Full text of Commercial and Financial Chronicle : October 9, 1952, Vol. 176, No. 5158

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AMERICAN BANKERS ASSOCIATION CONVENTION ISSUE
UNIVERSITY

Reg. U. S

Volume 176

^

Number 5158

New

Pat. Office

York, N. Y., Thursday, October 9, 1952

Price 40 Cents

a

Copy

EDITORIAL

The

We See It

As

American

We

beg leave to present the following two
paragraphs from a recent address of the Repub¬
lican candidate for the
Presidency as worthy of
the most thoughtful attention of all Americans
with the good of their
country and of the world

We

Korea
in

are

far from

loss

in

What

itself

have

our

of

must

the

a

of

sound financial

young

It is not

men.

million,

can

fantasies.

no

his enemy.
Asians

that

ceased

disturb

to

directors
board

were

the continent of

.Asia—then, of

of events

course, we

tended

as¬

on

f

to

on

different,

Francis

Cocke

to create the

The
of

but

the

faith

\

hold

\
DEALERS

American

and

address

An

the

banker

credit

by

American

September 30,

ARTICLES

IN

Annual

Mr.

was

which

concerned
was

the

with

the

lifeblood
on

flow

E.

D.

of

this

page

Bank of Des

22

page

Convention

14,

other addresses made

of the

American

Bankers

Gladney

its

as

new

President, W.

Moines, Des Moines, Iowa;

as

Vice-

President, Everett D. Reese, President of Park
National

before the 78th Annual Convention
Association, Atlantic City, New Jersey,

ISSUE—In addition to the material

on

B.

approximately 99% of its bahking assets.

Bank, Newark, Ohio, and reelected
Continued

1952.

THIS

Wm.

Reese

Harold Brenton, who is also President of the State

Cocke

Bankers

present in this issue, starting
the 78th

Brenton

The Association elected

money

*

Harold

W.

greatest productive machine the world has

Continued

42

ABA

They represented in¬
section of the nation, which

The problems

us.

known.

should

MORE
we

Annual

78th

ing ancestors

on

page

J.—The

by 6,500 members.

stitutions from every

tables.

were purely domestic.
They were problems of a young
economy that often experienced growing pains, with a
rapidly expanding population, a receding geographical
frontier, and the marriage of science and. industry

of

Continued

N.

ours

•

owed it to ourselves and to the
course

CITY,

Most of the problems of our bank¬

-

C.

but it is obvious enough that we
slow in getting at these tasks. If, in¬
deed, there is any real validity in the supposition
we

.'v.:'.7

which produced the courage to solve
them was the same faith that we
need today. ■

course,

world to interfere with the

.

.

Convention of the American Bankers Association,
held here from Sept. 28 through Oct. 1, was at¬

very

that somehow

.

and

they passed

current dispatches are to be taken at face
value, systematic effort is now being made and
has been for some time past to mould a real army
from among the South Koreans. Front
dispatches
assert that some of these troops are now first
class. Precisely on how large a scale all this is
being done now at the eleventh hour is not known

of

the
our

•

ATLANTIC

day have long since

around

'

did solve their prob¬
this country was helped
grow because of them and what

lems,

If

were

to

cestors of

the side of freedom."

to us,

By A. WILFRED MAY
'u\

Hindsight is always better than fore¬
sight/and. we can probably find a
great deal wrong with what they
did; nevertheless/these banking an¬

If there must be a war there, let it
against Asians, with our support on

be

com¬

good banker in this
and the world have

banker of

of the West is

man

a

role

sembled

in the United

feel that the white

of

changed so
the bankers of a century ago
would hardly recognize us. The major problems of the

Nations, with
America bearing the brunt of the thing,
being
constantly compelled to man those front lines.
That is a job for the Korean. We do not want
Asia to

Our

century.
much that

do, first of all, is to make certain
Koreans, of whom there are
be prepared to defend their own

sense

indications

of

.v..

front lines.

"There is

Scores

simple matter to be

a

mid-twentieth

that those Southern
20

elected President. Addresses published in full herein
Secretary Snyder; Senator A. W. Robertson; C. Fran¬
cis Cocke; Joseph M. Dodge; Joseph E. Perry; H. Fred¬
erick Hagemann; Joseph W. White, and Walter E. Hoadley, Jr. 1953 Convention to be held in Washington, D. C.

ton

placency toward easy way of financing Federal deficit
through banking system. Urges bankers avoid succumb¬
ing to "governmentitis" through laziness and indifference

terrific

our

members from all sections of the nation. W. Harold Bren-

Outgoing ABA President traces complete transformation
of old world, emphasizing need to discard current un¬

we are

blood

Meeting held in Atlantic City, New Jersey, attracts 6,500

President, First Nat'l Exchange Bank of Roanoke, Va.

problem.
waging a war
shores, at great expense and great

position where

a

terms

we

we

Banking Annual Convention

By C. FRANCIS COCKE*

at heart:

"In

ABA Holds 78th

Challenge to

the

on

cover

during the

on

page

as

44

page,

course

of

Association.

State and

in

WESTERN

U. S. Government,
Stale and

Municipal

Securities

Municipal

OIL & MINING

Pacific Coast &

Bonds

SECURITIES

Hawaiian Securities

HAnover 2-3700

telephone:

Direct Private Wires

Chemical
BANK & TRUST

Bond Department

Dean Witter
14 Wall

COMPANY

Co.

&

Street, New York, N. Y.

Members of

THE NATIONAL CITY BANK

ESTABLISHED

Principal Commodity

50 BROADWAY

BOND DEPARTMENT
San

Francisco '•

Los Angeles

Boston

•

•

Chicago

Los

Dept. Teletype: NY 1-708

NATIONAL BANK

BROKERAGE SERVICE
Brokers and Dealers

to

Net

Branches

in

India,

Aden,

New

Members New

30

Broad

York
York

St.

Stock

Exchange

Curb Exchange

New York 4

Reserve

and

Capital
Capital

and

'

Tele. NY 1-733




"

*

Markets

NATIONAL
OF THE CITY

BANK

OF NEW

YORK

other Western Cities

CANADIAN

Melville Shoe

BONDS & STOCKS

Corporation

Securities

43/4% PREFERRED

Executed

Analysis

Exchanges

description of

Doxmiox Securities
Geporatioti

DEPARTMENT

GOODBODY

£3,675,000

ESTABLISHED

&

CO.

1891

MEMBERS NEW YORK STOCK

EXCH.

40 Exchange Place,

business.

Trusteeships and Executorships
Tel. DIgby 4-7800

Orders

Canadian

CANADIAN

£2,281,250

exchange

Denver
Spokane

upon

request

Somali-

^£4,562,500

Fund

The Bank conducts every

banking

On

U. S.

Canadian

Or

Ceylon,

Protectorate.

Authorised

Paid-up

In

Kenya, Tanganyika,

Zanzibar,

land

Members-

Pakistan,

10

,

securities

in

26, Bishopsgate,
London, E. C. 2

Uganda,

& Co.

Government

Office:

Burma,

Hardy

the

Kenya Colony and Uganda
Head

for Banks,

canadian

of INDIA, LIMITED
Bankers

NEW YORK CITY

Angeles
and

STOCK and BOND

•

Salt Lake City

Bond

Honolulu

CHASE

THE

1915

Members of All Principal Exchanges

OF NEW YORK

and Security Exchanges

30 BROAD ST., N. Y.

J. A.H0GLE & CO.

also undertaken

/

115

BROADWAY

NEW

YORR

1

NORTH

New York 3, N. Y.

.

•

Members
and

New

Teletype NY 1-702-3

WHltehall 4-8161

111

Boston

York Stock Exchange

other Principal

Exchanges

Broadway, N. Y. 6

WOrth 4-6000

LA SALLE ST,

CHICAGO

IRAHAUPT &CO.

Teletype NY 1-2708

Telephone:

Enterprise

1820

2

The Commercial ancl Financial Chronicle

.

.

Thursday, October 9

.

(1314)

1952

'

^E

The

WE POSITION and

1982

participate and give their

5l/z/52 & Common

reasons

they to he regarded,

are

Polaroid Corporation

Trust

Boston, Mass.

Central Illinois Electric & Gas

Nashville, Tennessee Electric Power

For

Common

&

girl

General Telephone
Conv. Pfd.

Common

&

&

Rights

Michigan Gas & Electric

foresaw

the

tremen-

u s

o

10 years

New York Hanseatic

and

the

Established

their

1920

N. T. Curb Exchange

120 Broadway,

these

New York 5

Teletype NY 1-583

has

sizable

its

without

Rights & Scrip
Since 1917

business

the stretch-out will carry

^CpONNELL&fO.
Members

Stock

York

New
New

.

Exchange

Tel.

5

YORK

NEW

2-7815

REctor

There are also signs that
expansion in our industrial

planned.

begin to taper off. The
day may not be too remote when
the petro-chemicals, newer synthetic fibres, plastics, agricultural
chemicals, etc. will follow
the
plant

may

of

Bassett Furniture Industries

will

stocks

for

awhile

likely

Then the
growth

at

and

least

fall in market price

a

will ' accompany

Camp Manufacturing

their

fall

from

Y.

Stock

Y.

Curb

N.

Members

The

Life Insurance Co. of Va.

SIR ADER, TAYLOR & CO., Inc.

and

Lynchburg, Va.

the
LY 77

all

is

duction

of

Co.

road

forum

as

1951

the candidate for this

I

question

,

with

the

,

electric
the

City

can

pretty well supply the

of

ot

bonds

revenue

power

Nashville,

Tennessee

pro¬

•

Recent Price

and

earnings

year

*^52
Net op*

year totaled
crating revenue, before deprecia-

tion,

than doubled

more

^eri<^

r,°rr,p

during

m the

1952

^iod
u?S sufficient
covf
peak debt service requirements
including the latest issue of bonds
sold

Sept.

2,

1952,

2.11

times,

18%

Report available

permanent

im¬

i

provement
under

s

way,

resulting from
reor¬

ganization and
complete
physical
h

plus

N.

7-0425
Y.

:

9, Mass.

Teletype BS 250

Telephone WOrth

4-5000

r

r e-

Missouri Pacific R. R.

aggres¬
of

Commc.i,

as

ex¬

a

mar¬

&

Bonds

Common

&

Rights

Georgia & Florida R. R.

consistently

now a

Rights

Iowa Public Service

for

ticularly

coal,

Common

Foote Mineral

par¬

sources,

No longer

Old

new

traffic

freight

plained below.
ginal road, but

CA

develop¬

ment

Lawrence Klybert

148 State St., Boston
Tel.

bilitation,

a

sive

6's-1946

Series

A

profitable, soundly financed, 868mile north-south

line, C. & E. I. is
keystone in the na¬

veritable

a

Gekstex & Frenkel

tion's railroad network.

Members

The
From

System

130

Chicago, C. &. E. I.
along the entire

runs

south

due

ville,
a

Ind.,

off

through Fincilay in

goes

Illinois

tral

Mississippi,
line

while

south

runs

Thebes and
branch

Louis

St.

to

Traders

Some

of

railroads

big

St.

Louis

Island,

bash,

the

thd*-

&

Oil

are

the

been

Illinois

Belt,

east-west
I.

E.

Central

both

mentioned

with

Wa¬

and

K.

at

Rock
T.

Data

fastest

request

on

GREENFIELD &

which

have
talk.

CO.,

.»c.

Member Nat'I. Asso.of Securities Dealers, Inc.

40

Exchange Place, New York 5

and

merger

of
in

Company
Oklahoma's

Among

Frisco,

and also the M.

Cotton

of

One

growing producing companies

it connects

ones

Dealers

American States

main
Fmdlay to

major

C.

cross

the

—

cen¬

on

the Ohio River.

on

Tel. NY 1-1932

WE RECOMMEND

Chaffee, with a short
leading off to Joppa,

line

Dealers. Assn.

New York 7

Tel. Dlgby 9-1 550

anotaer

from

Security

Illi¬

River.

Ohio

the

on

Y.

N.

Broadway

multiple southwestward branch-

all

<??i 747*099
$11,747,922.

ade-

I think that

.

,

.

What

arises,

commensurate

quate security?

the system in the 1941 fiscal

income securi-

fixed

buy to obtain the highest

yield

Chemical Corp.

Per

In

A

nounced

About one-third of the way down,

^las

securities.

Dividend $2

customers have increased from
45,334 to 84,441, and what is more

in

Mos. Earnings $1.47

6

•

as

nois-Indiana borderline to Evans-

customer

10.5%

•

up

Residential

per

offices

Earnings $4.01

fol¬

summed

lows:

of acquisition.

use

branch

our

V
Yield

financial

expansion.

57

TEXTILES, INC.

.

rapid

to

•

be

can

wires

•

Municipal Power system in

Since 1939 the system has shown

NY 1-1

La.- Birmingham, Ala.

of

Peabody

Power requirements are obtained from the
TVA under a contract expiring
in 1959. This contract provides
tor power in quantities sufficient
to cover maximum requirements
°t the system. The City Power
Eoard has the right to establish
rates at all times sufficient to
provide revenues to meet all of its
obligations.

intro-

that

„TI

the

ties,
shall

Nuclear Instrument &

of

way

thought

income

fixed

field

by

the

to

St., New York 4, N. Y.

Rail¬

Eastern Illinois

&

Univer¬

increased from 1,473 KWH
year to 6,482.
This latter
any
well
rounded
investment figure compares with a countryportfolio a balance should still wide average of 2.004 KWn m
be
maintained
between equities
1951- Gross operating revenues of
This

Dan River Mills

Exchange

Curb

Exchange
Exchange

for my selection

reason

Chicago

present form goes back to 1939

a

Exchange

York

Direct

City

Chicago & Eastern Illinois RR. Co.

a

Vanderbilt

and

important the

grace.

Commonwealth Natural Gas

TWX

N.

Members

College,
Meharry Medical College and

cost

York Stock

New

Mobile, Ala.

York

Co., New

Jssued $15,000,000 bonds to cover

the

off

be

the

into

over-supply.

bloom

very

antibiotics

the

of

field

American Furniture

LD 39

than

riod

lead

Trading Interest In

for a further pehas
originally
been

ahead

activity

the

Yqrk Curb Exchange

BROADWAY,

120

with

Josephthal &

of

reversal

temporary

a

Members New

Members

LAWRENCE KLYBERT

when the city took over all the
the trend
We hear now that the electric
distribution
properties
defense
program
has about formerly owned by the Tennessee
reached
its peak and while
the Electric Power Co. located in
stimulus from this'factor will not Davidson
County together with
increase to any appreciable extent, small adjacent areas. The system
least

at

Steiner, Rouse & Co.
HAnover 2-0700

duPont

George

Tne

Campjeii

C.

Stuart

2)

plants near
prominent
center, being the seat

in

Fisk

others.

much

go on

city

Tennessee

center

city. Nashville is

the

longer this can

Specialists in

in

manufacturing

a

The

system.

second

ranks

sities,

There is doubt

RR.

25 Broad

good

of

gains.

how

electric

educational

rather

(Page

Now a word about the Nash-

the

shares,

now

Illinois

New Orleans,

produced

and

purchased

Eastern

&

be 5.92%.
ville

Bought—Sold—Quoted

Co., Boston,

taxable bond would

fully

ings,
fertilizer,
structual
steel
fabrication, vehicles and chemi¬
cals.
Cellophane and rayon are

and

Department.

Trust

Co.—Lawrence Klybert, Josephthai
&
Co., New York City.

not

hosiery and textiles, men's cloth¬

net

ilk,

but

$20,000

C.

(Page 2)

Chicago

with surtax

diversity of industry, in¬
cluding
printing,
shoes,
stoves,
coffee
roasting,
meat
packing,

Dows,

santos,

over

Power

Stuart

—

Trust

Street

Mass.

$22,000, the equivalent yield

a

as

duPonts, Mon-

Corporation

on

a

both

in

gross

income

itself

expan¬

ahead

for

For instance

so-called

sion which lay

request

on

investment field has
growth stock.

the

the

ago

a

Puget Sound Power & Light
"Prospectus

the glamour

now

Admittedly anyone who

Iowa Public Service
Common

of

been

creases.

over

time

some

as

net

Revenue Bonds

Eastern Utilities Assoc.

BArclay 7-5660

State

Electric

Bonds

Campbell,

increasingly more^ at¬
the tax bracket in¬

be

tractive

iV.Vama &

S'.;

Selections

Tenn.

Revenue

bond

municipal

this

course

would

Dept., State Street Trust Co.,

Arkansas Missouri Power

Associate Member

Nashville,

1964

Of

Participants.anv

Louisiana Securities

particular security.

a

are not intended to he, nor
offer to sell the securities discussed.)

as an

STUART C. CAMPBELL*

Conv.

for favoring

Week's

Their

(The articles contained in this forum

American Tel. & Tel.
% %

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

in the investment

Central Public Utility

3

Forum

A continuous forum in which, each

Standard Oil of Indiana*
3%%

Security I Like Best

IN

TRADE

This

HAnover

2-9290

Other
Circular

Request

on

to

question.

First

(Republic Investment Company, Inc.
Investment

this

the

Average annual debt service
the

question

Why purchase

Securities

answer

arise,

may

tax-exempt bond

a

period

been

1953-81

covered

times in

would

over

have

approximately

5.93

big lines connect at EvansActually at more than 100
points of intersection, freight is

ville.

interchanged

LASALLE

SOUTH

CC 2197—CG 1614
Direct

tax

Telephone

Wire

Mackie,

FRanklin 2-1150

Singer,

to

Inc.

Beane

6c

in

am

bracket?

CHICAGO 4
Teletype

I

unless

STREET

A

glance

tax-free

a

equivalent to

high

very

at

of

will

show

yield of 2y4%
yield

a

is

taxable

on

The net plant account
30,

1952

debt

totaled

of

$16,465,000

securities of 3.17% based
income

net

of

on

yield of 3.17% is roughly
1856

able
from

H. Hentz & Co.

what

to

the

surtax

only $4,000.

might

be

purchase of

This

and

protective

are

obtained

ing issuance

of the

maintenance

covenants

of

ance,

and appointment of

Con-

rev-

provision for annual audits,
a

receiver in

Members

solidated
New

York

Stock

Exchange

New

York

Curb

Exchange

York

New

Cotton

Chicago
New

Board

Orleans
And

of

Cotton

other

Inc.
Trade

°

Exchange

Exchanges

Exchange Bldg.

NEW YORK 4, N. Y.
CHICAGO

DETROIT

GENEVA,

PITTSBURGH

SWITZERLAND




Co., N. Y., Ohio

Cleveland
Co.

Electric

and others.

case

of

any

default.

the

of 3.17%

transplanted

tax-free counterpart of

from

a

bond

of

the

—

rolled
one

tion to another—with
costs and

a

no

minimum of handling

&

I.

emerged

reorganization

in

from

77-B

ligations with $11.2 million of
1st

3%s,

and

$15.4 million

Income

5s

—

and

in 1972.

*Ed. Note: The views expressed by Mr.
neces-

State

primarily

or

high

domestic

resulting

from

about

followed

"A,"

$2

Dividend

23%.

by

These

bonds

383,751

Class

Cumulative

Shares;

and

the

of all

rears

the favorable

yield offered, the Nashville.,

Tennessee electric

powei

revenue

bOllds COmmend themselves

as

ail

mid-year
on

the

clear-up

ar¬

National Quotation Bureau
Incorporated

"A" shares, the four

quarterly 1952 dividends

clared, providing

were

Established 1913

de¬
46 Front Street

a

yield of 9%, at

.

attractive tax-exempt investment.

for 39 Years

411,166

tive

as

Quotation Services

Preferred

trend of earnings and the attrac-

well

Over-the-Counter

then, there has been accomplished

Following

as

5, N. Y.

Teletype NY 1-2630

new

since

Common Shares. (Note:

low rates;

HAnover 2-9335

Con¬

5s,

usage

WALL STREET

replacing

1941,

lion 1st 33/4s, $12.4 million Income

21/4%

JAMES M. TOOLAN & CO.

$42 million of Fixed Interest ob¬

acteristics of the territory served,

the

STOCK
Invited

NEW YORK

the essential nature of the service
and

Inquiries

67

Capitalization

II-

supplied

COMMON

over

expense.

E.

Sioux Oil Co.

connec¬

terminal

This

into

Producing, Refining
Distributing Company

is

further reduction to about $8 mil¬

Nashville,

Campbell are his own and do not
sarily reflect the opinion of the
Street Trust Company.

traffic

C. & E. I. lines from

or

In view of the favorable char-

just about what can be obtained

Tenn. electric system due

to, other lines,

"overhead"

are

yield

is
N. Y. Cotton

Edison

luminating

delivered

or

vertible

Co., Union Electric Co. of

Missouri,

Exchange

Exchange,

Commodity

Power

traffic,

freight handled is received from,

C.

bonds,
insur-

adequate

known

as

50

Evidencing the "key¬
bridgeline nature of its
is the fact that 85% of

regard-

of additional

longer term issues of such well-

private companies

All bonds

of the electric system. There

compar-

any

to

equally secured

are

payable solely from

are

enues

and

equal

was

only 62% of this figure.

of the system

of June

as

$26,733,938

York

New

Established

tax

table

a

yields

equivalent

that

a

than

more

other lines.

1952.

stone"
231

with

A

and

Continued

on

page

43

CHICAGO

New York 4, N.Y.
SAN

FRANCISCO

Volume 176

Number 5158

.

.

.

The Commercial and Financial Chronicle

(1315)

Electronics for Defense

IN D EX
i

'

.

Industry

By E. W. ENGSTROM*

Vice-President in Charge of RCA
Laboratories,
Radio Corporation of America

'

.

,

And Peacetime

Page

Electronics for Defense and Peacetime
Industry
—E. W. Engstrom

AMD COMPANY

'

3

'

.

THE LADY VANISHES

.

'

"Prominent scientist reveals

recent

cation of electronics for both

Sees television

Upgrading Earnings
y—Ira U. CObleigh

•

developments in the appli¬
military and civilian purposes.

The

the Number 1
opportunity in peacetime electronics, and points out revolution in electronic
equipment due
to

<

-

and

in

an

objectives

in

these

.increasing importance.

times.

key role of

a

Thus,

Appraising the Complex Outlook
■

other,

grow more and

ever-

in

more rapid
operation. The reaction
time becomes too fast for human

to

•

proximately
for

lated

to

a

The

The
tain
Dr.

War II.

E.

Engstrom

-

is

expected

to

ear¬

mark
more
than $4
billion for
electronic equipment in 1952. This

figure will be
other

adds

higher if

even

governmental

services.

order for

This

the

quite

an

billion dol¬

a

Not

only in volume but in
adaptability, the industry has made
an

of
at

impressive showing. Production
military electronic items is now
rate

a

at

times that existing
outbreak
of the
Korean

the

seven

And

war.

items

all

of

are

design. As

an

peacetime
now

but

of

these

improved
industry providing

services,

ranks

with

the

public

1951,

5%
and

new

electronics

the

leaders.

paid

In

close

to

$5,000,000,000 for its products and

services, including radio and tele¬
vision broadcasting.
Such
does

activity,
take

not

justments. Let

such

place

expansion

without

ad¬

then, what

us scan,

I consider today's
Number One
problem in military electronics.
As

instruments

new

cles of

and

vehi¬

and

communication

nervous

into

system of mili¬

tary might. More and

basically different
drove

the

more,

Let's

more

from

chariot

elec¬

speed of military vehi¬
Man's

mind

interprets vital data too slowly to
keep track of many modern weap¬
and

vehicles. The ultra speed
of electronic detectors,
and controls is
*An

111.,

address

by

Mr.

Electronics

Sept.

29,

computers,
mandatory.

now

,

14

Protecting the Trust Beneficiary—Joseph W. White

16

power¬

not

are

or

Let Us Extinguish the
National

•

man

Engstrom at the
Conference, Chicago,

man

■

Dollar and Political

Cites Failure of

unchanging

in

length.

constitutes the

the

even

So far
and

we

leg

we

as

the years,

months, have

gone

See It

Canadian

The leg is varying

in

length and seemingly always
becoming longer—the equipment
complexity. Thus if we are to
other

normal closed

.

not

so

grow in length with
complexity leg. What is this
third leg of the triangle? It is the
reliability factor of the equipment

system.

If

complexity inreliability, in,
order to keep the
triangle closed.
The reliability
leg must always
keep up with the complexity leg
must

so

to be. of any

are

ingenious

circuit

in

the

world

is

if

fighter

plane

that

the

on

deep

incor¬

its way to meet

electronic engineers have

responsibility

operator

—

here.

Let

complexity

liability. A useful
achieved

tions

of

bility,

only
a

the

49

Coming Events in Investment Field

under

closed

leg

result

—

will

Private Wire to
;

.

-

•

•

Glens Falls

the

re¬

that

gives
on

Schenectady

CROWELL, WEEDON &

LOS ANGELES, CALIFORNIA




46

HA 2-0270

12

i

NSTA

Notes

Observations:—A. Wilfred May___

54

Governments

30

Prospective Security Offerings

52

page

Securities

the

Salesman's

Corner.

36

—

Securities Now in Registration

Security I Like Best:.

Tomorrow's Markets

*See article by Mr.

25

B,

Park

Place,

May

on

REctor

1

Drapers'

Gardens,

CO.

London,

E.

C.,

Eng¬

WANTED

land. c/o Edwards & Smith.

Copyright 1952 by William B. Dana
Company
ary

7,

N. Y.

SEIBERT,

Thursday, October 9,

as

second-class matter Febru¬

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

1952

the

panies
For

huge

to

OVER

read

S.
of

Pan-American

Union, $45.00 per year; in
Dominion
of
Canada,
$48.00
per
year.
Other Countries, $52.00
per year.

by

ings,

monthly

pocket
prices

companies.

Also

notes,

free

initial

stock

memos,

to

learn

growth

com¬

Funds

sell.

subscription
SECURITIES

of

include

earn¬

hundreds

of

industry anal¬
public offerings,

index,

literature

magazine

size

Features

and

utility

mutual

year's

COUNTER

-

thousands.

comment,

where

Mutual

receive

dividends

unlisted
yses,

where

THE

-

wants

OVER-THE-COUNTER

MARKET

you

$3.50

who

woman

start,

$3.50

REVIEW,

Subscription Rates
Subscriptions in United States, U.
Possessions,' Territories and
Members

or

SECURITIES

1879.

President

man

about

25,

York,

9576

to

-

and

COMPANY, Publishers

2-9570

DANA

56

Cover page.

Weekly

York

Liquid

DIgby 4-2727

CHRONICLE

New

—

Exports—Imports—Futures

From

DANA

Refined

—

10
...

COMMERCIAL

WILLIAM

Worcester

SUGAR

5

(Walter Whyte Says)

Washington and You

FINANCIAL

5, N. Y.

2

.

The State of Trade and
Industry..

The

STREET

50
Raw

The

36

WALL
NEW YORK

34
34

HERBERT D. SEIBERT, Editor & Publisher

•

LAMB0RN & CO., Inc.
99

Public Utility Securities

Securities

1-1826

*

Our Reporter's Report
on

Exchange PL, N. Y. 5

8

—

Our Reporter

40

Teletype NY 1-1825 & NY

be

condi¬

us

Singer, Bean
MACKIE, Inc.

&

.

TELETYPE N. Yr. 1,5
•

7
47

,

Railroad

triangle. Relia¬

ST., NEW YORK 4, N. Y.

TELEPHONE HAnover 2-4300

•

10

Mutual Funds

a

us

Light

8

—

News About Banks and Bankers

Sulphur

Puget Sound Power &

8

Indications of Business Activity

.

Mexican Gulf

56
1

—_

keep in mind this simple triangle
—

Bookshelf-

Securities

good

no

target.

All

Cinerama, Inc.
44

From Washington Ahead of the
News—Carlisle Bargeron

defined, must

Corp.

Cover

Einzig—"Adverse Factors in Sterling Exchange Situation"

far

the

and

and Research

Dealer-Broker Investment Recommendations

triangle, the

leg, which I have

creases,

49

Bank and Insurance Stocks

Business Man's

a

,j

(Editorial)-

man

have

30

(Boxed).

leg of the triangle. The
base is relatively fixed—the hu¬
operator.

Detroit

•

Associated Development
As We

by.

Los Angeles

•

Chicago

6

Regular Features

have specified the base

6

Teletype NY 1-3370
Direct Wires

■

one

Members New York Stock
Exchange

Chicago

Broadway, New York

26

Monetary Fund

know,

as

Spencer Trask & Co.
•

61

complexity of the

system and this leg,
has grown in length
or

One

Of Course!

Reentered

Boston

Reilly & Co.
Incorporated

West Germany Economy Now at
Turning Point

WILLIAM

•

J. F.

24

Integrity—Hon. A. Willis Robertson

Reg. U. S. Patent Office

Albany

20

Aid—Joseph M. Dodge 22

Philadelphia

PREFERRED STOCKS

BROAD

Cinerama, Inc.

18

Banking Problems in Our Defense
Economy
> —H. Frederick Hagemann, Jr

Published Twice

25

Reeves Soundcraft

situation

the
radar
operator, or the jet
pilot. This base we shall assume is

(Continued

have specialized in

Mexican Gulf Sulphui

BO 9-5133

pulled

by a triangle. The
triangle represents the
behind the anti-aircraft
gun,

1952.

For many years we

Hoadley, Jr

Debt—Joseph Earl Perry

Problems of Foreign Policy and
Foreign

of

represented

its

carriers.

Postwar Achievements and the Year
Ahead
—Hon. John W. Snyder

The Year Ahead of Us—Walter
E.

■

base of the

merly performed by man's mind.
This is a requirement of the in¬
in

,

not

the

that this

assume

porates it fails

and

Haile Mines

;

the cross-bow.

tronics is assuming functions for¬

National

the

.have

service at all. The most

ons

mind.

Because

contact

the central

cles

of /;

longer,

equipment
however.

13

Full Texts of ABA Addresses in
This Issue

complex.

if these
weapons

war

ever

crease

and

senses

ful, but they, themselves,

is

4-6551

11

—

Securities Market—Maurice N. Moes—.

?

;

■,

come into being, they
more-complex. Electronics
has grown from a simple means of

are

STREET, NEW YORK

9

;

TJhcT Challenge to American
Bankkig^-C. Francis Cocke——Cover

who operate and main-

men

this

who

WALL

Telephone: WHitehall

.

one

industry that in 1940

an

grossed well under
lars.

is

for Stocks

Our

become

more

changed,

invest¬

ment in electronics to support

three

'

>

.

electronics they are

The Defense

Department

W.

Obsolete Securities
Dept.

6

American Bankers Association Holds 78th
Annual Convention
—A. Wilfred May
Cover

rapid

over

slice in World
.

;;

be-L:

compute

chains

systems

the electronics

,

for

numerous

man's

substantial increase

factors

to control, and
finally
to
take
the
place

re¬

items,

related

interpret

communica¬
and

Wall

\

react
to

electronics,
tions

99

to

obsoletes!

,«

human comprehension. Thus electronics steps in—

de¬

10 cents go

too

come

ap-.

Babson.'

—Bradbury K. Thurlow

."•!• New

their

operation and

spent for

national

systems," which
competitive with each

Here,

Out

fense,

her

5

99

military

be

of each dollar
now

naturally

sell

The Securities Business—An Over
Regulated Industry

must

•.

..

Pocketbooks—Roger W.

:?•'—G. Keith Funston

of "de¬

era

industry"—inseparable

electronics has

But

to

4

•

and control."

fense

Where?

