fcod Price
firm.
tivity
begins
however,
erately,
cies
of
Rates
of
interest
proaching
banks,
no
from
crease
be
rate
in
the
charged
the
prime
by
the
material
further
level
Sometime
is
next
when business activity be¬
cline in money
place.
moderate de¬
a
rates should take
Under these circumstances
may
panies
and
other
corporations
will
not
rate
of
that
assume
in
have
gas
high
interest
pay
grade
money
higher
a
than
com¬
-
of
need
to
In
prevailed
during the second half of
1951."
the steel
counted
on
to
turning out
last
more
steel than
Aubrey G. Lanston, President of
Aubrey G. Lanston & Co. Inc., 15
Broad
Street, New York City,
takes pleasure in announcing that
sistant
Vice
elected As¬
President
-
of
that
organization.
With Mutual Funds Assoc.
(Special
SAN
to
The
Financial
an
Howard
nected
Lewis
with
has
Calif.—
become
Mutual
Fund
nation's
before, in
ever
average of 106.9% of
There is
con¬
rather
by
steel trade.
rate to go
Mr.
terests
capacity.
By the second quarter rugged competition is expected to
spread from specialty items into tonnage products and even before
a
tough selling job will be necessary to move some of the
lighter products such
light structural and shapes and other
as
not
assure
a
third
A.
Wilfred
ous
May
[sic] sound policy to get out of long positions which
themselves wrong by declining in price."
prove
by
your position."
[Apparently
selling when your stock is up ]
for
issue,
not from the
or worse
the
the
come
one
yet,
a group
last
week
to
the
16 months.
highest point in
man
are
a
and
Profit
Sharing
Plans—Meyer M. Goldstein—Re¬
produced
from
"The
Financial
Handbook"
Pension
Planning
Avenue,
Y. — Paper —
—
Company,
New
260
on
16, N.
request.
operations
ings
in
change
Gold
in
and
Foreign
France—12th
ment— Bank
Settlements
Deal¬
for
Ex¬
Supple¬
International
Basle, Switzerland
—
—Paper—9 Swiss francs (original
edition
date,
and
in
francs;
two
12
complete
volumes
supplements
volumes,
90
series
including
of
revoked
ulations, 120 Swiss francs).
to
Swiss
three
reg¬
.
.
or
.
a
cheap
leader
that
is
jumping
in
small safe return
a
his money
on
•
inevitably loses, while the
intelligently to double
chance
of
getting
the author has
And,
who sets out determinedly and
part of his
a
away
man
with it."
capital has
[In
a
pretty good
recent radio
a
program
said, "That's really what the book's about."]
crucially: "Deliberate planned speculation is,
in
my
opinion, the best and safest method to improve one's chances of
constant
convertibility into cash
without
maintaining its
or
loss."
Continued
rose
30%
cars.
and
on
page
39
Packard
swung
both companies
into vol¬
Nash-Kelvinator Corp. showed
a
parts
shortage'
...and increase
The agency expects 483,000 cars will have been
completed for
in United States
plants, 10% more than the
in
441,424
September
Concerning
1953 model
as
October
were
Regulations
on
200%,
a
54% gain in production last week following
which "slashed" output in the preceding week.
Madison
York
Copies
Motor Car Co.'s jumped
ume
mover
year ago.
Chrysler Corp.'s output in the week
Pension
slow
lazy man's investment."
a
who invests for
past week, compared with 101,317 in the prior week. Last week's
figure was 22% higher than the 90,136 autos assembled in the like
week
a
preserving the purchasing power of capital
Ward's "Automotive Reports" said
109,929 cars were built the
liquidity."
.
of such shares, but by concentrating
outstanding fast-trading
"Mutual funds
•<
selection of
cars
8%
.
right direction."
"The
rose
an
is
thinking un¬
equally good
.
should
in
They are presently operating at 50 to 80% of capacity, due in
part to lack of structurals, wide plates, and
heavy castings, con1
eludes "The Iron Age."
gains and trading prof¬
a good speculation."
.
Authority from makers of kitchen ranges, food freezers, lawnmowers, clothes driers, metal furniture and others.
production
Look for capital
Against diversification: "The greatest safety lies in putting
all your eggs in one basket and
watching the basket
safety
>
is still hampering mills in their ef¬
forts to move record
tonnage into the hands of their customers.
Car builders were knocked flat
by the strike, and have had a
dreadful time trying to restore
production.
alumnus, if not the principal, of the l'm-proudABC's include such maxims as:
"The first thing for the average venturer into Wall Street
to decide is that it's a
step in the right direction to restrict pur¬
chases and sales to liquid listed securities.
I like
tion
shortage of freight
reading the financial news be¬
breakfasting in his office at 7:30
before 10 a.m. in digesting market
A good investment must first of all be
reason
Additional steel requests have also reached National Produc¬
Auto
star
prejudiced
are staying so strong
breaking production and shipments, continues
-
Not that he did
via the statistician's
"Nine times out of ten it is better to sell a stock which
down because it is then so much easier to do
your
The strongest drive for steel among civilian manufacturers is
coming from Detroit. Here the competitive race for the consumer
market is intense. Conversion
deals, which had been expected to
wither in December, now hold the
key to auto output in the early
A
the
"It is
This explains why steel appetites
<
way,
routine of
"Forget dividends.
its.
business
1953, states "The Iron Age."
hey-day.
the hard
that-I'm-a-Speculator-School, his
Industries sensitive to boom
psychology have apparently
decided to eat their steel cake now—and
fight for more in the first
months of
up
bulletins and wire reports.
mills.
this trade weekly.
come
and spending the time
a.m.,
begin to
in the face of record
gamut from cooking to archi¬
of the few highly successful vet¬
fore sunrise,
cycle is putting
new zip into a number of steel
consuming industries. This is be¬
ing reflected in unrelenting pressure for early delivery from the
quarter.
the
one
and indefatigable analyst of com¬
reports, to partnership in a leading brok¬
erage firm. But he still follows that glamor¬
,*
the
Busi¬
published
slide-rule
enough to sustain an
margin of profit, declares this
postwar upswing in
be
to
pany
As
Steel producers have known all
along that the ingot rate would
have to decline sometime. The
present feeling is that when the
market does ease, demand will still be
good
$5),
pp.,
of the trader's
erans
that
items.
346
United
Loeb, whose wide extra-financial, in¬
run
tecture, is
then, it adds, steel people don't expect the ingot
tailspin.
a
school, is Fi¬
(Boston,
Nov. 10.
Even
into
Merritt
D.
Service,
equiva¬
mistaking the fact that steel business is excellent,
no
Robert
ness
and
Asso¬
ciates, 127 Montgomery Street.
site pole of the logic-embracing
nancial Independence Through Common Stocks
Steel Insti¬
or
—
investment-speculation clearly and author¬
on
breezy Wall Street best-seller spelling out the fascinating credo
of the
frankly self-defined speculator, The
Battle for Investment Survival by Gerald M.
Loeb (Boston, Barron's Publishing
Company,
Inc., 192 pp., $2.95). And almost at the oppo¬
steelmaking furnaces
comparable interval.
a
Investment-Speculation
Making-A-Quick-Buck
vs.
itatively illustrate the basic contradictions in the prevalent ap¬
proach to that art-science. At one philosophical pole we have a
the outlook will continue that way, at least until the second
quarter of 1953, states "The Iron Age" in its current review of the
Chronicle)
FRANCISCO,
the
castings,
lent to
in
were
The record total, according to the American Iron and
tute was 2,221,000 tons of ingots and steel for
The
By A. G. Lanston Co.
was
with
week
trade authority.
Robt. Allen Elected
Allen
that skilled workers
books
new
industry the strong production pace that's being
the steel order backlog at an early date
operating rate that will
Robert D.
Two
clean up
continued
was
in¬
present
gins to taper off,
one
unless
happens,
event
expected.
year,
ever, many producers found
short supply.
capital
a
in the nation's total industrial output, it continued to hold
vance
Purism
—
close to the highest level attained since the close of World War II
and was slightly above that of a year earlier.
Material shortages
in the week were much less evident than a few months
ago. How¬
ac¬
and
increase
commercial
Notwithstanding the interruption last week in the recent ad¬
pres¬
change.
rapidly ap¬
peak,
a
an
as
for
are
unforeseen
some
such
at
continue
business
undergo
On the Art-Science of
J
the credit poli¬
Reserve
authorities
to
Business Failures
is
and
the
bound
are
is
will
demand
Industry
business
business
downward,
though only mod¬
even
the
By A. WILFRED MAY
Index
Auto Production
bor¬
turn
to
will decrease
the
to
on
it
as
Once
and
.
Commodity Price Index
the
interest
as
rates
money
be
to
of
will have
will also depend
activity.
at
rate
companies
gas
row
Observations..
Retail Trade
State of Trade
future.
"At
Production
Electric Output
Carloadings
capital,
equities,
necessary
of
Steel
The
by saying that sound gas com¬
panies will not find it difficult
for
5
a
and
made in
greater
than
any
month's
volume
since
from
your net
484,223.
June, 1951.
A shortage in labor and
steel, however, may prevent auto
companies from meeting their planned schedules for continued
high rate production, according to "Ward's."
capital gains!
"While overtime continues
in strong use at many of the car
taxing steel availability for some pro¬
ducers to the point of forcing a return to more normal
instead of
overtime operations," the report said.
makers, such schedules
are
Living costs eased after
a
series
of
In tax matters, a
penny gross
highs, according to
the Bureau of Labor Statistics. Its consumer
price index dipped
0.2% in the month ended Sept. 15, brought about
by a 1% decline
in retail food prices.
The mid-September index—190.8% of the
1935-39 average—was 2.3%
higher than a year ago and 12.1%
above pre-Korean June, 1950.
-
saved is
a penny
net
new
earned. A
new
tax
primer, "Capital
Losses," prepared by
•
build your net
tax
report from the United States Department of Com¬
reveals that the nation's retailers did
$14 billion worth of
business in September, 7% more than a
year ago.
After adjust¬
ment for seasonal
factors, sales were 4% greater than in August.
September volume in durable goods, such as
staff, shows
you
in clear,
concise, non-technical text and example how you
can
A recent
our
Gains and
costs
income
up,
simply by cutting your
merce
MONTANA
OIL AND GAS LEASE
Excellently located 640
and
gas
lease,
acre
oil
Musselshell
County, Montana.
Would consider
with
1
r
to
Box
level of $2.6
billion, reflecting
was
a
Auto
12% gain
sales
over
went
Write
associates.
No.
N 1030
Commercial & Financial
Chronicle,
Place, New York 7, N. Y.
25 Park
or
up
phone for Tax Primer F.
recovery in passenger car
production from the slump in August caused
by steel shortages.
G. A. Saxton & Co., Inc.
Trade volume
contributing lease
responsible
Write
appliances, rose to $4.0 billion. This
August after allowance for seasonal factors.
a
Timely, authoritative, handy. Free
interested investors.
automobiles, furni¬
ture and
30% to
to
down.
for the Christmas season this
year will be the
largest in history. That's the view of leading retailers attending
the Boston Conference on
Distribution. Increases over the 1951
holiday season of 1% to more than 10% in both dollar and physical
volume were predicted.
Particularly optimistic was George Han¬
son, President of the National Retail Dry Goods
Association, rep¬
resenting 7,500 stores throughout the United States. Mr. Hanson
70
PINE
STREET
NEW YORK
5, Ni Y.
WHitehall 4-4970
DEALERS PLEASE NOTE:
Multiple copies available at
our
cost.1
•
Continued
on
page
42
K
6
The Commercial and Financial Chronicle
(1618)
outlays for
MURRAY*
the
York City
Most of
been
in recent years have
us
concerned
so
could
quate
that
in
live
we
high
a
ings
sav¬
fact
ac¬
counts for
having
our
been
able
curities
in-
to
crease
This
commitments.
our
the
tactor in
since
the end of World War II.
1945
without
the
on
hant
capital
markets
without
the
tarian
of
objectives.
our
the
and
The high
attained under
American capitalism is responsible
remarkable performance.
of living
for the markets which are the
centives for expansion and
creates the savings
which
in¬
it also
are
the
for
funds,
unstable
nessed
This
key
capital.
of
For
accumulation
and
liquidity ceased to decline.
that in spite of a
volume of retained
are
earn-
under
some¬
...
Real
also
estate
financing
to
have
we
may
appears
jeak.
Thus,
through
strain
the
the
on
volume
its
passed
have
been
period of se¬
capital mar¬
kets
during the last two years and
some easing in the situation might
well occur.
The exact timing of
from
periods of such a development is difficult to
the bond •foresee, and the capital markets
coinciding with a dearth may be under some strain for
strength and weakness
market
or
abundance of
an
The
in
offerings.
new
quite a few months ahead. Nev¬
ertheless, barring a material ac¬
past 18 months, since the un¬
price
aggregates
1949, cor-
arrying of larger inventories at
higher prices.
capital mar¬
productive
facilities.
Individual
savings are not enough, however,
in a highly industrialized nation
where projects require extremely
effective
since
has
example,
recurrent
1951,
included
weaknesses
in
celeration in the defense program,
it would appear that eventually
June,
the
combination
December,
1951, and
in recent
weeks, while fairly significant re¬
ume
coveries
the
took
vening
place
ing in
the inter¬
in
of
part
amounts into the
the
a
stable
vol-'
for the
business will
of
lead
to
relief
direction of the flow of many small
Corporate bond
prices, the sensitive barometer of
of
savings and some slacken¬
the demand for funds on
channels
indebted
are
we
and to
banking system
to
our
commercial
flexible
and
strong
most productive
great
our
institutions. The gas in¬
an excellent example of
savings
dustry is
bow
system works to develop
our
natural
great
resources,
place
to
those
to, induce
without
have
borrowing
abroad, without the
exces¬
of bank credit, and with¬
use
nationalizing
out
con¬
production
achievements
possible
from
sive
such
of
been
same
the
services which they enjoy.
cf the
All
finance
to
sumers
tries, all
breadth
basic indus¬
our
Thus
am
sure
that if in
1939
visualized the size of
1952 outlays for plant and
our
equip¬
residential
housing
con¬
struction,
and
working
capital
ment,
needs of business,
we
would have
despaired of meeting such
mendous total in
The
ner.
rocketed,
so
an
demands
for
know
as we
a
orderly
funds
so
tre¬
man¬
sky¬
well, but
did the flow of savings through
the
principal savings institutions.
Life insurance companies, mutual
savings banks, \ savings and
associations, and corporate
loan
pen¬
sion funds had about $2 billion of
r.ew
ment
in
1939.
had grown
year
The
we
By
to $.9
1951,
this total
billion and this
it should exceed $10 billion.
figures
are
need of the
all
the
ability of
savings
economy
growth
and
evidence
our
high
to cope with the
development of
new
productive capacity.
♦An
address
by
Reserve,
flat
Murray at the
Ifinancial Conference of the American
Gas
Association, Atlantic City, N. J
C
25, 1952.
range.
The
question
morning
before
us
pattern
is whether this
which we should
during
the
is
this
the
expect
decision
row
struction
of its
and
on
to
or
new
reasons
which
are
Situation in Prospect
but
While this year's $10 billion of
institutional
funds
seeking
rd
.lew
nvestment
period
has
been
jry
generated in
a
would follow from
a
by the Treasury to bor¬
large scale at long term
refund a sizab'e proportion
floating debt. At the moment
reasonable to believe that for 1953
ply of funds from other industries
-nri 1954
f
funds
laps
count upon a
we can
of comparable
flow
size, per-
in the $8 to $10 billion range.
.'.may
become
seems
somewhat
gressive. This does not
ever,
Thus, the outlook for the supply .have
f funds
that
the
gas
less
mean,
industry
ag¬
how¬
will
easy
time meeting its
substantial
expansion
programs.
satisfactory.
an
is
The projections made bv your as¬
competition the gas in¬
dustry will encounter in trying to
thirds of the capital expenditures
The
more
critical
question
pew much
attract
total.
its
share
of
the
available
Your most
aggressive rivals
will undoubtedly be the electric
utility, telephone, chemical, and
petroleum
industries.
residential
housing and public im¬
In addition,
sociation indicate that about two-
during
1953 and
1954 will be for
natural gas
transmission facilities.
This suggests that there will be
a
corresponding
financing
new
concentration
in
the
of
pipeline
companies.
provements will present very large
for funds.
On the other
Any company or industry which
seeks large amounts of new capi¬
hand, railroad equipment borrow¬
ing and the financing of expansion
tal
in
.
are
basic
raw
materials
capacity
probably past the peak.
the
funds,
constituted
have
at
frequent
intervals
has
to
contend with the problem of indi¬
gestion
broad
principal market for all
of
Over
new
a
pe¬
their bond invest¬
typically equaled or
years
have
ments
outlet
tional
their
for
in
the
funds
through the process of acquiring
the corporate bonds held directly
by individuals. Nevertheless, these
market.
Within
limits, the appetite of inves-.
I
have
no
specific
make on this score
that securities con¬
vertible into common stock at the
developed.
to
believe
holder
the
of
option
might
be
In
institutional investors
have shown a much greater in¬
terest in equity investments, and
looking some years ahead, it might
be feasible for the gas industry to
make a greater appeal to this in¬
terest. We have seen how the oil
industry, for example, has out¬
lived the sinking fund
stage in
instances.
certain
in
suitable
recent years
its
financing
and
now
securities
vertible
to
uses con¬
advantage
investing groups will have a good
supply of alternative outlets for
despite the fact that it is also dis¬
posing of an exhaustible asset in
its current operations.
Distribution companies and
combination transmission and dis¬
their funds.
tribution
companies
tablished
market for their equity
At
finance
to
natural
new
a
pipeline
gas
clear
seems
be exceedingly dif¬
that it would
ficult
it
moment
the
interstate
on
a
basis
its
organizers.
Although the
tainty as to the status of the cer¬
tificate of convenience and neces¬
sity of the Algonquin Gas Trans¬
mission Company may be an iso¬
lated
case
involving no serious
threat to the first mortgage ooncta.
this
episode is
reassuring tc
not
Accustomed
investors.
they
as
securities
es¬
investors of the
It would ap¬
among
institutional
have an
type.
that eventually the pipelines
seek to reach this same
uncer-, market.
This
means
that ulti¬
which would be satisfactory to
art
pear
should
mately capitalization ratios will
be substantially altered to enlarge
equity base, always assuming
regulation permits such a de¬
velopment.
This would help to
round out the appeal to investors
the
that
of all types
wishes
which every industry
in its period of
make
to
certificate as th<
rapid expansion.
the corporate struc¬
Another group of factors con¬
ture, it is most disquieting to have tributing to the need for a higher
its permanence brought into ques¬
proportion of equity money re¬
tion.
After all, in other areas o
lates to the changing character of
the public utility field there
f the gas business.
As expansion
usually
no
question about tht becomes more dependent upon the
basic right to do business in the
development of the more intensive
to
the
having
of
keystone
designated territory.
Of
to
in
confidence
of gas company
impor¬
profitability
the
of
Federal
in the North¬
Commission
Power
ern
the
operations by the
decisions
recent
Natural Gas and Colorado In¬
in
The long term
corporate bonds mu.st
be satisfied that the
not
service
of gas, with the disappear¬
usage
fundamental
more
borrower
can
only the present debt
but also debt issued in the future
previously untapped mar¬
as
New England, it is
evident that growth will tend to
more in such lines as space heat¬
ance
of
kets
such
which
ing
At
higher
stable
time
same
prices might
field
rising
the
the
of
factor.
load
to
less
contribute
because
costs
be re¬
ducing the competitive advantage
of
gas,
with the result that earn¬
ing power would be subject to
moderately wider fluctuations de¬
He pending upon both economic and
will be suffi-r weather conditions. If the evolu¬
cient equity money on hand and tion of the business is along these
in prospect to provide a margin lines,
it
is
logical that fixed
of safety
against future contin¬ charges, preferred dividends, and
gencies. The cost of money phil¬ sinking fund requirements should
osophy for regulating the rate of claim a smaller proportion of rev¬
return,
if
consistently
applied, enues. The common equity should
would lead to the excessive use of be substantially increased in order
to
finance
expects
further
expansion.
that there
the inability
senior securities and
future.
of
for investment in the gas industry
and that competition for the sup¬
of
savings banks, and corporate
pension
investor
stability inherent in the
these savings.
It seems
of
tual
terstate Gas cases.
-
bulk
These groups, especially
the life insurance companies, mu¬
policy,
prosperity and full
The Competitive Position of the
employment, there is reason to ex¬
Gas Industry
pect only a moutiuie
*.*•'
tf.e event of some slackening in
We are entitled to believe, how¬
general business. Reference to past ever, that there will be an ade¬
experience indicates the high de¬ quate volume of funds available
gree
in
as
the past.
pursue
too likely
to materialize,
they should be kept in mind
they should tend to moderate
recovery in prices over the
near
will
investors
credit
pears
a
financing
for
should
neither of. these contingencies ap¬
financing.
The
appeal
apparent,
consequence
ihead when the gas industry con¬
templates a record volume of con¬
expenditures
for
this would place renewed pressure
on
the
bond market.
A similar
immediately
years
The
be to institutional
restrictive
now
more
a
altered by govern¬
If the Federal
operations.
is ex¬
the sinking
could be usefully em¬
moreover,
fund money
but
tance, however, is the blow given
reassuring out¬
capital markets could,
be
course,
ment
relatively
a
outlets
Mr.
of
not
within
years.
This moderateiy
look for the
far,
fluctuations
available for invest¬
money
past two
been penetrated and we have seen
,
had
we
have
market,
however, the lows of
June, 1951 for new issues have not
because of the size and
of our domestic capital
market. I
capital
from the pressure on bond
prices which has been in evidence
shown
alternating forecasts of foul and
fair weather for new financing.
them at the disposal of consumers,
and
months.
panding,
As long
being dis¬
industry
the
and
proposal
borrowing
exceeded the supply of new issues.
with alternating
the
favorable
more
They have been finding an addi¬
corporations
ngs,
pegging of Government bonds, for
large
de-
until
what less pressure to raise money
.'or the expansion of plant and the
a
primary means for financing new
the
liabilities
continuously
suggests
verest
kets,
time in
in
the
smaller
between
equilibria
ac¬
government se-
first time
)orate
going
to
bona marxet mignt not re¬
tne
sult
quarter of this year when,
the
.or
and
current
eriorated
econd
of
time
cash
becoming less
gas reserves are
covered
to
riod
rise
we
to offer higher rates of
whet
sated appetites
corporate bond issues.
to
is
it
new
investment.
funds for
as
explore all potential mar¬
In other words, the industry
and
m
to
of
cash
of
years
ployed in new construction.
In
spite of the traditional practice of
providing for debt retirement at
kets.
must be prepared to pay higher a rate consistent with the expected
life of the reserves at the time of
rates than its less
acuvely bor¬
the financing, it may be that ul¬
rowing competitors for funds and
timately a somewhat more flex¬
to provide the quality of securities
ible financing medium could be
in best demand. Even a better tone
return
The
jurities
savings
in the
have wit¬
growth
spectacular
demand
Many factors contributed to this
standard
dramatic
the
recent
to that extent
make new loans.
circumstances
these
necessary
in
factor
bolster,
to
to
eager
Under
in
are
.atio
Federal
race
and
less
financing
that they
terms.
demands.
principal
means
liquidity of nonfinancial
corporations as represented by the
banking operation
activities outside of
banking system.
result of this
a
be
can
their previously taken positions
tive.
central
As
a
other
receivables
the commercial
series of authori¬
five-year plans to reach
necessity
feverish
the
that
expansion
jalances is also
since
medium for
the
been
for ' lending
Roger F. Murray
and
been
the capital market
has
debt
a
strain
severe
to
their
the
bond
by about 50%
has
This
wide¬
upon
working capital requirements
carry enlarged inventories and
j-y
Government
plant capacity
market
which
1954.
indefinitely in the ab¬
even
greater pressure
armament
The
of course,
is,
why the
reason
into
based
the demand for funds represented
meet
to
order
in
is
plant
of
from
during the five years 1947 through
1951
had to sell upwards of $12
billion of U. S. Government se¬
economy.
This
effect
doubts
of
pace
maintained
residential
housing, and state and local im¬
provements has been so great that
this group of savings institutions
tion to the
body of
that next
investment
view
spread
for funds for industry,
atten-
the
to
continue
latter
Equilibrium in the
considerable
a
business
in
of
consequences
1953
that
will witness some downturn
year
public
Despite this growth in the avail¬
and private spending that we have ability of savings during the post¬
war
given
inade¬
years, however, the demand
tionary
is
opinion
Bond Market
the infla¬
over
there
sence
Ail Unstable
do not feel
outlook
will show any significant increase
over the present year's totals, and
capital.
necessary
to like this re¬
seem,
debt
over
of only about 5% over
preceding year.
Even those
who are quite optimistic about
an
secure
general,
the
unstable equilibrium in the bond
market, New York banker contends there will be greater com¬
petition for capital in the coming months, and the gas industry
will encounter more difficulty in obtaining its share needed
for expansion.
Says gas industry must be alert to changing
preference of investors and must also tailor their securities to
suit the institutional market.
Concludes, however, "under fair
and reasonable regulation," gas industry will be able to
Pointing out there exists
in
inversely with the size
1952
increase
1951
total for 1952 will show an
record
Trust Company, New
plant and
increased by
1950, whereas the
Thursday, October 30,
.
.
payment feature. The trustees of
in the industry.
For example, the' most rapidly growing pension
fact that life insurance companies funds, on the other hand, are less
have done the bulk of the pipeline anxious to have the return flow
aoout 25%
For the Gas Itdusliy
Vice-President, Bankers
of
equipment
Capital Supply Prospects
By ROGER F.
tors varies
in
Business
.
of companies to
sell common stock
investors
either
to
tional
type or
of the
indiivduals in¬
provid¬
to
terested in the industry as
ing an attractive field for venture
capital. It seems perfectly evident
to me that this type of regulation
would
substantially
curtail
the
projected expansion of natural gas
transmission
facilities,
greatly
financing.
minimum,
cost of
as
or
increase
a
the
give all classes of securities a
investment position.
to
sound
institu¬
In
competing
funds to
meet
for the available
its further growth,
therefore, it is evident that the
gas industry will have to be alert
to the changing preferences of in¬
vestors and the gradual evolution
If company
its business.
of
man¬
agements continue to be aware of
such
developments and
ready to
modify their financial policies ac¬
cordingly, there is ample grounds
for confidence that under fair and
Securities
Tailoring
tutional
to
the
Insti¬
Market
Apart from this necessity that
the gas industry
be allowed to
good profits under favorable
earn
reasonable
will
try
regulation
the
indus¬
be able to secure all of
funds necessary for its
continued development and prog¬
the capital
ress.
business conditions in order to at¬
tract
new
capital, there are ways
in which individual
made
issues
can
appeal
exhaustible
ance
Bartlett Weikel Kroger
be
institutional
buyers. In the financing of recent
years, ^ for
example, the use of
sinking funds on both bonds and
preferred stocks has provided the
basis for the large scale financing
of the production and sale of an
to
to
resource.
Life
insur¬
companies and savings banks,
LOS ANGELES,
&
gaging
from
in
a
offices
securities
J.
Duran,
307
at
Street. Partners
A.
Calif.—Bartlett
Weikel, Kroger & Duran is en¬
are
E.
business
West
Eighth
P. H. Kroger,
Mendel,
M.
Weikel, and B. K. Bettelheim.
M.
f
Volume 176
Number 5164
The Commercial and
Financial Chronicle
...
(1619)
panies is alike.
Current Labor Trends and
Problems and
plies
Taft-Hartley Act
'
be
Lamont
have
University Professor, Harvard
University
ation
to
present coal
gaining has become
rising labor
costs and
been
viewed
irade
in
today than
are
firmly
industry
during the postwar
good
successful,
late
in
1951
was
di¬
vided
among
about 7.8 mil1 i
in
o n
AFL,
1 i
the
4.4
mil-
in
0 n
CIO,
a
s
the
d
n
lac
in
ear ler
in
of
the
b
e en
has
slow and
of
the workers
by union-shop
Sumner
H.
con-
survey of 2,150
effect about a year
in
covering about 4 mil-
provided for the
tne
union
concerns
shop.
that
have
granted the union
General Motors, the
are
quite
security
1950_ and 1951,
58%
recently
war,
however,
union
similar
and
mong
end
the
shop
Chrysler
Corporation,
B.
F.
Goodrich,
Goodyear, Firestone, the United
States Rubber
Company, the prin¬
Slichter
con-
fined in the
cipal
main to the AFL group of unions.
The AFL gained about
steel
Eastern
companies,
railroads.
The
and
the
spread
of
700,000, or the union shop has been acceler10% between 1946 and 1951, and ated
the
by
Taft-Hartley
Act
gained another 200,000 during the which, until October
1951, prolast year. Between 1946 and 1951, hibited
employers from granting
however, the membership of the the union shop unless the union
CIO
and
the
independents has shop had been approved by the
changed little. The CIO says that employees in a government-conit has
gained enough members to
offset
the
loss
ducted election.
of
800,000 when
Communist-dominated unions
11
were
I
expelled
wish
to
in
The overwhelm-
ing endorsement of the union shop
by the workers in thousands of
1948.
examine
elections
briefly how
five
during
the
(the
years
approved
during the strong sellers' market
44,000 elections and
that
one-sided vote)
has
prevailed
1949)
(with
since
almost
the
1946;
con-
exception of
the kind
of
persuade
this
philosophy and basic policies that
the
American
pursued
finally,
lie
unions
this
have
period
did
rise
of
powerful
public safety.
or
topic will require
sion
of
some
Hartley Act.
remarks
I
am
the
on
of
a
strong
few
How has labor fared during the
strong sellers' market of the past
Labor has gained sub¬
stantially in wages, fringe ben¬
efits. and union security. Between
sales
the
61%; in bituminous coal min-
electric
utilities,
and
the
,n
of gas and
in
between
sumers'
18.8%.
and
during
the
For¬
in
efficiency
enough so that
have
increased
held
the
restrictions
of
(13) Removal of restrictions on
the right of the company to
promote to better jobs in the
the
on
employees
who
holding the
position of union shop represen¬
(14)
ambig¬
kind
ox
are
the
not
Agreement
union
that
is
the part of
on
members
participate in strikes
downs.
I
do
not
judgment
pass
the
1952, while the conindex was rising
Labor, as is well known,
changes.
do
cannot
one
u i
there
be
to
seems
a
business
and
3.6%
0f this
between what each manage-
1950
ence
more
freauently present proposals
deed,
and
of
many
new
gaining
in
the
that
an
,
pay.
employee
(9) Reimbursement to the
and
for
holiday must
a
pany
com-
for the cost of making pay-
roll deductions for union
(10) Removal of the right of the
accept the view that bargaining
referee to modify disciplinary action by management—the referee
simpiy
an
a
occasion when the
agements in a few plants to write
into the agreement detailed rules
over
the union use of bulletin
boards. The .evidence that man-
agements
I
tions
after taxes and
Corporate
Corporate
inventory valuation
profits
(billions)
of sales
1940
$135.2
$6.3
4.7 cents
1941
176.2
6.8
3.9
conducted
1946
270.9
8.7
3.2
most
347.8
12.3
3.7
before,
370.0
18.4
5.0
have not
16.4
3.9
17.4
3.6
_
1950—
423.9
:
1951
V;
.
484.9
TABLE
dollar
Although
bargaining
that
long-run
raised by
are
powerful
general
unions.
policy
in
sellers'
have raised
e'fcct
of
share
compensation of
after taxes and
employees to
inventory valua¬
total of compen¬
tion adjustment
sation of employees
(billions)
plus profits
$6.3
83.6
41.0
6.8
85.8
of the
total
in
of
of
8.7
88.8
range
still
too
and
tive
12.3
86.4
dustrial
16.4
85.5
ments
111.4
16.1
87.4
offer to sell
nor a
solicitation of
and
defensive,
role .will
relations.
seem
to
Few
have
Continued
an
offer to
manage¬
formulated
on
page
buy these securities.
The offer is made only by the Prospectus.
New Issue
104,104 Shares
Corning Glass Works
Common Stock, $5 Par Value
1951
market
Price $67.50 Per Share
conditions
compensation of
em-
Copies of the Prospectus
industry -.to
compensation of
such other dealers
em-
as
may
vacations
•
in
pr
iQiv?
with pay
1
'
sick hen:
smk ben-
o
yetepeigon1 and \yelfare ^unds
affected
the
managements to do
for example,
1951, employer contributions
But h°W haS the stronS sellers
market
d
Harriman
obtainable from only such of the undersigned and
lawfully offer these securities in the respective States.
are
Goldman, Sachs & Co.
a good job of
onerating the plants? Have unions
,
taken
advanj^e, pf their strong
bargaining position to impose
Blyth & Co., Inc.
and'-.'about
contributions
in
18
1940.
'time*-the'",s ** •"*
» answer .toese O"**10"8 because
f-*An
the
the
address
American
City,
N.
by
Gas
S., Oct.
Prof.
Slichter
Association,
27,
1952.
experience
of
no
two
com-
before
Atlantic
1 The
averages
figures for 1946
for the year.
are
the
monthly
Merrill Lynch, Pierce,
Fenner & Beane
White, Weld & Co.
.
______
The First Boston Corporation
Kidder, Peabody & Co.
"re-
Lehman Brothers
irf-1846
Lazard Freres & Co.
Ripley & Co.
Incorporated
r
ability hx>L
October 28. 1952.
per¬
Evidence is lacking
doing longplanning in the field of in¬
81.2
an
defensive
sist too long.
96.5
This announcement is neither
negative
and there is danger that this nega¬
employees is the
corporate
i.i
that managements are
68.9
slightly the
economic
of
it
broadly true that the role of man¬
agement in industrial relations is
$32.1
a
issues
Certainly
(billions)
Not
in
the growth
industry
_
being
to grips with fun¬
employees
1941——
in
managements
come
is
few years
a
in corporate
1946
over
satisfactorily
more
industries than
damental
;
II
Corporate profits
talk
to
solutions of problems..
Percentage of
Compensation of
vitality*
using negotia¬
to reach mutual agreement on the
adjustment
1947
are
the
has
problems with the other side and
sales
per
that
shows
process
occasions
as
(billions)
1949—_
It
management.
that both sides
Cornorate profits
proposals
in agreements, how-
ever, is a good sign—good from
the standpoint of both unions and
bargaining
TABLE
making
are
for changes
dues.
while
was
seemed
after
to holiday
oar-
thirties
late
began
and
be worked to entitle
the managements
unions
(to prevent abuse
privilege).
Procedural changes affect-
before
to the union negotiators than was
the practice a few years ago. In-
profits
employees in this total has been
enormous gains in fringe
as shown in Table IL • /
i'v'i
benefits? 'There has been a rapid ,V
Pll+
uQa A—
0+Mnft
>»■
npnsion
pensmn nlans
pians
that
without knowledge of the circum-
pioyees in corporate industry plus
rro^it3 after taxes.The share of
price
nf
01
the
on
wisdom of these specific
has made
'snread
.spread
will
slow¬
or
Obviously
(5) improvements in the clause
union
shop that the company must
for.
pay
faster
much
Corporate
strong
pi0yees
1947
June
■
how
market?
profits
1950
to
the
ratio
hourly
average
33%
rose
deletion
providing for leave of absence fm
words,
sharp differ-
adjustments,
on
tatives.
Longer contracts.
improvements in grievanc;
machinery.
control
not
the amount
of time of union
representatives in
(4)
other
share of emnloyees in the product
0f industry." The best measure of
ning, nearly 62%; in building construction
54%;
in
railroading
63%; and in the telephone indus-
earnings
arbitration
work that supervisorv forces
may
do
general
grievance
Limitation
comparison with 4.7% in 1940,
5.0% in 1949, and only 3.2% in
1946, as shown in Table I.
The
case
In
workable
The
uous
but
retroactive
shop
More
(2)
strong
management's
operations.
improve-
(3)
so
(12)
on
in
seems
In the
Act
realize
rise
prices.
hourly earnings in manufacturing
try 38.6%J
re-
spite of the fact that wage
have
35.9%,
rose
in
after taxes ar.d inventory valuation adjustment were 3.9%
of
six years?
while
has
market
so-called
provisions.
a
been
the
1947—
Taft-Hartley
rapid
corporate
than
1952,
govern-
elections
fared
the
been
rates
June
the
sellers'
well in
II
and
concede
country
tunately,
has
stabilization.
1946
not
the
are:
(j)
companies
that
1940
a
to
How have the stockholders
problem of wage
consumers' price index rose
over
by
until
Not
management
Taft-
adding
of
usually
ill
This last
the
was
has done much to
trade
brief discus¬
a
parts
or
strongly workers favor the union
shop,
unions, particularly the problem
of
disputes that imperil public
health
by
the
shop
97%
employers
demand.
quired
and
that
the
about
ment conducted the
of the principal pubhave been created
some
issues
by
trade
during
in
last four
union
labor and management have fared
tinuously
°£
have
and
wor.®rs showed that about edriy forties
/o
membership
since
tnat
A
s.
The
growth
in
covered
agreements
neither feder-
ation.
gains
owed
weie
2
million
sub-
spread of union shop
contracts has been rapid. In
fact,
some form of union shop contract
before. The total
ever
Among
nullify
Limitation
for
pay
standpoint of management is
ments
the view that most other
managements
-----
But
years.
improvement from
an
(11)
con-
years.
not necessarily a bad feature from
the
standpoint
of
the
union.
operations
these
of
many
express
because the
14.2
million,
made
of
course,
the
sell-
during the last few
or
stances that led to them. Some of
these changes and others that I
(6)
have not listed suggest to me that
m.ent says about itself and what
ing job evaluation programs.
the relationship between the union
it thinks has been happening else(7) Changes in wage progres- and the management is still someis
rapidly becoming. the
usual where.
sion systems by which automatic what legalistic and savors of the
anangement in industry. A
gov[Certainly it is true that collec- wage changes come at intervals terms of truce between two armed
ernment survey of
2,651 contracts, ^ve
bargaining has become more more satisfactory to management, camps. This certainly is true of
venng D.b million workers and
two-sided.
Today managements
(8) A requirement that the day the attempt of unions and mantn
e
ect;
in
late
stantial
more
American
membership
about
has
how the strong
control
sellers'
.
unions
established
labor
gather
that
is
efficient
important
.
to
Of
sustain
may
modify.
negotiated
improvements in their
some
I
they have been
reasonably successful in retaining
high price levels.
Finally,
.
attempting
on
weakened
rp
months
having
report
tracts
few
last
union-management agreements.
overwhelming view of those
managements that I have inter-
shortcomings in industrial relations. Supports American trade
union
philosophy and says American collective
bargaining
system has "tremendous
advantages," which counteract the
ill effect of
the
The
consider¬
are
panies
of
needs for
dispute and says collective bar¬
"two sided." Lists
improvements in
union labor contracts and
holds union rivalries
to
evidence
wage
more
union asked for things. This, however, has changed.
Various com-
re-
somewhat
ers' market has affected the terms
Professor Slichter discusses weak and
strong points in the Taft-
Hartley Act and what arrangements the government
dealing with so-called "emergency disputes." Gives
be
managements do
admit that they may
losing ground.
During
By SUMNER II. SLICHTER*
to
because
like
not
Furthermore,
likely
are
biased
7
Smith, Barney & Co.
34
The Commercial and Financial Chronicle
8
.
.
.
Thursday, October 30, 1952
(1620)
evidence
such
Capital Investment and
The Economy in 1953
and
growth of the econ¬
interrupted temporarily
some easing develops late in
is
1953, there is little to indicate that
over-all level of activity will
the
not
Agriculture
the
Expenditures
high.
continue
for
Agricultural Economics
U. S. Department of
leans
have
Even if the
omy
By NATHAN M. KOFFSKY*
Bureau of
we
as
in that direction.
Security
National
pro¬
although no longer rising,
probably will be higher in the
winter and
spring of 1954 than
grams,
Foreseeing only a modest decline in level of capital investment,
Agricultural Department economist says drop may be approxi¬
mately $4 billion, or less than 10%. Says this prospective
change will be
activity next
level
the
concerns
of capital investment in 1953. Dur-
ing the postwar period,
have
and
add¬
modern¬
izing
equip¬
a
ment. The De¬
little.
of
the
the
by
expenditures
Wage rates
likely to
are
rise at about the rate
"mtinue to
of
partment
govern¬
in
third
quarter of next year expected to
exceed
any
drop in investment,
economic activity is likely to rise
Jowly. Employment may increase
ing to capacity
past
and consumer
spending are
year,
Commerce has
incomes available for
estimated that
also
by the end of
In
this
serves
in¬
year,
dustrial
have increased
Koffsky
M.
Nathan
approxi¬
mately 50%
by
War II.
There is currently no indication
of a weakening in business investment
in
the
next few
months,
Plans of businessmen f o r t h e
the
since
World
of
end
quarter of this year indicate some increase in capital outfourth
lays over the third quarter.
No
quantitative indication for 1953
will be available until toward the
when the Depart-
end of this year
and some pri-
ment of Commerce
vate
will
concerns
busi-
surevy
intentions concerning further
ness
expansion. However, in view of the
large capacity now installed and
the increasing concern in some industries that over-capacity is bebuilt
ing
it
up,
probable
seems
and
that investment in new plant
equipment will
not expand
the
and
next
year
should occur, is likely to
Even
related
likely
more
The decline, if it
will be reduced.
est.
over
though
many
expansion
be moddefense
are
programs
nearing completion, there is still
a
Substantial amount yet to be
built
which rapid
on
amortization
well
has been granted. There may
be
which could
previously because
restrictions
of
It
be
construction.
on
that
likely
seems
also
of
some
built
be
not
commercial
in
increase
an
facilities,
for
residential construction. With high
for
demand
tinues
high.
another
year
credit
easier
and
incomes
the
good
fairly
a
the
of
con-
is
this
However,
sector
terms,
houses
new
economy
where output in postwar years has
been at
end
a
high rate since the
very
the
of
war
has
and
substan-
tially exceeded the number of new
families formed. Apparently, most
the
of
doubled
backlog
the
from
war
has
new
being formed is declining, re¬
low marriage and birth
early 1930's. The
indication
rent
is
that
rate
the
over
12
next
prospective
in the major
these
Adding
changes in demand
the
of
sectors
economy,
expenditures,
ernment
this
There
year's level.
is
significant
likely
change
position
ventory
business
not
over
the
be
further increase
of $8-10 billion in consumer expenditures,
the
total
flow
of
money in the economy would rise
at least $11 billion and perhaps as
much as $18 billion by the third
vestment, and
of
quarter
a
1953,
total demands
over
the
in
of
in-
American
next
year
In-
ventories have been worked down
to
a
and
better
their
relationship with sales
composition
balanced than
The
a
magnitude
year
of
is
better
ago.
the
possible
drop in total business investment
the
higher defense outlay
js
the
reached,
in
increase
would
demands
Washington d. c., Oct. 20, iqs2v
continues much
coici
tial
couiu
not
we
are
It
currently.
total
with
a
econ¬
experiencing
be
could
accom¬
small increase
higher average hours worked and
the normal growth of productivity
per
man-hour of about 2V2% a
Prices
Excess Profits Tax
generally
are
likely
to continue fairly firm with perhaps some little further rise over-
Bros. & Co., 120
able is
Lead
of
be
consumer
Financial
is
&
to The
BEVERLY
larger
as
in
crease
if
metals,
result ot the
a
capacity
the
Company,
would
to
you
a
not
be
point about
a
year
and then leave off.
consumer
The out-
expenditures.
But
what happens beyond that when
defense
expenditures presumably
have leveled off? It would be well
.
.
,,
.,
....
..
,
lecognize the possibility that a
testing of the economy might well
occur
1953-54, especially if business in¬
vestment is declining at that time.
8
deCUne
inVeStment 'S ^
certainty,
—
Kafflen Investment Co.,
Spokane, Wash.
showing
an
up-to-date
com¬
with
Inc.,
Waddell
Wilshire
8943
13-year period—
Front Street, New
a
York.
—
Memorandum
—
Flood & Co., 360 St.
Street, West, Montreal, Que., Canada.
Tax Gains & Losses—Bulletin
change in treatment of capital
on
gains and losses in 1952—Francis I. du Pont & Co., 1 Wall
Street, New York 5, N. Y.
&
Boule¬
Roundup—Data
Central
on
Buffalo, Rochester & Pittsburgh,
of Georgia Railway, International Railways
of Cen¬
tral America, Jamestown, Franklin & Clearfield, Maine Cen¬
tral Railroad, Northern Pacific Railway—Eastman,
Samuel Franklin Adds
(Special
LOS
to
The
Franklin
&
I.
Com¬
Co.,
effect' of capital gain
companies—Lord, Abbett & Co.,
Street, New York 5, N. Y.
Prankard, II, discussing nature and
distributions by investment
215 West Seventh Street.
pany,
Securities
Understanding Capital Gain Distributions—Brochure by Harry
Lyons has been added to the staff
B.
Quotations—Bulletin—Nomura
Ltd., 1-1, Kabuto-cho, Nibonbashi, Chuo-ku, Tokyo, Japan.
ANGELES, Calif.—Lowell
Samuel
Market
Tokyo
Chronicle)
Financial
Dillon &
Co., 15 Broad Street, New York 5, N. Y.
63
Wall
*
♦
*
Joins Waddell & Reed
Alliance
(Special
to The
KANSAS
Williams
is
Chronicle)
Financial
CITY,
El Paso Electric Power
Ill
—
Analysis
—
Dreyfus & Co., 50
Company—Analysis—Ira Haupt & Co.,
Broadway, New York 6, N. Y.
Corp.—Memorandum—Arthur Wiesenberger &
Equity
Co., 61
Broadway, New York 6, N. Y.
COMING
Garrett Corp.
—
Analysis
—
Eastman, Dillon & Co., 15 Broad
Street, New York 5, N. Y.
EVENTS
Investment
Rothchild
Broadway, New York 4, N. Y.
Reed, Inc., 1012 Baltimore Ave.
In
H.
Street, New York 5, N. Y.
American Tobacco Company
with Waddell &
now
Manufacturing Company—Analysis—L.
& Co. 52 Wall
S.
Mo.—Don
Gulf
Mobile & Ohio
Field
Railroad—Memorandum—White, Weld &
Co., 40 Wall Street, New York 5, N. Y.
'
Oct.
of
>.
America
at
The
Homestead.
Nov. 19, 1952
Association
(New York City)
Stock
of
Exchange
Firms annual meeting and
Nov. 19, 1952
Purchases
Division
of
election.
(New York City)
&
Sales
Wall
-
Tabulating
Street, Associa¬
tion of Stock Exchange Firms an¬
nual
dinner at the Hotel Statler.
Nov. 30-Dec. 5, 1952
(Hollywood, Fla.)
Investment Bankers Association
Annual Convention at the
although wood Beach Hotel.
;
*
City & Southern Railway Company—Railroad Bulletin
\
.
t
Holly¬
,
Ill—Smith, Barney & Co., 14 Wall Street, New York
5, N. Y.
Fall
Association
Kansas
No.
31, 1952-Nov. 2, 1952
in the winter and spring of
jpo. means, a
Discussion
market performance over
Quotation Bureau, Inc., 46
Paper Stocks
&
James
Meeting of Southeastern
from Group of the Investment Banker?
take
to
—
ard-Bell Company.
(Hot Springs, Va.)
fair
Sutro
Street, Los Angeles 14, Calif. Also available are revised re¬
ports on Globe & Republic Insurance Company and Pack¬
9500
vard.
of
—
Also avail¬
Performance—Eighteen-year study of market action and in¬
come—Conrad, Bruce & Co. of Los Angeles, 530 West Sixth
connected
now
in¬
program
Brochure
Chronicle)
Financial Chronicle)
is
and
Railroad
continues unchanged.
It
Prices
York 4, New
for producing
defense
—
review of Tobacco Stocks.
Central Building,
National
HILLS, Calif.—Louis
Sellman
will
durables
Securities
Broadway, New York 5, N. Y.
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to
With Waddell & Reed
ly. Food production, if weather is
favorable, will provide as much
food per capita as in 1952. Supplies
Stern, Frank, Meyer & Fox,
—
Angeles 14, Calif.
Over-the-Counter Index—Folder
be
Pulp
likely to increase slight-
are
a
Zinc
&
Radio
all, if the higher level of defense
outlays is reached. Civilian supplies
Bulletin
Pointers Affecting
Income Tax
HILLS, Calif.—Cor-
Fabian
Reed,
—
Union Bank Building, Los
Santa Monica Boulevard.
J.
Statistics—Bro¬
Losses—A Tax Primer for Investors—G. A.
in
slightly
perhaps
employment,
to The
riena J. Russell
(Special
analysis of Canadian
.
BEVERLY
with
Report and
Inc., 70 Pine Street, New York 5, N. Y.
Saxton & Co.,
yield
(Special
—
—
5, N. Y.
present .but their poten¬
undiminished.
remains
Investor
the
Capital Gains &
rue
may
Abitibi
on
chure—Wood, Gundy & Co., Inc., 14 Wall Street, New York
much
be
productive facilities of the
than
at
warmer,
get
data
Canadian Government and Municipal Financial
situation
inflation
of
giving
Ltd.,
ask for CC-44— Bache & Co., 36 Wall
Street, New York 5, N. Y.
at present. The
as
Bulletin
—
Company, 50 King Street, West, Toronto, Ont.,
growth companies
With Fabian & Co.
occurred
over the past year. Such increases
as appear to be in prospect would
not put much more strain on the
year.
war
latent
greater than that which
P3o\h0,AnnuaJSSArricuJtur!^l0"con(er- ^
ence,
Canada and
including
international
Giants
Company
Canada.
the next year,
Even if the
omy
the
Paper
The Midland
$5 billion of Series E Sav¬
that
&
'
ings Bonds which mature in 1953.
third
the
over
quarter of 1952. This would represent an increase of 3 to 5%
in
any
to
ex¬
consumer
billion,
$175
mately
some
decline
a
look for that period seems fairly
secure in view of the continued
expansion in defense outlays and
from
substantially,
penditures held stable and then
began to increase. Consumers have
the money to do so again. Liquid
assets of individuals total approxi¬
$4 billion in private in-
0f perhaps
now
10%
off
of $7 to $12 billion in gov-
crease
built in 1953. At worst,
represent a decline of about
1948-49,
In the recession of
omy.
when business investment dropped
in-
an
900,000 and 1,000,000 units will be
this would
of
rate
buying to offset, at least in part,
elsewhere in the econ¬
declines
ingredients
months.
cur¬
between
may
billion
$8-10
In
fami¬
flecting
rates in the
well increase their
0f expenditures by another
consumers
over
filled.
been
addition, the number of
lies
from
demand
families carried
up
their
up
Street,
Aluminium Limited, Bell
Telephone Company of Canada, Canada Cement Company,
Limited, Canadian Industries Limited, Canadian Pacific Rail¬
way Company, Ford Motor Company of Canada Ltd., Consoli¬
dated Mining & Smelting Co. of Canada, Imperial Oil Lim¬
ited, International Nickel Co. of Canada Ltd., Shawinigan
Water & Power Company, and Steel Company of Canada—
Power
move
plished
will
1953
and
step
Industrial
Canada's
savings
may
country will
high cash re¬
easier consumer credit,
with
well
may
810 Broad
Newark
ratio of consumers Also, if conditions should change,
tax policy at that time could have
somewhat lower over
an important effect on stimulating
the next year, but is likely to re¬
business capital
investment and
main
high relative to the preconsumer expenditures.
Korean level. It seems very un¬
As a final word, it would be
likely that the steady growth of
well to consider that the spring of
consumer expenditures which has
1954 is 18 months away. This an¬
occurred this year will be diminished in the year ahead. In total, alysis is based on the assumption
the
ca¬
in this
pacity
likely to make a similar gain.
addition,
1940
Jersey—Brochure—Municipal Bond
National State Bank of Newark,
1, N. J.
Dept.,
and services, which rose
the decade between
and 1950. With prospects for
N. Y.
Broadway, New York 5,
Bonds of the State of New
lereer civilian supplies, consumers
increase
the
With
ment
been
in
made
mate
120
City bank stocks—Laird, Bissell & Meeds,
York
New
teen
in
rapidly
and analysis as of Sept. 30 of seven¬
Bank Stocks—Comparison
of goods
approxi$4 billion, less than 10% be-
the next year may
low current levels,
large
very
investments
year.
over
also be
should
It
now.
quirements consumers in the last
2 years have been unable to in¬
crease their
per capita purchases
Predicts high over-all level of business
One of the big questions in this
are
noted that because of military re¬
than offset by from $7 to $12 billion in
more
government spending.
year's outlook
they
*
Continued
on
page
50
Volume 176
Number 5164
The Commercial and Financial Chronicle
...
(1621)
primary
Steel Hoimones and the
more
Feno-Alloy Industry
the ferro-alloy industry as a growth industry, with
possibilities of expansion, Mr. Keeley reviews remetallurgical advances that call for the use of both the
people
whom I discuss the steel
u
fuel
to
of ferro-alloys.
use
these alloys increased from 397,-
lack the glam¬
300,000
1952
entitling
them
to
be
included
the
in
and
.
2,100,000
in
'
„
,
„
man¬
members
of
of
the
America
ore
railroad
facilities
of
of
ent
capacity
of
Colorado-Utah
by
years
such
as
our
additional
our
reserves
in
ores
the
region in recent
purchase and lease
mining
claims, as
as
by added development in
existing mine properties. In
to
operating our own
mines in the West, we are
buying
quantities of ore from indepen¬
must
dent
miners for utilization in
mills
our
at
Naturita and
Durango,
structural metals. Though
and
Colorado,
White
Canyon,
b.ar®*y
of infancy now (it was Utah.
^Jpt P^uced in quantity during
Last
winter we
enlarged the
World War
) " seems destined
to increase in popularity in he capacity of our mill at Durango,
.
ahead.
Report
newer
the
addition
which
pres¬
tonnages.
vanadium-uranium
well
another metal
are
plans to permit the shipment
additional
We have increased
1,250,000,000
re¬
prepared
are
of
United
The
recent
Paley Colorado, and
the projected future of
on
States
natural
make
resources
we
further
are
ceive
the
increases
in
our
we
re¬
approval of the Atomic
Energy Commission.
These
steps
providing an important addi¬
tion to the nation's known internal
uranium supply.
are
Vanadium Corporation of America
New
Plant
Facilities
particularly good gain. More than in order to gain a broader parEven
more
significant
have
300,000,000 pounds of chrome were ticipation in the growth of the been the additions made in*
our
consumed
in
the
steel
industry ferro-alloy industry and to pro- alloy production division.
Approx¬
last year. This represented an in- vide the
company
with modern imately $1,500,000 has been
spent
crease
of
142,000,000 pounds, or and economical plant facilities.
during the past two years in re¬
*
believe
that
the
ferro-al¬
loy
industry
growth
is
a
industry.
believe
spite
fact
We
of
87%,
Wm.
in
so
C.
Keeley
over
the
163,000,000 pounds
consumed in 1946.
so
sums
the
that
in
most
the
cases
term
Of the 105,000,000 ingot tons of
industry en- steel produced last year in the
gaged in one of the newer sciences. United States, only 10,000,000 tons,
Growth industries are not only or
9.6%, represented stainless and
those commonly regarded as hav- other
alloy steels. However, this
ing glamour but are also those compares with 7.4% in 1940, of a
which have growth characteristics total steel production for that year
infant
an
of
because
«
technical
advances,
demands, and improved tech-
niques in the utilization of prodViewed
nets.
in
this
light,
the
have
in all
AHo, Steel Critically Important
'growth industry" is used in de-
scribing
new
\ye
been, made in
stantial chrome ore properties and
The
available
our
has
the last decade
over
materially steel
grown
In
two.
or
so
produced
provided
the tools with which the remain-
velopment of the world economy, usable form.
The growth of
has been
the alloy industry
of the most impor-
one
Alloy
steel
America.
of
provided
also
gines
and
ore
from
tripled
supply
we
more
plant
first
creased
imately
pleted
this
alloy-producing
West Virginia.
our
Graham,
at
portion
of
these
in¬
facilities, costing approx¬
$8,000,000, is being com¬
and
placed
in
furnaces
arc
designed
for
ferro-silicon/
the
ma-
an
ma-
primarily
production
silicon
other silicon products.
cient
operation
This plant houses five
year.
electric
own
our
Thus, we have
terially strengthened our raw
terial position.
Today,
metal
of
and
These effi¬
kilowatts.
and
modern
overall rated
plant, at an estimated cost
$3,500,000, to produce very low
carbon
low
furnaces
have
capacity of 50,000
In 1953 we contemplate a still
than further addition to the West Vir¬
ferro-chrome.
carbon
sents
the
still
a
This
ferro-chrome
further
production
of
high
which
modern
automo¬
rhis announcement is not an
alloys necessary for new
high temperature resistant steels
and certain types of stainless steel.
This
summer
construction
started
we
As you know,
turbines
would
be
not
possible
the iron and steel without alloy steel in their
shall
a
produce
aluminum
formerly
and
the
secondary
aluminum
produced
at
Not
a
New Issue
next
year, and additional
research facilities will be
modern
provided
there.
Sales Pattern
•
As
result
a
of
and production
have made
sales
Shifted
our
expansion
diversification,
pattern of Vanadium Corpo¬
ration.
Vanadium products which
only
decade
the
a
bulk
of
accounted
ago
Vanadium
tensify
and
this
10%
will
when
flow from
der
probably
production
properties
our
construction.
sales, aside from
and
The
are
and
They have in some
other special qualities.
remaining
made
ous
chemical compounds employed
not
only in the iron and steel in¬
dustry, but also in the chemical,
petroleum, glass and other indus¬
tries.
Most
marketed
of
products
our
under the
trade
also
and
metal, but they
used
most
it
enabled
to
have
the
meet
new
increasing demand for stainother allov steels
and
stainless Steel
A.
The
normal
ferro-alloys is
utilization
•
j
anMrnvi-
1Q90
««
Pp
y
.
of
alloy
provide
also
constructional
increased
This
mately 47,000,000> ingot tons.
represents
^
Thai
That
63,000.000 ingot tons.
slightly exceeded
by
and
it
was
with
66%
amounted
uses.
known
used
in
the
to
topped
an
more
noaif
pe
early
as
last yoar
which
output
than
105,000,-
000 ingot tons.
(Par Value $4
,
,
Continued,
on
page
Due
to
the
Stainless steels have
many years but
in
production
stainiess
of
this
and
steels
country
was
has
United
doubled,
markets
for
this
wonderful
as^
increase
has
during the last 12 years.
arKj
shapes
French
from
steel
will
still
associated
company,
dealers
in
d'Electro-Chimie d'ElectroMetallurgie et des Acieries Elec-
impressive than the triques d'Ugine.
the basic steel
Reinholdt & Gardner
Slifel, Nicolaus & Company
Newhard, Cook & Co.
Incorporated
A. C.
Allyn and Company
Bear, Stearns & Co.
Clark, Dodge & Co.
Incorporated
Harriman
Ripley & Co.
Hemphill, Noyes & Co.
Kidder, Peabody & Co.
Incorporated
Merrill Lynch, Pierce, Fenner & Beane
Lehman Brothers
A. G. Becker & Co.
Union Securities Corporation
Paine, Webber, Jackson & Curtis
in-
Other Metals Need Alloys
Tiie raPidly expanding alumBrokers^ inum and magnesium industries
Hornblower & Weeks
Incorporated
Reynolds & Co.
Shields &
dustry has been the growth in the
,
.
New
w
v
,
.
"rCu,"mLi-
„t
York
City,
are
securities in this State.
So-
ciete
_
Ferro-Alloy Lse Soars
of
map be obtainedfrom such oj the undersigned (who
the underwriters named in the prospectus) as arc registered
uses; such
j0QC[ eqUipment and construc-
to eight times.
expansion
among
stajniess for peacetime
production
seven
more
Share
Copies oj Hie prospectus
metal\have scarcely been
scrafchd*4 and the utilization of
has in- further increase the tonnage of
Much stainless.
We
cooperate
in the
taken place licensing of this process with our
steel
Even
per
recent
States
this
$22
tural
creased
of
Price
in
not
industry will not in
population
Share)
.
decoration, have become so
steel strike, commonplace that we accept them
1952 re- as parj. 0f our ejaify living. Recent
peat last year's performance. How- developments along a commercial
ever, it is worthy of note that in scaie Gf a new extrusion
process
the last 50 years, while the world's f0r
forming complicated tubing
,
the
per
Oct. 28,
1952.
.•
also depend
on
alloys.
The
19ol
G. H. Walker &
Company
to
is
of
practically all types and grades of
clearly indicated until about 1935.
The
as
.
It
manufacture
for
commercial
volume
was
1940
been
60% increase over
acceptance
The 1929 p o
a
the 1910 output.
,
our
steels
strength.
opened another new world
of steel
of
follows: Ferrochrome is used in the manufacture
as
TJ^ utilization of stainless steel,
another branch of the alloy fam-
Production of the domestic steel
induo
Factor
Big
,
are
name
"Vancoram."
Common Stock
known as steel.
producer of the most versatile and was
of
ro-titanium, Grainal (boron) al¬
loys, aluminum alloys, and vari¬
Anheuser-Busch, Incorporated
combination of iron
represented all that
carbon
ores
up
ferro-chromium, ferro-silicon, fer-
356,717 Shares
60 years or more since
simple
helped make the steel industry of the
the United
States not only the and
to
now un¬
sales of
our
concentrates,
drop' to
starts
These alloys in- which has brought the tremendous
of the most vital changes and improvements in degive strength and sign of machines and equipment
many
functions
for
Corpora¬
tion's sales, are now the source of
less than one-fifth of the
total,
the
the human body.
we
material shift in the
a
October 29, 1952
largest consumer ponent parts. These are only a
of ferro-alloys, which are to steel few of the examples of the modsomewhat
like
vitamins
are
to ern and growing usage of alloys
is
industry
alloys
leased
a
plant in Chester, Pa. We anticipate
also that the production of ferrovanadium, Grainals, and other al¬
loys will be started at this plant
offer oj securitiesfor sate or a solicitation oj an offer to buy securities.
com-
the
$2,500,000 plant
Cambridge, Ohio, in which
near
we
of
biles and aircraft depend. Today's
Iron and Steel Industry Important
in
quality
types of
ore
on
very
repre¬
advance
the
crushing equipment,
tant factors
in the
progress
of the teeth of rock drilling bits and
metallurgy. This progress, in turn, the necessary working components
underlies the growth of industrial of internal combustion and jet enjaws
chrome
production
most of properties.
the de- ing steel tonnage was brought into
doing, it has accelerated
modernization, to
phases of our business, increase the capacity of the com¬
pany's plant at Niagara Falls, New
York. The largest single
property
significant steps taken investment during this period has
operating facilities on the Great
Dyke in Southern Rhodesia, South
Africa.
We
have
done a
large
of approximately 67,000,000 tons, amount of
development at existWhat is more, the 10,000,000 tons ing mines
there, and new workof alloy steel produced in 1951 ings have been opened. As a
result,
made
possible
the
production we have increased our reserves of
maining 95,000,000 tons. The alloy
habilitation and
jn our expansion program was the
acquisition last year of very sub-
be included among
industry
substantial
pSS*'
0f the most
ferro-alloy industry is entitled to and utilization of most of the re-
the latter. This
invested
ginia
of
prepared to
milling capacity whenever
silicon, manganese, chromium and
We in Vanadium Corporation of
molybdenum, all have increased America have accelerated our exin usage.
Chrome has shown a pansion program in recent years
Corporation
we
improved in accordance with
years
,
family,
chrome
own
surplus to others, if the
a
Rhodesian
alloys, which always are used in envisaged
magnesium demand in
sharply increased amounts as de- 1975 roughly 18 times that of 1950.
fense
needs
rise, the less rare
the Vanadium
of
1940
'
,
"growth"
categories. We
agement
in
*
Exclusive of the so-called
the
in
Production of
000 net tons in 1910 to 764,000 net
tons in 1920; 959,000 in 1929; 1,-
our
sell
to
use alloys in almost all of its
appIication „ magnesium the light_
to steel
that these industries
production
and
than 16 times the
104,000,000
Still
industry
and the industries related
seem
with
our
requirement for alloys.
ferro-alloys. Gives data on rapid increase
production of ferro-alloys, and predicts demand for ferro¬
alloys will continue to rise faster than that for steel over the
years.
Gives data on Vanadium Corporation of America.
newer
in
financial
of
pounds. These capacities are des¬
tined
to
add
another
increased
'
Some
70%
quirements/and
nual
In picturing
older and the
of
16% %
contemplates an annual
production of 3,000,000,000 pounds
by the close of next year, in addi¬
tion to Canada's rapidly
expand¬
ing facilities, visualizing an an¬
tremendous
cent
output
was
1950
program
President, Vanadium Corporation of America
•
the
pound production of 20 years ago.
This industry's current expansion
By WILLIAM C. KEELEY*
•
aluminum
1,700,000,000pounds
above
9
Wertheim & Co.
Company
16
and Financial Chronicle
The Commercial
10
.
.
Thursday, October 30, 1952
.
(1622)
real issue
ion, the cost is not the
who is more
interested in getting adequate gas
service. He concluded "the Fed¬
eral Power Commission over the
the
with
Public
Utility Securities
past
By OWEN ELY
the above topic by
C. Buchanan of
Chairman Thomas
Power
Federal
the
Commission,
York Society of
New
the
before
there
the same
the regula¬
question but that
no
obligation rests upon
Oct. 8 (which tory authorities. . .
"Since
the
security
market
11 of today's
aroused great opened up in 1946 to date, the
interest not only among analysts total service of natural gas to the
but among members of the
gas consumer has increased approxi¬
utility
industry.
The talk
by mately 250% and approximately
President Paul Kayser of El Paso $2 billion have been poured into
Natural Gas Company, before the this industry by the investor for
same
society on October 22, was the service of the consumer. The
not
specifically stated to be a expansion of this service to the
satisfaction of the demands of the
reply to Mr. Buchanan, but never¬
consumer
is
wholly dependent
theless it gave the other side of
the argument over the "cost of upon the security market and just
money" theory of rate of return. exactly to the extent that such
market is curtailed, service will
The service of getting gas to
be impaired. Whoever is responsi¬
the consumer is a single and con¬
ble for that result must ultimately
tinuous operation—from the
gas
account to the public for their ac¬
Jield to the valve in the home of
.
Security Analysts on
page
Chronicle")
has
on
appears
Kayser pointed
producer, the
the customer, Mr.
the
Thus
out.
the whole¬
retail utility com¬
pany are allied together to serve
the customer, and are completely
dependent on each other for the
success of this public service; and
the
regulatory
authorities also
line
pipe
company,
saler, and the
important fact demon¬
past six years, Mr.
strated in the
is that the
service—"wants
out,
pointed
Kayser
public wants gas
abundance
it in
—
wants it effi¬
technical point in
"There is one
the new formula that
The Com¬
mission claims that the formula is
respect
to
be emphasized.
should
well-known rate mak¬
based upon
ing principles and is calculated to
be
a
sufficient • return to yield
stock that will
freely buy the
stock in the open market, and that
such return is arrived at by taking
earnings
the
on
the public to
cause
share in this burden.
The most
tions.
gas
the principal
companies over the
of
experience
the
line
pipe
period of 1946-1951.
[But] "the evidence upon which
the rate of return is based was
delivered—and wants it
distributed for as long a
wholly inapplicable to the period
the product can be made
in which the rate would be ap¬
available." The industry has been
plicable.
The
yields,
earnings,
<
ngaged in a, huge construction
price-ratio
data for the
seven
program designed to help supply
Companies for the period 1946 to
the public's demands for gas as
1951 were obtained from the ex¬
r-oon
as
possible.
But certain
perience
of
seven
companies
regulatory problems have now
through that period when the pub¬
arisen in connection with the rate
lic rightfully or wrongfully under¬
ciently
-widely
time
to
allowed the
be
gas
utility companies.
Mr.
Kayser
(evidently
stated
in mind):
rising cost of
with the Buchanan talk
"If
at
time
a
money,
to
of
the rate of return allowed
If you
by the Com¬
projects
new
and
been
more
lines
have
built
been
more
than
three
millions
of
and
and
of
cubic
additional
the
feet
This
consumers.
that
6%
a
mitted
would
return
the
and
be
companies
have the leverage of
the
expansion
Further
of
lines is the key to the
the
of
present insistent
demand.
service
this
tended in any
to the
be
can
only
way
further
the
to
will be
consumer
.
stood
(I)
that
the
of
stock
common
the
sitors of the "Communist
in Malaya;
then '
our
Carlisle
Bargeron
They have learned this battalion of
'i:
that
in,
intervention
our
tide," the British
are
impressed by
our
re-
still having trouble
Pandit Nehru
He doesn't support
efforts.
in the UN; he is playing both ends against the middle.
us
Our intervention in Korea has accomplished exactly nothing;
no strategic value to us, it produces nothing of value»
J:
,
propaganda
the French plenty of it in Indo-China.
in India has not been
Korea has
ex-,
to
If,
us.
have
to
Chinese
present
only
contended, Chiang Kai-shek forces on Formosa would
the.;<U. S. Navy to land them back again on the
or
on
Korea, because they, themselves, have?
as
have
mainland
then unmistakably the Chinese Communists have
sampans,
only sampans with which to reach Japan.
Our intervention
deprived of
in
Korea
was
political.
It
was
designed h>
that it was not true what the Republicans were saying about
Administration—that they were coddlers of
Communists.
prove
the
"We'll
Bache & Go. to Admit
Huhn
Partner
as
show
them," said Truman and Acheson.
They did.
It is my
conviction that the Republicans in the present cam-'
paign have not made the best of the Communist issue. Stevenson's
own words reveal the attitude of his party and kind on this matter.
...
•
...
Repeatedly he
has said
that it isn't Communists
we
should
be
afraid of, but Communism. And he has said that the way to beat
Communism is to beat poverty.
V h^v
generally acceptable to the Com¬
mission
(and it was throughout
all of that test period) and
(2)
that
against
inspirited the peoples of Asia, made them formidable
return was
6%
a
Chinese
of
Notwithstanding
."
.
a
and they have them, too.
Korea
lines,
the service.
have
was
guns
large diameter pipe...
lines. If this expansion is checked,
the
There
marines can't stop them.
appreciable amount
additions
of
The
consuming public is through
further
form
that the time
legations with a battalion of marines.
Chinese have now learned how to use
would
the pipe
completion
is axiomatic that the
are
called
of the service and the satisfaction
It
Asia,", will
another
by
The plain facts
onslaught
V an
per¬
complete.
not
burning in
replaced
being
to keep
or
time when the British and we could withstand
interest rgtes
is
industry
be
"face" except their dollars.
any
against return for the benefit of
the common stock. The expansion
of
continuation
has ended in Asia when the white people
stupendous
wise
policy so understood by the in¬
dustry and the investing public
its
"light of freedom
propaganda.
to
year
if the
are,
to save our face in Asia
somehow
under the
occurred
growth
the
trillion
per
he
if
He doesn't have to
being what they
about
bunk
The
-
necessary
installed
horsepower
to deliver more than three
<
that
Republicans win, the Korean war will in some
way be washed out in a matter of a short time.
..
miles
40,000
solution.
a
Politics
that.
do
than
pipe
estimates
such
of
working out
to
the faith
upon
said
has
wins, he intends to go over there with a view
into the busi¬
poured
Eisenhower
General
certificate cases
in
investors
by
ness
politics win determine its conclusion.
estimated on
than two billion dollars
more
have
paign, you will learn that regardless of the outcome "something
is to be done about Korea."
It has been a political war and
.
the correct measure by
as
which earnings were
dig enough around Washington, get people who should
to talk about anything but the outcome of the cam¬
how
know
establish
•
.«•
L
v*
do you do that the New Dealers' way?' Why,
bigger and better bureaucracy than Moscow has.
in
1.0*15,
coe
irrsi instance,
the fact that
in
our
you
He
most danger--'
Communists have not been poverty stricken or hungry people,
ous
but
each
a
our
most
educated
and
wealthy
it
Explaining
citizens.
is
pipe line companies is reduced,
of
would have the advan¬
tage of the leverage between bor¬
rowed money and equity. In ad¬
something the psychiatrists have been trying to do, but it is a fact.
But Stevenson's attitude has been most revealing as to the "Lib¬
that has been available to
If- the flow of
dition, the industry went through
in that period one of the greatest
came
such action will check the flow
money
such
industry.
is checked, expansion will
and if expansion is
checked then service to the pub¬
money
checked
be
lic will be curtailed. I do not be¬
lieve that any amount
explain
can ever
of sophistry
away
this simple
conclusion. Measured by the prin¬
ciple laid down in the beginning
of this talk, namely, that a course
of action in this business must be
judged solely by its effect upon
the public service, the Commis¬
sion's action
return
of
in
in reducing the
the
face
of
the
rate
ad¬
mitted rise in the cost of money is
not
is
Despite
protestation that there
nothing fixed and immutable
about the 6% return, it was uni¬
was
versally recognized
of the News
By CARLISLE BARGERON
as
return
of
Ahead
a
its present
mission
Washington
Natural Gas
of the
Industry over this period.
long
.
.
.
maintained
has
years
development
good
judge its actions by what is
for the public service, then
is
12
From
policy in respect to rate of return
that has permitted the outstanding
Companies
Regulation of Natural Gas
The talk on
consumer,
in
not
the
a
public
one-way
interest.
street
we
This
are
traveling. If the obligation is upon
management in the industry to
company
has
periods that
industry
expansion
in
the
mission's
formula reduces the
new
deprives the com¬
stock of the leverage of in¬
mon
terest
debt
on
will
and
sarily put a brake
pansion. Thus the
neces¬
further
rate fixed
on
ex¬
public in the future is based
of facts that
set
so
upon
only in the past and will not be
applicable in the future. This
&
Bache
36 Wall Street,
members of the
New
York
Stock
Exchange, on
Nov. 1 will admit John B. Huhn
to
Co.,
City,
York
New
partnership.
has
Huhn
Mr.
been with the firm for some time.
Central States Group
Mr.
IBA Elects Officers
by
the
FPC
deprive
it
investor
of
to
future,
project
since
allowed.
may
of
difficult
more
know what
it
(1)
any
efficiency, and (2) it
pipe line
a
the
applied
as
management
incentive to
makes
that
in
the
criticized
theory
money
the
company
he
does
"management
had
ciation
Smith,
not
now
ple
level,
something
to
[capital]
whether
duced,
that
below
able
the
gas
superior
higher.
of
cost
would
so
not
gas
K.
