Full text of Commercial and Financial Chronicle : October 7, 1954, Vol. 180, No. 5366

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OF

ESTABLISHED 1S39

Reg. U. 8. Pat. Of floe

New York 7,

Number 5366

Volume 180

EDITORIAL

We See It

Inevitable postwar

And

and postboom pressures

a

Assistant to the

After reviewing the

endowed this subject of monopoly with a
and; abiding political: interest. With the
number " of spectacular mergers either already
effected ^r reputedly* on the way, it'could be
taken for granted that once more the old fa¬
miliar trust busting cry would resound through
the political world.
It is hardly surprising,
therefore, that word comes from Washington that
the Administration is taking an active if not

I shall endeavor first to

guards which

shall

I

be used in

may

<

an

enumerate

the

tax
I

will take

a

only hope that the powers that be
new look at many of these old, old

outset that there is a note of

at the very

unreality in talk about lack of competition in
motor or the steel industry at the present
time or even in the event of the consummation

the

of mergers now

planned. And since so many of

giants are now spreading their operations
throughout the economy, more often than not
in direct competition with one another, very
much the same is to be said about most of the
these

than I.

hopes of making,
in history,
the
transition from war to peace without

of

some

the

visibility,

obstacles
should
say a few words about the
improvements we have; been wit¬
nessing abroad, and the very sub¬
stantial accomplishments private in¬
vestment is making despite the dif¬

like

as

now

But, however that may be, there are cer¬

which must be carefully
considered when this subject of what the econo¬
mist is fond of calling oligopoly is being studied
or reviewed.
Most of these factors are of relatain factors present now

Continued

on

34

page

the

which

still

exist

been

said

before

in

some

areas.

has

As

this

at

George M. Humphrey

conference, confidence has been in¬

nine.years past and with.
<
S year behind us,
'•

Don Paarlberg

Korea rhore than

other industries.

discussing

to

ficulties

the economic
always, is low.
and

But it is also true that with World

War II

the cap¬

which confront the investor, I

softness in certain sectors

economy,

two sides to

*

Before

time

major deflation. It is true that the
peace is an uneasy one and that the
transition is not yet fully accom¬
plished. The past 12 months have
seen

are

ital-importing countries much better

nation has
first

country.

the picture as it appears to

prospect.
the

of the problems

in a relatively young
This does not mean I am

question, but merely that I am
sure my colleagues from such coun¬
tries as India and Brazil can present

Finally, I shall describe
adjustments which are pres¬
ently taking place within agricul¬
ture, as well as* those which are in
The

some

this

the

for

asked to discuss

that there

unaware

consideration.

the private investor

face

capital-exporting

an

tory levels.
can

been

have

which

safe¬

effort to maintain

profit opportunity.; Stresses need for stimulating

while

interpret the present general

Then

situation.

:;

overall level of economic activity at reasonably satisfac¬

questions of size and the like and relate them
to the situation which now exists.
It must be
said

Noting improved international financial conditions resalt*
ing in major shift in our balance of payments, Treasury
Secretary calls attention to the fact there is nevertheless
a scarcity of. overseas investment capital and pressingdemand for development funds. Explains private invest*
ment is not made for philanthropic reasons, and requires
assured security, right of ready repatriation, and worth¬

war

economic

always friendly interest in what is going on.
We

general economic situation, which

to peace without major deflation," U. S. Agri¬
Department official lists "the kit of tools" avail¬
able for continuous economic stabilization. Says an effecfive use of these tools should give no fear of deflation
snch as occurred in the 1930's. Reveals proposed adjustments in agriculture concerning: (1) structure of prices
and costs; (2) production potential; and (3) particular
commodity problems. Calls for non-cyclical planning.

ago

Treasury

Secretary of the

culture

deep

HUMPHREY*

By HON. GEORGE M.

Secretary of Agriculture

"for the first time in history, witnessed the transition
from

Copy

a

Foreign Investment

Agriculture

By DON PAARLBERG*

"merger movement" which
from all appearances is beginning to worry the
politicians considerably. The "trusts" of the late
19th century, and the indignation aroused when
: some
of* their tactics were' later revealed, long

giving rise to

are

Cents

The Outlook ior Private

Ontlook lot Business

As

.

Price 40

N. Y., Thursday, October 7, 1954

',>*

li¬

V

have

increased.

There

quantitative restrictions
the

which is

levels, and the, percentage of the population
employed is still above its peacetime norm.

Currencies have grown stronger as reserves

creasing.
'

the general price level is still on a fairly high plateau.
Investment is still high, construction activity is at record

world's

currencies

has been

progress

in removing

trade. Payments in many of

on

becoming freer

are

Continued

Sharp deflation followed the Revolution, the War of

Continued

on

page

22

govern-

as
on

page

20

•Transcript of remarks by Secretary Humphrey at informal panel
at the Ninth Annual Meeting of the Board of Governors
the
International
Bank
fo«Reconstruction and Development,

discussion
of

Mr. Paarlberg at the Sixth Annual Bankers Agri¬
cultural Credit Conference, Gainesville, Florida, Sept. 30, 1954.
•Address

by

Washington, D. C., Sept. 28, 1954.

OVER-THE-COUNTER STOCKS ISSUE ON OCT. 21—The "Chronicle" of Oct. 21 will
contain a tabulation of stocks available only in the Over-The-Counter Market
which have paid consecutive cash dividends from 5 to 170 years.

State and
i

Established

U. S. Government,
State and

ALL

Municipal

telephone:

ON

CALL

ONE

Complete Brokerage Service

£

U. S. Government

HAnover 2-3700

—

*

Members

All Corporate &

Chemical

jf.

New

Foreign Bonds

New

*

MABON & CO.

*

THE NATIONAL CITY BANK

Members N. Y. and Amer. Stock Exchs.

115 Broadway,
Bell

System

N. Y. 6

RE 2-2820

Teletype NY 1-2152

122 Years of Service

STREET

to

NEW YORK 4,
Chicago

OF NEW YORK
Bond Dept.

Miami

Raw

—

Refined

—

•

Detroit •

Beach

Stock Exchange

50 BROADWAY, N.
BRIDGEPORT

Y.

PERTH AMBOY

Geneva,

•

•

Executed On

Orders

Canadian Exchanges At

CANADIAN

Pittsburgh

Coral

Gables

Beverly Hills, Cal.

NEW

115 BROADWAY
NEW

YORK

OP THE CITY

OF NEW YORK

Holland

CANADIAN

Public Service Co.
of New

Hampshire

COMMON
All

Regular Rates

*

Analysis

upon

request

DEPARTMENT

MONTREAL AND TORONTO

Goodbody &
MEMBERS

BANK

NATIONAL

Switzerland

Amsterdam,

BONDS & STOCKS

Teletype NY 1-2270
DIRECT WIRES TO

THE CHASE

Bldg.

N. Y.

CANADIAN

Members N. Y. Stock Exchange

Exports—Imports—Futures




Bond Department

Exchange

Maintained

and Brokers

SECURITIES

American

DIgby 4-1727

Markets

Dealers, Banks

Our Customers

T.L.Watson&Co.
Liquid

Teletype: NY 1-708

Active

To

Commission

sugar

Cotton

j

Net

NEW YORK 5, N. Y.

Inc.
Trade

of

N. Y. Cotton Exchange

Hollywood, Fla.

WALL

•

Exchange

Exchange,

Orleans

.

^

w

99

'

and other exchanges

Preferred and Common Stocks

department

LAMB0RN & CO., Inc.

Exchange
Exchange

Cotton

Board

Chicago

Sixty Years of Brokerage Service
bond

York

Commodity

bank & trust
,

Bonds

..

Stock
Stock

v

^

^

company

York

American

Municipal,

State and Revenue Bonds

^

Municipal

H. Hentz & Co.

MARKETS

New

Securities

i

*

1856

YORK

STOCK

Co.

EXCHANGE

1 NORTH LA SALLE ST.
.

'

CHICAGO

Doxdhox Securities
Grporatkki
40 Exchange Place,

New York 8, N.Y*

IRA HAUPT & CO.
Members New York Stock Exchange
and other Principal Exchanges

111

Broadway, N. Y. 6

WOrth 4-6000

Teletype NY 1-702-3

WHUehaH 4-8181

Boston

Teletype NY 1-2708

Telephone:

Enterprise 1888

>

V

2

The Commercial and Financial Chronicle .A Thursday, October
7, 1954

(1386)

The
position and trade in

We

Security I Like Best

A continuous forum in which, each week,
in the investment and

Bank

they to he regarded,

are

Stock and

reasons

Rights

GEORGE

as an

There

City
Members, New York Stock Exchange

on request

Chance

Vought Aircraft

While

shares

vehicles

rarely

New York Hanseatic

BOSTON

the

Exchange

5

Teletype NY 1 -40

OFFICE:

State

84

Street

PHILADELPHIA OFFICE:

Direct Private

Hartford, Houston, Philadelphia,
Providence,

Portland, Me.

serve

be

division

a

1953

and

months

of

million,
share.
of

data
and

a n c e s

strong
air

to

the

spend

only the opportunity for

on(j

sales

quarter,

Members
New

York

American

Stock

Exchange

BROADWAY, NEW YORK 5

120

TEL.

REctor

the

2-7815

Trading Interest In

aircraft

the

of

followers

To

stocks,

Chance

of

name

and

better

than

win

first

top

because

even

fourth

and

the

quarter

half

then

division

a

United

of

tion

of the

Dan River Mills

Life

shares

a

Then

wholly-owned subon July 1, 1954, its

distributed to

were

holders

one

LD 39

Lynchburg, Va.

TWX

American

LY 77

Mercury

selling under $7.00
per
share)

(Currently

Bought—Sold—Quoted
Special Report Available

Peter P. McDermott & Co.
Members New York Stock Exchange
-

American

Stock

Exchange

44 Wall Street, New York 5, N. Y.
Tel. DI 4-7140

Tele.—NY 1-1817

Aircraft.

It

United

—

accumulated

States

airmen

the

the

world."

the

At

end

of

June, 1954, its backlog of orders
was nearly $300,000,000.
Its plant
in Dallas, Texas, (the Naval Industrial Reserve Aircraft plant)
leased from the U. S. Government,

is unusually well situated, ,and so
is its engineering department in
It

employs
One out of

some
every

13,500
eight

employees is a college trained,
"direct" engineer, with the total
number
employed in the engineering departments of 2,400, or
nearly 18% of the payroll. Chance
Vought was reborn, also, in sturdy

condition; it had cash of
$10.5 million, current liabilities of
$15.6 million, and current assets
qf $29.1 million on March
31,
Capitalization consists of 1,079,619

New

York

Stock

u

funded

ing




The

debt

preferred

claration

payment

on

of

company

and

40

26

cents

of
has

Dividends

with

Aug.

...

outstand-

no

stock.

inaugurated

i

stock,

common

value.

no

Tele. NY 1-3222

,

share? of
par

were

Phone: HA 2-9766

a

$1

Exchange

25 Broad St., New York 4, N. Y.

for

the

attack

650

*

\

Securities

Co., Ltd.

'

Established
Home
•

111

Office

Brokers

1897

Tokyo—70

Branches

Investment

&

"

Bankers

Broadway, N.Y.6 COrtlandt 7-5680

Specialists in

prosperous

career.

•.

,

.

,

-

?•

-

LOW-PRICED

,

URANIUM STOCKS
Inquiries Invited

WELLINGTON HUNTER

still

unseasoned, compares favor¬
ably with aircraft shares in gen¬
eral.

^The

large

and

held

for

capitalization
much

of

is

the

long-term

ASSOCIATES
15

not

stock

is

Exchange PI., Jersey City 2, N. J.

HEnderson

investment.

5-6005

Teletype J Cy 698

•

Direct N. Y. Phones:

WOrth 2-4578-9

The

chances for substantial
price
appreciation are excellent, and a

quite satisfactory return is offered.

being

HENRY J.

m.p.h.

LOW

Manager, Research Department, Bruns, TVordenian & Co., N. Y.
City
Members, New York Stock Exchange/

"Cutlass,"
should

write

or

*

»Yamaichi

apprecia¬
up-to-the-

be

company

operates

try-wide design competition for
high performance day fighter

teen

a

security

all

We

are

pleased to

the removal of

announce

offices

our

to the third floor

of

the

last
a

de-

of

a

share,

regulations.

Behind

is

with

LQcust 8-1500

com¬

a

daily
capacity
of
207,000 bar¬

Newburger

rels. Among

&

its well known
»

brands
;

"O 1 d

are

Members:

Dad," "Old
Taylor"
and
"Old

Crow,"

bottled

bond
Henry J. Low

-

•
•

GrandNEW
i

New

York

American

Company

Stock

Exchange

Stock

Exchange

Philadelphia-Baltimore
Exchange

YORK

CITY

Stock

LEBANON

ATLANTIC CITY

VINELAND

in-

UNDERWRITERS

Ken¬

DISTRIBUTORS

tucky Bour¬
bon

whiskies;
"Old Overholt," and "Mount Ver¬
non," bottled-in-bond rye whis¬
kies; "Bellows" whiskies and "Gil-

BROKERS

bey's" gins.
Price reductions of National Dis¬

tillers'

leading

Grand-Dad,"

brands,

"Old Taylor,"

"Old

1953 aided in

improving the

Over-tlie-Counter

"Old

Overholt" and "Mount Vernon" in
com¬

why -'did pany's inventory and marketing
United Aircraft give it up? The position. In September 1953 an
" Old
Crow"
straight
answer; is simple and was given 86-proof
by none other than H M
Kentucky Bourbon whiskey to re¬
President of United Airfcraft. He tail at approximately $5 per fifth
said in effect that, as a division New York State prices was intro¬
duced
as
a
companion to the
of the parent
company, Chance
higher priced 100-proof bottledVought was -overshadowed; if in-bond "Old Crow." Sales of the
so

PHILADELPHIA

thir¬

whiskey

bined

it.

the heavy emphasis the
company has placed on research
and experimentation ever sinceits inception,
Previously, reference was made;
to the fact that one out of every
eight employees is a. direct enginCer, the equipment supplied is
among the best in the industry,
complete with "mechanical brain,"
and with a million dollar wind
tunnel under construction. This
teaming of good men with the
b.est in equipment,has "paid off"
liberally jn the past, and will undoubtedly do so even more in the
future.
C>ne question, however, arises
frequently. It-is this:-If Chance

1401 Walnut Street

d i s'tilleries

is

Vought

cm

Members

Call

combination which

a

desired by the Navy, details of
which have not yet been released.
Other development projects, both
in jet aircraft and guided missiles,*
best-equipped cannot be described because of

1954.

Qppmkeinwc &. r6ai

a

going into production shortly. The

.

into

come

financial

Dollar Bonds

of

management, and ef¬
plant and research facili¬

gained since 1917
when
Chance
M.
Vought and
Birdseye B. Lewis .formed the
original company "to make United

persons.

German

has the

"know-how,"

Boston.

VALIDATED

designed

of

with knowledge'
Japanese potential.

investors

com¬

scientific and engineering

This is

in* quantity;

than

more

type

now

investors with vision-*-

to

/;

■;

have unusual appeal

may

-

in

*

class.

A

is

delivered

it is in the

the

•

companies have

that remarkable school

Insurance Company

SECURITIES

also makes for the Navy National Distillers Products Corporation
public hands with so auspicious the "Regulus" guided missile, in
NATIONAL DISTILLERS
a start as Chance Vought.
It has various types, one of them being
PRODUCTS CORPORATION,
exceptionally capable manage- equiped with landing gear to perthird largest domestic
liquor pro¬
ment.
Most of the operating of- mit recovery. In development, the
ducer and
distributor, owns and
ficers received their training in company last year won an indusFew

I

<

fighter

and

stock-

share for every three

shares held.

Navy

built

in

Aircraft

of United

ratio of

STRADER JAYLOR & CO., Inc.

JAPANESE

Navy'

spells out industrial strenght and

Chance

jet

as

S'diary.

Insurance Co. of Va.

ties.

some

business

Commonwealth Natural Gas

fact

a

Aircraft when, in

offices

awarded

and

ficient

products are now jet propelled.
Production of the "Corsair" type
of propeller-driven'aircraft ended
in 1953.
The "Cutlass," a twin

parent,

branch

our

competent

that

recognized by
1953^ it
was
decided that, as of Jan. 1,
1954, Chance Vought would begin

Naturally,

Corporation.

to

of

prospective, to assure
large earning power in relation to
current prices of the
stock, highly

re-

somewhat submerged in the

was

United

Camp Manufacturing

hand

Vought products despite their highly technical
nature, it may be said that all its

it

Direct wires

information to retain its position.
Moreover, it has the contracts, in

reports

had

NY 1-1557

;

S.

Aircraft

Bassett Furniture Industries

minute

performance.

company

•

neces¬

almost synonymous difficulty in the early part of the
Selling in the low 30s, the stockNavy fighter^ and year in obtaining engines for the
which is listed on the New York
training planes. The reason it has fuselages it had manufactured, but
Stock Exchange, is some six
not hitherto impressed itself
as was compelled to store. The enpoints
below the high reached
a
few
strongly as have other companies gines are now coming through
weeks
ago.
The
in the minds of investors is that freely, resulting in stimulated deprice-earnings
ratio is low, and
from 1929 to the end of 1953, the liveries.
making due al¬
lowance for the fact that stock is
company
was first
a subsidiary
p0r those who want a descripU.

with

and

American Furniture

company, with keenest
tion of the need for

There is

chance

been

-

Birmingham, Ala.
Mobile, Ala.

^To Summarize: Chance Vought
a firmly
entrenched, thoroughly
experienced, strongly financed

$42.3

were

had

Exchange

Exchange

is

is

Vought

Exchange

Stock

third

a

to

rose

earnings
ported at $1.78 a share.

million,

that

Stock
Stock

HAnover 2-0700

pany.

o.

ahead.

ffipONNELL & ft).

it

The
company
has made two
quarterly reports this year, both
of them quite
power will be
pleasant reading.
considerably augmented raththe first quarter, earnings of
than dininished in future years. $L2o a share were reported from
And that is why Chance Vought sales of $35.3 million. In the secotfers not

sanction

of

close ties between it and the

to prepare pro forma
satisfy the statisticians'
competitors' curiosity.

profits from rising prices, but a
strong probability of substantial
income for an indefinite period

Since 1917

a

cost

^

full

authorities,
the large

York

American

New Orleans, La. -

Vought. The latter fac¬
tor is of major importance bscause
it clearly indicates the confidence
existing with in the Navy and the

to

^

New

19 Rector St., New York 6, N. Y.

to Chance

sense

money

because

contracts

George E. Bartie.t

that naval

Rights X Scrip

sary

Chance

neither

the

the U. S. Navy

United Aircraft felt it

nor

had

parent

six,

$2.98

Steiner, Rouse & Co.

over, Chance Vought was also a
subcontractor,
serving
tne
air¬
craft industry; if independent its
competitive position would be
greatly improved/
Finally, the separation of
Chance Vought. from its ers.while

$77.6

were

commendable

a

economy,

would

first

the

sales

Low, Manager of
Dept., Bruns, NordeCo., New York City.

Members

flourishing

earnings

and

foundation,
as
it is,
h

a

in

that

1954,

With

Vought

an

but

c

of

Bought—Sold—Quoted

J."

Members

practical

really

no

/

Louisiana Securities

Partner, Thomson &
New
York
City.

(Page 2)

end, because it is one thing to be
one one's own and quite another

desirable

are

Specialists in

would

&

man

the current year are
Of course, comparisons

to

sketchy.

unsound

the

Research

Because it has been since 1935,

in

perch, the
preceding

might have

Wires to

Chicago, Cleveland, Dallas,

Boston,

of

secure

a

on

—Henry

a

Suffice it is to say that,
from such figures as are avail¬
able, sales increased from $49.1
million in 1951 to $129.5 million

to alight

peace

E. Bartlett,

Aircraft—George

National Distillers Products Corp.

that

chance

good

a

Vought

McKinnon,
(Page 2)

nor

company.

Were

-

dove

be,

a division of United Aircraft, tne
vital
statistics
of
the
company

to

r-

statement

Building

Liberty

Lincoln

A i

aspects.

120 Broadway, New York
WOrth 4-2300

regarded as
gains, and
investments, Chance
capital

these

both

Member

Stock

American

geB^fmy

craft combines

1920

Established

as

is

prior
manufacturing

ft

rc ra

for

Vought

Corporation
Associate

i

a

are

to

year-end extra will be paid.

New York

>

particular security.

a

intended

not

are

Alabama &

Selections

I
Chance

offer to sell the securities discussed.)

BARTLETT

E.

Partner, Thomson & McKinnon,
Prospectus

for favoring

(The articles contained in this forum

Week's

Participants and

Their

of experts

group

advisory field from all sections of the country

participate and give their

National City

different

a

Tu:s
Forum

good,

Quotation Services
for 40 Years

.

Hosrner

freed,

its

decisions, policies

results would

be

its

own.

and

More-

new

popularly

priced

Continued

on

straight

page

24

National Quotation Bureau
~

Incorporated

Established 1913

46 Front Street
CHICAGO

NewYork4,N.Y.
SAN

FRANCISOO

Number 5366
'

Volume 180

The Commercial and Financial Chronicle

...

/

Federal Reserve Policy Since

Articles and News
System

Member, Board of Governors, Federal Reserve

Federal Reserve Board

;

y

Open Market Committee; (3) reduction in discount rate; and
(4) expansion in the money supply.. Points out difficulties in

t'

appraising recent credit and monetary actions,

George M. Humphrey
for Business and

Reserve- Policy

-

—Fred

The record ymaking performance
the economic area in which

yout

have

y-

:

»

and growth. Accordingly, Federal...
has Reserve policy was di re c t e d

interest,

particular

a

and * building,

real Ve state

*done much to-toward exercising • restraint * upon
changethe inflationary developments as well

•

„

the

of

the supply of credit'
economy from
andrmcrrtey; adjusted to the neqds
decline to
of a growing economy/ In pracover
all sta~ tice, tnis meant permitting some
Course

as1

the

Lazarus, Jr

months

so.

or

Without

>

in

minimizing the

any way

earlier

,

de-

S.

is

good

has

shown

in

adjust to and

future

economic

the

to

of

far

so

savings

as

In

provided

tain

the

had

the Federal

to

it

from

to
Re-

to

a

cyclical

economy

re¬

like

—Ralph H_ Demmler

today I should-like to

this method of temporary acquisition of additional reserves consequently was lessened. So was
their extension of credit,

re-

view with you, if -you don't mind,
recent* Federal

Reserve

policy in

the monetary and credit area and

attempt

tentative evaluation of

a

effectiveness, as
dispassionately and as objectively
I

as

know how.

I

hope

I'll

not

has

none

hold

say

Please

The

rise "of

this

oratorical

the least.

pressure

Federal

facility

Economic Future of Florida's West

of

1952

outlays

were

made

These

markets.

on

{

.—Emerson

P.

Schmidt

Importance of Making

gages

am sure, some




■

■ •

•

,

Gearhart & Otis,

Mirage by Guaranty Trust

"Survey"

Inc.

Trinity Place, New York 8

20

__

<S>

Bayard F. Pope Foresees No Major Change in U. S.
Economic Situation

John

F.

24
Unlisted

Reilly, Manager

Trading

National City Bank "Letter" Says We Have Stability

Without

®

Stagnation

Strange Reasoning

24

(Boxed)

'

Dept.

:

Telephone

Teletype

WHitehall 3-2900

43

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Regular Features
MEXICAN
As We

See It

(Editorial)

Bank

Insurance

and

Business Man's

Cover

1

1

:

;

7

Stocks

v

Bookshelf

y_

33

AIR EXPRESS

INTERNATIONAL

44

____

JL.

GULF

SULPHUR
'

•

xsx

Coming Events in the Investment Field

PAN AMERICAN

8

r

SULPHUR
Dealer-Broker

Investment

Recommendations___

8

-

GIVEN
Einzig—"Sterling Convertibility
From

Definitely

Deferred"

17

Washington Ahead of the News—Carlisle Bargeron.

Indications

of

Current

Business

MANUFACTURING

11

Activity.

Funds

Mutual

GUILD

35
We

viaintain .trading

than

Observations—A.

Wilfred

markets

over-the-counter

250

in

mcr?

securities

May.i.

Singer, Bean
& MACKIE, Inc.

5
20

Our

43

HA 2-0270

Report

40

Exchange PL, N. "7

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Public

Utility

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'

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:_

12

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•

i*
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12

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in

Now

Prospective

Registration.

37

Security Offerings.-.

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INC.*

41

GULF SULPHUR CORP.
Securities

Salesman's

Corner

1

KETAY INSTRUMENT*

Market

The

Security I Like Best

.

.

.

and

8

___

You—By Wallace Streetel

16

.

t

LITHIUM CORP.

%

of outstanding mort-

large

.

the

discounts,

,

Of

issuance

rnntinniprl

.

nti

The State of Trade and

Industry

5

PAN

AMERICAN

,.

regulations

Washington

and

You

44

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SULPHUR CO.

nnno

conunuea on page ZO

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REEVES-ELY

Weekly

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and

Reg. U. 8. Patent Office

Drapers'

land, c/o

Gardens, London,
Edwards & Smith.

E.

C.,

LAB., INC

Eng¬

Preferred

Copyright 1954 by William B. Dana
Company

FINANCIAL CHRONICLE

PREFERRED STOCKS

&

Common

♦Prospectus available

Reentered as second-class mattpr Febru¬
25, 1942, at the post office at New
York, N. Y., under the Act of March 8, 1879.

on

request

ary

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COMPANY, Publishers

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N.

7,

Y.

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Thursday,

SEIBERT,

President
■

October 7, 1954

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a

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Will—Roger W. Babson___

a

*

The

For many years we

Higgins, Inc.
15

:

3

m

availability

,

25

Stylon Corporation

How Government Can Help Business to Help Itself

further.

recall, I

Bonds

11

itself to

.f
commitments, the increasing

develop-

Association,
•

rose

u

♦An address by Governor Szymczak bethe 41st Annual Convention of the

have

13

High Places—Donald R. Richberg

The

a

fore

,National Mortgage Bankers
Chicago, in., Sept. 27, 1954.

in

cover

incidents of that period:
breaking, under par by the
new
3y4%
long-term
Treasury
bond, and the sharp reaction that
followed in the price of seasoned
issues of corporate and municipal
securities;
the
increasing diffi-

large scale, and rising speculative
interest was being manifested in
many

to

the

and early 1953,
rising, capital

being

Serial 5%

the

0f

to

were

seeking

You will

policy is the
which it can be

inventories

Coast—Philip W. Moore__ 10

Keith Funston....

—G.

Lawlessness in

'

effectiveness

During late

seemed

under

FLORENCE,

ALABAMA

A Solution to Problems of Gifts of Stock to Children

'

cost

changing circumas
is evidenced by the
events of the past couple of years,

adapted
stances,

rates

financing requirements before the

Reserve

with

interest

impel borrowers to rush into the

Federal Reserve Policy
the;

9

—

that recently struck New England.

Evidence of Effectiveness of

of

warnings

storm

market

Part

demand

did to' diminish the force of the hurricane

than

If you can't,
against you.
It

warm

credit

diminish

to

more

me.

it
the

of

appeal, to

of credit supply seemed to do no

effort

my

WQp't. bore yoil too much.
try to stay with

Policy—Harley L. Lutz__—-

These developments on the side

influence and

its

6

CITY OF

ours,

however, the need to adjust to
changing situations is a continuing one, and our ability to make
the necessary adjustments is al-

marks

STREET, NEW YORK
Telephone: WHitehall 4-6551

6

ob-

additional

necessary

serves, the story was different,
To prevent unlimited expansion
of. bank credit, the Federal Reserve refrained from open market
purchases that would have supways
being tested.
One of the Plied the necessary reserves,
important instruments for achiev-» Member banks still had the priviing sustainable economic growth: lege of borrowing from their Reover
the years with a minimum serve Banks, of course.
But as
of fluctuation, and one which has the monthly average of their borbeen
significant
in the recent Rowings mounted in late 1952 and
short-term readjustment, is mone6aHy 1953 to a range of $1 to
tary and credit policy. I am sure-SIVz billion,
the discount rate
you are all aware of the influwaS increased from, 1%. to 2%.
ence such policy has had and will
'The traditional t e 1 u c t a n c e Of
probably continue
to
have on banks to borrow was fortified by
mortgage markets. - In
my
rethe higher rate. Their resort to
in

99 WALL

-

x

Pointers for Federal Tax

freely,

banks

borrow

or

serve

nation.

the

as

securities

sell

our

far

so

loans

expand

could

they

great hope

us

4

Changed Federal Power Policy/

a

banks with the necessary reserves,

economy

months

recent

in

moderate forces of

change should give
for

that

say

neither stopped nor thrown

into reverse. It was simply held
within a speed limit determined
by considerations of safety, ineluding the crowded condition of
the highway at the time,

present level

Szymczak

the available supply
The credit machine

credit over
of - savings.
was

clme, or suggesting that
stability at the
M.

expansion in bank credit and the
supply, but limiting the
degree of expansion in view of
the large excess of demand for

paid for

are

tinct securities

'%

Department Stores

six* money

last

enough, it is possible to
the
ability which our

ceptional prices
r

Continuing Role of the States in Securities Regulation
-

•

in

Problem for

4

keeping

-

bility

3

..

—Harold Quinton

stability

long-term

of

Szymczak

Cobleigh

Obsolete Securities Dept.

ments constituted a threat to our

objectives

1953—M. S.

marks the spot where

Cover

* r.Grounds for

of'

Since

A

Cover

'

_.

Agriculture—Don Paarlberg__

River—Ira U.

Discount House:

The

"

at Blind

Vision

AND COMPANY

Private Foreign Investment

Outlook

1

reserve

for

Federal

requirements; (2) renewed purchases by

reduction in

-

Outlook

—Hon.

member, ci ing the continuous need to

combating deflationary trends which began in 1953, L e.: (1)

-

»llCHTEIMfll?

page

i

The

adjust policies to changing situations in our cyclical economy,
reveals actions and policy decisions*of the Federal Reserve in
*

3

INDEX

1953

S. SZYMCZAK*

By M.

>

(1387)

•

Direct Wire to

PLEDGER & COMPANY, INC.
LOS ANGELES

)

I

—mwim

w

The Commercial and Financial Chronicle...
4

$19,500,000

Vision at Blind River

What

with

uranium

dime
and

^

shares

the

finance, introducing for the first
time a major issue of funded debt.

J

Blind

-

-

the

Salt

Prominent retailing executive, after reviewing general market¬
ing conditions and the economic outlook^ discusses the new

problem to retail stores arising from the operation of the
so-called discount houses, that sell branded merchandise helow

and

five

City,

Lake

-~pwsp£etOf"~Wf however, the ;Stock sagged back might care; to ioolr 9* would in¬
pr o spectus,i to a-buck; and by 1940 the mine clude RixAthabasca; IsoUranium,
converting Ihej was closed—-but not-for too long, arid Larado Uranium; All of these
giddy clackIn 1942, our scientists had fig- are, I believe, listed on the. To¬
ings of a Gei- ured Out this new technique for ronto Exchange.
ger
counter military mayhem called the atom
During the past 15 months, how¬
into a hopeful bomb and Canada became immeever, Canadian uranium
interest
sheave of cor- diately the principal supplier of
has swung importantly Southeast
porate certifi- the basic fuel, uranium. Eldorado down to the Blind River area of
cates,
one was opened up again (1942), and
Ontario, on the northwest shore

the list

Warns manufacturers that department stores
retailers, if not permitted to advertise and sell at
^
same price as discount
houses, will resort to sale of their own ^
brands or concentrate on merchandise of
producers that pJce /;'
prices. Says fair price laws are being ignored, sometimes with ':'f~
manufacturers' approval. Concludes economy is
moving hto a ~Lt

where
save

that's

Uranium

is

far

from

found

all

no-

starting it off by
the Eldorado

else

the

by our Atomic Commission.
1,
In
reality, the largest actual
production of uranium today is in
but

some

of

the experts have been predicting
that
Canada
may,
within five
years, prove
source

to be the number one

of this most awesome

and

fantastic mineral in history.
In

the

Colorado

the

Plateau,

standard

tite,

a

per

a

Athabasca, Saskatchewan. The
government did all right with its
Eldorado buy. For 1953, net per
share was $12.43, total assets (at
Dec. 31, 1953) were above $34 million, and the common, had it been
available in the market, would
surely have commanded a price
of at least $60 a share.
Quite a
swing from $1.35!
The Eldorado success threw the
speculative spotlight on Beaver
Lodge, and, with private enterprise admitted to Canadian mining
in 1946, a number of companies
began to probe and develop this
area. Largest and most sensation-

grade that it costs too much to
mine, mill and transport it, even
at the fancy prices now offered

Belgian Congo,

purchasing all

shares at $1.35

rich pitchblende
at Beaver Lodge near lisping Lake

the

over

1946),-

share. In 1946, Eldorado hit again,
this time with

case,

world; the only problem being that
the ore is usually of such poor

the

government monopoly

for all uranium mining (till

in this Colorado Plateau. Ac-

tuallv

a

was

found

Cobleigb

U.

enforced

that

uranium
Ira

the Canadian Government in 1944

almost

think

U-bearing ore is cornoyellowish rock lurking in

Lake Huron.

of
in

somewhat

a

Here

the

ore

is

forma¬

different

to
those found in South Africa. While
the
or

is not rich (running around

ore

bit below 0.20% uranium

a

ide per

ox¬

ton), large and unbroken

goods
s e r

and

vices

annually

The

and sell if

improve

$356 billion in

Labine

the

was

moving

spirit at Beaver Lodge, then give
Joseph H. Hirshhorn top billing
Blind River, with an assist by

at

Fane

R.

Joubin,

one of the most
Dominion geologists.

respected
This team

has

had an important
development of three
in this popular area.

hand in the

properties
The

first

Mines,

a

1911, but

is

Preston

gold mine

East

as

Dome

far hack

as

uranium mining outfit

a

since 1953.

Preston's

own

slice

of

Algom

Uranium

Mines.

This

equity is divided among
3,000,000 shades of Preston East

The

sum-

third

the

first

ters

is

of

with 2,400,007 shares listed

Toronto and quoted currently
$5.10. As in Preston East Dome,

in
at

1954.

reflect

loss

a

Fred Lazarus, Jr.

There

has

been

further

no

drop

since

beginning of this year, and the
has now held this level

economy

for

six

CONTINENT

months.

business taxes

and

Home

were

lowered.

building, road building and

plant

expansion have been en¬
couraged. Social security has been
The Administration

extended.

certainly to be congratulated for
its accomplishments in the eco¬
nomic field.
The courage

of business, as well
as
of
individuals,
during
this
period
has also been unusual,
judging
from
past
experience.
Business

continued

to

in capital outlays to im¬
and expand operations. In¬

money
prove

dividuals still saved,

paid off their

debts, and

prices were
continued to

attractive

as soon as

to

them,

buy.
national product
satisfactory if a static
acceptable. It is

were

not.

In

1955, it is not nearly good

of

1953.

&

SECURITIES CORPORATION

MEMBERS

New York Stock

ore have been located. Ac¬
production of ore, and sale

to the Dominion under

These

GENERAL INVESTMENT

AND BROKERAGE BUSINESS

William W.Sims,

president

are

smaller

JosephJ. Spanier,
John W. Eustice,

vice.president

James M. Fox,

vice president, new york

a

at

number

you

be

Waterway give consid¬

assurance

that the

area

will

explored extensively; and that

newly capitalized companies, cre¬

here,

ated to develop ore

may

be

expected to emerge.

'

Exploration* to




are

nadian Pacific tracks and the St.

erable

SaUeStreet, CHICAGO

units

larger

ones,

King,

vice president & treasurer

vice president & secretary

the

There

including Ura¬
might wish to
look up.
The reliable geological
structures here, the nearness to
Canada Highway No. 17, the Ca¬

nium

Lawrence

George R. Griffin,

JMl South La

the higher rate
Staying even on either

or

even

level means dropping behind.

We

will

be worse off than was the
White Rabbit in Alice in Wonder¬
land "who kept running and never

got anywhere."

J Tel. CEntral 6-8190'

date

suggests

that there are now at least 55

mil¬

lion tons of uranium ore reserves
on

location in Canada, most of

suitable

for

mass

mining;

it

and

of

the

cultural

aspects

life, better education, more
travel, wider knowledge of the

*

A

eon

talk by

Session

Conference

24,

mean

Mr. Lazarus at the Lunch¬
of

larger

a

tribution

of

output

dis¬

and

food, and therefore

better health.
A

Remarkable
The

into

a

Retailing Climate

entire economy is moving
remarkable retailing cli¬

mate. As

improvements in manu¬
facturing tools and in techniques
develop,

workers
will' produce
Therefore they can earn

more.

more, and

There
but

can

can

buy

more.

be not

only growth,

steady growth. We

ceed

with

can

confidence

pro¬

in

the

knowledge that there are now
many
stabilizing factors which
lessen the possibility of periodic
serious depressions.
Let's review these
factors. We have

ing system,

strengthening

stronger bank¬
flexibility in man¬

a

a

agement of credit and money by
the government.
Credit can be
made

expensive,
a

cheap,

reduction

to disposable

add

or

as

The recent tax revisions

needed.

show how

there

can

income which,

in turn, can offset a recession.

We have deposit
farm

insurance,

support

prices, minimum
old age benefits, unemployment insurance, increased
private pensions, increased inwages,

the

National

Industrial

Board, New York City, Sept.

1954.

interesting.

Exchange
of

*

exist¬

ing letter of intent, will have to
wait till next year, and will prob¬
ably require perhaps $5 or $6 mil¬
lion in financing.
Pronto looks

Blind River.
TO CONDUCT A

an

price

of

present
be

situation

1954,

tual

richment

invest

of

grade

the

a
growth could develop
things. It could mean en¬

many

is

enough to continue with the rate

2 million tons of rather low

in

very

By extensive diamond
drilling, it is now believed that

INVESTMENT

change

national

on

some

MID

no

Arts. It could mean greater physi¬
government was cal
comfort in new and renovated
effective in helping to stop;
the decline. Tax, fiscal, and mon¬ homes, additional labor-saving
devices, increased transportation
etary policies have been skillfully
handled. Money rates were eased facilities, better roads, more auto¬
mobiles, more airplanes. It could
and
credit
expanded.
Personal
Our

the President is W. H. Bouck, with
the board.

standard of living.

Such

the

Messrs. Joubin and Hirshhorn

Announcing the formation of

to maintain and

we are

our

level.

only 4%.

The

Ltd.,

and

of

This

would

wanted

This is the

In 1955, there should be a na¬
tional product of $393
billion, and
by 1960, it should reach $466 bil¬
lion.
After that we should still
continue to gain.
These figures

of

second quar¬

to

we

potential in¬
production of

a

•

ent rate

mention is Pronto Uranium Mines

one

is

total

our

ever-increasing objective to make

of

mining by machinery a
highly probable and profitable
operation.
Mr.

adding

are

at least 3%% per year.

in

quarter

result
in

crease

the second

mass

If

we

ductivity per man-hour has his¬
torically increased 2%% per year.

—

ing

.

magnitude, Gunnar sold this

this is because
over

our

1953,toapres-

Dome, currently quoted around
proved quite variable in ore qual- some 780 acres at Beaver Lodge,
$3.95.
ity, and somewhat unpredictable Gunnar has now proved up ore
Algom itself has been a dra¬
in depth and direction.
bodies believed to be worth around
In Canada, however, the U308 $125 million at present uranium matic performer this year, moving
from a low of $3.25 to above $8.
is found principally in a different oxide prices. The definite locasort of
ore—pitchblende—some- tion of such a large mineralized It has reported claims totaling 624
times called uraninite. This min- area has enabled Gunnai; to con- near four lakes in the Blind River
eral has been found all the way tract with Eldorado Mining and area. Its claims at Quirk Lake are
from British Columbia to outside Refining Ltd. (the official Domin- reported to include an ore ledge
Montreal, and- the whole frantic ion purchaser of uranium) for some seven miles in length. Gen¬
search through thousands of square delivery between Oct. 1, 1955 and erally the ore is believed to run
around 0.18% per ton in U308.
miles of moose pastures with scin- Oct. 1, 1960 of concentrates to a
Algom has 2,550,007 shares out¬
tillometer (and optimism) began value of $79 million,
standing (July 1, 1954), currently
back in 1930. At Great Bear Lake
To finance production of that quoted at $8.80.
the Northwest Territories, one

over.

veins have been located, mak¬

1954.

in

fairly

2% million more people to
population each year; of these,
The grcss national product—the
700,000, or 1%, are added to the
sum
of
all
labor force. On top of
this, pro¬

well

ore

eralized

By extensive drilling over

much discussed recession is

dropped from

similar

beds

Gold Mines Ltd., but got its name
bobbed to the above in March of

have

retail climate.

that the

seem

the peak rate
of $370 billion

conglomerate

called, assay very high in uranium
oxide; but a number of the minfound

new

tion, and uranium oxide appears

proper¬
ally successful of these is Gunnar
ties are interesting and promising
Mines, Ltd., which started its corporate life back in 1933 as Gunnar and, in addition, it owns a 40%

formations

*

Today it would

in

so-called "pods" or pockets. Some
of
these, "hot pockets" they're

sedimentary geologic structures in

price.

and other

►

would

^

By FRED LAZARUS, JR.*

President, Federated Department.Stores, Inc.

churning of

the

on

in

swift

^

H

'

Department Stores

before, and assuming the exercise
of, the warrants. This debenture
issue was a milestone in U-mining

Gilbert Labine, in that year, lo- Gunnar, as well as Nesbitt Labine,
cated a rich and extensive ore whpse properties adjoin it, is the
body, for Eldorado Gold Mines rather lengthened shadow of the
and almost daily Ltd. Between 1930 and 1933, El- same famous Gilbert Labine, who
Rocky Moun- dorado stock went gaga, rising pioneered in Eldorado 24 years
tairi "transi- from a paltry 20c a share to $8, a go. Gunnar sells around $9.
"tiohs from The demand for uranium flagged,
Other Beaver Lodge issues you

all

market

For

July 19, 1954 for full financial de¬
figures

production in general, and the dramatic developments at
River in particular.

•».

The Discount House—A Problem

dated

prospectus

to

tails and outstanding share

radioactive'snapshot of Canadian uranism exploration and

•

referred

are

Enterprise Economist

,.

of sinking fund
(with stock pur¬

chase warrants attached) and you

By IRA U. COBLEIGH

A

debentures

5%

wW Tl.V'S

Thursday, October 7, ,1954

(1388)

mer

WWW'

Now available!
there

are

those who

believe that

group life INSURANCE

a major provider of the base fuel
for the atomic age. In any
event,
the demand for uranium has no

currently

visible

To guarantee completion of plan in event of
your
death... with
Call

ceiling;

with
prices
virtually guaranteed by both U. S.
warranted

and

sions

and

Canadian

till

into

Atomic

become
ducers.

large and earning pro¬
And the present appeal is

to speculators with
—not to investors.

21

sporting blood

WEST 44TH STREET

NEW YORK 36, N. Y.

True, many

management may never hit pro¬
duction on their own, and either
expire or be merged. But some of
the ones we've mentioned should

physical examination required.

Members The Toronto Stock Exchange

Commis¬

small hopeful development com¬
panies with weak capital and poor

no

or write

NEWLING & CO.

attractive

1962.

<

INVESTMENT PLANS with

Canada may, in the long run, out¬
distance the Colorado Plateau as

Telephone Murray Hill 2-4545

|

Hum send me Information on Systematic Invest.

I

merit Plans with Crouo Life Insurance.

■

Volume 180

^■dividual

(1389);, v 5

Number 5366... The Commercial and Financial Chronicle

savings,

distribution

and

broader

a

:

15

income. 1' 1

bf

We have better and

infor¬

more

Vr

Production

Steel

The

mative economic statistics to guide

Carloadings

Beyond that,
awareness

find

we

the part or govern¬

on

Retail Trade

State of Trade

greater^

a

Commodity Price Index

.the steps need to avert
setback.
All

of

us

in

crease

their

are

the

middle-income

tremendous

families,

numerical

mere

was

a

with

increase

$5,000-$7,500

the

the

decade

is forecast for

group

ahead.

Many of those
$3,000-$5,GG0 group
will have moved up to the $5,000$7,500 class.

in the present

slightly in

As families rise in the economic

scale, their wants multiply. They
shift their types of purchasing.
When

family has a few extra
decision must be made

a

dollars,
to

a

where

those

dollars should

be spent. Some want better food;
some want additional
labor-saving

devices;
and

some,

clothes,

their extra

travel.

on_

pressed in
There

-

will

be

ex-:

an.

for

Government announced it will divert stockpile

A

.

those

marketers

more

about

-

who

the

will

learn

of "; this

wants

growing middle and other income
groups,
whose current earnings
are backed by tremendous savings:
At the end of last year, the-total
liquid savings of. individuals was
over $200 billion in cash, bank de¬
posits and government securities
*

alone. This did not include values
of

life

insurance

policies

or

cor¬

Consumer debt for

the

in

years

total

increased

/

unique

corporation for financing private

quarter.

compared

with

r

,t

Growing out of

a

.....

(1)

going to develop them to

the greatest possible extent?

These changed conditions under
which people will live will neces¬

\

sitate

new products as well as new
improved methods of selling.

the

In

Private subscribers in India in the

International Bank

-

are

Even

loan of $10* million after
.

Corporation Revived

International Finance

the

has lain stuck for years,

Corporation project, which

got a sizable push forward at the World
Continued

*

on

page

S^Ttnoun cem ent:

now run¬

are

will

million of FOA counterpart funds. Also, the
has been discussing with the India group the

Finance

1

talking of a possible shortage

Deliveries

for $1 million.

$10 million total of share capital, there

possibility of that Institution extending a
the corporation has been set up.

sharp upsurge

sheets later this quarter.

amount of $7 million.

private and/or governmental

be made available $15

>

Midwest, producers

of cold-rolled

interests^ the new cor¬
capital purchased by:

(2) United Kingdom subscribers,
in the amount of $2 million.

in automotive steel
buying, but at least one large auto producer has boosted his orders
for sheets.
A Pittsburgh mill reports that both hot- and coldrolled sheets look solid for the rest of the year.
And Detroit
mills boosted ingot output to 89% of rated capacity in anticipa¬
tion of more active buying as model changeovers are completed,
this trade weekly reports.
^
1
no

t

~

recent visit to India by World-Bank officials

poration will be financed by share

$900,000,000

a

enterprise

together with private investment banking

-

purchases of autos, appliances

$400,000,000,

There has still been

,

We want to emphasize these op¬

and

new

before the end of the year.

*

v

industry enters the fourth quarter with a business
pick-up firmly established as a major industry trend, and mills
expect continued improvement throughout the rest of this year,
states "The Iron Age," national metalworking weekly, this week.

portunities and find out how to
take full advantage of them. How

.

A

(3) U. S. private interests

decline in the March

ahead.

we

./•

..

abroad, the India Development and Finance Corporation; is now
in a climactic stage of formationFand likely to come into operation

The steel

economy

•

•

.

In addition to this

the

All of this adds up to a balance
sheet showing the growth possible

are

instalment

Commerce

technique under private enterorise auspices
evil of expanded subsidy credits to

Major Arrangement With India

$21,300,000,000 or $64,000,000 above the July 31 level and
$92,000,000 higher than a year ago. From April through August,

last year.

the

of

Department

May

cited last week by World Bank President Eugene R.

to

savings continue. The part
including cash, bank deposits and
government bonds grew $7 billion

for

Black.

as

August for the fifth straight month the
Federal Reserve Bank states.
Instalment credit outstanding rose

year as

.

States

Wilfred

further the

all

at

and the like increased in

This total keeps mounting each

.

not

suppliers

reported last
-week that incoming business of manufacturing firms- im August
pushed ahead of the year-earlier level for the first time in
.<12 months.
A spot check in key cities indicates the trend con¬
tinued in September.
New orders reecived in August expanded
to $23,100,000,000, nearly 2% above August, 1953.
In July, manu¬
facturers' bookings were 9% less than in the like month last year.

porate securities. These latter two
types of assets would bring the
total up well over $560 billion.

this

Seemingly
will

.

United

A.

of the funds to come from the sale of
unsecured short-term notes or debentures.

spokesman for the Atomic

The

■>

the aegis of

part

:

.

corporation

dollar

the Chase Bank to finance
export of capital goods. To compensate
for the credit shortage to satisfy the exporter
demand for loans, the new institution will
provide
intermediate
term
export
credits.
It is reported from Washington that the new
institution will get its capital partly from sale
of its stock to Chase interests, with another

supplies to private
*

revelation of plans

multi-million

new

a

the

Energy Commission stated a. ';
weekr ago that low^cost electric power from -atomic^generators
should be-a Teal ^within five to ten years. - Private industry
was urged to speed research, .and devetopmenLin this field.
^
.

-

the investment world with a

up

this week was the

under

usually precedes *-

industry during the shortage.

opportunity

for

Supplies of copper were tight last week and many users
on inventory
reserves.
Strike shutdowns in this country
and Chile have reduced supplies to a low point.
One major pro¬
ducer the past week went on a seven-day weekly production*
schedule to increase the available amounts of the metal, and the

many ways.

is

Waking

bang

drew

money on an;

Wants

countries.

consid¬

the demand for ferroalloys has grown

the

viewpoint

are

major change in the total

no

est is the fact that

automobile; others want to spend
it

been

erably in the past three weeks; such an increase
an improved market for most types of steel.
1

of them. Some will want

more

to spend

different

Although
number of claims,
many workers have exhausted their benefits, have a shorter aver¬
age work week, and have taken pay cuts.
Kentucky and West
Virginia report the largest share of their labor force out of work.
The past week's steel production was the highest in 14 weeks,
69% of capacity.
While automobile producers have not ordered
the quantities of steel expected during a period of model changes,
construction and defense uses have recently been high.
Of inter¬
has

there

market's

stock

will bring to,a head

additionally important because
of the overhanging bearish threat bound up in
potential
post-relief
deflation
in
foreign

prospects

both continued and initial

insurance benefits increased
latest weeks for which information is available.

claims for unemployment

thig

From

last year.

the number of family units in the

platitudinizing).

beyond the

(notably via the United Nations' in¬
However doubtful may be the pros¬

pects for major progress, current action at least
the matter of international capital deficiency.

that of the pre¬
substantial improvement as compared

According to the Labor Department

in

terminable

Wednesday of last week over

ceding week, indicating a

investment "problem" is rising

confines of the talking stage

total industrial production in

in

moderate rise

business.

sharp

At last the foreign

J

growth, their needs, and the op¬
portunities they have opened to
further

International Investment at the Crossroads

Business Failures

L.

in¬

the period ended on

This

Auto Production

and Industry

serious

a

of

aware

'

By A. WILFRED MAY

Index

Food Price

ment, business and individuals of

as

Observations.

Electric Output

us.

ning six to /seven weeks, opposed to four-five weeks a little while
Expanded

*

,

Supplies

Barring all-out

.has

back.

Factories Furnish

Retailing

.Increase in steel

a

;

stainless <and silicon steels'

have reasonably prompt delivery
of customer-wan ted goods

1

job in determining and filling the

steel

market

scrap

strength

further

showed

as

-

:

(]. C. FIELDS & CO.

"Thev

heavy melting steel scrap composite price rose $1.83 to *
gross ton, highest point this year.

$32 per

are.

Retailing and marketing must
i improve tremendously to do their

But merchant Wire
slackening seasonally.
~

Iron Age"

| smart enough. to anticipate what
they

The

-"

if he is

also brighter.

are

and construction items are

in our expanded factories. He can

,

Galvanized

buying is not.confined to sheets.

sheets, manufacturers' wire, oil country goods and specialities like

the retailer
-bountiful source of supply
war,

/uri Seen incor/iovcrted aS

-Major impetus behind the scrap market's new strength is of

steelmaking activity.
But other important
depleted mill inventories.- seasonal increase in

course:
-

stepped-up

factors

include

Continued

| needs of this dynamic demand.

on

page

29

There will be need for increased

?

andmarket research.

r consumer

Not-long ago, at a businessmen's
meeting, the head of a large man¬
-

ufacturing

Wm

confessed that
research budget

company

his

production

was

in millions of dollars, and the

consumer

sands.

H. HENTZ & CO.

research budget in thou¬

MEMBERS

"Consumer research in our

Continued

on

page

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43

6

The Commercial and Financial Chronicle...
Thursday, October 7, 1954

(1390)

Grounds for

Veal-need

Federal Power Policy
By HAROLD

be the

of scheming

ican

power," if continued, will force private capital to with¬
draw from the power field, prominent utility executive calls for
statutory revisions which will give equitable treatment to private
electric companies and to their customers. Lists six important
correctives in Federal legislation, which will eliminate dis-i n¬
crimination against privately operated power companies in
competition with government projects.
.5
the

subject of

talk

my

tially

may

indicate, I will deal with the cold
of

war

internal

forces
h

with

d

a

to

which

America

has

the

con¬

the
I

past

20

point

up who
really has the
biggest
stake

and

t h

pay

not

/there

is

the

in

that

tide

the

of

Federal

tends

to

owner¬

move

large

as

become

turned;

that
the people of America—the voters

never

and

Quinton

and

want

to

again

tneir

resume

If

forward progress in the American
the

best

political

system yet known to
,

If

the

some

years

hurt

if

were

the

"Who

practice

asked

would

of

be

fit?,"

who

and

the

ready

The

been/

not

through

"The

of

An

Indiana

would
address

have
by

Electric

had

Mr.

be

to

a

c o u

comfortable

prevent

their

substan-

young

or

thermore,

Convention,

preciated

later the

or

sooner

not

of

have

effective job

own

power,

at

time

a

popular voice had
or

when

ignored

in

our

;known
<20

land

own

the

most of the

over

to

..

a

touch'upon
principal reasons why
-the majority of opinion in Amer¬
ica
has now swung against na¬

men

The

basic

our

indus¬

Yes, tries.

But first, let's look at some
the long-range effects which

of

more

would

which

particular, segment

Fur¬

lation

the fact would be ap¬
that certain people in

if free

most
out

which

tied

or

of

our

to

stands

"the

enterprise; is starved
down.

commercial

business

it

can

buy the equipment that has been
developed and hire the engineers
and

COMMON

FOR

the

'

;

from

FUNDS

rise

to

gives
'

"

*

'
,

.

We

have

Stocks
Trust

compiled

considered
Funds

of great

in

statistics

eligible

on

for

that

system

of

rein

rich

to

and

Pennsylvania which should be

inventors

machinery...

•methods

help to Attorneys and others responsible

When' the
-

the

and

of

commercial

with,

will be furnished

upon

request

velop.
ment

M

STROUD & COMPANY
Incorporated

123

South

Broad

role
in

•

ALLENTOWN

•

Street

LANCASTER

and

•

ATLANTIC CITY

continue

to

,m(rt /

call

upon

taxpayers to subs'dize its

erations and thus make:
its

natural

Continued

t

own¬

the fruits of free enterprise
can

ab&ve




govern¬

resources

government has but limited

the
PITTSBURGH

tax

that flow from generations of the
^practice of fruitful industry and
?of thrift. So long as the Federal

upon

•

rich

showing
capacity to

on

page

32

•

the
the

less

disclosure

a

statute

ac-

complishes two things in addition
getting

through,

investors,

some

rset forth

ment

in the

First>

dii-.transactions

registration state-

the
of

at least to
information

the

a

very

fact

suspect

that

charac-

de-

,

a

processes

to

the

fix-

nearly

more

fair than could be fixed if the in-

formation
The

were

1954

Securities

signed
the

not

available. "

amendments

Act

of

to

the

are

1933

de-

t0

get

information

issue

and

the

issuer

about
out

to

A Continuing Interest in

Southern Advance Bag & Paper

prac¬

Grinnell Corp.

Kalamazoo Vegetable
Parchment

Keyes Fibre Co.

the enactment

was

the

of

the

Act rand

Federalr

Federal

BOENNING

Exchange Act.
of

the

contributes

market price

place got out

a

Federal

& CO.

Philadelphia 3, Pa.

significant

more

Government

enterprise was
of
the
depression.
the

of

a-lot

subject

and

of

There

thinking

over a

Discussions

in

jng 0f

But

of corporate
not, however, born

been
'

appraisal

All of that in part
part
coincided

1934

and

idea

for

4

Federal

incorporation

of

the

'30s

the

early part of the

by almost

50

ori

that

licensing
companies
antedated
years.

In

century

an

incorporation and suggested
recorporations should b

*An

address

by

Mr.

Demmler

before

the National Association of Securities Ad¬

ministrators;
1954.

New

York

City,

'

Sept.
"

29,

B. Stetson Pfd.

Public Service Coordinated

* *

4s, 1990

years.

Industrial Commission created ty
the Congress recommended Fed¬

eral

John

had

done

period of

interstate-commerce

op¬

a

*

the/ regulation

-

has

ership and responsibility for op¬
erating industry, it can still draw

PHILADELPHIA 9

NEW YORK

Furthermore, the
has the

as-

in

and

1933

The

one

A copy

a

J

general economic debacle,

a

Securities

into

this rich storehouse to draw
upon,
that it did not create or de¬

more

large segment of the
infected with a spec¬

was

Securities

of

it

market

A

the result

and

in

organization.

business

the

caused,

.

The

Toar.

ulative germ.

devel¬

government steps

did

of

public

and

and

'20s

hand.

of

rewards,

and

little

a

capital formation and the

tices

incentives to extra
hard work by aspiring

geniuses,
opers
of

get

me

laws were

the
of

gives

initiative

*

....

>to

A

let

proach to uniform state law.

driving

•long

of

for the investment of such funds.

a

hopes

free

fords

Common

investment

the

resourcelulness; t h a t evokes
struggles to achieve and that af¬

,

352

been

decades of
free enter¬

many

of

prise system—and the quality of
both the equipment and the man¬
power is unexcelled because both
came

TRUST

during

operation

have

who

managers

trained

STOCKS

,

sky

When the government first goes

into

T

-

uniform.

popu¬

lose

the Pioneers

varied, the. state blue,
a long way from
Moreover, jurisdictional
questions with respect to oLerings made in interstate commerce
created enforcement problems
which were staggering in respect,
of
national
offerings.
Had the
'20s been less roaring than they
were, perhaps the problem of se¬
curities
regulation
would
have
been
solved
by a gradual ap¬

overlooked, and
begin to indicate the

will

on

•

conditions

sometimes

,are

not

based

fer
musf
be disclosed
probably
pended on broker-dealer registra-.prevenfg many such transactions
tion; others depended upon fraud, from ever taking place.
Second,
statutes; most had and still have wbiie the
prospectuses may not
statutes requiring the qualifica- be
read by individual purchasers
tion of the particular securities
generally, they are read by anoffered. Because the subject matalysts, bankers, and other speter of such legislation was difficialists through whom the inforcult
and
complex and
because mation is disseminated and whose

of the

of

a

f
f„

putting it an-

or,

specific.
The
states
were
pioneers in the regulation of
sale of securities. They took
ferent
approaches*
Some

preceding

Nationalization

tionalization

is

part
pro¬

keep
asking
our"Why do we do what we

Now

little later I Will

A

:some

It

to

the

when the investor is

of

other laws,

any

free

like

money

fcol.

fulfilled

the

years.

From
~

his

^

or

statute, of course,

investor

keep reexamining our

States

generally

was

Disclosure

way,

be safely ignored—as it
increasingly silenced and

•greater degree than

disclosure

a

non-paternalistic doctrjne that the role of government
jn policing the sale of securities is

could

Was

a

of

Is that an adequate, protection
of investors? No one contends
selves*
that every investor reads the proare doing9"
We can't answer that spectusany moie than the millions
question without looking at our of people covered by life insurjobs in their proper perspective, ♦ance read their policies.
Neverother

silenced;

been

(2)
that

reia^vejy

b

in

major premises

been

forward

put

must all

we

be-

only

not

of admimstering the

securities laws

desperate re¬

a

followed
by equally
nationalizing of farms and
nationalizing of labor.
Such lat¬
ter measures, of course, have been

their

disturbed.

but

convinced

as

had

statute.

an

verbial

that

nations

goals, or

with

and

achieve

heads

by

like

(3)

and

Federal

leaves

Ralph H. Demmler

subject

of

to

secu¬

states;

or

The

happen to be slate ad-

mimstrators

national¬

drastic

work

and

the

you

determination to

their

their

their

the

French Lick, Ind., Oct. 6, 1954.

cause

some

states;

the

fraud statute

a

statute

disclosure

I have

chosen

basic industries. We know

sort to maintain their

themselves to be doctors,

prepare

latter.

con¬

of

in

Congress

(1)

Anti-Fraud

by the

resorted

re¬

but would seek other fields.
at

been

the

the

brought'

The pattern chosen was a com¬
bination of a fraud statute and a.

gen¬

erated

dec¬

'30s

other

avoid-

mimstrator,

in

establish

hours

the greatest losers.

ambitious

preceding
one, first, to

that

capital
reports

When

statute.

former
to

the

field,

like

of

financial

qualification

than

er

of

three choices:

little

a

izing of industries which has been

people, not the doctors, would

be

two

history, ancient and present,

income

with

Id

sleep

plans'from being
the

their

whether

hard

They

the

our

that

seri¬

be

be

livel

struggles
good practice. I Public Opinion Swinging Away

and

assured

worked

more

nation¬

Quinton

Association

practice

patients.

ally socializing the coal industry,
the steel
industry,* the railroads,
the electric
industries, the ques¬
tioner

has

from

losers.

be

not

would

gain and keep

they

ones

about the effect

in

trol

stated

be the

pol¬
have

raising

stockholders.

to

piessure

risks* and

would

of course,
hurt. The peo¬
ple would benefit." If at the same
time the same question had been

asked

they

the

Their

have

doctors,

"would be the

of

to

thought the

would

hurt,

lieved

most

would

doctors, would

ously

bene¬

of

answer

people who had
question

would

have

rities

the high blood

ades

asked today, they would not

in the world

medicine

nationally socialized in

America

.

ago,

been

I

a

freedom- of

that

by such changes in our laws.
is thus clear why the pattern

here

same answers. The major¬
ity of people would answer, "The
American people who have been
getting the best medical treatment

man.

question had

questions

life such

They would

be.
once

their

the

about Federal action

I

like

to

conditions

and

discussion.
v/ould

furnish

to

controversial

the

to

in

and

regulation,

ob¬

brisx

to

apparent.

to
publish
information
themselves and their pro¬

moters

itself

It

get the

economic

and

the

were

way—which, -with all it faults, is

about

Government in the

securities

upon

people because capital and peo¬
ple can move away from it if
of both parties, and in all walks,
they choose and thus hold it in
of life—have now had exoeripnce
check and prevent its domination
•enough with the decadent politi¬ or abuse of
power if that should
cal philosophies of the Old World
be attempted.

quired

and

alike to plati¬

the

would

of

the

states

course,

and personal liberty, '
be unthinkably
infringed' but

choice,

America,

as

a

at

seen

threatening
in the lives

powerful factor

too

destructive

how

icy would

to

discuss

the

subjec:,

lends

majority would have seen at

once

American way of

government

can

Harold

has

of

to

of

servations and

The

although those
b,y many, be¬

Local

country

a

of

The

tudinous

socialist scheme all

term, "nation¬

ownership unaided and unham¬
pered by the Federal government,

much

evidence

strongly

Socialism.

stopped. Hap¬
pily, however,

matter

enslaving impact of national¬
izing industries and professions
was not so apparent,
but the na¬
tionalization
of farming and of

shunned

are

Such-

labor.

nationalize

security

disclosure

like

roles

of the Federal

The

complete ownership of the means
of
production by
the national
state, swallowing
up
both free
enterprise and local government
ownership—and that is national

price if they
are

the

used

piecemeal

ship

greatest

e

Street,

holders

socialized,"

cause

would

therefore

Wall

the

Commission

Administrators

would

separate

suggestions would have proven at
once
to be decidedly unpopular.

Those benefited would-be

words

I

it had also been
nationalize farming

to

to

and

-

ago, at the same
questions had been

suppose

proposed

Exchange

system for regulating

provisions, is justified.
Urges on
advisability of creating uniformity in
such matters as examination of
investment companies, brokerdealer registration,
qualification-provisions, and in forms.

years

the first

asked,

people."

ally

and

years,

be

have

some

Federal

State

labor would have made the whole

would

bonds.

with

people and the workers for
be the big

If

dual

sales, namely combining qualification standards of State laws

losers.

answer—"Those

same

stockholders,

during

tend

the

hurt

revolutionary

Mr. Demmler maintains

those industries would

time

and

on

would likev/ise be that the Amer¬

ized

As

Chairman, Securities

nationalizing
coal, steel, railroads, electric
power and other basic industries,
today

Regulation

By RALFII H. DEMMLER*

Also, the majority of answers to

influ¬
of nationally "social¬

professional proponents

Such would

weeks."
today.

answer

questions

Edison Company

Contending present Federal power laws, enacted under
ence

In Securities

inability to get medical attention

President, Edison Electric Institute

1.

Continuing Role of the States

would suffer from

cases

for days and

QUINTON*

President, Southerh California

abuse

monopolize medical attention
and facilities, with the result that

Changed

a

would

community

every

and

Pocono Hotels Units

Leeds & Lippincott Units
Walnut Apts. Common

Pratt Read Co. Common

Samuel K. Phillips & Co.
Members

Phila.-Balt.

Stock

Exchange

Pennsylvania Bldg., Philadelphia
Teletype
PH 375

N.Y. Phone
COrtlandt 7-6814

Number 5366... The

Volume 180

members of the

more

has been

public than

Commercial and Financial Chronicle

the development of the

exist-;' (3) questions

customary under

(1391)

I

represent

ing practice, in other words, to* price of ore, availability of-mar¬
ket
and
of
refining fac liLes.
increase the efficacy of disclosure.
Doubtless many of the offering
I said a moment ago that the

the

learned.

enterprise;

of title, quality and

mankind

"

role

The

historically

way

has

that

the

played

states

in

have

regulating

the sale of securities is important

circulars and prospectuses which not
only
because it
represents
sufficiency of disclosure and anti-j
our Commission processes are less
certain approaches different from
provisions
alone
as
the
documents
than
the that of the Federal approach, but
bases of effective security regula¬ optimistic
promoters * desire. On the other because it fills gaps in the Fed¬
tion is debatable.
hand,
it
has
been
urged
that eral statutory plan—for one ex¬
The Federal
statute, however,
is not a qualification statute. Sec¬ people who dream of fortunes are ample,
intrastate
issues.
Many
by nothing that is small businesses? are locally fi¬
tion 23 makes it clear that the discouraged

'

fraud

Securities and Exchange

sion
not

does 'not

Commis¬

issues and that
anyone to represent
it has approved any issues.

approve

for

unlawful

that

This does not

to be realized

seem

said- in

the

cold,- print of a

pro¬

nanced.

Many sound enterprises
turning to the government for
loans to raise capital when threy
can't prove mathematically which should be
financing themselves by
view is correct.
equity money rather than . debt.
Now I suggest that in this area The
adaptability of your state
there is justification for trying it laws to the meeting of this prob¬
lem is vitally important to
both ways. Let those states whose
the

may: spectus. They are said jto see /Lie
word
"uranium" and buy.
You
it is

and

approve

are

members of the public;
so I say it again in the hope that
have
determined
to national economy.
you and your staffs will help to authorities
disseminate a public appreciation erect
I have far from exhausted the
higher safeguards against
of the fact.
the.«improvidence of their own list of reasons for the importance
citizens
refuse
qualification
to of effective state securities laws
State Qualification Standards^
uranium issues which do not meet and
efficient
administration
by

many

doesn't

-

There is a school of thought, the standards of such states.
Let thereof, but I think the reasons I
however, to which many people other states having different types have given are sound.
belong which urges the necessity of statute rely upon the disclosure
Financial Support Important
of imposing
qualification stand¬ provisions of their own laws and
ards as a condition for the mar¬ the
disclosure
required by the
Since-these laws and their ad¬
ministration are important, it is a
keting of securities. This, as I Federal Act.
indicated, is the approach of many
That approach may result in matter of concern both to the na-.
states.
The
effect, therefore, of different
consequences
to
the tion and to the particular states

whole

the

do

not

present

dual

.

system

of

of

citizens

one

that there should be

the

than to

state

no

withering

and

select and adopt such portions of
a
uniform statute as fitted their

I

,

a

while it is

of my

none

to

venture

business, I

legislatures will
you
with the

your

own

fit

see

provide

to attained.

necessary

But

whatever

In addition, since your work is
important, it becomes a part of
your task to
eliminate some of
the things Which may stand in the
way of effective state participa¬
tion in the process of securities
-

regulation, particularly the con¬
resulting from the great
diversity of state law. While state
statutes fall into patterns, there
are
many
variations within the

themselves

modated

fusion

to

any

nium
pass,

pattern, variations of words,
variations of concept. The great

the

of

they

Scriptures

never

With

made through your As¬
sociation in; the adoption of uni¬
form forms, convention examina¬
tions. of
investment
companies,
progress

comes

to

will.

leads

not

does

with

to the hope
be made toward

one

unduly

seem

be

can

made

registration

broker-dealer
visions

uniform,

become

Leydecker

Stephenson,

P.

connected

&

Two With Mathews Co.

op¬

(Special ±o The Financial Chronicle)

SAN

that
B.

pro¬

be made uniform, and

can

has

Co., 1404 Franklin Street.

timistic to think that basic defini¬
tions

Calif. —Julian

OAKLAND,

greater uniformity in state secu¬
rities statutes themselves.
It

Stephenson Firm

(Special to The Financial Chronicle)

Anderson

MARINO, Calif.—Stephen

Reichert,

Snyder

Jr.
now

are

and

John

H.

associated with

regulating the sale of securities is, citizens of another, but until we away of your functions as a re¬ that qualification provisions can
Mathews & Co., 2486 Huntington
many areas of the country, to find the ideal solution, different sult of insufficient financial sup¬ be made uniform. In other words,
add the qualification standards of
The
Federal
Government^ states could be in position to Drive.
approaches to the same problem port.
the state act to the disclosure and
fraud
provisions of the Federal
Act. At first blush this might look
in

^

like
in

duplicatiqn but

unnecessary

fact

it

Section" 18 ,of

is, not.

Securities

the

This is not

Act

says
cate¬
"nothing in this title
.shall affect the jurisdiction of the

gorically

securities commission

;.t

the states

have

\

"

;

hard

to

frame

to

up

date.

subject to the registration and prospectus requirements of the Federal Securities Act.

the

securities, and the circumstances

the prospectus

of the offering is contained

which must be given to- the buyer.

IDENTIFYING STATEMENT

to

hard

and

Venezuelan

,7*
'

>'

"i.

Qualification
legis¬

^

"

v

-determination involve

administrative
hard to find.

(Par Value 504 Fer Share)

•

>

,

degree of

a

wisdom

is

that

Qualification, stand-,

exemptions based

rat¬

on

v

The above named company

ing

manuals or listing on ex¬
changes
involve
problems
of
delegating legislative
power
to
private agencies. In other words,
a
good
qualification statute is
write

to

1,000,000 Shares Common Stock

/
'

administrative

to

Sulphur Corporation of America

to

'

left

but

-hard

in

-

•

bower

standards not prescribed by

or

issuer,

NEW ISSUE

.

ards

the

offerings,

Constitution

impose their own standards.
■
However, qualitative standards
for securities, legislatively framed,

lation

about

of any

.

reserved

a

under the Federal

keep

Information

any

eral control of interstate

are

offer to sell these securities, They are
r

security or any per¬
son." Moreover, in the absence ^of
any exclusive preemption of Fed¬
state, of

an

t-*

hard

and

to

of

/

f

had

.

.

The aforementioned stock is being offered for new financing, in connection with a distribution

by Venezuelan Sulphur Corporation of America.

ad¬

have

through its wholly owned subsidiary holds 50 year concessions and;
'rights to Venezuelan mining; property which it intends/ to explore for commercial deposits
sulphur.'!
*
"r

other

-

-

-

'

"

minister.

There

"

the

Yet

such

that

fact

of

Kansas Act

we

since

statutes

the

Holmes

pounded
states

the

■economic

ing.
.

ideas

can

:

:

Th®

registration statement covering

offer to

and

assurance

•

■

; ;

>*

and

In

registration.
best

to

states

some

issues

have

some

been

have

We

done

uranium securities. We have

the

.'options

writers,
/

.

would

such

our

in

share

in

sales

as

HUNTER

SECURITIES

52 Broadway,

CORPORATION

New York 4, N. Y.

Please send

me

a

copy

of the proposed form of prospectus relating to Venezuelan Sulphur Corporation of America.

(1)

and

under¬

of

which

the ^exercise
result

vestor's

items

to promoters

New York 4, N. Y.

Dlgby 4-2785

com¬

highlighting in

of

Broadway

of

get

material

52

refused

adequate disclosure
into registration
statements and
offering
circulars -relating
to
pelled

.

Investments

said

the past several months
on the subject of uranium
issues,
particularly the so-called penny
shares.

tCopies of the proposed form of prospectus may be obtained from
the undersigned only in such states as they are registered dealers.

HUNTER SECURITIES CORPORATION

written

much

been

-

there

during

such

available for distribution by this firm.

-

illustration,

of

way

,

<

>

Uranium Issues

has

proposed offering will be made or as to the amount of securities,<if any, that will be

that the

made and no

become effective. The publication of this notice is no

suggest

,

By

■

these securities ,is not yet effective. No "dffer to buy or seH the securities should be

purchase the securities will be accepted until -the-registration statement has

or

I

fication standards.

-

the

Lied

be

Offering Price: $3.00 Per Share'

ex-

which

in

tried and found want¬
*L»at
this
trial
process
is just what • has been
going on in the states ov"** the
-years in respect of the offering
-of securities and particularly in=
respect of the imposition of quali¬

-proved

-

repeatedly
philosophy that

laboratories

are

V-

"/.Vr'-y

qualification approach is still
highly regarded ih some areas.
.

presently outstanding 1,200,000 shares of the common stock.

indicates that

1911

the

Justice

are

original

Nome.

the

public inthe enterprise

Address.

being

disproportionately
small
when
compared with the share
acquired for nominal considera¬
tion by the optionees; (2) "best
efforts"
ments

ficient
•

never

underwriting

which

indicate

amount

of

arrange¬

that

a

proceeds

suf¬
may

get through to provide for




City

.Zone.

.State.

Telephone.
CF-7

,

ideal

formula and until the real millen-

same

naturally

j

progress

make, the ideal solution will
always be in the future. People
when they invest money are in
effect hiring other people to work
for them. The whole process of
investment is in effect just one of
human relationships. Human rela¬
tionships
have
never
accom¬
we

sinews of battle.

that progress can

•

'V.

statutory schemes.

It may be a long while until a
millennium of uniformity will be

the hope that

express

,

our

job

defeatist when I say that
I doubt if it could. Consequently,
am

7

•

8

The Commercial and Financial Chronicle...Thursday,

(1392);

Service

Public
&

Analysis
Square, Boston 9, Mass.

will be pleased
interested parties the following literature:

send

to

steel

Steel—16

New York

Steel

tional

Texas

to

Atomic Radiation and the Chemical Industry

—

Bulletin

—

Common

Op-

Funds—Statistics

Trust

352

on

the

Analysis

Election of Officers.
Nov. 28-Dec. 3, 1954

(Hollywood, Fla.)

—

Hollywood Beach HoteL

135 South La Salle Street,

Securities

Co.,

1-chonie, Marunouchi,

Ltd., 4,

Chiyoda-ku,'

cial

Securities Salesman's Corner

Tokyo, Japan.
California

First

Company, Incorporated,
Montgomery Street, San Francisco 20, Calif.
Brochure

—

300

Japan—Circular—Yamaichi Secu¬
Co., Ltd., Ill Broadway, New York 7, N. Y.