Street

Over-the-Counter Market—H. Neill
Brady

People's

minds, since it "has unlimited capacity to
count, remember,
we are

4

Government Ways of Attacking Profits—L.
L. Colbert

supplementing
or
replacing the electron tube. Holds electronics, more and
more, is assuming functions
formerly performed by men's

Today

i

as

of transistors and other
semi-conductors

use

the Water-Level Route

on

llBHIfOSTfll

B. S.

i

Articles and News

3

CANADIAN

service,

company

briefs.

Every

Thursday

(general

news

and

ad¬

vertising issue) and every Monday (com¬
plete statistical issue — market quotation

records,
state

corporation

and

Other

city

news,

Offices:

Chicago 3, 111.

135

news,

bank

clearings,

etc.).
South

Other

Publications

Bank and Quotation Record —
Monthly,
$30.00 per year. (Foreign postage
extra.)
Note—On account of the fluctuations in

the
La

Salle

8t.,

(Telephone: STate 2-0613);

rate of exchange, remittances for for¬
eign subscriptions and advertisements must
oe

made in New York funds.

YEAR'S

FOR
FREE

COPY

PIONS'

SUBSCRIPTION

"DIVIDEND

OF

SEND

ONLY

Over-the-Counter
Dept.

15A,

Securities

Jenkintown,

PLUS

CHAM¬

$3.50

to—

Review
Pa.

The Commercial and Financial Chronicle
4

this year, are all

.

Thursday, October 9, 1952

.

viously,

By IRA U. COBLEIGH,

ready to pull its

own

extolled

specula-

successful

in

necessity,

Central
mon,

be

com-

it must
admitted,

have

of-

been

fered

a

dogged

opportunity to
make like Job.
For

score

a

of

they've
waited;
and
they haven't
years

scored yet!

example,

For

N.

Central

Y.

h i t

common

Ira U. Cobleigh

1929; in

ing power.

1930 it

paid $8

while

Came

the

in

share

great rail-

erosion, and in 1936 CN sold

way

The

Succeeding
it to 55
again to 35% in 1946
for the past six years
23-year stock chart

for

those

for

market
in 1937
(with a
of 9V\).
on CN,

$6.75.

carried

surges
and
low

of

who fancy this type

maximum

into

translated

257 in

a

dividends.

lot of it has not yet been

a

Something

be

surely

should

it's

earn-

fashionable

mosi

which in

$117 lk

was

all U. S. Securities

Exchanges, Mr. Brady discusses trading

methods and operations of dealers and brokers in this field.

Stresses importance of

million.

ledemption is 1997, and its niortgage bond on the West Shore will
not come rattling around to the

pay-off window till 2361! Happy
birthday, Bernarr McFadden.

these

sources

with railway

trasted

gives

pointers for successful over-the-counter trading.
Trading of securities is the bar¬
gaining for, and the purchase and
sale of, that commodity at the best
In

price.

our

markets

chase

the

sell

listed

market

the

there

which

in

and

one

are

may

securities.

market;

that

is

pur¬

One

that

available

other is the

two
is

is,

the

On

ing income of around $40 million.
Just walk north on Park Avenue

to

on

the

over-the-counter

national

our

auction

system

from all

ket

history

serious

prelude

a

financial

to more
ailments?

0ff, the

pai^

little branch lines, in New York and his quick eye

an(j tank town passenger

stops on

spotted

store

a

room

laden

prevails.

logic
"t

will be
existing

fairly

express

offered to suggest
do not
the facts and the

quotations

it js below 40%
rail

diesel

ther

Senger

cars

are

right

now.

single
now

unit

Furpas-

being used

been

hanging around

point.

Yes,

around,

and

at

another

William White gets
he knows railroads

pay

would

that

were

be

executed

exchange and, as a result,

an

almost

all

trading is done in the

over-the counter market.

(8) Nearly all state and munici¬

pal issues.

(9)
all

Almost, without exception,
issues of origination find

new

initial

Orders

in

market

the

over-

market.

(10) A large volume of securi¬
ties

which

listed

are

on

national

rected

through various brokers to exchanges are also traded exten¬
the floor of the exchange for ex¬
sively in the over - the - counter
ecution. The broker handling the market. The
trading of these se¬
order charges a commission, based
curities, both stocks and bonds, is
.

the number of shares

on

bonds

or

involved and, in the case of

selling.

are

were

as

the

unlisted market and, occasionally,
the off-board market.

as

In contrast to the listed

dealings

conducted

are

market,

on a

nego¬

basis. Fair prices and close
for individual securities

markets

obtained

are

business, conducted
non-member firms.

various

These firms maintain

sizable

and

close,

a

con¬
market in

net

the most part,
utility companies.
goodly volume of

issues—for

many

those of leading

Here,

again,

a

business

is done

anxious

to

with institutions

avoid

paying

ex¬

an

change commission.
While

exact

figures

not

are

is an acknowledged
traded, in those days. fact that the daily aggregate dollar

This market is also known

tiated

specialized

stant

The over-the-counter market is

monies

a

shares, by

the price at which those shares

on

with

Frankly, I don't think so. While the main lines are costly indeed, unused items, including a lot of
no
effort here will be made to As a loss reducer in this section valuable metal scrap. That is bepostulate a return to $2.57 a share 0f operations, steam percentage of ing converted to cash. Ditto a pile
on the N. Y. S. E. like 1929, some
passenger miles was 87% in 1946. of old
80-pound rails that had

on

exchanges, the the-counter

the country are di¬

over

willing to

are

commission

their

a vastly different affair. The name
looks like
the last half minute of a roller pa&sengers and the actual loss in New York
Central.
No swivel "over-the-counter" is believed to
had
its
coaster ride; and today an impres- {.his human haulage was about $60 chair general, he. On the contrary, have
conception
many
sive book value of roughly $130 millions, or over $9 a share on the he's always been a railway man years ago when securities were
a
share, is valued in the market common!
That's rugged.
While to see things for himself. For ex- purchased and sold over the
place at a lowly $18.
the glamor trains like the "20th ample, in the first few weeks, he counters of banks—in much the
How come? Is this soggy mar- Century
Limited" have always strolled through the Marine Shops same way as commodities and

drawing,

mechanical

the

None of

large institutions.

these accounts

exchanges; and

market.

net operat-

other

charged if the order

country,

national securities

at $23 million, con-

Explains work of the

National Quotation Bureau and other similar services, and the
great value of investment trusts to the over-the-counter market.
Reveals complex work of the over-the-counter trader and

available

Not half enough consideration
in usual appraisals of CN is given
to the size and value of its investments in other companies, and in
valuable urban real estate in New
York,
Chicago,
Cleveland and
other big cities on the line. The
1951 report revealed income from

publicity and communication facilities

factors in over-the-counter market.

as

Ponderous maturities have sent
"^ny a railway to the cleaners,
These are no problem for Central
as its nearest important date with

stress diesel- a few blocks from Grand Central,
Nation, and the extent of same, as and you'll be looking, on each
a major improver of carrier prof- side of the street, at several
10s
itability two other sources of gains of millions of New York Central
are usually ferreted out—sloughreal estate. It's pretty classy brick
jng 0ff passenger losses, and im- and mortar—and profitable,
proving yard efficiency. Well in
What about the management?
the
first department,
passenger Well, on Aug. 1, William White
losses, CN does have a real prob- who did such a swell job on the
iem
15% 0f 1951 gross was from Lackawanna, because President of
analysts

am0ng

Pointing out the vast extent of the over-the-counter market,
daily dollar aggregate exceeds volume of business on

It's good and it's im¬

capital

ing

leisurely pace than on most roads,
particularly those emerging from
the financial round house of bankruptcy. From 1945-51, 907 new
diesels were placed in operation,
almost 50% of them (420, to be
exact) were delivered in 1941. Ineluding units already ordered, by
the end of 1953 about 2,000 diesels
will be in service. Also since 1945,
840 new passenger cars have been
purchased to the tune of $80 million. In total, Gross Expenditure
for Additions and Betterment will
total, for the five years from 1948
to the end of 1952 about half of a
billion dollars. "That ain't hay,"
and

Trading Department, Blyth & Co., Inc., New York City

over

the Dow Jones Railroad Average

tion, long time cleavers to N. Y.

By II. NEILL BRADY*

ings.

proving.
During the war years,
$100 million of debt was re¬
tired, and cash built up so that
at the 1951 year-end, net work¬

Central is now
weight in the train of equities that make

patience has ever been
as
a
virtue, if not a

terrific boost to earn¬

a

of the road.

"Expanding Your Income"

the possibility that New York

While

The Over-the-Counter Market

the

doubling

said about the financial condition

A conjecture on

up

designed for 130

Just

length of freight trains gives, ob¬

On the Water-level Route
Author of

trains.

car

Upgrading Earnings

t

.

(1316)

available, it

of securities traded

volume

over-

the-counter far exceeds that of all
the

national

exchanges

about

transactions

25,000

place

put

to¬

It has been estimated that

gether.

daily

counter

the

in

over

<

This

market.

is

-

take
the -

a

very

taking the bid interesting fact and one that is
offering which are, respec¬ not generally known.
erations.
runs.
20 such are now in service, helm, expect a "taut ship."
He tively, highest and lowest from
Therefore, we are discussing a
First of all, New York Central I believe, and these compact ve- will generate efficiency because among the various bids and offer¬
tremendously
important market
in a vast system embracing 10,724 hides,
together with 80 Motor he's always looking for it.
ings shown for that particular se¬ which performs a vital and neces¬
miles of main line track, and serv- Cars, may be the efficient answer
About earnings, Central has in curity. This is termed the "inside
sary
function
in the financial
ing 11 important eastern states, to local service runs. And there's the jast coupie 0f years had sort market." While a broker may be world.
Only Pennsylvania Railroad out- always outright abandonment of q£ a Punch and Judy record. Just used for the execution of an order,
General Structure
ranks New York Central in traf- absolutely
hopeless lines, to be ag everything looks on the up- one does have the
privilege of
The over-the-counter market is
fic volume, and the capitalization patiently sought after^ but not alg^cle, something emerges to bat going into the market and con¬ nationwide in
scope.
It consists
of this famous "water-level" route ways secured, from the ICC. And £hem down.
Like strikes.
Last ducting his own
negotiation. of all the brokers and dealers
to Chicago runs well over a bil— if you could only do away with
year,
there was a malingerers Therefore, without limitation or
throughout the country—not only
lion dollars.
System funded debt the Weehawken ferry boats in strike that cost $10 million; and
discrimination, any person may those located in the large financial
at the 1951 year-end was stated, I New
York harbor, I'll bet that then longshoremen's port strikes enter the market,
haggle over centers,
but
those -located
in
believe, at $1,032 million, and alone would save Central stock- jjj the autumn causing costly de- prices, make bids,
offerings, smaller towns and cities as well.
was followed, without the
inter- holders 15c a share per year. Suf- jayg and diversions of vital ton- c o u n t e
r-bids, counter-offerings These firms deal in and specialize
vention of any preferred issue, by fice it to say that passenger rev- nages.
This year it was the 53- and consummate a transaction.
in the purchase and sale of se¬
6,447,000 shares of common. Thus enues, as a percentage of gross, dav steel strike and in the oast
Most of our securities are dealt, curities of all types. The various
a
terrific amount of leverage is should be less in 1952 and im-

future

of New

York Central

op-

wjth

excellent

results

on

local

from the ties up.

weeks

we

have

With him at the

seen

off

and

on

provided, and improved gross can portant steps such as the ones strike threats to traffic continube swiftly converted into inter- above, are being taken to reduce
ity. Fortunately, it looks like no
esting per share enrichment.
loss in this section.
coa] strike in 1952.
But there it
With

a

fine

non-mountainous

route to the West,

About

yards,

and the short-1 are doing

a

diesel

switchers

far better job cost-

is; through

no

earnings

CN have been beaten

on

fault

of

either exclusively or almost so, in
over-the-counter
market.

the

They include:
■

its

by

and

own,

(1)

and

More than 99% of

our

bank

insurance stocks.

of these firms, that
is, the trading, sales, research and
buying departments, along with
the officers, partners and sales¬
men,
all contribute directly to
the functioning of the over-thedepartments

(2) All equipment trust issues.
Chicago, it might have wise than the choo-choos they've down so that for the first seven
counter market.
(3) A great majority of invest¬
that CN would have replaced. For years, the custom- months of 1952, net was a measly
Such firms provide the stimulus
led the railroad parade, and that ary freight train on the Central 4c a share, and all the advantages ment trust and mutual fund is¬
and
facilities for the over-theperhaps this property rather than was 60 to 65 cars long, principally of the 15% freight boost effective sues.
counter market.
But more than
(4) Nearly all real estate issues.
say, Seaboard, would have been because major yards were not dein April, and better commutathat is necessary. A constant flow
(5) All religious order securi¬
the one to chug its common stock/signed
to
handle
any
longer tion income, have not been able
of
bids
and
offerings, purchases
from below 20, to over 100, in the trains. Now thoroughly stretched, to emerge on the earnings state- ties.
and sales must be maintained or
(6) A great many foreign gov¬
past five years. Part of the rea- modernized
and
electronically ment.
a
market
will
deteriorate
and,
son CN has not thus performed is
equipped yards at Selkirk, outIf only they would leave Cen- ernment and corporate securities.
eventually, disappear. Providing
because it's done too much "chug- side of Albany, DeWitt, near Syra- tral alone for a 12-month, and let
(7) Practically all the issues of
est line to

been expected

ging."
tral

Dieselization on the Cen- cuse; and a huge new yard facil- all this new dieselization (now the United
proceeded at a more ity at Elkhart, being completed above 50% of total power), new
territories
rates, new cars, new yards and
management

really
cook;
then you might well see a dra¬
matic upsurge in CN per share
new

"FOR SALE"

profits, and have vouchsafed to
patient stockholding group

thing

A Complete set of "Chronicles"

token
from

1925 to

1938

truth,
little

Available

at

a

Broker's Office

in New York

City.

than

more

dividends.
some
more

upgrading

tentative

and

There

is, in
basis for expecting a

from CN—some profit

the

on

are

national

but only

bound, is

a

real buy.

Phone

or

"water-level"




ket
on

does

a

on

transaction

now

Calif.

—

John C.

with R. E. Evans &

Co., 202 Broadway.

size

one-man

type

of security trades

of

firms

these

varies

It ranges from the small
firm

to

of

some

the

largest investment banking firms
in the country.
These firms are
bought and sold in the main by staffed
throughout by
trained,
banks, insurance companies and competent personnel. Employees
are

run

SAN DIEGO,

Smith is

The

that

mostly in large blocks. They

of

the

address

American

the "Economics
Securities
Business,"
on

by the Association of Stock
Exchange
Firms,
Investment
Bankers
Association of America, National
Asso¬
ciation

into the hundreds.

by Mr. Brady before the

Annual Forum

sponsored

7.

companies, investment trusts,

etc.

greatly.

this

the

are

by, individuals, banks, insur¬

take place. The reason for this is

♦An

(Special to The Financial Chronicle)

E. L. Beck, REctor 2-9570, 25 Park Place, N. Y.

exchanges,

occasions

Second

With R. E. Evans Co.

write

listed

ance

route.
This set of "Commercial and Financial Chronicles",
canvas

and

Many of these issues

rare

need,

Government, its buying and selling orders originat¬
instrumentalities. ing from, and placed in the mar¬

a

some¬

fundamental

this

States

has

of Securities Dealers, the N. Y.
Exchange and the Curb Exchange,
New York University, New York.

Communications
Increased
munication

and

cheaper

facilities

have

com¬

had

a

great bearing in the development

Stock
at

Continued

on

page

38

Volume 176

Number 5158

.

.

The Commercial and Financial Chronicle

.

(1317)

Steel Production

The

Electric Output

Carloadings

State of Trade

Retail Trade

Commodity Price Index
Food Price

and

By L. L. COLBERT*

Index

Auto Production

Industry

Business Failures

q

production was
but it held moderately higher than the
period a year ago. While fractionally lower than the post-war
high record reached in recent weeks, it was still about 10% short
of the all-time high attained during World War II.
past week,

duce government

Unemployment in the latest week was close
level since the end of World War II with claims for
The

benefits at the lowest level in about

steel

industry is making

giant

to

lowest

this

week.

scheduled

steel.

the

third

week

in

a

operations

row

are

at 104% of rated capacity or better.
This represents
production rate of about 113 million net tons of raw

annual

an

For

(The all-time record

dustry turned out 105.1

hung

was

million

net

last

up

tons

of

when the in¬

year

ingots and steel for

of

the

terrific

production

pace

is

showing

in

up

several places

according to this trade authority: (1) The market
orderly; poststrike frenzy of consumers has abated. (2)
Shipping facilities are being strained; spot shortages of freight
more

reported.

are

(3)

A

number

of

consumers

show

signs

of

bumping into 30-day inventory restrictions; others eagerly take
the tonnage. (4) Specialty items—wire, straight-chrome grades

up

of

stainless

these

items

sheets

and

strip,

historically

are

and

among

silicon sheets are fairly easy;
the first to reflect an easing

market.
The above signs are not interpreted to mean that steel
supply

equalling demand.
But they are the forerunners of a
balanced market, which "The Iron Age"
predicts will come dur¬
ing the second quarter of 1953.

Steelmakers, it adds, will not long acquiesce to controls
producing the

are

metal

faster

than

consuming

industries

civilian customers.
But right now they

ularly

on

losses.

It

are concentrating on production—partic¬
bringing defense production up to date to offset strike
looks as though military business will be
caught up by

the Nov. 30

deadline—earlier in

This

of civilian

will

make

more

few

a

steel

items such

available

for

as

cold-rolled

manufacturers

to continue at

indication of expecting business
very high level until at least the middle of next

a

Though they are no longer panicky in trying to get steel, they
chafing under 30-day inventory restrictions. Am* some, includ¬
ing auto and appliance makers, are scheduling even higher produc¬
tion, despite the handicap of controls, concludes "The Iron Age."

are

Auto output slipped about 3% last week but held the over
100,000 weekly pace started after the first week in September.'

Gar companies

States

"Full

steam

ahead

continues

to

characterize

operations

at

producer excepting Chrysler, where plant reconversion for
model change over took a 11,000-unit bite out of
production this

every

week," said the statistical agency.
Both General Motors Corp. and the Ford Motor Co. continued
the "strong use" of overtime and Saturday
operations, while the
addition of a second shift at Studebaker last week lifted its

output 24%.

500.000

tember.

It

cars

would

be

that

United

States

123,000 trucks this month,

total of 441,424

since 645.822 left

Industrial

and

expects

the

cars

and

plants

or

12%

will
more

113,315 trucks in Sep¬

highest total of

cars

and

trucks

made

assembly lines in May, 1951, "Ward's" declared.

expansion

projects

totaling $24,000,000,000, aided
by fast tax write-off allowances, will be almost half completed
by

the end of this year, Defense
terlv renort to the President.

and facilities will result in

a

Mobilizer Fowler stated
The rapid completion of

in

a

ouar-

plants
substantial increase in United States
new

capacity to produce basic materials, and permit a speed-up in
output of military equipment "if national security requires," Mr.
Fowler observed.
These increased supplies of basic materials can
go to civilian users if the arms program is not
accelerated, the

acres.

Savings by individuals in the 1952 second quarter
previous period

and

the

comparable

three

months

second period.
Savings of unincorporated businesses, trust
pension funds and non-profit institutions, in addition to

of

and

personal

billion

are

and

included in the SEC totals.

other

consumer

debt,

Mortgage debt

mostly

instalment

rose

credit,

$1.4

in¬

creased

by $1.3 billion in the second period, the
agency stated.
Although holding above the level of a year ago for the seventh

straight month, the number of

businesses chartered during
August dropped to the smallest number since last
December, ac¬
cording to Dun & Bradstreet, Inc. The total for the month
at
new

7,108,

was
a

„

5.8% under the 7,549 recorded in

gain

of

9.4%

as

compared

-




'

-

.

with

July, although it represented

6,496

V.

in

see

August

a

year
on

ago.

page

48

more

There
head

the
than

Back

of

in

in

acres

today

million
million

the

state

the

state

ranked

third
in
petroleum
production,
producing about 145 million bar-

dynamic,

rels of oil annually.
leads the n a t i o n.

be

testing has
demanding
might profit¬

more

last.

We

can

the

of

principal

strengths

economy is its flexibility.
Because it has so much resilience,
it

140

cattle

1925

our

than

three

are

One
of

this

state;

to

the

such

lifetimes—

our

shoulder

greater

other.

any

burdens

Its huge produc-

tive facilities enable it to produce
unsurpassed
quantity and

with

quality, either for war or peace.
Its great
dispersion reduces its
vulnerability.
Its adaptability
leaves it less disturbed by sharp
changes in the requirements made

it.

upon

It

motives

switch from loco-

can

trucks

or

to

tanks

or

landing craft; from production of
L. L. Colbert
zestful Amer¬
appliances to ordinance; from synica.
Much of
around a billion barrels last year, thetic
textiles to chemicals for
it made exciting reading. It supin 1925 there was only a hint of munitions.
And it can still mainported belief in a better, stronger the huge chemical industry that tain a high civilian living standard.
spiritual

well

has since

material

Today Texas
It produced

developed in Texas.

In

_

,

_.

.

.

3,600
Economy's Strong Points
manufacturing plants of all kinds;
This list of our economy's strong
however, is in our accomplish- today there are in the neighbor- points stresses the interdependence
ments to date. The proof is in the hood of
8,000. The vast aircraft of its component parts. Few un¬
doing.
Our kind of society has industry that has come to Texas portant elements of our economy,
steadily grown and made a finer did not exist 25 years ago.
if any, are self-sufficient.
Our
in

as

The

values.

than 190 million

commission

looks

in

more

of

1975

people. It sees an
that would

of

impossible,
economy

attainment

by

jm

,

Commission

more

the

times

This

now.

operate

oo

on

a

million

22

automobiles

more

than

in the

use

.

.

,

^

automobile

e

any

a

^

You

auiomoDlie-

such

ran
can

*ou

can

comparison among

elements of

our

or

little

industry,

agriculture,

finance

increase

could

of electric power in the

well

prove

conservative.

But all this won't just

household; a large in¬
crease in work opportunities and a
low level of unemployment.
It is
a picture of an energetic, growing
economy that returns the rewards

will take

a

realization

happen; it
lot of doing. And its
will
depend
upon

intricate

meshing

dent elements.

of

Continued

on

the people.
surprising about

anything

Opportunity for

prophecy?
it

much different in
quality or quantity from a predic¬
tion that might have been made
in
the
year
1925 about life in
America in the year 1950?
Or a
prophecy in 1900 about how things
would be in our country in 1925?
Our people, working together in a
free economy, have already shown
that they can do bigger tnings in
a

really

25-year period

dent's

INVESTMENT CONSULTANT
Well-known firm has
Western office
:

consultant
must

an

excellent opening in a

Middle'

top-flight investment
(not salesman). The person to be selected

have the

(not Chicago) for

a

following qualifications:

than the Presi¬

commission

envisions

for

1. Good educational

background

the next quarter century.

2. At least five

years' experience in the investment field

Accomplishments in 1940-1950
We don't have to pick a period

long

as

been

a

quarter

the

measure

made.

the

alone. the

American

continued

to

the

world

have
make
1940

century

have

past 10

years

have

people

outstrip the rest of
by the amount they

increased

their capacity to
things. Between the years
and
1950,
they
increased

steel production 44%.

They upped
crude petroleum production 46%;
electric power 132%; automobiles
and trucks 79%, and agricultural
production 17%.
Here

in

Texas

some

of

the

greatest growth in the nation has
♦An

address

Alumni

by

Business

Mr.

Conference

College
of
Business
University
of
Texas,
October

3,

1952.

Colbert

before
of

the

.Administration,
Texas,

Austin,

3.

Ability to meet and consult with clients of the firm

4.

Age thirty to forty but preferably in middle thirties

to

that

strides
In

any¬

interdepen¬

You cannot

of its growth to

19

or

light of these accomplish¬ thing else. The point is that this
ments, the predictions for 1975 whole, fabulous structure is an

o l

average

that

make

ma

almost
industries na¬

tion, whether they be big industry

transportation,

Estimates

Conservative

,

In

f

looks

two-fold

a

the figures go,

achievement possible.

great fleet would
network of roads

commission

so

wonderful

will
do
in
the
years
to come,
provided they preserve the free¬
dom of enterprise that makes such

on

only dreamed of today.
The

some

.,

and trucks two and a
as
numerous
as
they

roads;

half
are

sees

passenger

had

,,

less free, less flex-

lble, less rewarding than our own.
muJ
The

state

recording enormous automobile industry is
unfolding of
the dependent upon the petroleum mdustry, in which Texas plays such
power and energy of an industri¬
a
vital role, and upon highways
ous and creative people.
And this
and roads, and upon the steel and
is not only the story of Texas;
the rubber industries. But each of
it is the story of the United States.
^
siory 0f what dynamic
te®,e
stf
wou*d be but: a
De0Dle
/one ana
and wiidi
what ine.y
thev shadow of itself were it not for
people havp
nave uorie,

a

increase in production

any

the

And

America

an

1925

belief,

us.

The President's
to

as

basis for

real

life for all of

the

Continued

are

in

performed
trial

ably look at what makes the work
so well.
By doing so we may see
what to do to keep it strong. *

ago,

today than in 1925.

25

It was
picture of a

a

as

well

were

1951, the Securities and Exchange Commission revealed.
Liquid
savings totaled $1.7 billion in the June quarter. This compares with
$2.6 billion in the first quarter of 1952 and $3 billion in the
1951

holdings,

to

another

years.

Mobilizer added.

the

there

land

27

ask of

we

economy because

But—in

seemed

from

about 110 million

were

farm

short

our

already

successive

than

years

there

more

might

similar

a

ica

expect

with

university
of

a

picture of the

in

them

compare

has

each

over

kind of Amer¬
we

it

the past quarter

figures today.
When
I
graduated

the

report drew

operation of

was

and

in'history. Today

miracles.

interesting to me to check
a few figures on indus¬
try and agriculture in Texas in the
days when I was in .school here

the

policies,

over

economy

It is easy to become complacent
about
the
continued, successful

substance."

our

our

it perhaps even more.

century.

a

It

back

materials.

Is

further

agency

than the 554,739

below

of

de-

to

Whatever

assembled

100,598 units the past week, com¬
pared with 103,925 in the preceding week and 84,006 a year
ago,
according to "Ward's Automotive Reports."

make

interesting taken place

r

show every

year.

The

very

velop a na¬
tional policy

be

goods, declares this trade weekly.

Steel consumers

'

a

made public. It was

was

and richer America in the future,

when

can chew
it up; when they are pledged to a
policy of not per¬
mitting any defense project to suffer from lack of steel, and are
best qualified to distribute the remainder
fairly among their

sheets.

summer

issued by a commission appointed
by the President of the United

b i g,

is close to

they

government's pouring out

on

merits of such

Evidence

cars

Last

document

on

castings.)

is

"moratorium

relieving

of demand which built up during the recent 2strike, states "The Iron Age," national metalworking mag¬

month

azine

ment

as adding to production, and reveals expansion
of Chrysler Corporation and other concerns. Calls for

program

asked it to

We made ter¬

past.

in World War II, and
yet it re¬
sponded with the greatest achieve¬

and, in addition, hamper civilian
Defends profits as both incentive to

production.

have

we

the

in

rific demands upon

-

revenues

years.

toward

intense pressure

principal

produce and

unemployment

seven

strides

the

and defense

in the face of the stag¬

us

gering tasks
as

_

productive, less vigorous
long since would have

economy

failed

used by government to attack profits,v prominent auto
executive maintains country's ability to do and to live better
is being weakened. Says tax and control
policies actually re¬

like

insurance

A less

ways

The forward movement of total industrial
the

to flourish in the future.

.

taxes and unreasonable controls

of doing

way

our past
possible, is allowed

achievements

fulfill

Citing excessive

not the

or

things, that has made all

President, Chrysler Corporation

J)
arrested

whether

Government Ways
Oi Attacking Profits

5

The individual

we are

seeking is probably

ated with the investment
company,

department of

a

now

bank

associ¬

or trust

the statistical department of an underwriting

of investment
good opportunity for
advancement. Applications stating qualifications should
be directed by letter to the advertising firm of Albert
or

brokerage firm or some other type

organization. The position offers

Frank

-

Guenther Law, Inc., 131 Cedar Street,

6, N. Y., attention Mr. H. V.
of

our

New York

Child. The members

organization have been advised

of this opening.

tamper

page

40

6

The Commercial and Financial Chronicle

(1318)

months

People's Pocketbooks

log

need for salesmen, Mr. Babson points out,

on

buying.

the

have

salesmen

cause

sell!

to

this

on

really

written

the

about

money?

World
We

that

not

in

as

be

population

local

and

repairs.

tele¬

that,

and

much

Sales

as

am

10%
of

of

with

Then

the

do

then
mass

automobiles,

$2,000

frigerators, $75

shoes,

or

begin

to

market is

$200

more

Jabor

advertising;

but

people will have the

must

re¬

our

of

$400

when

II

They

Do

Buy?

time since

one

business

with

War
were

net relatively normal was in the early

University study states, that
economy is at a turning

York

German

point.

300—an

earnings

worker with

average

only had

earn¬

gross

ings of $3,000. Even
to .dip into

savings but
go into the hole for the purchases

Resumes Radio Series

they made. Why did they spend?
Their

wants

primarily
of

cries

hysteria

war

shortages.

those who

Kidder, Peabody & Co., 17 Wall

spawned:

were

by

Street, New York City, announced

and

There

the resumption of its

were

Marcus Nadle.
G. Rowland Collins
they wouldn't be able to
buy that new car, or washer, or
Dr
Marcus Nadler, Research Di¬
suit of clothes; or that, if they did
rector, of the Institute of Inter¬
wait, prices would skyrocket. In
national Finance
of New York
other words, many of these people
University, the rehabilitated econ¬
had their hands forced by fear.
omy of Germany is now confront¬
waited

Pricing

Yourself

Out

with

ed

the

of

of

number

a

serious

past few years, the
all bulletin states, West Germany has
to made notable progress in recon¬
During the

Sales

they
sell

managers

want
and

to

sell

is

he

afford

going

the

the

number

the

need

hard, but if the

can't

sumer

talk

can

about

of

the

recent

her

structing

and ap¬

economy

price tag,

proaching her prewar position in
We've world trade and industry, but the

buy?

to

con¬

potato

dietary

habits

people.

Potato

still

haven't

fully

while

the

of rice,

fiasco
of

a

rapid industrial recovery wasmade
possible largely with U. S. aid.

sales

There

commencing

indica¬

many

now

are

WOR
,,

r

...

Oct.

Sunday,

12 at 3:30 p.m.

According
to Milton Fox-

Martin,

Manof

ager

firm's

the

Central
Fund

Mutual

problems.

Market

radio series,

"Your Money at Work," over

afraid that if they

were

extraordinary

is

Kidder, Peabody Go.

they not

so,

of

era

giving
way
to
one
fraught with promise, but also
with
problems
the solution
of
which as yet cannot be discerned.

these were
of $4,appreciable cut above the
net

An

growth

that year!

with

change

World

conditions

were

?

families

to come. This problem may therefore continue to remain a source
Germany,"
issued by
Dean G. of uncertainty and unrest.
Rowland
Director,
and
It would thus appear, the New
Collins,
V According to a bulletin,.entitled
"The Economic Position of West

in mind that

Keep
people

watched

for
Why

buyers

capital.

ment

income, after
taxes,
of
f.bout $4,300. But their spending
spree put them in the red to the

how

to buy more.