Farrar
Co.,
elected
24).
of
Chicago.
are:
Kerr, Bacon, Whip¬
Blinois
of
always
those
"Liberals";'-
been
I doubt there is
does not feel
intellectuals,"' moving
"fellow
Mrs. Roosevelt has said
"Liberal""in the country today
"we Liberals."
as
a
sympathetic toward Alger Hiss.
no use of this public confession,
Stevenson's:
in
effect,
that
munists is nonsense, that what
and
although, he hasn't
so
monstrous
the
we
hue
and
against
cry
Com¬
have got to fight is Communism
pinpointed it, the
munism is to establish socialized
medicine,
a
to fight Com¬
way
still bigger and more
centralized Federal Government.
But now,
let's get back to Korea. It is not the Republicans'
political baby. They are not afraid of being accused of Com¬
munist appeasement.
So they would be likely to deal forthwith
realistically with the situation. They would most likely de¬
cide that Korea means nothing to this country and have no illu¬
sions or political fears about withdrawing from the country and
and
telling Stalin to go to hell,
or
maybe to turn the
war over
to the
South Koreans and the Chinese Nationalists.
Supposing, however, Stevenson wins.
Well, the Administra¬
tion went into the Korean War because of the fear of the Repub¬
licans' charge that they were coddling Communists or were fellow
travelers.
They will
Republicans
on
now
have gone to the country and beat the
that issue.
They
were
unnecessarily worried. The
The Communist issue
issue can't be revived four years from now.
will
be something
they have
no
longer to fear.
So they, them¬
selves, would be likely to "kiss Korea off, to end it up in some sort
of a propaganda splurge intended to make us feel we had out¬
witted the Russians, had won a victory, but of which, irrespective
of how convincing
the
W.
Secretary-Treasurer.
Company,
New members of the
of
ecutive
as
to
&
be
re¬
pointed out
is still well
of other
Committee
Group Ex¬
true
in
are:
Hotchkiss,
Simmons;
William
Blunt
end
of the
the propaganda should be, the people would
war
say
is o.k. with them.
G. C. Sexton Opens
Papadakos Opens
J.
all
areae,
is frequently in demand as a
fuel
even
when
the
cost
is
Nicholas J. Panadakos is engag-
WELCH," W. Va.—G. C. Sextor
is engaging in the securities busi-
Ellis offices
Lawlor, York
at
80
Wall
Street,
New
City.
ness
from
offices
in
the
Vick
Building.
Jr., Hornblower & Weeks; James
M.
Pigott,
Central Republic
P. Riley Co. Formed
Company.
compar¬
that in his opinbe
&
Oct.
when
Evans, Continental
National Bank and Trust
Eugene
question
Kayser
cost
service,*
Tnis
but
Mr.
the
advantage
rates should
gas
yesterday
& Co., Vice-Chairman..
Thomas
leverage.
the
Group
1933
ing in the securities business from
taking
Regarding
officers
William D.
Asso¬
annual
the
at
afternoon,
Barney
Group
Bankers
Holden
succeeds
Other
will be
return
the
(late Friday
the company more and more pros¬
by
H.
Lee
—
States
of America
of
times.
Since
The Republicans have made
elected Chair¬
was
Central
Investment
meeting
He
shoot at and could strive to make
perous
the
of
the
of
into the
definite 6%
a
Chicago,
pany,
man
earnings
the: rate of
With
the
for
rate of return
established at
111.
CHICAGO,
Ostrander, William Blair & Com¬
also
Kayser
of
cost
of
ac¬
Consumer,"
the
many
who
tion certainly is not in the interest
of
have
Huhn
B.
Jack
by
applicable
was
Communists.
political horizon they have never looked upon the /
agents of a foreign country, as subversives. The v
toward the same goals
the Commission to be charged the
a
on
as
Communists
and
of return,
rate
mind
upon our
Communists
oc¬
the
public appraised the stocks based
not only on earnings and yield but
on
growth prospects. The Com¬
curred
erals"
The
of
the
new
officers and members
Executive
Committee will
SARATOGA SPRINGS.
G S, Shealy
N. Y.
Philip Riley has formed Philip
take office immediately following Riley and Company with offices
ni
the annual convention of the IBA at 246 Carpline Street to conduct
Nov. 30-Dec. 5 at Hollywood, Fla. an investment business.
OPELIKA,
is
engaging
Opens
Ala.—C.
in
a
S.
ness front offices at ,115 V2
Eighth Street.
Shealy
securities
busi-
South
Volume 176
Number 5164
The Commercial and Financial Chronicle
...
(1623)
FPC
Rate
Policy of FPC Towaid
Natural Gas Companies
rate of return and the
controversial
recent
set up
as
by the Supreme Court 30
investment base
net
FPC should
and
not
followed by the
as
does
market value of securities..
sion
reduce "time lag" in
to
two
subjects
which,
I
the
part of
Commission.
which you
of
and
That
are
you
assure
of
those
return
I
have
from
t h
our
own
in
1943.
case,3 and the
Bluefield
So
I believe I
rate
our
said,
ern
^Like¬
wise, f r o m
Thomas C. Buchanan
Natural
cur
in recent
weeks.
volume
can
no
making from
and
and
of
I
know
■
of
the
"Warning,"
mail
did
in¬
not
materially and apparently
die industry had not reacted
panel discussions at the recent
un¬
American Bar Association meeting favorably to
our
action in that
case.
In fact, one week before
in San
the
Francisco, as well as from
published reports to stockholders, "Warning" one service had rec¬
ommended
equally obvious that regula¬
tory lag is a matter of great con¬
I
cern.
those
will
address
myself
stocks which
to
with
of
Rate
Regulation
•
-
!in
-
of the
some
the
"Warning" crit¬
icized.
Actually the "Warning"
coincided, time-wise, more nearly
subjects in that order.
Bases
favorably
the
the
issuance of
our
opinion
Interstate and
Colorado
-
It
is
generally
public utility
two
on
recognized
regulation
fundamental
is
Mississippi
that
As
premises:
River
h^ve
may
based
I
have
which
cases,
significance.
some
said,
First, it must be taken as a fact
that all rate regulation is intended
actually there
has been little
change in Com¬
mission policy in
respect to the
to
determination
*
limit earnings which, in itself,
necessarily has a breaking effect
-
has
the market value of stock.
on
Second,
with
since
we
monopoly,
is
axiomatic
a
it
reasonable
that there should be
return
the
the
on
dealing
are
dollars
through the
invested
in
project, but that there should
be
little, if any, relationship be¬
tween such return and speculative
Northern
Natural
decision
handed down by the Commis¬
sion
June
on
ten
11
of this
days, before
I
year—just
went
sab¬
on
of
return
the Commission
jurisdiction over public
had
years
rates.
In this connection,
it should be recognized that
every
orado,
has
the
approved
return therein
one
rate
of
used.
always de¬
termined the rate of return on the
basis of the record before it, that
is to say, on a
case-by-case basis.
This
clear
is
made
by
the
fact
tarily), due to the fact that I had
dared
Company of America, decided in
ing
to
express
the
said
Court
in
the
opinion dur¬
an
previous
Supreme
it
(somewhat involun¬
that
year
had
meant
Interstate
Case,i as it related
Phillips Petroleum Case?
It
the
to
now
until
not
was
what
Natural
Gas
appeal.
the
on
almost
three months later that the North¬
decision
ern
nition
in
the
doubt
all
of
reached open recog¬
financial news. No
will
you
the
recall
"Warning" that appeared in capi¬
tal letters
the
New
day,
as
Sept.
advertisement in
an
York
7.
"Times"
The
day
off." To
natural
gas market
"slid
be
there
general
sure
was
a
ket decline, but as critical
try
may
if
to be,
reasonable
Sun¬
on
next
the
mar¬
charge
can
that break to the Federal Power
Commission, although
correspondents
done
is'
have
just that.
My
that, lacking
motive,
was
of
our
1940, the rate of return found
sonable
definitely
opinion
any
ill-considered
action, and
demonstrated poor judgment.
under
raise
the
was
fully sus¬
public, a wealth of informa¬
the Supreme Court in tion concerning natural
gas secu¬
the "Hope Natural Gas
rities is also
Company
becoming available.
Case" and other
It is only natural as more
proceedings. The
and
method
is
United
the
widely through¬ better data
States, being em¬ Commission
used'
are
available
the
be
Public
ade¬
and
plied.)
;
money
proper
Service
Commission
Now
of
New York:
eco¬
of
(Emphasis
That
principle
uttered.
is
just
when it
as
its
sup¬
as
was
even
the "statement
more
in
the
specific
Hope
is
case:
all
prehensive
ap¬
of
data
the form
of
in¬
are
exhibits
by witnesses for the utilities and
the Commission's
staff, and exten¬
sive testimony is
given in respect
to
the
exhibits.
These exhibits
.
This
is
the
speaking:
Supreme
,
.
...
Court
generally set.forth in great detail
interest rates
.
"Thus we stated in the
Natural
Gas Pipeline Co. case
that 'regu¬
lation does not insure
that the
business shall produce net reve¬
/ ■:
31^U. S.
590. But such
considerations aside,' the investor
interest has
p.
legitimate
a
with the financial
whose
company
regulated..
rates
From
concern
integrity of the
the
are
being
investor
point of view it is
company
portant that there be
enough
enue
not only for
operating
penses
but
also for the
or
im¬
rev¬
ex¬
capital
"costs
of
clude
the
dividends
cago
business.
service
&
on
the
on
Grand
These
in¬
debt
the
and
stock.
Trunk
Cf.
Ry.
Chi¬
Co.
v.
Wellman, 143 U. S/339, 345-346.
By that standard theireturn to the
equity owner shottfd'be commen¬
surate
with
returns
on
invest¬
ments in other
enterprises haying
'corresponding risks, That return,
integrity of the enterprise,
maintain
its
tract capital.
credit
and
See Missouri
Southwestern Bell Tel. Co.
lic Service
so
at¬
ex.
rel.
v.
Commission, 262
Pub¬
borrowed money,
preferred stock capital,
cost, of
cost'" of
of
was
6V2%.
reasonable.
Water
It is well
known that the Fed¬
Power
Commission in deter¬
the
ana
company
is
true
is neither
phasis.
a
that
another
8.75%
In the Northern
case.
case
>
return provided
common.
The common
51/2%
•
overall
for
amounted to 44% of the total
cap- •
ital. Northern's cost of debt
cap-,
ital was very low. I do not
believe
that
8.75%
utility
a
be
can
low.
on
of
said
The
common
equity ol
standing
Northern's
to
6%
be
unreasonably
found
reasonable
for
Mississippi River Fuel Corpo¬
ration contemplated
9.3% on com¬
new
nor
Financial
a
novel
data
em¬
bearing
cost of capital has been in*
troduced in rate proceedings as
upon
far back
I cart remember. More¬
as
the cost-of-capital emphasis
not only by the Fed¬
over,
is employed
eral Power
generally
sions
in
Commission, but quite
by
this
regulatory
country.
commis¬
There
was
no
warrant, therefore, ■* for ' the
charge that the Commission in the
Northern
cent
Natural
cases
and
other
has
departed
long-time practice.
re¬
from
its
In
Role
of Financial
tric
and
data
in
natural
course, use the method em¬
ployed in bond yield tables. Bonds
sell at a premium or a dis¬
count
rate
refine
but
knowing the nominal
interest, the term of the
of
bonds
can
and
the
readily
tionship
market
price,
determine
of
interest
the
public
world
press,
a
in
the
likewise
utilities
be¬
somewhat
its
annual interest
to current market
adjustment for amortization
premium or discount.
is- the
our
of
use
best
similar process
a
of
means
judgment
informing
earnings and
to
as
dividend requirements
stock.
given stock
a
on
common
If investors believe that for
yield of 6%
a
process of
In
the
utility, rate
fo.und
Safe
and .uSfeful
less
in
accrued
Colorado
the
It
announced
house
the
to.
the
change in rate policies
obtain
which
was
most
satisfactory
difficult
a
mation
Now,
however,
concerning
these
financial
the
infor¬
Thus
if
the
T., & T. and
are
reflects
facts..
related
thereof,
to
dividend
the
get
we
proximation
quirement
$9
earnings
of
in
a
on
market
the
investor's
order
to
put
In
<
Interstate
the
was
financial
Continued
on
page
of these shares having been publicly subscribed to, this advertisement
appears as
of record only and is neither an offer to sell nor a solicitation
of offers
buy any of these securities. The offering is made
only by the Offering Circular.
ISSUE
748,000 Shares
Gas
1952
5%%
allowed;
was
Mississippi River Fuel
tion
in
opiflion, issued Aug. 4,
6%
found
was
the
Corpora¬
reasonable
South Texas Oil and Gas Co.
1952,
and
(A
Delaware
the Northern Natural
sued
June
Corporation)
in
Common Stock
opinion^ is¬
11, 1952, 5y2%
al¬
was
.
lowed.
fore,
one
It
to
is
not
the "Commission
say
F.
P.
C.
et
2 State
Natural
al., 331
of
Gas
Per
Share)
-
has
applies
regardless of the facts of the
1 Interstate
1()</
there¬
accurate,
rate of return which it
(Par Value
Price: 40c
per
case.
Company
Share
v.
U. S. 682.
Copies of the Offering Circular may
be obtained from the
undersigned.
Wisconsin and P. S. Com¬
Wisconsin v. Federal Power
3
Southwestern
Service
on
of
"An
fore
address
the
New
New
by
Chairman
York
York
4 Bluefield
Buchanan
of Security
Oct. 8, 1952.
Co.
U.
679.
S.
5 F.
Society
City,
U.
Bell
Tel.
Commission, 262 U.
P.
S.
591.
v.
Wa*er
Works
Public
Service
-
C.
v.
-
Hope
Co.
v.
Hunter Securities Corporation
Public
S. 276.
Member: National Association
of Securities Dealers, Inc.
&
Improve¬
Comm., 262
52
-
Natural
\
Gas,
320
'
-
Broadway
Dlgby 4-2785
re¬
his
in A. T. & T.
Investor
requirements may vary from time
recent
Natural
ap¬
money
matter
to
NEW
A.
value
reasonable
All
a
of
that stock
Company opinion, issued. Aug. 8,
ment
alysts,
and
was
systems and it
to
public service, prevailed.
depreciation, with
Harbor
5%
case,
appropriate.
return.
vestment rate base.
Broadly speak¬ the Commission first obtained
ju¬
ing, the net investment rate base
risdiction over natural gas pipe
consists of cost of
properties used line companies a similar situation
Corporation
pro¬
ceeding. 1946, which was an elec¬
tric
The
in
we
rela¬
to
price. I
would like to
emphasize at this
point that the yield on bonds is a
relationship,, the relationship of
Now the
more
to elec¬
come'available, the Commission is
to
re-
we,
may
Data
as
respect
gas
yield
capital
with
It is likewise true- that
financial
the
debt
on
of
of
The
determining
quirementts
Commission, and Phillips Petroleum Com¬
pany, et al., C*A. D.C. Ncs,
If,247, et al.
only
but
com¬
quantity
in
mining just and reasonable rates data in respect'to operating elec¬
employs what is called a net in¬ tric
utility common stocks. Wheh
Power
ing
not
mean
analysis of
The cost and
In the Missis¬
mission
day,
return
not
mon
equity. In the Colorado case
reaching its the 5%% overall return allowed
conclusions, the Commission has 8.45% for common equity. The
emphasized
the
cost-of-capital returns on common equity are
concept specifically mentioned in after allowance for cost
of financ¬
the "Hope Case,"
This, however, ing.
.It
U. S. enabled
276,291 (Mr. Justice Brandeis con¬
curring).; The conditions under
to
money
capital,
under consideration.
as
to
rate
does
senior
the
on
cost of common stock
moreover, should be sufficient to
assure confidence in the
financial
•to
stock.
mon
the
financial
troduced in
first
-
Perhaps
overall
very much in the
capital must be taken»
pertinent infor¬
mation bearing upon proper rate into consideration. A 5V2% return
in one case could
of return. In the formal
yield more on
proceed¬
ings before the Commission, com¬ common stock" than a 6% return in;
.
plicable today
the
standing by itself
In
necessary
discharge
duties."
rea¬
analysis that appeared the follow¬
publication,
to*the
that
be
efficient
the
sippi River Fuel Corporation case,
decided in
1945, 6% was found
own
constructive
so-called "Warning"
the
an
some
method
one
as
I doubt seriously
persons
should
utility and should
public,
eral
sthat in the.first major natural gas
rate
casej Natural Gas Pipeline
batical leave
10O
determining the rate of an
earnings coverage of 9% are
not long ago when
or
another
required to call forth their cap¬
of- the
these
cases, which
more
or
less
might be practically all of the electric util¬ ital, then the stock will
Northern,
Mississippi and
Col¬ allowed are not
generally
ities
were
in
important here."
holding company sell on the basis
member of the Commission in
The Commission has
~
was
rate
utility
profits.
The
of
than
available,
by
considers
to
nues.'
.
crease
it is
the
tained
out
Water
that there has been
you
and
Power
regulatory
applying the principle of the
"Bluefield Case," the Commission
the
It is significant that
during the
three months interim between the
ssuance of our
opinion in North¬
reading
press
Bell
the
contemplated.
as
financial
e
of
dissent
standards
none
obvious,
in
change in
i-n the topic of
is
creature
Brandeis
1920's to
interested
rate
approach to rate maka
case,4 and the Hope Natural Gas
case,5
ranging from
the
early
ulatory
lag.
the
decisions
rate
reg
Power
";
Southwestern
terested,
return
Federal;
„evisirg, but follows the standard
in-
of
our
ihg is not
are
namely,
Now
-
fancy,
by
more
and along with the
great expan¬
cept its interim order in the Nat¬ sion of the
natural gas
companies
ural Gas
Pipeline rate case, 1940, putting securities in the
hands of
re-.
it
rates.
the
Federal
of
ex¬
nomical management, to maintain
and support its credit and
enable
.
those in
primarily
fixing
the
return
quate,
for
My discussion necessarily must
limited.
So, to bring it into
immediate focus I will confine it
I
are
of
merely to maintain
efforts of the Commis¬
out
the
but
characteristics
electric utility stocks is
11
better analyses
ployed by more commissions than will be made and the
reason¬
process of
any other rate base method.
ably sufficient to assure
It is determining rate of return refined
confi->
dence in the financial
employed, for instance, by the and made more accurate.
soundnessi
"The
Commission, and holds
rates
Points
be
to
fix
not
in
The principle is:
ago.
Describes
years ago.
principle
commissions in
general, was stated
by the Supreme Court in the Bluefield case, decided about 30 years
Federal Power Commission has
changed basis of rate determi¬
nation
reasonable allowance for
required
The Commission
has used this method in all
-
made,
only by
Commission
Denies
cases.
Court
working capital.
fundamental
not
subjects of the
natural gas rate
Supreme
Ruling
accordance with which rate of
turn
determinations
are
delays in fixing rates of utilities, Chair¬
Buchanan reviews
man
the
The
v.
By THOMAS C. BUCHANAN*
to
;
.
Chairman, Federal Power Commission
Limiting his discussion
Follows
<
New York
4, N. Y.
i -
37
12
The Commercial and Financial Chronicle
(1624)
mark
Sound Investment
Jr.*
GEORGE F. SHASKAN,
Company
New York Stock Exchange
Members
a
This
is
believe
I
re¬
but
a
and consume even
twenty years hence
and
still
Of course, there
more.
and downs in the way,
true investor can only
may
be
But
the
take
growth. Warns against
tips and lists rules for sound investing.
the long run
ups
Well then—if these are the rea-
tense that you
times
portfolio will
will
probably yield only 3 or 4% and
that is why I have used a figure
are all familiai;. I have here an
ordinary snow suit-the kind you
for average
be buying this afternoon
for Johnny or Suzy. What do you
what you
set forth
sound investment program,
a
In this way
been
to
who have
you
false
formula
become
to
is at
today
when such
rate over good
wealthy
least
end
with
suit?
snow
a
a
profit
as^
out to but
go
you
First, I
am sure you
Johnny
whether
yourself
protection against inflation.
us stop for a moment and go
that
coat
ico's.
Geo. F.
Shaskan, Jr.
I
cents;
many
..
,
.
that
see
iT
errands which I am sure
have. No, an investcannot be counted
make quick profits. Now I
pressing
chicken,
full
Wait
cents.
roast beef,
10
a
suit
snow
or
whether he
company's
find such
can
sheet
again either in
of the standard security ref¬
one
you
a
cents;
Thursday, October 30, 1952
.
if it declines somewhat
couraged
if it fails to act
or
little practice and
a
with
investment
your
advisor you can soon learn to pick
out
few
a
the
of
essential
high¬
lights. Determining the soundness
structure
financial
is
like
our snow suit for sound¬
workmanship.
checking
of
ness
Having
we
are
We
four
these
made
tests
ready for the final
priced right.
now
the security
test—is
have to do
now
our
compara¬
tive shopping. Naturally a securi¬
of
having decided on what
want
I
you
which has met the first four
is also one which is likely
deal Of interest
ty
icated upon a long-run growth.
Tips
Beware
Expensive
then
From
for
any
along.
on
security
a
value
some
That
regard.
listen
tells
start looking. None
sure buys the first
you
am
12 sn0W suit that
you see.
You look
he
clamor to get
aboard the price of such a securi¬
the
President
pushed out of line.
Security prices after all like the
prices of all other goods and serv¬
has
reflect
ices
If
been
supply and demand.
people are interested in
many
acquiring
member
the
of
other
the
elevator
heard
the
assistant
of
of
a
from
most respectable
do
officers
not
material.
to
Re¬
company.
companies
confidential
cir¬
has
reveal
Moreover,
is often possible that the man¬
it
agement
of
company
a
involved
so
with
overall
and few investors already holding
an
evaluation
of
be
may
day
security problems that it is unable
particular
a
must
we
in
what
to
us
chauffeur
ty
either
might have little
is why we some¬
we
the
the
but
whom
for
one
cumstances
community.
in
itself
is
investigation is the
first step
in security selection.
Tips are usually appealing, that
is why we are willing to follow
man
Perhaps
come
of
remember that
times
investment
may
not
may
bad
or
fair game
are
which
tip
that
good
you
rumor
A
mean
to receive a good
the
>
of
tips.
Tips can be
the most expensive kind of advice
you are ever likely to get. And
this is particularly true of a first
tip which may work out well.
tests
from
you
inal selection may have been pred¬
company
working
as
anticipated. You should cer¬
tainly not rush to sell it because
of a small gain when yaur orig¬
books, by writing to the
for its latest annual or
erence
well
as
had
that
want?
Then
5
dinner,
course
I
do
beef and cab-
corn
4 cents;
roast
regular
York—Delmon-
New
bage costs
of
needs
Let might be better off with a jacket
over or
a
coati In other words, you
of the fanciest res¬ first answer the
question—what
one
in
taurants
leave now and
care
of
menu
a
you
have
wanted — can
the
achieve
can
look for when
,
sound investment program is some
fur
take
.
important
very
we
.
make
buy
new
which
very
to
enough
to
second
A
or
—
the
years
and bad of about 5%.
very
You
are
.
,
There will be
a
.
at
all-
an
and dividends are com-
mensurately high.
pre¬
magic
a
business
that
leave
with
the present time a sound
security portfolio could be obtained to yield more than 6%.
However, it must be recognized
At
time peak
under
come
the
those of
induced
sheet.
balance
of
view.
sonable objectives of sound in¬
vesting, how do we go about to
achieve them. I don t believe t at
the road is as difficult as many
People make it out to be.
Let us forget about investments
*be rT1®mei?^. and *°°k
s01116"
thing with which I am sure you
from
balance
structure
the
from
first but with
economic
our
produce
even
nity to share in the country's long-term
should
cannot expect
financial
available
expand.
questions
will
more,
(1) good income; (2) inflation protection? and (3) opportu¬
we
about
to
or
other
many
beginning. Ten years from now we
sources.
sound security selection with the shop¬
ping tests women make when purchasing for the family. Sees
three reasonable objectives for a sound investment program:
Mr. Shaskan compares
Perhaps at the outset
and
quarterly report, or by asking
your
broker. Balance sheet an¬
alysis may be a little difficult at
of
doubling
Members New York Curb Exchange
■:
activities
normal
These
work and reap
Partner, Shaskan &
<;
ahead. But by a
years
handsome rewards
in the form of capital appreciation
and increased income. In the past
decade
we
have seen almost a
Programming
For You
By
the
judicious selection of securities of
those companies who each day are
conquering new economic fron¬
tiers we can share in this gre^t
.
to
day
to make
its
security.
security wish to sell it, it is
natural
only
So
we
compare
Don't
price will
the
that
rise—sometimes
high.
the price of
Taxes
com¬
too
much
tant
parable values in the same in¬
dustry to try to obtain the best
own
to beat Uncle Sam.
of course, an impor¬
try
are,
consideration
in determining
action. However, if it is
that a security should
upon any
indicated
moment, something at several
checking to see
be sold for investment reasons it
Oh yes, this menu whether they are in style, whether buy.
should be sold and not held be¬
j.s about 100 years old.
I'm sure they are well-made, whether they
These then are five simple steps
on to
^a^ ajj
0f you
shoppers know will give good service, wash well, which the intelligent investor can cause of taxes which may have
to be paid on profits or in order
know that all of us have heard what inflation means. In the
past and so forth. Finally, having to easily take in selecting a particu¬
to take advantage of lower longabout someone who became a nul- ^en years alone prices have dou- stretch the
family budget as wide lar security. I don't know why so
term capital gain rates.
lionaire with only a few hundred bjed and ^he upward spiral shows as
Holding
investors
possible, you shop around, you few
actually
follow
dollars;
or
someone
else who little sign of relenting. This rnean^ try to buy the snow suit you have them. Perhaps it is because most a security that extra month may
often result not only in a disap¬
bought a security at $10 a share that a dollar will buy, only half selected as cheaply as possible. In
people are so busy trying to make
and sold it three weeks later for what it
bought a decade back— other words,-ybp are engaging in money that they have little time pearance of any profits but a loss
of the original investment itself.
$25 a share. I'm afraid that such or put another way it takes $2 to that
honorable .and
intelligent left over to invest it wisely. It is
incidents
often
have
more
roSacred cows, like tips, are likely
purchase what $1 bought ten years practice of "comparative
shop- a truism that it is easier to make
mance than fact
and in the very ag0
to be expensive—beware of them.
This is again a particularly ping."
money than to hold on to it.
few cases where they have oc- difficult
We all know at least one investor
problem for those who
Stocks and Snow Suits
Or perhaps, most investors are
curred
who has a particular pet.
represent special
condi- bave oniy a fixed number of dolPer¬
now selecting a securitv is not in fact' not investors but
of
all
you
a
—
mus^ be wr0ng.
ment program
tions which few
of
us
iortu-
are
tomlkfa
!v?nl whnhhave
"quick killing" in the market most
tkpv
wfSl
of
the
and
intAntirno
intentions and
w
ionaesi,
The wh
iT strewn wifh
„,t(
ESS
but
returns
taa
nrofit
easv
nniv
nnt
haup
reasonable
foregone
nopes.
On the other hand, a sound investment program can
accomplish
specu¬
lars.
provide
can
come
which
reasonable
a
that
the many individuals
larly
who
women
number
of
particu-
-
have
fixed
income
a
dollars,
the
their only
from which is
is not something
or pnn-
As you
know savings accounts and Government bonds return
2%%';. that is, for
each
vested
every
these
of
would provide an
only about
$1,000 in-
two
media
income of about
new,
or
°ver flation protection. Or perhaps, we
the long
is an upward one and Just want to make sure that when
oyer thg pgst 10Q yeaR. in th,g Johnny gets Q,d enough fQr col.
country the cost of living has Jege we will have a nest egg
jumped
over
tucked
300%.
swer,
.
provide
protection
0
against
g™™® s°™aivP™te"la"
stocks
common
ZZion
.
a
+
th
dividends
.
ft
nwnprc
-t
railroads
fully considered investment portfolio
be counted
can
on
nvi.oe.
n
to return
.
re-
kJL
+VlQ„
.
.
we
want out of
an
investment program,
Now we are ready to select a
security. Like selecting a snow
suit we must ask ourselves a num-
ber °f
l* P* -?fCUrity
w an industry which will grow
and
prosper
the future or is
in
.
words is 4t fashionab
to continue to be so.
Having
"«vin5 made
.
„
.
.
industry in an aat°m°bile a^
This is equivalent to our'checking
???_£ x.ght industry
riSht
.
.
sure
smc
than 5%
have the
ircvc uiC
we must then look
we
means
mat
ior
eacn
•
an
averaee
average
than
m
annual
some
some
$50
$du,
income
or
or
the previous
100%
iuu /0
an
would
more
more
example.
It
aver-u.r0mnanv has fared
„
securjiies on the
fr ^ o?
?T
New York Stock
bave nrovided
a
Exchange would
in
ennd
timec:
company nas iarea m gooa times
and bad, how it has weathered
the
stormv
vears
and
how
it
has
total sain includ-
all of the dividend-paying
aU1'ofeitoe1I^vidend^aytog^acom- inJ d[vidends °'aab<?u"t
after aosely^related^realmings fsethe
stocks listed
the N?w
for the rise in the cost company's dividend record, since a
Yo°rk Stock^xchanBrth^rate rf °f i'V'"8-Jhis is not a great gain, company can disburse to its "stockreturnfo? Mcho"thepastten
totect,on whlch was ^ bnIy r^at U fhas been
com
on
vears
based
each^
oi
of eacn
on
interested
the vear-end nrice
waraS
security was as follows*
security
follows.
1942.
5.0
1945.
3.6
1946.
^
we
can
able to earn- Figures of earnings
and dividends are easily obtained
is participacountry's wonderful
future. Despite all the talk of the
passing
of frontiers
and
false
prosperity built on war, I have
can find them in almost
standard security reference
book, or if this is not available
to you, ask your broker. He will
be glad to supply them. Looking
at earnings and dividends is like
checking to see how our snow suit
reasonably
6.1
1944.
y needed*
The third ^oal which
4.8
expect
investment
7.8%
1943.
program
tion
in
and
market
stock
chances
are
a
a
the basis
are
ing off
of the
point
a
sell it because
two—you
lator and not
Having
frQm
a
sound
the
__you
any
of
us
to
have
is
1952.
our
industries will
plant
or
harness
con-
en-
from the atom, or discover
the hundreds of wonderful drugs
ergy
and chemical
burner, the ice box by the refrig¬
Yesterday's heroes may-
erator.
tomorrow's
become
well
We
must
take
duds.
be willing to
fresh look at the economy
a
always
make such changes
and to
investment
thinking
in
our
as are neces¬
to keep it up to date.
sary
There
are,
of course, many
investment rules which we
could
specu¬
discuss.
the
tests
possible
selecting
products which will
We
must
also
sufficient
look
funds
at
to
a
corn-
meet
its
a
number
of
away
the most impor¬
infallible
vestment
if
it will not
entire
none
it is
important
many eggs in our in¬
basket as possible. Then
have made
we
Since
as
quently I
a
mean as
capital
It
is
certainly not
few
them all in
minutes.
However, L
that
the
conservative
to
cover
were
mistake
much
two
or
as
if
involved.
com¬
panies whose main business is in
It
ada.
ficult
tunes
United
seems
States
or
Can¬
to me that it is dif¬
enough to follow the for¬
of
American
corporations
without
trying
keep in con¬
the coun¬
to
tact with those outside
With foreign holdings,
try.
our
Fre¬
-investor
should stick to securities <of
over, we
such
as
more¬
must run additional risks
exchange controls, con¬
investor
fiscation, etc. I see no reason to
buy only one stock— take on this additional risk.
let us say American Telephone.
I think it is also a good idea
Now I quite agree that American
to stick to securities which have
Telephone belongs in any wellbeen on the public market for a
rounded
portfolio.
However, it
doesn't make any more sense to number of years. New issues —
who
come across an
will
have nothing but American Tele¬
and by
phone than it does to eat nothing
curities
but
public for the first time, not addi¬
oysters.
Another
important rule is to
have patience.
Many forces af¬
fect security prices. Some of these
sound
21,
buggy being replaced by the
auto, the coal furnace by the oil
either the
has
October
the
other
a
investor.
program
Far and
you
Y.,
an
tant is diversification.
gal in its borrowings, whether it
before
a
general rules should be followed.
of
N.
it is up
wish to
point or
However, in preparing
overall
an
run
Shaskan
be
never
other
value
Scarsdale,
or
a
short
Mr.
two,
or
established
pany's financial position—whether
it has been conservative or prodi-
of
told him should
turn
must make in
we
aluminum
by
haps it is a security which his
grandfather told his father who
in
these
which
7.0
Club
five tests,
above
probably
are
will hold up, how it will wash, in
short how serviceable it will be.
address
speculator.
security on
concerned about its fall¬
tinue to grow and that there will
be more goods and services for all.
Eaclv of us cannot build a new
Women's
you
day
every
are
7.8
An
page
If, having purchased
1949.
the
al¬
not
easily drawn.
However, I
should say that if you look at the
1948.
6.5
a
ways
faith that
6.7
is
investor
an
6.3
1951.
are
making
in
specu¬
lator
1947.
1950.
they
quick profit, in beating the game,
sold. We must remember that we
rather than having a sound in¬
are living in a dynamic world, one
vestment
program for
the long
in which we are constantly seeing
run.
The line between a
the average con-
on
,
j.ms
invested,
really
securities.
we
wC
® "1 ?S 1,W£lch, m Jurn Permit ,at a number of securities in that
sidering both good years and bad" f eater dividends. For example, ^di^¥e 1^^ their ^
This means that for each $1 000 ^un
pricf risa .°f
iast ings record to see how a particular
^>i,uuu
decade
investment m
more
In
you
' it likely to be a horse and buggy
product,ve
tLi
nHPP. rkp
an-
first question is to de-
words
other
lators.
particular security, it is just an¬
should
like
to
add
two
more
step to prepare an overall
which are not generally found in
sound investment program.
Such
farf0rip<?
it* minnc
Xl110 13 cHuivaiciu w
"icbftuiB
the rule books but about which I
its utilities
pJ? * ' the"snow suit for style—in other a program is simply a combina¬ feel quite deeply. The first, is
tion
of
well
chosen
individual
u-
sources
price and
.
natXfs
the
this
whichPthey pay
iv;
*
n
fn
reflect
fn Lir
Mh
Whatever the
away.
our
eide just what
Inflation Protection
A sound investment
program can
It is my belief that a care-
$25.
want? Are we primarily interested
little longer. Ac- important at the moment than in-
a
tually' the record of P™ea
.
cipal source of livelihood.
a
somethinS about which w<= have in a good income or is income less
to worry only
in-
most important for
is
buvinV
from
What some of you may not reaI'
su« The first question® we
ize about lnflatlon. however, is must ask ourselves is what do we
three very important goals. First,
it
different
verv
have
little
to
do
with
the
real
security. But in the
they can have consid¬
a
erable effect
on
market action.
have selected
If
security on a
basis you should not be dis¬
a
this I
am
which
tional shares of
on
referring to
are
offered
But
here
again,
know what the
seem
we
we
information
less
with
which
to
attrac¬
do
not
public acceptance
for these will be and
have
se¬
the
companies already
the market—often
tive.
to
check
probably
available
them.
L'
realize that in following this rulewe
will miss
some
wonderful in-
Volume 176
Number 5164
.
.
.
The Commercial and Financial Chronicle
(1625)
vestments but
are
we
likely
more
tot rtiiss-the •' Tuckers/ and
hundreds
V. ■r'\ ".
issues
the
well
may
•
considerable
ask
risk
•
DoremHS-Eshleman:
•
York, ..III, Bemjamin, Eshleman,
James,. J. D. Spillan, L. H.. Green-
:
which
haveibeco^e totally worthless/?^i
You
<■
other
of
isn't
.""curitsr purchases. I would
Merge Phila. Offices
t
there
attached
house and B.
-
se-
answer*
Mr.
;William H. Long, Jr., President
•
to
JII;,; Will
of Doremus &
-f
Vice-Presidents
with
man
tion
,
•>»
■: this lecture
you will have to
'tf-.54.Ri.*.
streets to
•
cross
get horned A great
people are
over
run
many
every
year.
the
nounce
.
<
f
house
your
burn down. More important,
power of your dol-
may
;
*
mattress. First,
your
tising
away
have the
in
have;
we
as
whittled
the
so
ag e n c yi - and
number
same
mattress
of
you- the
dollars
each
dollar
than
previously.
will
•
buy
much
less
This loss is just as
you
.
serving
as manager.
to«the merger,'
Scott, Khoury & Co., Inc., New
Long said:--Both Mr. Eshle- : York City, has retained .the serv*/:
and I feel that this combina-' ices of George A.
and
lose
part
prices
though
as
of
Ben¬ .both
of
merged
name
Company,
&
in
<
will
Philadelphia
of
a
business
be
under
Locust
agencies
in
division of Doremus
Street.
E.
Howard
the
clients
of
by
all
Relations
increasing
our
tising and public relations. It also
provides
business."
.
broadei* base for added
a
,:
Doremus
quarters
of
Company,
which
New
has offices in
San
'V; /; *'
&
Representative; ;in-eonforthcoming public
are
York
head¬
at
City,
120
also
Chicago, Boston, and
Francisco and correspondents
in London.
ample,
<<
>
.two
-
new
safe.
«
-
;
v.
.
„Mhe
,
v.1'(Special to-The
.
Financial
„
become
the
over
Street.
was
with Merrill
.
However,
annuities
Donald J. Wulbrecht have
V(8pe!ii>l to the financial chronicle)
joined
New York and
Detroit Stock
Ex-
rill
Lynch,
Pierce,
Beane, 311 C Street.
•••
'rftyjittvimry
to
■w.-.
.vi-xjk-.rsdftiy--
m
including interest
statistics
in
but
the
show
ad-
cost
that
America's
largest
of
the
who put $1,000 in the savings
bank in 1940 had only the same
10
into
is
ago
later, while $1,annuity 10 years
actually worth in
years
purchasing
''fluid
an
today
?if
only half.
power
ijk
mm
Certainly it is true that se¬
curity prices fluctuate and there
may be times when the prices at
It
li,
library
located
near
the Ken
which you can sell your securities
r;
"
be less than
may
by
that
except
stances,
by
prices
we are
for
paid
assuming
special
to replace
or
better
a
the
However,
you.
row
are
'
■lorent
diff
not believe that there is much risk
involved
in
sound
a
case
neither cash
be
For
the
">lv
»Vlf,
c»iUains
t.vpo.of whisky
government
safer.
small
bllnrr
to
v.
(j:;;
y or "ldhw llavor *
aiid'il'"'^''''s library
t/!ciroH7,•
mutual
as
{u.,
(|ua//i
U
what you may
referred
to
;;,os' "u'd./o
investor, invest¬
or
u
o
funds, offer many advantages. In
brief, these investment companies
a,,(t
*
do for the small investor what the
large investor
do for
can
assist
himself.
An
investment company special¬
izes in the management of invest¬
ments for other people. It is much
.
like
any other corporation except
that its assets, instead of being in
the
-
form
of
mills,
.
are
bonds
of
have
oil
wells
or
rolling
companies.
staff,
selected
after
received
income
passed
There
to
take
ment
from
such
not
enough
left
the subject of invest¬
up
some
offer
the
curities
will
diversifi¬
of
50
100
or
hold
,"M
•
.
orojK,I
companies.
u;} '"f
i
Itt-^kcy
/
is
'ualiiii"
n
,
"ju.vint'ni in
vv
'^"ers,
w.
'
,
rr
thai
<
se¬
rvrrv-
J .
,nc.^
*•
tc'n y
*
-
C. ©1952
acquire this degree of diversi¬
WSmS&mmmmm:
fication. Secondly, because of the
fact
that
an
represents
thousands
investment
the
of
employ
visors
who
financial
constantly
ready
custodial
.
not have time
to go
ar¬
marketability
and a host of others which
into
we
now.
SCHENLEY
ad¬
supervise
advantages in¬
convenient
rangements,
of
totalling
dollars, it is able
skilled
its portfolio. Other
clude
company
investments
investors
many millions of
to
<
VOUr
''■nam
The small investor
normally could
not
in
,fl
s>clirn|rv"s
first and most impor-
company
i
T.
»
tant investment rule. A
typical in¬
vestment
u
>cars
is
of their advantages
investor wide
our
in
con'mis 'l
"!'
^:l,cnhHliisU-8
^ ^«p,;;; ;
later—tlw
'•""'•ly
companies in detail. But in
cation,
AmrnVa.
'Ui-lc.
is
mm
investor.
time
C
i
y.v.vw'a
be briefly noted. First, they
may
,
along to the
is
closing,
I
SZiLSZlhc
careful
stocks and bonds and
capital gains
derived from their sale at a
profit
are
S
"'"loy li/nary
in
These
study by the company's financial
.
Tile
composed of stocks and
other
been
a
J
investment
Funds
companies,
have heard
nor
any
The
ment
'
country it¬
bankrupt, in which
becomes
will
'
the
self
bonds
r
'"ge room.
being purchased
for
long-term
holding. Over the long run I do
portfolio—unless
s|„.ir
dial li„c
security
securities
one,
upon
circum¬
one
do
Natures
unhurried
goodiiess
Schenley's
unmatched skill
The best-tasting
r
-
the staff of -Wm. C.
Roney & Co:,'" SAN' DIEGO, Calif.—-Mrs. Betty
Buhl Building, members of the
Butler has joined the staff of Mer-
extremely
received,
justed for the rise
amount
.
i
DETROIT, Mich. — Michael E..ju
'ii
r^..L . A JJ;
ROth, Xindley vH. Stout, Jr.. and"
Merrill..il^nch;^Acfcl§
ex-
decade
considered
000
r
Lynch, Pierce,
kept
living,
,
Mr:
remained
past
associated
W.vPressprich & Co., 201
FennerMeeds in New York. Bis& - Beane and Laird,
sell &
•'
v
Chronicle)
R.
Chhonicle)
Thomas W.
—
* was*
-,
man
'
Financial
Boynton
formerly Boston manager for
Dean/WitterSc Cor Prior 'thereto
corporate
:
Three With Win. C. Rone
y.
■'
The
.Devonshire
changes.
in the savings bank
or in an
annuity? I am sure you
will agree that both of these are
or
•
iwith
with
offerings v-of
phases of adver¬ originations.
1
Boremus-Eshleman 'Broadway,
Company, with headquarters at
1522
benefit
nection
facilities
the ^Phil¬
Doremus- &
will:
to
-Sea-right,•; Dealer-. Boynton- has
your
What has inflation done, for
*•;;
normally
•
real
office
(Special
-BOSTON, Mass.
stationary.
money
-
to
were
money
:
t
The
be. operated
seen, may
that while
the
Company, Inc., effective Jan. 2.
vthe purchasing
if.iar^
of
jamin Eshleman Company, adver¬
()There is risk*, in keeping cash in adelphia
■
merger
.
reference
.
..
Searighf Retained by Thomas Boynton With
Scott, Khoury Co. R. W, Pressprieh & Co.
•
•
..
Mr.
saying'that there is' ing and public relations, and Ben¬
jamin Eshleman,. President of the
a"1 risk1 involved in anything
you
! -dtfor don't do. When you leave Benjamin Eshleman Company, an¬
*'"t"
York
With
Company, advertise
'"this first by
•
be
Franklin Eshleman,
13
whiskies in
ages
Fenner
&
14
The Commercial and, Financial Chronicle
(1626)
We Can Cairy Through a Transition
Inc.
aided
ness,
Companies, Inc.
ment,
maintains
it
business
Says, with aid of finance industry, American
carry through this transition.
Cites as present
can
just
completed
the
six
one
economy
be
successfully
as
can
as
ahead
ago.
years
international
to
standards
(4)
our
.
(3)
history;
adoption of practical policies with respect to inventories,
Holds
prices, costs and credit.
able recessions and less
will
play
I
in
of
arrays
Our
business
endless
have
if
advisers
prophets.
and
peculiar difficulty is
that in
anxious times their prophecies'are
always
c
cies
so con¬
tra d i
flow
blunder.
such
from
But
did
we
commercial
The
picking
choosing
and
that
who
then
cies, it would have been
t ory.
One is kept so
busy
dollars. There
said
that another depression was. in¬
evitable. If we had adopted poli¬
soothsayers
were
terrible
not.
indus¬
to finance the transi¬
try helped
among
them
tion from
tie
little
time economy. Our industry made
has
time
ask
to
whether
might
tion
credit,
•ight.
and
ob¬
Some
servers
con¬
Our
high
year
of
level
business
Herbert R. Silverman
oressed
im-
are
by the size of personal in¬
the growth of personal
and
progressive
out to
All
ket.
too, in the expansion in the
credit
willingness of
the
and
some
of
use
greater
of
to
consumers
rather
far in
1953
But
would
I
likely
will
boom
as
we
can
not
the
that
continue
go
ahead.
see
far
so
as
to
as
that this is inevitable. In busi¬
:-ay
in love, war and politics,
nothing is inevitable.
ness,
as
The
late Wesley Mitchell, the
Columbia economist, spent
great
his lifetime
Among the conclusions to
which he was compelled by a host
of facts
two.
were
boom
every
One
its
generated
slump. The other
was
that
was
own
that every
slump had its start in the midst of
the preceding boom and was often
well on its way before the boom
reached its peak.
These
are
recall
not
thusiasm
look.
sobering facts.
them
about
dim
to
your
business
the
I
do
en¬
out¬
I
merely wish to make the
point that good times, like hard
times, do not "just happen." They
result from decisions.
If
the
because
tend
to
policies
its
promote
credit
majcr
for
we
to
snow
look
But
the
sive
role
its
not
those
and
who
I
looking for bouquets. As
of fact,
we
fi¬
that
say
businessmen
we
in
over¬
by progres¬
operations.
because
not
should
played
business
nance
demand
transition
the
we
give
are
matter
a
too accustomed to
are
dodging brickbats.
In
1946-47,
blundered
our
following
could
we
into
way
the
have
reces¬
a
neither
boom the like of which
our
own
has
ever
economy
nor
For in
seen.
other
any
spite of the
The
other
is just
there
great danger today of blunder¬
ing
our
In
We
recession.
a
which
by
us
on
some
the
business
being urged
of our political
are
hand, and by
one
labor
and
leaders
the other.
candi-
the
private
the
keep
Congress to
set of restraints
a
pre-
upon ex-
will
credit which
market
money
All that
on
an
non-inflationary keel."
to guess what he
even,
is difficult
It
have
considered
look
this
these
upon
situation
hints
with
con-
siderable foreboding.
For
these
modify
nearby
prices
Much
cent years- has
It
in
downtrend
the
prices
would
prices,
_since
of
will
This
be
groups,
I
well
,j all
in
our
democratic
decision-making
notl business
alone.
emphasize
the
negative
as
the positive side of
common
responsibility
just
economy,
as
our
because
transition
years
back
of
as
we
1946-47.
In
this
situation, the voluntaryof
responsibility by the
industry
for
curbing
finance
credit
is
excesses
quired.
that
all
is
re-
By adopting
a credit rethat blocked the
credit,
we
could
of
easily blunder
our
into
way
a
less
in 1946-47
were
cancelled in
Now
the transition
faced, just
1953-54, the need to
in
we
transition from
an
as we
effect
do
a
economy dom¬
inated by military expenditures to
dominated by civilian expen¬
one
total
output.
We
than
10%.
a
Then
one
orders
fell swoop.
will
be
more
gradual.
But
will
government
remain
expenditures
relatively high,
of
purchases
expanded
con¬
increased
and
would
I948
a
re8ched
Then jn
output
a
level
1949
dropped
of
$280
when busi_
$10
declined
by
billion,
third
a
T,hla »>«8e demand for goods
fgrted production upward in late
a
inflation,
such
for
In the
we^would
a
a
unlikely
still
aimed
that
chances
need
credit
a
re-
would -de-
of
achieving
"
•
In
that unlikely sit-
direct controls
over
credit to busi-
and the
consumer
and
as
a
vol-
public duty by
a
industry.
To
the first,
operate
need
you
the
finance
administrative
cumbersome
must
embark
industry.
structure
and
on
is
The
rigid,
expensive.
a
sea
of
You
regula-
Board's
Reserve
1949 to 183 by January, 1950, and
to; 109 by June, 1950. The level
production in June, 1950, was
we^ Above that of mid-1948,
When
we
made the fateful de-
cision to halt the red hordes that
To operate the second
you
Annual
jfinance
£7
1952.
Our
inflation.
approach has worked welT in the;
shall
have
to
the
be
same
time
we
ready to check
experience
proves
that
this
past every time that it was tried,
important
very
credit
decisions
wage,
policy
we
price,
have
to
make, decisions that
could
dissipate our strength or
build upon it.
One
important
strength
achieved
the
is
of
measure
has
recovery
goods
finance
playing
of
substantial
a
during the past
commercial
while
element
that
consumer
been
in
year
The
sector.
industry,
great part in the
a
also
military strength,
helped to get these producers
and
distributors
out
the
of
dol¬
drums.
Our
industry took
against
business
firm stand
a
speculation.
We
recognized that the inventory sit¬
uation growing out of the uncer¬
tainties of the outbreak of
Korea
But
with
one
clear
was
cope.
inventories
excessive
period in which
too
progressive
that
somewhat
were
not
in
situation
the
which
could
management
It
that
sensed
we
was
war
required speedy correction.
major
a
likely. But it
for
a
war was
was
equally
clear
that, in
some
degree. We called, therefore,
period of higher
levels
of
business
activity, in¬
ventories must necessarily rise to
for
the
a
orderly liquidation of in¬
ventories. This has taken place to
substantial
a
extent.
consider¬
help it
able
satisfaction
gave
its customers to achieve this
in
the
without precedent in
str0
situation,
our
history,
Cards We Have t0
Then Korea came and
we sacn-
L Business is less subject to uncertainties arising from internatl0nal Politics. We have succeeded
in rearming without increasing
the danger of global war. Now we
can move from strength in efforts
to-lessen the war danger,
2. We
have gone a
correcting the
bution of income. As
a
long way
maldistriresult,
our
markets are expanding
ripe for expansion. There will
be tremendous opportunities for
3. Our
or
but
were
just
were
we
as
has shown that it was
sage of time
Now
to
a
one.
must carry
we
this through
conclusion. Some elements of
inventories being carried by some
companies
represent
a
avoid
to
effort
ment
manage¬
coming
to
grips with realities. This is not a
widespread problem in business
and
I
in aggregate
unjustified in¬
that
suppose
amount the total of
ventory is not large by any stand¬
ard.
But there is no use riding
dying horse.
a
Managements
vantage
their
strengthen
to
should
of continuing
inventories
element
cf
inventories
That
is
a
zon.
or
impor¬
Slow-
obsolescent
element
of
business.
minor
on
an
are
an
are
bulks small
take ad¬
prosperity
positions.
strength.
moving, overpriced
weakness in any
p,
*lced our peacetime prosperity in
ah effort to maintain world peace,
cann°t hope to go back where
we ^eff• °ff: We must deal with a
new situation. Here are some of
the strong cards we have to play:
toward
be
to
We
realistic view, and the pas¬
a
the correct
,
,.
panic.
by
keenly alive to the dangers of the
Sound
level
refused
We
stampeded
tant
peace of the world,
well on the way toward
of peacetime prosperitv
have
period just ahead, against further
At
the
inventory,
and
cost
we were
—
by Mr. Silverman at 8th
Convention
of
the
Commercial
Industry, New York City, Oct.
In
of
threatened the
tion where all the charts that you
have tell you that previous adventures have been failures.
Federal
index, which seeks to measure the
actual volume of goods turned out
by industry, rose from 176 in mid-
a
t
In credit policy tnere are a few
alternatives.
The
achieve
to
rigid
a
program
all
stability.
stroy
as
/threat of runaway
new
policy
stability not
even
and early 1950-mne montns
before Korea'
-people enjoy the highest levels of
ditures.
when we achieve economy and
only to ask the industry to coop- hving in history. But we have
At that time, in a single
efficiency in the government
erate, make it possible for it to set ,ori*Y scratched the surface of the
year,
1946, government purchases for which I hope we are all deter¬ up the necesary voluntary com- possibilities of scientific technoldefense dropped 95 billion dol¬ mined to do. Because of that long- mittees,
and
fix
responsibility °Sy* The next business expansion
lars. These, like any other figures term trend in government spend¬ upon the industry and its repre- will, make
much higher levels
ing, we shall have to guard, in the sentatives to achieve the goals, possible.
•An address
even
playing.
fields
keenly alive to its possibilities. We
kip}on
-Fr°™ f949 to, the beginning of
the thlr£ <lMarte? of 1950, con;j!'mer buying increased
12
only create busi-
uncertainty.
straint
that
measure,
measure
ness
do
not
of
elements
Our industry can take
basis
investment
untary program of credit restraint
third
an
profitable
more
economy.
important
situation.
total
/
need
ness
This time it
of
goals of foreign pol¬
with the needs
coincide
domestic
partial correcticn of the inventory
re¬
cession.
from
is
industry
the
bmion
program
equal to nearly
was
has recent experience of its truth,
finance
in
The
now
the
took
are
six
But
most
prices
the
the
are
generate infla¬
deflationary influences
in
legislative ceilings and you need
a
large
administration
drawn
our
commercial
in
We
split
business"Tnvesfment.'')ota]"'qutpu.
in
the amount of the cut¬
ago
of
the
did
had.
ever
the
—
American
recession
seems,
sumer
that there
is
it
On
the various sectors of the finance
means,
t y
e
1948-49
of
profitable
more
general upsurge
a
of
proved in the so-called
was
recession
tood
rising
businessmen
not
order
planning and action by industry
that produces the goods can bring
about its distribution,
reasonable. The prevalent opinion
among
high
a
to
extorts
strength give us a strong hand to
play. But we still must do the
the prosperities.
become
soon
take
may
required to distribute the goods
that -pour
from f our
horn
of
plenty. . But the same determined
which have been
vanguard
Even at
genius to prevent any interruption of the network of exchanges
Spring of 1951. The Department
of Agriculture recently forecasted
that meat
people.
our
peak, the military economy
will account only for about 18% of
our total output,
the
recessions and less profitable peak
To effect the transition of 1953-54,
we
need to expand the civilian
i
re-
gone
era,
a
context
a o c
effort in
our
allies,
our
achievement of
in
administered
recall
eco-
price of security.
of
more
calculated
a
as
count
been
have
task that faces American business.
policies
we
efforts
We
com-
business contraction. "We" in this
when
war.
farm
will
seen
liabilities.
economic
business
that
know
we
ard because we refuse to
adopt
policies which would tend toward
be
of
weapons
Except for a prudent amount, we
have not been stockpiling -these
uation, the only choice would be
centrally - administered
How mistaken these
ca-
our
bend
we
keep
does not
or
These
have really done in
we
recent years is to expand
between
Task of Business in the Transition
com-
the English did in the heyday of
classic speculative boom?
had in mind. But many of us who
credit
fact, as I see it, that is easy.
have only to adopt mistaken
some
on
into
way
burst?
up
panjes "t0 make salt water fresh,"
to obtain "oil from poppies," as
this prob-
remarked
to work with the
pare
event of
movement,
Presidential
other day: "I shall hope to be able
forward
as
consumers
goal of economic
our
the
of
standby
adopt
maintenance
One
elements of strength which
support that boom, in spite of the
momentum of this unprecedented
many
ex-
stability in transition requires.
when
a
to
setting
been
living for all
that
channnels
close to the peak of
going
is
that
we
tion and distribution of
goods
straint
are
is the current boom a South Sea
,,
icy
of
needed to maintain high levels of
sion. We must not forget that now,
we
economic-
our
sible the expansion in the produc-
exercise
by
policies,
wrong
abroad.
of
Yet it must also make pos-
to
as¬
to
pent-up
cushioning
1946-47.
upon
activity is maintained, it will be
the
accustomed
are
leaders
present level of business
our
in
for civilian g.,ods
room
policies
Proper Policies Are Important
were
sembly lines.
studying the business
cycle.
how, in
special
shoved aside
visited,
we
outside
We
Certainly all the portents make
mar¬
remember
us
tools
put
make
increase their purchases.
seem
of
effected
businessmen
plants
war
or
its
rest
recapture the civilian
savings. They find encouragement,
current
the
like
tionary
growth in recent years and from
a
failure to appreciate the possibilities in the years ahead,
to
Russia's
economy
derstanding
to
how
them away. This puts pressure on
the government to see that our
I think
into the ex¬
pansion of the goods and services
lem.
with sales
against
this opinion arises from a misun-
one
speculative
is
of
the ex-
policy must be
avoid
will
cessive
customers
purpose
consumer
source
moves
credit
Our
that
by
lending a gullible ear to those in
business who say that a drastic
nomic loss, the
dates has not discussed
with the need for
pace
where it is needed, and to
it
speedy reconversion and went all
activity inevitable. They
come
For
available, when and
tent it is needed.
propor¬
because it
mobile
that
one
keeps
all
peace¬
size.
prospers
and
a
its services.
another
sider
of
out
relative
and
flexible
a
Or
its
to
exists
be
all
wrong.
contribution
a
they
war-time to
a
that credit is
an
must be sure
we
can
is
readjustment is inevitable.
surging .parity to make
but not
adequate
an
we
recession
a
that
demand
effort
every
by which
way
into
know
Our foreign relations respon¬
sibilities
their
keel,
even
an
at
cesses.
finance
credit
to keep the econ-
excessive speed,
prophe¬
a
,
it should.
as
we are
on
omy
profitable prosperity."
I shall use, are 1951
Another
emphasize the "if'. I do so be-
cause,
ahead
We
Credit
key role. If it is able
a
function
to
wages,
should have "more profit¬
we
of
In the process, of course,
have expanding markets;
we
Role
Drastic
Readjustment
who
them.
4.
Inevitable
No
.
Have
...
The
and
foreign policy coincides with domestic policy. Urges
in
use
bubble
:
elements of strength:
(1) business has become less vulnerable
uncertainties; (2) we have highest living
if
the opportunity. I be-
transition
the
seg-
a
transition
the
effect
to
is given
lieve
civilian economy.
civilian
the
of
needed
finance
are
we
through the ex-
carry
can
pansion
"profitable recession" of 1948-49,
forthcoming transilion by expanding
weather
the
by
industry of which
Mr. Silverman, pointing to
can
businessmen
blunder
busi-
American
Thursday, October 30, 1952
.
This voluntary method is flexible,
the civilian econ¬
that
believe
I
.
simple and inexpensive,
rying through an orderly adjust¬
ment of our production and distri¬
possibilities of
President, National Conference of Commercial
we
For
from car-
us
omy.
By HERBERT R. SILVERMAN*
Receivable
these could prevent
bution programs to the needs and
By Expanding Civilian Economy
Vice-President, James Talcotl,
tendencies.
deflationary
any
.
problem
that
the economic hori¬
There is another that is much
general. Last year we had
against exaggeration of
the problem of heavy inventories.
more
to caution
This
year
are
we
running to the
problem of companies tending to
their inventories at low
carry
un¬
workable levels.
Danger of Inventory Expansion
If
buying continues to
consumer
expand
at
rates
presently
indi¬
cated, there will be great tempta¬
tion next year
to
expand
skelter
In
once
for such companies
inventories
helter-
again.
situations—most obvi¬
ously in the cases of rapidly ex¬
many
panding businesses—some further
expansion of inventory is inevit¬
able. To achieve the expansion of
the civilian economy
uation
a
normal
for
cur sit¬
will need
expansion of inventory
industries, just as we
that
will require, we
some
will need
a
normal contraction of
Volume 176
Number 5164
.
.
.
The Commercial and Financial Chronicle
(1627)
inventory
in
the
of
case
some
others.
But
need
no
at all
for
speculation in inventory. The commercial finance
industry, I am
will
its
urge
the
exercise
customers
greatest
the
far
loss
than
more
of
to
risk
profit
very real financial
a
los®.
.,4m<\ncan. industry has always
thrived
on
initiative, imagination,
resourcefulness and risk. In
tarn
sense,
of
we
the
a
cer-
financial
which will eliminate the rigidities
that
our
been
•
generation
There
ago.
many others if
the
ever
and
Business
It
be
of
business, but
and marketing
to
speak
about
the
production
line
often
building profits. Many of the four
the waste of overtime. This is only
one
of the many ways we have
helped to level out the peaks and
million
the
reach
opportunities
businesses
only
the
in
for
America
margins
their
of
practical
us.
ff
edent in
the test,
fident
'
to
reduce
valleys in production
Linked closely with this is wage
the
must
deal
with
And
that
now
with.it
would
greatness.
call
for
be
These
genius,
a
are
that
test
There will be
many opportunities
lor
legitimate venture in a
period when the domestic market
is
being
cultivated,
-'businesses
-be
irideeu,
to grow,
are
encouraged
to
specula¬
tive risks and to concentrate their
energies
ties.
Our
.role to
productive opportuni¬
on
industry
play in this
All
of
.match
pride
the
in
cf
the
growth
manufacturer
ccu.d
of
of
one
takes
greatest
of
truck
small
a
trailers
w
started
out
in
very
it
possible
for
believfd
him
made
to
compete
with large, well-established com¬
panies.
Our
member
justified
was
with the
felt
that
faith
supplied
and
his
him
financing he needed. His
balance
sheets now are a record
of achievement cf the kind that
is
part
of
From
story
of
business
small
a
had
pany
the
the
com-
are
such
many
nities in this land of
synthetic
its
New
of
products
dividends
For
ours.
new
and
some
pay¬
Our
the
each
characteristics,
and
versions
new
products
from
are
the
technological
promising are the
production,
merchandising
marketing
methods
which
companies, with the help of
of
able
industry,
our
to
introduce.
stands out in
my
manufacturer
of
have
One
case
mind, that of
laminated
uvtiio.
in
price
labor costs
t»
ntn
threatened
his
our
built-in
a
replaced
the
offices at 325 Aquila Court to act
out
for
under\
underwriter
as
daring, that demand the utmost in
distributor
the
conveyor
which
existing
of the
war,
beginnings
sectors of
witnessed
we
in
world
our
funds
which
of
part
facilitated
the
made it possible for a company to
make their operation more efficient and less costly.
more
strikin"
example
haps, is the revolution
struc'tion industry
bv
oy
the
me
types
You
vast
in the
percon-
brought- about
develonment
the
development of me
of
construction
newer
newei
equipment.
have
only to watch these
earth-movers
leveling and
grading
these
production
opportunities
and
distribution
an
high level of output
a
very
employing all
full.
But
stability,
be
labor-
saving devices. Like the electronic
brains, they enable man to do jobs
that were not possible before.
-
factor
the
or
and
the
new
materials-handling
equipment-' that
our
companies
chasing
Vice-President
after
panaceas.
But
the
times
call
of
Chiles,
Huey,
Schutz Co.
for
or
12 ISSUES OF THE
EXCHANGE MAGAZINE
a
Yours for
some
stability,
we
only $l
can-
of
sound
growth
Credit policy
must
watchword.
our
policy
provides
area
bly
of price
where
pay
or
talk
illustra-
apt
an
just
as
to
credit
policy
employed as a
be
avoid
recession.
depression
in
It
if
as
it
panacea
can
element in
as one
ment
is another critical
we must act
responsi¬
the price. Many people
about
could
only
Must
Labor,
Fortunately, there seems to be
more general appreciation of this
fact.
area
The much-debated
period.
readily as management, can price
its product out of the market,
ele¬
as^
one
program
of
dynamic
stabilization.
Expect Changing Prices
But
In the
history of prices, periods
of stability are very rare. In our
own history since 1820, there were
year
Exchange, brings
important, timely and authori¬
tative information about stocks and
companies listed
If you are
are
no
in
panaceas
of
great
our
,,
AT
,
r,
The staff of the
in
clear
wealth
js
nical, study of factors affecting the
were
change.
Whenever
prices
strongly
are
influenced by buyers or sellers or
consciously controlled bv govern-
ment, disparities occasionally develop between particular prices
and
sets
0f
corrected
corrected
prices
in
in
this
If
is
not
times
limes,
nrosoerous
piosperous
it
U
is corrected—often over-corrected
in
demand
sales
for
terms-
—•
reached this conclusion:
tprms
.
lties® te
the
saie§
nf
arp
demand
credit."
"The
nnlv
for
Then
main
it
instalment
went
factor
on.
underlying
the
prevalent
type,
in
even
dynamic
a
boom. In any period of active
competition, American prices re-
to
cede.
correct
Often
this
we
because
are
price
unaware
tags
of
escape
zoom
sumer
A
business
the
upon,
day.
A CLERGYMAN LOOKS AT CAPITALISM
WITH
LONGEST
DIVIDEND
RECORDS
LISTED COMPANIES WITH NO DEBT
WHAT HAPPENS TO STOCKS WHEN THEY
SPLIT?
PAR VALUE
vs.
MARKET VALUE
The top executives of
our
porations give readers of
the inside
leading
cor¬
the exchange
story of their problems and
operations.
Recent EXCHANGE authors
Crawford H.
pro-
of
credit
con-
Greenewalt, President, Du Pont
Harry A. Bullis, Chairman, General Mills
Maxey Jarman, Chairman, General Shoe Corp.
Paul W. Johnston,
President, Erie Railroad
Leon Lowenstein,
Chairman, M. Lowenstein
H. E.
cannot
& Sons
Humphreys Jr.,
President & Chairman, U. S. Rubber
situation.
realistic
f'hange. A better product is of- relied
fered
stabilization
upward, control
or
a
in every
SOVIET "PROPA-NOMICS"—
THE SCIENCE OF ECONOMIC LYING
personal income is allowed
gram,
language
Recent EXCHANGE articles
desire to
consumer
credit."
by failure of other elements
in
non-technical
income, which, when
levels, reduces
use
in mind.
limited
then,. wi°uld "do
lJ, ;° it rises to high levels, brings a
look at the Prices with which they high level of instalment sales
are concerned to determine if any credit, and when it reaches low
with respect to other
.
IS THERE FOOLPROOF INVESTING?
risers,
too high
..
the
.
of the vital issues of the
ai£ ofdetermination
only 1 m ted
in
the
such credit is
.
Experts in other fields talk about
the facts
past to co"*ro! th? fl°w of C0".T
fumer Tc/edlt ,Joggling credit
of
? time when price corrections are
m. order. Management and its ad-
examined
about the frequent attempts in the
T+
11
.
magazine discuss
of investment data
52 STOCKS
study
importance
rpppceinn
Thus in every boom there comes
instalment
consumer
credit.
This
owner
one
some
r
stable. The characteristic of prices
prices
share
is written with you
exchange
agencies.> the National Bureau of
EconomJc Research, published ^a
very interesting, if highly tech¬
relatively brief
consumer
a
of if you want to become
research
fairly
two
when
the Big Board.
policy. During the past
one
periods
only
on
already
issue.
there
economic
monthly magazine of
exchange,
you
counter-
a
program,
a
the
the New York Stock
serve
credit
policy
however,
as
can
one
be
ele-
You
can
get the
exchange
next
12
for just $1.00.
issues of the
You get
120
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im-
comprehensive program.
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needed
and
fied by the needs of the
economy
f°r
the
price.
same
Quality of the materials
Or the associated
is
services
creased.
The
are
in-
r
past
ness.
it
It
does
sumer
way
150 years? Yes,
course
of
strengthens
not
is
weaken
a
our
it.
complex
over
it is the
American
and
busi-
economy,
The con-
economic
a
and
divert
where
Hasn't the American standard of
the
ment in
it
in
it
the amounts justifrom
would
detrimental
to
the
prices has called attention
production costs and spurred
sure
to
on
the
nation's
foots in the past. But
is ever forward. We do
our
eco-
has its
vision
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Name
II
i
Address.
I
I
City.
I
Zone.
at
we
effects
nohiic requirements,
Our industry is one that
He
ment
places
produce
Most promising of all is the
opPersonality- But his income is them,
portunity to improve the quality much too high to focus his inter-Back more than a century ago
of products, an
opportunity that ,est on the price tag alone and in 1835, Richard Cobden, the gre:.r
^should lie within the reach of distract it from the
goods which economic statesman
of
England
most t's progressive
managements, "dangles" from the tag. .* '
•
''
when she was on the threshold of
iThe, new labor-saving equipments The moderate
consumer
pres- her
greatest period, visited this
*•
securities. Mr. Huey was formerly
government.
high-sounding name for a
—
as
by a general rise in
transition
the
dynamic
a
which permits sound
expansion. Stability in
midst
be
our resources to
must
one
gradual
the
it
stabil-
economy
normal
mere
in
—
"improvement"
Without wage
can
ized at
living been raised this
not
go
public
p. ices.
in
icy. We need
complex of hills to appreciate what changes invention
has wrought in the face of
the
are
and
to
in
municipal
and
onIy be realized if enterprise is not hope to have the level of busiFom,°ted. b.y £ound economic P01' ness lnvestment required m the
a
They
drive
wage
an
"productivity"
other
grab
all
land.
>
of
name
mar¬
is
example
A
.The full employment policy can
readily be defeated by an ir-
flow
goods to and from these
of
took
Here, then, is an
where
our
financing
labor
easy
industrial
,
as
the
Pricos and to the needs of an exPandln& market.
In most lines, a buyer's market
hour.
is
spreading the full employment
policy further and further
throughout our economy,
market,
Now he gets an improved product
at a lower cost. The process takes
ten
minutes
where
it
formerly
one
It
participating
dealer
great advances in personal
income still are p o s si b 1 e by
of
recovery
provided
itiausiry
ovens.
five
have
employ-
and
and
Very
particularly in Latin America. Our,■. responsible
a
structure,
he
purchased,
assistance, a single oven
with
with
the end
steel
products, who formerly employed
"five lum.A.auufi ovens. When the
laminating
rise
expand
foreign markets. During the
past year, for the first time since
ad-
more
members
been
be
may
to
our
ex^
vance.
Even
we
way
-
that prices will never come down
products,
special
established
.
same
opportu¬
ample, laboratory research is
ing off for some companies.
industry
is
familiar
with
with
the
These
too high. There are others who say,
Bright Spots in Situation
newer
hence
years
in
developed into one of. tion. There are some who say that
important in his field. the consumer feels that prices are
more
There
Some
able
America.
his
decades
steadier
advances, I think,
outweigh the rises in wage rates,
manua
waTcontracts ^eVeTel'ol!!ant
■capacity which he
industry, is all to the
our
good.
But
in
recent
from
Huey
n
that
times
cry
A.
,
They
must
not
only
be
safeguarded. They must be extended.
^
kets.
little country town. This
a
-facturer
cur
in
par£ by
process.
suppose,
story
who
prime
a
income
resulted
our
merit.
^
some
I
us,
the
members
has
of
distributors. This v.Ayuiwlull of the
expansion
domestic market, often helped in
u
they must
avoid
of
corners
zeal
Company
Neb. —Lee
*bas iormed L- A. Huey Co. with
dustry,
far
con-
our
of
dispersed
the
am
Huey Forms
OMAHA,
our
the
industry, I
our
Own
dangerous of all, prosperity,
was
right, I think, in
setting out that the way we dealt
ever, is to see that
f.T^'iAS„
justifies the effort.
by
prec-
Cobden
responsibility from leaders in in- utility,
into
h*
our history. When put to
period
potential1'markeir^Prosperity "is poUc^GreaTrdvanceVinVersonal
economy
will
...
will not be found wanting
L A.
We have
wars.
distresses.
community are appraisers oi such
app—
"
qualities. Our responsibility, howrespo
eild resu^
.
15
test."
We have had the
we
that
urogram*'
.
e"ectlve m a period without
dis-
wars,
r
most
on
equal
the
endured
mer-
offers
of
are
sure
to bring to
country," he said. "These are
dustry, by financing out-of-season
production, has helped the men
Production gives us the dramatic
episodes
convenient
ordeal
durati0n
your
costs, but we must not let
them become fixed ideas. Our in-
dispersed.
are
is
fixed
clouds
war
0£
become
never
complacent about production costs,
of
will
must
the
tresses and prosperity-^-the most
dangerous of all—which centuries
Expansion.
of
industries
new
'
.
But
warning for
"Wait
Watch Production and Credit
our
automobiles
as
the
were
with
industries
new
our,
"prodigious advances."
he had a word of
bring about recessions.
'
degree,
a
nurtured
the
day just
radio
a
which, to
—
chandising
.
progressive management to action
im-
.
speculative
a
risk
to
prudent
enabled
manufacture
and the electronics
plastics
funds—are
judged on the merits of
its peculiar situation.
is
The
industries
have
be
finance
to
to
products.
to
considering abnormal expansion
inventory. Each particular case
It
proved
in
caution
of
must
helped
management
have
we
sure,
have
.State.
1
.J
16
The Commercial and Financial Chronicle
(1628)
The
two
sale
of
sales
early this
participated in the
the
American
Committee
Institute
of
of
the
The
Electrical
which selected
task
Ebasco
vices
eiv
c
e
n
e
n
to
Were
for
forts,
the
ol' its increase in
it
C.
Dr.
B.
As
market
this
in
areas
country still might lack adequate
supply. And, consequently,
theme for discussion today—
my
might have held but
interest for those of von
slight
—
substantial
journeyed to New York
those
1952,
week and
a
in television
its faith
of
builder.
this
as
Time
than
than
owners
three
million
three
or
—
areas.
families
in
out
set-
of
every
New
the
utes
to 45
from
minutes
grew
the
on
to
the
years
the
on
receivers
homes
within
of
more
vision
in
A
m
service
2,000
50
erican
of
range
some
exceed
may
of
verge
entire Nation. Only a few
hence, the number of tele¬
vision
one
York
million.
To
tele¬
pioneers and planners, this
mean
reali¬
zation of long-cherished hopes and
dreams; to utility men, it means
important electrical appliance
The dollar value of television to
the power
set
industry increases with
set owner. Although one
new
only
uses
amount
of
number
now
major
a
small
electricity,
in
of
the great
brings about
use
increase
load
power
relatively
a
in
the
over-all
each
community.
Present estimates place the ac ded
to your
revenue
available
channel
in
the
Frequencies)
York's
daily, and the
show attracted 14 sponsors.
The television station
than
three
itself, less
after
years
opening,
broadcasting 5.865 air minutes
was
week—with
1,136
assisting
pany
mated
this
in
gain
a
250,000 kwh. for
station
VHF
is
in
(Very High
by New
use
licensed
seven
TV
broad¬
industry, directly
serve as
key
outlets of networks
spanning the
country from coast to coast. Tele¬
casts
originating
mission
nearly 300 in
Our
local
been
a
trans¬
total
average week.
of
others in
many
has
an
for
networks
utility company, set¬
pattern
a
here
the
over
operations
TV
for
communities,
steadfast believer
not
ened
organization.