Investment Opportunities In
rities

Oil Industry in Japan with

particular reference to Nippon Oil

Co., Daikyo Oil Co., and Mitsubishi Oil Co.—In current issue
of

"Monthly Stock Digest"—Nomura Securities Co., Ltd., 1-1

Chome, Nihonbashi-Tori, Chuo-ku, Tokyo, Japan.
Over-the-Counter Index—Folder showing an up-to-date

com¬

parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to
yield

performance over
Bureau, Inc., 46

market

and

National

Quotation

a

13-year period —
Front Street, New

York 4, N. Y.
Profits

for

Research

1954-1958"

Research

Investors

C-254,

fact

there is

dollars meant

dence

building

his

of

He

and

♦

former

abilities

to

they

once

This latter phase

that

is

field

a

one

outside that

of

the

salesmanager.

About six months ago

Street, New York 5, N. Y.

some

regain

peculiar talent is certainly

average

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

them

rarely finds,
it is akin to applied psychology

and

Foods—Memorandum—Hemphill, N'oyes & Co., 15 Broad

own

has also hired

assisted

something
as

•

confi¬

the

their

in

men

have lost them.

charge—Offer

Company, Santa Barbara, Calif.

♦

Best

in

abilities.
men

who has been very

man

of his

of

American Mercury Insurance Company—Report—Peter P. McDermott &

a

successful

booklets

free

manager

hired

been

successful

a

a

this sales-

man

who

producer

had

of

business for another company, but

Big Horn Powder River Corp.—Memorandum—Rutberg & Co.,
31 Nassau Street, New York 5, N. Y.

H
'I

I

for

Black, Sivalls & Bryson—Memorandum—First Securities Co. of

hunting but he

was

financial

As

Chicago, 134 South La Salle Street, Chicago 3, 111.
Canada Dry Ginger Ale—Analysis—H. Hentz &

Street, New York 4, N. Y. Also available is
Republic Steel Corporation.

^

Co., 60 Beaver
an analysis of

Equipment—Report—Gerstley,

Sunstein

&

Co.—Analysis in current issue of "Gleanings"—Francis
du Pont & Co., 1 Wall Street, New York
5, N. Y. In the
are

a

discussion

of

Tri-Continental

Corp. War¬

rities

Steel

Corporation—Card

memorandum—Aetna

Secu¬

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

Railroad

&

Ward

&

Company

—

Bulletin

Co.—Memorandum—Emanuel, Deetjen

Brass

William

National

Co.—Bulletin—Gartley & Associates,

68

Street, New York 5, N. Y.

City Bank of New

Food

Products

York—Bulletin—Laird, Bissell &

him

told him

$50

man

on

drawing

week

by

the

him
At

Corporation—Analysis—Strauss, Gin-

that others had

him

shown faith in him, and he should
the

show

well

as

uct he

same

faith

in

himself,

the value of the prod¬

as

was

selling. When this

was

accomplished the same salesman
wrote $500,000 worth of business
in

month.

one

Now he is well

on

the way to success.

there

and

this

had

a

with

the

point
real

this
out

was

There is

stronger motivating
force in this life than faith—faith
in

no

ourselves,

the

product

doctor

ever

In

are

and

selling.

accomplished

—but

this

which

stacles

and

associates,

our

we

No
mir¬

a

of healing

first.

account

no

man

without the con¬
patient—that comes
life

there

come
can

contentment

to

ob¬

are

all

of

us

find happiness
unless

he

has
pur¬

business.

salesmanager

heart-to-heart

salesman.

the

He

trouble.

talk

finally
He

was

ing

squandering his drawing
account, and he had a good char¬
acter, but he wasn't closing busi¬
or

reason

was

that

he

would

(3)

respects; and

the

revise

to

Employees*
order

in

Plan

Retirement

to

ad¬

just pensions in line with the in¬
crease in the cost of living whieh
has

taken

was

instituted in 1940.

of

of

the

approve

York

New

the

of

the

Banks

Superintendent

Plan

and

stockholders

the

If

the

since

place

increase the capital
stock of the bank, it is planned,
that the additional 50,000 shares
will be distributed on Nov. 8,1954
to stockholders of record Oct. 29,
proposal

to

1954, as
of

rate

stock dividend at the

a

share

one

each

for

held.

then

shares

five

The capital of

the bank will then be

$30,000,000,

surplus will remain at $30,009000 and undivided profits will be

the

about

Mr. Alexander

$11,000,000.
that

the

at

dividend

next

meeting the Board intends to de¬

(Special to Th* Financial Chronicle)

East Union Street.

clare

a

current

quarterly dividend at the
rate of $2.50 per share

payable on the 300,000 snares to
be outstanding after the increase.
The Board of Directors believes

the

that

the

in

increase

bank's

Joins F. I. du Pont

in keeping with the
growth of its banking facilities,
is warranated
by operating re¬

(Special to The Financial Chronicle)

sults, and should enable it to par¬

capital

LOS ANGELES, Calif.—William
H.

Flentye has become associated

with Francis I. du Pont & Co., 677
South

Figueroa

Street.

He

was

previously with Dempsey-Tegeler
&

Co.

ness.

Merritt

(Special to The Financial Chronicle)

ANGELES,

the

be

will
on

or

mailed

to

pro¬

stock¬

Oct. 8,

about

E. A. Erickson

Cali.—Claude

has joined the staff of
Merritt & Co., Inc., 1151

three

forth fully in

be set

notice of the special meeting

holders

1954.

Opens

(Special to The Financial Chronicle)

J. Higdon

present his proposition and when King
it came time to ask for the order South Broadway.

of

details

The

posals will
which

Joins King

is

ticipate even more vigorously in
the financing of the nation's busi¬

the

LOS

ness.

value of $100 each to
shares of the same par

par

(2) to amend the bank's present
Additional
Compensa¬

said

With Standard Inv. Co.

Fourteen

no

the

State

salesmanager

man.

following

the

upon

tion Plan in certain

He reminded

that he thought he was making a

this

act

Officers'

no

told

to

value;

not

and

on

1954,

did

The salesmanager

straightened out his thinking.

out and go to
passed and the

Finally, after
no business, the President of the

meeting
29,

proposals:
(1) to increase the capital stoick
of the bank from 250,000 shares
300,000

PASADENA, Calif. —Mary J.
business, another
no
business. Handy is now with Standard In¬
vestment Co. of California, 721
three months and

salesman did

special

a

he

to go

month

One

of

calling

of

said, spend this if faith in the Tightness of his
Then he placed this pose and his mission.
the payroll at the rate of

per

the

of stockholders to be held Oct.

another

to

problem

itself.

rated, announced Oct. 6 that the
Board of Directors had authorized

that

and

and told him

it.

hundred

Henry C. Alexander, President
J. P. Morgan & Co. Incorpo¬

much to him, he

need it.

The

berg & Co.; Inc., 115 Broadway, New York
6, N. Y.




bill and he

making his calls, he wasn't loaf¬
Inc.,

Meeds, 120 Broadway, New York 5, N. Y.
National

was

to put it in his wallet and prom¬
ise not to spend it. Then he gave

found

Co., 120 Broadway, New York 5, N. Y.

Mueller

$100

a

the
stem-winding
give this

did

few

a

of

had it out with this salesman and

hundred dollars had been paid to

(No. 176)
Smith, Barney & Co., 14 Wall Street, New York 5, N. Y.
Also available is a bulletin (No.
175) on Railroad Earnings.

Montgomery

President

present

same

fidence of his

mistake

Broadway, New York 6, N. Y.
Pacific

the

this

thing

salesmanager

company

Missouri-Kansas-Texas—Memorandum—Ira Haupt & Co., Ill
Missouri

his

was

the

man

so

first

passed

rants and three selected lists of Low Priced Stocks.

Kaiser

need.

lost

he job
also in dire

only

not

because

realize

acle

$100

Glidden

issue

had

he

reason

and

you

Precision

Co., 121 South Broad Street, Philadelphia 7, Pa.

same

grip

man

Inc., 30 Broad Street, New York 4, N. Y. Also available is
an
analysis of Sandy Hill Iron & Brass Works.

I.

some

that

couldn't

of the company told it to me,

Cinerama Productions Corp.—Bulletin—John R. Boland & Co.

General

Commodore.

J. P.

would

general agencies of this company

Plus "Positive Investment Pro¬

—

both

he

think, "How can this
me
man pay for this?"
He would lose
surance
company just the other confidence at the very time he
day.
It illustrates the power of should believe in his proposition
positive thinking when applied to and he conveyed this feeling to
personal problems as well as those his prospect. As a result he was
encountered in constructive sales not making sales. The reason for
work..
this hesitancy and lack of assur¬
At the head of one of the largest ance on his part was due to the

their

Through

gram

following story was told to
by the President of a life in¬

the

at

Societies

Analysts

Plans 20% Stock DiY.

By JOHN DUTTON
The

Finan¬

of

Federation

National

"Historic Firsts in the First 50 Years of Bank of America"—

<

May 8-10, 1955 (New York City)

Hotel

Through the Japanese Stock Market —
of''"Weekly Stock Bulletin"—The Nikko

Investment

Convention

Annual

on

In the current issue

Association
at
the

Investment Bankers

subject of investing-in. securities—Cantor, Fitzgerald &

Foreign

Security Dealers Asso¬

ciation Annual Convention and

Co., Inc., 232 North Canon Drive, Beverly Hills, Calif.
-»■

1954 (Florida)

Florida

,

—

Street, New York 5, N. Y. and
Chicago 3, 111.

,

fallacies

A.

Whirlpool Corp.—Memorandum—Glore, Forgan & Co., 40 Wall

eligible for investment of Trust Funds in Pennsylvania—Stroud & Company, Incorporated, 123 South Broad

"Don't You Believe It"—A booklet to expose some

memorandum—G.

General Investing Corporation,
Street, New York 5, N. Y.

80 Wall

common

stocks

Street, Philadelphia 2, Pa.

ford

Nov. 4-6,

Co., Inc., 70 Pine Street, New York 5, N. Y. Also
a comparative tabulation of Public Utility Com¬

Industries

Security Dealers An¬
"Fling-Ding" at the Rock¬
Country Club.

Rockford

& McKin-

Company—Report—Thomson

Stocks.

mon

1954 (Rockford, III.)

Oct. 8,

Transmission 'Corp.—Card

Gas

Texas

for

& Co., 115 Broad¬

nual

Oil

Field

Investment

In

available is

N. Y.
Stocks

EVENTS

Lerner & Co., 10 Post Office

5, N. Y.

Saxton &

penheimer, Vandam Broeck & Co., 40 Exchange Place, New
York 5,

—

11 Wall Street, New York 5, N. Y.

non,

organized groups—''Achievement," Na¬
Corporation, Grant Building, Pittsburgh, Pa.

available

COMING

35

Gas—Analysis—Cowen & Co., 54 Pine Street,

Shamrock Oil &

color film telling the story of

mm

Co.,

New York 6, N. Y.

Socony-Vacuum
Achievement in

—

Regis Paper—Analysis—J. R. Williston

way,

understood that the firms mentioned

is

&

Street, New York 5, N. Y.

Riverside Cement

St.

^

Mills—Memorandum—Walston

Rice

Brand

Wall

Recommendations & Literature
It

Hampshire—Analysis—Ira Haupt

New

Co., Ill Broadway, New York 6, N. Y.

River

Dealer-Broker Investment

of

Co.

October 7, 1954

EL

CENTRO, Calif.—Edward A.

in a securi¬
offices at 703

Erickson is engaging

business

ties

Main

from

Street.

Joins Paine,

Webber

(Special to The Financial Chronicle)

LONG BEACH,

Calif.—Thomas

J. Corcoran has become connected

with

Paine,

Webber.

Jackson

&

Curtis, 147 'East First Street.
He
was
previously
with
Marache,
Dofflemyre & Co.

Tucker Adds to Staff
(Special to The Financial

LONG

BEACH,

Chronicle)

Calif.

—

Earl

has been added to the
staff of Tucker & Co., 132 Pine

Van Slyke

Avenue.

(1393)

Number 5366... The Commercial and Financial Chronicle

Volume 180

ference

Pointers for Federal Tax

Policy

Consultant, National Association of Manufacturers

basis for Federal Tax policy: (1) reduc¬
tion of individual income tax rates; (2) development of Fed¬
eral excise taxes; and (3) transfer of government services
and tax sources to the States. Says there is an obsession about
the income tax, and points out as objections to dependence on
income tax for revenue: (1) Federal budget is made vulner¬
able by economic fluctuations; (2) rates on incomes become
excessive, even abusive; and (3) there is a tendency to neg¬
lect other revenue sources. Foresees liquidation of the "middle
class" in high income taxes.

I remember when there

income tax.

remember the

I

record

no

was

thinking

ar¬

guments of those who were fear¬
ful

that

income

an

would

tax

mean

of

exposure

personal

■and

private

affairs to

remember

I

the

this

and

local

World

against

each

person

make

out

own

his

return.

I

member
Harley

L.

Lutz

predictions
that

come

tax rate might be

"Don't

talk

in¬

1920's.

During
mittee

was

—

ferences

be tb'i

high."

of

has

or

Out of this debate
emerged the com¬

1913.

It

for the

many

the

by

that

could

record
be

selected the

one

firmly estab¬
passed after
largely responsible
more

years

was

defeat, in 1932, of the bill
a general excise tax.
negative action

to introduce

This

unfortunate

by the Congress has supplied, for
more than two decades, such po¬
litical
may

argument and evidence as
have been required to pre¬

vent

1926.

the

ered

states had become fearful that

This announcement is not

of

serious consideration

things

NTA
have

I

unwise

Those of you who were

from

the

of

discussed

that

of

or

who

have read

the

of

then

in Toronto,
"Proceed¬

ings" of the Toronto conference,
will

recall

the

witty, but never-

Continued

which I consider

on

page

the

$15,000,000

importance.

Federal taxa¬

first

but

Metropolitan Edison
First

Series due 1984

Mortgage Bonds, 3

'

Dated October 1,1954

period there
and com¬

any

. ..

•

'

-5

Due October 1,1984

papers

Federal

on

the

at

concern

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

of

taxa¬

annual

Price 101%% and accrued interest

con¬

with state and local

was

taxation.

The papers and discus?
sion covered the water front of the

remember the Golden Age
-of American agriculture — that

practical aspects of the tax meth¬

wonderful base period 1910-1914—

and

approved

the years

with particular
interest through
in the techniques of as¬

by those who jeer at every¬
thing that happened prior to the

sessment

of

day before yesterday. These

other

1

can

as

relic

a

the

of

past

even

were

years

not considered special in any

ods

then

in

estate, personal
railroads, and the

bountiful

nature and

indus¬

an

trious husbandry.
•

In

days the accepted
of
disposing of surplus

method

tribution
tween

those

such

of

of beer for

nickel, and from the
Today,
the only contribution to the farm
surplus problem by the ancient
and honorable institution of com¬
munal

elbow-bending

casional

dish

small

is

oc¬

an

of

peanuts,

popcorn, pretzels, or potato chips.
It is small wonder that the tax¬

have to pick

payers

"<of the check.

so

up

much

The old system was

just another example

the

of

su¬

periority of private enterprise.

WILLIAM

the

freedom

of

cities

National

I remember when the

Tax Association was formed.

One

Professor Bullock told his
class in Public Finance at Har¬
vard that he had to be "out of
day

NEW YORK HANSEATIC CORPORATION

and

own

methods

-

an

found

about this tax as¬

us

sociation that had been formed at

My own membership

Columbus.

dates from 1910 and my

ference
There

was

were

first con¬

.organizations devoted primarily to
the discussion of tax problems,
and the NTA attracted the out_

»

standing
with

men

who

such matters

istrators,
students'

dealing

were
as

tax

admin¬

tax attorneys, and tax
including professors in

colleges and universities.

and in¬

taxation at the state level.
The
tee to

appointment of a commit¬
a model plan of state
taxation was a logical

This announcement is not

draft

culmination

the

of

concern

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

an

The

local

and

over

The report of this

these matters.

committee, submitted in 1919, had
influence

substantial

a

the

on

$20,000,000

for years

development of

state

tax

consistent, rea¬
sonably successful attempt to deal
with the equitable apportionment
of the tax load among the major
tax sources within the state, and
systems.

It

was a

Public Service

all with Federal

cloud,

which

much

so

then

of Colorado

taxation, for that

was later to cover
the fiscal sky, was

of

rThe proceedings of the annual
held under the au¬

First Mortgage

bigger than a man's hand.
In 1918 we had just finished mak¬

Bonds, 33^% Series due 1984

no

Dated October 1, 1954

*

of

the

Association

are

a

r*.
•An address by Dr.

Lutz at

a

luncheon

neetinf of the National Tax Association,
Sretton

Woods, N. H., Sept. 27, 1954.




Due October 1,1984

.

'i.

1

.

.

Price 101%%) and accrued interest

,

-

spending, taxing, and public
occurred dur¬

eral

debt which actually

1920's would be perma¬

ing the
nent.

outstanding

Two

controversies
The Prospectus may

within the NTA during this period
call

for brief mention.

bank

taxation,

launched

here

at

,

w

h i

c

h

Bretton

be obtained in

any

State in which this announcement is circulatedfrom only such

of the undersigned and other dealers as may lawfully offer these securities

One was

Woods

following the decision of
the Supreme Court in the Rich¬
in 1921,

Bank

year.

It involved the issue of

dis¬

BAXTER, WILLIAMS & CO.

classified

several

WM. E. POLLOCK &. CO., INC.

years

property

tax.

BYRD BROTHERS

BURNS BROS. &, DENTON, INC.

For

•

HELLER, BRUCE &. CO.

Revised Statutes

Was

on

the con¬

October 5,1954

FOSTER & MARSHALL

THE ROBINSON-HUMPHREY COMPANY, INC.

after 1921 the re¬

vision of Section 5219 of the U. S.

R. L. DAY & CO.

f

against national banks

by the states that had introduced
a

SALOMON BROS. A HUTZLER

HALSEY, STUART &, CO. INC.

in June of that

mond

case

in such State.

was

.

spices

Company

It did not deal at

states.

among

crimination

conferences

THOMAS & COMPANY

terstate conflicts leading to double

at Richmond in 1911.

then no other national

THE ILLINOIS COMPANY

FREEMAN & COMPANY

BURNS BROS. & DENTON, INC.

very

Bullock told

H. HENTZ &, CO.

October 6,1954.

explanation that I later
useful myself when ing the world safe for democracy
there was something to interfere and everybody confidently antici¬
with meeting a class.
Afterward, pated that the reduction of Fed¬
town,"

& SON

INCORPORATED

provide a basis for minimizing,
if not eliminating, the tax conflict

The National Tax Association

GREGORY

&. COMPANY

BLAIR

& CO.

INCORPORATED

be¬

revenue,

raising local

WEEDEN

SHEARSON, HAMMILL & CO.

BAXTER, WILLIAMS &. CO.

to

.

SALOMON BROS. & HUTZLER

BEAR, STEARNS &, CO.

with

towns to select their

a

five-cent cigar.

a

sources

ancillary topics
local option, by which was

as

method of

revenue

the state and its local sub¬

meant

reducing the farm sur¬
plus was financed out of the re¬
sults from the sale of a large glass

of

divisions,

farm products was the free lunch
at tiie end of the saloon bar. This

sale of

INC.

a

cal

a

HALSEY, STUART & CO.

public utilities. The closest
to a subject involving,
philosophical sense, the re¬

approach

at the time.

become

such

real

the

property,

They have since in a
prolific source of politi¬ lations of different governmental
hay, a crop that has surpassed units was the discussion of the
anything
provided during
that separation of tax sources. At is¬
base period by the joint efforts of sue then, of
course, was the dis¬

way

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

The Prospectus may

use,

continuing

-

any

decision.

an

The

In the second half

reports

and

never

Act of

Out

the example of Nevada and Flor¬

tion, but the predominant interest

as

course

room,

and
the

as

and

prominence

occasional

high

Of

state

was

has been paramount.

were

hotel

a

or

the second half of the period cov¬

However, some east¬

passed with the "normalcy"

as

nonsense.

ern

dwellings,

Obsession About Income Tax

that the tax should revert entirely
to state use.

owns

fishing.

paramount.

and

War I gave

the reply

10%, to which
the rate will

the

tions

domicile

a

lished

reversal

several

in

he

as

rented

enue

NTA resolu¬
and in the Model Plan, was

pressed

have

promise of the 80% credit which
was
later written into the Rev¬

had passed^ as were
profits tax and various
The state viewpoint, ex¬

excess

others.

can

at New Orleans

emergency

the

of the NTA record, say, from 1932
to the present, Federal taxation

re¬

the

not

man

The income tax fixation be¬

came more

the is¬

years

of

taxation

interest

of the

having

gone

war

tax, introduced
finance measure in 1916,
been repealed after the

discerned.

were

temporary

this

by

be

problems

Federal

be! tion

states

as

a

by

for estate tax purposes in as many

came

has

had

periods

equal

may

taxation

minor

rich

a

The Federal estate

American

Through the first 25
sues

moving west or
the amaz¬
ing Supreme Court decision that

Federal

This matter

taxes

key to the whole storv.

on

record

guarded

.

best

approximately

this

would

the

over

was

tax.

south. This was prior to

boil in New Orleans in 1925.

a

the theory and prac¬
tice
of
taxation
during the 47
years of the NTA history.
Two

answer

•that
•

a

and

stranger;

•

of

period

estate taxation.
to

Dr. Lutz lays down as

i

this

of

This

is the obsession about the income

death

revision which authorized several

Professor Emeritus of Public Finance, Princeton University

the

ida would spread and that their
wealthy residents would escape all

matter

optional methods of bank taxation.
The second notable controversy

By HARLEY L. LUTZ*

Tax

The

programs.

eventually laid to rest by a

was

9

31

10

The Commercial and Financial Chronicle,.

(1394)

important in past State develop¬

Economic Future of

ment, and to the development of
the West Coast.
'
V
Pinellas and Hillsborough Coun¬

Florida's West Coast

ties,

I

President, First

Moore

Mr.

-

Florida's

discusses

economic

isolated to

extent from the

some

development

area,

data

and makes

area

bridge

new

tremen¬

seen

shown

Sarasota,
that

examples,
spirit of

as

new

a

interest has

East^Coast, but this

State's

widening

and

•

taken hold of part of

the

have

caused

50 miles of

over

within

area

Tampa Bay to become
of

more

even

the

population,'

major population

a

growth

a

on

penin-

-sula does not always

ular

follow a regPopulation move-

pattern.
and

ment

business

influenced

locations

are

the State.,

by

'
ties of Collier, Lee and Charlotte.
doubt, the airplane The completion of this bridge only
greatest influence on adds to the other
highways movdeveloping the State of, Florida,
ing north and south, and serves as
and f the - greatest
influence
in one m0re means of ingress into the
bringing the peninsula back into expanding,
bustling area whose
what might dg called the
main— ggpigj* jg Tanrpa Bay.
stream" of continental commerce.
Twenty percent of the State's:

transportation

sula, and trad¬

ing

centers

,

urban

and

ec o n o

the

them

shopping cen-

continued

.

the

been

in

case

taken

the

peninsula

tain

has

up

tide flowing along cer-

^est

small

made

State

paths

to

was

iso-

Florida;

this

physical exists
still, despite good

extent
as

the

Tamiami

Trail

years, howwith, a tremendous increase
population (which has

added

„

move-

gtate

gtate

north-

33%

a

1950 total.

major market

Pinellas

and iHills-r

between!, them

West

Coast

the

over

This to be accounted*

by the fact that the two

course

some
15,000
per
month, employment, business patterns
population), we have seen a and so on, the area has dynamic

jarge increase »in the

number

scuthern

Coast

"the

present

well-bal¬

a

"

anchor.

One

gives

and

area,

forecast

tne

:

general

a

to trends in

as

the future.

the prime points of the
West Coast will be in the
quality
of its population, and on the bal¬

registered in

were

counties,

the

over

in

In 1953, some 316,000

tial centers.

the ;ten

means

expansion

motor vehicles

at
area

of

ance

increase

not it

Such growth

of

its economy.
Whether or
avoid the transportation

can

vehicle registration in¬ problems and bottlenecks which
clearly that transportation have plagued the development of
advances are not only helpful to the East Coast, and whether or not
in

motor

dicates

which

expansion, but actually the character of the urban areas
for it. It is a case of change so as to affect this quality
'

The

auto

industry

will

a

continue

War in 1950.

East.

the West Coast and

desire

traveler

on

the

part

look

to

at

other

tremendous

growth

accommodations.

there

moment,

down

Collier

north

areas

the

Bay,

in the

portance in the sociological devel¬
present
opment of any given area. Such
120,000
a
link to the past
prevents ex¬
in the ten-

Citrus
of

south

this

area

growing

ur¬

may

to escape some of

pains

which

afflict

sharper .the^Y'ast Coast of the state.
What is required in the
running at

counties.

that

pected

It

is

ex¬

gradual

change

accommodation

of, tourist

the

ac¬

bulwark of

a

planning which

much

was

last five years,

central

area

enable the

Tampa

tourist

in

ban and

the

In

and lends

cesses

County

nearly 50% in the period, com¬
pared to a 30% increase in the
two

population make-up, with

a

link to the past, is of great im¬

some

increase

commodations

West

was

lacking in the
great advantage to the
is that it has, at its base, a

Such
a

tourist

County.

and

permanence on the

which

permanent group of residents who
occupied cities like Ft. Myers and
Tampa for several generations.

the

coastal

in

rooms

from

area

to

be

to

the

At

are

available tourist

county

of

have caused

segments of Florida
a

remains

A

area

Since that date, new

emphasis

spirit of

Coast

development, which really be¬
gan about the time of the Korean

new

population

Evidence of the past, how¬
ever, would indicate that there is

its

on

the

seen.

Coast

West

of

new

or

;

;

important tourist

the

on

first,

comes

road.

pattern

Coast is the effort to
•

West

that this

see

tremendous growth which is fore¬
does not become a millstone

cast

around the neck of urban
ness

the

progress;

or

busi¬

is

answer

to

scattered

•

gap,

In those last few
ever,

the Keys.
This major

from the

Florida

of

notwithstanding. cross-State
airpiane flights.

to-

anced

business and residen¬

component

capital, interests,

The accompanying table outlines
be
of generally the growth of the West

generated by continu¬

economic

ing

able

along the increasingly lay careful plans. Planning is a
popular main highways, will con¬ must in any area, and especially
central counties of Pinellas and'
so in an area where
tinue.
*
'
'
dynamic ex¬
Hillsborough have' between them
pansion is the order of the day.
Agriculturally, the area-has an
75% of the population in the ten? What
have hitherto been empty
county area. Approximately 19%; excellent background, in that its
swamps and quiet country roads
of the population are in the five coastal counties are backed by an
will
become suburbs
of
mush¬
hinterland
or
sur¬
counties
south
of
Tampa Bay, agricultural
rooming cities, with real estate
diversity.
In
addition,
while in the three counties north prising'
developments in what formerly
of the Baysome 6% of the popu-< phosphate deposits on the West
were little villages. These
changes
Coast form arraw material bul¬
lation reside,
will come along with industrializa¬
Measured from any economic wark on which the economy has
tion, and they must be planned
outlook, such as bank-deposits, been building soundly. Evidence

the

-

|n

southward

of

of

such

Beach, finally reaching Miami and

ment

back,

aj

Counties

the

inate

large extent from the

a

goods.

next decade.

mental than

roads

JanaPa ar<ra»
i f
beds down toward Palm
population

Coast

years

Coast

some

and

West

become

to

this total, and this great metropolitan area will continue to dom-'

Only

few

a

to

more

the

stream

area'

borough

,

coast

East

portation resistance. In the early
years, it was of course the railroads
which,
flowing
south
through the northeast section or
ward

north and south of the bridge

area

along the West Coast of Florida,
this
population
of
055,000
persons has caused the ten-county

account for some $560 million of;

large extent

a

the

connect

to

iated

a

following the line of .least trans-

the

to

vertiCally.

shallow stream beds, usually

been like

be to

recently have the final steps been

The movement of popu-

down

lation

to

"vertical" and not "lateral."

-

ters and the like.

has

a

that this transportation has

ever,

Philip W. Moore

purposes

population lives in the ten-county

It should be pointed out, how- for

j

growth of

smaller towns,

•Such

peninsula

part of the
nation's commerce, within certain
limits, and not a quiet side brook,

mies,

Florida.

and

tents

new

influencing
around

length of the

now representing only a two-hour
.flight by airplane, it is to all in-

develop,
change
and
on

the

With

areas

take

.

has had the

changes with¬
in the penin¬

and

necessary

Without any

almost

constant

travel

will

„

,

the

Such, traffic

increases
both induced by easier

by

should continue
increase rate, giving the
-

traffic throughout the West Coast.

economic

The bridge
will serve to give impetus to this
:
development, and hasten the deTrue, too, the railroads have im- velopment of counties south of
proved and speeded up, and the Sarasota and north of Pinellasairplane has played its ubiquitous Hillsborough line, i.e., Pasco, Herand powerful role in developing nando and
Citrus, and the Coun-

backed

the

in

Ibridk^ Will

'

new

been in previous years.

.

Economic

The

and commercial center tnan it has

five-year economic forecast for it. Stresses
value of economic planning.
a

and

have

and

gap is
lower Tampa Bay. Cites
indicating tremendous growth in Florida West Coast

being closed by the

Manatee and Sara¬

as

St. Petersburg, the Greater Tampa

growth, particularly with reference to the West Coast. Points
out, up to u few years back, the West Coast of Florida was
/

well

growth since the end of
War II. The expansion of

World

of Florida

Corporation

Research

Counties, have

dous

By PHILIP W. MOORE*

;

as

sota

in
effect, measured
growth of its cities.

is,

Thursday, October 7, 1954

.

of

In .1940,;these ten
only 366,000 resi-

features to.it.

of

this

balanced

centers

in

borough

area

which

economy

the

for.

Industrialization

Pinellas-Hills¬

the

is

tremendous

looms

one

as

of the big problems of West Coast

Florida, and should be anticipated
Tampa.
and controlled, since it cannot be
port, ton¬
denied. The strategic location of
ward
the
Pinellas-Hillsborough
nage-wise, in the Southeast, it is
outdating of a large part of the
the West Coast area and its grow¬
one
of the busiest, and its pres¬
main road system in Florida. Such persons have been added to the
ing population means that within
the
Daytona-Palm
Beacn-JJaae
outdating has demanded an an- ..p.onn'atiQP, a four-year increase of' ence has influenced an increasing
five years a permanent population
area have determined much oi tne
swer; and the communities of the 30,000 a year, as compared to a number of businesses to locate in
of nearly 900,000 and a neak
business
and
economic
pattern,
popu¬
g^ate have set themselves to the ten-year increase from
1940 to the Greater Tampa area.
eastern section of Florida, moving
in

southwesterly

a

direction

auto

to-

registrations,

and

had

counties

conse-

a

qUent crowding of the roads and

dents, and in 1950, some 540,000.
From 1950 to date, some 120,000

^.asp. jn

1950 of some

activity
While

the

in

the

not

of

Port

largest

a£ea'T?n? southeasterly toward

and

indeed
of

tern

the

lite

Florida today.

mobile,

it

its

influence

change

for

basic

pattern

nnw

TrilP

pat-

known

is

while

ana

this

altered

extensively

thprp

up

new

south
soutn,

and
ana

st

f

and
ana

there
mere

angular

and lateral roads

pnnnpct

pities

hitherto

Th-

are
are

haye
f,

?

unlinked

to

transportation to

rprpntlv

recently

over

bridffe

,

which

is

Lower
whirh

thp

Tampa
is

Bay.

dpstinprf

Hillsborough

come

?

to

75%

J

a

tremendous

w

,

roast

effect

on

j

life

h

i

and

Bv

f.1.0".'

all

the

em-

*Xua

menthis 75%

*

iarge' ,in*s

/o

tne west uoast, is a new nnK division of these two central.couna some-

ties

in

obtains

almost

in-

every

what dlvlded area- xt

can be re- stance where per capita indicators
garded as another means of north- are usual. For example, in bank

♦An address by Mr. Moore before the
Tampa Committee of ioo, Tampa, Fla.,
Sept. 28, 1954.

south

transport

which

has

been

.

.

of

are

some

cen¬

in—or find markets for:

V

even

Mercantile Trust of Kansas

First National Bank & Trust

Co. of Tulsa

than

of

the

some

the

in

borough
from

those

north

but

area,

should

effects

and

Pinellas-Hills¬

urbanization

outward
reaching

spread

counties,

south

cohesive

Southwest Natural Gas

.

totaled

$200

to

create

economic

/'*

The effect of the bridge in unify¬
it

would

more

appear

unity

in

and
to be generating
general develop¬

mental efforts than has been evi¬

denced

in the

past.

In the future, it is

the
West

principal
Coast

;

cities

area

remarkable

have

develop¬

a

and

by

1,200,000 will

Merrill Lynch, Pierce, Fenner & Beane

Bradentonv
Springs,

$2.5

million;

$0.5 million:

As

million;
Tarpon
in the

Florida, it indicates that

the growth

of the West Coast

area

in

that

already evident that in

the Pinellas
a

County area, hitherto
quiet service and trade center, is

becoming
has

-

industry-conscious and

already

borders

attracted

number

a

within

of

its

diversified

light industries.
The Tampa area, of
course, has
always had its share of manufac¬
turers

its

and

work

through

Chamber of Commerce
ous

civic committees has been

ceedingly

effective,

industry into

more

ex¬

bringing

an

in

which

area

has known .it for several

tions.

the

and vari¬

genera¬

In the other counties, how¬
which have not known in¬

ever,

will arrive,

ceivable

companies
their Pan¬
.problems, It is con¬

and bring

dora's box of

that within the

Sarasota

for

waterside

undoubtedly will be
developed in the future, and fu¬

location analysis, an area such as
Sarasota offers everything which

developed
areas

bays

and

which

part of travel patterns for that section of

million; Ft. Myers,

distribu¬

manufacturers

It is

area.

than

retailers,

example, a number of
industries will develop for
various reasons, since .in plant re¬

of

Economic

Collier
Forecast

County,
—

West

$9" million;

$3.5 million; Naples, $2.5

of

more

served

tors

area,

light

any

other

including
and

area
a

in Florida offers,

fast population growth

developing

a

urban

The big

question: Is the
ning for this?
In

the

nellas

Coast

1954

Population
deposits

plan¬

northern

and

Florida

of

section

of

Pi¬

Hillsborough Counties
(1954-1959)

Normal Growth

:

-With-New Bridge

655,500

Retail sales
Bank

center.

area

,

1959

Sarasota,

Clearwater,^$8

rest

be

dustry. manufacturing
expected that

the counties of Charlotte and Lee

Ip 19.53, for .example, St. Peters¬ development
burg had $31 million worth of

70 PINE STREET

NEW YORK 5, N. Y.

the

of

whole.

million

.sbuildih£ .permits; Tampa had $27

White Eagle Oil

Offices in 106 Cities

counties

a

that the area is inJ the coast within the next five
vesting to house its new families; years. South of that, the recent

million;




centered

the area, and

City

National Bank of Tulsa

Trading Department

deposits

permanent investment is

Texas Natural Gasoline

Hugoton Production Co.

in contemplation.
Gen¬
erally speaking, the area has been

ments in population, and in (con¬ ture
transportation changes to
comitant buil(Ung.xpermits.
This" come, such as bridges; undoubt¬
economic
indicator
shows ithat edly could alter business and

Kerr McGee Oil Industries

First National Bank & Trust

.

had

...

Colorado Interstate Gas

Co. of Oklahoma City

facilities

of should see development south of
outpaces fast-growing Sarasota.
In those
population growth.
areas there are some splendid un¬
j ,

year-end
.

make markets

*

million

$329
Bank

at

Some

we

ten

1953,

with $332 million
1948.
This increase

compared

within

of the stocks

with

in

as

more

'

the

all

million

ago.

years

which

deposits,

$544 million at year-end 1953,

prairie state grown rich in opportunity
V

$422

some

three

Oklahoma since the turn of the

bank

all

compared

as

Examples?
Here

new
bridge,
transportation

ing this coast will be large,

for

.

the

other

deposits, the two counties, Pinel¬
and Hillsborough, have some

OIL !
for investors,

of

over

77%
total

tury

years,

with

con¬

the
particularly with

upward

move

impetus

should

State

area

las
v

That 's

to

next five

and

nersons

the

of

tinue

the

persons em

large

Coast

also

rjneiias

employ

the ten counties

in

tioned

k

of

?u

•

Dn?§e, wnicn is destined to ployed

The growth factors of the West

Pinellas

business pauern wise,

new and

lation of

17,000.

Business-pattern-wise

r.Pw

the

to what has hitherto been

'

.

t

•,

state bridge

™»'
L
+
u
roads which match those running
north
north

addition

th

to

cross-State

arp

varying degrees.
the airplane
has

This rate is
made expected to be maintained over
more
and more a unity
of the the next five years, despite the
gtate> the singie m0st important high growth rate since 1950.

in

-Nor has the .auto-

with

power

sociological

as

__r

_

770,000

$713,875,000

$820,000,000

$940,000,000.

$630,000,000
390,000

$780,000,000
440,000.

$544,063,000

Auto registrations _i'.

Nonagrioult employment
Tourist accom. (rooms)..

>

Number of tourist visitors

"

1

316,277
199,000
118,600

1,770,000

•

-

'

-

864,000

-

228,000

262,000

144,000

160,000

2,100,000

2,450,000

Number 5366

Volume 180

The Commercial and

...

Financial Chronicle

(1395)

will undoubtedly be located many

the

of

no

industries, whose
branch
locations may
be influ¬
enced by the growth of population,

From

supply or by general land or
material availability.

raw

Ahead

1

it

transpor¬

a

istration

there

hide,

an

can
such

as

that

local

area

means

in

especially

Just what being "contumacious" of the Senate means, I'm not
quite sure that I understand. It is one of the two indictments
against Tempestuous Joe McCarthy.

the West Coast. It

manufacturers

But

/

there

seems

little

doubt

that

Senator

doing, though, is thoroughly smearing the Admin¬

;and

will

-

•

the

private

are

be

a

electric

in the

move

industry

power

predictions that

as

result

a

of

as

whole.

a

Langer's

work

next

Congress, probably successful,;
investigate the whole private utility industry such as it was
raked over the coals back in the
20's, with all of the attendant
demogoguery, just at a time, too, when the industry thought it
was
doing all right and under Eisenhower could move forward 4
without being a football of
politics. ^

By CARLISLE BARGERON

compete within the cost-range

can

relation to the Dixon-

no

to

tation umbrella under which local

industry

or

.

Already there

of the News

It should be realized that within

certain limits there is

Certainly it has little

What it is

Washington

by excellent port facilities, by la¬
bor

substance.

Yates deal.

larger

11

.

There is

j

degree of similarity between Langer and

a

Unquestionably McCarthy tried to embarrass
although he

Langer of North

was

of the

same

the

McCarthy.*

Administration,

party, because he figured rightly that7
him, had even been makingJ

of

that Administration had

other

.snide

orjeven* somewhat less efficient:,-, testify - against citizens without, letting those
production. ->Any of the three of v- citizens-appear m their own behalf, vin this <
these points might be enough to
way/it is claimed, he has smeared innocent
people*, those oil Leftist political persuasion
.attract,,# given manufacturer ttfr
but: not actually Communists,
this section.!,.
'5
just, perhaps,.—

Langer has been tolerated by the Republican Administration *
Qiily because it needed him to count enough noses to
organize the •
Senate. Just as the toleration of
McCarthy puts him in a'key and*'
influential spot as Chairman; because of the
seniority "rule, of the
Committee on Government
Operations, so the toleration of Langer/
h#s,-placed.him in the key spot of Chairman of the
important'
Senate Judiciary Committee.

Dakota is "contumacious" of something.,
transporting such goods from
The<
manufacturing areas; this-; most clamorous complaint from the Leftests
permits either somewhat higher,
against Joe is that he has had witnesses before:**
profits, lower prices to consumers, : him, acting lis a one-man sub-committee, .to a

,

All

all, therefore,

in

the

super-duper liberals.;

West "

-

to.mass attention within

the

new

portation has been
answer

a

problems.

new

As

growth

in

lies

or

not

be

can

easy,

U. S.

General

Investing

Carlisle

Bargeron

Yates

deal

by which the Administration entered into
with private power companies to build a
plant to
tional pov/er in the.TVA
area,Jn lieu of

Share

tinuously to expand.

In fact, he doesn't

a

permitting the TVA.con-

*

who

issue of

an

(par 10 cents) of U. S. Fi

¬

'*

At

'

.

intended : to

is

'

JF,--. Martin,

„

offering to
equipment,

of

products

new

and

,

new

products design, dnd for working :
capital.
U. S.

Fiberglass Industrial Plas¬

tics, Inc.
York

was

on

own.

Those

seems to me,

30 years,

which he did, but when

you

analyze it there

seems

Conn —Bernard

and

A:

Reynolds
associated

DeWitt

ciated
600

to

The

commentary

Stock

Exchange,

branch

office

in

have

Street,

opened

and

&

Co.

In

Boettcher

the
and

1952.

20,

new

It

Forms

'

glass reinforced plastics field. InV
itially the activities of the cor¬

first
;

two

of

years

existence,
tained, on

its

corporate

a

Stock

Exchange,

branch office at

under

the

have

firm

the

corporation
re¬
a - contract
bas?s, - the
services of an independent-Fiber¬
glass reinforced plastics firm to

develop
new
products
commercial application.
In

order

to

commence

for

25

announced
mott

&

York

r

manu¬

by

or

Peter

more

Louis J. Sneed, Jr.

P.

McDer-

management's, intention1
equip the plant (using for this
purpose
initial proceeds of this

Exchange.

At ■* the7

2%% Equipment Trust Certificates
To be dated

September 1,1954,

Exchange/
Weekly Firm Changes •

offering) so as to get into im¬
mediate production on the follow¬
ing units: Film cases; film reels;
beer and soft drink cases (with
and
without
dry-ice
compart¬

Company

Equipment. Trust, Series OO

christening of the Club last night,/
Peter P. McDermott,. senior part- '
ner of the firm, presented to each

New York Stock

to

<

Southern Pacific

-

facturing operation, the corpora-r member of the
newly formed club"."
tion acquired in fee on July 1/
a $500 United
States Government-"
1954 a plant located in Norwood,/
bond and a scroll.
Bergen County, N. J.
It is the

1,505,000

Co., 44 Wall-Street, New1-,

Stock

t

was',

City, members of the New

York

having

years

-

To

mature

"
-

$567,000 each September 1 from 1955

Issued under the

Philadelphia Plan with
25% cash equity

the

Exchange-*
following firm

changes:

maturities and yields

Transfer of the Exchange mem¬

1955

ered

by the Exchange Oct. 14.

1960

2.45%

1956

bership of Sherburn Prescott to;
Eugene L. Cullen will be consid-.

1.30%
1.60

1961

2.55

/ 1965

2.75%

1966

-

*2.775

Andre
was

Joins Paine, Webber
M.
Samelson, Jr. has joined the staff
of Paine, Webber, Jackson & Cur¬
tis, 626 South Spring Street.
He
was previously with Revel Miller

2.80

M.

RAPIDS,
Krensky
the

Mich. —Ar¬
&
Co., Inc.,

New

and

York

of

Midwest

has
branch in the Pantlind

opened

a

Hotel under
man

.Exchange,

the direction

B. Shaine.




1962

2.625

1967

1963

2.65

1968

2.825

2.30

1964'

2.70

1969

2.85

These certificates

;

B..«

.

„

are

offered subject to prior

sale, when,

as

and if issued and

received by us, subject to approval of the Interstate Commerce Commission.

Leavitt, M. Edwin Bry, andc
V. Fox, all members of

-

Eugene
the

New

York

become

Salomon Bros. & Hutzler

Stock

"Exchange^
the Ex-;
change firm of Spear & Leeds; 11;
Wall Street, New York City, on.
will

11.

partners in

Drexel & Co.

Union Securities Corporation

*.

Stroud & Company
With

King Merritt

(Special to The

Financial

Chronicle)

j
7

.

of Hy-r

1.90
2.10

On Oct. 8 the firm of Leavitt &-

Oct.

members

Stock

1957
Co.-

Bry will be dissolved and Phillip' r f

.

Krensky Branch

GRAND

&

Spear & Leeds Partners

LOS ANGELES, Cal.—Edgar

thur

Saint-Phalle

dissolved Sept. 30. '

Leavitt, Bry, Fox to Be

(Special to The Financial Chronicle)

New

de

1958
1959

"

1969.

The New York Stock
has announced

ments),' signs and letters; archery
bows; and mortar tubs. The com¬
pany
contemplates
additional
items for early production.

& Co.

to

NEW

ORLEANS, La.—Chas. L.r<
Merritt &

Stevenson is with King

Co., Inc.

Incorporated
.

October 7, 1954.

opened

management

ment of

Raymond B. Edelman;

/

-

a

160 West Broad

way,

•

with

for many years.

'NEW ISSUE

Formation
of a
Quarter-Cen¬
tury Club for employees and associates who have been with the/,

poration consisted principally of
developmental work. During the

was

SALEM, N. J.—Laird, Bissell &'
Meeds, members of the New York

°

Qr.-Cenlary Club

of

Francisco

he

was

Fiber-

Co.,

Company in Den¬

formed for the purpose of engag¬

ing in the relatively

E.

Mr. Tucker has

incorporated in New

March

&

members
San

past

Hotel Building under the manage¬

to be

—

asso¬

Laird, Bissell Branch

Blackstone

the

Calif.

become

recently been with Hill Richards

ver

TYLER, Texas—E. F. Hutton &
Co., members of the New York
*

Chronicle)

Schwabacher

Stock Exchanges.

Company, New York City.1

Schwabacher

Financial

Tucker has
with

a

on

in it.

FRANCISCO,

Market

I Hutton Branch in Tyler

.wohders how he could have lived
with the situation for

one

SAN

Chronicle)

become

a

are

the New York

and

of the

Mississippi Power and Light Co., one of the
Dixon-Yates group who has been, so- to
speak, spilling the works
against the iniquities of this ^company and its
parent holding
company. What he tells, as it sounds in the head
lines, is so rotten
that

Jr.

have

"(Special

Co., Inc., 872
Street, members of the Mid¬
west Stock Exchange.
Mr. Mar¬
tin was formerly in the unlisted
trading department of Burnham

interestea in McCarthy's personal finances should be

dinate official

further the research and develop¬
ment

his

Gordon

we

Main

,

net

the

on

Financial

But

with Hincks Bros. &

in knowing just how and where Langer
expects to pick up $100,000 in quick private
practice. Undoubt¬
edly there is that money around in the legal
practice but Langer
as a lawyer has never been
considered to be in that high bracket.
'
Langer, for several days, has been parading a former subor¬

*

use

proceeds from this
purchase.v additional

so

interested, it

berglass Industrial Plastics, Inc.,
at $2 per share on a "best efforts'*.
basis.

thejpursue this investigation

are

to The

is

smear

Tucker With

Hincks Bros. & Co.

.'(Special

bave the authorized

stock

,

Martin, Gordon Joins

funds with which to do it.

New

is
eagerly engaging in this
political situation we are in.

^BRIDGEPORT,

furbish addi¬

even

the crazy

contract

150,000 shares of class A common

City, is offering

/

,0f

committee

He has stated publicly that he is
engag¬
ing in the private practice of law to the extent of
getting $100,000 with which

York

*

be

\
What is just as important is that in the handling of a verysimple case, the Democrats have made it a
smear of the
whole
Republican party
The fact that a Republican Chairman

;

we read and
hear, the billions of dollars which we
poured out to foreign nations has gone down the drain be¬
cause of one man in our
160,000,000 midst.
But strangely enough there hasn't been even
a feeble- protest
against the conduct of "Wild Bill" Langer who, in the absence of
Congress, is out to smear a vast industry of this country, the pri¬
vate power industry, without a
hearing. He hasn't been authorized* "
by the Senate to conduct an investigation of the so-called Dixon-'

-

Corp.,

to

;It

have

Industrial Plastics
Stock at $2 par

still

;:;
goes without saying that the Dixon-Yates group have shown
lust about the most stupid public relations that
Washington has'
witnessed dm a long time. The entire
industry is very likely to
suffer from their conduct for
many years to come.

—

believe what

rewarding.

Fiberglass

told, indeed, that

.

pleasant

always

are

seems

,

as has been forecast
realm
of
planning,

the

which while

We

waves.:

Hottentots, it seems, have become completely.
disillusioned about our global
leadership ability, but not to the
extent that they won't take
any more of our money.
If we are to

always,

however, the answer to such dy¬
namic

air

boys, you mighk say, have had their
vengeance:
high Republican places who snooted them
It'

in

apparently, wrecked McCarthy but Langer
sailing along.
l
;
,,

it has utterly destroyed our
global leadership...
The French, the British, the Africans and
the

ably set off new growth, and prob¬
ably

the

on

problem—the

bad

has

-

the problem will prob¬

to

Both

*r

against) those

outcry in Ihe American press, or at leasf,- a
vast and influential segment of
it, as well as
from those who have the
preponderant voice

sphere of the developing Florida.
As always in a peninsula, trans¬

*

1

/

~

love for

•

This has been the subject of a tremendous.

Coast is merely the latest to come-

no

against him.T;lf

moves

,

¬

0.1

l2

The Commercial and

(1396)

l>

m:

ect.

By OWEN ELY

Company of Colorado

Public Service of Colorado

metropolitan

together

area,

serves

make available

output.

Sullivan Heads Slate

The companies

of Exch. Firms Assn.
John J. Sullivan, senior partner
of

area.
The company controls Cheyenne Light, Fuel & Power
(serving Cheyenne, Wyoming, and environs) and also several
gas subsidiaries. Revenues of about $59 million for the 12 months
ended June 30, 1954, were 55% electric, 44% gas, and 1% miscel¬
laneous.
Neither service reflects a very heavy industrial load:
electric revenues were 37% residential and rural, 30% commercial,

in full.

the $1.60 dividend.

on

nated

the

/

1953

357s

$1.50

ward

$2.34

1952

2.20

1.40

1951

49,000,000

2.10

1.40

30%-237s

43,000,000
38,000,000
33,000,000

2.40

1.38

2872 -2172

2.37

1.15

2374 -19

2.11

1.03

1978 -1674

29,000,000
25,000,000

2.26

0.83

191/4

2.34

0.83

20%-151/2

24,000,000
23,000.000
22,000,000

1.25

0.83

1974

-

137s

1.14

0.83

1478

-

113/4

12%

-

1274

1950
1949
1948

"1947
1946
1945__

last year.

1944

is currently selling $20 million first mortgage
bonds, and including this sale pro forma capitalization is about
50% debt, 20% preferred stock and about 30% common stock
equity. The management favors an equity ratio around 35% and
expects to increase the ratio by common stock financing next year,
company

1943

2.14

3iy4-26%

—'

——

-

John J. Sullivan

Presidents

the

economical and has not yet been approved by
The latter is still very nebulous, with a potential coct.
of around $1 billion.
It would require large water storage and
might provide about 1 million kw. (including 800,000 kw. in the
Grand Canyon). However, this project could hardly be completed
before 1970, if it develops, it is reported.
Nine privately-owned electric utilities serving the Upper Colo¬
rado River Basin, including Public Service of Colorado, have re¬
cently presented a proposal to the Congressional Committees on
Interior and Insular Affairs in connection with the proposed projnot considered very

| ★ ★
★

*

New Housing

Authority

★

.

2%% and 2'/2% Bonds

★

★

Interest

Exempt from Federal Income Taxes
now or

★
★
★

hereafter imposed

★

other States

★

Missouri Pacific

Reorganization Stymied?

had

and speculators
thinking in te

been

who

fairly speedy consummation of
Missouri

a

Optimism

past couple of weeks.
to the timing had
theory that

as

been predicated on the

the

latest

plan

,

had

hailed

been

"compromise" plan actively
supported by representatives of
as

a

all of the various classes of

rities. Last week it

secu¬

announced

was

known

whether

the

not

or

Commission will hold hearings on

all of the objections. How¬

any or

if

they do not hold
right ahead and
certify the plan to the court, it is

ever,

even

hearings, but

go

"A"

stock

of the directors

provide a
litiga¬
The end of this proceeding

tion.

still be years

may

Of

1.80%—2.55%

of

its

stock into
Income bonds has been completed

★

the

unexchanged stock has
redemption. Also,
Chicago & Eastern Illinois has re¬

★
★

Fed. Tax

Rate

65%

—

5.14%- 7.17%

80%

—

9.00%-12.55%

★

★

★
★

★

(Descriptive Circular upon request)

★

★

into

★

★

THE CHASE

NATIONAL

BANK

★

*

OF THE CITY OF NEW

YORK

★

★

BOND

★
★

★

Pine Street

corner

of

DEPARTMENT

Nassau, New York 15, N. Y.

HAnover 2-6000

it

October 5,1954

★

★★★★★★★★★★★★




for

Class

a
similar
"A" stock

The

bonds.

plan,

overwhelmingly

was

ap¬

its

approval

plication

★

★

Teletype: NY i-ioio.

the

to

held

up

could

Sept. 21. Ap¬
Commission had

on

be

been

the

submitted to the ICC

was

until the

1954 tax

fully evaluated as
original
version
had
con¬
punitive
provisions that

tained

have

made

any

such plan

★★★★★★★★★★

the

to

extent

in consummating

company

this

is

nature
tax

in

the

saving.

Interest

on

the bonds is deductible before

nomi¬

terms

of

riving

taxable

at

dividends

estimated

is

income

the stock

on

that

at

are

It

present- tax

rates, and if all of the preferred
is exchanged, the potential sav¬
ing would run to $383,751 annu¬
ally

nearly $1

or

stock.

the

share

a

the

on

Another feature is

bonds

would

have the benefit of

eventually
sinking fund

a

severely

readjustment
months and

frcm
of

th°

the

bnai^^«?s

twelve

past

share

common

earn¬

ings in 1954 will not match the
$4.63 realized last year, before
sinking and other reserve funds.
Nevertheless, there appears to be
little

question but that net, even
after allowing for the
funds, will
the

cover

dividend

rate

margin.
the

indicated

has

company

cash

balance

pected that
be

by

Moreover,
it

this

continued.

term the

is

$1

Pacific

plan, it is generally felt in finan¬
cial circles that the ICC will ap¬
that its

comfortable

a

though

even

only

coal

small

a

generally

distribution
Over

the

ex¬

will

longer

earnings outlook is bol¬

stered by the imnrovement

will

be

not

Chicago

&

picture

incident to

the

sub¬

earned, would be

changed into

hundred-year

a

It is anticipated that

movement,

along with
shipments, will continue
to expand.
/

3 With

like amount

5% o Income

ex¬

of

a

De¬

not

Wagenseller Co.

(Special to The Financial Chronicle)

Eastern

value Class "A" stock, which
is
entitled to preferential
divi¬
dends of $2 a share cumulative to
par

extent

are

nominated to

Nominating

Com¬

Eugene M. Geddes, Clark, Dodge
Co., New York; George R.

Kantzler, E. F. Hutton & Co., New
York; James Parker Nolan, Folger, Nolan-W. B.
Hibbs & Co.,
Inc., Washington, D. C.; Frank C.
Trubee, Jr., Trubee, Collins & Co.,
Buffalo; Homer A. Vilas, Cyrus J.

Lawrence & Sons, New York.

Maynard

C.
Ivison,
Abbot,
Paine, was chairman
Nominating
Committee

&

the

which
other

presented
members

this

slate,

being:

the

Harold

L.

Bache, Bache & Co., New York;
Walter
W.
Stokes, Jr., Stokes,
Hoyt & Co., New York; Max J.
Stringer, Watling, Lerchen & Co.,
Detroit;
H.

C.

Newbold

Newbold's

Son

&

Taylor, W.
Co., Phila¬

delphia.

Watson, Alloway Admits
Eva Frances Burnside will be
admitted to limited
partnership in

Watson, Alloway & Co., 15 Broad
Street, New York City, members
of the New York Stock
on

Oct.

Exchange,

15.

in the

rail-river

LOS ANGELES, Calif. —Laur¬

Illinois proposal each share of $49

the

the

With Richard Harrison
(Special to

The

Financial

Chtjonicle)

SACRAMENTO, Calif.—Milo
Roberts

has

been

staff of Richard A.

Sixteenth Street.

added

to

ence

and

Harrison, 2200

626 South

LOS

ANGELES, Calif.

—

A

the

change.

Inc.,

Spring Street, members

Los

Angeles

Stock

Ex¬

Mr. Casselman and Mrs.

mandatory and any holders who
wish to, may retain their present

Trezise

status—if

sey-Tegeler & Co.

they do not exchange,

King Merritt

(Special to The Financial
Chronicle)

thony F. Gangi is now with Ki
Casselman, Reginald S. Fleet Merritt & Co.,
Inc., 1151 Soi
Ann Trezise have joined the Broadway.

staff of Wagenseller & Durst,

of

Joins

Forbes Adds

formerly with Demp-

to

(Special to The Financial

Staff

Chsonicle)

DENVER, Colo.—Agnes N.

C

has been added to the
staff
Forbes &
Company, First Natic

mer
were

al Bank

Building.

R.

the

readjustment

decision

long delayed.
the

Fran¬

annual

coal

and

&

of

The company has naturally suf¬
fered

this

Missouri

San

mittee for 1955:

Proctor

mirrored

capital

following

which the present Class "A" stock

plants.

the

The

constitute

while
not.

ergy

its

of

ar¬

general Commission philosophy as
in

t

plan

a

Federal

stantial increase in the demand
for electric power fm- atomic en¬

bentures;— The- exchange -is
if

the Class
discretion

unfeasible. Considering wide stock
holder acceptance of the plan, and

Under
★

plan

income

prove
★

★

its

exchange of its

would
★

Rate

preferred

been called for

for

Approx. Taxable Equivalent Yields
Fed. Tax

nature,

ruary,

★

★

away.

constructive

more

a

part

bill

★

to

cisco; E. Jansen Hunt, White, Weld
& Co., New
York; Lloyd W. Ma¬
son,
Paine, Webber, Jackson &
Curtis, New York; William M.
Meehan, M. J. Meehan & Co., New
York;
Charles
L.
Morse,
Jr.,
Hemphill, Noyes & Co., New York;
Herbert O. Peet, H. O. Peet &
Company, Kansas City; Edward
Rotan, Rotan, Mosle & Cooper;
Houston; Hal H. Smith, Jr., Smith,
Hague, Noble & Co., Detroit; Ed¬
ward
Starr, Jr., Drexel & Co.,
Philadelphia, James G. Tremaine,
Gude, Winmill & Co., New York.

would not have.

proved by stockholders last Feb¬

★

1970-1995

★

will

extensive

earned

The major benefit to the

earned.

that

filed

-

be.

though they

even

cumulative

are

have

been

extent

payable on
only at the

are

common

base for further

the

to

will

bonds

new

whereas at the present time divi¬

income

not

the

mandatory
dends

objections

ICC.
The
deadline for such objections was
on Sept. 27.
At this writing it is

Payment of in-

the bonds.

of

the

rights and prefer¬
the 5% contingent inter¬

on

that five different group had filed

with

will

their stock

on

same

as

on
est

plan have had to revise their esti¬
mates in the

the

ences

est

reorganizatf

Pacific

the dividends
ave

★

Offered to Yield

Maturing

★

election

J. Barth & Co.,

man,

Chicago & Eastern Illinois Plan Before ICC.
Investors

★

★

New

Herbert S. Hall, Morgan
Stanley
Co., New York; Marco F. Hell-

&

which

Legal Investment for Commercial Banks, Savings Banks
and Trust Funds in New York and many

★

in

17.

following have been
for

the

Fall

take place

meeting

Nov.

of

its

years each to the Board
35 partners of member firms:

activated
★

holding

annual

on

The

and
★

Governors

is

three

Western Pacific's plan to exchange
★

★

★

★

the

York

expected that the objections that
SECURED BY DIRECT COMMITMENTS OF THE FEDERAL GOVERNMENT

of

Meeting. Elections will
at

is scheduled for operation about

★

Board

Association

period to the present effective capability of 4-34,000 kw.,
including 66,000 kw. installed at the Zuni Station July 1. A 100.000
kw. unit is now under construction at the Arapahoe Station and

Congress.

Vice-

G.

day from the Curtis Hotel where

capacity has been increased 177% in the post¬

proposed Federal hydro projects are the Fryingpanthe Upper Colorado River projects. The former is

Douglas

Bon¬
Bonner & Gregory, N. Y., as
Treasurer, it was announced to¬

war

and

and

nomi¬

as

ner,

151/4

nated

being the Colorado-

been

nated

probably in the second quarter.

Big Thompson Project with nearly 180,000 kw. installed hydro¬
electric generating capacity.
Substantially the entire output of
this project has been (or in the near future will be) committed by
the Bureau to customers presently being served by the Bureau
—local REAs, and public power distributors in Nebraska.
Thus
the project, which has been under development for many years, is
not in any sense a threat to the private utilities.

Starr,

Jr., Drexel &
Co., Philadelphia, have

26%

$56,000,000
52,000,000

-

Stock

& Curtis, New
York, and Ed¬

Price Range

Earnings Dividends

of

Exchange
Lloyd
W.
Mason,
Paine, Web¬
ber, Jackson

Firms.

selling around 39 to yield 4.1%, based

Revenues

of

Associa¬

tion

Common Stock Record

Year

1955

as

President

PUBLIC SERVICE COMPANY OF COLORADO

industrial, and 13% from other sources. Retail gas revenues
58% residential, 29% commercial and 13% industrial.
Public Service of Colorado has enjoyed very rapid growth as
indicated by a postwar increase of about 66% in electric customers,
150% in kwh. sales, and 102% in electric revenues. Gas revenues
gained even more rapidly with an increase of some 233% (by the
end of next year the increase is estimated at 275%). The company
is adding about 1,000 new customers per month.
Regarding cur¬
rent building activity in Denver, two 23-story buildings are about
completed, plus some smaller ones. Substantial housing projects
are contemplated, and building permits continue to run ahead of

by the company and its subsidiaries, the largest

same name, has
been
nomi¬

Payout is, of course, relatively low.

were

★

bearing the

;

The stock is currently

£0%

mid-summer next year. Orders
will be placed in the near future for an additional 100,000 kw.
unit for the Denver area,, probably for installation in 1957.
The question of Federal power projects in the area is of inter¬
est.
There are several multiple-purpose hydro projects of the
Bureau of Reclamation in operation in or near the territory served

President of the corpo¬

and

ration

August, and the management is hopeful that they will obtain a
substantial part of the increase, possibly effective Jan. 1.
The
increase would be equivalent to about 60 cents a share if granted

Co.

Large

Bosworth, Sullivan & Co., Den¬

ver,

Hearings were ended in

leaving about $3.6 million net.

gas rates,

t

their

million electric rate increase with a slight offsetting reduction in

wit^i other sections of the state, the

ver

Arkansas

..

Public Service has asked the Colorado Commission for a $3.8

the City of Denver and its

part of the system being interconnected. The estimated
population served is 920,000 of which about 675,000 is in the Den¬

New generating

Thursday. October 7, 1954
■
>ti •,*f\
| f

It*

I.

t.

,

program.

major

The

*1

I

existing transmission faciilties, con¬
struct and operate any additional transmission facilities necessary
to market the power, and purchase such power at a price which
would not exceed cost of power from alternate sources. Thus, if
this long-range project is approved (it seems to be favored by the
Administration) it can easily be geared to the private utilities'

Utility Securities

Public Service

tJtd

This outlined the willingness of the utilities to cooperate with

the Bureau in marketing the entire power
would

Public

Financial, Chronicle. '

UmwSA

i

tfm nt**) vw

4,

HIM

wt* w htti^jimrpmmirri

,

hwhw*

41

S^r^!r«jy^M»W5»^»TTlNwr-jr/'*tet-»

Number 5366... The Commercial and Financial Chronicle

Volume 180

(1397)

13

\

been

A Solution to Problem* of

figures to
The

By G. KEITH FUNSTON*

Stock Exchange

Mr. Fnnston,

calling attention to the difficulties and legal red
involved in parents making gifts of securities to their
children, reveals that the New York Stock Exchange has prepared a draft of a proposed statute, to be enacted by the in¬
dividual states, under which stocks could be registered in name
of a minor, with a custodian named also on the certificate.
Says proposed statute does not reduce protection afforded
children, since it applied only to gifts.
tape

:

,

T

haye a

*

problem

your adviee.
sonal

and

I

need

In a way it is a per-

problem

personal

to

and

personal to each of you.

in

its

me

But

much

broader

pects

as-

it

af-

fects

the

fu-

ture

scope

*

of

sfcareowner-

ship in America.

■*.-.■*

j

,.

.

true, it wasn't

was

gifts of securities to children is But we do need to update the
of the biggest headaches of rules on gifts of securities to

day that I had the

one

it.

prove

Exchange

whether
child's
The

the

name

just

has

children.

hpw it

name.

I

dwell

on

think

don't

how

I

Now

name.

We must supply all parents with
a simple and convenient way to
do what only wealthy and legally

sophisticated parents are now doing by creating trusts for their
children. We should make it as
easy for parents to give securities
to their children as it is to give

want to

a parent's
I have to
that

mind, that I would be unable

arrangement may be from a le al
viewpoint. Although they apparently don't know it, two out of
myself appointed her legal guard- every three parents who think
ianthey have given, stock to their
.Trying to be helpful, he sug- children "may not, in legal fact,
gested thall create.a^trust for my 'tiaVe
b^en successful in their atdaughter or have myself.appointed tempt.
^
•._*
^
*
'
-

them savings accounts

for I think, working together, we

in the first place so he'll never
complain about my switching to

out

troublesome

his

able to

about it. I gave the boy the stock

sur-

found that the stock

we

still registered in

was

real
cases

in

be

should

sell it for him and buy another
stock I think is better." The broker knows what's coming as the
customer talks on, "Dont worry

held,

was

gave us a

it

the

We

find a simple way for a giver to
retain some management control
over stocks as long as the child
to whom it is given is under age.

con-

in

was

In roughly two

of three

,

stock
or

answers

prise.

that if I had the stock registered
in her name, which is what I had
in

For lurk-

the securities business.

ing in the back of every broker's
ducted two consumer surveys. Al- mind is the fear that someday,
though the complete findings are he may. be held liable for handnot yet available, I asked our re- ling such a securities transaction,
search people to dig out the facts Picture yourself in the shoes of
on why parents do not buy stocks
the broker when a good customer
for their children.
comes
to
him and
says,
"You
In a survey representing a cross know, I never believed in all this
section of American families we red tape about trusts and guardasked
those
parents who
said ians., Some years ago I bought
their
children
owned
stock some stock for my son and put

Gifts of Stock to Children
President, The New York

that

sure

until the other

can

.

I would like

completely

new approach to this
I would like to suggest
to you that bur states provide, by
legislation, a simple satutory; device whereby a parent can retain
the power -of management over
securities he gives to his children,
The Exchange has prepared a

the customer sees it —he.
knows there won't be any trouble. But the broker sees it differently. He has visions of the
old stock going up like a sky
rocket and the new stock falling
like the burnt stick after the

problem.

way

-

help to solv.e it.

to present to you at this time, a

better stock for him." That's the

a

to sell it later, if I thought best,
unless I went to court and had

or govern-

ment bonds,
This is the problem that-I have
been anxious to discuss with you

__

I've been

anxious, to get
the benefit of
t

Jyourconstruc-

th

tive

account

ideas

about

it

be¬

in

w7th incomes aboveI$7,500.^Fbrty'

-

a savings
jjercejnt
the next

enig

in

U

-

fuHtoa

Keith

sold

me

the bond seemed to

in

promoting the geni that mrriauj^terMras underage.
welfare
of
the
investing Apparently they operated under

erai

public.

With

your

assistance

important problem

I

0|

in

the

shareowning

this

buvine

sidered

stock

for

not

had

but

CillAbren

l

,

i

L

"o"^ chlid
i5„^iv
'

i didn't think much more about

that

incident
I.

u

w

until

I

A.

o-

came

r?

said

this

SSl-fW.1:.1
wife, of one

in

was

part

a

their.

done

was talking to the

of your group.
She
quite
excited
aboit. the
Christmas shopping she's accomplished while she's been here
—

buying toys and gifts for her

sev-

"tooB'roihDlicated
'^'compucated

was

findings

are

...J11V.......

shirt

pretty

iu

0}.

Exchange. Since then I have dis-

method

allow

to

™h^h.?s,,c^ar.elbJ_r/^0r.n^S'

has

^so full of warnings about pitfalls and complexities that to
most parents it amounts to my
saying, "You had better forget the
whole idea." Many of these people

f

give

my own

I've

be

children.

always felt that it would
wonderful

a

thing

if,

every

year, each of our children could
receive, along with his toys and
games, a gift that was really edu¬

cational and of

believed
anri

that

lasting value. I've
for

a,

honir urhov*

Vhf

w

long while,

~*a~-

T

r

o

anideaI
.

,

f6.?

-

pf stock

their

in

I

course

m

t

the

called

W

lack

as

practical home
our free enter¬

prise system.
By explaining to
tier what her stock
certificate

of

what

of

no

it

means

of uniformitv

}5

ul

k

sever^

those

our

law

up«

we

date

to

in

u

>*

a

a

children

ITletting® upPUt?us,TfofS

to

deal

—

with

toe

with

pace

nomic changes

be to

register the securities in a
way — "John Jones, as

certain

Custodian for Mary Jones,
Minor."
The

stock would

—-

their

duties^as her
custodian would be spelled out by
the statute.
The

custodian

own

Any securities, whether listed

or nnbsted, could be given to a
;

>

Continued on page 27

solicitation of offeis to buy, any of these shares.
The offering is made only by the Prospectus.

This- announcement is neither 'art offer to sell, nor a
V

"/T;

j

economic

phe-

200,000 Shares

;
■

small circle to 8% million

ism

which

($24.50 Par Value)
•

'

(Convertible share for share into Class A Common Stock

in

democratic ^capitalism

Stock, $1.41 Series

Cumulative Second Preferred

people and this number is increasing every day. By the time
ino^rc
today's children are the leaders of
tomorrow this country will have a

true

-

Hudson Pulp & Paper Corp.

-

a

our

system would pro-

through December -31,. 1964, subjeet to adjustment.)

our

W^rice $24.50

economy

tick

-At the time I decided this I was
a college president and
had
no idea of theproblem X would

^

still

run

gift

into when I tried to make

of

When

asked

a

child.
I called
my broker
and
him
to giftwrap a stock
stock

to

my

own

certificate for my daughter to find
in her Christmas stocking he told

politely but firmly, that I was
wading into deep water. He said

*

direct

of

ownership of stock is
largely responsible for the fact
that
only two children out of
A

^of
cent

„/1A

boys

our

shoreowners.

It

is

'

Lee

girls—are

sad

but

to be

a

are

* Remarks

by

Mr. Funston

before the

.

Istrators

C—vention,
Sept. 29,1954.

New




York

City,

A. C.

Reynolds & Co.
Central

shareowner.

Republic Company

just said that the legal com¬

involved

is

the

biggest

stumbling block for parents who
want" to

VYa"! 10
children.

malco

While

i*ifts

of

stork

g;.r
I

have

to

,K 10

always

•V

.'A

31
lit.'

T.O

.1.

Blair & Co.

,i
/!

■*

October 5,1954.

'
•

Allyn and Company
Incorporated

(Incorporated)

?

I

,

Higginson Corporation

true

made in
our laws, almost every one of our
children will reach maturity with
no real comprehension of what it
means

■

-

and

that, unless changes

plexity
.

National Association of Securities Admitinational
Securities Admin-

Share

Copies of the Prospectus'may be-obtained within any state from any
of the undersigned only by persons to whom the undersigned "
may' legally distribute the Prospectus ip such states.

we Jiave-ownership.
The denial of the convenient right

me,

-

per

And yet today our children are
denied the greatest single teach-

"S'r" ™ing tool.toat

nTni nfwh!i makes
at m£f!lr

have

property or .buy and sell stock* ctpal for the child's benefit

.

tion with

would

to manage the
property in his care during the
child's minority and the power
to expend either income or prinpowers

Trying to meet toe demands l°w Dad to tamper with his son's
of parents who want to make inheritance from Aunt Minnie.

productive ""facilities
represented, I could give her a
will be owned by millions of more
Americans. Essential to the
economic system worked. And I
strength of such a corporate dehoped that, by spending or saving
IT eKn
ber dividend checks, she would Wcracy.wiU be toe,education of
jG(jay's youth to the workings of
come to understand our American
^
6
profit system. It seemed obvious
to me that a close self-identifica¬

then belong

to Mary Jones completely and
irrevocably and her father John's

place in the past -half century.
These changes in the American

economic'

a

themselves. We don't have to al-

children.

remarkable ecowhich have taken

system
have
indeed
been revolutionary. The modern
American corporation is probably

child's

parent would have to do to
a
gift to this child would

broad

L to let down don't bars one bit to
toe have to allow
it.
We
—

the

make

in

—

of

Under this proposed statute all
the

,

time

hlSi

condi-

custodian

their, rights, powers and

own

about

it's
*

~

...

to

shares of American business.

think

a

tory answer except to say that our
laws
apparently have not kept

from

a

agreement

Probablv

,

.

?
times. In 50 years
ny corporate -ownerslup has spread

thought, for instance, that

study

f
t

trust

i+u..
tions
only wealthy persons or
legally sophisticated parents have

years?"
To
To
this question I have ho satisfac¬

w 5 ;ire? the .^outstanding

for ttat decision

provide her with

th

of
u

form

.

formative

in
one of toe country's
leading corporations."'I< had many

reasons

*

Because

I suspectshe
jumo ahead of most of us on

a

a

^° °

don't like toe negative reply and
write me a^ain to ask, "Why, in
that. I know I haven't done
my the greatest capitalistic country in
Christmas shopping yet, although ^ world, isn't there a simple
I have given a lot of
thought to method to start our children out
the Sort of gifts I would like to as owners of American business

is

enacted

reserved power of management is

to

you look at it toe state of
the present law is unsatisfactory.
The
demand
of parents for a

narent

a

business

firm.

way

..

.

cimnie

his

take

and

another

/u
•
y uiun.uie.iu me
that there is a real need for a

the

to

\ral grandchildren.

i

if

statute,

so

per-

was

draft

by, any state, would perimt a para. protective ; hand on the boy's, ent or other adult to make a gift

simple metnoa to aiiow a parent simple way to give securities to
to make a gift of securities to a
children without a lot of legal
had the same trouble I had—and child.
sonal problem—personal to
red tape is putting the securities.
you some of them have gotten pretty
For years the securities indus¬
and
to me.
Let me show you upset. Many of them write me to
business on the spot every day.
what I mean.
ask how they can go about buying try has wrestled with this prob¬ And what is even more imporlem. I would venture to say that
tant, it is standing between our
Before we sat down to dinner stock for their children. My reply,
every one of our members firms
children and a real understanding
I

This

quest. He also-sees-a judge with

con-

different rules.

can

»

e

j

riockhe < sold., at the fathers re-;

par-

The predominant reason for their

I think these

be solved without m
any way reduring the
nrotection
to
whiVh
+wll tl uv
•
protection to which
the public is entitled.

had

survev

'■ ^biddetfnodding agreement... v
of securities to a child " with the
" i its a tough .'spot, for -our friend,r Power of management . reserved
inaqtiont
the one reason given 'the broker.
If he sticks, to hisi to the giver or a close relative
who%rnore often" than all others com- guns his customer may get mad,► of the child whom the giver
worry bined—was that
designates.
The holder of this
agift of stock accuse him of I being a staffed

the teller at toe savings bank nor
the man at toe post, office

securities

field and

j

and

bought her a governbond, even though she already had a-'fair number Neither

your

state

own

the

her

ment

you is the key
man

for

Christmas I

each of

cause

"

«

Instead I opened

g,

Incorporated

Shields & Company

14

The Commercial and Financial Chronicle...