The

*

net

a

in¬

duce costs
money

1950

a

to ' small

York

International Finance, say rehabilitated
Germany is faced with many serious problems, and current era
of extraordinary growth is hampered by inadequacy of invest¬

10,000

re¬

tensive selling and more intensive

so

the

9c-per-pound
in

scare

Now at Turning Point

Marcus Nadler, of the New

University Institute of

recent

almost

cities

middle-class

upper

cleaners,

vacuum

even

believe

I

potatoes!

children. I

two

will

you

for

bil¬

the

and

sure

wonder where the

$10

to

for the $3,000-a-year worker,

the
the

Add

miscellaneous.

same

distributed

73%

and

has

figures

$20

phone

married

overlook

the

top

held

State

and

were

the

Federal,

than

good.

that

savings

follows:

and figure roughly—after deduct¬

spend

they would

Board

estimated

lion

a

this,
food, clothing, charities, insurance

money

statisticians

1950

the

believe

rent, light, heat, water, gas,

so

Reserve

don't

you

more

the way in which savings are dis¬
tributed among our people. Fed¬
eral

If

to' sell 'to

haven't

people have

to

sales

just

can

taxes—what you yourself pay for

buy; that people aren't
buying because they are not being
sold!
The fact is, however, that
most

salesmen

ask,

ing

if

fluctuated

desire

I

towns,

high

a

been

long
sung
ability to buy

the

how,

of

to
a
about

from

large

this

of

that

have

managers

then

rush

population,,

tune

$3,000-a-year worker doesn't have
the money, then take your pencil

only spend it,

tune

basis.

have

ever

would

the

told

to

business

This

of

(and this is

who

people

have

II.

War.

80%

income

average

$3,000

expect

you

accumulated

since

is

estimate),

savings

people

Roger W. Babson

the

80%

has
been

also

savings.

hand-to-mouth

a

If

so?

Much

net

bottom

population with but 7% of the
savings, operating pretty much

forgotten

how
Is

total
the

leaves

shortages

by the Bureau of Labor
Statistics, a good cross section of
our

the

of

to

sales are down be¬

Dean G. Rowland Collins and

families

recently savings; the top 20% owned 93%

salesmen

for

need

mad

.a

of

r

hundred
about

West German Economy

Korea!

came

According
sampling study of

market."

sell! They say

back¬

great

beginning to

talk

and

scares

prompted

re¬

gardless of advantages of intensive selling and more intensive
advertising, labor must reduce costs so people will have the
money to buy more.
Says "y<m can price yourself out of the

Much has been written

The
was

Then, bang,

money.

War

Commenting

1950.

fce satisfied for those who had the

BABSON

By ROGER W.

of

demand

of

1952

Thursday, October 9,

.

.

.

Depa rtment,
on

this

year's

programs

portfolio

man¬

and

agers

of

re¬

heads

search

leading

mutual

funds

will

inter¬

be

Milton Fox-Martin

however,
the
Institutes viewed. "East guest speaker un¬
macaroni, study points out, that the rapid dertakes to discuss one industry of
spaghetti remain high. When pace in the development of indus¬ his own selection," Mr. Fox-Mar¬
bus companies raise fares too fast,
try and trade of the past few tin stated. "The primary purpose
'hey lose 10% of their riders.
our
years will not be continued in the of
programs is to render a
sales

recovered, tions,

and

This advertisement

is

neither

an

The

offer to sell nor a solicitation of offers to buy
offering is made only by the Prospectus.

any

of these securities.

Whatever

NEW ISStJF.

October 9, 1952

industries?

Corporation

of

Dated October

1, 1952

Due October

.

1, 1972

industry

ghosts

of

which

such

Prospectus,

may

legally be

the

the

manufacturers

leaders

who

markets

mass

Copies of the Prospectus may be obtained .from any of the several underwriters
only in States in which such underwriters are qualified to act as dealers
in

with

filled

and

depend

on

their

reduce

costs

Toronto Bond Traders

distributed.

Elect New Officers
The First Boston Corporation

Harriman Ripley &

Co.

Goldman, Sachs & Co.

Incorporated

Glore, Forgan & Co.

Lehman Brothers

Kidder, Peabody & Co.

TORONTO, Ont., Canada — The
Toronto Bond Traders Association

Hornblower & Weeks

Allyn and Company

Lee

Higginson Corporation

Incorporated

Paine, Webber, Jackson & Curtis
Central Republic

Company

Wood, Struthers & Co.
Dcminick & Dominick

Clark, Dodge & Co.

(Incorporated)

Harris, Hall & Company

W. E. Hutton & Co.

W. C. Langley & Co.

Reynolds & Co.

(Incorporated)

Bache & Co.

Baker, Weeks & Harden

Spencer Trask & Co.

McLeod, Young, Weir, Inccrporated

Tucker, Anthony & Co.

Robert W. Baird & Co.,

Dean Witter & Co.

Hayden, Miller & Co.

Johnston, Lemon & Co.

Incorporated

McDonald &

New York Har.seatic Corporation

Company

Shearson, Hairir.ill & Co.

elected the following new of¬

Vice-President:

R. S. Cickson &

Courts & Co.

Ccmpany

Incorporated

Putnam & Co.

Bacon, Whipple &• Co.

E. W. Clark & Co.

Julien Collins &

Fulton, Reid & Co.

E. F. Hutton & Company

Fahey, Clark & Co.

Reinholdt & Gardner

Lee W. Carroll & Co.
A. E. Masten &

Folger, Nolan Incorporated

Merrill, Turben & Co.

Curtiss, House & Co.

Company

DeHaven &

Adams & Peck

Johnson, Lane, Space and Co., Inc.

Newhard, Cook & Co.

Rodman & Linn

Starkweather & Co.

Robert Garrett & Sons

Sutro&Co.

Boettcher and

Sills, Fairman & Harris

Richard W. Clarke

Kirkpatrick-Pettis Company

ion

Co. Ltd.

SSx & Co.




J. R. Williston & Co.

C.

B.

Scott, Domin¬

Securities. Corp.

Committee:

Leod.

internal

as

B.

Ltd.

A.

Weir

Young

of

resources

indus¬

the

Co.

Mc¬
Ltd.;

is

obstacle

an

much

of

be

can

to

future

economic

not

Furthermore,

development.

expected in the way

large-scale influx of private

a

foreign

Ger¬

West

into

capital

until

many

Another

the

and

has

Harvey
with
50

Mass.

became

Schirmer,
New

York

Ex

Officio:

associated
& Co.,

members
Boston

and

formerly with

of

Stock

H. Goddard & Co.

Fewel Adds to Staff
(Special to The

Financial

LOS ANGELES,
Troll has
&

Co.,

Chronicle)

Calif.—John T.

joined the staff of Fewel

453

Spring

South

members of the Los

Street,
Angeles Stock

Exchange.

problem is
separation from

disturbing
sector

the

of

rift

the

prewar

between

5 MINUTES

the

FROM WALL ST.

western Allies and Russia and her

N. Y.'s

Plan
and
incorporation of
Germany into the west European

man

ess

C. G.

Lee, Bache &

Co.: J. L. Hayman, Goulding, Rose
& Co. Ltd.

the

Financial

LOS ANGELES,

Tamble has

staff of
Seventh

Street,

&

and

offset
of

between

areas

the

raw

adverse

the

the German economy

curtailment

relations

stantial

Chronicle)

help

largest Hotel

offers foremost

facilities for

in

east

war

part

of

the

economic

West

Germany

Eurooe

provided

which
a

Germany's

materials

and

were

added

to

the

Co., 210 West

members

of

! Los Angeles Stock Exchange.

the

sub¬

food
ma¬

turers.

Nevertheless, there are
strong economic and political
forces
tion

working toward

a

banquets
meetings

of

Calif.—George jor markets for German manufac¬

been

Fairman

on

before

Joins Fairman Staff
to The

will

effect

and

E.

'

Gordon

Mr.
Harvey
was
Kenneth M. Jones

Exchanges.
and J.

E.

Atherton

Street,

Congress

the

—

greater

Germany's

Eastern

(Special to The Financial Chronicle)

BOSTON,

J.

of Toronto.

Sweney, Cartwright & Co.

Wurts, Dulles & Co.

Schirmer, Atherton Adds

inent

Cartan, Harrison & Co. Ltd.; defense community have been im¬
Granton, Matthews & Co. portant steps toward integrating
Ltd.; D. M. Sennett W. C. Harris the German economy into that of
& Co. Ltd.; C. F. Perkin, The Bank the rest of west
Europe. This proc¬

J.

Cchu&Co.

Stetson Securities Corporation

supplemented

tries,

satellites. Ratification of the Schu-

Mallon,
&

The first two

a

A. J.

Incorporated

Corporation

B.

J. A. Hogle & Co.

Company

solved

be

Reich

(Special

Irving Lundborg & Co.

H.

ment."

guest speakers are
prerequisite for
Thomas J.
Herbert, Vice-Presi¬
the further expansion of the Ger¬
dent, Hugh W. Long & Co., and
man
economy is the shortage of
Harold
X.
Schreder,
Executive
investment capital. The capital re¬
Vice-President, Distributors
quirements of the basic industries,
Mr. Fox-Martin is
part of whose equipment is ob¬ Group, Inc.
moderator of the programs.
solescent, are very large. Although
to

West

Pacific Northwest Company
Bosworth, Sullivan & Ccmpany, Inc.

Townsend, Crouter & Bodine

Mackall&Coe

Stein Bros. & Boyce

Chas. W. Scranton & Co.

few years earlier.
problem that remains

a

A serious

Pitfield &

Ball, Burge & Kraus

Company

passed

Tindale,
Walwyn, Fisher & Co. Ltd.
Secretary: R. J. Trow, W. C.
Treasurer:

Whiting, Weeks & Slubbs

through

political and
economic stability is restored to
ficers for 1952-1953.
The annual
meeting of the Association was Europe and the relaxation of the
held Sept. 26 at the King Edward rigid foreign exchange control
makes
possible free transfer of
Hotel.
earnings on foreign investments.
Officers for 1952-53
The settlement of Germany's pre¬
President: D. E. Morrison, Royal war debts is a
step in this direc¬
Securities Corp. Ltd.
tion.

has

A. C.

the

with

by governoutlays,
bank
loans, and
to fit the mass pocketbook, their
ECA counterpart funds, have kept
daysi are numbered.
investments at a fairly high level
during the past few years, the
lack of an active capital market

Price 102.35% and accrued interest

and

is

overpricing.

erating with its head in the sand.
Unless

securities

shortage

a

Either in¬
dustry doesn't know the history
of overpricing, or else it is op¬

labor

in

auto¬

buyers. The hist.orv of Ameri¬

can

Sinking Fund Debentures clue 1972

this

has been a process

the peculiar

and

cars

German

cent

to

the

In the main, the re¬ service to the mutual fund indus¬
economic expansion try, and to the investing public,
of catching up by enlarging the public's opinion
prewar
level, a stage of and respect for this fast grow¬
which most of Europe ing medium for collective invest¬

period ahead.

silk

paradox of having both

shortage of

i

the

answer

motive industrv is in
economic

4^8%

The

natural

to

butter—and

question explains whv

$60,000,000

United Gas

happened

^ubber—and

unifica¬

of Germany which are not
likely to disappear for a long time

office parties
Outstanding
or

7th

small
Ave.

values-for large

groups! Clark St. sta.
IRT

subway In hotel.

Telephone MAin 4*5000.
HOTEL

st. George
Clark St.

Brooklyn, N. Y.

ting & Bing, Inc., Management

Volume 176

Number 5158

.

.

The Commercial and Financial
Chronicle

.

(1319)

him

1

to

along, win

go

in stand

ngton

American

thinking
Of

provement

and

talking

pundits

who

Stevenson's

over

approach

people's heads, that is, the aver¬
age American head, and this is no
way to do. There are still other

By CARLISLE BARGERON

but

says,

he

anything."

about
"intellectual"

great

and

the

whether this is

worry

to

as

effective, just what

it is he is saying that is so states¬
manlike
but
over
the
average
voter's head. I should like to ask
.

One

definitely

uncontroversial

point

words

With

Eisenhower, Steven¬
Nixon, the West¬

of the current Presidential
campaign is that it is costing the

son, Truman and

newspapers money and the bigger

pany

ones

out

to1

Eisen¬

hower

has

18-car

train

with

than

an

more

100

of

the

the

best

first
of

Bargeron

for

time

in

history,

the

to

didate.

He

is

barnstorming,

ad¬

a crowd wherever he can

find

one and
is probably accom¬
panied by only the press associa¬

tion reporters.

Reporters

are

sim¬

ilarly accompanying Bob Taft.
You

would

amount

of

be

surprised

but

as

not

can't

Chicago

the

possibly

industry

the

involved

in

Eisenhower is
I

to

have

to

adopt the

which,
camp,

doing.
doubt

no

fascinated

so

cannot

any

should

They will be
disheartened
and

pletely

convinced

good will.
of

this

vast

enterprise

import

vast

fund

profundity

on

to

has

The most

out

me,

than

people

need

nalism

to

of

bureaucratic

part

of

jour¬

nalistic experts, is that Stevenson
has added something new to
litical

educational

of

care

medical

more

he is

'

coun¬
•

that

minds ' rather

emotions, and then
words

as

to

campaign.

than

There

a

knowledge,

this

sort

Presidential

tight the

more

the subject of

Stevenson camp:

an

The

•

-

usual thirst for

1 asked my Secretary,

ever

thought

her

over

no,"

if

was

above it

Stevenson

was

her head.
she

no

said,

"I

emulation

he

has

under¬

about

waste

how the

money.

gether, his being

a "captive" of the
"isolationist Republicans" as Tru¬
man

and

thus

showing

about

do offer
that

Stevenson

the

are
saying.,
know
little

they

temper of the country

an

is

going to win.

to

answer

it.

Korea,

people, must expect

sweat

and

"intellectual"

tears—but,

Republicans

mind
are

that

was

of

the

interested

more

hunting for Communists in the

Well, I doubt seriously that this
is

the heads of the American

over

people. They, according to

my

best

information,

are understanding it
quite easily. The felicitous phrases

which

scholars
who
are
are

appeal

so

of

the

to

journalism

PHILADELPHIA, Pa.
R.

was

around
their

with
are

"called

up

Inc.

at

the

alternative
have

any

to
to

is

this

of

service,

with

Eisenhower

the

three

being
is

not

a

the

state

of

laugh when

I

for

Prior

Eaton

&

thereto

sociated

with

he

in New York

Allen

was

&

*■

•

■

'

■

Jack D. Howe With
F. W.
RICHMOND,
Howe

has

Sales

&

Street,
North

Va.

been

Municipal
Craigie

Craigie Go.

Co.,

covering
and

Jack

—

added

Staff

616
the

South

of

& Co. since

Force.

In

leaving the U. S. Air

the

past

he

was

the Bank of America.

of these securities.

9, 1952

1952, Due October 15,1971

Interest Rate

Price 98%
15, 1952.

Copies of the Prospectus may be obtained from any of the several underwriters, in¬
cluding the undersigned, only in States in which such underwriters are qualified to
act as dealers in securities and in which the
Prospectus may legally be distributed.

The National City Bank
of New York

J. P.

Morgan & Co.

Morgan Stanley & Co.
The Chase National Bank

Bankers Trust Company

Incorporated

Guaranty Trust Company of New York
Manufacturers Trust Company

The First National Bank
of Chicago

First National Bank
-s

New York

Chemical Bank & Trust Company

Bank of America
N. T. &S. A.

Blyth & Co., Inc.

Drexel & Co.

Glore, Forgan & Co.

Goldman, Sachs & Co.

Harriman Ripley & Co.

Kidder, Peabody & Co.

Incorporated

Lazard Freres & Co.

Smith, Barney & Co.




Lehman Brothers

Merrill Lynch, Pierce, Fenner & Beane

Stone & Webster Securities Corporation

Salomon Bros. & Hutzler

Union Securities

Corporation

oh

Howe has been with F. W.
Craigie

--.I

The First Boston Corporation

W.

Maim.

States

■A

Plus accrued interest from October

F.

Caroline.; Mr.

'

Nineteen Year Bonds of

D.
the

to

East

International Bank for Reconstruction
■

as¬

Company

$60,000,000
'

with

was

City.

October

'•

repre¬

Company,

Thayer, Baker & Co. and

those

to the colors." It

best

offer to sell nor a solicitation of offers to buy
offering is made only by the Prospectus.

in

boys

that

I

and

threatened

fact

affairs.

50

careers,

Newburger & Co., 1342

formerly Philadelphia

sentative

ing

dentists,

—

asso¬

Walnut Street,
members of the
New York and Philadelphia-Balti¬
more Stock
Exchanges. Mr. Maso.o

trying to get the awards,
not over anybody's head.
They
quite understood.

Within my immediate golf play¬
ken
are
five
doctors
and

Page has become

ciated with

Nieman

and

Mason

are

height of

Page With

Newburger & Go.

be done about it. We,

can

have the courage to do
typical statement from this

A

R. Mason

of

ISSUE

•

r

alternative and I think

alternative

said

course, we

them

"Hell

v

:

blood,

who

talking

those who want

.

average and whom at no time

asked

is

nothing

the

1—I

conflicting viewpoints in the

....

my

Churchill,

whom I frequently think is below

have I

oodles fr'of

are

on

their

millions

more

whether

of approach can win

the

and
farm

more

Reuther et

al.
campaigning on an "intellec¬ i,
J'.*:i'. ,i•:
level, " appealing's toi ' the '■;>? Soooh.;—with

voters'

of

people with

collaboration between the govern¬
ment and Phil
Murray and Walter
'y:

tual"

pater¬
verdict

housing

grants,

grants, and make

been the mil¬
the effect

the

and

po¬

campaigning in this

of words to

Their

no such thing
popular understanding of the
problems of today; you must sim¬

knowledge, ;of

attempted

Bureau of Wild Life and Fisheries
than in India.*
/
:

as

the

an

more

will be that there is

of

In

Winston
there

in

the

talking

forces

just what it is he is saying period.

com¬

that

ever

survive.

ply take

lions

by his diction

win.

money out of this but it is service

;

the American

that

will be that education and intellect

personnel.

make

This advertisement is neither

NEW

to

or

demagoguery

according to the Stevenson

and

additional words

at

appeal

come

such

knowledge, a Vice- try.
Presidential candidate,
Nixon, has
First, there have
a
train
with

dressing

of

course

railway stations which have
telegraphic and telephone fa¬

my

accompanying re¬
porters. John Sparkman is being
the typical Vice-Pres dential can¬

on

his

pursue

the

this
Carlisle

with his conscience

small

intriguing

then

is

Stevenson lose, the verdict among
the "intellectuals" who have be¬

Out

Tru¬

But

man.

centers

Stevenson

to

how

the voters' minds

of the

copy

come a welter of words.

cover¬

and

the

tion

They

Stevenson has

age

handle

ators

Then

comes

com¬

repre¬

They move their oper¬
from important communica¬

radio,

similar

have

wrestling

arranging for facilities

to

cilities

re¬

porters, in¬
cluding those
■aboard.

to

about

v

whether

reporters.

assign

it.

obliged

are

ahead

report¬

to

Union and the telephone'

ern

sentatives

running

of

ers

just

are

about

-

all this.

his

But he and the Republicans to¬

ask the

writing

are

hear

armed

vl, myself, should like to

im¬

men'> ,m;nds—and

those Who feel he is

of the News

tne

everything he

doesn't say

appeal to people's minds, for
he will really have contributed to

From Washh
Ahead

lo<e.

or

his

7

Shields & Company

White, Weld & Co,

with

8

The Commercial and Financial Chronicle

(1320)

Erie

Forge

Organization, 100 Broadway, New York 5, N.

Dealer-Broker Investment
Recommendations & Literature
It

understood that the firms mentioned

is

send interested parties

to

will he pleased

Corporation — Bulletin —
Building, Detroit 26,

Penobscot

Cargo

board

Wall

&

special

with

Western

Inc.—John H.

Airlines,

teen

120

York

New

Broadway,

Chemical

Finances

in

An

Analysis of

Chemical

the

Industry

Jr.—Chemonomies, Inc., 400 Madison Avenue, New York 17,
N.

Natural
Loeb

Co.,

Companies—Analysis—Newburger,

Street,

Broad

15

York

months

of

1952

—

Securities

Monthly pocket-size

—

Railroad

Income

Broad

Bonds—Analysis—Eastman, Dillon & Co., 15
six

on

Street, New York 5, N. Y.
Stock

Quotations

Street,

Rector

Nomura

—

Securities

Co.,

Ltd., 1-1 Kabuto-cho, Nihonbashi, Chuo-ku, Tokyo, Japan.
*

*

*

Salle

Loan Life Building, Dallas I, Tex.

Reserve
Cement

Co.

Plaza Hotel.
Oct. 23-24, 1952

Co.,

Council

pal

W. Baird & Co., 110 East

Avenue, Milwaukee 1, Wis.

Standard-Toch Chemicals, Inc.

—

Corp.—Data—Bache

&

Co.,

36

Wall

Street,

York 5, N. Y. Also available is a brief discussion of

Bonds, and
Alma Trailer

a

report

on

—

Security Traders As¬

31, 1952-Nov. 2, 1952
(Hot Springs, Va.)

Fall Meeting
of Southeastern
Group of the Investment Bankers

Association

of

Textiles, Inc.—Report—Raymond & Co., 148 State Street, Bos¬
ton 9, Mass.

Nov.

19, 1952 (New York City)

*Bendix
120

is

a

Memorandum

—

California

the

Eastern

Also in the

&

Co., 209

Bros.
same

&

Co.,

bullentin

Sperry Corporation.

Airways

—

Notes

NSTA

—

Dallas

Rupe

Public
Utility—Bulletin—Troster, Singer & Co., 74
Trinity Place, New York 6, N. Y. Also available are bulletins
on Central Indiana Gas
Company and Southwestern Public

Service.

Cinerama, Inc.—Bulletin—Lamont & Company, 89 State Street,
;
Boston 9, Mass.

With

Broad

—

Memorandum

—

Birnbaum & Co.

Street, New York 4, N. Y.

Timely data

60

CHICAGO,

Women will hold

a

week

or

so

at

a

Guy

The "Chronicle"

men

are

doing

Arizoria

shown

Security

member

Members: N.

Y.

Security Dealers Association

Trinity Place, New York 6, N. Y.

ident,

Harold B. Smith

below:

Association

Dealers

$63.00

Security Dealers Association
Securities Traders

940.50

990.00

Cincinnati Stock and Bond Club

302.40

Bond

Club

1,296.00
176.40
446.40

—

Denver, Bond Club of
Detroit & Michigan,
Florida

214.20

Securities Traders

NEW ISSUE

Association of

Security Dealers Association

Blando Rubber

Corporation

(Lefferts Color-Wall Tire Service)

Common Stock
Offering Price: $1.00
Offering
your

circular

may

investment dealer

be
or

per

share

obtained
the

from

667.80

563.40

Georgia Security Dealers Association
Houston, Investment Dealers Association of

383.40

City (Mo.) Bond Traders Club of
Los Angeles, Security Traders Association of
Louisville, Bond Club of
Memphis Security Dealers Club

151.20
579.60
151.20

88.20
313.20
340.20
8,893.80
1,380.60

Security Traders Association
New Orleans Security Traders Association
New York. Security Traders Association of
Philadelphia, Investment Traders Association of
Pittsburgh Securitiy Traders Association
Portland (Oregon), Security Traders Association of

b.

Exchange Place, New York 5—WHitehall 3-2878




a

Crime

its Pres¬

as

then

and

Emeritus.

He

is

as

also

Program Chairman of the Big 19
Committee which is conducting an

investigation for the Chicago City
Council on ways and means of
preventing crime. His talk will
methods and will

probably point out that it is the
responsibility of every citizen to
help in the drive to rid our city
crime.

of

Mr.

is

Reed

a

graduate of the
His first

University of Nebraska.

banking connection

with the
Lincoln,
Nebraska.
His present one with
the Harris Trust and Savings Bank
First

National

made

was

in

alma

stowed

on

Service

was

Bank

of

1923.

mater

him

the

In

Award.

in

be¬

1941

Distinguished
1949

he

re¬

ceived the Chicago Merit for Dis¬

tinguished Service from the Chi¬
cago Rotary Club.
More recently
he was one of
a
group
which
received

Northwestern

the

Uni¬

versity Centennial award "in

rec¬

572.40

San Francisco

766.80

service

Seattle

417.60

states which

Security Traders Club of
Security Traders Association..
Security Traders Association....
;
Syracuse, N. Y., Bond Club of
...
Twin City Bond Traders Club (Minneapolis-St. Paul)

as

a

resident of

Merrill
741.60

Lynch Adds

(Special to The

Financial

BEVERLY
B.

SMITH, Chairman
NSTA Advertising Committee

James G.
to

Pershing & Company
120 Broadway, New York 5, N. Y.

Continued

of the

214.20

Wichita Bond Traders Club
Unaffiliated

one

comprised the North¬
west Territory."

undersigned

simon company

in

as

he has

St. Louis,

HAROLD

h.

&
on

ognition of the impression which
made upon his generation
during a lifetime of distinguished

390.60

$21,347.10

40

served

Chicago

Chairman

His

Nashville

300,000 shares

has

the

deal with these

302.40

Association

Chicago, Bond Traders Club of

Dallas

He
of

Chairman

Kansas

63SEC

Vice-

Trust

speak
Work

Commission since 1941

Connecticut, Security Traders Association of

74

Harris

a

bang-up job but can always use a little assist¬
ance along the way.
Will all Advertising Chairmen of local
affiliates make further efforts to improve the
as

Chicago."

Cleveland Security Traders Association.

Troster, Singer & Co.

the

Bank,
will
"Making
Democracy

Carolinas, The Security Dealers of the

Utility

Executive

Reed,
of

Savings

mouth

advertising, we know, is the best
method of getting the business, so will you
pick up the phone now and call a friend or
two for advertising for the NSTA Convention
of

Boston

Central Public

E.

President

Baltimore, Security Traders Association of

and

Street

dinner meet¬

a

Thursday, Oct. 16, 6 p.m.,
the
College Club, 30 North
on

Michigan Avenue.

really profitable financial report at Miami
Beach, so it is up to you members to help in
final drive to top last year's figures. Word

Alabahia

Southwestern Public Service

only

Committee is desirous of making

Meeting

111.—LaSalle

our

amounts

on

Hold Dinner

advertising contracts in for our post-

ing

convention

the

Year-Book.

Citizens Utilities Co.
■'

Holly¬

wood Beach Hotel.

the "Commercial and Fi¬

nancial Chronicle." In fact forms will not close

away, your

Central

Annual Convention at the

FIBBING

Convention issue of

&

Son, Kirby Building, Dallas. 1, Tex.

Investment Bankers Association

La Salle Women to
AD

until the end of October.

Memorandum

election.

(Hollywood, Fla.)

There is still time to get

Corporation—Review—Sutro

Broadway, New York 5, N. Y.
review of

Cruttenden

Street, Chicago 4, 111.

Aviation

Exchange

Nov. 30-Dec. 5, 1952

States Oil Company—Data—Greenfield & Co.,
Inc.,
Exchange Place New York 5, N. Y.
American Telephone and Telegraph Company — Circular —
Hardy & Co., 30 Broad Street, New York 4, N. Y.
—

Stock

of

Japanese

40

Manhattan

Ths

at

Firms annual meeting and

Natural Gas Producers.

American

of

America

Homestead.

Company—Bulletin—Baker, Simonds & Co., Buhl

South La Salle

at

meeting

Convention tour.

sociation

George Birkins

New

Building, Detroit 26, Mich.

Bank

joint

Inn.

Oct. 24-27, 1952 (Havana, Cuba)

Oct.

Analysis

Co.—Analysis—Raymond & Co., 148 State

Gas

Caro¬

Municipal

South Carolina Munici¬

—

National

&

Carolina

Committee

Mid-Pines

10 Post Office Square, Boston 9;

O. Smith—Memorandum—Robert

Taylor Oil

(Pinehurst, N. C.)

Securities Dealers of the

Analysis and review of the Cement

—

Mass.

Wisconsin

Club.

National Security Traders Asso¬
ciation Convention at the Roney

Association

Alleghany

dinner

Women

Street

linas— North

N. Y.

6,

Street, Boston 9, Mass.

Bulletin

—

Incorporated, 2

Services,

—

Company, 40 Exchange Place, New York 5, N. Y.

leading stocks—Cohu & Co., 1 Wall

(Chicago, III.)

16, 1952

St. Louis 4, Mo.
Design Construction for Public Utilities

—

Industry—Lerner &

Street, New York 5, N. Y.

Television—Bulletin

Tokyo

Co.—Memorandum—Eckhardt-Petersen & Co., 1811

York

Riverside

A.

Oct.

(Miami, Fla.)

&

Republic Natural Gas Company—Brochure—Eppler, Guerin &

magazine including earnings, dividends, and prices of unlisted

companies, industry analyses, etc.—One year's subscription,
plus free copy of "Dividend Champions"—$3.50—Over-theCounter Securities Review, Dept. 15A, Jenkint'own, Pa.

Republic

Oct. 20-23, 1952

Turner,

Review

—

Reynolds Issues, and Massachusetts Bonding.

&

Public Utilities

Broadway, New York 5, N. Y.
Over-The-Counter

Circular

Angeles, 530 West Sixth Street, Los Angeles 14, Calif. Also
in the same bulletin are data on Hoffman Radio Corporation,

Brochure—Ebasco

Earnings—Preliminary figures for first nine
New York Hanseatic Corporation, 120

Bank

Exchange
Fall

Governors

of

College

New
New

Stock

of

Board

meeting at the

Parker Pen

York 5, N. Y.

New

Firms

meeting at the Ambassador HoteL
—

Company—Data—Conrad, Bruce

South Broadway,

Transmision

Gas
&

H. Hentz & Co., 60

—

(Los Angeles,

Co. of Los

Bell

Corroon

Y.—$5.00.

8-10, 1952

Calif.)

La

Packard

Research, Growth and
by John F. Bohmfalk,

Oct.

Association

Analysis

4, 111.

5, N. Y.

York

New

Investments:

—

Inc., 231 South La Salle Street, Chicago

Investment Company,

stocks—Laird, Bissell & Meeds,

City bank

Sulphur Co.

Nuclear Instrument & Chemical Corp.

N. Y.

York 5,

Street, New

f.

.

Street, New York 4, N. Y.

Beaver

Stocks—Comparison and analysis as of Sept. 30 of seven¬

Bank

Field

Investment

In

Mich.

Broadway, New York 6, N. Y.

reference to Sea¬
Lewis & Co., 63

EVENTS

Shader-Winckler Company,

Company—Analysis—Geyer & Co. Incor¬
porated, 63 Wall Street, New York 5, N. Y.
Melville Shoe Corporation—Analysis—Ira Haupt & Co., Ill

the following literature:

Industry—Review

COMING

Casualty

Maryland

Mexican Gulf
Air

Y.

Corporation—Analysis—D. M. S. Hegarty &
Associates, Inc., 52 Broadway, New York 4, N. Y.

Fedders-Quigan

IIupp

Thursday, October 9, 1952

..

Corporation—Analysis—de Witt Conklin

Steel

&

.

the

Chronicle)

HILLS,

Calif.—

Hodges has been added

staff

of

Merrill

Lynch,

Pierce, Fenner & Beane, 454 North
Camden Drive.
on

page

55

with

He

was

formerly

Wagenseller & Durst, Inc.