I am
story will be repeated
to
enlight¬
an
utility
this
sure
times in the next few
many
years
This nation-wide figure is based
conservative
average
of
local rate schedules from coast-tocoast
and
average
used
power
TV
set.
It
by
the
represents
an
attractive percentage as compared
to the present annual
going rate
of $3
itself—including sales of
sets, tubes, parts, transmitters and
associated studio
Moreover,
growing
tne
power load does not take into
use
of
TV
con¬
electricity
by families remaining at home to
enjoy television; nor does it en¬
compass
revenue
to
utility
com¬
panies from TV station operations.
The
former
load
increase, as you
doubtless will agree, is
extremely
difficult to ascertain
with
tude; the latter, however,
determined
with
exacti¬
can
reasonable
be
ac¬
'The power consumed by the five
television
stations
atop
New
York's Empire State
Building, for
example, is 250 KWH. Lighting
*
An
address
by Dr. Jolliffe before a
utility
executives,
spon¬
conference
of
sored
by
Ebasco
York
City,
Oct.
6,
S^vices,
1952.
Inc.,
New
earlier
days and
when
years
the
own
use
two
decades—were
that
only
those
so
enormous
imbued
with
an
intense pioneering spirit dared
to
medium.
popular
times, and the other 17 times
your
among
each
who
you
television's
community
are
arrival
in
find helpful
may
guidance in the detailed record of
achievement of a prominent MidWestern
its
utility
company, which
all-out for TV the moment
went
city's first station opened
for
business.
more
pany's
an
entire
the
opportunity
electricity,
chain
president
to
assist
this
of
to
com¬
command,
down, joined
in
making
the
community
television
conscious.
They believed that a pioneering
job of promotion
on
had
television, just as
performed
for
to
be
done
it had been
radios,
ranges,
water heaters and appliances.
But in this case, it was more
than the TV set that needed to be
popularized.
Broadcasting
had to be sustained
before
an
The
itself
by advertising
audience could be prop¬
normal
to
do
would
have been to give the local station
an
order for
a
program.
But the
thinking of this utility group went
beyond this. They saw the neces¬
sity for liaison men and women
who
individuals,
many
could
work
with
the
organized TV station and
only
but
ulti¬
great
a
basis
of the
capital stock
profit
for
nine
increase
shares of
on
outstanding, the
now
the
months
equal to $2.72
year was
The
Computed
554,679 shares of
the
in
last
share.
per
of
number
Vanadium Corp. capital
These steels
increased
outstanding during the past
more has resulted largely
from
the
conversion
pany's 3 V2 %
1,
1965.
of
the
com¬
debentures due Oct.
All
the
of
debentures
shortages.
on
They
contain
titanium,
iron,
Sept. 3, 1952.
aluminum,
I
boron, zirconium and manganese.
me
vanadium,
Vanadium
efitted, of
erated
Corporation has ben¬
from the accel¬
course,
of the ferro-alloys
growth
and
project
into
the
strike,
industry and from the company's
will
expansion
program
would wish
the
crystal
ball
operating results
Despite the steel
our
future.
of
1952
better than those of
sales
1951.
our
for
all
The
sales
you
into
look
to
'
that
presume
Our
1951
245%
were
1941.
During
steel
completed
of
of
that
production
to
$36,000,000 in
sales
our
interval,
tonnage
in
total
rose
steels
138%
to
rose
showing will be the best in
history.- Despite
increased
costs, our earnings for 1952 should
our
approximate
Continued
of
similar production in 1941.
ing
Earnings Increase
sales
the
in
1951
and
$17,500,000
of 1949.
of $2,005,585,
profit
share
ital
on
in
the
double
Last year's
or $3.62 per
com¬
present capitalization. Our in¬
in the quarterly dividend
payment in September, last year,
50
to
60
cents
per
share,r
to stock¬
payments
that
tinue
a
at
the
in
high
a
along with
rate,
large demand for steel.
dium
benefits from
additional
the year.
All in all, our 1953 out¬
sales
and
earnings is
for
look
new
favorable.
far
So
the
concerns
as
war
company's
sales
for
the
nine
months ended Sept. 30, 1952, were
about
the
$26,700,000, which
sales
$26,281,843
the
exceeds
volume
for
corresponding period of 1951.
Net income after all charges and
taxes for the first nine months this
year
or
growth,
its
continue
to
pected
have
in
longer
outlook, I believe that the
ferro-alloy industry can be ex¬
term
against
paid
con¬
of
the years ahead,
share
the
facilities during
tribution
over
per
Vana¬
should receive
Corporation
holders in 1951 to $2.10 per share,
$1.20
additional
plants. I be¬
year 1953, the
lieve
crease
brought total
into
new
demand for ferro-alloys will con¬
pared with earnings of $2,234,121,
$4.03 per share in 1950, based
from
in
22%
or
on
coming
are
high
outstanding,
now
operat¬
capacity, and this quarter
at
production
the 554,679 shares of cap¬
stock
Prospect
are
were
than
more
in
record
previous
volume of $29,000,000 achieved
1950
Growth
older facilities
Our
we
Sales and
Our
exceed last year's.
or
to
127% of the 1941 production while
alloy
be
whether
we
peace.
Herbert B. Schwabe With
Coburn & Middiebrook
(Special
to
The
Chronicle)
Financial
SPRINGFIELD, Mass.—Herbert
B. Schwabe has become associated
with
&
Coburn
corp
Middiebrook, In-
orated,
Street.
Mr.
292
conducted
his
business
Hartford
in
Worthington
in
Schwabe
the
past
investment
own
and
has
re¬
topped the $1,511,017 earned
in the
corresponding period
ago,
even
a year
absorbing
after
in
cently been
nam
&
connected
with Put¬
Co.
this
to back
faith with money and facilities.
The largest role
of this
industry
in the advance
was
played by in¬
dustrial research and development
laboratories, much *of the «work
being done by the laboratories of
the
Radio
ica.
In
Corporation
taking credit for the in¬
in general and RCA in
particular, I do not minimize the
accomplishments
of
many > pio¬
neers
in the field
fundamental
of
science and research.
It is
the
on
foundation of their work that the
development rests.
want
an
to
this
use
illustration
I do, however,
development
of
how
research laboratories
as
industrial
play
im¬
an
portant part in our economic and
industrial life.
SECURITY TRADERS
new
beginning of the 20th
the
work
scientific
development
of
industries
and
of
applying
knowledge to the
instruments
new
was
a
Inventions
hit-or-miss
were
largely
the result of the work of individ¬
uals,
no
many
«direct
science.
As
was
largely
own
efforts
of whom had little
contact
with
or
pure
rule, the inventor
dependent upon his
a
to
focus
attention
on
Team
(Capt.), Demaye, Whiting, O'Connor, Rappa, Seijas
Murphy (Capt.), Manson, D. Montanye, O'Mara, Pollack,
Gavin
Hunter
on
44
page
31
25
(Capt.), Klein,
Weissman, Sullivan, Murphy,
Sea-
right
24
(Capt.), Smith, Valentine, Meyer, Farrell, Brown
Meyer (Capt.), Kaiser, Swenson, Frank el, Wechsler, Barker
Serlen (Capt.), Gersten, Krumholz, Rogers, Gold, Young—
Mewing (Capt.), Bradley, Weseman, Hunt, Gronick, Huff__
Burian
Bowl¬
Points
—
Donadio
24
22
21^
13
(Capt.), G. Montanye, Voccoli, Siegel, Reid, McGov17
ern
Lytle (Capt.), Growney, Craig, Fredericks, Bies, Lyons—
(Capt.), Greenberg, Tisch, Werkmeister, Leinhard,
16
Leone
Lopato
15
Krisam (Capt.),
Bean
Ghegan, Jacobs, Gannon, Cohen, Strauss—
14
(Capt.), Frankel, Casper, Nieman, Bass, Krassowich_
12
200
Point
Arthur
Continued
ASSOCIATION OF NEW YORK
Security Traders Association of New York (STANY)
ing League standing as of Oct. 23, 1952 are as follows:
Goodman
Until the
Century
Notes
NSTA
Amer¬
of
newly
in turn
facilities.
new
the
quantities in recent years of alloy
these
the willing¬
of management
process.
thing
not
faith in research and
dustry
Recognizing
sell
Behind the
are
ciples and the work and effort of
ness
Those
success
has
the air five
on
challenges.
complexities
pro¬
It
commercial
grams; one of them
television's
of research, involving appli¬
cation
of
many
scientific prin¬
institutional
an
merchandising
two
its
steels.
produced in
hope of linking sight with sound 1950.
broadcasting flickered but dimly
All things considered, the show¬
in the laboratory. Yet, less than a
ing for 1952 to date has been quite
generation ago, this was true.
satisfactory. Notwithstanding the
Research requirements alone—
longest, strike-imposed stoppage
in the beginning and for
nearly of steel
production on record, the
years
as
in
erly developed.
curacy.
country's
and industries,
be difficult to recall those
may
and
television
forces
sideration added
this
among
eminent arts
mate
from
equipment.
place
a
it
and
billion for the television in¬
dustry
to
most
of
awaiting
year.
Now that television has ascended
loads,
but also
normal
of
excess
which remained outstanding were
called on Aug. 4, for redemption
above
example of what
mean
been
area.
can
receiver to boost residential
power
million
a
Ferro-sili-
of
deoxodizing agent
a
boron-treated
1.000 tele¬
everv
This is but one
pursue
week.
upon
as
etc.
generally than other alloys,
more
of
television
only in the value of the television
traceable to power consumption
by
television home receivers, at $200
a
types,
is used
con
esti¬
consumption
vision sets added to the
television
casters, four of which
ting
sales and additional power load.
each
Every
or
stations
TV
expanded service will
various
of
in
depreciation and start-up expense
date.
min¬
15
As it stands, I believe we can
market. The national total of set- as more and more new television
join unanimously in a salute to tho owners now
stations begin operations.
exceeds
19,000,000,
progress evident
on
many
sides and 110 stations are on the air in
Earlier Promise and Challenge
of our kindred
industries. Tele¬ 65 cities.
is
re¬
resistance
shock; such as tool steels, heavy
duty forgings and castings, springs
of
success
program
increased
was
revenue
began, New York had less
7,500 sets. Today, there are
surge
air
medium
The
home-making
ef¬
an
as
merchandising
load
its
long for the util¬
find justification
to
company
minutes, or
19.4%, sponsored
by the
elec¬
trical industry.
The utility com¬
is still brighter. Six years
when the post-war television
four
vision
steels
to
have
"grew up" with it.
It didn't take
a
ahead
ago,
more
who have
from
during
from television may
appear, the
outlook for the months and years
power
television
revenues
Brighter Look Ahead
Jolliffe
of
many
complexity
electrical
the 12 months ended June 30,
to home television
usage.
ef¬
great
a
reservations hinging
some
the
his
farsighted
$2,500,000
of the New
market, Consoli¬
dated Edison attributes $12 million
rural electrifi-
tion.
United
less than 25 hours
station operated
by leaps and bounds.
York
wide spread
not
the
approaches
With
g
led
facture of high grade
quiring toughness and
manu¬
year or
and
in
year.
achievements
which
used in the
are
charges approximately $460,000 of
amortization
stock
for
year
a
total of electrical
transmitters
Slates
on
i
limited extent, vanadium
a
Hollywood and other TV except ferro-manganese, for the
manufacture of steel and iron. The
techniques of pro¬
Grainal (boron) alloys are mul¬
ducing shows. Returning, she went
on
the air when
the one
local tiple element ferro-alloys used in
fective
pio-
r
Ferro-vanadium
City,
ity
the
his
to
economics
home
consumption by television studios
re-
e
the utility's
specialist.
She
given
was
and
Ser¬
Lamme Medal
for
vicinity of $120,000
The estimated
of
to
by means of television to
uses of electricity.
This
spent several weeks in New York
power.
E.
Silver
at¬
beneficial
and other studio requirements add
the
Arthur
was
public'/
the
directing
and, to
steel.
pentoxide,
responsibility
second
of
tention
substantially to that rate. Thus, at
New York prices, these live trans¬
mitting stations alone expend in
Engineers,
Mr.
representatives work¬
stainless
cities learning
pleasure
have
was
Ferro-Alloy Industry
servicing
assigned to a sea¬
counselor, and the
that
longer in dream stage. Finds television beneficial to industry,
science, education, security, and other nonbroadcast endeavors.
of
9
page
in
aid
to
ing under his direction.
lems facing successful color television. Comments on other
electronic advances, and holds "super-brains machines" are no
to
and
adequate
dealer sales
of
revenues
companies, RCA executive reviews progress of television
industry during the experimental period. Says "we are on our
way to a truly nationwide television service," and reveals prob¬
year
from
Steel Hoimones and the
was
facilities
power
work
Continued
First
parts.
receivers
soned
my
to
Thursday, October 30, 1952
.
au¬
establishing
Corporation of America
pointing out value of television in adding to
was
and
divided
the work
with the industry to promote the
responsibility
into
By DR. CHARLES B. JOLLIFFE*
It
industry
time
.
diences.
Vice-President and Technical Director,
In
television
increase
Service to Utility Industry
Radio
electrical
the
assist
Television's Increasing
.
•>
,
Club
5
Burian
Point
Joe
■&
Club
Donadio
Richy Goodman
Volume 176
Number 5164
.
.
.
The Commercial and Financial Chronicle
(1629)
Investment Bankers Ass'n of America
of
as
of
uses
Electronic
electronics, in field of business
developments
flation.
In
fact,
feel
There is also electronic equipment
for the
inspection of
they
may
cause
tions
that
keep,
at
own
two
Lewis
Miller
labor
told
Co.
a large insurance com¬
displace 1,000 women
will
electronic
new
equipment.
"transistor,"
tiny
full-time
device
crystal
at the
using
which
ent tubes.
replace
watch
The
tute
pres¬
Newer
mary
believe
of
purpose
velop electronic
Roger W. Babson
tronic
that
food
ton
is
to
de¬
strain
measuring equip¬
ment, and the complex analytical
instruments
Smith
chemical
which
the
ties business and the offices he has held in various trade groups,
Boles
is
He served
widely known throughout the financial community.
as
and
previously, 1945-47,
one
of the
18
1951,
was
regional divisions of the IBA.
committees
of
both
the
He has
served
required
through the
Valley Group and the
has headed the important
addition
The
air
military forces have
found them invaluable. Only the
bus companies lag in the proces¬
sion of progress.
Now Saving Time and Labor
electronic
matter
of
days,
scores
several
which
of
what
people
weeks.
medicine
000
inventory
con¬
system will accomplish, in
takes
In
a
a
ordinarily
period of
the
field
of
the electron microscope,
magnifies
Push
No.
more
than
350,-
the
No.
Electronic
tion, located
Avenue, San
at
2452
of
Van
Ness
Francisco, Calif., I
recently sent them a small sam¬
ple of my blood to be electron¬
ically studied. It seems fantastic,
but
their
diagnosis corresponds
closely with the "check up"
very
which
and
the
able
physician
my
after the
gave
me
of various machines
use
consuming
time.
I
recommend
of
surely
such
consider¬
would
electronic
not
tests
diameters, is bringing to light as a substitute for present medical
new
information regarding diagnoses; but they may become
much
fluorescent
picture
tubes.
heading
The
including those of heat
pose
and special
purposes
products for
turing
use
Its
processes.
not include
products
ordinary containers
Corning
search
years, which
development
has led it into the
of types of
glass
products not closely related to its
own
general, lines. This resulted
in
the
Plate
Co.
formation with
Co.,
and
The
Pittsburgh
Owens-Illinoia
Dow
Glass
Chemical
affairs
the
capital stocks of Pittsburgh
Corning and
Dow
Corning.
It
holds
as
shares,
ing
or
investment
an
1,050,000
33.3% of the outstand¬
stock
of
Owens-Corning
Fiberglas.
Employees
philanthropy absorb considerable of Mr.
Boles' time and energy. For example, he is President and a mem¬
ber of the Board of Trustees of the Gladden Community House and
Other work and operations
Hospital, both of Columbus.
head of the Group Chairmen's Committee,
Ewing Boles
Totals
.
Sept. 24, 1951
Sept. 22, 1952
Sept. 24, 1951
.
.
$11,992,763
$ 6,898,922
$49,028,303
$25,937,036
.
.
10,239,364
8,437,402
35,113,664
21,225,444
.
1,431,108
1,570,858
3,465,624
3,536,534
2,159,545
J,749,264
7,667,911
5,745,477
$25,822,780
$18,656,446
$95^275,502
$56,444,49[
Hydraulic turbines and accessories
Chairman of the Finance Committee of the White
Nine Fiscal Months Ended
Sept. 22, 1952
Ship conversions and repairs
and
.
.......
"As
has significantly served the IBA in integrating Group and national
Association
his
policies and procedures," President Johnson said, "and
enthusiastic
leadership
has
stimulated
greater
activity
and
At
Estimated balance of
,h.
cooperation at the Group level."
Mr. Boles has been
Sept. 22, 1952
At
Sept. 24, 1951
major contracts unbilled at the close of
$299,615,713
period
$383,174,597
vitally interested in and has constructively
supported the merchandising and public relations phases of the
"
Number of employees at
Association program, according to Mr.
-I'The Company reports income from long-term shipbuilding contracts on the percentage-of-ccrrp!eticn basis; such income for
that
the
efforts of the
IBA
in these
Johnson, who pointed out*
areas
•ontinued and even expanded under the
"Ewing Boles has shown that he
can
will
a year
to
.
16,146
13,377
period will therefore
vary
from the billings
on
the contracts. Contract billings and estimated unbilled balances
are
subject
possible adjustments resulting from statutory and contractual provisions.
win cooperation and
get
of real progress for the Association."
•
incoming President.
.things done," Mr. Johnson declared, "and under his direction 1953
should be
•
•
0
any
undoubtedly be
the dose of the period
By Order of the Board of Directors
October 22,1952
Co.,
respectively, of Pittsburgh Corn¬
ing Corporation in 1937, OwensCorning Fiberglas Corp. in 1938
and Dow Corning Corp. in 1943.
Corning presently owns 50% of
Three Fiscal Months Ended
.
or
has
emphasized
re¬
development over the
and
Ohio
.
do
flat glass.
Quarterly Statement of Billings/ Estimated Unbilled
Shipbuilding contracts
pur¬
in manufac¬
Newport News Shipbuilding and Dry Dock Company
Billings during the period:
It
line of houseware
a
trade-mark, lighting
special
lenses
and
color
alytical
4,
Founda¬
and
filters, thermometer tubing, labo¬
ratory ware for research and an¬
1,
"
progress
Medical
pro¬
and
Steuben
ware,
their
Having matched the
bulbs
qualities familiarly
by the Pyrex trade-mark,
products of fine glass sold under
Physical Check Ups
-
large domestic
a
glass
out¬
known
thinking powers and
memories will quickly be stimu¬
lated
so
that
they can answer
questions like the "Quiz Kids."
the
company's
stock.
resistant
laugh;
push
room;
of
products
radio
will
room
the
of
television
and
Balance of Major Contracts and Number of
to
Company Mr. Boles is a
director of numerous business and Industrial organizations, includ¬
ing Federated Publications, Inc., White-Haines Optical Company,
Ohio Valley Baking Company, Universal Concrete Pipe Company,
and Tiffin Art Metal Company.
Cross
and
in
of electronic
use
mechanisms and devices.
trol
in the
Hough¬
of diversi¬
adjust investment
the various ac¬
common
manufactures
something
small
a
sound
assures
lines and the
An
of
push buttons.
all those
'
Inc., 1949-52.
Trustee and
with
size
to
incandescent
the
have
may
the
being
lamps, radio and electronic tubes
the
and
ready made very important sav¬
ings in time, labor, and equip¬
ment
about
is
tubing
by others in the manufacture
used
of
while eating?
or
It
purposes
within
Corning is
necessary
Homes
sale.
number of individual
The
4%
ducer
the
not
This reduces
color
panies and the railroads have al¬
field include: President, Investment Dealers of Ohio,
Inc., 1945, and Governor, National Association of Securities Deal¬
a
than
push No. 2, and they will all cry ;
push No. 3, and they will all en¬
joy beautiful music, but without a
to make
high-quality color reproduction.
telephone and telegraph com¬
investment
Civic
and
Could
com¬
part of the
no
on
Ohio
Group Chairmen's Committee of the national organization. Posi¬
tions of responsibility held in other trade organizations in the
In
(2)
consti¬
was elected a Vice-President in 1951,
Chairman of the Ohio Valley Group,
Association and for the past three years
ers,
fuel.
not
was
Governor of the Investment Bankers Association
a
of America from 1948 to
numerous
reduces
time
Securities
Through his active participation in the affairs of the securi¬
Mr.
au¬
equipment
by at least 50%
The
a
Co. Inc., Chicago. Three years later he joined
Company as*sales manager and within
six years was made President, a post he held until 1942 when the
name of the BancOhio Securities Company was changed
to The
Ohio Company.
Mr. Boles has served The Ohio Company from
inception as President, and Director and continues in that dual
capacity. The Ohio Company is one of the leading investment
banking houses in the Middle West and is a member of the Mid¬
west Stock Exchange.
the BancOhio
developed
have
electronic
plates for printing^
costs,
saves
time,
(
of Halsey, Stuart &
heating systems
of
Glass
$67.50
trust accounts of the
standing
might eliminate
fore
Engineers
appointed Central Ohio representative
present
use
offered
at
offering is a small
part of their holdings and is less
food consumption be
radically cut by treating, electron¬
ically, the food we eat either be¬
tomatic
Nominations, made by the Board of Governors, are considered
tantamount to election in the IBA, which will act on the ticket
at its annual convention scheduled for Nov. 20-Dec. 5 at the Hollyr.
was
accom¬
Electronic perceiv¬
mechanisms will be
widely used to see and act far be¬
yond man's physical powers.
^
In 1926 Mr. Boles
are
and
This
concluding
Cl Courts, Courts & Co., Atlanta.
Lewis Miller, The First National Bank of Chicago, Chicago.
Ralph E. Phillips, Dean Witter & Co., Los Angeles.
Walter A. Schmidt, Schmidt, Poole & Co., Philadelphia.
Norman Smith, Merrill Lynch, Pierce, Fenner & Beane, New York.
Malon
than
oil
bodies?
ing, memorizing, calculating, and
Company, Milwaukee, President of the Association. Named with
Mr. Boles are the following nominees for Vice-President:
Mr. Boles has been, in the securities business for more
the
industries
plished feats.
quarter of a century. As an undergraduate he attended the Uni¬
versity of Illinois and Centre* College, Danville, Ky., and upon
graduation from Centre in 1916 entered the College of Law, Uni¬
versity of Kentucky. During World War I he served as Ensign in
the United States Navy. He is a past national President of Phi
Kappa Tau fraternity.
in
used
our
does
the
a
family for
counts.
are
scopes,
of
holdings
in the body
waves
28)
The
fication and
pri¬
a
equip¬
.which
directly
stimulate
our
help¬
nerves, brains, and blood; while
ing business and industry to op¬ indirectly stimulating our hearts,
erate faster, more accurately, and
stomachs,
and
other
organs.
at
lower
cost.
Electrical
com¬
Hence, these questions arise: (1)
puters,
recording
oscillographs, Instead of heating the air in our
mass
spectrometers, electron dif¬ homes and offices in winter, why
fraction cameras, electron micro¬
not, electronically, merely heat
ment
Hotel, Hollywood, Fla.
same
Corning
stock
will receive
made from
Great Changes Possible
Biologists
forms of elec¬
wood Beach
the
financing and the
proceeds
and
revolutionary
of
offering
new
pany
for
discoveries.
Ralph E. Phillips
at
offering
quickly oversubscribed.
a
tronic machines.
Washington
the
share.
per
This should greatly re¬
cost and size of elec¬
duce
to
P.
grandchildren
(Oct.
shares
common
germanium
a
will
yesterday
104,104
Works
All the above will be
greatly has¬
tened by the new
my
in
Norman
ad¬
im¬
An underwriting group headed
jointly by Harriman Ripley &
Co., Inc. and Lazard Freres &
and
savers.
am
with
I
big
prove
Patent Office
Walter A. Schmidt
most
Stock Oversubscribed
medicines,
beverages,
of food and
as
will
pany
expense,
experts
which
I
inven¬
new
well
as
time
importance of
Malon C. Courts
spiritually
is
Corning Glass Common
viruses, bacteria, cells and tissues.
so strong¬
about the
ly
and of medicine.
may
the value of the dollar to increase
for awhile.
I
Boles
develop
our
rate.
evils of in¬
largely counteract the
T.
It
that
Suggests possible
new
Ewing
ahead.
are
portant
Mr. Babson describes what electronic
developments are doing
saving time and labor, and forecasts that progress along
this line may counteract evils of inflation.
T. Johnson, The Milwaukee
have
Surely tremendous material
vances
in
the next President of the Investment Bankers Association
Amei^ca, it is announced by Joseph
valuable assistance and
definite curative powers.
By ROGER W. BABSON
CHICAGO, 111.—Ewing T. Boles, President, The Ohio Com¬
pany, investment banking house of Columbus, O., has been nomi¬
nated
of
New Inventions
Receives Nominees lor Year 1953
17
"
•
R. I. FLETCHER, Vice President and Comptroller
18
The Commercial and Financial Chronicle
(1630)
Bank and Insurance Stocks
Morse
COMPARISON
AND
17 N.Y.
ANALYSIS
City
Bank Stocks
September 30, 1952
Bulletin
on
Request
Laird, Bissell & Meeds
Members New York Stock
Exchange
Members New York Curb Exchange
12«
BROADWAY, NEW YORK 5, N. Y.
Telephone: BArclay 9-3500
Bell Teletype—NY 1-1248-49
(I*. A. Glbbs, Manager Trading Dept.)
Specialists in Bank Stocks
G.
Dial
.
.
.
Thursday, October 30, 1952
Volume 176
Number 5164
.
.
The Commercial and Financial
Chronicle
.
19
(1631)
opens about Dec. 15, Mr. Hall will
be Manager of that Branch.
#
The
*
*
Berkeley Heights, N. J.*
new
office of the Citizens Trust Co. of
Summit,
N.
J.,
will
Nov.
1st.
The
fers to the residents of the Passaic
Valley
area
a
conveniently
lo¬
cated
to
rights
Nov.
be
formally
Berkeley
Heights office at 372 Springfield
Avenue, near Snyder Avenue, of¬
opened
right
subscribe
will
Hood, Chairman; Harry W. Edgar,
President;
Robert
O.
Peterson,
Vice-President,
and
John
Stone, Jr., Assistant
K.
P.
the Presi¬
to
dent.
❖
*
*
Announcement to the effect that
the proposed merger of the Peo¬
ples First National Bank & Trust
Company and the Colonial Trust
Company, both of Pittsburgh, Pa.
called
was
off
Oct.
on
21,
was
contained in the Pittsburgh "Post
Gazette" of Oct. 22, from which
also
we
quote:
"Because
complica¬
tions involved in the merger of a
and
National
bank,
the
State
new
for each
Anheuser-Busch Slock
Subscription
at
2
Our
p.m.
21."
The
underwriting
Reporter
is
group
5
headed by Scharff
& Jones, Inc.,
White, Hattier & Sanford.
and
*
With
*
closing of the books
21, The First National
Bank in Dallas, Texas
completed
a
capital financing plan which
the bank's
the
Another $1,-
was
the
gave
bank
growth
the
which
interests
tomers and
holders."
of
ultimately
the
we
ties
four
shares
of
necessary to establish
to be the
seems
institutions
a
solid base.
With
a
some¬
few spots,
important factor in the bank list.
Out-of-town
the leaders in these operations.
are
Tax
switching seems to be gaining in momentum, with these
tending to make the 2V2S due 1962/67 pretty much the lead¬
ing issue in the eligible list from the replacement standpoint.- The
tap bonds, it is believed, should be more responsive to the general
ef¬
market betterment because the demand should be
these obligations.
fanning out for
on
Eligibles in Demand
the
The
new
issue for every \ 15 shares of the
old stock held were almost all ex¬
ercised and the issue heavily over¬
merger of the two banks," Robert
C. Downie, President of the Peo¬
ples First Bank, and C. A. Mc-
subscribed, the bank reported. E.
O. Cartwright, resident
partner of
at
present, although there has
pickup in demand for the ineligible obligations. The
broadening of the interest in the bank securities is bringing about
a better tone in the intermediate and
longer term issues. Deposit
institutions are showing more of a
tendency to lengthen maturities,
Merrill
and
A
directors
of
representing
the
two
the
banks
has
been
seeking to develop a con¬
solidation plan since last Decem¬
ber.
The Peoples First and the
Colonial
the second and third
are
largest banks in Pittsburgh.
Had
they been able to merge the com¬
bined banks would have had as¬
sets in
of $600
excess
i't
The
ninger
*
,
election
as
*
of
Herman
Hen-
Vice-President of
a
In¬
ternational Bank, Washington, D.
C., a non-G overnment bank
founded
32
years
announced
by
President.
by
T.
The
private
the
has
ago,
Reed
bank,
investors
been
Vreeiand,
organized
in
1920,
is
engaged principally in financing
American foreign* trade and co¬
been
First
as
Southwest
the
un¬
derwriting. In connection with the
new
capitalization, the par value
capital stock was re¬
duced from
$16
obligations.
per
maturities by the deposit banks has had
the prices of these obligations
■
*
The
ff
Anglo
Bank
and
about rather
has
latter's
offices
in
Calif., as offices of the?
Anglo Bank, as of Oct. 27. In a
Bank,
of
stated
the
that
completed
were
result
of
Kern
which
Oct.
the
25,
as
as far as the commercial banks are concerned are the same
favorites led again by the 2%s due 6/15/58.
Dealers and in¬
vestors alike continue to indicate this issue is still the bellwether
of the recently rejuvenated
eligible list with a broad
of
affiliate,
Washington,
a
offices
in
assets
and
as¬
liabilities of the Kern
Oildale
and
Taft
gives
wholly-owned subsidiary with of¬ Anglo Bank four offices in Kern
at 608 f Fifth Avenue, New County. The Anglo for many
yeajs
York City. Prior to joining ' the has had two offices in Bakersfield.
bank in 1951, Mr. Henninger was Ail members of the Kern
County
executive of the
Manhattan
Bank of The
Company, Interna¬
tional Acceptance Bank, Inc. and
American
Continental
Corp.„ In
addition
the
to
New
York
City!
affiliate the bank has affiliates in
Paris, France, and Panama City,
Panama.
$
ff
Bank's staff will continue in their
present
former
been
are
Oct.
by
a
was increased, effective
14, from $100,000 to $300,000
stock dividend of $200,000.
*
*
fa
Kern
Fifteen New Orleans firms have
$20
par
value capital stock of the
Hibernia
National
Bank
in
Orleans, proceeds of which
be
added
are
to
capital and surplus,
according to Stanley H. Dodds in
his
financial
column
in
the
New
Orleans "Times-Picayune," of Oct.
17.
The
item
added
that "also
N.
H.
annual dividend of 50 cents."
account
in
the
The
"Times-Picayune"
have
Bank
members
of
.
an
Hopkins, L. H. Houchin,
Johnston, W. E. McFaddin, '
Frank Noriega and R. A.
Sperry.
H. J. Crossan, who served as Ex¬
Vice-President
the
of
Kern County Barjk, has been
ap¬
pointed Vice-President and Man¬
of
ager
Anglo's
Oildale
office.
Howard
ager
Sehlin, previously Man¬
of the Kern County Bank's
office in
Taft, has been appointed
Assistant
.Vice-President
city.
With J. A. Hogle
LOS
S. Jenings
is
now
affiliated
with
proposals
at
approved,
will
will
vote
on
the
special
meeting
Nov. 6. The stock, if the
plans are
a
be
offered
price of $40.
Shareholders of
ord
will
Nov.
that
a
This
appears
turn has been
make
to
can
the
is about to be made in the
or
6
be
offered
at
R. C.
Tax
Tax
to be the
to
the
more
add
to
activity and there
case
are
for quite some time
reports, is one of the
come
Selling Continues
exchanges continue
volume and
C.
rec¬
the
Spangler
W.
has
reasons
the
to
government
indications this will
market
continue
These switches, according
now.
fices in the Cinderella
engage
of¬
1951
pared
the
company's
shares outstand¬
cr
completed^-
company
of
year
operation
with
sales of
$179,405,026, com¬
$151,565,906 in 1950.
with
Shipments totaled 5.479.314 bar¬
rels, compared with 4,888,732 bar¬
rels the preceding year. Net earn¬
ings were $10,776,927 or $2.41 a
share, as against $13,247,712 and
$2.94 a share in 1950. Dividends
of $1.20 a
share, including 20 cents
December, were
paid in 1950 and 1951, and four
25 cent quarterly dividends have
extra declared in
been declared
In the
seven
31, 1952, the
of
come
of
so
far this
year.
months ended July
company reported net
$120,547,000 and net in¬
$7,128,000.
Anheuser-Busch, which
900
markets
through
some
wholesalers, 16 branches and
.subsidiaries, is engaged in an
two
increase
to
program
shipping capacity by 18%. It plans
to
start
construction
in
February
a
rels. A $5,000,000
expansion of its
Newark, N. J., brewery will in¬
crease
this plant's shipping
ca¬
pacity
from ,1,380,000
1,840,000
barrels
Also
under
barrels
by
to
mid-1953.
consideration
is
the.
$3,000,000 yeast plant
a
the West
Coast.
Minneapolis Assoc.
(Special
to
The
^Financial
Chronicle)
MINNEAPOLIS, Minn.
Charles
C.
Arnao,
Jr.
has
deposit institutions have been taking losses in the
some
added to the staff of Minneapolis
U. S. TREASURY
STATE
and
of
2V2S due
1962/67.
This
into
other
the
does
not
eligible
mean
issues,
though the 1962/67's have
an
that
switches
but for
edge
are
not
the moment
over
being
it
made
seems
MUNICIPAL
SECURITIES
as
the others for reinvest¬
ment purposes.
The ineligible bonds have been
bank
issue, but there does not yet
moving about in line with the
seem to be
the
same
quality
in the eligibles.
To
or
be
there have been somewhat enlarged takings of the tap bonds,
these
variety.
a
as
few
positions do not
appear
to
be of the
more
permanent
The usual buyers, private pension funds, state funds and
more
of the formerly stock minded individuals
have been
putting not too sizable amounts into the ineligible iDonds.
There
still, however, enough nongovernment commitments and obli¬
ket
is
was a
a
concerned, but with
reall^ hot subject
Building to
considerably.
in the securities business.
governments.
not
No change
factor
as
far
as
declining importance it
so
long ago
in this rate
appears
should
seems.
What
to have cooled off
be
bullish
on
AUBRET G. LAN8TON
& Co.
INCORPORATED
15 BROAD
the government mar¬
long
—
been
Associates, Inc., Rand Tower.
why the 2Y2S due 1962/-37 have
prominently into the picture. It is believed that
The prime rate is still
Va.—Rich¬
opened
of the
9/15/67-72 and putting the proceeds principally into the 2V2S due
Spangler Opens
WILLIAMSON,
ard
a
com¬
part
The offering rep¬
common
99th
by
the
no
resents about 8% of the
4.475,000
ing.
Faust.
owned
higher income
gations around to detract from the restricted Treasury issues.
"Stockholders
sale's proceeds.
is
and
will receive
pany
mother,
Busch
Treasury market.
are
Street.
added.
addition to the
be obtained in the eligible
September 1967/72's a very
attractive issue from that standpoint. All of this, to be sure, assumes
but
Hogle & Co., 507 West Sixth
a
closing in rather rapidly on
demand and leadership is con¬
yield, is the price appreciation that
market.
sure,
ANGELES, Calif. —Hugh
not
not this issue is not
quantity of investment in this group
(Special to The Financial Chronicle)
shares
Anheuser-Busch,
With
the other bank obligations as far as
cerned. The important factor at the
moment,-in
and
Manager of Anglp's office in that
J. A.
or
Anglo offices. The members
W.
$1 to $1.50 by declaring 37^ cents
December, payable Jan. 1, 1953,
and quarterly thereafter, if earn¬
ings justify, instead of a semi¬
-
A.
C.
proposed is a plan to increase the
dividend on an annual basis from
in
.
cities,
Angus D. Crites, H. J. Crossan,
H. Farnham, Raymond
Grey,
New
to
County
appointed
ecutive
agreed to underwrite the proposed
sale of 25,000 additional shares of
both
to whether
as
the
the better
as among
•
Advisory Board, headed by H. F.
Owen as Chairman, for the two
.
olis, Minn,
in
Anna
the
on
6/15/59-62, although this is debatable because
Likewise, there appears to be a fairly good demand for the
longest eligible bond, the 2V2S due 9/15/67-72, with some question
Mr. Calkins said. Directors of the
new
*
The capital of the First Minne¬
haha National Bank of Minneap¬
positions
by his
Mrs.
of
building of
few operators continue to report the June 2 Vis
liked obligations in. the bank list.'
fices
an
established
late
the 2V4S due
County Bank. The addition of the
bank's New York
the
the
trading mar¬
ket keeping this obligation at the
top of the pile. It seems as
though'the 21/2S due 1962/67 have taken over the second spot from
Anglo Bank
of the
acquired
to have
old
a
sumed the
has
appear
appeal
County
of
$15,000,000 brewery at Los
Angeles, Calif., with an annual
shipping capacity of 920,000 bar¬
According to reports, the specific issues that
arrangements
on
family,
trusts
of
Current Bank Favorites
Anglo Bank, and H. F. Owen,
President
on
a
into the market for sale.
announcement,
Allard
A.
Chairman of the Board
operating with American business
in expanding overseas operations.
Mr. Henninger is also President
International
,
Calkins,
of
director
a
expansion
the upside from time to time.
However, it is
trading market as far as most of these securities are concerned and sh^r^ enough rises in quotations is still bringing bonds
still
and!
Taft
and
other members of his
and the trustees under
company,
its beer nationwide
■
Oildale,
joint
President
ket rather thin
ac¬
quired the business of the Kern
County Bank and now operates
the
offering comprises common
already
outstanding
and
by L. Busch Faust, Vice-
readily in both directions. Sellers, it seems, are now
beginning to take a longer look at their intermediate and longer
term holdings, before
letting them out and this has made the mar¬
National
Francisco
The
owned
sales
though there has been a moderate increase in volume
activity, the market is still thin and quotations can be moved
Inc.; Reinholdt &
Newhard, Cook &
and
Co.
stock
This moving out in
favorable influence upon
despite profit taking.
*
California
San
of
a
Even
columns Oct. 16, page 1458.
-
all the way through the
run
involve exchanges from
to
It seems as though the commercial banks believe that
the time
is not unfavorable to put more funds to work in the
longer maturi¬
ties and higher income
Treasury
share to $10.
The capital
expansion program,
approved by the stockholders on
Oct. 7, was referred to in these
•
this appears to
eligible list. It
Treasury bills and other nearterm maturities, to the highest
yielding issues, with most of this
maturity lengthening being done now by the out-of-town banks.
Company,
co-managers of
modest
a
seems
of the bank's
million, and
able to provide increased financial
service to individual customers.
getting the bulk of the attention
Lynch, Pierce, Fenner &
Beane, and W. C. Jackson, Jr., of
acted
committee
Gardner,
record
to be
appears
nationwide group
by Stifel,
a
Nicolaus & Co.,
its
eligible sector of the government market
by
underwriters headed
In
Bank
boards of directors of the respec¬
tive institutions have decided to
discontinue
negotiations on the
Clintock, President of the Colonial
Trust, said in a joint statement.
(Oct. 29)
of
cus¬
the
Anheuser-Busch, Incorporated,
$4 par value common stock at $22
per
share was made yesterday
None
swops
stock¬
Warrants issued
of
so
intermediate and longer term government issues in the
eligible group continue to attract attention. Lengthening of maturi¬
can
our
our
seems
unexpected.
to continue
increase
with
fectiveness
basis
us
and
However, the opinion
The
$37,000,000 capi¬
tal account. Ben H.
Wooten, First
National President, said "we feel
certain that our new
capitalization
our
yet.
what enlarged volume which is
being looked for in not
a much improved
trading market would not be
$15,000,000
a
increase will enable
woods
operation that is
capital, $15,000,000 surplus, $4,000,000 undivided profits, and $3,000,000 reserved for contingencies,
thus providing
Public offering of 356,717 shares
of
to be growing that
making a bottom. This
does not, however, indicate a
sharp upturn in quotations because
there will be profit taking and more of the
backing and filling
added by a stock divi¬
dend of 2 shares for each 15 held.
These changes in the capital struc¬
ture
Publicly Offered
the Treasury market is in the
process of
capital to
new
resources.
Governments
side, despite backing and filling on not too heavy volume. Some
believe this might be the forerunner of a reversal in trend. To
be sure, the market is still
feeling its way because it is not out of
the
000,000
on
By JOHN T. CHIPPENDALE, JK.
The government market still
appears to be on the constructive
*
Oct.
on
serve
oL^various
the
one
terminate
banking office with com¬
plete banking facilities and ample
parking space.' The senior officers added
$5,000,000 in
of the institution include: John
D.
for
shares at the rate of
four
shares
held.
ST., NEW YORK 5
WHitehall 3-1200
231 So. La Salle St.
45 Milk
Sl
CHICAGO 4
BOSTON 9
ST 2-9490
HA 6-6463
The Commercial and Financial Chronicle
20
.
.
Thursday, October 30, 1952
.
(1632)
credits.
British Treasury
because
Referring
to
courage
so,
refunding
the
in
said above, the change
right direction.
ST. LOUIS, Mo.—At
meet
debt
to
order
in
.reduce
be
garded
of view of the
effect of such
the point
as rea¬
bills
ury
or
sonably
satis¬
the
other large
due
for repayment,
hands
tne
oi
Treasury
small
but
a
not
negligible
•of
£60
some
million. As
result of the opera¬
a
materially re¬
tion the banks have
of Treasury
their holdings
duced
Bills, thereby complying with the
official deflationist policy aiming
at
the
reduction
of
their
ab¬
mopping
normally high liquidity ratio. The
question is, to what extent has the
operation succeeded in counter¬
acting the inflationary tendency
produced
by
the
unexpectedly
*arge Budgetary deficit. To the ex¬
which
to
tent
ratio of
lower
the
liquid assets tends to induce the
banks to be
cautious in their
more
over
from
the
and
investment
of
extent
created
the deficit have
The cash surplus
through
been mopped up.
is, however, only
fraction of the
a
Ihe
issue
of
to what extent
Loans
Government
lends to mop up
inflationary
chasing power'. To
pur¬
that the
assume
issue of Government Loans cancels
through
the
Government
borrowing
deficit
complicated
issue
to bear in mind
that tne Budget¬
deficit tends to
ary
primarily
because
not
inflation
cause
it
fi¬
is
nanced
by means of additional
Treasury Bills which tend to in¬
crease
the
banks.
Inflation
the banks
of
liquidity
ratio
increase their
but
Government
spends
its
Writers
revenue.
ject
holdings
the
when
in
excess
on
the
of
sub¬
inclined to view the situ¬
are
ation
the
when
not
occurs
Treasury bills,
of
primarily from the technical
point of view of the
money
mar¬
ket. What is
more
important, how¬
is tne broad economic pic¬
ever,
ture.
In
to
far
so
the deficit
as
increased
was
due
on
re¬
expenditure
armament and housing it was in¬
flationary because the purchasing
created
power
balanced
crease
by
in
produced
thereby
the
not
was
corresponding
a
in¬
quantity of newly-
consumers'
Ad¬
goods.
needed would be to cover
by
then
interest rate.
an
amount
corresponding to that
Budgetary deficit, provided
allow terms
acceptable
to
subscribers.
The
trouble
is that a very large pro¬
portion of subscriptions would not
come
of
to those who, in the absence
this
Government
exercise
their
their
acquisition did
duce the newly created
power.
under
drive
Most
the
the
purchasing
houses
Government's
were
however.
of
not
As
for
re¬
offered
built
housing
for
sale,
expenditure
on
and the
consumers
loan
operation would not affect the
following
the
1952,
were
elected
as
the following year:
for
White,
Honorary
Chairman, G. H.
Permanent
Walker &
Andrew
S.
Chairman,
Mills,
Richard
Morey,
point of view the direct dis¬
British
effect
Treasury
of
the
recent
operation
must
S.
Norman
Bookstaver, Treasurer,
E.
Heitner,
Andrew S.
the
beginning
reduction
bank's
was
liquid
of
of
the
assets
pointed
this
ratio
out
article,
of
the
it constitutes
a
most
aid
of
practice
earned
the
on
other
Municipal
is
their
Department and
of
Manager
Bond
member of the Board
a
of Di¬
rectors of the Investment Bankers
Association,
Mississippi
Valley
Group.
into
operation
the
both
efit
subscribers.
Based
in
tickers
ticker
the
service
the
of
in
Gulf
Sulphur Shares
shares
will
be
used
to
provide
funds
required for the purchase
machinery and equipment nec¬
essary for exploration and drilling
30
wells
Mexico
balance
and
concessions
on
to
made
pay
for
in
for advances
drilling.
The
will be used for working
capital.
sonal
community under¬
support of his Senators and Rep¬
resentatives."
was
(ex¬
directors' qualifying shares)
Mexican corporation, Com-
pania De Azufre Veracruz, S. A.,
which was formed to carry out
Mexican
Company
1,
as
a
Operation by
Quotation
put
Com¬
York
has
for
Quotation
the
better than break¬
on a
Regarding change in the margin
requirements, Mr. Funston stated:
"Since
my
last
have
I
report,
pri¬
vately against the discriminatory
75% margin requirement of the
protested
Federal
makes
both publicly and
Reserve
Board
mandatory
—
larger
a
which
down
payment .for shares in our greatest
corporations than is required for
the
purchase
of
In line with the aim to increase
the
contracts
relating
Government.
If
to
volume
any
released
24
other prop¬
to
urge,
as
realistic mar¬
gin requirement of 40 or 50%—
forcefully
a
as
I
can, a
rate consistent with
use
of
credit
in
present day
securities
the
market."
the
Concerning
Program
Oct.
on
report on
Transaction
Study
Sept. 10 and 17 with the
on
cooperation of members, member
firms
and
registered
representa¬
tives.
Reported volume on Sept.
totaled
1,590,000 shares, on
10
Sept. 17, 1,000,000 shares.
The
of all
report analyzes 93%
transactions
share
the
on
New
Stock Exchange on the two
York
It shows the motive
selected days.
each
behind
transaction,
shares
many
actions
how
represented
trans¬
by the public, by mutual
funds, banks, insurance companies
and
other
institutions.
It lays
down
composite
a
of the
picture
of Stock Ex¬
change business. And plain sta¬
tistics reflect the impact of re¬
strictive regulations on the secu¬
principal
sources
.
market.
rities
The
findings
reached by
were
checking 44,000 different transac¬
tions, 26,000 the first test day and
ports of member trading.
These
findings,
significant
others, show that (1) al¬
most 75% of the public transac¬
among
classified
tions
for ^ the
which
of this study was defined
purposes
as
long-
represented
investment,
term
investment to be held for at
an
months.
six
least
from
or
Purchases
invest¬
months.
to six
one
sales
or
20%
About
short-term
based
on
an
ered
balance;
the
up
out of every
one
the
tax
program,
several months, the Stock
has been preparing a
Exchange
comprehensive study
of
ard
transactions
trading
made
than
(2)
more
three shares
bought or
capital
gains tax considerations in mind.
It highlights, in other words, the
sold
have
to
appear
the
by
effect
been
with
public
of
investors
on
the
six
months holding period prescribed
in
on
the
capital gains tax law;
the
days,
active
more
the
of
(3)
two
10, when the market
Sept.
declined
sharply, transactions by
long-term
individual
investors,
Stock
Exchange
members,
and
public
traders
nantly
the
on
actions by
side.
individual
predominantly
short-
and
investors
on
the
sell
were
side.
17, the pattern was sub¬
stantially
tional
Trans¬
institutions, non-mem¬
brokers-dealers,
On Sept.
predomi¬
were
buy
the
(4)
same;
institu¬
which, ^ac¬
transactions,
of the total
volume tabulated, were predomi¬
Mr. Funston revealed that for the
past
Exchange
summary
counted for 18 to 22%
Tax
sulphur
a
Public
the
made
ber
continue
shall
Stock
of
transactions, Mr. Funston,
term
"I
Public
will actual or anticipate holding period
result of less than 30 days were consid¬
basis.
even
organ¬
ized to acquire all the stock
certain
time
first
on
Exchange,
New
downtown
the
Report
Transaction Study
ments
Aug.
non-member tickers
of the
per¬
sympathetic
contacfc^Jhe
represented
erty.
Gulf Sulphur Corp.
a
York
New
allied
immediately to enlist by
of
as
our
May I suggest that each
number of
monthly
$41,000
pany
in¬
subscribers, including mem¬
firms
the
will
costs
the
on
its
revenues
month
a
offset
than
volved.
save
Morgan Offers
on
and
New
$120,000
some
more
ber
Exchange
of the revised rates.
Peter
the
Aug. 1, and there is every indica¬
tion that the new set-up will ben¬
of
Newhard, Cook and
is
Company,
reported that
went
to
18,000 the second, and correlating
these statistics with regular re¬
Ticker Set-Up
Funston
pro¬
and
member
every
member of our
take
leased-line operation of the stock
of the firm of
through the
funding of Treasury Bills and of in commercial quantities is found
through such exploration, the con¬
characteristic instance of non-pro¬ loans with imminent
maturity will
tract also gives the rights to the
ductive capital investment which tend to
induce the banks to go
exploration and development
d'Trests productive capacity from
slowly with the granting of new thereof.
rearmament
interest
New
ticker
of
as
September,
of
in
recent
ice to non-members, boosted
Mills, the dean of St.
Louis Municipal Men, is a partner
other
hand,
again
the
reduced in
were
Exchange's investments, and fees
tickers
Secretary,
Blewer, Heitner & Glynn.
cept
the
as
$135,000 ahead of last year.
Mr.
Thos.
have been quite negligible. On the
at
volume con¬
In addition, the rates of
Increased
Vice-President,
Mercantile Trust Company.
already
From
pen.
nine
the
G. Edwards & Sons.
A.
with
the
$490,000
income by $130,000.
Newhard, Cook & Co.
of
of
offset
essential
reform
"Tax
received for ticker quotation serv¬
Co.
Inflated purchasing power can¬
not
therefore
be
canceled
out
stroke
charges to
by
adjusting such charges in the lat¬
ter part of each year. Listing fees
were
E.
Kelton
of
a
direct
declined
following
ex¬
tent of their demand.
volume
keyed to present conditions.
August and
Heitner
Norman
Thursday, Oct. 23,
on
ing advantage of the more attrac¬
Peter Morgan & Co. on Oct. 29
tive
terms
by selling out their offered 225,000 shares of Gulf Sul¬
existing holdings and subscribing phur Corp. common stock at $3
to the new loan. This means that
per share as a speculation.
the
inflated
purchasing
power
Proceeds from the sale of the
potential
against $5,866,-
earlier.
from
liber¬
and
rate
loss
expenses
plan made this spring when
union
contract
was
signed.
tracted.
power,
would remain in possession of the
tqtal
as
clearing charges
would
Loan,
purchasing
the second. For
charges declined
but from investors desirous of tak¬
inflationary
for sale
matter
Government
that it is prepared to
newly-built
offered
mere
the
of the
this
were
a
The
new
a
of
would not find it difficult to raise
mittedly to the extent to which the
houses
solution
problem would be
of
of
means
the
In
months, princi¬
pally because the 1% charge on
member commissions and clearing
tends
regarded as a satisfactory antidote
to the poison of inflation. If all
was
well
to which
to
mop
up
purchasing power that
Government borrowing cannot be
the
is
because of this un¬
certainty of the extent
tax
the
of
the
of
reduction in the
a
visions.
$1,902,338
were
months,
year
during
that the amount
power
three-
The plan was placed on a
Fund¬
negligible.
that
It
a
the
to
neutralized
operation has been
purchasing
shortening
a
gains
alization
member.
bonus
officers
of
30, 1951.
the Exchange's employees' volume
public and therefore it seems rea¬
assume
nine
The reduction
in salaries and wages in the third
quarter reflects the adjustment in
Club
sonable to
capital
quarter as compared
$5,811,782
were
851
the types of loans
issued did not attract the general
out a corresponding amount of in¬
flation would over-simplify a very
situation.
Richard Morey
nine
base
operation
It is largely
In thir "Oaaection it is necessary
Mills
ing their purchasing power by in¬
vesting their money.
In the in¬
deficit.
to examine if and
S.
abstain from exercis¬
which they
ing
the operation), the
monetary
resources
Andrew
other form
some
Law:
Tax
"cannot succeed without the active
the
in
expenses
needed
urgently
modifications in the Capital Gains
industry," Mr. Funston maintains,
corresponding
third
the
the
Government Loan merely
new
a
switch
stance of the recent British
py
the
with $1,947,777
an
lending policy the change was un¬
produc^u
nine
material will
new
obtain
to
$335,770,
was
volume for the
months dropped
30%
Income
to
with the
while
members
course
lorts
of $145,695.
months, net
net
nine
taxes
$431,115
quite impossible
form
doubtedly in the right direction.
To th-»y+ent of the cash surplus
additional
first
after
opinion about the rel¬
ative extent to which subscribers
is of
It
to
The
provide the basis for renewed ef-
Summary
sold out declines.
are
three months
for the
quarter's
the
Total
in
existing
rities that
gains tax.
quarters of 1951.
stock on the
and the price of the secu¬
market
profit after taxes amounted
$117,300
first
issue
the
with
Net
to
from
of purchasing power.
simply competes
up
new
summary
pact
of Federal
taxes
on
the
capital markets, with particular
attention
given
to
the
capital
holding period,
quarter,
big or small, sell some of their
holdings in order to make room
for the new issue, then there is no
The
operate
to
The share turnover in the third
investors. Had the is¬
of securities which
represented genuine savings. If all
that
happens is that investors,
Dr. Paul Einzig
balance
cash
affiliated
its
and
continued
quarter fell 11% below the second
appealed to the small investor it
might have resulted in a neutrali¬
zation of purchasing power, pro¬
vided that the amounts subscribed
leaving in the
volume,
profit in the third quarter of
against
consisted
sue
disap¬
share
months ended Sept.
ally
held
by
banks,
discount
houses, insurance companies and
covered
Exchange
a
profit
ernment securities which are usu¬
The
amount
the
despite
this year.
of other types of Gov¬
factory.
subscriptions
Stock
small
companies
at
For
through the issue of Treas¬
anced
re¬
that
second
expenditure it matters relatively
little whether the
deficit is fi-
floating debt
ma,y
the
President of
Exchange,
Funston,
York
New
ended Sept. 30, compared
inflationary
direct
the
the annual
meeting of the St. Louis Munici¬
pal
Dealers
Group
held at a
dinner at the Missouri
Athletic
tially inflationary.
From
to
and
notice sent out to members,
a
Keith
pointingly
Dealers Elect
I,ONDON, Eng.—The result of the production of consumers'
Ofie funding operation undertaken goods or
of productive capital
by the British Treasury at the be¬ equipment. It is therefore essen¬
of October
maturing
In
G.
reveals
Municipal
Releases
Report of Public Transaction Study.
the
St. Louis
despite small share volume,
affiliated companies had a net profit of
$117,300 in three months ended Sept. 30.
additional inflation rather
we
as
is
borrowing that is inflationary, but government spending in
excess
of revenue.
Says inflated purchasing power cannot
be canceled out with stroke of the pen.
ginning
President Funston tells members,
the Exchange and its
than reduce actual deflation. Even
operation, Dr. Einzig discusses extent to which Government
Loans cancel out inflation, and holds it is not government
Profit
Treasury
operation their liquidity ratio re¬
high. This means
that the operation tends to dis¬
PAUL EINZIG
of recent British Treasury
success
NYSE Reports Third-Quarter
credit facilities
after the
even
mains reasonably
Financing and Inflation
By
It would not induce them
call in existing
to
the im¬
nantly
were
for
banks
On balance,
funds.
and
mutual
mutual funds
buyers and fiduciaries were
sellers,
on
both days.
;
Volume 176
Number 5164
.
.
.
The Commercial and Financial Chronicle
(1633)
Continued
The
balanced
ability,
there
from
a
restraining effect on any
unhealthy expansion of new bor¬
rowing on securities.
to
maturity, market-
diversity,
and
there
was
could
not
boundary.
mand
long
realized
of
companies have
the suitability
of
investment for
Here
ability is not
especially
their
market-
controlling factor,
a
but many such life insurance
panies
place
their
on
banks
tions
com-
population limit
purchases.
Commercial
a
familiar
with
local
condi-
be sold the earliest
can
These
situations
duplicated
are
communities
JACK
of
the
type bond themselves for
same
elec-
an
Local
for
his
supply
capital
did
and
not
MARSHALL
vestment
other States
servative
debt
there
is
burden
The
financing
is
not
problems
borrowing
in
long
a
thus
the
the
of
A third
a power source.
found
be
and
with
fundamental
can
for
agency
time
purpose
community
efforts at proper sewage disposal,
to be overlooked are the is-
Not
Union.
educational program for 1952-53
have
We
portunities
found
such
op-
in
Florida
and
Alabama,
and
do
the
above
bonds
exempt
in
the
the alert investor
a
support of
gation,
this
but
is
not
Reviewed
recently
was
be
must
sub-
a
tax-exempt portfolio of a
wealthy New Hamshire resident,
Practically the
whole
list
was
realized
a
This
"ireful
that
tion
knew
Protest 75%
reward
in
this
There
this
for
in
large
a
best
are
portfolio
erick Tilney, Jr., of Tilney & Co.,
and
David
M.
Wood
of
Wood,
of
as
Committees
diversifica-
to purpose and
President
risk...
their
rate is unwarranted, discriminaWood, Strutbers & Co., New troy and a deterrent on the flow
York City, President of the Asso- of capital.
ciation of Customers' Brokers, and
Unwarranted, because borrow-
&
&
Co.,
Downs^Co
.
Larkin
Co.;
Inc.;
flow
of
Huhn
may
that
Jack
B.
volume
on
the
*
ry
;
Board
75%
the Federal Reserve have
been
in
comparison with
protesting that the present that period 16 years ago if the
margin requirement for great increase in the number of
to
transactions
stock
unwarranted,
a
Board
sideration
give
flow
a
reduction
of
letter
submitted
the
to
the
Federal Reserve Board followsFederal Reserve Board
Washington,
Gentlemen:
D.
7
C.
new
.
.
^
J.
Whelen
C.
of
F.
have been forced to resort to pnvate
financing, through institu-
& £0
.
•'
Association of Investors'
Mericka ie Larger
CLEVELAND,
.
,
J.
...
^
Building
have
been
iarged and remodelled for the
i
..
.
„
normal
enuse
their retail sales department
to com-
trading
of
raising needed funds activity, and to provide an overBrokers and the Association of
through the securities markets. *
all
service
to
their
investment
Customers'Brokers have instructed us to write to urge the lowerMay we suggest here that the«clientele. \
.
ing
of
.
.
existing
margin require- current decline in the market of- /. Edward K. Eldridge, formerly
to 50%, at least, fers an opportunity for
making ,with the Federal Reserve Bank,
Our
Associations
represent em- the change
in
margin require-, andt Franklin Coryell, formerly
ployees of security firms handling ments. The present high
interest with Curtis Publishing Company,
ments
more
from. 75%
than
one
million accounts.
charges
on
debit
on
balances
would
cover
feel
this
has
outline
been
sketch,
a
but
I
sure that you will
agree with
when I say that the members
me
and
partners have a justifiable
right in their pride of the record
this Exchange."
of
Chairman of London Stock
The
dinner
was
dent
of
the
London
presided
Toronto
over
Stock
Ex-
oldest
in-
roducing
speakers,
called
atten¬
to
early
the
the
days
of
inception
of the
tion
r
i t i
c
h
headed.,
feel
is
it
only right that
this
at
time
I
a
Doherty
the
you
the
the
of
some
Toronto
background
Stock
of
Exchange," he
said. "You probably know as much
as
I
the subject due to the
about
marvelous
coverage
that
have
we
-
is
a
great
country
—
probably
the
greatest
land
of
opportunity
upon the
left
earth.
is
"It
com¬
John B. Braithwaile
monplace now,
and
yet it .is
speak
romance
Alberta oil
of
iron,
and
of
the
and
also, to
Quebec
mineral
wealth
that stretches far into your north¬
and
even
Arctic
upon
"And
something
about
e x
"Yours
ern
M.
e s
nges, re¬
very
should say
D'Arcy
all
secu-
marked:
institu¬
which he
of
existing
Doherty,
t
Stock
Exchange, the
by D'Arcy M. Doherty of
Doherty
Roadhouse & Co., who is Presi¬
these
resources
you
will build
a
ture
of
your
stock
their
essential
as
over
the
natural
building,
are
and
great and rich struc¬
industry;
part,
territories.
rich
in
and
all
that
exchanges
will play
indispensable
exchanges do all
and
stock
world.
received from the press in recent
weeks,
which
for
we
very
are
—
met
to
Original
each
and
office of
an
the
Toronto
have joined the firm's sales staff.
all.
"But
was
hour
a
each
morning
member. (Recent¬
visualize
this
all
we
stand
for the
sam*?
for
integrity and service;
for scrupulous honesty of dealing
conducted
ly it has been easier for
to
$5.00 thing;
seats sold for
trading
for' one-half
in
form
Exchange in the year 1852.
our mem¬
condition.)
in
the interests
of the
public and
the industries and institutions and
the
governments that
"The
never
sun
ser/e.
we
sets
the
By 1861 the Exchange apparently stock exchanges of the five conti¬
had a President (a questionable nents, but their work goes, on un¬
move
their
on
36
part),
upon
stocks ceasingly round the cIock
—
San.
quota¬ Francisco, Chicago, Toronto, New
tions to Canadian and U. S. news¬ York,
London, Paris, Johannes¬
listed, and
was
supplying
By 1881 the Exchan^had burg,
were
valued
Calcutta,
and
ney,
many
Melbourne,
and
Syd¬
following
more,
the shadow of the
1896 the Toronto Stock
sun
around the
perimeter of the world.
"Your kind invitation, Mr. Do¬
was formed with
having seats at $25.00 herty, and this magnificent assem¬
bly here tonight, has. put ideas
each.
into my head.
:
"The two exchanges grew
"It is very possible that more
through the intervening years and
the only time their doors were stock exchanges are represented
here tonight than have ever be¬
ever closed was for a four months'
Mining Exchange
25 members
period
.,
plement the firm's usual
more
brief
very
1951.
year
Exchange Speaks
,
"In
Wm.
Ohio
T
merce1
the
in
at $300.00 each.
Quarters in Gleve.
n/r
in
"Gentlemen,
economic
starting
30 members and seats
which is being expanded
channel
"Chronicle,"
papers.
than
the
Child$
re-
a relatively small number of companies Many deserving companies
through
of
Mencka & Co., Inc. announce that
issues to their quarters in the Union Corn-
This has tended to
triet the market for
_
traded
principal
page.
bers
tions and government loans rather
The Executive Committees of the
National
income
Schreiber
Bullwinkle of Tripp & Co., and
Lillian
been commensurate with the
country's growth, national product
or
-
.
F.
Pershing.
„
.
to
margin rate:
The
not
Mary
Auditing committee: Louise
and
con-
&
r
of capital
immediate
~
Committee:
Anna
and
sec¬
citizens
Marie
Co.; and
.
Mitchell
ranked
we
only to the New York Stock
Exchange in volume of shares
<-<>., Mane
Co-
.
man,
exchanges is
discriminatory
deterrent to the
the
Publicity
.
until
ond
&
Flynn of Gre-
7,7
gradual growth in listings
a
volume
"There
are
many
stock ex¬
changes represented here tonight
gathered together to do you
grateful, but I would like to men¬
honor—and I suppose that London
tion a few highlights.
"Confederation was still 15 years may claim to be the first in point
of time, and so the father of them
away when 12 far-sighted Toronto
Ciado of The Bond Buyer, Chair-
shares listed be taken into consideration. Furthermore, there has
been a large volume of new fiinto business. They requested that nancing in recent years, but it has
on
'•
Dinner
speakers
Speaking of the importance of
was the Hon. L. M.
the Toronto Stock
Exchange in
Frost, Q. C., the Prime Minister the
growth and progress of Can¬
of Ontario,
whose complete ad¬
ada, J. B. Braithwaite, the Chair¬
dress appears in this
issue of the man
o i
t h e
The
Huhn,
York
letter
the
Exchange, extends
organization.
the dinner
Stock
>
New
of Baehe & Co., York Stock Exchange last year
City, President of the though with one exception larger
National Association of Investors' than in any year since 1936, was
Brokers, on Oct, 21 directed a less than half of what it would
New
Among
at
& Co.
be pointed out, for example,
stock
played
M. early days of inception and give
g
been
progress since that date.
Audrey Bickhardt of John Nuveen
capi-
volume of security transactions. It"
B.
has
remarkable
Jeanette
Struthers & Co.;
coh-Vtp#ration; Rosemary
tal, because the present margin
requirement is one of the major
factors
responsible for the. low
Jack
Exchange
of
Estelle
goods, etc.,
have;,beeny Harrington &
greatly reduced or removed en.f^ringion. &
tirely. '
7 r
.7
Feil' of Phelps, Fenn
Marshall Dunn
Stock
Canada's
Co.,
sumer
the
1852, and pointed out the
important role which the Toronto
"i
'-9^7/ Stiiart & Co., Inc.; Marilyn
I^ajidempf Union Securities Cor-
jbecause... credit
restrictions in other fields* of bor-
on
traders who organized the institu¬
before
Outing Committee: Margaret M.
Higgins of J. J. Kenny & Co.,
Chairman; Elaine Malast of Hal¬
l-Discriminatory,
estate,
Beatrice
J
carrying
securities are exceptionally low in
.relation to
security values, and
..the wealth of the. country.
Deterrent
security
tion in
Goldman, Sachs & Co.
Leeds
wortn
of
real
of
group
follows'
as
® ^r e
e ^
a^n no?,Jlans oi Braun, Bos-
of
as
small
Co., Inc.; and Josephine
Chairman;
tive organizations, Marshall Dunn,
rowing, such
the
Arrangements Committee: Ruth
Bartow
purpose
abroad, the speakers
stressed the Courage and
foresight
of
his
and
from
the
A. Miller of Lee W.,Carroll &
We believe that the present 75%
ings for the
&
M. Rodd of
deterrent to capital flow.
respec-
and
tion
worth
Brokers, lodge with Federal Reserve Board the
of these two organizations against present margin
requirements, which, they assert, are unwarranted, discrimina¬
of
are
hv
of
bankers and statesmen of
Canada
the
protest
spokesmen
climaxing the 100th
Anniversary of the Toronto Stock
Exchange held at the Royal York
Hotel in Toronto on
Oct, 24, and
attended by
leading industrialists,
change. Mr.
annointed
their felicitations, while F. G.
the Montreal Stock
members
Co., Inc.; Jean M. Davies of Wainwrighty Ramsey
&
Lancaster;
Madlyn Hoskins of Braun, Bos-
Margin Requirement
of Investors'
As
dinner
a
convey
by D'Arcy M. Doherty, head of the Toronto Exch.
Educational Committee: Elsie T.
Dunn, President of the Association of Customers*
Brckers, and Jack B. Huhn, President of National Association
a
over
of
Schuyler, Chairman; Margaret O.
Angerman of Adams,' McEntee &
Marshall
tory and
At
wishes
King and Dawson,
balanced maturity schedule and
geoeranhical
Trust Company, 30 Broad Street
*:30 P-m- Guests are invited,
Co., David M. Ellin wood of
Moody's Investors Service, Fred-
tax-exempt bonds where there is
confined to New Hampshire names
shrewdly
ample
yield. These opportunities
and
investor
marketability
announcement by Mildred R.
Committee, arranged the program,
Guest speakers to be heard at
future meetings are Francis P.
Gallagher of Kidder, Peabody &
on
deficient virtue through increased
stantial
mostly of small villages.
of
Assistant
cal Bank & Trust Company,
Chairman of the Educational
common.
class of investment media.
loss
Milloy,
Elsie T. Schuyler of the Chemi-
voted obli-
a
exempt market mostly
the
devel-
®
combination of tax support and
revenue
rJ.
„
1
Club. The meeting
win be held at the Chemical Bank
find
can
begin its
Johnson of F. P. Lang & Co., Pres-
revenue
Again emphasis must be placed
opment of the past five years.
an
field, they apply in degree to the
tax-supported bonds of the smaller
political entities as well. In some
cases,
will
■ of
The First
Boston Corporation, according to
have
remarks
York
Vice-President
they
but
New
a
^
elsewhere.
exist
of
?n
Ohio, Indiana, IIKentucky,
Pennsylvania,
sues of natural gas revenue bonds
which have been seen in the tax-
as a
Bondwomen's
Club
been mostly concerned with tax-
of
Municipal
good
presided
Educational Program
why
While
confronted
Exchanges
McArthur, Chairman of
Mimic* Bondwomen's
rea-
reason
no
such cases the political entity con-
period
York Stock
the
climes. Providing
background is con-
and
sonable,
linois,
of power from
•
Brokers
or
economic
tracts for its
established
President,
Customers'
by putting the in¬
principle
to
work in
should
an
of
obtained
trie distribution system by issuing
electric revenue bonds. In many
source
DUNN,
Association
viously cited, but this could have
the
At dinner in honor of the
One Hundredth
Anniversary of the
founding of the Toronto Stock Exchange, now the third
largest
on the American
Continent, speakers laud role the institution
has played in Canada's
progress. Chiefs of London and New
HUHN, President,
Brokers
de-
permit
the large differences in yield prebeen
B.
National Assn. of Investors'
State
these bargains could not be found
in
almost
every
State
of
our
ma-
turities.
where
beyond
see
Centenary of Toronto
Stock Exchange Hailed
your con¬
plea.
our
Respectfully submitted,
smaller
and
insurance
class
the
places with higher yields, but he
Life
needs.
in
that
appeal
definite
a
value
sideration of
risk
place for this class of investment,
this
We would appreciate
Security I Like Best
as
is
have
2
page
21
in
1914
at
the
outset
of
"In
1930
limited
and
rated partnerships were
incorpo¬
audit
adopted,
since
regulations
which
were
time
the
their present quarters. From
gathered
together
on
occasion.
Suggests Conference of A11
prohibited
by the two stock exchanges, and
strict
been
fore
one
World War I.
Exchanges
"It
would
be
a
great
thing ty
hope for, and a great thing to
ac
¬
that
complish, if all the stock ex¬
public has not lost one dollar
changes in the world could bo
through insolvency on the Ex¬
gathered together at some fitting
change.
time, to meet each other, to get to
"In
1934
the
two
exchanges
know each other better, and to
merged, and in 1937 moved into
exchange
knowledge
and
ideas
time
until
the
present
there
has
Continued
on
page
22
22
The Commercial and Financial Chronicle
(1634)
Continued
from
expansion,
21
page
of
sands
with
literally
thou-
industries
new\
located
welcomes you with deep pride to
the 100-year association.
Centenary of Toronto
Stock Exchange Hailed
techniques;
than that—
-I must not say more
perhaps the occasion of the
Coronation next year, which will
that
be
English
draw all
magnet to
a
speaking people, and people from
many other lands, to witness the
most brilliant pageant and ritual
of
sovereignty that the world can
this may not be
the
fitting
"I
must
congratulate
and
architecture
of
achievement
ornament
an
to
same
to
It
the
industries
me
of
in
puts
of all
famous
Ancient
of
exploitation of
minerai
and
gas
continues-
British
Columbia
change.
is
Canada's Natural Resources
making the most of its tremendous
natural resources
and
tres established there
Canadian
Ex-
indus-
now
expand-
are
tu"ll^S'.
1S
Index
and
contribution
,
and the influence of the Toronto
block
Lxcnange.
velopments, it
Canada's Progress
of
other Exchanges
"These
mind
During July the demand
which
repre-
in
all tnese de-
playing
is
and financiai leaders have dem- due to considerable activity in
onstrated that they have the cour- the French domestic market, the
age^
great
a
and important part.
certain
are
shared
by
the
rites
ment of these Exchanges through recently by Mr. S. W. Fairweather, by your own
to perform its annual
way
Parthenon
the
in
the years
Acropolis of Athens.
has been*
reflection
the
on
of
continuing Vice-President
a
economic
Canada's
All of us—all the Cana-
progress.
refrain from
cannot
speak
of
of
other
name
world
stands
and,
in
alone
like
"The founders of this Exchange
state<i 100 years ago
;
with
he
company of
the
Pitt
and
Wellington, and
us,
like
names
Lincoln
and
ston,
Nelson
and
Washington
you, Mr. Fun-
with
like
and
MacDonald
and
Strathcona with you, Mr. Doherty.
"
'A
magnificent
Canada.
.
.
future
awaits
Upon the whole
,
face of the globe there is no
and
spacious
to
open
of free
the
activity
genius
day
which
beginning of
century, I
am
congratulations
proud, Mr.
you
the
the
warm¬
greetings and
and
from the London
your sec¬
very
est and most cordial
stock
and
this
on
Doherty, to bring
and
domain
good
wiskes,
Exchange,
Stock
presidents
of
all
other
exchanges in Great Britain
and Ireland have asked
sociate
with
them
this
most
me
to
as¬
cordially also
message
of
from the 'Old
Country'
hundredth birthday."
goodwill
upon your
tional Railways, before
a
The
Chairman
Stock
Exchange*
F
Amp?'
Rr
A
E
•
-
v..
tribute
es
"to
of
^
the Montreal
^
G^McArthim
rn
«
our
sociation and
of the
rAoiri
Paid
friends,"
helping to
are
country.'
KiJ
his
the
is
interesting
note
that
and
this
significant
100th
to
to
history
has
known.
Toronto
their
100th
event
has
It
is
G.
McArthur
Exchange, on
Anniversary. Today's
many
flat-
made
in
Canada
remarks.
ate
Toronto friends
gratification
This is
occasion
for
a
most
their
a
as
100th
lUUth
your
say,
of
JLJ"L iinfwLri"_
<<T
^
fh
J?"
I,0®?"?! Jle
..
Anniver-
behalf of all the
on
Canadian
Exchanges,
ties market
nial
Uo
South Africa has
present
be exported from South Africa
either in fully manufactured form
or on tJie production of an ac?ePtable Affidavit declaring that
^ will eventually be manufac—
and
of Toronto's securi-
tured.
this great centengreat centen-
on
AilstralhTand New^ealand
tinues to insist that the gold shall
unn„
«i salute President Doherty
August when
Producers in, Rhodesia and West
*.Africa were allowed to sell their
Production ir\ tine bar form—a
SILVER
observance,
"This
100th
Birthday
"The
con-
few years ago.
advance
is
auvaiAC
Canada-wise.