(1398)

the fact

United States has lain in

Lawlessness in

embodiment of the

that it was the

High Places

political

faith," founded

ligious

By DONALD R. RICIIBEEG*

faith,

the re- edge a change of mind even to a
American humble critic. So I conclude my
defense of natural law with an-

on

the

of

/

people

Asserting the drive of American labor unions for compulsory
unionism,, combined with their open demand for monopoly
power, sheds a.startling light on the road ahead, one-time
NRA administrator attacks what he calls the lawlessness

most revered preceptors in
the law, the great Justice Holmes.
In one of his most famous dissent¬
of my

of

labor leaders and the threat of their increased political
power
threatens constitutional government.
Condemns the

to

Welfare

theory,

State and

decisions

trends

Socialism.

toward

Criticizes high

politicians in high places as distorting
and limits of the Federal Constitution. Concludes

the purposes

Individualism

be

must

dominant,

the

people's

severely many abuses of
labor

leaders.

checked

and

stant

I have criticized

liberties

inside

power

by

on

must

be

ment.

These
eliminated

or

our

every socialist govern¬
In these struggles the vic¬

tors,

who

government

force

will

win
by the coercive
political power, always

increase

trans¬

be

formed

of

these

a

more

and

hybrid form of

force

instead

into

social¬

labor

ism

econ¬

ii

is

diffi¬

cult

to

over¬

emphasize the
injury that the
leaders of

or¬

ganized

labor,
the extremists and the moderates,
the

faithful

and

the

faithless, all

drive

unions

for

American

ex¬

mo¬

a

nopoly control of all employments.
assert there should be no
competition
between
individual

They

workers,

nor

doctrine

is

between unions. This

simply

the

"dictator¬
proletariat" and the

ship of the
objectives of Marxian socialism
thinly disguised as an evolution¬
instead

of

program.

revolutionary

a

:»

What would be left of property

in

on

the road ahead: Com¬

garchy of labor leaders, and a gov¬
ernment
subservient to this pri¬
vate economic
power.
This is no
fanciful project.
This is just a

industry, and competi¬

But, now that I have empha¬
sized again the threat to American
idealisms of liberty that the
pro¬
grams of organized labor hold to¬

day, let

hasten to do justice to

me

hundreds of labor leaders and
millions

their

of

either do not

see

followers,

able to dictate terrhs

/and conditions of employment,
quantity and quality of production
and
inevitably the prices, variety
distribution

products?

7

would

legislature,

of

all

be

important

'•

"

*

representative

left

of

a

government

executives

dominated

and

>

the

by

free,
with
the

voting

power concentrated in these labor

autocracies?

the evil in these

•

of labor

unions and

managers

industry will substitute
service

service

as

unselfish

private

self-

the motive power of in¬

We

iron

for

of

need

curtain

not
to

drag aside
expose

the

folly of this assumption.
The
tyranny, torturing oppression and
are

labor

only

of the

in

an

the

Soviet

immediate

eventual

fate

of

Union

example
any

peo¬

ple who abandon the security and
freedom of competitive self-reli¬
ance

and submit to

control

of

their

a

monopolistic

living and

their

livelihood.
4

Right here in the United States

we

lif

of

out

the

faith

dent in the United States, is assl^dly a "wave of the future
d

and that the progress of

committed, to that
+lr C°n+

1S permanently
™ave.
I

sideration the thought that

most

a

religious

those

of

who

officials

enforce

to

Our

Constitution, like the Dec-

laration

"Natural

Law"

of

Independence,
was
written by men who believed in
what is called "natural law," that
is eternal rights and principles.
It

is

a

brilliant

unfortunate

most

lawyer
have

and

liberal

Justice

as

permitted

that

ideas

interests

and

themselves

serve

their

the

see

big and little labor unions
extending both benevolent and
malevolent

controls

over

millions

of workers engaged in the most
vital industries of the
country. We

to

and

threat

the

of their

the

thinking

common

can

people.
In the last 50 years
the American people have become
rapidly and profoundly a lawless
people.

By this

I

that

mean

have

largely abandoned
spect for the Law which
political
saken

faith.

belief in
certain

We

political

our

the-

sistent

The

should

achieve

to

Important

light of

This is what

was

re¬

our

f'ore-

Tightness of
of

a

con¬

which

the

as

Su¬

Land.
meant for many

decades by the constant assertion
that
not

we

had

of

a

government of
We

men.

laws,

established

a

Fundamental Law by the difficult
but educative
process of writing
constitution.
Then we held that
this Supreme Law could
only be

a

changed by

a new, a difficult and
educative process of
writing an
amendment to our Constitution.
In the preservation of this Con¬

an

stitution

and

only

Amendment,-a

one

process

of

sacred

obligation
imposed on all public officials
uphold the political faith, to

was

to

maintain

the political
religion of
American people.
Public of¬
ficials of the state and Federal

the

governments,
tive

and

the

at

Task

American

Bar

faith, I would
energy as I still pos-

devote such

believe

in

my

American Bar, which is the main¬

natural

is

tenance,

wishes have

in the

that

true

beliefs

and

No

that their foundation

tertaining and
there

feeling

is

an

end

in

the

them

Constitution

nomic

"If

imagination

our
u

parts

as

from the

strong
• J*

of

outside

of

even

of

legislative, execu¬
judicial, have ignored

and

violated this obligation more
more
in the past 50 years.
Theirs
is
the
sinning; but the

so

un-

and eco-

be

to

seems

Holmes
that

the

But

is that

upon

faith in eternal

virtues

and

construct their

of

his

fortify

George

plea with
Washington, who

Farewell

my

of

and

nnrnoses

Address

said:

*

"The constitution which

at any

time exists, till changed by an ex-

plicit and

authentic

the

of

act

selk tt ™hole Peop^,,is "sacredly obliga"

must

society and to

reg-

™.aP J"

warned

-

us.

inen "e war
us.
"Le* #there be no change by
feeling that if Justice Holmes had usurpation; for though this in one
lived to realize and to participate instance may be the instrument
in the present world-wide struggle °f good, it is the customary weapulate

their

with

and

lives

that faith.

accordance

have

materialistic

a

strong

a

atheism

religious faith in the divin-

a

itv of

the human

and

man

sity that he be
and

in

I

find

his

left free

neces¬

to

seek

salvation,

own

the

great Justice might no longer feel
that it is naive for a jurist to believe

in

law.

natural

I

boldened to this conclusion by an

experience which I had
in

man

Holmes.

made

was

a

in-

an

his

of

opinion
incautiously

I

and

case,

him

sent

there

criticism

one

had

I

in which

cidental
in

young

venturing to disagree with 1

Justice
sneech

as a

a

copy of mv address
which was otherwise laudatory of
his views.- He wrote me in long-

hand

a-

ment

on

somewhat

founded

com-

course

are

destroyed."
In
1904

the

100

years

from

1804

only three Amendments

adopted

the

to

Thirteenth,

to

were

Constitution—the

Fourteenth

Fif-

and

teenth, after the Civil War.

Since

Amendments

have

seven

been
adopted
which
cleatly
demonstrate that the Constitution
can be lawfully amended in most
substantial
people
new

whenever

.ways

have

been

educated

the
to

a

expression of their political

faith.
These recent Amendments may
not have all been wise, but they
at least commanded decisive popular support when adopted.
The
Prohibition Amendment was re-

practically dumb- • pealed; but instead of national
by writing as follows:' regulation of the liquor traffic

me

Patterson

by which free governments

he

"The notion

and

favorable

remarks, in the

my

which

of

on

em-"'90*

am

v.

that I expressed in

Colorado

was

simply

the Pec-ole es'ob'ished f'r/lv the
State right of ocaj se'f~
e_"

see

ih* root lit ^ innnronno
onri
the result of ignorance—and i en¬
I
deavored to correct it in Schenck

ment. This popular law-making is
significantly in contrast with the

and

v,

U. S. (249 U. S.) and the other
'

slead* trise °.f,a centralized government
which
has
been
made

responsibility of encouraging the

leaders of undoubted integrity. sinning rests upon all the
people.
patrotism collaborating with
There is no substitute for a re¬
revolutionary fanatics, racketeers ligious faith in
maintaining the
and criminals of the worst char¬
morals
and

acter.

We see, in the quarrels and
internecine struggles of labor or¬

ganizations, examples of the

con-

*An address by Mr. Richber* at *he
Annual Meeting of the Maine State Bar
Association, Rockland, Maine.
„




There is

no

mores

of

a

politi¬

cal

faith, founded on a religious
faith, in maintaining the integrity
of

government.

a

value

)

of

the

The

enduring

Constitution

of

the

cases."

possible,
It

people.

a

substitute for

™

espionage

as

tice

be

may

it

was

to

of the

write

so

as
me

surprising to
that

a

a

opinions.

letter

as

a

one

of-

But I treasure; this

notable

ments

of

not

by

the

lawful

amend¬

Constitution

through lawless abuses of

but

power

demonstration

The Yielding to the Welfare State
In

justice

ficials

ignore

or

limitations
First

came

World
tive

plunge

our

into

a

War, with all the impera¬
demands

Wilson

a

action

for

would convince
as

constitutional

their powers.

on

Lincoln

a

that

that

well

as

of

necessities

self-preservation could not afford
10

jfieja

law.

ordinary restraints of
came our greatest de¬

to

Then

pression,

with

millions

of

dis¬

tressed citizens clamoring for gov¬
ernment aid and answering legal

objections with
of:

"We

the harsh

can't

the

eat

candor

Constitu¬

tion."

So

had

we

the beginnings

of

a

socialistic welfare state which the
need

for

centralized

the Second World
further

ship

justify.

authority in

War seemed

Thus

educated into

was

to

citizen¬

our

actual

an

disrespect for any legal or moral
rule or principle that might be
opposed to the immediate relief
of

distress

artifical prosperity.

it

maintenance of

the

or

When, for
that

prophesied

was

War,
with a terrific drop in government
purchases, would create vast un¬
employment,
demand

spending.
party

there

for

a
great
government

arose

new

Politicians

of

every

urged to increase reck¬

were

lessly

our mortgages against fu¬
generations, to depreciate the
savings and reduce the security
of millions by
further inflation,

ture

and

government into

more

profitless projects with
consequent unfair competition and
more

injury

to

private

enterprise,

to

lusive

to

these

of

purpose

employment

providing full

who
through organization leaders were
persistently advocating a policy of
for

less work for
This

either

the

and

full

dependent,

were

of

use

more

ma¬

workers,
thus
difficult the goal of

more

have

feat in

course

produc¬

less

employment.

would

of
the

reduce

solvency

compel

making

pay.

policy

which prosperity and

upon

national
or

more

labor^

would

workers,

Such

policy

a

doomed

been

de-

to

earlier days when the ex¬

ploited farmers

were required to
the cost of political favorit¬
for industry.
But we had ar¬

carry

ism

rived at

a

politics.

Now, with most laudable

motives,
political

votes by widespread

favor

to

support

for

ernment

which

its

mercenary

had been found to

ways

buy enough

of

era

new

majority

win

paternalistic

a

could

gov¬

good

make

so long as its bonds
floated, taxes imposed

promises

could

be

inflation

and

trolled

sufficiently

that

so

national

ruptcy could be postponed

con¬
bank¬

the

as

problem of the next generation.
Pursuant to our

new

mercenary

politics the agricultural vote was
bought and paid for by billions of
dollars of subsidies which insured
that all farmers

the

faithfully serving
Father in Washington

great

should be able to live

terially

as

well

ma¬

much better spirit¬
ually than the well paid workers
in the congested—and historically
and

wicked—cities.
In

addition

to

the

purchasing

support of the organized workers
and
new

of
the

the organized farmers, our
politics also found a rich vein

vote

norities.

major

A

of

all

espousing

in

production

causes

mi¬

substantial

political discovery of

importance

finding out that if

made

was
a

in

government

openly favors the special interests

by public officials,

rash young

lawyer who had criticized
his

you

great Jus-

Supreme Court would

candidly to

litical leaders have been subjected
almost irresistible pressures to

to

chines

to

men

integrity as the guiding
principle of government. < Our po¬

tivity
me

opportunism

for moral

variety of taxes—all for the de¬

written.

was

people of the Lnited
<that

of

materialistic

greatly since that Con-

living

tw!?h

Let

only yielded gradually
tendency to sub¬

world-wide

a

keep on increasing the burden and

bound-

ourselves."

to

stitute

have

of

our

imagination and vision must have
■eternal

remain

only be made in the manner pro*-.
the Constitution, that is,

lives for ends

our

answer

Holmes

that the

vided in

in

The

of

United

skins,'it justifies the

our

sacrifice

the

should

conditions

stitution--

inseverable

beyond

the

contend

point which. T insist

rest, and to extend

interest

ary

is

+«

ourselves

final

essay,
conclusion:

final

a

he

same

States have

to rush the

would

one

changed
reached

defense

of

changed when the social

and

it."

to

and

States.

transcendental basis

a

sense

support

Constitution

by la¬

must concede that

I

the end of the Second World

sess>

con-

the
"It

between
we

scoff

of power

abuses

leaders)

example,

Most

In the

law, he also wrote:

some

conduct,

established

once

our

have

and

of

course

to

we

religion—our

eternal

principles

him

jurist to

a

increased

political power to overthrow our
constitutional form of government
has
risen
from
ad
underlying
in

lead

bor

the political leaders of the United

an

and

salvation.

own

Confronting the

his sophistication

advance
indi-

to

against

yidual aspirations of human be*n£s who instinctively seek to

such

minded

Holmes

with which to im¬

men

their

pose
their

Belief

in

master

of

it.

The

labor leaders

,

competing

public

slave

,

This quotation I commend to all
those who feel that the rising tide
of socialism and paternalistic government, evident throughout the

beneficent wave of the future had
nse ,in * f American Revolu-,
When the beliefs of the tion. and that what we are witpeople
change
they
have
the nessing today is only a counter
power to rewrite their constitu- revolution.
This is really a retion.
But until they themselves actionary
revolt
carrying
the
rewrite their Supreme Law it is w°rld back toward primitive uses
the primary obligation of all pub- of government as the instrument
arise

political

help¬

/ The truth is that the lawlessness

preme Law of the

the

the

theories

economic

Then,

programs or feel themselves

we

'

precious delusion of so¬
cialistic theorists that the substi¬
tution of political
monopolists for

dustry.

embody

must

men,

and

which

and

less to reform them."

a

private

of

to

who

public opinion of the Ameri¬

were

What

founda-

tenuated

evade

so*

write it.

compulsory unionism,

pulsory unionism, no competition
between workers or unions, com¬
plete monopoly power over in¬
dustry in the hands of an oli¬

tion of private
management,' when source
the
autocracies
of
huge
labor* and
unions

stead

the

as

government of laws in-

a

social

combined with their open demand
for monopoly power, sheds a star¬

tling light

is intended

not

were

world and unhappily far too evi-

belief that any constiwritten
by
free
men,

of

cock¬

in

ganized labor should have

It is

labor

tion

things that

of

test

been

doing to the Amer¬ candid
summary of the announced
the objectives of the
outstanding lead¬
way of life.
The fun¬ ers of American labor.

by the most influential
powerful leaders is that or¬

courts

of

of government and

damental

and

per¬

are

pounded

rights

The

laissez

of

or

the

not

have

We

of many

philosophy openly

together,
ican form

ary

democratic

State

is

"Certitude

certainty.

and such knowledge as I have
cept of natural law.
Yet in the acquired im long practice of the
notable essay which he wrote, in }aw> to what seems to me the most
which he said that it was naive important
task confronting the

American

and

upon

of

Compulsory Unionism

and

omy of a free
people will
disappear.
;

Richberg

more

which

in

the free

R.

and rely
tyrannical

powers,

suasion.

constitutional
liberties

Donald

that goes

power

paternalism
of the

of

relation

It is my

tution,

struggle for

the

to

which
In recent years

whether
organic

the

citizen

particular economic

a

/aire." (198 U. S. 45, 74.)

be preserved.

to

are

if

embody

and

and

is not intended

constitution

"A

from Justice

dtil.er quotati()l1
Holmes,
sure

ing opinions he wrote

which

court

issue with one

Here I must take

of the breadth of mind of a great
man who was willing to acknowl-

Thursday, October 7, 1954

public

of-

(as I have heretofore

ex¬

of enough minorities

jority

can

be

a

large

regularly

Continued

on

ma¬

accumu-

page

36

Number 5366... The Commercial and Financial Chronicle

Volume 180

(1399)

15

private, agency collects and pub- value to the retailer or wholeFaith in Statistics
it has to be paid for. saler who operates. in one city
How " good
are
our
statistics?
We tend to take for granted that; where
the figures are withheld < Actually,
very
few
series
are
these
general
purpose
figures to avoid disclosure.
foolproof. Nevertheless, faith in
could only be collected and pubMuch
of the legislative diffi- statistics passes all understanding,
lished by the government; it has
Culty of the Census Bureau stems The one merit of duplication in
to be a subsidized operation. But from
the
fact
that
the
"grass- collecting and publishing statisthere are a
number
of
private roots" constituents in the mar- tics is that it helps to temper this
a

How Government Can

Help
Help Itself

Business to

By EMERSON F. SCHMIDT*
of Economic

Director

Chamber of

Research Department

Commerce of the

U.

<

.

enterprises that do collect and sell keting field make and

S.

general economic intelligence such

basic contr'butbns government can
hand out to business, lists as four maior categories: (1) fur¬
nishing economic and statistical intelligence; (2) acting as
business umpire, by making legal rules and regulations; (3)
exercising its power as nation's "biggest industry"; and (4)
using proper fiscal, monetary and credit policies to mitigate
economic instability and to foster economic growth.
Concludes,
"prosperity is our most important domestic target."
The

basic

contribution

government

needs

which

make

to

help business help itself is to
its

erate

affairs

in

to
op-

way which
stimulate

a

will

s_t able

eco

nomic

growth

and

expan-

i

s

The

o n.

maintenance

of

prosperity

is

one

our

single

most

important do¬
mestic
1

probIf

e m.

we

solve this one,

all

other

in¬

ternal

P.

Emerson

prob¬

lems

become

manageable

Schmidt

the

and

mar¬

keting problem will be less for-

are

-

w

jor respects:

'

:

•

,

Through the services to
business, particularly in the form
of

economic

statistical

and

ligence, government
reasonably reliable
indispensable

sive,

intel-

furnish

can

business

ehen-

comp

facts

executives

help

to

make

policy

^—

decisions.

gal

rules

and

serves

umpire.

as

It

can, thereby, - thwart or stimu¬
late individual initiative and en¬

terprise.

There

Government

is

"big¬

our

gest industry," and for this reasjn
its

weight

the

upon

dominant

is
predomi¬

economy

least

at

or

(4)

Through government fis¬
cal, monetary and credit policies
and
aetions,
substantial power
may
be
wielded
to Khitigate
greatly economic instability and
to foster economic growth.
Economic

and

While
been

enormous

made

in

has

progress

speedin

j

erable

.

lag

.

the

in

release

of

data

fields of statistical and

many

nomic

intelligence.

in

eco-

One. of

our

great corporations for many years
assembled a daily balance-sheet
and

daily income statement

a

fact

a

which

-tance

sj guests
the importimely data.
Lacx of

of

timeliness

is

perhaps

statistics.

ment

erage

is

More

details

downs

But

also

groups

marized

follows:

as

disseminate

ancj

mQre

quickly and cheaply.

.

/2v

Th

v

able

are

willing7

and

them

no

-hang

/5\

and^ desires^ of conSome
of
to

on

They

pieteness

police

can

and

that

if

our

efforts

it

had

the

are

been

for

not

would

censuses

have fallen by the wayside,
Without periodic census

checks,

not know whether what they

is

unwarranted.

have

true at times.

is

for

demand

ernment statistics appear

-

gov-

to be

in-

constant state of

a

their

of

cunniv

supp.-

un(jer-

needs repeated revision. Method°|°Sy needs frequent reexamina^on

and

wp

havp rinp«

Probably most businesses

successfully

operate

rectly using
and

without

thankful

are

di-,

government sta-

any

for

this

Many of them, of
them via secondary

use

sources

such

the

trade

as

it has been
government ought

t the

toecontinue

this work for the fol-

lowing-reasons:
•
®

arithmetic

the

on

page

it's not

* ("P I Jt'-.f a ^a—1c 80Vf3rnma
?P°™b,'>ty to collect and pub-

trial activity.'
(2) Government series are more
apt to be "unbiased."

and

newspapers

Others havestatistical, market- and
press.

■

confidential

(3):.The

data is better

,

.

status 'of;

insured under gov-j

ernment collection.,

state of affairs!
course,

even

Continued

theirover-' ^h"' data*on economic and indus

0f

or

that what

nr

°I ™at. ™at we have does

'

tistics

disequilibrium
always complaining

is

Every series-

more

ed th

Certainly this
Supply and

prices de-'
is right? ;

faith usually evidenced in statis- i

quantify
a
sophisti- statistical needs
cated may argue that no statisticsQn th
contrary
are
better
than
poor
statistics,
a
The

;

n

^

(4)

series

Government

availabb,

often

aQSociations

are

trade
restrict
dis-

whereas

all

to

trihntinrr^-

(5)
Many - trade
associations
departments. lack
qualified statistical personalways pushing ah nei
the frontiers and want more sta-,
(6)' Government collection oh
tistics:
They have an insatiable $ata is not hampered by the posappeti.te for them.
They -want
economic

research

The

are

latter

improved. .-They want, them

faster.
the

Some go so far as to urge

desirability of government

timates

in

advance

of

the

es-

com-.

sibiiity of antitrust charges.
v
(7) only the government camsecure-adequate coverage, in,;in-,
dustries Composed of many small
units.

plete collection, processing and
publication of the final, figures,

conflict.

All

of

us

statistics,

cov¬

(8) Government series provide
continuity1
and
consistency
of;
impatiehce traces tct series arid can be combined in agdisposition of some business1 gregate or index series.1 V

However,
more

covmu-

time

an-

or

lack of adequate

the

work

this

of

statisticians

in

of

need

benchmarks

and

anchors'

which

they
hang their reports to the top

may

office.

They
more

on

demand
interim

more

sam-

estimates,
tlasn releases, etc.
Others, with
more
self-confidence, are willing
to wait for the final figures.
As
the

the

to

of

type

and

distribute,

conflict

There

data

should

government

n-ocess

able

of

which

-collect,

consider-

opfnion

prevails,

be

general

to

appears

agreement that basic censuses and
such
indices
as
consumer
and
wholesale

prices

are

a

proper

government function
The
holds for general wage and

data, data

on

GNP and

on

Commodity

exports
similar

same

heavy

These, two

of

cost

and

of

sets

conflicting

much government can and

should

help business to help itself. The;
conflict is further sharpened by.the fact that the government
lects data for its own uses as
as

col->
well

f°r public' consumption.
There is a general agreement

that wb°"*e the Government already collects basic data but special sectors of the economy reQuire further processing or break-

downs, the government ought to
make a special charge for this

special service on the ground that
and imports,--it is not of general interest to the
aggregates,
taxpayer.
hour

Industry

Data

on

In

Censuses

it

addition,

is

generally

agreed that the government needs
commodity and for its own operations, and priTrade associations vate business could benefit there-

industry data.
have been collecting commodity
and
industry
information
for
decades. The materials pub-

lished

in

many

official

ment documents
come

govern^

furthermore,

from private associations to

from, periodic benchmarks established through annual, biennial,

and

National

better

statistics.

Chamber

has

had

The

for

a

number of years a Committee on
Business Statistics which keeps in
constant

touch

and

*An

Seminar

with

these

communicates

address
on

Sept. 30,

prob-

the

re-

by Dr. Schmidt, at the
Marketing, Washington, D. C.,

1954.




and

students

tend

to

agree

that

the

government should limit itself-to those areas in which there
is

a

broad
broad

general public interest
that

private trade
group would
concern itself with the problem.
But even this is challenged by
some. Whether the government or
_So

association

or

no

other

one

batting

would

seriously argue that a player's
is based on luck. In that average

average

there will be

unlucky

some

But

outs.

quintennial, and decennial cenAppropriations for
such
special* or regular censuses have
been hard to obtain. This- is due
in part to the fact that probably

lucky hits and
over

the

some

course

of

a season

the batter's skill is the dominant factor.

Skill

counts

just

batting

averages to prove

Don't be
guess

is

as strongly when you invest in
just don't have individual

one

as

it.

of those who thinks "one man's

good

as

another's". Seek professional help.

suses.

taxpayer a far greater extent than is complus the heavy cost to the com- monly realized. The government not one company out of a
pany in
reporting to a govern-- reprints the data and then it be- hundred
ever
has
occasion to
ment
agency
must
also
be comes "official."
use
census
reports
directly,
weighed against the use'ulness of
in
principle,
most
taxpayers The support for
these cenmore

No

securities. We

special

the

to

*

generalizations
may
be
overdramatic, but they suggest the.-,
unsettled nature of how and how

The greatest conflict of opinion
turns

many

one
e

the

urged.
b.eak-

'more

'

at

but

statistical

most

least pait.ally in

other lament t

Part

comes

largely

from

too

number of manufacmarket aild reseaich
consulting concerns. The census
?or distribution, for example, is
mvaluable to national firms setsales Quotas- ^ lsn * °f muc
limited a

iurers ,and

I Business

August, 1954,

Record,
page

Conference

302.

Board,

,

] Anyone who has ever collected*
original data, processed and pub¬
it, knows that the abiding

tics

'industry ought to be selfsufficient"andtake'eareof"its own been using is stnl accurate-

to

appears

phenomenon.

commodity

both private series and other pub-

lie data may become seriously
data distorted, or at least users may

of

,

lished

the com-

accuracy

sensitive

viate widely. Which

(6)

-

constantly
and-

detail and

more

erage are at

lems

and we

appropriations

told

better

thread

every

these

<

student population into the labor

force failed to translate itself intograss-roots support for them. The > a statistical rise in unemployment,
u- s- Chamber of Commerce was is enough to make one wonder. A
a
public series on
very active this year in securing private and =

fndustrv'heedsCl°Sely adapted to

way

statistics.

of

which

course,

deviated widely ehough to initiate
policy of combined monthly releases. But we don't know whetheir
the marriage is now producing
purer
offsprings. Certainly the
fact that in June and July, during a-general sidewise movement
of the.economy} the entrance of the
a

some attention might
be given to development of more

data

the

iect

value at the local level and
interest could be

published,

Trade associations can col-

(1)

govern¬

greater

demanded.

are

faster,

the

complaint about

common

tual

tastes

sumers

the

up

collection, processing and releas¬
ing of data, there is still too long
>

is, of

pling,

Statistical

Intelligence

a

trade

by

similar

ing came last winter when the
data on employment and uneirtployment from different bureaus-

have

censuses

stimulated, the periodic difficulty
of getting appropriations would be
greatly
minimized.
Since
both
government
and
business need
these benchmarks, even when they
are
frustratingly slow in being

for greater colassociations and
may
be
sum-

argument

lection

these

„

nant.

■

The

of
completely satisfying the innum-

thom

(3)

own

data.

government, in determin-1 to collect more detailed data on
policies and in carrying a more frequent basis.
out its programs, and the business"
They can secure better coct:ecutive, in planning produc0perati0n of industry members,
tion and distribution, could bene-r
(4) They are able to collect,
fit by more knowledge, more factscompile/ and distribute figures in
and better insights.
•

elaborate

Government makes the le¬

(2)

its

proven

that

local grass-roots

its

,

,

with

along

blind faith. The most recent test-

can make
first-hand
use
of

no

data. If it could be demon-

strated

users

them

or

census

Both

ing

not fit.

(1)

lishes

agencies and Congressional Committees.
I '

someone

policy and action
important in at least foar ma-

little

Corporation. Ap-

of these data regard them as thoroughly reliable
and indeed the government pub-

parently.

suits of its studies to government

midanle.
Government

W. Dodge

F.

as

Dr. Schmidt, in discussing

•

<

lishes data,

The Member Firms
of the New York Stock Exchange
spend millions of dollars annually in an effort to provide
intelligent help to you with your investment problems.
This is done
for you. Why not take advantage of it?

DREYFUS & CO.
Today's Methods For Today's Markets
Members New York and American Stock

Exchanges
Leading Commodity Exchanges
Corporate and Municipal Underwtiters

50 BROADWAY• NEW YORK

4, NEW YORK

•

WHITEHALL 3-4140

34

16

(1400)

The Commercial and

'! hf'S*'

following
had

THE MARKET... AND YOU

its

which

Probably

;

led

to

Misconception

a

no

more

misconceptions
affecting Standard
Jersey and its affiliates,

such

as the current plan to
acquire additional stock in
Humble Oil, concerning
^

Which

were

reported

in

The

partly

arose

that

Creole's

parent company tax accounts,
the company had offered cash
for a limited number of

shares.
For the Humble

Aviation

Bendix

diate

ward

♦

.

,

*

the

other

exchange,

hand,

particu-:

Among the issues that showed
£ood ability to sprint ahead-

when conditions, were right
realizing after each for- were Kennecott Copper, and
surge. It bounded ahead>^eyno^s Petals. i
great extent by imme-

all

the Humble

shares

in

was some

half times

three and

%

*

*

* ....■

Arv

Sturdy Steels
Steels were rib

'

less.sturdy

one-

cuperative power after its
higher. Unlike proposed merger with Youngsthe
aircrafts, the town Sheet ran afoul of the

public's hands. Adding to most of
Jersey's price for the issue is still
present holding of 72% of the somewhat short of being an
issue and needing a minimum all-time high.
Launched in
of '80%
to derive the tax the rosy year of 1929, Bendix
benefits.
So a condition of sold well above par only to
the offer is that at least 8% lose about 100 of those points
the

the confusion here is

of the stock must be tendered

to reach

the

This

was.

strued

as

would

required level.
mistakenly con¬

the maximum that

be

accepted for ex¬
change, which isn't the fact.
Also in the Creole arrange¬

^ s.an^ below

!?c

JtLf
Twu
Jbe $50 level until the World
WarHboomin aircraft issues
i

xu

in

w

1945.
^

^

Another
to

issue

officials

anti-trust

in

Wash-

.

,

that

to keep

"free riders"
complicating the deal,
record was set prior to the

keep

*

Chemical shares had occasional spells of popularity,
notably DuPont which put on
a

C0Up]e 0f spirited one-day

.

,

helped

behind

the

the SEC

effective

date of

registration.
*

*

#

*

*
,A

xt

t

Aircrafts

up

The

conditions

world-wide

have
Rails

continued

in

of

feeling regarding helped them shake off the
persistent refusal to follow
is one of stigma rather well if the high
with the industrials
moderate optimism, continued level of prices for the group along
to buoy prices in this
They
group generally at the moment is mto new high territory
this week. Standard of Jer¬ the criterion.
It leaves the
still some points below
oil

issues,

which

nudged its year's high textile group as the leading
along the way to new "war baby' group although
all-time peaks and well on its in the face of many forecasts

sey

farther

way

toward

duplicating the

that

the

corner

has

been

*he hl§>? pomt reached last
August before the correction
se* ln
mon j?'
?Plte ma"y fenous attempts
to prove that the present era
is one where it isn t necessary
°r the ral1 m?ext ta co.nf!rm
the movement of the indus¬
.

& Co. as.Nor-

ris,

Allen

limited,' with

,

offices at

e'

u

ident

C.

-

o s

J.

Allen,
Presi-

"dent.
R

A,

Pres¬

and

L,

Vice

-

e,

F.

A.

G.

D.

Adams,

K.»

Hanley

firm

new

J,

V. Brooks and

/

P.

R.

Paynter,

Bruce N orris

•

Net proceeds from-the financing
will be used by the company to

e

r

Norris,

at $5. per share is

;

are

B

being made hy. George F. Breen.
The shares are being offered as a

speculation.

200

Street.

Officers

stock of General Nu¬

common

ln-

the

of C.C. Fields

Com. Stock Offered
cleonics Corp.

Anf

—

of

corporatiioii

Public-offering of 59,500 shares

are

will

directors. The
membership

hold

purchase, inventory and sell man- in the Toronto Stock Exchange.
ufactured products of other com¬
Mr. Norris is_ also
President
panies which are represented by and. director of. the Norris Grain
the corporation;; to increase the
Company, Ltd,: of Winnipeg and
company's manufacturing -iaxnli- the Norris Grain Company - of
ties and to establisha radioactive .Illinois.

of
the net proceeds will be used for
general corporate purposes—

:

%

The balance

service.

isotope

.

RftninlnfUn

Roll

WVtf • UvIVVlIt v Vn' IV

General Nucleonics Corp. owns

all of the issued and
stock

common

of its

outstanding
three

oper-

ating

subsidiary corporations,
namely, Atomlab, Inc.; The Atomic
Cjenter for Instruments and Equip¬
ment, Inc., and The Radiac Co.,
Inc.

The

Atomic

Center

for

In¬

struments and
a

sales

Equipment, Inc. is
organization,
the nucleonic
and

and

Open New York Office
Bell,

Gouinlock & Company,
is being formed as

Incorporated
an

affiliate

The

to

Bell, Gouinlock &

Limited

Company,

of

Toronto.

firm will have offices at 64

Wall Street, New York City.

service

Newburger & Company
In New Offices
PHILADELPHIA, Pa. — Newburger & Company, members of

Inc. manufactures its own
products and also sells under the
Atomlab
name,
products which
are
manufactured
for
Atomlab,
Inc. under Atomlab, Inc. specifi¬

offices

cations

Walnut Street.

on

The Radiac
of

atomic

sub-contract

a

basis.

geophysical

pro¬

pro-

Giving effect to the sale of the

shares, and the exercis¬
ing of warrants carrying rights, to
subscribe to 56,000 more shares,
outstanding capitalization of the
common

company
common

BEVERLY

removal

of

their

the third floor of

1401

Chicago Analysts to Hear
CHICAGO, 111. — The Invest¬
Analysts Society of Chi¬
cago wil hear Donald J. Hardenbrook, Vice-President of Union
Bag arid Paper Corporation at the
luncheon meeting on Oct, 14, to
be held at the Georgian Rjoom at
Carson Pirie Scott & Company.
ment

Andrews Formed

affi¬

become

Lloyd Arnold & Co.,
He was

404 North Camden Drive.

& Co.

BEVERLY
Jacobs

132

Avenue to engage in a
securities business.
Officers are

Dudley

C.

Andrews,

President

and Treasurer and Frank

Balletta,

Mineola.

Chrc&icle)

HILLS, Calif.—Mar¬

and

been formed with offices at
Jackson

Secretary.
Mr.
Andrews
was
formerly an officer of Andrews*
Mahoney & Andrews, Inc. of

Two With Boren Cp.
(Special to The Financial

Harold

H.

Starr

with

Boren &, Co.,
North Canon Drive.
now

to

SYOSSET, N. Y. — Andrews,
Downey & Andrews, Inc. h as

HILLS, Calif .—Clar¬

E. Parker has

liated with

are

the

announced

PhiladelphiaExchanges, have

Andrews, Downey &

With Lloyd Arnold

tin

Baltimore Stock

will consists of 185,500
shares.

(Special to. The Financial Chronicle)

ence

the New York and

Co., Inc. is a supplier
and

spection of uranium, oil and other
strategic materials.

their

new

made

as

to gains formerly with Samuel B. Franklin

hey e been
^the 0f as mucb as five points bepnme "war babies
for stock tween saks>
traders for a generation but
^
*

is

nouncement

General Nucleonics

Motors,

hydrations adding

Formed in Toronto
TORONTO, Canada

Bd y

#

Oils Buoyant

,

eral

contributed some of the wider

*

.

,

particular help from Gen- specting instruments for the

group

date couldn't be set too far

They are presented
those»of the- author only j'

any

in which it is a

Norris,Allen Limited

expressed in this
article do not necessarily at any
time coincide with those of the

lab,

*

*

a

aircraft

no

rumors,

views

[The

distributing

somewhat spotty
principal stockholder. Last
looking well weejc parj 0f DuPont's popuwas the newcomer, Rohr Aira
jarity ka(j
abscribed to
craft,which was, able to 30m the
announcement.
Such ; an:
activity- in'-.the; motor
the select group of issues able
stock. Allied Chemical, howevent is impossible in the
to forge out two-point gams
eveT} refUSed with some depresent Humble case. Addi¬
m one session.
It was a bit
termination to follow strength
tional Jersey shares must be
more active than some of the
an(j ^ a i0t 0f backing and
registered with the Securi¬
other recent newcomers, and
ties & Exchange Commission
fming that ignored the deappeared to be building up a mand elsewhere in its section,
to handle stock
exchange for fair
following as a trading j^ohm &
Humble shares. Any record
Haas, as is its wont,
ment,

from

was

ington. Most of the other ma- radiological instruments, equip¬
jor producers' stocks were ment, and accessories of between
buoyant with National Steel 40 and 50 British, Canadian and
American manufacturers.
Atomoccasionally erratic,

shows and this time without

^
..

.

there

nebulous

of

dearth

doldrums,

try ou^

out-

was

group,

and

devices

Chronicle»

as the
indications-were that
profits-would Jiold up well at
even
larger margin in the current production levels
subsequent session.
with
the
added hope
that
As recently as 1948, Gen- Fait demand would"
pick -up
eral Motors marketed a block
importantly to bring producof nearly—400,000 - shares of- tion
above three-fourths of
Bendix at a price of $28 a
capacity. Betlilehem Steel
share; the going level this showed somewhat better re-

Jersey
stands ready to take all stock
tendered, even to the extent week
of

—

In order to be able to through to extend the gam
affairs in the into new high territory by< an

add

'

"fabulous"

a

Non-ferrous metals also
a
pattern for the market this continued the popularity they
Fall.
regained ear 1 ier this year
*
*
*
when government stockpiling
Big Rises in Bendix
came along to lift the indus-

were

ary.

on

popu¬

which is getting to be

moves

pitfalls in a recent some three^ and one-half•
acquisiton of stock of Creole points to start off the week
Petroleum, another subsidi¬ and built up enough followthere

as

* ; T

sharp, individual

some

to any

misconception
from the, fact

J

to

stood

un®

game,

this larly since it wasn't troubled

last week.

space

follow-the-leader

misinterpreta¬ standing in its

some

tions

a

situations have led

than those
of

of

of

larity that enabled it, too, to such as those that enabled
post a historic reading nearly Union Pacific to join the
three times the peak of. 1929 sprinters once in awhile.

By WALLACE STREETE

Correcting

Goodrich also

one.

moments

Financial Chronicle... Thursday, October 7,1954

186

With E. L

Shelley

(Special to The Financial Chronicue)

DENVER, Colo.—Albert Cooper
has been added to the staff of E. I.

Joins Davidson Staff

Shelley Company, 'Ernest & Cranmer Building.
:

(Special to The Financial Chronicle)

MODESTO, Calit—Graham W.
Lightner has been added to the
staff

of

Davidson

&

Co.,

Hotel

Ferrell & Ferrell Add
(Special to The Financial

GRAND

ChrohioLe)

JUNCTION,

Colo.
high of the old stock just turned, they still show no
Mrs. Lenore E. Kyner has been
prior to a 2-for-l split in signs of significant recovery
added to the staff of Ferrell &
1951.
It now shows a price from the long depression that
With Hamilton Managem't Ferrell, 411% Main Street.
>
(Special to The Financial Chronicle)
appreciation over last year's has afflicted them since the
trials, they were more than a
Joins King Merritt
end of World War II.
peak approaching 40%.
DENVER, Colo.—Charles Rudd
technical disappointment. A
(Special to. The Financial Chronicle)
*
*
\
jjc
is now connected with Hamilton
*
*
*
BRADENTOWN, Fla.—William
spirited performance by the Management
Corporation,
445
Selective demand for
L. Aldred is with King Merritt &
Rubber issues, boiiyed by carriers last week
qual¬
proved to Grant Street.
Company, Inc.
ity industrial issues continued some auto orders and a rash be a
one-day affair and
to carry the stock market into of talk over
developments not dashed many hopes that the
Hill Richards Add Two
Joins Daniel Reeves
new
high ground for a quar¬ so
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
tangible, were among the list was about to reflect hopes
ter of a century this week.
LOS ANGELES, Calif.—John D.
LOS ANGELES, Calif.—Robert
week's better acting issues. ^or a marked pickup in busiThe pinpoint attention to the
Desbrow and John G. Rutner have Kaye
has joined the staff of
u
ness for the rest of the year.
-TJ
become affiliated with Hill Rich¬ Daniel Reeves and Co., 398 South
good grade issues, with in¬ Goodyear added as much as
In the absence of u group
ards &t Co., 621 South Spring St., Beverly Drive, members of the
five points in one session, Lee
stitutional investors and
popularity the individual car- members of the Los Angeles and New York and Los Angeles Stock
traders engaged in something Rubber
nearly as much in a riers were left to their1 own San Francisco Stock Exchanges.
Exchanges.




x.

.

.

*

.

A

y

Covel Lobby.

—

■

Number 5366... The Commercial and Financial Chronicle

Volume 180

wards

Sterling Convertibility
Definitely Deferred

liberalization.

Unless

policy becomes justified
quently by liberalization
United

liable

the

its

opinion

in

elections

the

States, the government is
to

result

subse¬

of

the

surveys.
are

recent

due

Mid Continent Inv. & h

take

to

during the autumn.

be

public

A number of by-

place
Should their

-

Sees.

Noting International

Monetary Fund's attitude toward de¬
early sterling convertibility, Dr. Einzig

ernment's

to

new

New

proceed further towards converti¬

firm

in

be

wealth

convertibility of sterling will come about only by relaxation
policies. Says British official and expert opinion

tages

with

should

without

advantages

is

in

already disquiet¬

are

trade

if

rise

a

LONDON, Eng.—For

suffer

poration.

concessions.

offices at 231

compensating
trade with the Dol¬
any

further

to

vertibility of sterling is imminent
has
figured
prominently
the

on

undiplomatic, however,
such views in public.
since it has become evi¬

express

It is only

.

dent that the Washington Admin¬
istration has shelved the recom¬

news

the editorial

mendations of the Randall Report
that British Government spokes¬

comments of

men

financial

press

the

ion

opin¬

has

vided

been

Butler

to

pects of

con¬

in

at

the

obscure.

general trend of financial
opinion about the wisdom and
from

regarded
Even

there

rumors

were

was

from

this

month

to

week

as a

sessed

to

high.

very

to

the

favor

dall Report,

though

implementation

securities

the attitude of Con¬

justify high

opinion and

tures

follow

made

by

unilateral ges¬

Britain

for

the

benefit of the United States in the

weekly articles may have
noted that throughout the last two
I emphasized on many

Head

Statement

the

of

form

markets in

oc¬

ties.

casions

that an early restoration
convertibility was most un¬
likely.
This view has now re¬

liberalization

The

to

ers

annual report of the International

Due

and

restoration

imports

of

the

of

indis¬

the

of

In the past that
repeatedly expressed
of early converti¬
the present occasion,

sterling, has conferred

institution

Agencies

.

note of

State

was

been

indication

no

away

that

some

of

Britain

has

Discounts

and

Stock

wonder

the

determined
.

the

is

government
not

to

began to link in public statements

.convertibility

with

liberalization

of American trade, they have




pri¬

'

Portfolio

Foreign Central Banks.

15,050,400

.

in

Transit

2,874,840

.

Reserves

with

Branches

2,067,938

for:

Unearned Discount

and

Other

Unearned Income

34,678,700

........

10,500,000

,

22,410,637

Interest, Taxes, Other Accrued
Expenses, etc

40,995,318
4,125,000

Dividend

International

of

Banking Corporation

.

.

7,000,000

,

.

Bank Premises

31,183,681

Other Assets

........

3,817,573

........a.

Total

J

35,519,786

28,828,454

Capital

$150,000,000
(;7,500,000 Shares—$20 Par)

Surplus

$6,016,340,492

200,000,000

Undivided Profits

.

409,143,447

59,143,447

Total

$6,016,340,492

Figures of Overseas Branches

are as

of September 25.

$395,624,732 of United States Government Obligations and $16,539,400 of other assets
to secure

(MEMBER

Chairman

are

pledged

Public and Trust Deposits and for other purposes required or permitted by law.

President

of the Board

Howard C. Sheperd

*

FEDERAL DEPOSIT INSURANCE CORPORATION)

Vice-Chairman

of the Board

Richard S. Perkins

James S. Rockefeller

CITY BANK FARMERS TRUST COMPANY
Head

*

History
tury

appears

Statement

Throughout the 19th
the first third of

the

Britain adhered

trade,

and

Due

Banks

from

-

....

U. S. Government Obligations.
Obligations
Agencies

of

Loans

and

,

Municipal Securities

their part in exchange for the
benefits received, they remained
protectionists. The difference be¬

tween
that experience and the
present experience is that, while
in the 19th century Britain could

afford to make unilateral

Real Estate Loans
Stock

in

,

.

......

and

Securities

Federal Reserve Bank

.

.

,

Bank Premises
Other Assets

Total

..

LIABILITIES

$103,931,936

.

.....••

.

••••••«••.

5,254,233

{Includes Reserve for Dividend $375,639)

16,370,859
Capital

$10,000,000

5,278,473
-

'

1

Surplus

.

10,000,000

,

600,000

2,533,518
'

i

Reserves

.......

Advances

Deposits,

84,377,355
1,300,864

concessions

on

$ 26,799,340

Other Federal

State

and

.

.

Other Securities

were
in a position to
by the free admission of
goods to Britain without

any

of September 30, 1954

ASSETS
Cash

countries

make

as

cen¬

benefit

their

of Condition

•

to have repeated

and

free

Office: 22 William Street, New York

Affiliate of The National City Bank of New York for
separate
administration of trust functions

same

having to

long before British official circles

in

Foreign Currencies)

for

un¬

cently by Mr. Butler, and ex¬
pressed in public statements, that
convertibility of sterling is condi¬
tional on the progress towards a

For,

Securities

and

-

$64,348 240

.

more

progress "so long as United States
policies with respect to the im¬
port of manufactures and of food¬
stuffs
remain
unchanged."
The
LM.F. has thus whole-heartedly
endorsed the attitude adopted re¬

of c^^r+ibility.

to

.

.$5,487,027,966

now

in the hope that
other countries would follow her
example.
Since, however, other

imminence

TA;CES
Due

• '

Bills.

.

M.

.

further in

go

direction unless and

same

to

quent misleading reports about the

Accep-

.

2,105,408,823

bar¬

present century,

emphasized
in these notes again and again,
not as an expression of my per¬
sonal opinion but in order to put
readers on guard against the fre¬

610,055,115

,

......

gaining counters without getting
anything in exchange.
It is no

sense.

have

on

.

DWM Apppp^

PCQ*

38,417,049

.

Federal Reserve Bank

in

Ownership

given

important

very

sizes that there is limit to further

I

Liability

;

.

any

itself.

is what

'

61 686 992

Customers' Liability

It is felt in

Although the report admits that
there has been some progress in
the desired direction, it empha¬

This

'

'

T

Municipal Securities

and

Real Estate Loans

sub¬

very

might provoke reactions til the United States shows
that would seriously delay the at¬ willingness to respond in the

1 liberalization of American trade.

1,746,997,034

.

.

dollar

strong,

tainment of the desired end."

years.

asking for

reciprocity, however.
London

underlying

sufficiently

quo,

has

pre¬

in the main markets, and without

payments position

25

for

any quid
the hope that the
example would be followed by the
United States.
Up to now there

attempt to
convertibility of ster¬
ling in 1947," the report states,
"had
shown
that
to
try to
achieve goals at a single stroke,
without appropriate preparations
the

.

.

Undivided Profits

.

12,614,112

32,614,112

3,112,495
$141,800,281

Total.

.

...

.

$141,800,281

conces¬

sions, at present she is not in the

$14, 421,776 of United States Government Obligations are pledged to secure
Public Deposits and for other purposes required or permitted bylaw.

happy position to be able to afford

(MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION)

it.
It is

widely felt in British po¬
litical circles—not only among So¬
cialists but also among the gov¬
ernment's
supporters—that the
government has gone too far to¬

Chairman

of the Board

Howard C. Sheperd

'! Vice-Chairman of the

Board

" Lindsay Bradford

President

in

Sims, Mr. Spanier

in

pro

premature

that

without

ain

the

assurance

be

of September 30, 1954

as

Deposits

Items

Loans

advantages on American
producers. This was done by Brit¬

warn¬

ing against taking that step
maturely.

Street

LIABILITIES

.$1,363,720,685

Other Securities

stantial

"The

Vice-

will

Branches Overseas

57

tances and

dollar commodities with the aid of

views in favor

of Condition

Other Federal

of

finance their purchases of

Monetary Fund.

a

Salle

'

Banks

from

U. S. Government Obligations

Obligations

commodities concerned, and of the
facilities for non-British import¬

ceived official confirmation in the

restore

Fox,

and Mr. Eustice have been

a

number of commodi¬

a

criminate

of

On

in

engage

Mr.

M.
Fox

Office: 55 Wall Street, New York

ASSETS

Cash, Gold

ex¬

pert opinion is profoundly disap¬
pointed about the complete lack

my

bility.

to

Mr.

New York.

business.

Branches in Greater New York

71

and

James

and

Presidents.

THE NATIONAL CITY BANK OF NEW YORK

Acceptances
British official

of response to the

however, it strikes

Building

of

some¬

Readers of the Commercial and

years

Center

ground in the country, judging by

as¬

hopes.

thing would happen at the annual
meeting of the International Mon¬

who

not

are

Even

gress does not seem to

etary Fund.

Chronicle

the part

on

the recommendations of the Ran¬

few weeks ago
to that effect.

a

the

of

President Eisenhower is believed

foregone

widely expected that

Financial

side

tial trade concessions

a

conclusion.

government has already lost much

return to convertibility

a

Atlantic, the prospects of substan¬

few months ago a
return to convertibility in the au¬
was

Treasurer,

Griffin, John W. Eu-

stice,

Rosenthal Opens

Joe

DENVER, Colo.—Joe Rosenthal
has opened offices in the Travel

is, the

But American

early convertibility
of the United States

month, sometimes from

tumn

and

George R.

1955.

Viewed

The

Only

it

President

conclu¬

They depend on the
vertibility in chances of a change in American
;'
the near fu¬ trade
policy. It is safe to assume
ture, and also about the likelihood that, should there be a
noteworthy
of any such decision. Many writ¬
degree of liberalization, converti¬
ers changed from one camp to the
bility would no longer be delayed.
other, some of them repeatedly.
Dr. Paul Einzig

week.

As

St.

Street.

con¬

readers at any rate are now in a
better position to assess the pros¬

should

restore

arrived

of course,

whether Mr.

fluctuated

attitude.

Salle

general broker¬

» age and investment business. Prin¬

business from offices at 136 Main

vertibility, unless there should be
an
appreciable
change
in the
American

Opens

a

ONEONTA, N. Y.—Neil K. Mac¬ cipals include William W. Sims,
Ewen is engaging in a securities President; Joseph J. Spanier, Vice-

Convertibility prospects remain,

di¬

as

have

that nothing could be lost,
possibly something might be
gained, by speaking their minds
openly.

world.

sharply

has

of

South La

and will conduct

N. K. MacEwen

firm will have

new

and

all over

Expert

of

direction

the

The

sion

the

in

and

pages

likelihood

in

organization of a
Stock Exchange
Chicago, the Mid Conti¬
York

nent Investment & Securities Cor¬

Area, the government's popu¬
larity is liable to suffer.
Apart from any other considera¬
tions, the government could ill
afford politically, therefore, to go

it

the

of

bility unless and until this is made
by American trade

sidered

two years the question whether or
not the
restoration of the con¬

made

worthwhile

vately held strong views on the
subject. Until recently they con¬

than

more

on

not

disadvan¬

the

respect—

lar

profoundly disappointed at inaction of U. S. in liberating
a number of
commodity markets.

determination

CHICAGO, 111.—Announcement

Common¬

ing indications in this
and

of U. S. import

It

should

prices—there

his statements of the last two years that restoration

renews

of

than

rather

is

result

ferred

popularity of the Socialist Opposi¬
tion, it would reinforce the gov¬

there

Corp. Formed

results confirm the increase of the

subject to criticism
for having made such unilateral
concessions. In particular if as a

By PAUL EINZIG

17

(1401)

.

Richard S. Perkins

on

La
l

.

The

(1402)

18

,C#mmercial and Financial Chronicle

GRACE

NATIONAL BANK OF

Sept. 30,'54

News About Banks

resources

,

$

j,

Cash

116,844,445

28,429,683

U.

NEW BRANCHES

35,120,161

45,462,111

NEW

£

Loans

discounts

44,108,508

profits..

£i

1,393,368

*

J.

HENRY

invitation

YORK

NEW

The election

of

Director

John A Hill

of

,

.

•

by
J awes. G.

Cash

t..

5

Presi-

Blaine,

1,761,720,977

Loans

Mr. Hill

459,692,529

Air

of

557.224,619

592,825,043

Surplus

20,221,388

vided

Con¬

o

397,464,310

U.

^610,466,222

607,800,691

BANK

profits

18,918,833

18,367,400

BANK

NATIONAL

Cash

U.

Sept. 30,'54

$

Govt,

profits

1,279,235,787 1,372,624,418

&

*

Deposits

MARINE

MIDLAND

TRUST CO.,

Loans

Sept. 30/54

June 30/54

$

discounts

&

"Undivided

6,880,560

7,200,905

profits
*

Cash

NATIONAL

BANK OF

CITY

N.

Y.

June 30, '54
S
*

Sept. 30, '54
$

and

Total resources-

due

Deposits

5,487,027,966 5,455,443,656

SI TV

TJ.

...

H

H

Govt,

B.

carity
Doans

se-

holdings

discts.

profits

1.746,997,034 1,602,710,324
2,106 ans fioi 2,2'1'"'00 ""S
59,143,447
57,697,603

it

CITY

fit

CO.,

N. Y.

June 30/54

$

$

141,800,281

resources

&

Cash

due

173,037,741 183,647,990
242,523,346 263,184,597
292,171,645 318.482,422

—

discounts

&

Undivided

profits—

16,042,276
*

THE

FIRST

OF

'

84,377,255

78,103,601

5,278,473

7,513,023

discounts.

Undivided

profits..

12,614,112

12,439,461

TRUST

GUARANTY

*

❖

Cash

and

CO.

NEW

$

LoaDs

Sept. 30, '54
$

Total

resources.

Deposits
Cash

U.

Govt,

8.

curity
loans

&

Undivid.

discounts

&

PUBLIC

COMPANY

910,721,574

985,818,550

discts.

1,253,012,769

1,208,4^6,901

101,464,703

Total

Cash
-

*

TRUST

COMPANY

resources.

Deposits

loans

&

Undivid.

and

due

from

109,302,278 121,602,636

Loans

&

Undivided

BROWN

944,826,937

discts.

845,093,173

862,093,128

profits

35,759,785
fi:

BANK

Deposits

TJ.

8.

and

curity
loans

&

Undivid.

.

$

TRUST

se-

'

■

$"

discounts

THE

STERLING

TRUST
1

47.166,191

54,574,330

..

442,164,582

COMPANY

503,310,051

489,127,006

706,190,840

715,644,009

22,061,838

20,765,732

14,365,284

*

OF

BANK

NEW

Sept. 30/54

.

Total
Cash

YORK

*

June 30/54

and

$

136,379,754

121,668,867 125,654,261
due from

31,467,212

31,979,748

discounts

38,294,537
58,127,987

42,029,542
53,554,568

Undivided profits—

1,505,162

1,475,001

U.

;

S. Govt,

security

holdings
Loans

&

last

15

to

have reached

years

illion today.
million todav.

ing

163,000

when

1859

the

token

he

at

a special
actions:

-

assets

our

to

number

of

that

or

founded

*

of

use

a

room

1, two

JJ

that

The

in

the

Lauderdale.
immediate

for

five

added later. The
be

in

the

of

with

heart

of

plans

to

undivided

of

approximately

divided

follows:

as

dollar share for each
share currently held,

the

three-

a

to

$21,000,capital

Fort

drive-in

the

.

syndicate composed of Mer-

Lynch,
Beane, and

Pierce,
Equitable

Fenner

&

Securities

Corporation, along with a group of
local bankers.
Commenting on

area,

teller

a

rill

be

Lauder-

convenience

20-dollar

The stock is to be underwritten

by

building will

shopping

seven

added

Pre-emptive rights to purchase the
new stock on the basis of one 10-

Fort

provisions

floors

new

downtown
customer

of

call- for

additional

be

surplus,
$12,000,000;
undivided profits, $3,000,000. Present shareholdefSt will be given

Na-

Lauderdale

section

erection

structure

For

Broward

Fbns

will

1954

000,

anrouhced plans to
$900,000 bank building

a

u* added to
P^PSS!d
be

$6,000,000;

cf Fort

downtown

story

the

has

construct

u

will

profits, giving the bank., a total
capital structure, as at the end of

*

27-vear-oM

Bank,

^nnfnnn
$3,000,000

ance

"""

*

be .added to capital,

surplus, raising it from its present
$9,000,000 to $12.000,COO.,. The-bal-

of

whereby

pr0T
amount

/

n^nmnn5 preser1^4'000'*

t^

nnn

increased from

w?s

$510,000 to $520,200.
*

Bank

^ paf v? r? ??
a
Present shareholders of
on^non

*

National

.

additional 200,000

5e

Kice

-Jj«aA£ '?,?

hours, a day
out savings."

Pa.,

.

in

Effective Sept. 15, a stock diviof $10,200 was declared by

Peoples

held;

,

J f the capital structure of

'

ih

-

two

*

T,

Sfrfs+

a

dend

the

„

in

would be

thrifty people,"
that time we

pay

On Columbus

Day, Oct. 1% the

ices

and

facilities

consolidation of the First National

first two- floorsl
be

of

,

the board's action, President NorTurner said, "Memphis has

fleet

Bellmore,

Long

Island

available

Unuer levels

on

will, take the

Office space will
the'third; floor,

will

industry, for adequate -y«orking
capital and bank Credit must be
recognized

serviced fyy

continue.

Square at Floral Park, high-speed elevator and a twoIt is understood
Long Island, N. Y. will be for-, way escalator.
mally observed .with an "Open the Broward National Bank will

reducing

the

House"

Franklin

National

celebration.

Bank

be

be

The

first

the

in

bank

Florida

to

publicoffer this two-way escalator servduring the*
ice.
Foundation work is in progday from. 9 a.m. until 9 p.m.
A*
ress now and the new building is
long stemmed rose will ,be given
is

invited

visitors,

to

attend

and a "Paper-Mate"
to all- who open a savings ac¬

count or transfer a present sav-~
ings account, and to everyone who

expected
pancy

to

be

ready

for

occu-

by May, 1955.

a

Regular Checking
Checking account.

complete

alterations,

made

of the

offices

in

the
most

that

it

is

Bellmore
modern
area.

or

*

a

The

National

Bank,

Francisco, Cal'f., at

said,

ing

on

Office

for

the

a

of

San

special meet¬

Sept. 27, approved a plan
merger

of

The

Bank

of

banking' Eureka into the Anglo Bank, Paul
The latest E. Hoover, President announced.

its

the

progress
is
board's action

par

value

of

to
in

First

shares will broaden the
bank's ownership and attract new

investors, while the proposed increase
in
capital funds wiil
strengthen its leadership in the
financial field and enhance its
,

ability to meet the credit needs of
a rapidly growing
community."

Shareholders of the An?lo Cal¬
ifornia

if

The

National

^

opens

Special
have

shareholders,

meeting Oct.

windGWSy one walk-up teller win- experienced and is still undergoPresident Roscoe reported.:* /dow, and a parking lot with a ea- ing a tremendous growth, and the
*
'Sir
fit
•
pacity for 6^c*rsi'l Bankingrerv- resulting needs of business and

year,

*>ne

the

the bank be increased by the isum,rv
liwijaseu uy ine

"at

Town: Hall

accept

bank

pen

of

io-dollar shares for each 20-dollar

Noting that

,

was

allowed the

were

and assets have increased by more
than $6 million, during the past

and

the

share presently

are
now
are now servserv-

savers."
bank

added

the

We
We

"for what today

dale's

&

133,150,007

resources

banks

discts!

14,385,284
NATIONAL

$

■




60,029.443

fi:

said

decided,

approval

to

recommend

have grown four and a half times—from $35 million in 1939 to $155

highest' in its history with
approximately
55,000
members,

the

to'

&

Deposits
483,956,837
■

49,936,647

security

holdings

"

2,007,561,138 1,949,723.868

holdgs.

profits

50,807,085
58,215.848

U. S. Govt,

CO., N. Y.
June 30, '54

in

the

in

of Franklin

•

from

*

&

due
„

due

banks-—

Capital and surplus

1,803,313,276 1,747,677,896

Govt,

*

199.249,154 206,190,049

Cash

*

_$

banks

June 30/54

227.506,244 241,251.649

33,953,852

and

CO.,

Total resources—

9^)6,679,448

se¬

savings
savings
investment
objec¬
income

on

the

completely modern

Bank

&

YORK

}

was

membership in the As¬

sociation is

•

HARRIMAN

Sept. 30/54
11

annum

installment

with

The

10,694,508

*

Deposits

8^3,752,463

holdgs.

resources-

from

BROTHERS

i

Sept. 30, '54

Cash

fi:

NEW

Loans.

Total

11,1-13,984

fi:

2,7f),578,716

847,343,976

CHEMICAL

78,725,404

284,856,965 273.540 9cO

profits—
"

«

.

79,102,361

;

discounts

due

fi:

on

and

Y.,

Roscoe, re¬
An additional

Sent. 29.
dividend of %% per
declared

N.

S.

start

folk counties. We need it because

Norristown,

Brooklvn,

on

account

5)5.560,727 513,744.144

<

__

of

Andrew

YORK

NEW

458,450,175 458,403,219

3,002,165,624 2,9712,109,427
2,755,226,656

ported

Junjb 30, '54
$

Govt,

AND

S

resources

banks

.

Sept. 30,'54

8.

OF

BANK

U. S. Govt, security

NEW "YORK

curity

fi:

June 30/54

Deposits

99,7)58,4 18

resources

$470,000,000.

President

tive.

profits

from banks

13,097,219

Sept. 30/54

•holdings

TJ.

fi:

NATIONAL

se¬

holdgs.

and

13,266.903

628,92^,978

*

Cash

210.224,084 236,935,137

profits

TRUST

745,287,051

MANUFACTURERS

Total

194,701.658

$

__

The Lincoln has

accounts

j

to

unanimously

bank

added

be

board

j. That the par value of the
building which stock be reduced from Its
present
largest banking $20 per share to
$10 per share
Queens, Nassau or Sut>. with shareholders
receiving two

Florida

fi:

THF,

pay¬

amounting

floor

Association
157.884,307

coa^t

the

t'onal

1°4,535.581

3,071,966,441 3,019,502,458

due

banks

&

a

was

152,139,101

Undivided

2,613,811,701 2,559,449,965

and

from

June 30, '54

date,

dividend at the rate of 2-l/z%
ennum for
the last quarter
declared by the directors cf

per

a!

Q^irsl,

subject,, to

Our contribution,"
said, "will be the con-

house

South Brooklyn Savings and Lo^n-

due from

holdings

YORK

The figure

year.

this

is in

regular dividend

tive dividend which the bank has

over

the

an-

will

Avenue

/ruction of

to the
accounts of more than 260,000 de¬
positors and is the 238th consecu¬
paid.

Knapp have

month,"

Mr. Upton

550,839,629 582,875,445

U. S. Govt, security

OF

a
■

9

u?

buildingfat Main Street" Comptroller of the .Currency, tp

Roosevelt

and

703,429,265 734.473,640

-

bank"
fi:

on

A

June 30/54

resources-

Deposits

&

b-nk's canit?!

$

Total

able

the

to

THE

OF

Sept. 30/54

TJ. S. Govt, security

addition

YORK

NEW

the

extra quarterly divi¬

an

has been declared and

dend

of

RAVR

NATIONAL

CITY

29,781,660

26,799,340

holdings

15,129,717

*

103,187,850

103,931,936

•Cash and due from

loans &

796,267,534

U. S. Govt, security

holdings

de¬
Savings

Lincoln

$2,829,715, will

-

one-

was

This is the third time this

of 2%%
881,548,261

from

-

140,576,328

banks

.

v,;

728,468,419

and

of

year

a

Brooklyn, N. Y. for

tlv.t

year

INCORPORATED,

817,^70,678

resource^-'—'

Loans

1%
The

by

bank.

*

CO.,

fit

Deposits

7,315,472

/i'.v,v®ePt- 30/54 June 30/54

banks

TRUST

BANK FARMERS

345,673,739

;-.uNEW YORK

Deposits

*

fi:

Sept. 30,'54
Total

MORGAN

rtWi.T.

Total'

of

period ending Sept.
30,
1954, according to an
an¬
nouncement
made
Sept. 28 by
John W. Hooper, President of the

208,317,176 213,419,253

7,329,616

Webb

two-story

fi!

dividend

extra

«

^nrih

next

month

349,276,493
discounts

&

P.

49,118,474

three

fit

J.

962,005,291

50,866,604

of

Undivided profits—

,V \,y'....

,,

holdgs.

&

TJndiv'd

1,363,720,685 1,385,694,206

977,296,696

Bank

774,796,287

212,562,415 215,783,577

*

11P

banks

from

discts.

from

6,016,340,492 5,966,644.95 7

dPook

506,133,561

clared

Govt, security

Loans

528,047,780

536,287,968

775,798,361

banks
U. S.

494,076,822

quarter

,

^lo f

^ f+a

and

New"-?,,

six-story

se¬

833,708,632 832.295,902

resources-

Deposits

*

*

NEW YORK

profits

An
$

TT*

area," Mr. Upton said.
"It
.J
on
is the juncture point for 19 bus
of San Francisco.
i
lines serving the North Shore and
*
*
*
the subway to Manhattan. Dur-"
Directors of the First National
ing the past few years," he con- Bank of Memphis, Tenn., have
tinued, "we have seen the devel- raised the bank's stock dividend
opment of a huge parking lot,,.-rate from 12% to 14%, beginning
the modernization of many stores, with the payment to be made Jan.
and
the recently completed
re1, 1955 to shareholders of record
paving'of Main Street.
In ad- Dec. 21, 1954.
At the same time

will

June 30/54

business
in
the

transportation,
shopping sections

1,900,136,175

it

$

of the old

one

1,917,817,720

CO.,

Sept. 30/54
Total

"j

COMPANY,

holdgs.

&

Lorns

area,

communities in the United States, Thp Fna
is now becoming one of the larg-

nounred that ^onstruct'on of their

banks—

curity
Undivid.

TRUST

Street

2,125,702,051

YORK

-

106,282,313 101,515,156
210,246,731 200.952,120

...

it

.

due

Govt,

S.

U.

15,528,862

*

EXCHAVr-E

147,006,763 138,912,455

banks

holdings

the

*

NEW

TJ. S. Govt, security
T oans

CORN

and

Cash

nnn81?-^ _?T

in
Flushing-

/The

ceremony.

.

£°^asi nor^ °* SaA

ber of Commerce participated
the

n,.,

proximately $21,b00,000, total as¬
sets of more than $22,000,000 and
capital funds exceeding $1,700,000.
It
is expected that-, the Eureka
bank
will
shortly
become
the

George A.

Lundy and

2,156,370,338

—

from

16,203,912

fit

435,050,587 409,667,951

TRUST

Deposits

250,110,569 224,163,811
307,056,667 324,901,017

profits—

from

Cash and due

;

if.

resources-

,,

Schamel, President of the Cham¬

dition,
T-ta!

'

.

.

476,268,796 452,127,740

resources

Deposits

1,138,746

9,220,946

Sept. 3'J,'54 June 30/54

security

$

'

BANKERS

237,904,636 195,249,218

discounts

&

1,157,542

$

,

—_

Undivided

12,195,763-

-

it

746,875,405 687,306,862

holdings

YORK

NEW

13,714,401
8,928,253"

;

and undiprofits

Y.

N.

June 30/54

due fTom

and

banks

*

fit

• -

CO.,

approximate

-

840,827,033 780,441,720

resources-

Cash

9,319,903

security

discounts

&

Loans

18,541,908

$
Total

30,729,570

from

holdings

552,278,231

Sept. 30/54

U. S. Govt,

"Total

U. S. Govt,

397,767,802

will

Jhe.
A°* 'f^-'
®stahlished in 1889, on
is

^

York

9,049,345

Surplus

TRUST

YORK

NEW

,>w,

31,765,610

-

due

and

vided

se¬

1,382,838,871 1,267,914,789
discts. 2,134,934,827.2,^,o.(. .
1
profits
64,679,889
60,299,390

Undivid.

the

Cash

*

*

30/54:

june

33,172,414

banks

442,163,724
556,419,582
19,180,696

A.

YORK/ est

NEW

34,233,093

resources

Deposits

discts.

&

THE

holdgs.

curity
Coans

390,188,723

fit

due

banks

from

S.

Loans

Undivid.

.

TRUST COMPANY,

Sept. 30/54

Total

5,072,422,489 5,174,415,072

and

Cash

378,584,245

5 5""

resources.

Deposits

U.

June 30/54

$

'

*'

fit

*

"

se¬

holdgs.

curity
i

1,288,824,891

—

3,653,241

3,656,772

*

S

due

banks

Govt,

S.

profits—i._

of

cap-

-the largest independent bank
-

in

in

Nassau
and
Suffolk
Borough
President

Counties."
Jarr.es

Main

-

1,446,959,174

1,328,984,375

and

from

CITY

THE

OF

YORK

NEW

10,044,426 <

8,356,504

(

undi-

and

CLINTON
:

1,493,883,782

resources-

Deposits

*

#

OF

Total

discounts

&

fit

$

;

$

Bar Associations.
4c

chase

"

Total

/

•

June °0, '54

Sept. 30, '54

York and Massa¬

ber of the New

61,190,484

-

YORK

NEW

ciation of New York, and a mem¬
chusetts

Loans

COMPANY,

MANHATTAN

THE

OF

Asso¬

dustry

i—58,949,365

—holdings

Vided

'

n.u

14.095,725

S. Govt, security

441,185,214

discts.

m-

John a.

-

"

9,471,806

funds

NV Y.,

firnr
flcor

hnnifin^
banking

largest

Queens,

79,665,058

,

—A.

banks

Surplus

C

«

86,340,967

70,934,385

Bank

result, Anglo's

a

j

to signal the

Island,

Long

larupct

"

se¬

:

,

which, it is claimed, will make it
the

June 30/54

$

and due from

Cash

367,987,654

'

77,838,479

Deposits

.377,117,802

YORK

CO.,- NEW

■

holdgs.

&

Undivid.

and In-

merce

.:

resources

*

*

a ceremony

Flushing,

■

■

Total

due

Govt,

Loans

of

-

banks

curity

ference Board,
the

S.

•

capital

expansion of the bank's main office " at> 38-25
Main
Street
at

4,655,133

Sept. 30/54

1,487,502,782

1,390,358,758 1,336,144,931

and

from
U.

June 30, '54

to

banking equipment.

cently at

fit

TRUST

SCHRODER

YORK

NEW

1,540,961,733

resources-

Deposits
-Cash

21,7b4,725

fit

COMPANY,
Sept. 30, '54

National In¬

54,852,715

&
discount -23,940,078
and undiprofits
4,659,698

Loans

657,646,186

20,721,437

TRUST

Total

41,817,670

As

Jfease the capital stock an addiffl ^Pon_ aP~
Proval of this second increase,
;4ngl°
have 1,312,500
shares- of common stock and total
ot m^re ^han $61,-

and

*

12,096,388

holdings

j'

638,175,943

*

a

Director

I

discts.

IRVING

Trustee of the

dustrial

.

profits

&

Incor¬

porated,

a

••

se¬

,

7,450,303

banks

Bellmore

tne

con-

italization will consist of 1,050,000
shares of common stock and its

Bellmore

view

stock, for

of The

Joseph Upton, President of the
Queens County Savings Bank of
l\.
I.,- officiated
re-

est

U. 8. Govt, security

Re¬

Com¬

duction
pany,

472,617,126

the

the

Eureka.

83,041.980

Cash and due from

__

Undivid.

President

"is

1.798.021,670

1,613,905,504

holdgs.

curity

'

dent.

banks

Govt,

8.

67,708,691

in

with

shareholders

$50,000,000.
The shareholders of
Anglo Bank will again meet to
take action on a proposal to in-

staff

99,647,222 117,432,260

resources

Deposits

•

U.

Total

due

and

from

$

June ^U, '54
$

all

to

common

summation of the transaction with

the

lat-

Office

June 30/54
' s

Sept. 30/54

1,574,689,126

resources.

Deposits

c

'64

$
Total

announced

O

BANK, NEW YORK

toept. ju,

'Trust Company of New York was
•

HANOVER

Midland

Marine

The

THE

as

V.

visit

to

area

CORP.,

BANKING

SCHRODER

shares of

of the Franklin
National Bank, in his announcement of the program, extends an

1,250,466

j

likewise approved the plan
Sept. 27. Under the plan, Anglo
Bank will issue 50,000 additional

Arthur T.

area.

,

reka

President

Roth,

42,344,101
44,602.290

Undivided

CAPITALIZATIONS™

in the Bellmore

) ) ' t

,

on

avail-

now

businessmen and families

able to

security

holdings

Bankers

and

OFFICERS, ETC,

REVISED

Govt,

8.

and services which are

r

Shareholders of the Bank of Eu-

varied

the

due from

and

machin-

and

been installed to handle
banking transactions

.

113.871.309

Deposits

_

equipment

has

ery

134.567.645

banks

CONSOLIDATIONS

modern

June 30/54

S

132.339,692

s

Total

YORK

NEW

Thursday, October 7, 1954

...

'

Stockholders of the First Na¬

tional Bank in Dallas,
Texas, at

«

special meeting on Sept. 21 unani¬
mously
approved
a
previously
voted

for

a

would

directors' recommendatioi
capital expansion Dlan tha
increase the capital

stocl

Volume 180

the

of
its

Number5366

bank

to

surplus

and

add

..

.-The Commercial and Financial Chronicle

$20,000,000, raise to the

fund

to

To the special question on home
construction, the replies from a

would aggregate more than $61,-

$1,000,000

hundred localities indicate

400,000; The proposed additional
capital funds are considered suf-,

would be

accomplished by the sale
of 200,000 additional shares of $10-

ficient to support the expected
par-value stock at $25. per share., growth of the institution for some
The new shares will be offered to time to
come, President Hoover

present

shareholders

of

share

of

at

the

rate

stock

new

said.
*

for

every

nine shares of outstanding

stock.

Warrants entitling the

Promotion

stock

new

mailed

were

as

They will have until

p.nu

G to

exercise

their

President

Sept, 21

of record

of

*

of 2

Association

of

San

Chairman is

rights.

The
structure

dent S.

Clark Beise.

Robert

rector of Pur¬

chases,

national

tai working funds of

than

$50,000,000, which in addition to
$20,000,000 capital and $20,000,000

in 1927, and which she has served

surplus

will

include

member of the bank's Inter-

a

profits of about $7,500,000 and a
of approximately $3,250,000 for contingencies. The $5,000,000 new capital will be divided

servicing, and foreign bank relationship arrangements.
Long active in the California Federation

reserve

Business

of

and

Professional

$2,000,000 to increase the capital Women's clubs, she is currently
stock of the bank from $18,000,000 President-Elect for the Peninsula
to $20,000,000, $2,000,000 to raise district, which comprises 34 clubs
the surplus fund from $18,000,000 from San Francisco to King City,
to
$20,000,000,
and
$1,000,000 and is Finance Chairman for the
added to the undivided profit ac- State Federation of 300 clubs in
count.
Action approving the rec- 11 districts.
ommendations for the increase in
the bank's capital was taken by
the directors of the bank on Sept.
1.

as

noted in

our

Bernard

issue of Sept. 9,

*

Angeles

on

if811?-

of the bank,

be

to

share

offered

of

He

points

the

in

industrial
business

Robert C. Swanton

sur¬

w e r e

vey

in

wood

Later he

1946.

entered

However*

fractional- and whole-share

With the issue of

Generally, the lower priced new
are selling fast. The medi¬
um
and higher cost homes are
moving well, though buyers have
become

war¬

new

the

$7,000,000 to be realized
through the sale of stock, $2,500,000 par value of the new shares
fhA

hanlr'?

ranital

$10,000,000 to $12,500,-,
000.
The remaining $44,500,000,
together with $3,000,000 trans¬
ferred from undivided profits will
be added to surplus, bringing that
figure to $17,500,000.
With undivided profits of more than $6,000,000 the bank's total capital
funds will then exceed $36 000,000.
Blyth & Company, Inc., will head
a syndicate of investment houses
which will underwrite the unsub-

stock.
*

*

*

capital stock of the bank be increased, it was announced by Paul
E. Hoover, President.
.Under the
proposed plan, the capital stock of
the bank would be increased 262,500 shares.
These would be sold

market.