Number 5158

Volume 176

.

.

The Commercial and Financial Chronicle

.

ing

Appraising the
Complex Outlook

unsettlement;

tember

1952:

cession

in

a

coal

Fears

of

year

worries

not

over

the

at

—

some

of almost every

course

since

recession

market

49

1943—have

Talmage

Partner,

Commenting

sharp differences

on

during several

ably

absorb

basis

of

generally

The

fluctuations of individual stocks,

drawn

Mr. Thurlow holds this is because

two

stock

performances

price

current

a

7%-10%

and

hold

writer

of

people

witnessed
which

in

two

many

good stock which

a

manifestly

already

was

under¬

valued.

of

earlier

If

the

1953

widely anticipated, who is to

served

in

1946

and

market collapsed notwithstanding

be

action

a

camp

but

and

it

followers will

two years from now,

year or
seems

fairly

that

clear

correctly

because
would

no

teresting

a

one

last

foreseen

Marache

&

New

York

Street,

members of the

Exchange,

that

announce

It

long?

conjecture,

is

ciated

in¬

with

them

as

not representative.

and

viz.:

have

uniformity; and (2)
Says, if business re¬

(1)

cession should come, it may

cide with
It is

perhaps inaccurate to

tinue

thinking

terms

of "the

time

a

i

d i

n

New Issue

coin¬

rising stock market.

a

$28,220,000

con¬

speaking

and

in

general market" at
price
trends
in

when

City of Philadelphia, Pennsylvania

i d ual

v

issues

have

borne

r**7

little

relation

4%, 2V2% and 2%% Bonds

to

oth'er

each

for almost two

and

years

Dated November 1,

any

as

identification
of

overall

an

trend in stock

prices
been
to

1952. Due January 1, 1954-83, inclusive,

as

shown below. Coupon Bonds in denomination of $1,000,

principal only and exchangeable for fully registered Bonds in the denomination of $10*0 and its

has

subject

sharp

dif¬

ferences

opinion.

It

the opinion of counsel named below, from Federal Income Taxes
under Existing Statutes

Interest Exempt, in

of

is

of

interest,
however,

Legal Investments, in

B. K. Thurlow

in

looking back¬
wards from our present vantage
point, to consider the recent his¬
tory of stock fluctuations in two

These Bonds, authorized for various

of

constitute valid and

its

technical,
with
an 'eye

aspects:

one

psychological,

appraising
outlook
A

the

for

of the

survey

adhered

two

past

of

performance,

of

better

moved

the

in the opinion of counsel named below, will, when executed and delivered,
obligated to levy ad valorem
the taxable property therein, without limitation as to rate or amount, sufficient to pay the principal of said Bonds and
interest thereon. The authorizing ordinance provides that the principal of and the interest on the Bonds will be payable with¬

out

deduction for any

municipal

purposes,

legally binding general obligations of the City of Philadelphia, and the City is

taxes upon

to pay

thereon

inheritance taxes, which the City of Philadelphia may be required
Commonwealth of Pennsylvania, all of which
above provided, the City of Philadelphia assumes and agrees to pay.

or

taxes, except as

gift, succession

tax or taxes except

retain therefrom under

or

pursuant to any present or future law of the

or

for

AMOUNTS, MATURITIES, COUPONS AND YIELDS OR PRICE

selectivity.

mid-1947

stocks

higher,

lower, and side¬
less together. Some

ways more or

opinion, for Savings Banks and Trust Funds

Pennsylvania and New York

shall

we

and

until

our

pat¬

which

names

uniformity
1942

years

prices have

lack
call

10

principal

terns

From

to

stocks.

that stock

to

one

complex

present

common

will reveal

Prices

Yields

Prices

Amounts

Maturities

Coupons

to Yield

Amounts

Maturities

Coupons

or

Price

$952,000

1954

4%

1.35%

$950,000

1964

2%%

2.40%

others, but almost every
issue showed conformity with a
recognizable general trend in
prices. Between 1947 and 1949,

952,000

1955

4

1.50

950,000

1965

2V2

2.45

952,000

1956

4

1.65

950,000

1966

21/z

100

952,000

1957

4

1.75

950,000

1967

21/2

2.55

however,

952,000

1958

4

1.85

950,000

1968

21/2

2.60

perform¬

952,000

1959

4

1.95

950,000

1969

21/2

2.65

oils, tobaccos and defen¬

952,000

1960

4

2.05

950,000

1970

21/2

2.70

23/4

100

23/4

100 (price)

23/4

2.80

and

groups

fared

issues

far

bet¬

than

ter

rise

pricewise.
of

ance

stocks

some

while

others

The

sive stocks

began

to

disintegrated

market

sharply differen¬

was

tiated from that of railroads, nonferrous

priced
the

metals,

steels,

Dow-Jones

the

market

whole,

within

1961

4

2.15

952,000

1962

4

2.25

952,000

1963

2V2

2.30

952,000

stocks

war

taking

The above Bonds

in

when,

as

Messrs.

after

over

Korea. Then selectivity

950,000

950,000

1973

(price)

Coupons

to Yield

$949,000

1974

23/4%

2.80%

949,000

1975

23/4

2.85

949,000

1976

23/4

2.90

949,000

1977

23/4

2.95

949,000

1978

23/4

3.00

891,000

1979

23/4

3.00

891,000

1980

23/4

3.00

891,000

1981

23/4

3.00

891,000

1982

23/4

3.00

891,000

1983

23/4

3.00

early

to

leading the first general advance
and

1971

1972

(price)

Maturities

Amounts

(Accrued interest to be added)

again moved as
defensive stocks

with

950,000

20%

a

mid-1949

From

range.
1951

moved

Averages

forth

and

low

and

general—while

in

stocks

back

a

registerable

multiples. Coupon and
registered Bonds of the same maturity interchangeable. Principal and interest (July 1, 1953 and semi-annually there¬
after) payable at the office of The Philadelphia National Bank, Fiscal Agent for the City of Philadelphia.

to

are

offered subject to prior sale before

or

after publication of this advertisement, for delivery

and if issued and received by us and subject to the unqualified approving joint legal opinion of
Townsend, Elliott & Munson and Messrs. Morgan, Lewis & Bockius, Philadelphia, Pennsylvania.

again put

appearance, with chemicals,
antibiotics, oils, and rails succes¬
an

sively

steels

actions
stocks

almost

such

suffered

at

and

as

with
carpet

two

periods

described above and studied their

have

been

divergence

sional

well

as

regarding

look;

further,

by

marked

extreme

ions

aware

as

of

that
an

of

waves

ment

profes¬
opin¬

the

business out¬

liquidation

based

Goldman, Sachs & Co.

Mercantile Trust Company

Salomon Bros. & Hutzler

Hornblower & Weeks

Eastman, Dillon & Co.

a

neace

settle¬

1952; January-May, 1952:
fear of a steel strike and result¬




Incorporated

R. W. Pressprich & Co.

First of Michigan Corporation

St. Louis

Barr Brothers & Co.

Weeden & Co.

Harris, Hall & Company

Roosevelt & Cross

Schmidt, Poole & Co.

Dick & Merle-Smith

F. S. Smithers & Co.

Bache & Co.

City National Bank & Trust Co.
Kansas

Dolphin & Co.

Aubrey G. Lanston & Co.
Incorporated

Incorporated

(Incorporated)

Incorporated

Fidelity Union
Trust Company
Newark, N. J.

Bramhall, Barbour & Co., Inc.

William Blair & Company

City, Mo.

G. H. Walker & Co.
The First National Bank
of

in

in

Blair, Rollins & Co.

The Illinois Company

DeHaven & Townsend, Crouter & Bodine

Robert Winthrop & Co.

on

soecific fear (e.g., February-

Korea; October-Novem¬
ber, 1951: fear of business reces¬
sion

Stone & Webster Securities Corporation

that these periods

July, 1951: fear of

The First National Bank

C. J. Devine & Co.

Savings Bank

amateur

have been composed of recurrent
some

The Philadelphia National Bank

of Portland, Oregon

selectivity

of

characteristics will be

they

Harris Trust and

packers.

Anyone who has lived through
the

Halsey, Stuart & Co. Inc.

Bank of New York

prices

along

groups

meat

The National City

re¬

defensiv^

lowest

decade,

a

marginal

makers

the

war

sharp

certain

and
sold

advances,

various

and

beneficiaries

in

large

scoring

while

October 8,

Memphis

1952.

Moore, Leonard & Lynch

Stock

Donald
asso¬

registered

adhered to two separate patterns,

selectivity.

Co., 67
City,

New York

thought the boom Wingate Lamb has become

very

to

Wall

the

but

Granbery, Marache

Granbery,

immediately

until predict what the emotions of the
speculative crowd and their more

was

Joins

to

pattern ob¬

thereafter when the postwar boom

not

Stranger

corner.

things have happened.

say

the part of wisdom to

It is

just around the

as

that the stock market reaction
it will not follow the

lightly, that the
universally heralded
relapse
may
coincide
a

with the next rising stock market
—on the theory that
prosperity is

business

in

of

business

periods,

9

dismissed

advent

by impor¬
tant general rises in the price of
come

be

to

behavior

followed

were

should

tainted

following

are

patterns

stocks.

frequently

market

of

same

common

analogies between the last

years

period, during which many is¬
it will be* recalled, were far
historically, while the

conservative

has

ex¬

the

recession

yield

pessimism abates.

past in price

years

on

to

hot breath of impending recession

cyclical stocks, which
sophisticated
investors
presum¬

Co.

&

fetched

far

comparison to the 1947-

number

sues,

unpopular

Members, New York Stock Exch.

too

seem

1928
period
of
this point it does

At

from cheap

brought liquidation into the then
By BRADBURY K. THURLOW

1926-early

selectivity.

re¬

tend this

business

in

time in the

For Stocks

August-Sep¬ the

fear of business

1953 plus

strike).

reflected

(1321)

Fahey, Clark & Co.

The Commercial and Financial Chronicle

.

Thursday, October 9, 1952

.

.

(1322)

10

surplus of exports

position of sterling is determined

any

relation to soft currency areas.

by the balance of payments. If that

from

if there was a
in

Adverse Factors in

sterling

on

EINZIG

the adverse pressure that has de¬

veloped against sterling from time
to

time during

be

recent years may

grouped

under the fol¬

head¬

lowing

Ad¬
bakpi.ee

(1)

ings.
verse

of visible

and

invisible
trade.

Net

(2)

uited

unreq

their holdings through
purchasing British goods, thereby
increasing the volume of unre¬

liquidate

foreign
(5)

holders.

Dr. Paul

quited exports.

Einzig

(6) Defer¬

held abroad.

ring of payments for British goods.
Although the trade balance is

third

ences

have
so

been

that

a

not

the

the

among

of

the

causes

result of the

dation
ances

of

unrequited

have

prominently

tend

sterling

owned by overseas

and partly to

were

bal¬

countries

the granting of sterl¬

means

trade

do not of
balance

course

and

area

easy

export to

to

or

to Western

strain

to

market.

sellers'

large-scale unem¬

buyers in general
hand, exporters

upper

all

period

a

their

to

nerves

lead

amount

other

and

to

when

relation

in

countries

such

benefit the

their

is

and

the

balance

in need of such facili¬

ties. The exports paid for by

anticipation of
to

immediate

by wide

an

offer

to

is under

buy

any

❖

though

an

of weakness, is a

cause

two- weeks

❖

days

pre-war

rightly

whenever the

wrongly

or

If you

became

markets

seen.

[The

borrowing

because there is a ban on

credit
and

in

granting

facilities for such purposes
this

respect

at

any

rate

control
is reasonably
watertight. On the other hand

exchange

foot

hot

the

and

Frequently the
before

you

get

a

getting

move

can

Speculation against sterling as¬
also the form of delavJn°

sumes

common

more

markets

period in the hope that sterling
might depreciate before maturity.
British exporters are reluctant to
refuse

such

alternative
would be

a

facilities
in

because

instances has

many

deferment of the pur¬

was
an

to

they

so

the

dollar

currency

apt to develop and

adverse

sterling in which case they might
have to

hard

pressure

sterling and the loss of gold

on

even

sell at

a

loss

in order to

are

ing much lower prices.

Although the speculative factor
plays

an

important part, the basic

circumstances

to

be construed

as

a

Russell

& Gardner,

nated

given

peek that usually
such

worries

If stocks show

a

tendency to dry up, or react,
are sufficient for

these events

try

do something.
something takes
of selling.
As one
to

doing
form

sale

it cre¬

consummated,

is

an

tape picture that starts
others to. follow suit, or at

ates

ISSUE

October 8, 1952

350,000 Shares

a

Robert

A.

Magowan

o

don't watch the market
daily, the chances are you get

you

from

calls

(Par Value #1.00)

man

customer's

your

who informs you

of the

tape action plus the newsy

Price

bits that

$9.75

per

Share

are

The Prospectus may
is circulated

dealers

Merrill

or

brokers

be obtained in any State in which this announcefrom only such of the undersigned and other
as
may lawfully offer these securities in such State.

Lynch, Pierce, Fenner & Beane




About

if

two

or

tid¬

customers

every

man's stock in trade.
if

meet

*

if

three weeks

.

Dean Witter 8C Co.

Ingalls

C.

Roscoe

Pierce, Fenner

Mark

New York, as Treasurer,
announced today from the
Hopkins Hotel where the

Board

of

was

Governors of

the Asso¬

completed the first series
sessions
of its Fall Meeting.

ciation
of

held

be

will

series

second

The

balance of the week
Angeles at the Ambassador
the

Hotel.

officers

of

Election

take

will

place at the Annual Meeting of
the Board'to be held in New York
19, 1952.

Nov.

resident of the
of New York
birth in Englewood, New

Ingalls,

Mr.

metropolitan
since his

a

area

currently resides in PelSubsequent to gradu¬
ating from the High School of
Commerce in New York City and
from Columbia University in 1912
with a B.S. Degree, he entered

Jersey,

ham, N. Y.

the

business as an em¬

securities

Trask &

Spencer

of

ployee

several

After

Co.

when things looked
pretty grim, I suggested re¬
entry on the long side. Since
then they've gone up and went
down again. From where we
sit
it
looks like they'll go
ago,

down

final

Governor of the

a

its Public Relations

the

two

past

Chairman of

Corp.

He is a Di¬

First Westchester
(New Rochelle).

the

and

Bark

He is also

Committee for

years.

G. White Engineering

rector of J.

National

a

Trustee of the Bronx

He has been active

Savings Bank.
in civic affairs,

being

a Past Pres¬
the Board of

ident and Member of

of

Education

Exchange

Stock

of

Firms since 1949 and

Pelham,

well as

as

Past President and Director

Pelham

Community Chest.

1940-47

Selective
a

he

served

Service

on

Board.

a

of the

From
local

He was

member of "K" Company, Sev¬

enth
and

Regiment
served

analysis I don't believe

1918-19.

more.

been

Association

OfUcfT.

bit

to

senior partner.

He has

But in the

a

years

moved

he

be the

Common Stock

f

Merrill Lynch,

with that
Struthers &
least think of following suit,
Hiscoe,
becoming a partner in
and before the day is over this 1916.
In
September
1924,
he
formed
the
firm of Ingalls &
pervades the entire market.
Snyder of which he continues to

Sitting through such tense
moments isn't easy.
Even if

California Electric Power

Vice-

as

Presidents and

firm

NEW

St.

have
nomi¬

Louis,
been

frequently translated into

to

Reinholdt

f

o

in Los

is

worries.* If you're

concern.

E.

Gardner, 'Jr.

little peek

vital

us

Boston, and

during

curtain

market

&

all

with

a

compete with the other firms quot¬

offer to sell or as a solicitation of
of these securities. The offering is made only by the Prospectus.
no

campaign

other

misdeeds,

our

change Firms.

it

charges

us; a

the Association

of

Ex¬

& Beane,

ciation of sterling. This attitude of

the

Stock

Co.,

present anxiety. As each side

are

President

1953
of

Ingalls of Ingalls & Snyder,
has been nominated

York,

An¬

chases in anticipation of a depre-.

the

C.

New

thony

great deal to do with the

a

coe

Tucker,

a

*

election

hot

The

as

Pres. of Exch. Firms

is over

than the active

:j:

if

the

are

SAN FRANCISCO, Calif.—Ros¬

W.

whey out of us.

the

those

of

see

oj

presented
of the author only.]

Frost

all like to

we

any

those

They

goes.

close quote from

reasonably

this

at

with

Horace

even

in

necessarily

Ingalls Named for

Then

it

so

not

Chronicle.

pessimistic
you'll go crazy
sterl¬ keeping up with the daily
largely
gyrations. One hour the oils
sterling in

it.
This go up, then go down.
method cannot be used at present few of the rails start

do

coincide

time

try to second guess

selling

and

expressed

views

article

ing speculation developed
London

to

on

long stocks until further
signs of the current winds are

concerning the prospects of
through

if

In the meantime hold

market

this

❖

your

sBy WALTER WHYTE =

international

and let them,

ago

under which
stocks. Obvi¬
ously this method isn't fool¬
proof.
I've yet to see any
method of trading that is fool¬
proof.

Says—

that experi¬

a

if

if

To safeguard against the
unexpected, take the lows of

Whyte

ence.

In

This, nat¬

belief, not

a

certainty.

source

deferred

vertibility attempt in 1947 and the
British authorities are naturally
anxious not to repeat

will start

levels.

of strength. The represent a line
payments have
to
be
you won't carry

potential

the
announcement

end.

orders from

speculation,

overseas,

This

This

an

depreciation leads

a

loss of

definite

a

foreign importers cannot be con¬ sorts of
demned
as
purely
speculative. behind
working to capacity they are in¬ They have to safeguard themselves each of
clined
to
concentrate
on
those against the risk that their rivals
adds to
markets which give them the least might buy the same goods much
after a
devaluation of in the
trouble. As a result an adverse cheaper

ing facilities to overseas countries
which

to

come

Apart from instances in which the

general rule it was

and

there

During

were

wartime

bound to

increase their sales to all markets.

of the weakness

partly the
unduly speedy liqui¬

sterling. They

is

to

ployment
ployment

figured

un¬

port to the latter. This is apt to
occur during a period of full em¬

trade balance.

exports

of

neglected opportunities to ex¬

and

When

time

term

and

export

psychological effect of the adverse
to

able to prevent

been

reaction

these

urally, is only

the

of

sense

much more difficult payments of sterling for British much. But because they come
the Dollar Area. exports. Overseas importers en¬ at a time when we are anx¬
deavor to obtain credit facilities
Many British firms were inclined
in Britain for the longest possible ious, they tend to scare the
to take the line of least resistance

to

incomparably smaller,

time

a

Sterling Area

Europe

large part of the loss of

be attributed indirectly to

From

time to time an

countries. As

gold during those adverse spells,
even if due directly to speculation,
can

from

authorities

the

overseas
holders cannot be pre¬ the order clerk.
proportion of British vented from
speculating against
if
:!<
*
exports was directed to soft cur¬
sterling by allowing their working
rency countries and there was not
Such
markets
aren't
new.
balances in London to decline well
enough left for
hard currency below the normal level.
As a matter of fact they're

probably

would

is far

in

large

influ¬ comparatively

but the main cause was

speculation

maldistribution

the

From

trade.

duly

speculation. In the absence of an
adverse trade balance the extent
of

us to the
of adverse pressure on

cause

sterling,

sion. Its effect was apt to be ex¬

speculative

available

This brings

imported.

adverse movement on every occa¬

by

a

to countries which paid
in hard currencies for the goods

means

aggerated

a

was

for export

the only factor af¬
fecting the position of sterling, it
Is
beyond doubt the most im¬
portant single factor. Other fac¬
tors may have contributed to the
adverse
pressures
in 1947, 1949
and 1951 but a large import sur¬
plus was at the bottom of the
by no

surpluses

of

reduction

such

of

British goods

for

demand

effects

the

of

One

sterling
balances

sterling many over¬
holders of sterling hasten to

seas

of

liquidation of

never

circumvention

of distrust in

(4)

sterling facili¬
ties by

have

exports considerably exceeded un¬
requited imports. It seems reason¬
able to assume that during periods

tion of foreign

Abuse

purposes

watertight. The British

broader

sure

variety of
made sooner or later and the un¬
methods of the highly involved
duly reduced working balances
factor.
regulations. Redirection of goods
have to be replenished. When this
bought within the Sterling Area
must be added to that of the visi¬ to unauthorized countries is one of is done sterling regains what it
lost
during the adverse period.
ble trade deficit. On the other side the favorite methods of circum¬
What matters therefore is that the
of the balance sheet there are the
vention, but there are many others.
balance
of
payments
position
unrequited imports represented by Such is the extent of evasion that
dollar aid from the United States on more than one occasion it con¬ should be kept sound.
and Canada and by the liquidation stituted the main argument against
of British investments abroad such
restoring
the
convertibility of
as
the Argentine
Railways. On sterling during periods when the
Tomorrow's
balance the discrepancy between
trade balance was reasonably fa¬
the unrequited exports and unre¬
vorable and the speculative factor
Markets
quited imports for the whole post¬ was in favor of sterling. It was
war period may not be very large
this
factor
which
caused
the
but from time to time unrequited
Walter
breakdown of the premature con¬

exports. (3)
Maldistribu¬
trade.

certain

for

number of causes of adverse pressure
on
sterling exchange, but finds chief cause to be the un¬
favorable balance of payments that has persisted in British
Empire during last few years. Says speculation in sterling is
minor

the abuse of sterl¬

ing facilities by overseas

Dr. Einzig enumerates a

LONDON, Eng.—The causes of

was

holders.
The system under -which certain
types of foreign sterling accounts
were
only permitted to be used

Sterling Exchange Situation
By PAUL

another source of pressure

Yet

new

is favorable any speculative pres¬

U.

S.

Y.)

(N.

as

a

Chief

Naval

1911-16
Petty

Reserve

in

Volume 176

Number 5158

.....

The Commercial and Financial Chronicle

(1323)

creeping

The Securities Business—

*One

An Over Regulated

Industry

By G. KEITH FUNSTON*

of interest

are

the .various groups that

to

or

regulation

mass

make

the

up

exces¬

a

the

great deal of truth in

lower Capital Gains Tax.

observation

that

who

man

a

talks

about

his

ways

find

sympathetic audience

a

troubles

simple

the

who

can't al¬

—I suppose on

the

for

just because of

an

tion that I believe the

change occupies

listeners

our

have

their

of

think

about.

about

eral
we

is

problems

think

you

'The

of

Keith

Funston

than

directly

Stock

may

Exchange

be

can

national market place,

as a

servant, of
But there is a
larger view—the Stock Exchange
in terms of the healthy industrial
growth of our country, the Stock
Exchange in terms of the con¬
sumer,
the worker, the saver—

liquid,

the

efficient,

millions of people.

in

and

It

which

I

and

relations with

its

ment.

is this

govern¬

larger view with

presently concerned,

am

which

about

talk

to

want

I

with you. For the Exchange stands
benefit a great deal from the

to

help

other articulate
position to offer.

and

you

groups

in

are

is

Detroit

a

duction

A

wonder

here

concepts:

upon

Mass

pro¬

interchangeability of

and

parts.
The automotive industry,
in developing those two techniques
to an extraordinary degree, laid
down

pattern that industry gen¬

a

Motors

Corp.,

for

in¬

stance, has developed into a com¬

which

pany

world.

I

am

literally serves
quite sure that

the
one

the company's success,

for

reason

a

year

owners.

problems.

narrow

ago,

The

asked

we

We wanted to know

many people own shares in
American industry, who
they are,

where they live, what they do for
a
living, the extent of their share

ownership.

We looked

the

on

sur¬

vey, which was published a few
months ago, as a guide to the fu¬

ture,
far

road-map to tell

a

how

us

had come, how far

we

had

we

to go
in our efforts to put the
ownership of the tools of produc¬

tion in the hands of the people.
Such

ideal

broad

then.

ownership

was

It still is today.

our

That

is the kind of public

ownership of
industry we need, the kind of evo¬
lutionary capitalism which will
keep this country strong and free,
the kind of

democracy envisioned
by Alfred Sloan when he urges
every American to become a share
owner.

Tne

that

place for

always,

we

are

ing

especially active in study¬
problems

our

and

have

five

share

While

6,500,000

owners

corporations.

in

It

that these share

people

publicly
also

are

owned

showed

owners

are

a

direct

self-investigations

think

I

low

York

turnover

Stock

small

part

the

on

Exchange
result

a

is

of

New

in

no

excessive

Federal'5 regulation which
is
flected in a hardening of the
teries
of
the- market
for

re¬

Let

new

the back¬
of the heavy regT

ground of some

ulatory load
change

now

under which the Ex¬
operates.

Before I do,

oratorical

tician

are

famil¬

at least the broad

provi¬

us

Out of those laws, and but of a
revision of our own rules

drastic
and

regulations,
that

emerged

Stock Exchange

a

built

was

We at the Stock

high regard

a

that

Exchange have
the

for

objectives

sought by Federal reg¬
ulation.
For those objectives are
ours, too.
We have no intention
to

rant

and

ernment."

"agin

rave

For

four

the

of-

consequently know well
the good intent and conscien¬

tious effort expended by most
gov¬
ernment administrators in

serving

the

believe

public

welfare.

We

firmly and sincerely, nevertheless,
that

the

pendulum

of

regulation

has swung too far with the result
that the raising of new venture

capital and the Stock Exchange's
usefulness
toda£ as a national
marketplace have been impaired.
It

is

fair

a

statement

that

heavily regulated indus¬

tries in the United States.
the time has

I think

to re-evaluate,

come

realistically and honestly, the
sition

the

of

Stock

curities

The

Wind"?

roughly

you

recall

novel, "Gone With

That book

475,000; words,
much

Do

contained

only

or

40%

as

reading.

Today's over-regulation

has its

roots in the national spree of stock

speculation
The

The

which

culminated

price

collapse of
public demanded

1929-1932.
victim.

a

victim—the securities

try—was

laid

bare

on

in

the

indus¬
oper¬

essential

life

part of

po¬

Exchange

the government demanded a

total

the

securities industry today is one of

own
rules, the Federal rules,
the Blue Sky laws in various
states,
and other dicta affecting the se¬

words.

was

our

as

business

today.

In

the

thirties

the

public

and

his

Stock

Street in what he

needs

of

industry and the needs
investing public. And if

of

the

we

do not

those needs faith¬

serve

fully and efficiently,
well

close

away

the key. If

fy

a

put out of business.

no

nomic
I

parasites.

believe

the

New

you from my

in

academic

heart that not
circles have

honorable

more

than

those

I

or

scrupulous

have

This is

not an

unfortunate—the

it

Briefly,

here

are

of

some

of

that

interdepend¬

Stock Exchange—

The New York
An

Expression of Community
of Interest

I like to think that this commu¬

of

finds expression

interest

imthe New York Stock Exchange;

it

is.

on

trading floor of

the

than

If

I

stock

want

to

buy one share of

in Detroit

Edison

the New York Stock

Federal

listed

Only

start, of course, has been
the effort to broaden the
share

a

of

ownership.

chase price

of the pur¬

in cash.

But I decide I want

an

unlisted

share of, say, Super Na¬

a

an

I have to

Co.

which

pay

75%

cash for

for

us

low

discrimination.
I

the

regard the Stock Exchange

symbol of

a

free

and

enter¬

prising business system, the sym¬
bol of a liberal capitalism dedi¬
cated

to

the

common

good.

as

credit
as

25%,

depending

on

out.

If I want to buy a
chine

or

a

washing
by

Continued

We

talist

on

page

any

of such Shares.

(Par Value $20 Per Share)

damental

of

of free men is
right to buy and
It is there that the

rights
the

sell property.

study being devoted to the sur¬
at the Exchange—we became

a

little

more

usual.

ated

presented

by-the -public and
of the

by

the

business, the stock¬

And

the

owners

business may be people
address

luncheon

by

meeting

Detroit,

the

who work

Mr. Funston
at
a
the Economic. Club
Mich., Oct. 6, 1952.

of

Detroit,

of




Dean Witter & Co.

Eastman, Dillon & Co.

Kidder, Peabody & Co.

and

introspective

than

by

when

because

related

growing

nies and

Brookings

trading
the

to

number

shares listed

of
on

was

vol¬

It

Iyn:h, Pierce, Fenner & Beane

trend

seems

to

of American
us

that

some

Walston, Hoffman & Goodwin

Smith, Barney & Co.

H. M.

compa¬

form

of

Byllesby and Company
(Incorporated)

the Ex¬
business.

First California Company
Incorporated

large

change, is running counter to the
main

Merrill

Our concern with the data

heightened
ume,

holders.

The First Boston Corporation

vey

efforts of management are evalu¬

owners

Copies of the Prospectus may be-- obtained from any of the several under¬
only in states in which such underwriters are qualified to act as
dealers in securities and in which the Prospectus may legally be distributed.

BIyth & Co., Inc.

thfe Exchange that one of the fun¬

exercised;

share

writers

opportunity."

Studying the Brookings Survey
—and, believe me, there is plenty

October 8,

1952.

Central Republic Company
(Incorporated)

ma¬

refrigerator,

Common Stock

Price $26.35 per

what

arrangement I could work

California Oregon Power Company

magazine put it well when
they commented, "What the report
actually portrays is not so much
a capitalist achievement as a
capi¬

a

to stand

250,000 Shares

tune"

is

unregulated market.

share of this company? Certainly
not if I borrow at a bank.
The

ofering of these Sharesfor sale, or an offer to buy, or a solicitation of an ofer to buy,
The ofering is made only by the Prospectus.

"For¬

a

regulation decrees that I

must pay at least 75%

280,000 owners
earned less than $2,000 per year.

base

on

Exchange,

$10,000;

made in

the

exasperating ways in which
proper free
flow of equity
capital is hamstrung.

The time has
stock is not traded on a registered
up and talk
turkey to our critics and our ene¬ securities exchange—government
mies. We're not asking for favors margin regulations do not apply.
I might pay 40% cash, perhaps as
nor will we accept prejudice and
come

tistical totals, however, were the
findings on the trend of owner¬
ship. We now have pretty good

less

Wall

the

us

personal

men

in

met

more

Industrial

resign that job.

even

found

I

Street.

in

us

Stock

have watched from the center the
work of the
Exchange. I say to

traded

years.

York

Exchange is serving industry and
the public faithfully and consci¬
entiously. For over a year now, I

Do

for

as

throw

public servant, we should
There is
place in this country for eco¬

as

be

in that

come

and

do not quali¬

we

boy.
The Exchange was
elected and has served honorably
has

might

we

doors

our

ping

position for too many

Serves

The New York Stock
Exchange
does not exist for the exclusive
benefit of its members and mem¬
ber firms.
It exists to serve the

tional

think the time

interests.

Exchange

stock,

I

best

own

whip¬

to

against the

or

The Nation

ment and

Our

industry

gov¬

I

years

Wall

are

The

employed by the Federal Govern¬

an

1,000,000

thinks

were

though, let me give you an amus¬
ing comparison to show you just
how completely regulated we are.

that marathon

the

on

fundamental premise that the pub¬
lic interest is paramount.

regulations

conditions, of

ago

meanderings of a poli¬
trying to rattle the bones

the old

of

of

meet

20 years

some

Investi¬

sions of these laws.

the most

sketch for you

me

iar with

ar¬

equity capital.

that all of

sure

to

ownership interest in industry.
More significant than these sta¬

is often too little recognized.