10
v^attctUd.-wiac.
Exchanges. Today
1
JI
is
hgr. ,f
h_
Pnn+i'
"
•
Just
English Gold and
.
x
,v
glance bnefly at the-
"The—Maritime
the
,
_
,
below
the
<iuar-
-
;
GOLD
•
r.
a
•■'*:
-
mL
I
Tx
i
*
t.
x
v
.
i-
Onpbpp
+„rai
and
materials
is
now
exneri
indnttHni r^vnbSSn
Pnrinff
wjth
agncui^
0
raw
a<*rinni
larcrpiv
largely
the
establishment
of
^rpat'
essential
indus¬
V
n
so
was
par-
in August.
i.
*
"free
exDortahle'*
^bupplies of free market have
exportable
on the London
silver
been smaller during the past three
^ey.
cient tp meetr a reduced XJ^nti-
kistory; will
record
the
^Changedat;248g$d
at.which, figure
the-above^aro®^^fSCc^ifieht:
—
wueoec,
pro¬
morrths as «™?pared with previtnemtrapeDsI
of the Bank of
quarters of the year Even so
„
"Labrador and Ungava with its y°u.r
«niri
be
to
The amount of gold held in the
England is unaltered Sit £ 356,823.
map.. fjrst
lDO'years
Provinces and •.
of the Tororrto
ore.
for
demand
ticularly
'
f
formerly, almost stock E xx.was1 calculated.
,
: T-,
completely restricted to farming, G h a n g e
G. Keith
The Treasury
Funston
as
announced that
lumbering and fishing—are now merely the
during
September
the
sterling
moving forward with many new opening chapter in the life of a area had a gold and dollar surmining and industrial develop- great Canadian institution; I be- plus of $13 million; the gold and
ments. ■»
lieve that the second century of dollar
reserves
therefore
iniron
continued
marked decline and this
,
th<at
quotation
tries; During the period under
review,
however,
requirements
for
these
purposes
showed
a
Silver Markets
reprint
written under date of Oct. 3.
diction: I
believe
The rise
in the New York
vided from official stocks to meet
terly bullion
letter- of -Samuel
Montagu
& Co., Ltd., London,
w
pre
country
our
.•-*
vance
per ounce.
.
'
like to make
~
Silver
We
"
•
n is a friendship two months' delivery.
solidarity of purpose: was in conformity with an ad-
£'provide a free market for a free from 82% to 83% cents
vanremthe New York^uotattort
1
p
anf.
Funs^0^J
..j
on
Celebra-
rcfUta'A
widespread said
more
"I
•
relationship bethe New York Stock Ex-
to flourish-
based
Mr. Funston
stated.
friendly
career wiU prove to be a creased from $1,672 million on
period of growth and progress be- Aug. 31 to $1,685 million on Sept.
yond even your dreams today.
30. The surplus arose after ac.
«For in nations like Canada and count had been taken of the re' For in nations like Canada and count had been taken of the re-
the United States, no institution ceipt from the United States of
imum
Consequently the
exportable silver
for
the official
siderably
preover
price narrowed conhad almost disap-
and
peared by
the end of the period
under review,
To Be McMullen & Hard
On
Nov.
„
.
1
„
the
.
firm
P
tt
name
j
of
inn
McMullen, Park & Hard,
defense aid during Broadway, New York City, mem11 Performs an essential service. September and of the payment to bers of the New York Stock Ex-
can pass
the century mark unless $27 million
"*
'
"
"
"
"
"
as
^
those
appropriexpression
no
f^^th
tion and industrial expansion, tion of the Toronto Stock ExThere are today industrial devel- change is an inspiring occasion
opments in spots where anything and, for me to share in it, is a rich
Uke them was undreamed of QHly experience," '
warm
at
the globe. You
punitive Capital Gains
g
_
F.
citizens but from
of
corner
doub!f taxatl°n of dividends. And-
the
it is by the the New York Stock
Exchange
people, stable and stressed the role the sister organisiressed me r01e tne slsler organi
e
Zation in Toronto is to play in
a country,
is ex- Canada's future.
periencing great shifts in popula-
Newfoundland
occasioned
of
your own
every
the other officials
-
♦
Exchanges cannot help but share
our
of
on
rather conservative,
-
praise of our spirit of enterprise. We of all the Canadian
feeling
of
members
bilingual—and
character of its
Extent of Nation's Deveropment
and in
with
num-
Exchange,
Stock
tinuing expansion of
Stock
have
we
to make
A-change occurred in the gen-
era^_'scen€.
During the third quarter of the
"Canada is a growing country gratulations, well done, and many tween
year only one change
was reand a growing market.
As such, happy returns."
change and the Toronto Stock Ex- corded in the official price; this
I think it is always well for us to
change is, to me, a source of deep was on the 25th of July when it
recall that it has, very definitely, Remarks of G. Keith Funston
satisfaction—and I am confident was raised from 72V2d to 73d per
its own distinctive characteristics,
a
K>ith Fun<?tnn
PrP«?iHpnt of
that this friendship will continue ounce 0.999 fine for both cash and
tering remarks regardifig the progress
I
sary,
other
from coast to coast.
in
from
catch up with you
the
you,
than ever, as it shares, in the con-
friends,
our
"To
occasion
Canada's
Exchange
paying tribute
the
.
Toronto
expansion
the
change,
to
these facilities.
the influence of the Toronto Stock
Ex¬
facilities
possible for the greatest
in the midst of the greatest
occurs
Lon¬
Stock
"We have the
Anniversary
So, too, is the contribution of the
the New York
continue
an in- ;
capital "not 0nly -
of venture
it
"The
xuc
of
will
and
??^
You have encouraged
flow
history of the Toronto ber of Canadians to have a share
Stock Exchange is a history of the in our large industrial enterprises.
natural resources and industrial We must make the best use of
the
President
made
reaii-('
geared your tax policies'to
of ties.
"All Canadian Stock Exchanges
have
*
..
teteHI-
"The
Canadian Stock
and
capita!, ^that^pitalis
gently applied.
n
Septem-
0ta" slbWly - but ^teadily..until by The
indicated by the record.
the Stock Ex-
don
......
,
.
Tax; no Excess Profits Tax;' no
Chairman', of
change
«...
'during
v i -
*
have
a
a
~ ^.There^-was*: iittle .improvement
nity in the world for investment
pro-
busi-
^*en I
velopment of this country.
ia ted
with
•
the price
about
few'^a Rttie^paor^^f
'
ment ana.
make their contribution to the de-
pleasure to be
c
5
"The
remarks:
a ss o
rise
great extent in the international
market as it was accompanied by
a corresponding, and at times
effo^^We-do'leirvy^H'jd^
whi^'Ca|ntM>r^dgg(^fdulihg
justification of their pioneering efforts and their hopes is
ness
Exchange, in
the following
is
■■
discharg-
mote and extend the general
Toronto Stock
"It
are
-
a
an
"Canada,
Address of F. G. McArthur
of
that,,:
we
development of Canada. I think it
so,
marks the
ond
splendid
This
kilo.
the first week to
$37.6(> at which level it regroup in and the respectaccordedrthe risk- mained for. the rest of the month.
important duty to Canada
"The intelligent application
by the establishment of this As- capital is our business. - '
ing
sur¬
more
men.'
"And
" 'We consider
.
"today,
524,000
not reflected, however, to any
and the environment inr
Research
repeat-
him
simply
as
Mr.
because-there
is no
of equal stature in the
Churchill,
per
was
Development of the Canadian Na- is encouraged to work in Canada
dian E'xchanges—have played our New York City,-to wit:
ing to you Mr. Churchill's words part in that development^-* but-'Canadahas advanced in
that you have used in one of your none a greater or more important decades fr
"
striking publications, and which~ par.t than the Exchange't^ which industrial
you mush cherish very deeply.
I we pay tribute today.
'
now offers
"I
in
Frs.
that the rewards
enterprise
free
early August to
price rising
j.be imagination and the skill
make
0£
successiverestablish-^Uke^the-way-it was summarized you the material Tewai^ti^tfeiGr^-^^
The
change.
por-
trays the Pan-Athenaic procession
on
was
quite good and offerings were
easily absorbed at steadily, if
"Canada, of course, is a country
of massive natural resources. No
which I represent, and the young- so in this gathering. You know trifle envious, it is not, let me as- even more rapid, rise in the quoest of us all, the Edmonton Ex- all about it. You are part of it. I sure you, because we begrudge tatlqns in Paris of the dollar.
■
of the most
the classical friezes
Greece,
965,478
has
res0urces
tive frieze representing
sion
ounces
July
1,010,978
978,402
made in the past few years—and
August
997,099
989,027
is making today with even greater
literally changed vigor—is not inhibited. It is unInternational Free Gold Market
wboie COncept of the future restrained. And our admiration is
During the past quarter, the
and opened up great new oppor- n0 less for the work of the Toprice on the various free markets
|unmes
for
investment
capital.. ronto Stock Exchange in spreadThen in the mountains and on the ing share ownership in Canada's has been remarkably steady and
par;f;r r0ast
thp inrrpriihlp stnrv
enterprise.
on balance there is virtually no
oil> natural
Qur
the decora- -sented here today are: Vancouver,
"There is no time to paint a all the people.
a procesCalgary, Winnipeg, Montreal Curb complete picture of this amazing
"If some of your friendly neighof Canada. Market, Montreal Stock Exchange, advance. Nor is it necessary to do bors to the south are at times a
like particularly
"I
other
the
changes.
city.
your
of
half
your needs
time
a
fine
adapted
the
at
fine
977,527
June
Canada, I can assure you that j
and branching out into other nation, though, is stronger than its slowly, rising prices—the quotaand sincere personal good
know-how to make free enterprise tion improved from aboat $37.25
parts of Canada
wishes accompany the more of¬
5c
work for ^e benefit of its people, at the beginning to about $37.75
The
development
is
indeed You
ficial and formal congratulations
are
doubly fortunate.
For at the end of the month. The inwhich I present here today on be- Canada-wise.
So are the oppor- y0ur government, your business crease in price was principally
splendid stock exchange building,
perfectly
1951
1952
for the strides which Canada has
to
your
on
you
Here
warm
a
few words—
allowed to me—
spare
for not many are
to
complishments and their services
and the unique
a gathering.
time
occasion for such
their great ac-
tribute to
paying
show —whether
a
revolu-
more
the. world.
of
the discovery and
-because the Toronto Stock lx—because the Toronto StocK E?
lange
change truly represents the proprogressive spirit which we like to
think is typical of all Canada today. As Chairman — and a longtime member — of the Montreal
Stock Exchange, I have naturally
had
many
dealings
with
the
Toronto Stock Exchange.
So, in
begin-
it is
and
ning tonight to dawn in my mind
even
are
bread-basket
„
,
and
opments
State for
Orange Free
and
vaal
citizen of the United States to
talk about the Canadian economy
tionary in the plains and foothills today without—shall we say—a
—so
long famous as the great tinge of envy. But our applause
"Looking westward—the devel-
Thursday, October 30, 1952
June, July and August, 1952, is
shown below, together with figures for the corresponding months
of 1951 for the purpose of comparison:
"It's just a little bit difficult for
here.
...
jn
so
many
0f
there has been
our
an
industries—
year
unprecedented the
rounded out its 160th year,
York Stock Exchange
New
Eurppe during August.
is retiring
The goM output of the Trans- Oct. 31.
ern
Oil
Volume 176
Number 5164
.
.
.
The Commercial and Financial Chronicle
(1635)
7JIU71IK7IIK/IIX^^IIK7IIR J> IK 7^11171II\ /J'UV 7IIH ;ilK71IU 7ZIR7IIJ
otonto
Stock. 2-x.cha.nGe
ONE HUNDREDTH
ROYAL
YORK
HOTEL
OCTOBER 24, 1952
23
24
The Commercial and Financial Chronicle
(1636)
.
.
.
Thursday, October 30, 1952
President of the Toronto Stock Exchange
D'Arcy M. Doherty, Doherty Road house & Co.; W. G. Malcolm, A. E. Ames & Co., Limited;
L. Jennison, Wills, Bickle & Co.; Gordon W. Nicholson. G. W. Nicholson & Co.; Frederick J.
G.
Crawford, F. J. Crawford & Co.; Eric D. Scott, J. H. Crang & Co.; Robert J. Breckenridge,
Breckenridge, McDonald & Co.
D'ARSY
M.
D'Arcy M. Doherty, President of the Toronto
Exchange, is
a
President
DOHERTY,
Stock
partner in the firm of Doherty
Roadhouse & Co.,
Toronto
Graham
Towers, Governor, Bank of Canada; H. L. Enman, President, The Bank of Nova Scotia;
Beverly Mathews, Counsel for Toronto Stock Exchange; G. R. Ball, Vice-President and General
Manager, Bank of Montreal, Montreal; L. G. Gillett, Vice-President, Bank of Toronto; Harold S.
Backus, McLeod, Young, Weir & Company, Limited, President of Investment Dealers Association of
Canada; Peter D. Curry, Peter D. Curry & Co., Ltd., Winnipeg, President of Winnipeg Stock Exchange;
Hon. J. J. McCarran, Minister of National Revenue of Canada, Ottawa.
Stock Exchange
Stock
1.
3.
Toronto
4.
CANADA
New
Montreal
Curb
Stock
Exchange.
Stock
642,801,678
126,112,323
1,174,246,840
561,466,831
804,996,796
108,239,072
______
Exchange
Market
_
Stock
___
and
___
5.
Mid-West
6.
San Francisco Stock
7.
Boston
8.
Los
9.
491,384,415
Bullock, Ltd.
18,125,965
229,251,293
18,336,211
Philadelphia-Baltimore Stock
Stock
Exchange_____
Exchange.
_
226,361,534
507 Place D'Armes
11.
Vancouver
Montreal
12.
Calgary Stock Exchange.
13.
Stock
Exchange
6,225,141
76,543,027
_
12,264,812
182,760,164
10. Detroit Stock Exchange.
6,033,754
210,701,994
Exchange
Angeles Stock Exchange.__
Exchange
Calvin
Shares:
1,610,671,701
Exchange-_
Curb
1951
$18,215,456,183
New York Stock Exchange
York
-
Values
Exchange
2.
IN
Trading
5,024,222
56,178,087
51,264,920
33,572,927
84,674,464
Cincinnati Stock Exchange
23,182,886
741,298
14.
Pittsburgh Stock Exchange
22,839,444
1,365,882
15.
Washington Stock Exchange
6,087,022
323,895
16.
New Orleans
2,431,262
70.603
17.
Salt Lake
2,391,152
16,561,654
18.
Spokane Stock Exchange.
1,455,038
3,413,659
19.
Winnipeg Stock Exchange
1,165,046
2,322,511
20.
San Francisco Mining
625,279
5,378,551
21.
Richmond
554,386
10,962
22.
Wheeling Stock Exchange
23.
Incorporated 1932
Colorado
24.
Chicago Board of Trade.
_
j
IN THE UNITED STATES
Stock Exchange..
Stock
Exchange
_
_
.
f
Calvin Bullock
One Wall Street
Incorporated 1952
New York
Stock
Stock
Exchange
Exchange
_
♦Including rights and warrants.
356,830
8,322
240,581
_
Exchange
263,726
17,282
2,084
Voiume 176
Number 5164
.
.
.
(1637)
The Commercial and Financial Chronicle
25
MATTHEWS & COMPANY
Established 1909
Members:
DEALERS' ASSOCIATION
INVESTMENT
THE
220
STOCK EXCHANGE
TORONTO
THE
Bay St.
Toronto, Ont.
-
-
OF CANADA
EMpire 4-5191
Also
J.
C.
New York, Montreal,
Wire Connections with
Private
Direct
Wires
Chicago.
Dallas, San Antonio, Houston.
with
Allen, C. C. Fields & Co.; Eric M. Duggan, D. M. Duggan Investments, Ltd., Edmonton,
of Edmonton Stock Exchange; A. J. Trebilcock, Executive Assistant to President, Toronto
Exchange; George E. Snyder, Jr., Geo. E. Snyder & Co., Philadelphia, President of PhiladelphiaBaltimore Stock Exchange; Hon. Dana H. Porter, Attorney-General of Ontario
L.
President
Stock
DOHERTY ROADHOUSE & CO.
MEMBERS
THE TORONTO STOCK EXCHANGE
THE
OF CANADA
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DEALERS'
INVESTMENT
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OF ONTARIO
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255
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1211
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—
Haileybury and
Wire to G. E. Leslie &
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President
of
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Dominion
James
Bank;
San Francisco Stock
B. White,
J. B.
White &
—
Timmins
McCuaig Bros. & Co., Montreal
Co., Montreal
& Co., New
Reynolds
Robert
Kirkland Lake
New Liskeard
York City
Co.; Ronald E. Kaehler,
Exchange; O. E. Lennox, Chairman, Ontario Securities
Ottawa
Commission,
Partners
Thomas
H.
James
D'Arcy M. Doherty
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John M. Rogers
Cochrane
W.
iiMiiiii'nimwmrainiii
in
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i).
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Correspondent
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v
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...
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on
to make use
of
our
service
all securities traded in Canada.
P ARL MARKS & P.O. INC.
50 BROAD STREET... NEW YORK 4.
N. Y.
TEL. HANOVER 2-0050...TELETYPE: NY
Reyholds & Co.
1-971
Members New York Stock Exchange, New
and
120 BROADWAY
FOREIGN
EMPIRE STATE
philadelphia
SECURITIES
york
•
CORRESPONDENTS THROUGHOUT THE WORLD
chicago
•
syracuse
durham
Other Principal
•
•
•
NEW YORK 5, N. Y.
•
BUILDING, NEW YORK 1, N. Y.
allentown
•
bridgeton
raleigh
York Curb Exchange
Exchanges
•
winston-salem
•
lancaster
•
east orange
•
elgin
Direct Private Wires to all Branch
•
scranton
•
morristown
•
vineland
chicago
Offices and to
heights
our
Correspondents in
detroit
John
B.
Braithwaite, Chairman
London
Stock
Exchange
of the
•
san
des
francisco
moines
•
•
buffalo
sioux
city
•
•
lincoln
toronto
•
omaha
*
*>.
Ml 1
26
(1638)
The Commercial and Financial Chronicle
S.
.
.
.
Thursday, October 30, 1952
J. BROOKS & COMPANY
MEMBERS
THE
TORONTO
BOND
&
STOCK
SHARE
SUITE
EXCHANGE
BROKERS
300
185 Bay Street, Toronto 1, Ont.
TELEPHONE
Direct
EMpire 3-4012
Private
Wire
REICH
Members
39
New
&
York
Service
s
to
CO.
Curb
Exchange
Broadway, New York
DIgby 4-6223
James
E.
Houston,
Robertson
Cradoch
Have You
a
natural
Morgan; Roy V. Rittenhouse, Rittenhouse A
Co.; John E. Grassett, J. E. Grassett A Co.
Co.;
Eric
Cradock,
Share in Canada's Future?
Canada's future...
of
A
A
as
a
resources,
result of her
industrial
wealth
facilities,
government and financial institutions and her
people... is bright.
How
you share in this future ? By
of
companies . . . whether
can
stocks
owning
utilities,
banks, pulp and paper, base metal, manu¬
facturing, oil or others
which will give
you a participation in
their growth and
development.
...
We will be
large
or
glad to discuss investments
small ... in Canada's future at your
.
.
.
T.
convenience.
Burns
J.
McKenna,
Seabourne
Montreal Stock Exchange, Montreal; W. Noel Binns, Goodwin Harris A Company;
Livingstone, S. R. Livingstone, Crouse A Co., Detroit, President of the Detroit Stock
Exchange; J. E. McKenna, Montreal Stock Exchange, Montreal
R.
Bros.&Companq
Members:
The Toronto Stock
Exchange
Direct Private Wire to New York
TORONTO
44
OTTAWA
King St. W.( Tel. EM. 3-9371
78 Sparks St., Tel. 294U
iiflpl
ijllPlllfi
;
CANADA
and
the
INVESTOR
Now that
Charles
Roger,
Chartered
S.
prices have declined sharply, what
are
R.
Trust
Mackellar
Co.; William S. Gray, Locke, Gray A Co.; Strathy
A Co.; Frank C. Cassidy, S. R. Mackellar A Co.
R.
Mackellar,
the
profit prospects in Canadian securities?
A report prepared by our
months of careful analysis
Research Department, after
and study, shows a practical
approach to this question. It discusses Canadian growth
companies, most of which are listed on the Toronto
or New York Stock
Exchanges, and includes:
Companies with
a
diversified stake in Canada's
CANADA
Service
When
all Securities
require information or quotations
Canadian Industrial, Mining or Oil
Company, our complete facilities are always at
your disposal.
Consult us—we can help you.
economy
on
Well-known operating companies
Special situations
Ask for this list of Canadian
on
—
you
any
companies CC-44.
Direct
Private Wire
Service
to
Montreal and New York
BACITE & Co.
MEMBERS NEW
YORK STOCK a CURB EXCHANGE
Ross, Knowles
TORONTO STOCK EXCHANGE a OTHER LEADING EXCHANGES
36 WALL ST.,
NEW YORK 5, N. Y.
MU 6-5900
Midtown: CHRYSLER BLDG.
TORONTO
Dl 4-3600
OFFICE: 36
(Open Evenings)
MELINDA
1879
Orders
through
STREET
and quotations
our
private
Co.
Exchange
Investment Dealers' Association of Canada
and The
330 BAY
ided
&
Members: The Toronto Stock
expedited
wire
system
Hon.
L.
Ontario,
Doherty
O.
Breithaupt,
Ottawa;
Road house
Toronto
Lt.-Governor
D'Arcy
A
Stock
Co.,
M.
Doherty,
President
Exchange
STREET, TORONTO, CANADA
of
of
Hamilton
Brantford
Brampton
Sudbury
Windsor
Number 5164
Volume 176
(1639)
The Commercial and Financial Chronicle
.
..
Heartiest
of 100
Direct wires
V.
Exchange
its completion
upon
C.
congratulations
the T or onto Stock
to
27
years
of service.
Montreal and Toronto offices
to our
May, Harcourt, Poupore & Co.; L. W. Miskelly, Harcourt, Poupore & Co.; Edwin T. Lynch,
E. T. Lynch & Company; Norman J. Robinson, E. H. Pooler & Co.
Established 1865
Members:
Stock
New
York Stock Exchange,
Montreal
Exchange,
Curb
New York Curb Exchange,
Market,
ana
Toronto
other leading Exchanges.
Main Office
1
The
is
WALL
STREET—NEW YORK 5, N.
Y.
development of Canada
in the growth
mirrored
and maturity
of the Toronto
We are
of our membership
great institution.
Stock Exchange.
proud
in
S.
A.
Trust Company;
Smyth, Crown
A.
E.
Osier
&
this
C. K. Coulson, National Trust Company; Redvers Brown,
Co.;
L. E. West,
Louis J.
West &
Co.
Newling & Co.
Members The Toronto Stock
ROWLAND
GLANDFIELD
ROBERT
CHARLES A.
KENNETH H. McVITTIE
RICHMOND
80
S. NEWLING
JOHN W. HICKS
G. STEEN
JOHN
Exchange
STREET
LISTER
WEST
TORONTO
Telephone
John M. Easson, John
Davidson
M. Easson & Co.; Donald M. M. Ross, Moss, Lawson & Co.; David R.
& Co., Kitchener, Ont.; Donald G. Lawson, Moss, Lawson & Co.
Cable Address
EMpire 3-4271
RUBAINCO
Dattels,
WATT & WATT
CANADIAN
STOCKS
Orders
executed
Established 1908
BONDS
-
V
■
'
Members
all Canadian Exchanges at
on
Toronto Stock
regular commission rates or traded
in
New
York
in
Winnipeg Grain Exchange
funds.
States
Exchange
Montreal Stock Exchange
United
Investment Dealers' Association of Canada
♦
Branch Offices:
CHARLES KING & CO.
Fort William
r
Port Arthur
Members:
New
New
York
Stock
Toronto Stock Exchange
Exchange
Montreal Stock Exchange
York Curb Exchange
Montreal
61 Broadway
Curb
•
Teletype NY 1-142
.
Telephone:
Branch Offices:
EM 3-7151
Toronto
;
Montreal
.
TORONTO
'
»
New York 6, N. Y.
DIRECT PRIVATE WIRES
WITH
»
Market
Telephone:
WHitehall 4-8974
.
London. Ont.
Cables:.
Wattwatt
CONNECT NEW YORK
AND
MONTREAL
I.
K.
Johnston, President, Imperial Bank
of
Canada,
Toronto
A?
6-8 Jordan Street
TORONTO, ONTARIO
|
The Commercial and Financial Chronicle
28
.
.
.
Thursday, October 30, 1^52
(1640)
cdchievement
For
is
an
an
Institution to flourish for 100 years
such
achievement. For
an
institution to
by far the most important
become
Exchange
worthy.
is
in Canada
even
Stock
note¬
more
Exchange,
Such is The Toronto Stock
now
celebrating its 100th Anniversary.
We
be Members of The
Exchange, and to pay tribute
honoured to
are
Toronto Stock
generations of men who, over the
have made The Toronto Stock Ex¬
change the leading market place for stock¬
to
the
years,
S.
J.
brokers and their clients.
Member The Toronto Stock
Exchange
KITCHENER
SAULT STE. MARIE
LONDON
Wilson,
Company
The Midland
TORONTO
Brooks, S. J. Brooks & Company; John Kinross, S. J. Brooks & Company; Roger A.
Goodwin Harris & Company; E. R. Pope, Ross, Knowles & Co.; Derek G. Simpson,
The Midland Company
H. Roadhouse, Doherty Roadhouse & Co.; Alex. W. McLennan, R. A.
Daly Co. Limited;
Hope, Dominion Securities Corpn. Limited; Darcy B. Dingle, Wood, Gundy & Company, Limited:
J. R. Lowery, Chairman, Home Oil Corporation
Thomas
John
McLeod,Young,Weir. & Company
LIMITED
Members of The Investment Dealers' Association of Canada
DEALERS IN ALL
CANADIAN SECURITIES
Direct
private wire
The First Boston
Stock orders executed
all
Exchanges
King Street West, Toronto, Canada
Branch
Montreal
on
Office
Head
50
Montreal and
to
Corporation, New York
Ottawa
Hamilton
Offices
London
Winnipeg
New York
Correspondents in London, England
C. E. Abbs, A. E. Ames & Co., Limited; W. G. Malcolm, A. E. Ames <ft Co., Limited;
Hall Securities, Limited, Vancouver, Vice-President of Vancouver Stock Exchange;
Frank E. Hall,
B. L. Mitchell,
Vice-President, Royal Bank of Canada; N. C. Urquhart, Past President of Toronto Stock Exchange;
J. Scott Rattray, Toronto Stock Exchange; G. S. Osier, Toronto Stock Exchange
ROBERTSON & MORGAN
J. BRADLEY STREIT
MEMBERS
The Toronto Stock Exchange
Montreal Stock Exchange
Montreal
Curb
♦
Market
Member:
The Toronto
Stock
Exchange
Montreal Curb Market
507 Place d'Armes
MONTREAL
61
Queen Street
OTTAWA
38
King Street W.
Calgary Stock Exchange
TORONTO
Winnipeg Grain Exchange
Roy Robertson
V. S. Castledine
Col. W. E. Morgan
Telephone 5-6731
O.B.E., M.C.
James
E.
Houston
R. H. Tetlaw
Empire 6-6201
♦
Plateau 3971
66 KING
STREET, WEST
TORONTO
Private
Wires Connecting All Offices
Phone:
Benson
J.
L.
Coyne,
F.
H. Deacon
& Co.;
Reg. Findley, F. H. Deacon <£ Co.
EMpire 3-7477
v
Volume 176
Number 5164
.
.
.
The Commercial and Financial Chronicle
(1641)
INVESTMENT IN CANADA
Canada
has
much
offer
to
securities. We shall be
the
in
field
glad to send
ENQUIRIES
of
you
investment
selected list.
a
INVITED
KIPPEN & COMPANY Inc.
Established
Investment
ST.
607
JAMES
1922
Securities
STREET
WEST,
MONTREAL
Tel. UNiversity 6-2463
Members
Herbert
B.
Bell, Harris & Partners, Ltd.; Ernest Godwin, Crown Trust Company; J. Douglas
Bulgin,
Securities Corpn. Limited, Winnipeg; A. B. Ramsey,
Guaranty Trust Co., Toronto
of
The
Investment
Dealers
Association
of
Canada
Telephone EMpire
3-5067
Dominion
L LYNCH &
COMPAH
Members Toronto
See"!™'
Stock
Orders Executed
on
All
Exchanges
Inquiries Invited
DOMINION BANK
BWLDWO
.
toronto
J
CANADA
Prompt Execution of Securities Orders
Private Wire
oronto
OPPENHEIMER, VANDEN BROECK & CO.
Members
Donald
E. Stewart, D. E. Stewart & Co.; Leslie G. Mills,
Mills, Spence & Co. Limited; John
Dickson, Dickson, Jolliffe & Co.; H. G. Stapell; N. D. Young, Dominion Securities Corpn.
Limited; J. D. Woods, A. E. Ames & Co., Limited
Members
S.
j.
,
New
New
York
Stock
York
Curb
Exchange
Exchange
(Associate)
4® Exchange Place, New York 5, N. Y.
Telephone: DIgby 4-4600
direct wire service
And Now
.
coast-to-coast
..
and
across
Canada
J. A. HOGLE & CO.
Established 1915
OFFICES
York
New
Los
Reno
San
Angeles
Diego
Members
S.
Leslie,
Frank S.
Leslie
& Co.; A. McFadyen, Page, Hersey
Gardiner, Watson & Company
Co.;
George
R.
Salt
Pocatello
Beverly Hills
Canadian
Frank
Spokane
Riverside
Boulder
of
all
principal
Correspondent:
Lake
City
Ogden
Idaho
Denver
Butte
Falls
Missoula
exchanges
Locke,
Gray
&
Co.
Gardiner,
LOCKE, GRAY & CO.
38
Melinda
Street, Toronto
Members:
Toronto
Stock
Exchange
Calgary Stock Exchange
Vancouver Stock
Exchange
Investment Dealers' Association of Canada
CALGARY
VANCOUVER
413 Granville Street
Direct
private wires to
308
our
-
8th Avenue West
Western Offices and
to
J. A. Hogle & Co., Members, Netv York Stock Exchange
G.
R.
Gardner, President, Morrison Brass; Frank D. Lace, Matthews & Company; Paul W. Matthews,
Matthews & Company; Edward A. Nanton, Osier, Hammond & Nanton, Winnipeg
29
30
The Commercial and Financial Chronicle
(1642)
.
.
.
Thursday, October 30,
1952
M
i ^
t >;■
Canada
General Fund
Prospectus from authorized investment dealers or
VANCE, SANDERS & COMPANY
111
STREET
DEVONSHIRE
BOSTON
Howard
NEW
YORK
CHICAGO
6i Broadway
izo
LOS
South LaSalle Street
210
ANGELES
Roth, Merrill Lynch, Pierce, Fenner & Beane; Charles F. W. Burns, Burns Bros. & Co.}
Charles P. Fell, Matthews & Company
West Seventh Street
Direct Private Wire
to
our
Canadian
Correspondent
Sptiktn Suattfl & Co.
MEMBERS THE
TORONTO STOCK
Orders executed
Broker
as
or
EXCHANGE
on
net
basis.
L. D. Sherman & Co.
30
PINE
STREET
NEW
Telephone WHitehall 4-5540
YORK
5,
N.
Y.
Teletype NY 1-2233
J.
A.
Grant, Playfair & Company; Robert P. Howard, Gairdner, Son & Company, Montreal;
Simpson, Playfair & Company; D. A. Perigoe, Gairdner, Son & Company
Edward W.
Mclaughlin, reuss & go.
Members
New York Stock
New York Curb
Exchange
Exchange (Assoc.)
Commodity Exchange, Inc.
BOND BROKERAGE SERVICE
and
Corporate Public Relations
ONE WALL STREET
NEW YORK 5
Telephone HAnover 2-1355
Teletype—NY 1-2155
P.
T. Kelly, Minister of Mines for Ontario, Ottawa; Lloyd G. Thompson, E. H. Pooler & Co.;
E. R. Pooler, E. H. Pooler & Co.; H. G. Stapells, Tax Counsel for Toronto Stock Exchange
Frame, McFadyen & Co.
INDUSTRIAL, MINING AND
OIL
25
SECURITIES
KING STREET W.
—
EMPIRE 4-5161
TORONTO
Members
The Toronto Stock Exchange
Kenneth B. Andras, Andras, Hatch <ft
McCarthy; G. Fielding Biggar, Biggar & Crawford; L. W. Scott,
Ross, Knowles & Co.; J. Dumaresq Smith, S. J. Brooks & Company
■
Volume 176
Number 5164
.
The Commercial and Financial Chronicle
.
.
(1643)
Continued
from first
To
page
illustrate, I need only mention
the
recent
natural
Role of Toronto
iron
foundland
nickel
what
lands, of our rich mineral deposits, of our extensive forest wealth,
of hydro power and of a fine peopie. It is easy for us today as one
Exchange—an association of brokers. They, in their first
resolution,
pointed out the desirability of interesting capital in Canada and in
of
fixing the attention of the
the
world
the advantage of Canadian
curities
doing
generally.
so
se-
They said, "In
consider that
we
discharging
we
are
important duty to
the establishment of
this Association and are
helping to
Canada
an
by
promote
and
business
of
extend
the
the
general
country
greater circulation
This, of
through
of credit."
course, sounds very
com-
monplace today. We say that we
are doing the same
thing, that the
desirability of such a policy is obvious.
Turn back the
,
ever,
_
leaves, how-
,
_
hundred
one
things
what
1852
were
then Canada
was
the
to
talk
of
credit
but
in 1852 money for investment was
and
scarce
there
hard to
obtain.
What
Ontario
wheat
land
and
nothing,
chronicles
of
a
was
pretty
Quebec of today.
:»;
was
far short of what
very
required in
land
a
of
several
the
other
prov-
inces, and the creation
of a major
chemical industry in Ontario
and Alberta,
new
land
own—a
we
and
of
honey,
a
eat
bread
and
a
are
which
in the past dozen
years,
lion
has
been
invested
needed
j
Ontario, for
now
over
half
a cen-
tury.
1852
responsible government
had only been
accomplished. The
?
-
-
in
As
umc
o
various
ing,
branches
of
manufactur-
have strong economic advantages which make our position
we
r
favorable in the competition
very
for
xi
—
foreign trade.
Exchange
,
we
not
nearly
as
vulnerable to shifts in
export
demand, nevertheless, we cannot
,
years after, in 1952, minimize the
importance of forcommemorating the 100th eign trade to us. Obviously the
are
+ ill
with
Canadian
our
dependent
are
which
entering
let
a
life
0f
+he
only 20 years
being
; "Muddy
;
a™Lit: AWas stll1
.muddy
were
from
little-' town.
unpaved/it had
its
population
or
commercial
a
Its
*
>streets
no
sewers,
small to
too
was
millionsj>f dollars of
The
ital.
cap-
Stock Exchange on Bay
Street is
7
of the
one
roads of
cross
the
financial - world,
a
market
support any large scale industrial where Canadian and other issues
biographer
-Governor
of
at
"There
enterprise.
Lord
the
was no
Elgin,
the
remarks—
time,
real
The
political life;
traded and dealt in.
are
companies
Canadian
industries
and
shares
colony
the founders of this Stock Exchange discharged an important
look
of
before
within
it
has
itself
learned
for
the
to
center
The
fact
colonies
ish
duty to Canada when they sought
to fix the attention of the invest-
power."
is
that
going
North
the
to make
America
scattered
Brit¬
up
ing world
Canada Today
ing of today and Canadian
panies
were
little
known
com¬
and
little considered abroad.
In
fact,
Canada
in
1852, what is
being by-passed
was
cause* of
of
could
see
be-
sands
to
on
the
were
American
pushing
palachians
to
seaboard
the Ap¬
great
fertile
across
the
fields of the American
West, to
the exploitation and ucvciuuiiieiiL
ju
aim
development
of what were considered to be the
boundless
capital
time
and
for
mature
of the United
resources
States of America;
The world and
industry- had
the
little
colonies
scattered
of .British
America. ,They
be' had
see
half
im-
North
were attracted
other American vistas.
could* not
little
that
the Canada
continent
a
by
The world
to
and
a
treasure-house of resources. An¬
other 50 years had to pass before
a
great Canadian would prophesy
the 20th Century was Can¬
of
Toronto
courage on
was
formed
1852, but it took
their part in those un¬
certain
days to promote an idea
which they published to the world
as
"helping to
tend
the
country
promote
general
through
and
business
the
greater
culation of credit."
us
to
see
this
now
of
nadians
more
and
xt
X-
/%
own
hour
an
becloud
their
in
.
x_
•
f
tion
friends
known
mutual
the
have
long
advantages of
collaboration; Well over half the
number of American branch
plants
and
most of the British branch
plants
in
Canada
located
are
Ontario, and if the flow
in
of capi-
investment, ideas and techni¬
knowledge has been in
vor,
it
has
one
way
a
certainly
not
our
fa¬
been
a
street.
growth
out
the
there
whole
an
a
and
through-
democratic
our
com-
assure
us
increased
long-term demand
products. We cannot em¬
phasize too strongly the necessity
of finding the means for
keeping
trade moving,
The
of
the
is
in
inflow
part
of
joining with
That
of
us
our
boundaries
in the develop-
economic
our
sign
capacity.
A normalfo^ a relatively
young nation like
has established a
Canada which
reputation
the
must
second
Canadian
value
Let
bear
us
month
imports
her
in
1952,
exceeded
exports
The
alters the prospects of
an
in
figures
not significant and in
are
no
over-all
Canada According iu preliminary
VdI^Ud' ^cuiuuig to picuxxunaiy
reports'of
to
the
Canadian
Bureau
exports
for
Let
us
keep it bright and clean.
a; year
Govern-
Statistics, total
September
increased
$323,500,000
ago, while imports climb-
ed-sharply
to
that
move
United
$349,100,000
from
$31L500 000.
Capital
Exporting
should
it be
Nation
"At
the
reluctant
forgotten that
Canada itself has become
exporting nation
In
quence.
the
of
a
some
capital
conse-
last
same
dozen
progressed
tually
on
every
a
that
have
we
broad front.
main
branch
of
Virin-
dustry has advanced and in some*
phase pushed out in every economic region of this Dominion.
the
iQMOO^Th^
1
'
The
in
the
circulation
^Provement over tne ^Zd,8UU,nnrt
V.
unfavorable balance in the
nine months of 1951,
,
,
,
,
,,
.
One of the factors leading to
the export deficit is reported to
be a decline in shipments to the
United Kingdom, which had been
buying heavily in Canada
through the earlier months
all
de-
persistent dollar shortage
recently cut down on
its purchases.
a
but which
Canadian
shipments to Britain
dropped almost $10,000,000 during
the month
amounting to $43,000,compared with $52,800,000 a
year
ago.
Imports
from
Britain
the
on
other
hand, which had been lag¬
ging sharply earlier in the year,
frorr^$28 600 OOO^vear
$31'500'000 from $2^00,000 a year
a^°'
$3x^0 nno
An
dilemma
apparent
nection
faced
with
the
Britain
to
the
...
_
con¬
trade is
effort of
revive
the
pre¬
has had with
Commonwealth
..
in
her foreign
by Canada in
continues
that
strued
as
nations.
...
,
we
A
new
St.
of
in
scheduled
is
London
next
to
month,
the
O
and
pipeline
seaway
power
which
telling of such
member
a
wealth, she is
nomically."
land
one
is
it
the
of
nvt
It
with
con¬
Britain
is
quite evident that consid¬
opposition
will
be
mani¬
fested
among Canadian manufac¬
turers to any serious reduction in
duties which might result in
on
weeks,
it
market.
A
few
the
urged at a meeting in
,nuuun&
Montreal of the Executive Coun-
ago,
cil
waa
was
»
the
of
ers'
a,
be
measures
«
Canadian
Association
dian
Manufactur¬
that
adequate
my
taken
the Cana¬
Government to prevent such
contingency. At the meeting, it
a
was
pointed
be
by Canada, of the "es¬
clause" in the general agree¬
out
that
should
use
made
cape
ment
tariffs
on
similar
and
in
trade
the
to
manner
a
United
States and adequate opportunities
should be provided by the gov¬
ernment
for
hearings by inter¬
ested parties under this clause.
has
It
been
made
an
so
considerable
exports of
as
concerned
States
much
In
now
from
hope of
"In
World
four
Canada
War
times
any
as
canned
cheese
and
cluded
from
"In
such
salmon,
apples
the
are
British
with
are
little
very
change in the foresee¬
other
stantial
lessening
hibitions
aid
of import pro-restrictions, it will
and
export trade in Canadian
II
as
products,"
says
the
statement of the Canadian Manm-
facturers'
The
Association.
Council
also
issued
a
further
warning regarding trade^
negotiations between Canada and
Japan. It declared that extension
of the
Japanese of most-favored-
nation
treatment
would
cause
dangerous situation
in
a
many
Canadian industries.
Keith C. Hunter
to
The
BEVERLY
Financial
HILLS,
Opens
Chronxcli)
Cal.—Keith
Hunter is conducting
Ues, uPJne?s
Monica
Santa
a
s®c"rF~
0tiic®s at
Boulevard.
Two With Kinnard
ex¬
bacon,
now
ex¬
market.
circumstances,
tucuuiBioutco,
a
goods
consumer
and
Britain.
as
addition, such former staple
ports
they
effort in
words, unless con¬
vertibility of sterling, if accom¬
plished, carries with it a sub¬
the
buys
Cana¬
able future.
eco-
biggest market
for Canadian produce, the United
was
by
that
developing Empire markets which
today amount to very little as far
(Special
"Whereas before
Britain
stressed
manufacturers,
have
Common-
longer
no
wnuld
a
ri
embarrassing position
politically Canada is
argued, it would he
be
shone brighter.
In
xir
place the Canadians in
while
still
but so far our ecohas been sound and
the
,
would
on
and
.
.
talked
suggest that We shall
sail
in
smooth
waters,
Lawrence
.„
credit
the threshold of many
developments such as the
project
fe*e<i
a nation of only
14,000,000 the risk of a loss of
in¬
dependence with respect to the
manufactured
ministers
held
today,
world
progress
are
is
_
of
L
not
it;
it
might involve for
wealth
be
for
from
and
break
a
meeting of the British Common-
extremely
always
Com¬
because;
anything that might be
not
extending
far
outside
of
boundary of our country.
do
the
hope for recovery of the sterling;
dian
of by the men of 100 years ago is
I
abandon
association
domestic
whether Canada will change her
IvAnrl
postwar trend away from an
economic link with the British
Empire.
As stated in a special
dispatch to the New York "Times"
by P. Jr Philip, "such a policy
±1
-
exported
a
somewhat
greater
amount of capital than we have
imported.
We are pulling our
weight
a
"dumping" of British goods
fJ1!1
,
—
W*U bring the natural gas of Alberta to the Ontario and Quebec
markets
and I am convinced
that, given reasonable tranquillity
in international affajirs, the longterm prospects for ^anada never
way
brought
foreign
in
A striking feature of Canada's
development in the
last
dozen
the
had
enterprise
have
increased
by
L
Lill
w
L
about $4 billion, so that we have
investments
our
nomic
is
which
when it will probably be decided
years
the
give rise to
time, Canada if-j
same
to
monwealth
com-
other
all
in
ferential tariffs she
population
141/2 million and a province of
less than 5 million (at the
present
about 4,850.000) these
things are
nothing short of a revelation.
years
pluses
spite
alienate
and
United States."
'
September's export deficit
months,
might
States
trade barrier war."
new
area
of
$341,200,000 from
Great
A
nf
p
way
favorabi! balanceofUaTfor
for
good prospects, security and fair
dealing,
Nor
nnl
ic
exnansion
By WILLIAM J. McKAY
For
reflection
a
capital—a
that others outside
are
Credit
Vt
000
strong exchange position of
dollar
our
Far
nation with
our
coun-
of trade restric-
causes
munity of nations should
the
■%
other
tions, particularly with the United
Kingdom, the high rate of popula-
b,y Ca¬
friends
our
nation
a
is known
American
the
It is easy for
when the world
to
province and
a
ex
cir-
their
have in Ontario and
we
which
For
in
in
United States and Britain than
ever before.
It has been stated,
not unkindly, that the Americans
have rediscovered Canada. PerhaPs the rediscovery applies more
*0 some of the other provinces
than to Ontario, for we and our
cal
in
doubt
Today
Canada,
ada's, and yet another 50 years
before the eyes of the whole world
would turn to this great land as
tion of brokers which
trading
vision.
tal
It is commonplace
today to read
of the proceedings of an Associa¬
the varied
a day and who paid $5 for the ment
that
the land of opportunity.
today
with
But let us keep in mind that
export a nation must also import. If we can find a cure for
of 100 years ago
offices in rotation for half
the
march. People
migrating in countless thou¬
were
and
was
men
of
so
on
Ss toKeUhiSd. 0«
mitted
States
-
Canada
dimly but regarded
confidently? Those 12 men who
carried
now
the
which these
so
spectacu^lar^develon-
the
What
basis,
basis, underscores
trade
for
Canadian securities
generally.
little
were
known or appreciated. The name
''Canada" did not have the mean¬
were
the advantage of
upon
for
to
long ceased to be unknown. Their
are dealt with in the other
countries of the world.
Indeed,
that pale and distorted reflection which is apt to exist in a
capita
capita
tries.
have
only
do-
Our position as the
fourth largest trading nation in
the world," and The largest on "a
world,
the
a
need
the
un¬
Their
eood
Canadian Securities
the
mestically.
per
per
anH
our Provlnce anc* our country, to
place emphasis the development of our resources,
we
»
exchange annually of millions of
newsprint is far in excess of
shares and the turn over of hun- quantities that we can
absorb
ver7 dredsof
.
thpv
holds
to
are
ennfidenee
its founders
as
thpm
moLar*
npvt
mav
same
kevs
erable
removed
wich
hard, honest work.
to succeed.
are
of
way
and
was
and
the
un-
lion. "Toronto
thp
unon
servjrp
courage
Toronto
when tjjev
development,
upon
means
we
+
_
ahead
and
this
officers
the
eorner-stone
ment's
are
not
at
the
of
Exchange
weu
forget that the standard of liv-' iunction
still
ing and the services which go t still thp
*
~
domestic market has
our
expanded and
Today, 100
we
lumber,
indeed, in
and
paper,
us
members
stock
Qf
1
congratulate
have
forge
we
we
Ca-
-
•
Continent's Third Largest Stock
and
political strife which had rent the
"^niinfTV
and
While
'
/ people of those days were only 15
'vYears remoyed from rebellion
pulp
has
been justified.
—
chemicals,
ago
years
not weaken it.
$32 bil-
xt—
aluminum,
100
Upon this
transportation and capital works, nadian
development and the pleasIn fact there was so little money
ing feature of this investment is
in the country that payments in
that it has taken place in fields
cash were scarcely known. Wood where
we
have strong economic
and farm products were considadvantages.
In other words, we
ered as cash
when
paying the are not creating a series of vulgrocer.
As a matter of fact the 'nerable
industries which may be
want of money was one of the
toppled at the first ill wind.
In
"
great handicaps and retarded the the fields of
iron ore, oil,
nickel,
development of Upper
Canada,
j
of
men
strong
and
can
Our financial position is
provided we ourselves do-
engage.
lack
may
scarceness
if
No Vulnerable Industries
was
ing and extending general business through a
greater circulation
/
/
and
fident
in the past ff-
now as
we
our
land whose stones
and out of whose hills
and
in mind that
telling of an- nancial resources are a
measure
description which of the expansion in which
barley
where
without
of
discoveries
new
the
ago
land,
might be of
in
Territories,
the
great
electric
power projects in Ontario, Quebec
and gratifying as that money was
it
Courageous and far-sighted
between Upper indeed were those men who in
Canada, the Ontario fiis background talked of promot-
Lower
...In
.
Columbia,
titanium
from Great Britain
was came
SJ Canada^A Hundred Years Ago -of credit.
•
the
of
the discoveries of uranium in Saskatchewan
and the North West
great exporting nations of
world
sharply- divided
and
•
British
of
years
other
,
In
years.
different. Canada was
not.lheCanada of today. Indeed,
,
Sas-
and
reminded
3,000
„
men
and
and
in
and
Manitoba, of iron
we
years ago a small group of knows of our invigoi
invigorating friend- the new aluminum
developments may dig brass. Indeed, the dim
met in Toronto to organize ly
Df our
climate, of our fertile farm jn Quebec and British
Columbia, and uncertain vision of the conis now The Toronto Stock
dred
the
Alberta
production
Quebec,
of oil
the development of
Ontario, Quebec, New-
in
ore
the
in
gas
katchewan,
Exchange in
Canada's Economic Growth
on
discoveries
31
it
11(
is
10
grave
a grave error
error
for Canada to take any part
in
a
(Special
to
The
Financial
MINNEAPOLIS,
uel
J.
McGhee
iVibUiicc
Guello
have
udvc
Chronicle)
Minn.
and
—
Sam- v
Robert
E.
lumcu
joined the staff of
cue
otaxx
Tohn C
Kinnard & Co
71 Baker
John G. Kinnard & Co., 71 Baker
Arcade.
,
^
22
The Commercial and Financial Chronicle
(1C14)
Continued from page
.
Thursday, October 30,
.
.
the abandonment of various con¬
3
sumer
Outlook (or the Domestic Economy
„
.
credit
awaited stock readjust-
The long
for Missouri-Kansashas finally been approved
ment
plan
Texas
exas
including any sinking funds, and
after a capital fund of the larger
of either $2 million or 2lk% of
taken
taken off is
gross revenue.
will
ferred
going to have a minor
minor.
effect. Let me underline
The average weekly wage in a
more favorable over the last few ament spending has risen from a manufacturing industry is about
months, with the net result that total annual rate of $15 billion $65 Let's say you get one of these
the lag in the first quarter of 1952 before Korea to a second quarter houses that costs $10,000.
Let's
behind the first quarter of 1951 rate of $52 billion. It currently is say you have a mortgage of $8,000..
bas been made up by more fa- running at about that level, maywhnt'c hie met for rarrvine the
vorable year-to-year comparisons, be a little higher. The goal is now ^ nnn
fM.P9 $7 00 to $7 50 a
The latest week was 6% above the set at $58 billion. This means that ?h' KariH
that's $60 a month
corresponding 1951 figure.
practically all the stimulating ef- Th t . ,'
f
f rarrv;ng a $in»
'
y;--',-feet to the economy that we will 00Q .
:
in the neighborhood
♦
Price Changes
derive from the armament pro- 0f $90 to $100 a month including
Prices show one of the most in- .gram has been felt. While a side- t * andfuel and the other odds
teresting of
all the changes, wise movement is anticipated, the and end
First, armament spending. Arm-
The class "B" prebe non-cumulative.
over
After payment of the regular $2.50
little different than the one that
rate it will participate equally
had been widely rumored and dis- with
the common in any divicussed in the financial community dends, share for share. This class
for some months. There was some
"B" stock may also be used in
improvement in the treatment ac- payment for common stock pur- Wholesale and spot prices reached next major change in armament
corded the old preferred in that
chased through exercise of the their peak in tne first quarter of expenditures, within the framethe
dividend
rate on
the new perpetual warrents. The old com- 1951.
Spot prices refers to the work of the present program, will
class "B" preferred is now set at mon will receive one share of new sensitive daily index of spot prices be downward. So this is a minor
5% as opposed to the original ex- common for each three old shares which is published by the Bureau stimulating lorce over the next
pectation of no more than 3%. and, also, a perpetual warrant to of Labor Statistics. Those figures few months, a neutral force for
Directors, and the terms
publicly announced a little
a week ago. The proposal is
the
by
were
has
billion since regulations were
off.
Regulation X- being
$1
Sustaining or Expanding Forces
1951. They have been somewhat
rp
Missouri-Kansas-1
the first quarter of
bulge in
Already in¬
increased by,^
credit controls.
stalment
the
1952
-
.
sr-sr -ass « sesskt *—" s s aswrs ssn rta ssjis%
Immediately after
Under the plan the par value P®ak of
R°had faii^to 294^ th^prwent^ro^^
in
of the
the
of prefered stock outstanding wil of 1951
It had fallen to
uncertain.
an-
terms
nouncement
moderately, remain unchanged but the annual
The rise, however, was short lived dwklend
and was followed by a period of ducedI to $3
335.f2°,
revenues
softness. The common, wh.ch had
at rec nt levels th
p
ferred
strengthened
With
staged
prior to the an-
a recovery
nouncement, settled down close to
the year's low once the terms were
nlaTis designed
a/ u/ large
to elimin
The
arrears
dividends
the
on
7%
of unp M
cumulative
preferred stock. As ..pointed out by
the
no
be
hope for the payment of these
cash
back dividends in
further
a
admittedly
good
in
which
very
earnings
the preferred amounted to
on
$9 94
She
of
retained
rriusT be
ear nines
only
some
in
Obviously
share
a
12
the
period of
a
business,
railroad
of
period
Even
months ended Aug. 31, 1952,
was
with
even
prolonged
conditions.
boom
could
there
management
the prooertv for capital improve-
^so
ments
that
Sof
such
even
would amount to 52,099,00).
Charges to net income before a
riving at earnings
or the new
W000. For the
if,
indeed,
the
of
payment
..
„.
„
best
still
must be
in
this
wh
such
cult
class of security
case
the
"B"
and
thrscbeU D;
the connected
r<0
be
even
their
partially
of
Lester,
Hnno
through
new
the
common
new
value
have
it
a
is
common.
just
Of
To
Ryons
of any
as
practical
to
necessary
one
course
strong
argument the management will be
able to
(Sp,ci«i
Ri^
F
SS"Sith'
232
the
summated
the
no
old
plan is
th.
a™™
with
iTc
'
cw-ncwK'
to
members
the
each
share
will
receive
terms
old
of
one
of
7%
the
San
which
peak
of
new
class "A" 5% preferred, one share
of class "B" 5%
preferred, four
shares
of
new
common
perpetual warrant to buy
of
common
and
a
What
*
has
hannenpd
nf
and
in
nlant
primarily
ment
to
thp
the
stock for $10.00.
Both
par.
The class "A" dividend shall
have first preference and may be
paid either out of earnings or sur-
plus. It will be cumulative to the
extent
of
available
net
income.
of
,.
^
chronicle)
financial chronicle)
the
New
York
and
in
imnnrtant
fir!
hntA
nit
o
n
n
uptL1S a we
T. nnf Zl sti11
m
^
n
a
clined.
erators,
television
sets,
and
the
n
That is how
.
-
L,anlel Keeves
BEVERLY HILLS,
Calif.—
James E. Tucker has become af-
duction
-
.
at
fixed
durables that are
In addition to these unfilled or-
ders, as of about a month and a
half ago there was still some $70
It is all very well for economists
us havin^ a new
Diateau
Pf
ing policies of both consumers
and businessmen in recent months.
The National Association of Purchasing Agents, which makes use*u} surveys each month in their
fbat
and
7 5 to 8%
be normal
saviags is going
But the fact is
over
the
haf over
have rareW
jngs j for one
0f the 10%
g% figure
a
vears we
a
saT-
in
skentical
5%
was verv
figure
level
vear
little later
ago
and
i
to 60-day basis^tor commitments,
which is about the shortest we
bave had since the pre-Korean
Period. While this means less
pressure for advance now, it also
means less maladjustment devel-
°PinS> less over-stimulation, and
the
hence becomes a factor which
am
c0lJdd drag out high level activity^
skeptical about how long we can
continue the present 7.5% rate of
saving That means if the rate of
T.
Vrif^nr-mMr
Unfavorable Factors
we
its
....
/
^ulPment at its peak; commodity
$2.3
billion
in
spending
greater
consumer
quickly?
First,
■••••.
basic commodity
-
A
What
signspretty
priced
Prices down; civilian output down;
The volume of cdfisumer spend- have been easing..-The 2,100 com-filiated with Daniel Reeves &
b ' ^he overall total up.;
ing, which is the other side of the modity wholesale price index * is
w
coin to savings, therefore, can go at the lowest point-it;has reached,
oouth Beverly Drive, memThe Nearby Outlook
up somewhat, more than the rise since the post-Korean peak. Tnfe
bers of the New York and Los
What about the outlook? Two in incomes. Two factors maybe at spot index has been making new
Angeles Stock Exchanges. He was groups of factors may be consid- work~1[he overall total going up, lows in recent days. -$*ie~comQOO
~
..
„
,
ri
.
-
^ available contingent charges, Co.
net income is after previously with Quincy Cass & ered: the sustaining or expanding
and
* forces and the negative factors.
all
sales. For nondurables itc
equivalent to a third of a: month.'
Those are the plus signs.
stand—war-pro- savings goes down to" 6%; 5%, are the minus signs, or
Deaknlant
and
every per cent is equal to about which can become minus
;
.
months
must consider. Savings are Mest estimate stated that most
at an abnormally high rate, concerns are sticking within a 30-
clined0 A^e^amTnTtion of ?hp to talk about
Stock
(Special to the financial chronicle)
„
'
•
financial
Francisco
•K>Ins
share
nn
^231 billion- The-outlook is for industries for a considerable pe?: moderate rise iftdabor income, riod ahead
little change in dividend and farm
Fifth is the conseivative buy-
of
care
nntnnt
montns saies
little change since'the fourth for these orders because they asquarter, of 1951. When-it reached sure a high level activity in many
erniin
take
in
Heorpasps
with $63 bilIion a
months! sI?es
billion appropriated and not let
out in contracts. In other words,
The second sustaining factor is they are not in the unfilled orhigh level income; That has shown ders picture, and we must allow
this expansion, has more than offthp
compares
earlier That is equal to more
three
.
rnursp
and
[hea£
, Hiffh Level incdttie a Sustaining
/
Factor
~
.
!?Laftu.'®nDapp^"®1P*c°"r_sne'
cessive.
one
classes of preferred will be of $50
°!t °a
must do it. .We are w
contraction m armament spending,
was
Exchanges, others—reflected a decline in deHe was previously with Consoli- mand to a point where even the
dated Investments, Inc.
reduced level of supply was ex-
plan
preferred
share
tMrt*
Foulph °n the favoi able side
not in that type of all-out war, But it is the
and I suspect, regardless of which important ; ,
be-
The
o
Under
have
vnn
war
a
affi? he ctvihan economy
P
income. That would suggest that
^Tnh?m
r«" the civilian economy.
a minor increase
disposable inqtippf
? -Par+J
df.crease ln the out" come can be anticipated.
Con^nli*Ha?pH Tn
in the civilian economy was
However ther#%^)ne other asConsolldated In" ^nrtlnn hnf 1^5
Pect of this income problem w^ch
With Walston, Hoffman
(special
substantially
beginning of 1951.
spt
nolif
'
rJixriHpnH
nrpfprrpH
Tn
*
nreviouslv
be-
cnlpfp
choic^-you
KennevT'now
Mont«nmprv
vestments
con-
common,
8
An examination of the
rears
will have no oossible nros"
A N FRANCISCO>' Calif. — civilian economy shows that the
nppt
nl
Clarence J- Richardson is now af- decline which took place in texITl'J
a
r
<~ filiated with Walston, Hoffman & tiles and fof various types of durnari^a
nin^s for an indefinite Goodwin, 265 Montgomery Street, able goods — automobiles, refrigperiod.
nf
poiicp
For
However, if we break this down
durable and non-durable goods,
for durable goods the backlog is
lot of material that is ob- equivalent to six and a half
10=1
stockholders to go along with the
proposal is that if
Me a
interesting
^
duction
FRANHdrn
in persuading common
use
be thinking in terms of having
enough on hand for emergencies,
and moving into latest designs
rather than continuing to accumu-
War Production Counteracts Decline in Civilian Economy
■■■
Harris, Upham '»•
to
can
very
«fu
the^post-Korean^ peak!
"a
*
Joins
.
is
example
low
& 'below
ctli
...
make
split-up of the old
reverse
common.
compen-,
some
Yor^ and^ lS
the
"
dividends is
back
mobths
six months it will take about $35
w
New«wn. has become textile industry is substantially party gets in, there will be some
with
Smith
earning power of the proper,.,
ties, the only way preferred hold- *
for
^tVfour
all-out war
an
would be more interested in it seems to me it will be unavoidfactorS affecting the future able that the powers that be will
than the past—we find that almost
for
,ANGELES; Calif.-'-Her-
common
can
you
the
CivilfaTdi^WegliOcte
(speci,i to thb
LOS
the
sated
thwmon hs to PW * ott
w°rds, when we exam- fectly fantastic rati. wan on you mnnilfaPt11Pinff At the 0f July in
When the record'level. indimtrips thpv
are not in an all-out
a
stocks, the theoret- Angeles
Stock
Exchanges/" He
ical equity of which will naturally
%as'formerly with E F Hutton
have to be diluted.
Considering & Company
ers
owed $1,300 Suppose you had
Qf tbe comprehensive in-
preferred
%j;Lester, Ryons Adds
particularly-'b^s
is
hence
payment of one-third and
j do not say that on the basis you
eal° upthTs maten^at^ pe?-
tals conceal
com-
of
for $2,000 and you made a down
a
w
long and diffr-
a
This
process.
true of
proportion
always
is
conJtraction
taking
place prior to scheduled date.
sibility Qf that
stocks, $5 without exception they are almost
annually. An initial distribution of at or close to their post-Korean
$1.25 a share has been declared.
neak
However
these overall to-
aftectedT
preferred and
large
a
stocks
"A"
approved by the ICC, the
of each
ajvidends on the old pre-
-
at
and holders of at least 75
courts
for a month's rent when the national figures show the average
the p ?n th.e management is ap- dices-and I have given them a other hand, it accumulates at a
Cursf dividends oP th^Pold° ore" Very fast. "nee-over because I felt fantastic rate, and at some point Th t
oA. The plan
way
are
,
of any inside information. How1951, now are averaging some 11%
above the pre-Korear.level.
X?dtection toe^th^S ta thS
•
tor
is,
,.
pr^™e '
?eiT"d plan on the combined class
s ock at'he rate called for
in the
taken
be
may
long
a
,
only assuming one week's pay
ana
program
end of
only 6%
August.(Spot prices are only b%
atj[active wbile pricesHberanyCpri™d"pendingacUon on lne all
In
u"eiduy Priced, rending action on
,
that consummation
granted
(Snot prices
August
a
s-i
rather than to expand it,
Take the situation of automoanc' that there may be some pos- biles. Suppose you bought a car
since'the
a^ears
be conjustify
prescribed $7.00
.
.
it
£84.y.^ n <
S5 000
under
is 12%.
h
railroad analysts feel that the old tober figure also will be down that equipment.
Preferred has reacted to levels at fractionally because of lower food
you know that
While the plan has finally been
announced
Jd SUSDect that the tendency
making
FvFf
o
annual dividend.
regular
scare
taimlies when, 1costs »»u
u
to
even
war
arp
Dow-Jones commodity futures probiem 0f inventories of arma- a month. You figure out how
have been trending down. Thejr ^entSr It ig all very well to talk many people making $65 a week
the same geneial pattein about inventories of aluminum can pay Ji °r
tu3
3S
S
index.
lying out in the field, and inven- car and sthl buy other things, and
The consumers price i n d e stories of steel, and inventories of you get some idea of what I have
Participatmg feature of the pro- reached a new peak in August., textiles, many of them basic raw
b/*be statement that I
Pose^ class B preferred, eftec- The September figure will be out materials that can-be used in think that these relaxations of
tlv® ear"ln^s on th® new common in the next day or two. It usually many ways. It is something else control will be minor in effect;
P.nder the Proposed recapitaliza- comes out around the 20th or the- to ,talk-about huge inventories of some m arginal stimulation, and
0I? would come to around $0.33 22nd of the month, and' ^suspect,/library equipment? when you are that s all.
a ?,hare; Based on the plan, most -win decline fractionally. Ttie Oc-~ not using up large quantities of
TTnfillpri Ordprc
could
they
sufficient
the end of j^"Sust. The at st f g-
efghf mon?hs rJn l6?5% by the first quarter of
through Aug. 31, 1952 net income
was reported at $M29,000 On the
basis
the p an this would ma
ff the common
'P?'i_ ®
T°U
}+T
shaf?s: With allowances tor the
earnings would not allow any leaway to liquidate preferred arrears,
sidered
ofan^w
294^ by tne
pre-
*
well, wnat ssort 01 a ma:LKeiare
mu.uuu
houses among t. or w a weea
we going to have lot
.
Thirdly,
on
the favorable side is
.
These
are
very
d^0 ^
significant de-
Volume 176
Number 5164
.
.
.
velopments because I do not
The Commercial and Financial Chronicle
re¬
The
combination
of larger food
abroad, tighter import re¬
strictions, shortage of foreign ex¬
years
when
commodity
prices change, and a moderate recession
were
standing still or moving in Western Europe has led to
downward. Certainly the
changes lower exports, a situation that
in these prices do not
give any will affect some key industries.
signs of great pressure of
demand, From a long-term point of view,
and
usually the sensitive index this is one of the most favorable
call any
in
major upward movement
business
activity
in
reflects pressures for demand
very
quickly. All I have to do is re¬
mind you that after Korea
this
index rose about 50% in a
matter
of
few
a
months,
down
now
Korean
idea
to
level,
of the
and
6%
that
above
to
give
it
the
is
pre-
you
some
sensitivity of this in¬
dex.
think
is
esting
of
one
bits
the
Here
inter¬
very
of
evidence that the
business situation is not
quite so
strong
is.
as
lost
look at it.
a
steel
weeks
people pretend it
many
Let's take
The
of
industry
16
to
18
eight
million
tons
steel, and yet no scramble for
took place when the strike
was
Did
over.
you
yourselves
could
be
why?
that
stop
ever
to
One
strike
steel
not
only enough to meet all de¬
fense
industry
and
extent
18
into
of
million
go
producing
was
civilian
enough to build
the
needs,
but
inventories to
up
part
of
this
16
to
tons, because we did
pipe lines for some
That would suggest to me
the steel industry,
that
operating
full
meet
capacity,
can
than
more
immediate needs for de¬
our
fense
and
civilian
goods,
and,
hence, that the steel industry will
shortly be scrambling for" busi¬
ness.
So, I am not convinced that
the steel situation
strength
listed
that
to
it
be.
is the tower of
has
I
it
Third,
short-term factor
it is listed on the negative side.
Fifth, inventories are high in
manufacturing. They made a new
high in August when they were
out
of retained corporate
Undistributed
profits
have
fallen
from
$11.5
billion
rate to an $8.5 billion annual rate.
The
combination of higher wage
rates, difficulty in raising selling
prices, and little change in vol¬
ume
figures suggests further de¬
Now,
corporate
profits.
if that decline does
even
not take
about these inventories —
and this is speculation on my part
because
of
not
be there—and I
am
tion.
that
is
different prob¬
a
lem.
Plant
at
and
of
either
spending
1952, the
reached $27.7
spending
billion.
that
equipment
peak. In
record
a
rate
In
now
judgment,
my
at
we
are
past the peak in
or
spending. This spending was
heavily influenced by arma¬
very
ment
needs;
the increase in alu¬
minum, the increase in steel, the
increase in
isn't
for
armament
know
We
produc¬
civilian in¬
that
ventories have been coming down
and have
down
come
rather
increase
billion,
increasing
plants.
In the first stages of a war
pro¬
gram you build plants, and in the
war
at
is
long-term
sore
spots, in
ment,
for
reasons
Let
me
call
part
it
of
must
involved in
going
war
good
a
the
be
material
lead time. If you
complete
to
are
airplane,
an
have to start sometime in
you may
advance
on
is
that
of
radar, and when
your
it
finished
is
called
in¬
ventory for whatever firm has it.
What
happerfg""when
level
to
total
start
level
of
production?
to
seem
begin
you
the
cut
or
armament
would
if
off
eating into inventories. And
is the case, then instead
volume Of production large
of
a
negative
factor.
ventories
don't "go
tive because
Now,
out
of'gross
I'view'these inven¬
product.
So,
tories
being.,.too
ting
as
the
ifigh, and set¬
stage
for
but
still
win
to
would be
I don't
an
in
Republican
a
my
victory
ddn't fffean
I
mean
th.e' WdHd will
end. What I rriean
this. When
a
crash.
a
is
come
simply
dope ffend is taking
to
mean
their
own
All
of
the
The stage when we have
building the plants is rapidly
coming to a close — six months,
nine months, a year, with some
minor exceptions.
Aircraft fac¬
tories
and
installations
are
scheduled to be completed
as
still
late
1954.
as
But
the
fact
bulk of the
is
plant
that
the
major
need to pro¬
duce at this $58 billion
rate, and
to give us the materials we
need,
is
we
rapidly coming in place, and I
do
not
see
a
place in the
ture
war
increase taking
absence of some fu¬
new
That
scare.
is
the
proviso to all these estimates.
do
not
from
tons
for
new
see
90
steel
in this
off to
the
an
sendjjjiis
dope fiend
instRutiwvand take
inflation'/needle
out
120
investment
buying
month.
see
65%
the
10,000
And,
know, they
can
railroads
freight
,
as
are
take
you
will
be
other durable
for
-
moving side wise. Therfe has been
little
change
have to
all
point
carefully, be¬
cause unless retail sales pick up,
the important offset to plant and
expenditure ...decline,
ment
and
a
railroads
Number four on the
negative
side, exports have been declining.
arma¬
will
not
be
,.i'
,
a
as
that
National
Debt
Adverse
an
structure
which
spending
creates
from
out
think
I
that
be
type
of
kicked
be
And
us.
have to
to
the business
will
under
prophet
a
I
don't
The
next
factor
a
interesting
debt
us
in
factor.
Octo¬
October, 1953 I can't
or
but let
the
is
give you a couple
of figures you may not have seen.
say,
in
me
The total volumfe of private debt
this country, corporate,
non¬
corporate, personal, has expanded
from $ 14i billion, at the end of
1945 to $277 billion at the end
1951. To put it
the
ufa simple figure,
total volume
of
has
years.
Corporatgjdebt has
from
$85
$155
in six
gone no
billion.
Indi¬
been
this
add
to?
up
economy.
increase
some
in
of the hard goods picking up,
expect that pick-up will con¬
some
and I
I
the
over
do
think
not
peaks
of
few
next
will
we
early
months.
return
1951
in
to
the
the
lean
be
I
rule
backward,
this
decline
quarter
what
these
negative side
I
ones.
not
judg¬
my
to
appears,
that
third
or
quarter is
important, in
fact
the
ahead,
main
over
fourth
or
as
I
caution, the main rule
to
whether
as
ment,
the civilian economy, over the last
few
months, with textiles and
to
me
factors
on
are very power¬
cannot
recall
time
a
since
1948, when in making this
and con (which is one of the
pro
I
ways
treat
these
problems—
obviously, there are more
factors, but I have picked out the
and,
most
important ones)
the
negative
large
has
side
it is. My
as
been
that
the list
has
on
been
as
experiej&$
own
I
that type of a
result
in
hate
to
ignore
sign.
is
a
Municipals To The Fore!
During recent months, forward
looking investment dealers have
existing statutes
quietly been suggesting that indi¬
taxes.
vidual investors in the higher tax
brackets could do well by buying
payment
That there is
demand
the
this type
the date,
you
a
very
our
fraction of the
a
it
should
receive.
individuals
of security is
t h
Advertising
in
various
state-wide
character, and stresses
tax-free
exemption.
of
2%-2 y2%
to investors in
give
you
two
or
one
$61 billion. That
com¬
with $136 billion increase in
pares
debt. The
Federal
Reserve
study
a
to
to
consumers
units.
financial
these
increased
in
assets
what
—
They
six years by $67
Board
show
the
last
billion, and debt
by $47 billion.
the
Of
assets,
increase
billion
financial
pensions,
life
What
assets?
in
called
was
"other financial assets."
other
the 2V2%
(or
are
figures,
look
begins to
point will the
one
what
and
consumer,
Ameri¬
debt
able
about
load.
this
load
its
I
continue
it
will
said
to
merely
with
to
rate
it
I
ability
am
point
the
which
increase?
to
has
nothing
carry
that
concerned
whether
increase
be
not
that
been
it
at
can
load
at
increasing.
A
handy
it like this—if
then
these bonds is
on
whatever
you
how
sented,
the proper
of
re¬
made
culation.
I
want
took
the
a
very
Not
you
have this
business
taking place?
interesting cal¬
too
to
significant, but
see
a
figure.
I
increase
in
national
in¬
believe
office,
Building,
was
that
2006
pre¬
Albert
Packard
Philadelphia, would be
pleased to send you
a
copy.
The trend toward defensive
type
investments at this time is spread¬
ing throughout the country—espe¬
cially among people who have
substantial
investment
accounts.
great extent for many years. Their
interest has been toward inflation
—the tax-free element is also very
attractive to many.
hedge
The
acknowl¬
even
psychological
a
I heard of
crops up.
investor
that
present
Administration
was
so
bonds
and
tax-free
which
he
of
lived.
tired
He
governments
in
just
good
he
Treasury
into
county
just got
taxes
on
now
—
municipals
as
the
money
the
paying
at
that
sore
this
put
bonds
an
he
that
in
sick
free
Sherrerd,
of Philadelphia, placed
effective
Philadelphia
advertising in
the
"Inquirer." This ad
a special supple¬
of the paper that
tied in with
ment
feature
described
the
vast
Delaware section of
growth of the
Pennsylvania.
Butcher-Sherrerd
ment
right
came
headline
—
out
advertise¬
with
Three
this
"Tax-Free Investment
2l/z%
tures
(1)
issues
were
of
offered
to 31/2%.
were
In
to
yield from
Three main fea¬
to
in¬
many
on savings
deposits,
savings and loan, or from Treas¬
ury bond and certificates.
The
municipal bond
may
soon
again be having its day.
Real Property Inv.
,
to
The
BEVERLY
Financial
Chronicle)
HILLS, Calif.—Real
Property Investments, Inc. is
gaging
from
in
securities
a
offices
at
233
South
erly Drive.
Officers
Alford, President;
P.
George
Seaver,
John
B.
P.
Simmons,
are
en¬
business
Bev¬
Robert
Talcott W.
Cronk, and
Secretary.
S.
Asch, William M. Chance, Jr.,
Ethel Cohen, Charles K. Godfrey,
P.
Frank
Level,
Rubin Lichtig, and
Robinson, and Ralph M.
S.
are
also with
the firm.