(Special to The Financial Chronicle)

P r ices: Strength
stability mark the industrial
price
structure
in
September.
While the August trend to ad¬

with

a

caused

slight
by

has

About

one

million

shares

of

value stock outstanding.

Oct.

1

move

ert H. Rich has become associated

with

Heller,. Bruce

fred

increase,

to

improved

R.

added

production

& Co., Mills

Masters,

Jr.

the

of

to

staff

has

bers

of

the

York

New

and

J. P. MORGAN & CO.

and. the books

President

will

be

added

Cash
I.

C.

for the financing
future film productions.
and

these would be in-

creased to

1,050,000 shares followcompletion of the pending
merger with the Bank of Eureka.
After sale of the proposed 262,500
shares, there would be a total of
1 ;312,500 shares outstanding. An¬
glo's capital, surplus, undivided
profits and unallocated reserves
presently amount to approximately $47,900,000. After the proposed
financing and after giving effect
ing




State and

of

$173,037,740.59

from Banks.

242123,346.10
83^78,248.69

Municipal Bonds and Notes.......

Stock of the Federal Reserve Bank..........

Bcchtel Corporation

C.

Hand and Due

United States Government Securities.......

President

PAUL

on

*

BECHTEL

STEPHEN D.

worki^ j capital and will be used
ties

ATKIN

R.

Vice-President

Other Bonds and Securities

to

for the payment of other liabili-

ASSETS

\

Vice-Chairman

of loans from stockholders.

balance

CABOT

President
S tate S treetl nvestmentCorp oration

1,650,000.00.

(including Shares

of Morgan Grenfell 4" Co. Limited and
Morgan # Cie. Incorporated).............

-

BERNARD S.

CARTER

Accrued Interest, Accounts Receivable, etc..

3,192,802.43

Banking House.

3,000,000.00

President

Co.r Inc. is primariiy engaged in the business of
producing and distributing lowcost, high-quality television pro-

Morgan & Cie. Incorporated
CHARLES S,

the

to

Liberace

John J.Zeeb in Buffalo
BTT1Pli,AT n

M

^ Inc., with
Co.,
see

T

v

_^FFAL(^N.. Y.
offices

—

.

Building to conduct

a

Chairman

-

securi¬

.

•

<■

The B. F. Goodrich

H.

Company

4<v

1 r.s

DAVISON

P.

LIABILITIES

Senior Vice-President

RICHARD R.

DEUPREE

Chairman

Deposits: U. S. Government

<■

All

The Procter & Gamble Company

CHARLES D,

Official Checks Outstanding

DICKEY

Accounts

Chairman Executive Committee
N.

D. JAY

645215,492.69

49£89,827.63

$728,468,418.81

Payable, Reserve'for Taxes, etc...,

6,797,239.09

Credit Issued.....,...................

10,962,743.85

Capital—250,000 Shares.....................

Morgan & Cie. Incorporated -

254)00,000.00

Surplus

pEVEREUX C. JOSEPHS
Chairman

.Undivided

New York Life Insurance Company

THOMAS

$ 33,663,098.49

Acceptances Outstanding and Letters of

Chairman
■.

Other.......

.30,000,000.00:
Profits...V.,.*. 7.1....

*....

-16,042275.96,

,$817270,677..7V

S.JLAMONT

.

Senior Vice-President

R.

C.
..

LEFFING WELL

United

Vice-Chairman

States

to secure

L.

F.

Government

in the above statement"are

McCOLLUM

public monies

as

securities

carried

at

$51,807,940.22

pledged tat* qualify for fiduciary forcers;
required by law, and for other, purposes.*

President

Continental Oil Company
GUSTAV METZMAN

Mem ber Federal Reserve

"

Member Federal

System

Deposit Insurance Corporation

JUNIUS S. MORGAN

ALFRED P. SLOAN. JR.
MORGAN

Chairman
General Motors Corporation

JAMES L>

$ CIE. INCORPORATED

14, Place Venddme, Paris, France

THOMSON

Finance Committee

Opens Branch
Johannes

10,885,958.67
$817170,67771

-

Hartford Fire Insurance Co.

branch

;

..

Vice-President

ties business.

DAYTON,

Liability of CustammersQfrLetitere.

T

John J.

the Gene¬

in

t

JOHN L.COLLYER

stations than any other television
program series,
addition

CHEST ON

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

of Credit and Acceptances: :..:...........

gram

In

7,630.936.14

'292,171,645.09

Loans and Bills Purchased..................

'

Guild Films

The Liberace program series : is
exhibited over in or e television

1954

.

ANDERS ON

AR TH UR M.

closed.

payment of loans from banks,
payment of factors loans, and pay¬
The

Condensed Statement of Condition September 30,

HENRY C. ALEXANDER

these shares will be used for the

ment

YORK

Chairman

the sale of

from

NEW

Ohio

&

office

—

Co.

has

at

1126

JOHN S.

Remmeleopened

a

Oakwood

Avenue under the management of

George P. Johannes.

ZINSSER

\

MORGAN GRENFELL

$ "CO. LIMITED

"

ViceChairman
Merck & Co., Inc.

been

Walston

&

Co., 265 Montgomery Street, mem¬

demands and short-time delivery

GEORGE WHITNEY

offering of 250,000 shares of
Guild Films Co., Inc., common
stock, which was made on Sept.
29 by Van Alstyne, Noel & Co. at
$4 per share was heavily over¬

per

par

FRANCISCO, Calif.—Rob¬

required by customers. Stocks are Francisco Stock Exchanges.

of future coverage.

The

cording to the plan, the stock of- "COnrad Nagel Theatre," "Confering would be underwritten by a nie Haines," and "It's Fun To
group headed by Blyth & C04 Reduce."
Inc. At the present time, Anglo
$20

SAN

INCORPORATED

subscribed

•

Commodity

and

Slock AH Sold

television
show,
the
company
share. - Shareholders currently is -handling the -followWould be permitted to subscriber ing shows "Life With Elizabeth,"
for. the new stock-at the rate of "Joe
Palooka Story," "FYankie
one * new
share for each - four Laine," "Florian ZaBach," "Guild
shares held.'
Transferable sub- Sports Library,!' and "Liberace
sfeription warrants -would be - is- Radio Show/' Other, shows which
sued to shareholders of'record at are not yet in distribution which
the close of business Oct. 5. : Ac^ the company will handle are the

Bank

temporary

declining in price.

DIRECTORS

series of various types on
Directors of the Anglo California motion i picture film for nationNational Bank,.of San Francisco,T wide exhibition by television stoat a regular meeting on Sept. 14, iions. One of the company's prindesignated Oct. 5 as the date for a cipal current program series is
meeting of the shareholders to the television show entitled
take action on a proposal, recom- Liberace, which is both produced
mended by the board, that the and . distributed by the company,
.

at1, $45

to

due

Summer help

returning to school.
Manufacturers supplying automo¬
Reviewing the statistics and the tive parts are optimistic for an
comments in the September in¬ upswing in October as producers
dustrial Purchasing Agents' sur¬ are making commitments and re¬
vey, it is apparent that a normal leasing schedules. Continued high
seasonal pickup is in progress and home building and other construc¬
are
may continue to improve over the tion
expected to maintain
balance of the year. No quick substantial employment in .these
spurt is expected, but a gradual, fields.
steady increase in activity in a
highly competitive buyers'
Heller Bruce Adds
slow and

brighter during September. Again, vance has abated somewhat, the Tower.
there is a sharp reversal of the number reporting decreases is the
recessionary trend of a year ago lowest since March, 1951. Fabri¬
Joins Professional Service
and a step-up in September over cated items of steel, aluminum,
(Special to,The Financial Chronicle)
August. New orders and produc¬ lead and zinc are beginning to
LOS ANGELES, Calif.^-Burdett
tion increases outbalance de¬ reflect the higher prices of the
creases
3
to
1
in the reports, base materials. Keen competition R. Harrison has become connected
while the order improvement con¬ is
retarding a general upward with Professional Service Plan,
1122 Crenshaw Boulevard.
*
tinues to be better than produc¬ movement.
tion. Prices show more strength
Inventories:
Industrial
inven¬
and stability. Inventories are low¬
Walston Adds to Staff
tories
declined
again
and
at
er, with a strong trend to stabilize.
(Special to The Financial Chronicle)
slower pace recorded last month.
Employment is up, with good
SAN FRANCISCO, Calif. —Al¬
The current trend is to stabilize,
prospects for further increase in

Guild Fibre Comon

Net proceeds

stock from

scribed

this

of

some

selective. Old houses

more

up.

will

both

shares, the bank will have out¬
standing 1,000,000 shares.
From

inprMW

Employment:

main office and
to a Vice-Presi-

promoted

was

bought or sold from
Sept. 27, dale of the issue of war¬
rants, until Oct. 27, the expira¬

will

Industrial em¬
24%, the highest
number since March, 1953, report
additions to pay rolls, while the
lowest number since September,
1953, record lower employment,

homes

rants may be

tion date.

con¬

Very few ployment is

decline in operations.

a

dency.

Fractional shares of stock
issued.

Sept. 10.

on

The favorable

strong. market.

show

the Los Angeles

four shares held.

be

poration, New
Haven, Conn.

October. Buying policy remains
joined the bank's staff in
conservative—60 days and under
1941 and became manager of the
Sunset-Clark
branch
in
Holly- —with a further slight extension

stockholders of record Sept. 27, at
the rate of one new share for each

not

Chemical Cor¬

jfe

(Par $12.50)
through rights to

a

died

43 years old.

was

Sept. 22 voted to

s .ares

stock at $35

Vice-Presi-

of America of

Bank

San Francisco, Calif., and nephew
of the late A. P. Giannini, founder

*

Directors of California Bank of
Los

Giannini,

dent of the

page 979.
*

Mathieson

Banking department,

eontinously in various capacities,
including foreign exchange, loan

undivided

Re?

peating. Arms
Plant, p 1 in

which she first joined as a clerk

more

is

Win¬

chester

Hitch

enlargement of capital
will give First National total capi-

C.

Swanton, Di¬

Francisco

Mrs.

areas

are

headquarters
of
the
Bank
of
America, is announced by Presi¬

Oct.

Purchasing

Agents Business Survey Committ e e, whose

Mrs.

the

at

tinued

A coinposite opinion of purchas¬
ing agents who comprise the Na¬
tional

a

generally in balance and most ma¬
terials are readily available.
*
>

Report Business Rise

Marjorie S.
Hitch, heretofore Assistant Cashier, to the post of Assistant Vice-

stockholders to subscribe for the
to shareholders

♦

19

•

merger with the Bank of
Eureka, Anglo's capital funds

$20,000,000,

to the undivided profit account. The increase

one

^(1403)

23, Great Winchester Street, London E. C. 2, England

San

X
V20

Financial Chronicle.

The Commercial and

(1404)

Our

Reporter

Governments

on

By JOHN T. CHIPPENDALE, JR.
A better undertone seems to be

market and this is attributed

developing in the government
In

buyers since they have

drying

spite

The longer-term

going into strong hands,

are

securities

of

'production," and
employment" and comes to

with

even
so

reality

a

Concerning

•

It is believed

some

although it will take

there is

doubt

no

There has been

bit

a

about the

time to get it cleaned

more

new

substantial

a

note

the

up,

Although
some

money

moving into strong hands.
some insti¬

favorable

this,

as

far

new

stimulate de¬
policy, if pursued
enough
subtlety
and
re¬
straint, might go on for some

yield

was

a

before

nesses

and

This, however, has been offset somewhat by *
purchases that were made by other investors, such as pension funds, *
insurance companies and charitable organizations.

inherent

weak¬

destructive effects be-*

the

ments

underlying

maladjust¬

remain

to

can

stability

by endeavoring

and

to-avoid

minimize booms instead of try¬

ing

to

perpetuate them, and by
facilitating needed readjustments

that these

it

In

implies

tience

credit

re¬

that

of

born

are

long-

of

free

some

of

the

fire

insurance

and

Part of this

liquidation is

an

change

controls.
of

s

These

the

It

was> announced on Oct. 1, by
A.'Maxwell, Jr., Director of

in

Bank

Federal

Service, that

land

banks

arrangements for

a

are

the

12

making

public

offer¬

will

terms

of

announce

the

the

the1!

offering at

a

arjd
later

of

providing funds for the
redemption at maturity, Nov. 1,
1954, of two issues of consolidated
bonds, one dated Nov. 1, 1951, out¬
standing
in
the
approximate
amount

of

$70,600,000,

and

ing in the approximate amount of
$100,500,000.
Mr.

Maxwell

stated

also

.

(

that

New

t

HiAGERSTOWN, Md. — Goodbody & Co., members of the New
ed

a

Exchange, have

open¬

branch office at 17-19 North

be. a cash offering; that Jonathan Street under the man¬
no
preference will be given to agement of Joseph H.
Dagenais,
Holders of the maturing bonds in Jr.
Mr. Dagenais was
formerly
making allotments of the new local manager for
Reynolds & Co.




as

of

including

years,

the

United

moment ago.

rough

re-invested ^
a"

the

earnings/ which

I

mentioned

Even if

estimate

and

make

we

take

a

all

out

investments in Canada and all in¬

enterprises,

ada.

petroleum.

would

we

These

maintenance

ulating mechanism of

have

left

amounts

represent

a

savings.

Some
econ¬

omy."

vate

has

concern

-

been

that the rate of

pressed

free

a

cal

investment

slacken

rather

ex¬

pri- 4

new

appeared

sharply

in

appearance

for

largely
and

by

to

1953.

was

ac-

-

security

reduction

a

in "

tinued at about the rate of previ- *

ist in many parts of the globe.

In

of

the

rest

but

even

these

in

cases

dollars

in

foreigners;

techniques

present

re¬

opportunity for improving the lot
of many, millions of mankind. We

collecting four and

billion

the absence of modern

the

of

United States

gold

that

is,

must

a

challenge and

offer

for the postwar

added

period

as a

whole,

reserves

laway

from

the rest of the world, but
instead, have contributed to them.
This has been the end result of
trade

policy, our customs re¬
forms, our aid policy, our military
expenditures, and our private and
public investments abroad. In the
year "the:: same

and

trend

is

at

present i rates
billion and ohe-half dol¬

foreign assets in 1954.
j
Durability in the balance

payments

keep these problems to the

forefront

and

practical

way

cooperate

in every

bring

to

modern

in

a

world

subject

safe.
Nationalistic
in

laws .that

trends

resulting

discriminate

of

the

In

four

past
'

*

years

many

or

down

side.

jeopardizing

either

the receipt of income
investment

from

out¬

Vacillating policies of gov¬
'can
be
warnings
to

ernments

prudent

investors

look

to

else¬

where.
,

I

is

the

seeking

estab¬
in

the

investments

investors abroad.

among

Ordinarily it takes time
confidence.

As

with

to build

'

individuals,

it is best established by a definite
of

course

period of
that

words"

conduct

good

The

years.

"actions

a

saying

louder

speak

was never more

over, as is

over

old

than

apt. More¬

frequently pointed out,

the progress of years in establish¬
confidence
can
be
shaken

ing

overnight.
But
good behavior is
even more

is

the
a

always

re¬

important, the thinking

great mass of the people "
country
can
also
change

the

that

long-continued
not

Governments change and,

real

is

most

for

or

spirit

worse.

It

-

people'

of" the

important.

They

;

either resent the foreigner and his
operation or welcome him as a

well-recognized
and

so express

of

means

<

rapidly improving their
Investment Growth

-

more

•

lives,
themselves by their
own

Nevertheless, in many places
private investment has been mak¬

conduct and through their govern¬
ments.
That is the real flag of

ing

invitation

,

substantial

a

of

attack

promoting-

on

the

develop¬

*

is been

mindful of the extremely
low standards of living which ex¬
ever

this

either for better

principal
slow

its in¬

or

confidence

of

„At the end of 1953, our private
investors had investments in for¬

is

of

of

ment.

All of us-in the free world must
be

determine

against

to

countries}
scarcity of investment
capital and a pressing demand for
funds for development.
!
there

will

for

prospects

prime factor which

restrictions

of

{
however,

the

investors from other lands and in

changing as rapidly
as
those of our generation is not an eign lands of
approximately $23.5
easy thing to assure. But the rec¬ billion on which we have
recently
favorable.

The

quired.

J

problem

events

ord

about

crease?

In

have not drawn

continuing,

What

continuance of this flow

an

this amount to settle

us

for re-in¬

in the peak post-war year of 1950.

living exist where natural
bountiful. In others,
rapidly growing populations are
pressing
hard
on
existing
re¬

country

$7.7

current

without allowing

vested

resources are

stand¬

tion, low standards of education,
and. poor
conditions
of health,

the

billion to foreigners'
assets in gold and dollars.
Thus,

our

even

ards of

low

very

lishment

1948

am happy to report
the first half of 1954

our private investors have
placed
$-344 million in new capital abroad,

of cultivation and tools of produc¬

through

I

years.

that during

earnings.
At an annual
rate this is a larger outflow than

countries,

some

science, tools and technology to
1949, we were bear upon them. But private in¬
approximately in balance. But in vestment is not made for philan¬
the past four years,
from* 1950 thropic reasons.
It is made for
through 1953, the reversal was profit that is freelv available to
pronounced, and our transactions the investor on principal that is

we

credit; direct investby U. S. corporations con¬

ments

re¬

up

Goodbody Branch j

York Stock

the

sources,

lars will be available for building

Jacquin, Jr.

Max
Jacquin, Jr., partner in
Jacquin, Stanley & Co., passed
away Sept. 27.

the

other dated Jan. 2, 1953, outstand¬

this will

Max

in

placing as much
$900 million a year in the rest
the world during the past six'

our

their accounts.

another

ing of consolidated Federal farm
pose

investors

During

our

they paid

about

date.

loan- bonds primarily for the pur¬

have

with the rest of the world

<

time

private

States have been

been

from

ments

agent, Macdonald G. Newcomb, 31
St., New York 5, N. Y.,

Land

proportion

particularly attractive.*
Nevertheless, we estimate
that

profound shift in

1946

years

sulted

Nassau
who

a

world with the

bonds; and that the offering wiill
be
made
by the
banks'
fischl

Tho£.

Payments

changes

transactions

casualty

.

FLB Offer Planned

in

balance of payments.

own

Trading positions,, according to advices, are pretty much on
the thin side in the long government
bonds, and it is believed that,
not too large a demand would have
quite an influence upon prices;

.

all

an
improvement in the
position of many coun¬

flected in

•,

-

ex¬

are

*

hurricane, while on the other hand, higher income nongovernment
obligations have been used to replace the lower income treasuries
so that earning will not be too
greatly effected.

of these securities.

These

>

and in dollar balances and invest¬

aftermath of

Canada

Canada, where conditions

transactions

ments relax the grip of their

Shift

companies have been modest sellers of the Treasury obligations.
has been selling in the shorter-term issues
by these con-;
cerns, with reports now that some of the longer-terms have also

liquidated.

implies

page

tries of the free world.

There

been

forces

Foreign Investment

one-half

that

to

substantial

very

have been

ous

financial

Liquidation by Casualty Companies

indicated

A

At all times it- very substantial supplement to lo¬

The Outlook for Private

marks

Anticipated

problem at this time, it would not take much to
change this condition.

It is

Flow
~

counted

from first

have likewise beep

Demand

period, net of amortiza¬

same

and repayments of principal
U. S. Government loans.

on

commercial

a

Partial

the

as

perspective.

-

passing amount of talk about the demand
which will be developing in the future for the higher income
government obligations. It seems as though the feeling is growing
in some quarters that the larger institutional investors are not
going to find it as easy to put funds to work in the future as they
have in the past. It is believed that the demand for funds for
private placements and mortgages will tend to taper off with the!
passing of time. Although the placing of funds by institutional

.

needed

lending
during

tion

Actually, this

There is more than a

investors is not

be

Continued

making some-;
what enlarged purchases of the higher income governments be¬
cause the demand for loans and mortgages have not been holding
up as well as some of these institutions had expected.
Accelerated

the

public

agencies

reg¬

pension funds have also been switching;
among the various long-term governments, with some of the 3y4s'
being sold in order to make purchases of the 21/2% bonds. Thej
banks

of

$600 million a year which
periods of contraction has financed a wide variety of
the courage and pa¬ other enterprises outside of Can¬

markets, the governing and

same

out-of-town commercial

rate

about

especially

range

making
for
recession
gathered
strength? Would not the people

for the longer-term government bonds is coming from the smaller
life insurance companies, with public pension funds also among
the important buyers of the most distant governments. It is re-;

ported

the

government

restraint,

flation

Although, nongovernment securities continue to appeal to in¬
stitutional investors, there is a minor increase noted in the demand
for the higher yielding Treasury obligations. Part of this demand

by

vestments anywhere "in

uncorrected, and
perhaps be aggravated?
Would
not larger and larger doses of in¬

Higher Yielding Treasuries Attract Interest

times

instead
of
preventing them.
In
periods of expansion this implies

straint.

"Meanwhile,"however, would

not

,

its

fully apparent.

came
.*

not large enough

Such

years

to meet their needs.

or

business

and

contribute

growth

and

with

*

"Government

aug¬

power,"

As I suggested pre¬

year.

made in

to reach the last fruit at the top.

temporarily

mand.

no

note because the

supply,

money

*

of our private investment has been

perfection

by means of infla¬
tionary stimulants would be to
pull down the tree in the effort

best

a

«
-

billion

theoretical

resisted

be

in-

can

there must

resources

"national economic deficits" to

as

for

dollars

one-half

To treat these depart¬

from

ures

denies that

one

"purchasing

thus

the smaller commercial banks were not too greatly

many of

interested in the

No

government

the

ment

"free riding" in the new note, which is-'
future market action is concerned. As against

as

to work.

-crease

offering.

the 1%% of May 15, 1957 did not act as well as
market specialists had expected, the feeling is still

practically

substitute

a

interruptions

always be.

readjustments. The inside

sovereign

a

strong that this issue will eventually sell at the modest premium
was
anticipated in some quarters. According to reports,
was

as

of

utilization of

impossible, they would resort

seem

which

there

editorial

demand

ious danger of die proposal lies in
the fact that, fa* a time, it might

of switching by

amount

new:

a

and

one

-

viously, this total is about three

.

mini¬
is,
of
course, much to be desired. This,
however, does not and cannot
mean
perpetual boom. Interrup¬
tions there must occasionally be,
and something less than complete

demanding the

inflation

to

needed

tutions to make way for the 1%% issue. On the other hand, pur¬
chases of the two-year-seven-month obligation with new funds is
also sizable, because there are investors that are building up

'important positions in the

the

this,

who

are

sible.

quarters that the demand for govern¬
ment securities will improve in the not distant future.
The new
money financing of the Treasury is in the process of being digested,
and

indicates

that

infla¬

uncontrollable

or
,

mum

perpetual
impos¬
In the effort to accomplish

boom

1%% Notes in Demand

in

aware

steadily

was

"Economic growth with a

.

must live

we

states:

far.

"Those

New

that

perpetual boom is impossible.

according to advices,though this has had no appre¬

governments,

ciable effect upon quotations

conclusion

the

good demand in
the higher-income

tion?

"full

currency

an ultimate economic col¬
either through drastic de¬

flation

and

create

to

measures

maintain

a

into

least

become

losing its value and could not
safely be held? Then what could

"full

switches out of these

of

obligations.

'

were

lapse,

'later

or

their

that

cons

offerings which takes place from

obligations continue to have

new

prevent

article,

an

monthly publication of the
Guaranty Trust Company of New
York,
discusses
the
pros
and

time to time.
The near-term

of

of U. S. corporations abroad

the

been able to get the securities they

up of

exports

dollars, about $600 million a year
in earnings by foreign subsidiaries

of

have been after with practically no effect upon prices. The other
factor which is tending to make the feeling better in the govern¬
ment market is the

year

being
brought home and thus do not appear in either of the two figures
I have just cited. In all, new cap¬
ital provided by private sources
from this country has reached at

sooner

entitled "Mirage
Perpetual Boom," the October
issue of "The Guaranty Survey,"

which is appearing for certain Treasury issues. So far, there has
been no rush to get the securities which are Wanted because there
had been no shortage of offerings. This has also been favorable to

the

these

to

a

reinvested directly without

the quiet but improving demand

to

dition

who

mirage

coun¬

in*
newly exported private funds, netof repatriation of capital.
In ad¬

Guaranty Trust Company of New York, discusses

of perpetual boom, and concludes, those
demand a perpetual boom, demand the impossible.

the

providing to other

tries about $900 million

Survey," monthly publica¬

October issue of "The Guaranty
tion of the

Thursday, October 7, 1954

.

were

ors

Perpetual Boom: A Mirage

.

averaging earnings
proximately $1.5 billion
much of which

form

of

came

needed

to

goods

of
a

us

ap¬

year,

in the

imported

through

foreign subsidiaries and
branches of United States corpo¬
rations.

At

the

same

time,

past six years, our

during the
private invest¬

or of
warning.
Moreover, foreign capital is not
so different from
capital at home.

It is attracted
conditions
the

local

to

are

countries

also

investor.

where

favorable
No

to

country

*

can

reasonably hope to attract
foreign investors if its own sav¬
ings

are

Inflation

seeking
or

shelter

popular resistance affects
vestors

abroad.

unfair treatment from

whatever

their

all

in¬

national¬

ity.
It is hardly necessary to discuss
in detail the familiar types of de¬
terrents

which

adversely

influ-.

Volume 180

Number 5366... The Commercial and Financial Chronicle

ence, the investor
today*
It is
probably enough to mention that

of

some

"threats
tion

the... principal

or

,

ones

are

history of confisca¬

a

discrimination.

or

There

also

are

the

the right of ready repatriation of
principal and attractive return. •

is not unlike the

It

which

induce

embark

risks

asso¬

on

.

Importance of Making

-

conditions

two individuals

Restrictions

can

transfer present a

on

long time, because they

a

themselves faster

and

further than

he will find himself queueing up
at the end of the line to receive

permission to transfer his income

involved and must show by a his¬

into

tory of fair dealing that after the

the

he needs.

currency

In

they can alone. They
willing and glad to pay
reasonable price for the risk

I

risk

has

and

when

been

for

both

"

■'

cooperating to provide

are

a better basis for

the flow of in¬

ternational capital.
Sound

large-scale

vestment

from

abroad

assurance

private

in¬

only result
of the security and
can

the right of ready repatriation of

principal and an opportunity for
greater profit than at home.

' Is-

been won, that they will then not

that

a

careless peopie have same:
p r o p e r t y,
When/ they

'

"

back on their bargain and will not, through direct action or ruse
Or
sharp: practice of any kind,,
seek to enlarge their fair share
of the original basis on which the
joint enterprise was begun..
go

>

/

die without
,

w

.

,

ll 1,

a

I

s

.

a

savings

The

Investor's

Alternative

The private investor has a choice
between his own market and op¬
portunities in foreign countries.
Whereas, here, there are good pos¬
sibilities open to him in his own

private foreign investment for

any

venture within their borders that

properly

can

attractive

an

earn

return.
want

I

to

that

emphasize

—

J.

C.

Findlay,
elected Presi¬

was

Association for the 1954-55 season

at the Annual Meeting of the As-

deposit with some bank.

we

..

ways,

sure^te knows how

water"

F.

and

Bank

t

Imperial

Osborne,

of .Canada,

will

members

Committee

serve

on

B.

.

ties

Scott, Dominion Securi-

C.

Corpn.

Limited,

Past-Presi-

dent will be the ex-officiq mem-

ber for the ensuing year.

of Melvin G. Flegal & Co.

in¬ ,your name, just refer to any large
vestment abroad as distinguished^ city telephone directory.)
If you
dertake the extra risks of going from Government programs- happen to own a house when you
to foreign lands to cope with the While much of the criterion for
die, your family may get hun¬
differences in language, law and investment, is equally applicable dreds of letters claiming relation¬
Country

every day, he will need
some additional inducement to un¬

customs.

doubly

He

ciates

will

want

be

to

of his business asso¬

sure

abroad.

will

be

slow to go if he feelsi,that«his

ac¬

tivities

will

he

general

our

of

one

warm

welcome.

substantial

own

direct

private investments abroad, more
than $6 billion is connected with

petroleum and mining enterprises.
funds go where the re¬

These

to be found, and when
needed, and when the

sources are

thev

are

pulling

power is great enough to
the many obstacles, both

overcome

natural and man-made.

both

to

there

may

.

Jn the area of manufacturers
merchandising, such considera¬
are
much less compelling.

or

tions

The

inducements

economic

must

persuade the foreign investor that
his chance for profit is greater.
the

On
/well

be

other

For

nart —rtbat

rur

from

and

merchandising
the large size
.of the investment required and
the length of time in which it can
involved.

normallv

or

And

be

returned

is

far

^greater for natural resources than
in

manufacturing^ or trading lines
that greater security of princi¬

so

pal and return of profit must be
assured.

which

But there

country

a

is

no

can

wav

in

develop

faster for the rapid improvement
-of the lives of its own citbe^s

than by the use of foreign capital
in

turning its natural resources
lying dormant into jobs

otherwise

and homes

and

better living for

the numbers of its people that will
be so employed.

claims

I

provide
of venture capital.
If

reservoir

a

we can pro¬
ceed with mutual trust and confi¬

dence

I

that,

Fure

am

dent Plack

has

Presi¬

as

well

so

said,

forts

the

of

International

in

tion

exoe^tancv

of

converting

and then into

a

r°vo7u-

a

f*r«t

into

business-like

practical

Bank,
»

aonroach

real revolution of

achievement.

or

the .number; of

And

The

high

stocks in

been

yields

of

common

the United States have

vide

some

stimulus to interest in

-investment abroad where the

as¬

Lome G. Smith Joins

K. Henlz & Go.
H. Fentz &

•

Co.. 60 Beaver-St..,-

lation

can

also

contribute to in¬

creased interest in foreign fields.

What

are

the policies which at¬

tract private capital from abroad?
T think they can best be summed
up

in

a

simple

way:

OF CONDITION

Each

September 30,1954

$500,000,000
are paid by insurance companies
for the. 40000
people killed in
.

about

year

automobile. accidents.
Most
of
those killed leave no WILLS, yet

they get "awards"* of from $10,000 to $20,000 or more.
receive

this
should
be killed?
It depends upon the
laws
of
your
state;
but
the.
charices are it jmay go to "rela-r*
tives"

;

you

case

whom

of

part

your

in

' never

you

r

1

City, founded K 1856, Hence,, before you take another
auto ride, you should make a will
the financial community, long ac¬ stating to whom you want this

■

-

/ '

|

.

RESOURCES
Cash and Due from Banks

J

,

U. S. Government; Securities

State and

•.

.

/.

Other Securities

,

79,102,3^1.17
29,385^013.67

.......

.

.

.

.

F, H. A, Insured Loans and

Customers'

.

2,030,075.32

.

vv

Loans and Discounts.

$109^02^77.7a

.

Municipal Securities.

saw.

New York

tive in securities and commodities

award

to

in u^derwriting for

killed.

I

engaged

and

several vears, is exnan^ng

it«

pc-

fivi^es in- the underwriting field.
In

with*this-

Jine

ey nan si on

nro-<

come

lowed
to

go in case you do get
forecast the time may

when states will not bs al¬
issue

to

those

21

Lorne C. Fmith has joined -applicant
the P'rm as Manager of the under¬ WILL.

writing deoartment.

284,856,965.44

.

Mortgages

Liability for Acceptances.

Stock of the Federal Reserve Bank

2,752^87421

3,563,671.51

,

nrior

to

Henfz

&

Co.

over

with- H.

in

was

the

under¬

writing division of Paine, Webber,
Jackson &

Curtis.for three years.
oreceding vears. Mr..
Smith was Regional
Supervisor
of the institutional and under¬

For the seven

975,000.00

.

customers.

dentally

writing department for the entire
Lynch, Pierce,

Midwest for Merrill

.

You

Fenner & Beane.

do

not

automobile

killed.

newspaper

England

that

people

to

with offices

a

need

to

see

were

killed

by

hurricanes this past month; none
of these people had any warning.

securities

to death

Justin

Justin

B.

Steppler,. Inc.

Steppler has formed

Steppler,

Inc.,

fices

at

York

City, to conduct

30

Broad

with

Street,
a

.881,484.25

•

435,072.42

$515,560,726.67

$15,225,000.00

Surplus.

.

.

.

.

.

.

.

.

17,275,000.00

32,500,000.00^
Undivided Profits

.

.

.

Dividend

.

11,113,984.17

Payable October 1, 1954,

Unearned Discount

.

.

.

..........

Reserved for Interest,Taxes,

Acceptances.

$43,613,984.17

Contingencies

435,000.00

2,074,708.76
6,123,816.72

$4,933,376.18

Less: Own in Portfolio

be killed in

an

automobile

other

of

accident

to

Form Justin

#

.

.

740,206.08

4,193,170.10

*

the Penobscot

in

Building to engage in

•

get acci¬

Perhaps you are included in
some Group Life Insurance Flan.
DETROIT, Mich.—C. N. David¬
These plans pay, regardless of
son and Company has been form¬
how yOu die. You do not have to
ed

•

Other Assets

Capital

by the
about >90 New
I

Many more are burned
each week somewhere.

C N. Davidson Opens!

•

2,275,930.95

•

LIABILITIES

up-to-date
corporation
and, employer carries liability in¬
surance
to protect workers and
an

•

a

Every

be in

Accrued Interest Receivable

•

the

unless

he has made

of Tpnhnolo^nv a^d

association

his

and

Banking Houses

*

registrations

Fires, Hurricanes, and Other
Casualties

Mr, Smith ^tten^ed Massachu¬
setts Institute

auto

swears

gram.

security and business.




:

CONDENSED STATEMENT

and one of the oldest ^embers of

of

tion and other methods of stimu¬

by the fact
stockholders

Great American Lottery

The

$500,000,000

security and the lure of
business.
higher profits is sufficiently at¬
tractive.
Special tax considera¬
surance

NEW YORK. of
Main Office, 37 [Broad Stteet

What persons would you like to

powerful attraction for the
private, investor. During the past

in confidence
caoital for in-vestment here has brought some¬
what lower yields. This may pro¬

AND TRUST COMPANY

is
increasing so much faster than
the WILLS are being written.

have

a

-year, the
growth
and the supply of

some

government; bondholders

-

Competitive Yields

these

but

bond which you own.

troubled

much

am

that

we

will, through the channel of pri¬
vate investment as wejl as the ef¬

of

family
must "buy off" before a clear title
ean be given to the real estate or
the stock

to

Court

Probate
most

be; left,whom your

may

economic activity

thus

out

fraudulent;

as

the United States,

and

thue

throw

level, of

case

manufacturing

is

Probably
Will

income in

high

a

of the development of
natural resources than when only

"the

in

United States—surely our greatest

feeling of nationalistic possession
in the

is,

ship.

which

contribution will be to maintain a;

hand, there may

resistance

more

in¬

be

case

beyond those to be pypperly considered in the former.

succeed
^

well

would go

be

approached in a
atmosphere wof criticism!

rather than
Of

And

have been discussing nrivate

ducements in the latter

of¬

New

securities
>

kind

get such

an

in

or

Are

Not

Deposits

669,872.08

...........

......

,

.....

.

.

.^458,450,174.84
$515,560,726.67

any

order

insurance award.
from pneumonia,

You
may
die
polio, heart attack, or some other
trouble which comes on suddenly.

Wills

Other Liabilities ;

Expensive

For some foolish reason, most
people do not like to visit a doc¬
tor, dentist, or lawyer, unless in
pain or some other trouble. This

United States Government Securities carried at
are pledged, to secure public and trust deposits,
and for other purposes as required or permitted by law•

$20,875,735,68
),

as

the new

Executive.

SALT LAKEyClTY, Utah—Melwill is/e§peciaJJfy important
engaging in a seif your name f&^Smith, Brow
curities business from offices at
Jones, or some equally
26 West Broadway under the firm

name

T

0_

bitt, Thomson & Company Lim¬

ke

cannot

and

_

ited;

^oJ6people having

•Jh

Llmited; G. H. MacFarland, NesJ

WILLS- which

make, legal

"hold

gal Opens

number

c

,

a

tothi

-

_

,.

Roger W

ing

,

Secretary; S. A. ^pidle, Coilier, Norris & QuinJan Limited,

un

o

_

,

without charge. "If
you have not made a WILL, go Treasurer.
•
'
■
to your bank tomorrow and ask
s Co*; Bankers' Bond Corporayour banker to recommend some
rZ
lawyer who can make a WILL for
°n Limited; J. F. Van Duzer,
you at
a fair price;
YoU may Mills, Spence & Company Limited;
know some lawyer yourself; but W. J. Scott, Gairdner & Company
you should be
many

of

;

Canada
Deacon,

dent of the Toronto Bond Traders*

These banks want to help

t h i s, to

,

property usu
ally
&

If governments and laws are
responsive to such a convictiopy

the people, their country will
have little trouble in obtaining

y

11

how-

large percentage
of these

-

.Y'l

i

has
,

Fund

u

q

ever

undertaken.

once

success

n

shows,

,.

many of these areas the members
the
the International
Monetary

Coyne Limited

expensive, and temporary wills are helpful.

must be
a

of

is all wrong.
These men will sociation. Other members of the
yer and make a will at once, and treat you fairly.
And this surely new Executive are: W. Sullivan,
re-read it once each year.
Over applies also to lawyers whom Equitable Securities Canada Lim70% of those who. die each day your bank recommends.
ited Vice-President* M
Browttv

truly persuaded and believe
that by the use of his money they
better

Moorehouse

fail to make

Everyone should employ a law-

are

constant fear to the investor that

TORONTO,

Babson, commenting on people who have property, but
a will, points, out difficulties and evils which may
result from absence of a will at death. Says wills are not

exchange restrictions The .private foreign investor must
and multiple rate systems which, be really wanted and welcome not
are both complex and
subject to just by the government at the
considerable instability.
An time, but by the people as well*

ciated with

and for

Toronto C. Moorehouse
..
.
Elect J.

Mr.

There must be mutual confidence.

abrupt aud sharp depreciation can
seriously impair ,the fruits of past
efforts for the foreign investor.

Will

a

By ROGER W. BABSON

to

venture.

common

a

,(1405)/ 21

MEMBER: N.Y. CLEARING HOUSE ASSOCIATION
FEDERAL RESERVE SYSTEM
FEDERAL DEPOSIT INSURANCE CORPORATION

25 Offices located Throughout

Greater New York

22

The Commercial and Financial Chronicle...

(1406)

Continued from first paae
*

'

,

*

T

.

mm

m

mm

flllllAAlr

mm

**

^

-•*

;

v

.'

H

Annril ItllVA
HlJllVfttllUJLV

"All

*

/

m

m

Aftn

■

'

;

what

carried

been available, but it previously
involved relatively * small sums
and there was little inclination to
use it.* In the '20s, for example,
Federal
taxes
represented
less
than 5% of the gross national income. In 1953 they totaled about
20% of the gross national in-

below their prepattern, laden
has thus far not
been in evidence following World
prices

This

level.

disaster,

II.

War

1

'

Those who

prophesy prices and
activity by reading the

business

of

charts

the

have done
past decade,

past

soending.

This

*

tool

has

always

hope will be

we

jng period of peace.
justments have thus
place

the

in

a continuThese ad-

far

taken

environment

of

a

resonably
stable
general
price
level.
While these adjustments
have

been

difficult,

they would
have
been far more painful if
they had occurred during a period
of sharp deflation.
And adjustments which remain to be accom-

$71 billion, "a truly mas- plished will be greatly facilitated
Economists of the newer school, sive sum. Changes in the amount if the historic pattern of sharp
who
watch
aggregate
income, of tax revenue, relative to Fed- postwar deflation can be avoided,
savings
and
investment,
have eral expenditures, can greatly in-,
i am not now speaking of natdone somewhat
better.
Perhaps crease or decrease the amount of ural disasters, such as drought,
the best record during the past 10 money in the hands of consumers from which the Southeast is sufyears, so far as
predictions are and hence influence the level of fering.
These are other probconcerned, has been compiled by economic activity.
■
Uems, calling for programs and
during

poorly

the

come, or

politicians of whichever party was :
Direct intervention in various
in power, who, untrained in eco-. fields helps to check what
might
nomics, simply predicted greater otherwise become a downward
and better things for the Amerispiral.
;/
can

economy.

Does the experience

Regulation of the stock market

j

:

of the past

and

decade mean that we are in a new

of

the

commodity exchanges

introduces

a

degree of stability
notoriously suscept-

era, that with the new tools for into an area
fiscal and monetary control, de- : ible to
psychological waves of opfiation and economic contraction timism and pessimism.
are

longer

no

would

be

threat?This

a

conclusion

rash

a

Federal

in-

deed; it was made before, during
1920, and was proved to have

banking debacle such

as

was

ex-

perienced in 1932-33.

policies of

'

a

special sort.

.

error

m

historic pattern of postdeflation is merely delayed,
the

that
war

•

ful second line of defense.

that it is inevitable.

u*

t.

The

was

mild

as

compared with

previ-

disposal of government is formi-

ous.postwar declines, but the genel*al price level declined 5%. Ag-

to

dable

indeed.

ricutural prices, being

appear.
Prices of raw materials,
including farm products, had been

items

above

In May and June of

economic

of

.soft

for

slowly

1953, signs

contraction began

time.

some

spread

This

goods,

If

the

to creep up.

had

year

stead of

done

to

It

snowballed

major

it

as

time, little would
downturn.

intervene

to

economic affairs

been

in-

was

in

could have

or

But-it-

sponded with
no

clos.e parallel

bank

in

ment

ing

Reserve
mu

were

„

and
,•

.

into

the

the

mind

of

will

not

tolerate

elected

severe

available,

there

de-

have

two occasions when

been only
people failed

to maintain

a
party in power on
rising, price level; with prices
falling, there have been only two

a

re-

occasions when they failed to turn
them out.

m

The
fairs

requirements

to

fiation.
In the 31
presidential
elections since price data became

'***.*'

.

calculated

promote

public officials the fact that vot-

securities, thereby increasthe
reserves
of
member

banks.

manner

.

Treasury
so

to

as

rowings of

managed

facilitate

af-

Need Have No Fear of Deflation

bor-

i
conclude
from
this
review
that the number and effectiveness
0f the tools for

its

the

they do not

case,

insurance

business firms and
governments.

increasing

eco-

move

^

squeeze.

ers

System purchased $1.2 bilof United
States' Govern-

liqn

a

and

More important, there is writ-

_

in

Machinery,
fertilizer,
fuel,"

interest,

quickly.

ten

re-

history.
*
two months, the Federal Re-

serve

deflation.

rates,

competitive
general wel-

fare."

central

our

in

enterprise

degree of promptfor which there, is

a

and vigor

ness

to

freight

other

did; not.

Federal Reserve authorities

than

more

But farm costs do not respond
readily

taxes,

foster

easily have
developed into a

and

'
law

...

this

might

deflation.

Federal Reserve System.
There is now written into

and

downward

This is

a

problem

asso-

wartime and depression periods,

wpc

of

our

comparable with those of 1937-38,
0f 1948-49, and of 1951-53. There

liQ^r/!!ietary'1i)
y ilr? appears to be justification for the
lil*
t^
^°i^S
bope that we can shift from war
1h kanv Lp mlSlt l6 t0 pea.ce whhout major deflation,
r,+w

thp

nvprfpH
nact

there
rvf

19

are

•

Th'P PvnpriAno«
innnthc c.itfcjooJ

manv

tools

in

the

ppnnnmip

trpl

-

could be increased from present
levels> # prices were such as to
permit. New Zealand, Australia,

Uruguay,
the

and

united

Argentina

States

consumption

in

per

livestock

of

ucts
,

If

all

diverted

the

20

from

^
One

.

of

borrowing
a

means

Kit

".u

the

of

at

'

and

Tools

QnrY1A
some

of

these
1

.

most

important

taxing

policy

is
as.

of increasing the amount




viduals, the less

we

shall have to

do with government programs.

>

,

Uncertainties Lie Ahead
As we face the • uncertainties
which lie ahead, both farmers and
administrators

can

tackle

,

the

How is
jn

farmfer to plan

a

ahead

uncertain world? And how

a50uf

who finances him?

man

- Qne

the oW wQyj was to
ride the psychological wave of
current
economic
thinking.
If
times were good they would continue g°od and probably become
way>

better.

If

times

bad

were

they

would stay bad and probably get
worse. This planning—or lack of
Planning—led to the boom of the
Iate twenties and the contraction
of the thirties, and was thoroughly
discredited. Contract your debts
*n &ood times and pay them off
Another approach, and a reac—
tion to the foregoing one, is what
.

million

cellent if we could foresee the
future. It calls for a combination
of foresight and courage which
few people possess. Those who believed thus postponed the puryear, or about 4% more red meat chase of farms back in the early
than was produced in 1953.
1940's, waiting for the price of
One would hardly recommend land to come down. They spent
an overall increase in
dairy pro- much of the past decade in the
duction
under
present
circum- storm cellar, waiting for the hurstances. And one can readily un- ricane to strike,
wheat and
during 1954 were used for
feed grains> hay and pasture it
wouid
provide about a billion
pounds of beef and veal each
corn,

cotton

ducers

into

the

market.

But

the

The third set of adjustments of
which I spoke has to do with par-

of

agricultural

an

as

serves

three

while

types of adjustthey overlap, - are

nevertheless distinct
from
one
another. Remedies which are appropriate to one may not be well
suited to another. Acreage control, which may be successful in
reducing our over-expanded
wheat acreage, is hardly the tool
to use in combating general defiation. Fiscal and monetary policies, which promote a stable price

the

far
be

general level of prices, while
from satisfactory, appears to
improving. 1
what

we

based

on

Mavbe

planning
chology
ning
based

is

not
psy-

contracyclical plannon-cyclical planning,

nor

but

that

Bv

need

current

phrase

I

efficiency

planning

mean

promoting

on

production

than

rather

the

upon

profits or the
avoiding of the losses which resuit from general deflation. Every
of

hope

windfall

possible consideration to the out¬
for

iO0k
But

a

given enterprise—yes!

trying to outguess the future
the

of

movement

price

level

—

the
basis of the record, the profit to

that's

a

different

thing.

On

the investor would

probably be as
of overall
economic stability would be much
enhanced. More and more, indusgreat

and

the

cause

trial concerns are making longtime plans which discount the
mood of the present, whatever
that may be. They are making
plans which take account of eco-

the results

which may help find

agrkultural
available
Walter

new

come

These

ment,

as

a

Wilcox

economist

consultant

to

who

the

a market for and on the normal growth of
increasing citrus production, markets—less on predicted movecan hardly be expected to loosen ments of the price level.
our

the overall price-cost

squeeze.

sPeaking °f price levels, we can House Committee on Agriculture,
If further deflation can
be
say that wbat goes up need not estimates that total agricultural averted, then the other two types
kit ne^Ssarlly COI^e down;
production during the next sev- of adjustment can be accomI
The reason for considering the eral years is likely to run about plished. Not with ease, howeVer!

use

innt
look

i]c
us

the

market place, in accordance with
the economic balloting of indi-

is called contracyclical planning,
The idea here is to expand when,
capita others are contracting, and to be
prod- bearish when the rest of the coun^
' try is bullish. This looks fine on
acres
paper, and would indeed be ex-

+u

The
T Pt
Let

The

in

do

can

we

exceed

fwillinlp^ r,overall
llmgness to
them. js that

e is a w

consumption.

this

of

more

tectoXgy

continue to expand

•

wac

some

nomic growth, plans which indicate confidence m our collective power, both as private citizens and as a nation, to avoid the
catastrophe of severe deflation.
level, will not restore the butter They base their plans more on
market.
Better
merchandising, probable changes in technology

+

effectiveness

i!

hk

ciated with but nevertheless different from the problem of our ticular commodities. Wheat, overhigh
capacity
for
agricultural expanded to meet war-time needs
production The price-cost squeeze and held out of proper price
is felt by almost every segment relationship to other commodities,
of American agriculture.
It is is an illustration. Cattle, which
best measured by the parity ratio, are in the low phase of their price
which stood at 113 three and a cycle, are another. Butter, which
half years ago and today stands has lost ground to margarine, is
at 89. The 113 was extremely fa- a vivid illustration. There are
vorable and admittedly tempo- others. The solutions here are
rary, the result of inflation.
The mobility of agricultural resources,
89 is not far from what might be production controls where they
called a peacetime normal. If one can
be
helpful,
flexibility
of
averages
our
experience during prices, and imaginative merchanthe past 40 years and omits the dising.

a

the

jjWPly to changing needs.

shift need not be large, as preFalling prices and stable costs viously indicated, and it undoubthave resulted in the price-cost edly would be gradual. ;

been greatly the parity ratio averages 92.
Thp rnntrartinn
hrmi.rv.1
i]?creased"and that the compulIf the general level of prices
haif
TnZriai
S10n to use them has been corre- and economic activity holds near
fpvplpd nff at ahint 1 ^2! spcfndingly increased. It would present levels, the price-cost
thP npak
whprp it hnc Yavpa w
f°llow> in
opinion, that fear squeeze need tighten no further,
shout
tho
n^t
qp! mlhf
deflation such as was experiThe second adjustment of which
PresHentFisenhower
tn
fnCed dYrmg the '30s need no I spoke has to do with out total
rpnnrt
«iv
ufiS-a nin .tw ioS lon^er becloud one's business production potential. This was
hlet vir ? judgment. Economic fluctuations expanded during the war and refhp
American
and deflation undoubtedly will mains expanded despite the loss
Jvniv wI!? iq?5 exceeded continue to plague us in the years of wartime and postwar markets,
1 Lo will ever oe able to ahead» but they are likely to be Furthermore, it will undoubtedly
ino
one
win
measure

*00d

*

reaucuons were nomic stability have

pffppf iVP

™adp

price

a

farm costs are based on
long-time contracts, are regulated derstand the reluctance of present
Our
ability to foresee future
promote maximum
employment, by government or are established beef, pork and poultry producers price level movements at best is
production and purchasing power by industrial management. In any to welcome the entry of new pro- limited. Our
ability to stabilize

at that

counteract

the

the

1953, with the knowledge

inclination

and

1923

to

Employment
Act
of
1946,
which provides the mandate "to

•

.

been

addition

at the

control of exchange rates, and the
traditional credit controls of the

tightened, industrial activdiminished, and unemploy-

ment began

In

weapons

mentioned, .it in-'ordinarily responsive to inflation
public works, accelerated and deflation, declined in price
depreciation for defense plants, 20% during this period.

Credit

ity

of

eludes

softness

finished

to

arsenal

accom-

embodies

total production potential.'
everv
reason
to believe that ner
Third is a series of problems as- caDjta COnsumDtion of livestock
sociated with particular commod- procjUcts in the United States when money is hard to get!

The price-cost squeeze which
agriculture
is
experiencing
is
largely the result of the deflation
Unemployment
insurance, we have experienced during the
though a poor substitute for a Past three and a half years. As
job, nevertheless provides a help- was said before, this deflation

equally rash to
say, as some ,do, that nothing has
been learned about stabilizing the
economy during the past 30 years,

that

influence

and

Increasing and decreasing the
livestock population is the timehonored method of adjusting trie

The adjustments which agricul°
Pin~
ture is making may be placed in "uc"™
1
™
three categories,
f .-.
:
; i
: * latinn
frnwth
Ppr
ranita
mMt
The first has to do with the pnnslimn|;on .•* rpaePri
whil#>
overall structure of prices and*
raDita oonsnmntion of 'whpat
costs, or the price-cost squeeze.
.
notatoes declined
Thus the
-The second is concerned with the „ja j.
taken
un
There
is

price supports help apply
the brake to a price decline in
agriculture.

But it would be

structure

problems with more freedom than
would have been possible before
which contains a high percentage passage of the Agricultural Act
of livestock products.
of 1954.
......

in^iuuua

Farm

.

-

to make a shift in the composition
of the diet, toward more livestock
products.
Livestock condense about seven
pounds of dry matter in the form
of grain and other feed to about
one pound of dry matter in the
form of meat, milk and eggs. The
other six pounds are used for heat
and energy or are wasted and can
n°t he recovered by man. Thus,
far more agricultural resources
ar®. needed to provide a diet

viL hv
mpnrlmi/

...

Agricultural Adjustments

*

been

and

Deposit
Insurance
practically
impossible
a

makes

prove to be, they can be
plished more easily within

Agriculture is now in the midst
One way of dealing with our flexibility. Prices can help alloof adjustments from wartime to expanded production potential is cate resources, guide distribution,.

of consumer income available for

war

is reasonably stable, necessary production of a particular crop
adjustments in agriculture occur but have relatively little effect
with relative ease.
on overall production.
-

1812, the War Between the States
and World War I. In each case, it

with

sumption of food during the years
The experience of histpry is that ahead.
Nothing ^remairis *'static.
acreage controls can pull down Whatever
these
changes
may

distortion of the price structure.

When the general level of prices

m

,

losses.^ Both cause unbalance and, with?. By controlling production?
a

■

fAff
KUClflPCC
IVI .lilftalAlftVaJal

vULiVVA

*

*

>

.

Thursday, October 7, 1954

In

the

light

of

our

demon-

strated record in the field of economic prediction, this seems a
reasonable
OCC11TVIOO

approach. It not only
mpfls,]rp

crirnp

nf

prospect for the economy 3 to 5% above the quantity which It will be difficult to make the assumes some
a u e o
.
prosperity in agriculture the market will absorb at stable needed shifts in our overall pat- nomic stability, but it helps esdepends to a marked degree on or slightly lower prices. With the tern of production. It will be hard tablish that stability. Farmers,
prosperity in the general econ- effect of quantity on price as it to lick the special problems of and those who finance them, may

omy.

inflationary

periods

are

is

in

Seneraliy marked by agricultural such
prosperity; deflation is disastrous,
Inflation brings windfall profits;
deflation

brings

undeserved

a

agriculture, production at wheat and butter. But if the genrate could result in con- eral economic boat is not rocked,
can be done.
Changes of some sort are cer-

siderable reduction in farm prices
and farm income.
How

can

this problem be dealt

tain for both production and con-

..

.

reasonable

h

meeting

the

way

uncertainties

of

that

beset the agricultural outlook in
the mid

1950's.

Volume 180

w

Number 5366...The Commercial and Financial Chronicle

>■

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24

(14CS)

Major-

*shot

business"4
would

public purchasing

exists to buy ail

power

In speaking in

New York City
Sept. 30 before the Automobile

on

Dealers

Association

Hampshire

the subject of pres¬

on

American

ent

economic

con¬

ditions,

Bay¬

F.

'

in his talk, referred
stabilizing influence of So¬

Mr.

Pope

of

the

of

cial

Mid¬

prac¬

er."

Chairman
Board

at

is

credit

tically its peak, and for the most
part on a sound foundation, both
for the borrower and for the lend¬

to the

Marine

of

as savers.

"Consumers

Pope,

ard

people

our

Security

in

growth

the

and

pension systems, both public and

He called attention, in
Corpo¬
ra t i o
n, ex¬ support of continued stability, to
pressed the the generally easy credit condi¬
opinion
that tions existing on top of the liquid
the American savings potential, and, in this con¬
economy
is nection, particularly called atten¬
today in a tion to the relatively easy and not
private.

land

considerably
F. Pope

Bayard

unsound availability of credit for

stable

housing purposes.
that in public im¬
provements, the building of roads,
hospitals, schools, we are already
years behind our present needs,

condi¬

tion.

He

in

that

said

his

opinion it might improve a little
or recede a little over the period
of the next year or so, but that
no major changes were to be ex¬

in

pected

the

vital

of

absence

♦changes in the foreign situation.
In referring
to the continued
"There is plenty of

wherewithal
buy the
American industry.

in this economy of ours to

products of
Purchasing power is here and will
remain
here.
We must
remind
ourselves

dynamic
of

of

of our
technological

the

ments,

economy,

improve¬
efficiency

increased
We

costs.

lower

sider

fundamentally

nature

the

and

the

must

con¬

the

impact of the tremen¬
population
increase.
Full

dous

employment, the backbone of. pur¬
chasing power, will be the objec¬
tive of all.

the

high

Anyone who analyzes

level

of

liquid

savings

repeated

said

and

be in

it would

that

the

public interest that these expendi¬
tures
be
considerably expanded
in the next few years to facilitate
whole

the

He referred

economy.

$50 billion road

the next 10 yegrs as
sample of this.
"Obviously,"
Mr.
Pope
said,
"we are in
this interim period

program over
a

a seller's to a buy¬
Competition in nor¬

shifting from
market.

er's

mal times is

in

American

free

enterprise system.
It is good for us. The wherewith¬
al to buy is there to be sold to.
We will sell the large volume that
produce, I believe at a reason¬
able
profit
and
in
accordance
with

Offers

Utility Bonds

in

a

way

condition

a

tion.
Concerning
^'Letter" states:

this

of

stagna¬

point,

the

Oct. 5

and

interest,

accrued

is

"The
this

They feel that the
back speedily to

snap

record

levels

bottom

once

touched

was

implies a lack of
vitality, from which they reason
that

stimulation

most

observers, however, the level

course

of

is

business

needed.

appears

to

To

be

breathing spell in which the
economy
is shaking down, im¬
proving efficiency, making price
and inventory adjustments,
and
gathering strength
for
another
a

rise.

hensive

tivity

stability of

measures

has

of

compre¬

business

ac¬

been

noteworthy
in
The over-all level of

many ways.

whoelsale prices has stayed with¬
in a range of 1V2 % for nearly two
years.

Industrial

moved

almost

the

start

123%

of

and

production

has

horizontally since
year,
between

the

125%

of

the

1947-49

forces.

On

chief

defense

the

the balance

production

1%

since

mid-January,
and personal income has stayed
within that same range since last
November.

product—a
ure

The

gross

national

comprehensive

meas¬

of all goods and services pro¬

duced—was

virtually

unchanged




The

er

durable

consum¬

goods buying.

On the
upward side, there is no single
outstanding feature; the housing
and

construction

has

boom

been

persistent bright spot, but quan¬
titatively it has offset only a small
a

portion

of

the

in

decline

other

lines.

widely

discussed

in automatic

income,
stop
cent

program.

able at regular redemption prices

ranging from 104.75% to par, and
at sinking fund redemption prices
receding from 101.83% to
accrued interest in

Public
is

an

Service

each

Co.

or

to

'built-

stabilizers'

cushion

the

have

decline

case.

of

Colorado

operating public utility en¬
together with its subsidi¬

generation,
transmission, distribu¬

purchase,

tion and sale of

electricity and in

the purchase, transmission, distri¬
bution and sale of natural^gas,

Operations

data

personal

on

show

a

income

decline

from

the July 1953 peak of $5.7 billion
in wage
and salary income, of

which about two-fifths

was

offset

by unemployment insurance, vet¬
erans' benefits, and similar pay¬
ments.

Other

tendency

'stabilizers,'

price

in¬
and

supports

for

withholding

taxes to go down even faster than

income, have also helped
spending

power.

The

of

the

compativ"

strength and liquidity of

are

000.

of

which

in the Denver
For

the

12

around

of

920,-

675,000

are

area.

months

ended

June

30, 1954, the company and its sub¬
sidiaries had consolidated operat¬

ing

revenues

net income of
year

of $59,382,282 and
$7,950,198. For the

1953, consolidated

revenues

operating

amounted to

and net income

was

$56,374,787
$7,854,369.

DENVER, Colo.—Edwin G. Rus¬
sell

is

with

Sherman

sponsibility for action in the

re¬

eco¬

by withholding long-stored liquor
from
the market
which, if re¬
leased

at

an

inappropriate

mo¬

ment, could effect prices unfavor¬
ably.
The

International Revenue

new

Construction of two plants in

H.

Carl

Aiken,

1160

Street.

Carroll, Kirchner

(Special to The Financial Chronicle)

DENVER, Colo.—Joe F. Dennis
has

joined

the staff of Carroll,
Jaquith, Inc., Patter¬
Building.

Kirchner &
son

appear

the logical choice to sup¬

ply both sodium and chlorine for
that

operation,

time

become

On

chemicals.

purchase of
Company was an¬

11,

Aug.

Hegeler

which could in
important outlet

an

industrial

these

for

1954,

Zinc

nounced.

This

sulphuric

acid

company

owns

a

Danville,

plant in

Illinois, which is located only 50
miles

from

away

of National

one

Distillers' sulphuric acid plants at
Tuscola.

view

In

of

formerly

the
acquisition represents a consoli¬
dation of production and sales fa¬

overlapping

cilities at

sales

territories

minimum expense.

a

National Distillers' total invest¬

De¬

code authorizes the Treasury

the

in

ment

chemicals

industrial

liquor pro¬
field
amounts
to
approximately
their » tax
$75,000,000. In recent years about
stamps after sale to wholesalers
whereas
previously
tax
stamps $45,000,000 were realized from sale
cf several
beverage subsidiaries
had to be bought in advance of
which failed to show a satisfac¬
the sale, namelv at the time the
nroducts were moved out of the tory return on the company's in¬
partment
ducers

purchase

warehouse. When this
effective capital

or

becomes

ruling
will

permit

to

to

factory

have

not

to

tied

be

any

uo

longer between the time of pur¬
chase
of tax stamps
and when

producers are being paid
products from whole¬

liquor
for

their

salers.
National

1949

In

Distillers

en¬

tered the field of industrial chem¬
icals

manufacture

to

dium

chlorine.

and

National
ration

metallic
In

Petro-Chemicals

so¬

1951

June

Corpo¬

organized with Na¬
Distillers
having a
60%
was

tional

Some

vestment.

utilized

were

of

the

proceeds
company's
developments.

the

for

growing chemical
Furthermore, some $20,000,000 are
being obtained from sale of the

anti-freeze,
activities

ties

resin

and

for

alcohol
view.

insecticite
facili¬

and

production

fermentation
of

all

which

satisfactory from
These

a

industrial

proved

un¬

profit point of

latter

funds

plus

large amounts previously required
as

working capital in the

tion of the

available

pany's

opera¬

disposed properties are
further
expansion

for

consolidation

and

active

the

of

chemical

com¬

develop¬

ments.

Net

income

for

six

months

ended June
per

30, 1954, was 63 cents
share compared with 57 cents

share for the same period last
Nineteen fifty-four earn¬
ings ore estimated at about $1.40
per share eombared with 1952 net
income of $1.18 per share and 1951

resin and insecticides activities of

per

this

year.

division

have

recently

been

sold because of unsatisfactory op¬

erating results.
20%

interest

Chemical

This

Later in 1951 a
Inter-Mountain

in

Company was obtained.

which
is
80%
operated by Food Ma¬
and Chemical Corpora¬

company,

owned and

chinery

started production of soda
its plant in Wyoming in

tion,
ash

at

$

Petro-Ch|pi!cals' $50,-

000,000 plant at
extracts ethane
from

natural

Tus&Ola, Illinois,
and hydrocarbons

gas,

Panhandle Eastern

the

With

tions, individuals and lending in¬
"The government has taken

readjust its inventory situation

National

(Special to The Financial Chronicle)

sustain

corpora¬

to

the industry

limit may help

time

1953*

Joins H. Carl Aiken

1

financial

stitutions have kept the situation
free of forced liquidation.

may

wholly within the State of Colo¬
stock interest and Panhandle East¬
rado, the principal distribution
ern Pine I.i^e tbo remaining 40%.
center being in the citv of De^rQr
In July 1951 National
Distillers
and the immediate vicinity.
The
acquired U. S. Industrial Chemi¬
company serves electricity or gas
cals through merger and exchange
or both at retail in an area
having
of stock. However, the anti-freeze,
an
estimated

in

although they did not
reverse it.
The most re¬

(July 1954)

plus

par,

population

"The

to

aries principally in the

curtailment

equipment purchases and

added

bonds will be redeem¬

new

gaged

and inventory reduction, together
with lesser declines in business

the

than

tion of the construction

side,

have

$11,950,000

v/ill be

the general funds of the company
and will be used to finance a por¬

been

downward

influences

cluding farm

Unemployment has
significant change since
early April; the number of nonagricultural employees has varied

uni¬

movement, but of
balancing out of opposing

shown

no

that

stagna¬
a

proceeds

loans in the amount of

is

not

on

the retirement of short-term bank

sidewise

average.

less

point

and

It is not the result of

helped

"The recent

important

stability

form

the

new

is

sale

from the sale of
the bonds will be applied toward

one.

tion.

the

to

impressive

an

was

bid of 101.21%.

a

on

issue

at competitive

group

Net

second

and

the

to

3.03 ¥2%.
won
by

approximately

Oct. 4

quarters, and there is no evidence
any substantial
change since.
In the aggregate, the picture of
stability at a relatively high level

of the economy during 1954 is not
a reason for concern
rather than

failure

first

to

of time
be stored in

Stuart & Co. Inc. on bonded warehouses without pay¬
headed a syndicate offering
ment of tax. An extension of this

of

the

of

"Certain groups have question¬
ed recently whether the stability

confidence.

the

between

eight

period

the

years

whiskey

when

from

extend

to

twelve

Halsey,

101% %

New York,

There is also under consid¬

eration

of the sales."

product,

the

of

the Govern¬

industry and

ment.

production and the aggressiveness

appeal

the

both

benefit

should

tax

liquor

Halsey, Stuart Group

$20,000,000 Public Service Co. of
Colorado
first
mortgage
bonds,
3 Vs % series due Oct. 1, 1984, at

the

Ihe efficiency and low cost of the

surveying current business outlook, finds stability restored,
but no indication of stagnation.

monthly survey of gen¬
eral business conditions, the Oc¬
tober issue of the "Monthly Bank
Letter," issued
by the National
City Bank of New York, discusses
the question whether the current
stability of the economy denotes,

chemical division.
Tus¬

tional Distillers'

holding

cise

we

National City Bank of

its

whiskey are 100% ahead of earlier
estimates.
With demand .for the

mate reduction in the Federal ex¬

upsurge."

and

In

I Like Best

company's old established brands cola, Illinois, for production of
up well National Distil¬ 25,000,000 pounds of polyethelene
lers' liquor shipments so far this per annum, and anhydrous ammo¬
nia and nitrogen solutions with an
year are about 10%
above 1953
all helped in maintaining stabil¬
results compared with an overall annual capacity of 50,000 tons of
ity.
ammonia should be
consumption decline of 5% tor the anhydrous
"In part because of these in¬
liquor industry. It is interesting completed for commercial produc¬
fluences, and in part because of
to note that only one-third of the tion in 1955. Anhydrous ammonia,
long-term
growth
factors,
the
nation's whiskey business is done widely used as a basic industrial
confidence of business men and
in straight and bonded whiskies chemical, is also extremely impor¬
consumers
has been maintained.
tant as a fertilizer component. Its
in which field National Distillers
Capital investment holds at a high
is
a
major facior.
Last year's rapidly growing market due to
rate.
A nation scheduling a 4%
consumers' increase in bottled-in- constantly increasing fertilizer
increase in manufacturing capac¬
consumption foreshadows good
bond and straight whiskies is con¬
ity in 1954, and spending many
prospects as an additional income
tinuing in 1954 and is ultimately
more billions to expand transpor¬
source.
expected to obtain a larger share
tation,- utilities, and commercial
of the nation's whiskey market.
Among National Distillers' ten
facilities, is anything but stag¬
This should strengthen the com¬ chemical plants is its large, metal¬
nant. t Consumers who^ spend and
pany's position in the industry lic sodium and chlorine plant at
save' about as usual are anything
and aid in considerable earnings Ashtabula, Ohio, which has been
but depression--minded.
i;
experimenting with titanium proc¬
improvement.
"It is this combination of confi¬
essing through substitution of so¬
During the past few months
dence
and stabilizing influences
dium for magnesium. On Sept. 16,
have
been
hopes in
the
which has allowed the nation to there
cut back its defense program and liquor
industry
that
Congress 1954, Union Carbide announced
construction of the nation's larg¬
business to reduce its inventories might reduce the Federal excise
est titanium plant with an annual
with a minimum of pressure on tax on distilled spirits from $10.50
production capacity of at least
income
or
employment.
The per proof gallon to $9 from which
7,500 tons titanium sponge would
forces which are expected to assist latter figure the tax was raised
start at Ashtabula and that the
recovery
are
essentially
long- on Nov. 1, 1951. As this increase
Government had agreed to pur¬
term in nature—rising population, has obviously resulted in consid¬
chase for a period of five years
research, improving standards of erable rise of illegal production
any part of the output not sold
living,
the emergence
of
new of liquor during the past three
to industry. Production is expect¬
products. As such, they argue for years and also an initial sharp
ed to begin in the early part of
a
gradual and sustained growth decline in legitimate liquor sales
1956.
National
Distillers
would
in business rather than a rapid it stands to reason that an ulti¬

of the

the life blood

Stability Without Stagnation
the

reduction

Tax

Award

October "Letter" of

in¬

corporations, tax reform to
encourage investment, liberalized
housing measures, and the assur¬
ance
of an ample money, supply

yield

We Have

The Security

'dis¬

total

f

and

building

He

to the President's

•stability, Mr. Pope said:

while

declined.

comes

2

if

reduction

maintained

for

must be amazed at the vitality

New

of

Continued from page

Thursday, October 7, 1954

consumers

Tax

ahead.

income'

posable

products of American industry.

and

men

go

individuals

for

Bayard F. Pope, Chairman of Midland Marine Corporation,
sufficient

in

providing an atmosphere in which

Change In U. S. Economic Situation
holds

sphere not by providing a
the arm,' but rather by

nomic

-Pteminent Banker ForeseesKfr

"■

The Commercial and Financial Chronicle...

a)

production

of

other

petroleum
outside

remainder

the post¬

of

the

ment' in

company's income.
disbursements, which
have been made continuously
since 1935, are at an annual rate
of $1 per share.

Dividend

National

Distillers

is

in

sound

financial and working capital po¬

bu¬

Dec. 31, 1953, including
equivalent of $51,442,000
compared with $35,204,000 current

gpdpane,

company

and

interJgt^ with the

being

share which

per

period. Since that time there
has been slow but seady improve¬

by
Pipe Line, for

Supplied

tane, natural gasoline/ethyl alco¬
hol,
ethyl - chloridemand
ether.
Some of these products are sold
under long-term agreements to a
large

earnings of $1.13

represented the low
war

utilized

by

Na¬

sition with current assets of $280,-

688,000

cash

on

and

liabilities.

Book

about $24 at

National

value

Distillers'

at

capitaliza¬

tion consists of 8,484,389
common

stood

that time.

stock

preceded

shares of
by $48,-

Number 5366... The Commercial and Financial Chronicle

Volume 130

(1409/
V

i

r

.I

420,000 $4.25 cumulative convert¬
ible preferred stock and $95,421,765 funded debt. The current price
the shares

of

with

pares

around

of

21

With

(Special to The Financial Chronicle)

Marache, Dofflemyre & Co.,
634 South Spring Street, members
of
the Los
Angeles Stock Ex¬
change.
He was formerly with
Morgan & Co. and Pledger & Co.,
Incorporated.

Consummation of the ambitious

expansion

into

program

in¬

the

CHICAGO,

111. —Raymond

Vilas has become associated

dustrial chemicals field is in sight
with construction of the polyethelene

and
anhydrous
ammonia
plants scheduled for completion
early next year. With further con¬
solidation, improved operating ef¬

Robert

North

Vick
La

&

with

Salle

Company,

Street.

Mr.

33

Vilas

(Special to The Financial Chronicle)

WINTER PARK, Fla. —Arthur
U. Mattson is now affiliated with

LOS ANGELES,
Calif.—George
D. Hansen and Hugh F.

Associates, Inc., 137-139
England Avenue, mem¬
the
Philadelphia-Balti¬

have become associated with Os¬
car F. Kraft & Co., 530 West Sixth

Security
East New

bers

of

in the past was in the investment

more

business in

changes.

of

SMOKING PLEASURE

Chicago for

number

a

and

Midwest

He

was

Stock

formerly

A. M. Kidder & Co.

years.

...

Two Join Oscar Kraft'

(Special to The Financial Chronicle)

D.

with

in 1951 and this
••

With Security Assoc.

(Special to The Financial Chronicle)

LOS ANGELES, Calif.—Willard
Leabman has become associated

com¬

high of 37 reached
year's low of 17.

a

Vilas With Vick

Marache, Dofflemyre

.

Ex¬

with

Flaherty

Street.

Mr. Hansen

was

formerly

with J.

A. Hogle &

Co.

Mr. Fla¬

herty

with

was

Adams-Fastnow

Company.

PAST AND PRESENT

ficiencies and start of commercial

production of the two above

men¬

tioned plants earnings from chem¬
ical

divisions, presently contribut¬
ing about 15% of total income, are

expected to increase to 35% in the
next two years.

Continued
for

ence

consumers'

bottled

in

-

prefer¬

bond

-

and

straight whiskies, in which field
National

Distillers
is a
leading
producer, should enable the com¬
pany to improve further on its

above-average sales relative to
the overall consumption £tid sales
in the liquor industry.

Fiedler Sales

Mgr.
Hemphill, Noyes

For

The securities firm of Hemphill,

•

Noyes & Co., members of the New
York

Stock

Exchange,

has

an¬

nounced

the appointment of Wil¬
liam A. Fiedler as Sales
Manager
in its New York office, 15 Broad
Street, New York City.
.•, Before joining Hemphill, Noyes
last

Co.

January, Mr. Fiedler
Sales Manager in

for 10 years
New
York

was

the

Byllesby

and

office

of

H.

M.

Company,

Incorpo¬
rated, Chicago securities firm.

Venezuelan Sulphur
I Slock al $3 a Share
'

Hunter

Leading Products of

Securities

Corp., New
plans to offer to the
issue of 1,000,000 shares

York,

soon

public

an

of

common

of

Venezuelan

America
"best

stock

at

$3

efforts"

The

basis.-

of the

law

purpose

issued

capital stock

■

on

;

the troubled waters

OLD GOLD

with tobacco!

sulphur
the ac¬

frail canoes, they

relating

side, offering it

and

selling of
minerals, and

thereto.

concessions

Its

principal

assets

in-

"concesssions,

denounce¬
ments
and
applications for ex¬
ploration permits relating to sul¬
phur deposits located in Vene¬
zuela.

.

."

.

It

has

earnings

no

history.
"The purpose of this

/
offering is

to secure the

financing iiecessary

to

program

carry

on

a

of further

exploration in order to determine

Virginia went fishing they took

a

supply of tobacco with them, not for smoking

but for safety. Then, if sudden storms threatened their

sprinkled the precious stuff

as a

the

over

gift to placate the spirit of the

sea.

commercial

They used tobacco for calming

denouncements

the

area"

subsidiary,
studies.

process

offering-

and

owned

.for

by

further

Proceeds

of

the

to.,be

are

applied first
of $175,000 of ob¬
its:* subsidiary and

to the payment

ligations
then

to

of
the

operating

-

of

payment

expenses

and

current

expenses

incident

to
the
financing.
The
balance, estimated at $2,300,000 if
all the stock is sold, will be made

available from time to time to its

It's been that way

it

and

other

mining

intends

to

BEECH-NUT

And in that history, P. Lorillard

Company—America's

oldest tobacco merchants—has played a major part.
*

Nearly 200

years

of experience have taught

provide the best in smoking pleasure. And

us

how to

our

line of

cigars, cigarettes, pipe and chewing tobacco is
the most

complete in the industry.

one

of

'

While these products won't calm the waves, they will
soothe the

spirit. That's why Lorillard stockholders—

backed by nearly 200 years of Lorillard

experience—

have full confidence in Lorillard's future.