♦An

are

by no means completed as yet,
they have confirmed our opinion
that;

am

administration

adopted

adopted

gation—the Banking Act of 1933,
the. Securities Act of 1933 and the
Securities Exchange Act of 1934.
I

the

Even

owner.

importance

cf

Regulation

were

Pecora

an obligation to
fight for the
principles in which we believe
so
deeply—whether it be against

mem¬

bers of almost 5 million family
spending units—and that the 13,000,000 people making up those

have

our

Federal

result of the

a

proving that there is no typical
Three-quarters of
labor, con¬ share owner.
the
owners had annual incomes of
today—

management,
and

sumer

For

own

structure, our costs, our rate struc¬
ture, and, of course, our liquidity.
Excessive

Three Federal laws
as

have

community of interest be¬

lying
tween

nity

our.

people conducting searching in¬
quiries into various phases of our
work, into our organizational

its ability to meet and solve evidence that the efforts of in¬
problems, has been the acute dustry generally and the securi¬
ties industry to spread ownership
awareness by management of the
importance of the share owner to are taking effect. I can make that
the company—and the importance clear by
telling you that about
of
the
company
to
the
share one-fifth of the share-owning pop¬
ulation
owner.
I
joined the ranks of capi¬
suspect
that another
reason
was
the company's early talism during the past three years.
The findings were startling, too, in
recognition of the strong, under¬

ence

trying to
Currently

of

groups

for

and

securities.

of course, sub¬
jecting our operations to intensive
self-examination. But at present

the

Brookings Survey disclosed
some

families

erally is still following.
General

Stock

why the
Exchange

how

civili¬

new

built

been

has

related

two

the

of

one

cities of the world.
zation

is

matter of concern to
everyone.
You gentlemen

share

I

at first glance.

viewed

It

Brookings Institution to make, on
behalf, a national survey of

more

appear

Stock Ex¬

our

them affect all
of

na¬

may recall that,

Ex¬

some

or

our

a

about

York

change;

com¬

why the Stock Exchange owes
allegiance; to no one particular
group but to all the people, and
why the health of the Exchange

sev¬

Stock

diminishes.

It is

have at the

New

life.

the

of

not local

are

Nevertheless,
I am going to
risk
telling^
you

business

problems

to

own \

market

We're

key position in

a

in¬

end

nerve

atmosphere which pervaded Wash¬
ington? at that time.
'

transacted, de¬

volume

as

we

up

Our

market

ous

who make

a

that essential liquidity,
Exchange cannot function as a

true

people

this

is

operation.

efficient

ating table and every

explored—with
a
vengeance.
I
don't think it necessary for me to
recall for you the
witch-hunting

the

ours

find effective solutions.

groups

of

Without

Says

the

industry,

munity of interest among the vari¬

theory that his
troubles

and

company

is

that

of

in direct proportion to the

creases

buy the company's products.

It

assets

market

volume of business

industry is the most heavily regulated in nation, and
this is threatening extinction of
equity financing.

a

the

production

creases

securities

There's

in

fair' and

a

as

Tax; and

chief

ability to provide the public with

throttling nation's securities markets
and damming up the flow of capital into business.
Recom¬
mends reduction of margin rate to 50% or
less; elimination
of Excess Profits

the

automotive

narrow,

nation, New York Stock Exchange President condemns
sive Federal

of

-

possible number of bids
buy and offers to sell. Like the

to

but

overtaking

greatest

not local

are

is

market, any securities market,, is
its liquidity—which is
simply the
presence

President, New York Stock Exchange

Asserting Stock Exchange problems

paralysis

the nation's principal market
place

for securities.

11

the

49

12

The Commercial and Financial Chronicle

(1324)

News About Banks

by the bank's directors, members
of the Chase staff have been in¬

BRANCHES

NEW

OFFICERS,

Bankers

and

ETC.

REVISED

formed.

major

CAPITALIZATIONS

more

$320,000,000. The increase would
be accomplished by transfers from
reserves and from undivided prof¬

The first bank in the New York

Federal Reserve District to
admitted

Federal

the

to

be re¬

Reserve

be

Deposits

Washington and will
be made effective as soon as ap¬
in

proval has been received.
Under
its, in approximately equal pro¬
the terms
of the new program
Estimating
undivided the bank will bear the entire cost
requirements law became portions.
a
member bank again on Oct. 3. profits after the transfer at more
of the retirement plan, and con¬
Charles F. Mott, Chairman of the than $60,000,000, the total capital
tributions by employees will be
funds of the bank would exceed
Board, and Richard W. Hawkins,
discontinued when it becomes op¬
President, of the Northport Trust $380,000,000. The capital funds of erative. The salary base for com¬
Company,
of
Northport,
Long the affiliated City Bank Farmers
puting pensions will be the aver¬
Island, announced the bank's ad¬ Trust Company total more than
age of the last five years before
$31,000,000.
mission,
its
resumption
taking
if
if
if.
retirement, and the multiplier for
place after a lapse of about two
each year of service will be \Vz%
THE NATIONAL CITY bank OF N. Y.
years.
It is explained that the
instead
of
varying
percentages
Sept. 30, '52
June 30, '52
bank had withdrawn in May, 1950,
as
used in the present formulas.
>«$
$
when it opened a branch at East
Total resources. 5,888,906,767 6,025,683,556
Special provisions will be made
Northport and could not meet the Deposits
5,402,085,923 5,541,640,663 under the new plan for survivor's
high capital
requirements then Cash and due
benefits
and
for
other
contin¬
from banks
1,588,817,014 1,541,981,993
stipulated for operation of an out- U. S. Govt, se¬
gencies designed to safeguard the
of-town
branch.
Congress
has
curity holdgs. 1,495,131,149 1,547,303,755 members of the staff and
their
since amended the law to give the Loans and bills
families.
Improved
recognition
discounted
2,036,722,765- 2,180,010,102
System under the recently revised

capital

of

of the

Governors

cretion to

Undiv.

Bank of

city bank farmers trust company,

New York,

Sept. 30,
Total

Cash

if.

voted

Loans

64,008,495

will interrupt their

or

employment to serve in the U. S.
Staff members who

have contributed

with the

to do

81,026,495

75,961,384

contributions:

centive

options of

they

plan,

the

thrift-in¬

purchase

or

what

deposit

may
new

shares with

000

of

bills

&

dis¬

3,379,555

4,110,582

11,267,715

11,240,909

counted

of The

profits—

Bank

National

Chase

with

York

25

or

service attended

$150,000,000

that, at the an¬

a

honor

Oct.

New

of

more

years

300,000

Total

Cash

Adrian

entered

banking business at
H i

on

8

at

Waldorf-

the

new

annual

dinner

for

the

eighth

first

Undiv.

standing, to shareholders
ord

at

the

statutory
crease

that

of

issuance

the

of

approval

of

in¬

by the Comptroller of the

Currency.
such

issued

time

of rec¬

on

It

be

will

statutory
Jan. 19.

requested
be

approval

The Comptrol¬

ler of the Currency

has given his
tentative approval to the increase
in the capital stock.
The Board

which

the

Harold

are

L.

Van

Victor

and

F.

Emanuel

of

the

change

in

Bank

and

1872

his

father, George S. Adrian, changed
its

the

to

name

Commercial

Ex¬

change Bank during World War I.
Mr.
Adrian
was
Vice-President
Director

and

the

of

Commercial

Exchange Bank when it

and

surplus from $300,000,000

to

Total

completion

business.

estate

Cash

announcement

is not

due

from

256,608,150 249,130,399

343,068,583 383,366,867

holdings
Loans and bills dis¬

counted

142,591,710.144,425,037

Undivided

profits—

j.

morgan

p.

in

Yorktown

in that

1926

Director

a

of

under the new

offers

bank

to

plan,

staff

due

from

175,229,261

fund

who

future

*

*■

Loans

&

Undivided

an

the

marine

bers who leave the bank within

Total

the

bank

ployees

now

in

an

gives

to

amount

all

of

service

the

cost

of

Cash

$

1,384,749,453

1,460,520,479

em¬

change

of

con-

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

390,700,418

418,754,843

holdgs.

304,552,616

382,368,675

discts.

586,642,991

575,134,810

profits—

16,209,901

Govt,

S.

&

Loans

__

se¬

$

the

new

456,379,512 454,819,315

new

york,

139,597^30 142-671.53i
124,744,487 132,607,142
176,625,799 169,169,305

Savings

Italian

Savings

the

was

When

the

Total

Bank

and

770,368,469 826,341,806

resources

Deposits
and due

Cash

from

banks

217,754,852 214,887,587

U. S. Govt,

security

191,749,679 250,375,792

holdings

discounts 325,049,247 329,352,458-

&

Loans

Undivided

Italian

Sept. 30, '52 June 30, '52
525,065,094 523,284,686

resources

472,376,559 471,371,123

Deposits
Cash

and due

from

128,865,104 124,135,663

banks

security

U. S. Govt,

81,392,060 107,614,007

holdings
bills

&

Loans

dis¬

266,936,514 241,264,745

counted

Undivided

He

was

ap¬

*

*

*

Total

resources.

Deposits

The Cincinnati

Cash

Enquirer, Inc.

brown brothers, harriman & co.,
Sept. 30, '52 June 30, '52-

S.

198,985,069 193,738,611

Deposits
from

55,321,077

banks

bills

&

Loans

Capital and surplus

Due August 1,

Sept. 30, *52

June 30, *52

$

$

Govt,

curity

740,644,434

714,650,111

736,130,882

755,314,385

and

Undiv.

1,339,198,024

1967

1,397,599,413
82,184,218

84,044,353

*

if

NEW

*

resources.

Deposits
and

from

S.

YORK

may

be obtained from the undersigned.

836,373,260

822,718,054

discts.

840,491,896

814,092,487

profits—

18,469,203

47,087,076

*

&

Deposits
Cash

and

due

from banks

October 8, 1952




U.

S.

Govt,

curity
Loans
Undiv.

discts.

profits—

58,099,169

63,674,240

profits—

3,017,605

2,915,587

if.

Total

$

and due

banks

from
—

&

38,981,864

43,039,425
39,189,621

profts..

1,121,346

1,302,91*

it

of

was

the

of

Cashier
Bank

*

if

Sadlik, on Sept. 30, was

elected to

1,659,511,136 1,707,538,687
''

39,102,165

43,960,027
discounts

Undivided

John

35,868,681

security

holdings
Loans

131,669,835

109,130,639 113,462,929

Deposits

1,827,938,082 1,873,104,534

office of Assistant

the Franklin National

Franklin

announced

Square,

by

N.

Arthur

Y.>

TL

Roth, President. Mr. Sadlik joined

470,481,397

517,505,655

418,854,299

457,248,130

732,885,414

720,131,190

1951,

after

22,210.532

with

the

the

23,482,174

$

129,305,037

resources

*

June 30, '52

of new york

$

COMPANY,

se¬

holdgs.

&

72,155,016

discounts

Sept. 30, '52 June 30, '52

YORK

$

HALSEY, STUART & CO. INC.

&

Loans

*

TRUST

Sept. 30, '52
resources.

33,879,400

70,642,060

U. S. Govt,

NEW

Total

52,619,234

holdings

Cash

se¬

BANK

from

security

grace national bank

holdgs.

CHEMICAL

$

165,104,660 153,374,102

$

due

*

Copies of the Prospectus

and due

banks

June 30, '52

834,507,473

&

company

york

COMPANY,

742,139,252

curity
Loans

trust

$

-

it

TRUST

2,682,604,705 2,732,503,686
2,465,654,679 2,521,084,890

banks
Govt,

Undiv.

14,205,28*

if

199,695,712 187,751,975

resources

Deposits

Undivided

$

U.

14,225,284

Sept. 30, '52 June 30, '52

U. S. Govt,

dis¬

profits—

Cash

48,493,730

new

of

Cash

se¬

holdgs.

Loans

Total

53,633,415

48,966,386
it

states

united

Total

__

Sept. 30, '52

Price 100% and accrued interest

Y.

52,978,74)1

-58,062,245
dis¬

counted

3,000,477,776 3,059,578,614

MANUFACTURERS

Dated August 1, 1952

N.

due

counts

Fifteen-Year Sinking Fund Debentures, 5%

OF

$

$

229,668,648 224,256,495

resources

2,559,483,276 2,624,548,347

and

from banks

U.

COMPANY

if

*

sjs

it

TRUST

10,569,02*

10,918,031

profits..

holdings

pointed Chief Accountant in 1943.

$

$
Total

Cash and due

River staff.

of new york

trust company

U. S. Govt, security

of

and

bank

national

East

member

a

if

if

if.

public

the

11,544,381

12,271,377

profits..

Calcaterra

became

684,768,690 741,468,953

—

Savings Bank merged in 1932, Mr.

$3,500,000

$

$

the

GUARANTY

y.

n.

Sept. 30, '52 June 30, '52

Total

the East

company,

trust

york

419,210,564 413,597,353

"15,630,929

*

*

it

Sept. 30, '52 June 30, '52

payments.

gage

due

from banks
U.

york

June 30, '52.

$

1,225,811,276 1,312,738,905

and

Undiv.

approxi¬ Bank, of New York which

the

resources.

Deposits

CO.,

$

new

company,
Sept. 30, '52

york

"""

a

trust

10,476,779

*

*

*

trust

irving

*

midland

new

joint

by

11,148,455

profits..

Heide,

curity

reserve

178,780,808

220,180,227 248,022,39*
discounts 282,318,295 284,801,218

holdngs

or

members

a

$

808,394,185

banks

annu¬

participate voluntarily

incentive to build

$

770,140,855

666,444,200 720,985,261

Cash and

He also

Henry

resources

U. S. Govt, security

merged with The Marine

was

Midland Trust Company.
was

Total

Deposits

remained

and

incorporated,

york

Sept. 30, '52 June 30, '52

became

post until 1949, when the

*

co.

&

trans¬

He

4,551,218

4,883,101
*

*

an

The

and

banks

the first President of the Bank of

River

This

738,457,214 768,889,837

action, he spent six years in the
real

$

792,024,165 822,316,337

resources

new

this

of

york

U. S. Govt, security

to the National City Bank in 1921.

Upon

trust

bank
new

of

Deposits

Service

women.

exchange

sold

was

18,170,849

*

$

first office to sell Foreign Ex¬
department, 47 mately one year's salary, the new
years.
Miss Josephine A. Dunbar plan provides for a reduction of change. In 1925, as Head Bookof the
Italian
proposes, if the increase is voted of the Retirement System, in her about 14% in the cost of a like keeper
Savings
and approved, to increase the sur¬
41st year in the bank, has the amount of contributory insurance.
he started the original work
plus from $156,000,000 to $170,000,for the accrual system on mort¬
"
1
A
A
000, raising the combined capital longest service record among the Upon retirement or after 40 years *
General

*

Sept. 30, '52 June 30, '52

represents almost

service

507,267,963

18,725,970

company

grandfather,
Michael
J.
Adrian, founded the German Ex¬

20% of value of their own contributions tirement
of
Ernest
Calcaterra,
the bank's staff, 1,708 are in New
Chief Accountant. Mr. Calcaterra,
plus a portion of the bank's con¬
York
and
95
are
in
overseas
a
native of Sicily, had organized
tributions. In addition to continu¬
branches.
Among them are 288
the Department of Foreign Ex¬
women.
Oldest employees in point ing the free life insurance which
of

538,322,566

s

time

Kleeck, Vice-President, 49 years,

320,634,116

discts.

profits

corn

211

were

438,747,509

317,895,900

se¬

v

limited period of years after join- undivided profits—
5,088,502
4,759,540
employees who reach
ing
the
plan,
provision
will
be
their
25th
anniversary
of
servicei
EastRiver
dividend, in the ratio of one
Savings
Bank- of
share for each 24 presently out¬ in
1952.
Of the total of 1,803, made for them to receive the full New York has announced the re¬

shares to be distributed as a stock

363,925,128

&

Loans

early age.

an

1,341,227,802

holdgs.

Oct. 12. Born in New

on

1,291,078,289

banks

curity

75

$

due

Govt,

S.

$

1,175,167,954 1,225,720,756

and

from

U.

brief

a

been

resources.

Deposits

Com¬

i

;

June 30, '52

Sept. 30, '52

ities in addition to those available

of wish

dinner in their

a

total par value tertainment. Attending this

and

have

would

contributions for
nual meeting Jan. 13, the share¬ Astoria.
Winthrop W. Aldrich, their benefit. The bank's objective Total resources
holders vote an increase in the Chairman, and Percy J. Ebbott, will be to make distributions from Deposits
capital stock of the bank from President of the bank, were hosts the fund to employees after re- Cash and du» fr<>m
7,200,000 shares with a total par and speakers at the dinner, which tirement, death or termination of n s"govt"Yecurity
value
of $144,000,000
'holdings".
to 7,500,- was followed by a program of en¬ employment. In the case of memshareholders

the

Trust

company,

york

new

Director of

a

Sept. 30, after

on

Mr.

York,

115,492,791

*

manhattan

*

Midland

He

old

total of their bank

sum

these funds in

security

the old plans

to

three

willi have

£

of New York and Chairman

years

116,034,179
*

the

67,414,226

67,896,355

of the Board of its Yorktown Of¬

illness.

609,239,294

*

of

2,200,120,840 2,196,947,098

Marine

fice, died

535,387,985

610,089,463

undiv.

&

bank

498,005,973

506,554,794

bills

1,232,757,394

bills

profits..

pany

458,622,812
se¬

holdgs.

profits

George M. Adrian,

have

accorded those who

Surpl.

1,343,682,826 1,477,139,774

*

The

$

due

and

Loans

se¬

discounted
Undiv.

and

Govt,

S.

June 30, '52

1,732,401,629

1,506,239,909 1,559,262,326

curity

5,236,752,682

1,119,655,727

new york

$

discounted

holdgs.

and

bank,

1,674,178,154

from banks

U.

$

Inc., candy manufacturer; Presi¬
dent and Director of George M.
withdraw Adrian & Co., a real estate and
*
*
the lump sum in cash. The new insurance
firm, and Director of
Upwards of 1,475 of the 1,803 thrift-incentive plan is a coopera¬ the Michael J. Adrian Corpora¬
tive
men and women of the staff of the
undertaking in which the tion, a real estate company.

Loans

Oct. 7 to recommend to

on

82,679,670

...

Undivided

Bank of New York

National City

154,249,793

177,625,750
142,114,593

holdings

#

sj:

of Directors

$

due Irorn

U. S. Govt,

of Governors.

Board

and

banks

spe¬

pre-membership examination
of the Trust Company and
had
recommended
approval
of
its
membership
application
to the

The

52 June 30, '52

189,577,354

resources.—

Deposits

cial

Board

be

armed forces.

$

said the Re¬
a

york

new

Federal Reserve

Bank had completed

will

*

interrupted

cap¬

bank's cur¬
rent and
prospective operations.
William F. Treiber, First
Vice-

serve

if.

»

ital is adequate for a

President of 'the

69,429,912

71,303,300

profits..

dis¬

System some
determine whether

Govt,

S.

curity

..

Fed¬

Reserve

eral

Cash

June 30, '52

4,897,132,100

from banks

U.

__

Board

york

due

and

resources.

Deposits

5,375,666,120 5,697,633,277

resources.

Cash

plan, will
regulatory au¬

to

submitted

of

$

thrift-incentive

thorities

bank

new

of

hanover

Sept. 30, '52
Total

Sept. 30, '52
Total

the

paid

*

national

city

the

the

program,

new

features of which are a
liberal retirement plan and

new

a

The

*

chase

the

and approved

has been completed

CONSOLIDATIONS
NEW

*

program of the
Chase National Bank of New York

benefits

ployee

be

tributory insurance will
entirely by the bank,

study for the purpose of "lib-

A

eralizing and improving" the em-

Thursday, October 9, 1952

...

National

in

completing

15

Franklin

Manufacturers

June*
year^

Trusli

:

Volume 176

Number 5158

.

.

The Commercial and Financial Chronicle

.

Company of New York. President
Roth, also announced the election

J.

HENRY

NEW

BANKING

YORK

resources

investment of insurance

Cash

and due

Loans

&

bills

&

11,796,215

42,138,612

41,288,964

17,413,385

18,200,248

4,121,145

4,112,335

_

undivided

\ profits
*

SCHRODER

Total

*

and due

&

bills

&

10,332,160
24,593,322

9,940,148

8,372,903

charts

3,118,344

3,109,811

many years

in

common

attempting

to

pension funds

dis¬

❖

*

*

Total

resources

Deposits
Cash and

NEW

YORK

Sept. 30, '52 June 30, '52
$31,154,527 $30,489,532
28,771,191
23,126,241

due from

banks

7,877,512

8,056,208

U. S. Govt, security
Loans

&

discounts

Surpl.

&

undivided

12.047,303

11,566,661

8,663,459

8,325,614

profits

1,059,845
*

THE

*

1,031,799

*

PHILADELPHIA

•*

BANK,

PA.

'5^

270,197,565 261,579,026

holdings

210,770,457
discounts

Undivided

basic

enough

225,815,732

293,611,147 301,031,686
13,537,340
13,044,598

profits—
*

*

#

FIDELITY-PHILADELPHIA

CO.,

PA.

Sept. 30, *52 June 30, '52
$
resources

Cash

and

due

from

58,130,751

54,750,587

49,831,591

56,091,958

108,713,961

99,097,149

4,695,243

4,488,271

security

holdings
Loans

jc

Undivided

$

248,231,616 244,153,299
217,284,878 213,646,532

banks
U. S. Govt,

prolits__
*

SOCIETY FOR

*

*

SAVINGS IN THE CITY OF

CLEVELAND,

OHIO

•>"

•

resources

Deposits

Dec. 31, '51

Cash

and due

banks

$

253,928,831

248,291,164

from

17,036,466

____

&

discounts

the

C.

85,562,160
124,434,742

Wright,

Salle

La

Chicago,
that

75,543,272
127,036,513

^15,000,000 15,000,000

John

vision

President

National

announced

Keith

G.

dent, will

be traced to

can

in the finan¬

we

as

cial district knew it in the
a

past, to

market of individual securities,

with certain stock

ments

having

or

group move¬

relationship with
Even abso¬

no

reason

af¬

witnessing the beginning

of a new type market. A market
whose major
movement, or lack of
broad movement, is determined

by
relatively new and powerful
buyer of stocks, and by the very

the

yields,

be expected to
buying
of high

their

Life Insurance

stock holding figures
State, laws govern

but

more

a

evidenced by the 1951
New

a

York

State

passage

law

per¬

mitting Life Insurance Companies
to

purchase

very

in

stocks

common

limited amounts. Even

so,

the

national figure is not
small. The 1951 purchase of com¬
aggregate

individual

stocks

turbed

general high level of
used. With this, one

the

have

dis¬

not

can

note, that the

type of security

never

a three year
bull market. Some of the present

$800 million,
crease

will

total

about

or

million.

approximate
100% in¬

a

in four years. Savings banks

—

Benja¬

F. Sawin, President, Provi¬
dent Trust Company of Philadel¬

-

rently better, and the general
used

averages

level

than

at

a

the

at

much
two

higher

the

of

This points to the fact that the
internal technical structure of the

M

may

be much sounder at

burst

the

upon

of stocks

seems

holders

weak

to be conspicuous

by its absence. Thus

find

do

we

M it

Mr.

previous

chell,

market

com¬

pany.

peaks.

ly

1952

Pa.

min

cheaper shares sold two to three phia, has announced the appoint¬
ment of John
times higher in the bull swings
culminating in 1937 and 1946 even Kearsley Mitthough their financial status, earn¬ chell as a
ings, and dividends may be cur¬ Trust Officer

The 1949 figure was $411

The

PHILADELPHIA,

had the rise

normally expected in

this seemingly high level than at
lower previous bull market levels.
The speculative bubble that usual¬

by these companies totalled

Provident Trust Go.

speculative

more

$159 million, bringing total hold¬
ings of such shares to $690 million.

mons

J. K. Mitchell With

the averages

dent
a w

-

a

resi¬

of

Bryn

r,

was

graduated
from
in

Harvard

1934.

Until

he entered the

Navy
he

in

1941

was

en¬

in

sev¬

gaged

John

K.

Mitchell

manufac¬

eral

that in June 1951, when the mar¬
ket violated what looked like a

turing enterprises. As a Naval of¬
ficer he participated in 13 major
very important point at 244 Dow
lutely diverse movements have
engagements in the Atlantic, Med¬
legislative
action
permits these in¬ Jones, the piercing was actually iterranean and Pacific theatres.
been
witnessed
in
the
market
stitutions to purchase equities in the end of the liquidation. Again
He returned to inactive duty with
bearing no relation to the general
limited
amounts
under
certain in May 1952, the 256 level was the rank of commander in
market average whatsoever.
1946,
standards.
As far as can be as¬ broken, yet the market reversed
when he became a representative
The outstanding recent growth
certained,
these purchases ,have itself from there. The selling with of Smith, Barney &
Company.
of mutual and pension fund hold¬
been small, but it does represent increasing volume we might have Three
years later he became asso¬
ings of corporate securities of all
a
huge potential, which also will seen in the past, never material¬ ciated with Brown Brothers, Hartypes, plus the gradual but in¬
be limited to the very high grade ized. The speculation wasn't large, riman & Company. Mr. Mitchell's
creasing importance of Life Insur¬
hence the liquidation wasn't ex¬ responsibilities at Provident Trust
type of stock.
ance and Savings Bank participa¬
We thus can easily visualize a tended. True, only a small amount will be concerned with trust in¬
tion in common stock ownership
of stock in today's thin market is vestment administration.
have been, I believe, the impor¬ continued growing interest in the
* ; '
'
needed to cause a small move in I
tant
factor
in
this
evolution better grade equities, and a
either direction, yet the more spec¬
Joins H. L. Robbins
going on right under our very shrinking interest in the specula¬
'.r>
i;.
seasoned ulative equities as a group never
noses.
We in r the business may; tive marginal, or less
(Special to The Financial Chronicle)
*,/
or

groups.

too

reflect the

more

liberal "new

New

Recent

York

State

'

.

his

of

have been too close to the

Credit

Speculation and short-term in¬
terest in the market is down to a

in

addition

present

responsibilities

of

Salle's

minimum,

also

announced

Scott

will

be

that

Wright

William

placed

in

J.

charge

advertising and pub¬
and

program,

Dodge

Mr.

has

that

been

Harold

advanced

to

position of Loaning Officer in

the

Commercial

John

Varley

Dodge

as

Loan

will

Division.

succeed

Manager of

La

Mr.

Salle's

Commercial Credit Department.
*

*

*

The National Bank of Waterloo,

capital
000 to

as

of Sept. 18 from $500,-

$700,009.

The increase

brought about by

a

was

stock dividend

$100,000 and the sale of $100,-

000

of

new

stock.
*

*

discourage

side

elected

a

Welding
Director

and

has

charge

eign

The

of

been

appointed

Vice-President in
business

of for¬

Dominion

Bank, head office, Toronto, Can¬
ada.

Mr.

Wilding

was

formerly

Assistant to the President.
'H
IVit/i




short, speculative

find

we

the

vestment view in
Mutual

The

plished

'

seem

capable

enough

public

described types of holders, having

them

forward

purchased securities for the long

move.

And

of

engendering

interest
for

any

to

carry

real

bull

WORCESTER,

Mass.

growing phase.

Funds

have

H.

L.

Robbins

&

Co.,

conversely, not having Pearl Street.

former

accom¬

individual

pants in the
chases

the

3Vi% Serial

(Philadelphia Plan)

that

pur¬

into

seasoned investment calibre

To be guaranteed

Priced

Knowing the average per¬
son's history in the market, it was
wonder

that

mutuals

the

idea of

to

long

and

turn

capitalize

range

on

purchases

are

weighted

with

thus
the

their

view, plus

diversification.

*

a

funds

holders.
time

to

tion

of

and

are

holdings
as

Funds

they

are

to

maturity

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

HALSEY, STUART &. CO. INC.
L. F. ROTHSCHILD &, CO.

R. W. PRESSPRICH A CO.

FREEMAN

&.

COMPANY

GREGORY

similar

are

little

grow

even

BAXTER, WILLIAMS & CO.

a

&. SON

IRA

HAUPT &, CO.

INCORPORATED

HAYDEN, MILLER &. CO.
FIRST OF

THE ILLINOIS COMPANY

MICHIGAN

CORPORATION

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

&

CO.

so

their investments grow apace.

Pension

according

such

grade

They may switch from
time, but the major por¬

disturbed;

to 3.25%,

re¬

mutual fund stock is

their

yield 2.15%

heavily

higher

themselves

to

Their

type of security, and since the pur¬
chaser of

October 15, 1967, inclusive

Issuance and sale
The

able

to

unconditionally as to payment of par value and dividends by endorsement by
The Chesapeake and Ohio Railway Company

the

secu¬

rities.

small

$175,000 semi-annually April 15, 1953

mature

and

stocks,

money

To

partici¬

market, whose

speculative

Equipment Trust Certificates

billion

have been limited to

may

very

channel

Chesapeake and Ohio Railway
Fifth
Equipment Trust of 1952

public and have thus

more

exacting in the character of their

McMASTER
October 2, 1952

HUTCHINSON

L CO.

-

—

Nathan

Grove has become associated with

$5,250,000

big job in selling their

a

to the

from

in¬

long range
a

been able to take about $4

the

Thomas

a

of the market. On the opposite

long-term holder, it follows that

*

all

and high commis¬

sions, all contributing their share

were

at Waterloo, Iowa has increased its

correlate

to

shrinking further
high taxes,

and

high margins,

idea

of the bank's

licity

Consumer

Now

this into my conclusion. The above

under the influence of

to
as

securities.

the market itself.

29

Cone, Vice-Presi¬
general super¬

Department.

the brokerage fra¬

on

but rather to limit my
discussion solely to the effect on
ternity,

Sept.

Business Development

La

to

effects

the

use

head

picture

it sooner. I do not
discuss in this article

recognize

to

of

assume

over

•

Bank

on

activities of the bank

of

con¬

changing character of a pre¬

intend

holdings
Loans

22,715,400

security

^urplus

the

singular

..

$

232,252,143 227,730,525

,_i

U. S. Govt,

W.

may be

a

company, but such a
is very localized.
We

.

Total

to

decline, and with

impetus of

••

Sept. 30,'52
'

■-

the

question

for this

cause

the

bond

and

participation,

look."

TRUST

PHILADELPHIA,

Deposits

as

of

me

other stocks

Total

Moes

times

make

into

liberal attitude has been the trend
N.

Maurice

violated

been

to

their

con¬

have

stock market

due from

breaking of that point

low margin requirements it wasn't

may

available.

are

rities, which in turn, can account
for the complete change from a

'

the

on

to aggravate the

substantial dif¬

commons.

Companies'

$

873,903,094 890,053,331
795,279,477 811,972,923

banks

quality

ponderance of the buyers of secu¬

TJ. S. Govt, security
&

sell

being put

a

stocks

continue

a

con¬

June 30, '52

$
resources

Deposits

Loans

enough people would be there to

ference between rates of return on

tinuation, o r
end, certain

the

NATIONAL

Sept. 30,

Cash and

trend, it's

is

funds

ment climate of

as

for

tinued value of such aids. I believe

PHILADELPHIA,

Total

devices

cepts

holdings

Historically, as a market vio¬
an
important chart point,

lated

equities. Under the current invest¬

techni¬

such

recognize

CLINTON TRUST COMPANY,

trusteed

worked with

cal

profits

shaken

purchases. The estimated total of long before weakened margin ac¬ nature and aims of their holdings.
counts added fuel to the plunge. The rapid and wide
trusteed
pension plans, 'insured
gyrations of
we
in
the
"Street"
have
been pension plans, and state and local Nothing creates selling like sell-, the market as a whole may have
unconsciously witnessing a change plans is put at $22,000,000,000, ex¬ ing. I have noticed that many such been relegated to the past of low
in
the
basic
clusive of Federal plans.
It has seemingly important points have margins, low taxes and
larger
been estimated that of an annual been violated since 1949, but with public interest in speculation.
character
no important
general declines fol¬
addition
of
about
of
the
mar¬
$3,000,000,000
The sizable declines in
ket. Havingseeking investment, about 20% of lowing.