Two With Waddell & Reed
(Special
to
The
Financial
MINNEAPOLIS,
Chronicle)
Minn.—Loran
counsel R. McCoy and Vincent D. Larson
under are with Waddell & Reed, Inc.
opinion
of
these
bonds
on
net
authority
emphasized in the ad:
the
the income
Valley, U. S. A."
school
A
entirely tax-
interesting
(Special
some
time.
2%
this net return
Recently the firm of Butcher &
The
is
this
at
even
vestors in this category. They are
not able to obtain
anything like
free.
was
of
pay
return—tax-
a
investors
return
low
has
stocks which daily
common
to be less and less attractive
seem
to
is
There
quirk that
be).
bonds
I
that
advertising
I
Frank's
which has been
increase
inserted in
a
interested in seeing
are
this
Watson
load,
not
coupon was
appointment.
an
If
cer¬
a
taxable return
a
for
Area of Delaware
does
of
space for re¬
questing full information, and an¬
for requesting that a
registered
representative
phone
can you expect to
continued
support
to
it
recipients
other space
Fred
if
the
vertisement. It left
Opportunity in the Bucks County
And
are
aid, etc.
municipal bonds is something that
practically all investors recognize
yield
we
exempt from
Pa. state
edged defensive qualities of good
a
industry, find itself carrying
can
a
words, when
at
return
should
and
very
is
present
These people have not been buy¬
ers of municipal securities to
any
turn
Mainly
insurance,
all
authorities
state
mean
(figure given)
equivalent to
invested
American
ads put
amount
him
these
would
various tax brack¬
net taxable income is
small amount of corporate securi¬
other
3%
or
table,
a
tax free yield
a
sold out $50,000 worth of
billion
$67
$43
ets. These
5%
of
is
(3) That these particular school
Some of
the most effective include
Some of you fellows on the invest¬
me
media
the advertisements that have been
tain
Principal
decisions
present income
county personal property taxes.
or
the
bringing in many inquir¬
ies, especially when that adver¬
tising offers issues of local or
ment
other
being
has been
your
(2)
and
all
the lower right portion of the ad¬
listing of what
incurred, because it is certainly
increasing at a terrific rate.
now
g.h out
r o u
or
banking end# could do well
to do a little carefui study of what
is going on in some of these com¬
panies in terms of the debt being
for
from
exempt
decided pick-up in
a
from
country.
the
serious problem. It
very
tax-free municipal bonds..
some
recognized
some
underneath
prop
consideration
Let
Salesma
By JOHN DUTTON
much of
pulling out of
a
important
Securities
at
pansion in debt when it stops must
private debt
has doubled in this country
to
of
all
coming
that
if
myself
prepare
starts the second
quite
declining civilian
very
time, without giving
wonder
adverse
important " and
ber, 1952
a
There
that
say
this type of expansion in debt can¬
not continue, and this type of ex¬
at
Factor
very
and
does
a
at
and the support, the props,
year
In
The
What
say /
im¬
many
certainly
to
was
be
quarter
Conclusion
ties.
expenditures,
there.
forever
cars
me
will not be able to
we
the stilts underneath
will
be watched
is
place. I
This
..year.
you
but
and
increase debt by $25 or $30 billion
their
gales have not
They have been
buoyant.
will hit
jo discuss it.
Seventh, -retail
been
maybe
ought to keep it in mind.
sold
were
—
credit, and it strikes
strong possibility
some
of
bad.
sold—homes
goods
very
spending
""
Whether this
have""a financial problem that is
a very tough one.
I wish we had
time
victory.
ahead
looking
trouble,
would
would
too
are
be true. But
may
goods
you;
problem —it
gentlemen
The
if
going
pretty close to 60
dieselized.
greater
and
create
period 25% of all the
same
durable
too
not
years were
will
an
now
instead
that
million
mills
to
stepping up again, although
special types of steel some
cannot
or
the
million
because,
figures in this connection.
Personal savings in the last six
big
I
homes
own
which
cratic
out
anything
paying rent. So it is
been
turn
you
"we
tike the needle
there is a ruction. And I
would expect that the probability
we
On
years—that is, the service charges
stuff.
stages
wor¬
because
ourselves," and I have
hacf.a Republican has made
victory than if yotf' had a Demo¬ happened
second
debt
—and, after all, many people
his shots and you
away,
because
the
It
negative factor for the
a
short-term.
to
this
has not received
electiofi* but
the
judgment
would be
the national income to 10% of the
national income in the last five
Republican Victory. Would Be
Sixth, I don't knoW^Who is going
what
will
attention to
economy.-
Bearish/
for
debt situation
tinue
negative
a
factor.
fra¬
economic
ternity seem to be ignoring it
almost completely. Maybe I have
just got myself a bug. It is en¬
tirely possible. At some point this
all, what does it amount to,
it has only gone up from 5% of
decline.
a
v
Moderate,
national
in the
outline.
after
words, instead of f gluts you get just
even. It takes.
"Sgyerll billion dol¬
lars
your
real
judg¬
my
will
lot of people aren't
a
doesn't
other
In
the
been reading some very interesl-r
ing analyses about how this debt
inventories have been
contribution.
positive
a
I
alarm¬
there
ponderables,
were
trying
the
it is nega¬
up
years
friends
my
nothing;
means
ful
of thinking, is a
Even if the in¬
way
foreseeable future.
or
cause
Maybe all this
dominated
enough to meet current needs plus
my
of
one
come.
by conflicting trends in 1951 and
1952, with expanding armaments
to
that
near
The economy has been
It
have
we
me
1946
1946,
lion increase in public debt in the
first five years of the '40's.
it
nature
since
year
the fact that this increase in pri¬
vate debt follows a $200-odd bil¬
owe
the
$136
six
perfectly
a
ing rate. This
largely to be used for war goods.
is
55
Personal and public and private
debt and corporate debt have been
about
inventory? <■' Well,
each
come
to
com¬
ending with 1951.
ried
What
about
97%, in the
or
are
goods
of
56%, in nine years. That
pares with
an
increase of
or
sub¬
These inventories
stantially.
reserves
because
breakdown
The major part of this
increase in inventories is in goods
not talk¬
about- depreciation
ing
the
debt has
from $55 to $121 billion.
up
33
1947, 1946 to 1948, 1946 to 1949, overall basis, I don't think the
Mortgage debt has risen from and so on, and got the aggregate rise from the present level is
$28 to $70 billion in the last five increase in income. It aggregated going to be very
great.
years.
$250 billion, and the total debt
In case you would like to see increase was
Business Decline Comes in 1953
$136 billion.
the comparison with the '20's, here
In
many
years
i found that
I think a downward movement
it is. The debt rose from
$106 bil¬ year-to year change was greater will start in business some
time
lion in 1920 to $161 billion in 1929. in debt than in the national in¬
in 1953. I cannot pinpoint it, be¬
which is an
available.
place, roughly one-quar¬
the retained earnings will
ter
Here's the interesting
thing
that, to
earnings.
is
as a
gone
rent needs minus inventories. And
a
clines in
we
the
on
good part of the plant
equipment spending is
fi¬
nanced
basis
a
than
vidual and noncorporate
inventories, you' get a volume of
production adequate to meet cur¬
negative side.
and
to
more
been
often
have
get
import
we
export, but
extent.
at
must
we
where
reason
the
before
the
the
cause
scheduled
in
steel
ask
things that could take place, be¬
$43 billion.
Secondly, the steel strike.
I
crops
recent
(1645)
34
|I646)
'
The Commercial and Financial Chronicle
Public and Private Debt
Institute of Life Insurance points out last
the
Continued,
Savings
vs.
decade's growth of
its
Problems and
of business and individuals.
when
private
borrowing
"Money Matters," the Institute of came to the fore while the total
Life Insurance calls attention to public debt showed a net decline,
the
rapid rise during
the last Reflecting record industrial exdecade in the nation's public and pansion and the rush of consumer
private debts, which has accom- buying after wartime shortages,
bulletin
current
on
panied the growth and expansion
of the economy.
According to the
1951,
the total of private debt practically doubled in these six post-
Institute, the total of debt in the
World War II
United States—public and private
aggregate
together
has
—
threefold,
by
of
amount
an
Right
now,
private debt is larger
nearly than total public debt for the first
expanded
and
years.
time in
approximately 400 billion, in the
"One indication of the debtperiod
from
the
beginning
of supporting ability of the economy
World
War
II
in
1939
to
the can be derived from the relationpresent.
ship
"Considering
the
dangers
burdens involved in
present
extraordinary size," the
said, "it must be recog-
Institute
nized
the
that much
of
to
economy
the
ability of
service
support it is predicated
tinued
and
debt ot the
a
high
level
and
on
of
to
con-
a
economic
activity
"To date
_
y gregate
this
great rise
borrowings
have been matched
able
growth
in
by
a
such
porting elements
in
ag-
to
appears
compar-
debt-sup-
national
as
and
individual
between
the
trend
of
eco-
nomic activity in general as meas,J!"ed bV national income and cornbined public and private debt. The
records show that total debt was
a^°ut two and one-half times the
national income in 1929. During
the Thirties, due to economic con¬
ditions in this period, the ratio
was very niuch higher and in 1933
aggregate debt was nearly five
times the national income,
' However, economic activity has
s^own a greater rate ot growth
than has aggregate debt lor the
income, savings, assets
borrowers, etc., as judged by a
comparison of present and past
1939-51 period as a whole. As a
result, combined public and private
at the end of last year
relationships
the total
and
tdts
between
these
fac-
of debt."
Figures compiled by the U. S.
Department of Commerce, the Institute reported, show that
gross
public and private debt combined
for their members as fast
agements
from
rose
billion
in
billion
an
aggregate
1939
to
the
at
of
of
$209
than $600
more
end
1951.
The
increase last year alone exceeded
$40 billion, or
for
the
tute
a
tenth of the gain
12-year period, the Insti-
stated.
Both
and in dollar
proportionately
amount, the Institute
continued, the growth in debt
whole
a
has
been
greater
in
as
the
of
public finances, due prito the way the Federal
debt has skyrocketed, than it has
area
individuals have shown
greater growth for the 1939-51
Period. The following table gives
desirable
seeing
Why or why not?
(3) Does management intend
as
matter
a
to
consult
that
of
ordinary
with
unions
within
are
practice
the
on
that
of
fundamental
managements
present
in
What
kind
of
and
philosophy
policies
have
American
respects I think that the American
employers
the
and
nation
a
to
The
of
industrial
the
United
States
success
on
the part
management in raising
per
manhour
re¬
pre¬
output
additional
thereby creat¬
product to share
employees.
It is an im¬
portant
short-coming in
ment's
fully
approach
not
that top
seem
analyzed
to
the
and
manage¬
industrial
to
I think,
unions
of
and
have
basic
have
exec¬
Taft-
care¬
quite
are
trade
unions
The
fortunate.
are
above
in
every¬
getting
and
wages
not
these arrangements work.
is
coming
an
present
industrial
of
short¬
American
too
imperil
national
But the
Hartley
bad
safety
or
good points in the Taftfar outnumber the
Act
For
ones.
statute
a
health
quite inadequate.
are
the
ing
example, it provides
limitations
of
bringing
govern¬
of
complaints;,
specifically authorizes employ¬
it
to
ers
there
ask
for
have
elections
been
(and
elections
many
held at the request of employers);
it authorizes decertification elec¬
tions
(the lack
of such a provi¬
glaring fault in the old
Wagner Act); it corrects the re¬
sion
was
fusal
a
of
Board
to
off
to
Labor
Relations
on
run¬
as
national unions; it im¬
the obligation to bargain on.
poses
unions
it
the
put "no union"
ballots; it requires the Board
treat independent unions the
same
well
as
recognizes
employers;
on
as
category of unfair
practices by unions as well as by
employers,
hundreds
filed
a
and
there
have
been
practice
of unfair
cases
against unions each
the
Act.
have
year
these
of
Many
been
brought
of
cases
by
other
Taft-Hartley
Act,
29
of
how¬
8-point
unions.
The
ever,
covers
discuss
to
pages
and it is impossible for
type
its
features.
unfortunate, that the unions
is
important
in the
system
(while in the main good)
broad; the provisions for
dealing with disputes that could
gained
clear understanding of the stake
that management has in making
There
visions
are
policies
a
whole
conditions for their members, not
in
introducing new schemes of
P*e and business:
'
as
make.
good
supposes
of
How
of the most
one
must
system
lations
with
IV
basic
works.
policy decisions that
ing
union?
counting other thing else interested
resources and investments of peo- substantially
better
marily
it
make it work is
matters
discretion
not
and
pro¬
from
standpoint?
bird's-eye view of what has trade unions been pursuing dur¬ relations,
utives do
occurred in these 12 years, com- ing the postwar period? In these
shares)
man¬
in
ficiency of operations? Other basic their present philosophy about the
policy questions that require man¬ role of unions in industry so long
as
their present policies produce
agerial decision are:
good results—that is, so long as
(1)
What
does
participation
unions have good success in win¬
management desire on the part of
ning
gains for their members.
employees in the conducting of
If managements,
on
careful re¬
operations and the handling of
flection, approve of the present
problems?
specialization of functions, man¬
(2) Is
employee
participation
agements will be interested in
management's
a
ParinS the trend of debt with that
of li(*uid a?sets alone (currency,
bank deposits, U. S. Government
bonds, and savings and loan
as
gains
Working with unions is ductivity. And they believe that
their pressure for higher wages
likely to increase the prestige of
unions. Are managements willing and other benefits actually makes
to
do
anything that raises the managements try harder to raise
prestige of unions, even if by so productivity.
Unions will be willing to keep
doing managements raise the ef¬
even
an
achieve
able?
.
°t recent years, the Institute
stated, savings -of business and
the
example,
Taft-Hartley Act
of armed truce? How much work¬
the equivalent of little more
management?
than twice the national income.
(4) Is management prepared to
With all the private debt expan- give some form of security to the
s*on
For
Hartley Act outlaws the closed
shop instead
of attempting
to.
regulate it, thereby unnecessarily
clear long-range objectives in this from
the
standpoint
of
union disturbing a well-established
field and not many have devel¬ members themselves.
The point
institution; it inadequately pro¬
oped policies to achieve
these of view of unions implies a sig¬ tects the
right of unions to en¬
objectives. Only a small propor¬ nificant specialization of functions force their rules
by forbidding
tion of managements seem to have and activities.
The job of man¬
employers who have negotiated
given much thought to the kind agement is to manage. Unions union
shop contracts from dis¬
of relationship with
to
let
managements
do
unions that prefer
charging workers who have lost
is practicable and desirable.
They prefer to specialize their
Can this.
good
standing for other
it be a more or less cooperative on being strong and active bar¬
reasons than failure to pay union;
relationship? Must it be a state gaining agents and to win gains dues; the secondary boycott pro¬
was
of
deal
to
powerful
labor
organizations
should
contain
many
serious
ing together is possible and desir¬
decade,
a
that this first at¬
with the difficult
problems presented by the rise of
surprising
faults.
"
In
Thursday, October 30, 1952:
.
not
7
Current Labor Trends and
economy
greater growth in savings
page
.
tempt
has been accompanied by greatest splurge of
borrowing in nation's history. Calls attention, however, to even
_
from
.
attempting
issue
many
to
make
whether
It
are
the
basic
the
Taft-
not
or
me
relations.
Hartley Act should be repealed*.
Rivalry between unions is strong That is a
purely negative ap¬
and is likely to continue to be
proach to the problem of a proper
ably interfere with the efficiency strong. This rivalry tends to in¬ industrial relations law. The real!
crease
the demands that unions
of industry.
of this
size are
American trade
issue
is:
"What
public policieson
unions have a good understanding make
managements.
During should the.
beyond the average person's comcommunity adopt to.
DENVER, Colo. — George E. of
most of the time, unions are in
the enormous capacity of in¬
prehension, the Institute said.,"A Fraker is now
protect
its members against
engaged in a real
dustry to increase output, and a strong enough bargaining po¬ abuses
simple gauge of what has hapof ~ either
employer ' or
estate business from offices at 726
sition to raise wages and other
they wish to "cash in" on this
pened in the area of debt is found
trade
union
power?"% Conse¬
Downing Street. Mr. Fraker was
labor costs faster than manage¬
in the fact that in 1939 the
capacity—not, as a general rule,
gross
quently, instead of discussing the
formerly in the securities busi- to interfere with it.
ments
are
able to raise output
amount
Hence the
owed
multitude
of
by
government ness for
provisions in the
many years, having his
basic policy of trade unions has per manhour. Hence, labor costs
(Federal, state and local), busi- own firm in Denver and
Taft-Hartley Act, I shall discuss
prior been to drive hard
are
slowly rising. But increas¬ some of the basic matters with
ness
and
bargains and
individuals, all put to- thereto
being
associated
with
thereby to get for workers as ing labor costs require a rising which
gether, came to the equivalent of Stone & Webster and
a
satisfactory
industrial!
Blodget,
big a share as possible in the price level, at least in the long relations act should deal. There&|,600 for every man, woman and Inc.
run.
A rising price level creates
child in the
growing output of industry. Un¬
are seven of these matters:
country at that time.
difficult problems. But the prob¬
ions are not interested in
The comparable figure
sharing
now, with
BOO
(1) The protection of the right
To 1%ill*15mfl¬
lems that would be created by
in management or in
ail
our
cooperating
population
of individual workers to join un¬
increase, is
■ ■ Of v« I dDUIdUflg
with management.
policies
designed
to
There are a public
$4,000, or two and one-half times
ions and to remain in unions. Ira
few
notable
exceptions to this weaken unions and to interfere
as great
many parts of industry, the right
statement—a
few
unions
which with the bargaining process would
"The records of the past 12
to
years
u
join a union determines the
even feel broad
responsibility for be even greater than the problems
of debt expansion show
an interRlchard H. Stewart, of Lehman
make a living.
the prosperity of the industries in created
by slowly rising labor opportunity to
,.©sting shift in the source of bor- Bros., President of the Purchases
This opportunity cannot be left
which their members work—and costs and a long-run increase in
rowing between the first part of and
Sales-Tabulating Division of there are a few specific activi¬ the price level.
The American solely to a decision by private
this period
and the years since
Consequently, the
trade union philosophy and the organizations.
Wall Street
Association of «;tork ties, such as apprentice
training
the end of World War II.
terms on which a union shop or
The „
t
or
the
promotion of safety, in American bargaining system have
dominant factor in the
a
closed shop may be
heavy bor- ExchanSe Firms> has announced which unions are
advantages for the
established
usually willing tremendous
must
be subject to public con¬
to cooperate if asked
whole.
These
to do so. community as a
1939
rough 1945 wasyears
the Federal Gov- will be held at the Hotel
trol to keep the doors of unions
Statler In general, however,
advantages seem to me to be
my
state¬
been
in
the private
sector of the
c™res
■
.
■
■
.
,
Ronrge E. Frakef
M
control or management into in¬
dustry—schemes that would prob¬
III
Really Business
'just
DlVISIOd DllHter
,
™
Ewing of the
ernment
more
due
to
that the Division's annual dinner
from
the
war.
As
a
on
ment is correct.
Wednesday, Nov. 19, 1952.
fourfofd in°t his period M^?rt Sell^an, of Thomson &
aggregate
than
while
private debt
in-
creased
by only about 12%.
"This situation was reversed
in
e
period from
1946
through
McKinnon> Chairman of the
en-
that
arrangements
have
been
made for 500 members and
guests.
—Corporate
Llqu'?Assets
1939
1940"
150
■
mi::::r
1
.
:
•
*
27 1
27.1
Ratio
108^
n9-7
540
m
25
89.1
565
120
51.5
173
30
1178
49.5
238
go?
1-
151.2
182 4
51.5
55.5
294
!^3
36
192.6
62.0
311
133 7
3°
1991
T2.9
273
393
1949
Life
856 0
Debts
852 0
}i«3
aco
1948"
1950
Liquid Assets
H'l
1947
1951
inflT
106.3
—
Ratio
\V/o
"
-
~
iio
Ifi'i
49 2
49.2
438'8
1R?H
182.8
^Insuram*: S' DeP'' °' Commerce:
40
28
31
nn
27
199-5
201.1
'2°3-9
211.3
it
84 8
329
insist
on
make
to
w&y to do this is to
big wage increases and
to
force
managements
even
stronger
We
efforts
do
not
agements
1100
185
ize
121.4
174
how
the public
desirable is
or
problem
of
as
check
of protecting
power.
fully real¬
unions
this
basic
policy of
American
standpoint of manage¬
the country, as well as
the
ment and
trade
unions
abuse
It is
the
mem¬
should
methods
the
unjustly
of
and
trade
union
keenly resent this
some
activities
of
and
their
that
Taft-Hartley Act should be¬
a
(2)
The
employers
bargaining
be
fee, and. to
members
from
deprived
of their
right
of
to
represented
be
agents
political issue.
And it is
represented
agent of
unions
of
their
their
by
own
and
by
own
a
bargaining
choosing; the
Taft-Hartley Act retains this
pro¬
tection but it also restricts unions
from
interfering with the selec¬
bargaining representatives
employers.
This is
a
step
tion of
by
forward.
understandable that
attempt to restrict
come
initiation
union
unions, and the commu¬
choosing.
The Wagner Act pro¬
well, against the abuse of
tected employees in the right to
the
man¬
from
fair
a
membership.
great growth of unions in
strength and power creates the
nity
without discrimination andi
at
being
V
The
bers
open
protect
entail.
power.
This
kind
of
problem
general rule obstruct the has arisen before in
American
introduction of new equipment or
history, but this time the source
new processes.
In fact, we hope of
great power is trade unions
that managements will introduce
rather than large business organi¬
new
machinery and will invent zations.
The
Taft-Hartley
Act
better
methods
because
such
represents the first real attempt
things will enable us to get ad¬ on
the part of the community to
I do not think that either
ot
slowly rising labor
price level which they
and
a
ditional wage increases."
235
federal Reserve System; Institute
productive,
improve methods.
213
94.2
enormously
and the best
as
'id'-
1944~"
1945:""""
1946
>
aan
Si
1942
**
Debts
mously
to
1
costs
the
worth
to be:
industry
is
enor¬
productive.
We wish to
thereby
(Billions of dollars)
basic policy
The
seems
"American
tertainment committee, stated keep
Liquid Assets and
Debts, 1939-51
\
of most unions
(3)
over
The
which
to
scope
each
of
the
subjects
Is
required
side
bargain. The Taft-Hartley Act
imposes virtually no limits on the
subjects that may be bargained
about
though it does in effect
—
Volume 176
Number 5164
.
„.
The Commercial and Financial Chronicle
(1647)
,
exclude the
v
bargaining unit itself unions may:f|nd it convenient to position of the parties, including
subject of bargain¬ pursue certain activities through tne employers last offer of settle¬
ing. I believe that the policy of groups or
individuals whom the ment. Just what the board is
requiring the parties to bargain unions represent as acting- with¬ expected to do during the 60-day
from
.
being
about
a
anything
with
out
condi-
act
connected
authority* but
'
hours,
wages,
•
tioi.s
if
,
is
the
policy.
bargaining
have
•
working
or
wise
a
Certainly,
is
to
command
process
vitality
and
to
confidence
of
under
from
not
that
assert
who,
fact,
in
word-of-mouth
structions
the
the
-
in¬
I
union.
do
provisions
of
period
to
is not
There
Act.
the
the
diating
clear
made
by the
is nothing in
prevent
board
the Act
from
me¬
board
of
board
should
public
lar
the
duty
terms of settlement—
recommend
in other
The much hardship and inconvenience,
to but the vital interests of health
members.
have
and
iled.
the
would
boards
emergency
under the
able
Railway Labor
Act.
dispute, and there is
The
of
use
and the
boards
emergency
both
ployer
cial
from
/
injury
Sometimes
the
labor,
union,
finds that
Pioyer
-
.
in
other
the
is
party
economic
v
.
*7
protected
be
•
'
,
.
.
;
the
or
em-
pressure on
nity
against
the
in
neutrals. nor)
entitled to
being forced
the
commu¬
or
lockouts
strikes
imperil the public health or
public safety. The President (or,
applying
are
of
-that
to
from
.,
.
XT) Protection
.
individual must certify the results to the
.'
Attorney General who is respired
any
case
the
protect
the
of
needs
the
states,
gover¬
clear
authority
to
safety of
Some people; it
health
community.
and
to
for
move
injunction.
the
a
help
The
the Act to
to
settle
the
is
court
*
binding—that it will be
imagine
more
a
Act
obtains
the
result
same
not
r
employers
Protection
(5)
against
some
of
forms
among
unions.
The
of
rivalry
Wagner
employers
no" protection
against the efforts of non-certified unions to compel an em-
each
and
strained in its
course
Experience
Act
gave
do
may
steel
dispute
called
a
with
shows
will
be
of action.
the
re¬
>
recent
that -the
so-
powers" are not
basis for executive
satisfactory
intervention in disputes that cre¬
cease dealing with a
ate great emergencies. When the
; V certified,, union and to deal with
.v an ' uncertified
one.
In
other executive bases his acts on im-r' words, the Wagner Act gave em- plied -powers, he is bound to cre¬
'«? * ployers no protection against at- mate the impression that he is act¬
v.
-r4-.'ployer to
ing in an arbitrary fashion and
/ri.T'xbmpel the employer to violate setting himself above the law. He
&jr( the law. Such protection is ob- may interpret his implied powers
too broadly/ as- the President did
viously needed, and it is provided
in the recent steel dispute. When
.'in the Taft-Hartley Act.
;r:' tempts on-the part of unions to
.
v
the
action
ofv the
vision
that
shall
the
include
not
tions
its
in
board
of
inquiry
recommenda¬
is
report
recognized
wrong, even by Senator Taft.
The public
naturally wishes to
as
"implied
executive
is
know
what
regards
settlement
fair,
as
the
ban
in
the
board's
port
the
prevents
enlisting
the
the
days,
board
on
enforced
men
portunity
delay
given
are
vote
to
of
60-
an
judgment,
the
on
em¬
their
is "certain
It
have
leaders
own.
that
rejected.
they will vote
they have done
.
.
t
it
make
harder
much
for
the
almost unworkable. Consequently,
Hence, experience justiresponsible officials of the gov¬
prohibition of strikes or they should be replaced with new ernment (and of the unions too)
and
very
different
ones.
The
boycotts to enforce claims to jobs.
to
persuade the men not to go
The provisions of the Taft-Hart- problem of disputes that imperil ahead
with their strike.
ployers.
the
fies
;
the health and
safety of the com¬
crudely
much -to be munity, however, is so big that I
-ley Act on this point are
*
and
leave
desired.
The
Act,
attempt
to
phrased
-
*
deal
however,
with
the
does
issue,
law should also at¬
tempt to deal with it. It is gra-
and
any
new
What authority should the exec¬
ley
Act
for
dealing
with
President
(the
or,
in
the
of states, the governor)
have
to deal with disputes that threaten
emer¬
public health or safety?
Several
tifying to note that the Supreme
\ .7 Court has recently allowed van gency disputes are very bad. The courses of action should be made
Act provides that whenever the
employer in Alaska to recover a
possible. In the first place, the
President believes that a dispute
large sum^ in compensation for
President
(or governor)
should
might imperil the national health
damages suffered in a jurisdicbe authorized to require a post¬
or safety, he
may appoint a board
tional dispute.
It is high time
ponement of the strike or lockout
of inquiry to report on-the facts
that
employers be compensated
for a limited period (say 30 days)
in the dispute.- including the po¬
;
for losses inflicted on them T>y
to give opportunity for further at¬
sition of the parties: The report
jurisdictional disputes for- which
shall not contain afiy- recommen¬ tempts at settlement. In the sec¬
the
employer has no.jrespbnsiond place, he should have author¬
-;
,
not
are
„
-
/'
*
'
Provision for unions to be
(6)
held
.
(
legally responsible for their
acts.
This is
a
cause
unions
tions.
Members
*»- act
in
on
fact,
own
difficult issue be¬
are
organizaundertake to
loose
may
behalf of the union when,
they
are
acting on their
initiative. On the other hand,
dations.
On
receiving the report,
the President may direct the At¬
torney General to seek
an
injunc¬
tion against the strike or. lockout.
If the court grants the injunction,
the
board of
inquiry is recon¬
„
emergency
Why
to submit
refusal
force
an
to
the
this
do
probably
appoint
board which has no
emergency
authority
cision?
will
government to
to make
The
board
is especially attractive
procedure
the
stronger
of
which
hopes to
be
to
binding de¬
a
emergency
concessions
the two
sjdes'
able to force
vital
that
pro¬
continued
be
the
are
practicable
on
a
fairest and
solution
the
to
problem of disputes that imperil
public health and safety. There
the
beyond
ity
to
formal
summon
the
parties
hearing before
a
to
a
modera¬
tor to show cause why the dispute
should
tration.
be
not
In
vened. If the dispute is unsettled at
executive
the end of 60
days, the board re¬
to
arrange
ports to the.JRresident the current
of
the
submitted
third
the
should
for
have
the
to
arbi¬
place,
the
authority
recom¬
by
investigation
an
emergency
has been used
in the
number of times
a
of railroads and seems
case
worked
have
to
scz>
But seizure
fairly well. Fur¬
thermore, it is authorized by some
state laws—for example, in Vir¬
Seizure
certain
The law should pro¬
ginia and Massachusetts.
should
only
occur
safeguards.
that in the
vide
the
status
under
of seizure,
case
should
quo
be main¬
possession of the properties should
not
to
attempt
of
negotiate^ new
employment,
advantage
of arbitration
emergency
board is that the
it did
when the coal mines were
ties at least have
the
on
of
an
selected
an
par¬
chance to agree
a
whereas
arbitrators
members
over
the
board
emergency
in
The government, while
tained.
terms
in the
as
seized
spring of 1936.
(3) The requirement that the
parties put into effect the recom¬
mendations
the
of
emergency
the
government. hoard for a limited period, say six
In fact, however, the government months. This would be in effect
are
by
quite properly appoints men who
acceptable to the parties.
are
How
of
ment
the
can
an
possible
appoint¬
board
emergency
a
mild form of compulsory
be
the
After
tration.
end
arbi¬
six
of
operation under the rec¬
months
the
of
ommendation
emergency
free
prevented from making the parties
board, either party would be
less
the case and attempt
to negotiate new terms of employ¬
ment. In fact,
by agreement of
bargain
to
willing
less
or
willing to submit their dispute to
employers
ferred
The
strong incentive
re-open
and the union,
both the employer
the
be re-opened be¬
might
case
to
attractiveness
boards
powers
of
sides
both
to
duced
emergency
be
can
re¬
by giving three additional
to the executive. In case
side
one
a
be
unions
to
having their dispute re¬ fore the expiration of six months
an
emergency
board. The possibility that the executiv
avoid
to
can
by giving both
prevented
and
effects
Such
arbitration?
the other rejects the
or
recommendations of
an
emergency
might require that the parties pu
into effect the recommendatior
of
the
board
emergency
make resort to
emergency
wou
boan
much less attractive to employer
and
unions and
would
give bo
board, the executive should have employers and unions a strong in¬
authority
to do
one
of
three ducement to settle their dispute
things:
(1)
lockout
occur,
let
to
strike
the
or
by negotiation or arbitration.
after working out
vm
agreement with the union and
an
the employer
limited scale, but on a
large enough to meet the
on
scale
a
of
needs
public health or safety;
seize the property and
present dispute in thq~cor"
The
that production will
continue, until the dispute is set¬
tled,
makes
it
appropriaii
a few words on th
industry
I
that
say
wage
stabilization
One cannot avoid being impressed
problem
of
by the sharp contrast between the
(2)
to
operate it; (3) to require that the recent steel dispute and the pres¬
In the case of
recommendations of the emergen- ent coal dispute.
cv
board be put into effect for a the steel dispute, there was no
scale
continue
until
the
in
not
limited
is settled.
necessary
of
to
Probably half,
less than half, of
safety.
cases
some
normal
a
dispute
is
output
health and
or
on
vital industries much
in
Even
the
agreement
with
the
employer that produc¬
and
will
tion
real
period—say six months.
An
union
output would
essential
interests
munity.
There
protect the
the
of
2 In
of
some
might
cases,
however,
be
rejection
has
not
been
followed
by real bar¬
The unions have simply sought
get
the President to intervene on
their behalf to get them more than the
emergency board recommended.
The day
for that sort of thing, I think, is prob¬
ably over. It is fairly elementary that a
President,
having appointed an
emer¬
gency
board,
must
stand
behind
the
gaining.
to
recommendations of the board unless the
board has made
Roosevelt
are
did
Truman
an
not
obvious blunder.
but
make
to
decision
the
was
a
so
a result, the
Board was
decision, and
unacceptable
employers that it resulted
strike. In the steel case bot^
to
the
in
a
and the union werr
not makin
an
adequate effort to settle the;differences by bargaining. In the
the employers
widely criticized for
coal
the employers an
bargain and the-
dispute
did
union
in
succeeded
ment.
In
reaching
agree
an
bargaining
sense
a
worked, but it produced an agree
ment which, in the
opinion of thr
Wage Stabilization Board, violate '
the
tion
principles
and
consequence,
prove.
strike.
As
of wage stabiliza
which
a
has
the
to
result, there is
Thus
the
ir
Board,
refused
country
ap¬
a
coa'
within
Mr.
understand
Stabilization
forced
com¬
still
the recommendations of the emergency
beard
bargaining. As
Wage
the
Mr.
dispute
unconstitutional
of the steel mills.
ure
mendations of the board. The only
.
bility.
scale
most
their dispute to arbitration, when
.
*
will
limited
binding.
should the parties agree
(1)
utive
provisions in the Taft-Hart¬
an
board
limited
case
The
recommendations of
VII
wish to discuss it separately.
VI
so¬
pressure
imperiling
agreements
duction
arbitrate. The
op¬
ployer's last offer—an offer which
■
,
putting
from
is part4 President's
so
of the agreement to
from
public opinion in sup¬
a
definite compromise.
of
After
board
and
recommendations
report
the
down the offer, as
There is need also to protect regarded as
arbitrary, it arouses
in every vote by an overwhelm¬
employers - and
the- community fears
and intensifies the emotions
against attempts on the part of
ing majority. After this vote the
that always accompany a grave
unions to use strikes or boycotts
injunction is discharged.
dispute. This intensifying of emo¬
to control the assignment of jobs
Certainly this set of develop¬
tions
makes
the; dispute - even
■"> —that is, attempts on the part of
ments is well calculated to give
more
difficult to handle.
-it
one union to compel an employer
the men the belief that they now
The Taft-Hartley Act provides
to cease employing the members
have every right to strike.
They
a
procedure by which the Presi¬
of another union.
The basic purhave put up with the enforced
dent may deal with disputes that
; f pose
of protecting the right of
delay,
they
have
rejected
by
threaten to create national emer¬
*
employees to organize was not to
secret ballot,in a vote conducted
gencies.
Consequently, the Act
help
one
union
fight another
is entitled to credit for attempt¬ by the government itself ,the em¬
union; it was to strengthen employ er'sylast offer, and the in¬
ing to meet a problem that-can*-;
1 ployees in their bargaining with
junction which restrained them
not
be
escaped.- The provisions,
;, employers.
Unions
have
been
from striking has been vacated.
of the law for dealing with emer¬
more
uncompromising in
their
Surely the procedure provided in
gency disputes/however, seem to
fights with one another over jobs
the Taft-Hartley Act is bound to
me
to
be quite bad — indeed,
than .in
their
fights with em¬
*')
.
of
.
dispute'.
It is difficult to
bor
extended
be
to
war¬
possibility that the
directed
one
are
economic
its essential
are some industries, of course, in
Presi-V which production on a very lim¬
ited scale is not technically prac¬
emergency
ommendajions.2
The
rec-
Thus
serve
the
grant
to parties persons argue that if the execu¬
truly neutrals. The tive's authority is definite, the simply by forbidding either party
from changing the status quo for
Act, however, attempts to do the union or the- employer will be
a
limited periqd.
The word "in¬
right thing,- and an amendment' able to plan its behavior so as
to
evade this
has
become
charged
authority.
If the junction"
or a new Act should give neutrals
with
much
emotion
because
of
effective protection against being executive, however, acts through
the
abuse
of
injunctions
in
powers,"
neither
side
conscripted to help one side or "implied
can
predict what the executive strikes many years ago. The pro¬
the other in a labor dispute.
who
the basis of these
on
be
would
dent will appoint an
ticable.
/ :
motion., board also makes the unions and
The men are then free to 'strike. employers less willing to go to<'
(2) Seizure of the property. At
The President is*directed to make arbitration.
The
decision
of
a' the
present time seizure is in
a report to
Congress of the efforts board of arbitration is ordinarily bad odor, mainly because of the
by
boycott or economic pressure
seems
'
less
or
discharge of the
is true,-(mostly persons who de¬ inappropriate set of arrangements
scribe
themselves as friends of for handling serious disputes. In
side in a labor dis¬
the first place, the postponement
pute.
Tlie Taft-Hartley Act at- labor) have r: argued that it is
is .obtained by the issuance of an
t tempts
to give them such pro- unwise to give definite authority
to the executive to deal with dis¬ injunction.
It is not necessary to
tection.
Its
provisions are not
putes which imperil the public use this provision to obtain a
as well written as they might be,
The Railway La¬
and
in
some
cases
protection health or the public safety. These postponement.
by
to
'
disputes.
against
member. >. 4
by
pressure
7: "k Certainly, neutrals
forceable
one. •
neutrals
effective way
an
of applying economic
V*
of
union
interests in the community. In my
w
wise
the
half,
time, this warfare would be
prevented
-
a
the
purpose
same
-
protection
siz¬
a
With
both sides to agree, and at the
on
-
The
and
agreement.
-
(4)
conduct
employment of the union
fare would
■
that they desire is
to
lockout.
or
under strong pressure to reach an
•
;*.■
able
members cut in half, both the em¬
'
.
be
strike
sales of the enterprise cut in
the
Taft-Hartley Act on union nothing in the Act to prevent under the
Railway Labor Act has
sides, it legal responsibility cannot be im¬ the U. S. Conciliation Service,
affected both the process of col¬
should be permitted to apply to proved.
Nevertheless,
the
law from attempting to settle the dis¬ lective
bargaining and the will¬
almost anything that the parties makes an
Thus, there is the possi¬
attempt to deal with pute.
ingness of the parties to submit
i regard as worth bargaining about. this
issue, and is a long step for¬ bility of competitive mediation—^
theic disputes to arbitration. The
Their judgment, not the judgment ward. It
gives statutory authority something that is definitely ex¬
effect on bargaining has been to
of a public agency, should be de-' for a
position that the Supreme cluded by the Railway Labor Act.
discourage real bargaining before
cisive.
An important question is Court took
loh'g ago in the Coro- If the dispute is unsettled at the
an emergency board has been ap¬
whether
either side may for a nado
Coal
Company case, and end of the. 60-day period, the
pointed and to cause the real bar¬
limited period of time enter into which
'state courts have National Labor Relations Board
many
agreements
that
exclude
either taken.
The Act distinguishes, as is directed within 15 days to hold* gaining to be deferred until the
emergency
board has made its
certain subjects or all new sub¬ it
should, between the liability of an election by the employees of
Then
experi¬
jects from bargaining. Here again unions and the liability of the each employer on the acceptance recommendations.
ence
has b^en that one side or
;
I believe that the policy of allow- individual
members
of
unions, of the last offer by the employer.
both usually reject the Board's rec¬
ing the parties a free hand in. and
provides
that., judgments Within five days after the elec¬
ommendations but bargain more
making; the ,kind of agreements against the union shall not be en¬ tion, the Labor Relations Board
the
1
>
safety would not be imper¬
At the same time, the parties
words, it should be simi¬
to
created
35
this,
does, and future Presidents
likely to understand it.
the
space
of
several
Continued
mont^on
vr>s
pare
36
The Commercial and Financial Chronicle
36
Continued from page
in the world.
most successful
the
35
Output
man-hour
per
about twice as large as
three times as large as
Cunent Laboi Trends and
Act
Problems and Taft-Hartley
.
Thursday, October 30, 1952
.
large
as
Education and Business, Partners in Freedom!
William Balderston, President of Philco
sult of
for the rest of the world
This extraordinarily
anyone's far-sighted plan-
out
Speaking at the 300th Anniversary
not the time
has
But
conjunction of town, Pa. on Oct. 24, William
favorable circumstances, some of Balderston,
President
of
the
them natural and physical, some Philco Corporation, called for a
them political, some of them close partnership between educacuitural. Hence, you and I have tion and business,
r|ght to be boastful about our
extraordinarily successful ec*onomy>
rj.be
unions
trade
the
and
in-
dustrial relations of America are
part and parcel of our extraordinarily successful economy, and the
unions display many of the same
characteristics that have made
the economy successful. The hard
drive to make money that leads
enterprises to experiment, to scrap
come
establishing the rule ls ahead is the best protection of
rates will be permitted ^he
country
against
runaway
to rise about 2.5% a year faster prices. Hence, the only excuse for
than the consumers' price index, continuing wage and price conThis rule
would prevent tech- trols is the possibility that new
nological change throughout in- iocai wars might break out somedustry as a whole from producing where, necessitating a sudden in-
amounts to
significant reduction in the
general average of labor costs.
What should be done
in the
case?
coal
Had
Board
the
ap~
proved the full $1.90 increase
(plus 10 cents a ton in welfare
contributions), the Board
fund
well have shut up shop,
would not have been a posi-
might
It
as
in defense spending.
crease
nee(j
be met, however,
can
This
by
a
standby authority to impose wage
an(j
prjce
necessity.
in
controls
case
of
I believe that the time has come
to
discard
price
and
wage
trols. They
con-
not needed. I do
are
not even believe in keeping the
similar increases to Present wage and price controls
groups, and
virtually no on a standby basis. They are too
tion to deny
other
would have
been strong discriminatory and unfair. They alenough to have won as large an jow employees a more-than-comincrease as the Board would have piete 0ffset
to rising costs but
to
approve:
Hence
the
Board aiiow employers a far-from-comwould have no practical effect on piete offset. Hence, if new flarewages. It seems to me that there ups around the world in the next
are
only two appropriate alter- several years require price and
native courses available
to the wage controls, it is better to make
union
One is for the governpublic to stand by
country.
ment and the
the
Wage
The other is
lization program.
alternatives
the
Board,
Stabilization
to abolish the Board
and to abandon the
wage
stabi-
Why do I limit
these
to
ex-
tremes?
If
employers and
counted
be
on
unions could
to
never
make
a
fresh
the
start
than
re-activate
to
machinery
present
of wage
and price control and the present
Policies.
But
although
controls
and
wage
should
be
price
scrapped, and
couid be SCrapped by adnniinistrative order, as a practical matter
they
can
be discarded before the
expiration
of
the
law
present
devoted
of such
a
Board is
in effect,
union must be
no
the
possibility that employers and
will
make
agreements
that
are
unstabilizing.
Conse-
mitted
unions
increases
quently, when the Board rejects
an agreement that a union and an
employer have succeeded in
reaching but which in the Board's
stabilization
by
Board
the
are
there
entitled
should
be
the
and
to
no
support,
thought
of yielding to the miners.
After
violates the principles wage and price controls have been
wage stabilization, the Board abolished, let us hope early next
doing precisely what it is in- year," the operators and miners
judgment
of
tended to do.
It
is
will
understandable
that
some
be
free
stabilization
have
program,
a
wage
strikes
or
lockouts against the decisions of
the Board must fail. The public
put
into
and all efforts arbitrarily to
struct technological change.
us
have
no
hesitation in
with
about
a
ston stated. "All these things we
should and must do in the years
just ahead, and the productivity
obLet
in-
our
generalizations
industrial relations in
America.
Everyone
knows
that
should understand that point quite the American economy is
by far
U7
p
of American industry, in conjunction with education, will make it
possible to achieve these goals
and bring about the better future
that surely lies ahead of us."
Referring
to
the
fact
that
"The
of
best
and
new
most .fruitful
of the free enterprise
years
tern lie ahead of
us,
if
we
sys-
pursue
other country, Mr. Balderston at-
tributed this to the fact we have
in the United States today the
nearest approach to a genuine free
enterprise system in the world,
Specific examples of the contributions competition and the American system of individual initiative
have made to better living are
found in the history of penicillin,
nylon and television, he pointed
out.
"We all recall the introduction
of penicillin — the
first of the
policies and enthe initiative and enter-
national
courage
American living standards are so
much higher than those of any
medical science. College education
must be made available to all the
worthy
sons
and daughters of
American families, regardless of
their financial condition, to develop the trained minds on which
the
continued
progress
of
our
society depends."
Ted D. Carlsen Joins
Harbison & Henderson
wonder drugs
should remember that this price
reduction was brought about in
the face of
.
_
F
A
L
Tan hum
and
better
clothing,
thanks
to
Turning
Rossman
York'citv,
.
passed
&
away
New
22 at
Oct
'
FRESNO,
to
television
Mr
.Our first Philco television re-
Lynch,
Calif. — Sydonia B.
rejoined
Merrill
has
Pierce,
Fenner
Mrs. Masterson has
&
Beane.
recently been
associated with J. Henry Helser &
Co. as Fresno Manager and prior
—
_
ceiver was ottered to tne public thereto
m May, 1947. It was a table model Pont &
and used the largest screen then
available, a 10-inch picture tube,
which provided 52 square inches
of viewing surface, and sold for
including antenna.
"Today we
are
offering a much
was with Francis I. du
Cq
and Merrill Lynch,
pierce, Fenner & Beane.
Trudell With Fairman
(Special
to The
Financial
Chronicle)
LOS ANGELES, Calif.—Patrick
_
w
Trud
u h
b'
tube and giving three times as
'
s
0 e * °
a picture—greatly improved Wlin * airman & Co., .210 West
*n contrast and brightness—with Seventh Street,-- members of tha
?reate,r sensitivity for $22?.95 or Los Angeles Stock Exchange. Mr.
just about half what the first set TmHAirin
«««♦
.
nartnor
Co
(Special to The Financial Chronicle)
Masterson
chemistry."
larger table model using a 17-inch
,
—
Merrill Lynch Firm
~ ~
and practically all other
costs. The result is less expensive
tnu'i
*
' Ulxon director
*7
Pawner Dixon has been
elected a Director of International
5?, Xays of Central America to
fJU Jhe vacancy created by the
d®ath pf Mord M. Bogie. Mr.
Plx?n *s a .Partner °f the Stock
S? ^nge firm of ^arl
Loeb»
Rhoades & Co-
Sydonia Masterson With
great rise in wages,
a
taxes
Hiv^n
_J
in
few broad
young
thousands
prise of our people," Mr. Balderston said in explaining his faith in
the American business and educational system, "as partners in
freedom." "The specter of illness
with all its attendant suffering
and expense must be removed insofar as possible from all our
families through the advances of
Stephen A. Tanburn
conclude these remarks
our
Balderston continued-
effect
IX
me
of
of
jobs."
Mr^^iddle^wa^an ^officer^oi
Stenhcn
Let
teachers
hundreds
n-«i.«-.s,w
whatever wages they see fit.
strikes may occur against the decisions of the Board, but if the
country wishes to
to
less American homes and creating
—
as
recently as
1943," Mr. Balderston said. "Its
discovery was one of the great advances of medical science in the
treatment of physical ills. The
individualism and the optimism only problem was its high initial
of American culture, the strong cost of about $10 for an average
faith that this is an expanding daily usage of 200,000 units — an
universe, and that the key to the almost
prohibitive
expense
in
better life is growth, innovation, many cases that really needed it.
and invention, not restriction and American industry set itself to
Ted D. Carlsen
a different division of what we meet this problem by developing
have. The American trade unions new production techniques and
(Special to The Financial Chronicle)
are just as distinctively American greatly increasing its capacity to
LOS ANGELES, Calif.—Ted D.
as is American business. Of course, manufacture penicillin. The result Carlsen
has
become
associated
it could not be otherwise because today—9 years later—is that the w;tb Harbison & Henderson 21Q
the same environments have pro- same 200,000 units of penicillin West seventh Street members of
duced the philosophies of Ameri- cost only 60 cents, a decline of 94% the Los Angeles Stock Exchange
can
business and of American in price in 9 years, and even fami- Mr Ca 1
was
nreviouslv with
unions.
lies of moderate means can afford Geyer & Co
Incorporated
and
The American economy needs to use this drug, once almost in crowell Weedon & Co
'
the contribution which the trade the luxury class. What a marked
'
' ;
.
unions are making to it.
Even contribution the pharmaceutical
with all the competition and re- industry has made to the betterFour With Dean Witter
search in
industry, enterprises ment of American life!
rsnpciai
to thf
financial
chronicle)
need the additional spur to effi"Or consider the history of
o
A ivp
FRANrT^ro
Calif
ciency that comes from strong nylon, one of the most spectacular
r
rvLollo Tr w ft rv»rpressure for
higher wages and of the man-made fibers. In 1941 h ?.
r
t mhie
ori
better conditions. But just as the a representative type of nylon rh
R
,
*
' affil_
community needs to fight vigor- yarn sold for $4.27 a pound and
with npan wittpr & rn
4=i
ously the introduction of a phi- was available for only a limited
Montgomery Street members of
losophy of restriction in business, number of urgent uses.
the New York and San Francisco
so it also needs to fight with equal
"Today that same grade, but otork
Fvrhnn^e*
Mr
T iddle
vigor the philosophy of restric- an improved quality of nylon, was
wa„
nrevinuslv
with
Walston
previously
with
Walston,
tionism in unions—all efforts to sells for only $2.70 a poundcreate unnecessary jobs (standby reduction of 37% in the space of
orchestras, for example, or two H years—and its availability has j0ries Cosgrove & Co.
firemen on diesel locomotives) been tremendously increased. We
wage
The wage
program
every day
and night of the week to count-
most people from the inflationary
trend of recent years," Mr. Balder-
per-
Stabilization
has disallowed.
Board
and
striking to win
which
history, bringing entertain-
sound
violate the only by act of Congress, and Con- dustrial relations in fighting
principles of wage and price sta- gress does not convene until vigorously over how the gains in
bilization, there would obviously January. In the meantime, the production are to be divided, but
be no need for a Wage Stabiliza- miners are striking.
So long as let us be sure that each year there
tion Board. The only excuse for the wage and price controls are are large gains to
fight over!
existence
our
people in school and college, for
they have suffered
more
than
agreements which
the
in
"Salaries must be raised for the
n0
that wage
any
the fastest-growing industry
come
jess accidental
or
to
abandon
the wage stabilization
program> and the price stabilizatjon pr0grarxi as well? During the
increase of $1.90 a day negotiated next year or two, when defense
by the union would
raise the spencjmg is close to its peak, new equipment for still newer
basic wage rate from $16.35 a day unions will press hard for large equipment, and to expand, finds
to $18.25* — a rise of more than increases. Unions will be spurred its counterpart in the hard drive
11%. In addition, the union ne- by the belief that business condi- of trade unions for higher and
gotiated an advance of 10 cents a tions -m 1954 wir be less favor- higher
wages
and bigger and
ton in the present 30-cent-a-ton able to
wage
increases than in bigger benefits. And just as the
royalty to the miners' welfare 1953
Employers will be led by businessmen of America ( with not
Vfmd. The Board approved a rise doubts over the outlook for busi- too many exceptions) try to make
of $1.50 a day, or 9% or about ness jn 1954 and 1955 to resist more and more money by expan18.75 cents an hour. The Board jarge wage increases. The unions sion and change rather than to
held that an increase
of about wid probably win large enough protect an established position by
13 cents a hour is approvable be- wage advances to push up labor cartels which divide up the marcause of the
rise in the cost of costs SOmewhat, and thus to bring ket, so trade unions seek to serve
living since January, -1951 (the about a small rise in prices. But their members, not by various
Board uses the unrevised, out-of- ^be danger of a rapid and dis- kinds of rules which ration opdate index
because it yields a orderly rise in prices based on the portunity or obstruct change, but
larger amount) and that an addi- speculative buying of goods is by driving hard for higher and
tional amount of about 5.75 cents past Every month the caution of higher wages without limit.
an hour is
approvable under the businessmen is a littlev stronger
I say these things because I do
Board's responsibility to maintain because they wonder what will not
believe that the American
proper wage relationships and to
happen when defense spending businessmen as a general rule are
prevent hardships and inequities, drops some tme late in 1954 or aware of how American the trade
The increase of $1.50 a day, which eariy [n
1955.
Knowledge that unions of this country really are,
the Board has allowed the miners, an eariy drop in defense spending of how faithfully they mirror the
by
celebration of the Society of
njng—js ^he result of a more. Friends George School, at New- ment and information
very
6.1%,
and
average
hourly
earnings
in bituminous
coal mining by 11 %h- nearly twice
the rise in manufacturing.
The
turing
Corp., says best and
of free enterprise system lies ahead. Points
TV picture has increased threefold, with cost reduced 50%.
most fruitful years
the
as
successful economy is not the re¬
different clearly. Once unions are rewarded
kinds of strikes — one growing for
striking or threatening to
out of the failure of the parties strike by being granted wage into bargain; and the other growing creases which the Board has disout
of
more
or
less successful approved, refusal to accept the
bargaining.
Board's decisions will become
The basic facts in the coal case quite general.
Hence, the only
in brief are as follows: Between way to make a wage stabilization
January 1951, when the miners program effective is for the counreceived their last increase, and try to insist that government Stand
July
1952,
the
consumers' firmly behind the Wage Stabilizaprice index has risen 5.1%, aver- tion Board when unions strike
age hourly earnings in manufae- against its decisions.
two
experienced
here is
in Britain,
in France,
whole.
a
as
times
nine
and
average
is
.
<1648)
,
large
age of 45. Mr. Tanburn has cost! The result is that television
the past was associated
been a member of the New York is now within reach of millions with Walston, Hoffman4& Good^_
Stock Exchange since 1937.
instead of thousands. It has be- win as Santa Ana Manager.,,
I
Number 5164
Volume 176
Continued
from
.
The Commercial and Financial Chronicle
.
.
because
now
11
page
(1649)
variably
of
time
to
depending
tor
other
upon
investment,
nomic
conditions, stability of the
enterprise, etc. A 6% yield may
be wholly adequate to attract in¬
vestor capital at one time whereas
5%
7%
or
be
may
required
at
other times.
In any
dividends
the market price
to
is
important method of generally
informing our judgment as to in¬
vestor requirements.
It is stand¬
an
ard
practice
in
rate-of-return
study yields and earningsratios
of the industry of
cases to
price
which
the
particular company is
part, of selected companies in
that industry, and of the partic¬
a
ular
to
under
company
tion.
The
spot
covers
study
is
considera¬
confined
not
conditions
missions
capital
utilities
but
usually
payouts
the
of
reviewed
are
because
these factors have
dividend
both
as
of
bearing upon
earnings ' require¬
and
a
ments.
study of these and
a
other relevant
spect
to
ments
information
the
of
financial
debt,
Commission
rate
of
try
out
arrives
return.
stock
capital,
at
an
We
different
that
sure
would
the
price
the
frequently
rate
a
the
yields
would
as
allowed
realm
and
to
of
earnings-
ratios, according to the in¬
formation
of
record.
Informed
judgment necessarily plays an im¬
portant part in the process.
Inasmuch
rent
cost
sidered,
lowed
it
as
of
if
historical and
capital must
much
be
return
as
to
permit
a
its
credit
capital,
cost of
al¬
and
and
to
inas¬
capital varies with
different utilities and with differ¬
ent
companies
capital structure
ferent
that
all
uniform
a
utilities
the
with
and
dif¬
follows
return
for
be
not
equit¬
is true, however, that in
It
electric
and
gas
it
of
rate
would
different
other
characteristics,
able.
utility fields
there is
a closer "bunching" of cost
capital, particularly among the
of
putting the cart before
Moreover, such a plan
horse.
nomic
repercussions.
will
you
in
in
securities
better known
vailed
companies, than
15
some
pre¬
some eco¬
I
am
sure
the
late
Not
was
Question of
Mathematical Computation
I
would
with
not
the
that
the
want
to
determination
however,
of
rate
of
return
is merely a mathematical
computation,
It ■ involves
the
weighing of evidence, some of
in
down to size.
or
the
"Bluefield
Porter,
Chairman
former
Board
American
of
the
of
Waterworks
and Electric Co. Inc., in testifying
concerning
Case"
rate
sonable
return
of
at
time
one
be
may
rea¬
too high or too low by changes
affecting opportunities for invest¬
ment, the money market and busi¬
I
write-up of plant to
market values of stock
support
asked
why
written
vestment.
He
the
down
His
books
to
reply
said, "The only
classic.
was
ever
was
that I
reason
lesson
a
collapse, it
be
to
1929
that sound financ¬
was
price
we
leave
and
may
is
from
market
channel
not
scheme
that
I
is
need
Francisco,
one
the Public
Utility Section
spend time discussing it here.
is
It
sometimes
procedures
present
that
argued
in
respect to
determining rate of return result
in
different
yields
stockholders.
The
true.
of
This
certainly
different
practically
different
to
is
stockholders
business
every
get
different yields if they made their
investments
at
different
times.
is
This
certainly
through the regulatory
cure
no
phe¬
for which there
nomenon
is
financial
normal
a
process.
In
I
in
San
de¬
was
State
regula¬
closing this phase of
like
applying
ing
a
that
principle
Case"
talk,
my
reiterate
to
the
"Bluefield
many
in
the
of
commissions
for
have been emphasiz¬
years
broad cost-of-capital concept
which necessarily involves the use
of
informed
siderable
been
judgment
discretion.
judgment
last
and
con¬
That
such
discretion
and
have
reasonably exercised in
five
six
or
electric,
years
the
for
so
telephone
and
gas
or
util¬
ities is evident from the fact that
by far the largest growth, dollarwise, in their entire history has
been
financed
the
without
in
Indeed
"Commercial
ties
accounted
total
too
this
much
&
respect
Financial
for
51.06%
amount of all
new
of
the
corporate
capital (bonds and stocks) raised.
It is interesting to note that of
the
total
raised
Commerce Commission
amount
in
that
of
stock
capital
the
discussion.
The
Commission
was
its
rate
Association's
Federal
difficulties.
Let
the
common
The Commission is
five-man
wise is
commission,
of the
one
Federal
tion
to
record
in
the
addition, the determina¬
of the
Commission is subject
-
regulatory
In
judicial review.
Some
of
the
letters
which
the
Commission has received recently
imply that the Commission should
fix
the
manner
value
need
how
Of
rate
of
to
as
not
point
out
that
fixing
course,
purpose
I
such
market
know that I
this group
to
argument
rates
for
is.
the
of
of
regulation
maintaining market
securities, would make
a
complete
support of this I quote
attributed
in
maintain
of securities.
fallacious
value
return
by
the
sham.
a
In
statement
"Journal,
of
Commerce" (Sept. 25, 1952) to Mr.
James A. Lyles,-Vice-President of
commission
rate-of-return
a
word
criticisms
vanced
directed
Commission
recent
above
the
let me add
in order to clarify
most frequently
ad¬
the
of
one
policy
two
or
mentioned.
Commission
decisions
It
has
that
we
have
we
rate
were
not
First
Boston
Corporation,
follows:
as
said
dropped
never
of
through
me
approach
committed
inflexible 6% return.
The
its
to
the
an
history
natural gas regulation dem¬
onstrates that conclusively.
But
our
even
if
such
industry conclusions
valid
it
then
that
violated
standard.
was
Those
industry itself
the
that
alleged
complain
the
to
the
of
sales
to
an¬
in¬
an
pipeline
one
figures.
employees
There
and
highly
technical
the
it
in
might
This
and
is
the
at
rate
selves.
Its
A boon
competition
dustry.
with
sion
through
private
in¬
Both make it difficult to
839,
was
Sept.
27,
interim
of
rising,
of
the
In
manpower
has- been
steadily
particularly in the
Perhaps because it is
field.
pay¬
payroll
671.
was
declining
workload
our
last
our
1952,
average
rate
a
po¬
fil¬
excesses
for
by the Commis¬
its
overburdened
40%
of
natural
the
has
tendency
filing
to
company
its
expected changes in cost for
the
justification for increase
future
rather
than
upon
ex¬
periences and facts in the past and
those reasonably to be anticipated.
This also is aggravating and
rate
Presently
at
hearing
filing in
our
are
we
in
bur¬
en¬
largest
history in which
the tiling was made in
May, 1952
the claimed test year is 1953.
and
Furthermore,
facilities
it
that
includes
have
not
some
yet been
certificated. We should appreciate
from the pipeline companies. Rate
Federal payroll but from my own
filings
knowledge
the
battle
of¬
be
of
and
the
conditions
as
administrative
Federal Power
that
can
state that
Commission
has
is
more
duction is
The
manpower,
one
far
so
figures
pro¬
elementary method
of speeding up our rate processes.
The
Commission
looked
other
has
not
over¬
We:
relief.
have
streamlined the procedure dealing
with rate filings and in particular
the
preliminaries
allowance
rate
filings.
which I
I
important aid in
either
staff
taling $139
volving
20
million
I have
that
sure
N. Y.
Group of ISA
Most
have
cases
of intervenors and
so
because
William M. Rex of Clark,
&
Co.
New
York
ment
viously, the
the
a
pre-
the
d i
n-
the
Hotel.
W.
Robert
of
Fisher
Blyth
Co.,
&
Inc.
was
named
Vice-
Chairman and
Robert
E.
Broome of the
Guar
Trust
William
M.
Rex
t y
a n
and
Secretary
Company,
Treasurer.
Harold
Woods
of
Fenner
Co.
&
&
of
Cook
H.
Trask
Lynch,
Merrill
Beane
Spencer
A.
Richard
and
Pierce,
elected
were
to
three-year terms on the Executive
Committee. Walter F. Blaine of
Co. and Hugh
Goldman, Sachs &
Bullock
of
elected
to
Bullock
Calvin
serve
dressed
University.
Columbia
ing,
dinner
annual
The
Dunning,
R.
of Engineer¬
School
the
of
John
Dr.
Roos,
F.
Econometric In¬
the
of
and
stitute
ad¬
was
Charles
Dr.
by
President
Dean
forum
annual
The
were
officio
ex
as
committee.
of the
members
ad¬
was
Joseph T. Johnson,
Milwaukee
Company, Mil¬
dressed
The
by
waukee,
Investment
President,
Bankers
Association
&
America,
of
Arthur
H.
Cromwell,
Dean
of
Sullivan
attorneys.
understandably
wide
effect
of
intervenors the
the requirements
under
the Invest¬
of
of
at
at
ner
New York Stock
Administrative
Procedure
Exchange
Weekly Firm Changes
Stock Exchange
The New York
protracted the hearing, par¬
ticularly
of
more
Group
of
the
of
Bankers
Association
and
increases in natural gas rates. Ob¬
more
Committee
Executive
the
Dodge
Chairman
elected
was
large numbers
the
of
ij
Elects New Officers
or
has announced the
following firm
changes:
Transfer of the Exchange mem¬
Act.
"
This
rather
given
lengthy
recital
that
demonstrate
to
is bership of the late Edward Schathe fer, Jr. to Ben W. Boas will be
considered by the Exchange on
and
ciety
the
are
prove
in
data
to
be
reducing the
in
of
our
tion
way
of
to
inform
obstacles
to
rate
a
per year.
filing
increase
per
in¬
der bond.
were
sus¬
rates
are
Management can't know
to the company or
taling $795,000 were accepted.
creased
until
the
un¬
final
belongs
to the customer
decision.
operating costs
The
are
in¬
pres¬
H.
Exchange,
nership
in
member of the
Baker,
will
retire from
Coe
Jacques
part¬
Co.
&
31.
Oct.
Now Chiles-Schutz Co.
the Com¬
collected
6.
Seth
rate increase
by
which dollar of the fund
pended, three filings totaling $25
were rejected and six to¬
No
a
Nov.
lie
speedy determina¬
is suspended
increased
million
so¬
OMAHA, Neb.
mission and after five months the
to¬
year
the
which
applications.
We are fully aware of the bewil¬
derment which must develop in
increases
companies
real
sibilities
1952, rate increase fil¬
analysis
equally
to discuss them.
me
a
must
readily ascertainable.
management when
fiscal
that
sure
am
Commission is alive to its respon¬
case
ings totaled $165,000,000
After
facts
on
as
the decision
the
lag.
In
made
intended
never
wits,
the
the standards
believe will
were
of
to
we
presentation of rate
which
an
Presently
major
are
do not have the patience for
you
this respect
of
leading
suspension
of revising
process
for
or
better cooperation in
as
concerned, it
application.
no
Com¬
in
topics for discussion in themselves
the
litical year there has been a great
deal of talk about reducing the
of
about
you
and electricity at the
gas
Federal level. But those
initial
the
upon
densome.
our
them¬
the
or
of
base
gaged
1949
content
The rendering has on occa¬
reached
intact.
In
we
but which must
out
Again,
boon
Com¬
company uses
purposes
rendered
fill vacancies and to hold the staff
roll
filing
for the
a
which
filings
"fat,"
filing.
because of
matters
interest
business
which
frequently
grown
higher IQ standard; a burden
trying to preserve that standard
in
Very
contain
trading
be
con¬
the
in
increase
salary.
time
same
burden.
a
we
connection with the regulation of
di¬
other
10
the
the
from
exceeds
average
of
burden
results
the
professional
slightly
governmental
other
are
I
Pierre
face
sion
is
we carry
administer.
America
either
reactions
work
further
staff.
staff
to
objectives of the Act
the
from
mission.
which the
round
chain
the
of
in
delegated
jurisdiction
our
the
out
and
ultimate
gas
resulted,
such
appropriation
an
must
duties
important that within the frame¬
work of
multi¬
of
instance
one
indirectly,
or
is
the
say
and
be
chain
a
company
rates
Southwest
sisting principally of accountants,
engineers and lawyers. Because
that
forsaken
base
were
the
is
overall rate base approach
a
fixed 6% return.
Let
overall
the
at
up
of
obtaining
company
ings
$4,000,000,
activities.
concluding this discussion of
In
in
crease
to
interrelation
down
on
It
staff numbers 670
ficer
forcefully than words why secu¬
rity analysts are
interested
in
it sets
pipeline
one
rectly
attempt
because
and
consumer.
smallest of the
more
the
to
reaction
independent agencies*
on
same
the Congress. Justice cannot
sacrified to expediency. It is
their costs through in¬
rates,
plicity
staff-
and
lars,
fair and reasonable return
In
companies
recover
creased
bipartisan
a
More dol¬
a
do
A
speak for themselves.
case.
compa¬
you
the
it by
doing business that every¬
experiencing these days. As
is
these
problem.
still
according
gas
at
pos¬
sure
Commission
the
the
pyramid
a
ment
gives
that
ganization and methods would be
helpful to an understanding of
the
large.
time
perform
some
am
recognize
annual
Perhaps
conclusions
very
clauses, the cost of
out
must
meeting
ceding
them.
executive
The foregoing figures tell more
pointed
sible remedies but I
It
ac¬
1951
have
costs of
one
without equivocation that
have
sympathetic.
are
we
I
in
As I have said
cognizant of the situation
are
and
companies filing for rate increases.
say
we
In
58.84%.
the chain reaction.
brief
description of the Commission or¬
me
mission, I
for
in
gas
Other
Power
involved through
increase
utilities
year,
of
few
every
result of the continu¬
multi¬
higher
panel discussion of
subject of regulatory
burden
operates
would
increases
a
increase.
The Federal Power Commis¬
the
for
provide
is
proportion to the
number of companies involved
which
contracts
condition
plied in direct
for
Interstate
The
meet
paid out to the stock¬
This
not the time and
like
merit
to
clause").
As
other
fashions.
increased
are
the field and the operation of the
tory commissions divided with the
hat
the existing
area,
purchased by the pipeline
At the recent Convention of the
together with
higher
a
cost increases flow from the
American Bar Association
sion
if
paid for natural
or
nies continues to
lag.
ques¬
Petroleum
paid but the in¬
the equitable por¬
likewise present
or
escalator
place,
Regulatory Lag
voted to the
the field
ally increasing demand for
ing principles should not change
lacking in
that
be
automatic
markers
the shoals.
on
in
Phillips
same
Other
years.
holder.
price (the "most favored
new
nations
estab¬
utility issues in both categories
represented a somewhat smaller
proportion but the percentage was
of
the
clear.
the
of gas
the
shall
of
so
Many of the
provide
price
too
yet
at the
our
end
in¬
ladies'
there
lished
1929
depart
we
were
reflect
give is that the fashions, like
hats, have changed."
If
can
Once
of
demands
contracts for
in the
gas
but can't be
areas
companies'
in
case)
said, we are con¬
in assuring sound invest¬
spectre
increasing
price is offered
have
cerned
marketing
cus¬
in the field.
purchase
tion
conditions generally."
ness
the
(which is the jurisdictional
become
and
of
must be
tion of them
we
caused
gas
the
'"A
flood
requirements of
in
pipeline
counted
which, in the judg¬
regulatory commissions,
have
for
What
year.
this
,
Increased
tomers
per
for
reasons
increases?
(pp. 692-3):
a
the
are
As
which
might be quite contradic¬
tory. It requires the assembly of
pertinent facts into supportable
taling $72,752,000
a
ment
and
an
adequate
return
materially contributing factor
thereon.
We have no interest in
to
the subsequent financial
de¬
encouraging speculation. The
bacle. Some years ago Mr. Hobart
Chronicle," in 1950 utility securi¬
leave you
impression,
for
yield
and
therefore
a
market for their common
stated
company
1920s
desire
future—in
fact, a further
increase is anticipated.
Between
July 1 and Sept. 1 of this year 16
rate filings have been made to¬
a
difficulty.
20 years ago.
or
Entirely
than
creased rates
can be seen for any let¬
in this workload in the fore¬
seeable
equity. Having themselves cut the
pattern, it was incumbent upon us
As
holding
it is noteworthy that according to
Rates
higher
that the excessive
agree
speculation
con¬
to
needed
as
be
is
maintain
attract
cur¬
utility
a
such
to
be
rates
ent and
up
attempt at justifica¬
any
to trim it up
might conceivably have
overall
percentages,
within
come
reasonable
re¬
require¬
showing how much each
yield for common stock so
make
all
in
preferred
stock
common
will
market
learned from the days of the
From
and
mind
attempt to make
earnings
a
given
market
value
any
prospect
even
other
greater
regulatory Com¬
to guarantee the
years.
structure
studied
the
tion
Actually, of course, the market
value is reflective of earnings and
later
are
right
without
price of utility stocks."
was
period of
a
The
his
would not expect
in¬
the very
of return
completely
support
event the relationship of
and earnings on com¬
stock
mon
in
"Anyone
op¬
eco¬
6V2%,
fix
not
are
in excess of 7%,
disregarding the al¬
leged 6% standard and apparently
Rate Policy of FPC Toward
Natural Gas Companies
portunities
sought
who
ones
do
we
6% return
a
37
Huey,
Chiles,
been
changed
—
The firm of
Schutz
to
Co.
The firm's offices
in
the
Building.
Omaha
uo.
has
Chiles-Schutz
are
National
located
Bank
>
28
The Commercial and Financial Chronicle
(1630)
Equity Plan and feel it is
stride
National
forward
nancial
Mutual Funds
Investment
security
Program
for
CANADA
REPORTS
Details and
Prospectus
SECURITIES A
RESEARCH CORPORATION
report
of
pension
that
in
in-
creasing living costs the pensioner
.s still receiving the same amount
...
.
m
i
?-eeuc
^
its existing pension
the
of
stock
pension
retired
to
The
during
his
them
no
obligation please send
prospectus on
mc a
will
vestment
both the
Canadian Fund.
depend
in
rities
stocks
common
Address.
The
held.
preciably
held
yield
average
,
.
_
,.
,
,
modern
require
ployees,
as
ap¬
on
a
which should produce con-
any
from
Sanders &
principal under¬
leading
of
the
plan
The
7,600
4,4,5
for
17,700
invested
in
Co.; Imperial
Shawinigan Water &
Power Co.; Aluminium Ltd.; Cana¬
dian Industries Ltd.; Consolidated
Ltd.;
Mining & Smelting Co./Ltd.; In¬
dustrial
Acceptance Corp.,
Ltd.
and Noranda Mines Ltd.
Royalite C.l Co..
226:562
Husky OU & Refining-... ' 225,853
Oil Cj.—
16,600
Home
27,000
12,350
12.500
Massey-Harris
objectives of Can¬
Henry
-
Miscellaneous
-
$144,857
Ford Motor Cj. of Canada 232,763
Royal Bank of Cane.da.l.
49,245
Bank of Montreal
31,771
4,450
1,525
1.000
Co
Bridge
Dominion
3,625
Gypsum,
Canadian
Co
of"
119,889
Canada
Industries......
360,543
6,200
Dominion Tar & Chemical
4.460
Canadian Wc-stinghouse Co.
255,104
315,917
651,153
Finance Corp.
President
Traders
15,300
Industrial Acceptance Corp.
Vance says: "American
T.
investors
approved at the last
stantial
19,000
Canadian
Fund,
demonstrating
are
interest
industrial
and
and
management
sub¬
economic
the
development
is
to
of
achieve
Canada.
long-term growth of shareholders,
the
of
new
Our
in
in
development
209,102
-
Lime & Alab.
hope
4,550
423,328
Railway
of Canada, %'j
preferred
Westeel Products.._______
5,200
The cost of the
21,146
Canadian I k. of Commerce
725
2,525
16,020
General
ada
the report and
on
the investment
216,667
293,906
735,854
321,615
Anglo-Canadian Oil.—...
Interprovincial Pipe Line.
Trans Mountain Oil
Pipe
9,750
ad¬
em-
Lines
leaseholds—.-_i—..(231,437
Wes.ern
15,000
accounting
assets
Pacific Railway
Oil
:
Oils—Pipe
4,180
dian
...—
Imperial Oil, Ltd.__.__... 8521,719
British American Oil Co, 2 >9,533
15,900
the
in
the Union Locals worked together
the
Noranda Mines
Cons.
Mining &
Inter-
meeting.
company
S43f5,459
3. 6,633
348,952
313,250
294,271
122,703
112,459
Aluminium
4,875
provincial Pipe Line Co.; Traders
Corp., Ltd., "A"; Cana¬
the entire cost of the
was
stocks
industries, were:
Commenting
new
Smelting
Int'l Nickel of Canida—
Hudson Bay Mining..—aHollinger Consol. Gol.l...
Asbestos Corporation
9,400
10,075
Finance
Equity Annuity Plan will be paid
shareholder
2,104
&
Power
Mining
Vance,
portfolio,
of
135,417
LI.458
Paper
Maclaren
40
11,500
ten
Canadian
living
contributions
for
143,867
of dealers af¬
fund's
solve
ditional
shares
Paper—
pjwer
Fraser
32,200
....