-

ing

1,200.000

shares

of

stock.




to

property

explore

commercial deposits of
There are
presently
mon

rights

for

sulphur.
outstand¬
the

com¬

BETWEEN THE ACTS

BAGPIPE

all through the history of tobacco.

{Venezuelan
Sulphur Corp. of
America, through its wholly
owned
subsidiary holds 50-year
concessions

VAN BIBBER

Chewing Tobaccos

friendly smoking sessions.

subsidiary for, exploratory work
geological surveys and, if
commercial sulphur deposits are
found, the erection of a plant and
other processing facilities.

which

Cigars
MURIEL

too, and for smoothing their cares and troubles in

and

Venezuelan

INDIA HOUSE

HEADLINE

social storm,

many a

sulphur de¬

posits exist in the concession and

LEADER

FRIENDS

.

-

whether

King Size

BRIGGS
UNION

refining

elude

•

Smoking Tobaccos
When the Indians of
small

of

Regular A King Size

Regular A King Size

MURAD

Sul¬

Venezuela,
under
Vene¬
zuela law, for the purpose of the
exploration,
mining,
producing,
other

•

outstanding

racas,

quisition

•
•

HELMAR

phur Corp., C. A., which was or¬
ganized on May 21, 1952, in Ca¬

and

KENT

EMBASSY

of acquiring

and

Cigarettes

a

-a -""c

Venezuelan

of

P. LORILLARD COMPANY

organized'
in
June,

was

Delaware

1954, for the

share

per

company

under

all

(par 50 cents)
Sulphur Corp. of

AMERICA'S OLDEST TOBACCO MERCHANTS

•

23

ESTABLISHED 1760

HAVANA BLOSSOM

2G

(1410)

:

The Commercial and Financial Chronicle... Thursday,

Continued from page 3

' 1

ber banks. These reductions changes in nominal

m

m

fMATill

UP

AvtlvlUi

dllffiP
ftfAHVV

*

Ilwviwv »

VA&VJ

The

It

quirements, ene

it became apparent
cash

eral

than
and

that

the

be

been

earlier

that

that the Fed-

would

deficit

had

time

this

about

at

was

larger

expected
would

Treasury

be

heavy borrower during the

a

mainder

ro

(1) A reduction m reserve re-

FIIA and VA

mortgages.

of

the

An

year.

P

available for other borrowers

This

by the

embarking

stantial open market

U.

sub-

purchases of

Government securities,

S.

From

May

Federal

$1.2

Federal

upon

7 through July

Reserve

billion of

the

8

supplied

about

to

banks

reserves

These funds

by these operations.

►enabled member banks to pay off
substantial portion

a

rowing

of their borReserve Banks, and

at

ior the

month of June

their

re-

borrowings at the Reserve
by nearly $400 million,
credit conditions began to

Banks

Thus

he eased at
to

time that

a

later

was

strategic

proved

economic
who

excess

of member banks exceeded

.serves

from

an

standpoint, though those

chose

criticize

to

eral Reserve's action

the

Fed-

bull on Of reserve

demonstration
tions

in

1953

and

to

record

levels.

Reserve

■admit,

actions, but I must
justice to our critics

in

at that

time, that the data carried

■enough weight with
more

caution than

now

if

the

we

would show

again

time by hindsight.
For instance
,

had

an

of the Federal
mittee

itc

at

v

i,

of

near

the

dealers,
dealers
In

For

the

the

instance,

securities

of

cities

to

tightness in

market.

lion

year,

•

Market

close

money

$800 milacquired
year from

the

the

of

year,

d u r i n g the eariy
the System sold
$700 million of Govern-

of

another

1954

securities

ment

order

to

in

absorb

usually

accumulate
of

the

side,

in

which

during
Back

year.

that

the

on

market purin May and

open

resumed

were

June this

market

the

reserves

year

in order to main-

meetincr

Time

nn

ii

1953 through July of this year, part of their indebtedness,
and tbe rates on commercial paper
Any attempt at over-all apdeclined nearly 50%. These drops praisal must take into considerair* yields on short-term paper are tion the following factors:
close to the average for the cor(i) The
first,
and
foremost,
responding phases of other reces- difficulty in arriving at any oversions since the First World War. all appraisai 0f the stabilizing

billion

than

more

excess

reserves.

reserves

Free

than

more

reserves

$800

excess

—

million.
reserves

of

reserves

in

Despite

the

developing

Committee

strength

doubts

about

the

of

billion

dollars.

Having reviewed with you what
has been done by the Federal Rein

serve

the

field

of

credit

and

monetary policy in the recent past
in order to cope with conditions
of
sharp
economic
change,
I

should like to turn

to

now

a

more

difficult task;
namely, that
of
attempting to appraise the results
of such policies. Bankers, busi-

think

if

it

k, i

is

keot

Kept

in

mind

inqia

that

mai

credit and monetary policy exerts
an influence on economic condi-

against "sloppiness" in financial tions on both the
markets during the course of the
release of these funds. More recently yet' purchases were again
undertaken in early September,

to

That action

Ease

with

various

steps in the transition to
of

^ctWe credlt

is

ease

other

policy

a

set

out

frarVkly in the official policy
of the

record

Open Market Com-

enced

sectors

revised

its

of

the

economy,

instructions., to

Executive Committee.

the

The refer-

to

ence

avoiding a renewal^ of
inflationary developments was deloonmo

„oo„oii«o^

or,

i,

„

.

.

,.

market,

but

this

flexihle-

serves

to

was

be

followed.

throughout the last half of 1953,
but were reduced to 1%% in Jam
uary and again to iy2% in April
ooj

i-u:~

the

decline

tions,

in

though

moderate,

unmistakable.
rective
mittee

ot

economic

The

condi-

became

Dec.

15

di-

the

storing

discount

the

rate

re-

to

a

Executive

customary relationship to
market interest rates. After these

reductions, discount rates
the level

Commit-

tee, tneretore, was to operate with

at

were

prevailing prior to .the

Korean outbreak.

Open Market Com-

the

to

markets and had the effect of
more

During the last quarter of 1953,

m

(4)

Reduction

quirements,

in

reserve

July-August

This further

p^mo^lnS Sr°wth and requirements,
the economy, by ac-

reduction

-

ease

tne

m

in

accordance

erai

poncy

condition of
market.

with

of

the

in

re-

1954

in

market

operations,1

connection

timed to take effect

those

objectives, the

Governors

oi

a

money

gen-

Boai\d

rederal

Re-

of

several

total

of

serves.

weeks.

was

—

cine

actions

tive

ease

ieei

even

in

to

contribute

financial

compelled

at

the risk

to
of

to

ac-

markets,

recite

boring

them
you.




is

only

although

an

influencing the
general level of' economic activity,
j£S success
moreover,
is condiimportant

tioned

one,

by various other policies,
and activities of Gov-

programs

'

ernment

cite

To

of |nustrations

|3iij[zers

as

pensaHon

only

couple

unemployment
farm
price

com-

and

f0r example

poids

a

such built-in sta-

impo^tant

sup-

have provided

cushions in the current

high-grade corporate .bonds readjustment. Tax reductions and
and those on
lg -gra e
public debt operations have also
municipal securities 23%.
helped to stabilize the economy,
In the mortgage field, where
F
your principal interest lies, the
j-ne success;or reaerai reserve
discounts that prevailed a year
..X p
ago on 4*/2% Federally insured
activUies and bv the
and guaranteed home mortgages P
moods and impulses of
also have largely disappeared. In
£2
P
addition, rates on conventional
a
]o
6
home mortgages seem to be down
y
and savins
The manf'
approximately k% from levels
dements aHerW ecn^nmie
prevailing a year ago.
stahilitv will
earh
he inflnen^ld
15%,

,

_

.

Availability of Credit

in

some

measure

Ava a
0
Changes in the availability of monetary policy

credit and capital funds, as you
:

pinp

ar

ca" w€dl imagine, are

exreedinelv

of influence will
ablv

under

credit

bv

and

+hf
but the degree

w

vary

consider-*

different circum-

exceedingly aoiy unuer a iii e r e n t circum
difficult, if not impossible, to stances and the effects from any
measure objectively. Suffice it to one element can
J®® ®om"
say that in the spring of last year p
e y isolated and measured,
there were widespread reports
(2) A second difficulty in apabout the shortage of many types praising recent credit and moneof financing with the stringency tary actions is that their full infl¬
of funds in the mortgage market pact cannot be determined for a
particularly subject to complaint, considerable period of time. AcFew such reports are heard today, cordingly, it is too early to apLoan commitments are easy to ar- praise adequately the actions of
range. Mortgage lending on small the past year and a half.

It

deposits

a

period

released

about^$1.5 billion in
The

reduction

on

a

re-

the

extent

over-aii

.

of

the

business

activitv

numwi

clines,

vi

•

when

contracted
credit

economv *

yicivua

the

economic
times

factor

At

recession
and

^

-

of

those

businesses

wanting to maintain'their liquidj£y bad to reduce their expenditures from time to
time, cumulatively inducing Additional reductions in employment and incomes,

at central
reserve
city
one
percentage point on
deposits at reserve city and
country banks; and one percentage
point on time deposits at all mem-

banks;

such

The cost of borrowing has deover the past year

clined sharply
a

half, reflecting, besides the

a

we

have

been

discussing,
reduction in demands for funds
continuing

a

high

'

.
'

'

interest rates, in addition to
meaning lower costs for boraffect economic activity
in the nation through raising the
dollar value of existing assets,

Particularly long-lived assets. This
comes about because the expected
future returns from such assets
are
recapitalized at the lower
rates of interest.

example

rate

of

is

in

stock

the

market where, for instance, rising prices for outstanding investment-type securities have registered the influence of falling inas

nificant benefit, first, in contributing to restraint of what threat-

ened to be an unstable speculative
boom, and, subsequently, in contributing to the moderation of the
business downturn. In the past
few

years,

paper

and securities, although, of

course,

have

in
all

varying
been

degrees.

You

of

the

aware

been

interest
to

cushion

values

of

to

sharply

the

rates

existing

a

have

may

decline

property

increased

in

due

supply

have

under

In

as we

had

almost

moved through

period of record

period

of

we

classical business cycle situation

to deal with

tion

credit

types

What

All in all, howeve*, I-think it

lower

entire

all

area,

is"JRis:

is fair to say that recent Federal
Reserve actions have been of sig-

Even here, however, the effect of

pervaded the
market,
affecting

estate

assurance

would have happened "to the general business and.-economic situation over the past 18 months if
such actions, had been different?
And that question, of course, is
impossible to resolve.
:

has

real

ex-

Basically, of course, .the question that one would have to
answer in. order.,to appraise the
effects qf Federal Reserve action

recently

the

eco-

given

rd expansion and contraction.
onnmical
nf
tho

money saving. TheMecline in rates

in

any

nvpr_nii

a

other

current

At

currently ,n so far as business
are concer.9fe4-

values have apparently not risen

as

the

On

given

c

a

tors.

any

situation.

timG) the economy generally

other fachand, capital

terest rates

well

nomic

with tull

rowers,

One

Cost of Borrowing

actions

•'

mg

-

and

.

..Capital Values.

*

-

v

significant

•

a

corporations

—

supply

monev

as

consumers

This-

uuouiwo

reflecting

liquidation

re-

In duced demand for outside funds
since
by certain types of manufacturing

monev

iizing force in the

■

Finallyj difficult questions
judgment are involved in as-

Qf

*

decline

^.1953 fimnlss in the
K1? ^iUve^SbK

involved. and

demand

new

neebthis period, due to
a modest one Considerlion over Zh
jng

open

carefully

over

.Jp and tbe Open Mar- two percentage points
Committee took several
spe-

of many factors,

on

local^governments auuut n
for
amounted
to

reserve

with

y

Ket

from mid-1953, those

down 20%

i'capital

'

to which I referred

earlier

tively maintaining

the

at

end of July yields on long-term
U. S. Government securities were

#

•

stability

example,

■

(3) Reduction in discount rates:
Discount rates remained at .2%

money

implied that a more
policy of supplying re-

For

Reserve

action

hibit^ a mixture of tendencies

,

,

This

adtive

rates, but they also declined during the first half of 1954.
Yields on long-term securities,

one

Federal

recent

off ^fese excess reserves by sales FederalL Reserve., policy to eco- a^ Tocargovtrnmentf
of Government securities m the nomic stability.
and;

u

cies.

js that such

jug examination of financial developments over the past year

by softening tendencies in

various

of

sessing

ooen

iL.

effect

securilarge

a

uon-farm properties totaled over
$12 bUhon in the Hrst seven
mittee about releasing reserves with respect to each of these fac- months of this year as compared
by a reduction of reserve require- tors will help clarify judgments with a Uttle over $ll hj111®1}
^
ments and later absorbing some " as "to the contribution of recent first seven months of last year,

pressed apprehension within the
Board and the Open Market Com-

Credit

repay

as

action

recessions.

%

liquid

to

well

as

short-

on

tive

'

Actions

Hates charged by banks

highly

short-term

term business loans reacted more
slowly than other short-term

those used for financing capital
investments, have declined somewhat more over the past year than
in corresponding phases of past

borrowing at Reserve Banks

up and down
sides, mainly through its effect on
imderlving
hi«ine«
five factors: the volume of money,
conditions
the dfrectionq it gave
the cost of borrowing, the availaits Executive Committee for onerbility of credit, capital values, and
ations aimed at "avoiding def'la
as we approached the beginning the general liquidity of the econtionarv
tendencies"
wert tem" of the fal1 demands for credit, omy. These factors are closely
uered
bv a caution against
"en'
to keeP the volume of excess re- inter-related but may be discussed
couraging a' renewal of inflation
serves stable at a hiSh level- To separately ■ for purposes of cona?v tendencies "
be yery frank with5 y0U) j ex. yenience and clarity. The follow1953

on

progressively during
this period from a negative % billion dollars to more than a posi-

The matter can be clarified, I

amount

as

Reflecting the foregoing credit
actions,
bank
reserve
positions

and

large

money supply and other highly
in interest rates liquid assets, have tended to
sharp and as wide- maintain the liquidity of business
spread as in the comparable phase and individuals and make them
of any recession since World War "more willing to spend and invest,
I. As is usual during a period of They have also made financial

declines

The

have been

ties

open market powers, first, to re8.

through financial markets.

increase greatly their holdings of

are much less familiar with how
they contribute to stability when
depression and deflation threatens.

?
large amount oi reserves
and assure availabality of ample
credit, and second, to insure

Higher values of existing assets,
as wey as the maintenance of the

Treasury bills, for example,
dropped almost 70% from mid-

a condition of ease in credit nessmen, and economists are genand capital markets. Still later, erally familiar with the way credsales were again made follow- it and monetary policies contribing a further reduction in reserve ute to dampening booms and inrequirements this past summer, flationary developments, but they

requirement

General Liquidity

.

ative changes. The average yield

market

open

tain

reserve

activity.

^

operations in
followed, as I
sketched them for you above.

Coordinating

sons

—expanded

turn

recent high

the

institutions more liquid and willing to lend. Commercial banks,
for example, have been able to

the

of

of

out

rapid mo^ment in interest rates,
yields orf short-term securities
have experienced the sharpest rel-

less

contrast,

lease

.

Pom-

fall,

were

with agreements by the
to repurchase the secu-

after

months

the decision**

Onen

on

summer

However, In July of this year, however,
purchases
were member bank borrowing averaged
meet
the
usual less than $100 million and excess

these

temporary,

serve's

the data obviouslv

£*if
effect upon

-

opera-

through; providing an example of close
aided this coordination of the Federal Re-

but

and

in ail credit areas to raise funds

made

was

demands

of

during the

a

going

were

period

induce

to

us

we

of

end

the

year-end

chases

Those data did not control Federal

flexible

of

execution

of

part

other

close

or

reserves

$1.5 billion of reserves.

season

still at

were

anticipation

bank

incentive for marginal borrowers

re-

policy of have changed markedly since the
keeping reserves at a high but spring of 1953. In April of last
stable level under varying condi- year,
member
bank
borrowing
tions.
Open
market
purchases from the Reserve Banks averaged
supplied,
between
mid-August about $iy4 billion or about $%

and incomes

as

and

could,

quirements at this time
in

the

Open market operations:
sphere provided a graphic

(2)

being indid, back
arguments with
data
showing production, employment,

flationary
up
their

reserve

^d substsinuai financing ing 0£ crops and ^ie replenish%eas,£?/- f *^5 imm - ment of retail stocks in advance
{y'Sflfv 'f}S- treea an esl " of the fall and Christmas sale sea-

J1 ??
funds-

quickly provided

®

in

Z*16

that this additional Treasury
borrowing would not be allowed
1o
reduce
the
supply of credit

Reserve's

.k

interest rates have given a strong

reduction

taking
into
account
ot credit from developing u o Treasury financing needs as well
a convergence oi seasonal y e - as probable private financing rePar\ding p r l-v a t e demands ior qUirements, including the market-

re-

was

.

preYeiYl an ,un'a!r

assur-

ance

n Juy

lvei

mortgage loans. These declines in

1949 and 1959-

.

raising the rates oh

level of. construction

rates, in disother terms of

in

and

counts,

below those prevailing in late

or

«■

1»

Vfe

Wh

growing

brought requirements to levels at

.
.

*»■

October 7, 1954

and

the

high activity

constant threat of infla-

a

of

went
a

from

that

into

a

business contraction,

earliest

phase,

credit

re-

straints helped to discourage speculative excesses, restrain inven-

*

Volume

180

Number 5366

The Commercial and Financial Chronicle

(1411)

27
-r,.V

tory

accumulation,

damp

down

expansion in capital goods

unoue

expenditures, and encourage
ing. Subsequently,- Federal
credit

serve

to

lems.

improvements,
as is indicated by the sustained if
not growing volume of activity in
The

these

of

pace

is

considerably affected
by ready availability of low-cost
long-term financing, a condition
,

which

reeent^SystemjJolicy has
_

had

an
important part in establishing. Inventory liquidation,
moreover, has thus far been

orderly,

with

Continued

material

no

from

/■.'

carefully and continuously in the
period ahead, and Federal Re¬
serve policies promptly adjusted

struction and other

areas.

develop¬

ments will need to be scrutiiiized

encoyrage business capital out-

these

economic

Re-

lays, homerconstruction, and State
and local expenditures for con-

activities

of stock) stock of (name of
pany).

•

Emerging

sav-

hepled

have

Actions

arising from financing prob-

sure

pres-

ble

(c)

and the

e

,

,

i

•

may

donor shall be responsi-

or

for

determining whether
has

person

shall

convey

and

to the minor inde-

vested legal title to the
thus delivered,< but no

feasibly

~

irrevocable

be

transfer

to

custodian

prop¬

the

any

person

todian

of

this section unless
guardian shall himself be or

said

of

custodian

become

accordance

in

3.

Third

parties,

transfer

protected
minor

brokers

as

would

agents,

from

in

adult

such

liability
;:

the ball in seeking enactnient of such legislation,
carry

the

I

with the

their dealings

custodian.

be

the

to

to

proposed

a

apply only to
gifts to children, of course, and
only the given or a close relative

n^yiblem. If together we can contribute to its solution I believe
w.e wi^ all have helped take a

of

Siant step toward the fulfillment
one of the goals of your as-

The statue would

the

child

Custodian.
would

to my

If

serve

the

as

how

see

this

work—-say in my own casC
I tried to* give that stock
daughter.

when

;

could

Let's

state had had such a
then, my broker's answer

would have been

completely dif¬

the

and

money

held

him

by

as

custodian

he

as

deem advisable for the

may

sup¬

port, maintenance, education and
general use and benefit of the

in such manner, at such
times, and to such extent

or

the

as

custodian

in

his

absolute

discretion may deem suitable and

without court order, with-

proper

out regard to the
' to

son

support

duty of any
the minor

per¬

and

without regard to any other funds
which may be applicable or avail¬

able for the purpose.

Any

unex-

the

custodian

securities
from

held

time

registered

in

der

Section

of

state) :-t
by the

All

:

held

other

the

for

to
by Mr.
follows:

Funston

reads

as

powers

shall

under r;

: ^
be

not

any

-

shall

be

maintained

such

in

manner

all

at

and

identify it
minor's property

later than

no

minor

or

one

attains

debenture,

interest

a

year

the

age

evidence

of

instrument

or

iq-;

corn-

as a

or purchase,
any of *:
foregoing.
;
(b) A security is in "registered'

of the
-

authority of this section.

to

,

form"

A person acting

minor

shall petition
Court for such an ac-

the

clearly as the
held by the custodian under the
4.

of the

custodian

to subscribe to

times

to

as

for his acts

security, or any '
certificate of interest or participation in, temporary or intend'
certificate for, or warrant or right-

own

personal funds and property

person

proceedings unless the minor,
of the minor, the legal ■'

monly known

authority of this

the custodian's

other

debtedness, collateral trust certif-' *
icate, transferable share, voting V
trust certificate, certificate of deposit for a security or, in general,
-

section shall be kept separate and

distinct from

when

its

terms

specify a
entitled to the security of'
rights it evidences and-

person

the

specify that its transfer may be:
registered upon books maintained L
no for that purpose by or on behalf
compensation for his services but of an issuer.
'
v . f
other than

custodian,

as

guardian of the prop-

a

erty of the minor, shall receive

^

shall be entitled to reimbursement

for

the

incurred

the

in

guardian

duties

perform-

hereunder.

is

runs

terms

to

The

(d)

its

in

"bearer

to bearer
and

not

of any endorsement.

reason

-

ac->

>

by
i *'•*

"member of the

*

minor's family" whenever used in
this section means the minor's

:

A

the

property of the
acting as custodian

of

security

]A

cording

ex-

minor, when
under the authority of this section, may receive such additional
compensation for his services as
guardian as he would be entitled

his

of

(c)

'

form" when it

as

ance

authority of this section.

rights,

custodian

(a) As used, in,this section
"security means any note, stock,

the

sition of securities held under the

proposed statute referred

a

custodian

to any

bond,

property

custodian

minor under the

penses

same man¬

\

custodian

10.

Chapter

the securities and the pro¬
ceeds of any sale or other dispo¬
as

The

after

followed by a words "as custodian
for (name of minor), a minor un-

public.'

ner

;

<

0f twenty-one years.

name

reasonable

by the custodian in the

the
cus-

authority of this section.'

counting

time

to

his

custodian

of

the

of

the

by

eociation— the promotion of the pended net income shall be held,
general welfare of the investing managed, invested and reinvested
NOTE: (Text

have all

successor

er

ing

so

the whole of the property

or

for

successor

,

representative

any

of

the net income thereof and

a

parent

a

delivered to him.

or

registered

or

of the laws of the State of (enact-

much

of

successor

duties

9.

cus-

ot'

or

held by him

EDITOR'S

the

as

from the property

my

statute

reinvest

time

you again for
bring before
solution to this

opportunity

and

and

bound

application by
act as

any

All

be

be

or

shall apply so much or the whole

minor,

think

want to

you

*

invest

property, collect the income

manage,

that a draft
be retained by. the custodian. The can be prepared which will prove
custodian could
sell securities acceptable to our various state
which would be acquired by a legislatures. Once we get such a
prudent man seeking a reasonable draft, the Association
of Stock
income and preservation of capi- Exchange Firms,
which has altal.
ready pledged its, support, will
so

donor,

property paid

shall

(a) The custodian s^all hold,'

Court

Any

shall

with

purporting to

the

the custodian under

to

see

'

comments

8.

instructions

or

or

by

the

todian.

as

given by a person

or

custodian

herewith.

your

tition

or

may pe-

and

instrument

to

time

family

guardian of the minor

appointment

adult

the validity under this section of
executed

or

accordance

erty of the minor shall have any
rights, duties or authority with re¬

Gifts of Stock to Children

a

the

of

any

required to account to the minor

any

person

in

or

member of the minor's

section,

person

representative

by this section, or
shall be obligated to inquire into

guardian of the

jarise.

is

any

duly acting custodian

no

legal

last acting custodian

authorized

or

securities

that

by

or

spect to any property held at

child under this, statute and could

any

the

duly designated

custodian under this

At any time or times when

there is

whether any purchase, sale or

shall

A Solution to Problems cf

and

been

or

A

authority

;

other person

or

the instructions of any
purporting to be a cus-

a

section

13

page

a

gift made in the manner
prescribed in subsection 1 of this

adoption

developments

as

bank

or

on

as

2.

of counterbalancing act.on to any
unstabilizing

designated

person

any

hereinafter called "the custodian."

great

prompt

The

out

carry

7.

may

custodian under this subsection is

flexibility, permitting
adjustment
to
changing

trends

registrar

todian

"

to

he

foregoing powers. No isof securities, transfer
agent,

person

(Signature of custodian)

policy in a period of
like the present is

quick

advisable

acting

Dated:

writing which

the

suer

above described security(ies).

readjustment
its

in

deem
of

(Signature of donor)

'

ments

1, (name of custodian) do there¬
by acknowledge receipt of the

as required to contribute to the
fullest to the promotion of sustainable economic growth. One of
the major virtues of credit and

monetary

com-

term

parents, grandparents, brothers,',
sisters, uncles and aunts, whether
me
he would. have said, "Sure,
N. Y. Stock Exchange
of the whole blood or the half
Mr. Funston, we can do that for
Draft Sept. 24, 1954
is not so expended, it shall be de¬
blood, or by or through legal
you.
All you have to do is reg¬ AN ACT CONCERNING GIFTS
livered or paid over to the minor to receive if the property held by adoption.
■ ...1
ister the securities in your name
OF SECURITIES TO MINORS
(e) A gift made under authority >
upon
the minor's attaining the him as custodian hereunder were
or you
wife's name as custodian
age of twenty-one (21) years, and held by him in his capacity as of this section to a guardian of t
for
your
daughter.
The stock -1. Any adult oerson may make
in the event that the minor dies guardian, in addition to the other the minor as custodian shall be
will be hers. outright but you'll a gift of securities to a person
before attaining the age of twenty- property of the minor held by deemed to have satisfied the rebe able to sell
it and reinvest who has not attained the age of 21
one
(21) years it shall thereupon him in that capacity.
quirements of this section if the...
the proceeds for her if it seems years
on
the date of the gift
ferent.

Instead

wise.

As

she

of

discouraging

older

grows

you

candet her help you make these
investment
decisions
and
when
she reaches 21

she

take

can

that property held by the
custodian and the income thereof

(hereinafter

referred

"minor")

the

in

to

the

as

following

man¬

be

delivered

donor in his own name or in the

^es

she will know what she is

doing."

name

of any adult member of the

any

looking

minor's family or in the name of
any guardian of the*- minor, followed by the words "as custodian,

for

some

the

years

answer

I

answer

was

I

ago.

I will

hooe

get in the

it

s

near

for

future.
-•

-^

I

-really think this

tias

lot of merit.

a

ent's

point of

and

the

view

tell

the

statute

it

All

in

is
he

broker

securities

device

From the par¬

convenient.

is

do

new

has

to

to

register
way
the

the

requires.

simple

From

the

bro¬

ker's

viewpoint it is equally suit¬
And most important of all,
from the point of view of public
policy, it does not reduce in any
way the protection afforded our
children. It applies only to gifts.

able.

All
a

it

does

given

which he
:«i

is

can

it easier

make

to obtain

for

the flexibility
obtain

now

only by

complex legal document. It en-

ables all
securities

.matter

p^enta to make gifted
to
their
children
no

that

.ease

savings
bonds

they

of

tool

cate

can

the

in

breeder

America" by

in

It

prove

a

a

sponsibilities of tomorrow.
I've

asked

'proposed
to

each

will

take

that

you.

the

copies
be

statute

of

—

this

distributed
-

to

send

sometime
in

such

portant

me

your

soon.

study it

as

reactions to it

Since

uniformity

legislation would be imwe

are

most anxious for




shall be delivr

ered to the person in whose name

they

thus

are

tion

the

in

registered
donor

registered

shall

delivery required

shall

the

if

in

bearer

by

the

adult member of the

minor's

family,

such

terms

prices

shall

he

have

other

than

any

or

the

Itantially
signed by
son

this

section

the

statutes

without

investments

sable

reference

relating
by

invest the minor's

may

form,

to

to perrrisfiduciaries;
prop¬

would be
acquired by prudent men of dis¬
cretion and intelligence who are
seeking
the

reasonable income and

a

preservation

without

of their

reference

relating;'"to
or

by

capital

the

statutes

permissible

invest-

to

fiduciaries' he

"with

Cs Lui

as

by general
resoect to

mav

vote

or

limited

anv

securi-

himThe ma/consent

the donor and-th^per- djrP(>tlv or through a committee
designated therein as cus*other agent to the reorganiza-

todian:*^

^

■

OF

"DEED

GIFT

of
laws of

I,

following

to

de-

^

-

the

securities

Jivered to him within the meanand under the^ authority of

acknowledged^, in,'Wroxv

gifff' duly

such

upon

discretion

and all

any

guardian of the 7-hentsbv
minor, accompanied br a deed o/
person
donor,

times,

deem advisable;
the power in his

absolute

and

retain

and

or

he may

as

erty in such securities,

delivered

be

anv

for

and at such time

he

by this section.

Securities,

(b)

form,

donor to

manner

constitute

itself

of

cus¬

thus

ex¬

by him in such

name
of the
such registra¬

custodian

as

as
are

securities

If the

todian.

sell,

may

property which at

time is held

sole

(name

deliver to

minor,

under

Section

Chapter

the

of

donor)

of

do

hereby

(name of custodian)

under

as

(name of minor), a

Section
r

Chapter

in

r

of
tnr*.

nlIIP

of the Laws of (en-

acting state), the following

secu-

rity(ies): principal amount $

,

description of the security
serial number of security

Certificate

No.——,

shares of the

,

—_

or

representing
(class

or

tion, consolidation, dissolution or
liquidation of any corporations,

the

securities of which may be

held by him, or to the sale,

(enacting state).

——

I hope that you

time

minor,

(enacting state),"

the securities

and

a

of Chapter

of

laws

custodian for

of

,it would apply in your own state
and

the

of

shareowriership

to edu¬
today's children for the re¬

minor},

of

(name

encourage¬

helping

if in registered
registered by the

be

under Section

government

or

them.

same

give

now

can

account
to

successful
ment

with the

how small

shall

/Uv.

<•

change, convert, or otherwise dis¬
pose of any and all of the securi

(a)

form,

Securities,

the

to

over

' '

(b) The custodian

ner:

over

That's the

paid

or

estate of the minor.

herself, secure in the knowledge>4hat through your guidance

for

To the

extent

type

pledge
erty

or

by

lease,

or

to

any

such

corpora¬

ble for any losses to

by

as

are

bad faith or in-

result of his

the

tentional

the property

except such

him

or
result,
the minor's
property in securities which would
not be acquired by prudent men
of discretion and intelligence who

from

wrongdoing

his

investing

seeking

are

"U

In

6.

the

event

of

the

powers

of management which a

^nor^ould have™^ ^ °
(d) The custodian
and

the

deliver

any

may

and

all

°

execute

instru-

Willis M. Summers
.... w««,uivlo

death,

incapacity or resignation of the
original custodian or any successor

Willis M.
Summers, securities
dealer, died Oct. 3 at his residence-

custodian before the minor atthe

tains
years,

age

,!
'

in

Brightwaters, L. I., N. Y., after *•
a long illness.
Born in Brooklyn;":"
N. Y., he was 61 years of age. A

of twenty-one (21)

and

(a) if there is a duly appointed

former general partner in the New*'*
guardian of the York securities firm of Troster;
property of the minor, he shall Currie & Summers, he was, mofe
become the
successor
custodian, recently, a special partner in Tros-- '
but
ter, Singer 8c Company.
(b) if there is no duly appointed
Well-known in the securities^
and acting general guardian of the business, Mr. Summers was an or^"
property of the minor, and
and former President'of

and acting general

i.

the

if

the

member

family
minor

ii.

or
as

successor

the

if

of

the

guardian

a

minor

tained the age

shall

has

of

of

the fairs on Long Island, Mr. Sum-

custodian, or
has not at-

mers was a

of Freenort.

of fourteen (14)

former village trustee
He was also a 32nd

degree Mason.

V l'

successor custodian"
the adult member of

minor,

by

"

guardian

Two Join

will "or duly

the last acting

such designation is

Harris, Upham

(Special to The Financial Chronicle)

acknowledged deed executed by

last

-

Active in civic and business af-'"

minor's

the

be

the

both the Security Traders Associ-

attained

(14) years, ation of New York and National
designate in writing an Security Traders Association.
"'f

he may
adult

minor

of fourteen

age

custodian. If ho
made by the
acting custodian, his legal
representative may designate in
writing ?n pdult member of the
minor's family or a guardian of
the minor a successor custodian.

all

-n

ital.

the custodian, in his name as such

have

or

reasonable income
of their cap¬

a

the minor's family or a

shall

is

and the preservation

rights, powers and duties with
respect to any securities or other
property helcj by tbe custodian,
custodian,

person

bond for the faithful performance

held

to whom delivery has been

either guardian of the
guardian of the property of the minor, duly appointed
in the State of (enacting state) 6r
in the state, territory or country.„
where the minor was domiciled r
at the time of the delivery of the
gift.
• •
♦
11. Nothing herein .contained
shall be construed to prohibit:
gifts or securities to minors in ••
forms other than hereunder.
■
made

of his duties and shall not be lia-

years,,

(c) In addition to the foregoing

person

com-

"pensated for acting as such shall
be under no obligation to give

mortgage of any prop¬

tion.

A custodian who is not

5.

.

1

LOS ANGELES, Calif. — Mortimer P. Joseph and George O.
Thomas have become associated
with Harris, Upham & -Co., 523
West Sixth Street. Mr. Thomas
was previously with Walston &
Co. and Davies & Mejia.

■_

28
r

The Commercial and Financial Chronicle...

(1412)

Continued from page

suits,

5

wear,

men's clothing, children's
shoes and hosiery?

Secondly, it would

The Discount House—A Problem

that

the

seem

the

For Department
and in other companies

company

going to expand," he told me,

Is

to know

the need

"because

each
line,

important

more

build

the

right

more

is growing

about customer wants

day.

To

must
know the wants of the consumer."
you

Advertising agencies have taken
great lead in consumer research
and have been able to effectively
direct their activity to increase
a

demand, but I raise the

consumer

question of whether such research
has
been
used
sufficiently
by
manufacturers in deciding'changes
their

In

products.
retailer-distributor

the

From

edge of the customer is needed,
not only for the merchandise it¬
self, but for the many kinds of
services

which

in

On

wrapped.

this

it

is

problem

efforts have been made

particularly

groups,

be

to

some,

by retail

the

large

fctein, mail order, and department
stores.

As the economy

develops, this

research must be intensified.

Surely

retail

the

at

level

we

need research on all

types of retail
.distribution to determine whether
a

customer-wanted feature of one

type of outlet can be adopted by
another. The test in each case is
what the customer wants.

is

There

for all kinds of

room

I

retailers.

am

not

one

who

be¬

of

forms

different

that

lieves

side

marketing cannot live
aide. If efficient, each

by
form cf
marketing, each type of store, pro¬
vides some service wanted by cer¬
tain and many kinds of customers.

With
ef

ours

a

growing market the size

in America, there is room

for large

stores and small stores,

for independent and chain, service

and self-service, department store
•and

specialty store, credit and
cash, delivery and carry. There is
for the house-to-house

room

with his

vasser

tribution.
needs of

Each
a

can¬

high cost of dis¬
meets

type

group

the

of customers in

its particular way.
One of the

newer

store develop¬

ments is the discount house.

Department

Stores

Discount

and

Houses

Of all retailing, I want to talk
.'^particularly about department
stores, in whose form of distribu¬
tion I have lived my entire
ness

busi¬

life. Also, I want to say some¬

thing about discount houses.
The
as

department store grew
convenience

a

for

up

customer

shopping.
The
ability
to
find
goods to answer wants of the en¬
tire

family under

one

roof,

and

the great ease of purchasing, were

important factors
The

in

its

success.

managements of department

found
the
techniques of
buying and selling many lines of
goods quite similar. These services

.Stores

could be spread over many

gories of merchandise. As

a

cate¬

result,

single managements could success¬
fully and dynamically operate a
large and varied business.
During the period of localized
merchandising, the department
stores
grew
up
fast, and they
initiated many important policies.
Their
adjustment
policy,
"The
customer is always right," gets at
.least lip service from most depart¬
ment stores

regarded

today, and in

as a

many is
life blood ingredient

4© their development.
Credit policies have

a|so been
Important. The department store
employs not only one, but many

forms of credit to meet the needs
.

©f different groups of customers.
This field is still not fully covered.
*

Above all, one thing that prac¬

tically

today
been the

everyone

takes for

can

tremendous

step which they took
Columbus in the early 1380's

in

when

realized

they

that

could make their store grow

if
on

they
only

people paid the price that was
the sales tag. They realized

they could not take the time in¬
dividually to dicker with each
customer

to arrive at

so as

a

satis¬

factory trade. They told me that it
was a tough expedience, for they
initiated this policy in their city.
Their competition took full ad¬
vantage of the old belief people
had that they were better traders
than their neighbors. But the one

price policy
cause

standpoint, much greater knowl¬

Stores

of

won

their

out, not only be¬
determination

to

fairness.

Today the reputation of having
one

price—a fair and proper one
competition—
threatened
by
the
discount

<f

I

apparently undersell it.

Can

the discount house buy merchan¬
dise cheaper from the manufac¬
turer

because

is selling

it

the

stores

other

or

agencies?
satisfied

Are
with

department

retail
customers

enough

service?

If people prefer to buy these
types of merchandise at a lower
price without service, and without
or perhaps even with¬
delivery, the department

guarantee,
out

stores should sell it to
way.

The

ers

them that

.

learn

department
which

want

store

must

services the custom¬

for

each

kind

of

mer¬

chandise. It must lower its prices

tailer
It

and guarantees cost.

manufacturer to

The

discount

house

of

chandise, but also the knowledge
of the goods themselves, and the
proper technique to close a sale.
to
work
on
cost
In May,
determination.
1954, a large metro¬
Through similar studies, retailers politan newspaper in an impor¬
will
not
only be able to meet tant industrial area carried a story
better the discount house threat, of a check on store selling serv¬
but they will know much more ices made by an independent re¬
about their own operations and search group during the previous
how to effect necessary economies Easter
Week.
Twenty-seven
for the competitive period ahead. people had been given $10 each
But this alone is not sufficient. with instructions to spend it all
The
fair trade laws provide
a
quickly—within half an hour. The
serious block. The discount house frustrated shoppers
returned at
today is making those laws in¬ the end of the specified period
operative. The laws ought to be with the report that they could
promtly amended so as to permit spend only $56.80 of the $270 be¬
any
retailer, if he chooses, to cause clerks wouldn't or couldn't
meet a price at which another re¬ wait
on
them. Not one
of the

regular

less

School

Administration, in its
Division, is beginning

Retailing

quantities of goods? Is it able to
sell merchandise with less service
to customers than the

Graduate

Harvard

Business

larger

sells

should

a

be

fair traded product.
the function of the
so

distribute

his

goods as to protect established
prices. If he cannot, we as depart¬
ment stores ought to be given by

has to pay

shoppers had been able to spend
his full
$10 and abide by the
rules. Many reported a tremend¬
ous
indifference on the part of

the clerks. Many of them com¬
pletely ignored the customers.
the manufacturer an opportunity
This did not apply only to de¬
house.
The threat is a peculiar
to sell at the same price as the partment stores, but to all kinds
one, because it is increased by the many sell on credit.
Where is the great potential the discount house and to advertise of retailers in that community.
so-called fair trade laws and by
that price, so customers will know
This
story strikes a familiar
national advertisers' "suggested" discount house may exploit that
we do not intend to be undersold.
chord, because we in Federated
the department store cannot
prices.
I
say
this believing that we have for more than three years
equal? From what I know of de¬
In the '20's, and to a greater
must maintain, in our retail busi¬ been conducting extensive studies
partment store management and
extent in the '30's, some few de¬
ness, the services to our customers of the actual selling that
takes
expenses, I am convinced the de¬
that continually earn their good place in our stores. The results
partment stores and cut-rate drug
partment
store
has within
its
and food stores believed that it
will. This must apply importantly were decidedly better than in thepower the ability to sell merchan¬
was
to prices. However, I also want survey I have just described, but:
necessary
to use a welldise and equivalent service at a
known article, usually of a popu¬
to be understood as not believing they revealed many weaknesses
combined price as low as, and in
lar brand, sold below cost as a
in loss-leader or improper price- and substantial opportunities for
some
cases
lower than, the dis¬
loss leader in an effort to convince
improving the quality of the sell¬
cutting operations.
count house.
prospective customers that all
Also, with regard to the so- ing and the attention given to cus¬
But to do so the department
other merchandise in that store
called nationally suggested price tomers. We were missing many
store needs to know more about
was
products, the manufacturer must sales dollars.
equally cheap. These lossthe costs of each of the services
leaders were
subsidized by the
assume
similar responsibility.
Recently there was dramatic
that it adds to merchandise. With
Some few manufacturers do, and evidence that the retailers' sell¬
sale, at regular prices, of other
this knowledge, it can be com¬
with
some
success.
merchandise. Loss-leader depart¬
They
are ing has not been effective on soft,
pletely flexible according to the
ment
stores
were
particularly
spending large sums in this en¬ goods. In a survey made for thewants of the customers.
deavor. Others, however, are us¬ Federal Reserve, the University
tough on such small specialty
stores as books and shoes, as well
ing every device to maintain only of Michigan Survey Center called!
Flexible Service
a
semblance of their retail price on representative American fami¬
as the dozens of other little shops
What do I mean by flexible
lies.
structure.
that always have been an impor¬
service?
Retailing adds certain
One question asked was "What
They suggest to retail outlets
tant part of community retail life.
services to each piece of merchan¬
that they use larger trade-in al¬ are some of the things, of any
The small retailers were afraid
dise it sells.
This is true of all
lowances. They may sell a com¬ type, you are looking forward tothat this activity would spread. forms of
retailing. Some of those pany's refrigerator with sufficient
buying some time?" In the an¬
They fought to have so-called fair services are* behind-the-counter
food to last a family X number swers there were yearnings for
trade laws, to protect the retail
costs, and others are from the of days,
or
give
the washing homes, for automobiles, for house¬
price of merchandise, adopted in counter forward.
They involve all machine purchaser enough soap hold goods. No consumers ex¬
45 of our 48 states. In some cate¬
of the many things necessary to
to last for six months. The varia¬ pressed a desire for any of the
gories of goods, these laws have make the retailer's raw material
tions are infinite—all designed to soft lines, or for any nondurable
worked well; in many, they have
(the goods received from the man¬ keep the advertised price of the product. No one hoped to buy twonot. Today, the discount house is
ufacturer) most acceptable to the item at the so-called nationally more suits, or additional linen for
selling below so-called fair trade
customer—receiving, warehousing, suggested figure.
the dining room or bedroom.
It
prices, ignoring the law in very
display, selling space, lighting,
These manufacturers even go to seems that there is an opportunity
much the manner of the prohibi¬
porters to clean the stores, trans¬ the point of selling 1953 models to do some better basic selling on<
tion rum-runners. Sometimes
portation, and hundreds of other manufactured in 1954 for those these things.
these lower prices are with manu¬
necessary steps used in varying regular outlets
Selling has, since 1940, become
that attempt to
facturer approval.
degrees with every kind of goods. meet
discount
houses
by
low much less important to the man¬
.A similar problem exists on
Equipment for the handling of prices on promotional models, so agement of the stores than it was.
items not fair traded, but with
sales, their recording, clerical that the 1954 price can be main¬ in the good old days. When I
"suggested" retail prices set by work to insure availability and tained by the regular outlet.
first worked in the Lazarus store*
national advertising and by dis¬ selection of
Neither
of
these
goods when wanted
programs, I had to have a pretty logical and
tributors of national products. In and dozens of other facilities with
however, is satisfactory. I believe reasonable explanation for my
the past these "suggested" prices which
every retailer is familiar that America's department stores boss for the loss of a sale to at
have either been followed by the are also
part of the same type of will, in the not too distant future, prospective customer. If not, I
regular stores, or their orders retailing. The department store conclude that they can no longer was told things that I didn't for¬
were either not filled by the man¬
must also pay the costs of good tolerate
them.
They will insist get very quickly.
ufacturers or distributors, or were
citizenship—make its contribution on the same freedom of action
Today,
in
too
many
stores,
delayed to interrupt proper serv¬ to all kinds. of community ac¬ with regard to the suggested price supervisors who have not come
ice to the retailer's customers. To¬ tivities.
as the discount house uses. They
up
from the sales ranks haveday the discount house is using
no
longer
be
the
show grown to ignore selling responsi¬
Then,
there
are
the
direct will
this "suggested" national price as credit,
window for the manufacturer, to bilities. Many of our colleges with*
delivery, and adjustment
a comparative, and is selling
services that are even more im¬ display a suggested price for the retail courses do not
insist onagainst it at a substantial discount. portant to the department store discount houses to sell against.
laboratory work done behind the
If such a plan is not acceptable counter.
Because
we
have
The
op¬
prospective
customer
is customer. Should these services
shown the established price be
applied
horizontally
to
all to national manufacturers, then it erated for so many years in a

unbeatable by equal

is

its management draws sal¬
aries, so do its salespeople, and its
porters: Many of them advertise;
rent,

.

charged by the retailer, and told tyoes of goods which the store
that, "We can sell this to you for sells? Or, can the store, through
knowledge
of
customer
so much less." The regular retailer
wants,
cannot

meet

this

reduction

be¬

make

a

choice

as

what

to

seems

to

me

that the

department

store must concentrate its

buying

seller's market,
now

laying

with those manufacturers who do

much

police their prices. In addition, it
may
need to develop its own

par¬

ticular services should be applied
to certain goods? It is that choice,

tomers

too

little

want

the managements^
policies know-

down
in

about
the

what

way

cus¬

of sell¬

ing service

and

and how to give it.
techniques involved ingood selling (and it is an interest¬
ing art) need to be restored. This

in

must be handled

cause
he is abiding by the list
price. By this method the discount

house

has

based

on

better

knowledge

brands,
and

of

do

enter

its
into

own

advertising,

those

arrange¬

grown
substantially,
customer wants, that I am urging ments which will make it immune
according to a recent article
the department store to make in from the present sort of lawless
"Life," is now doing a volume of
order to meet the discount house hurly-burly that is threatening.
$5 billion a year.
threat.
But the department stores need
Testing
our
customer's
What must the department
desires through the right kind of more
than
the
opportunity to
stores do about this?
research
can
quickly
tell
us meet the discount house price by
First, it would seem to me they whether the services we are now
price on an equal footing.
need to be definitely convinced
If we are to do our share to
giving can in some cases be re¬

}. that the
lower prices of the disicojunt. house are threatening the

goodwill of the entire department
store.
If
the
department store
price is undersold in refrigerators,

granted has
one-price percolators, furniture and rugs,
IKilicy. I remember hearing from why should a customer have con¬
ny father
and uncle about the fidence in the price of its women's




about

more

it may seem. These

by what such additional services

make it win but also because of its

obvious

whereby the discount house

know

as

costs can be ascertained

to me

to

difficult

which customers obtain, its
by broad promptness, its graciousness, and
classifications of merchandise ap¬ its efficiency.
One of the most important dis¬
plied to goods in much the same
way as the technique of LIFO in¬ tribution tools is good selling —
ventory valuation has been used not only politeness in welcoming
in retail accounting.
customers or directing them to
It is interesting to know that the proper place for certain mer¬
as

department store would

want
means

'

Thursday, October 7, 1954

j

duced

and

in

others

increased.

Of course,
the burden

such flexibility puts
on
the department
store
management to go much
further than they have gone in
ascertaining the cost of each of
-

„

the

services

chandise is

in

which

the

mer¬

wrapped. This is not

.

All of the

promptly or good
marketing becomes impossible.
Surely we have the manage¬
ment techniques to restore the in¬
terest and the organizational di¬
rection that will result in good
selling.
build the market and the econ¬
I have heard of one large, suc¬
omy to a much larger goal, we cessful paper outfit, the manage¬
will need to improve the customer ment of which found after bot!r>
services for which we are charg¬ World War I and World War H
ing. Quality in our services is that they had to discharge their
just as important to the customers entire selling organization and
as quality in our merchandise, and
replace it with other
people'squality, means, the
satisfaction salesmen in order to get over alp

!W*WW»HMiW«M«ro,

Number 5366...The Commercial and Financial Chronicle

Volume 180

of

habits

bad

the

of the

market

of following

the seller's

of

war

such

years.

Continued

Instead

ing

energetic

an

i. The

stores^ are

Last year at this time

establishing, because the
branches have organizational re¬

-

branch

The

directs

satisfaction
and

much

more

stores

our

are

attractive, and
in
they are much more
efficient than prior to World War
II. Customers can get into them,
more

..

ways

many

their merchandise and get

procure

much

in much

and

this

with

them

of

out
ease

"

eral

Motors

greater

said the completeness of changeover to

by how fast an opera¬
and

streamlined

be

can

complished.

But,

ac¬

should also
that the time

we

look for accuracy, so

of the customer need not be used
to

mistakes

correct

which

of

we

guilty.

are

This

applies

Tests

of

phases

many

of

that

show

our

dozens

handlings

of

dozens

and

which

to

conducted

have

we

the

to the
business.

course

particular

a

I

know

ment

stores

these

things.

them

even

pete

in

But

bright economic horizon
for

com¬

that

fields

new

our

opens up

statistical

The

cars

relative

of pro¬

ease

curing goods, the buying function
of the so-called department store
buyer of the past is becoming less
important.
Today*
the * buyer
needs

The

to

assume

needs

be helpful

to

short-cuts

in suggesting
operation and the

of

elimination of red tape to improve
customer satisfaction.

the

As

middle-income

family

of

also

which

goods
wider

a

choice

it

All

this

increase

does

Its

big needs

of

come

American

The

capacity

actual

for

whose

that

they

customers

deal

can

are

with

assured

it

with

confidence, comfort, and pleasant
relations.
There is

this

frorrj new orders already

needs

not

be

advertised

day, but who

comes

likes

trade

will,

which

for

each

with you.

to

Good

of

aspects

our

main asset.

service,

an

be

touches
is

business,

all
our

It is affected by good

of

must

because she

which

good

prices, which

may

not be

Fair

reason¬

are

Steel

and

Iron

output of

a

week

So, mills are stocking up

cars or

sure

the
one,

to be effective in the

golden period ahead.

economy

is to be

tremendous

a

efforts

automobile

industry for the latest week, ended

"Ward's Automotive Reports," assembled an
with 52,860 (revised) in the pre¬
vious week.
The past week's production total of cars and trucks
amounted to 79,472 units, an increase above the preceding week's
output of 10,428 units or 15%, states, "Ward's." In the like week
of 1953 134,400 units were turned out.
1954,

according

"MUST."




sales

Improved

Last

week,

the.agency

reported

there were 17,240 trucks
(revised) in the previous

Canadian

1,032 trucks last week, against 2,058 cars and
week.

ended Sept. 30 from 212 in the

preceding week. Dun & Bradstreet,
Inc., reports. ' While casualties were only slightly heavier than a
when 189 occurred, they exceeded considerably 11^1952

year ago

in the

increased

considerably

to

for the week ended Sept. 17 were.

•

with 29,500 in the prior week.

Prior Week

of apparel

household items

and

were

offset'

in the week

was

estimated

3% below to 1% above that of
a year ago.
Regional estimates varied from the comparable 1953
levels by the following percentages: Midwest and Pacific Coast
—6 to —2; North west —3 to -f L Southwest —2 to +2; South —1
to -f-3; East 0 to +4, and New England +2 to -f6.
better last week than

colors

were

in

a

of topcoats and hats, men's clothing sold
year ago.
Three- button suits in charcoal

greatest

Women's coats, suits,

demand.

dresses

lingeries were also bought frequently. Piece goods sold well
and medium-priced furs were more popular than a year ago.
» ■<

and

Food

purchases

were

equal to those of the preceding week
i

considerably higher than a year ago.

and

Department store sales on a country-wide basis as taken from
Board's index for the week ending Sept. 25,

the Federal Reserve

1954, increased 3% from the level of the preceding week.
In the
previous week, Sept. 18, 1954, no change was reported from that
1953.
For the four weeks ended Sept. 25,

of the similar week in
>

1953, an increase of 2%

was

recorded. For the period Jan. 1 to
decrease of 2%

Sept. 25, 1954, department store sales registered a
below the corresponding period of 1953.
As

a

holidays

result of

and

to

trade

the

like

very

warm

and

the start of the World

York City the

close weather, two religious

Series, retail trade in New
reduced and, according

past week was substantially

observers, sales volume
week

in

wouid be slightly under that of

1953.

According to the Federal Reserve Board's index department
store sales in New York City for the weakly period ended Sept. 25,
1954,

Business Failures Show Mild Decline

markets

The dollar volume of retail trade

to

this country, as against 16,184
week and 22,636 in the like 1953 week.

markets

by Dun & Bradstreet, Inc., to be

estimated 62,232 cars, compared

made in

cotton

by fewer purchases of automobiles and some heavy appliances.

Oct. 1,

Commercial and industrial failures dipped to 192 in the week
our

cotton

14

raw

aggressive promotions by downtown stores in manycities, retail business was better in suburban areas than centra?^
districts in the period ended on Wednesday of last week.
Tota&"
retail trade was essentially unchanged from that of the prior,
week and the corresponding week of last year.
;1

freight for the week ended Sept. 25, 1954,
0.1% below the preceding week, accord¬

growing
on

the

the

In spite of

Output Rises 15% Last Week

U. S. Auto
The

If

part are not only desirable, but a

in

in

tone

in cloth markets encouraged many buyers.

the recovery

Trade Volume Shows Little Change From

below the corresponding week in 1952.

17.6%

..

year

steady.

firmer

46,400 bales compared

Week

1953

are

a

the Government's loan program

ing to the Association of American Railroads.
Loadings totaled 710,215 cars, a decrease of 109,494 cars or
13.4% below the corresponding 1953 week, and a decrease of
151,850

a

Although exports of cotton have been running below a year ago, the week
before they tipped the comparable 1953 level.
Net entries into

distributed by the electric light

will

retailers'

as

was

With the exception
or

they were smaller than

492,600 bales from 355,900 in the preceding week.

Loadings Show Slight Decline Below
revenue

Although warehouse stocks of cocoa con-

accumulate last week,

to

Sales

plants turned out 2.200 cars and
802 trucks in the
preceding week and 7,130 cars and 1,284 trucks in the comparable

aggressive

generally firm.

week

1952.

cars

».

*

There

Turns Upward the Past Week

Previous

allotments.

market moved within a narrow range a week ago

while lambs remained

represented an increase of 86,000,000 kwh. above that of
the previous week, and an increase of 744,000,000 kwh., or 8.8%
over
the comparable 1953 week and 1,493,000,000 kwh. over the

Car

many acreage

smaller imports so far this year. Live¬
ground lost in the preceding week when
reecipts bore down on quotations and reduced the hog
prices to the lowest level in 19 months.
Hogs were most active

This

week in

overplanting of

buyers continued to exercise

heavy

tric Institute.

like

Despite the sharply reduced acreage allot¬
the total carryover would most

ago, reflecting the much
stock prices regained the

Institute announced that the

power

was

markedly
Although there

selling pressure did not develop

wheat crop,

1955

was

tinued

industry for the week ended Saturday, Oct. 2, 1954,
estimated at 9,158,000,000 kwh., according to the Edison Elec¬

and

the

for

cocoa

and

week a month ago the rate was 63.0% and pro¬

Electric Output

dull**

harvest.

slipping in Canadian prices.

large extent.

any

ago.

The amount of electric energy

unsteadiness of the prior week, most grains;
The weakness could be traced ti*.

The

1,502,000 tons,
A year ago the actual weekly production
was placed at 2,146,000 tons or 95.2%.
The operating rate Is not
comparable because capacity was lower than capacity in 1954. The
percentage figures for last year are based on annual capacity of
117,547,470 tons as of Jan. 1, 1953.

"Ward's estimated

and

'"1

.

demand, the rising visible supply, and the

cidedly.

rolled.

operations to establish such good

challenged,

* -

"

caution the past week as
they limited their orders to nearby and fill-in needs.
Commit¬
ments were not expected to lengthen unless prices declined de¬

duction

selling

important part.

■

scoring steady gains, soybean prices slipped noticeably

Flour

The industry's ingot production rate for the weeks in 1954 is
now based on annual capacity of 124,330,410 tons as of Jan. 1, 1954t

who

customer

food prices at the wholesale level. "

-

diminishing demand.

feed and by the

.,

tremendous profit in

a

repetitive

•

likely not be decreased.
The demand for corn continued to be
discouraged by potential imports of Canadian wheat for livestock

week

the

Loadings of
1,013

success¬

'

.

the easiness in wheat prices,

ments

plentiful supply, customers demand quick deliv¬
The mill that can deliver gets the order.

decreased

ably

to

the stores

That store will be most

-

- -

Commodity Prices Depressed By Weakness

despite continued

With steel in

from which it buys these goods.

ful

not

light flat-rolled steel.

are

but

buys,

V*

it

of export markets.

was

up

the

'

Following sharp losses in rye, quotations recovered

upturn in the steel business is here,

booked, this trade paper states. It comes partly from preparations
of the steel industry to meet orders that are expected to come out
in the next few weeks.
To be ready, mills are building up stocks
of semi-finished steel, particularly slabs that will be transformed
into hot-rolled and cold-rolled sheets for the automobile industry,
where bulk of the rise in steel demand is expected to come from.

in the economic scale, it
will not only have a wider choice
goes

>\.rh

In Some Foods and Grains

After

the full respon¬

to know and to like customers. He

i

indications pointed to a heavy

as

"Steel," the weekly magazine of metalworking.
For the third consecutive week, steel ingot production in¬
creased.
A 2-point rise in the week ended Oct. 3 put the ingot
rate up to 68.5% of capacity—highest since June.
In the last
three weeks ingot production has risen 5
ppints.

a department manager,
supervise and intensify the

selling effort of his staff. He needs

f.

*

„

the slow domestic

Scheduled to Hold at 70.4% of

expected autumn

in

were

says

sibility of
and

•"

5

Continuing the

totaled September United States out¬
and 63,000 trucks. •-

Capacity This Week

For the like

the

'

*

'

agency

Steel Output

us.

With

*

,

beginning Oct. 4, 1954, equivalent to
1,678,000 tons of ingots and steel for castings unchanged from the

better in order to

the

'■

'

\

during December.

of
have to do

we

r

v

Wholesale

capacity for the entire industry will be at an average of 70.4% of

many

*

»

'

Lower were wheat, corn, rye,

tice, currants and lambs.

"

^

V-8 power plants and all-

depart¬

doing

are

.

a

is to show the general trend of
.

operating rate of steel companies having 96.1% of the steelmaking

successful

that

'

Inc., drifted slightly-lower to close at 274.73 on Sept. 28/ This
compared with 275.98 a week before, and with 277.32 on the cor¬
responding date a year ago.

improvement in this field is

almost unlimited.

was

.

,

ery.

for

SUghtly:

"

.

mid-November, however, industry production will ~ be
roaring amidst a veritable rush of new model introductions that
are expected to set a buying spree of record proportions in motion

disservice.

opportunity

:

,

oats, hams, bellies, lard, sugar, cottonseed oil cocoa, potatoes and
hogs.,
!:
:...
• »• ': - - *
The index represents the sum total of the price per pound of
31 raw foodstuffs and meats in general use and its chief function

By

slabs from which sheets

The

;

-

com¬

Reflecting the weakness in some foods and grains, the daily
wholesale commodity price index, compiled by Dun & Bradstreet,

sale is subjected. An error in any
one
of these means a customer

real

as

styling will forestall peak output at Chevrolet, Pontiac and
the four Chrysler Corp. divisions until November.
*
,
;

Also, in the many sales-support¬
ing activities of the store, the cus¬
point of view needs to be

tion

$100,000

Higher in wholesale price last week were flour, beef, butter,
eggs,

~

*

tomer

determined

of

slight decline in the Dun & Bradstreet whole¬
sale food price index the past week.
At $6.71, the index was 2
cents lower than the preceding week's $6.73, but it was nearly
1% above the year-ago figure of $6.66.
•There

ness

placed at the forefront. We should
look
for increased
productivity,

excess

In Latest Week

the industry produced 554,906 cars and

Corp.

put at 285,500

is not enough.

;

/

in

on

new

time—but

less

\

;

liabilities

with

Wholesale Food Price Index Declined

explaining October's scheduled drop in output, "Ward's"

In

that

true

is

selling

to

and

customer

to

failed

year ago.

pared with 13 a week ago.

October.
be slipping this month due to
1955 changeover at Ford, Mercury, Oldsmobile and others, the
5,000,000th car or truck of 1954 will be built amidst rising 1955
model output tempo at Chrysler Corp., Chevrolet and Pontiac.
"Ward's" counted 79,472 car and truck completions in the
United States plants last week against a two-year low of 69,044
in the prior week, the increase coming from termination of oneweek inventory at three Buick-Oldsmobile-Pontiac plants of Gen¬

goods.

more

It

management

store

attention

its

'

in the

a

businesses

trucks in September and 615,048 in
But while industry output will

are

1

13%

"Ward's Automotive Reports"

from the new branches

sponsibilities similar to the store
management of a chain. The buy¬
ing is done by the main store, in
much the same way as the chain
does its buying centrally.

liabilities of $5,000 or more declined t<>
previous week but remained above the 156
A slight increase, on the other' hand, lifted
small casualties, those with liabilities under $5,000, to 30 from 25.
yet they did not quite reach their last year's toll of 31.
Eleven

Friday last, said domestic
plants are scheduling only 290,000 cars and trucks for completion
in October, 17% below a near 7-year low of 348,000 in September.
•

good deal about selling
which they

a

Continuing belof^

involving

187

from

of this size

too significant by domestic
in excess of early estimates.
production in the United States increased an
last week but headed towards a new. post-

World War II low in October."

v

department

learning

*

(i4i3),

<,„v,

,

.

level, mortality was down 27% from the 264 recorded
comparable week of 1939.
y.

Failures

162

but volume has been

Motor vehicle

unimpressive

'

pungent sign, "SELL IT OR

SMELL. IT."

Industry

Exports were not at first rated as
scrap consumers,

problem is used in a successful
meatpacking house, where, over
the desk of each executive, is the

,

129 for the similar week of that year.

toll of

.

collections and exports,

buying to compensate for lower winter
continues this trade authority.

the selling

Another emphasis of

very

~

.

or>r:U>

K'*

in the

staff.

our

-■*

The State of Trade and

instead of replac¬

retraining job

5

r

policy, how¬

a

face and do

we

page

k

the pre-war

ever, we in retailing must recog¬
nize the seriousness of the prob¬
lem

from

Or"

registered an increase of

1% zbove the like period of last

In the preceding week, Sept. 13, 1954, an increase of 3% was
reported from that of the similar week in 1953, while for the four
weeks ended Sept. 25, 1954, a rise of 4% was reported.
For the;

year.

period Jan. 1 to

Sept.* 25, 1954,

an

increase of 1% was registered

above that of the 1953 period.

j

>

20

The Commercial and Financial Chronicle...

(1414)

INVESTMENT

DIVERSIFIED

Latin

Mutual Funds

Reports

Pliny

on

Edward E. Hale, our some¬

time
By ROBERT R. RICH

Boston

sent

SALES

Exchange

ties

Series

the

first

Commission and vari¬
Security Commissions

State

ous

OF

National

the
of

Mutual

nine

Securi¬

from

Funds

this

months

will join with investment dealers

totaled

and business leaders from all

history for the period and

United

the

States

at

over

two-day
observance in Houston,. Texas, of
"50 years of industrial growth in
the great Southwest."
a

Hosted by

which

fifth

its

the Texas Fund, Inc.,
coincidentally marking

is

anniversary

as

mutual

a

Vice-President
curities

which

with

old-fashioned

an

chuck

wagon
get-together on
a
129year-old ranch several miles from
Houston.

Visitors

will

provided with
Texas boots, blue jeans, cowboy
shirts, and ten-gallon hats so they
will "feel at home" in a planned
be

roundup, calf-branding and rodeo.
After reliving the early Chuck
Wagon Days of the Southwestern
Plains, the visitors will spend
Oct.

29

on

the

of

tour

a

massed

industrial plants along the Golden
Gulf

Crescent

in

of Texas

Coast

National

Se¬

Sept.

30

87,942,

set

all-time

an

peak

with

compared

end

Total

of

$188,500,000

were

Sept. 30, compared with $133,500,000 at the close of 1953 and
on

of

Fund

K-l

than

more

net

Income

asset

reported
in

10%

gain

a

share

per

during the fiscal
ending Aug. 31, 1954.

of the SouthThe annual report also noted
The party
will see at first hand the physical that the Fund maintained its 1953
dividend rate in fiscal 1954 despite
plant that enables "Tgxas to rank
the fact that further easing of
as "first in sulphui^Jirst in chem¬
icals, first in cotton, first in oil, money rates and higher prices had
generally reduced the rate of re¬
and first in natural gas."
be

will

up

which

in

business forum

a

bankers

investment

presidents will talk out
difference of opinions they
have.

may

The Texas Fund,

investments

which features

the

in

securities

of

of

preferred

stocks

a

as

Comparisons

the

for

fol¬

year

Aug. 31,'54
Total

net

Shares'

assets....

2,162,522

2,112,321

20,309

19,697

44d

44c

$18.41

$16.68

No. of shareholders

Income
Value

share,

per

share,,

per

.

THE

*

.

,

COMMON

Fund of

STOCK

.

Group Securities, Inc. reported
sets

With Allan Blair Co.
CHICAGO,
Moore is

111.—R

o

b e

r

lan Blair & Company,
La Salle Street.

earlier.

year

H.

t

affiliated with Al¬

now

September 30 of $12,double the $6,285,"b7§ a

580,750,

(Special'to The Financial Chronicle)

135 South

increased

NATIONAL

SECURITIES

$8.20 to $10.16;
ou+standing from 766,601
1,236,477.
'
V

to

.

Group Secu¬
rities funds on Sept. 30, were re¬
ported at $68,433,526, compared
with $52,632,709 a year earlier.
During the same period, shares
outstanding increased more than
1.000,000 from 8,845,064 to 9,853,418.

SERIES
Funds with

funds,

varying" investment
objectives, currently inover

350

porations.

of

1954.

$1,860,229

those for

information folder and

prospectus, clip this ad
and mail with your name land address.

Securities

showed

an

Fund

NATIONAL SECURITIES &

CORPORATION

CitMhktdmO

SALES

5, Now York

Over

for

and

the

first

nine

reported by

were

Wilkins, Vice-President.

$14,810,181—
largest for any comparable period
in the Fund's 25-year history and
up 23.9% over sales of $11,951,102 in the corresponding period
last year.

ADMINISTERED

For

1954,

of

first

sales

nine

mdnths

$45,904,292,

were

September

Group Securities/ inc.

also

broke

sales
all

,

of

or

23%

up

nn

Fundamental
runaamentai

In
in-

over

as

sales

September

30

-to/inn

.

„.

a

1954
Y

in

Mr.

Von

t^av

1938°

or

reMve°^Tess

for

faLflrn /all

WhatV ahead for Amer-

P

there

Are

good

common

long-term

stocks

Whpr and

WILLIAM H. LACEY, JR. h^s
been appointed Wholesale Repre-

sentative for North American Se'curities Company in northerh
and the Pa*cifie Northwest, according to S.
ago

California, Nevada

J

Sales of $1.288 741 in the tMrd

quarter of 1954 also were the larg- ;

WaIdo Coleman, President.
North American is investment

est for any comparable period, adviser and general distributor for
They represented an increase-of Commonwealth Investment Com-

businTssfShaU ! invesfSgM ?-t%

an

now?

were

a- year

in the fund

and Commonwealth Stocfe

fif*st;^r-

fS?"

like Period 4aStr year.
Fori Lhe

*
today?"

>

-

^una.

,

1954, sales amounted to $3,558,621 "Ciated with F. Eberstadt & Co.,
compared wlIH $2,824,000 in the Inc., distributors of Chemical

TOTAL NET assets of New Eng^k as
land
Fund were $10,026,152
on

Fund, Inc.

corresponding peribd of 1953.

Sept.

.

.

30,

1954, compared with
Total net ^assets of " the Fund on
$6,699,358 nine months earlier. ~ September 30, last were'at On allA major factor in New Eng- time high of $21,405,146, or $19.08
land Fund's growth during 1954 a
.^.eom(iare'd With ■$».-'
has been appreciation in the
mqr-J794,277 or
share on the

Joins

.

/o

sha4

ket values of the

securities-owned"'same

by the Fund. The net asset value
per share of $20.55 on Sept. 30
was
18% higher than the $17.37

date

a

PERSONALfPROGRESS

Jv

•

The Fund closed the first nine
with

an

or

dealer

share,

or

than

Sheet, New York 5, N. Y.




a

in

3

high of
share,

on

assets

at

$363,245,739,
as

Starnes has become

connected

with- U&mpsey-Tegeler and

or

$19.56

a

Sept. 30, 1953. Welling¬
now

owned

by

,

n(sh1

The 26% increase

m

number of

__

Mr.

Ridgway,

V;

a

who. joined

the

shares

outstanding—489,04? shares IDS organization* ih>.1934, has orthe *1953 ganjzed the Ridgway .Construction
year-end—reflects, in part, a more
widespread Interest on the part of
investors. The New Eqgland Plan,
from

385,690. shares, at

.

,

Karnow has

.

,

joined

..

the staff of
0

Daniel D. Weston &
South Beverly Drive.

Co.,

which was first made available in

1953 by the

na¬

tional distributor and enables inr

oAtrn

vestors to purchase New England
Fund shares as often as they wish
and

reinvest

to

all

U'und

distributions.,

paid by the Fund, has been Wefi
More than 20%

of New

Massachusetts Investors

©ngland Fund's 2,696 shareholders
ate using this plan.
The third

factor

was

the

Growth Stock Fund

mer¬

effective July 1, 1954, of the

ger,

assets of Mutual Fund of Boston,

Mr.

Carl A. R. Berg, the senior partner
of the Boston
firm

of

Massachusetts Investors T

investment counsel

Russell, Berg & Co. and

President of Mutual Fund of Bos¬

ton, Inc. since its organization, is
how a Trustee of New England

LOOMIS-SAYLES

Century Shares Trust

Mutual

Fund,
nearing the close of its ?5»h
anniversary year, announces that
as of Oct, -Ir 1954, its assets had
reached $38,659,631. At the same
time there were 937,876 outstand¬
ing
distributed
among
6,700

now

Bond Fund
OF BOSTON

shareholders.

of

the

48

states

foreign countries.

As of Oct;

$31,010,685
shares

and

in

1, 1953, the fund had
in assets, 847,339
outstanding and 5,800

A prospectus

relating to the shares of any of these separate
maybe obtainedfrom authorized dealers or

investment funds

shareholders.
Directors

declared

a

year-end

VANCE, SANDERS & COMPANY
111

dividend from investment income
of

40

cash
more

Com»-

210 West Seventh Street

_

JOSEPH" M. FITZSIMMONS, ^ny> 210 West Sevenm btreet ;
per share value ^at the end of 1953.
President of Investors. Diversified
#,,
.
This gain was accomplished with1 Servifces, Intf., ;today' announced.
With' Daniel D. Weston
less than 70% of the assets in com- the resignation bf Jatrres,aR. Ridg(Special to The Financial Chronicle)
*
mon stocks and other aggressive
way* Sr.'as Vice-president, MortLOS ANGELES, Calif.—Sidney
securities.'v
'
gag^DlVlStOh. ■
*

.compared

130,000 shareholders- located

all

many

net

$262,055,331,

ton Fund is

Distributors Group, Incorporated
63 Wall

$23.26

with

A PROSPECTUS ON REQUEST
from your investment

all-time

total

t

/

rTTr '
Lt)S ANGELES, Calit. Victor
i

B.

year ago.

Dempsey-Tegder

.

ago.

months

T,

Harry

Ohio Railway, Company before
coming to IDS in 1951.

in 1953.
-

Stocks

succeeds

Degen

attorney for The Chesapeake and

vear

who also appears in the GROSS SALES in September of
leading role in "It Couldn't Be Delaware Fund amounted to $416
Worse," a folder which has had a
758-largest for any similar month
circulation of more than 200,000
jn the Fund's 16-year history and
copies in a year.
un
42% over September a vear

Lre%owWcan°vou h.Tcommo^

T

nrmor urowiey, bprecner anq

were%Ygh™lantlfjvZ

questions discussed

or-

A.

tho firm nf frnwlpv

Jones,

Some of the

IDS

Weeks. Mr. Newcomb was general

Net sales of $8,178,000 for

000

the

tise of law in Chicago, 111., with

com-

months of this

YrYive"'fom'The
features
J
ffor Tonah)
in

been

DEGEN, who has
been on the legal staff of InveStors Diversified Services, Inc.
since 1945, has been elected Sec^
retary of IDS, the company an*nounced today.
:

pared with $1,246,000 by Sept. 30,

1953-

has

Newcomb, who has resigned in
a total of order to resume the general prao-

Caching

Sent

bv

pe-

also increased

over last year^ 812 000

wh0

of

$5,040,705

previous

records for that month and

A Balanced Fund

derwrfters o^
aerwnters

national

nanv

Fund.

the

compared with $40,356,143 in the
like period of 1953.

FUND

of
or

nign.

Kenealy>

HARLEY

*

year

published by Hugh W. *

Tom

and

Inc. into New England Fund.

Gross sales in the third quarter
of 1954 amounted to

THE FULLY

Lone

high" Is tne title
is the~title

too
too

folder

new

received.

.

of

Wellington
the September

months of 1954

A. J.

165%

up

for

shares

quarter

September sales

were

September, 1953.

RECORD

_

120 Broadway. New York

Group

at $12,923,076,

months of

cor¬

For FREE

RESEARCH

all

increase of 80% for the first nine

secu¬

rities of American

of

the $703,000 reported

over

L

joined the staff of
ganiZation in 1947.

yi

of

tors s0 *ar this

wnnHprintr

the latter part of

Sales

vested in

Per share asset value

from

sharpy

Total assets Of all

1 MUTUAL INVESTMENT FUNDS

<£7 Mutual

as¬

of

as

37%

indefinite

an

year,

who
reported
September
$961,000, an increase of

dent,
sales

Aug. 31/53

$39,820,932 $35,226,773

outstanding

companies doing business in the
The combined net assets of the
Southwest, has total net assets of 10
Keystone Custodian Ftinds to¬
more than $16,000,000 after start¬
taled $263,120,700 on Sept. 28,1954.
ing with only $146,786 just five
years ago.

m^ket

values in

low:

u

throughout the

Chairman of the Board and Presi-

variety of pos¬

a

rffn

marKei

i°

whole.

and

company
any

turn

during the

u

Shares repurchased 'rom jnves-

"i'VF

Preferred

value

than

,

.

September, 1953.

™
Written

Stock

by

.

according to Francis F. Randolph,

sessions'."

Sept. 30, 1953.

on

KEYSTONE

reached $10 mil-

Sales °f shares have been wrf1

1953.

assets

$122,100,000

fortune

1954
more

maintained

uncertainlties of

the

test

to

at

76,600 at
Outstanding
shares increased to a total of 32,978,421
from 27,900,000 in
the
same period.
the

some

two-day round¬

„

possessionum varietatibus
experiri,' which,
freely
translated
by
Mr.

on

west's original pioneers.