23,248,768

undivided

be

can

Since the current bull market's

38,680,831

counted

Surpl.

movement

speculator

inception in June 1949, I believe

10,737,761

security

holdings

fecting the

public
out.

a

38,927,420
from

banks

Loans

COMPANY, N. Y.

Sept. 30, '52 June 30, '52
$44,812,157 $44,456,351

Deposits

U. S. Govt,

*

TRUST

resources

Cash

companies and savings banks, along

public speculation, have led to

for the purchase are not
altered. The short term holder, or

reasons

dis¬

counted

Surpl.

10,556,821

security

holdings

Exchange;

basic change in
market patterns, Mr. Moes finds diverse movements of indi¬
vidual securities now have no relation to general market aver¬
age. Finds a growing interest in better grade securities.

from

banks
U. S. Govt,

with lack of

$95,931,224$100,018,512
66,731,581
67,690,817

Deposits

Co., Members, New York Stock

Pointing out that Pension Funds, Mutual Funds; expanded

CORP.,

Sept. 30, '52 June 30, '52

Total

•

By MAURICE N. MOES
Erdman &

*

SCHRODER

income, which may run had any sizable move, no large
into years, are not easily dislodged,
speculative interest is there to be
from a position because of reac¬
dislodged in a down move.
An
tions
in
the
isolated
market, small or
speculative
share
may
severe, as long as the fundamental have an extended move under the

New Securities Market

fice of Assistant Director of Pub¬
lic Relations in the bank.
*

13

term and

of Mrs. Irma S. Robins to
the of¬

*

(1325)

MULLANEY, WELLS &, COMPANY

Inc.,

40

14

had

has

country

Secretary of the Treasury

difficult problems in these

many

period

as

view the

we

whole,

a

however,

believe

share
of

I

that

all

can

we

sense

a

real

very

view

look?

There

ment.

dif¬

be

may

ferences of

opinion
tions

to

as

particular

ac¬

h i

w

c

taken

were

h

at

particular
But the

times.

fundamental
tasks
W.

Snyder

which

loomed

large
have

step-by-step

—

so

then,

been

—

complished with conspicuous

ac¬

sue-

huge government debt
successfully.
In June 1946, the
manage our

public debt amounted to $270 bil¬
lion.
It represented 60% of all
outstanding debt, public and pri¬
vate. There was no way of pre¬

Let

recall

us

for

moment

a,

the subject of genuine concern in
1946.

We

might single out three,
which were in the

particular,

There

were

most

serious, of
course, was the question of busi¬
ness readjustment.
War produc¬
tion

had

been

cutback

The

military budget

and

millions

the

in

of

Armed

severely.

was

citizens

Services

slashed,
recently

were

re¬

entering civilian life. Every other
large-scale war in our history had
been followed

employment
location.
avoid

by widespread/un¬
and

Would

economic
we

major

a

time? There

be

able

depression

were

dis¬
to

this

few, in' the

very

fall of 1946, who would have been

willing to give
answer

A

to

that

second

strongly positive

a

question.

matter

able

concerned you, as bankers. Would
the commercial banks of the coun¬
try be able to perform their

peacetime

sary

maintain
*

fore

An

the

American

78th

and

by Secretary Snyder be¬

.Annual

Bankers

am

Convention

of

the

need

I

the

as

not

the

one

of

area

following
the

past

however, I should

like

developments

single out
That

re¬

well in¬

present

readjustment

years,

is

one

that

been able to achieve
climate

of

in particular.

fact

the

favorable

an

not

we

have

economic

only

to

a

high level of current activity, but
also to a very large volume of

the

is

tered

we

—

industry and agricul¬

broadened and al¬
discovery, by develop¬

being

by

ment, and by the constant push

of

enterprise.

American

The Banking

System's

which have contributed to the re¬

American
period has
performance of your own

markable

of

upsurge

business in the postwar
been the

institutions of the banking system.
The

expanding
widening markets

services necessitated by
business

and

have been handled with the

high¬

degree of efficiency and skill.
The banks have done a commend¬
able
basis

job—and I say this on the
of personal knowledge—for

of your duties have involved
the tremendous volume of govern¬
many

which flows into
out of the banking system.

and
In

business

expanded

handling the

in

ment

that

relatively

brief

pe¬

/This

dynarpic expansion in¬
manufacturing capacity by

creased

50%, steel capacity by 20%, elec¬
tric

power

capacity by 50%, and

petroleum capacity by 63%,
Our

farms

are

increased

vol¬

ing

debt of the pres¬

off.

strated fact that

managed
Yet
another factor of basic
successfully.
Debt
management
strength in our dynamic economy
operations of vast proportions can is the sound financial position of
magnitude

ent

stepped-up

the

to $255

expenditures of our se¬
defense programs
changed the financing outlook.

their

defense

01

balanced.

provides strong support to a
level of current buying.

despite

occurred

This

expenditures fol¬

in

increase

the

lowing the Communist invasion of
Korea.
In
this six-year period,
there

was

by

program

our

fol¬

$5 billion during the six years

June

30.
over

This

During the present fiscal

less

is

a

As

ment

existing between the Treas¬

and I am
of ex¬
panded service and of greater ef¬
ficiency of operation is only in its
try during recent years,

period," the continued
management of the

the postwar

than

have had our ups
in the postwar period
we

downs

and

banking,

—business,

the

back

to

not

we

we

could have foretold in

is,

really concerned

maintain
is

Whether

future.
our

real

the

front us,

before

us

today. It is, without doubt, a dan¬

to attempt to
particularly in
imponderables

indulgence

gerous

foretell the future,
view

of

the

many

in the international situation. But
I do not think it is harmful to
a

look

the

at

factors

responsible for
prosperity.

Corporate & Municipal Issues

our

which

&

Co.

provide strong incentives for de¬

MEMBERS
SAN FRANCISCO STOCK EXCHANGE

leading Stock Exchanges

has
of




FRANCISCO-'<=■•

LOS

ANGELES

•

SEATTLE

•

PORTLAND

•

result is that mass
together with

increased

raised

our

productivity,

national

enough to main¬
healthy and growing econ¬

this period strong
tain

a

for

while producing the material
immediate defense needs;

our

establish¬

military

supporting

a

ment of 3¥2

million men; building

war

adequate

emergency,

for
if it

allshould

an

come;

and extending necessary aid

to

allies in

our

our

mutual struggle

against Communist aggression.
These

achievements

busi¬
rapidly
growing population. In a dynamic
economy characterized by efficient

Wires

use

prosperity

of

resources

impressive. If

are

;

most

we

continue to make

of the material resources,

full

use

the

freedom

and

the devotion

which

of

inventive
to high

is

our

and

minds,
purpose

characterized

have

country

in

the

past,

doubt of the outcome.

levels.

Another strong support for

Private

War II.

of World

close

overwhelming significance
that our nation has come out of
It is of

this

standard

HONOLULU

ness

Direct

our

pro¬

living substantially above pre¬

war

SAN

promotion

and

grams.
The
consumption,

greatly

a

14 WALL STREET, NEW YORK 5. N. Y.
•

and

of

record

—

velopment

BOSTON

the

since

out

business has
enjoyed profits — even after in¬
creased taxes
high enough to
buy;

to

the

from

production

Prosperity Factors

But at the

time, we can derive new res¬

olution

omy

are

present basic

both the domestic and on

accomplishments in the brief years

take

Outstanding is the broad distri¬
bution of income. People have the
money

is of the greatest

it

the international fronts.
same

high level economy
question

have

yet been eliminated.

can

we

to

today that all of us
make every effort to grapple with
the serious problems which con¬

always is what will happen

the

dangers and threats which

Certainly,

.

in

we

been our
we look

importance

1946.

reminiscing.

course,

When

the past, we are apt

over

we

of

today, rather

give first thought to goals which
were not completely realized, and

problems, the trials, the moments
must conclude that
have all fared far better than,

the strong fea¬

always

have

critics.

best

own

But

anxiety,

on

its problems, because

on

Americans

ing the past six years, with all the

with

Pacific Coast

have dwelt

I

tures of our economy

able.

Certainly

era

own

your

beginning stages

debt, though formidable, is attain¬

This

Securities

that

sure

Treasury has enjoyed throughout
successful

of

banking and business in this coun¬

the

cooperation

those

have been
developments in the
partnership
between

new

record

and
with
the
continued
support of the banking

tem,

an

arrives. There

many

and the Federal Reserve Sys¬

ury

play

will

you

when—as we all hope—it

economy

finally

But what we are

Municipal

bankers,

important part in our postdefense

domination.

world

this

which

opportunities

the

situation provides.

With the fine working arrange¬

of

and

other

there seems no doubt
long-term factors un¬

our
present prosperity
provided the basis for a
strong forward
movement when
defense production eases off.
The

of the Communists

program

for

$800 mil¬

Corporate

and

All in all,
but that the

could

$24 billion.

reduced by

been

system

profits, after taxes, of all in¬

UNDERWRITERS

NEW YORK STOCK EXCHANGE

security

of

sense

a

derlying

net budget surplus of

a

$3Vk billion; and the govern¬
ment
security
holdings
of the
commercial banking system had
over

when we look in
retrospect at our experience dur¬

Dean Witter

T^ese savings
which
high

give

Treasury.

& Hawaiian

end of the year.

*****

1952, in fact, the govern¬
ment's finances were better than

these

~

on

during 1951, reaching a total
approximately $210 billion at

lion

Un1

and

Inquiries invited

to

June 30,

staunch

yearly average of

DISTRIBUTORS

able

were

of

greatly

the Communist invasion
Korea, it is estimated that the

DEALERS

expand
liquid assets by about $6 bil¬

dividuals

the rising

In¬

earnings.

retained

the

from

before

the

in

ready proved that it is well aware

necessary

last

development
programs
of American business
during the past six years came

bringing it down from

debt,

$270 billion in June 1946,
billion in early 1950, just

capital

the

of

part

used

funds

total of

made in the wartime

were

individuals. A

and

business

both

significant

Substantial reductions

economy.

of

ending

without setting off
repercussions in the

conducted

lowing

which

be

can

penditures have necessarily in¬
creased; and we again face deficit
financing.
This course of action
was
forced upon us by the ruth¬

additional costs and the increased
made

is slackening

postwar period,

however, our national security ex¬

the

servicing

ter/ is that after absorbing
taxes

a

such
in

provided

has

which

strong stimulus to our economy

the

of the

care

to

ago.

ies,
the

that the flow
and discover¬

portfolio, and tak¬

to

producing food, sured commercial banks, amounted

a

concern

area

inventions

new

peacetime markets existing in this
country alone are almost limitless;
and
American
business has al¬

deposits,
loan

major

of

of

ago—the finances of the
government.
It is now a demon¬

income, taking care of the greatly
expanded

net

thought impossible

maining

I find no evidence

brief look at the re¬

a

six years

growth in national production and

fiber, and livestock in quantities
were

last six years.

Now for

mass

year,

incident

business

of

the

will have a

products which
appeal.

new

in

of 8.10%

average

financial curity and

increased

vastly

yearly

with

compared

as

highways, schools, muni¬
and consumer goods
of all kinds. It means a continual
search on the part of business for

centers,

cipal facilities,

accounts was

capital

1939

harmful

factors

important

the

Among

in

the

be

Contribution to Upsurge

total

on

5,98%

say,

of

to American

ture

day

every hour—
materials available

almost

stream

before

years

Every

II.

War

might

the

in

enlarged
long-term investment. It is ex¬ personal services to customers, the
banks have naturally experienced
tremely significant that private
a substantial increase in operating
industry has invested over $160
billion in new plant and equip¬ expenses. Yet the truth of the mat¬

few years

1952.

World

ume

Association,/ Atlantic

City, N. J., September 30,

resources—unknown or

of

undeveloped

Among the sigificant eco¬ ment

war.

nomic

to

that

up

est

experienced in the

business

six

areas.

audience

an
as

success

the

consider¬

that

is

has been achieved in

sure

to

opinion

majority

main

three

neces¬

functions,

profitable operations, in

address

I

the

success

those

riod.

particularly

circum¬

possibly

we

bankers

among

formed

and

could

believe

I

tion

first

could best be

these

Under

steer
clear of the obvious dangers?

count

The

problems

past to tell us how the

of many of our discus¬
sions at the time of your Associa¬
year.

began to take hold.
no
guides from the

of debt management

forefront

meeting in that

another way,

ment programs

of the problems which were

some

to

its

expressed
the rate of net prof¬

Artnerican

government security holdings
when private business and invest¬

stances,

The 1946 Problems

happen

would

what

dicting

handled.

00SS

en

Finally, there were many doubts
as to whether we would be able to

tremendous new store¬

with less than

compared

as

$400 million in 1939. Or

houses

clear.

from

far

were

lion

of the story. In

prospects opening

again, the

Here,

tell only a part
the past six years,
ingenuity has been

the figures

Yet

of

holdings

large

their

of

government securities and the un¬
certainties of
the business out¬

accomplish¬

John

continually enlarging market. It
means a continually increasing de¬
mand for new houses, shopping
a

-

past six years. When

population means

skills, a growing,

SNYDER*

By HON. JOHN W.

face

to

1952

Thursday, October-9,

.

.

.

Year Altead

Our Postwar Achievements and the
Our

Chronicle

The Commercial and Financial

(1326)

highly

de¬

veloped technical and managerial

will

be stopped.

freedom and

I

have

no

Aggression

The traditions of

justice which

are

the

legacy of Western civilization will
be

preserved

tions.

t

for

future

genera¬

Volume 176

Number 5158

.

.

.

The Commercial and Financial Chronicle

"NOW I CAN HEAR

just like the other kids!"

Thousands of youngsters and adults,

handicapped by deafness, find they

are

able to live happy normal lives... thanks
to

hearing aids like this. Here, the hear¬
case is of stainless steel..
chosen

ing aid
for

.

its

good looks, its rugged strength
and durability, its dent-resistance.
Only
steel

can

do

v

*■>

so

many

•

•••'

f.

jobs

so

well.

•/

:•

•

STEEL

AND

dom,

as

ELECTRICITY

work hand in hand to

suggested by this picture of

Golden Gate

area

near

San

Steel has spent more than

a

speed Production for Fref

steel transmission tower in tho

Francisco. Since the war, United States

billion dollars in expanding and improving
its steel-producing facilities, and is
currently engaged in a continuing

expansion

program

a

which will help to

assure

America

a

plentiful supply

of vital steel in the future.

IS!!! rl||: 'i
y

TURNPIKE

PROTECTION.

edging the road

That white guard rail you see

you drive across the Jersey
recently completed New Jersey
Turnpike is made of U'S'S Man-Ten High Strength

meadows

on

as

the

Steel. This guard rail is strong, sturdy, safe

designed to deflect the

cars

.

.

READY

TO

HAND.

FACTS YOU SHOULD KNOW

Listen tl

.

..

The Theatre Guild

ta

for

a

machine. (And the machine is usually made of steel

strength and good looks!)

ABOUT STEEL—The

present steel

industry expansion

program

will call for approxi¬

mately 200,000,000 refractory bricks to line the furnaces. That number of bricks would be enough to build

the Air, presented every

Sunday evening by United States Steel. National Broadcasting Company, coast-to-coast network. Consult

your newspaper

a

OIL

WELL

BRIDGE

...

AMERICAN STEEL & WIRE and CYCLONE FENCE

SUPPLY... TENNESSEE




COAL

GUNNISON HOMES,

&

IRON

INC.

•

...

UNITED

UNION

STATES

...

COLUMBIA-GENEVA STEEL

STEEL

SUPPLY COMPANY

PRODUCTS
•

...

rial

...

UNITED

small city.

for time and station.

UNITED STATES STEEL
AMERICAN

CONSOLIDATED WESTERN STEEI

STATES

STEEL

••

today is characteristic of our passion for convenience, timesaving and automatic cleanliness. Whether you want cigarettes, a steak
dinner, or merely a tissue to polish your eye-glasses, you can usually

chance of injury to car or occupants.

This trade-mark is your guide to quality steel

:

Americans

get it out of

.

that strike it, with less

'

The bewildering array of dispensing devices used by

SUPPLY,.. D/v/«/o«

UNITED STATES STLZL EXPORT COMPANY

•

GERRARD STEEL STRAPPING
of

UNITED

STATES

STEEL

UNIVERSAL ATLAS CEMENT COMPANY

/

...

NATIONAL TUBE

COMPANY,

PITTSBURGH

.

..

The Commercial
16

and Financial Chronicle

.

Thursday, October 9,

.

.

1952

(1328)

Beneficiary

Protecting the Trust
Chicago at the Mid-Continent
Trust Conference last November, I

Vice-President, Mercantile

the sad plight

President, Trust Division,

In

attention to

called

of

suffering

are

hardships

be¬

of

re¬

cause

strictive
vestment

full discretion in selecting invest¬
ments.
Warns of public's current excessive "souring on" bonds, and recom¬
mends that risk in these unsettled times be spread between equities and fixedincome securities, with a backlog of high-grade bonds forming sound founda-

in

wills and trust

agreements.
By this I mean

tion for trust accounts.

purchase
real

or

any

that

no

one

that

of

in-

served

intact

unfortunate

accounts;

these

example,

has

in

a

been

the trustee
government

urge 0ur

estate

mortgages,
should real-

tees

Let;

•

to their trus-

powers

and to give them

discretion-

to make principal encroachments in order to protect
ary powers

what inadvan-

time

beneficiaries

'
continue unceasingly to
customers to give broad

investment

forecast with

to

us

beneficiaries in emer-

preferred
gencies.

for

trusts, the trus- sion trusts—first, to insure as far
tee should invest more lightly in as is humanly possible that penequities, perhaps not more than sioners will receive without dim30% to 33%. In my opinion, a inution their full annuities, for
trustee can safely go that high in which they have labored for many
common stocks because, as you years. Secondly, trust institutions
know, disbursements from pension have built up an outstanding reptrusts can be rather accurately utation in the field of investments,
predicted. Accordingly, so long as which should not be jeopardized
there is not an undue commitment by going too far in equities, within common stocks, there is little out specific direction and full
likelihood that a trustee would knowledge on the part of the corhave to liquidate stocks during a poration and the beneficiaries of
depressed marke]t.
the risk involved. -

for followed. In these

accentuated during this

inflationary period.

that
only

can

remaindermen

principal is being preThe condition of

whom the

for

clause

the

jn

than

trust

time

are

to

could

one

steering
in

somewhat middle course
when we do not
tomorrow may bring

a

these

days

what

know

forth—let

Of

for

run

many

Therefore,
the
prudent
to follow is to give the

investment Problems-

all

the

consider

month

next

alone

year.

or

uniform
formulated to

course,

The

the se-

V
Now> let us see what investment
Pension Trust Investments
limitations are placed on other
policy
May j repeat the word 0f cau- companies whose " contracts also
trustee full discretion to select the
tion j gaye last February at the call
for the payment of fixed
investments that seem, most AC- ;viid-Winter meeting in New York amounts of dollars at maturity,
ceptable at the time the invest- Qn inve^tment of pension trust Well, most states limit life insurments are to be made.
funds. At that time, I urged a con- ance companies to investments in
If a testator or trustor does not servative investment policy in ad- bonds, notes secured by first morthave sufficient confidence in the ministration of these trusts, par- gages, debentures, real estate to
trustee he has selected to give him ticularly
where
the agreement a limited extent, and preferred
broad discretionary powers of inprovides that the employee on re- stocks. A very few states, notably
vestment to be able to cope with tirement is to receive a fixed num- New York, permit the investment
changing economic conditions, he ber 0f dollars per annum. In my in equities up to 5% of total asshould choose a trustee in whom judgment, the investment policy sets.
Likewise, banks that are
he does have confidence.
If it is in such a trust should be entirely members of the Federal Reserve
desired for some particular reason different from that followed in the System are prohibited from buyto
place
restrictive investment average trust where the trustee is ing stocks.
;
■
provisions in a will or trust, it given broad investment powers
The restrictions have been
would be wise to give the trustee
and full discretion in the manage- placed on life insurance companies
the power to use principal in case ment 0f the account and where and banks because experience has
the income is not
sufficient to the beneficiary understands that demonstrated that stocks are subcare properly for the beneficiary,
he is to receive only such income ject to wider fluctuation marketEvery trust, institution has nu-ivas the fund may earn.
wise and -are more ^speculative
merous accounts where because of
In the latter type of trust, a than high grade bonds and notes
limited investment powers an ad- trustee should strive to protect the secured by mortgages. When state
equate return cannot be secured beneficiary against the decrease and Federal authorities throw
today. There is no sadder task a in the purchasing power of the such safeguards around the holdtrust officer has to perform than dollar as well as to preserve the ers of insurance policies and deto
explain this situation to a principal.
Here, a trustee would positors in banks, should we not
•widow or other beneficiary, real- be investing prudently by placing be
exceedingly careful not to
izing at the same time that the a substantial portion in well se-'place> too large a percentage of
testator or trustor was far more
lected common stocks, as high as pension reserves in equities?
*
trusts

years.

to go higher

be

degree of certainty

from

in stocks
high. Surely no
criticize a trustee for

be inclined

and others not so

cannot

in

might

centages, and some trustees

trusts.

vestments would be most

tageous

preferred stocks.
However, there
is nothing sacred about these per¬

policy

Trustors and testators

ize

in

fit

a

providing

of

ance

next

trus¬

a

lection

may

roads

limit

vestments for

will

as a

sionsthat

tee

Joseph W. White

prudent policy is to give trustee

provi-

those

difficulties flowing from dollar depreciation,

official, citing Trustmen's

ABA

maintains

in¬
pro-

visions

bonds

panies,

Louis, Mo.
American Bankers Association
Trust Company, St.

beneficiaries who

trust

many

sound com¬
hedge against the in¬
inflation, with the bal¬
bonds,
mortgages, and

managed, financially

WHITE*

By JOSEPH W.

a

must

trustee

benefi¬

of the

needs

ciary, the terms of the instrument,
the
duration
of
the
trust, and
should then determine the ratio
between

as

that

and

bonds

stocks for

particular trust account.

N Y Inv. Assn.

Sponsors

New Fall Course
Final

for

plans

Fall

a

course

covering "The Economics of the
Security Industry" have just been

Investment Problems

announced

Harry

by

Jacobs,

A.

President of The Investment
In all my years of experience in Jr.,
Association of New York, and Dr.
the trust business, I have never C. Stewart
Sheppard, Administra¬
seen beneficiaries and co-trustees
tive Assistant, New York Univer¬
so opposed, so antagonistic to the
purchase of bonds for their trust sity Graduate School of Business
Administration.
accounts as they are at the presThe
organized to
ent time. This attitude does not
Association
members
and
stem alone from the small yield give
others
background in current
on bonds as compared to common
stocks, but also because they developments in the field of fi¬
Starting with a lecture on
know that in addition to the low the "Outlook for Interest Rates"
return, they suffer a further loss by Dr. Marcus Nadler on Oct. 15,
by reason of the reduced purchas- the
will
include
eight
ing power of the dollar. People •
weekly lectures. by a group of
have soured on bonds and do not prominent financial experts, con¬
want them in their accounts,
cluding with a panel discussion
Time after time, customers have directed
by Dr. Jules I. Bogen as
come to us complaining that all moderator. Other
speakers and
through World War II they bought subjects will be:
United States Government Series
Oct. 22—"The Outlook for the
E Bonds, often at great sacrifice; Domestic Economy," Dr. Jules
have held them for ten years, and
Backman,* Prof,
of
Economics.
now, as the bonds begin to mature, NYU.
they find the dollars received in
Oct. 29—"The Outlook for the
payment have only about half the Supply of Institutional Invest¬
purchasing power they had at the ments," Donald Woodward, Vicetime the bonds were bought. In Pres., Mutual Life Ins. Co.,:N. Y.
other words, their investment has
Nov. 5—"The Outlook for Taxdepreciated approximately 50% in Exempt Bonds," Harold C. Taylor,
purchasing power, while at the
Municipal Bond Dept., Chase Natl.
50% to 60% at this timeIf corporations wish to direct same time stocks appreciated tre- Bank.
In pension trusts, however, with their trustees to place substantial mendously, labor has received
Nov.
19
"Pension
Funds,"
obligation to pay each retiring portions of these reserves in com- staggering increases in pay, and
Roger
Murray,
Vice-President,
a fixed amount each mon stocks, which carry greater farmers have enjoyed numerous Bankers Trust Co.
month for life, a much more cau- capital risks than bonds and mort- benefits.
Nov. 26—"The Long Term Out¬
course

was

a

nance.

_

■

•

interested

in

the

life

beneficiary

course

•

—

♦From

an

Convention

address

by'Mr. White be-

an

of^the aAmericanth Bankers

Atlantic
September 29, 1952.

.Association,

City,

New

jersey,

tious

investment

plan

should

be

the directions should be set

gages,

in the agreements, so that there can never be
any criticism leveled at the corporate trustee.
specifically

forth

*

As

SfieetaUiU-Ut

further

a

would like to

each

set up

safeguard, where

stocks

common

see

I
sinking fund
bought,

are
a

out of the earn-

year

ings in excess of the interest re-

quirements on the reserves as
fixed by the agreement, as a buffer

depreciation

capital

against

fact, it would be
beneficial to allow all of the exmarketwise.

In

earnings resulting from stock
investments to remain in the sink-

cess

Corporations at this
the high income tax
rate, could well afford to permit

ing

fund.
time, with
and

this

at

the

time

same

con-

current yearly
costs.
Over the years, these excess
earnings would build up a
substantial backlog to offset possible future capital loss.
I realize that the present income
tinue

to

law

does not percorporations to deduct excess

tax
mit

reserves

48 Wall

&

Street, New York 5

CO.

that

Chicago

Cleveland




•

Philadelphia
Cincinnati

•

HAnover 2-2727
•

Washington

St. Louis

•

•

kind

of this

that

would

if

as

to

the

advantages

to

pensioners

accrue

Pittsburgh

San Francisco

Treasury,

expense,

the

under such a plan were
any

presented
necessary

fected.

law could be efPerhaps this might be a

project

for

change
Boston

probably

feel

I

but

C. J. DEVINE

the

pay

in the

the

Committee

on

Taxation next year.
I should like to see every

ble safeguard thrown

possi-

around pen-

This great army of individual

look for Equity Prices," Benjamin
belong to no
Graham, Pres., Graham-Newman
the other hand,
Corp. & Guest Professor, Colum¬
have been severely penalized for
bia University.
what they considered to be an ex-

bond

buyers

pressure

bloc,

who
on

Dec.

3—"The

Outlook

for Cor¬

pression of their patriotism; and porate Bond Financing," Arnold
they resent it deeply, as you all
LaForce, Vice-Pres., Metropolitan
know. All during the last war they Life Ins. Co.

importuned to buy government bonds, with the assurance
that they were the finest investment in the world. These good
citizens are pretty well disillusioned today.
Why our government officials are so complacent
in the face of this undercurrent of
dissatisfaction is hard to understand. Across the entire country,
trust officers are being urged to
sell government bonds out of trust
accounts and buy only stocks. This
condition is not sound. I do not believe we should go 100% in stocks,
although many of our customers
are putting pressure on us to do so.
In my judgment, it is more prudent for a trustee to spread the
risk between equities and fixed
income securities in these un¬
settled times. A backlog of high
grade bonds, due to their greater
stability, should form the foundation for trust accounts. They represent a debt of the corporation,
whereas stocks do not, and are less
subject to fluctuation. I have said
on many occasions that at the
present time it would be wise to
invest from 50% to 60% of an arcount in common stocks of well

were

Admission

the

to

limited

been

has

course

to

80, including 62
Association members, and others
chosen from among a large group
of

applicants.
The

New

Investment

Association

of

York, founded in 1947, has

membership of 275

younger

employed

one

by

over

a

men

hundred

Wall Street firms.

Chicago Analysts to
Hear at Luncheon
111.—A.

CHICAGO,

Vice-President
Zellerbach

of

Layton,
Crown

Corporation

dress the luncheon

Investment

B.

the

will

ad¬

meeting of the

Analysts

Society

of

Chicago to be held October 9th in
the

Georgian

Room

at

Carson

Pirie Scott & Co.

John M. Gilbert
John
ciated

Maynard
with

H.

P.

Gilbert,
Wood

asso¬

&

Co.,

Boston, passed away October 1st.

Volume 176

Number 5158

.

.

.

(1329)

The Commercial and Financial Chronicle
J

17

,

/Ob hf
Seven

great divisions welded into one
It takes

a

lot of

doing

to

make

a ton

requires
*n

And in

an

industry whose

nBk

National Steel

gmm
(IB§ 11

|JH\
r7Wll

open

1^\

J " ' vfl

continuous rolling mills.

\V

AT

j

INAllvJJNAL/

STEEL

owns

very essence

and operates vast

is bigness, National Steel is big!

mines and mills, the world's largest

hearth furnaces, a great fleet of lake ore boats and river barges, the
biggest and fastest electrolytic plating lines, one of the world's largest

/

ATTOMAT

of steel. Probably no other industry
variety and extent as those needed
operations.

resources so tremendous in
t^ie steel industry just to maintain

to meet t^ie growing needs of tomorrow, National Steel continues to
expand, with a capacity of 6,000,000 ingot tons annually set for 1953.

J

J

HANNA IRON

This, then, is National Steel... growing to serve the needs of all America
...

completely independent . . . completely integrated
leading steel producers.

...

one

of the

nation's

NATIONAL

MINES

CORPORATION—Coal

mines

and

properties in Pennsylvania, West Virginia and Kentucky,
supplying high grade metallurgical coal for National's
tremendous needs. Recently, coal resources were further

expanded by the acquisition of a substantial interest in
two
large mining operations in the Pittsburgh area.

GREAT

FURNACE CORPORATION-Blast furnace

THE HANNA

division of National Steel, in

furnaces augment

ORE COMPANY, Cleveland,

Ohio—Iron

properties and mines in Minnesota, Wisconsin and
Michigan. In addition, National Steel is participating in
the development of the important new field in LabradorQuebec, where great reserves will help to assure the future
supply of iron ore—the basic ingredient of steel.

ore

LAKES

STEEL

CORPORATION —Located

at

Buffalo, New York. Its four

Detroit, Michigan, this unit of National Steel is the lead¬

production of National's
Detroit and in Weirton,
is a leading producer of
for foundry use.

ing steel producer in that important industrial area. Its
complete steel-making facilities enable Great Lakes Steel
to furnish a wide range of industries with a large volume
and variety of standard and special steels, including
famous N-A-X High-Tensile steel.

the pig iron
eight other blast furnaces in
West Virginia. In addition, it
all grades of merchant pig iron

•

■'

WEIRTON

r-

STEEL COMPANY—The world's largest inde¬

pendent manufacturer of tin plate, with mills at Weirton,
West Virginia, and Steubenville, Ohio. A pioneer in
developing the electrolytic process for applying pro¬
tective coatings to steel, Weirton operates the world's
largest and fastest electrolytic plating lines. Products
include a wide diversity of other finished steels.