,
helps to
plan
by the company."
on
companies,
,
4,600
writer.
The
&
Anglo-Newfoundland Devel.
Companies
uj
13,000
been
the
Company,
company.
investments ordinarily
insurance
by
factor
will
secu¬
than the yield
more
the type of
City
current
President
Barrett,
,
T
jo
7,000
with
filiated
Long Island Lighting, stated, the
revised program will provide substantially increased benefits to
employee* forwith the
both past and fu¬
ture
service
costs and does not
in¬
expeiHence of the fund,
current dividend income
ni
and the market value of the
Nome
T
the problem of variations in
a
from
the
upon
F.
ward
This
income
The
in
are
shares
like
fund.
mutual
is credited
employment
which
units"
respects
many
of
years
"benefit
with
GENTLEMEN: At
employees will
employee
.
the plan, Ed¬
on
10,000
5,000
41.13%
commenting
10,200
group
a
Ao.lioi
Co..207.812
Howard Smith Paper Mills 205,859
Macmillan & Bloedel—191,406
then,
continuously
have
by
230,312
St,
9,500
1952. Since
18,
July
265 937
Corp,
Lroj. U
Price
6,700
received $10,175,-
the fund
on
Cj.__. .1
Lawrence
Powell River
9,000
dif¬
had
1,100,000
shares
L
^aL
^/^hination
Retirement Plans, which Long
s^an<^. Lighting is the first comP3"? ln the country to adopt, will
receive wide acceptance in the
course ol the next lew
In
with the value of the equity
vary
funds.
which
common
Unlike the usual plan, however,
income
of
investors
000
end
Value
__„$239.E83
Consolidated Paper.
8,000
1,664,565
shares outstanding. The original
offering by a nationwide group of
dealers resulted in purchases by
offered
.
.
Market
repre¬
50
companies,
quarter
years.
in
funds
..
'•
Shares
report states that the fund
10,000 shareholders and
.
other equities.
and
......
.
the addition of a companion Equity Annuity Plan which
represents an entirely new approach. The new Equity Annuity
Plan is based upon the investment
program by
Forest Products
the
over
the
at
cost of
prices are low the
ijvjng aiso has declined,
s^ocj^
Company has
1952, follows:
initial
for
of
stocks
common
The
has
but experience indicates that when
y
situation Long
sup-
n
Island Lighting
plemented
,.
.,
ada
senting 16 diversified industries.
hat lhis .can °Perate both ways,
after month.
month
the
ferent Canadian
?*• aPPrec'iation during periods oi
inflation; during the last 50 years
common stocks have, on the average, gained in value more than 2 /o
1S u, ^ recognized
means
times of rapidly
in
even
This
money.
shareholders
to
complete portfolio of Can¬
General Fund, as of Sept. 30,
The
enterprises,
an
Canada.
in
are
the
30, 1952,
shows approximately 85% of total
net assets of $14,632,388 invested
practically all exist- come for the same amount of cost,
ing pension plans the retired More important is the possibility
employee receives a fixed amount
Canadian
Inc.,
in
three months ended Sept.
Under
York 5. R. T-
120 Broadway, New
Fund,
investing
ties for the first time in
questionr/that many a worker is asking himself today, espe¬
cially when he realizes that some day he will be retiring on
the fixed income of a pension.
siderabIy larger retirement in_
SERIES
request
NATIONAL
principal
publishing its portfolio of securi¬
dollar buy 10 years from now?" That's a
"What will my
fund
of
stocks
Long Island Lighting Adopts
Fund Idea for Retirement Plan
GENERAL
mutual
a
SECURITIES
in Canada or whose
activities and interests
corporated
By ROBERT R. RICH
Account
through
greater fi¬
after their retirement.
An Open.
Investment
produces
capital and the income it
major
a
investing
in
common
employees stocks and other equity-type se¬
curities of companies
either in¬
toward
OPEN-END
upon
1952
Thursday, October 30.
:.
.
0
Pacific
638,281
Dominion Foundries & Steel
Co.
Steel
8,500
278,906
101,901
81,259
183,855
179,901
Dominion Stores..
14,800
Simps
4,100
ns,
Ltd....
Zellers
2.200
134,375
"A'"_
■'FS'mps'ir»<5
3 O°0
37,813
513,568
.
Shawinigan Water & Pwr.
12,025
7.3,5
Page-iitrsey Tubes..—229,857
Ra>..ell
anaustries
^
182,454
3,375
^
3.1 .o
CLOSED-END
INVESTMENT
STATISTICS
COMPANY
1952
ending September 30,
K, :y stone
Noil-Leverage, General Portfolio:
Adams
a
a
Trust
Property
Consolidated
Lehman
13 13/16
Certificates.
Company
50 Congress Street, Boston
Please send
Tobacco
9, Mass.
Funds.
prospectuses
D-52
National
describing
—
0.32
69.83
36.18
—
+ 8.5
—11.5
—33.5
2.08
f 1:15
/ 0.64
0.87
2.75
30.39
—36.7
—33.6
9914
161.76
—38.5
—31.3
2014
22.82
—10.2
—
21 3/16
24.86
—14.8
—17.8
i 0.87
j 1.15
net
in¬
the
in
American
Carriers
a
31%
33.47
—
8.6
k 1.11
Address
1
State
First
York
General
-
General
15.97
—17.0
—26.2
1.00
vm
13% -10%
,
6.7
5.1
—
Chemical Fund
314- 214
2!4
Rpilwav & Light Securities
—25.2
f- -..6
+12.2
+34.8
+23.2
m
0.63
31
-2614
21 %-1714
A Prospectus
15 95
20%
„
—37.8
26.01
2114
Securities
4.02
2814
Corporation.
American Investors'"
Overseas
23.08
—10.1
—16.3
n
1.05
2214-19
the
1.35
0.15
24%-2114
1%- 1%
4%- 3%
73
-54%
'
•
0.25
10.70
pany
Medium Leverage:
ing,
Capital
Administration
Equity
—36.9
—40.0
3.07
—43.0
—38.3
4.69
—12.0
—16.8
q
0.15
61%
"A"_______
37.06
414
Corporation
88.17
—30.0
—25.6
r
1.92
3.0
—32.7
0.35
None
0.26
0.95
shares,
including
price and terms of offer¬
available
is
upon
request.
1314-10
Unlisted
17
-1314
None
describing the Com¬
its
4.14- 3%
9%- 7%
General
Public
TT
Foreign Securities—
o-p
1%
&
and
Unlisted
None
23%
a
__
S.
sharer
&'/%i
33V?-?o%
1314
European
&
of
number
f r\
Conservative Leverage:
y
Investors
with
30,
22%-19
23%-201/g
__
Corporation
.
1,262,156
total
of
20
-1714
105%-88
h 23.84
1914
net,
1952,
Sept.
assets
81%-70%
3414-3014
18%-15%
e
—
$471,338,291,
ended
creases
995,632
______
for the three months
Trust reports
Unlisted
14 -11V4
—
a
Aviation
Petroleum
Name
City
1.50
—13.6
0.5
a
___
Allied Stocks
&
7.4
—14.3
(due
—
Non-Leverage, Specialized Portfolio:
Organization and the shares of your
your
ten
me
—
6.80%
less reserves
MASSACHUSETTS
Unlisted
16.12
1714
Association
Shawmut
1.40
d 0.18
30.66
g
a
Niagara Share "B"
The Keystone
35%-30%
2314-20Vs
28 -2414
—15.5
—25.2
*—18.7
—19.3
+10.3
6.7
—28 2
Corporation.
Shares Corporation
National
Price Range
77
33%
Trust
Investment
Insuranshares
BOND, PREFERKED AND
30li
a
Connecticut Inv. Management Corp.
Year
b$1.59
c 1.03
June SO
Sept. SO
—
8.63%
Nine Months
—19.2%; —20.9%
—16.0
—14.8
26.48
31.84
5.42
,
Latest Fiscal
Premium
or
—
$40.22
2214
257/s
4%
a
International.
Personal
Boston
COMMON STOCK FUNDS
I'cr Share
32V2
Express
American
Custodian Fund.
Net Assets
—
Dividend
Discount
Approximate
price
Sept. 30
Company
bills
Treasury
10/16/52)
Cash
Market
Investment
152,930
_
S.
U.
For the quarter
Service
EBERSTADT & CO. INC.
F.
39
New York City
Broadway
High Leverage:
uapitai
Administration
a
414
a
3%
North American Investing
a
10%
12.25
Pacific American Inv.__
a
6%
6.59
15%
123.94
"B"
Securities
___
Tri-Continental Corporation
U.
NVE5TDRS
+ 3.2
—28.8-
5.44
Central-Illinois
S. &
International
s
7 15/16
a
4.36
—13.3
+ 0.5
—34.2
—30.9
11.48
—
Tri-Continental
of
+eveiaEe
'
hoiaings.
..
_
A Mutual
Warrants!
preferred
.
^Holder of each
shares
Investment Fund
—28.1
414
a
between
offset
k-n Plus
bid
or
Corporation
at $17.76
asked
and
a
share.
.;
.
..
CT7
1825'
c+
...
'
'."V
-
amounts
paid-from
1—$2.18;.
m—$4.12
: +
>.'!
SCIENCE
realized
n—$0.85
F; --
Fund
.
reserve +>r taxes on ,
tton®
.•
"
'
+
Entitled in liquidation to $20 per share in. preference
A1J,
p
i
,
following
k—$1.72
:
unrefiteJd
+
prices.
unrealized 'appreciation.29 *
h After
Berkeley St., Boston, Mass.
£_;FOUNDEO
the
capital gains:
common
+ 4%- 3%-
V
.
,
I
SS&ana thercafter' M a clas*: :to 70S of '■
,
SI3-
■
.
'
Parker
government
/■'
i>e obtained
from investment dealers
The
by
perpetual warrant entitled to buy 1.27
Tri-Continental
Mean
stock
,
200
u
-
.
,
may
—18.3
8.7
—38.3
Warrants:
FOOTNOTES:
Prospectus
—
\
unrealized
deducting
$0.67
a
°"
rW*m
share
reserve
for
taxes
.
on
>
appreciation.
i Plus
$1.53
paid
from
j Plus
$0.50
paid
from
«»
»»W '■»»
.r Plus $2.58 paid from realized capital gjins.
'V"
s-t After
realized
capital
gains.
realized
capital
National
Association
following
taxes on realized appreciation:
gains.
Source:
deducting
u
of
per
she
s—$1.17
re*
J—$3.04
Plus $0.59 paid from realized capital gains.
Investment Companies/
-.
'•
•«
.
Investment Dealer
or
WADDELL & REED, INC.
.
for
reserve
Prospectus from youi
•
.
"-*•'•
/v,
-
Principal Underwriter!.
New York
City
<
101? Baltimore Ave.
40 Wail St.
;
Kansas Clty/Mo.
Volume 176
Number 5164 ...The
Commercial and Financial Chronicle
(1651)
holders to 94,509 and in shares out¬
standing to 12,160,555. The number
of shares and
sent
Continued from page 5
new
and
11,203,300 shares outstanding.
Net
.
this
value
asset
$38.76
time
last
after
was
from
.
with
distribution
the
sale
of
the
close
Sept. 30,
.
•
.
a
tion
shares
of
payable
share last
Instead
tations,
and
to
shareholders
October
doubled
outstanding to
the
at
the
24,321,110
time
same
automati¬
cally
;
on
cut
in
value
per
the
the
purchases
net
of
asset
made
"
during
;
the
Douglas
Public
Aircraft
Utilities
craft
&
ended
quarter
Co.
(36,250):
Co.
were:
General
Grumman
(20,000);
(15,000);
United
30
(15,000);
(11,000);
Engineering
Electric
Sept.
Air¬
Pacific
Gas
Southern
Aircraft
Corp.
Co.
(44.000),
and
Wcstinghouse Electric Corp. (13,500).
Among the sales of shares were: Ameri¬
,
Tel. & Tel. Co. (6,000);. Cities Service
(6,000); Gimbel Brothers, Inc. (12,700):
can
Co.
.
•
Marshall
Air
Field
Line
&
RR.
Co."
(10,000 >;
(9,000);
Seaboard
Standard
Oil
Co.
&
Co.,"
1
(Ind.)
Inc.
•
rights
40,000
!
in
•
-•
changes
shares
for
2
a
in
of
1
investments
Aluminium
split-up;
20.000
received
2
in
of
for
a
for
3
1
Southern
1
reports
assets
1952,
90,000
received
LIFE
in
$15,368,030
close
with
Net
increased
of
net
Sept.
30,
$14,415,477
September
value
asset
to
last
unit
per
$28.64 from $28.53
a
'
earlier,
year
•
,
four-for-one
cember,
units
.
adjusting
stock
The
1951.
outstanding
583.64
the
at
against
September 30,
the
in
De-
number
to
rose
end
total
a
for
split
last
of
of
of
536,month
505,168.56
on
1951, adjusting for
•
the stock split.
PERSONAL
S. WALDO
of
Company
Stock
,
PROGRESS
COLEMAN, President
Commonwealth
pointment
Mein,
board
as
William
two
ap-
Wallace
member
a
the
of
the
announces
of
Jr.
Investment
Commonwealth
and
Fund,
[in lieu of
of
"Financial
confine
we
misnomer; it should be "The
"Investment"] Survival."
Speculator's Case
readers with further specific
our
ourselves
to
summarizing
the
liquidity is worth
a
sizable premium;
conceiving
proportionate stake in the ownership of a
business concern, but a counter in the dramatic ebb
and
going
as
a
That
one
is
deal
to
in
price in lieu
value, attempting to anticipate the extent to which one's fellowpublic will subsequently aller the existing
price-value relation¬
ship; to cutwit the market's other buyers and
sellers; to outforecast one's fellow-forecasters.
goal
liauidity-cmphasis
should
be
to
a^d
quotation-consciousness,
that
appointment fills
cancy
caused
the
the all-controlling
psychology [truly
unpredictable] of the market, to be a stylist in the picking of the
"popular issues [pandering to the public's
growing Blue Chiv-
itis 1, md to guess the future
short-term price swings of that elite
"Blue Chip" group.
'
That so-called "internal market
analysis" is a valuable "tool."
That past market action contains vital
evidence about its future;
that the future course of a stock's
price can be determined from
its existing
behavior;.
j'SJian overlapping between the
past and the future—allceulMinating in reliance on
the fictional
existence of a- trend whose course over the next
month, week, or
ticker's-tick is discernible frorrr its
past pattern.
That
your attempt to "beat the market"
by a given
technique or "system" proves /abortive, it is not the sacrosanct
system, but your dumb mistakes'in practicing it, that are at fault
—"the guilt is personal."
•
* •"%;'
All
no
being
away
from investor '-motivation by business-valua-
determinants,.which, as harboring
than the
author's^olite bow.
too many
more
difficulties, get
In addition to
expounding these highly questionable
the content lacks
continuity, the volume
consisting of
of
articles
thus
necessary,
Independence
of
component
likewise
is
rendering
them
this
misnomer.
a
For
a
doctrines,
"An
ability to
aid,"
says
need
written
Mr.
into the future would
see
Merritt
in
his
forced
the
be
to
known
content
facts
in
audiences
to
the
the
Federation
own
gamut
conclusion.
be
"It
of
incalculable
would
obviate
the
with
a
careful gathering and
weighing of
hope that from this spring-board an in¬
be formed.
We submit as a wiser and
the
telligent estimate can
more profitable
alternative
taking
.
.
.
[than chart systems]
long and careful look at the economic
a
this
of
process
facts of investment
life."
the
And
tionale:
perfection
in
following well summarizes the volume's
"None
the
of
but
this adds
up
to
thing.
sure
a
favor.
Over
a
broad
average
sound
ra¬
The hope is not
simply to increase the mathematical
investor's
formed investor will be
of
probabilities
the in¬
cases
often right than the uninformed."
more
And:
"Investment is sound when based
"When you buy a common stock you are
embarking on
in every sense of the word."
.•
on careful appraisals
earning power and dividends relative to price—and quite
something else again when concerned with buying highly vola¬
tile stocks in the precarious hope of unloading them on someone
else at much higher prices.
Good investment management has
very little to do
with guessing the short-term fluctuations in
stock prices."
of
a
business venture
_
And
the volume's final words:
to
and
the
from
network
lay
of
merits careful
Women
Shareholders); the work
scrutiny by hard-boiled trader, thoughtful investor,
and academic
scholar.
And not the least of the
plus-es of the book and its author is
the record of his material successes over
the years.
Mr. Loeb is
certain that these have been derived from
following his own rules.
But we are not so certain.
Actually, has he not to a great extent
been playing the market
"by ear"—like so many "teachers" in all
fields who in their own behavior
unconsciously forsake their
the
brief is the
sub¬
lesson—to adopt a systematic, businesslike approach
to be value-minded rather than quotation-con¬
our
scious; to
keep
objectives within
miracle
market will be
book's popularity
radio
"And this in
investments:
safe
a
to
reason;
these
If
men.
found
pitfalls
running
the
which
painstaking analyses of individual stocks or for timeconsuming studies of business and economic forces. Unfortunately
that happy possibility is denied to all of us, and
lacking it, we are
rather than
discussion
title
a
for
collection
in
psychological foibles, and his
Stocks/'
is
the
ume
clear presentation of its
majority-embraced side of the speculator's
case, the author's sophisticated depiction of the market's
(in
Common
duologue,
modestly encourages intelligent and logical behavior by
emphasizing the realistic limits of what can be accomplished and
what is foolhardy' to attempt, in the wise
employment of one's
capital.
"Through judicious investment and application of the
compound interest principle, the long stairvay to financial inde¬
pendence can become an escalator," contained in the "blurb," is
the maximum promise held forth
by the author.
stance of
and
Through
investor
author,
Robert D.
Merritt, who is financial editor of United Business Service, offers far
more than a mere
"plug" for common stocks as a get-rich device.
Instead of picturing a glamorous course to
quick gains, this vol¬
over
the years, arranged
ip chronological
logical order. And the book has no index. Never¬
theless, because of its clarity, its popularity, its authoritative and
rather than
rules
Investment—Getting
the
act
businessmen
as
observed,
are
and productive
the stock
place for savings."
Right
Odds
Within the framework of this
philosophy, investing procedure
is spelled out in 19 chapters running to 346 pages. The first seven
chapters, comprising the initial part of the volume, are concerned
with methodology.
In this section's chapter on "Making Money
Work," there is a table embodying a "ladder of yields," showing
the return
obtainable
ranging from
trust
\Vz%
company
the
on
ffom
to 6V2%
various available media for
the
savings
railroad
on
department
common
of
stocks.
savings,
bank
a
or
Granting the
premise that risk rises with yield, the book discards as over¬
simplification the adage "investments which make you eat better
also make you sleep worse."
It devotes itself rather to showing
that through
intelligent analysis and understanding, a wider range
opportunities is opened up, making possible increases in income
exceeding the concomitant rises in risk. In other words, that the
of
intelligent investor should be basically concerned with the hardbut legitimate aim of "getting an edge" via income in
va-
boiled
by
the
death
of
Roy
W.
Mein
Mr.
rector
of
was
dent
is
President
and
Calaveras Cement
Di-
Com¬
and
Bishop
Oil
recently
Company
elected
Director
of
A
Diversified
Investment
Fund
Presi-
member
the
of
Prospectus
Canadian
Board
of
in
the
devotion
a
of one's capital; that
measurable value situation
ticker movement.)
on
ment
book's
upon request
on
trust,
the
what
and
when
to
about
do
can
inflation. The highest com¬
hand the volume is that the section
to
buy and sell, with a discussion on forecasting
methods, (including a sub-head "The Crack-Pot Cult"), consumes
only two of 19 chapters.
Di¬
Lord, Abbett & Co.
rectors of North American Invest¬
ment
—not
pliment that this reviewer
Bishop Oil, Limited. He has served
a
involved
second part is concerned with What To Buy,
encompassing the choice of stocks, the reading of the annual re¬
port, the place of the Blue Chip and the Growth Stock, the invest¬
•
as
risk
is, in getting favorable odds. (Odds in
The
Fund
and Vice-President and Di¬
pany
and
Affiliated
Cloud.
rector of
of the
excess
%
;
when
And:
when
'
!
the
master
companies. Mr.
Mein's
quo¬
book's
it.
see
flow of market movements.
in
Fund
total
on
a
of
tion
compared
the
at
and
Co.
increase
an
to
year.
.
of
split-up.
MASSACHUSETTS
.
received
shares
split-up,
Pacific
is
were:
& Company received
in a 2 for i
split-up; '60,000 shares of Dow Chemical
a
;
Ltd.
Deere
shares
-
Wilson
and
(27,000).
Other
.
■
(75,000),
will
we
That market
In
shares
title
burdening
share of stock not
share to $19.38.
Among
half
of
pervasive theme, as
'.
business
special 100% distribu-
in
number
of
volume's
The
a
of
As
the
Battle for Speculation
••••«
-
■
profits
rules
,
twin
Truly
increase
of
per
Observations...
at
securities
amounting to $1.10
December.
was
$38.42
The
year.
"
share
per
compared
out
completely irrelevant to their achievements?
shareholders repre¬
high points in the com¬
pany's 28-year history. A year ago
the trust had 86,509 shareholders
J
neatly-laid
39
New York
Corporation since 1943.
Chicago
—
At lanta
—
—
Results in the Market Place
Since
Los Angeles
the
valuable
information
about
actual
results
attained
by the competitive methods unfortunately is almost always un¬
available, data from Mr. Merritt ensuing from his own activities
in investment
counseling are most welcome. In reporting on the
handling of a typical account, he states: "At all times
successful
in
Deiavtare Fund, Inc.
this account,
definite and continuing effort
a
reinvest
where
better
primary interest
was
results of individual
Aviation Group Shares
Bank
market fluctuations.
We
are
Group Shares
Insurance
on
Group Shares
Investment
a
that
prospectus may be obtained from
Ltd.
HARE's
19
RECTOR
NEW
YORK
by
"V-
our
There
seems
LTD.
300
UNDERWRITER
6,
N.
DISTRIBUTORS, Inc.
or
the above or local dealer.
your
investment dealer.
existed.
a
period of
years,
The
substantial rewards
Flaws
be
over-emphasis
imperfections.
on
dollar-averaging;
the
and
It is
uneven.
tempting formula me¬
under-emphasis
on
the
with
broader
the
for
errs
current
annoyingly enough, is without
an
index.
purview to this columnist (who is sometimes
maintaining
somewhat
foibles
as
on
an
"over-pure"
the side of
Blue
investment
attitude)
compromise; in temporizing
Chip-ism, in
over-emphasis of the
inflation elements with their impingement on value-criteria
without
Y.
Prospectus may be obtained from
to
And this volume, too,
the book
Broadway, Camden 3, N. J.
opportunities
ever-growing market factor of selectivity.
In
STREET
Over
The
t
DELAWARE
and
observing and comparing the operating
companies rather than trying to profit from
The volume, of course, has some
criticized
Distributed
values
in
be expected from this 'value' approach to investing, though
chanics, including
NEW
Shares,
may
made to salt
it requires careful analytic studies and much patience."
after
Funds)
Of
Institutional
or
announce
NOVEMBER 4, 1952
Stock and Bond Group
Shares
(Mutual
pleased to
was
profits in stocks which had outrun their prospects and to
away
proper
But while
weight to
Mr.
deflation
Merritt's
(and
forces), etc.
methodology
may
not be
quite
pure
enough, his book assuredly is constructive and important in stim¬
ulating the manager of capital to follow the road of realism.
-
'
40
the first
Continued from first page
-
-
.
istan
following the
Although the
months
nearly
nine
to
12
everywhere,
although the timing
varied
somewhat
individual countries.
In
start
of
hostilities.
of
timing of inflationary
occurred
consumers
this
cycle
among
the
United
States, for example,
the
upswing phase lasted from
mid-1950
through
the
second
quarter of 1951; the downswing
from the third quarter of
1951
through the second quarter of
1952; since then, signs of a less
spectacular but
sound up¬
a more
swing in many sectors of business
activity have appeared.
The
Communist
Korea,
in
of
wave
world
attack
on
June, 1950, set off a
speculative buying the
in
over,
shortages
anticipation
of
high
prices.
and
Heavier buying was made possible
by accumulated liquid savings and
payments difficul¬
ties varied among different coun¬
the causes were the same.
for ex¬
tries,
Great Britain and France,
most other
ample, lagged behind
high imports. Actually, the larger
forced
were
countries
These
1951.
of
ance
conse¬
favorable bal¬
payments position until
quently enjoyed
a
1951,
when
the
necessity
for
larger imports and then flights of
capital
payments
large
caused
deficits and loss of
reserves.
con-
tinued high
while the value of excollapsed. Sooner or later,
countries
forced
were
to
curtail their imports.
The
in
decline
ized countries.
Inventory Boom Halted
material
raw
By the end of 1951,
coun-
tries of the world
were experiencing improved balance of payments
positions. This did not apply, how-
ever, to England
Their reaction to
Korean
later
had
war
that
than
of
France,
and
th£ outbreak of
the
occurred
,
others.
At
the end of 1951,
they found it necboom was, in part, the result of essary to undertake vigorous
ernment
measures to protect their rapidly
materials for stockpiling and by governments' actions to stabilize
their economies. In certain cases, dwindling reserves. By mid-1952,
rising defense expenditures.
however,
despite
a
decline
in
Throughout the world, this in¬ price controls were put on. Sys¬
commodity exports due to the imcreased demand resulted in infla¬ tems of priorities and allocations
for scarce raw materials were es¬ port restrictions imposed by other
tionary price rises.
countries,
the
United
Kingdom
tablished.
The International Ma¬
What
Happened
The prices of
which
to Prices
The price
dramatically.
most
rose
of Australian
wool, for
tripled between
example, nearly
June, 1950, and March, 1951; that
of Malayan rubber increased three
and
half times;
the price of tin
more
than doubled.
With rising
prices and
a
rising volume of
a
sales,
the
exports
enjoyed
large
and
an
upsurge
less
of
in¬
are,
countries
the
part,
are
food
therefore,
and,
Those
come.
which
of
producers
materials
raw
of
countries
those
large
in
consumers'
of
goods.
They also enabled governments to
forward
press
economic
their programs
development.
In
for
each
this meant an expansion of
imports into these countries. More
case
consumers'
goods
goods
purchased
were
industrialized
and
capital
from the
countries
of
Meanwhile, the prices of
goods—both
producers'
found
Western
of
that
but
to
a
than those of pri¬
The industrialized
products.
countries
manu¬
consumers'
rose,
—
smaller degree
the
prices
Europe
of
they had to buy had gone
things
up more
than the prices of the things they
had to sell. Since these countries
highly dependent
are
for
food
and
their
international
sition
sooner
At the
cost
or
materials,
payments
po¬
later deteriorated.
time, the rise in the
same
of
imports
on
raw
materials
gave
further
a
impetus to the inflationary forces
which were already in existence,
caused by expanded defense needs
and by the swollen demand of do¬
mestic
and
We had
this
foreign
country.
and
more
We
export
import
prices
for
commodity
did
in
zero
to
decline
the
1950, but, because
last
to
half
our reserve
of
po¬
sition is incomparably strong, we
didn't have to worry about bal¬
ance of payments problems. More¬
since
over,
imports
are
small
a
per
cent of output, the impact
our
domestic
on
price structure of the
soaring prices of imported mate¬
rials
not
was
abroad.
By
wholesale
States
had
England
March,
about
world
the
France
brief,
in
it
was
1951,
where
the
United
only 15%, in
had
risen
about
30%.
events
in
as
risen
they
in
of
severe
as
prices
20%;
In
undertaken
and
Belgium,
i *
this
>vas
throughout
the
inventory
pattern
the
free
upswing phase of
cycle during' the
generally
quite
the
same
purpose
had
over-all
achieved
international
its
balance
accounts,
in.
even
excluding United States aid. The
French deficit was also brought
under control.
increases,
to
grams
expand
undertaken.
serious
were
the
And
shortages did
anticipated
to be as
people had thought they
as
not prove
going to be.
were
But most
curtailing the
market for textiles in every coun-
try of the world felt the effect of
a
slump in the demand for tex-
tiles,
in
rise
prices
was
In
from
accumulated
struction
earlier
period.
buying would have
of
payments
large that
so
declined,
balances
have
would
tionary
improved, and infla¬
would
probably
forces
have abated somewhat
out
governmental
to
measures
control them.
of
demand
phase of the inventory cycle, and
caused
collapse of
a
large num¬
ber of
primary prices.
In general,
those
prices
the
a
which
climbed
had
highest fell the
We
most.
devastating effects
which
lent
result
can
on
an
from
economy
such
vio¬
swings in world raw mate¬
prices. We are fortunate in
rial
not
being heavily dependent on
imports for supplies of most raw
materials—at
ent.
least
Because
for
able
were
controls and
without
sidies.
to
a
our own
needs,
institute
to
price
make them
resort
pres¬
such
supply
we
large proportion of
we
the
effective
expensive
sub¬
Also, because
we purchase
large proportion of world
a
output of
those
do
we
are
currency,
it was pos¬
sible to negotiate contracts on fa¬
vorable
terms.
For
example
1951
copper
from
pound,
some
we
Cliile
getting
were
at
27
cents
Europe
were
Smaller
paying
as
high
countries,
comprise 20
imports may
of the value of total
case
a
countries in Western
cents.
the
as
56
where
or 25%
output,
as
with most Western Euro¬
countires, find it practically
impossible to insulate their econ¬
omies from the inflationary effects
of such increases in costs.
violent
same
experienced
chief
For
of
example,
ports
from
source
ber,
by
of
source
of
more
instability is
countries
whose
income lies in the
primary
average
Malaya,
income is
than
together
with
countries
oper-
high level of economic
a
This high level has been gener-
ally maintained in 1952.
Europe,
it
In West-
represents
a
re-
markable recovery from the losses
of
World
War
II,
and
even
before
was
the
in
war
1938.
Per
capita output is 9% higher.
This
i"TlnT/^ output of
"j® ?%f
per capita
inprpTep
increase
products.
monthly
whose
tin
tripled
and
ex¬
chief
rub¬
between
reversed,
come
States, but
did not
we
have to
repair the ravages of
Also, at the beginning of the
our
in
had much
economy
it
than
dustrial
Europe
with
theirs.
in
12%
Agricultural
more
Since
production
has risen
war
in-
Western
compared
United
production
States,
is
15% above the 1948 level.
about
In 1952,
output in Western Europe did not
reach
postwar peaks
new
as
it had
in previous years, but it continued
at the
1951
postwar high.
Consumer Spending Picking Up
There
have
been
indications
in
the United States
recently that the
rate of consumer spending is pick¬
ing up. With private investment
and defense expenditures maintaining or surpassing the current
high rates, incomes will rise, at
least
the next 6 months.
over
Al-
WS economic often lag behind
stern Euiope developments m
ose,in *
are
States, there
.
already indications of similar
developments
of
defense
has
and
continued
there.
Production
investment
high and
to increase* recently
of
some
goods
is likely
textiles
consumers' goods
tion" in Western Europe. My ap¬
parent optimism about its current
position may, therefore, surprise
Actually, the situation as I
have outlined it seems to me to
you.
interpretation,
realistic
be
the
Western
Europe
made
has
a
re-
thing,-
Europe than here; For one
higher
rate 6f' Saving permits a; larger
propbi-tioh Of resources to be ^evoteel to defense production
or
States,
the "United
our
j
inflationary
without
investment
*
which a state
of full* employment t is ballooned',
into inflation comes sooner in Eu-.,
strains. The point at
Then, too, a high rate of in¬
dustrial production over the world
rope.
means
for
highr demand
ae-
raw im¬
material^ and: therefore the
pos¬
import, prices,
sibility..; of, rising
which could also add to inflation.
ground we've
To summarize the
that
covered thus far, we can say
today the free world economy has
recovered from the first shock of
in
conflict
armed
is
and
Korea
adjusting itself to the necessity for
defense
production. Most countries
the world have
markable recovery since the war.
The leveling off of 1951-52 is part
of the normal consequence of the
excesses of 1950. It affected primarily the soft goods industries,
It parallels in many ways what
we have experienced in the United States.
throughout
Concern, even pessimism, about
this leveling off is nonetheless
forward
understandable. I spent the week
achieved
Western Euiopean
Two problems weie
J*1®
countries,
uppermost in their minds.
First,
S?vAe a depression
ar? we
ln the United States and in Europe—when U. S. defense spend-
levels off.
Second, at the
°ther extreme, how can the 1mpac.t
defense program upon
their economies particularly the
inflationary impact
be contamed.
These fears are the result of
their experience in the interwar
years
between
1918
and
1939.
After the first World War, some of
these countries went through a
period of hyperinflation
when
savings were obliterated, when
prices rose so rapidly that, at first,
shopkeepers changed their price
though not
rapidly as in recent
is at high levels. If the eco¬
policies pursued by gov¬
rising
Production,
as
years,
nomic
the
reasonable,
tained
future
can
look
and
sus¬
moderate
to
are
growth for at least the next
two.
year or
The
Longer Run Outlook
there
Is
near
world
the
in
ernments
before last in Paris, talking with
economists from Britain, France
anc*
substantial measure of
a
stability.
anything
the
about
we
say
can
Are there
longer run?
which
have
sufficiently long
period in the recent past to en¬
able us
to
project their conse¬
developments
any
for
persisted
a
into
farther
quences
the future?
I think there are—and
of the world economy
For
a
sector
concerned.
are
you
in
with which
especially
world
supply of primary products—food
in
the
and
time,
some
last
15
and
the
years,
materials—has been fall¬
raw
ing behind world demand. Let
consider
industrial
first
terials—metals
and
us
ma¬
raw
minerals, and
agricultural products such as cot¬
ton, tobacco and lumber, but not
The
food.
these
for
demand
determined
materials, is
raw
the
by
ta&s several times in an hour—and
then finally closed their shops
completely and refused to sell at
volume of manufacturing produc¬
.a"*
manufactured
About
thirties,
early
the
Prices collapsed. Unem-
reversed.
social
and
ployment
results
duced
later, in the
situation was
decade
a
which
unrest
pro-
only too
are
well known
inflation
t
lntldtlon
U eme
that
It
long.
linger
larger
Europeans
deflation
and
and
venation
not surprising
want to avoid a
is
repeat performance of either, and
are ^ttery about a tendency in
either direction. But a state of full
employment with no minor fluctuations up or down is impossible
to achieve. Europe from June,
1950 to mid-1951 was subject to
inflation; subsequently there was
prod¬
time
won't
over
necessarily
be 1:1, for changes
technology
—
that
the
manufactured
by both
volume
same
is
goods
of
produced
different assortment of
a
materials
raw
in
example, the
plastics — will
for
of
development
a
primary
of
ratio
The
ucts.
requires
goods
volume
mean
Memories ot the chaos of ex-
increase in the output of
tion. An
and
different
*■ a
Technological progress
probably implies increasing econ¬
omy in raw material use. Both the
quantity.
total
of manufactured
production
and
products
of
materials,
raw
long period of time, cannot
at
widely differing rates
over,a
grow
serious
without
effects
their
on
relative prices.
A
chart
I
have
with
shows
me
private demand, partly
corrective measures
which were introduced. The level-
changes in the physical volume of
ing off of European output is less
excluding
lull in
a
the
result of
desired
^o
continued
than
stability at a high
"stagnation."
growth,
but
level
hardly
is
production
The
present
without
We
do
its
not
situation
dangers,
manage
is
not
however.
our
If
economic
affairs wisely in the United States,
we
cowid experience a recession
when
And
this
military spending levels off.
even
moderate recession in
country
auence5.
fqoT
a
in
reaSons
has
other
which
major
I
have
But
elabo-
I J638®115 wl^lcn 1 ftave eiaoo
length elsewhere, and
whole
You
production in 1950
world,
will
note
was
40%
over
larger than in 1937. Over the same
raw
however,
materials
creased
the
volume
produced
only
by
agricultural
raw
20%.
had
Moreover,
while
had
actually declined
—
of
in¬
materials—prod¬
ucts of the farm and animal
ucts
prod¬
by 8%,
output of metals and fuels
nearly
kept
pace
with
total
manufacturing production.
conse-
countries
the
that the volume of manufacturing
period,
Situation Not Without Dangers
for
Russia.
World-wide
conceal
•
figures,
however,
significant
changes.
Since
some
graphical
manufacturing
production
geo¬
1937,
in
the
world, excluding the United States
from
the
p
here, I do not believe that a
fecession in the United States is
inevitable, or even likely if, both
ln Priva^e business and in government, wo act sensibly and use
as
in certain
primary
of "stagna-
in terms
have talked
the-in¬
likely- in /
wh'cl? would take too long to re-
coun-
low-Also those countries
producing
are
may
upon
flationary. This; is more
ex-
Kingdom, to nonsterling
countries are rising.
Inventories
of
imported raw materials and
are
You
government
productive^re-^
verge
may
sources
v
risen;
United
tries
likely to be absent,
have read certain
newspaper reports recently which
purchases
textile nrices
in certain markets have
ports
1951, for, barring a turn for the
in the international political
abnormal speculative
outlook,
war,
slack
1948,
in
37%,
the
of inflationary
re-emergence
the
in
full circle,
perienced in late 1950 and early
in
the United
we
pressures, but in a much
more
moderate degree than those ex¬
some
improvement over prewar levels,
Total real output in Western Europe is over 20% greater than it
is
pean
The
ating at
activity.
a
preferred
in
investment
„
materials
import, and because dollars
while
private
industrialized
the
in
this country do not appreciate the
the
rising
rates of defense production, kept
ern
begin¬
ning in the spring of 1951 marked
the
advent
of
the
downswing
easing
and
industries,
with¬
even
despite
in certain consumer markets,
high rate of activity in the con-
been
Stocks had become
however,
country,
lull
a
the
to
country
general,
the level of inventories which had
during
again, the timing
although,
varied
important, perhaps, in
production
the
materials.
scarce
for
to
international
The abatement of demand after
tightening of
credit, and direct controls over the first quarter of 1951 was priimports and exports to achieve a marily the result of a world-wide
balance in international payments. decline in the demand for certain
consumers' goods and in the rate
Secondly, supplies
meanwhile
at which business accumulated inwere
expanding.
Vigorous pro¬
ventories. As 1951 progressed, the
capacity
tax
were
such
in
Our
surplus
nearly
had
higher
pay
materials.
many
consumers.
similar experience
a
of
measures
The
factured
mary
distribution
Other
formed
was
equitable
an
inventory
the
of
the
world.
and
insure
economically
developed countries of Asia, Af¬
rica, and Latin America. These
high incomes soon led to increased
purchases
halting
terials Conference
primary products,
the most volatile of all
are
prices,
The
intensified
was
been
have
cases
Thus,
WOrse
industrialized
the
of
most
the
throughout
the
by gov¬
purchases
of
strategic
Jt
SOme
in
and
some
time that their exports be-
to decline. Then imports
to replenish inven¬ prices helped the internatnonal fihigh prices of early nancial position of the industrial-
the
at
products had eased
mary
at the
They used existing stocks of im¬
ported food and materials during
the second half of 1950 and then
tories
willplac^'Vupon
tice
Western Europe and North America in the coming months may feel
ports
inventory
undertook
corrective
by mid-1952 could' noimprovement. Then, too declines in the world prices of pri-
sumers,-^business, and
measures,
imported capital and consumer
goods into these primary
producing countries started just
these
prevailing
world.
thereupon
.
the
flow of
gan
months., immediately- ahead,
'total- demands ; which con¬
which in late 1951 developed baL
ance
of
payments deficits
and
and
part of exporters are likely to be
followed by greater spending on
consumers' goods and therefore by
cycle.
the
in
countries
by liberal credit conditions gener¬
ally
price rises
balance of
and
1951; those of Pakjute — did the
Such high earnings on the
cotton
—
same.
World Economic Outlook
and
quarter of 1950 and the
first quarter of
1952
October 30,
The Commercial and Financial Chronicle .'/. Thursday,
(1652)
prod
ne
to°ls available to
us.
t s,"*"* On the other hand, especially in
well
as
by slightly
the U.S.S.R., has growjl
more
than 20%, while
in the United States it
by
about
80%..
has grown
Moreover,
the
United States and Canada account
for practically
all of the increase
there has been in free-world pro-8* *
Volume 176
Number 5164
.
The Commercial and Financial Chronicle
.
.
(1653)
duction of primary products as far
said?
back
Europe, Australia and New Zea-
in
1913. This lack of growth
as
the
production
of
primary
products in the rest of the world
is
in large part explained by the
relatively low rate of foreign in-
in
vestment
countries
1913
tween
primary
other
with
pace
The
nub
of
of
to
manufacturing
a
be-
The failure
production
has resulted in
of
1950.
is this:
material
raw
Canada
and
the matter
producing
than
keep
output
growing scarcity
materials.
raw
In the
of the
case
production of
food, the picture is the same except that the divergence between
demand and supply has become
even
acute
more
in
recent
The demand for food
years,
depends
the size of the population
on
and in-
come*
A
second
chart
1937
shows
that be-
and
1950, while
population
increased
world
the
by
11%, food production increased by
only 5%. Most of this increase in
production,
In
this
and
the United
country,
increased
took place
moreover,
Canada
States,
food
production
while
36%
population
increased 18%. In the countries of
South and Southeast
Asia, total
production of food is actually below its prewar level. It is difficult
to
estimate
real
income
in
next few years at least, the neces
sity for programs of defense pro-
these
fundamental
are
to
>a
higher level of production. But
land, and North America output duction will continue and that they are also the
public-utility
per man at work in agriculture productive resources will continue
type of project that, in an underhas been increasing substantially to be used to produce arms. Fur- developed
country, only a governa result of
mechanization, fertilizers, greater knowledge of the
of farming, etc.
On the
other
hand, in these countries,
as
science
ther, it is
still
unfortunate fact, but
an
that
fact
a
nized, that the
E'urope
must
be
recog-
of West-
resources
ment
will
only cost
undertake. They not
they all involve
imports. Whether or
money,
expensive
increase the amount of
that we have been lending
Between at the same time provide the ris- and giving to
these countries to
1940 and 1950, the male rural la- ing standards of
living which are belP finance this development, it
bor force fell by 15% or more in the only
really effective answer \s likely that their demand for
the United States, Australia, Can- to
the
Communist
propaganda, imports in general, and imports
there has
been
marked
a
decline
ern
not yet adequate
are
to support defense production and
n°t
we
money
in the rural labor force.
ada,
In
New
the
trends
tially
and
Sweden.
countries
these
likely to continue, with
are
increases
in
output
per
man
counterbalanced
par-
by
de-
in the number engaged.
creases
the
Zealand,
Western
less
economically
countries
tween
in
In the countries of Western
little
In
developed
information
The threat of Communist aggres-
*rom the United States in particu-
sion
!ar> Wld exceed the supply of
?! +s carrently becoming avail-
exists.
But
this
is
another
of saying that the scarcity of
least for Western Eu-
way
dollars, at
rope,
has been aggravated by the
Communist threat and will prob-
But
the
threat
of
through, declines in the
numbers engaged in agriculture
are likely to be more than coun-
terbalanced
by
productivity
the
increases
which
follow
in
im-
could most easily be led into Com-
munism
,
WhTttten
be determined by
be
can
doneto
al
leviate the imbalance between the
demand
the
for
ability
thereby
American
to
enable
eoods
and
them
for
nav
and
'pro-
American
duCersV
ab°ut
40%.
In
the
Canada, it
Western
wnrlrt
States
about 90%; in
was
Europe, 15%.
Prim^rv
primary rroaucis
demand
Prn,i„ntc
for primary prodgeneral, then, and agricul-
products
in
particular, has
ahead of supply over the last
xun
15
United
was
Shnrf
in
tural
increase
7
rlu
The
wets
the
tL fXrl?
be
can
comfortable
more
The
years.
result
has
been
a
world-wide increase in the prices
of
primary
•the
products
relative
to
prices of manufactures. What
supply
wets
will
of
agricultural
catch
decline
with
up
take demand and
prod-
or
thereby
over-
cause
a
in
agricultural prices in
relation to prices of manufactured
•:§00ds?
strong
long-term decline in
relative prices does not seem likely.
a
First,
world
•every
the
is
population
increasing
of
the
and
gives
indication of continuing to
increase.
The rates of growth
increasing the world
are
In the
over.
•economically developed countries,
this increase in the rate of
population growth is the combined re-
•suit of
a gradually
decHning death
rate, and the fact that the average
•size of a family has increased and
in
will
decade
two
or
the
agricultural products
the
world
will
be
relation to
therefore
supply, and
agricultural prices
that
continue
to
bear
a
favorable
relationship to prices of manufactured goods.
Whether
United
will
in
share
this
strong
world
demand,
whether
States
exports of
agricul-
tural
commodities
their
present
will
relative
+v7
rX0nft?onarv S
maintain
expect t0
exports, however, is
another question.
The an-
to this question depends
how
this
together
with
the demand for American goods
with the ability to pay for them.
This inequality manifests itself in
scarcity of dollars.
a
If dollars continue to be
scarce
for foreign
countries
United
States agriculture is not likely to
its
share in the strong
is
inat
is,
each
generation
iTniP«c:
and because of
earlier marriage age, each gen-
oration comes around more
quickMeanwhile, in economically
•under-developed countries
such
as Japan and
India—falling death
ly.
—
rates have maintained
or
the rate of nooulation
increased
erowth de
™
The United States and
me unitea btates
world,
Europe have
come
of natural increase
lation of V/2%
prise
same
in
a year.
a
rate
their popu-
It
may sur-
learn that this is the
you to
that
as
to have
of-India,
where
a
higher birth rate is balanced by a
higher death rate. In Latin Amer-
ica,
other
Southeast
parts
Asia
of
and
South
and
Canada,
the
rate of natural increase is
Consequently,
it
that
world
•over
the
free
higher,
appears
the next decade
likely
population
or
two will
be
because
modities
ized
are
they
elsewhere
so
can
agricultural
com-
highly standardoften
be
obtained
Such is not true to the
degree
Those
of
manuTactu^ed
foreign
countries
1
fnr
fo^ward
pnrmnmir
countries
in
the
f°und.
increasing at more than 1% a
This is not an easy problem, and
year. The demand for farm prod- although I can pose it, I do not
Aicts, moreover, should increase, propose to solve it. Over the past
not only because of a growing three years between one-quarter
population, but because per capita and one-third of United States ex-
Investment
of
nrivate
United
bors, multipurpose power, irrigation' and flood contro1 facilities
and
such
Pr°Perly
are
Public
such
will
here. In recognition of its importance
and difficulty
the Presi^ent recently requested the Public
Advisory
Board
for Mutual
to
the
Director
Security to undertake
thorough review of our entire
foreign trade policies. It will be
studied carefully by the Congress
a
when the question of extending
Reciprocal Trade Agreements
Act comes up at the next session.
can onjy state the problem and
irldiCate its significance to agri-
culture* 11 is a Problem which is
worthy of your most careful atten^10n'
a
u
v
a-i
n
a
SOlltfl TCX3S Oil & GdS
«
.
Co
StOfilf All Sfllfi
U°" 0,°CR H"
been publicly subsciibed to. The
shares were offered
as a specula-
South Texas Oil & Gas Co.
was
incorporated July 21, 1952 in Delfor the purpose of explor-
aware
shaes,
the
political
stability
underdeveloped
countries is quite precarious. This
of
the
which
1,653,000
shares
,
^
i
a
-n
ii/i
nr-.i
Edward A. Meill With
French & Crawford
rrencn OC Urawrortl
duction of goods and services by
modern methods.
many
of
will be presently outstanding,
pro-
(Special to the financial chronicle)
^A^ANTA, Ga.
Edward A.
—
Meill has become associated with
French & C:rawford, Inc., .Marietta
undTr-
,
'otentTality bT^eveX
hpf,nmin!J
„n
important
aPtnniifv
these'
that
from
fnr
it
is
countries
to population,ofarea, free
be part
the and
In
natural resources, they outdo the
,
"atecapUal
eapuai
will now into tnese
D
that these imoediments
are
Management Corporation, 445
Grant Street.
over-
r»
T
1
u
•
a
ii
Paul H. Davis Adds
come.
7
f
imnlv
+n
mpon
(Special to the financial chronicle)
thnt
mean to imply that
private investment of U. S. capital
.,
DEN.VER>affiliated with Hamil~ ^rced J.
is
Rentena
uX tTe^aveTovld'fuffSenUy
aTong1^ road STveSpmenfso
of the free
,
fl$w\toVe*
wm
rmPAPn
m
t
^ou may be proud that it was abr0ad is unimportant, nor that C/™rb^
a f°rmer county agent, Horace we should not continue to take staff of Pau H.
v s &
10
Polmes °f Tennessee, who, work- steps to increase it. But its con- South La Salle Street, members
ing under the Point Four Program tribution toward solving the dol- of the New York and Midwest
.,
iLntt ^ fWe will of necessity be
LL^ALLdrantnrcvivp
Sm^
especially in the decade or
was foirm<sry
ah,ead-J[n the main» Hamml11 & Coany further govern-
the
apart
from
ment grants and loans, the
marv
available
means
United
States
fo?
to
power
more
by
than
more
60%, the potato
than
110%.
These
crop
im-
tween
of dollar
lies in increased
alternatives. Either
import
or
goods
goods and services,
exports of agricultural
are
likely
to
fall
provements, moreover,' have been
achieved at negligible cost. The
increase
in
wheat
production
alone was worth ten times the
brought about through
annual cost
reduction in
of the project.
Over-all economic development,
wiH
of
the
agree
world.
that
this
choice. An increase of
our
behind
think
I
you
little
imports
offers
our
a
trade
gradual
tariffs and other
restrictions,
if started
,
Joins S. A. Sandeen
1
is
now
affiliated
Sandeen &
14
p
can
more
0ur
those
we
a5o
(SpeCial t0 THE
T7V
ROCKFORD, Ill.-John E. Earle
a
can understand, u. S. imports of goods and servBy ordinary crop rotation, inex- ices. The problem thus largely
Pensive tools, and better varieties resolves itself into a choice be-
0f seec[} the wheat crop in this
region
has
been
increased
by
S
the
alleviating
3d-wide inadequacy^
purchasing
pri-
S
wt
S° iram?diately
imincrease as real in- ports of goods and services has
however,
entails
the
need
for mediately, would bring the addi•come grows and standards of livbeen financed by foreign aid pro- capital equipment. It means build- tional benefit of decreasing the
ing advance. This should be true grams.
People in foreign coun- ing transportation and communi- need for aid abroad. But the probnot only in industrialized coun- tries are as anxious as we are to cation
systems,
roads,
bridges, lem here is this: Can we, by tariff
tries but in the under-developed have done with these gifts, and
harbors, railroads, as well as im- reductions, cause United States
•countries as they make progress to provide for their needs, includ- proving methods of production of purchases
abroad
to
increase
in their programs for economic ing defense, themselves.
Unfor- the goods already produced there, enough to eliniinate, eventually,
development.
tunately, however, it seems rea- Irrigation and flood control proj- the scarcity of dollars without
On the supply side, what can be sonable to assume that, over the ects, production of electric power doing
serious injury to certain
•demand
its
eulf be-
^ay> foJ a oLsunnlv^To nut^t that the farmers
other types of exports, over the
long pull, unless a lasting solution
to the scarcity ot dollars can be
with
recent offering of 748,000
Second,
comtlr^iacements
fPU:rc®r?L+"PP1 y* ;L+P LI
?!Ui};ry'
llkely }° suffor more than many
problem
shares of South Texas 0il & Gas
Co' common stock (Par 10 cents)
at 40 cents per share by Hunter
Securities Corp. has been cornPleted> all of these shares having
we
more
of
that already have Untied States
S I hlVL
hi
in continnp to nnr_ people of India the hopes loi
a
machi™HI
better daily existence- This re"
cnase
Parts
ana
replacements vjvai
of
hopes,
moreover,
is
™m this country. For many of f.
j
based in increased agrithe new developments of Amen- culturyal yieldg achieved by simple
can technology, the United States changes in tools and techniques
™y
entire
implications for the future is too
iarge for me to attempt to cover
fact' of course> often makes the Street Building. Mr. Meill was
risks to i}'lvestors prohibitive, formerly with Couits& Co. in the
tween iivine* standards there and Als?' tbe existence °f nationalistic
trading department. Ralph T. Milin
developed
countries
alreadv leSislation» sucb as discriminatory
Jer Jr. has also joined French &
verv
great
d in e t pv' wid y taxation, has made investment in Crawford, Inc.
0n
around*
nf
telf interest
' certain. countries unattractive. In
.
.
„
..
on
Loader humfnl arian ?pite, ?f +tbe J"??8 now of; Wlth Hamllton Manage t
LnTinds it
that this fered by the Federal Government,
(special to the financial chronicle!
ao
developed
.
goods.
Western
western
?se wblcb
.
„
Aid
United States> goods they need industrialized
countries
most. Except in time of drought worid
or short crops elsewhere in the
'
same
•tries the birth rate has declined.
i.^aVe
hea
nmoramc
exnansion
aer sucn conaitions, ioreign coun
getting larger,
•an
some
ave enouSb to eat.
Need
fariieT Thtt T efchTnerftion rrstch^lk^stoegncouh: world.
continue
earner,
Lt
thp
Underdeveloped Countries
on
other countries of the free world,
solves the problem of equating
maintain
+ri
wouid *ak® !t into
swer
country,
r.pl,ua„„
irSAf
share
of
^his
can
dollars available to friendly
foreign countries?" Apart from an
increase
in
foreign aid by the
can
^ p!SLn AsS projects. The existence of
P y ld 7k°pli ?h7h hpadc. to facilities is necessary to the
world
quite
nilou+
the
in
or
ing for oil and gas. It is contemP^ted that at the outset this exvelopment of their economies or United States capital on a sizable ploration will be confined to drillthey will be deluded into choosing scale is not likely for two reasons, ing on the company's leases in the
Communism
as
the
alternative First, in many cases the types of Mary
Area, Jim Wells County,
means
of accomplishing this end. development which require capiTexas, which cover a total of
Professor
Dennis
Robertson, an tal first are not those into which 3,355.79 acres,
eminent British economist
spoke private initiative is likely to go.
The authorized capital stock of
with biting irony when he said:
The construction of roads, har- the company consists of 3,000.000
<<w
agriculture
States
United
total
Such
next
for
throughout
is the likelihood that in the future
the
the
demand
large
they be expanded
enough, to produce the necessary
goods for export?
enough,
°s 1'he™me
"How
as
At the same and convenient than theirs is. States capital abroadmustintime, however, the higher real inKnowing that something better is crease, or our imports of goods
comes
enjoyed in these countries
possible, they want a change. And and services must rise.
will probably cause a substantial one
thing we can be quite certain
Although
foreign
capital
is
increase in their per capita deabout:
They will get a change, desperately needed by Underdemand for agricultural products.
Either their standards of living veloped countries, as I have just
0n balance, then, it appears that will be increased through the de- indicated, private investment of
over
industries?
resources
make
question
are the economically underdeveloped areas of the world Federal Government
there
are
People in these areas are aware only two things that'we can do:
that life
domestic
foreign
are
primary products to
share in the strong world demand
of
This
fewwldbut roughly, between proved techniques.
1937 and
1950,
And
lbey will ?roc?e?, ^
their
Plans> lbe r.?,
! ?lr P.r°Sress, j
Communism
productivity is available, but the is
probably even more serious in
evidence indicates a very slight the
non-European countries, as we
increase in output per man, and in have seen in China.
It can take
some countries an actual decrease, the form of
propaganda whose
Primarily, their lack of progress
appeal is based on existing social
can be attributed to the fact of and
economic inequities. The most
underdevelopment.
If the plans
susceptible peopleare those whose
and programs of these countries standards of
living are lowest,
for
economic
development
are
This means that the areas that
carried
bem from them exports.
lowever, will
ably continue.
on
able
important
41
with
S.
A.
Co., Talcott Building,
Wainwriafit
Adds
Wainwrigllt
(Special to the financial chronicle..
BOSTON, Mass. — Francis H.
Grant is
affiliated with H. C.
now
wainwright & Co
60 State Street,
6
''
v
.
memoers 01 me i\ev\
Boston
Stock
Exchanges.
..
Grant
was
previously
,
«
Mr.
with Ed-
Mathews Co.
ward B
*
.
_
Ininc TarlrQnn &■ Cn
joins JdLivbun ut vaj.
(Special to the financial chronicle;
BOSTON, Mass.
jr#
,
,
bas
—
Edward Xi.
joined the staff
«
c
D
v
Inc
31
ot Jackson & company, 1 c., o
Milk Street.
42
The Commercial and Financial Chronicle
(1654)
Continued
jrom
Nash.
gains
sharp
attributed
"Ward's"
5
page
to
Chrysler,
Packard
and
Chrysler and Packard, it said, are swinging into volume out¬
put of 1953 model cars.
-The Slate oi Tiade and Indusby
It
a
year ago.
large
below a month
ago, 13% below a year ago, and at the lowest level in some three
and a half years.
However, the rate of failure, as reflected in
Dun's "Failure Index," was the same as in August, or 29 casual¬
ties for every 10,000 businesses listed in the Dun & Bradstreet
business failures were 9%
established in 19ol,
they were about even with 1948 and 1949. Casualties involving
$100,000 or more were responsible for the rise in liabilities; all
other size groups were less numerous than in August.
A ^notable
drop occurred among failures involving liabilities of $5,000 to
$25,000 which fell to the lowest number in four years.
Building permits issued in 215 cities (including New York)
during September had a total valuation of $388,886,585, according
reach
the
for September
peak
postwar
This was a drop of 5.8% from the corre¬
sponding 1951 month with a total of $412,834,648, and marked the
sixth month this year in which permit values were below the
year-ago level. Compared with the August figure of $394,624,682,
to Dun &
Bradstreet, Inc.
last month's volume
showed
1.5%.
decrease of
a
The value of building plans filed in New
York City alone dur¬
ing September increased 37.0% to $34,304,009, from $25,034,632 in
the
1951
same
month, but showed
a
loss of 50.9% from the August
of $69,916,114.
sum
Week Set at 105.9% of Capacity—
Off 1 Point From Previous Week's Ali-Time
Don't
into believing there
be misled
High
will be further cutbacks
in the supply of steel for
civilian uses, warns "Steel," the weekly
magazine of metalworking, the current week.
From the latest press conference of R. A. McDonald, Adminis¬
trator, National Production Authority, came reports that looked
like a new cut is in store for the supply of steel for consumer dur¬
able goods. Mr. McDonald was merely saying allotments of steel
are going to be what he said several weeks ago they would be for
the first quarter in 1953, only in his latest pronouncement he used
different terms in expressing it, states this trade publication.
What he said several weeks ago, according to "Steel," is this:
Allotments of steel in the first quarter of 1953 for consumer dur¬
able goods will average 60% of the allotment for them in the third
quarter of
That
1952.
didn't
quarter of the
less
mean
new
steel
would
be
available
in
the
first
The remainder of the steel produced in
year.
the first quarter is to be used
to fill orders carried
over
from
the
(revised)
and
in
the
first
consumer
Canadian plants turned out 6,297 cars and 2,425 trucks against
4,960
and 2,256 trucks in the prior week and 4,473 cars and
cars
They
strike, an
quarter
they
as
might get
all-out war or
even
have
been
allotted
in
any
it adds.
more,
some
Barring effects of
a
coal
cataclysm, steel production
record-breaking in the first quarter, for steel capacity
is still growing and will continue to do so for some months
yet.
should
be
Indications that the steel
way
auto
on
industry is making substantial head¬
in becoming current on deliveries is the revelation by the
industry that it will have received delivery by the end of 1952
all
steel
the NPA permits
this trade weekly.
Since
none
it to have for this year, points out
of 1953 will be needed, say the auto
makers, to get delivery
on their 1952 steel, they want NPA author¬
ization to get a full allotment of steel in the first
quarter.
Threatening to choke steel production was the work stoppage
coal industry.
While coal stockpiles are large, it
declares,
Youngstown steel plants revealed they would be affected within
in the
two
weeks
by
miners' work stoppage. Those steel plants have
three to four weeks' supplies of coal and coke but
would not be
able to operate that long, because of the need to
protect their coke
plants.
a
Mills are currently doing all
right on the other raw materials.
Most of them have good supplies of
scrap, and iron ore stocks are
good, considering the shipping time lost during the steel strike.
The American Iron and Steel Institute
announced that the
operating rate of steel companies having
93% of the steelmaking
capacity for the entire industry will be at an
average of 105.9% of
capacity for the week beginning Oct. 27, 1952,
equivalent to 2,199,000 tons of ingots and steel for
castings. In the week starting Oct.
20, the rate was 106.9% (revised) of
capacity and actual output
totaled 2.221,000 tons, the all-time
high record. A month ago out¬
put stood at 105.7%, or 2,195,000
tons, while a year ago estimated
output was 2,089,000 tons with the rate at
104.5%.
Commercial
ended
with
from
October 23
The amount of electric
energy distributed by the electric light
power industry for the week ended Oct.
25, 1952, was esti¬
mated at 7,696,243,000
kwh., according to the Edison Electric In¬
stitute.
-half
one
when
as
many
there
the preceding
155 and
concerns
300 in
were
in
139
rose
to
154
the
week
week, Dun & Brad¬
was
14,911,000 kwh. above that of the
ceding week when output amounted to
7.681,332,000 kwh.
pre¬
It
was
462,315^000 kwh.,
or 6.9%, above the total output for the week
ended Oct. 27, 1951, and
1,133,725,000 kwh. in excess of the output
reported for the corresponding period two
years ago.
Car
iLSao1/o
Is of revenue freight for the week ended Oct. 18, 1952,
832,377 cars, according to the Association of American Rail¬
roads, representing a decrease of
4,336 cars, or 0.5% below the
totaled
preceding week.
The week
below the
s
corresponding week
cars, or 5.9% below the
a
decrease of 48,271 cars, or 5.4%
year ago, and a decrease of 52,853
a
corresponding week in 1950.
failures
8%
^fssen£cr
above the
car production in the United States
last week
preceding v/eek, the highest point in 16 months.
not
favorable
before,
department
laggard
as
failed, however,
as
in
casualties
where
rose
74
to
from
in
as
increases
manufacturing and construction businesses succumbed than a year
ago, but casualties in other lines were off slightly from the 1951
failures
in
reported in
New England,
Middle
Mortality dipped
slightly in other regions. In comparison with last year, the Middle
Atlantic, East North Central, South Atlantic and Pacific States
failures
were
than
in
1951, while mild declines from last
year prevailed
in four areas, including New England, and no
change occurred in the West South Central States.
more
Wholesale Food Price Index Dips
to
further moderate
A
drop in the Dun & Bradstreet wholesale
the October 21 figure to $6.34,
year's low point of $6.31 recorded on
The 1952 high of $6.70 was touched on August 26 and
slightly
only
April .22.
from
the
to
+6;
East
to
+5;
Midwest
the
above
The current index at $6.34, compares with $6.38 a
previous, and represents a decline of 5.2% from the corre¬
sponding 1951 level of $6.69.
The index represents the sum total of the price per pound of
week
31 foods in general use, and its chief function is
general trend of food prices at the wholesale level.
show
to
-
the
+3
Shoppers
retailers
took
to
advantage
the
wares
Measurably
more
Grain markets
mixed with
were
week while
mixed
some
cities
wheat, rye and oats showing
barley moved lower.
factor
in
wheat
the
was
con¬
drought in the hard Winter wheat areas of the West and
Southwest.
relatively small.
wheat
in
trade
showed
improvement
Domestic supplies of
the first of October
or carry-over on
but
remained
wheat for milling,
were
export
reported at 1,180,000,000
interest
quite
in
soybeans had
corn
new
the second
Sales
of
Trade
to
all
last
depressing effect
on
on
those
markets
at
3,257,000,000 bushels, will be
record if realized. Export business in corn
few
a
a
estimated
crop,
largest
limited
cargoes
England
to
and
the
averaged
35,600,000 the week
on the Chicago Board of
about 45,600,000 daily, compared with
before, and 54,800,000 in the like week last
The domestic flour market
cake
of
15
and
cents
featured
was
family flours late in
in
wholesale
the week
As
continued lag in export business.
raw
sugar
to
rose
continued uncertainty
high
over
prices
for
next year's
the
year,
quotas.
of
due
under
to
colder weather.
values
the
weakness
which
influence
in
of
wholesale
sheep and lambs
were
Lard
prices worked lower, as did
levels since early May
heavy market receipts and continued
pork prices.
Cattle prices held steady;
touched
lowest
lower.
countered
delays
in
The
decline reflected general liquidation influenced by continued slow
smaller-
a
Domestic
mill
consumption last month, as reported by the Bureau of the
Census, totalled 736,000 bales, equal to a daily average rate of
37,800 bales. This was a slight gain over the August rate of 37,200
the
1951 rate of 37,000 bales. Exports of cotton
totalled 107,000 bales, according to the Census
This compared with 48,000 bales in July, and 146,000 in
Bureau.
earlier.
year
parts
many
ordering
en¬
due
snags
in
to
earlier*
.
Department
store
country-wide basis,
sales
Federal
Reserve
dex
for
week
1952,
the
the
6%
rose
(revised)
of the
the
4%.
Oct.
low
ceding
pre¬
7%
like
1951.
For
Oct.
period
18,*
increase
an
Jan.
1
department
to'
store
drop of 1% be-:
a
period
of
the
pre-'
York
last,
year.
Retail
in
trade
New
week
rose
above
week
and
was
comparable
a
18,
of
ended
the
1952,
the
the
of
week
reflected
For
18,
In
increase
weeks
sales
in¬
Oct.
recorded from those*
similar
1952,
ended
week.
an
was
four
Board's
above the level of'
preceding
week
.
a
taken from'
as
the
on
preceding 1
the
well
period
the i
above
of
last
year,
result of coder weather. The
increase
from
5
over
to
a
year
ago
ranged'
6%, according to trade,
observers.
the
to
Board's
serve
Federal
index,
sales in
New
Re¬
department
York
City for
the weekly period
ended Oct. 18,
1952, increased 4% above the like
period
of
last
ceding week
reported
week
crease
of
the
those
of
2%
level
Oct.
was
similar
18, 1952,
of
a
declined
like period of the
a
de¬
registered be¬
was
year
the period Jan. 1 to Oct.
volume
pre¬
1951, while for the four
ended
low
the
decline of 6%
from
of
In
year.
a
9%
ago.
For
18, 1952,
under
preceding
the
year.
September
-
•
-
Charter Securities
Retail
trade
in the
gained further momentum
Charter Securities
formed
Trade Volume in Latest Week Stimulated by
Colder Weather
nation
a
of
slightly
was
months.
August
during
the
volume
delivery
weeks
Spot cotton prices moved steadily downward last week.
months,
orders
in
an¬
shopping
proportions.,
recent
dollar
Merchants
ner-
nation's,
buyers
as
record
during
store
Although down slightly for the week, coffee displayed a firm
at the weekend, aided by better demand for roasted
the
holiday
According
new
undertone
hog
of
many
a
splurge
as
by a pickup in sales
prior to- a mark-up
hundredweight in prices.^ Buying of other flours
remained dull, reflecting large supplies of wheat in North America
coffee
and
markets
ticipated
per
influenced by
sets
Seattle
Trading activity quickened
ceptibly
Netherlands.
grain and soybean futures
week
year.
of
television
in
erings and bedding.
sales registered
The
con¬
Portland, Ore. Most frequently
sought by shoppers were decorat7
ing materials, washers, floor cov¬
of
and
others
lethargic demand.
sharp
of
corn
While
spectacular
over a year ago,
compared with 980,000,000 bushels on the same date
year.
Corn prices weakened under liberal receipts of both
old and new crop corn. The increase in the estimated production
as
last
week;
the week.
noted
tinued to tell of
vious
Export
in
higher than that of
and
corn
strengthening
principal
bushels,
of
wholesale
Commodity Price Index Closed Week
Slightly Higher
advances for the
tinued
1951
to many promo-4
household
goods was
rather
gains
apparel than
response
tions
.
Commodity trends were irregular last week. The daily whole¬
sale commodity price index, compiled by Dun & Bradstreet, Inc.,
finished slightly higher after touching the lowest level in over
two years a week ago. The index stood at 287.43 on October 21,
as compared
with 287.01 a week earlier, and with 304.18 on the
corresponding date last year.
The
comparable
The
the
of
their
promote
aggressively.
in
+7;
Pacific
boosted their buying
palpably last week as
of apparel
weather
to
and
aggregate
Wholesale
corresT
Northwest
and
Southwest,
+4 to -f8.
Coast
September 2.
and
higher than
Regional esti¬
-fl
was
food price index last week brought
was
7%
ago.
-f-2
The
Moderately to
Six-Month Low
.
3
year
ponding 1951 levels by the follow¬
ing
percentages:
New
England
Atlantic, East North Central and Pacific States.
had
from
money was spent for
level.
of
esti¬
was
by Dun & Bradstreet, Inc.,
be
oc¬
manufacturing and service. Contrary to this, failures in
wholesaling and construction
reflected mild decreases.
More
volume
t.~.e week
varied
in
curred
mated
South,
Milder
59.
trade in
mates
1939
pre-war
more.
or
dollar
total
retail
a
the comparable week of that year.
liabilities of $5,000
involving
August 1951.
rose
terms
interest.
year
a
city
large
were
that of
Retailing, manufacturing and commercial service had heavier
mortality during the week; the sharpest rise appeared in retail
trade
United States Auto
Output Scores Highest Mark in
16-Month Period
a oi
credit
most
with
to
A slight decline, on the other hand, took place among
ago.
year
and
total represented
the
up
in
Only
160 occurred respectively.
export demand, a slackening in the goods market, and
than-expected official September consumption report.
Loadings Continue Downward Trend
sales
even
those with liabilities under $5,000, accounted
for the week's rise, climbing to 41 from 17 last week and 30 a
live
total
chalk
comparisons
The
in
Small casualties,
and
The current
com¬
While surburan stores continued
Moderately
failures
This increase brought casualties about
1950 when
and
1951
industrial
and
street, Inc., reports.
Domestic
Electric Output Turns
Upward in Latest Week
six
recent months.
recent
other
the
in
relaxed
and
stores
2,163 trucks in the like week of 1951.
durable goods would get as much steel
quarter.
hours
to
ago.
year
than
receipts
helped to stir shoppers'
against 101,317 cars and 29,555 trucks (revised) the previous week
and 90,136 cars and 24,44.3 trucks in the comparable period a
third and fourth quarters as a result of the two-month steel strike.
Thus, makers of
the "past
during
As
months, most retail merchants had
larger
Increases
Steel Output This
101,317
many
shoppers to increase their spend->-
parable 1951 week. Late shopping
Business Failures Increase
Contrary to the downward trend in number, the liabilities of
failures increased about 23% to $20.1 million.
While losses did
bling temperatures induced
according to "Ward's Automotive Reports."
output for the past week was made up of 109,929 cars
29,356 trucks built in the United States, a new high mark,
"Reference Book."
not
with
compared
cars
Total
money
A-
-
At 539 in September,
Thursday, October 30, 1952
.
in the previous week, and 90,136 cars in the like week a year
cars
ago,
supplies and plentiful stocks
of goods.
Other merchandisers cited the industry s improved in¬
ventory position, with stocks down to $17.5 billion, from $21 billion
nation's
the
stressed
.
ing.
109,929
aggregated
.
Street, 'New
are
in most parts of the
period ended on Wednesday of last week,
as
with
tum¬
B.
Haynes,
Corp. has been
offices
York
Gf. Phillips,
Treasurer
Phillips, Secretary.
at
City.
44
Wall
Officers
President; H.
and
Dorothy
-
176
Volume
Number 5164
The Commercial and Financial Chronicle
...
(1655)
The
Indications of Current
Business
IRON
AMERICAN
Equivalent
Crude
(percent
of capacity)
104.5
2
2,199,000
2,221,000
2,195,000
2,089,000
6,527,500
Residual
Distillate
fuel
Residual
oil
fuel
6,854,000
7,075,000
(bbls.)
___L.
Oct. 18
23,152,000
23,032,000
2,640,000
1
10,183,000
10,094,000
10,278,000
8,417,000
8,188,000
8,525,000
118,315,000
34,568.000
35,529,000
34,680,000
35,767,000
121,143,000
120.076,000
112,472,000
S.
U.
54,450,"000
54,423,000
53,484,000
construction
Private
Public
•
-
838,^77
842,713
873,559
886,648
703,590
700,008
719,769
;;
--."Bituminous
(U.
coal
Pennsylvania
and
lignite
(tons)
DEPARTMENT
STORE
Electric
(in
output
FAILURES
206,213,000
127,486,000
189,663,000
(tons)^--J—
123,313,000
V-
RESERVE
Sept.
of
DEPARTMENT
ERAL
32,835,000
56,801,000
54,880,000
steel
134,783,000
9,050,000
11,580,000
11,426,000
884,000
878,000
Pig iron
(per
—
Oct. 18
INDUSTRIAL)
—
DUN
*84,100
Electrolytic
refinery
refinery
Export
(New
93,300
OF
(East St.
131,700
*126
113
All
116
7,681,332
7,624,747
154
139
156
4.376c
4.376c
4.131c
4.376c-
.
$55.26
$55.26
$55.26
$42.00
$42.00
$42.00
goods
1
Oct. 22
24.200c
24.200c
2+.200C
24.200c
Oct. 22
.-J
34.900c
34.825c
35.100c
121.500c
121.500c
121.500c
Oct. 22
13.500c
14.000c
16.000c
13.300c
13.800c
15.800c
13.500c
13.525c
PRICES
DAILY
As
Bonds
Oct. 28
,
96.91
96.63
96.22
Men's
109.97
114.27
.«£*.-Oct. 28
111.44
111.44
111.62
113.50
wr-Jct- 28
108.34
108.52
109.06
109.42
\_Oct. 28
103.13
103.30
103.64
103.47
.i^t.Oct. 28
105.86
105.86
106.21
106.56
Jet. 28
109.06
v.
108.88
109.24
Oct. 28
1U.S1,
v,
111.81
112.75
A
——————
—
;—J.—
——
Group
__
Utilities
Industrials
——
Group—_
Group
1
YIELD
BOND
DAILY
_
AVERAGES:
Bonds.:
Government
——
r'
2.72
2.73
2.76
;
Utilities
Industrials
_i____Oct.
of
3.23
3.20
(tons)
AND
at
DRUG
of
end
3.09
3.08
3.26
3.25
3.22
DEALERS
AND
sales
.3.55
3.53
of
Number
of
shares
ON
value
■
3.40
3.22
.3.40
.
*
•
408.5
3.38
N.