A feature of the

incerta

Hale, reads, 'It seems safer
of shareowners

T

Investing Corporation's sales for the first nine
of

for

Assistant to the Vice-President,
Mortgage Division, has beem appointed Director-Mortgage Diyismn, and wiil asume responsibility
that department. Mr. Kenealy

STREET

BROAD

fortunae

the

sponsors

consultant
ri0d.

first nine months of last year.

videtur

Tuttus

Corporation

and

manages

The number

year

*'v6mpany with

of

Research

&

months

lion-80%

younger

attention.

funds.

fund, the party will kick off Oct.
28

1953, according to fig¬
released by E. Wain Hare,

ures

Says

which I recommend to your

months of

Ridgway's extensive experience in
the mortgage field IDS had engaged his services as a mortgage

,

Pliny
(100 A. D.), Book III, letter
XIX, I find this maxim,

in¬

an

the

of

ters

the first nine

over

us a copy of a
of Boston

the shareholder, "In the let¬

year

$40,176,371, the highest in
of 9.6%

crease

for

year

one

shareholders.

Fund's

Mr. Fitzsimmons stated that in
order to retain the benefit of Mi*,

last, compared with $31,525,395 a
earlier.
Net asset value per share was
$8.12, compared with $6.27 on
Sept. 30, 1953, a gain of 29.5%.

correspondent,

along to

letter

MEMBERS OF the Securities and

Company and will engage in home
building in Minneapolis area.
* >!

Fund, Inc., a mutual fund investing in bonds, preferred and common stocks, reports total net assets of
$44,804,985 on Sept. 30

Scholar Hale

Thursday, October 7, 1954

cents

on

share

DEVONSHIRE STREET

payable

in
Oct. 15, 1954 to stock of
a

record Oct. 4.

^

The year-end capital gain divi¬
dend for 1954 will be declared

early in November;

**

^

'

BOSTON
NEW

'

6l

YORK

Broadway

CHICAGO
no

South LaSalle Street

LOS ANGELES
aio

West Seventh Street

118

Volume

Number 5366

180

The Commercial and Financial Chronicle

...

(1415)

Continued

of the middle class through heavy

9

page

or

progressive ^taxation

from

line.

inheritances.

and

Pointers for Federal Tax
theless

barbed

reference

Mr.
Eaton to our income tax psychosis
and
to
the phobia so prevalent
here against exicse taxes in gen¬
and

eral

in

excise

uniform

broad

a

by

particular.

Among the

this

consequences of

phobia against excise taxation
the

!

are

The Federal budget is

dered

ren¬

highly vulnerable to varia¬

tions in economic conditions by its
depenaence on t<:e income laxes
for

well

80%

over

of

the

total

Federal revenues;

(2)

There is

popular
even

the

political and

acceptance

and

of

excessive,

of

consequences

(3)

this

method

that

if

acceptance
the

the

of

needed

cannot

revenues

view

governmental

be

obtained

through the income taxes it
had.

the

rate

and

and

it

should

can't
be

not

sought through other tax methods.

that

all

is

method of

distributing the cost of

policies.

For example,

the

minority
bridge

the

inherent

an

they shall

that

mav

ensue are

to be not

only

endured, but welcomed.
These

have
is
a

matters

are

full

an

that

discussion.

NTA

appropriate forum for such
but

purpose,

this

particular
luncheon session is not the proper
time or place.
I propose to dwell

briefly
evils

the

two points, namely: the

on

of tax

rate

progression, and
to the states by

injury done

Federal

monopoly of the income

majority

every

We

i

all

are

Professors

greatly indebted

Blum

and

Kalven

to
of

the

University of Chicago/ Law
School, for their careful review
the

of

literature

of

tax

progres¬

ex¬

foun¬

dations that underlie this concept.1
The power of their discussion is
not

much in the arguments re¬
viewed. for these have been stated

times by others; but in the

provocative evaluation of the

soning
these

advanced

in

rea¬

support

is

travesty

a

the

on

the

points

They

against

ma¬

p*o^.tSoivn.

are:

(1)
terms

of

price

paid

complicating

ture of the income
tax,
the opportunity for

for

it

the

in

struc¬

expanding

taxpayer in¬
genuity directed to lawfully avoid¬
ing taxes, creating very difficult
questions of equity among tax¬
payers, and obscuring the impli¬
cations of any
the tax law."
It

given provision in

of

administration

which

tax

involves.
nificant

and

of

nrogression
It

to

is

find

inevitably
particu'arly sig¬
lawyers who are

frark enough to admit that
stantial

equity

a

sub¬

part of the work they do

a

v.

politically

i

Professor

same

thing

Haig
years

cyclopedia of

the

said much the
in the "En¬

ductivity
This

of

the

society.

point alone in

be sufficient to con¬
practice.
In a highly
developed
capitalistic
society,

demn

the

economic

productivity depends to

unique degree

a

the

on

mainte¬

and growth of capital.

nance

The

capital fund must be supplied out
of savings.
Progressive taxation

impedes

capital

off

formation

income

that

by

could

invested,..and it undermines the
incentive to make this kind of ap¬
plication of-even the small
of income

The

amount

remaining after tax.

conclusion

which

to

fessors Blum and Kalven

at

come

end

their painstaking
the arguments

of

amination

ex¬

of

"The most distinctive and tech¬
nical

arguments
behalf are
the

hard to gain
the

advanced

in

weakest.

its

It

is

much comfort from

special

arguments, however
formulation, con¬

their

structed

on

sacrifice,

notions

ability

of

to

stability.

taxation

is

reducing

den

to

the group

that is

econom¬

ically strong but politically weak.
A reply by some to this criti¬

sor

viewed

as

economic

Taussig

defensible
the

was

in

a

the

whole

policy determination
democratic society by ma-

1 Walter J. Blum and Harry Kalvin, Jr.,

rThe^ Uneasy Case for Progressive

Taxa-

tion," University of Chicago Law Review,
19, No. 3 Spring, 1952.

Volume




the

the

latest

states
of

survey

inequalities."

cannot

states

without

barreled

his heart.

led

in

their
and

of

of

is

on

on

or

virtual

a

Federal

mo¬

nopoly of income taxation may be
The

called.

croachment

has

damage

two

in

done

first,

ways:

of

the

been

the

Federal

en¬

Gov¬

total

on

tax

resources,

the

Gov¬

Federal

ernment, and of- the state and
local
government^
respectively,
in

almost

the

total

collected

taxes

exactly reversed.

were

1932

In

In

degree

to

advance

way

society along the
wed-being. If we
accept the reduction of economic
our

road to greater

inequality
ful and

all

as a purpose so power¬

compelling

that

be

can

to outweigh

as

in opposi¬

argued

tion, there can be no logical stop¬
ping
place
short
of
complete
equalization

down

to

the

denominator

common

ation

our

to find

seem

is

far

from

always

to

in

this situ¬

clear

to

with

owner-

initiat've, thrift,

would

we

I

me.

that

private

enterprise,

lowest
income.

is that our

suoposed

devotion

risk,

of

the

expect

an

ever

would

allow

bigger

slice

the

were

"appeal"
suggests

bigger pie which
to have

everyone
even

same

though

si^e.

not

The

in

progressive
that economic

come

bv

making

progress

taxes

left

pie to be cut into pieces
though constantly
diminishing, size,:
motif

stems

directly

In 1953,

and

be

it

that

all

the

taxes on,

There has been

portance.

tinuing

expansion

services,
for

all

of.

<

a

authority,*-* and

manner

of

con¬

Federal
grants

that*

purposes

of state and
and that could to¬
day be handled at home as well,
were

once

,

local

or

,

matters

concern,

even

better, than by the

The resulting
the states has been

government.

tax squeeze on

terrific. It has induced
to

cen¬

resort

to

tax

some

states

preferences

as

methods

quite

recom¬

states

adopt

compel,
uniform

a

guide

to

that would provide
sort of specific

some

allocation.

tax

is

It

dwell

not

my

simple

the

on

basic
are

of

to

program

a

as

feature

taxes

here

purpose

developed

but

that all

*

length

at

.

solution.
it is the

economic fact
paid out of in¬

either
it

as

as

income

is. spent.

is

received

or

The Federal Gov¬

ernment has established so nearly
a

monopoly of taxation
is received

it

as

the

on

income

as.-to undermine

ability of the states to get a
snare,

proper

income

state

whether

which

this

over

many

state

tax

dignified

Association
years.

It

has

has

administrators

snooping

at

for
stood

forced

into

the

un¬

state

borders fdr the nickels and dimes
that might be collected from citi¬
who

stray into liquor stores

to

by

full

fi¬
re¬

the

you

bank

taxation

estate

tax.

the

and

These

mat¬

ters may

appear of minor impor¬
today. They were live issues

tance

then and

vigor

they

and

tion that

a

were debated with
strength of convic¬

fortified

was

by the di¬

vergent state interests.
matters

that

have

I

The

two

before

put

J*

here in barest outline, namely

you

tax progression and

centration,

are

much

the

than

tant

Federal

taxation

con¬

impor¬

more

banks-

of

and estates. Progressive taxation
unsound in

tion,

once

short

that

cesses

economic

is

theory and its applica¬
begun, can never bedestructive

of
are

threat

a

future.

ex-,

to

The

our

growing

concentration of fiscal and politi¬
cal

in

power

threat to

union

a

states-* and

of

of life that

way

the

Washington

is

a

form of government'

our

the-

to

enjoy under-

we

Constitution.

I suggest

that the National Tax

Association

nothing

could

economic and

our

in

engage

beneficial for both

more

political so-

our

-

ciety than a thorough discussion
of these topics.
Light rather than
heat is the prime desideratum, but

taxes

or

The

first

step,

revenue

collected
and

therefore,
on

to

rates

is to

income

increase

as

it

the

in the case of the in¬
dividual income tax, a drastic re¬
and,

duction
sion
the

of

with

the
a

eventual

range

of

produce

enlightenment.
issues

mentioned
enment

and class

these I have

as

need more enlight¬

we

political,

less

and

progres¬

proportional rate as
goal; and second, a

development of Federal excise or

with

dealing

In

critical

as

sparks.
sometimes

no

does

debate

mass,

prejudice.

Hudson

Pulp & Paper

Offers New Preferred
shares
of $1.41 dividend cumulative sec¬
ond
preferred stock, $24.50 par
value, • of Hudson Pulp & Paper
Corp., 58-year-old manufacturer*
Public offering of 200,000

kraft

of

tissue

and

was

paper^

(Oct. 5) by an
underwriting
group
headed by.
Lee Higginson Corporation.
The
stock is priced at $24.50 per share
and is convertible share for share

company's class A com-*
through Dec. 31, 1964,*
the initial conversion price of,
the

into

stock

raon

at

Tuesday

on

$24.50 per share.
Proceeds

from

the

sale

of

the*

preferred together with other
funds
including
proceeds from :
the concurrent private sale of $4,- **
new

5.7%

company's

the

of

000,000

cumulative preferred stock, series *

C, and of a $1,000,000 4% promis¬
sory

note will be used to pay part

paper

any

proportion of Federal

received

to

as

in

Heat

by

other* method.
reduce, the

warm

of the cost of installing

itv

comity

recalled

through

proportion collected as income is
spent.
This requires two steps:
first a reduction of income tax

interstate

I

over

Federal

made

is

and

Earlier

with, and

to

useless

alien to the standards of uniform-

zens

liquidation

com¬

regardless of. the many
The financial requirements of ways that have been devised for
war
have been the most impor¬ tappjng-the income of the people.
tant single factor, in this shift, but Income is the one and only tax
by no means the only one of im¬ resource, and all taxes are paid

and

was^ the

to

come,

from
the
"Communist
Manifesto." The objective of Marx

Engels

to

of taxation for state and

pattern

central

from

They

impossible to

mend, and

we

came

adapted

use.

Local

-be

would

that

income,

use

In this group

states must be reckoned

The

take

tax

Federal

of

admiinstrative

controversies within the member¬

a

to the kinds of
used
by individual

be

to

more

than 80% of the immense Federal

budget

states

Federal level.

separation

well

are

met.

together had 24%. And

units

tax

use.

prejudices

local

and

program

prise, however, only the fringe of
the problem. There is no feasible
of tax separation across
the board by which the legitimate
revenue requirements of all states

76%,

large

as

states

material reduc¬

a

Federal

the

savings in Federal personnel and
better management of the func¬
tions that properly belong at the

un¬

scheme

was

the

of

local

to

their

while

ever

all of the same,

equalization

times

10

nue

tral

alleged

77%.

was

state

go

the

produce light, and light may bring,

be

the Federal share of a total reve¬

a

all

taxation
an

and local share

the

of

sponsibility for the services now
through grants, and a

as

local administration and may well

a

and

tion

These

local purposes

23%

that

from

lections

was

of

title—"Bring Government

taxes

taxes

of

Concurrently with this adjust¬
ment would

the debate should not be so luke¬

From 1932 to 1953 the rela¬

shares

of

pool

be drawn upon

the taxes on admissions, dues,
safety boxes, entertainments, and
the
documentary
stamp
taxes*

could

tive

by the
Department

Association

are

'

second, the continuing high
proportion of Federal revenues
obtained
through . the
income
taxes.

was

years ago

Finance

potential local

The second topic that I discuss
briefly is the damage done to the

ence

which

proposed,

excise

the States

fixation,
whatever the insist¬

problem

including return of
the gasoline and oil taxes and the
estate and gift taxes to the states;
and relinquishment of a group of

"

psychosis,

some

double-

the

of

National

limited

speech in opposi¬
tion.to,.,prQgressive taxation.

by the obsession,

"the

program

Home."

back

make a strong

states

the

der the

government would

Encroachment

carried

now

Manufacturers and published

Communists

of

the

to

Government

It would be in¬

pursuit

out

enlarged

can

the several states.

halted

of

nature

formulated

teresting indeed to find out how
many who have been most active

ex¬

that budget,

Realization

inequality until it is elim¬
inated. The person who is killed
by the gun that wasn't loaded is
just as dead as if the fellow who
pulled the trigger had had mur¬
der in

a

the

nomic

for the

which is that of the best

relieving

in

the only
progression

is¬

over

any weight at all is the
Communist goal of reducing eco¬

for

get back to the real

reverse

take

penditure load that is

support

case

re¬

The

Federal budget of some of the

and

of

part

concludes that the only leg under
the progressive tax case that will

has

means

a

larger

a

larger share of the total tax col¬

the Federal share of total tax col¬

The
.

This

the

resources

ship
that

equally apparent, namely, that

lections

eco¬

smaller

of

of

is

otherwise?

or

wrote that
case

socialist

we

plies

breakdown

two

service respon-

Obviously,

assume

distribution of wealth and income.

will

a

cannot

Thus

cism of progression is that it im¬

concept

sioilities.

the

case

pay,

The

making

bur¬

the

success

tax resources and

giving

were

tax

service

lies in a
simultaneous reallocation of both

what they

on

of

between

only chance of

ist cause by their supoprt of pro¬
gressive taxation. How can it be

ernment

More than 40 years ago Profes¬

and

a

so

comfort to the Commun¬

benefit,

stronger appeal when progressive

shin,

transfer

responsibilities

footnote

a

allocation

levels of government.
It should be apparent

,

a

can

comment

pro

advance of well-being to come by

is

make

Communists

and

in

Pro¬

when he wrote that
progression is

ically strong

workable

about the eroding ef¬

authors

detour to

aid

the indict¬

ment should

ago

whereby the group that
economically weak but polit¬

Our

the.people

further cut in Federal cost by the

nool of tax resources.

S iciai Sciences"

means

it

We still

supply,

the

latest version of this perennial has

not

have

irresponsible formula,

capital

more

in

financed

are

lessens the economic pro¬

authors

by progression.

large

a

worry

as

and

**'"(3) It

duced

Progression is

have

that
home

at

ping Federal and state taxes. The

why

so

left

nancial

the
governmental
service
load
without having access to a larger

Just where the anneal

(2)

happened
yet,
about soil erosion?

is

point

is

thought the Treasury has
compiled at intervals over the
past 20 years a study of overlap¬

case.

But

important
income

t©

I had written that many who

in the practice of income tax law
stems from the complications
pro¬
i

Mexico.

sales ^

or a

transfer

of

ago

sue,

is

obviously much more im¬
pressive when lawyers, rather than
laymen, dwell uoon the problems
•

contribution to this

a

call my use of the "guilt by asso¬
ciation"
argument.
Some years

nomic

"The

As

progressive taxation, as Pro¬
fessor Haig has so well said.

intricate

These writers line up three

jor

of

arguments.

of

tax,

tax, or any other tax not con¬
sistent with local preference. The

locally in any manner that may
be acceptable to the citizens of

line

fect of progression?

so

many

Gulf

themselves

and con is not new, but it is note¬
worthy
that
an
old
judgment
should be reinforced by a fresh
survey.
These writers say:

doctrinal

the

into

why

Seligman, and for their acute
the

ef¬

that if

some can vote
for others to pay while
exempting

concept of majority rule. But pre¬
cisely this outcome occurs under

power

nothing is done
recently been done for the Com¬
soil of mission on
Intergovernmental Re¬
the Mississippi basin will event¬
lations.
Another
approach
has
ually be eroded and washed down been the
attempt to devise some

worry

sion, ranging historically and al¬
phabetically
from
Bentham
to
of

parallel

a

they
spiral that

a

Federal

state to in-,1

pockets and the bank accounts of

sources.

unsound because

take

know

hasn't

the

amination

destructive

the

about soil erosion, the top

device
burdens

and would otherwise be saved and

The Case of Tax Rate Progression

the

were

Let's

On the

pays.

.and

whereby

draining

tax.

arguments

We

on

to earlier argu¬

the destruction had not happened

the

on

about

motion

been through some kind of
sepa¬
ration of Federal and state tax

fects of progression was that such

of

any

should

The

ments

yet.

which the

I doubt if Marx

answer

in

set

enhanced

income

an

wouldi^

There

taxes.

need for every

no

The
problem has been dealt
with in piecemeal fashion on vari-;
ous occasions.
One approach has

income

$20,000-$22,000, where

is 56%.'

A stock

majority

pay toward its cost
different from that

basis

any

of

consumption
troduce

prestige, impoverished the
states, and substituted centralized
bureaucracy for local home rule.

points, is im¬

taxable

the

squeeze

and

than that.

more

of

ma¬

36

or

the

at

some

has

and the

spread,

bracket

element

policy shall be the only
pay for this policy, or that

to

ones

army.

,

Rather, whatever budget deficits

this

opponents

that

jority

be opposed to the
But it is not

may

or

bracket

top bracket
rate of 91% is 71 points.
Half of

majority

vote to build a bridge
or maintain
a
standing army be¬
comes
settled
policy, though a

20%

has had

have

Engels would have askect for

and

majority rule, and the

oy

contrary,

suicide;

There is both political and

popular

be

in¬

on

complete disregard of

of national

mec.ni

rule

both

abusive, rates of tax

comes

posed

these

following:

(1)

enforce policy decisions, which is
what is

of

rate

the first

tax

offsetting
counterpart
in
grants-in-aid, and together

well calculated to accomplish this
result.
The
percentage
point

spread between

the state

across

be

The

im effect is

now

other emporia

individual

jority rule. This gets rather deeply
into
political
philosophy.
We
must distinguish here between the
right of the majority to make and

meapt,

"

The

income tax scale

Policy

incomes

31

the third

machine and related facil¬

ities at the Palatka, Fla., mill.
new

overall

paper-making capacity to

Other plants

nually.

Augusta,

Vt.

Falls,
largest

Me.,,

Hudson

sealing

trial

and

use

of

tape

an-j

located

are

and

is

producers

gummed

napkins.

tons

218,000

approximately

at

The

addition will boost Hudson's

Bellows

one

of

of the
kraft

for indus¬

household paper-

'

£

32

.

y.

^

rf

(1416)

rule and

of

Continued from page 6

>

to

about that later.

say

of

course
*

has

by the tremendous

cost and influence of the hot and

cold

the

of

»

past

15

identify qurselves

was,

recognized and
that a* people
free, half
slave. Sooner or later they must
go One-way-or the -other.
Thi3
basic principle surely applies to

and is, the program

Conforming

his

to

long

a

own.

strategy,

you

an¬

will

remain

Federal

the

recall that Raushenbush and many
of his associates entered Federal

years,

principle

cannot

of the Socialists in America.

nounced tactical

is

proven

half

Government's

move

into the power industry.

Government service to effectuate

of the influof government in business

their schemes. You will recall that

wars

reached for immediate bene- nevertheless

ever,

It

with their success."
This

government

our

been obscured

take them and

clear

too

i

,

commercial business
were the sole proprietor,

on

all

I will have more

Although the extent of the consequences of the change- in me

Grounds for a Changed
Federal Power Policy
carry

is

ruin

from thcjrecord.

CThe Commercial and Financial Chronicle..,Thursday, October 7, 1954

some

Proposed Amendments to Federal
Power Legislation

Raushenbush himself went into
fits to their localities througn ences
Briefly the following are some
Even so
the faults, weaknesses, Federal
spending.
They have ^ave been unmistakably discern- the Department of the Interior in
And in
1941 he
became of the important amendments in
a n d
undesirable
characteristics hoped and tried to convince them- ible Tde cost to the Federai Gov- 1939.
Federal legislation which are re-?
and fruits of government in busi- selves that the evils growing from
ernment for civil functions has Chief of the Planning Section of
ness begin to manifest themselves
government intervention into gone up enormously. Taxes, di- the Power Division of the De¬ quired in the interest of stopping
to the average person in even the
nusiness in their area were far rect and jndirect, are substan- partment; and when he finally the socialist movement and re¬
earlier stages. This is one of the away
s
and
a~d tially increased. These taxes per- resigned as late as 1947, he was quired in the interests of common
could safely be disregarded.
To meate eyery phase of the life and
Chief of the Economics and Sta¬ justice to the customers of power
reasons for the change in public
than if it

occurred

has

that

sentiment

in

the last few years.

rolls

time

As

on

the mo-

and

nopoly of government grows more
complete, primarily / thi ough the
destructive

the

its^ommercial

between

contrast

taxation,

oi

use

ing for appropriations to expand
the Federal power business ap-

to have thought that the people
could
have their political
treedom unimpaired and at the
same
time
indulge in Federal
pear

han€jouts.

performance and that of the free
enterprise system becomes gl^r-

Of course in the

ingly apparent.

mo/.e advanced stages oi

national-;

ization of industries, governments

government agencies hide the
facts from the people. The peoand

those vot-

state this another way,

American
0f

cost
in

free

out

enterprise cannot be
starVed out of the

or

power business without, sooner or
iater^ profoundly an(f adversely
affecting the future of other basic
industries.
The added weight of
taxation alone on the remaining

pies thinking is limited because
of what they are not permitted tosegments of free enterprise would
learn. Disparities in living stand-;
g0 far f0 accomplish that result,
ards between countries VP na-? even if there were no other ad-

living

proportion.

citizen,
has

is

It

innow

ajso

unmistakably discernible to
the
American
peoDie, including
the committees 0f Congress, that,
with the expansion of the Federal
Government in

gome haye nQt seemed to real_

driyen

kusiness 0f the
and
creasgd

there is

ness,

commercial busi¬

growing tendency

a

Fv-^ucrsitic inefficiency in the

handling

of other people's busi-

tendency to oau and remistakes, a tendency to
up failures, to give evasive,
misleading, and sometimes false
answers and reports, to be arrogant and unjust, to disregard legislative restrictions, and to yield
to corruption and dishonesty. This
has been particularly disturbing
because from the time of George
ness,

a

peated

cover

industries a n d those; verse effects.
genuine free enterprise are:
jf now becomes increasingly apso
great that true comparisons • parent to thoughtful minds that' Washington our Federal Governwould be unendurably odious and?
American government cannot ment has stood out notably among
lYllflfht
nrnvnkp
intGrnSl
GXplO*" ■
i.
1
l
£ 4S
f Via Kac+ in Vkicfnmr ^At» +Ua rkkili+*«>
internal
expiomight provoke
g0 into business on a significant the best in history for the ability,

^nationalized
With

_

and

in

are

more

now

world

the

another

reason

exist

and this
this

is

chat

ist

longer

picture that needs to be
to in the day-to-day
decisions and actions on Federal

appropriations that result directly
or
indirectly in putting Federal

busi-

commercial

into

nesses.

;

economic

their

>upport
from
the government,
they are powerfully moved to
surrender their political independence.
Of course we may retain
the form of a republic. Even the
Soviet Union holds popular elections.

Socialstic Pressure Groups

receive

So

the

did

Nazi

govern¬

ment, but we would have
public only in name.,
--

%

,;For 60 years or. more, certain
fightly knit groups in this nation
liave beem advocating and lobby-

the

of

citizens

the

If

country

up

agencies

republic,
a well recognized
principle
political freedom cannot ex¬
without
genuine
economic

freedom.

range

faced

is

It

is

for changing pub¬

It

_

scale and remafn a true

widely known

today,

sentiment.

lic

do

conditions

Such

sions.

re¬

a

...

.

More

beard

and

about

people

more

the

have

unfavorable

re-

ing^ for Federal legislation to con- Sldts of nationalized medicine in

trol

and

and

to

natural

own

resources,

England and about the unfavor¬
able experience of the people in
England, France and other coun¬
tries where certain basic services

obtain

appropriations for
their development by the Federal
Government.

they

have

the

At

same

time

striven

unrelentingly,
snd with remarkable success, for
restrictive
a n d
discriminatory
statutes
against private capital.
They hqve striven to place offi¬
cials

in1 the

Federal

who

would

translate

statutes

tive

into

even

their

slow

new

restric¬

be

-

"

We

•

just

ment

the

show assets of govern¬

commissions

engaged in studying the naand

extent

which

rpccntiv

Mv
nnccS?

y P

Con cress

/Those who have wanted to
the

government

many

-

th«

assume

of the economic

see

all

cares

of its

people, in this land and in other

__

LU-

wardflSin?nir
means

rnntrni

ty
tho

of production of the nation.

;r"S Dm?^« the focal point
Most of those

^

voting for legis-

lation which put the Federal Gov-

.

into

ot

government

^

business.

.

,

The

•

,

misled'
...

.

.1 o

free

to

^^
against
citizens
efforts

even the most
of our country,

to

revolutionize

in

enterprise.

honored
in their

are many

They have, how-




private monopoly. It has been
said, "The power to do things for
you, eventually becomes the power to do things to you." This, the
American people have learned.

to

believe

that

this

sin¬

This idea of co-existence stem¬

ming from the professional
ernment

power

gov¬

advocates, has

a

familiar ring.
It has; been ad¬
vanced in international affairs in

required-by statute to

as

part of the project and

part of the operating costs such
sums as would be payable as taxes

the

mapping

interconnected
Federal power systems, stretching
from Maine to San Diego, and
from Miami to Puget Sound. The
of

by private enterprise carrying on
same or similar business.
The

the

portion of such -sums as would be
equivalent to Federal taxes should
be paid to the Federal Treasury;

Raushenbush policies, and Social¬
istic policy makers, continued in
the

Power

of

Divisions

the

In¬

1952,
they have probably not all

(2) Federal power projects or
the part of Federal multi-purpose

terior Department as late as
and

been weeded out yet.

Now, where in all of that rec¬
ord—starting in 1924, and earlier,
with the Public Ownership League
of America, the Public Ownership
magazine, and its* contributors;
the leading socialist newspapers,
and the avowed policies and pro¬
grams of the Interior Department
during all of the two preceding
decades—where is there any evi¬
dence that would support a belief
in the protestations at this time
of
the
professional government

advocates that they would

power

limit

themselves

co-existence.

to

not convinced. It
is not a partnership which they
propose;
partners are all gov¬
erned by the same rules. The pro¬
I, for

one,

proponents

Government

who

advance

create discriminatory taxation by
exemptions granted to govern¬
mental proprietary power busi¬
nesses.

projects realistically allocated to
the
power
function should be
made subject to local taxation the;

Their

customers

then called upon to bear

are

ness.

of

some

the

aspects

of

(4) The tax exemption present¬
ly enjoyed by such bodies from
income taxes on the income from
securities

illustrate

To

moment

cialization of Industry." Rauchen-

been

built

into

Federal

laws

to

such

annual

add 5.4%

now

fixed

the

charges

to the

capital
companies

on

which the power

cost

cus¬

companies: Total

tomers of power
taxes alone

effect of this

one

against

discrimination

must obtain from their customers.
In

the Federal Power
figuring the cost
of power generated
by Federal
projects uses only 4.4% as the
total fixed charges on federally
financed hydroelectric plants and
uses
only 3.9% as total fixed
charges on federally f i n a n c e d
contrast,

in

Commission

steel

transmission

tower

lines in

calculating the cost and approv¬
ing the rates for power generated
and power delivered from Federal
projects.
Another

and

illustration:

Rising

increased

labor, fuel,
equipment costs have neces¬

taxes

sitated'rate increases.

tax-exempted governmental pro¬
prietary businesses in the pur¬
ago
I
said there chase of power from the Federal
would be more to mention about Government. This power is gen¬
erally sold at about half its true
the socialist planners.
I recall one H. S. Raushenbush cost, thus giving another substan¬
tial financial advantage to these
who, with his associates,; estab¬
lished the present Socialist Party privileged governmental proprie-.
tary businesses. Maiiy other re¬
policy in America of "Encroach¬
strictions and discriminations have
ing Control," and of "Gradual So¬
A

finance

to

issued

businesses should be removed.

that

a

fe.

moved.

share in the cost of government

Trojan Horse.

"■

The tax exemption pres¬
ently enjoyed by the proprietary^
power businesses * of -states,. mu¬
nicipalities, public utility districts
and other governmental proprie¬
tary businesses s h o u 1 d be re¬

and

users of electricity supplied
by electric companies, along with
certain other sections of the globe. all private business generally, are
And there is a proper place for it calied upon ta payrin many things. But, as in those
Other statutory provisions giveother sections of the globe, it here further preference to these same;

busi¬

(3)

not

the heavy

other property and
'■ " V';"' •' \

as

same

am

Federal

fessional
power

profes¬

of co-existence has any
cerity.

be

ice, his planning was reflected in

Feeling the growth of unfavor¬ this idea know full well that laws
reaction, both from Congress are now on the statute books,
and from the public, professional
placed there by their own schem¬
proponents of the expansion of
ing during the past few decades,
the Federal Government into the
which are skillfully designed, if
power business now protest that
possible, to force private capital
they have no idea of driving in¬ sooner or later to withdraw from
vestor capital out of the power
the power field.
business.
They go so far as to
Discrimination in Taxation
profess that both are needed to
assure the supply of future power
The most destructive provisions
is
requirements of America, It
of this legislation are those which

sion

should

include

able

hard

(1) All Federal power projects

that

But under

present Federal income taxes, for
dollar

each

creases more

has

to

of

needed

than

be- added

rate

in¬

another dollar
to

the

increasei

merely to. pay the Federal income
taxes
resulting from the addi¬
tional

revenue.

Discrimination in

levying taxes on one class of elec¬
tric customers and exempting an¬
other class is just plain indefensi¬
ble.
-

(5) The iaws governing the sale
power Ironic Federal projects
need to be amended to require
that power be sold pt the point
Of generation at its fair market
of

bush

stated that

policy

in

this

have

been

misled

such motive.
many

.

3 and^whh

^Twith

who

desire

re¬

any

.

^ ^favor of businesi damental economic -system.
power govern-,
questionably there
They have had
cripple or destroy

less

also

aware

during his period of Federal serv¬

,

fun-

have not been

far

are

companies:

of

Depart¬

„

our

ment In business.

and

Interior

GcnJern-

S<fathe°cSd^SSc
control
of
electric
S which

controllable

less

sponsive to local needs and wishes
than they would ever permit in

You

ment.

Division

the

of

the

of

handicap, discourage and drive value »nd be^allocated in propor^
private capital away from - the tion to 41m number of rural,-resi^
£harP change in the course from way:
business.
Thus
alleged dential and retail commercial cus¬
"There is no driving power for power
traditional Amercan way of
cheap government power becomes tomers served by the respective
The old
life that has taken Place in the Socialism like hunger
"government high cost power"— applicants.
past two decades is now so wide¬ time carrying drive of. Socialist
the highest cost power the Ameri¬
The sale of power at the point
ly recognized that it can no long- doctrine was in poverty and pro¬
can people have ever purchased^
of
generation would keep the
phetic promise. These no longer
«
Hamctrine'in<? and sapoing the power business ^of the Federal
hold us. . . . Between cataclysmic incentive of free
enterprise has government truly, incidental to its
Knowing this, the professional. Socialism
(revolution) and en¬
not been confined to the electric functions of navigation, irrigation
croaching control (a little Social¬
of Federsd
business.
Other businesses have and flood control. And the pric¬
men^ power) and those who have
ism at a time), the latter will be
been
by them, have re¬ the only one acceptable to this experienced like treatment. ing of power .at its fair, market
Speaking editorially of the traffic value would. lift the burden of
sumed with new vigor their clever nation.
sumed with new vigor their clever
problems of the New York metro¬ Federal power developments from
half truths
Continuing to quote from politan region and pointing out the .shoulders Of the general tax¬
,neul.slon

Act

through the ranks. And the
people are discovering
that government monopoly is far
American

has

appointed
pursuant to acts of Congress are

brevent the passage of ana mea now
prevent me nassaee ot. ana m,a
ture
to
insert
discriminatory provi-.

fn° toeinim^U°

Business

and govern¬
business activities at more

Two

down

Branch

Power

.

than $50 billion.

first to

in

follow

corporations

ment

power

maneuvers

Government

business in the

now

ment

a

the domination of the Fed¬

eral

to

Now $50 Billion

further
demonstration of this effort to ex¬
tend

were

pursued by these other

In the meantime published fig¬
ures of our own Federal Govern¬

•

seen

course

Assets of Government

government
\

have

nation

our

countries.

property paid for by the taxpayer,
etc.

if

the

payments of principal and inter¬
est, harsh discrimination in the
from

to

measures

they have heard of central
government control of labor. The
resultant conclusion by people in
this country has been, of course,
that they are better served by
free enterprise than they would

free grants and loans at very low
rates of interest,
deferments of

power

ineffective

unsatisfactory conditions,

and

discriminatory regula¬
tions against free enterprise and
in favor of governmental proprietary business. They have used
tax exemptions to favor govern¬
mental
proprietary
businesses,

of

and

relieve

and

sale

been nation-

They have heard about
shortages and complaints, and of

Government

more

industries have

and

ali2ed.

integrity and objectivity of its
administrators from the top all

tistics

who

But that there

who do have

an

Un-

have

no

are

objective

that for

Raushenbush:

"Our long time aim is the abolition of the profit system for pri-

25

years

or

more

there

i

.

.

-,

tot

^
„

tt

.tr •>

and place it on the power

a

users

ment and

a

provision that power from
government dams be allocated in
proportion to the number of rural,

policy of discourage¬
policy to destroy pas¬
vate use.
We must force our senger transport by rail, the New
York "Times" of March 24, 1954,
experts on agriculture, trusts,
nt.
observed, "And if we couldn't do
c
'
Power» subways, housing, it (i.e., destroy them) with cuthiilki etc.; to -tell us ' Coirectly rate (government) competition,
which'the next stepsand theh therf we did it'With taxation."
.

payers

has been

.

where it belongs.

The

residential

and retail

customers

would

nate this
now

commercial

help

to elimi¬
particular discrimination

existing against

one

class of

A

**W

'fOS-SOi Wf I r

RXftK»n»tv*a<

■A.wwwarwMiM'iamehnWBiiMlWB^^

a

Number 5366... The Commercial and Financial Chronicle

Volume 180

(1417)

33

another, and and vigorously. Passive support vellous contribution in the strug¬
political pressure to and temporizing, will not suffice gle to preserve free enterprise.
sell the power below its real cost. in a struggle in which the forces
For the future you are deter¬
are
real
and
powerful, if the mined to continue to use your
How would the American pub¬

citizens

favor of

in

would reduce

feel

lic

public

Federal-Aid

if

roads, built by money from all the

citizens, were open to use only
by certain preferred citizens, and
their use denied to the majority
of the citizens, whose taxes con¬

fruits of economic freedom

are

to

be enjoyed in

the long future as
they have been in the long past.
If national

socialism is prefererd

by people they can be as passive
they wish. It will come with¬

as

out

talents

and

give to

your

best efforts to
customers the bene¬

your

.■

This Week

to offer, as rapidly as this becomes
possible. At the same time you,
with many others, are helping as
good citizens in working for the
growth,
the
development
and
well-being of the areas you serve.

struggle just like weeds will
to their construction?
take over the garden of a passive
They would overwhelmingly re¬
gardener.
They can be assured
sent, as un-American, such a law! that
national socialism has an¬
Yet, this indefensible provision of other
advantage. Through force
While these labors and achieve¬
law now applies in great, part to
and
coercion
its
victories tend
ments are valuable contributions
the sale of power from Federal
strongly to become permanent.
to economic freedom in the United
power
projects built by taxes
Changes in Federal laws to
taken from all the citizens!
clear the statute books qf discrim¬ States, you owe a further respon¬
(6) The Federal Power Act inatory provisions against free en¬ sibility of keeping your custom¬
and your
should be amended to eliminate terprise can be effective only if ers, your employees,
business associates informed conall duplicate regulation by
the the changes have widespread and
cerning the
condition of your
Federal government.
expressed public approval, and
business
and
of
the
economic
The full responsiblity for elec¬ such support for corrective legis¬
health of your nation. More and
tric utility regulation should be lation will arise only when the
yet more needs to be done to alert
left with the states and the Fed¬ big majority of the people fully
the American people to the strug¬
that they have the
eral government should withdraw understand
gle going on within our nation,
from this field.
The overlapping stake in ridding our Federal laws
as well as throughout the world,
of this threat to their
well-being; between collectivism and free¬
jurisdiction is costly, onerous and
that they are not being asked to
confusing.
A
significant
char¬
dom; and of their stake in the
acteristic of electric utility com¬ pull someone else's chestnuts out
struggle.
of the fire—the chestnuts are their
panies is that they are essentially
We in the electric industry are
that there, are politically
local businesses with limited own;
powerful and well-organized vest¬ uncommonly aware of the shadow
service areas.
Regulation on the
of Socialism. Ours was one of the
ed interests in tax
exemptions,
state and local levels has proven
privileges, and in other prefer¬ first sectors of business attacked
responsive to local needs and the
by the socializers. We are now
ences and subsidies now afforded
result has been the rendering of a
in the earlier stages of govern¬
many
governmental proprietary
high quality of service priced
If
it
is not
businesses; that selfishly these in¬ ment ownership.
notoriously low compared with all terests will exert strong efforts to halted and turned back, it is the
other costs of goods and services. retain their
privileges and ad¬ youngest member of our popula¬
This is a positive program of vantages. Most of them are look¬ tion who will suffer the full force
simple truths and of justice to all. ing at the immediate, not the long cf the loss of the free enterprise
It cannot be honestly challenged.
range, interests of their country, system. It is they who will know
It is inherent in the relationship but some of them have
the austere stage. They are the
long range

tributed

a

between
and

Federal

the

of the major New York City banks ppbr
lished within the past week were
generally favorable and about
in line with
previous expectations. •
'
? •

eral

Fed¬

a

ideologies and their purposes, as
they have proclaimed, are fixed

is charged with the
even a minor matter
of Federal concern, it will pro¬
gressively increase the extent gnd

on

character of its control and dom¬
ination.

In place

of local regula¬
local pub¬

tion responsive to the

lic, remote bureaucratic adminis¬
tration, not similarly responsive,
hobbled

and

initiative is

Local

is substituted.

frustrated

and

the

national

socialism.

Under free enterprise no one is

else.

someone

way

ren,

to

work

for

down;

the

able

a

•.

and

interstate

control

flood

and

irrigation functions — and
provisions for reasonable compen¬
sation

for

lands.

The

gable

the

definition

streams

narrowed

to

Federal

of

use

of

navi¬

sharply

could be

those that carry,

or

and

more grievous than we as a
people have had the courage to
face or the experience to be able
to
fully appreciate.
For many
years we have enjoyed the con¬
sequences of our long tradition

of

individual

initiative in

free

a

substantial commercial market protected from fraud and
navigation in fact.
Provisions coercion by a limited, constitu¬

may carry,

could

be

made

for

sale

the

to

tional government.

regulated electric utilities, regu¬
lated by the states' in which they

quences

operate, of those parts of certain

pered

flow

needed for

their

hydroelectric developments which

cannot

from

These

hindered

and

conse¬

long continue

to

increasingly ham¬

an

economy;

soon.

Federal lands used

at

the

same

time

or

are

not

source

must be

restored, and

Every man, woman, and
cherishes liberty has

neces¬

child
job

to the use and purposes of
the remaining parts of these Fed¬

who

eral lands; or

enterprise. Our duties and respon¬
sibilities vary in scope and char¬
acter according to our opportuni¬

sary

provisions made for

trading such parts of the Federal
lands for other lands which would

to

in

do

the

restoration

be suitable to the use of the Fed¬

ties and abilities.

eral

your

government.
like

In

manner,

the

Federal

Power Act should be amended to

define

more

sharply those inter¬
of power that

transactions

state

duties

as

a

of

free

In the sector of

managers, operat¬

ing heads, engineers, and workers
in supplying a vital service to our
nation, there can be little com¬
plaint about your performance.

You supplied the enormous de¬
significant and in fact beyond
control of a state, or of a mands of the nation for power
compact between or among states, during World War II. You have
so
as
to
minimize overlapping made the astonishing record since
controls and preclude the pro¬ that war of increasing jn nine
gressive assumption of jurisdic¬ years your generating capacity by
87%; and to raise and spend, for
tion by the Federal agencies.

Metropolitan Edison

31/s% Sonds Offered
Halsey, Stuart & Co. Inc. yes¬
terday (Oct. 6) headed a group
offering $15,000,000 Metropolitan
Edi-on Co. first mortgage bonds,
3i/«% series due Oct. 1, 1984, at
101%% and accrued interest,, to
yield 3.035%.
The group won
aw^rd of the issue at competitive
sale

the

Free Enterprise at Stake
I have enumerated to you sev¬

eral

important corrections in ex¬

isting
needed

statutes seriously
possible to the
people over the years

Federal

to -make

American

ahead the best and most econom¬

the prog¬
ress
of science and engineering
will afford. If their choice is for
ical electric service that

free

enterprise it must be

made

early and adhered to consistently




most

modern

and

efficient

equipment for suoplying electric
service, $17.5 billion. This has
been

done

with

commercial

and

such

technical,

managerial skill

that during a period when taxes,
labor and fuel costs have more
than

doubled,

power
lower

to

you are

the

able to sell

householder at

price today than

able to sell

you

outbreak of World War H—a

the bonds,

be used to redeem
of

a

outstanding first mortgage
bonds, 3%% series due 1983 and
$3,600,000 will be applied toward
the repayment of bank notes, in¬
in

curred

connection

construction

the

with

The bal¬
ance of the net proceeds ($3,400,000) will be applied to the cost
the

of

most

This would

construction

Metropolitan Edison Co. is a
utility operating wholly

less satisfac¬

a

that the earnings for the most
good as a year ago.

quarterly basis. Others have not

as

compared with

-Operating Earnings Per ShareQuarter Ended Sept. 30
Nine Months to Sept. 30

'

1954

1953

1954

1953

$7.59

$7.91

$23.34

$22.41

Bankers Trust —

1.09

1.12

3.30

2.91

Chase

0.98

1.06

0.96

1.11

Irving Trust——

0.45

0.45

1.30

1.26

Manufacturers

Trust

1.44

1.43

4.28

4.27

National City——
New York Trust—-

1.06

1.05

2.38

2.40

■'

Bank of New York—
National-

Chemical

Bank

Public National
For

those

that

have

not

earnings, the indicated results make

3.06

3.27

3.09

6.84

*

6.76

V

2.69

do

or

2.79

2.95

LOO

0.98

banks

2.75

■

not

an even

2,71

report operating

better

showing.

In

other words the total profit of the banks as against just the oper¬

ating earnings, are considerably higher than last
The

primary reasoii for this is that

year.

the bond mar¬
down, encouraging banks to establish security losses for
tax purposes. Among the larger banks these losses ran into the
millions of dollars. Over the past year the bond market has risen

ket

a

year ago

was

substantially, and instead of losses, the banks are
position to take profits.

very

ih

now

a

For example, National City in the first nine months of 1954
reported profits on sales of securities equal to $7,845,561 as against
a nominal loss of $36,694 a year ago.
On a per share basis the

profit hi 1954 was equal to $1.05, which if added to the operating
earnings of the period would indicate a very sizable gain over last
year. '
•; ''
'''
•
'
■
/ •
.

.Similarly, Chase National had security profits of $3,088,000 in
the nine months to Sept. 30, 1954 as against a loss of $1,266,000 in
1953. This was equal to a profit of 42 cents a share and a loss of
17 cents, respectively. If these profits are added to the operating
earnings, results amount to $3.17 in 1954 and $2.62 in 1953, a
somewhat better showing than when operating results are con¬
sidered alone.

i$

Other banks have done the
for the quarter

same thing so that the total profits
and for the nine months are likely to make favor¬

able comparison, although operating
off and in some instances decline.

earnings

are

tending to level
t

;

Over the balance of the year, we would look for some sea¬
sonal improvement in operating conditions. Business loans should
„

reflect

normal

a

increase in

trade

and

marketing.

At the

same

time the interest rate structure, although lower than a year ago,
compares

favorably with earlier periods. Deposits are being well
and earning assets are actually higher aided by the
requirements now in force.
*
* .■

maintained

lower reserve

Thus, for the year as a whole, operating earnings should be
profits benefiting substantially

close to the level of 1953 with total
from

!

security transactions.

Joins Hazel Zimmerman

Schwabacher Adds

(Special to The Financial Chronicle)

(Special to The Financial Ce.~onicle)

LOS

ANGELES, Calif. —Mrs.
joined the staff
Zimmerman, 632 South

Mari S. Leib has
of

program.

to indicate

so

as

program.

company's

seem

operating results oh
yet made their figures avail¬
able for the period. Below we show the per share operating earn¬
ings for nine of the major New York City banks for the last quar¬

like amount

its

Hazel

Westmoreland

Avenue.

SANTA BARBARA, Calif.—
Richard C. Thorne has been added
to the staff of Schwabacher & Co.,
930 State Street.

public

within the state of Pennsylvania.
It

renders

or

electric

portions

boroughs,
with

a

of

all

cities,

154

and

in

90

service

four

NATIONAL BANK
of INDIA, LIMITED
Bankers to the Government in

townships,

Kenya Colony and Uganda
Office: 26, Bishops gate,
London, C. C. 2.
West End (London) Branch:

population of about 700,-

the

eastern

and

Pennsylvania.

,

central

In the

tlie^veragq, number

parts of

year

of

Pjaqy,.
steam

.alsoj^rodpces ttjand
for

heating

to

1953,

sells

approxi¬

mately 550 Customers in portions
of the

13, St. James's Square, S. W. 1*
Branches In India, Pakistan, Ceylon,

Aden, Kenya, Tanganyika,
Uganda, Zanzibar, and Somali-

Burma,

electric

customers, w^S, 223,575. The com-f

cities of Easton and York.

National City

land
..

Protectorate.

Authorized Capital

Paid-up

Capital

£4,562,500

-—£2,851,562

£3,104,687
The Bank conducts every description of
banking and exchange business..
Trusteeships and Executorships
Reserve

Fund

also

undertaken

Bank

of New York

Head

000, located within 13 counties in

a

mar¬

net proceeds

from
$8,000,000,
together with a portion of the
company's treasury funds, will
sale of

were

it to him before the

bid of 101.23%.

on a

Of the total

the

are

the

Oct. 5

on

t,

the corresponding periods of 1953.

.

tion

and

ter and for the nine months of the current
year as

,

,

.

.

All of the New York banks do not
report

a

self-reliant, responsible, re¬
sourceful, and cooperative, but the electric industry hold a special
rewards are very great.
History responsibility in our deeds and
our words to uphold the free en¬
has
proven
beyond doubt that
free enterprise brings greater ma¬ terprise system, that the heritage
terial goods and physical comforts of freedom we received from our
forebears shall also be theirs to
than any state controlled
economy
has ever produced or could ever enjoy and cherish. In this strug¬
produce. Even during our great¬ gle we have the strength that

,

■

spond to seasonal influences,

Federal government
with limited powers is more and
comes through knowing that we
est
more ignored.
depression, intensified
and
If the principle of eliminating prolonged as it was by govern¬ labor not only for our own selfish
all duplicate regulation * by • the ment intervention, Americans did good, but for the greatest good of
the people of this land.
It is a,
Federal government is fully ac¬ not know the poverty, which is
cepted, then Federal licenses for perpetually the lot of those who great privilege and a great incen¬
tive to victory to be so engaged.
hydroelectric projects can be lim¬ live under statism.
ited solely to provisions for the
The consequences of taking the
protection of commercial naviga¬ wrong course are long enduring

principle of

.•

..

months, however, comparisons were more favor¬
of the institutions showed; a gain in
earnings as

recent period have not been

in the

we

of

tory operating period in recent months as compared with }& year
ago. Interest rates have been easier and loans have failed To re¬

American

for whom

f

compared with 1953.

government

ones

number

For the nine

and in the
the American
of life. They and their child¬
and their children's children

the

are

a

~

continued reality of

The system requires men to

compelled

of

of

are

interesting and significant features
about the current level of bank
operating earnings as revealed in
the recent reports.
Comparing the operating results for the quar¬
ter ended Sept. 30, 1954 with the
corresponding period of 1953,
shows that most of the banks had a
slight decline; in earnings for
the three months just ended.
In most cases the changes were
modest but the trend with one or two
exceptions was generally

biggest stake in the

preservation
form

be

agency

regulation of

v/ith the

ones

.

.

There

.

government

the states that when

Bank Stocks

—

Operating earnings

•

,

By ROBERT CHANT

ail the improvements that'?
science and engineering will have

fits of

Bulletin

on

Request

Rights Valuation Table Available

Laird, Bissell & Meeds
Members New York Stock

Members American

Exchange

Stock Exchange

120 BROADWAY, NEW YORK 5, N. T.
Telephone: BArclay 7-3500 "
Bell

Teletype—NY 1-1248-49

(L, A. Gibbs. Manager Trading Dept.)
Specialists in Bank Stocks

34

The Commercial and Financial Chronicle...

(1418)

Continued from

first

today

forces

have,

reinforced

"labor

means

a

should pass under
twov,©r^and
sets of independenieyesv AJScqts-- /Thefe is also a

too

verdict

depression is avoided.* If

the growth

man

who

book,

Th^

that

was

Obviously, implementing

courage..$.%■,r.;;v-^

\-'-r

Those most stion^y-comrnrtted
to this view fake the position that,
there has *never been a

major

business

depression

without

-

a

pricr shrinkage in the money, supply. This means that ; through

Stability

<ments and through"the- change in

of its impact on
a^Tronetary and credit policy, government

nhti|ate

do much to

can

,

one

In

(and serving as umpire, the

all

If

we

solve this

other

problems
manageable.

will

ft

slow

it down
down.

.

,

In the vast field ot antitrust

apd
the rules should be
clear,
stable
and
administered
with
even-handed
justice.
Tax
burdens should not favor any particular form of business organifair

U raeans that U

.V

x

•

.

primary, task in
terest
and
the

power

have the

mQst abIfi

economy

pollcy ^kers. One o{
the prices we pay for democracy

trade,

zation.

one

become

« government has this
tewart it and
tnwart

contribution to enable business to
beiP itself.
Needless to say the businessman
has an important role to play. His

single most important domes-

tic problem.

determining the rules of the

game

tuVnovpr

in

on

nhilosoohv and Dersonnel

able

modern theory and practice of taxation
growth of really strong young enterprises to
compete with existing giants exceedingly difficult, if not
virtually impossible. Let us not forget how the giants
of today got their start. Almost without exception they
began as small enterprises conceived and managed by some genius with very limited capital, ^nid grew by a
combination of exceedingly able management^and the
plowing back of virtually all profits for mapy^years.
Today, whether the enterprise is mcbrpbrated or not
very large proportions of all earnings must be paid in
taxes. One can scarcely imagine how a Henry Ford could
today duplicate the feats which gave rise to the Ford
Motor Company. Much the same is to be said of Messrs..
Carnegie, Morgan and Rockefeller.
f

laws

the^ issuances

and

of

burdensome, ambiguous -and need¬
lessly complex rulings and regu¬
lations. This admonition may be
less
needed
in
those
bureaus

his self-in¬

interest

of

the

whole, is to keep

a

and

and

whlSh meet

Tnis is

HkeiTtomean fnsSty ingovf need'

distributihg

providing

services

genuine

a

human

studying his product-mix,

" -men? SLs

producing a steady flow of new,
■
■
and better products. Similarly he*.
For nearly two decades we .tried needs to watch his price policies.
.

.

drafting legislation and in
administrating laws, business advisory panels—carbfully -selected—could be used more effectively
to prevent the passage of unwork-

as

both

producing

products
which

Vnvprnm#»nt

.

.

,

,

Ce|seles#s .9^an/e should ,be

In

Again

^

\ ?•
day—with- coilstant
fP' continued ^ sustained adaptation.
' .
filiation, with a serious deteriBut no product or service, how?",iln the ^buying power of ever good, sells itself Vigorous
the dollar.
Inflation almost be- promotion and distributions
-

efforts

came

of life;
with

a way

Beginning
between

the

can go a long way toward com"the accord" plementing sound government
Treasury and policy.
/
.

which deal directlv and orimarilv

the Federal Restive System of
According to the forecasting
March, 1951, the backbone of the experts we should now be in a

with business, than in thesecases
where the bureau appears to have

inflationary spiral was broken,
serious depression. Instead we
Inflation can become a habit, have passed through a mild post-

_

nonbusiness

a

issues

function

rules

and

which

have

may

vet

and

regulations
a
powerful

.

stimulative

its

-

size

sheer

adverse effect

it also

profits

Since

been

Government

Because, of

Korean and post—defense build-Up

readjustment. Our relatively
happy state of affairs can be

3p

'— so long as it credited
to the enterprise 1 of
March, 1951, we have American business and partioumoving jtoward a policy of larly to the rather well-tinned
"sound money,"
This means that shift in fiscal and credit policy; of
when markets soften and unem- the last "year and a half* or "two
lasts.

Implications of Size of

on

may have a
effect on jo.bs, mar-

Vnbule.it has
many people
kets and

deterrent to. business.

the

policy and actions of government ployment threatens, credit policies^ears- We have had the largest
an enormous hppactT on our
should be eased.; JBut if, in such
cu^ this year .in our;history,
economy and husioess. Govern- a situation,/credit ix^ to^^ be eased,! Tm& was about as well timed in
ment absorbs over 30 %
of our there must have been a prior _rn\s
the tapering im governtotaL income.
"
J
tightening of; credit—to give el- ment spending and the business
bow room, -ifhus a sound 'money situation as we could expect in a
-Tbttay government is our-biggest employer, biggest "truck op¬ policy means a flexible policy. '^eInocrafy*:.rtB.rt*
have

-

Taxing Competition Away

part, of their profits to government, arid if a loss Results

of

Rules of the Game

renders the

.

coroner

,

"He„ died

misprlnt."

is per¬

The burdens laid upon large and
profitable enter¬
prises and individuals by modern ineopie taxation is
often the subject of discussion; not nearly'so frequently,
we suspect, is it realized that the
really killing burden,
the load which has by far the most repressive effect
upon business; is that which is thus laid upon the $ian
who is trying to get rich—that is, upon the small busi¬
ness which is trying
to give the giants effective com¬
petition. The politicians never tire of doing or pretend¬
ing to do this and that for "small business." One would
suppose that if they really believed small business to be
as vital as they profess to believe those steps in general
policy necessary for its health and growth would be taken
without delay. Instead, a few futile measures come along
and a negative soxf of action in the form of attacks on
bigness get the headlines.
Both the whole program of security regulation and
tax policy—to say nothing of monetary policy—lay * a
heavy hand upon efforts of smaller businesses to ob¬
tain capital from the securities markets and thus grow
big and strong enough to "furnish real competition with
the existing giants.
Those enterprises well enough es¬
tablished and well enough known to sell obligations
either privately or through the open markets are able
to obtain funds at very, low cost. Smaller or newer com¬
panies find it exceedingly difficult and costly to go to
the market for needed funds, while individuals can
scarcely^ afford to venture their own funds freely since
if their projects are ^profitable they must pay a very «large

exceeds the require¬
prosperity, inflation may

commercial bank reserve reQuirements, government can go a lopg
Panels of experts from industry business instability and pave the
way toward maintaining stable
should
be
helpful in detecting path for economic growth.
We growth and economic prosperity,
shortcomings and improving the noted at the beginning that the It is in this way that government
several series.
maintenance of prosperity is our can make its most outstanding

.

equipment entails the expenditure of vast sums of money
and necessitates a large volume of output if any reason¬
able profit is to reward the venture.




turnover, is needed to lasprosperity. If this growth is

money

assured

growing school public debt- management. policy,
a,partly becauseof--through open^iqarketoperations,
-even more
through rediscount rate adjust*

stingy to -consult
doctor, always relied bq -a-

forming the labor. But in whatever sense the word may
be used, the acquirement and use of all this additional-

a,

a

sure

t

saving

convenience for the

moderate

growth in our
supply
based
on
the
growth in the labor force, the rise
of productivity and the secular
decline
in
the
velocity of the

Help
Help Itself

to

medicine

be

can

this policy;>equires. a High order
of-analysis *and a. Jiigh order of

.

man,

also

money

.

How

lighten their work. Thus the term labor saving may
be and is really employed in-*two senses. As mo£t fre¬
quently employed it means simply a means of produc¬
ing a good or goods with less outlay for labor; in the
other it

that

•n

and

it

a
growing school of
which takes the view

follow-

been

be too little

can

But

is

ments of

machinery" must, more¬
over, be given a very broad connotation.
Wage earners
with full support of their unions today demand an almost
infinite variety of tools, instruments and gadgets to
term

There

that be lay their plans for preventcompanies, let them
also that the nation

Continued from<page*15

unduly strengthened by formal governmental policies at
several points.
Politicians have never found monopoly
a bad thing when
it appeared in the form of labor organizations. In point of fact they have again and again
and again found ways and means not only of defending
this type of monopoly but of promoting it. In its prac¬
tical working out, this fact is not only a mere contradic¬
tion or inconsistency in the programs of government, but
a
driving factor tending to stimulate mergers. And it
has not only given rise to the urge to largep; units ..in
order to be able the more effectively to deal with monopo¬
listic labor; it has stimulated and made possible labor
union tactics which drive business to huge investment in
what is known as labor saving devices.
The

late.

thought

gains nothing when they force some enterprise out of
business which is unable to compete alone in the situa¬
tion now existing. J£ oligopoly is to be curtailed a more
constructive ^approach is imperative.

Monopoly

however,

Action

too

too much and too soon.

or that merger of existing
remember some of these facts, and

ihg this

equipment to attain maximum
/efficiency, have made large inroads into the type of
economy to which the world was accustomed" two or
three generations ago.
' *

These

and

up.

"

expenditures for

Labor

growing

were

When the powers

tively recent origin and for many of them the govern¬
ment itself is responsible in very large degree. Several in¬
fluences, such as the advance of technology requiring
large

a

Even

See It
We

As

insights.

small part of it is recoverable via the tax route.
capital gains are heavily taxed in comparison with
"the situation as-it existed when the industrial giants of
only

page

Thursday, October 7, 1954

*

,

wcticiiuu»cmucm
.-biggest
warehouseman,
biggest electric * power combine!'
.■.""--I
biggest owner of grain, biggest
land
owner,
biggest
landlord,
biggest tenant, biggest borrower,
biggest creditor, biggest insurance
writer,
biggest buyer of
typewriters, biggest memo writer,
biggest publisher, biggest edict
issuer, biggest tax collector, and
biggest spender—biggest, biggest
biggest.

erator,
ctctLUi

,

Obviously,

has

government

an

This limits cbmmercial :bank

re-

serves "when j wages "threaten
r-ico
rise more than jproductivity

to

in

many

Unfortunately, when once the
people become habituated to easy
money and its artificially stimulated overemployment, it is not
easy

ernment

ought
employer." We

said

to

be

that gov-

"a

agree;

can

model
unless

this

means that government employees should get more money
for doing less, when we might

have

some

°H

•f.

Thi«

iJJla

Only SF6 XSXGS

in

a

democracy

to

toward sound money. With a maJ/ eleetion every two years politicians are in desperate need of

structure

such

it™Smiz^

Because

of

ouffht

its

ernment action

to

be

sheefV

can

hev^

shift abruptly, if it abruptly"steps
or
or

cuts
cuts

down procurement or
down Drocurement or

personnel, this can have unstabil-

izing effects.

"navrnff

deep castrophe. The
"

S

X win h!!! ™ nHn!
this issue. We will hear continu-^

it

P

_

^mmn^ 111

v

T

futuL

th

>.

o

recent

that

sense

,

qnrPr(f n1J foci11

mone

„

a^out

as

g0(Kj

as

cou|d

Jver ^

expected.
rp

reneat*

Prosneritv

is

nnr

we can . maintain it the problems
0p marketing and distribution, will

®uftSn^°%hW in
be manageable. Sound fiscal and
m°hcy. i ms in tne end may lead monetary- policies are the most

J® investment and price control

indispensable contributioJns
can make.
"

means.

J

and

_

<

economic

______

_

courage.

to business which the government

.2 For'

a

1

disturbing

exposure

of

J

the

a?aiTst »oundA m.°™y policy

The
Crusade
Against
Sound
Money,** by Herbert M. Bratter, "Comsee.

FiMncW ^icl^ Au^
Important, well-timed action. The 19> 1954>
sensitive, barometers need
Joins White Weld
_

a power-

ful impact on economic stability
and
instability" If its policies

UD
up

wtwilt he^mich'on

oy.

that

a

£?.rf une.or.
.

.

move

deflationary * and noninflationary
mpalc thi nnt Credit policy requires close study
of the economic indices, plus polmportsiltj but the lifinnl

tax

of bufldin^ a booTn "paving
on top

boom*
boom- and therefore
"therefore

a

.\^ji^^p£Fataom of -a sound non-

reservation.

A11

were in grave

rrS
ponents, to tighten credit. It had

ens.

way,

Sometimes it is

of

^

or

ces j'ise.
Then the way-for
when general
there is a reversSl' when markets ^
^
soften and unemployment threat- JJlnfnts tn

impact on all business^J
It calls the tune and sets the pace1

enormuos

In early 1953 we

^

steady sharpening and improving:
construction^ length of work

.

.

LOS ANGELES, Calif.- Harold
week, inventories - by types, new B. Meloth, Jr., is now affiliated
0fde^i u^iUed,orders.-sUpments, with White, Weld & Co:. 523 West
etc
if
wlse

act10n

is

to be taken

both by business/ and government
Ave nw>H
better data- and better
'WP need hpttpr -data and h<>ftAP

Sixth Street.

with "Paine,
Curtis.
Purtie

He was previously

Webber, Jackson' &
r

MttwnttwKdtKgtttAfemMCTwm*^

Volume

180

^^wmMkWWK

Number 5366... The Commercial and Financial Chronicle

(1419)
.„...

The following statistical tabulations

Indications of-Current

"

<4

-«r

•

latest week

'

.

Business

week

Activity
Lateit

AMERICAN

IRON

STEEL

AND

Indicated

steel operations
Equivalent to—

Steel

Crude

(net

tons)

Oct. 10

Month

Week

Ago

that date,

on

and

condensate

output—daily

(bbls.

average

*70.4

63.0

to stills—daily
output (bbls.)

Kerosene output (bbls.)
Distillate fuel oil output

(bbls.)

average

Sept. 24

r

Sept. 24
Sept. 24

(bbls.)

Sept. 24

ept. 24

(bbls.)

Distillate

fuel

Residual

at

of that date:

are as

Latest

§1,678,000

*1,678,000

1,502,000

Previous

Year

Month

2,146,000

6,183,650
116,999,000

6,196,400
6,969,000

6,955,000

6,880,000

23,975,000
2,280,000

23,852,000

23,667,000

23,286,000

2,313,00Q

2,101,000

2,216,000

10,461,000
7,469,000

10,045,000

10,107,000

9,676,000

7,707,000

7,595,000

Month

Ago

$154,859,000

$163,407,000

$147,957,000

$44,208

*$44,526

$46,485

11,746

*11,805

22,408

(bbls.)

6,486,450

(bbls.)

at

151,145,000

151,787,000

-

DEPT.

—

OF

22,600

11,888
22,743

$78,362

*$78,991

$81,116

COM¬

NEW

(millions

of

SERIES

Month

—

of

July

dollars):

Manufacturing
"Wholesale

—

_

Retail

—
,

140,298,000

153,757,000

38,212,000

37,644,000

34,260,000

36,405,000

125,571,000

124,021,000

114,964,OQO

Jept. 24

57,235,000

57,268,000

125,872,000
51,936,000

.

thousands)—

INVENTORIES

MERCE

Total

)ept. 24

at

oil

July, (in

8,062,000

6,141,350

Sept. 24

oil

fuel

either for the

are

DEBITS—BOARD OF GOVERNORS OF
THE FEDERAL RESERVE SYSTEM—Month

BUSINESS

Residual fuel oil output (bbls.)
Sept. 24
Stocks at refineries, bulk
terminals, in transit, in pipe lines—
.(
Finished and unfinished gasoline (bbls.) at

Kerosene

of quotations,

cases

95.2

of

Sept. 24

runs

Gasoline

in

or,

Ago

.

§70.4

PETROLEUM INSTITUTE:

oil

Dates shown in first column

Year

of

42 gallons each)
Crude

Previous

Week
Oct. 10

month ended

production and other figures for the

cover

BANK

ingots and castings

AMERICAN

INSTITUTE:

(percent of capacity)

or

month available.

or

35

.j

55,903,000*

COTTON GINNING (DEPT.
To

16

Sept.

OF COMMERCE)

(running

—

bales)-

3,375,866

3,405,754

A

ASSOCIATION
Revenue

COTTON

RAILROADS:

ENGINEERING

CONSTRUCTION

lept. 25

710,215

711,228

676,616

602,418

583,345

576,786

Total. U.

S.

668,311

Private

State

and

188,154,000

219,317,000

123,270,000

152,729.000

157,365,000

103,199,000

135,621,000

131,134,000

98,659,000

20,071,000

17,108,000

26,231,000

25,200,000

.Sept. 30 '

—

_6ept. 30

OUTPUT

Bituminous

$382 593,OQr

258.724,000
""

coal

and

lignite

Crude

123,859,000

Sept. 25

(tons)

8,070,000

7,930,000

7,410,000

DEPARTMENT

STORE

SALES

623,000

532,000

485,000

SYSTEM—1947-49
EDISON

'

t

output

FAILURES

•

&,

,.
.

-

(in

(COMMERCIAL

AND

INDUSTRIAL)

BRADSTREET, INC

DUN

—

2

117

120

102

114

9,158,000

9,072,000

9,087,000

Finished

steel

Pig

.

(per

iron

steej

Scrap
'■

METAL

192

212

168

189

1

Sept. 28

Export
Lead
,

(St.

Zinc

$56.59

$56.59

$30.17

$28.67

$31.50

•

•
„

Public

*

August 31-

78,861

98,174

54,155,

49,005

38,534

74,715

44,696

131,082

—

—-

42,162

bales)—

August

31

Fiber

(1,000 1b.

August

bales)

151,001

58,966

81,534

64,186

60,177

101,453

89,464

64,312

671

-

—

-

590

263
564

—

31

J

.29.700c

29.500c

Produced

627

229

29.575c

28.225c

93.750c

Shipped

546

496

93.125c

466

2,979

4,170

4,222

83.500c

Sept. 29

14.750c

14.750c

14.250c

14.550c

14.050c

13.300c

—Sept. 29

11.500c

11.500c

11.000c

Motes,

13.500c

14.550c

10.000c

at-

«

—

Qct< 5
—..—5

1

let.

——————————————————————

3ct.
Oct.
Oct.

_.

Group
Group

T

99.95
;

99.91

100.06

95.29

110.52

110.52

110.70
115.24

112,19

112.50
110.70

104.48

104.48

104.66

OF

5
5
5

108.88

109.24

110.83

110.88

110.88
112.00

106.39

Oct.

5

PAYROLLS—U.

.

.

manufacturing
goods

;-l_

goods

1

—Oct.

5

:

12,233,000

12,484,000

13,875,000

of

All manufacturing
Payroll Indexes (1947-49
All manufacturing

2.51

2.49

2.83

3.14

3.14

3.13

3.50

2.89

2.89

3.21

3.04

3.05

3.03

3.39

Durable

3.14

3.13

3.52

Non-durable goods

3.48

3.47

;

6,933,000

7,180,000

8,194,000

5,300,000

„

5,304,000

5,681,000

Avge.'=100)—

(1947-49

98.9

100.9

112.2

132.5

136.7

151.1

15,638,000

—

—

3.48

835

2,681

DEPT.

—

——

Employment Indexes

2.50
•

S.

SERIES—Month

(production workers)

3.14

-IIIIIIIIIIIIIIIIIIIIIIIIII

Oct.. 5

.'J

:

967

2,204

.

/ 2.88

—

corporate

1,149
2,340

———————

LABOR—REVISED

Non-durable

,

—

————

Durable

103.97

111.81

All

102.46

112.00

;

—

—

July:

98.25

108.88

31-

EMPLOYMENT AND

103.80

5

(1,000 pounds) —

etc.

Produced

106.04

110.52

Grabbots,

Shipped

109.24

/

„—

Stocks August

104.14

115.24

YIELD DAILY AVERAGES:

S. Government Bonds..

Aa

69,948

30.425c

Utilities

Average

107,980

73,468

(tons)

Produced

*

U.

-

f

86,379

97,916

93.625c

Sept. 29

••

MOODY'S BOND

103,175

32.000c

,

at

Group

Industrials
1

203,321

121,257

—

iept. 29

,

110.52
———

188,910
135,668

31

Sept. 29
at

corporate..

Railroad

59,998,090

83,622,000

29.700c

112.37

Baa

918,585,000

78,738,000

108,802,000

29.700c

115.43

»■

*953,654,000

82,186,000

Sept. 29

Government Bonds

Average

64,594,000

887,813,000

—

(tons)

Stocks

at-

(East St. Louis)

U. S.

'

57,397,000

83,911,000

"

147,206,000

August

(running

Stocks

MOODY'S BOND PRICES DAILY AVERAGES:
!

August 31

(tons)

(tons)

Shipped
Hull

at

Louis)

Linters

4.634c

$56.59

77,097,000

87,734,000

,

(tons)

Produced

1

1

(New York)

(New York)

Lead

-

refinery

tin

$30.17

4.801c

37,830,000

Hulls-

QUOTATIONS):

'

Domestic refinery at
Straits

$56.59

—Sept. 28

:

M. J.

&

Electrolytic copper—

.

4.801c

ton)

gross

(per gross ton)
(E.

4.801c

250,099

42,249,000

82,890,000
,

(pounds)

(tons)

Shipped
Sept. 28

228,643

Meal—

Stocks

Sept. 30

(per lb.)

PRICES

and

Stocks

&

—

276,415

181,688

,

35,881,000

31

(pounds)

Shipped

8,414,000

207,127

428,283

-

,

—

(pounds)

Produced
Oct.

IRON AGE COMPOSITE PRICES:

.

_

Sept. 25

kwh.)

000

.

*

(pounds)

jt-rouucea

Cake

100

—

1

*128,280

449,340

249,700

August
(pounds)

Consumption

RESERVE

ELECTRIC INSTITUTE:

Electric

;

AVERAGE

——i„

_

Oh—

Stocks

703,000

.___

INDEX—FEDERAL

(tons)

(pounds)

Produced

~
'

mills

Oil—

Shipped

9,632,000

Sept. 25

;

PROD¬

COMMERCE—Month of

(tons)

Stocks

Reined

(tons)-

OF

SEED

Stocks'(tons) August 31

(U. S. BUREAU OF MINES):

Pennsylvania anthracite

■

110,581,000

-Sept. 30

municipal

Federal

i

$376,682,000

Sept. 30

Public construction

COAL

$340,883,000

construction

at

Crushed

$233,851,000

COTTON

Seed—

Received

Sept. 30

AND

July:
Cotton

ENGINEERING

,-r-

construction.

SEED

UCTS—DEPT.

819,709

of cars)__ ,ept. 25

(no.

NEWS-RECORD:

i

,

AMERICAN

freight loaded (number of cars)
freight received from connections

Revenue
CIVIL

OF

1

Average=100)—
—

.

.Estimated

number of employees in manufac¬
turing industries—
..

All

manufacturing

17,336,000

9,121,000

10,190,000
7,146,000

*$24,689

&26,392

19,842

*19,837

20,093

$44,208

*$44,526

$46,485

24,213

——

6,767,000

$24,366

_

—

15,888,000

8,873,000

6,765,000

—,

goods

*24,250

26,366

3.86
"

Railroad
Public

Utilities

Group
Group

Industrials

MOODY'S

.

-

of

Unfilled

(tons)

3.06

of

412.6

395.4

211,305

235,147

210,528

226,801

246,383

244,607

241,922

257,907

Sept. 25
—Sept. 25

92

93

92

369,305

408,830

330,720

AVERAGE

1949

period

—

EXCHANGE

—

EXCHANGE

SECURITIES

Odd-lot sales by dealers

ON

N.

-—Oct.

Customers'

short

Customers'

706,904

1,049,762

976,867

$33,251,350

$47,922,721

$37,936,203

Sept. 18
Sept. 18
Sept. 18

11,580

12,092

14,674

16,293

958,367

679,456

1,129,482

831,440

value

—-Sept. 18

$43,710,337

$30,060,985

$51,009,687

$31,222,876

313,590

192,840

383,870

241,900

—

—

shares—Total

■

,

Other

sales

969,947

691,548

1,144,156

847,733

EXCHANGE

192~840

3831870

24ll900

278,380

244,450

286,162

363,740

——

ACCOUNT

FOR

———

STOCK

THE N.

ON

SALES

OF

Short sales

:

.:—— —

——

4—'

:

TRANSACTIONS

ROUND-LOT

—Sept. 11

314.040

378,200

585,850

—--Sept. 11

7,410,270

9,552,430

13,727.520

221,030,
4,503,390

——Sept. 11

7,724,310

9,930,630

14,313,370

4,724,420

—

sales

Other

?

——

ACCOUNT

FOR

OF

MEM¬

SPECIALISTS:
Transactions of specialists in stocks in which registered—
Total purchases
:
—
——Sept. 11

.

'

•

the floor—

Other

1,627,620

411,160

160,590

171,850

324,110

80,560

1,038,230

1,344,670

377,710

899,970

1,210,080

1,668,780

458,270

-

—Sept. 11
jept. 11
——Sept. 11

—

—

—

sales

21,050

18,700

34,400

9,900

236,300

293,620

463,270

87,930

—_3ept. 11

257,350

312,320

497,670

97,830

—Sept. 11

sales

Otner
Total

1,182,360

739,380

1

purchases

Short sales

.

861,570

Sept; 11

———

Other transactions initiated on
Total

257,015

385,630

501,808

189,375

—■

transactions initiated off the

264,560

321,290

542,190

74,100

floor—

-

Total

purchases

Short sales

<5ept. 11

—■—:

Total sales

Total round-lot transactions for

sales

—,

PRICES,

(1947-49
Commodity Group—
All

—

NEW
=

SERIES

—

U.

8.

571,375

165,350

455,038

668,035

201,780

36,430

DEPT.

1,383,145

1,889,280

2,671,618

212,710

241,500

455,170

1,278,847

1,735,938

2.379,315

Total

^

Jan.

1,

1,977,438

2,834,485

of

carrying

1954,

as

hand

dnbit

net

to

4.53

2.79

3.40

5.73

$1,997,862

$1,925,512

$1,682,105

customers'

free

value

of

listed

of

listed

and foods.