STRAN-STEEL

NATIONAL

Steel,

Quonset

buildings.

Other principal products include

nailable

framing for the building industry

Stran-Steel
and

Stran-Steel

flooring for trucks

AMERICA

BUILDING
BY

LmoW

and truck trailers.

SERVING

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PA.

AMERICAN

INDUSTRY

The Commercial
1.6

and Financial Chronicle

.

Thursday, October 9, 1952

.

.

(1330)

of Us

The Year Ahead
Each year as
and

the

goes,

businessman

average
sends his

American

The

reluctantly watches

back to school,

his

wife

up

the

Fall

larly in heavy goods lines,

schedl

social

retary

dates
appointand

mixed

turns

emotion

attention

s

prospects for
the remainder

Hoadley, Jr.

W. E.

c

(largely to see
enough

be

in

1

the

•Some

new

in

begins

year

That's where I come

N

J

It's

a

in.

miss their
pretty badly about coming
events
because
they have
lost
touch with the
basic trends of
business during the vacation haze
and
the
Summer
doldrums in
activities. This year any one
attempts a forecast in September not only has to shake off

many

Who

to

Annual

Annual

by
of

the

held

as

Convention

Hoadley

Mr

Meeting

Division

Association,

impon-

What will happen on

as:

address

♦An

of Summer, but

reckon with such

derables

Bank

'

ly

upon

banking or any other
—.

.

j

,

elicitwe've

assumption

some

-

for

unthinkable

*

'

stateoutset.
rny
conclusionsine
at tne

before

part of the 78th
of the ABA, Atlantic

City, n. j., Sept. 29, 1952.

w

*!£.

been
lem

principal tor virtually eve^ness^the
smashing period of
record

-

r5corclJs_~,_
produced a few

.

business

buying p™a

up

>e

d

{

severe
business

the

during

early

Jast ye;ai a ci
g
y
colianse has occuried-'and
§?"eral collapse^ has occurred^ a

in demand will begin

expect- to appear, particularly in the
events heavy goods lines, with depressing

new

kness

objective in

general

current business
whnrp

principal

the
-

.

j

...

situation—to es-

wp

stand'

now

121

>11

economic

forces

ahead

^?tJar
POStWar

part of the extended

as

w;ii

Hosp

j.i_

c

as

This, rolling

j

perity

to

•

Dealer

which they have

of the Korean War.

take

let's

moment, our country is
snapping back from the longest,
most
wasteful, and unnecessary
steel strike in history. The effect
of such

a strike, you are all quite
is to lower business activ¬
ity temporarily and then produce

aware,

a

which underlies them.

Government and its

—Where Are We Now?

Instrumentalities

I
wooded

One morning a few years ago,

along the
Michigan north of

walking

was

of

shore

State, Municipal and Revenue

Lake

Chicago when I came upon a fellow who pretty obviously hadn't

Securities

Industrial, Public Utility and

Railroad

Corporations

■mmm

g|

p Bank and Insurance Company Stocks
Bankers' Acceptances
'

i

•

Securities of the International Bank for

Reconstruction and

Development

Canadian Bonds

had

in

the midst of this strike-stimu¬

"missions"

nlooo omnno- in

we Can

all face the

JI

The remaining 35% of Ameri.'business has ridden the crest
of the postwar boom with negli-

park.
Despite the
widespread
expeetation
for several
years
that
a
sharp
fall
in general

gible interruptions, if any, in upward sales and trends, aside from

course

the

known

Pittsburgh

Chicago

on

The

the




Cleveland

San Francisco

as

of war

aftermath

inflationary
intended

prices.
can

strikes. Many of the nation's most
the basic
industries fall into this
and gfoup; iron and steel;, petroleum;

excesses, numerous

victim

industrial

chemicals;

is utilities;
heavy special-purpose
machinery
and
machine
tools
farm equipment; and military air-

his feet with only a few
on

the record.

1945-46 much heralded

re-

craft, vehicles, weapons, and am-

munition, including atomic mateinstead to be part of an unprece- rials
Although demand for some
dented period of high economic - of these products is less urgent
activity. The hesitation in busi- than a year or two ago, there is

conversion

Philadelphia

occur.

postwar
somehow
wobbles

Boston

.

inevitable

still

New York.

would

business

CORPORATION

of

the

leled

FIRST BOSTON

welcomes—im-

past decade has paralexperience of my unfriend in the lakefront

over

1"he

enough lie what it always

proved products at more attractive

get home.

the

collapse

turned out

early

in

terms

the

in

prevailing

War

When

made

physical
slightly

stand

level

Korean

1950,

and in
only

June,

now

the

above

started

the

when

in

mid-

allowance

some

is

overall

inventory
totals for the raw materials, goodin-process, and finished materials
destined for

military use, it seems
that civilian inven¬
now pretty well in line

likely

very

tories

are

with

current

and

sales

requirements

generally within manageable

limits.
often

Retail
low

are

inventories

unit

by most standards,

cipal remaining inventory adjust¬

In several respects,
general business

to

the

across

hard-goods industries, e. g., major household appliances, TV, and
furniture. For the most part these
j!nfs ?r,e now reporting a substantlal Plck.""P ln orders, output, and
saIes. wlth consequent improved
earnings prospects.

leaving produce their goods at lower costs
in the interest of offering the pub-

hit the dirt or sobered up

generally

moving down steadily

were

and the same can be said for many

he'd finally

to wonder whether

Inventories

carpets, shoes, and some chemicals
and foods—as well as several

or

sight,

from

disappeared
me

four

as

lated boomlet.

five worked down and managements
from tree to tree, he are making determined efforts to

completing

fully

Foreign Dollar Bonds

before.

few

a

use

for

rebuilding depleted
working inventories. We are now

He'd
(or perhaps a dozen)
"too many."
When I found him,
Another 25% of American busihe was hugging a tree for support, ness is now in the throes of adIn a moment, he released his hold justing to more "normal" selling
on the tree and started for another
conditions. In this group are some
tree about 25 feet away.
I was goods which were in tight supply
sure from
the way his legs wob- not long ago; e. g., general purpose
bled and the staggering course he machinery; pharmaceuticals, some
was
following that he'd fall on nonferrous metals, fats and oils,
his face before he reached his goal glass,
coal, lumber, and a few
—the next tree—but somehow he other building materials. Each one
made it.
Similarly he set out for of these industries poses special
another tree—and once again it problems so that it is difficult to
seemed as though he'd certainly generalize about recovery prosfall—but he didn't. After success- Pects.
But inventories are being

been home the night

Bonds, Preferred and Common Stocks
of

Situation

Business

Current

The

immediate

well

e.

Securities of the United States

both

for

as

J^e past 18 m°nths. In|?er«
™ny. °,f fhe s0"
called soft - goods industries
g., textiles, clothing, rugs and

my

a

strong resurgence in demand for

materials

conclusions. Now/durjnj*
look at the evidence cl"de,d

are

1

the

At

aiieaclIn the midst of a very high
overall level of business activity,
about 40% of American industry
has passed through a period of
moderate to quite-severe sales reduction and inventory liquidation

outbreak

the

to

concern

the nation's future economic

health.

,

already faced

since

readjustment
These

fob-on

>

ers' markets

individual lines of business
depending upon their relation to
the defense effort and the extent
to

for

^ .J
T
f place among lndividual lines from sellers to buy-

u

among

Distributor

continue

can

cause

well before the steel strike began

noticeably

vary

less

is

over

months, and be ers miarKei:s
we can a iace t
further ''rolling ad- .P
with more confidence than
Sales and earnings lf these adjustments still were

continue

will

fu¬

the

rolling rather than cumulative,

there

strength rather than
Following a postwar

for

Moreover, to the extent that
adjustments

our

be

well

bespeaks

ture.

nation

,

which will be operating over the ence
of the past 12
marked
by

beneath

adjustment

deal of piecemeal adjustment al-

thp pxneri-

to

1 o

*.

a

ana not as a
General business

DOOm

.lvprafjp

not

and

boom

"recession" year.

,

the

classifying

beginning to make
once
again.

strides

forward

the surface of broad national pros¬

in the somewhat mixed business
conditions which have prevailed
for some months- Because a good

busi-

of

volume
warrant

once

this group has now emerged from
the worst of its adjustments dif¬

effects upon many prices as well tradition; many forecasters have
(2) Political developments now r>ushed ahead the "inevitable
abroad as well as in this country
aDse» another year so 1953 is
will cause important changes in
anoi V
public attitudes toward some gov- currently Deng
a
but if we are completely realistic, ernment economic policies a n d
,
* +roubje starts That's
we will also prepare ourselves as very likely lead to redirection of
11eai trouD e s a s.
far as possible for what could the defense program.
T find cause for a good deal of
happen to upset our calculations.
( ) ^f^mbhie
Produce3a encouragement rather than alarm
this

customers

choosy and increasingly
conscious. Perhaps half of

are

price

rather than to provide a reason-

with

in postwar buyers'

where

markets

able course of action in view of
the uncertainties at hand. Naturally, all of us are anxious to
know exactly what will happen;

mind, I would like to direct our
attention to three topics: (1) the

industry already has
with the prob¬

confronted

ficulties and is

with a substantial sales increase

change.

roughly two-thirds

of selling

new

F

of

course1.,

this country.:

in

signal of

any

satisfied its accumulated wants
from the war period. When economic clouds began to gather

— — hnving

general

push

will

justments.

•

for

again

Expanding economic forces

(!)

arises because weaknesses

all too often forecasts are
ed
to pinpoint coming

of
the
National
American Bankers

Underwriter

ahead

because the public still hadn t

go

these

Consequently, they will bear con¬
stant watching over the months

01 suspense, ana aiso to give

opportunity to check your
thinking with mine as we

ahead.

in

future

business

cf American

any

business forecasting

matter of record that Sep-

after-effects

the

determine

general

ness in 1948-49, touched off by
new fears of depression, produced
some wobbles, but no real fall

well man- moderately during the c 1 o s l n g
aged organization.
Much of the months of 1952 and into the Spring
January, impatience and suspicion about of 1953, but thereafter some basic

mark

the

it, in

taxes).

tember forecasters often

also

simple —there is no escape

frorn
~

"foolhearty"—even begin to look
at what might lie ahead after the

the

very

made about what lies ahead. Not
of the most hearty—perhaps to forecast is not to plan—which is

including

full-scale drop.

,s

4-u^

whether^
till to

money

bills,

the

pay

will year ahead—to ferret out the unthe polls in No- derlying trends at work, and (3)
vember? I don't have to tell you some potential psychological and
that my work is really cut out for political developments—to try to
me
this afternoon in appraising determine to what extent they
"the year ahead."
may either offset or accentuate
r,,+
t Hnn't for i minute anolothe more strictly economic forces,
international front? What

the voters do at

business

to

activity

In summary,

with the

ments

h i

lines of business, rather than a

irregularity between different

meeting

with

with depressing effects on prices. Expects redirection
accompanied by "rolling adjustments" and great

cram

endaT
and

defense program,

of the

ule, unhappily
sees
his sec¬

of

course

prime-mover industries to a very
considerable degree, however, will

demand will fall off, particu¬

predicts after spring 1953

Industrial economist

fill

Winter

and

months

the

children

during

off in sales
immediately

falling

rupt

Economist, Armstrong Cork Company

ab¬

to anticipate any

little reason

HOADLEY, JR.*

By WALTER E.

Labor Day comes

wholesale

inventories.

lie

ments

in

the

Since

area.

downturns

prin¬

manufacturing
business

general

seldom,

are

associated

The

with

if

periods

ever,

of

low

working inventories, there is little
reason

this

on

business

to

score

horizon

the

view

with

apprehen¬
sion during the next few months.
In

brief, business

tion is

the

across

na¬

pretty definitely mov¬
ing upward again after a summer
period marked by the depressing
now

effects of the steel strike and the

spreading tendency for industrial
firms

shut

to

completely for
trade

operations
Retail

is

showing at least a good
seasonal pick-up. Most prices

Fall
are

down

vacations.

steady, and

few

a

tending

are

upward moderately. Production is
now
above the prestrike level of
last

spring

and

close

record

since

the

Korean

War.

Total

to

a

start

new

the

of

employment

stands very near the all-time high.
Consumer credit has reached new
record

heights, and business bor¬

rowing is showing strong seasonal

rising
are

tendencies.

Interest

rates

edging upward. Polls checking

the

pulse

faster

of

beat

short-run

business

and

a

indicate

good

optimism

deal

a

of

compared

with shades of deep gloom which

pervaded business sentiment early
this year.
business
of

All in all, the current

situation merits

"very good." But

goes

far

beyond

a

our

this, and

Continued

on

rating

interest
to

page

the

28

V

Volume 176

Number 5158

.

.

,

(1331)

The Commercial and Financial Chronicle

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I Philco celebrates 60 years of

built..

industrial progress

first HIGH

by bringing to the public television's
FIDELITY

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19

PICTURE REPRODUCTION, with

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This

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'

television receivers introduces
'

utterly

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sensitivity, freedom from noise

principles that raise significantly industry
-

for

reception-power,

and interference,
-

•

picture stability and contrast. So

advanced, it brings clear, steady and
vision to vast
In still other

new areas

enjoyable tele-

for the first time.

major contributions to the art

vision science,

Philco engineers have

first Directional and

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the

With quality its policy, and leadership a

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tradition, Philco continues to broaden the

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Television




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20

The Commercial and Financial Chronicle

(1332)

Let Us Extinguish the
between the
harmony that pervades that part
of the universe which lies beyond
the

in

contrast

control

the

and

men

r,r,

which

so

President

•'

'

-

Mr. Perry asserts
of

A X:MM,

jl

v|jgjj#
*wL

m

'jfSgL

'•«

jg| llpijj
Joseph

Earl

annual payments

only

war

Inflation
■

'

■

'•

'

•

Of

and one-third billion

seven

than

more

In

it par-

as

in

billion for

this discordant

transition

policies also increased 7%.
this amounted to $4.1

dollars

grand total of all savings
June 30, 1952, as represented

The

between

on

The

But first, the customary re¬

years.

of a century.
Already it has run
dollar increase in half a
century, and the problems
savings was in the mutual savings thus far encountered will take
banks and in the savings depart¬
many a
long decade for settle¬
ments of commercial banks, where
ment.
We are truly in transition
an increase of $3.8 billion for the
between two major epochs.
year ending June 30, 1952, brought
The point of a railroad switch
their combined total to

of

in

which

weakening

of
we

the

of

have

heretofore

unprecedented

physical

live

and

kept

is

race

fluid. Just

apart

men

becoming

level, and

as

in

The entire

water seeks

as

the

that

problems

relationships.

human

versal

the

barriers

pose

human

race

no

more

can

wave

prosperous,

the

cape

pull of

.

permanently

es¬

downward

our

own

self-defense,

ourselves

concern

we

with

the

broadening.

largest

$60.9 bil¬

lion.

As it happens,

increase

each showed

of

7%, the mutual
increasing by $1.5
billion to a total of $21.8 billion,
and the savings and thrift deposits
an

savings banks

in

that

12-month

same

was

tions,

virtually offset by redemp¬
so the net growth was less

than

1%, resulting in a June 30
total of $57.7 billion outstanding.
Postal savings fared even
worse,
with the decline of 7.2%
to a
June 30 total of $2.6 billion.

percentage of growth, the state
and federally chartered
building
loan

associations

once

that

the

destinies

tiny

inch

an

movement
of

the

or

so,

changes

passengers

So

in

time

of

crisis, each
inconceiv¬

little act may have an
able

potency,

reasons

i

There

believe

to

of

economic
thrift

take

sound

are

that

thrift

the

per¬

banking

may

deprivations

could

a

around

cure

or

which

ameliorate.

let the thrift banker

wider

view

of

the

world

him.

more

World Poverty

an 18%
growth,
amounting to about $2.7 billion for

June 30 total of $17.6 billion.

As the

thrift banker

be¬

yond the bounds of his community
and of his country, he is astounded
by the inconceivable poverty

the

which

engulfs

world.

Not

commercial

banks, the re¬
against individual life in-

♦Address

by

Mr.

before

Annual Convention of the
Bankers Association, Atlantic

the

American

but

economy.
It

economic

even

so-called

1952.

to

year

privilege

my

serve

State

our

on

a

this

onomically

some

less

to

fortunate

without

eco-

coun¬

own

institutions and meet their
needs

study

of the

tries could create their

nancial

past

committee for

Department

in which

ways

thrift
fi¬

own

donations

from this country. That study dis¬
closed ample assurance that those

very

some

much

of

the

by

our

standards;

by the standards of the
have-not

nations, there

erty and developing their

Public Utilities

world

poverty.

health

is

Equipment Trusts

Preferred Stocks

Bank

dark,

winter, bring
seasonal effects on

and

summer

been

effect

devoted

.

&

Members New York Stotk

ing from changes in the rest of the
radiation

solar

not

seen

con¬

or

clbVELAND




u

irti

to

can

be

and

at

pens

HARTFORD

CHICAGO
SAN

FRANCISCO

invaluable

the

the

to

time

same

world
be

can

self-preservation to

j

individual

hopeless;
thinking,

formual

can be devised to
restore
the value of the American
dollar;
nor

can

achieve

we

that

result

thrift

industry should enlist for
the duration in this battle for
the

us.

but

turbances resulting from sunspots

human

and

electricity

atmospheric

human health and
For

and

it

more

is

a

symbol of

rights and human integrity.

and
The

activity.

tracing of the
pattern of solar

instance,

even

Closely

a

National

allied

restore the

to

Debt
the

integrity of

battle

to

fiscal

our

European system must be the honorable re¬
by tirement of our national
debt.

wave

curve

There
main

to

appear

courses,

be

only

three

combinations of

or

courses, which
with respect to

be

may
our

pursued

national debt.

It

may be repudiated. It may be
retained permanently, wholly dis¬
regarding the principal and treat¬
ing the carrying charges as a per¬

trace

these

effects in the form of

a

patterns of weather. Indeed, cer¬

our

tain cycles or patterns of weather

conditions

are

found

to

recur

To
any
present-day group of
bankers, repudiation or perman¬
ent retention of the national
debt
will be unthinkable as
matters of

striking evidence of the im¬

century by century through all re¬

deliberate

pact of the impoverishment of the

corded history with striking simi¬

of

rest

larities in economic and other hu¬

upon

A

the

of

world

was

the

cata¬

strophic impetus which our great man activities. Even a superficial
depression of 1930's received from observation shows that many eco¬
the depression that engulfed all nomic relationships exist between
the

of

rest

humanity. There

are

weather

and

business

conditions.

them

fiscal

policy; but each

will

be plausibly urged
the general public with real
danger of gradual acceptance by
the public and perhaps even
by
some

later

ers.

Possibly

generations

the

of

bank¬

greatest

im¬

today Some of the collateral studies mediate contribution the banking
who scan the foreign horizon to border on the fantastic and are fraternity can make will be to de¬
discern the beginnings of any de¬ not yet to be taken too seriously, vise
procedures
by
which the
pression which could again help but the same might have been public debt can be paid off and
economic

statesmen

said

drag this country down.

Just
a

as

the

better

Cycles

of

the

early

thrift

view

banker

of

yet evolve into
can

the funda¬

of

sequence

stages

These

all

of

tial

his immediate community, so can
also gain by taking a broader

couragement.
In

rhythms. If he thinks modern

failures

has

a

The

same

pleasant

awakening ahead.
spirit of research that is

400,000

distress
have
we

which

great

and
of

every

give his

great

businesses
A

of poten¬

en¬

of

the

depression,

went

part

the

those

widespread

depression

been lessened

of

out

of

or

could

avoided

if

coiY n'voided excessive optim¬
the peak of the boom and

ism at

and measure, and predict the eco¬

nomic forces that

cause

the great

knowledge of the science of cycles

Great

as

could

have

done

much

to

avert

rhythms in business. that excessive1 optimism and ex¬
has been the progress in cessive
pessmn;* i
by reminding

the science of cycles, or rhythms,
it is admittedly in its infancy. The

Materials

exact

re

ords

of

such

over

study

are

long periods of

time. "With every passing year, the

of facts

ing. With every

are

lengthen¬

forward step

us

that the pendulum does not

main always at

the top

or

re¬

always

at the bottom and that there is an

equili'v hjr.i
well

as

i

t

in human
the

forces

affairs
of

as

nature.

Thrift bankers in sheer self-pres¬

in ervation should learn and teach all

secure

the

In

execution

of

those

approaching the problem of

the

national

that

the first

debt, it is obvious
step will be to stop-

increasing the debt.
It is only
sligthly1 less obvious that the debt
is

ilast

the

business.

re¬

to

banker should

of the sweep and interplay
of forces that cause our economic

search has not progressed beyond
the old boom-and-bust theories, he

science

new

to

procedures.

recognizable

and effect.

but glimpses

are

thrift

some

cause

mentals of his own business by
looking beyond the boundaries of

sequences
_

unavoidable

but it will call for clear

been traced between the solar dis¬

wave

nation.

own

raw

PHILADELPHIA

the

Thus it hap¬ integrity of our economic system.
that striking parallels have The dollar is a symbol of property,

sciously felt by

and the small

Street, New York 5, N. Y.
Private

BOSTON

Hutzler
Exchange

been

possible ditions. The basic cure, however,
must spring from thrift. The
entire

the

to

transforming the entire scientific unwarranted pessimism at the
world is at work trying to trace,
depth of the depression. A wider

Salomon Bros.
Sixty Wall

**

has

consequence of war, no

behavior result¬

human

on

own re¬

view

Acceptances

pen¬

So fa*

debasing of the American

new, even

their daily and

he

Canadians

life in¬

Our
economib a parallel between sunspots and
ultimately linked with business optimism or pessimism, petually recurring addition to our
that of all the other nations. The
aggressiveness
or
sluggishness, governmental expenses. It may be
world leadership of thrift bankers boom or bust. Still others seek to paid off.

get

Railroads

all

incomes, all

investments!

studies are courageous action, stern self-de¬
if not yet too nial long sustained. The reversal
convincing, light on old problems. of past trends must not be too
Every one knows the effect of the abrupt or too arbitrary. No single
throwing

and

sources

Economic

Municipals

savings,

all

debase "the

.

collateral

fascinating

scientific research. Similitude may

Industrials

the

to

value of the dollar is not

connection,

countries, with only a little pre¬
very
irregular
liminary guidance, cduld go far
radiation
in
several
toward relieving their own prop¬
cities
was
paralleled

to

U. S. Governments

and

or

How much

curency.
wrong

all

of

sions

events.

this

In

has

was

wise

City, N. J.,

September 29,

measured

as

Perry

78th

so

only is there poverty

the

merely by reversing all the wrong
economic plight of the rest of the
business. But the heat and light steps that have brought us to our
world. That concern need not take
present
rays are but a tiny fraction of the
pass, for we must set out
the form of gifts or subsidies nor
entire spectrum of solar radiation, from a different starting point and
be too great a burden on our own
so a vast amount of serious study
adapt our policies to present con¬

matter of

looks

Like the mutual savings banks
and the savings departments of
serves

value

by curve by the
self-respecting au¬
pattern of the varying number of
tonomy without external financial
hold such a potency in this most
suicides in the same cities over
help.
the same periods. Similar paral¬
extraordinary of all historic crises,
The economic health of the en¬ lels have been traced in the
for so many of the issues of thip
prev¬
tire world is vital to us. There alence
era are grounded in economic con¬
of
various
specific dis¬
sure
prophylactic against eases. Others have sought to find
ditions and especially in those is no
formance

led all others with

a

only

move

First, then,

In

and

but

rails.

commercial banks by $2.4 bil¬
a total of $39.1 billion.

During

to

who, all oblivious, speed along the

lion to

period, the purchase of $3.9 billion
of U. S. Treasury Savings Bonds

has

dollar.

Now,

'

The

thrift

the

surance, all fixed

records, the bases

of

is the

statutory crime to debase

a

mutilate

gravitational sun's
light and heat rays on our
surrounding sea of prov- business affairs.
Daylight and

a

erty. In
must

can

so

however

country,

or

science

of

ur¬

banker

with the culpability can be
ascribed; but so
newly developed electronic com¬ far as it has been the result of im¬
puting devices, we should be on moral seeking for votes or of loose
the threshold of a great forward economic
thinking or of callous
burst of speed in assembling and
disregard of duty, it may yet rank
analyzing economic data, and per¬ as the greatest crime in American
haps
eventually
in
forecasting history. The fight to restore the

its uni¬

long remain above that level,
no

the
are

shrinking

world

$59.5 billion.

pe¬

in the last degree

destitution.

utter

June 30 total of about

a

millions

are

to the thrift

greater the

or

immediate

more

restoration

It is

paying in debt service.

we are now

even

gency

25-year

over

required at between twelve and thirteen billion dollars,

epochs in human

major

'

Offers plan for its complete liquidation

af¬ by these primary sources, amount¬
ed to $198.3 billion.
On an esti¬
port of the activities of this Divi¬ mated
population of 156,800,000
sion as based on the data supplied
people, and on the census basis of
by our secretariat.
3.4
people per family, the per
The past year has shown an ex¬
capita share of these liquid sav¬
traordinary growth in savings in
ings was $1,265; and the average
this country.
During the war
family share was $4,300.
years, the combination of full em¬
The Great Transition
ployment, high wages, and scarci¬
ty of things to buy resulted in¬
In the long perspectives of his¬
evitably in exceptionally large tory, our civilization has come to
savings; but in this past year, even one of its great turning points. We
in spite of an abundance of things
are
passing through what may
to buy and high costs for the ne¬
prove to be the greatest crisis of
cessities of life, the rate of savings
all time.
It is not a crisis of a
was
about on a parity with the
year, or a decade, or perhaps even
two

fairs.

•

dollar
surance

ing

riod

'.

.

as

of thrift bank-

Perry

V'

■

•-

our

Your

ticipates

SB

*

!>.•••

aspects

some

Ifcfr

n

Savings and Mortgage Division of the

period through amortization following mortgage-reduction principle. Estimates

lies

attention will
be invited to

-W

•

the

that inextricably bound-up with dollar integrity is retirement

national debt.

our

vades the part

control.

.'-.v.--•

•

the

gen¬

within

of

be known about business

can

research in the field.

American Bankers Association

of

per¬

which

that

cycles and should promote further

President, Newton Savings Bank, Newton, Mass.

disharmony

erally

National Debt

By JOSEPH EARL PERRY*

There is something very sober¬

ing

Thursday, October 9, 1952

...

embedded in every phase of
that its repayment
must be gradual. Even if it were
possible to repay the entire debt
so

our

in

economy

single

a

locate
the
Both
our

to

the

nation

from

year,

it would

financial
as

to

so

dis¬

structure

be

of

disastrous.

the

point of view of
ability to pay and our ability
payments, it will be

absorb

necessary to move rather slowly.
The determination of the
wisest
rate of amortization will
be one
of the
really important decisions
to be
made; but it will
be

probably
found that the rate of potential

payment and of potential
absorp¬
tion of payment will be
roughly

identical, and very likely in the
vicinity of about 4% a year and
not

far from

the

increase

Continued

on

in the

page

4Z

'

i

Volume 176

Number 5158




.

.

.

The Commercial and Financial Chronicle

(1333)

"Not houses

finely roofed

the stones of walls

or

well-builded,

canals and dockyards

nay nor

4-

make the
but

city,

able to

men

use

their opportunity.
■Alcaeus, 611-580 B. C,

That is what makes

like

one

We
•.

are

.of

a

company, too

—particularly

ours.

proud, of

our

of

course,

growing crude

our

expanding? refining facilities

reserves...

tankers, trucks and all Hie

of

our

pipelines, terminals,

service stations and other

tangible

evidence that The Pure Oil
Company is serving America well.
But

we

are

proudest of

our

people.

Wherever they work —whatever
they do —in all the different

jobs
are

our

able

company
to

use

provides—they

America's need for petroleum

by

products, and America's

of meeting the need.

As

join in observing Oil'Progress Week, 1952, The Pure Oil
Company

we

loyal family of 10,800 employees and 15,000 associated dealers.

Without these

men

and women—without their able

the clock and round the
than

an

efforts, round

calendar—progress could be little

more

empty word.

THE

l

showing that they

way

salutes its

(

are

the great opportunity given them

PURE

OIL

COMPANY

99

21

Commercial and

The
22

Financial Chronicle

Thursday, October 9, 1952

.

.

Policy and Foreign Aid

Problems of Foreign
ip World War II and since
doms were

President of The Detroit

the At¬

Bank

to correct
internal weak¬
nesses.
Their failures have mag¬
nified the difficulties of their own
and
other
nations, and of the
their most obvious

proclaimed to the world
have

we

seen

activities abroad, in¬
cluding large-scale public foreign aid replacing private capital investment.
Warns of dangers of depleting our natural resources accompanied by infla¬
tionary export policies; of obstructing imports; of our beneficiaries' feet-drag¬
ging; and of our attempting aid beyond our means. Declares Cold War is
Mr.

12 nations and
o n

e-h

each

of

1 f

a

three

of

others

disap-

appear

behind

the

Cur¬

Iron

tain of Soviet-

controlled and
Com¬

directed

Dodge traces political circumstances

as

munism.

much

an

attack

our

on

causing

credit

as

our

The progress of an
coordinated mutual de¬
fense program in Europe has been
complicated and delayed by polit¬
ical conflicts, unsound fiscal poli¬
cies, mounting inflations, and bal¬
ance of payments difficulties.
In
too many cases both solvency and
defense have been sacrificed
to
the expediency of domestic poli¬
tics;
and
unpleasant
decisions,

United States.

adequate,

is military warfare.

One of these

The Fundamental Problem
The Soviets have acquired na¬
Austria, and Korea. There
The
fundamental
problem of either avoided or delayed, every¬
early Soviet threat to Iran. tions, manpower, and resources.
where
are
Whether subdued and absorbed or
pressing on govern¬
There was Communist-led guer¬
foreign policy becomes one of how
emerged.
all are being milked to counter this continuous world¬ ments.
rilla warfare in Greece, followed by controlled,
Whether this
Meanwhile our men, our weap¬
Communist-inspired labor troubles of their freedoms and their sub¬ wide threat and to avoid further
is real and
stance. Should additional areas of
in Italy and France. The Soviet
losses without provoking a general ons, and our wealth are committed
p e r manent,
to the defense and the economic
the world fall to Soviet domina¬
blockade of Berlin was met with
war.
To do it, we have been using

^nations

Yu¬

—

many,

goslavia — ap¬
pears to have

Joseph M. Dodge

was

an

only time will tell. In the mean¬
the air lift.
time it remains a Communist-led
dictatorship with at
pearance

fell

least

direct

little

of

ap¬

an

control

from Moscow.