3.21
of
by
426.9
519,768
544,741
467,535
109.47
short
shares—Total
Customers'
other
25,166
27,361
696,284
$32,628,271
760,597
$32,981,060
Oct. 11
21,027
20,720
22,451
23,601
117
141
252
131
20,910
20,579
22,199
23,170
by
Oct. 11
592,967;.
581,641
637,791
MEMBERS
sales-
ON
THE
STOCK
102.4
102.8
104.4
101.5
101.5
104.8
107.2
100.9
102.6
$1,332,534
$1,338,244
$1,290,056
$23,886,623
$26,648,150
170,510
176,730
213,390
accounts—
39,328
48,188
40,558
339,800
342,050
387,670
credit balances—
691,515
674,753
843,090
112,633,085
114,506,240
108,911,371
99,712,148
100,536,928
97,924,892
67,713
103,577
59,558
945,366
959,518
667,237
1,669
1,539
1,545
$60,963,230
$67,900,100
$44,271,049
16,929,841
25,385,940
15,813,737
77,893,071
93,286,050
60,084,786
3,279,816
3,775,683
4,085,926
74,613,255
89,510,367
55,998,860
38,690,784
51,870,042
22,099,904
free
shares
listed
of
of
$23,768,696
margin
customers-
Total of customers'
value
bonds
listed
$27,166,119
Member
borrowings 011
185,090
Member
borrowings
NON-FARM
170,510
176,730
213~390
185,090
270,980
269,520
305,890
283,440
011
U. S. Govt, issues—
other collateral
YolRK
NEW
initiated
on
ACCOUNT
Oct.
169,660
208,970
139,470
386,310
OF
5,964,260
6,661,000
4,410,560
10.667,580
4
6,133,920
6,869,970
4,550,030
Net
11,053,890
409,430
1,149,740
94,130
107,590
75,540
200,610
4
433,220
512,110
365,150
923,300
;
4
527,350
619,700
440,690
91,000
190,840
80,410
4
4,800
13,100
7,400
...I
110,490
183,140
84,300
256,970
115,290
196,240
91,700
268,970
...
initiated off the
X
floor—
sales.
_Oct.
sales
_Oct.
221.950
4
13,780
251,825
4
271,605
173,320
432,040
26,070
charges-:
charges
On
U.
preferred
1,871,580
S.
at
of
18,776,680
40,364,540
40,059,181
31,759,146
20,059,577
7,629,617
19,049,391
5,024,107
4,305,405
1,646,591
4,401,193
2.08
——
stock—
income
of
to
——
fixed
charges
-
—
2.38
1.65
STATUTORY DEBT LIMITATION
GOVT.
As
Total
2,882,097
48,987,945
26,117,063
taxes
stock
common
Ratio
3,323,224
3,221,611
35,469,173
40,706,896
——-
appropriations:
On
571,101
663,160
fixed
—
income
Dividend
479,441
227,145
„.,v293,840
91,660
201,075
34,670
.'259,170,
fixed
income
Federal
172,590
for
income—
Depreciation (way & structure & equip)
Amortization of defense projects
12,000
4
Net
289,800
-Oct.
4
~3t"
available
from
deductions
Other
1,123,910
4
-Oct.
______i_:
—_—_L„_____
sales
656,710
'
.Oct.
....
496,770
————
deductions
after
Income
4
4
income—
—-—
income
Income
-Oct.
floor—
income
Total
Miscellaneous
-Oct.
...
July:
railway operating
Other
MEM-
of
CLASS I
Commission)
Commerce
(Interstate
—Month
4
4
.4^—
the
INSUR¬
LOAN
—
INCOME ITEMS OF U. S.
SELECTED
—;?g. Oct.
_
AND
SAVINGS
June
of
RYS.
FOR
FORECLOSURES-
ESTATE
REAL
CORPORATION—
ANCE
Month
Total round-lot transactions for account of members-^-
Aug.
31
(000's
that
amount
lace
omitted):
may
time
any
be outstanding
1
$275,000,000* $275,000,000 $275,000,000
-
"
purchases
Short
.Oct.
sales
Other
sales.
Total
.Oct.
'
...
PRICES,
LABOR—(19+7-49
NEW
=
SERIES
U.
—
S.
products
Processed
commodities
Revised
figure,
914,245
155,360
,
109,010
650,525
759,535
1,963,981
Total
other
than farm
(Includes 556,000
105.1
104.6
105.2
107.4
108.1
109;8
110.7
111.1
Oct. 21
_■
...
and
foods—
gross
105.2
107.3
112.5
112.6.
112.7
barrels of foreign crude
runs.
not
Grand
112:5
.Oct. 21
gations
Balance
under
1
face
^Revised
-
outstanding
of
authority
figure.
33,311
$262,721,632
$263,224,860
$257,386,206
630,223
632,618
673,257
$262,592,241
$256,712,949
12,407,758
18,287,050
public debt and guaranteed
amount
above
257,352,895
39,217
the
outstanding public debt obli¬
subject to debt limitation
total
263,185,643
40,061
$262,091,408
owned by
obligations
110.6
Oct. 21
...
not
.*
Deduct—other
Oct. 21
Oct. 21
*
obligations
Treasury
OF
.*
262,681,570
public debt
gross
Guaranteed
1,659,711
1,109,780
Total
304,270
954,420
~
t.
.
foods
—
118.710-
795,535
1,069,500
+
100):
commodities
Meats
DEPT.
'760,360
4
4
Commodity Group—
Farm
4
4
-~T-
sales
WHOLESALE
All
122.4
in banks in U. S.——
to
hand and
on
value
4
*
extended
Market
4r
All
117.6
102.6
100.9
net debt balances
customers'
Pvfarket
(SHARES):
:u___
______
transactions
Total
106.5
(000's omitted):
carrying
4,469
-Oct.
sales.
Short
firms
672,285
purchases.
Total
113.7
108.1
TRANSACTIONS
...
_,
transactions
Total
103.0
110.0
104.8
appliances
of September 30
8,926
Oct.
sales
Other
112.5
102.5
EXCHANGE-
STOCK
YORK
628,865
purchases
Other
household
—
Credit
676,754
..Oct. ll
...
Short
102.9
102.0
——-
—
4,798
...
sales
Total
■'
110.0
______—
—
FEDERAL
sales
Other
105.7
118.3
576,843
—Oct. 11
SALES
ROUND-LOT
TRANSACTIONS
sales
103.1
•,".107.2
wear—
coverings
Total of
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISES
Transactions of specialists in stocks in which registered—
Total
100.5
108.2
4,457
sales
Other
100.2
103.0
588,510
:
sales
Short
children's
110.9
102.8
103,1
overalls
including
Oct. 11
Oct. 11
,
T«:al
107.0
110.7
102.4
100.2
caps
a—.Oct. 11
...
OF
sales
ROUND-LOT
106.8
110.8
—
Member
dealers—
STOCK
AND
Round-lot
NEW
AS
Oct. 11
ACCOUNT
Other
101.8
110.3
26,144
sales)—
:
shares
ROUND-LOT
Short
100.1
108.6
770,718
$55,564,700
sales
EXCHANGE
100.8
102.4
—
—
neckwear
China
674,366
99.5
93.8
100.0
Underwear
Radios
$30,517,997
97.2
107.9
_Oct. 11
purchases
of
1
Furniture
Luggage
.Oct. 11
sales
Other
97.0.
107.3
'
Round-lot sales by dealers—
Number of shares—Total sales
Number
97.0
'
107.3
102.9
116.22
24,144
125.4
•
95.2
107.0
Floor
..Oct. 11
'•
.
!
and
Electrical
:
—
■*i'
brassieres
and
and
Cash
sales.'.
value
119.2
118.7
housedresses——
and
and
Infants'
sales
sales..
comforters
and
apparel—
Hats
STOCK
:
short
108.1
106.8
ODD-
sales
sales
98.8
101.2
apparel—
Underwear
429,63
Oct. 11
sales
other
total
113.8
94.6
101.1
Shoes
109.21
92.1
108.2
94.9
108.4
-
109.39
110.1
89.8
108.1
—
—
goods
89
Oct. 11
(customers'
:
Clothing,
Oct. 18
107.8
90.4
silks
168,366
93
106.6
107.7
Underwear
Men's
217,734
96
107.1
102.7
104.8
94.5
457.3
97
100.1
100.8
104.8
wear
106.9
96.8
105.3
100:7
______
104.9
97.5
105.4
—
wash
Shirts
........Oct. 11
dealers
PRICE
a
and
Corsets
2.9:
415.3
215,865
...
orders—Customers'
of
Y.
RETAIL
(COPYRIGHTED)
100
=
3.18
3.02
.
234,715
:■
—
Customers'
.
6,974,000
goods—
Aprons
purchases)—
—
Customers'
.
8,839,000
95.1
3.36
3.23
.3:07
;
•
236,587
;
—
purchases
Total
15,813,000
*8,675,000
*6,788,000
1:
children's
&
Blankets
COMMISSION:
EXCHANGE
(customers'
Customers'
Total
.•••;
v33r9?07
.——.Oct. 24
orders
Round-lot
*15,463,000
104.9
1935-39
3.54
245,680
INDEX—
PRICE
SPECIALISTS
by dealers
Number
Short
126.4
6,862,000
Sheets
3.20
3.-56
248,541
FOR ODD-LOT ACCOUNT OF
EXCHANGE—SECURITIES
Dollar
104.2
126.8
15,196,000
8,334,000
goods
2.98
226,513
period——
REPORTER
...
STOCK TRANSACTIONS
Number
*100.1
Domestics—
2.94
Oct. 18
AVERAGE— 100
Number
97.9
100)—
=
'
3.17
2.98
--Oct. 18
activity
orders
PAINT
fOR
28
ASSOCIATION:
<
>
J
(tons)^i__:i_—___^_r^_Oct. 18
Percentage
TOTAL
*
INDEX—Oct, 28
(tons)
Dollar
5,659,000:
121.7
Average
PUBLICATIONS
Cotton
PAPERBOARD
received
Production
Odd-lot
28
Group-.—28
Group
COMMODITY
Odd-lot
7,226,000
*5,444,000
Avge.=100)—
2.65
3.02
„
LOT
12,885,000
*6,939,000
employees in manufacindustries—
Woolens
109.79
3.23
<
10+9
(1947-49
apparel
Rayon
113.89
,
3.01
,^»..Oct. 28
1—Oct. 28
—
——————————L_ Oct.
Group
Unfilled
>12,383,000
of
workers)
furnishings
Piece
!■
>'3.09
OIL,
12,110,000
DEPT.
goods
Women's
—„.rc-i-Ocfr. 28
——
—
Orders
129
*123
5,509,000
(production
apparel
Home
V
-
—
corporate
Aaa
NATIONAL
107
111
number of
—
Infants'
97.73
109.42
MOODY'S
*105
*100
6,601,000
S.
SERIES—Month
(1947-49
October
of
Women's
113.50
Public
99
76
116
Composite index
Piece goods
AVERAGES:
112.75
Railroad
78
102
110
manufacturing
INDEX
19.500c
103.88
Average
98
100
95
__
adjusted
—
Indexes
FAIRCHILD;
18.800c
13.500c
Aa
-
All
19.000c
Oct. 22
Oct. 22
——
at
112.93
S.
seasonally
manufacturing
Durable
103.000c
108.88
U.
19+7-19+9
goods
Nondurable
27.425c
Oct. 22
1
.'
Oct. 28
Mooili S-
FEDERAL
—
manufacturing
turing
$42.00
1a—Jet. 28
Public
$377,000
of
adjusted—
manufacturing
All
$52.72
Oct. 21
corporate
Railroad
Y.
September:
unadjusted
LABOR—REVISED
vAll
7,233,928
Aaa
Baa
N.
Month
'
seasonally
Nondurable
155
,
Oct. 21
at
at
BOND
Average
DISTRICT,
OF
—
Employment Indexes
7,696,243
Oct. 21
_
Louis)
Government
S.
$550,000
July:
QUOTATIONS-):
at:
(St. Louis)
Zinc
U.
100
unadjusted
Estimated
at
at
York)
Lead
MOODY'S
BANK
=
daily),
Payroll
—
York)
tin
(New
Lead
$374,563,000
copper-
Domestic
Straits
$454,111,000
YORK—
EMPLOYMENT AND PAYROLLS—U.
PRICES:
J.
30,702,000
SALES—SECOND FED-
(average
Durable
124-
Oct. 23
M.
&
NEW
(average
Stocks,
&
ton)'_——_
(E.
STORE
(average
Stocks
.-.i.irjfc-
—
lb.)
gross
PRICES
OF
omitted)
monthly),
daily), unadjusted
1,074,000
96,800
RESERVE
Scrap steel (per gross toM)L'l—-------------METAL
BANK
(000's
30
Sales
42,000,000
""T 960,000
INC
(per
3,338,000
29,975,000
shipped between
OUTSTANDING—FED¬
RESERVE
'
Finished
and
Sales
41,379,000
70,323,000
,
Sales
83,379,000
*,r ;8,320,000
—Oct. 25
AND
PAPER
ERAL
$189,111,000
105,732,000
18
-
100
=
127,124,000
Oct. 18
kwh.)_
000
COMPOSITE
AGE
$317,149,000
104,18J,Q00
15S;i48,000
)ct.23
;
(COMMERCIAL
BRADSTREET,
IRON
$333,337,000
(tons)___l__l_——_'.___Hdct.
AVERAGE
stored
As
INSTITUTE:
ELECTRIC
16,564,000
73,606,000
:;>■'
MINES)
SALES INDEX—FEDERAL
SYSTEM—19+7-49
$260,335,000
'Ct.,23
.
COMMERCIAL
AVERAGE
_Oct, 23
OF
:
countries
RESERVE
.
anthracite
coke
Beehive
\
*
BUREAU
goods
foreign
.
^
S.
credits
Total
Oct, 23
——.
OUTPUT
on
706,756
,
and municipal
Federal
EDISON
„\
Based
ENGINEERING
—
10,214,000
2,513,000
30:
f*
——
construction
Estate
COAL
:
September
exchange
50,537,000
!
construction——
warehouse
108,593,000
Oct. 18
------
CONSTRUCTION
103,662,000
7,143,000
BANK
121,450,000
v
NEWS-RECORD:
Total
of
8,502,000
120,910,000
freight loaded (number of cars)________________10ct. l8
Revenue freight received from connections- (no. of cam..Oct. 18
ENGINEERING
RESERVE
As
—
OUT¬
shipments
9,461,000
„..^..Oct. 18
-
$210,083,000
119,177.000
$565,000
ACCEPTANCES
1
Dollar
2,415,000
122,002,000
—
RAILROADS:
$211,697,000
108,487,000
7,439,000
16,476,000
30,583,000
YORK
Domestic
21,839,000
2,597.000
23,980,000
2,728,000
Oct. 18
at
at
AMERICAN
NEW
Domestic
6,481.000
Revenue
CIVIL
OF
6,353,200
116,898,000
<bbls.)___,
(bbls.)
(bbls.)
oil
OF
6,518,350
Oct. 18
fuel oil output
.-Oct. 18
Stocks at refineries, bulk terminals, in transit, in pipe
lines,—
Finished and unfinished gasoline (bbls.) ■ at——.:.
~I_Toct. 18
Kerosene (bbls.) at
."..Oct.18
ASSOCIATION
6,517,100
'
(bbls.)
output
oil
Ago
59,646,000
DOLLAR
Exports
Oct. 18
output
Year
Month
$454,199,000
BANKERS'
of
(bbls.)___
Previous
Month
105.7
of that date:
are as
$231,568,000
Ago
*106.9
Imports
(bbls.
average
^
fuel
Distillate
Ago
10b. 9
either for the
are
Latest
2
_______Oct. 18
average
of quotations,
cases
Year
Nov.
output—daily
(bbls.)
output
Kerosene
Month
INSTITUTE:
each)
to stills—daily
runs
Week
production and other figures for the
cover
Dates shown in first column
that date, or, in
on
Nov.
gallons
Crude
month ended
or
Previous
Week
(net tons)...
condensate
and
Gasoline
Latest
INSTITUTE:
month available.
STANDING—FEDERAL
PETROLEUM
oil
42
week
or
to—
ingots and castings
AMERICAN
Activity
STEEL
steel operations
Indicated
Steel
AND
following statistical tabulations
latest week
43
obligations,
issuable
12,908,59L
-
The Commercial and Financial Chronicle
-14
.
.
Thursday, October 30, 1952
.
(1656)
in
Continued from first page
our
of
We See
As
It
increase from month to
coming four
only that we hope
years, we can, or at least we shall, say
that such is not the case.
At any rate
not yet
that this country
willing to accept the defeatist position
permanently lost its power
perception and reasoning.
has sold its soul
of
we are
or
commonsense
that it has
Vital Issues
.
much affected in the months and years to
come by the type of policy and programs chosen and pur¬
sued by the Federal Government. It is our very carefully
considered opinion that a new lease of life for Trumanism, a continuation in Washington of what has been
be
not
But
A
continued
there for the past 20 years, could not fail to
a heavy and increasing load for us all to carry
as the years pass.
We are equally satisfied in our own
mind that a basic change in all this in the right direction
so
it
make
basis, both necessary and sufficient (again to
of the terminology of the mathematician) for
lay
a
Television's Increasing
use
and
real progress
We
in this country.
add also with confidence that Mr.
may
Eisen¬
hower, although in some instances appearing to adopt too
much of the New Deal and Fair Deal fol-de-rol, has in
the part of
the American people that he would, with the support of
at least a partially reunited party, undertake with vigor
some of the tasks which so urgently await a real states¬
man in
Washington. He has embraced ,far more of the
paternalistic philosophy rampant in this country since
other directions
supplied
for hope
on
Roosevelt to vast influence in 1932 than
the rise of Mr.
we
reason
repeatedly
deplores the concentration in Washing¬
greater and greater measure of power and juris¬
but he has at the same time
could wish,
asserted that he
ton of
a
diction
over
the businesses, the homes and
Much of what is
proving
New Deal and Fair Deal
administration
the
so
costly and
so
lives of us all.
crippling in the
would be less damaging if their
decentralized and thus kept nearer
were
people who must pay for them in taxes.
Fiscal Matters
heartening prospects of an Eisen-j
victory would be found in the fiscal situation. Ob¬
of the
One
hower
most
viously, if substantial reductions in Federal outlays are
to be achieved
and we have been repeatedly assured
—
they would be substantially reduced—a number of
consequences would necessarily follow.
For one thing
such reductions are not compatible with much that the
that
Fair Deal has
The
accrue.
a
reduction in expenditures
substantial
which makes possible
of tax relief would inevitably have
measure
wide repercussions in
its
own
right.
Funds and energy
generally would in this way be released for productive
employment throughout the private enterprise system.
A far sounder and more constructive monetary and credit
policy would at once be easier and simpler. It would in
itself be a step in turning over the affairs of the American
people to the people who must in any event bear the bur¬
dens and should reap the rewards of what they themselves
do from
day to day.
Most encouraging in this connection
is the insistence of Mr. Eisenhower
no
one
in the .land
(than whom there is
who should know better what he is
talking about) that more defense for many fewer dollars
easily possible. His opponents have apparently regarded
all assurances that such things as these can be done as
is
so
much
''politics"—if not simply "damn lies."
Inspire Confidence!
henceforth
that the mere assurance that
the basic attitude of the Washington govern¬
ment toward
the limits of which
for
a
general is to be sharply and con¬
would bring a surge of confidence
can not now be easily foreseen.
We
business in
structively altered,
hear
of
pearance
deal
be found to take
great deal—and have been hearing a great
long while past—about what can
place of defense expenditures (or often more precisely
the continued rise in defense expenditures) ■ as a factor
of stimulation or encouragement of business.
There are
many statisticians who are exceedingly fond of laying
out figures which show the tremendous part defense ex¬
penditures and defense-related outlays have been playing
a
the
Frequently
and faith in
A
this
in
change
made
it
to
and
was
the organization of
century with
industrial research lab¬
oratories. The start was slow, the
laboratories were small, but they
first
the
to their man¬
demonstrated
soon
Sarnoff,
du
plied:
its stake in
the
and
was
working
by
com¬
risen
work
creased.
was
research
industrial
by
of
means
is made. As
of this teamwork, there
which rapid progress
a
result
available.
While
work
was
RCA
of
convinced
became
Laboratories,
that television
electronic means
rather than by mechanical means.
He worked
on
both the pickup
could be done by
end
the
and
reproduction end of
the
system.
Out
came
Dr.
of
Zworykin's
work
pickup tube called the
the
tube in all television cameras, new
new
information
to
was
able
to
the
show
late
a
1920's,
he
dim flicker¬
ing picture produced entirely by
electronic means, a picture that
transmission
well
fairly
the industry and
RCA decided to institute limited
persons
The "freeze"
imposed by the*
was
sion
that
believed
it
because
it
stations.
"freeze"
The
more
by
authorized
bring¬
lifted
now
made
vision
of
service
Since
"freeze"
the
has
been
and
being
are
weekly by the FCC.
lifting
and
have-
built
be
to
authorizations
new
the
is
than sixty new stations
tele¬
brought
to two new communities, Denver,.
public into its experi¬
opening of the New Colorado, and Portland, Oregon.
the
ing
ments. At the
television
as
other
1939,
in
Fair
World's
schedule
a
was
Several
the
others
will
be
added
ira
coming months.
NBC. RCA. as well
offered re¬
Coast-to-Coast
TV
companies,
public, but only a
limited number of sets were sold.
events
of
One
the
ceivers to
the
most
significant
in television history—both
Early in 1940 the Federal Com¬ from the standpoint of the view¬
Commission began a ing public, broadcasters, and tele¬
munications
series
of
hearings
for
standards
sion.
In
May
to
determine vision set manufacturers—was the
commercial
1941,
televi¬
the FCC
au¬
opening
in
1951
transcontinental
of AT&T's
radio
new
relay
sys¬
thorized commercial standards ef¬
tem
linking major cities in a:
1941. Of coast-to-coast television network.
course, you all know what hap¬
Previous
to
this achievement,
pened Dec. 7, 1941. Even before
the Bell System had used the co¬
that many of the research and de¬
axial cable and radio relay sys¬
velopment laboratories and fac¬
fective
The
In
provide
Federal Communications Commis¬
been
formulated
television cameras, and the kine¬
picture tube, of modern
as
propagation, and many new
wave
tories
television.
now
than 500,000
iconoscopes and, was necessary to clear up techni¬
eventually, the image orthicon, cal problems that had arisen with
to interference between;
which is now the standard pickup respect
iconoscope, which established the
base for future developments in
scope, or
more
improved
came
introduced by
going on in the field of mechanical
television, Dr. V. K. Zworykin,
now Vice-President and Technical
man¬
in the United States.
regular
Introduced
major
The pace of development was
This vast growth has occurred
speeded by breaking the problem
despite the so-called TV "freeze'"
in parts and the formation of re¬
which prevented the normal con¬
search groups to work in parallel
struction
of
new
stations
frorm
on the various parts of the prob¬
September, 1948, until July, 1952.
lem. This is the method used by
York
concept was needed and
65
Television set
ufacturers have increased accord¬
in¬ jobs for
materially
commercial operation, thus
prospect of improvement.
covering
110,
areas.
amount and tempo television operations
was
tory toward the end of the 1920's,
but it was not good enough for
Concept
1951, and
19,000,-
than
more
mechanical television ingly, from a few pioneers to a
to
the
electronic total approaching 100. Radio and
on
By 1939, television
standards
had been
little
to
market
devices.
new
are
shifted
the
of
research teams
point-by-point and line-by¬
was
basic and is used in
modern television. The develop¬
ment
of
mechanical
television
reached its height in the labora¬
New
there
now
which commer¬
television could
line
A
1950, it-
passed in January,
million in re¬
$50
method and the
disc-
was
it.
later,
On Jan. 1,
1,000,000.
had
total
year
3,950,000. The 10,000,000 mark
ture
There
A
By
was
circuits,
use.
the
189,000.
by
use
16,500.
was
plicated and bulky. However, Nipkow's concept of scanning a pic¬
commercial
1947, sets in
numbered
six
were
began to get back
means
were
method were poor
equipment
the
1,
1948,
reached
was
there
television, it had spent
cially acceptable
be obtained. The
in 1884.
produced by
images
this mechanical
Jan.
con¬
was
few-hours-a-
meager,
and
public
January,
ap¬
of $100,000 expendi¬
estimated
only
disclosed by Paul Nipkow
Television
a
sets, with an audience esti¬
search, engineering and facilities.
mated at some 70,000,000 persons?
The
early work in television
From the six TV stations on the
convinced
RCA
that
electronic
air six years ago, the number has;
television was possible and the
in its
scanning
on
000
brought about the development of
a
mechanical
system
based
on
broadcasting
basis
On
the
electronic television grew
and before RCA
an
informal
early
that
From
television
in
work
week
it's worth
Sarnoff said: "All right,
Early Work in Television
early
newly-de¬
fewer than 10,000 sets.
were
Television
it."
scientists.
The
of
licensed stations.
the
and has faith
General Sarnoff,
Zworykin re¬
"Maybe $100,000." General
established research or¬
has
there
the
of
Chairman
RCA.
velop the idea?" Dr.
celebration
ganizations
program
expanded ancl
was
production
mass
the
explanation,
"What will it cost to de¬
asked:
stated that
research
laboratoryJ was -established, the
business expanded through diver¬
sification to the present total of
over
1,200 products and product
lines. About half of the company's
sales
represent products which
were
unknown or in their com¬
mercial infancy 20 years ago. The
same
type of experience can be
drawn from any industrial firm
that
major
a
The
improved, and RCA Victor started
ducted
research,
1902, '** when
re¬
In the fall of
television.
service of NBC
by
situation
took
hearing
spokesmen for
Pont at its recent 150th anni¬
after
in
after
example of the effective¬
versary
the
more
RCA-NBC
Zworykin discussed
now
propriation
of
once
of
tures on
an
best be
perspective
Board
ductive.
As
into
the
agements that they were very
much worthwhile and highly pro¬
ness
television's
of
growth may
possible future of his develop¬ signed sets to sell at a price the
ments
with
Brig.
Gen. David public could afford. At that time
after the turn of the
started soon
extent
move
required
research were
potentials.
1929, Dr.
In
possible.
process
these
see
the first 10 major
1946
potentialities. Vision-
industry,
America.
only six years ago.
than could be
pooper
had
it
but
the ap¬
and
products
new
which
services
much
was
misses
many
scientific knowledge
Consultant
The fact is, we suspect,
were
successes.
many
primarily
But
a
There
attract
of
full
calling
even
move
has the distinction
among
brought
Industry
knowledge
our
automobile
now
phenomenal
develop¬ produced by mechanical means—
his
long intervals of time elapsed be¬
tween
the
availability
of
new
long wanted to do. They are not even com¬
patible with much that it is now doing. Thus a number
of indirect benefits of greater fiscal prudence would
finance
to
ment.
thus
and
invention
his
capital
the
being
art
develop¬
war
third of the time that
a
industries
going
would
took
of
infant
that television could
television
ap¬
But
restric¬
and
The
war
be
war.
the
ment had added to
16
Service to Utility
the
could
came
lifted,
ahead.
faster. In
on
constitute
television
of
it
as
victory
were
surged
very
page
Growth
plied to instruments of
great deal depends upon the outcome of the voting
Let there be no mistake on that point.
from
possible.
throughout
except
when
rapid
in the radar field would
curtailment
tions
war.
in tele¬
work
Phenomenal
years
the
winning
earlier
not have been
next week.
Continued
in
related techniques
on
progress
risk.
grave
they were.
of the major instru¬
the
The
show how
Radar was
war
one
for
vision
Washington. Probably such a question is not amenable
statistical treatment — but it can be ignored only at
to
here is to make certain, so far as it lies
within our power to do so, that no one will suppose for one
moment that the course of business would not be or might
as
mentalities
way as to render a satisfactory answer difficult. This is
scarcely the place to go into this technical matter. Suffice
it to say, that such statistical analyses seldom venture
into the question as to what business expenditures might
be, or what consumer outlays would be, under the in¬
fluence of a really friendly and constructive government
in
Our purpose
rated
month?
the
develop¬
of
records
The
during
successful
when they cease to
even
or
is, of course, quite easy to array figures in such a
It
occupies the White House during the
hower
reduced
are
ment
What will business be like when
asking the question:
these activities
vision.
during the past year or two—and then
economy
as
of
cluding
of
the
July
radio
our own,
television
ferred
their
development
1,
industry,
had gone to
trans¬
engineers
techniques
of radar
in¬
war.
to
and
the
other
tems to provide for the transmis¬
sion of television
signals between;
major cities of the East and Mid¬
dle
West.
course,
are
These
facilities,
types of broad-band transmissions
tinental network.
that
effectiveness of the present
used
devices,
circuits
and
radio frequencies similar to tele¬
ice
can
be
of
part of the transcon¬
seen
The extent ancl
serv¬
from the fact thai
^Volume 176
Number ,5164
.
.
.
.
The Commercial and Financial Chronicle
(1657)
V
this year's
approval.
carried
cannot
tions
World Series is being
by 68 interconnected sta¬
in
64
cities,
representing
containing more
of coverage
areas
than
90,000,000
of
the
nation's
The major
sion
expansion in televi¬
service
in
the "freeze" is
process
is in the UHF
over
ing of this "freeze"
VHF stations
tions
in
the
70
the
UHF,
more
but,
more
in
the
sta¬
range
This provides
mc.
channels
and
for hundreds of
Millions of people
way
stations.
new
lift¬
additional
television
new
opens
means
used,
many
from 470 to 890
The
the 12 VHF chan¬
on
previously
important,
that
now
(ultra high frequency).
nels
who have
before known the
never
enjoyment
of
television
will
brought into the service
stations,
be
areas
of
and
limited service
in many cities will be expanded.
Present and prospective televi¬
sion audiences in many commun¬
new
ities
destined to discover that
are
the simple combination of letters
—UHF—stands for more channels,
more
stations,
more programs and
far greater TV
coverage. And this
is important—the addition of new
VHF and UHF stations
can
be
achieved without
diminishing
present TV service.
The first UHF station to operate
commercially in the United States
already is on the air. It is station
KPTV
in Portland,
Oregon.
new
unserved
market
transmitted
its
Sept. 18, only
transmitter
Oct.
on
World
country,
signal on
initial
tower
had-com¬
the
across
official
nationwide
the
added
the
ex¬
to
sets
grams
1,
con¬
took
a?.special
with
followed
program
Series.
and
f
engineering.
half years
It had
by RCA-NBC in
color
receive
pro¬
whatever
That is the type
ceiver.
the
in
re¬
of system
RCA proposed to the FCC and on
which
to
UHF
initiate
to
an
direct
at
are making rapid prog¬
developing.
In adopting standards for
the
incompatible system in 1959, the
Federal Communications Commis¬
sion
said
the
that
door
it
was
not
closing
development
on
of
first
commercial
grants
were
broadcast
portable
model
sion.
Consequently,
RCA
and
Baltimore
Future
known
the
as
industry
group
National Television
System Committee
clude
this work.
We
than
that
ever
are more
convinced
method
this
ulti¬
mately will attain approval in the
public interest. But the introduc¬
of
such
service
As General
this
made
necessary to use UHF in order to
have nationwide television serv¬
ice, pioneered in research and de¬
velopment in this field. RCA has
than $3,000,000 to de¬
UHF
My
.
:
..
..
.
is that
television
that
agrees
.
^
natural
color
that
can
be
integrated into
the older black-and-wmte
with
a
service
minimum of disruption
or
tines
in
worked
research
carry
itself, and this must be done if
are
to
have
would not
est to
tear
color
television.
we
It
be in the public inter¬
down
of
million
living
persons,
clerical
in
and
16%
or
Most
work.
the
of
engaged
are
these
of
engineering ingenuity, electronic
computers have been made to add,
subtract,
multiply
and
divide.
Besides, they can memorize the
results of these operations in such
manner
a
that
they
immedi¬
are
instances
visual
checks
These
possibilities and applica¬
for
use
in
the
fields
can
routine clerical
the
is
systems
done
Television's
of
work such
would
the
enabling of
view
human
mean
many
danger;
persons
to
given procedure or activity,
supervising or coordinat¬
ing of a number of operations from
and
a
central
you
position. I
associated
equipment
signal
strength
for
be
can
site overlooking the
a
community to
be served.
place
some
such
equipment
advantage.
could
be
Closed-circuit television also is
to
become
instrument in
medium
was
pioneers.
The
nell
new
powerful
a
medium, they
directly to the
Physics Department of Cor¬
University
that
nounced
is
ment
physics
has recently
this
being
to
lecture
an¬
type of equip¬
used
to
make
lecture
visible
demonstrations
hall.
all
Another
tension
in
students
application
is
pf the range of
microscope.
is
camera
A
small
a
large
the
can
be
na
lines
lead-off
into
be
can
homes
the
run
be
to
served.
the
system
used
television
of
ments
will
come
to
was a
concep¬
means
of
ex¬
tending human sight for utilitarian
purposes.
In addition to the great
entertainment
and
substantial
as an
informational
progress
has
made in applying its power
immediacy for benefits to in¬
been
dustry, science, education, security
other
non-broadcast
ors.
endeav¬
This is generally referred to
as
At the present time, an incom¬ industrial television. Its success is
patible color television service is due largely to a revolutionary
the only
system having official pick-up tube—the^Vidicon,-x- de¬
it may
that
tubes.
standard
as
when
television
electrical wiring.
as
Developing
In
Radio
the light
television
substituted for the hu¬
eye,
and research men or
students see living germs or cells
greatly
magnified
the
on
screen
television
monitoring set.
techniques make it possible
a
New
obtain
information that cannot
be obtained by
sibilities
of
the eye alone. Pos¬
such
a
combination
instrument for teaching and other
educational
purposes,
I believe,
extensive.
are
Arrangement has been made for
of you here today to see a
demonstration of the RCA indus¬
trial-television
system.
This
equipment will be available for
viewing
immediately
after
we
have adjourned for luncheon.
Theater
in
the
on
has
been
theater.
the
face
and
use¬
television
and
make
One thing is certain in this
In
stalled
in
images
of
extend
now
from
the
Atlantic
to
the Pacific, and from the Gulf to
the Canadian border.
transistors,
purposes
coming
are
into
more
irstalled
a
systems,
including
New
number
Jersey
Turnpikes,
and
more
We have built and
use.
of microwave
for
also
the
Union
Corporation.
for
Recently
order
an
microwave equipment was de¬
livered
the
to
Atlantic
North
Organization
for
will
hear
They
are
use
Europe.
television
is
now
in¬
Walcott-
The
was
shown in 50 thea¬
cities
from
coast-to-
outdoor drive-in thea¬
in New Jersey participating in
one
this showing. This same type of
equipment also has been used for
conferences
where
participants
in
Summing
television
a
beneficial.
I
up,
as
believe
know
we
that
it today—~
service of vast social, economic
political significance with
and
headed
for
am
greater-
improvement and service. Color
be integrated into our pres¬
will
In
I predicted
1945,
vision
destined
was
considered
In
that tele¬
to
billion-dollar industry
seven
become
and I
extreme
an
a
was
optimist.
the
based
years,
fundamental research in
on
science,
developed
in
the
best
American tradition by free enter¬
and ench of
us
assembled here
can
take pride in its
symbolism of
country's vitality and will to
our
ex¬
the frontiers of human prog¬
tend
ress.
Together,
the
electrical
industries
deal
about microwave systems in the
so
future.
use
rural
areas
ex¬
ties.
tion
have
and
have
re¬
Citizens
in
many
a
coming into
industries requiring
service.
communication
tended
is
It
belief that before long mi¬
my
built
systems will be
television service
relay
crowave
to
carry
and, combined with the industrialTV camera, will represent a new
phase of communications for busi¬
ness
and industry.
This may in¬
clude coverage of such important
as
those
involved
in
activities
electrical
distribution
Research
Pure
scientific
of
duced
the
drudgery and isolation
prevalent
a
few
years
ago
in
and isolated communi¬
throughout the na¬
been
brought closer
together, and light, power, educa¬
tion
and
made
who
entertainment have been,
available
desire
to
them.
practically
This
all
means
greater service by our industries,
greater
prospects for
and greater vigor
our people
for all America.
rVWWWVWWWVWVWVVWWV%W%
systems.
and the Transistor
research
ating
I
already
But before conclud¬
many.
ing,
have
components
been
in develop¬
and its vital oper¬
television
ing
like
would
facts
the
stress
to
fundamental
and
knowledge
to
hasten
progress
through applied research.
Indeed,
many
champion¬
be
The-
Future Outlook
electronic
You
basic
15 by 20 feet.
recent
are
destined
are
that the advances
sure
constructive and
are
in
great
Treaty
possible to produce
Marciano heavy-weight
ter
industry
be modified and changed.
prise and competition. It has fully
it
that
search
nomena
is
fundamental
uncovers
new
phe¬
different
RED
far-reaching in their applica¬
are
tions.
For
example, recent stud¬
solids, as con¬
possible
a
vacuum,
an
entirely
are
making
new
device—the transistor—a tiny
electronic
ment
CROSS
must carry on I
device made of single-
crystal germanium.
of
Your
re¬
and opens new vistas that
trasted to electronics in
31
future
foundation
justified the faith of its pioneers,
television service to the homes of
in
our
the
the
for
ies in electronics of
coast,
of
Pennsylvania
those
and
for
theaters operating
independently of those providing
ters
immediate
an
case.
engi¬
value of obtaining more and more
networks
ship fight
electronics
industry has
grown to $3 billion and, as I have
Two-way microwave radio sys¬ pointed out, many other indus¬
tems
for
communication
along tries, including your own, benefit
highways, railroads, electric power increasingly from its advance. In
system pipelines and for military television, we have an industry
projection kine¬
special optical sys¬
theaters in New
York, Boston, Washington, Chi¬
cago and Los Angeles and other
cities, and there is a prospect of
America.
to
microwave
By means of radio
relay stations television networks
a
on a screen
Theater
conclusively
communica¬
the
as
it
and
use
My references to the importance
television
Brighter
many
now
services, nationally and interna¬
ent service and international tele¬
tionally, electronic progress has
vision broadcasts are a future pos¬
provided us in recent years with
sibility.
i
a marvelous
tool for
Television
Another
up-and-coming
out¬
growth of television research and
development
up
audience numbered in the tens of
Relays
range
radio
of
open
cannot
As scientific prog¬
forecast
to
millions—is
extending the
fulness
radio,
continues, it ofttimes is im¬
possible
apart¬
time
wiring in multiple home units will
be
in
the commercial implications.
The
rooms.
soon
particularly in¬
engineers
distribution
programs
hotel
or
for
Properly
might last a
low power require¬
be "bad news" to you,
fields
job is to be
Electric Company and Sunray Oil
ex¬
man
tem
a
The original
tion of the art
of
the
be brought
operating table.
pictures
broadcasting
envisaged by manyas
again
new
A net¬
work of coaxial cable then
each
sure
am
visualize
can
to
scopes
beyond
but
with
the
as
Television
expansion
popular use
TV
much
Its
ments may
ress
This system is the outgrowth of
monitoring operations from a
distance, especially where near¬
ness
of
in your own offices.
Industrial
its
do
tronics.
community. This antenna together
boosting
un¬
television and other fields of elec¬
vacuum
required.
those
tion.
and
in
of
may
This type of equipment is ideal
may
people perform tasks involving the
existing black-
service of color TV.
those
business
for
through
better; it is
to improve our
the American way
standard
and-white TV service to establish
a
entire
an
to
continuous
are
not
business to do things
The transistor is
teresting
stones of
our
service,
could
master tele¬
one
Is
vacuum,.
dampness.
transistor
a
directly
do
displacement. In radio, as in other
industries, the old service has car¬
it
Antenaplex
serves
by
no
lifetime.
where
it is
progress;
or
made,
particularly
that
utility
and
change
shock-resistant, and
where
the
eventually
ried the
until
antenna
solid
rugged,
affected
has
or
relay."
business, and
or
strides achieved in television
new
vision
radio
highly desirable. This has
goal of our scientists and
engineers since the early stages of
tronic system of black-and-white
television. We want a service of
Systems in which
great teachers into the presence of
been the
in developing the all-elec¬
into
mountains
Community
existing industry
color is
success
calls
known
7
everybody
in
in¬
much
bounce
intervene, or when
distance becomes too great.
To overcome this problem, RCA
has designed and developed what
tions
tronic
answer
when
mounted at
indus¬
and
light,
within
It
other obstacles
education, bringing
aerodynamics, guided missiles and
ballistics.
Now
they are being
Some
of
are
you
probably adapted to more prosaic tasks and
there is every promise that elec¬
thinking: "What about color television?"
uselesfcness
expected
chines"
Television
of
behave
which
as
controlled
are
about
move
no
little
very
matter.
tions,
Sarnoff has pointed
are
by no means in the
in making UHF television techni¬ tions
dream
stage.
During and after
cally and
commercially
practi¬
World War II, great impetus was
cable for home use, and we are on
our
way
to a truly nationwide given to these "super-brain ma¬
Color
the\§ame
out, science, through research, has
a unique way
in edging up to an
mission problem. This has resulted
service.
TW signals,
they
as
electrons;
requires
uses
Its electrons
power.
geographical
American com¬
munities are deprived of depend¬
able television program service.
find beneficial to
your own opera¬
transmitting ately available for another opera¬
receiving equipment and to
get an understanding of the trans¬
television
for
their
of
It
and
warm-up,
many
which
out.
Some
used
stations.
RCA, believing that it was
reliable
Railroad
applications
in
where
Advances
Chicago by the
numerous
Because
locations,
heated filament
no
from
boiled
have
of
Electronic
intro¬
was
cathode
are
neers
a
Other
•
transistor has
or
task.
must, of
course, await official action.
At
the proper time, a request for such
a
its
strung over poles from the anten¬
site to points at fixed intervals
is the central
clearing house of the industry for
com¬
low-cost
possibilities
are
considering
are
annual stockholder meet¬
Community TV Service
it
freight yard operations.
trial-TV
to
velop
in
use
the
Ohio
&
table
a
set.
the first
system
duced to service at
continuing to develop the all-elec¬
tronic compatible method on
An
television
Vidicon
you
tion
ings.
as
combina¬
a
smaller than
case
home
RCA
other segments of the industry are
standards.
and
camera
Three weeks ago,
model
of
vision.
and
sensitive
as
mercial
of
more
almost
for
long, the
monitor, power supply and
control fixture, housed in a single
entry of figures in ledgers and
The closing of the Bridgeport operation of mechanical machin¬
operation marked the end of the ery'for processing information.
experimental period in UHF tele¬
Through man's inventive and
spent
inches
in di¬
tion
an
improved method of color televi¬
Bridgeport, working population,
at
brought to completion
was
the
station
and
experiment
is
units: the
we
in
ress
increase
Bridgeport, Connecticut, focal our businesses. This is the job of
point of research and engineering research and development.
As an example, the electronic
development in UHF television
broadcasting. It was the first sta¬ computer holds tremendous possi¬
in
the
tion to transmit a regular program bilities
simplification of
service on UHF. It was my privi¬ clerical
procedures.
About nine
experimental
six
and
inch
one
or
even
revolutionizing
rou¬ hundreds
thousands of
operations. We in the students simultaneously. Medical
radio-television industry consider students,
for example, need no
by
electronics pertinent to the future longer be relegated to distant seats
of every business. Those of us who in the
amphitheater. Instead,
opening
previously been used for two and
after
ameter
Vidicon
in black and white without
change
any
fear
which
Although only
engineers and virtually the the
-white
have
lege
use
by engineers of RCA.
usage
studio-type
image
orthicon
engineering profession be¬ tube and can be manufactured for
lieve that an all-electronic, com¬ a fraction of its cost. It operates in
patible color television system is a camera about the same size and
far superior to the incompatible simplicity as a 16-mm movie cam¬
method. With the compatible sys¬ era.
The
entire
industral-TV
tem, it is possible for black-and¬ equipment consists of only two
research
UHF
stockholders
cast
entire
This transmitter has special sig¬
nificance lor those of us in RCA
a
veloped especially for non-broad¬
standard black-and-
on
of adapters.
pense
the
few days after its
a
and
Its
place
in
journey
a
tinent.
in black
even
white seta* without
station, whiclr brings
the largest
previously
television to
pleted
system which
a
action will be made.
(Channel 27)
The
and white
Our
population.
That is
be received
45
As
an
instru¬
capable of performing many
the
tube,
open
which
functions
the
a
of
transistor
new
bids
era
fair
of
to
an
electron
promises
to
development
surpass elec¬
cities, for it can
tronics achievements of the past,
Several companies
Unlike the j electron tube, the
widespread distribution, of i
two-way.
with
.
cvwvwvwvwwwvwwvwwww
•16
The Commercial and Financial Chronicle
(1653)
Thursday, October 30, 1952
.
.
.
* INDICATES
Securities
A. M. D. G. Publishing Co.,
Now
in
Registration
Cowles
NEW ISSUE CALENDAR
Y. Underwriter—None.
Crown
Oct. 23
& Co., of New York,
,
(Offering
Frontier
capital.
working
and
Co.;
(Ottering
November
Hibernia
Proceeds—
•
Office
—
subscription
record Oct. 20 at rate of
by
one
indi¬
Drug Co., Kansas City, Mo. (11/1)
(letter of notification) $250,000 of 41/2%
con"
1, 1962 to be offered
stockholders. Price—
par (in denominations of $60, $100, $500 and $1,000
each). Proceeds—For working capital. Office—2210 Cen¬
tral St., Kansas City, Mo. Underwriter—Business Statis¬
Organizations, Inc., Babson Park, Mass.
Devil
stork
Common
&
November
Allpark Finance Co.,
iC.
on
Co.,
12,
Inc.)
Co.,
(Offering
stockholders—Blyth
to
Diversified Funds, Inc.
__
(Kidder,
.Common
Co.,
&
&
Uranium, Ltd.
—
cent).
one
(Nev.)
Price—50 cents
rehabilitation
For
Diversified
Oct. 22 filed
and
per
share.
development
Pro¬
program.
New York 17, N. Y.
(11/12)
Inc.
amendment covering a number of shares
newly created series of its special stock. Proceeds—For
a
Underwriter
investment.
Co,)
Funds,
an
yet undetermined of Diversified Growth Stock Fund,
as
Inc.)
Growth Stock Fund Shares
Peabody
•
Inc.)
American Trust Co., San Francisco
(owner of approximately 55% of the present outstanding
common
stock) will purchase any unsubscribed shares.
ceeds
(par
Office —Suite 839, 60 East 42nd St.,
Debentures
&
Peak
Underwriter—Gardner & Co., New York.
1952
Inc
Pistell
K.
Deerpark Packing Co., Port Jervis, N. Y.
(letter of notification) 235,000 shares of com¬
mon stock
(par 10 cents).
Price—$1.25 per share. Pro¬
ceeds—To repay RFC loan of $41,050 and for working
capital. Offering—Expected before Oct. 15.
March 21
April 7 (letter of notification) 6UU,0UU shares of common
10, 1952
Eberstadt
(P.
share for each 10 shares
new
one
Gunn, Carey & Co.,
at
>
Smith-Douglass Co., Inc
Nov. 3. Price—$23.50 per share.
Proceeds—To step up production of Parliament ciga¬
rettes. Underwriter—None. Tobacco & Allied Stocks, Inc.
held, rights to expire
be sold to
.Common
invited
be
to
November
of
stockholders
common
.Common
Bank.._____
(Bids
Hedges, N. Y.
Oct. 2 filed 39,738 shares of common stock (par $4) being
for
National
Pacific Gas & Electric Co.___
Benson &
*' offered
...Debentures
(Scharff & Jones, Inc. and White, Hattier & Sanford)
Houston, Tex.
Under¬
writer— C. K. Pistell & Co., Inc., New York.
The pro¬
posed offering of preferred and common stocks have
been withdrawn from registration.
capital.
18
Nov. 1 for prior subscription by
on
tics
6, 1952
(Allen & Co.)
sinking fund convertible
debentures due June 30, 1962. Price—At par.
working
Common
underwriting)
Garrett Freightlines, Inc
(11/12)
Allpark Finance Co., Inc.
Aug. 28 filed $500,000 of 6%
Debentures
stockholders—No
to
will
unless
n
writer—d'Avigdor Co., New York.
•
5, 1952
State Street Investment Corp.__
Under¬
which
Proceeds—
1,000
share.
per
Underwriter—None,
unsubscribed
are
Crown
Sept.
Bosworth, Sullivan & Co., Inc.)
and
Price—$25
capital.
vertible debenture notes due Oct.
Refining Co...:
Boettcher &
6,000 shares;! of common
stock (par 10 cents). Price—$5 per share. Proceeds—For
expenses
stockholders—No underwriting)
(Peters, Writer & Christcnsen, Inc.; Sidlo. Simons, Roberts & Co.;
Springs, Inc., N. Y.
Oct. 16 (letter of notification)
subscription by stockholders
of one share for each three held;
Cleveland, Ohio.
3, 1952
November
N. Y.
shares
.Common
to
working
capital stock
for
vidual through Clemens E. Gunn of
Dow Chemical Co
Air
For
Debentures
November
Proceeds—
To Darwin R. Kindred, the selling stockholder.
Under¬
writers—Sutro & Co., Los Angeles, Calif., and Franklin
developmental
For
Drug Co..
77,000 shares of common
(40 cents per share).
par
to be offered
of record Oct. 1 at rate
1, 1952
(Offering to stockholders)
(letter of notification)
Price—At
(par $5)
ISSUE
Co., Cayuga, N. Y.
rights expire Oct. 31.
November
ir Air America, Inc.
stock.
REVISED
Oct. 6 (letter of notification) 3,000 shares of
non-vot¬
ing class A stock. Price—$1 per share, plus $4 lor sub¬
scription to "Jubiliee," a new publication.
Proceeds—
For working capital.
Office—150 Waverly Place, New
York 14, N.
PREVIOUS
ITEMS
•
Inc.
(letter of notification) 50,000 shares of
Oct. 22
ADDITIONS
SINCE
—
Peabody
Kidder,
Co.,
&
New York.
November
Bristol Oils Ltd., Toronto, Canada
Sept. 25 filed 1,000,000 shares of common stock (par $1).
Price—Approximately 64.48 cents per share. Proceeds—
To acquire leases and for corporate purposes.
Under¬
writer—None.
To be named
13, 1952
International Minerals & Chemical Corp.__
(White,
Pacific
Weld
Finance
Co.,
&
and
Byrd Oil Corp., Dallas, Tex.
Hornblower
Hall
November
8c
15,
(Bids
subscription by common stockholders at the rate of
$100 of bonds for each 28 shares of stock held (for a 14-
Carl
M.
Loeb,
waived
to
be
Inc.)
$1,014,500 of
(Bids
be
Dow Chemical
Oct.
3
mon
stock
(letter
Proceeds
&
Gas
Co.,
Dallas, Tex.;
(Offer to
one
cent).
Bond
Share
&
November
(Stern
2,393,600 shares of
Price—12V2
cents
per
com¬
Co.
Preferred
Brothers
Co.)
&
20,
(Bids
a.m.
EST)
Suburban Propane Gas Corp.__
(Eastman,
★ Cimota Enterprises, Inc.
mon
stock.
(letter of notification)
3,000,000 shares of
Price—10 cents per share.
large plant.
com¬
Proceeds—To
(Bids
filed $2,500,000 of 10-year convertible junior
debentures due Aug. 1, 1962. Price—To be supplied
by
amendment. Proceeds—To pay notes issued to the Ports¬
Offering
(Bids
Temporarily
—
Oct. 22 filed
be
offered
Illuminating Co.
557,895 shares of
for
subscription
common
by
EST)
25, 1952
8:30
a.m.
Debentures
PST)
Peoples Gas Light & Coke Co..
(11/24)
stock
common
a.m.
November
(Offering
Electric
Common
Bonds
11
Pacific Telephone & Telegraph Co
Underwriter—Halsey, Stuart & Co.
Inc., Chicago and New York.
postponed.
Cleveland
Co
Gulf States Utilities Co
Cincinnati Enauirer, Inc.
to
stockholder—No
(no par) to
invited)
To
be supplied
additions.
by amendment. Proceeds—For property
Underwriter—None.
New
3,
1952
com¬
Proceeds—For general
corpo¬
by
Construction.
will be offered by company and
Philadelphia
the
Underwriters—To
Co.
Proceeds—For
be
determined by
competitive bidding. Probable bidders: The First Boston
Corp^/Lehman Brothers; Kidder, Peabody & Co.. Merrill
Lync% Pierce, Fenner & Beane and White, Weld & Co.
(jointjy);
Kuhn, Loeb & Co. and Smith, Barney & Co.
(jointly); Blyth & Co., Inc.; Carl M. Loeb, Rhoades & Co.
and Wertheim & Co. (jointly); Stone & Webster Securi¬
ties Corp.
Bids—Expected to be received up to 11 a.m.
(EST) Nov. 20.
Co.,
Ohio
2.122 shares of common
Elyria,
(letter of notification)
stoc||^fto par) and 5,600 shares of 5% preferred stock
(pa|/$50). Price—Common stock at $7,476 per share, and
at par. Proceeds—For new construction,
Second St., Elyria, Ohio. Undervvriter-
Non^'"
to
be
invited)
Farm
Oct.
December 9,
1952
New England Telephone & Telegraph Co
(Bids
to
be
Debs.
invited)
(Bids,
to
January 20,
Ohio Power Co
to
be
III.
t|aderwriter—Paul H. Davis & Co., Chicago, 111.
Underwriters Association, Los Angeles,
^lifornia
Sept.p(letter of notification) 2,000 shares of common
stockiUpar $1). Price—To be supolied by amendment.
1953
,_____^_Bonds & Preferred
(Bids
Peoria,
2,000 shares of common
Falters
Bonds
Invited)
be
Eauipment Acceptance Corp.,
pj (letter of notification)
stock||par $50). Price — $60 per share. Proceeds — For
working capital. Office—3500 North Adams St., Peoria,
111.
December 15, 1952
New Orleans Public Service Inc
—
affiliated
York, Chicago & St. Louis RR.,_Eq. Trust Ctfs.
(Bids
★ Compressed Products Corp., New York
Oct. 23 (letter of notification)
99,000 shares of common
stock. Price—$3 per share. Proceeds-—To
buy machinery,
equipment and inventory and for working capital. Of¬
fice
400 Madison Avenue, New
York, N. Y Under¬
writer—Dan Broder, Los
Angeles, Calif.
share.
which 80,000 shares
of
etc.
December
per
preferred stock
Q^fice—330
record Nov. 24 at the rate of
one new share for each five
shares held; rights to expire on or about Dec. 19.
Price-
and
Underwriter—None.
Elyria Telephone
1, 1952
be
subsidiaries
its
Common
Bonds
to
share
Duquesne Light Co., Pittsburgh, Pa. (11/20)
Sept. 30 filed 250,000 shares of common stock (par $10),
underwriting)
Florida Power Corp
(Bids
new
The offering will ooen Nov. 3 and close on Nov.
Price—$31
Oct.j£7
December
stockholders of
company
panies.
new
stockholders—no underwriting)
to
common
one
170,000 shares
1952
Cleveland Electric Illuminating
July 25
Corp.
Co.)
en¬
Underwriter—None.
Steel
Preferred
&
November 24,
(Offering
mouth
Dillon
of
rate purposes..
1952
Common
11
and
rate
26.
Duquesne Light Co.__
—
17
follows:
stockholders of record Oct. 21, 1952
for each 50 shares held, and
shares for subscription by employees of
scription by
at
stockholders)
18, 1952
November
share.
For acquisition of properties and working
capital. Underwriter—West & Co., Jersey City, N. J.
Oct.
as
the
Common
Electric
Inc.
of notification)
(par
be offered
about- 205,000
United Gas Corp
Rhoades &
Oil
Co., Midland, Mich. (11/3)
shares of common stock (par $5)
About 420,000 shares for sub¬
Sept 23-filed 625,000
to
invited)
share). Proceeds—For general
Office—58 Sutter St., San Francisco
purposes.
Underwriter—None.
4, Calif.
1952
Thurston Chemical Co
Carver
by stockholders of record Oct. 6 at rate of one share
common shares held; rights to expire on Oct.
corporate
Bonds
lo
(letter of notification)
Price—At par ($2 per
31.
Bonds
Long Island Lighting Co
and working
(James)
1.9
for each 10
1952
17,
Engineering Co.
100.000 shares of con¬
vertible 5% preferred stock being offered for subscrip¬
tion
Weeks;
invited)
November
their
Co., New York; and Straus,
McDowell, Chicago, 111.
Blosser &
&
Detroit & Toledo Shore Line RR.__
for
day standby). Certain stockholders have
rights. Price—At par. Proceeds—To repay
outstanding notes and for drilling expenses
Capital. Underwriters—Dallas Rupe & Son,
Co.,
Dole
Sept.
Debentures
Inc.;
Harris,
Oct. 22 filed
$1,750,000 of 10-year 5V2% convertible sink¬
ing fund mortgage bonds due Nov. 1, 1962, to be offered
Debs.
i
Corp._
(Blyth
by amendment.
Co.
&
invited)
Proc|eds—To John C. Tyler, the selling stockholder. Office-|4680 Wilshire Boulevard, Los Angeles, Calif- Un¬
derwater—Lester, Ryons & Co., Los Angeles,. Caji£. ;
,
"
Fischer
Consumers
City,
Cooperative Association, Kansas
subordinated
$6,000,000 of 20-year 5%%
subordinated certificates of indebtedness; and $1,000,000
Boston
Philadelphia
t
Pittsburgh
San Francisco
Private Wires
to
all
offices
Chicago
Cleveland
25-year 5%%
ness;
subordinated certificates of indebted¬
to be offered for sale to members and others.
—At face
amount.
Proceeds—To build plant.
—Wholesale purchasing association.
Statement effective Oct.
Sulzberger &
ber shnjyy )pro-_
Underwriter—HaUovirell,
PhUadelphia,^
yf
* Florida Power
Corp."
ceedsffeFor
Sept. 24 filed $3,000,000 of 10-year 4V2%
New York
f?;
preference* stock (no par)..Price^SULTS
Missouri
certificates of indebtedness,
of
Oct.
& Porter Co., Batbdro^-Pa^^^;y«;^' yfr ~
(letter of notification) 10,500 shires' of clsfes A
15.
Price
Business
Underwriter—None.
Oct.
working capital.
t^'':
(12/1
2| filed $15,000,000 of first mortgage bbnds1 due 1982.
Proce|ds—To
repay
bank loans and for new construction.
Underwriters—To be supplied
by amendment.
Kidder,
Peabo|yy& Co. and .Merill Lynch, Pierce, Fenner &
Beane fiahdled last bond financing which was done pri¬
vately $ Bids—Tentatively
or
about Dec; 1.——-—
.
expected
—
•
«—
to
be
received
: J
on
Volume
176
Number 5164
.
The Commercial and Financial Chronicle
.
.
Floseal
Corp., Seattle, Wash.
(letter of notification) 24,950 shares of capital
stock (par $1). Price — $12 per share. Proceeds
For
Sept. 12
*
.
—
general corporate purposes. Address—c/o The Corpora¬
tion Trust Co., 1004 Second Ave., Seattle 4, Wash.
Un-»
derwriter—None.
Food
•
Fair
Stores, Inc., Philadelphia, Pa.
Sept.. 9 filed 100,000 shares of common stock (par $1)
to be offered to certain employees pursuant to the terms
of stock purchase plan.
Price—$3 below the average
market price for the month in which
payment is com¬
pleted.
Proceeds—For general funds.
Underwriter—
1
*
.
Fabrics
Corp.,
shares.
shares;
to "public,
and
275,000'
Proceeds—For
Office—119 South Beverly
($1
par
share).
per
general corporate purposes.
Drive, Beverly Hills, Calif.
Underwriter—Douglass
&
Co., Beverly Hills, Calif.
Forming Machine Co.
of America,
Inc.
of
stock
common
(par $1) being offered for subscription by stockholders of
Sept. 23 at rate of one new share for each 15
shares
held; rights expire Nov. 10. Price—$200
per
share.
Proceeds—For working capital.
Office—18 Hamilton
Bound Brook, N. J.
Underwriter—None.
St.,
Front
Range Mines, Inc., Denver, Colo.
Sept. 8 (letter of notification) 125,000 shares of common.
stock (par $1).
Price—At market (approximately 37%
cents per share). Proceeds—To Irene F. Marple, a direc¬
tor. Underwriter—Stanley Pelz &
Co., Inc., New York.
.
Frontier
Refining
Co., Denver, Colo. (11/5)
Oct. 16 filed $1,000,000 5%% convertible debentures due
1962.
Price—At par (in units of $1,000 each).
Proceeds
—For equipment and working
capital. Underwriters—
Peters, Writer & Christensen, Inc.; Sidlo, Simons, Roberts
'
& Co.; Boettcher &
,
Co.; and Bosworth, Sullivan & Co.,
Inc.; all of Denver, Colo.
*
Oct.
Tire & Rubber Co., Akron, O.
(letter of notification) 6,861 shares of
(par $5) to be offered in exchange for
14
stock
common
exploration, development and acquisition of
properties. Underwriter—Brewis & White, Ltd., Toronto,
July
Canada.
1, 1977.
Price
To
—
be supplied by amendment.
Proceeds—For expansion program and general corporate
Industrial
share
Guardian Chemical
Corp., Long Island City, N. Y.
(letter of notification) 299,900 shares of common
(par 10 cents).
Price—$1 per share.
Proceeds—
For expansion and working capital and to retire
pre-
Oct. 7
■
stock
\
terred stock.
(11/24)
Oct. 23 filed $10,000,000 of first mortgage bonds due
Dec. 1, 1982. Proceeds—For new construction and to re¬
pay bank loans.
Underwriters
To be determined by
—
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Salomon Bros. & Hutzler and Union Securities
Corp. (jointly); Carl M. Loeb, Rhoades & Co., and Lee
Higginson Corp.
(jointly); Merrill Lynch, Pierce, Fenner & Beane and White, Weld & Co. (jointly); Lehman
Brothers; Stone & Webster Securities Corp. Bids—To
.
be received
,
'
v
1
(EST)
a.m.
*
on
Nov. 24.
supplied.
(letter of notification)
common
stock
(par $1).
if Jensen Tractor & Manufacturing Co.,
Burbank, Calif.
Oct.
made through certain
stock
(par
per
share.
(letter of notification) 1,000 shares of common
($100 per share). Proceeds—To en¬
large plant. Office—901 South Main St., Burbank, Calif.
stock.
Price—At par
U nderwriter—None.
if Keystone Custorian Funds, Inc., Boston, Mass.
Oct. 27 filed 250,000 shares of Series B-3; 600,000 shares
of Series B-4; 100,000 shares of Series K-l; 25,000 shares
of Series S-l;
and 50,000 shares of Certificates of Parti¬
Price—At market. Proceeds—For investment.
cipation.
Underwriter—Keystone Co. of Boston, Boston, Mass.
officers and directors.
share). Proceeds—For working capital. Office—43
Exchange Place, New York, N. Y. Underwriter—None.
Price—$5 per share. _Pro—For working capital. Underwriter
Jackson &
—
Co., Boston, Mass.
Hawaiian
Ltd.,
Honolulu,
T.
repay
new
construction.
Underwriter
—None.
Nov.
on
Proceeds—To
bank loans and for
repay
Underwriter—To
be
determined
17.
Hilseweck
Minerals Corp.,
ic Lowell Adams Discount Co., Inc., N. Y.
Oct. 23 (letter of notification) 29,000 shares of 6% cumu¬
lative preferred stock. Price—At par ($10 per share).
Proceeds—To
increase
working capital.
Co., New York.
Louis L. Rogers
Underwriter—
$1). Price—$960
$1,000
per
debenture,
plus
purchase
stock
common
50 shares
subscription warrants for the
of common stock. Proceeds — For
corporate purposes. Business—To engage
business. Underwriter—None.
Household
filed
17
Finance
60,000
Price—30 cents per share. Proceeds
purchase wells and for equipment. Underwriter—
New York.
stock (par one cent).
Underwriter
Margolis.
New York, will act as
common
stock
(no
par—
$12 per share) to be offered for subscription
by certain employees and executives. Price—$28.50 per
Proceeds—For
working
Underwriter—
Maryland Mines Corp.
filed
Price—At
change).
200,000
market
shares
(on
Proceeds—To
MacBoyle
Betchtold,
testament
of
Francisco.
Calif.
Errol
as
the
of
common
San
stock
Francisco
(par $1).
Stock
Ex¬
selling stockholder (Gwendolyn
executrix
Bechtold,
of
the
deceased).
last
will
if Marsh Steel Corp., North Kansas City, Mo.
Oct. 27 filed $500,000 of 5% debentures, series A, due
$50,000 annually from Nov. 1, 1953 to Nov. 1, 1962, inclu¬
sive.
For
Price—At
100%
working capital.
of
principal
amount.
Proceeds—
Underwriter—The First Trust Co.
(Neb.).
McCarthy
(11/13)
Oct. 23 filed
$10,000,000 of capital debentures, 5%% se¬
(Glenn), Inc.
exchange for a like amount of par value of
series,
sinking fund
5%
(par 25
Price—$2 per share. Proceeds
For drilling of
exploratory wells, acquisition of leases and for general
corporate purposes. Underwriter—B. V. Christie & Co.,
Houston, Tex.
Dealer Relations Representative—George
—
Searight, 50 Broadway, New York, N. Y.
Telephone
Offering—Date indefinite.
amount. Proceeds—For working
H.)
Co., Hartford, Conn.
Underwriter—None.
Glass
Corp., Beverly Hills, Calif.
Sept. 22 (letter of notification) 299,635 shares of.comtmon stock, to be issued as follows; To William Hoeppner, 6,985 shares; to stockholders of Soft-Flex Cftass
100% of principal
capital. Underwriters—
Co., Inc.
if Pacific Telephone & Telegraph Co.
Oct. 24 filed 703,375 shares of common stock to be of¬
fered for subscription by stockholders at rate of one new
share for each nine preferred or common shares held.
ently
more
owns
Telegraph Co., the parent, pres¬
of the outstanding shares.
share). Proceeds—To repay ad¬
than 90%
Sept. 10 (letter of notification) 5,000 shares of common
(par $2) and warrants to purchase 20,000 shares
Price—At par ($100 per
of
common
share to be offered in units
writer—None.
one
to
cember.
stock
stock
share
at
and
$6
per
warrants
Price—$1.9.87%
purchase four additional
Proceeds—To Clifford
share.
per
S. Strike, the selling stockholder.
bery, Marache & Co., New York.
Oct.
Underwriter—Gran-
(letter of notification) 25,000 shares of common
(par $2). Price—$7 per share. Proceeds—To Clif¬
S. Strike, the selling stockholder.
Underwriter—
Granbery, Marache & Co., New York.
Mid
vances
American
and bank loans and for
construction. Under¬
new
Offering—Expected
to
be made in
De¬
if Pacific Telephone & Telegraph Co. (11/25)
Oct. 24 filed $35,000,000 of 27-year debentures due Nov.
1979.
15,
6
bank
Proceeds
loans and
for
—
For repayment of advances and
new
construction. Underwriters—To
be determined by
competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Lehman Brothers and Union
Securities Corp. (jointly); White, Weld & Co.; Morgan
Stanley & Co. Bids—Tentatively set to be received at
Oil & Gas Co.. Chicago, III.
(letter of notification) 80,000 shares of common
stock (par 10 cents). Price—At market (at an aggregate
8:30
Price—At the market. Proceeds—To J. Paul Getty,
10
not
exceed
to
ment of oil and gas
$24,000). Proceeds-—For develop¬
Underwriter — Greenfield &
leases.
a.m.
(PST)
on
Nov. 25.
Pacific Western Oil Corp.
Aug. 5 filed
dent,
100,000 shares of common stock
Underwriter
—
None,
sales
to
be
brokers
Midcontinent Chemical Co., Grove City, Ohio
Sept. 26 (letter of notification) $50,000 of 5%% secured
Aug. 20 filed 3,000,000 shares of capital stock.
At par
due
March
15,
1963.
Price—At
nominations of $1,000 and $500).
capital.
Underwriter—The
par
(in de¬
Proceeds—For working
Ohio
Company,
Columbus,
Ohio.
Oct. 21
(letter of notification)
(about $14.25
gregate
Corp.
of
per
share), in
$36,375.
may
—
act
no
None,
as
up
to but not exceeding.
(no par). Price—At market
Proceeds
Underwriter
adelphia, Pa.,
Paradise
event to exceed an ag¬
—
To
but
broker.
Baldwin
Drexel
&
Securities
Phil¬
Co.,
the New York
by
Stock Exchange.
Valley Oil Co., Reno, Nev.
Price—
share). Proceeds—To drill six welli
subleased land and for other corporate purposes. Un¬
on
(10 cents
per
derwriter—None, with sales to be made on a commission
basis (selling commission is two cents per share).
Of¬
fice—c/o Nevada Agency & Trust Co., Inc., Cheney Bldg.,
139
if Midvale Co.
on
(par $4).
Presi¬
handled
Co., Inc., New York.
2,552 shares of capital stock
International
series and
Blyth & Co., Inc., Hornblower & Weeks and Harris, Hall
&
American Telephone &
(F.
sinking fund
$1.25
debentures will be offered publicly at
June 12 filed 10,000,000 snares of common stock
McGraw
each in
outstanding
ries, due 1973, to be issued in multiples of $1,000
$1.25 series preferred stock. The offer will be made on
Nov. 13 and will expire on Nov. 20. Price—Unexchanged
and
Office—San
C.
& Co.,
if Pacific Finance Corp., Los Angeles, Calif.
debentures
capital.
None.
Idaho
but Hettleman
None,
broker.
—
amount
Corp.
shares of
Corp., Conroe, Tex.
Oil
(letter of notification) 1,000,000 shares of common
$1.25 to $1.75 per share). Proceeds—To Mrs. Dorothy
Oct.
stated value
i
Newton-Conroe
Oct. 9
$10.50 per share). Proceeds—To Walter B. vonKleinsmid,
the selling stockholder.
Office—14409 South Paramount
Boulevard, Paramount, Calif. Underwriter—None.
general
in oil and gas
N. 19th
Ave., Phoenix, Ariz.
if Official Films, Inc., Richfield, N. J.
Oct. 21 (letter of notification) 15,000 shares of common
stock (par 10 cents). Price—At market (approximately
ford
6
Kenneth K. Pound, 502 E. Campbell
Company;
—
if Macco Corp., Paramount, Calif.
23 (letter of notification) 2,000 shares of common
(par $1).
Price—At market (between $9.50 and
Oct.
stock
(par
Un¬
Minneapolis, Minn.
—To
stock
stock
June
share). Proceeds—To George W. Snyder, President.
derwriter—Greenfield & Co., Inc., New York.
Morris Cohon & Co.,
Dallas and
City
Sept. 18 filed $1,500,000 of 20-year non-negotiable de¬
bentures due Aug. 1, 1972 and 139,920 shares of common
Oklahoma
share.
Sept. 8 (letter of notification) 150,000 shares of common
stock.
Price—At market (approximately 10 cents per
ers
*
Oct.
(par 10 cents).
Ave., Phoenix, Ariz.; and Law L. Lovelace, 6143
shares.
of
of common
Price—$1 per share.
Proceeds—
For exploration and development expenses.
Underwriter
—Aetna Securities Corp., New York.
stock
of
—
short-term notes and for
(N. Y.)
Sept. 19 (letter of notification) 300,000 shares
if National Reserve Insurance Co., Phoenix, Ariz.
Oct. 20 filed 214,285 shares of common stock (par $1).
Price—$1.40 per share. Proceeds — To be invested by
trustees in accordance with trust agreement. Underwrit¬
1980.
construction.
H.
Sept. 25 filed 50,000 shares of common stock to be offered
for subscription by common stockholders of record Oct.
3 in the ratio of one new share for each 10
shares held.
Price
At par ($20 per share).
Proceeds — To
Montana Basin Oil Corp.
new
due
WHitehall 3-2181.
Co.,
Underwriter—None.
871, Kingman, Ariz.
Box
by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; W. C. Langley & Co.; Smith, Barney & Co.; Blyth
& Co., Inc., and The First Boston Corp. (jointly). Bids—
Tentatively scheduled to be received at noon (EST)
Long Island Lighting Co. (11/17)
$20,000,000 of first mortgage bonds, series E,
Oct. 15 filed
A.
Electric
Underwriter—None.
if Mohave Venture Farms, Kingman, Ariz.
Oct. 23
(letter of notification) 700 shares of common
stock (par $100) and $140,000 of promissory notes (in
denominations of $200 each). Price—At par. Proceeds—
To clear land and for new construction. Address—P. O.
if Nash Finch Co., Minneapolis, Minn.
Oct
21 (letter of notification) 1,000 shares of common
stock (par $10).
Price—At market (estimated at from
$17 to $20 per share). Proceeds—To Willis King Nash,
the selling stockholder. Underwriter—J. M. Dain & Co.,
cents).
16,972 shares of Class A
$1).
$5),
subscribed, paid for
and issued, and an additional 107,550 shares have been
subscribed for as of Aug. 28 and will be issued in con¬
nection with expansion of ammonia plant.
The remain¬
ing shares will be offered for sale primarily to farmers
and farm groups.
Price —At par. Proceeds —For new
which 849,038 shares have been
of
Multiple Dome Oil Co., Salt Lake City, Utah
★ Legatees Funding Corp., N. Y.
Oct. 24 (letter of notification) 12,500 shares of 5% cumu¬
lative convertible preferred stock. Price—At par ($20
Proceeds
Underwriter—None, sale#'to be
(letter of notification)
common
ceeds
Mississippi Chemical Corp., Yazoo City, Miss.
construction.
20
12,300 shares of class A
Price—$5
—For working capital.
Sept 18
Development Corp.
shares of class A stock. Price—At par
($100 per share). Proceeds—For industrial and mineral
development of Israel. Underwriter — Israel Securities
Corp., New York.
of Lincoln
Sept. 16
T
,.
to 11
up
Gyrodyne Co. of America, Inc.
Sept. 10 (letter of notification) 2,000 shares of c&ss A
common stock (par $1).
Price—$5 per share.
Proceeds
—For working capital.
Office—Elowerfield, St. James,
L. I., N. Y. Underwriter—None. Of the amount
offered,
$5,000 may be used as payment for services and for
materials
.
Mineral
Underwriter—Batkin & Co., New York.
★ Gulf States Utilities Co.
(
&
common
Crosley Motors, Inc., on basis of one General
for each 27 Crosley shares
tendered, with
cash at rate of $1.25 per share for all shares which
are
not multiples of 27.
Underwriter—None.
r
Names of United States underwriters to be sup¬
plied by amendment.