109.9

92.8

Total

104.5

86.5

Less

———Sept. 28

114.5

.,

90.31*

i:

:

114.4

i

tG

it)

104.7

'

114.6

145,843,061

110,750,141

105,726,616

100,009,822

211,025

152,775

129,436

other collateral—

1,292,312

1,246,355

1,203,892

OF

$286.5

*$286.5

195.7

*195.5

83.8

•84.0

52.8

♦52.5

52.7

•25.5

25.3

*33.5

33.6

tNumber of orders not reported since introduction of Monthly Investment Plan.

.

—

Govt,

UNITED

,

STATES

COMMERCE)—Month

—

receipts,

total.—

industries

producing
industries

industries

contributions

employee

Total
Total

PRICES

transfer

RECEIVED

NUMBER

—

dividends..—

BY

U.

S.

FARMERS
DEPT.

OF

of

4.7

4.1
6.4

47.9

24.1

..

6.6

•49.2
24.1

23.0

15.8

income-—.

TURE—1910-14=100—As

89.8

6.6

—

—

15.8

13.6

270.5

payments—.

non-agricultural

201.4

48.8

income—

income and

interest

Personal

'

——

rental

and

4.5

—

income

$288.2
*

in¬

social

for

...

labor

Proprietors

•270.3

273.0

248

*260

INDEX

AGRICUL¬

July

15:

Unadjusted—
All

farm

products

—

—

247

grain

Cotton

:

——-—

218

205

204

446

—

216

202

and hay

244

225

Tobacco

Meat

-

248

grain—

Feed

.

,

—

Food

'92.6
.

142,284,335

33.6

on

surance

104.8

114.4 r

27,022

109,495,032

IN THE

salary,

and

Other

98.1

85.8

jops;

640,535

Government

110.7

91.6

*877.044

issues...

bonds.-

income

personal

Wage

126,890

109.5

U

shares—;

285,220

909,904

-

*325,022

July, (in billions):

445

426

272

■»

274

237

270

228

240

193

243

200

252

286

283

268

247

251

280

286

299

319

237

229

261

171

108

223

$17,154,500

421,666,300

^

1—

crops

Livestock

>r
(

balances—

32,596

332,818

S._

25.5

borrowings

Truck

92.7

—

30,874
U.

credit

U. S.

borrowers on

Fruit

109.7

Aug.

balances

banks in

in

value

of

of

customers

and

Member

674,635
"

([Includes 665,000 barrels of foreign crude runs.
§Based on new annual capacity of 124,330,410 tons
against the Jan. 1, >1953 basis of 117,547,470 tons.j
•
•
,




4.32

4.75

accounts—

margin

Market

757,880

—Sept. 28

foods

figure

5.76

2.77

crops

and

——-—*~

products

,

animals

Dairy products

Poultry

.

eggs

TREASURY MARKET

TRANSACTIONS

GUARANTEED

IN DI¬

SECURITIES

RECT

of

4.66

omitted):

customers'

on

630,990

1,491,557

.Sept. 28

'Revised
•~as

5.56

—

EXCHANGE—As

STOCK

firms

Cash

OF

—Sept. 28

commodities other than farm

7.13

4.69

4.39

(000's

Crops

—Sept. 28

Meats
All

6.30

4.64

4.46

:

Oil-bearing

products

Processed

YORK

31

Member

100):

commodities

Farm

96,660

404,088

**
Sept. 11
—Sept. II

Total sales

LABOR

50,950

303,167

334,237

Sept. 11
—

—

Other

NEW

account of members—

Total purchases
Short sales

WHOLESALE

31,070

—Sept. 11
.-Sept. 11

-r~

sales

Other

6.12

(10)

(Service

Sept. 11

sales

4.31

(24)—

Tel. & Tel.)

Amer.

(200)

Distributing

—Sept. 11

Short sales
Other

Sept.:

(15)

Insurance

Average

Commodity

BERS, EXCEPT ODD-LOT DEALERS AND

Total sales

of

>

1

(not incl.

(DEPARTMENT

Total Round-lot sales—

Total sales

STOCKS—Month

OF

(125)

PERSONAL INCOME

(SHARES):

MEMBERS

YIELD

(25)

Member

Y. STOCK

ROUND-LOT STOCK TRANSACTIONS

AND

,

AVERAGE

Market

——•-—

TOTAL ROUND-LOT

COMMON

Total

313,590

—

Round-lot purchases by dealers—
Number of shares

r.

Credit .extended

.

wept. 18
Sept.,18
Jept.18
—Sept. 18

sales.,

Short sales

,

—

sales)—

sales

Round-lot sales by dealers—

100

Banks

900,018

$44,330,803

;

WEIGHTED

Utilities

Sept. 18

—

other sales

of

,105.58

Sept. 18

Number of shares—Total sales

Dollar

106.61

—

.—T—

Industrials

■

Odd-lot purchases by dealers (customers'

Number

105.64

COMMISSION:

—

Sales

—

—

Railroads

Dollar \ alue

.

105.70

(customers' purchases)t—•

Number of shares
•

1

ODD-

STOCK

Y.

SERIES—

—

Total

\

MOODY'S

—

SPECIALISTS

AND

NEW

(millions of dollars):

Non-durables

.

481,985

COMMERCE)

of July

Durables

100

=

DEALERS

OF

Month

SALES

&

Inventories—

o

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF
LOT

(DEPT.

3.37

406.2

Sept. 25

at end

MANUFACTURERS', INVENTORIES

3.51

3.07

407.0

OIL, PAINT AND DRUG REPORTER PRICE INDEX—

,

,

3.12

3.06

5

ASSOCIATION:

activity

orders

3.12

3.60

5

(tons)

Percentage

3.12

3.21

Oct.

„

(tons)——,

Production

3.23

Sept. 25

PAPERBOARD

Orders received

.*-3.23

Oct.

—

INDEX

COMMODITY

NATIONAL

r

Oct. v5
Oct. 5

Group

AND

OF

S. A.—Month of August:

Net
Net

U.

sales

purchases

——

.:

$377,400

•

■

The Commercial and Financial Chronicle...

(1420)'

3G

Thursday, October 7, 1954

'

V '

baldly,

Continued jrom page 14

"The

Lawlessness in
interests of all the

High Places

and

the common

fined

and
295
U. S. 495 (1935). Thereafter such
Federal power was sanctified in
two opinions written significantly
by the same Justices who had
previously expressed a majority
view denying the existence of any

Only made politically imt>otent, but the.y are also cajoled
said confused by constant politi"

declamations

gestures of

and

In this way you

have observed that school
teachers, small business men, in¬
dependent workers and many
professionals are frequently as-

Hiay

fore there

Rewritten
This brief review of the rise

of

political order prepares me,
and I hope my audience, to con¬
sider the
question: How could
-such a drastic change in the pur¬
a new

>4lthout
stitution

a

rewriting of the Con¬
of the United States?

case,

S.

U.

Butler nullifying

v.

com¬

this line of
an
amendment

effect

actual

wrote

regulation,
the opinion in Mulford v.
sustaining such Federal

into the Constitution. This

lawlessly

amendment, was

an

as

ratified by

the Supreme Court.
This Sfoiendment of the inter¬

-

state

clause is only one

commerce

revisions of our Supreme
Law by public officials who were
never
authorized to revise, but,
of many

the

on

contrary,

to

sworn

were

support and to defend the Consti¬
tution. Conspicuous among these
is

amendments
tension

ex¬

enormous

an

Federal taxing power,

of

entirely outside of the extension
an unlimited taxing power over
incomes which the people them¬

of

selves

the

in

granted

unwisely

Amendent.

Sixteenth

wrote

Smith

regulation.

Emasculation

Tenth

of the

embodiment

we

the
faith,

as

of

a
political
religious faith, we
capable of being the

on

a

destroy it as

Supreme Law of the Land as it is
proclaimed to be. If, on the one
hand, we do intend to preserve it
as
the
Supreme Law, we must

Supreme

the

Amendent

Tenth

enterprises have been kept
free from government control is
largely responsible for the ex¬
traordinary
material
prosperity
and

ican
If

spiritual freedom of the Amer¬
people.
failed to learn these things

we

from

nation-wide reexamination

a

of

was

duced to follow

was written, when it
written, and when any part

becomes out-dated

of it

but necessary task of
as

must

we

ourselves to the difficult

address

rewriting it

We should not trust
the questionable
legislators seeking the

people.

a

history

our

remove

its

wisdom of

sive

exercises

But

if

I

distinguished apol¬

a

Supreme

Court as

Justice Roberts

concludes

the

for

ogist

former

book, "The Court and
Constitution," with this tragic

his

this

of

is

on

political
be

to

to

as

exces¬

power.

destiny

our

only thank Heaven

can

then

so

that

a

man of
my age has no expectation
bf living through such a period of

national

retrogression

disil¬

and

lusionment

Even such

recent

the

might

limitations

easiest,

tion.

We

Constitution

transient

the

in¬

"progressing"

are

decadence.

and

our

approved as being within
bounds of legislative discre¬

be

the lead of other

downhill into socialistic tyrannies
rewrite

cially

might

we

that

nations

this rewriting to

most popular solution of
problems. Nor should
such lawless legislation be judi¬

lives

our

and

However,

if the effect of

even

rigidly enforcing our
Supreme
should be to hasten a de¬

Law

still

its

for

mand

revision,

better thus to

be

it

would

keep faith

with ourselves, even if we regard
it as unwise to keep faith with

I think it fair to
that progressively, the Su¬ our ancestors. It is not only mor¬
preme Court has limited and sur-_ ally degrading to maintain the pre¬
say

long line of opinions the
Court has so emascu¬

a

suffering toI hope that we would learn

that the extent to which

read it is it

"In summary,

Amendment

lated

Constitution

unless

that

me

Constitution

the

world's peoples are

day.

admission:

In

Interpretation of the

The Liberal

to

seems

regard
founded

Federal agricultural

about-

brought

been

have

ment
-

in

ion

and powers of our govern¬

poses

a

indus¬
enforced in the
were brushed
aside
in
NLRB
v.
Jones and
Laughlin Steel Corp., 301 U. S. 1,
in an opinion by the same Chief
Justice
Hughes who wrote the
Schechter opinion.
In 1939 Jus¬
tice Roberts, who wrote the opin¬

Constitution Be

the

In 1937, be¬
single change in

sternly

try,

Schechter

living.
Should

was

of

the states."

amend¬
ment had been proposed by the
Congress in the form of unauthor¬
ized statutes, and without being
submitted to the people lawfully

Federal power over

of

its

con¬

It

over

not

is

regulation

the

among

decisions

membership of the Court, the lim¬

political interest in their
welfare, although very little is
ever done for them except to in¬
crease
their
taxes
and cost of

Congress

of

commerce

to

In

such Federal power.

*ftired of

,

Butler, 297 U. S. 1 (1936)
Corp.
v.
U. S.,

v.

Schechter

are

cal

by the so-called "old
Court" in cases like U. S.

£libreme

remaining minorities, v/no
not favore^ bv
government,

friendly interest.

industry >,id labor had been

nullified

people.

The
are

Has the Supreme Court Exceeded
Its Powers?

power

interstate
merce

lated to vote against

the revised law of the

as

Constitution:

that

rendered the role the Constitution

intended to confer

was

it."

on

that

tense

people

law-abiding

a

are

we

high principle, while
we
are
actually becoming more
and more lawless and unprinci¬
pled.
It is also increasingly dan¬
gerous to individual security —
to the selfish need of every one of
us
for constant protection from
of

this once powerful limitation on
Probably only a few lawyers
Federal power has been practical¬ and
not
many
others read the
highly erased from the Constitution. brief of the Solicitor General in
ment has
only limited powers,
minded Justices became convinced
Even
more
dangerous,
in fact the Steel Seizure Cases. But one
carefully defined and limited in that the
preservation of American
threatening the entire life of our significant passage in that brief
the Constitution.
There are two
institutions depended on adopting
government, is the recent sweep¬ appealed to the Supreme Court
fundamental purposes evident in
what is called a liberal interpreta¬
ing extension of a constitutionally to avoid what was stated to be evil forces that propagate and
Die Constitution. First, to estab¬
tion
of
the Constitution.
This limited
"the discredited technique of con¬ spread underneath the comfort¬
treaty power.
lish a government capable of de¬
means
in reality the amendment
Here the
Supreme Court has stitutional interpretation based on ing, peaceful surface of an orderly
fending the freedom and inde¬ of the Constitution by what is es¬
achieved the acme of disrespect 'immutable principles'." Here was society.
pendence of the States and their
sentially a lawless process of un¬
All lawyers know

that under the

Constitution the national govern¬

-citizens

aggression

foreign

from

Here

and from internal dissension; and,

second, to limit the powers of

have

we

a

demonstration

that two of the ablest, most

this

that it
could not exercise any power to
<Hminish substantially this free¬
dom
and
independence of the
centralized government so

This proc¬

the likelihood

.

of

vigorous dissent, I assert my deep.seated conviction that such a cen¬
tralized welfare state as our poli¬
ticians
have
been
creating
in
the last 20 years could not be

law¬
fully established under the Consti¬
tution as written in 1787, and has
wot been authorized by any lawful
amendment

construction of the

or

Since it will be in¬

Constitution.

evitably argued that the Supreme
Court has sustained the constitu¬

tionality of

every

law

now

being

I seem forced to sup¬
port my opinion by the further
assertion that it is only by a lawenforced,

*>(less disregard of the Supreme Law
written
our

«f

in

the

present

Constitution

that

and

suffice.

I

limited
by the exact language of the Con¬
stitution than the power

first

themselves
from

the

faith

of

«ie

the

upon

who

have

political
their

and

fathers.

of

State, there was developed a

then

was

that

made

the

over

by

But
eral

ten.

We

it

ri

part of in¬

casual and
lawless Amendment promulgated
by the Supreme Court. I merely
desire in passing to express again
my amazement that nine Justices
of the Supreme Court could be
found to agree upon an opinion
involving such a distortion of his¬
tory and such a destruction of the
safeguards of constitutional gov¬
ernment, as the opinion of Jus¬
tice Sutherland in U. S.

Wright

Export

U.S. 30^3

There

not sufficient to

which concerned more
So the pernicious
that whatever "af¬

a

Court, speaking through
Chief Justice Hughes, vehemently

mous

that

direct

tween

po¬

"the
and

distinction be¬
indirect

effects

of intrastate transactions upon

terstate
nized

commerce

in¬

must be recog¬

fundamental

one

es¬

sential to the maintenance of

our

as

a

constitutional

writ¬

Otherwise
there would be virtually no

...

limit

the

for

to

all

system.

Federal

the

power

and

practical purposes we

would have

a

completely central¬

ized government."
~

cases y

explanation

only one

obvious

an

decline of faith in the
States,

Constitution of the United

not only voters and poli¬
ticians but also among public of¬

among

even

Nevertheless, in the subsequent
procession of cases' with which

responsibility, and
legal educators. That
which I suggested ear¬

among

is the

one

The

of the United
rapidly losing

people

have

been

their religious faith
of

in the divinity

aM hence losing their

man

litical faith in that

dedicated

asserted

299

which

our

po¬

individualism

government

in order to

sustain

was
our

was

irreligious,

agnostic, in
the demand of the founding fathers
for religious freedom, nor in the
doctrine
of
the
separation
of
and

Seizure

Steel

the

the

Cases.

nor

state.

On

the

con¬

the

great

mass
were

of the American
religious, God¬

welfare, they
all

men

were

convinced that

should be left free to wor¬

ship their Creator and to follow
such divine laws as they were in¬
dividually inspired to follow.
Their

under which such eva¬

pressures

addressing

Carolina, I

of South
repentant of ado¬

the

am

lescent sin

the

un¬

are

As I recently confessed

dertaken.
in

Constitution

of the

sions

as

a

Bar

time advocate

one

amendment of
legislative-ju¬
interpretation. However, I
would not regard it as an amend¬
ment, or even as a questionable
of

practical

dicial

of

construction

the

commerce

clause, to hold that Federal regu¬
lation

of

extended

be

can

forms

to

such

commerce

new

air¬

as

planes and radio which were not
only
in

unknown but

1787, and to

exercise

new

unanticipated
needs for the

other

of

definitely

granted Federal powers.
But I submit that it is one

to

apply

written

word

a

the

in

or

thing

principle

a

Constitution

to carry out the purpose,

as

so

the phi¬

the

Constitution, and it

is

utterly different thing to sanc¬

an

tion

the

doing under the Consti¬
tution of precisely what the Con¬
stitution

the

forbids—as, for example,
regulation of commerce wholly

within
How

a

If

see

article

D. R. R. in 39 Va. L. Rev. 753.

by

that

But, what does that

menace.

rest

upon?
Communist
relies wholly upon the

menace

plotting

the

Be

people

do

not

delinquency, organized crime,,
politics—all these are

mercenary

evidences of

then

we

the

Constitution

Re-Written

of

hold

should

write

plotters

ary

made

an

the

today

re¬

undertake

to

on

our

effort

the

to

discrediting

aganda

of

ical

our

to

do

this

we
we

values

and

weak¬

form of government.

hope that in the end

learn

how

tenance of
tations

a

in

and

major

a

the

polit¬

destruc¬

political and religious

our

faith is

achieve¬

pronaganda

power,

tive of

the

people

need of limiting

of soften¬

means

ing and dividing
conquest.

for eventual'

us

Against this steadily rising

men¬

ace—the greatest single threat to
individual security and freedom—

urgently need

we

re-education

a

of all of us in the limitations and

restraints
that

of

must

government

power

maintained

be

if

the

self-government and self-reliance
of

free

a

people

Socialism will
the

all

will

It

simply

of capital

trol

are

not

economics

petitors

to

to

endure..

really destroy
of

caDitalism..

transfer

the

con¬

from private

com¬

public

monopolists.
But socialism will destroy individ¬
ualism;
and individualism is a

into

national

our

blurred

be

Lawlessness

might

constitutional limi¬

then

and

in

should

government have saved

mis-governments
great

majority

under

of

the

not

erased

High Places.

Individualism
Individualism

Constitution-

law

—

as

by
-

the Ideal

an

ideal,

and

the

protection of individualism by
government and against govern¬
ment, have been scorned and disr
paraged
ualism

faith
in
no

by intellectuals of the
century.
But individ¬

must

be

dominant

in

the

people who believe
individual liberty* Let us make
of

any

mistake: We must remain

dividualists and maintain
on

from

which

we

profoundly the main¬
our

free

a

perpetual

twentieth
of

nesses

field

form of government. Prop¬

ments

re¬

should necessarily re-educate our¬
selves

fertile

a

which to plan for massive attacks

Our fundamental

United

the

fundamental law. If

our

toleration of law¬

a

lessness that offers to revolution¬

ligious faith and the political faith

us
comment

I am not one who under-estimates

that is written in the Constitution

2Cases such as Jones and Laughlin,
310 U. S. 1: Darbv, 310 U. S. .100;
Wrightwood Dairy, 315 U. S. 110.

further

When

and

States

I

3For

tyranny of
slavery to the State, which means
slavery to a political ruling class..

simplified definition of the polit¬
ical and religious
faith written

state.

Should

government, established to
the
blessings off liberty,
lawyers are familiar2 the Court
should not deny to them that most
gradually eliminated all legalistic
precious liberty, known as liberty
subterfuge and finally announced
of conscience.
2
insure

the way to establish a

erated by a free people.
Labor
violence, gang murders, juvenile

people.

easily divide them. In their love
of liberty, in their sense of indi¬
vidual responsibility for individual

men¬

condemnation of legislativejudicial amendment of the Consti¬
tution that I do not appreciate the
my

a

They took their
religion so seriously that minor
differences in faith or creed might
fearing

about the

of communist plotting for a
revolution of terrorism to open

ability of revolutionists to take
advantage of the lawlessness tol¬

trary, there is ample evidence that
colonists

We hear much

ace

vigor of

not think from the

Do

wrote

nothing

nothing atheistic

church

happily

was

losophy and the faith of those who

religious faith.
There

which

the Constitution by

which I would offer for

to

even

Corporation,
4

is

and tragic

Curtiss-

v.

ficials of great

pretense that the
of the States
were
being preserved from Fed¬
eral destruction.
Indeed, as late
as
the Schechter Case, a unani¬

offices

jHyrainat'ng review of

was

arose

maintain

lawyers




a

constitutional powers

Federal controls of agriculture
.an

of

and

nullify this

ject to Federal regulation. For a
time this had to be qualified to

serv¬

fee Buck, "The Constitution and Socialf*"# XII Md. L. Rev. 1 (1951). ■"

decision

to

order

formal

a

fects" interstate commerce is sub¬

sary.
<

as

State.

one

doctrine

let

can hardly forcourt-packing plan
of 1937 was not defeated by public
opposition to the purpose of the
plan. It was actually defeated by
a shift of majority opinion in the
Court itself, which made a violent
cfhange of membership unneces¬

-get that

it

as

current

government

this extension of Fed¬

power

than

religious

was

even

problems

ticularly the Congress—from the
■restraints of judicial enforcement
as

be unwarranted by

States

Supreme Court

of (he Constitution

shown to

lier:

backslid

dominant

Amendment to the Constitution in

national action to meet needs and

people

Then

discredited

had

integrity,

for

satisfy rising demands for unified

litical party for the very purpose
wf freeing legislatures—and par¬

-

interstate

an

Federal

"

their

a

somehow

regarded

in

the

could regulate

jarimarily as the servants of politi¬
cally powerful special interests.
Finally, let me call attention to
Hie fact

be

could

flowing

terstate commerce.

resounding pledges of public
executed

mod¬

enterprise might begin and prac¬
tically end in one State, but, if it

a
further responsibility
the politicians big and little

and

rigid enforcement of this lim¬

ifying doctrine based on the con¬
cept that there was a Current or
flow
of
commerce.
A business

-v/ho have sought public offices on
ice

the

among

But, after years

itation, which excluded the Fed¬
eral government from regulating
commerce
wholly within one

lay

«pon

States."

several

icizing the Supreme Court, let me
again lay the heaviest responsibil¬
ity for
Lawlessness
in
High
IPlaces,

"commerce

of

tion

unhappy position of severely crit¬
-

of Con¬

which is
expressly confined to the regula¬
commerce

over

gress

placed in the

am

assumption that

lawful

need

Nothing is more clearly

maintained.1

But before

an

itself

Court

lawless acts of not rise from a grant of power and abandoned the interpretation
(stimulated by vote in the Constiution, but exists in¬ of the Constitution as to the ex¬
gathering executives) which are dependent of the Constitution. I pression of any "immutable prin¬
finally ratified by the Supreme shall not bore you on this occasion ciples." To my mind this appeal
Court. One specific example will with
any further argument on the to the Court was an insult to its

semi-welfare state has been

a

created

the

legislatures

government

national

baldly stated

with

begins

ess

States and their citizens.

Recognizing

the Constitution, in actually
holding that the treaty power does

for

warranted construction.

ernment of individualists,

a

in¬

gov¬

by in¬
dividualists, for individualists, if
we are to remain a free people.

WlfeMftllftWIIW?**^

Volume 180

MW««W

Number 5366...The Commercial and Financial Chronicle

'■

fl»w

r*"

4„-"J»'/f f/.< Vf'''J»

;J

^WWWttyMaM^^

rni 'bfi>il'",C *:(. t.ln7*,; >j.i.i''<*

■;

,

I

>':rj'ftit'

j,

(1421), ,37,.

t> '

^ INDICATES

Securities Now in
Alabama Gas Corp., Birmingham, Ala.
Sept. 29 filed 84,119 shares of common stock (par $2) to

16

oversubscription privilege). Present plans call for mail¬
ing warrants during latter part of October and for the
warrants to expire about mid-November.
Price—To be
supplied by amendment. Proceeds
For construction
♦

Underwriter—Allen & Co., New York.

Corp., New Britain, Conn.
Sept. 23 (letter of notification) 5,333 shares of common
(par $25) being offered for subscription by stock¬
holders of record Sept. 23 on the basis of one new share

100

stock

for

each

15

etc.

shares

j

non-voting common stock.
Price—At par (25 cents
share).
Proceeds—For loans (mainly promissory
notes). Office—1334 Pearl Street, Boulder, Colo. Un¬
per

insurance

city.

companies,

in the

expand

American

Aug.
mon

Buyers

small

Insurance

Hill,
N. J.'

(par $1)

Price—$2

share.

per

Proceeds—To fi¬

growth and expansion of the company's business.
Johnston, Lemon & Co., Washington,
C.; and Hettlemen & Co., New York, N. Y.

Underwriters
D.

$1.25

loan

Co.,
2,500

(letter

Corp., St. Louis, Mo.
notification) 12,000 shares

of

6%

of

Price—
working capital.

Office—1034

Locust

St., St. Louis, Mo.
Newhard, Cook & Co., the same city.

Under¬

Phoenix,

13

cumulative convertible preferred
stock, series A.
At par ($25 per share). Proceeds—For

share.

per

field.

—

American Transit

Sept.

Underwriter—

Inc., Moab, Utah
Aug. 18 (letter of notification) 3,320,000 shares of capital
stock.

Ariz.

18 (letter of notification)
shares of com¬
stock, being offered to stockholders of record Aug.

Price—At par

For exploration and

(five cents

per

development

share).

expenses.

Proceeds—
Underwriter

—Ogden Uranium Brokerage Co., Ogden, Utah.

Arco

shares in

exchange for property and 300,000 shares to t)€*
to Benjamin Arkin, President, and 200JOGD
shares to be optioned to underwriters. Price—At par {SC*
cents per share). Proceeds—To repay advances and kiasu.
from Mr. Arkin, purchase equipment and for explora¬
tion and development expenses.
Underwriter
Petexn,.
optioned

Writer &

Christensen, Inc., Denver, <^1q. ;f .T

.

j

Arkansas Natural Resources Corp.
June 11 (letter of notification) 299,500 shares of com¬
mon stock (par 25 cents).
Price—$1 per share. Proceed*#
—For expenses incident to drilling for magnetic iron

Office—Rison,

Ark.

Underwriter—Eaton

New York, N. Y.

&

Co.,

.

Automatic Remote Systems, Inc., Baltimore
:
Aug. 4 filed 620,000 shares of common stock (par
cents), of which 540,000 shares are to be offered tea
public and 80,000 shares to be issued to underwrite*-..
Price—$3.75 per share. Proceeds—For manufacture «©■
Telebet units and Teleac systems and additions to work¬
ing capital. Underwriter—Mitchell Securities, Inc., Bal¬
timore, Md.

Big Bend Uranium Co., Salt Lake City, Utah
Aug. 6 (letter of notification) 7,000,000 shares of commccci
Price—At par (three cents per share).
-—For mining expenses. Office—510 Newhouse
Salt

Lake

City, Utah. Underwriter
Phillips Building, same city.

Proceed*
Building^
Call-Smoot Ca„

—

Big Horn Uranium Corp., Ogden, Utah
Sept. 23 (letter of notification) 4,000,000 shares of com¬
stock

(par

Office—3375

CALENDAR

ISSUE

Uranium, Inc., Denver, Cole.

Proceeds—For

ISSUE

*

REVISED

Sept. 7 filed 2,500,000 shares of common stock, of whiffei
1,000,000 shares are to be publicly offered, l,060,00l>

mon

NEW

ITEMS

stock.

American Uranium,

writer—None.
•

B.

Teaneck,

nance

"Expansion Policyholders" (various
policyholders of both insurance
companies), and em¬
ployees, at par ($1 per share); and to all other
policy¬
Proceeds—To

Ave.,

American Independent Reinsurance Co.

five shares held.

To so-called

the

Englewood

be offered for subscription by stockholders of record*
Oct. 15, 1954 on the basis of three new shares for each

American Buyers Credit
Co., Phoenix, Ariz.
Aug. 6 filed 5,000,000 shares of common stock to be Is¬
sued to policyholders of American
Buyers Insurance Co.
and
American Buyers Casualty
Co., and employees.

in

Address—Harold

steamer.

West

to

Proceeds—For exploration and
development costs. Office
—218 Atlas Bldg., Salt Lake
City, Utah. Underwriter—

holders

317

Mercury Insurance Co.,
Washington, D. C. (10/18)
Sept. 27 filed 150,000 shares of capital stock

Sept. 1 (letterot notification) 2,500,000 shares of com¬
mon stock (par three
cents). Price—10 cents per share.

Price

tramp

a

American

!

Amalgamated Uranium Corp., Salt Lake City, Utah

same

as

op¬

PREVIOUS

Ampal-American Israel Corp., New York
Sept. 17 filed $5,000,000 of 10-year 5% sinking fundi
debentures, series C, due 1964; $3,125,000 of 5-year dis¬
count debentures, series D; and $4,100,000 of 10-year dis¬
count debentures, series E. Price—Series C, at par; ae¬
ries D $2,507,659.53, to yield return equal to compound,
interest at rate of 4%% per annum, compounded; audi
series E $2,502,111.10, to yield 5%. Proceeds—For de¬
velopment and expansion of agricultural, industrial andt
commercial enterprises in Israel. Underwriter—None.

Proceeds—

flag vessel which will be

Price—$4

B

Co., the

Price—$200 per unit.

Sbpt. 2 filed 900,000 shares of common stock (par $1).
per share. Proceeds—To be invested in secu¬
rities of other companies and for working capital. Office
—Orlando, Fla. Underwriter — Goodbody & Co., St.
Petersburg, Fla.

Boulder, Colo.

Aug. 13 (letter of notification) 900,000 shares of class

Ned J. Bowman

stock.

Underwriter—None.

Under¬

derwriter—Allen Investment Co.,;;
Boulder, Colo.

of

President,

writer—None.
Allan Discount Corp.,

shares

erated

rights to expire on Nov. 1.
,Proceeds—For working capital,

Office—Corbin Ave., New Britain, Conn.

par

To purchase an American

held;

share.

per

rata

pro

At

-jfc-American Defense Lhae, Inc. (N. Y.)
Sept. 29 (letter of notification) $150,000 of convertible
6% income debentures dated Oct. 1, 1954 and due Sept.
30, 1964 and 150,000 shares of common stock (par 10
cents) to be offered in units of one $100 debenture and

Allied Thermal

Price—$45

a

—

nix, Ariz. Underwriter—None.

—

program.

•

basis; rights to expire on Nov. 12.
($10 per share.)
Proceeds — To ac¬
quire capital required by Arizona law for a stock benefit
insurance company. Office—2001 East Roosevelt, Phoe¬
on

Price

be offered for subscription by common stockholders at
rate of one new share for each 10 shares held
(with an

ADDITIONS

SINCE

—Allan W.

one cent),
Price—Five cents per shares
exploration and development expenses:..

Harrison Blvd.,

Ogden, Utah.

Underwriter

Egbert Co., 2306 Iowa Ave., Ogden, Utah.

Big Indian Uranium Corp., Provo, Utah
October 7
New

(Thursday)

York, New Haven & Hartford

Texas Power &

(Bids 11:30

RR.

Equip. Trust Ctfs.
(Bids

Southern New England Telephone Co
(Bids 11

EST)

a.m.

October 8

to

New York

Common

Debentures

stockholders—underwritten
Kidder, Peabody & Co.) $3,772,100

'

(Frederick

(Bids to

Co., Inc
H.

Hatch

Common

&

State

Loan

D.

Finance

Brooks & Co.,

Engineering

(Saunders, Stiver &

Corp

Debentures

(Thursday)

■

•

Common

M'oseley & Co.)

October 25

(Wednesday)
Common

and The First Cleveland Corp.)

"

•

Peerless

11

EST)

a.m.

;

Thompson-Starrett
(Blair &

Co., Inc.

Co.,

and

(Monday)
.Preferred

Emanuel,

October 26

Common

Continental

Deetjen & Co.) $1,450,000

170,000

(Tuesday)

Co

Oil

(Morgan

shares

Debentures

Stanley

&

Co.)

(Ira

Common

Haupt

&

Co.)

200,000

shares

"

Bonds, Debs. & Preferred
(Bids

11

October
Fitzsimmons

EST)

a.m.

14

Gas

October 27

$11,000,000

Florida Power

(Thursday)
_Class
100,000 shares

Corp

(Kidder,

Peabody

Israel-Mediterranean
(Gearhart

&

&

750,000

Petroleum,

Otis, Inc.)

10

Inc.)

CST)

a.m.

Inc

(Van

750,000

shares

(Offering

shares

Penobscot
(Coffin

Chemical
&

Burr,

Inc.

15

Noel

to

and

Bonds

EST) $10,000,000

(Monday)

(Bids

to

9

to

be

Co.)

Inc.)

$1,250,000

Pacific

Co

be

Whiteside,

West

stock.

Price—At par

($1

per

share).

Proceeds

—For development and exploratory expenses.
Office—
301 Granite Block, Fall River, Mass. Underwriter—None.

Spiegelmann

is

promoter.

^Brothers Chemical Co. (N. J.)
Oct. 1 (letter of notification) 109,000 shares of comrrwm
stock (par 10 cents). Price—$2.75 per share. Proceeds—
For working capital.
Office — 575 Forest St., Orange,
N.J. Underwriter—Batkin & Co., New York.
Buffalo Forge Co., Buffalo, N. Y.
July 7 filed 85,000 shares of common stock (par $1).
Price—To be related to current market price at time GB
offering. Proceeds—To 11 selling stockholders. Unde»-

Continued

on

page

shares

$4,000,000

16

(Tuesday)

Telephone & Telegraph Co

December

Common

$3,000,000

14

(Tuesday)

New Orleans Public Service

(Monday)
Co

December 15

&

Co.)

Inc..'

.Bonds

$6,000,000

\

(Wednesday)

[

Common

(Offering to stockholders—underwritten by Johnston, Lemon
Hettlemen

Debentures

$50,000,000

&

$1,400,000

American Mercury Insurance




Mass.

Bonds

.

(Bids to be invited)

October 18

and

381,018

River,

$40,000,000

invited)

(Bids to be invited)

Bonds

Chace,

(Hunter Securities Corp.)

Co.

ir Borealis Uranium Corp., Fall

Sept. 27 (letter of notification) 50,000 shares of class A.

.Bonds

invited)

November

Common
&

Venezuelan Sulphur Corp. of America

&

Uranium Corp.

(Tuesday)

Sierra Pacific Power Co

$12,500,000

Basin

(letter of notification)
15,000,000 shares
capital stock. Price — At par (two cents per share}-*
Proceeds
For exploration and development expenses.
23

Common

stockholders—no underwriting)

November

Under¬

D. Friedman & Co., Inc., New York.

(Friday)

Fibre

Winslow,

a.m.

Chesapeake & Ohio Ry
-Bonds

Inc

AJstyne,

Light Co
11:30

November 8

Common

750,000

$12,000,000

National Fuel Gas Co

shares

(Bids

Continental Uranium,

Bonds
invited)

be

Common

Otis,

October

to

Common

Co.)

&

Wisconsin Public Service Corp
(Bids

(Bids

100,000 shares

Pan-Israel Oil Co., Inc
(Gearhart

Florida Power &

Common

Peabody & Co.)

Incorporated Income Fund
(Kidder,

A

(Wednesday)

Corp

(Bids

Stores, Inc

(Reynolds & Co. and Lester, Ryons & Co.)

General

writer—L.

Victor

$100,000,000

Cott Beverage Corp

Savannah Electric & Power Co.

Office—Sutherline, Ore.

mining of quicksilver.

common

Preferred

Casualty Co
Co.)

(par 10 cents).- Price—At market (estimated,
share). Proceeds—For expenses incident to

per

Office—629 East South Temple St., Salt Lake City, UtahUnderwriter—Van Blerkom & Co., of the same city.

*

Inc

$4,447,600

(Offering to stockholders—underwritten by Kidder, Peabody
&

stock

$1.25

—

60,000 shares

$525,000

Mississippi Power & Light Co
(Bids

mon

at

Aug.

Package Machinery Co
(F. S.

Co
Co.

$1,750,000

$10,750,000

•

Lester

Inc.)

Oil & Mine Corp. (10/12)
■■■!
(letter of notification) 240,000 shares of com¬

Bonanza

Sept. 13

Bonneville
October 21

Inc.) $300,000

(Johnston, Lemon & Co.) $8,000,000

October 13

.

.Preferred

W.

(White, Weld & Co.)

Common

Friedman & Co.,

&

$18,000,000

Corp.

For

•

Bonds

invited)

Higginson Corp. and P.

(Tuesday)

& Mine Corp

(L.

Standard-Thomson
(Lee

Inc.) $300,000

be

Templeton Growth Fund of Canada, Ltd...Common

October 12
Bonanza Oil

Co.,

250,000 shares

Louisiana Power & Light Co

(First California Co., Inc.) $1,000,000

Zotox Pharmacal

..Common
Stone & Co.)

Price—At par (two cents per share). Proceeds—
mining operations. Office—136 S. State Street, Salft
Lake City, Utah.
Underwriter—P. G. Christopulos
Co., same city.

stock.

Common

Hazel Bishop, Inc
(Hayden,

Preferred & Common

Black Hawk Uranium & Metals Co.

Aug. 9 (letter of notification) 5,000,000 shares of capitaX

(Wednesday)

i
(Blyth & Co., Inc.) 250,000 shares

Monday)

July 15 (letter of notification) 500,000 shares of commcia
stock (par 10 cents). Price—25 cents per share. ProceejSit
—For mining operations. Address—Box 77, Provo, Utah..
Underwriter—Weber Investment Co., 242 N. University
Ave., Provo, Utah.
;

$75,000,000

Clary Multiplier Corp

by

•

Nevada Southern Gas Co

Bonds

October 20

common

$20,000,000

(Tuesday)

(Bids to be invited)

(Friday)

October 11(

EST)

a.m.

Telephone Co

130,411 shares

Central Louisiana Electric
Co., Inc
(Offering

Bonds

October 19

EST) $2,595,000

noon

Light Co

$300,000

Illinois

to

be

invited)

$15,000,000

Boston

Philadelphia

—!*_.Debentures

Central
(Bids

New York

...

Pittsburgh

San Francesco

Private Wires to all

offices

Chicago

Cleveland

38

r

<r

rt

JVWKWMW*

Financial Chronicle

The Commercial and

y

Continued jrcm page

Postponed indefinitely.

Offering

►

the basis of

Inc.; San Diego,

Calif.

units of a $500 debenture and 20
Price—To be supplied by amendment.

cents) to be offered in
stock.

Underwriter

corporate purposes.

—

Barrett Herrick &

now

rate

^ Canadian Delhi Petroleum Ltd., Calgary, Can.
268,868 shares of capital stock (par 10 centsCanadian) to be offered for subscription by stockhold¬
ers of record Oct.
15, at the rate -of one new share for
each 12 shares held. Price—To be supplied by amend¬
ment. Proceeds—To be advanced to Canadian Delhi Oil

wholly-owned subsidiary.

McKafe Corp.

Sept. 17
A stock

,

•

Stores, Ltd. (10/14)
Sept. 21 filed 100,000 shares of class A stock v(par $1).
Price—To be supplied by amendment. .Proceeds—To
retire bank and insurance company loans and to increase

capital.

working

Underwriters—Reynolds

&

Co.,

New

York, and Lester, Ryons & Co., Los Angeles, Calif.

.

.

;

(10/27)
.J
Sept. 28 filed
of first mortgage bonds due
1984. Proceeds—For construction program. Underwriter
—To be determined by competitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc.; Kidder, Peabody &
Co. and Merrill Lynch, Pierce, Fenner & Beane (joint¬
ly); The First Boston Corp.; Lehman Brothers; Glore,
Forgan & Co. Bids—Expected to be received on Oct. 27.
•

Morgan Stanley & Co.,

—

Inc.' (10/15-20)
common stock

Uranium,

Fitzsimmons

Florida

Power

Corp.
$12,000,000

if Florida Power & Light Co.

(par 10
for

(10/27)

of first mortgage bonds due
Underwriter
by competitive bidding. Probable

Sept.

30 filed

1984.

Proceeds—For construction program.

for

—To

be

Underwriter—Van

bidders:

^-Coronet Kitchens, Inc., Nort'r Miami, Fla.
Sept. 28 (letter of notification) 110,040 shares of common
stock (par $1).
Price—$1.50 per share. Proceeds—For
production and sale of custom made wood kitchen cabinefs/Office
1510 N. EJ 131st St.T North Miami, Fla. '

Beane; Harriman Ripley & Co. Inc. Bids—Expected to
be received up to 11:30 a.m. (EST) on Oct 27.

Proceeds—To

pay

properties, for development and drilling program and
general corporate purposes. Office — Chicago, 111.
Alstyne, Noel & Co., New York.

Underwriter—None.

West, Salt Lake City, Utah. Under¬
writer—Luster Securities & Co., Jersey Qity, N. J.
Caramba

Underwriter

purposes.

and 210,000

offered to public at $4.50 per share through

Johnson, Lane, Space & Co., Savannah, Ga., who will
also purchase such of the 546,000 shares of common stock
not sold upon exercise of warrants. The exchange offej:
was to expire on Oct. 5.
J

payable to banks, for exploration and development
and gas properties and for other general corpo¬

Continental

2nd

N.

shares being

set.

Sept. 24 filed 500,000 shares of
cents).
Price—$2.50 per share.

Sept. 16 (letter of notification) 1,200,000 shares of com¬
mon
stock (par one cent).
Price—25 cents per share.
^Proceeds—For exploration and development costs., Of¬
fice—404

date

within 30 days from date of issuance,

rants

New York.

Uranium Corp.

Cane Springs

Office—40 North Third St., Columbia,

new

1988, being offered for

the

of

42,000 shares of outstanding common stock
pursuant to plan of readjustment; also 756,000 shares
of common stock, which includes 546,000 shares subject
to subscription at $4.10 per share upon exercise of war¬

oil

of

Oct. 5 filed

a

No

conditions.

Co., Inc., New York.

Ltd.,

each

^Continental Oil Co. (10/26-27)
Oct. 6 filed $100,000,000 of sinking fund debentures due
Nov. 1, 1984.
Price — To be supplied by amendment.
Proceeds—To retire $45,000,000 3^% term loan notes

from National Marine Terminal,
Inc. of its undivided interest in 17 tuna clippers, subject
to certain liabilities; for construction of four tuna clippers}; and the balance for working capital and general
Proceeds—For purchase

Banking Co. of Georgia

collateral trust bond due Aug. 1,

Oct. 31.

and refunding mort¬
gage bonds, series K, due May 1, 1984. Proceeds—To be
applied towards cost of redeeming $27,982,000 New York
Steam Corp. first mortgage bonds and $25,000,000 West¬
chester Lighting Co. general mortgage bonds,
Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Morgan Stanley
& Co.; The First Boston Corp. Offering—Originally set
for May 11, but has been postponed because of market

Sept. 29 filed $4,000,000 of 6% sinking fund debentures
due 1966 and 160,000 shares of common stock (par five
shares of

on

April 7 filed $50,000,000 of first

presently own 503,245 shares,
outstanding Pacific Mills stock. Under¬

Tuna Fleet,

expire

to

Edison Co. of New York, Inc.

Consol.

one-third share of pre¬

writer—None.
+ California

rights

held;

Underwriter—None.

Pa.

Burlington Mills

52.4% of the

shares

13

pany's facilities.

of common st°ck for each Pacific
Mills share. The offer is to expire on Nov. 5, 1954, unless

-

Thursday, October 7, 1954

July 30 filed 42,000 units, each consisting or one share
of common stock, one warrant to subscribe at $4.10 per
share to 13 shares of common stock, and one $250 5%

Price—$40 per share. Proceeds—To convert to dial op¬
eration and for modernization and expansion of com¬

ferred and lVs shares

extended.

each

for

Corp., Greensboro, N. C. •
Oct. 1 filed 151,936 shares of \xk%> preference stock (par
$100) and 546,969 shares of common stock (par $1) to
be offered in exchange for the 455,807 outstanding shares
of capital stock of Pacific Mills not now owned by Bur¬
on

First Railroad &

Co.

of common
stock (par $25)1 being offered to common stockholders
of record Sept. 30, li>o4, on tne basis of five new shares

ir Burlington Mills

lington Mills

Telephone

Sept. 16 (letter of notification) 5,000 shares

Weeks, New York.

&

writer—Hornblower

Columbia

•

37

f* /

or

...

(1422)

38

—

Underwriter—None.

of America

•

(letter of notification) 100,000 shares of class
(par 10 cents). Price—$3 per share. Proceeds—

purchase equipment and machinery and for
capital. Office—615 Adams St., Hoboken, N. J.
writer—Garden State Securities, same city.
To

Cott

Beverage Co.

(10/26-27)

Aug. 27 filed 200,000 share? of common stock (par $1.50),
of which 120,000 shares are for the account of the com¬
pany and 80,000 shares for certain selling stockholders.

working
Under¬

Price—To

be supplied by amendment.
expansion.
Office—New Haven, Conn.
Ira Haupt & Co., New York.

Carolina Resources Corp.

Aug. 19 (letter of notification) 299,000 shares of common
Price—At par ($1 per share). Proceeds—To ac¬

Proceeds—For
Underwriter—

$10,000,000

determined

Halsey, Stuart & Co- Inc.; The First Boston
Corp.; Blyth & Co., Inc. and Lehman Brothers (jointly);
White, Weld & Co.; Merrill Lynch, Pierce, Fenner &

"

-

Forming Machine Co. of America, Inc.
Sept. 1 (letter of notification) 7,000 shares of common
stock (par $1) being offered for subscription by stock¬
holders

of

record

Sept. 24 for a 30-day period on a
(with an oversubscription privilege). Price
—$25 per share to stockholders; $30 to public. Proceeds
—For working capital. Office—18 Hamilton St., Bound
Brook, N. J. Underwriter—None.
l-for-5 basis

Four States Uranium Corp.,

(letter of notification)

Grand Junction, Colo.

Park, Inc., Dallas, Tex.
Sept. 21 (letter of notification) 295,000 shares of common
Stock. Price—At par ($1 per share). Proceeds—For per¬
petual care of cemeteries, etc.
Office — 304 Empire
State Bank Bldg., Dallas, .Tex.
Underwriter — Trafcswestern Investment Co., Inc., the same city.

Aug.

Sept. 27 (letter of notification) 550,000 shares of common
stock; Price—At par (10 cents per share). Proceeds—For
exploration and development expenses. Underwriter—
None. Frank L. Jones, an officer and promoter of Cen-

Co., Moline, III.
Oct. 5 filed 246,842 shares of

Sept. 24 (letter of notification) 15,000,000 shares of com¬
mon stock. Price—At par (one cent per share/ Proceeds

tarl City,

estate

Crestview Memorial

stock.

quire claims and mining equipment, erect and equip
processing plant, and for working capital. Office—Nantahala Bldg., Franklin, N. C. Underwriter — Allen E.
Beers Co., Western Savings Fund Bldg., Phila. 7, Pa.

;

if Central City Uranium Co., Central City, Colo.

*

Colo.,..will handle sales.

Central

Electric Co.,

Louisiana

Inc. (10/8)
Sept. 22 filed .$3,772,100 of convertible debentures due
1964 to be offered

,

holders of

record

debentures

for

rights to expire

for subscription

Oct.

on

common

held;
Price—To be supplied by

shares

Oct. 27.

of

common

Proceeds—To retire $2,800,000

amendment.

stock¬

4, 1954, on the basis of $100 of

27

each

by

stock

outstanding

4%% debentures due 1972 and for construction program.

Underwriter—Kidder, Peabody & Co., New York.

Uranium & Milling Corp., Denver, Colo.
600,000 shares of com¬
mon stock
(par one cent). Price — 50 cents per share.
Proceeds
For exploration and development expenses.
Office
Empire Bldg., Denver, Colo. Underwriters—
XiGearhart & Otis, Inc., and Jay W. Kaufmann & Co., both
of New York.
'*
(letter of notification)
—

—

Certain-teed Products

Corp., Ardmore, Pa.
*
Sept. 28 filed 412,950 shares of common stock (par $1)
,to be offered in exchange for 825,900 shares of capital
stock (par $7) of Wm. Cameron & Co., Waco,
Tex., at
rate of one-half share of Certain-teed, plus $11.50 per
share in cash for each share of Cameron stock.

^ Cessna Aircraft Co., Wichita, Kan.
Sept. 29 (letter of notification.) 1,800 shares of
stock (par $1).

Price—At market.

common

Proceeds—To Dwane

Cherokee Utah Uranium Corp,
June 24 (letter of notification) 6,00(f,000 shares of
capital
stock (par one cent). Price—Three cents per share. Pro¬

mining

Office—65 East 4th South,
Underwriter—Cromer Brokerage

expenses.

Salt Lake City, Utah.

Co., Salt Lake City, Utah.

638 S. State St., Salt Lake
City, Utah.
—Ned J. Bowman & Co., the same
city.
•

Underwriter

Clary Multiplier Corp.

(10/20)
Sept. 27 filed 250,000 shares of common stock (par
$1).
Price —To be supplied by amendment. Proceeds —To
retire bank loans, to develop new
electronic digital com¬
puter and other products and for working capital. Un¬
derwriter—Blyth & Co., Inc., San Francisco, Calif., and
New York, N. Y.

^

Colorado

Mining Corp., Denver, Colo.
(letter of notification) 300,000 shares of com¬
mon stock
(par 10 cents). Price—At the market (esti¬
mated at $1 per share).
Proceeds—To certain selling
Aug. 23

-

stockholders/Underwriter—L.
New York.




New

Stock

York
of

related

to

Exchange.

Katherine

Deere

stock

common

current

market

(par $10).
price on the

Proceeds—To executors of

Butterworth, deceased.

Un¬

derwriter—Harriman Ripley & Co., Inc., New York.

ic DeLuxe Check Printers, Inc.y St. Paul, Minn. 1
Sept. 28 (letter of notification) 3,000 shares of common
stock (par $10),,-to be offered for subscription by em¬
ployees under employees' stock purchase plan. Price—
$80 per share. Proceeds — For capital expenditures and
working capital. Office—530 North Wheeler St., St. Paul,
.

Minn.

(James)

Engineering Co;

"

D. Friedman & Co., Inc.,

com¬

Proceeds—For

exploratory and development expenses.
Office — 618
Avenue, Grand Junction, Colo.
Underwriter —
Joe Rosenthal, 1669 Broadway, Denver, Colo.
Rood

+ Frontier Mining CoM Denver, Colo.

—For

~

exploration and development costs. Office—1650
Colo. Underwriter—None.

Grant Street Bldg., Denver,

Gateway Uranium Corp., Salt Lake-City, Utah
;
1,192,000 shares of com¬
stock, (par-20 cents). Priee — 25 cents per share.
Proceeds—For exploration and development costs, etc.
Office—Hotel Newhouse, Salt Lake City, Utah. Under¬
writer—Muir, Dumke & Co., Salt Lake City, Utah, and
Las Vegas, Nev.

mon

Gatineau Uranium Mines Ltd.

( Canada )

Aug. 10 (Regulation "D") 300,000 shares of

Underwriter—None.

Dole

shares of

Price-—At par ($1 per share).

stock.

Sept. 10 (letter of notification)

•

stock.
par ($1 per; share).
Proceeds—For explora¬
development costs. Office -r-r. 100 Adelaide St.
commop

Price—At

*

Sept. 17 (letter of notification) .$216,619 of 5% convert¬

tion

and

ible income notes due Jan.

West, Toronto, Canada. Underwriter—McCoy & Willard,

holders.

Boston, Mass.

of

1,1961 to be offered tc stock¬
of notes is convertible into one share

Each $1

stock (par $1).
Price—At par. Proceeds—
working capital. Office—58 Sutter St., San Fran¬
cisco, Calif.
Underwriter—None.

General Gas

common

For

El Dorado Mining Co.
Aug. 23 (letter of notification) 17,500,000 shares of com¬
mon stock.
Price
At par (one cent per share). Pro¬
ceeds— For
exploration and
development expenses.
Office—223 Phillips Petroleum Building, Salt Lake City,
—

Utah.

Underwriter—Van

Blerkom

&

Co., samePcity.

-

Corp.

Sept. 22 filed 143,500 shares of common stock (par $5)
to be offered in exchange for common stock of Consol¬
idated Gas Co. of
of

a

Atlanta, Ga.,

on

the basis of 63/100ths

Gas for each Consolidated

of General

share

share.

The offer is subject to

deposit of at least 175,000 shares
of Consolidated stock out of 210,000 shares outstand¬
ing. Underwriter—None.
•

General

Gas

Corp., Baton Rouge, La.

(10/13)

MardriS.

filed l(M}Jk)6«ha]^^comiaaon stock vpar$5).
Rey Uranium Corp., Salt UM 'City,Utah^
Price
To be supplied by amendment Proceeds
To
Aug. 24 (letter of notification) 1,47S^9W riidretfbfTXjm-"
•selline stockholders.
Underwriter—Kidder, Peabody &
mon stock
(par five cents). Pric#/20 cents"per/di^re/
Co., New York.
Proceeds—For exploration and development expenses.
Office—510

Newhouse

Building, Salt Lake City, Utah.
Securities, Inc., Cromer
Brokerage Co. and Coombs & Co., all of Salt Lake City.

Underwriters

Eldorado

—

Mid-Continent

Uranium

Corp., Austin, Nev.

stock

(par

one

Price—10 cents

cent).

Proceeds—For exploration

and

Farmers

per

share.

development costs.

Un¬

Underwriters Association

Wilshire Boulevard 54, Los Angeles, Calif.
same

Underwriter

city.

Aug. 30 filed 6,000 shares of 7% cumulative preferred
stock (par $25), to be offered to employees; $900,000 of
5%% capital debentures and 24,000 shares of 6% cumu¬
lative class E preferred stock (par $25). Price—At par.
Proceeds—To reduce outstanding bank loans.
Under¬
writers—M. H. Bishop & Co., Minneapolis, Minn., and
B. I. Barnes, Boulder, Colo.
Financial Credit Corp., New York
Jan. 29 filed 250,000 shares of 7% cumulative

sinking

fund preferred stock. Price—At par ($2 per share). Pro¬
ceeds—For working capitaL Underwriter—E. J. Foun¬

Iric.„ New York.
r

,1

'

-

4

-

m-*.' ' e

filed

50,000

Price—$10

shares of
per

class

share.

A

common

stock

Proceeds—For general

Office—Washington, D. C.

Under¬

^General Tire &, Rubber Co.
- ^
Oct. 4 filed $3,000,809-participations in the company's
second employees'-:stock purchase plan, together with
80,536-shares of common stock (par $2.50) purchaseable thereunder.

Great Basins Petroleum Co., Denver, Coio.
Aug. 30 filed 500,000 shares of common stock (par $1).
Price—To
be
supplied by amendment.
Proceeds—To
repay

Fidelity Acceptance Corp., Minneapolis, Minn.

tain & Co.,

14

(par $1).

com¬

Sept. 17 (letter of notification) 3,000 shares of common
stock (par $1).
Price—$30.90 per share. Proceeds—To
John C. Tyler, Chairman of the Board.
Office — 4680

—Lester, Ryons & Co..

General Services Lite insurance Co.

Sept.

writer—None.

Sept. 15 (letter of notification) 2,500,000 shares of
mon

-—

corporate purposes.

derwriter—Allied Underwriters Co., Las Vegas, Nev.

Chief Ute Uranium, Inc.
Sept. 10 (letter of notification) 3,500,000 shares of com¬
mon stock (par one cent).
Price—Five cents per share.
Proceeds—For exploration and development costs. Of¬
fice

be

300,000

—

the selling stockholder. Underwriter—Har¬
ris, Upham & Co., New York.
J

«

Price—To

*

El

L. Wallace,

ceeds—For

• Deere &

I

.^Central
Sept.. 27

•

mon

16

bank loans and reduce other debt.

Underwriter-

First California Co., Inc., San Francisco, Calif.
-Great Chief

Uranium Co.,

Salt Lake City, Utah
20,000,000 shares of
par (one cent per share).
Proceeds
For exploration and development costs, etc;
Office
412 Walker Bank Bldg., Salt Lake City, Utah.
Underwriter—Havenor-Cayias, Inc., same city.
Sept.

20

common

(letter

stock.

of

notification)

Price —-At

—

—

Gulf States

Utilities

Co.

May 14 filed 160,000 shares of preferred stock (par $100).
Proceeds
To redeem 50,000 shares of $4.50 dividend
—

preferred stock, 60,000 shares of $4.40 dividend preferred
stock, 1949 series, and 50,000 shares of $4.44 dividend
preferred stock at the prevailing redemption prices of

Volume

ISO

Number 5366

...

The Commercial and Financial Chronicle
\

(1423)

$105, $105, and^lOS^S, respectively.
Underwriter—To
determined by competitive biddirig1. Probable bid¬

Keystone Fund of Canada, Ltd., Montreal* Canada'
Aug. 2 filed 1,250,000 shares of capital stock. Price—
To be supplied by amendment. Proceeds—For invest¬

be

ders:

Stone

&

Webster

Securities

Corp.;
Lehman
Brothers and Equitable Securities Corp. (jointly);
Kuhn,
Loeb & Co.; Glore, Forgan & Co. and W. C.
Langley &
Co. (jointly). Bids—Had tentatively been expected to be
received

to

up

11:30

(EDT)

a.m.

June

on

15

ment.

July

May

14

filed

Utilities Co.

$24,000,000 of first mortgage bonds due
Proceeds—To redeem $10,000,000 of 3%%

1984.

first mortgage

Lake Lauzon Mines, Ltd., Toronto, Can.
Aug. 2 filed 660,000 shares of common stock (par $1,
Canadian), of which 500,000 shares are to be Offered in

bonds due 1981

mortgage bonds due

behalf

Kuhn,
Co. and A. C. Allyn &
Co., Inc. (jointly); Lee
Higginson Corp. and Carl M. Loeb, Rhoades & Co.
(jointly); Stone & Webster Securities Corp. Bids—Had
tentatively been expected to be received up to 11 a.m.
New

on

June 15 at The Hanover Bank, 70
Broadway,

York, N. Y., but offering has been postponed.

Gulf Sulphur

cumulative

con¬

vertible preferred and participating stock
(par 10 cents),
of which 57,310 shares are to be offered
publicly at $10
per share and 35,000 shares to be sold to V. V,

partner of Tehuantepec Co.,
at $8.50 per share. Proceeds
a

on

Jacomini,
investment basis,

an

Dumke &

,

R. I.

For

For operating expenses
exploration development.; Underwriters 1— For the
57,310 shares, Fridley & Hess and Crockett & Co., both
of Houston, Tex.
—

and

&

Co.

The

and

Cleveland Corp., both of Cleveland, O.

(par

one

cent).

Price—Three

cents

per

mon

Sept. *14 £jled 50,000 shares of
to be offered for
one

share

new

supplied

by

program.

stock

common

(par $20)-

subscription by stockholders at rate of

for

each

13

amendment.

shares

held.

Proceeds

Price—To

For

—

be

^

(11/8)
Sept. 29 filed 381,018 Shares of common stock (no par)
to be offered for subscription by common stockholders

share.

of

construction

Underwriter—None.

150,000

shares

to

are

be

h'older:
'—For

(par

offered

10
for

and 100,000 shares for selling stockPrice—To be supplied by amendment. Proceeds
general corporate purposes.
Underwriter—Hay-

den, Stone & Co., New York.

it Helio Aircraft Corp., Canton, Mass.
(letter of notification) 10,000 shares of com¬
stock and 10,000 shares of
preferred stock (par $1

Sept. 28
mon

bach) to be offered in units of one share of each class of
ktock. Price—$25 per unit. Proceeds—To
design, develop
and

manufacture

light

Airport, Canton, Mass.

aircraft.

Office—Metropolitan

Telegraph Co.
Sept. 10 (letter of notification) 36,000 shares of common
(no par), to be offered for subscription
by stock¬

stock

(of which 27,358

shares

will

be

purchased

Telephone Bond & Share Co., the parent).
*per share. Proceeds—For construction costs

by

Price—$20
and

work¬

ing capital. Office—303 E. Berry
St.,' Fort Wayne, Ind.
Underwriter—None.
Homestead Uranium
Corp., Salt Lake City, Utah
Aug. 23 (letter of notification) 3,000,000 shares of capital
"■stock (par one
cent). Price—10 cents per share. Proiceeds

—

For

exploration

and

development expenses.
Office—f5 East Fourth South
St., Salt Lake City, Utah.
Underwriter—Cromer Brokerage Co., of the same
city.
Husky Oil Co., Ccdy, Wyo.
'Sept. 29 filed 14,899 shares of 6% cumulative _..st
ferred

pre¬

stock

:amendment.
-of prior
-of

-

(par $100).
Price
To be supplied by
Proceeds—To purchase outstanding shares
—

preferred stock of Gate City Steel

Works, Inc.

Omaha, and for drilling expenses, etc. Underwriter—
First Trust Co. of
Lincoln, Neb.
Incorporated Income Fund (10/14)
'

Sept. 15 filed 750,000 shares

Price—Expected
For

investment.

of common stock (par
$1).
to be around $8 per share. Proceeds—

Office—Boston, Mass.

Underwriter—

Kidder, Peabody & Co., New York.
International

Bankers

Life

Insurance

Co.

-Sept. 29 (letter of notification) 12,500 shares of common
stock to be offered for subscription
by stockholders of
record Sept. 20, 1954 at rate of
one new share for each
share held. Price—At
par ($10 per share).
Proceeds—
.

For addition
ate

to capital and

securities.

"Worth, Texas.
,!

to

be invested

Office—Continental
Underwriter—None.'

in

appropri¬

Building, Fort

-capital.

Office—3603 Broadway, San
Antonio, Tex> Un¬
Securities, Inc., San Antonio, Tex.
^ Israel American Oil Corp.,
Oct.

5

f—
-

For

750,000 shares of common stock (par 10
Price—To be supplied
by amendment. Prtfseeds
exploration and development

writer—Bear,

t#

Jerusalem, Israel*'

filed

program.

Stearns

&

Co.,

New * York/

;U*der-

~

Israel-Mediterranean Petroleum, Inc. (10/14)
21
filed American
voting trust certificate# for

Sept.

900,000 shares of

common

^of which 750,000 shares

capital stock

are

(par

one

cent),
to be offered to
public, The

.remaining 150,000 shares to be under
option to underwriters.
Price—Last sale on American Stock
Exchange
.day preceding the offering. Purpose—For
exploratory
drilling and development of presently held
acreage in
Israel. Underwriter—Gearhart
& Otis, Inc., New
Y&rk.




Loma

.

Telephone Co., Lorain, Ohio
Sept. 7 (letter of notification) 2,500 shares of common
stock (no par) to be first offered for
subscription by
stockholders.
Price—$20 per share. Proceeds—To* re¬

Brothers

A.

and

C.

Allyn

&

Co.

(jointly); Blyth & Co., Inc.; W. C.

Expected Oct. 20.
Mac Fos Uranium, Inc., Salt Lake
City, Utah
Sept. 16 (letter of notification) 4,000,000 shares of com¬
mon stock
(par one cent). Price—Three cents per share.
Proceeds—For exploration and development costs. Office
—239 Ness Bldg., Salt Lake
City, Utah.
Underwriter—

Office—65 East 4th
South, Salt Lake City, Utah. Under¬
writer—Mid-Coninent Securities, Inc., the same city.

it Mercast Corp., N. Y.
4
Sept. 30 (letter of notification) 5,000 shares of common
(par 10 cents). Price—$4.75 net to sellers. Pro¬
ceeds—To Atlas Corp.
Office—295 Madison Ave., New
York 17, N. Y.
Underwriter—Franklin, Mayer & Barnett, New York City.
>„
stock

Merritt-Chapman & Scott Corp.

^

Sept. 7 filed 448,868 shares of common stock (par $12.50)
being offered in exchange for stock of the Marion
Power Shovel Co. and

Osgood Co.

Marion

on

Power

the basis of three

shares, and
two shares for each three shares of
Osgood Co.'s class A
and class B stock not held
by Marion Power Shovel Co.
The offer will expire on Oct. 26.

common

Underwriter—None.

Middle South Utilities, Inc.
Sept. 1 filed 475,000 shares of common stock (par $10)
being offered for subscription by common stockholders
the basis of

15 shares
held
(with
rights to expire Oct. 8.

one

new

share for each

oversubscription privilege);
Price—$28 per share. Proceeds

an

—To retire

$12,000,000 of bank loans and for investment
in the System companies and for other
corporate pur¬

poses.

Underwriter—None.

.

one

business

close

Oct.

&

share

new

subsidiaries.

to

Under-

outstanding shares of $6 cumulative preferred stock
par)
on
a
share-for-share
basis
(with a cash
adjustment). Underwriter—To be determined by com¬

Co.

(£0/11-12)

14.

Price—$15

program

share

new

of

on

per

its

for

each

10

shares held

Sept. 29; rights to expire
share. Proceeds—To con¬

subsidiaries.

Underwriter—

&

Co., Inc., Lehman Brothers and Bear, Stearns
(jointly).

Co.

.

New Silver Belle

Mining Co., Inc., Almira, Wash.
Sept.' 8 (letter of notification) 500,000 shares of comfribri
stock (par two cents).^ Price—10 cents per share.
Pro¬
ceeds—For

exploration and development costs.. Under¬

writers—Percy Dale Lanphere and R. E. Nelson & "Co.,
both

of

Spokane, Wash.

New York

Telephone Co. (10/19)
Sept. 29 filed $75,000,000 of 35-year refunding mortgage
bonds, series H, dud Oct. 15, 1989. Proceeds—To refund
$35,000,000 of 37/b % series G bonds and repay bank loans.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Kuhn,
& Co.; Morgan Stanley & Co.; Merrill Lynch,
Fenner & Beane and

Loeb
Pierce,
Glore, Forgan & Co. (jointly). Bids

—Expected to be received

on

Oct. 19.

Plywood, Inc.

Sept. 13 filed 300 shares of common stock (par $5,000)
5,000 shares of 5% cumulative participating pre¬

and

ferred stock (par $100).
Price—At par. Proceeds—To
purchase properties of Paragon Plywood Corp. and pur¬
chase

of

raw

materials.

Office

—

Crescent

City, Calif.

Underwriter—None. Sales to be made through Raymond
Benjamin Robbins.
"
Northern Oil & Gas Corp., Bismarck, N. D.
Sept. 16 (letter of notification) 250,000 shares of 6%
preferred stock (par $1) and 50,000 shares of common
stock- (par $1) to be offered in units of five shares of
preferred and one share of common stock. Price—$6 per
unit.

Proceeds—For oil

408V2

main

western

and

St.,- Bismarck,

N.

gas

exploration.

D.

Office—
Underwriter—Trans-

Investment Co., Inc., Dallas, Tex.

Northwest

Defense

Minerals.

Inc.

'

>

Aug. 12 (letter of notification") 300,000 shares of common
stock, of which 270,000 shares are to be offered to public
and 30,000 shares to underwriter.
Price—$1 per share.
Proceeds—For

mining operations. Office—2101 S St.,
W., Washington, D. C. Underwriter—Mitchell Securi¬
ties, Inc., Baltimore,-Md.
N.

.

01 Jato Uranium Co.,

Salt Lake City, Utah
'
Aug. 5 (letter of notification) 1,750,000 shares of common
stock (par one cent).
Price—15 cents per share. Pro¬
ceeds—For mining operations.
Office—114 Atlas Bldg.,
Salt Lake City, Utah.
Underwriter — Rocky Mountain

Securities, the.
O'Suilivan

*

Sept. 3 filed 44,476 shares of cumulative preferred stock
(par $100) to be offered in exchange for a like number
(no

Gas

of

•
„

Mississippi Power & Light Co/ (10/13)

of

Southern

Northern California

>
Magic Metals Uranium Corp.
Sept. 14 (letter of notification) 2,995,000 shares of com¬
mon stock
(par one cent). Price — 10 cents per share.
Proceeds—For exploration and development expenses.

on

advances

of

Utah Securities Co., same city.

Sept. 22

and

the basis

Blyth

Inc.

Langley & Co., The First Boston Corp. and Glore Forgan
& Co.
(jointly); Harriman Ripley & Co. Inc. Bids—

of record

in

the

■

& Co.

Nevada

on

(jointly); Salomon Bros. & Hutzler; Kuhn, Loeb

shares for each two

one

it National Plumbing Stores Corp.
Sept. 29 (letter of notification) $250,000 of 20-year 3Y2%
income notes due Oct.
1, 1971. Price—At par (in de*
nominations Of $500 and $1,000). Proceeds—For expan¬
sion and Working capital.
Office—35-17 31st St., Long
Island City, N. Y. Underwriter—None.

struction

(jointly); Merrill Lynch, Pierce, Fenner & Beane and
Kidder, Peabody & Co. (jointly); Union Securities Corp.

•

of

writer—None.

at

(10/20)
$18,000,000 of first mortgage bonds due
1984.
Proceeds—To redeem $12,000,000 4% bonds due
1983, and for new construction. Underwriter—To be de¬
termined by competitive bidding. Probable bidders: Hal¬
sey, Stuart & Co. Inc.; White, Weld & Co. and Shields

and Wertheim

basis

an oversubscription pri¬
rights t6 expire about Nov. 29. Proceeds—For

on

14 filed

Co., Lehman

the

.

Louisiana Power & Light Co.

Co.

on

^

treasury for expenditures already made for
to property.
Office—203 West Ninth Street,
Underwriter—None.
/ •

&

8

New England Electric System
Aug. 20 filed 910,883 shares of common stock (par'$lfc
being offered for subscription to common stockholders

Lorain, Ohio.

&

Nov.

shades held (with

Aug. 30 filed 20,000 shares of 6% 'first preferred stock
(par $20) and 100,000 shares of common stock (par $1).
Price—Of preferred, $20 per share; and of common, $6
per share. Proceeds—To repay obligations of thb com¬
pany incurred in connectionwith the acquisition .of the
business and assets of Las Vegas Ghs Co.r Underwriter
—First California Co., Inc.; San Francisco, Calif.

Lorain

Sept.

about
10

vilege);
investments

•

18 filed

imburse

each

.

Uranium

Corp., Denver, Colo.
1,000,000 shares of common stock (par 10
cents). Price—$1.25 per share. Proceeds—For explora¬
tion and development costs, purchase of
equipment, and
reserve for acquisition of additional,
properties. Under¬
writer—Peter Morgan & Co., New York. Offering—Ex*
pected later in September.
^•

June

"

Investment Corp. of America
Aug. 30 (letter of notification) 3,799 shares of
cumula¬
tive preferred stock (no
par) and 3,799 shares of com¬
mon stock (no
par). Price—For preferred, $20 per share,
and for
common, $2 per share. Proceeds—For
working

cents).

working
Underwriter—

.

Life

derwriter— Interior
.

—

additions

Underwriter—None.

Home Telephone &

holders

new

None.

account of company
-

one

share for each 19 shares
held; rights to expire on Nov. 2,
1954.
Price
$26 per share.
Proceeds — For

capital. Office—1342 M St., Lincoln, Neb.

it Hazel Bishop, Inc., New York (10/20)
Sept. 30 filed 250,000 shares of common stock
tents), of which

the basis of

record

for

Lincoln Telephone & Telegraph Go.
f 14 /
Sept. 22 (letter of notification") 9,623 shares of common
stock
(par $16%) to be offered for subscription by
on

Industries, Inc., Natick, Mass.

10

stock (par

.

mining operations.- Office—402 DarlingBldg., Salt Lake City, Utah; »• Underwriter — Uranium
Mart, Inc., 146 S. Main St., Salt Lake City, Utah.-

1

Idaho

National Fuel Gas Co.

Proceeds—For

stockholders of record Sept.

St.,

forking capital, etc.

'

Hawaiian Electric Co., Ltd., Honolulu

}

Miner

Underwriter—Underwriters, Inc., Sparks,
*
\

(letter of notification) 58,800 shares of com¬
$1). Price—$5 per share. Proceeds—For
Underwriter—J. P. Marto & Co.,
Boston, Mass.

First

Liberty Uranium Corp., Salt Lake City, Utah
July 1 (letter of notification) 3,000,000 shares of common
stock

Office—1117

expenses.

V

Natick

March

"/'

■

.

mining

Nevada.

public, $6 per share; and .to, stock¬
share. Proceeds—To be used as part
Stiver

Underwriter—Barrett & Co., same city.

Springs, Colo.

Price—To

Underwriters—Saunders,

common

par ($7.50 per share).
Proceeds—For
Office—45 Washington St., Pawtucket,

Mountain States Uranium, Inc.
May 19 (letter of notification) 30,000,000 shares of com¬
mon stock.
Price—At par (1 cent per share). Proceeds—

•

per

Price—At

working capital.

Lester Engineering Co., Cleveland (10/13)
Sept. 22 filed 100,000 shares of common stock (par $1),
of which 85,000 shares are to be offered to
public and
15,000 shares to stockholders and •»members .of their
families.

Inc., Pawtucket, R. I.
Sept. 24 (letter of notification) 40,000 shares of
stock.

company

—

?

Co., Salt Lake City, Utah.

it Moore Fabrics,

payment for certain assets of The Phoenix Machine Co.

Corp., North Kansas City, Mo.

Sept. 15 filed 92,310 shares of 60-cent

the

of

holders, $5.25

'

stock (par 10 cents).
Price—20 cents per share.
Proceeds—For mining operations.
Underwriter—Muir,

Underwriter—To be named by amendment.

&

(EDT)

Monterey Uranium Corp., Salt Lake City, Utah
Aug. 13 (letter of notification) 1,500,000 shares of com¬
mon

and 160,000 shares for account
of Percy E. Rivett. Price—40 cents per
share, U. S. funds.
Proceeds
For development and exploration expenses.

Co. Inc.; Lehman Brothers; Merrill
Lynch, Pierce, Fenner &
Beane and White, Weld & Co.
(jointly); Salo¬
mon Bros. & Hutzler and Union
Securities Corp.;
Loeb

Securities

Union

Langley & Co. and The First Boston Corp. BidsExpected to be received up to 11 a.m. (EST) on Oct 13,
at 2 Retcor St., New
York, N. Y.

(regulation

„

and $10,000,000 of 3%%
1983, and for general corpo¬
rate purposes.
Underwriter—To be determined by com¬
petitive bidding.
Probable bidders: Halsey, Stuart &
first

30

"D") 600,000 shares of common
stock (par five cents).
Price—50 cents per share. Pro¬
ceeds—For exploration, etc.
Office—3455 Stanley St.,
Montreal, Canada. Underwriter — Daggett Securities,
Inc., Newark, N. J.
/

Bank, 70 Broadway, New York, N. Y., but of¬
fering has been postponed.

June 1,

bidders:

W. C.

Ladoric Mines Ltd., Montreal, Canada

Hanover

Gulf States

Probable

.

Corp. and Equitable Securities Corp. (jointly); Lehman
Brothers; Blyth & Co., Inc. and Shields & Co. (jointly);
White, Weld & Co. and Kidder, Peabody & Co. (jointly);

Underwriter—The Keystone Co. of Boston,
Boston,

Mass.

The

at

petitive—bidding,

39

same

city.

Rubber

Corp.

Aug. 23

(letter Of notification) 15,000 shares of common
stock (par $1). Price—At market. Proceeds—To a sell¬
ing stockholders. Underwriters — Troster, Singer & Co.,
New York, N. Y., and C. F. Cassell & Co., Charlottes¬
ville, Va. Offering withdrawn.

Continued

on

ppage

40

.

'

r«*HWW*a«u MWMItft

WW 11

The Commercial and Financial Chronicle..
40

(1424)

Continued

from,

Bids—Tentatively expected to be received up

Oct.

filed

1

Price—To

be

60,000 shares of common stock (par $10).
supplied by amendment. Proceeds—From

basis of one
shares of preferred stock held and one new share for
each 10 common shares held (with an oversubscription

privilege); rights to expire on Oct. 22. Price—$32 per
share.
Proceeds—To repay bank loans and for new
construction.
Underwriters — Stone & Webster Se¬

£ Pan-American Uranium, Inc.
Sept. 20 (letter of notification) 600,000

Inc.

Co.,

(10/14)

150,000 shares

are

Price—Last sale

writers.

on

to be optioned to under¬
American Stock Exchange

Proceeds—For exploratory
development of presently held acreage in

day preceding the offering.

drilling and

Underwriter—Gearhart &

Israel.
•

Peerless

Co. (10/7)
American Telephone & Tele¬
graph Co. plans to sell the 1,173,696 rights which it will
Southern New England Telephone

the basis of

on

of

one

about

new

Oct.

share for each two shares held,

Fibre Co.