Underwriter—White, Weld & Co., New York.
purposes.
shares of
Tire
Pro¬
Oct. 23 filed $20,000,000 of subordinated debentures due
per
General
<
Price
^
ceeds—For
Oct. 6 filed 30,000
record
,
Exploration Corp., Ltd., Toronto Canada
filed 2,000,000 shares of common stock, each
share to have attached an "A," "B" and "C" waiiant,
each giving the holder the right to buy one additional
share for each two shares purchased in two, three, or
Sept. 29 filed 2,000,000 shares of common stock (par
Oct. 3 (letter of notification) 175 shares
,
Mineral
July 29
five years, at $1, $2 and $3 per share, respectively.
—For 2,000,000 shares, $1 per share—Canadian.
if International Minerals & Chemical Corp.,
Chicago, III. (11/13)
Israel
i
17,650
.Price—At
None.
-
47
(1659)
N.
Virginia St., Reno, Nev.
Penn-Allen
Broadcasting Co.
18,580 shares of class A
stock (par $10) and 7,432 shares of common
Sept. 30 (letter of notification)
common
stock
(par $10)
to be offered in
units of five class A
Continued
on page
48
.
w
48
The Commercial and Financial Chronicle
(1660)
Continued
shares
from
and
two
a
Oct.
shares.
common
Proceeds—To construct
SeaPak Corp.,
10 (letter of
47
page
Price—$70
per
unit.
television station and for work-
Office—Masonic Temple Bldg., Allentown,
Jig capital.
Underwriter—None.
Pa.
Pennsylvania Citrus Groves, Inc.
(letter of notification) 100,000 shares of common
stock (par $2).
Price—$2.50 per share. Proceeds—To
plant, fertilize and insure citrus fruit trees.
Under¬
writer—Graham & Co., Pittsburgh, Pa.
Oct. 8
it Peoples Gas Light & Coke Co., Chicago,
III.
(11/25)
186,715 shares of capital stock to be offered
Oct. 24 filed
for
subscription by stockholders of record Nov. 19 at rate
of one new share for each five shares held; rights to
expire
on
Dec. 15. Subscription warrants will be mailed
Nov. 25.
Price—At par ($100 per share).
Proceeds—For
Perfect
construction.
new
Underwriter—None.
Circle
Corp., Hagerstown, Ind.
Sept. 17 (letter of notification) 1,000 shares of capital
stock (par $2.50). Price—At the market (approximately
$14 per share). Proceeds—To Herman Teetor, the selling
stockholder.
Underwriter
A. G. Becker & Co. Inc.,
—
Seiberling Rubber Co.
Oct. 1 filed $3,750,000 convertible sinking fund deben¬
tures due Oct. 1, 1967. Price—To be supplied by amend¬
ment. Proceeds—To repay $1,200,000 loan and for work¬
ing capital. Underwriter—Blair, Rollins & Co., Inc., New
York.
Offering—Postponed indefinitely.
Sentry Safety Control Corp., Phila., Pa.
200,000 shares of common
(par 10 cents). Price—$1 per share. Proceeds—For
working capital.
Underwriter — Louis L. Rogers Co.,
Oct. 17 (letter of notification)
stock
New York.
Budget Loans, Inc., Minneapolis, Minn.
Sept. 22 (letter of notification) 4,000 shares of preferred
slock, series A (no par). Price—$24 per share. Proceeds
—For working capital.
Office—227 Twin City Federal
Building, Minneapolis, Minn. Underwriter—M. H. Bishop
&
Co., Minneapolis, Minn.
it Poole Oil Co., Inc., Graham, Tex.
Oct. 20 (letter of notification) 9,800 shares of common
stock (no par). Price—$2 per share. Proceeds—For gen¬
eral
corporate purposes.
Address—P. O. Box 452, Gra¬
Underwriter—None.
ham, Tex.
(Daniel)
Pharmaceuticals, Inc.,
Angeles, Calif.
(letter of notification) 220,000 shares of capital
stock, of which 110,000 shares are to be issued to Daniel
S. Shaffer for promotional services. Price—At par ($1
Oct.
21
share). Proceeds—For manufacture
per
maceutical
products.
Office—11973
and sale of
San
Vicente
phar¬
Blvd.,
Angeles 17, Calif. Underwriter—None.
Manufacturing Corp., Portland, Ind.
(letter of notification) 5,000 shares of common
(par $1). Price—At market (approximately $15 per
share). Proceeds
To Ralph P. Chempney, the selling
stockholder. Underwriter—Straus, Blosser &
McDowell,
Chicago, 111.
Oct.
Powers
6
stock
—
of
heavy duty
etc.
power
transmission chain, prockets, gears,
Underwriter—Dallas Rupe & Son,
Dallas, Texas.
it Preferred Oil & Gas Co., Pittsburgh, Pa.
Oct. 24 (letter of notification) 50,000 shares of common
stock (par one cent), and 50,000 shares of common stock
(par $1). To be offered for subscription by holders of
5% preferred stock of Treesdale Laboratories & Textile
Processing Co., of record Nov. 1; the offer to expire on
Nov. 24. Price—At par. Proceeds—To repay loan and for
drilling expenses and working capital.
UnderwriterGraham & Co., Pittsburgh, Pa.
it Puritan Fund, Inc.,
Signal Mines, Ltd., Toronto, Canada
July 14 filed 300,000 shares of common stock. Price—
At par ($1 per share). Proceeds—For
exploration, devel¬
opment, and mining expenses, and to reimburse Maurice
Schack, Secretary-Treasurer. Business—Quartzite min¬
ing. Underwriter
Northeastern Securities Co., New
Oct
20
filed
25,000
Price—At
market.
writer
Paul
—
shares
of
(par
Proceeds—For investment.
H.
Davis
&
Co.,
Chicago,
$1).
Under¬
111., and The
Soundcraft
Corp., N. Y.
Oct. 3 (letter of notification) 10,245 shares of common
stock (par'five cents).
Price—At market (about $2.62y2
share).
Proceeds—To Bernard Goodwin, the selling
stockholder.
Underwriter—Gearhart & Otis, Inc., New
per
York.
it Rowland Products,
Oct.
22
stock.
(letter
Inc., Kensington, Conn.
notification) 800 shares of common
of
Price—At par
($25
per
share). Proceeds—For ad¬
ditional equipment. Office—Fairview
Conn.
Underwriter—None.
Place, Kensington,
Safeway Stores, Inc.
Sept 12 filed 1,900 shares of 4% cumulative preferred
stcok (par $100) and
18,000 shares of common stock (par
$5) to be issued to James A. Dick Investment Co. (for¬
merly The James A. Dick Co.) in exchange for inven¬
tories, fixtures, operating supplies, good will and other
assets of Dick.
It is anticipated that the Dick
will
a
sell
all
or
time to time
on
substantial
Company
part of these shares from
the New York Stock
Exchange.
Under¬
writer—None.
it Sapphire Petroleums Ltd., Toronto, Canada
Oct.
28
filed
Canadian).
50,000 shares of
common
stock
(par $1—
Price—To be supplied by amendment.
ceeds—To Ken
Kelman, the selling stockholder.
14
370,000 shares of common stock (par $5),
100,000 shares are to be offered by the company
270,000 shares by certain selling stockholders. Price
—To be supplied by amendment.
Proceeds—To install
phosphoric acid facilities and other plant improvements.
Business—Producer and distributor of fertilizer materials
and mixed fertilizers.
Underwriter—F. Eberstadt & Co.,
Offering—Expected week of Nov.
Southern New
Underwriter—None.
(George) Sons, Inc., Fremont, Neb.
(letter of notification) 989 shares of 6% cumu¬
lative preferred stock. Price—At
par ($100 per share).
17
Proceeds—For
working capital. Office—108 East 6th St.,
Fremont, Neb. Underwriter—None, but Ellis, Holyoke &
Co., Lincoln, Neb., will act as broker.
Productions, Inc., Newport, R. I.
Sept. 8 (letter of notification) 5,000 shares of
non-voting
common stock, series B
(no par). Price—$10 per share.
Proceeds—To acquire real estate and
buildings, convert
sound stages, install
recording equipment and
and for other
corporate purposes.
Newport, R. I.
Underwriter
Providence, R. I.
—
cameras,
Office—73 Bliss Road,
Kidder, Peabody & Co.,
Underwriter—To be named by
amendment.
fering—Tentatively postponed. Statement
-Of¬
be with¬
may
drawn.
Texo Oil Corp., Ardmore, Okla.
Sept. 2 (letter of notification) 934,400 shares of common
stock (par one cent). Price—31V4 cents per share. Pro¬
leases
in
Duval
and
Live
on
corpora¬
Oak
Counties, Texas,
Underwriter—Stanley Pelz & Co., Inc., New York.
^-Thurston Chemical Co., Joplin, Mo.
(11/18)
Oct. 24 filed 40,000 shares of 5%% cumulative preferred
stock
(par $25) and 84,130 shares of
stock (par
$5), the latter to be sold for the account of selling stock¬
holders. Price—To be supplied by amendment. Proceeds
—From sale of preferred, for plant additions and work¬
ing capital. Business—Manufacture and distribution of
fertilizers.
common
Underwriter—Stern Bros. & Co., Kansas
City,
Mo.
j
Torhio Oil
Corp., Ltd., Toronto, Canada
Aug. 21 filed 300,000 shares of
common
be offered first to stockholders
and
(
(
^Trad Television Corp.
Oct. 20 (letter of notification)
50,000 shares of common
stock (par one cent). Price—At market
(around 35 cent3
share).
per
Proceeds—To Robert Edwards, a Vice-Presi¬
Co., New York.
dent. Underwriter—Tellier &
Transcontinental Oil Corp., Dallas, Tex.
14 (letter of notification)
60,000 shares of
New
York; and Lynch, Allen & Co., Inc., Dallas, Tex.
United
Gas
Corp., Shreveport, La.
Gas
stock for each
on
Price
or
10
nine shares held; rights to ex¬
Price—At par ($25 per share). Proceeds—
To repay $3,500,000 advances from
& Telegraph Co.
(owner of
the
improvements).
writer—None.
Office—New Haven, Conn.
Under¬
• Southern Radio Corp., Charlotte, N. C.
Oct. 20 (letter of
notification) 10,500 shares of common
stock (par $5), and
2,500 shares of 6% cumulative pre-
ferred_stock (par $50). Price—$12
per share for common
and $50 per share for preferred. Proceeds—For
operat¬
ing capital. Office—1625 West Morehead St., Charlotte,
N. C. Underwriter—None.
par) to
record
1952, at rate of one new share for each 10 shares
Price—At net asset value in effect when
properly
executed subscription warrants are received from
stock¬
holders. Proceeds—For investment. Underwriter—None.
Nov. 5,
held.
stockholders
at
rate
of
one
Price—$100
Chicago 13, 111.
per
new
care
24
filed
preferred
common
common
each
for
four
Proceeds—To
in¬
of increased business
Office—4101 Ravenswood Avenue,
Underwriter—None.
it Suburban Propane Gas Corp.
Oct.
share
share.
70,000
stock
(par
(11/20)
shares
of
$50
convertible
—
cumulative
business.
convertible
before
Business—Distribution
Underwriter—Eastman, Dillion
Dec.
1,
and
sale
of
& Co., New York.
Sunshine Packing Corp. of
Pennsylvania
July 3 filed $1,000,000 of 6% convertible debentures due
1972 (subordinate) and
450,000 shares of common stock
(par 50 cents) of which the debentures and 400,000 shares
of stock
are
to
be offered
in units
of $50 of
Share
and
stock
(27.01%)
Co., which presently owns 3,165,outstanding United Gas stock.
of
Underwriter—None.
)
.
Universal Gas & Oil Corp., N. Y.
Oct. 17 (letter of
notification) 295,000 shares of common
(par 10 cents). Price—$1 per share. Proceeds—For
liquidation of an indebtedness of $95,000 and for working
capital. Underwriter—Frank M. Cryan & Co., New York.
stock
Utana Basins Oil
Co., Salt Lake City, Utah.
(letter of notification) 2,300,000 shares of com¬
mon stock
(par one cent), of which 300,000 shares will
be reserved for option to underwriters.
Price—cents
per share. Proceeds—To drill wells. Office—509 Atlas
Oct.
16
Bldg.,
Salt
Lake
City,
Utah.
Underwriters
:■.
it Victoria Copper Zinc Mines Ltd.,
Montreal, Canada
Oct. 22 filed
To
be
1,050,000 shares of
taken down in
10
—
D.
W.
Co., both of Salt Lake
(;
.
,.,t
common
stock.
Price-
blocks
ranging from 50,000 to
200,000 shares at prices ranging from 15 cents to $1 per
share.
Estimated public offering prices
range from 35
cents to $1.50 per share.
Proceeds—For mining opera¬
tions.
Underwriter—Jack
Rogers, of Montreal, Canada,
who is the "optionee" of the stock to be
taken down.
Video
Products Corp., Red Bank, N. J.
(letter of notification) 75,000 shares of common
stock (par 50 cents).
Price—$2.50 per share.
Proceeds
—For
working capital.
Office—42 West Street, Red
Bank, N. J. Underwriter—None.
Oct. 3
.
1962). Price—To be supplied by amendment. Proceeds—
For working capital for
development and expansion of
company's
shares
city.
(11/5)
Streeter-Amet Co., Chicago, III.
Aug. 27 (letter of notification) 2,367 shares of
stock (par $50) to be offered for
subscription by
—
Nebeker & Co. and A. P. Kibbe &
• State Street Investment Corp., Boston, Mass.
Oct. 24 filed 180,556 shares of
capital stock (no
be offered for
subscription by stockholders of
Bond
—
American Telephone
960,296 shares, or 26.67%, of
voting stock of Southern, and for property additions
and
of
17; with rights to expire Dec. 3,
To be supplied
by amendment. Proceeds
To
781
each
shares
about Nov.
Electric Bond & Share
for
(11/17)
Oct. 15 filed 525,036 shares of common stock
(par $10) to
be offered for subscription
by Electric Bond & Share Co.
to its stockholders on the basis of one share of
United
Sept. 22 filed 400,000 shares of capital stock being offered
subscription by stockholders of record Oct. 8 at rate
share
common
(par 25 cents). Price—At market (approximately
$1.37Mj per share). Proceeds—To C. J. Simpson, the sell¬
ing stockholder. Underwriters—Bonner & Bonner, Inc.,
of
one
stock (par $1) ta>
then
to the general
public. Price — 60 cents per share. Proceeds—For ex¬
ploration of oil and gas properties, and to drill a tesl
well. Underwriter—None, but
offering to public will be
handled through brokers.
held
for
gases.
it Schweser's
10.
England Telephone Co.
and increased costs.
chain.
(par 50
stock
stock
(10/10-14)
and
equity capital to take
Exchange. Price—At market (ap¬
share). Proceeds—To certain selling
common
Oct.
of which
crease
Curb
Tex.
Underwriter—
filed
held.
proximately $2 per
stockholders. Business—Cigarette and
cigar store
Seacrest
Smith-Douglass Co., Inc.
shares
(D. A.), Inc., New York
Sept. 26 filed 717,149 shares of common stock
(par $1),
in two blocks, one in the amount of
349,500 shares and
the other 367,649
shares, to be sold from time to time on
Oct.
•
Oct.
Pro¬
Schulte
New York
and Emily C. Underwood.
Ames, Emerich & Co., Chicago, 111.
Under¬
writer—None.
the
S. Underwood
pire Oct. 31.
Crosby Corp., Boston, Mass.
Reeves
Signode Steel Strapping Co., Chicago, III.
9
(letter of notification) 2,044 shares of com¬
stock (par $1).
Price—At market (about $17 per
share). Proceeds—To John W. Leslie, trustee of Walter
Oct.
mon
•
Mass.
capital stock
2,500,000 shares of
—
Inc., New York.
Boston,
filed
4
debentures
and 20 shares of stock. Price—$100 per unit. Proceeds—
To increase capacity of plant and for
working capital
Underwriter—Weber-Millican Co., New York.
Vitro
Oct.
15
stock
Manufacturing Co., Pittsburgh, Pa.
(letter of notification) 2,500 shares of common
50 cents). Price—At market (estimated at
(par
$11.50 per share). Proceeds—To Charles S. Payson, the
selling stockholder.
Underwriter
Blyth & Co., Inc.,
New York.
No public offer planned. 4;
—
Waukesha
per
Motor Co., Waukesha, Wis.
(letter of notification) 5,800 shares of common
(par $5).
Price — At market (approximately $17
share). Proceeds—To Edward G. Bach, Executor of
the
Estate
Oct.
6
stock
Lynch,
of
Peirce,
Isabel
Hadock.
Underwriter
Fenner
—
& Beane, Milwaukee,
general public offering made. •
Merrill
Wis.
No
Oils, Ltd., Toronto, Canada
July 29 filed 375,000 shares of common stock (no par).
West Coast Pipe Line Co., Dallas, Texas
Sept. 29 (letter of notification) 22,500 shares of capital
stock (par $10). Price—For 10,000 shares at par and for
Price—To be related to quotation on the Toronto Stock
Exchange at time of offering.
Proceeds — For working
capital. Underwriter—F. W. MacDonald & Co., Inc., New
remaining 2,500 shares $12.50 per-share (latter to be sold
for account of 23 stockholders)/ ^ Proceeds—For working
capital. Underwriters — White; Weld & Co. and Union
York,
Securities Corp.,
Sweet Grass
Offering—Probaby
some
time in October.
J
cents). Price—To be supplied by amendment. Proceeds—#;
To buy property for oil prospecting.
Office—Houston,
—
Manufacturing Co., Longview, Tex.
Sept. 25 filed 250,000 shares of common stock (par $1).
Price
$2 per share.
Proceeds — For machinery and
equipment and new construction.
Business—Production
Texas General Production Co.
June
tion's
Los
York.
-
Bank & Trust Co.
ceeds—To drill three wells to test formation
Shaffer
Shelter
Phoenix
ic Tappan Stove Co., Mansfield, Ohio
Oct. 20 (letter of notification) 5,000 shares of capital
stock (par $5). Price—At market (estimated at $19 per
share). Proceeds—To reimburse company for purchase
of said shares under the company's Employees' Profit
Sharing and Retirement Fund through Citizens National
•
Los
Chicago, 111.
Ga.
1,750 shares of common
stock (par $1). Price—At market (approximately $6.75
to $7.75 per share).
Proceeds—To John E. Haynes, the
selling stockholder. Underwriter—None, but French &
Crawford, Inc., Atlanta, Ga., will act as broker. No gen¬
eral public offering now planned.
about
or
on
Simons Island,
St.
notification)
Thursday, October 30, 1953
...
both of New York.
-
Volume 176
Number 5164
.
The Commercial and Financial Chronicle
.
.
(1661)
Whiting Corp.,
Harvey,
III.
Connecticut Light &
Oct. 10 filed 50,000 shares of 6% cumulative convertible
preferred stock, series A. Price—At par ($25 per share).
Proceeds
For new equipment and working capital.
Business—Manufacture and sale of heavy equipment for
—
of food and chemical processing, and
transportation, etc.
Underwriters—William R. Staats &
Co., Los Angeles, Calif.; and Shearson, Hammill & Co.,
New York.
Offering—Expected today (Oct. 30).
March 1 it
Power Co.
Lazzard
announced that it is
was
presently estimated
that approximately $11,000,000 of additional
capital will
be required during the latter half of 1952. Underwriter
—Putnam & Co., Hartford, Conn.
manufacturers
Detroit & Toledo Shore Line
Sept. 17 it
to
issue
1982.
Wisdom
Magazine,
Inc.,
Sept. 17 filed 6,600 shares of 5% cumulative preferred
(par $100) and 6,600 shares of common stock (par
$10) to be offered in units of one share of preferred and
stock
share of
one
publish
Wyoming National Oil Co., Inc., Denver, Colo.
drill
ceeds—To
and
equip wells.
Underwriter
—
To
—
Sept.
will
Jan.
16 company
later
on
however,
no
announced that further construction
require additional financing. There are,
plans for raising any new capital at the
present time.
Stockholders
on
Oct.
will vote
15
in¬
on
creasing authorized capital stock to 5,000,000 shares from
1,500,000 shares and on approving a 3-for-l stock split.
Sept. 29 it
was
announced company proposes to construct
about 100 miles of pipe line the estimated cost of
which,
$5,784,606, is expected to be financed through the issu¬
ance of
$4,500,000 of first mortgage bonds (which may
be
placed privately) and $1,300,000 of bank loans.
Prospective Offerings
Traditional
Underwriter—White, Weld & Co., New York.
Aluminium Ltd.
1 Eastern
Oct.
15 directors expected that additional financing will
be undertaken in 1953 to meet the major part of the in¬
The
the
in
crease
First
acted
estimated
of
cost
the
expansion program.
Boston
Corp., and A. E. Ames & Co., Ltd.,
dealer-managers in stock offering to stockhold¬
as
in Oct. 1951.
ers
American Trust Co., San Francisco, Cal.
(11/12)
Sept. 30 Blyth & Co. Inc. and associates agreed to pur¬
chase at $55 per share such number of common shares
sufficient
Oct.
27
to
the
provide
4%
the
funds
required
to
retire
on
convertible
preferred stock (par $50)
remaining outstanding after expiration of the conver¬
sion privilege at 5 p.m. (PST) on Oct. 22. The preferred
£s
convertible
for
stock
common
on
a
Utilities
of
amount
stock
to
raise
approximately
$2,000,000. plan further provides that Blackstone Valley
Gas & Electric Co., Brockton Edison Co., and Fall River
Electric Light Co. issue mortgage bonds. Proceeds—To
repay bank loans.
Underwriters—For EUA debentures
may be determined by competitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc. (for bonds only);
Lehman Brothers; Estabrook & Co. and Stone & Webster
Securities Corp. (jointly); Glore, Forgan & Co. and Har¬
riman Ripley & Co., Inc. (jointly).
common
Equitable Gas Co.
share-for-share
basis.
The bank plans offer of additional common stock
Oct.
cn
about
invite
or
Nov.
12
on
a
pro
rata
basis for
a
30-day
standby with Blyth & Co., Inc. underwriting.
Arkansas
Louisiana
Gas
Co.
Dec.
3, 1951 it was reported company may issue and sell
$35,000,000 of first mortgage bonds. Underwriters—May
be determined by competitive bidding.
Probable bid¬
ders: Halsey, Stuart & Co. Inc.; The First Boston Corp.
and Lazard Freres & Co. (jointly); Union Securities
Corp.; Smith, Barney & Co.; Equitable Securities Corp.
Proceeds—To repay bank loans and for new construction.
it was announced Philadelphia Co. proposes to
competitive bids for its holdings of $6,354,000 of
20-year 3%% sinking fund debentures, due March 1,
1970, of Equitable Gas Co. Awarded to Blyth & Co.,
3
Inc., on Oct. 29 oil
planned at 94.636%.
bid
a
of
94.47%.
Public
Oct. 1 it
000,000
,
3
it
plans to issue and sell
$23,000,000 of sinking fund debentures due 1972. Pro¬
ceeds—To retire $21,877,760 preferred stock at $10.50
per share. Underwriters—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; The First Boston Corp. and Lazard Freres & Co.
reported
was
company
ad¬
an
$400,000 of equity capital. An issue of $200,000
of capital stock was just recently placed privately at
$7.50 per share.
Underwriter — Gearhart, Kinnard &
(jointly); Smith, Barney & Co.
Arkansas
Power
&
Light Co.
Moses, President, announced that
the company expects to borrow additional money next
Spring to finance its 1953 construction program, which,
It is estimated, will involve $29,500,000.
Aug. 7
C. Hamilton
California Electric Power Co.
Oct.
7 it
announced
intends to sell early
in 1953 approximately $10,000,000 of additional new se¬
curities, the type of which has not yet been determined.
Bidders for common stock may include: Merrill Lynch,
Pierce, Fenner & Beane and Dean Witter & Co. (jointly);
Kidder, Peabody & Co.; Blyth & Co., Inc.
,
was
Central
Hudson
Gas
&
Electric
Corp.
proceeds
to
be
used
for
new
construction.
bond financing was
done privately in March,
through Kidder, Peabody & Co., New York.
Central
Sept. 2 it
Maine
Latest
1951,
Power Co.
announced company soon after March 1,
1953, intends to issue and sell $6,000,000 of first and
general mortgage bonds and sufficient common stock to
was
it
15
was
approving
on
Oct.
18.
proposal involving
28
offering of 25,000
an
Price—$40 per share. Proceeds—To increase capital
Underwriter—None.
and surplus.
if Franklin National Bank, Franklin Square, N. Y.
Oct. 21
shares
the Bank
of
offered stockholders 33,700 additional
capital
stock
(par
share for each ten shares held
$10)
(with
at
the
rate
of
one
oversubscription
privilege); rights to expire Nov. 7. Price—$44 per share.
Proceeds—To increase capital and surplus. Underwriter
—Blair, Rollins & Co., Inc., New York.
Frontier
Oct. 1 it
are not now known and will
depend upon
the market price at the time of the
offering. Proceeds—
For expansion of San Manuel mine or for
working cap¬
ital. Underwriter—Lazard Freres &
Co., New York.
Mansfield
Oct.
of
$1,000,000 additional convertible debentures.
Proceeds—To increase refining capacity.
Underwriters
—Peters, Writer & Christensen, Inc.; Sidlo, Simons, Rob¬
erts & Co.; Boettcher & Co.; and Bosworth, Sullivan &
Co. handled sale in May 1, 1951 of a like amount of 5!/2%
debentures due in 1961.
common
announced company plans to
stock and additional debentures
was
Garrett Freightlines, Inc. (11/6)
17 it was announced company has applied to ICC
for authority to issue and sell $1,100,000 6% convertible
early in the
Spring of 1953. Proceeds—To repay bank loans and for
construction program. Company has sought SEC author¬
ity to borrow from banks an aggregate of $25,000,000.
Underwriters—To be determined by competitive bidding.
Probable bidders: For stock, Merrill Lynch, Pierce, Fen¬
ner & Beane, White, Weld & Co. and R. W. Pressprich
& Co. (jointly); Morgan Stanley & Co. For debentures,
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.
Tire
&
Rubber
Co.
reported company plans issuance and sale
convertible preferred stock issue. Underwriter—A.
a
was
Chicago, 111.
MidSouth Gas Co.
Sept. 23
company was authorized by FPC
191 miles of natural
gas pipeline and to
to construct
acquire
ing 38-mile line from Arkansas Power
an
exist¬
&
Light Co. at an
aggregate estimated cost of $4,524,200. Stock financing in
July, 1951, was underwritten by Equitable Securities
Corp.; T. J. Raney & Sons; and Womeldorff &
Lindsey.
Mississippi Power & Light Co.
March
sell
14
it
reported
was
in November
an
issue
company plans to issue
of $8,000,000 first
and
mortgage
bonds.
Underwriters—To be determined by competitive
bidding. Probably bidders: Halsey, Stuart & Co. Inc.;
White, Weld & Co. and Kidder, Peabody & Co. (jointly);
Blyth & Co., Inc.; The First Boston Corp. and W. C.
Langley & Co. (jointly); Equitable Securities Corp. and
Shields & Co. (jointly); Merrill
Lynch, Pierce, Fenner
& Beane; Union Securities Corp.
Mutual
23
Telephone Co.
it
(Hawaii)
announced
was
company expects to place
privately in October an issue of $2,500,000 3V2% bonds
and plans to issue and sell next year about
$3,000,000
securities, half in preferred stock and half in
stock.
Traditional
common
Underwriter—Kidder, Peabody & Co.,
New York.
of about
ceeds
was reported company plans issuance and sale
$10,000,000 first mortgage bonds, series D. Pro¬
To repay
—
bank loans and for
new
construction.
Underwriters—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb
& Co. and
Glore, Forgan & Co. (jointly); Salomon Bros.
Hutzler; Kidder, Peabody & Co. and Stone & Web¬
ster Securities Corp.
(jointly); Lehman Brothers and
Goldman, Sachs & Co. (jointly); Union Securities Corp.;
The First Boston Corp.; White, Weld & Co.
Offering—
Expected late this year or early in 1953.
&
National
Credit
Card, Inc., Portland, Ore.
company is considering doing
equity financing (probably in the form of clas3 B
of $20 par value).
Sept.
8
some
stock
it
was
reported
England Telephone & Telegraph Co.
(12/9)
Oct. 21 company announced it plans to issue and sell an
issue of $20,000,000 of 25-year debentures. Proceeds—To
bank loans, etc. Underwriters—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Morgan Stanley & Co.
Bids—Tentatively ex¬
pected to be received on Dec. 9.
repay
England Telephone & Telegraph Co.
directors authorized an offering to stockholders
of 232,558 additional shares of capital stock at the rate
Oct.
of
21
one
($100
outstanding debentures and preferred stock and for new
equipment and working capital. Underwriter—Allen &
Co., New York; Peters, Writer & Christenson, Denver,
loans, etc.
Colo.; and Edward D. Jones & Co., St. Louis, Mo.
Sept. 16 company
construct
860-mile pipeline extending from southern
an
Louisiana
Houston, Tex.
applied to the FPC for authority to
to
a
point
in
northeastern
Kentucky. This
project would cost about $127,887,000. Transportation of
gas is expected to commence by Nov. 1, 1954.
Hibernia National Bank, New Orleans, La. (11/6)
was announced that Bank proposes to offer for
Oct. 17 it
subscription by stockholders of record Nov. 6 a total of
25,000 additional shares of common stock (par $20) at
rate
of
one
new
on
ceeds—To increase
share
for
each
Nov. 21.
four
Price—$40
capital and surplus.
Scharff & Jones, Inc. and
of New Orleans, La.
per
shares
held;
share.
Pro¬
Underwriters—
White, Hattier & Sanford, both
Kansas City Power &
per
share).
Inc.; Glore, Forgan & Co.; Blyth & Co., Inc. and
Proceeds
—
Underwriter—None.
For repayment of bank
American Telephone &
Telegraph Co. holds about 70%
standing capital stock,
of
the
presently out¬
New Orleans Public Service Inc. (12/15)
July 24 company announced plans to issue and sell $8,000,000 of first mortgage bonds due Dec. 1, 1982. Pro¬
ceeds—For
new
construction.
Underwriters—To be
de¬
termined
by competitive bidding.
Probable bidden:
Halsey, Stuart & Co. Inc.; Lehman Brothers; Kidder,
Peabody & Co. and Stone & Webster Securities Corp.
(jointly); Equitable Securities Corp.; Union Securities
Corp. Registration — Expected about Nov. 14. Bids —
Tentatively set for Dec. 15.
if New York, Chicago & St. Louis RR. (12/3)
Bids are expected to be received by the company on
Dec. 3 for the purchase from it of $2,430,000 equipment
trust
certificates.
Probable
bidders:
Halsey,
Stuart
&
Co., Inc.; Salomon Bros. & Hutzler.
Northern
Light Co.
Sept. 15 company announced that it plans to issue and
sell late in 1952 $12,000,000 principal amount of first
mortgage bonds
Underwriters — To be determined by
competitive bidding.
Probable bidders: Halsey. Stuart
& Co.
share for each 10 shares held. Price—At par
new
debentures due 1967. Price—At par. Proceeds—To retire
rights to expire
issue and sell
it
New
•
Oct.
the
Columbia Gas System, Inc., N. Y.
1
New
reported directors have authorized issuance
and sale of
Gulf Interstate Gas Co.,
Oct. 10 it
as
The number of shares which will be issued
and the of¬
an
yield approximately $5,000,000 to refund the then out¬
standing short-term notes. Underwriters—To be deter¬
mined by competitive bidding. Probable bidder—(1) For
bonds, Halsey, Stuart & Co. Inc.; Coffin & Burr, Inc. and
The First Boston Corp. (jointly); Blyth & Co., Inc. and
Kidder, Peabody & Co. (jointly); Merrill Lynch, Pierce,
Fenner & Beane and White, Weld & Co. (jointly); Harriman Ripley & Co., Inc.; Salomon Bros. & Hutzler.
<2) For stock, Blyth & Co., Inc. and Kidder, Peabody &
Co. (jointly); Coffin & Burr, Inc. and The First Bos¬
ton Corp. (jointly); Harriman Ripley & Co., Inc.
it
was
announced company intends to offer as
possible to its stockholders sufficient presently
authorized but unissued shares of its
capital stock to
yield at least $6,000,000 in proceeds to the
company.
Refining Co.
was
28
soon
Oct. 7 it
Co., Evanston, III.
announced stockholders will vote Oct.
a
of
Narragansett Electric Co.
Bank & Trust
additional shares of capital stock (par $20) to stockhold¬
ers on a share-for-share basis.
Rights will expire on Nov.
company
Oct. 20 filed with New York P. S. Commission for per¬
mission to issue and sell $6,000,000 first mortgage bonds,
the
Oct.
of
construction.
new
ic Magma Copper Co.
Sept.
ditional
First National
$12,000,000
securities, probably bonds. '
In August of last
year,
$8,000,000 3%% first mortgage bonds due
1976 was placed privately
through Lehman Brothers and
Merrill Lynch, Pierce, Fenner & Beane.
issue
an
Otis. Inc., New York.
Oct.
reported company may issue and sell $10,-
was
to
Proceeds—For
offering
European American Airlines, Inc.
June 11 it was reported company plans to raise
Arkansas Natural Gas Co.
construction.
new
Laclede Gas Co.
G. Becker & Co. Inc.,
Associates
Sept. 3 it was announced that amended plant of reor¬
ganization of this company and subsidiaries calls for is¬
suance by company of $7,000,000 debentures and a suffi¬
cient
Proceeds—For
fering price
East Tennessee Natural Gas Co.
R. L.
Hughes & Co., Denver, Colo.
refund
on
Duke Power Co.
new
Oct. 10 (letter of notification) 500,000 shares of common
stock (par five cents).
Price—25 cents per share. Pro¬
(11/15)
approximately $3,000,000
1, 1953. Underwriters—To
be determined by competitive bidding. Probable bid¬
ders may include Halsey, Stuart & Co. Inc. Bids—Ex¬
pected to be received about Nov. 15.
stock. Price—$110
common
per unit. Pro¬
national picture magazine. Un¬
derwriter—None. An earlier registration statement filed
July 14, 1952, covering a like offering of preferred and
common shares was withdrawn Aug.
1, 1952.
ceeds—To
Proceeds
bonds which mature
Beverly Hills, Calif.
RR.
announced that the company is planning
sell $3,000,000 first mortgage bonds due
Freres
&
Co.
(jointly); The First Boston
Corp.; White, Weld & Co. and Shields & Co.
(jointly);
Smith, Barney & Co.; Kuhn, Loeb & Co., Salomon Bros.
& Hutzler and Union Securities
Corp. (jointly); Equit¬
able
Securities
Corp.; Lehman Brothers and Bear,
Stearns & Co.
(jointly); Harriman Ripley & Co., Inc.
was
and
49
Indiana Public Service Co.
Sept. 18 it was reported company may issue and sell
shortly after the close of this year some additional pre¬
ferred
stock. Underwriters—May be Cen¬
(Inc.), Blyth & Co., Inc. and Merrill
Lynch, Pierce, Fenner & Beane.
tral
and
common
Republic Co.
Continued
on
'page 50
50
The Commercial and Financial Chronicle
(1662)
Continued
from
Oct. 3 it
Northern
Natural
Standard
Pennsylvania Power & Light Co.
49
page
Gas
Co., Omaha,
Neb.
Oct.
reported company may be planning to issue
was
sell
$10,000,000 of first mortgage bonds. Previous
financing was done privately through The First
sell
and
bond
Sept. 17 company sought FPC authority to construct
pipeline facilities to cost an estimated $69,826,000. This
would include about 442 miles of main pipeline addi¬
Co.; Smith, Barney & Co.
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; The First
pipeline bonds, and preferred and common
Boston Corp. and Kidder, Peabody & Co. (jointly). Com¬
July 1, L. M. Klauber announced that of the more than
Boston
Oct. 28 it
preferred
for
determined
(1)
Halsey,
Boston Corp.; Union
it
28
sell
total
a
(jointly); Kuhn, Loeb & Co., Harriman Ripley
&
Co., Inc. and Stone & Webster Securities Corp.
(jointly). (2) For preferred stock, Blyth & Co., Inc.;
Dillon, Read & Co., Inc.
Bids—Tentatively expected to
scription to
be received
Expected
Jan. 20.
bank
of
an
Inc.
issue of prior preference stock to finance
Kaar
Oct. 21 it
was
Electric Co.
(11/6)
to
plans
stock (par $25) of Pacific
Gas which it received upon dissolution of a former sub¬
and Dean Witter
Merrill
First
Co.
&
& Co. and R.
include Blyth & Co., Inc.
(jointly); Lehman Brothers and
Lynch, Pierce,
Boston
may
Fenner
Beane
&
(jointly); The
Corp.; Kidder, Peabody & Co., Hallgarten
W. Pressprich & Co. (jointly).
company
filed
construct
a
first to be offered for sub¬
are
and
Northwest.
Colorado
to
market
1,384-mile trans¬
areas
in
the
for
expansion program.
Offering—
it
that
announced
was
additional
the
company
16 it
$179,000,000.
project
expects
Financing is expected to consist of first
Underwriters—White, Weld & Co. and Kidder, Peabody
stock
it
3
(at
planned.
Co., both of New York, and Dominion Securities Corp.
Oct. 23, J.
to
float
R. Patten,
an
issue
of
about
$3,000,000
of
discussed
(probably around 400,000 shares). Price—About $7
share.
Proceeds
For
—
construction
writers—Kuhn, Loeb & Co.
&
program.
and Carl M.
first
to
1953.
Loeb, Rhoades
and
"common
ranged
Inc.; Kuhn, Loeb
this company's common
by Sinclair Oil Corp. is
Union Securities Corp., New
—
and
use
the proceeds
toward
bond
and
preferred
stock
Glenn
135
L.
Martin
Mining Corp.
..
&
—
my
Walter
=E
Street, Chicago 3, 111.
—
L.
S. Jackson
&
Co., 132 St.
on
Cement
Wisconsin
Co.
Power
&
Light.
—
Mass.
Rochester Gas & Electric
—
Bulletin
—
Goodbody & Co., 155
Broadway, New York 6, N. Y. Also available
are
bulletins
Capital Airlines and American Cyanamid.
on
—
Memorandum
Newling & Co., 80 Richmond
Street, West, Toronto, Ont., Canada.
—
Southeastern Public Service—New
:
Trans
&
T
circular—Troster, Singer &
Co., 74 Trinity Place, New York 6, N. Y.
Super Cold Corporation—Analysis—Lewis &
Broad
Stoehr,
Inc.,
80
Street, New York 4, N. Y.
Mountain
=
Pipe
Line
—
Up to this writing the mar¬
managed to preserve
ket has
—
Greenshields
Co., Aldred Building, Montreal, Que., Canada.
Union Gas of Canada Ltd.—Memorandum—McCuaig Bros.
Co., 276 St. James Street, Montreal,
Que., Canada.
&
week's
rise; at
portion of it that
that
Freehling
Street, Chicago 3, 111.
of
No-
market behavior, it is likely
that stocks will now
go into
(Del.)
markets
initial
with
to
operate
financing has
as
been
a
ar-,
public
no
Glore, Forgan & Co., both of New Yoru.
Natural
Gas
Co.
convertible
of
it?
about
on
a
(carrying
5%) for subscription by
l-for-20
standing
basis.
shares
retire bank
of
author¬
(par $30),
plans to offer about 170,000 sharei'
preferred stock
Proceeds
5%
To
—
preferred
loans and for
new
dividend
a
common
redeem
stock
w
stockholders
2,053
(par
construction.
out-,
$100), to
Traditional
Underwriter—White, Weld & Co., New York.
stocks of the
a dominant
victory. It's not exactly a
major parties,
contenders, in get financial contributions
The chief
opinion, will be the oils.
a
an
issue of 500,800 shares of preferred stock
supporting argument I
son
secret that both
from
the
to the
same
sources,
laws
contrary notwithstand¬
note that
a number of the oils
ing. Such slogans as "Time to:
managed to rise a few Make a Change," etc., make
points from their bottom exciting chatter for the aver¬
prices and have held on to age voter, but don't blind in¬
their gains. Another interest¬
dustry to the essential end
ing sidelight is the increase that whoever is in the White
in the dividend announced the
House is the
other
to do
day by Warren Oil at
a
fra¬
pre¬
one
it will have;
business with.
❖
After
*
all
this
*
ring-around-'
the-rosy talk,
the
How far the market will go
if it does resume its advance
my guess is that
will do compara¬
market
tively little
no
matter which
candidate gets
the nod. In the
another period of dullness out is a moot
point. The chief meantime, however, get ex¬
of
which
they'll break-out point of interest at this writ¬ cited as you wish about the
again.
*;'•
ing is the election. Most peo¬ elections but don't let your
.
,
*
The
$
question
direction
To
the
*
is
ple- seem
to
believe
that sentiments guide your market
in .which whichever way it goes will be activities.
break-out will the
get the
you'll
have
to
wade
through as
many- arguments for and
against as the political candi¬
answer
ket
starting
itself.
❖
<
i'r-
offices
Road,
Northeast.
With
financial
naive
that- it
(Special
opinion isn't
is that the break¬
on the upside with
pared itself against
guess
from
:|e
*
But
out will be
J. A. McManus
Opens
Atlanta, Ga.—John A. McManus"
is engaging in a securities business
at
1444.
Fairview
,
furthering their celebration..
.*
*
gun for the mar¬
Financial opinion
prefers Eisenhower, so the as¬
sumption is that if he gets the
nod, the market will stage a
causes.
My
•
have
4, N. Y.
—
Inc. and
last
dates make in
Vanadium Corporation of
America—Analysis—American Secu¬
rities
Corporation, 25 Broad Street, New York
Washington Water Power Company —
Analysis
Meyeroff & Co., 120 South La Salle
midwest
The
privately
time when the trading
Friday. Its halt at ternity were mentally
this point is, therefore, not pared for a status quo.
*
*
*
surprising.
As a matter of
least
be.
Memorandum
of' last
came
Analysis and review of the Cement
Industry—Lerner & Co., 10 Post Office Square, Boston 9,
Scurry Oils
By WALTER WHYTE
most
Pacific Power & Light—Memorandum-^-A. C. Allyn & Co.. 100
West Monroe Street, Chicago
3, 111.
Also available is a
Riverside
Says —
Associates,
Street, West, Montreal, Que, Canada.
memorandum
Whyte
Company—Analysis—Dempsey & Company,
Memorandum
for
as
negative
role.
Markets
Avenue, New York 36, N. Y.
South La Salle
James
Motter
other
past few weeks in
Tomorrow's
Recommendations & Literature
B.
end
announced that this
of which the company
financing
As
Fifth
Pipe Line Co.
was
carrier."
Western
also be necessary; this previously was done pri¬
vately. Underwriter—Dillon. Read & Co. Inc., New York
Dealer-Broker Investment
500
the
near
Pine
& Co.
sale of
the
Kropp Forge Company—Bulletin—O.
Stanley & Co., New York. Of¬
commence
offering expected
years. E. Holley Poe and Paul Ryan, of
St., New York, N. Y., are the principal officers
of the corporation.
Underwriters—Probably Dillon, Reao
..
Public Service Co.
Additional
v
for at least two
.
Continued from page 8
...
to
States
1950 it
Chicago
was
stockholders)
t
cover-
company had
been formed to build, own and
operate a petroleum'
products pipeline from the Texas Gulf Coast to St. Louis,i
may
Co., both of New York.
Morgan
Sept. 25,
which, it is estimated, will involve
approximately $23,000,000 for the year ended Aug. 31,
per
future
near
vember.
construction program
Under¬
with
fering—Expected
reported that company may do some addi¬
common stock financing
(with offer to be made
tional
stock
is planning to file
company
registration statement in
Sept. 2 stockholders approved the creation of
Southwestern
common
announced
was
a
shares)
Underwriter
Aug. 4 it
President, said that it, is planned
it
an
ized
if Pan-American Sulphur Co., Dallas, Tex.
Co.
offering to its stockholders of approximately
250,000 shares of its capital stock. Proceeds—For working capital. Underwriter—Details of financing are being
York.
Ltd., Toronto, Canada.
28
ing
Development Co.
least 260,000
•
stock. Proceeds—For construction
program. Un¬
United
reported
was
-
Underwriter—Kidder, Pea-
reported company plans issue and sale of
first mortgage bonds and 500,000 shares of
with SEC
announced stockholders will vote Nov. 21
Southwestern
Oct.
-
the
oi
if Union Bag & Paper Corp.
Oct.
70
stocks, and is expected to be completed by April, 1953
Edison
cost
Lynch, Pierce, Fenner & Beane; Blyth & Co.,
Smith, Barney & Co. and Collin, Norton & Co.
(jointly); Lehman Brothers, Harriman Ripley & Co.,
Inc., Bear, Stearns & Co. and Carl M. Loeb, Rhoades &
Co. (jointly); W. C. Langley & Co.
Offering—Of bonds,
probably in November; and of stock, later in 1952.
bonds
Probable bidders: Halsey, Stuart & Co.
& Co.; Morgan Stanley & Co.
The- estimated
Inc.;
Ry.
was
Mexico.
Merrill
time in January. Registration—Expected
of bonds which mature up to and including Nov. 1, 1956.
Underwriters—To be determined by competitive bidding.
Pacific
Estimated overall capital cost of the
,
T
ler (jointly); Carl M. Loeb, Rhoades &
Co.; Kidder, Pea¬
body & Co.; The First Boston Corp. The common stock
offering may be underwritten by The First Boston Corp.
In 1950, the following group bid for common stock
issue:
shares of stock held. Price—To be de¬
approving a proposal to issue up to $89,643,000 of re¬
funding bonds to provide funds to refund a like amount
mission line extending from the San Juan Basin in New
Mexico
■
oral argument for Oct. 20 on a
an
bonds, to be determined by competitive/
bidding.
Probable bidders: Halsey, Stuart & Co. Inc.;
Equitable Securities Corp. and Salomon Bros. & Hutz- !
subor¬
18.
Southern
substitute application
second
a
with the FPC proposing to
&
convertible
new
on
Aug. 29
f
per
derwriters—For
Underwriters—Smith, Barney & Co. and
Lynch, Pierce, Fenner & Beane, both of New
15
sell
Oct.
Pacific Northwest Pipeline Corp.
is
of
issue and
during the first six months of
1953 in the amount then permissible under its mortgage
indenture, and to provide for other permanent financing
by the sale of additional first mortgage bonds or other
securities in such amounts as may be appropriate at the
time. Probable bidders for bonds: Halsey, Stuart & Co
Inc.; Kuhn, Loeb & Co.; The First Boston Corp., Blyth
& Co. Inc. and Kidder, Peabody & Co. (jointly).
Any
stock financing may be via stockholders.
sidiary. Underwriters—To be determined by competitive
bidding. Probable bidders
which
plans to
Southern Natural Gas Co.
announced that North American Co.
to sell 78,684 shares of common
and
$2
—
was
$7,500,000
stockholders at rate of $100 of deben¬
and
some
Dec.
Sept.
Pacific Gas &
issue
to
Price
stocx.
Scott, Khoury, Brockman & Co.,
over
it
3
common
company
from
gas
Toledo
York.
v
•
pre¬
expansion of
Engineering Corp. of Palo Alto, Calif.
f*r»
planned
company
common
—-
$184,000,000.
body & Co., New York.
later date. Proceeds—To retire $40,000,000
a
loans
Merrill
reported corporation plans to sell publicly
was
previous
natural
project is
Oct.
$101,758,900
comon
termined at
after
Sept. 13 it
of
tures'for each 12
'
Pacific Associates,
Inc. handled
Co.,
announced
was
dinated debentures,
Securities Corp. and Salomon Bros.
& Hutzler
on
of
b.y National Coal Association and others to deny
company s application to build a 1,406-mile pipeline ex¬
tending from Texas into West Virginia and to import
Sinclair Oil Corp.
Oct.
bidding. Probable bidders:
Stuart & Co., Inc.; The First
competitive
bonds,
For
•
new
by
reported
shares
Underwriter
Texas-Ohio Gas Co.
ferred stock financing.
(par $100). Proceeds — To repay
construction.
Underwriters — To be
stock
&
Underwriter—Blyth
sell
of
bank
$22,000,000 of first mortgage bonds and 100,000 shares
loans and
150,000
Sept. 30 FPC scheduled
$18,000,000 required for capital improvements in 1952,
approximately $4,000,000 will become available from de¬
preciation reserves and earned surplus, while the re¬
mainder must be secured through the sale of securities.
reported company plans to issue and
was
Tungsten Corp.
was
Inc., New York.
Diego Gas & Electric Co.
San
(1/20/53)
if Ohio Power Co.
Thursday, October 30. 1952
.
motion
financing will probably be done via rights.
stock
and Drexel & Co. If competitive, probable
include: Halsey, Stuart & Co. Inc.; The First
Corp.; Equitable Securities Corp.; White, Weld &
.
bidders may
mortgage
mon
is
share.
Boston Corp.
tions; installation of a total of 73,600 h.p. in new and
existing compressor stations; and numerous branch line
additions. Probable bidders for debentures or bonds;
1
.
so
hasn't
a
pre¬
Steven¬
ST.
King Merritt
The
Financial Chronicle)
LOUIS,
Mo. —Herbert
Goodman
with
to
has
become
S/
affiliated
King Merritt & Co., Itic.
Volume 176
Number 5164
.
The Commercial and Financial Chronicle
.
.
/ail
earnings,/^tnd
to
stocks
still
of
further
Alameda
Street, has been
changed to Woodward 3c Zuber.
the
co
United
dividend of $2.00
share
per
WI
•
Corporation
the
on
Common
Common
suggests
Dec.
(75c)
cents
share
per
3,
1952,
A. B.
issued and outstandins in the hands
of the public has been declared payable
December 10, 1952, to the holders of rec¬
1952
3
Framingham
W. J. ROSE, Secretary.
payment of a quarterly dividend of
fifty cents ($.50) per share payable De¬
cember 5, 1952, to holders of Common
Stock of record November 21, 1952, who
on
that date hold regularly issued Com¬
mon Stock ($1.00
par) of this Company.
CHAS. F. BRADLEY, Secretary
One Broadway, New York 4, N. Y.
tries
essential
so
easing
of
rail
to
world
traffic.
prices promises diminution, if not
an end, of
inflation which has so
often tripped
up
rail profits in
New York
Ill Fifth Avenue
able
dividend
regular
to the cost of
be
■
A/:'
.
Barring
another
period
unrest, this set
labor
severe
of
of
per
of business November
capitalize
being
improvements
on
clared
25c
dividend notice
The Board of Directors has declared
mailed.
be
IIaury
still
are
most
yards
and
to
cases.
be
realized
terminals
is
October 28, 1952
lative
On
the
.
groups may
days,
overrule
ice
the
have
OIL COMPANY
LIMITED
"October
per
share
its
on
27, 1952
['resident.
Dividend
"
NOTICE
bearish
to
October
No. 167
DIVIDEND.,:^
been
declared
28,1952
Hooker Eletirochemital Company
On
give the ICC
state
bodies
extent
of
October. -JiK
dividend
1952,
6ft$
of
cents
quarterly
a
Cumulative
U. S. currency was
value
par
declared
shpres of
-on
the
no
;
Stock
50$
stockholders
holders
of
record
the, close
ot
business November 7,
/' The Board of Directors Of Hooker
dend
of//'
of
record
as
business December s,
JAMES A. DULLEA
Montreal
share
per
the
HANNAN,
quarterly dividend of
share on the outstand'
a
its
on
of
the
close
December
£■■■■■■■•■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■«
"
10,
m
m
1952, to stockholders of record
at the close of business Novem¬
$4.25
Cumulative
Preferred
Stock,
payable December 24, 1952 to stock¬
holders
re¬
$1.0625
of
at
Secretary and Treasurer
Directors today
payable
pany,
Electrochemical Company on October
22, -1952 declared a quarterly divi¬
1952.
per
record
of
ing capital stock of this Com'
/
this'Company.'/';^
payable December 5, 1952, to share-/;;:
serv¬
(3)
Preferred
Dividend
of
Board
declared
$4.25
share in.
per
power
on
The
out¬
close of business November 7, 1952.
KENNETH H.
hand, legis¬
being shaped
the
on
standing capital stock of this Cor¬
poration. These dividends, total¬
ling one dollar ($1.00) per share,are
payable in cash December 1, 1952
INCORPORATED
EDWARD L. SHUTTS,
ri/w'
passenger
abandonments,- and
assess
quarterly dividend of fifty cents
(50^) per share and a special divi¬
fifty cents (50q) per share
dend of
all dividends payable December 1. 1952, to
stockholders of record November 15. 1952.
ALUMINIUM
be¬
(1) shorten the lag
(2)
A
Treasurer
SOCONY-VACUUM
between cost and rate changes to
to
October 23, 1952.
Common Stock ($15 par)
pull effects in this field. Proposed
changes that would aid the rail¬
30
THOS. A. CLARK
30 cents
and
transportation
have favorable longer
roads include
ucc
The transfer books will not close.
its
on
other
proposals
by- investor
share
cents per
of
only
a
and carbon corporation
November 12, 1 952.
on
share on its
$1.76 Conv. Preferred Stock ($30 par)
of
factor.
Union Carbide
44 cents per
lead to
freight cars.
The poor condition of
revenues
is admittedly
the
4%% Preferred Stock ($30 par)
large
savings, including greater utiliza¬
tion
of
the outstand¬
on
in
Modernization
ginning and should
35%
;
operating effi¬
ciency. Full benefits of dieselization
share
following regular quarterly dividends:
L. IIilyard, Treasurer
in
made
de¬
on
per
of record
1952. Checks will
10,
has
Common Stock, payable
ing
the close,
Directors
quarterly dividend
a
December 1, 1952, to stockholders
December 1,
on
1952, to stockholders of record at
conditions should enable the rails
to
cash
Company, payable in
of
Board
The
1952
NOTICE
DIVIDEND
Cents
share has been declared upon the
American Tobacco
(75$)
cannot
15, 1952 to stock¬
of record, December 1, 1952.
Charles D. Brown, Jr., Secretary
utilities company
Seventy-five
of
sev¬
pay¬
December
on
October 28,
Common Stock of The
October.
a quarterly dividend of
enty-five cents (75(f) per share,
iowa southern
3,N.Y.
Common Dividend
189tii
A
the past. Rail wages are now tied
living and contracts
reopened until next
The Board of Directors has this day
holders
commodity
Street, New York 17, N. Y.
declared
CORPORATION
activity in the heavy indus¬
The
SOUTHERN
ber 7, 1952.
of
NATURAL
W. D. Bickham,
Secretary
|
GAS
COMPANY
1952.
a
Government
subsidies for competitors.
v
October 15, 1952
Birmingham, Alabama
Secretary
■
-
a
Common
Stock
Dividend
a
•
Common Stock Dividend No. 55
With Hooper-Kimball
-
(Special
to
The
BOSTON,
lon
has
Financial
been
added
The Board of Directors
to
22,
Val-
the
AMERICAN & FOREIGN POWER
staff
Hooper-Kimball, Inc., 50 Con¬
gress Street.
Record and Payment
With Merrill Lynch
to
The
DETROIT,
Slade is
rill
now
Lynch,
Financial
Mich.
The
Lawrence
connected with Mer¬
Pierce,
Fenner
&
Bean'e, Congress & Shelby Streets.
NOTICE
proval having being obtained,
C&ftipany, at
Decembers, 1952
•••••••••••
full
;
•
for
the
shares
and
the
W.
Burroughs
210TH
AND
of
Secretary
ten
cents
declared
CONSECUTIVE
211TII
($.10)
upon
H the
of
recprd
Detroit, Michigan
TRADER
Over-the-counter trader with 24 years
entertain
out
of
a
share have been
stock
of
BUR¬
at
the
close
of
ber
outstanding
14, 1 952.
1952.
($1.00) per share
1,298,200 shares of Common Stock without
on
October 24, 1952.
Sheldon F. Hall,
Secretary
dividends
a
share
on
ad¬
for
shares
such
will
mailed commencing
ber 7,1952.
be
Novem¬
H. D. McHENRY,
Secretary.
Secretary.
4.08% Cumulative Preferred Stock,
$1,171/2 a share on the 4.70% Cu¬
share
cents
a
dend
Preference
on
the $1.40 Divi¬
Common
Common and Preferred DIVIDEND NOTICE
October 22, 1952
the
Stock
The
Board of Directors of the
ending
December 31,
1952,
all
before December
23, 1952 to holders of record at
payable
on
or
the close of business
on
November
Company lias declared the
following dividends, all payable on December 1, 1952, to
stockholders of record at the close of business October 31,
Amount
1952:
Security
have been declared for the quarter
per Share
1
Preferred Stock, 5.50% First Preferred
Series
Preferred Stock, 4.75% Convertible
Series
Preferred Stock, 4.50% Convertible
Series
*
Period from August
26,1952.
/*
r
GEORGE H. BLAKE
Sy
President
O Secretary
TEXAS
CROSSROADS
V
$1.45*
$1.18.%
$1-121/2
$0.25
Common Stock
PVBLIC SERVICE
.
one
November 5,
Certificates
additional
31, 1951, payable Decem¬
15, 1952, to stockholders of record at the
1952.
J. J. MAHER,
Chronicle, 25 Park Place,
N. Y*,.„
the distribution of
Dated: October 25,1952.
28, 1952.
Box K 1023, Commercial
York .7,
to
ditional share for each share
1952, to
close of business November 14,
town
Financial
New
15,
seeks position
proposition.
&
December
outstanding on
date, giving effect
ended December
Company
mulative Preferred Stock, and 35
DIVIDEND
PANY, payable Dec. 10, 1952, to share¬
holders
WANTED
background
the record
par value of Southern Railway Company has
today been declared out of the surplus of net
profits of the Company for the fiscal year
Public Service Electric
Dividends of $1.02
business Nov. 14, 1952.
would
payable
be
to
BALGOOYEN, Secretary
ROUGHS ADDING MACHINE COM-
trading
twenty-five
the Preferred Stock
the total number of
on
shares
dollar and
A dividend of One dollar
on
-
quarterly dividend of twenty cents
($.20) a share and an extra dividend
and
November
the payment
and stock divi JkMM
A
of
of One
lot, through Bankers Trust Company,
Company's dividend agent.
CASH
SITUATION
NOTICE
($1.25) per share on
Southern Railway Company has today been
declared,
quarterly
by the Board of
on Oct.
22, 1952.
c. Reynolds,
of
the close of busi¬
October 24, 1952.
value), payable December 1,
1952, to stockholders of rec¬
ord November 15, 1952, was
b.
stockholders
to
at
November 28,1952.
The above dividend is pay¬
stockholders of record at the close of business
as
regular quarterly divi¬
Directors
of
the Board of
dend of 50 cents per share on
the common stock ($10 par
declared
!
round
H.
A
dividend
cents
and Gas
of
»
able
A
of the cash
Stock
payable December 12,
record
New York, October 28, 1952.
proceeds. In addition, stockholders receiving
only 1 to 5 sharps inclusive may have the
same
sold for their account, as part of a
the
DIVIDEND NOTICE
DIVIDEND
a
distribution
S
Common
1952
Secretary
combined cash
dend.
.Scrip or fractional shares will,-be
handled by the safe, without charge to the
stockholder, of the/corresponding number of
date
■
the
ness on
October
on
share has been declared
pany,
Company
2nd
meeting held
24, 19S2, set the close of busi-,.
November* 5, 1952 as the record
Directors of the
date and
FINANCE CORPORATION
WILCOX
held, payment of poth subject to Securities
and Exchange Cotftmission approval of the
issuance of the additional stock.
Such ap¬
ness
PACIFIC
ANSLEY
OF
THE
5
cents
Southern Natural Gas Com-
1952.
Company,
35
per
Railway
the close of business
of
August 26, 1952, declared a dividend of
10(* per share in cash and 1 share of common
stock for each TUOFshares of common stock
on
DIVIDEND
Dates of Dividend
Directors of the
as
on
Chronicle)
—
of
Board
record
November 3,
of
on
its
of
Street, New York 6, N. Y
Two Rector
Southern
of
Fifty Cents ($.50) per share
Common
Stock,
payable
November 26, 1952 to stockholders
COMPANY INC.
of
(Special
1952
dend
dividend
A
Company on October
declared a quarterly divi¬
on
S
a
Hooker
of
Electrochemical
Chronicle)
Mass.—Richard
on
CORPORATION
NATIONAL DISTILLERS
defense outlays will support over¬
all purchasing power and main¬
tain
valix
COMMON DIVIDEND No. 29
LABELS
•
Cents
par
WEST INDIES SUGAR
PRODUCTS
SEALS
•
Ten
President.
60 E. 42nd
year
relatively good year for the
carriers. Continued high
of
Joseph F. Martin,
iosth
Mass.
October 29, 1952.
an¬
Newhall, Treasurer
12),4tt/m£>0tv dtftoMufatluXMUj do.|
the close of business November 10
at
of
Wichita River
$1.00
new
the glosc of business
at
the
record Nov. 10, 1952.
the Common capital stock of the Com¬
pany
ord
stockholders
to
the
on
December 12, 1952.
The Board of Directors has authorized
cents
share
hblders of record
Voting Common:
quarterly dividend of 30
per share on the "A" Common and
VotingCorrimon Stocks will be paid
Dividend
Slock
seventy-five
\
f
on
tion, and the relative stability in
wages.
Full-year rail profits
promise to approach $740 million
against $693 million in 1951.
outlook
A
quarterly dividend of
Aregular
t
increases, savings from dieseliza-
1953
"A" Common and
per
special meeting
Common Capital Stock of the Corporation was
declared payable on January 7, 1953, to stock
DIVIDEND
//
On October 24, 1952, at a
of the Board of Directors of
Oil Corporation, a dividend
(10<)
Stock
Nov. 10,1952.
AND ELECTRIC COMPANY
NOTICES
Wichita River Oil
Company
GAS
ducing notable gains in rail earn¬
Profits are being aided by
increased freight traffic, rail rate
DIVIDEND
United States Lines
3, 1952, to stockholders of record
ings.
major
NOTICES
Debenture Stock will be paid Dec.
ac¬
Business
The Service points out that the,
business upswing is pro¬
other
DIVIDEND
51
WRAPPINGS
DIVIDEND NOTICES
NOTICES
DIVIDEND
current
The
NOTICES
GIFT
•
Debenture: The regular quarterly
divi¬
increyses'seem probable,
cording
Service
PAPERS
Woodward, Rogers & Zuber, 22
East
reasonably priced relative
appear
dend
CREPED
TUCSON, Ariz.—The firm name
Outlook Seen for Rails
grade
DIVIDEND
Now Woodward & Zuber
Continued Bright
Better
(1663)
EAST
SHREVIPORT
(fR
-LOUISIANA
|
G2
The Commercial and Financial Chronicle
(1664)
holdings
WASHINGTON, D. C.—Despite
sound and fury of the cam¬
paign battle over foreign policy,
it is very likely, in the opinion of
informed
coming
when
Jan.
President
he
the
in¬
the
find
may
the
takes
that
20
that
observers,
about
changing or backing the present
foreign policy has been very
largely taken from his hands by
in
events
this
United
the
year
-,
States agreed
to a two-part deal
in Europe. One part consisted of
the
the
facing the virtual total collapse
or
of
security
collective
whole
the
program.
"Contractual
Agreements"
r
agreements, with reser¬
vations, establish the sovereignty
of the Western German Republic.
It is under those agreements that
United
States
and
Germany
have exchanged or re-established
diplomatic missions.
tual
England already is pulling back
from its commitments to help de¬
banks
New
the
this
deal,
leaving
France, Germany herself, and the
Western
of
rest
formally
through
Europe
clinch
the
ratification
yet
to
agreements
their
by
re¬
spective Parliaments.
France
has
yet
ratify
to
this
Consideration
election.
tentatively
to
come
is
slated
in
up
the
French Parliament the latter part
of November. France and Ger¬
the
of
f i
elect
American
the
peop
1
a
000
conservatives
and skeptics
recorded
of the
'What's
to
should
the crisis might
presented to the United
Futhermore,
be
even
States before the new Administra¬
tion
be
can
inaugurated.
Invent
FNMA
is
the
for
which is
going
money
of interest
insists
ment
the
govern¬
sticking to for
upon
subsidized
its
to
building operations under the
low rates
housing
and
foreign observers,
say
the possibilities range from an al¬
most forced re-affirmation by
States
of
the
the
Truman-
Acheson foreign policy to a break
down
of
the
collective
security
jbound up in NATO and the Euro¬
pean Defense Community.
France will fail
of
re-armament
form
unless
sweetens
to agree to
Germany in
the
United
the
any
States
the
kitty very hand¬
somely. This sweetening would
take
the
hunk
of
direct
or
form
of
a
economic
in
the
new
aid
to
big
fat
France,
indirect form of
heavy orders for Franch military
equipment. It would probably also
Involve
additional
commitments
by the United States to give mili¬
tary help to France in one form or
another.
mortgage
FNMA,
Actually,
United
Its
-•
.
sulted
programs.
France also to reach an
agreed settlement with Germany
on the question of the Saar, a set¬
tlement which would make it pos¬
sible for Germany to ratify the
decrease
000,000 during the
Government's
in
its
"re¬
of
month
$45,-
in
uncommitted
secondary
market
the
funds
opera¬
tions."
words, the U. S. Treas¬
poorer by $45 million.
ury was
in
if
the
new
President
After
Construction
conferring
Outlook
with
the
all
elements that go to make up the
construction
business, the Con¬
struction
and
Department
Commerce
has
Civic
of
of
the
the
forth
come
with
tional
detailed
a
was
assumed that the
ments of
upon
are-
it
building
Despite
the
on
year
proceed
as
on
loans
and
lessening of down
new
a
year's
formation
government-guaranteed and in¬
lending is slipping
ingly
unattractive
at
4V4%
4%
on
rate
rigidly
the former
and
the latter, in the opinion
of the Chamber of Commerce.
on
"At
time
present
there
either that
prospect
no
any,
the
the
is
gov¬
ernment agencies will recede from
busi¬
ness," said this study.
stubborn
tlieir
est rates
Credit. Suspension and probable
of Regulation
X is ex¬
that
or
the
inter¬
on
Federal
Board will permit
serve
demise
position
Re¬
a resump¬
pected, the Chamber of Commerce
tion of the easy money policy that
indicated, to give quite
will
not
run
new
at
new
a
family
rate
housing starts
likely to fall
family units."
below
to
loans
to
construction,
finance
stimulus
hitherto
tied
to
stated.
was
commercial
stances,
a
it
"Under
these
loan
of
50%
of
the
value.
attractive
to
life
provide
In
in¬
of
15%.
companies,
which
find
yields attractive and their
number of other
Such
pending
decline
in
loans for industrial
The
a
new
1952
houses
and
VA,
proportions,
the
estimated,
be, respectively,
about
and
11
1953
or
for
expansion; the
in
the
first
their
received from de¬
dividends
12%.
In
agencies' shares of the
new
financing will be about the
in
as
1952,
it
was
25%
these
home
same
predicted.
(This column is intended
to re¬
from
credited
to
accounts.
"The
record
experienced
ings
banks
proved
It
threat
is
sav¬
1952
have
to
on
our
significant
times
such
thousands
many
deposits
mutual
effective brake
an
unsettled
in
the
during
inflationary
omy.
gains
by
that
in
these
as
of
the
econ¬
so
people
are
again turning to these time-tested
thrift institutions to
protect their
savings," Mr. Catharine said.
Over the first nine
savings
banks
holdings
of
of
and
their
loans
mortgage
$1,043,000,000
and
months, the
increased
by
corporate
municipal securities by $5L0.-
000,000, while reducing their U. S.
Government, bond
$141,000,000.
On
portfolio
Sept.
holdings had
gage
789,000,000,
holdings of U.
ments
stood
of
at
S.
by
mort¬
reached
43.3%
or
while
38.9%
30,
$10,-
assets,
govern¬
$9,687,000,000,
or
of assets.
flect the "behind the scene" inter¬
Chamber.
With
on
The
will
im¬
demand
loans
Chamber of Commerce
loans
1953 for
reason:
special stimulus
1950, FHA accounted for 36%
their
servicing economical.
that
programs
to the 1953 market."
"Commercial building loans are
ordinarily
government-aided
any
circum¬
unlikely
appears
the
will
maximum
of
in
year,
distinguished
as
-
the
on
complete
removal
of
conventional mortgage
pretation from the nation's Capital
and may or may not coincide with
the
"Chronicle's"
own
views.)
For
Large
Appreciation
WE
Potential
SUGGEST
RIVERSIDE CEMENT CO.
$11
billion,
CLASS 8
FOREIGN
SECURITIES
leading
in
fast-growing Southern Cali¬
1952, at
probably
producer
Analysis of
H.ARL MARKS & HO. INC.
FOREIGN SECURITIES SPECIALISTS
50 BROAD STREET... NEW YORK 4, N. Y.
TEL. HANOVER 2-0050... TELETYPE: NY 1-971
of
cement
fornia.
a
1953
seems
STOCK
A
of
900,000
(common)
FIRM TRADING MARKETS
this Company
review of
try
the Cement
available
on
ar.d
Indus¬
request.
Available around
16
LERNER & CO.
Investment
10 Post Office
Public construction for
to
one-half
made the fixed rates tolerable," it
a
adding the require¬
large defense, program
active civilian demand.
the Chamber observed. "The
close
this
of
Despite the fact that
total of
Three-fourths
gain
money
interest
con¬
minor, if
next
2%.
to
positors
frozen
less
of
area
a
nine months of 1951, is the result
in volume because of the increas¬
that
with
ac¬
than
of
sured mortgage
a
the materials front
sumed that this whole
influence
down
savings
higher
VA
than has been possible since 1949;
and it can probably be safely as¬
trol will exercise
of
payments for FHA's, the business
volume,
certain
appears
hampering
removal
12%
deposit
of
"For
will
off
the
amounts de¬
year
regular
while withdrawals have
ago,
contrast
the
this
in
counts
year
a
an
"give¬
date
in
1951.
posited
country's general economic activi¬
ty will follow the pattern now es¬
course
may find
that he is faced with the alterna¬
Materials.
whole,
To
of
payment requirements on smaller
indicated.
was
September,
Will Hit FHA And VA Loans
building, this field will help
sustain total construction
it
$84,000,000
rise
a
fallen
private, com¬
mercial, recreational, and institu¬
controls
Volume. It
may
guested.
construction,
controls next year of
look of 1953.
of the Truman-Acheson
modify it somewhat, he
housing
decline
probable retention of interest rate
Development
restrictions on government insured
Chamber of
United States or guaranteed loans," observed the
appraisal of the construction out¬
should feel skeptical of the
away" foreign policy, and want to
public
some
should be attractive in
Appraise
only 600,000 to 800.000 in 1953
two-package deal, also will prob¬
compared with an average of IA
ably carry an additional price tag million
from 1948 through 1950,
which, however devious, will re¬ "the indications are that the
drop
sult in an outpouring from the
in new housing will be much less
U. S. Treasury.
than the drop in new households,"
Hence
There will be
merce.
surance
In other
tablished
To get
September
net
a
said
operations,
during
in
revive the use of
second mortgage lending and
speed up the hitherto lagging sales
of high-priced homes it was sug-
With the probable release from
purposes
keep the supply of
lending, this
however.
agency
other
and
at
approximately
the same level of 1953,
in the
opinion of the Chamber of Com¬
Definition
New
remain
This compares
with
keep the game
going.
this
showed
banks
during September.
ficult to persuade Congress to pay
the French
month
every
savings
deposit increase of $185,000,000
a
bellyache, Buster'!"
your
dif¬
in
the
year
'May I help you, sir,' and NOT
Snitzel, it's
foreign policy, Stevenson if Presi¬
dent might find it extremely
period of 1951.
Continuing the substantial gains
the
Unless the electors sweep out
Catharine
than the $581,000,reported
for
the
more
increase
same
embarrassing.
most
prove
make
will
France
which
might
M.
Robert
119
was
cent
per
foreign policy, the
30.
deposit
gain
is Gov. Stevenson,
European Defense Community.
When FNMA buys a mortgage,
In theory the U. S. political de¬ it
spends direct Treasury money.
bate upon foreign policy has been When it sells a
mortgage, the pro¬
carried on as though the power of ceeds
become
a
receipt of the
decision might lie in the hands of
Treasury.
Congress.
Sept.
The
as
two-part
Administration
of
high of
new
to the present
committed,
States Senate quickly approved at
the behest of the Truman Admini¬
S.
n e
1952, to reach
President who generally is
a
defense
U.
the
i
n
*
months
e
engaged in buying mortgages for
the
t
r s
on
Should
deal in Europe, which the United
stration, provided for the re-arm¬
ing of Germany. That is to say, it
set up the scheme for German
troops to be incorporated into the
the
rose
will become academic.
upon
part
of
during
between the two.
Another
savings
$22,170,000,000
probably cannot
Of Spending
to ratify these
It remained for the Federal Na¬
agreements
for sure
until
the
tional Mortgage Association to in¬
question of the disposition of the
vent a new way to explain an ex¬
Saar has been settled satisfactorily
penditure.
counted
mu¬
$1,270,000,000
If France and Ger¬
however,
many,
be
in
529
foreign policy debate in the U. S.
off
agreement, and is purposefully
holding off until after the U. S.
York,
nation
many
call
In effect Great Britain also has
approved
Savings
of
deposits
fend Europe.
Mutual
of
City
mark, and all the lesser countries
will
recognize the situation as
such and just not bother to ratify
a
There
the
Bank
the
will not go along, the entire
peace NATO
concept, already almost
treaty between the United States moribund, will be so demonstrably
and free Europe, on the one hand,
dead that even an eighth grader
and Germany on the other.will understand this is so, and the
which in effect constituted
period.
President, Dollar Sav¬
ings
dead
a
of
Banks and
along, the whole thing will
duck and Italy, Den¬
go
be
months'
nine
Association
fail
For if France and Germany
to
loans in¬
billion dollars in
a
According to Robert M. Catha¬
rine, President of the National
the deal.
Europe.
Earlier
U. S.
more
over
commitments,
spending and more
that
of office
oath
initiative
tive of recommending
Top $22 Billion
of mortgage
creased
the
Deposits
Deposit gain in first three-quar¬
ters of 1952 was $1,270 million,
or
119% greater than that of
same
period of 1951. Banks'
And You
Capital
Thursday, October 30, 1952
.
Now
Washington...
from the Nation'*
.
Mutual Balk
BUSINESS BUZZ
Behind-the-Scene Interpretations
.
Securities
Square, Boston 9, Mass.
Telephone
HUbbard 2-1990
Teletype
•
-
BS 69
@FedFRASER