(10/15)

Oct. 7
Room

;

building, and for modernization and
Underwriter—None.

York

(par 10 cents).

Price—$3

ment.

and P. W. Brooks &

Star Uranium

—

Southwestern Securities

Co., Dallas, Tex.

'

"

•

Utah.

Stardust, Inc., Reno, Nev.
July 9 filed 621,882 shares of preferred stock (par $10)
and 621,882 shares of common stock (par one cent) to be
offered in units of one share of each class of stock. Price

—$10.01

per

unit. Proceeds—For purchase of land and to
Underwriter—None.

construct and equip a luxury hotel.
•

•"

State Loan & Finance Corp.

(10/12)

Sept.

10 filed $8,000,000 of 5% convertible capital de¬
Sept. 15, 1969. Price—At 100% of principal
amount.
Proceeds—To reduce outstanding bank loans.

cents).

Underwriter—Johnston, Lemon & Co., Washington, D. C.

Sept.

Samicol Uranium

bentures due

Corp., Santa Fe, N. M.
14 filed 300,000 shares of common stock (par 10
Price—$2 per share.
Proceeds—For develop¬
ment and exploration expenses, etc.
Underwriters
R.
Klein

Co.

and

New York.

McGrath

Securities

Corp.,

both

of

_

,

2,

Stylon Corp., Milford, Mass.
Sept. 27 filed 650,000 shares of common stock (par $1)
to be offered to the holders of the $1,300,000 City of

& San Juan Racing Association (Puerto Rico)
1 (letter of notification) 100,00 shares of common

Florence,

stock

for each

Oct.

(par 50 cents).

build

and

Puerto

operate

Rico.

Price—$3

per

share.

Proceeds—To

horse-racing
establishment
Office—Flamingo Bldg., Santurce, P
a

Sept.

16

(10/13)

filed

$5,000,000 of first mortgage bonds due
1934 and $3,000,000 of debentures due Oct.
1, 1979. Pro¬
ceeds—To redeem $5,000,000 of bonds and
$3,000,000 of
debentures presently outstanding.
Underwriter
To be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Union Securities Corp. and
Blyth & Co., Inc. (jointly); The First Boston Corp.;
Blair & Co. Incorporated.
.

be received

up

to 11

a.m.

Bids—Tentatively expected to
(EST) on Oct. 13.

Savanr.a'i Electric & Power Co.

(£0/13)

Sept. 16 filed 36,000 shares of preferred stock, series A
Proceeds—To redeem a like number of pre¬

/(par $100).
ferred
be

shares

determined

presently

by

outstanding. : Underwriter—To
competitive bidding. Probable bid¬




Fla.

Tampa Marino Co., Tampa,

of
to

purchase for distribution not less than 165,000 shares
and to use its best efforts to sell the balance. Price—$3

Proceeds

share.

per

—

For construction of stevedoring

facilities, purchase of additional barges
capital. Underwriter—Gulf Atlantic, Inc.,

and working
Tampa, Fla.

if Templeton Growth Fund of Canada, Ltd. (10/20)
Oct. 1 filed 500,000 shares of common stock (par $1).
$21.50 per share. Proceeds — For investment.
Office—Toronto, Canada. Underwriters-White, Weld &

Price

—

Co., New York.
International Sulphur Co.

Texas

June

(par 10

455,000 shares of common stock

filed

21

cents), of which 385,000 shares are to be offered for
subscription by common stockholders at the rate of one
new share for each 4%
shares held; and 70,000 shares
are for account of certain sellingstockholders. Price—To

by amendment/ - Proceeds—For exploration
payment of bank loans: and advances.
Underwriter—Vickers Brothers, New York, on a "best ef¬
be supplied

and drilling, and

^

Offering—Expected early in Oetober.

forts" basis.

$20,000,000 of ftrvfcvrwrtgage bends due

bonds

Proceeds—To redeem*3$k% first mortgage

1984.

.

Light Cae*£l*/1T

1983, and for new construetiaiis%r JJaderwriier^To
be determined by competitive bidding. Probable bidders::

due

& Co. Inc.; Union Securities.-Corp. .and
& Hutzler (jointly); Blyth & Co., Inc.,

Halsey, Stuart
Bros.

Salomon

Kidder, Peabody & Co. and

Merrill Lynch, Pierce, Fen-

(jointly); White, Weld & Co.; Kuhn,

& Beane

Loeb

Co.; Equitable Securities Corp.
Bids — Expected to
11:30 a.m. (EST) on Oct. 18 at Room

be received up to

Rector St., New York 6, N. Y.

Two

Thompson-Starrett Co. Inc. (10/25-26)
July 29 filed 145,000 shares of cumulative convertible
preferred stock (par $10). Price — To be supplied by
amendment. Proceeds—To repay $1,000,000 bank loans
•

for

and

general

corporate

Underwriters—
both of

purposes.

Inc. and Emanuel, Deetjen & Co.,

Blair & Co.,
New York.

...

>

■

■

««

Nev.
Aug. 3 (letter of notification) 1,800,000 shares of com¬
mon stock
(par 10 cents). Price — 15 cents per share.
Proceeds—For mining activities. Office—206 N. Virginia
St., Reno, Neb. Underwriter—Stock, Inc., Salt Lake City.
Thunderbird Uranium Co., Reno,

8 filed 810,740 shares of new $2.70 cumulative
preferred stock (par $50) being offered in exchange for
the presently outstanding $6 preferred stock (no par
value) on the basis of two new shares for each $6 pre¬
ferred share held.
Offer will expire on Oct. 27. Un¬

exchanged $6 preferred stock will be called for redemp¬
tion on Oct. 31. 1954.
Underwriter — Union Securities
Corp., New York.

Sept.

,

j
(letter of notification) 36,600,000 shares of
Uranium, Inc., Ca»perf4(ly«.; V

Triassic

20

share>. Pro¬
costs. Office—•
300 Consolidated Royalty Bldg., Casper, Wyo.
Under¬
writer—Glen E. Hendershot, 2520 Deming Blvd., Che¬
stock. Price—At par (one cent per

common

mortgage

industrial

develop¬

$1,000 bond up to and including Aug. 31, 1958;
per $1,000 bond thereafter and up to and

shares

after

to Oct.

15,

1977.

management of the
the

It is the present intention of the

company

tendered

for

thereon.

to hold any bonds so

Underwriter—None.

purposes

of receiving tax-free income

Merchandisers

of

America,

Inc.

July 15 (letter of notification) 199,700 shares of common
stock (par 10 cents). Price—$1.50 per share. Proceeds—
For

working capital and business expansion. Office—
"B" St., Philadelphia. Pa.
Underwriter—Milton D.
Blauner & Co., Inc., New York.

3219

Syracuse Supply Co.
;
Sept. 22 (lette?. of notification) 26,000 shares of common
,

.ffjSfc,.P^ice—$9.25,"

stock',
expansion

-

and

Ucolo Uranium Co., Salt

Lake City, Utah

,

-

i

Sept. 13 (letter of notification) 2,800,000 shares of com¬
mon stock
(par one cent). Price — 10 cents per share.
Proceeds—For exploration and-development costs.
Of¬
fice—906 Walker Bank Bldg., SaltJLake City, Utah. Un¬
derwriter—Western Securities Corp., the same city.

per
modernization of

United States Lithium Corp.

(letter of notification) 2^990,000 shares of com¬
Price—At par (10 cents per share).
Pro¬

Sept. 9
mon

stock.

incident to extraction operations.
Bank Building, Salt Lake City,
Utah. Underwriter—Thornton D. Morris & Co., the same
ceeds—For

expense

Office—1111

share.- Proceeds—For
company^ sales and

Walker

city.
Uranium

Superior Uranium Co., Las Vegas, Nev.
Sept. 1 (letter of notification) 29,910,000 shares of com¬
mon stock.
Price—At par (one cent per share). Proceeds
—For development and exploration costs. Office—Medi¬
cal Arts Bldg., Las Vegas, Nev.
Underwriter—Uranium
Brokers, Inc., the same city.
Supermarket

Wyo.

yenne,

the basis of 500 shares of stock

including Aug. 31, 1963; 250 shares thereafter and up
to and including Aug. 31, 1968; and 200 shares there¬

Co., Salt Lake City, Utah.

Savannah Electric & Power Co.

first

R

Co., Salt Lake City, Utah
Aug. 5 (letter of notification) 1,500,000 shares of com¬
mon stock
(par five cents).
Price—20 cents per share.
Proceeds—For exploration and development of
proper¬
Underwriter—Coombs &

5%

333

Santa Fe Uranium

ties.

Ala.,

ment revenue bonds on

in

Underwriter—Hunter Securities Corp., New York.

317

ceeds—For exploration and -development

•

V.

—

Colo. Underwriter

Sept.

-

Underwriter—Ned J. Bowman Co., Salt Lake City,

Sept. 2 filed 1,400,000 shares of common stock (par 10
cents).. Price— $1.25 per share. Proceeds—To pay for
options, exploration and development and to be used
for other
general corporate purposes.
Underwriter-

Office

expenses.

Tri-Continenta! Corp.

Co., Inc., both of New York.

Corp., Salt Lake City, Utah

(letter of notification) 6,000,000 shares of com¬
mon stock
(par one cent). Price—Five cents per share.
Proceeds
For exploration and development costs.

per

Sabre Uranium Corp., Dallas, Texas

'

Underwriters—Lee Higginson Corp.

Aug. 2

share. Pro¬
ceeds—To repay bank loan
and for working capital.
Office—West Leesport, Pa. Business—Engaged in man¬
ufacture, scientific compounding and processing of live¬
stock feeds, for dairy cattle, poultry and swine. Under¬
writer—First Chelsea Corp., New York.

f

140,000 shares of 5Y2% cumulative pre¬
convertible into common stock
Price—To be supplied by amend¬
Proceeds—To reduce RFC loans and for general

corporate purposes.

(H. F.)

stock

Saw Mill River Road,

through Oct. 31, 1964.

Sons, Inc.
Sept. 22 (letter of notification) 99.900 shares of class A
common

391

—

ferred stock (par $12.50),

N. Y. Underwriter—Jerome Rosenberg,
Planning 630 McLean Ave., Yonkers, N. Y.

development

and

Sept. 28 filed 300,000 shares of class A stock (par $1),
Gulf-Atlantic, Inc., Tampa, Fla., has agreed

2033,

30 filed

Sept.

36,

Rieser's

•

At

Underwriter—Israel & Co., New York.
^ Standard-Thomson Corp., Dayton, Ohio (10/20)

Rapid Film Technique, Inc., N. Y. City
July 30 (letter of notification) 60,000 shares of com¬
mon stock
(par 10 cents). Price—$2. per share. Pro¬
ceeds—For working capital. Office—21 West 46th Street,
New

—

Yonkers, N. Y.

I

?

Future Estate

Office

working capital.

ceeds—To purchase

improvements.

Price

^ Square Root Industries, Inc.
Sept. 30 (letter of notification) 1,000,000 shares of com¬
mon
stock (par 10 cents) to be first offered to stock¬
holders.
Price — 30 cents per share. Proceeds — For

1, 1964, to be offered to stockholder members of

Quaker City Wholesale Grocery Co., a 100% cooperative
retail grocer owned organization.
Price—At par. Pro¬

Colo.
1,700,000 shares of com¬
share. Proceeds—For

per

Railway Exchange Building, Denver,
Shelley Co., Denver, Colo.

&

investment.

Proceeds—For

market.

Quaker Warehouse Co., Inc., Philadelphia, Pa.
Sept. 10 filed $900,000 of 10-year 6% debentures due
Sept.

exploration

cents

—E. I.

ner

^ Spencer Grean Fund, Inc., New York
Oct. 4 filed 150,000 shares of capital stock.

share. Proceeds—For investment. Office—136 East
57th Street, New York, N. Y. Underwriter—None.
per

Price—10

stock.

Sept. 22 filed

Texas.

San Antonio,

Corp., Salt

Securities

Western

Tacony Uranium Corp., Denver,
mon

Texas Power &

shares of common
stock (par 10 cents) being offered first for subscription
by stockholders of Texas Industries, Inc. (with a 14-day
standby). Price—$1 per share. Proceeds—To purchase
equipment and for working capital.
Underwriters —
Rauscher, Pierce & Co., Dallas, Texas; and Russ & Co.,

Price—$11

—

Aug. 17 (letter of notification)

Y.

Dallas, Texas

Financial Corp.,

Southwestern

•

Winslow, Inc.

Peoples Securities Corp., New York
Aug. 11 filed 74,280 shares of capital stock.

2315, 195 Broadway, New York, N.

Co.

Aug. 30 (letter of notification) 285,000

—

and Chace, Whiteside, West &

be

Putnam & Co., Chas W.
(jointly); White, Weld
Bids—To be received up to 11 a.m. (EST) on
at office of American Telephone & Telegraph Co.,

&

Price—To

1974.

additional

Scranton & Co. and Cooley & Co.

bonds due
be supplied b,y amendment/
Proceeds
To redeem $1,124,000 of outstanding 5%
bonds at 103%%.and 2,942 shares of 7% preferred stock
at $103 per share.
Underwriters—Coffin & Burr, Inc.
1,

of 488,888

$30 per share on a l-for-9
determined by competitive

bidders:

Probable

bidding.

Sept. 27 filed $1,400,000 first mortgage 4Vs%
Oct.

abovementioned offer¬

England

New

Underwriter—To

basis."

13;
by

Penobscot Chemical

9

the

shares of its common stock at

rights to expire Oct. 23.
*J?rice—To be supplied
amendment.
Proceeds—To
increase capital and surplus.
Underwriter — Kidder,
Peabody & Co., New York.
- w
recoid

Southern

by

ing

with

connection

in

receive

Co., Keartte, N. H. (10/13)
Sept. 24 filed 170,000 shares of common stock (par $5)
to be offered for subscription by common stockholders
Casualty

Underwriter

Dallas,

America Building,

Life of

Office —1406

Lake City, Utah.

Sept. 17 it was announced

Otis, Inc., New York.

stock

which

Telephone Co.
Sept. 17 filed 488,888 shares of capital stock (par $25)
being offered for subscription by stockholders of record
Sept. 29 on the basis of one new share for each nine
shares then held; rights to expire on Oct. 29.
Price—
$30 per share.
Proceeds — To repay advances from
American Telephone & Telegraph Co., which owns 1,173,696 shares (or 26.67%) of the 4,400,000 shares pres¬
ently outstanding. Underwriter—None.
/

Sept. 21 filed American voting trust certificates for
900,000 shares of common capital stock (par one cent),
■of which 750,000 shares are to be publicly offered. -The
remaining

Co.,

Witter &

Southern New England

•

Co., Salt Lake City, Utah.
Oil

Dean

and

Calif.

Francisco,

San

York;

Corp., New

curities

shares of com¬
mon stock
(par one cent). Price — 50 cents per share.
Proceeds—For exploration and development costs. Of¬
fice—100 West 10th St., Wilmington, Del.
Underwriter
&

(par $15)

stockholders
share for each five

by common

of record Oct. 5 on the

Moseley & Co., Boston, Mass.

Pan-Israel

for subscription

offered

be

to

and from private placements of notes and
debentures, to be used to retire $1,050,000 of debentures
now outstanding, to acquire capital stock of Reed-Pren¬
tice Corp., and for working capital.
Underwriter—F. S.

•

shares of common stock

Sept. 10 filed 34,807

N. Y.

Inc., Dallas, Texas •

Proceeds—For

Texas.

Power

Pacific

0

capital.- Office 314 •
Underwriter—George

(letter of notification) 2,975,000 shares of com¬
(par five cents). Price—10 cents per share.
exploration and development of proper¬

Sept. 9
mon

ties.

ney-Phoenix Co., Inc., New York,

sale of stock,

—Hale

Underwriter—Whit¬

capital, etc*

Proceeds—For working

(10/21)

Massachusetts

(letter of notification) 240,000 shares of class
stock (par $1).
Price—$1.25 per share.

27

for working

and

St., Syracuse, N. Y.
Bonbright & Co., Rochester,

Fayette
B.

Sytro Uranium Mining Co.,

convertible

A

East Longmeadow,

Machinery Co.,

W.

Selevision Western, Inc.

Aug.

facilities

service

D.

(EST) on Oct. 13.

^ Pacific Clay Products, Los Angeles, Calif.
Oct. 6 filed 43,625 shares of capital stock (par $8). Price
—To be supplied by amendment.
Proceeds—To Reese
L-. Milner, the selling stockholder.
Underwriter—Kid¬
der, Peabody & Co., New York.
if Package

Blair & Co. Incorporated.
to 11 a.m.

The First Boston Corp.;

ders:

39

page

/■'I''-

1954

.Thursday, October 7,

Sept.

21

common

Chief, Inc., Salt Lake City, Utah

(letter
stock.

Proceeds—For
Office

—

323

of

notification)

Price—At

par

26,400,000

(one

cent

shares of

per

share).

exploration and development expenses.
East 2nd South, Salt Lake City, Utah.

Underwriter—Coombs & Co.,

Ogden, Utah.

Colorado
Sept. 23 (letter of notification) 300,000 shares of common
stock (par one cent). Trice—$1 per share.
Proceeds—•
For exploration
and development costs.
Office —129
East 60th St., New York, NT. Y. Underwriter—None.
Uranium Corp. of

Urainbow, Inc., Salt Lake City,

Utah

(letter of notification) 2,000,000 shares of com¬
mon stock
(par two cents). Price—15 cents per share.
Proceeds
For exploration and development expenses.
Office—908 Kearns Bldg., Salt Lake City, Utah. Under¬
writer—Austin B. Smith Brokerage Co., the same city.
Aug. 31

—

nrtm+wwYfif J

r»»1H

r

>

15

*"fw« W « '|1^ r

P^IMVWtfWtoft*

n

Tf*w«**ww wrmuMiM,

Uranium of

^'•fersiWWd^Mti.

WW

p H.

W.1 w y IP.

* ^~"k<t

Fenner

Price —10 cents per share.
development costs. Office
227 N.
University Ave., Provo, Utah.
UnderwriterBay Securities Corp., New York.
(par

1

cent).

Utah Uranium Corp., Las

by competitive bidding. Probable bid¬
Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce,

ders:

&

Beane

ly); Kidder,
(jointly).

Proceeds—For exploration and

(1425)

determined

be

Utah, Inc., Provo, Utah

Sept. 14 (letter of notification) 3,000,000 shares of com¬
stock

Wift

Number 5366... The Commercial and Financial Chronicle

Volume 180

mon

^.w*

and

Salomon

Peabody

&

Co.

Bros.

and

&

Hutzler

White,

•

(joint¬

Weld

&

,

Co.

Corp.

writers—To

be

the basis of

Price—$35

(10/14)

surplus.

Sept. 15 filed $12,500,000 first mortgage bonds due Oct. 1.
1984.
Proceeds—To refund $8,000,000 4y8% bonds
pres¬
ently outstanding and for construction program. Under¬

Vegas, Nev.

Aug. 20 (letter of notification) 10,000,000 shares of capi¬
tal stock (par 1 cent). Price — Three cents per share.
Proceeds—For exploration and development expenses.

California Bank, Los Angeles, Calif.
Sept. 28 stockholders of record Sept. 27 were
given
the
right to subscribe on or
before
Oct.
27
for
200,000 additional shares of capital stock (par
$12.50)
on

Wisconsin Fublic Service

41

per

one

share for each four shares held.
Proceeds—To increase capital and

new

share.

Underwriter—Blyth & Co., Inc., Los Angeles,

Calif, and others.

:

Central &

Southwest Corp.
Sept. 2 it was reported company plans issue and sale of
between 500,000 to 600,000 additional
shares of com¬

determined

by competitive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Merrill
Lynch, Pierce, Fenner & Beane, Salomon Bros. & Hutz¬
.
mon
stock, probably first to stockholders. Underwriter
ler and Union Securities Corp. (jointly);
White, Weld & ../—May be determined
Vendorlator Manufacturing Co., Fresno, Calif.
by competitive bidding. Probable
Co/, Kidder, Peabody & Co.; Kuhn, Loeb & Co.; Dean
bidders; Blyth & Co., Inc. and Smith, Barney & Co.
Sept. 27 filed $900,000 of 12-year 6% sinking fund deWitter & Co.; The First Boston Corp.
Previous common
i
(jointly); The First Boston Corp. and Merrill Lynch,
bentures due Oct.-l, 1966 <with stock purchase warrants
stock
offer
was
underwritten.. by The First Boston
Pierce, Fenner & Beane (jointly); Lehman Brothers apd
attached). Price—At par (each purchaser of a $1,000
Corp.; Merrill, Lynch, Pierce, Fenner & Beane; Robert
Lazard Freres &i Co.
(jointly). Offering—Not expected
debenture to receive a warrant to purchase 50/shares
W. Baird & Co., Inc.; and William Blair & Co. Bids—To
until early in 19.55.
"of common stock at $8 per share). Proceeds—rTo pur¬
»Y Y
be received on Oct. 14
up to 10 a.m. (CST) at 231 So.
•
chase plant equipment and for working capital. Under- r La Salle St., Chicago 4, 111.
Chesapeake & Ohio Ry. (11/9)
\
Y'Y'.Y
writers—Lester, Ryons & Co., Los Angeles, Calif/, and
-Sept. .29 it was reported company plans to issue
•
apd
Woodbury (Conn.) Telephone Co. (10/15)
Bailey & Co., Fresno, Calif.
<
•"sell $40,000,000 of new bonds. * Proceeds—To
refund its
Sept. 10 (letter pf notification) 2,650 shares of common
• Venezuelan
outstanding $37,851,000 37/8% bonds and $2,441,000 4%
Sulphur Corp. of America (10/15)
stock to be offered for
subscription by stockholders of
bonds. Underwriter—May be determined
^Sept. 17 filed 1,000,000 shares of common stock (par 50
by competitive
record Oct. 15, 1954 in the ratio of one new share for
bidding. Probable bidders: Halsey, Stuart & Co.
cents). Price—$3 per share. Proceeds—To pay obliga¬
each share held; with rights to
Inc.;
expire on Nov. 12. Price
Blyth & Co., Inc. Bids—Expected Nov. 9.
tions of Venezuela Sulphur Corp., C.A.; and for advances
—At par ($25 per
share). Proceeds—For construction
to latter for exploratory and geological surveys and re¬
program.
Underwriter—None.
Chicago & Eastern Illinois RR.
lated activities.
Underwriter—Hunter Securities Corp., >
Sept. 21 company filed an application with the ICC for
World Uranium Mining
New York.
Corp.
authority to issue $15,350,000 of 5% income debentures
July 21 (letter of notification) 9,996,000 shares of com¬
due Jan. 1, 2054, to be offered in
Vigorelli of Canada, Ltd. (Canada)
exchange, par for par,
mon
stock
(par one cent).
Price — Three cents per
for the outstanding
Aug. 9 (Regulation "D") 96,770 shares of 8% preferred
383,751 shares of class A stock (par
share. Proceeds—For exploration and
development ex¬
stock (par $2) and 96,770 shares of common stock (par
$40).
'
penses.
Office—323 Newhouse bldg., Salt Lake
City,
$1) in units of one share of each class.
Consolidated Natural Gas Co.
Price—$3.10
Utah. Underwriter—P. G. Christopulos &
Co., same city.
per unit.
Proceeds—For exploration and development
Sept. 16 J. French Robinson, President, announced tfet
expenses. Office—1812 St. Catherine St. West, Montreal,
Wyoming Uranium Corp., Salt Lake City, Utah
stockholders on Dec. 2 wiil vote on
authorizing addi¬
Canada. Underwriter—B. Fennekohl & Co., New York.
Aug. 23 (letter of notification) 9,166,667 shares of com¬
tional shares of capital stock for an
offering to stock¬
mon stock
holders planned for 1955. Underwriter—None.
(par 1 cent). Price—Three cents per share.
Warren Corp., Tulsa, Okla.
Proceeds—For exploration and development
expenses.
Sept. 27 filed 200,000 shares of common stock (par $1).
Consolidated Uranium Mines, Inc.
Underwriter—James E. Reed Co., Salt Lake
V
City, Utah.
Price—$5.25 per share. Proceeds—To retire outstanding
July 23 stockholders authorized the issuance and sale
Wytex Oil Corp.
of not to exceed
notes, purchase and develop. additional leases and over¬
$6,000,000 convertible debenture bonds
Sept. 17 (letter of notification) $290,000 of 10-year 5%
in connection with the acquisition of Uranium
riding royalties, etc. Underwriter—None.
Mines of
sinking fund debentures (with warrants) to be offered
America, Inc. stock. Underwriter
May be Tellier &
Warren Oil & Uranium Mining Co., Inc.,
to class A and for class B stockholders of record
Co., Jersey City, N. J.
Aug. 29
Denver, Colo.
on the basis of
$500 of debentures for each 50 shares of
Cortland Equipment
Aug. 6 filed 65,000,000 shares of common stock (par one
stock held; rights to expire on Nov. 30.
Lessors, Inc.
Price—At par.
Aug. 31 it was reported this corporation, a
cent). Price—7^ cents per share. Proceeds—To pur¬
Proceeds—To reduce bank loans and for development of
subsidiary
of Safeway
chase mining claims and exploratory equipment, and for
Stores, Inc., may sell notes and debentures
company's wells in Weston County, Wyo. Office—100
totaling $60,000,000 to $70,000,000. Proceeds—To repay
exploration costs. Underwriter—Weber Investment Co.,
State St., Albany 7, N. Y. Underwriter—None.
bank loans which are understood to
Salt Lake City, Utah.
amount to between
Zenith Uranium & Mining Corp.
$50,000,00 and $60,000,000 at the present time. Under¬
^ Washington Institute for Experimental
July 12 (letter of notification) 300,000 shares of common
writer—Merrill Lynch, Pierce, Fenner &
Beane, New
Medicine, Inc.
stock (par one cent).
York.
Price—$1 per share. Proceeds—
Sept. 30 (letter of notification) 500 shares of 7% cumu¬
For mining operations.
Underwriter—Sheehan & Co.,
lative preferred stock. Price—At par ($100 per
Eastern Utilities Associates
share).
Boston, Mass.
Proceeds
For working capital and general corporate
Sept. 20 it was reported company plans issue and sale
• Zotox Pharmacal
of $7,500,000 collateral trust bonds due 1984.
Co., Inc. (10/11-15)
purposes.
Address—RFD Herndon, Fairfax County, Va.
Proceeds—
Sept. 24 (letter of notification) 100,000 shares of common
To be used principally to refund
Underwriter—None.
$7,000,000 4%% bonds
stock
now
(par $1). Price — $3 per share.
Proceeds
For
outstanding. Underwriter—To be determined byWashington Natural Gas Co., Clarksburg, Va.
working capital. Office—122 Broad St., Stamford, Conn.
competitive bidding'. Probable bidders:
Halsey, Stuart &
Sept. 20 (letter of notification) 10,000 shares of common
Underwriter—Frederick H. Hatch & Co., Inc., New York.
Co. Inc.; Kidder, Peabody &
Co.; White, Weld & Co.;
stock.
Price—At the market (estimated at $1.37*6
per
Stone & Webster Securities
Corp. and Estabrook & Co.
share). Proceeds—To Elizabeth D. Hardman, the sell¬
Bids—Expected to be received sometime in November.
ing stockholder. Underwriter—Barrett Herrick & Co.,
it First National Bank of Memphis (Tenn.f.
Inc., New York.
<
•
Opt. 5 stockholders of, record that date were given the
it Welex Jet Services, Inc.
right to subscribe on or before Oct. 19 for 200,000 addi¬
American Telephone & Telegraph Co.
Sept. 20 (letter of notification) 11,500 shares of common
tional shares of capital stock
(par $10), Price—$30 per
stock
(par $1) to be offered for subscription by em¬
share.
Sept. 15 directors voted to make another stock offering
Proceeds—To increase capital and
surplus. Un¬
to Bell System employees under the Employees' Stock
ployees. Price—$15.50 per share. Proceeds—For work¬
derwriters—Merrill Lynch, Pierce, Fenner &
Beane,
Plan approved by the share owners in 1950. About oneing capital. Underwriter—None.
New York; and Equitable Securities
Corp., Nashville,
half of the 3,000,000 shares authorized under the
Tenn.
plan
West Coast Pipe Line
Co., Dallas, Tex.
remain to be offered now. It is planned to send a pros¬
General Telephone Co. of the Southwest
Nov. 20, 1952 filed $29,000,000
<
12-year 6% debenturei
pectus describing the new offer to employees late in
due Dec. 15, 1964, and 580,000 shares of common stock
Aug. 25 stockholders approved an increase in the au¬
October.
They will have until Dec. 15 to make their
thorized preferred stock (par $20) from
(par 50 cents) to be offered in units of one $50 deben¬
400,000 to 700,purchase selection. Price—The purchase price will be $20
000 shares and in the common stock from
ture and one share of stock.
Price—To be supplied by
500,000 to
per share less than the market price when payment is
amendment. Proceeds—From sale of units and
1,000,000 shares.
1,125,000
Underwriters^-Paine, Webber, Jackson
completed, but not more than $150 nor less than $100 per
& Curtis and Stone &
additional shares of common stock and private sales ol
Webst#er Securities Corp.
share.
Proceeds
To be used for additions and im¬
$55,000,000 first mortgage bonds to be used to build 8
Georgia Gas Co.
provements to Bell System.
1,030 mile crude oil pipeline.
Underwriters — White
Aug. 27 it was announced that this company, a sub¬
•
Weld & Co. and Union Securities Corp., both of New
sidiary of United Cities Utilities Co., contemplates the
Anglo California National Bank
York.
Oct. 6 this bank made an offering to stockholders of
issue and sale to residents of
Offering—Postponed indefinitely.
Georgia of $300,000 par
value of preferred
262,500 additional shares of capital stock (par $20) on
stock, subject to the approval of
West Coast Pipe Line Co., Dallas, Tex.
the Georgia P. S. Commission.
the basis of one new share for each four shares held Oct.
Nov. 20, 1952 filed 1,125,000 shares of common stock (pai
5; with rights to expire Oct. 27. Price—$45 per share.
Gulf, Moblie & Ohio RR.
50 cents). Price—To be supplied by amendment.
Pro¬
Proceeds—To increase capital and surplus. Underwriter
Aug. 23 it was reported company may consider the
ceeds—Together with other funds, to be used to build
—Blyth & Co., Inc., San Francisco, Calif, and others.
issuance of about $25,000,000 bonds later this
pipeline. Underwriters—White, Weld & Co. and Union
year. Pro¬
ceeds—To refund first
Securities Corp., both of New York.
refunding mortgage 4s and 3%s
Axe Atomic & Electronic Fund
Offering—Post¬
due
1975 and
1969, respectively; collateral trust 3%s
poned indefinitely.
Sept. 20 it was reported securities of -this new closed-end
due 1968; and New Orleans Great
Northern 5s due 1983,
fund will be soon offered through Axe Securities Corp.,
Western Central Petroleums, Inc., N. Y.
Underwriter—To bev determined by
New York, N. Y.
competitive bid¬
.
Sept. 16 (letter of notification) 133,333 shares of common
ding.
Probable bidders: Halsey, Stuart & Co. Inc.;
Aztec Oil & Gas Co.
stock (par 10 cents).
Price—At market (estimated at
Kuhn, Loeb & Co., Blyth & Co., Inc. and Salomon Bros.
Sept. 27 it was announced company plans to offer stock¬
36% cents).
Proceeds—To certain selling stockholders.
& Hutzler
(jointly); The First Boston Corp.; Shields
holders the right to subscribe for 285,005 additional
Office
32 Broadway, New York.
Underwriter — S. B.
& Co.
Office—1818

Beverly Way, Las Vegas, Nev.
Securities, same city.

Underwriter

—First Western

.

.

.

"

—

.

.

—

—

Prospective Offerings

r

—

•

*

—

Cantor

shares of

Co., New York.

for

Western Plains Oil & Gas Co.
May 24 filed 100,000 shares of common stock (par $1).
Price—$4.75 per share. Proceeds—To redeem 1,250 out¬
standing preferred shares ($125,000), to repay bank
loan, etc. ($2,500); for purchase or acquisition of addi¬
tional

mineral

interests,

United States and
poses.

leases

and

royalties

in

the

Canada and for other corporate pur¬

Office—Glendive, Mont.

Underwriter—Irving J.

Rice & Co., St. Paul, Minn.
Wind River Uranium Co.

Sept. 15 (letter of notification) 9,965,000 shares of
mon

stock

(par

1

cent).

com¬

Price—Three cents per share.

Proceeds—For exploration and development cbsts. Office
—65 East 4th

South, Salt Lake City, Utah.
K. T. Hansen &
Co., same city.

Underwriter

Wisconsin Michigan Power Co.
Sept. 29 filed $3,000,000 first mortgage bonds due 1984.
Proceeds—For construction program. Underwriter—To




each

option

,

-

stock

common
seven

theb asis of

on

held.

shares

one

new

share

exercise

Proceeds—To

an

to purchase

certain oil and gas production and
undeveloped leases from the Southern Union Gas Co.,
retire bank loans and increase working capital. Under¬

Hamilton National Bank,
Washington, D. C.
Sept. 14 stockholders approved merger of this Bank and
National Bank of Washington, effective Oct.
1, 1954, the
consolidated

Bank

shares

it Bangor & Aroostook RR.
5 it was reported company plans to issue and sell
$2,850,000 of equipment trust certificates to be dated
Oct.

Nov.

1,

1954

and

to

mature

annually

through

Nov.

1,
1969. Probable bidders: Halsey, Stuart & Co. Inc.; R. W.
Pressprich & Co.; Salomon Bros. & Hutzler; Blair & Co.
Incorporated; Kidder, Peabody & CoY
i

r'J e'

it Black Hills Power & Light Co.Sept. 28 it was reported company may issue and sell

proximately

stock^

to

be

known

Washington, which will have

writer—None.

$1,000,000

of

new

ap¬

convertible'' preferred

Proceeds—To repay bank loans and for new con¬
struction.
Underwriter—Dillon, Read & Co. Inc., New
York.
Meeting—Stockholders on Nov. 19 will vote on

authorizing sale of not

over

$2,000,000 of preferred stock.

shares

for each

a

as

National

Bank

of

capitalization of 410,000

of

$10 par value each. These will be issued in
exchange for present Hamilton stock on the basis of two
for

stock

of

Hamilton

National

share

Bank

on

held, and in exchange
a

share-for-share basis.

Johnston, Lemon & Co., Washington, D. C., is authorized
to

pay

$55

per

company not

share for

any

stock of the consolidated

issued in exchange.

Holly Corp., New York.
Sept. 9 S. B. Harris, Jr., President, stated that prelimin¬
ary financing has been arranged to be followed by a
public offering after which this corporation plans to
distribute

a

part of its holdings of Holly Uranium Corp.

stock to its stockholders.

Continued

on

page

42

42

The Commercial and Financial Chronicle...

■\'.

(1426)

Continued

Mexican

jrom page 41
Finance

Household

Aug.. 30 it

Corp.

it

For

was

Peabody & Co., both of New York; and

Central RR.

Illinois
Oct. 4 it

National City

(12/15),

sell

Interstate Power Oo.

•

•

t

(par $50). Proceeds
To redeem $5,000,000 of 4.70%
preferred stock presently outstanding, to repay $2,000,OOOof bank loans and for construction program. Under¬

preferred stock financing was handled by

'

.

■

Kansas City

^fcept.

'/7'

Underwriters

sale

/
,

Kidder/Pe^body & Co. and Stone & Webster Securitiei
Corp

nointty); The First Boston Corp.: White. Weld *

itegistratibn—About

Co.

ment trust

Bids—Expected Dec. 14.

Nov. 5.

certificates to mature in l-to-15

years. Prob¬
Halsey, Stuart & Co. Inc.; Salomon Bros. &

able bidders:

Pacific

Power &

Sept. 19 it
a

on

issue and sell in

authorize 200,000 additional

of $100 par

Proceeds—For

Light Co.

announced stockholders will vote Oct. 19

proposal to

stock

Pro¬

was

value, which

are

preferred

to be sold in series.

construction.

new

Underwriter

—;

Sept.

by Competitive bidding. Probable bidders: The First
Boston Corp. and Halsey, Stuart & Co. Inc. (with latter
handling books); Kuhn, Loeb & Co., Ladenburg, Thalmann &
Co. and Blyth & Co., Inc. (jointly).

sale

was

done

Weld

Corp.

★ Peninsular Telephone Co.
Sept. 28 it was reported stockholders

'

privately through The First Boston Corp.

was

vote

*

>,

be

shares
stock

common

Underwriter

to

1,000,000

from

shares

on

1,500,000

to

and

Oct.

the

20

will

2,000,000

authorized

shares.

Un¬

derwriters—Last

determined

Kentucky Utilities Co.
June 21 it

reported company plans to issue and sell
to its common stockholders some additional common
stock, either on a l-for-9 or an a l-for-10 basis.
At
was

April 30, 1954, there

outstanding 2,286,784 shares.
Underwriters—Previous common stock offering, in
April,
1953, was underwritten by Blyth & Co., Inc. and J. J. B.
were

Hilliard & Sons and associates.

,,

be

to

are

publicly offered. Price—From 15% to 25%
below the price on the New York Stock
Exchange at
the time of offering. Proceeds — Of the approximately
$3,000,000 which would be obtained, about $1,000,000 will
be

used

for

drilling,

exploration and additional pur¬
chases under the corporation's uranium
program; an¬
other $1,000,000 will be used to finance
accounts re¬
ceivable
used

to

.

panded

of

subsidiary and the remainder would be
develop proven oil reserves, including an ex¬
drilling program.
a

Laclede Gas Co.

Aug. 6 it

$20,000,000

reported company plans to issue and sell
first mortgage bonds.
Proceeds—To repay

bank loans

and for

be

new

construction.

Underwriter—To

by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co.
Inc.; The First Boston Corp.;
Stone

Blair

&

Webster

Securities

Corp.;

&

Co., Inc. and Drexel & Co.
Expected in October.

Lehman

Brothers;
(jointly).
Bids-

April

April 20 it

was

announced

company plans later in

1954

Halsey, Stuart & Co. Inc.; W. C. Langley & Co.; Blytb
& Co., Inc. and The First Boston
Corp. (jointly); Smith
Barney & Co.
Majestic Auto Club, Inc.
Aug. 25 it was announced company plans to offer
500,000 shares (par five cents) to the motorist and
general
public shortly after completion of the current
offering
of 100,000 shares to service station
owners and operators.
Office—Room 717, 141
Broadway, New York 6, N. Y.
m(."

additional

was

reported

company

financing—probably

ferred stock.

Underwriters

handled by Drexel & Co.,

Stanley & Co., New York.




—

may

be considering

some
convertible pre¬
Previous financing was

Philadelphia, Pa., and Morgan

stock

from

which

in¬

5,000,000 to

company

has no specific financing program.
Underwriters—Previous offering of $24,952,800 3% convertible

company

in September, 1953, was underwritten by
Co., Smith, Barney & Co. and Merrill Lynch, '
Pierce, Fenner & Beane.

debentures,
Drexel &

Pacific Power Co.

Sierra

(11/9)

Sept, 7 it was announced company plans to issue and
sell $4,000,000 first mortgage bonds.
Proceeds—To re¬
deem $1,500,000 of 3%% bonds, to repay bank loans and
for construction program. Underwriters—To be deter¬

mine^ by competitive bidding. Probable bidders: Halsey,
Inc.; Stone & Webster Securities Corp. and
& Co. (jointly); Kidder, Peabody & Co.
Registration—Planned for Oct. 8. Bids—Expected about
Witter

Nov. 9.

-»

^ Standard Oil Co.

(New Jersey)

Sept. 22 company announced that it proposes to file

a

registration statement with the SEC covering the offer¬
ing of authorized but unissued shares of its $15 par value
capital stock, which will be offered in exchange fbr
stock of Humble Oil & Refining Co.-on the basis of

nine

Standard

shares

Oil

for each 10

The'offer will be subject

of Humble Oil stock.

to

deposit of sufficient Humble Oil shares so that hold¬
ings will amount to at least 80% of the outstanding
Humble Oil stock, of which-Standard now owns 26,034,384 shares, or

approximately 72%./

^

..

Transcontinental Gas Pipe Lino Corp.
March 16 it

reported

was

..«

,

plans later this year:

company

to-do some permanent financing to repay temporary
bank loans necessary to pay for new construction esti¬
mated to cost about $11,000,000 for 1054: Underwriters-

While, Weld & Co. and
Corp., both of New York.

Stone. > &

Webste^ Securities

United Dye & Chemical Corp.

S^pt. 8

authorized

directors

an

offering

to

common

stockholders of additional common stock at the rate

oncfnew share

for each five shares held

(with

an

of

over¬

About 150,000 shares are pres¬
Underwriter—

subscription privilege).

ently outstanding* Price—$9 per share.
None.
-Utah & Idaho

Uranium, Inc., Kellogg, Ida.

S. Harrison,

gram.

held.

increase

Price—To

surplus

Drexel

&

Fenner

on

Co.,

and

be

named

capital

later.

Proceeds—To

accounts.

Underwriters

Philadelphia,

Pa.;

Merrill

&

Smith

Beane

and

York.

Meeting—Stockholders
approving new financing.

and

Barney

are

to

&

vote

Lynch,
Co., of
Nov.

1

of convertible subordinated
debentures due Oct. 1, 1969,
which are to be issued in part
payment of the total pur¬
chase price for all of the
business, good will, properties
and other assets of

Clearing Machine Corp.

The latter
will liquidate and dissolve and
the debentures distrib¬
uted to

Clearing stockholders, some of whom
arrangements to sell the debentures.

are

Sept.

7 Lester

the -company

*

i

;

..

28

Service

it

Co*

of

making

date; which is presently expected to be in November.
Proceeds
writer

—

—

Probable

To

To

finance

be

bidders:,

construction

determined

Merrill

Oklahoma

reported that company may issue and
75,000 shares of new preferred stock
(par $100).
Underwriter—To be determined by
competitive bidding:

by

program.

Under¬

competitive

Lynch,

Pierce,

bidding.
Fenner &

Bc^ne; Stone & Webster Securities Corp.
Western Pacific RR. Co.

Sept. 8, it
the issue

first

was

and

mortgage

announced that directors have approved
sale

about

bonds,

Jan.

series

and for future

1,

B.

1955 of $7,000,000 of

Proceeds

—

To

re¬

expenditures already made

improvements. Underwritej^^May be de¬

was

sell

Probable

'

Aug. 20 directors approved in principle a plan to sell
600,000 additional shares of common stock this Fall.
They will be offered to common stockholders at the rate
of/one new share for each 10 shares held on the record

imburse company for capital

Public

-

Virginia Electric & Power Co.

Pressed Steel Car Co., Inc.
Sept. 17 ii was announced that arrangements have been
made with Lehman Brothers, New
York, for an imme¬
diate secondary offering of all- or
part of the $5,300,000

Aug.

Mead Corp.

Sept. 27 it

proposals

approved
common

shares and the authorized indebtedness of
from $25,000,000 to $50,000,000.
The

10,000,000
the

authorized

the

shares

Pierce,

to issue
$20,000,000 mortgage bonds. - Proceeds —Tc
finance construction program.
Underwriter—To be de¬
termined by competitive bidding. .Probable bidders'

stockholders

27

creased

Aug. 24 it was announced stockholders will be offered
the right to subscribe to
100,000 shares of common stock
(par $10) on the basis of new new share for each 14

New

Long Island Lighting Co.

75-cent

(par

President, announced that
contemplates obtaining funds to initiate
its uranium mining operations in Utah by the sale to the
public of its unissued treasury stock. This financing will
follow completion of the company's current drilling pro¬

Pennsylvania Company for Banking and Trusts,
Philadelphia, Pa.

was

determined

of

block

stock

t

shares

financing was handled by Morgan
by competitive bidding. Probable
Stanley & Co. and Coggeshall & Hicks. Not imminent.
bidders: Halsey, Stuart & Co. Inc.;, Harriman
Ripley &
Co. Inc.; The First Boston Corp. and Lehman Brothers
Penn-Texas Corp.
(jointly); Union Securities Corp. and Merrill Lynch,
Sept. 26„yL. Dv Silberstein, President and Chairman of
Pierce, Fenner & Beane (jointly); Blyth & Co., Inc.;
; the Board, announced stockholders on Oct. 18 will vote
Kidder, Peabody & Co. and White, Weld & Co. (jointly);
on increasing the authorized
capital stock (par $10) by
Equitable Securities Corp. Bids — Expected to be re- ~
j(l>000,000 shares, of which approximately 220,000 shares
ceived in October or November.
—To

additional

preferred

Paper Co.

approximately

increasing the authorized preferred stock from

on

600,000

reported company plans to issue and sell

$15,000,000 first mortgage bonds, series F.

&

Co., Lehman Brothers and Union Securities
(jointly). Bids—Expected to be received at 195
Broadway, New York, N. Y., on Nov. 16.

com¬

Kentucky Utilities Co.
June 21 it

of

15,
1954.
Proceeds—To redeem a like amount of 31-year
4% debentures due Sept. 15, 1984. Underwriter—To be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; White,

plans to sell approximately $8,000,000 of bonds in-

the next few weeks. Proceeds—To repay bank loans and
for construction purposes. Underwriter—Previous bond

telegraph Co. (11/16)
authorized the issue and sale

$50,000,000'of 35-year debentures to be dated Nov.

•

pany

the directors

2

an

convertible

Scott

Dean

Pacific Telephone &

To be determined

Kansas Power & Light Co.
Oct. 4, D. E. Ackers* President, announced that the

.

Stuart & Co.

ceeds—To refund $38,345,000 of 4s due 1975 and $13,336,000 of 3%s due 1966.

4l

Fund, Ltd.

gross

Hutzler.

may

W.
Investment

—

(jointly); Kuhn, Loeb & Co., Salomon Bros. & Hutzler
and Union Securities Corp. (jointly); Glore, Forgan &
Co.; Blyth & Co., Inc. and The First Boston Corp. (joint¬
ly); White, Weld & Co. and Shields & Co. (jointly); Har¬
riman Ripley & Co., Inc., Equitable Securities Corp.

was

$4) to
Corp. owns 50% of the pres¬
which are being split-up on

$1)* expected,
around $250,000. Proceeds—For expansion aiid
acquisitions. Underwriter—Probably Pacific Coast Se¬
curities Co., San Francisco, Calif.
•
to

,

sell

and

issue

lative

petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.;
Lehman- Brothers
and
Bear,
Stearns
&
Co.,

Sept. 20 it

(par

«

small offering of
its stockholders.

r

New York,
l^ew Haven & Hartford RR. (10/7)
Bids will be received by the company up to noon (EST)
on Oct. 7 for the purchase from it of $2,595,000 equip¬

November about $50,000,000 first mortgage bonds.

stock

Chemical

outstanding shares,

Resources of Canada

To
be
determined
by
competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.,
Equitable Securities Corp.; Union Securities Corp. and
Harriman Ripley & Co. Inc. (jointly); Lehman Brothers.

"

Southern Ry.
reported company

capital

a

a&wo-for-one basis.

Starch

$6,000,000 of first mortgage bonds due 1984 in Decernber of this year.
Proceeds—For construction program.

was

Kansas City

reported company plans

Mathieson

ently

to
*

latter part of 1954 or early in 1955

'

additional
Ohn

Motors, Inc., Rockaway, N. J.

was

.

announced that company may sell in the
$16,000,000 first mort¬
gage bonds. Proceeds—To repay bank loans and for new
construction. Underwriters—To be determined by com15 it

National

New Orleans Public Service Inc.. (12/14)
Oct. 1 it was announced company plans to offer for

•

Power & Light Co.

Reaction

•Aug. 7 it

•

Barney

(joinlty).

(jointly); White, Weld & Co.; Shields & Co.
„

.

i

& Co. If through competitive bidding,
probable bidders may include: Smith, Barney & Co.;
Blyth & Co., Inc.; Lehman Brothers; Merrill Lynch,
Pierce, Fenner & Beane and Kidder, Peabody'& Co.
Smith,

the

Products, Inc.
Sept. 28 stockholders approved an authorized issue -of - April 27 the SEC authorized the company to registers
an investment concern and to make a public
offering of
40,000 shares of new prefererd stock- (par $100), a part
%
of which may be issued privately to finance a new mid->- securities in the United States, y
western plant to produce vinyl resins.
Underwriter—F.
Savage Industries* Inc., Phoenix, Arlzi
Eberstadt & Co.^'Inc., New York, handled previous fiAug. 9 it was announced company plans latej^tJ^jjrdk
nancing.
<
""
*"
:

*'

Sept. 27 it was reported company is considering issuance,
and sale of 200,000 shares of cumulative preferred stock

writer—Last

„

company

derwriter—The First Boston Corp. heads group.

.
'+

the

of

Septv 24; with rights to expire on Oct. 22« Subscription
were mailed on Sept.
30. Price—$52.50 per
share. Proceeds—To increase capital and surplus. Un-

•

.

Bank of New York

surplus

and

warrants

competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Kuhn, Loeb & Co., Harriman Ripley & Co.
Inc. and Union Securities Corp. (jointly); Morgan Stan¬

Bids—Expected on Dec. 15.

tive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Equitable Securities Corp.; Salomon Bros. & Hutz¬
ler; The First Boston Corp.; Blyth & Co., Inc., Kidder,
Peabody & Co. and Stone & Webster Securities Corp.

by $131,250,000
through the sale of 2,500,000 additional snare3 of capital
stock (par $20) to stockholders by subscription on the
basis of one new share for each three shares held, as of

capital

$15,000,000 of sinking fund deoentures due 1979. Pro¬
ceeds—To redeem outstanding preferred stock and re¬
tire bank loans.
Underwriter — To be determined by

ley & Co.

ary.:^ Proceeds—To repay bank loans and for new con¬
struction. Underwriter—To be determined by competi¬

National Bank of Washington

Sept. 20 stockholders approved a proposal to increase

reported company plans to issue and

was

Proceeds—
Under¬

See Hamilton National Bank above.

.a;./•,

Service Co. of Oklahoma

Sept. 2 it was reported company may sell between $20,000,000 and $25,000,000 of first mortgage bonds in Janu¬

working capital.
Alstyne, Noel & Co., New York.

capital expenditures and

writer—Van

William Blair &

associates."

Co., of Chicago and

Public

Co.

Sulphur

reported company plans issue and sale of

200,000 additional shares of common stock.

^

announced preferred stockholders will
vote Oct. 7 on increasing the authorized amount of pre¬
ferred stock (par $100) from 312,000 shares to 592,000
shares. Underwriters—Lee, Higginson Corp. and Kidder,
27

Aug.

Gulf

was

Thursday, October 7, 1954

bidders:

Harriman

Ripley & Co. Inc
and
Central Republic Co. Inc.
(jointly); Smith, Barney &
Co.; Kuhn, Loeb & Co.; Glore, Forgan & Co
-

termined by
sey,

competitive bidding. Probable bidders: Hal¬

Stuart & Co. Inc.; Union Securities Corp. ancLGlore,

Forgan

&

Co.

(jointly);

Kidder, Peabody &

Co.

and

Blyth & Co., Inc. (jointly); Lehman Brothers and Bear,
Strains & Co.

(jointly).

,

-

Number 5366...The

Volume 180

Commercial and Financial Chronicle

"'(1427)

prior to bidding .for a given is¬ to mature Nov. 1, 1984. -Part of
it appears that some people ,fhe proceeds would be applied to.
in the business are getting a lit¬ retirement of $45,000,000 of 3%%
tle Restless.
term loan notes held by banks

sue,

,

In the

of

case

"Street-Size"

one

issue up .for

bids this week, it de¬
veloped ' that some of those at¬
tending the meeting to set up the
bid and the projected reoffering
price were stiongly disposed to
push up the bid and "shave" the
offering price.
Had - such
suggestions
been
>
Underwriters still appear to be
adopted, bankers it was calcu¬
encountering difficulty in bid¬ lated would have found them¬
ding for

new

"material

basis

on a

and the balance used for

one
an

trade

will

it.

puts

take

just
in

the

what

the

Today brings
sions

that

rare

the

as

total

of

way

eclipse.
American Telephone &
yield. * And thus far they have not Telegraph Co., is foregoing its
been able to hit the jack-pot.
-right to subscribe to new stock
The
disposition recently has being offered by Southern New
been to bid for new issues in a England Telephone Co., one of its
that will permit reoffer-

manner

ing of say a Double A bond to
yield about 3.05 %. But buyers ao
not

appear

ested

on

to

greatly

be

inter¬

affiliates.
The

it was opservea Lhat some firms

it

has

The

•

latter

project

with

•eourse

holders

has
of

its

run

the

out¬

has

been raised

standing $6 preferred stock turn¬

has

ing in 411,655 shares of that issue

giving

settled

the

down

to

"rights"

countries

around

from want and

the latter having been sold for
account

group

of

Within a fortnight the National
City offering will have been com¬
pleted, and, with their < capital
thus

"freed"

up; once

more,

un-

.derwriters may feel a bit more at

liberty in looking

over new

ma¬

terial.

Getting

Bit Fidgety ..;

a

From

reports filtering through
from some of the group meetings

.

While

Oil

It is much

36^4

indicated

Files
groups

Oil

Co.,

Commerce Commission.
The

the

340,000:

many

of

by

*

la¬

the

&

;

our

THE

:

,

military threat.

a

we

sense

freedom is not

proposed

offering of $100,000,000
sinking fund debentures due

*

capital has been on the. World Bank's agenda for years; blocked
mainly, although unofficially, by the United States Treasury's
negative "attitude, mainly on the ground that in view of existing

a

*

Affiliated with the World Bank and using its know-how and

used to

avoid the

World

.

Bank's basic requirement of a local government's guaranty on its
loans—this entity projected thus to make loans and equity capital

*

available to private enterprises. Its own capital to1 the tune of
$50-$ 100 million, will be subscribed by debenture stock or equity
capital or both; and will be used to make loans and equity capitaj
available to- private enterprise.While

the fruition of the

IFC

project is still something for
,

;

books

.

.

et al. be if a Con¬

the American economy

evaluating the possible results of these major develop¬
ments, the facts must be weighed realistically. As Brazil's newlyappointed Minister of Finance Eugenio Gudin observed in his
refreshingly sophisticated and witty talk at last week's World

'

panel discussion of the question, "the subject [of interna¬
capital and international investments], has been the object
of so many reports, especially by the United Nations, ihat one is
perhaps somewhat diffident in discussing it with the idea of per¬
forming something useful.
"If there is any

with entire impartiality.

tegrity he cites certain

ways




in which his underdeveloped fellow-

of

STOCK

Checks will

EDMUND HOFFMAN, Secretary

has not in

a

burden* but

a

means

COMBUSTION ENGINEERING,

of economic

:

r

:

TT

1

Dividend No. 204

—

.

are

to

blame,

(75e)

quarterly dividend
per share en all

LONG ISLAND LIGHTING COMPANY

of

QUARTERLY DIVIDEND
COMMON

country. He strongly urged the underdeveloped countries to take
very great
and quick steps to rid themselves of these twin
"plagues" of inflation and nationalism—an attitude eliciting the
epithet "Adam Smith" from discomfited United Nations observers.

STOCK

The Board of Directors has de¬
clared

a

quarterly dividend of 25

per share on the Company's
Common Stock, payable Novem¬
cents

ber

1,1954 to stockholders of rec¬

ord at the close of business

pointed out on the
Washington panel, "Private investment is not made for philan¬
thropic reasons." And in this vein he realistically cited the attractiye yields readily available here on the liquid issues of the
Treasury Secretary Humphrey also

on

October 15, 1954.
VINCENT T. MILES
Treasurer

September 29,1954

behavior of the local

the important bellwether to the

of seventy-five cents
the outstanding stock

of
the Company has been declared; payable
October 29, 1954 to stockholders of record at
the close of business October 15, 1954.
OTTO W. STRAUSS
Vice President and Treasarer.

Britain's

potential foreign in¬

citizen

is

deterrent

in

a

realistic

world

is

the

tax

factor,

With double taxation and contingent

heads-you-win tails-I-lose status
imposed, the investor surely will not hungrily copie in.
The elements of threat still hanging over the foreign investor
even after the recent liberalization of local investment laws, has
been depicted in detail by this writer. As we observed on a recent
on-the-spot investigation of this situation in the Middle and Near
East, even where the lid has been lifted on withdrawal political
factors—including the possibility of subsequent back-tracking in
the statutes—creates justifiable doubt.
Possibly it is the fear of political instability which now ex-,

tional

Whereupon with exceptional consistency and intellectual in¬

dose

Vanadium Corporation

emasculation of profits—with a

Bank

' '

the

been "shrinking," and, of course,

which cries out for reform.

In

useless."

at

Oq September 28,i954 a quarterly dividend
Of thirty-five cents per share was declared on
the Common Stock of this Company, payable
November 15, 1954, to Stockholders of record
at the close of business October 21, 1954.

"multiplier"; by which term he categorizes the advantages of em¬
ployment, development of markets, the earning of insurance and
freight commissions accompanying loans to an underdeveloped

Another

A Welcdme Note of Realism

advantage in discussing it, if must be done
It is a subject that must be approaphed
on the lines of the
great French writer, Renan, who wrote, T
write for those who are seeking for truth.' It must be done with
complete impartiality, with no passion. Otherwise it becomes

Company
29,. 1954.

vestor, and

gressional Act would have been necessary at every instance of
their borrowing?"
'
„

the

C. WILSON, Assistant Treasurer,
120 Broadway, New York 5, N. Y.

that this constitutes a real flag of invitation or of
warning. As he points out, how can a country hope to attract
foreign investors if its own nationals are seeking shelter for their
savings abroad?

ment-guaranty provision as nettlesome to private economies, he
asked "where would General Motors, duPont,

of

Transfer books will remain open.
be mailed. ;

He followed with a reminder that the
.

AND
COMPANY

CAN COMPANY

listed invulnerable American corporations.

notably by Cuba's Machado, eloquently representing the Latinr
American "underdeveloped" bloc. Objecting to the present govern¬

TOPEKA

RAILWAY

Company payable December 8, 1954, to holders
of said Common Capital Stock / registered on

Not Philanthropy

the future, some of the ground has undoubtedly been made up as
a result of its vociferous boosting at the Bank and Fund meetings,

.

FE

INC.

themselves

as

are:

Securities

NOTICES

COMMON

including notably the up¬
surge of nationalism, and the unceasing threat of expropriation
of foreigners' private property without compensation. The next
"plague he lists is inflation which disequilibriates the balance of
payments.
As our Brazilian- finance leader remarked, "Inflation is incompatible with a regular flow of foreign capital because
of resulting balance of payments difficulties."

And,

offering

AMERICAN

only

He cited America's relative indifference to the importance

the Export-Import Bank, it is superfluous at

the

ATCHISON,

challenge

international trade with neglect of what he calls Great

the present time.

this institution would be

in

business October

here and healthy economies

■—

•countries

cars.

Co.; Union

achievement.

d

50-

have felt most

friends and allies through expanding

course

real

105

cars;

New York, N. Y„ September
28, 1954.
.The Board of Directors has this day de¬
clared a dividend of One Dollar and Twentyfive Cents
($1.25) per share, being Dividend
No. 168, on the Common Capital Stock of this

-

Bank and Fund parley in Washington last week. It will be re¬
that this plan for relaxing' the restrictions on exporting

experience,

&

SANTA

in

Of

pas¬

and 10 lightweight

DIVIDEND
•

trade and investment."—Adlai E. Stevenson.

any

1,750

hp. locomotives; 655

superiority of free institutions,

economy

freight

Corp., and Stroud & Co. Inc.

must meet and/which can be met

healthy

a

esti¬

Adlai E. Stevenson

think of the threat

where

Diesel

cars,

Hutzler

the

us

equipment

automobile

than that.

challenges

of

we

among

called

as

six

Drexel

development, relief

as

secured by
standard-

Associated with Salomon Bros.

will choose economic

us

only

to be
new

passenger train chair

in¬

free

is

railroad

gauge

A

institutions, such

issue

following

mated to cost not less than
$11,-

And

many

;—;

Continued from page

2.58%

certificates,
maturing artmially

Issuance of
certificates is subject to the
authorization
of
the
Interstate

com¬

namely, in the economic sphere. This is

keeping
with
its
recent
announcement,
proceeded to register for its huge
undertaking.
The company filed to cover a
of

misery,

more

"It also

confident

bored with the task of marketing
this week's corporate emissions

Continental

our

world Communism

which

distributing

Co.

trust

cording to maturity.

D.

score.

Continental

-

Pacific

the

If they feel compelled to choose

Too

development.

preferred.. This worth, of about %s. The rights ex¬
94.9% acceptance, pire Oct. 29, making it a bit of
Jand : left the "standby" bankers a pull for the bankers, but they
with only 22,214 shares to take are not expected to be nervous
up,

and

.

United

the

between freedom and economic

a

that

Hutzler

&

offering $8,505,000

OO,

ton box

some

yond their means.

*

on

Bros.
are

.

Sept. 1, 1955 to 1969, inclusive.
The certificates are priced to
yield from 1.30% to 2.85%, ac¬

not,

or

people wonder
freedom is a luxury be¬

whether

Sor the new, $4.60

represented

admire

stitutions,

to

an

between

to

$2 an¬
but the stock

nually from $1.80

Salomon
associates

series

while most of the non-Communist

submit

dend

negotiated deal.

Southern Pacific Ctfs.

50-ton

like it

we

States and the Soviet Union.

com¬

bankers

a

senger 2,400

the rest of the world makes

,

invited

Salomon Bros. Offer

hp. locomotives; two Diesel

parisons

bids, to be opened today,
may feel a bit restricted in the for its 1,173,696 "rights" which en¬
operations due to being locked up title the holder to subscribe for
jn a couple of major "standby" new shares in the ratio of one
operations namely the National new for each nine held.
When
'City Bank's offering to stockhold¬
the
offering was an¬
nounced
the
ers, and Georgia Power Co.'s pjrestock was selling
fferred exchange undertaking. •
around 391/2. Since then the divi¬
;
..

since it is to be

"Whether

exercise
such
"rights" was in 1946. In this in¬
to

^ since 1938, is the type which
bankers really like to work on,

nist world.

1

time the parent

last

failed

pany

stance

that basis.

/

corn-

1

pressive fact about the Commu¬

of those occa¬

one

are

marking the

"While the American
economy has been
shrinking, the Soviet economy has been growing
fast, which is one of the most important facts in
the world situation. In the
long view it is probably
a more
important fact than the
development of Soviet military
power.
To many people in the
underdeveloped countries of the
world it is the single most im¬

The Exception

Every¬

issue,

Strange Reasoning!

selves

to "fishing" in

seems given
qffort to. see

large

equipment

permit pricing of such
at levels attractive to

observer

one

as

This

first public financing bv the

Southern

working for about $2 or
slightly less, a bond. Well, the
offerings
group which finally captured the
the- investor.
;
issue, had an indicated spread of
The
new
issue market, it is about $5.20 per bond in which to
quite evident, still- lacks "punch" work.
will

that

general

corporate purposes.

yf

43

plains

complained-of** Stinginess1 toward Pakistan develop¬

our

ment viz-a-viz our
-

,

i

•.#

*

'}

relative liberality to India.

.J'

Recognizing these rddlisUc 'drawbacks, and threats still exist¬
ing in a realistic wdfld, it mxist be appreciated that even the pres¬
ent fanfare may merely draw forth a trickle rather than the needed
torrent of across-the-seas capital investing!

>'

of

420 Lexington

America

Avenue, New York 17

Dividend Notice
Board of Directors held

At A meeting of the

today, a dividend of thirty
declared

on

cents per share was

the $1 par value stock of the Cor¬

poration. payable November 16, 1954^ to stock¬
o'clock p. m., Novem¬

holders of record at 3:30
ber

5,

1954.

Checks will be mailed.
B.

Dated

O. BRAND,

September 28,

1954.

Secretary.

44

The Commercial and Financial Chronicle... Thursday, October 7, 1954

(1428)

that the Administration
shenanigan suits of this
However, as busi¬

course,

BUSINESS BUZZ

plans

no

character.

observers view it, the Eis¬
Administration
has

ness

enhower

considerable

shown

courage

against ever-present threats of

A
g~t
XX I

Behind-tiie-Scene Interpretations
Nation'* Capital

from the

f

demagogy, in generally avoiding
attacking bigness as such or

' \

Mm vlv

mergers.

t

(This column is intended to

tion

of

government

new

a

act

able

Urban

of

Program

the

and
Home
Finance
Washington 25, D. C.,
pamphlet can be ob¬
tained by writing a request for
Agency,

ene

not

the

to the HHFA

-ATor

that

reasons

Administrator.
may become

tains information that

should be
>

Rent Control and

the

municipal

future

all

-over

de¬

doesn't

city

a

Access

(2) Special FHA insurance on
-mortgages made to finance
projects for the renewal of de¬
teriorating neighborhoods, or to
finance the housing of families

the

barrel-head.

This is the heinous

"mortgaging

cash

consciences

eous

However,

investor

dent

during the

on

followed

OPA

As the release

viate

provides that
be made

future

and

their

prevent

development,

Administrator
Attch

Adminis-

workable plan to elimi-

slums

and

determines

meet

programs

the
that

the

re¬

was

Municipalities must hereafter
selves

.and

to

or

have adequate health

building codes, they
comprehensive
plans for community develop¬
ment, prepare analyses of blight
and

'

'

assure

,

.

HHFA of their financial

capacities to live

up

to their

sponsibilities to the HHFA,

re¬

un¬

dertake to house displaced fam¬

ilies, and to be

minority

sure

groups.




sure,

to include
..

;

;

new

impress the peo¬
ple of its firm stand for those
relate to mother love,

God, and
country. It relates to such ques¬
tions as being opposed to big
monopolies.

thing look particularly good.
In

admitted

to

this

the pro¬
Bethle¬
Youngstown Sheet &
Tube, he probably incidentally
licly

credit, with Uncle Sammy

hem

profitable

taking all the capital risk,
the

only

could get going in any
Yet

strangely,

was

sition

the

the

the

tion, nor the Administration it¬
self, has ever admitted that the
ever-present fear of rent con¬
trols was always in the back¬
ground of the whole situation.
In fact, it was not until 1953
when the conservative Republi¬
cans, without the backing of the
White House, defeated for the
time
being the prospect that
rent control might again be re¬
vived.
Standby controls went
down to defeat only last year.
the

government

problem

of

high

rent control. This created

a

proponents

between

,

investment.

an

son

out

the

merger

and

could

have

made it OK with the voters

the

on

question by a
much uglier route. It could, for
instance, have about now
launched
a
large
suit
very
against a major American com¬
pany, or a series of suits, de¬
monopoly

signed
that
the

to

the

impress

the

Administration

is

times

tion, which in turn was solved
by "easy money" which in turn

When

a

per¬

and

N. Y. (paper).
Stock

Exchange

(London,

Eng.>

Official Year-Book, Volume 2—Thomas

Skinner

&
Co., Ltd.,.
House, Old Broad
Street, London E. C. S., Eng¬
land, and 111 Broadway, New
York 6, N. Y, (cloth), $33 (twa
volumes).

Gresham

Survey of United States Interna¬
Finance

tional

1953—Princeton;

University Press, Princeton, N. J.
(paper), $2.75.
Theory

of

Earl

Fiscal

Economics-

R.

Rolph—University of
California
Press, Berkeley 4,
Calif, (cloth), $4.50.
Truth

About

Council

Greece

for

National*

-—

Public

Enlighten¬
ment, 4 Alex. Soutsou, Athens,
Greece (paper).
Your Future in

Financing Higher
Education—An address by Wil¬
son
M. Compton—Council for
Financial Aid to Education, Inc.,,
6

East 45th

N. Y.

St., New York 17,
(paper).

on

suits, often not pros¬
to the end, and some¬
most
poorly
founded,

ecuted

new

Iron

—Tax Foundation, Inc., 30 Rock¬
efeller
Plaza, New York 20,

We have available
copies of

For such

by

American

Institute, 350 Fifth Ave¬
New York 1, N. Y. (paper)-

voters

right side of this question.

an

Analysis of

couple of decades.

have been the rule for the last

This

is

not

to

predict,

of

RIVERSIDE CEMEHT
CLASS B

COMMON STOCK

recently prepared by

THE OVER-THE-COUNTER

fUT

,1g«

sic°'

SPECIAL SITUATIONS SERVICE
This

analysis shows why this

stock

offers

portunity

Carl Marks

of
at

buying
rent

at

a

found

less

house
rent

than

enough

FOREIGN

to put
ceilings

& Co Inc

SECURITIES SPECIALISTS

50 BROAD STREET

TELi

»

NEW YORK 4, N. Y.

HANOVER 2-0050

TELETYPE NY 1-971

to return
and

the

Bethlehem

Administration

—

Steel

A copy

an

for

excellent

capital

will be sent

on

op¬

gains.

request.

whose thrift took the direc¬

imposed

sold

on

consolation to

of

brochure

undertaken with the back¬

housing officials will
privately, if not for the
record, that rent control prac¬
tically destroyed the business of
buying a house to rent to others

tion

necessary

problem, an absence of money
for apartment house construc¬

Most

as

po¬

Youngstown Sheet & Tube, but

"solved"
rents

as

a

most Ad¬

by

elections—the oppo¬

of

eve

It may be small

by the Eisenhower Administra¬

the

establishing

sition to big business.

building industry under attack

So

in

considered

ministrations

volume.

of

between

merger

and

succeeded

housing

neither

disapproved

posed

construc¬

way

multi-family

of

Brownell,

Herbert

when

Jr., the Attorney General, pub¬

corre¬

something sweet
like easy mort¬

spondent that
and

So

fact, FHA officials at the

time

This does not merely

positions.

Making of Steel, The—Illustrated

nue,

election year any Ad¬
must take certain

an

—

Public School Financing 1930-195#

positions and

the

make

Shows

ministration

construction

admit

of

blight in their
neighborhoods, have established
administrative organizations for
local housing suitable to
HHFA,

rented
period it must

didn't

which

rents

of easy money.

more

Voyage—Autobiograph
Doubleday
& Co., Inc., 575 Madison Ave^.
New York 22, N./Y./ (cloth),.
$4.50.
■
•
• ••• •- '

use

Opposes Bigness
In

wasn't
another

any money was

form of rent control of its own.

devise

causes

that

rule

that

It

an

ing of FHA insurance, and FHA
itself, as a condition to under¬
writing a project, imposed a

commit them¬

other

must

the

in general

apartment

However, most

quirements of the law."
fiave in effect

an

slapped

during the war period.
regulations pro¬
vided for slow, painful, exas¬
perating procedures whereby
owners of multi-family projects
could, by proving higher main¬
tenance
costs,
eventually get
permission to raise rents.
In the postwar era rent con¬
trol generally was made inap¬
plicable to new construction.
be

To

available unless the community

a

houses,

rent for

announcing the
pamphlet explained:

-trator

own

was

war,

for in the prewar

the

his

put

When rent control

whatever

to

pru¬

except possibly the luxury types.

Ho As We Say

presents

any

apartment

into

money

to

sell

could

house

give

Administration

The only persons

they

to

against the malpractices

of apart¬

owners

prospective investor. And an¬
other prospective investor, if he
had any common sense, was not
going to buy for the reason that
the building carried a level of

about

impossibility to entice

ing its ideas about city planning upon the city fathers of
many municipalities.

first

making

tion

who

rent control, it was virtually an

leverage in impress¬

can

whom

gage

for granted was that in view of

ized," but there is in prospect
4be polishing up of a very po¬
tent fiscal
gadget which will
-;give the Federal Government

law

the

so

ment' houses.

followed the
subject of housing in the post¬
war era, one of the things taken

<4) This is not listed in the
pamphlet, because it has not yet,
In governmentese, been "final¬

new

Eisen¬

the

to builders, econo¬

respondents

of these aids

Not

and

is

solution

new

words

mists, and even newspaper cor¬

ects.

"The

of

right¬

hower Administration.

(3) Federal loans and capital
grants for future slum clear¬
ance and urban renewal proj¬

stone

on

out" which has upset the

displaced by municipal action.

enormous

The

Apartment Owners "Stuck"

apartment

some

French

Fifth
Avenue^
N. Y. (paper),'

—P. W. Litchfield

generated alleged malpractices.

mortgage money, and

to

perhaps also the more than
clever one) to build a house for
less money than a "typical" war
and postwar 608 rental housing
project cost, and come out with

dized "low rent" housing.

King size ash tray—present to me from the
cleaning woman I"
*

got out.

the so-called housing

which the Adminis¬

with easy

Probably the most spectacu¬
these "scandals" re¬
lates
to
the
capacity of the
more than efficient builder
(if

subsi¬

future

to

a

many

lar phase of

Housing
and
Home
Finance
Agency, then a city loses:
(1)

"It's

tration has been airing.

-g»lan its future development in
a manner which brings
smiles
jto the faces of officials of the

Infor¬

and

the

of

Industrial

"scandals"

hereafter

If

972

New York 21,

on

control

velopment.
/

so

Press

Service

Embassy,

things
the short

is

town

ress—Service
mation

/

places have

high

least the
large veto

a

;
,

people in
of events of
less than a decade ago. An in¬
stance is the virtually complete
ignoring of the influence of rent

memories

At the very

has

this

about

story

of economic and technical prog-

One of the fascinating

through the HHFA, is going to
TKave a whale of a lot to say
-about the future of urban devel¬
^government

France Moves Forward: The

Housing "Scandals"

Housing Act of 1954, the Gov¬
ernment of the United States,

opment.

Place, Ithaca, N. Y*
(cloth), $4.50.

124 Roberts

;

control, but mere beneficent aid.

<

under

hereafter,

For

Kahn—Cornell University Press,.

for the ap¬

way

propriating of a few billions to
aid localities to con¬
struct school buildings to relieve
overcrowding
of ; schools.
At
first it will also be asserted that
what is aimed at is not Federal

mortgages under
-circumstances affected by ther
Housing Act of 1954.

be under

will

Policy

.—Joel B. Dirlam and Alfred E.

drive

full-fledged

a

Antitrust

of

merely

targe-scale

-new

1956

In

The Law and

Competition:

Economics
,

placing

institutions

to

interest

Fair

to be

recalcitrant.

would be of

even

or

and

insurance,

loans,

other benefits to entire commu¬

authority bonds, but prospective
:f»% '-later issues of municipals con¬
nected with housing or urban

renewal,

plan¬

all city

over

power

grants,

merely public housing/

not

thing to de¬

nities which might prove

intimately familiar to any house
Adhich handles or plans to han4Ue

only from

took

ning, at least the power to work
its
will
or
withhold
funds,

pamphlet .con¬

this

apparent,

It

1949 to 1954 for the

velop into a scheme whereby
the Federal Government gets, if

Housing
-and

views.)

achieve

to

objectives.

Re¬

is

author

The

coincide with

own

local city gov¬
desirable

to help

ernments

"Localities Can Develop a

newal."

"Chronicle's"

passed in 1949, it was

was

heaven

pamphlet is entitled "How
Work¬

The

the

represented, as it were, as mere
manna from the Federal fiscal

jpamphlet.
•

and may or may not

major slum
public housing

first

and

clearance

publica¬

the

of

announcement

the

When

routine

apparently

the

-fcehind

flect the "behind the scene" interpretation from the nation's Capitat

Evolution of HHFA

"WASHINGTON, D. C.—There
is a lot more than routine news

i

re¬

maintenance/interest,
amortization,
he simply

the

price—a

house

at

practice

the

Inflated

made

easier

1

-C<v'4v

"II

i

,

TTT—■■■»«.■■;»

LERNER ( CO.
Investment Securities

10 Post Office

Square, Boston 9, Mass.

II

Telephone

v
V

HUbbard 2-1990
.

..

...

.

..

-

■

Teletype
BS 69