Trouble

the

to

disaster have

run

Korea

Communists invaded South

Korea

with the later active mili¬

Soviet

-

tion,'

China and then Tibet
Communists. North

could

they

include

vital

our

supplied

of

raw

materials and pro¬

counter

has brought over ment.
The Soviets do not use Russians
people under Soviet
to fight their border wars. Russia
There are Communist-led insur¬
and Communist control, with many
remains safe behind its curtain of
rections in Burma, Indo - China,
millions more threatened with the
satellites and broadcasts peace as
Malaya, Indonesia, and the Philip¬
same fate.
Any summary of what
it increases its military strength
pines. There have been nationalist
lias happened, no matter how brief
uprisings
in
Iran,
Egypt,
and by denying many forms of free¬
or
superficial, presents a tragic North Africa.
dom and material progress to its
picture. But—it is one to remem¬
Some of these aggressions were peoples.
ber, as the record of the past casts
direct Soviet action.
Some
The pattern should be clear fo
its dark shadow over the present by
were
under the protective cover
and the future.
everyone.
The Soviets, operating
of Soviet satellite states.
Still
Latvia, Lithuania, Estonia, Po¬ others
from the center in a web of inter¬
appeared in the guise of
land, Czechoslovakia, Hungary, nationalist
uprisings in which So¬ national disturbance, use varying
Roumania, Bulgaria, and Albania viet Communist participation and
European and Asiatic Communist
have completely lost their inde¬
support were not so publicly evi¬
pressures to upset the peace of the
pendence, and so has half of Gerdent, but were rightfully suspect¬
ed.
And there were many lesser world and, in the process, to bleed
course

700

that

Dodge before
of
American
Bankers Association, Atlantic City, N. J.,
address

October

1,

by-

Mr.

incidents

Convention

Annual

from

arising

the

the

same

United

States

and

other

possibilities

The

East, and

.

change of fashion

.

.

.

change of mind

Europe are almost un¬

If

you

realistically

ap¬

Governments, unsupported by a
solid

rare

—

sometimes be, they do

may

Middle

majority of their people, and

governments of new states, lack¬

—

endearing though these femininities

East,

portions. We seem to be living in
atmosphere of impending crises.

And

.

continued

we

intended

to

for

ened

Take the evolution of

your

a

"gift"—its selection

possibility of its "exchange." You

...

its purchase

can spare

a

EMERAUDE
:

no

perfume to her heart

her, the world

never—not

and

The

the famous

one's

as

an

as

the "Jewel"

fragrance,




a

brilliant accent for

any season.

for

hopes

progress

the

peace

even

countless

women

have

tempted by that famous

privilege." For she will have found

one

"great" perfumes about which there can be

change of heart!

She'll

Compounded and Copyrighfed by Coty, Inc., In U. S. A.

and

of the world, widespread

over.

once—will she be

im¬

United

breaking out and disturbing every¬

won¬

perfume that inspired

of the

,

...

important color trend in this season's fashions. She'll know it

can

incendiary fires continually

.

EMERAUDE as

part

States.

■

She'll know

then

and

will be borne by the

gift that will be irresistibly flattering. In short, choose
de COTYl

weak¬
contest into

Russia

substantial

some

pact

■

t

the

internally

final

enlarged

its

derfully simple expedient:
Choose

be

Soviet

which
throw

yourself—(or

secretary!)-time, patience and shoe-leather with this

of

and other nations are

any

present certain purely practical problems.

and the

areas

many

in which

an

"woman's

.

for

others, and—in some instances—
these have reached ominous pro¬

done before

of heart

of

and support

unused
praise world conditions, you will military strength. And, until that
time comes, the Communists and
be impressed by the number and
the Soviets can continue their pro¬
scope of the political disturbances,
fiscal, trade, and economic prob¬ gram of fomenting trouble and
revolution in every area where
lems. While there has been prog¬
ress
in some
areas,
there have weakness is at all apparent. They
been
increasing difficulties in can do it with the certainty that
limited.

take this classic

Change

Far

the

in

trouble

na¬

tions.

sources.

1952.

to build props

forces

-

attack.

million

"An

78th

resources

world.
And the final extent of
within other na¬
duction
capacity which will be tions
these obligations is equally uncer¬
against internal or direct ag¬
added to Communist resources,
tain in both time and cost.
gression. When this did not deter
and, at the same time, denied to the attack on Korea, We reverted
Make no mistake about it.
The
the Western Powers.
to military resistance and counter¬ "Cold War" is a war of attrition
sources

the Chinese, using
military equip¬

tary support of

and

and

issues

domestic

Bankers Association

Past President of American

Free¬

lantic Charter and the Four

ing experience and stability, have
failed to solve their most pressing

By JOSEPH M. DODGE*

engaged

Since the United States

a

.

(1334)

:

of the truly

no

indecision

Volume 176

Number 5158

.

.

.

The Commercial and Financial
Chronicle

(1335)
international instability, and uni¬
versal

military unpreparedness
brought us an increasing

have

doubt of

our

Korea

security.

us awaken to the
in most critical interna¬

fact that
tional

own

helped

situations

diplomacy,

un¬

supported by military
strength and
determination, has little chance of
success.

tend
side

Inevitably other

to

align

and

power

nations

themselves

prefer

with

to .support

the

they believe has the strength
determination to win. Uncer¬

and

tainty encourages them

to want to

remain neutral.

This has been
flected in the effort to

re¬

develop an
adequate military defense in Eu¬
rope and elsewhere.
Because

diplomacy, unsupported

by military power, has not assured
either peace or
security, and be¬
the Korea War

cause

it,

we

helped

prove

are

recreating our military
strength—at inflation prices.
We
are
doing this on top of a govern¬
ment debt not much
reduced since
end of the
war; and for the

the

first time,
including the period of
world wars,

two

national,

and

local

governments

by

taxes
and
about one-third

are

state,

are

taking

disposing

of

our

of

total

na¬

of

the

tional income.

By

any

count,

problems

is

fighting
We

a

the

sum

staggering.

costly

We
in

war

are

Korea.

find

ourselves
attempting to
offset all the
possibilities of Soviet

Communist

aggression anywhere
perimeter of the areas

around the

which they control.
We
in the problems and

are

cos

deep

n*

s

re¬

building our military strength. We
are
assisting other nations to pro¬

vide

a

reasonable

military
selves

and

elements
We

for

supporting

of

to

of

them¬

them

with

our

military forces.
giving dollar aid

continue

abroad

minimum

self-defense

meet

and

financial

tain

or

unresolved

trade

problems, to main¬

improve standards of liv¬
ing, and to continue to
buy more

than

can

be

After the

looked

help.

to

As

people

paid for.
war

us

leadership

Government and

a

we

lems with

most of the world

for

approached
a

of

sense

its

and
as

a

prob¬

responsibil¬

ity, with high ideals, and

with

a

generosity unequaled in history.
We have
hoped that the United

Nations, various plans

of

|Jtt|

foreign

aid, and other cooperative inter¬
national projects
supported by the
United States would make
unnec¬
essary
of

the

more

practical

i1

aspects

maintaining a world peace and
defending ourselves. With our aid,
economic

would

and

soon

financial

be restored.

would

stability
Everyone

adopt and adhere to
principles of international
duct.
and

The

the

n>"h
con¬

objectives.

plans

were

laudable, but

what has followed this
conception
of a new world of
stability, peace,
and progress?

Nations

Act

in

as

Past

Nations and people have
contin¬
ued to act
very much as they have

throughout history. The inherent
complexities and conflicts of
long
standing national interests, the
unpredictable behavior of human¬

ity, the ingenuity of

governments

and peoples in

following.their
interests, unexpected events

the

own

like

War, and unforeseen
circumstances have combined to
frustrate our hopes and our
With only two
strong powers
maining after the last war,

re¬

we

quickly liquidated our
military
strength. What has happened since

has

caused

create

and

mutual

Europe

us

to

rearm,

support

a

new

defensive

and

in

the

and

alliances
East

Japan.
solve

have attempted to
help

programs of

foreign aid

loans and

1945,

of almost

kind.
our

9:15

are sent

a.m.

a.m.

by

offices and

groups.

foreign aid

1951,




Those

on

the Clearing House

messenger to

clearings. Checks received

are

Out-of-town items

express terminals to the Bank...

immediately into

included in the final

up to

clearings for the day

at 10 a.m.

get special treatment,

including microfilming for the protection of
Checks go

our correspondents
from Chase "the fastest way"—and that includes extensive

use

of air

transport wherever practical.

THE CHASE

NATIONAL

Actually

grants, from July 1,

through Dec. 31,

for the 2, 8 and 9

sorted

re¬

the world's economic
prob¬
lems by
sponsoring and financing

every conceivable
the gross total of

New York

are

in

which,

ing some part of the
military
strength of both
Germany and
We

Checks

to

system

strangely enough, includes restor¬

in

frequent intervals throughout the day and night Chase trucks

rush remittance letters from
post

expec¬

tations.

of

At

Korea

was

OF

THE

CITY

OF

NEW

Menrber Federal Deposit Insurance

YORK

Corporation

BANK

...

23

24

The Commercial and Financial Chronicle

(1336)

Thursday, Cki-Mt %

...

Banking Problems in Our Defense Economy
could

Volumes

written

be

By II. FREDERICK IIAGEMANN, JR.*

on

shall
highlight a few of the problems.
I proceed with this talk, fully cog¬
subject,

broad

this

President of the Rockland-Atlas

I

but

nizant that the

problems

and

solutions

are

different

for

(6)
and

Prominent New England banker asserts that in defense economy

ding

size,

bank

third team as well at on V * f.r*t

man¬

agement must perform four-fold job to meet its responsibilities to its custo¬

the stockholders.

on

Urges close scrutiny of loan portfolios, fostering healthy

and

industry in

many

new

geographical

accounts, re-examine

other factors.

areas,

increased

care

loans, and husband

in soliciting

reserve

new

of lending

t«»r.g fi¬

cwpar.ies

borrower *r.4

the

Both

have

Ir v**t

real interest in

a

That

g

enough «qmfy cai Ul in
the business, both b»r t.ow *m*i
for the foreseeable future. Today
is

there

new

area, cap¬

ita 1 structure,

the

of

nanced.

its officers and employees, its specific community and the nation, and

mers,

eftntt

Seeing that there it deptl*
ability on the #e **» i mn<i

team

each bank dep e n

competitive,

kept
tive.

National Bank, Boston, Mass.

borrowing

is

it

power.

popular to borrow and
Ibmrvrr, it

beneficial taxwi«e.

The term "de¬

often

ts

duty to put mi Um
of
and on inflating, we will eventu¬ and nation, it seems to me, de¬
Let's start right here by agree¬ advantages, in future
bad
times,
of
having L
ceM, ar.d
omy" as I shall ally hit the stage known to econ¬ pends upon our ability to cope ing that a loan to be good for the
be speaking of omists as the crack-up boom and with these conditions and still be bank should be good for the cus¬ to urge in good tunes th-.t fi: ant¬
it is the eco¬ bust.
be done with
rml of
It is basic that the bor¬ ing
Any policy aimed at riding responsive to the demands that tomer.
nomic and so¬ the razor edge between inflation our
stimulated
economy
places rower and the lender have inter¬ common stock.
cial climate in and deflation, in the light of his¬ on us.
ests in common. No business rela¬
Both
banker and custranter
fense

H. F.

which

Hagemann, Jr.

we

have

since

lived

tory,

be a
inflation.

will

toward

policy

leaning

Our Federal Reserve Board and
ago when we
preparation for World the Open Market Committee have
War
II.
The
period
has been shown real courage in the unpeg¬
characterized by substantial ex¬ ging of governments and in the
penditures for military purposes; guarded expansion of Federal Re¬
These steps
by periodic deficit financing; and serve Bank Credit.
by increasing prices generally; or, have been constructive; and al¬
to put it another way, by a de¬ though a freer market for gov¬
ernments requires more alertness
crease in the purchasing power of
on
our part,
the dollar by about 50%.
/
we should back the

twelve years

some

started

our

The
are

move

toward

free

markets

not

These demands have to be' met,
however, within the bounds of
sound banking principles. No bank
can
go overboard in any one di¬
rection for very long and survive.
Each bank has to do a fourfold job
and meet its responsibilities:
(1)
to its customers; (2) to its officers
and employees; (3) to its specific
community and the nation, and
(4) to its stockholders.
Regard¬
less of the sequence, these four re¬
sponsibilities, as you know, are all
important. Let us never lose sight

under which we
time sooner or only in government bonds but in
of the fact that in order to
major jolt, and all lines.
bankers must be prepared
Let's
not
as
bankers
take
a
this
fourfold
responsibility

economy

Jiving at

some

is lasting unless it is of should be aware tl the tfcarj!
Factors they are change that can come in the cur¬
rent financial position #4 a tym¬
both interested in are:

tionship

benefit.

mutual

(1)
reason

(2)

bounds

reasonable
the

within

limits

and

(3)

Keeping

business

the

of considered, but I

amount

undertaken in

line with

s

*An

Bank
of

address

Annual

the

Division

the

78th

American

City, N.

by Mr. Hagemann before

Meeting
of

the

Annual

Bankers

of
ABA

the

National

held

Convention

Association,

J., September 29,

1952.




as

of

part
the

Atlantic

It is in this economic and social

climate that
banks.

leaders

Our
in

we

must operate our

success as
our

bankers and

community,

state,

tomers'

various

banking

needs

sharply,

reason

Russia

or,

it

on

were

the

to be decided

we,

as

previously defined.

as

New Industrie*

In

addition

tial

defense

to

financing

products

emen-

of
filtering:
rw>

also face the t**>fc of

us

healthy new Industry to m.-w imgraphical areas, that mr tecLce*
may have sound economic diver¬
We

sification.

often givett t#

are

by government guar at ties lii thi*
field

that

longer threatened
bankers,
are
problems in security.
lending in this defense economy.
(5)
Seeing that products

generally,
faced

pha-

w

they are more than ever
important in a defence economy

other

no

want to

size that

working capital.

hand,
should receivables slow down
markedly and should sales slough
off.
It is a good idea to keep
thinking in
the
back of
your
mind where you and your bor¬
rowing . customers would be
if
suddenly peace was negotiated in
Korea, and if for some unknown

to take the

that all these ami
items are aIway*
fe#

many more

major jolts as well as shortsighted view on stopping in¬ cessfully, banks must be strong;
the temporary setbacks we have flation, but let's keep before us and in order to be strong, banks
been experiencing in recent years. the fact that it is absolutely essen¬ have
to
operate with adequate
The major jolt will come either tial that inflation be stopped and profits.
I ' •
when we take positive and unre¬ that the deflationary effects, while
1
lenting
steps
to
end
inflation, irritating, inconvenient, and pain¬
Problems of Serving Our
which means deflation; or if we ful, are worthwhile in the long
Customers in a Defense Economy
fail to take those steps and go on run. To go on inflating, as we
know, is to court complete disaster.
In addition to meeting our cus¬

as

meet

You might say

nancing.

suc¬

we

a

shrinkage.

fi¬

sound

of

a

company term loan t**wrurit op¬
erative due
to worktrg <*pn*l

plans

expansion

Keeping

within

in

clause

and in balance.

an »cet kraturn
bank
of
i?:*un*M»

through

pany

Keeping inventories within*

(4) Projecting working capital
requirements to see the results
should
the
price level increase

will have

later

our

econ¬

but

our

well

as

does

in

as

kind

that

fer.te

wo

of ftna

not

discharge our
ni¬
Our responsibility is it*
provide all the
hie cwcUit-

with very real

hility.

are

tM/tirww...
50

million

pairs of shoe*

a

States—for sale

lo

in the t <ut*dl

men,

people in 53

34,000

women,

and

II

shoe

branches, 8 tanneries * fatWr
mill,
for

and

|

Got, e«si*n»

than 23 other

more

needed

warehouse*

and

tlwna

%**f

10% of sill the shoe*

to

and

shoe manufacture

m

to

*f

the I

panyV world-wide dbtnhutiofs

wg.
million

200
to

in all

by

with
as

its

dividend

no

much

Company

for

12,000 Individ#*!*

than

more
—

j

t*. S. teitinnks #*mI Is*

countries.

holding
of

largo and

the 48 elates in

foreign

tions

worth of

dollar*

retailers

30,000

one

as

person

j

3% of the 1 I'V.'**! sfesfe*

stork

~

stockholder*
payments

at 4

#r

art

anhfoh**

for 33

record

of

J ear*.

vmm
i. EtrU, I

ST. LOUIS-Roln-ris

Friedman-Shelby, Continent.*! Ht
riant

Shoe Co„ Accent

Shoe t

-

\

1.

it

Co., Queen Duality Shoe < »»„ I*"**
Shoe
Co.,
Winlhrop Shoe t.--*m *

' t

„

V

■ n*

»'!.<?» Mi*#

Ik44

Footwear Co.

MANCHESTER,

N.

It-WM

Great Northern Shoe C<h

t.<

If nop- tnr# Shtte Cw,

The

24

Commercial and Financial

Chronicle

Thursday, October 9,

...

1952

(1336)
•

.

Problems in Our Defense Economy

Banking

By If. FREDERICK

broad

this

be written on
subject, but I shall

could

Volumes

highlight a few of the
I proceed with this talk,

President of the Rockland-Atlas

problems.
fully cog¬

nizant that

are

for
each bank de-

different

pending

on

size, area, cap¬
ital structure,
and

many

other factors.
The term

fense

:

omy"

jWnk

as

I shall

be speaking of

iHBfc

it

is

the eco-

.

cial climate
H. F. Hagemann,

Jr.

which we have

lived

and

on

eventu¬
known to econ¬

inflating, we will

ally hit the stage

crack-up boom and
Any policy aimed at riding

omists as the
bust.

razor edge between inflation
in and deflation, in the light of his¬

fln nomic and so¬

since

the

be a policy leaning
inflation.
Our Federal Reserve Board and

tory,

will

toward

when we
preparation for World the Open Market Committee have
War
II.
The period
has been shown real courage in the unpeg¬
characterized by substantial ex¬ ging of governments and in the
penditures for military purposes; guarded expansion of Federal Re¬
serve
Bank Credit.
These steps
by periodic deficit financing; and
have been constructive; and al¬
by increasing prices generally; or,
gov¬
to put it another way, by a de¬ though a freer market for
ernments requires more alertness
crease in the purchasing power of
on
our part, we should back the
the dollar by about 50%.
move
toward free markets
not
The economy under which we
only in government bonds but in
are Jiving at some time sooner or
all lines.
later will have a major jolt, and

some

twelve years ago

started our

Let's
not
as
bankers take a
be prepared
to take the major jolts as well as shortsighted view on stopping in¬
the temporary setbacks we have flation, but let's keep before us
the fact that it is absolutely essen¬
been experiencing in recent years.
tial that inflation be stopped and
The major jolt will come either
when we take positive and unre¬ that the deflationary effects, white
lenting
steps to end
inflation, irritating, inconvenient, and pain¬
we

as

bankers must

deflation; or if we
fail to take those steps and go on

which

means

Mr. Hagemann before
the
Annual
Meeting
of
the
National
Bank Division of the ABA held as part
of
the 78th
Annual Convention of the
*An

address

American

by

Bankers

City, N. J.,

Association,

September 29, 1952.




tive.

Seeing that there is depth
and
ability on the second and
third team as well as on the first
team of the companies being fi¬
(6)

England banker asserts that in defense economy

"de-

econ-

ful,

are

worthwhile in the long

inflating, as we
know, is to court complete disaster.

run.

To

go

nanced.

and lender
seeing that
is enough equity capital in
real interest in

a

there

both for now and
foreseeable future. Today

business,

the

for the

and also

popular to borrow

is

it

borrower

the

Both
have

However, it is
duty to point out the
advantages, in future periods of
Let's start right here by agree¬
and nation, it seems to me, de¬
bad times, of having less debt, and
ing that a loan to be good for the
pends upon our ability to cope
to urge in good times that financ¬
bank should be good for the cus¬
with these conditions and still be
ing be done with preferred or
tomer.
It is basic that the bor¬
responsive to the demands that
common stock.
rower and the lender have inter¬
our
stimulated
economy
places
Both .banker
and customer
ests in common. No business rela- y
on us.
should
be
aware
of the sharp
tionship is lasting unless it is of
These demands have to be met,
mutual benefit. Factors they are change that can come in the cur¬
however, within the bounds of
rent financial position of a com¬
both interested in are:
sound banking principles. No bank
pany through an acceleration
can
go overboard in any one di¬
(1) Keeping inventories within* clause in a bank or insurance
rection for very long and survive. reason and in balance.
company term loan becoming op¬
Each bank has to do a fourfold job
erative
due to working capital
beneficial taxwise.

often

(2)
Keeping expansion plans
responsibilities: (1) within reasonable bounds and
(2) to its officers within the limits of sound fi¬
and employees; (3) to its specific
nancing.
community and the nation, and
(3)
Keeping the amount of
(4) to its stockholders.
Regard¬ business undertaken in line with
less of the sequence, these four re¬
working capital.
sponsibilities, as you know, are all
(4) Projecting working capital
important. Let us never lose sight
to see the results
of the fact that in order to meet requirements
this
fourfold responsibility suc¬ should the price level increase
cessfully, banks must be strong; sharply, or, on the other hand,
and in order to be strong, banks should receivables slow down
have
to
operate with adequate markedly and should sales slough
off.
It is a good idea to keep
profits.
I
thinking
in
the back of your
mind where you and your bor¬

and

meet its

Problems of

Serving Our

Customers In a Defense

rowing

Economy

on

In addition to

tomers'

various
we,

meeting our cus¬

banking
as

needs

bankers,

are

problems in
banks. Our success as bankers and
Atlantic
leaders in our community, state, lending in this defense economy.
faced with very real

our

shrinkage.

to its customers;

economic and social
climate that we must operate our generally,
It is in this

costs competi¬

competitive,

kept

IIAGEMANN, JR.*
National Bank, Boston, Mass.

bank man¬
agement must perform four-fold job to meet its responsibilities to its custo¬
mers, its officers and employees, its specific community and the nation, and
the stockholders. Urges close scrutiny of loan portfolios, fostering healthy new
industry in new geographical areas, increased care in soliciting new borrowing
accounts, re-examine loans, and husband reserve of lending power.

Prominent New

the

problems and
solutions

'•

i

,

'

You

might

say

that all these and

items are always to be
considered, but I want to empha¬

many more

than ever

size that they are more

in a defense economy
previously defined.

important
as

New Industries

addition to

In

also

us

financing essen¬

production, many of
task of fostering

defense

tial

face the

healthy new industry in new geo¬

graphical areas, that our sections
may have sound economic diver¬
sification. We are often given help

customers would be if
negotiated in by government guaranties in this
and if for some unknown field as well as in defense work,
it were to be decided that but that kind of financing alone

suddenly peace was
Korea,
reason

Russia

no

longer threatened

(5)

Seeing

discharge

not

does

our

our

responsi¬

Our responsibility is to
are provide all the assistance consistbility.

security.

that

products

million

50

of shoes a year—more

pairs

than

produced in the United
men, women, and children.

10% of all the shoes
States—for sale to

people in 53 shoe factories, 14 sales
tanneries, a rubber plant, cotton

34,000

branches, 8

and

mill,
and

than 23 other supply

more

plants

provide materials
manufacture and to effect the Com¬
needed to

warehouses

for shoe

world-wide distribution.

pany's

m/h

my,

200
to

dollars

million

30,000

in all

of shoes annually

and small, located
in U. S. territories, and in

the 48 states,

foreign

worth

large

retailers,

countries.

(9tvnc{/...
by more than 12,000
— with
no
one

tions

individuals and institu¬
person

or

organization

3% of the 3,400,000 shares
of Company stock issued — and maintaining
for its stockholders an unbroken record of
dividend payments for 38 years.

holding

as

much

as

£$e//my
ST. LOUIS

—

..
Rand, Peters,
Shoemakers, Pen¬
Accent Shoe Co., Vitality Shoe

Roberts, Johnson &

Friedman-Shelby, Continental
nant

Shoe Co.,

Co, Queen
Shoe

Co,

Quality Shoe Co, Dorothy Dodd
Shoe Co., Conformal

Winthrop

Footwear Co.

MANCHESTER,
Great Northern

N.

H. —Sundial

Shoe Co,
Shoe Co.

Shoe Co, Hampshire

Number 5158

Volume 176

ent with the

How

tors.

to

up

.

.

The Commercial and Financial Chronicle

deposi¬

our

determine if

can we

living

are

rights of

.

we

responsibil¬

our

First, we can analyze/our
portfolios constructively. Sec¬

ity?
loan

ondly,

we

tions

to

analyze

can

isolate

rejec¬

our

unfounded

any

of

cause

is

there

for

now

later

bottom

that will not fit your portfolio may
well fit mine. If we are to foster
local

industry, we must repay the
the original application.
We must search every means of
working out the applicant's prob¬
honor of

lem in

our own banks; but if that
possible, we should assist in
locating another available source

avoid

may

bank

action

of

source

company

A loan

on,

funds.

for

losses

and

your

possibly

may

Action

of funds if such

is

source

that

one

be constructively helpful.
Loan Portfolio Analysis

drastic

into really getting at the

of

its

troubles

Reserve

Finally,
out that
serve
care

of

of

of Lending

I

we

before

It must appear self-evident that-

in order to meet
ties

nity,

well

poses

to

good

for

is

temptation to

a

loaned

rather

to

correspondent

excessive

a very

banks

in

amounts, it is certainly

have

earned

the

a

reserve

to

take

care

of lending power

also be helpful in

business
are

getting

when

new

your

loaned up.

One * of

earn¬

per¬

salarywise with
But

ple of
have

any

profession. So

more

appeal

hard

to

to

certain

few

isolate.

We

we

tutions

and

as

Our

dollars.

first

clearly

While

wages.

is

not

pete with defense

offer,

or

can

compete
tries

employment, job interest, comfort,

Bureau

with

by job
rule; and this

and

require

is

we

industry,

to

as

We

view,

job

our

their

on

of

figures

Labor

Continued,

on

commu-

is

own

maturities, total
collateral,
type of industry. It is a lot
balances,

bank liabilities, type of
and

of work for your staffs to prepare

this

information, and it is

top management to

up to
the infor¬

use

mation to advantage.-

•

-

In addition to all your

loan
if

precautions

you

and

ordinary

procedures,

already doing * it,

not

are

I suggest that at least semi¬

may

annually the loan officers of the
bank

together;

get

banking

hours,

aftei* regular

for

Supplying crecTit information—clear-

complete

a

loan review. Pull off the list and

classify those loans that
sider

require

call it in

a

until

time

provides to help its correspondents

they

longer

no

their

serve

re¬

We maintain

customers.

more'than 250,000

quire special attention. You know,
in

of the

List

care.

and review these loans from time
to

one

special book (we
our Red Book)

bank

our

reliable/tip^o-'date—is

con¬

you

major services which National City

special

these loans in

cut,

credit files in¬

bank properly serving a
community, there are bound to be

cluding copies of investigations made

occasional losses. We should real¬

hy

any

ize
and

this, take them in our stride,
learn something from each
Finally,

case.

while you are

view

of

I suggest that

may

in this detailed

your

loans,

a

re¬

overall loan policy in all its

your

you

have'

that

finished,

will find

you

overseas.

This wealth
to

us

handle

large voldme of phone and mail in¬

National.City,

phases. Tear.it all to pieces and
piece it together again. When

branches

quiries swiftly and efficiently. At

review

you

our

of information enables

problems

your

are

given personalized attention.

will decide to change a rate
here,' terminate an overrisky re¬

National

lationship there, and possibly
change the emphasis on your so¬

ing job. Our credit files—and all other

you

licitation
ahead.

sions
of

policy <for

These

have

period
discus¬

ideas,

utes

Head Office

failed, in my experi¬
to bring real concrete bene¬
May I suggest that you in¬
never

ence,

fits.
clude

loaning

younger

your

from you

National

can

assure

you

V.

Terminating Borrowing

say

a

borrowing ■ relationships.
First, let's" be careful in soliciting

borrowing

sure

we

are

accounts

geeting

in

City offers

to

branches

...

unexcelled

you

.

.

.

tiveness of your

word about term¬

inating
new

overseas

Why not enlarge the

Relationships

May I

wire. With

correspondent service.

it will be mutu¬

beneficial.

ally

or

55 Wall Street... with

at

67 local and 56

of¬

ficers in these after-hour reviews.
I

by phone

tried,

where

and

City simplifies your fact-find¬

correspondent services—are only min¬

bound to bring out a lot

are

good

the

after-hour

*

and effec¬

bank's service by

naming National City

correspondent?

be

scope

your

New York

.

new

our

accounts

character,
credit,
and
capacity; and, above all; the type

of

management

that

we

feel

we

work with through thick and
For let's not kid ourselves

can

thin.

about

jolt

the

comes,

notes

are

fact

that

many

when*

of

a

big

90-day

our

going to be renewed and

then

renewed again; and we are
going to be in business with some

of

our

to

be

borrowers. If so, we
sure

we

want

with
good and honest management.
Second, in reviewing our loans,
let's give attention to those ac¬
are

dealing

counts that in spite of good times
have shown no progress and are

just rocking along. Those are the
accounts that will give us trouble
when

the

going

after -repeated

gets

efforts

tough.
to

If,

THE

NATIONAL

CITY

BANK

NEW YORK

OF

Head Office: 55 Wall Street, New York 15
67 Branches in New York

Around-the-Clock Transit Service
Dealers in .State and

♦

Collections

Municipal Bonds

•

•

Credit Information
•

56 Branches Overseas

•

Bond Portfolio Analysis

Participation in Local Loans

Complete Foreign Facilities

•

•

Safekeeping

Personalized Service

Member Federal Deposit Insurance Corporation

get




the

of

Statistics.

their loans in various ways,
count

as

a

salaries in relation to the

classification

account, classify
break¬
ing their loans down by rates; ac¬

or

indus¬

classification,
we

our

what

know

com¬

we can.

nondefense

loan portfolios.

our

a

quite

can't

depositors,
going on
Practically
all bankers, either through their
supervisory agency examinations
in

as

must

we

of

insti¬

should try to do.
should from time to time re¬

it all

have

we

is,

service

problem

jobs

reasonable
wages;
steady
employment; collective benefits;
job
interest; job' comfort;
and
above all, the recognition"' of in¬
dividuality. On the basis of steady

individuality,

are

such

Wages

of

offer,

and

problems

that

that

kinds

extra

bank

advantage.

our

course,

high type of; personnel.
Furthermore, high turnover no¬
ticeably damages the efficiency
of our service, and is
costly.

must

we

something to offer

Frankly, I think

rather

have

we

personnel; and we have, in
opinion, the finest quality peo¬

a

is that

problems

good

of

competitors

able

mit us to compete

defense industries.*

The

can

the

ing capacities simply do not

people than

limit. Another thing to remember

of

25

must emphasize these features

to their full

know

means

long

of

re¬

all

industry.

over
we

Personnel'1

of

face with personnel. Our

apply to the logical and construc¬

my

pur¬

customers

a

We
we

my

in

essential

power

point

II*

Problems

opinion to depend
on such outlets as a
going day-to¬
day policy. This, of course/ does

unwise

tion.

be

new

limited way sometimes farmed out

desirable

to

.over-

lip

business, and banks have in

right to expect loan accommoda¬
Not

become

than' pass

take

to

'

the

to

to

like

standing, who, through their de¬
posit relationship and good finan¬
position,

harmful

be

tive practice
of country banks
working ' with" their city corre¬
spondents " in participating loans
over
the
country
bank's
legal

should

loans

will

long range objective of our re¬
spective institutions. While there

responsibili¬

our

stockholders

to

it

Power"

should husband

lending

of them

the •loans

is too late.

cial

-

your

shock

is not

can

cor¬

suggesting that they look for

another

ternative

of funds.

showing

poor

time like the present

no

prejudices and discover if we areturning our rejections over to al¬
sources

the

rected, management does nothing,

(1337)

page

the
All

35

The Commercial and Financial Chronicle
26

Thursday, October 9, 1952

...

(1338)

Dollar and Political
ever

come

to me was

in the fall of 1946 as successor

Carter Glass in

follow

to

I

to

hon esty is measured by integrity of govern¬
ment, and hence of citizens who elect it, Senator Robertson commends bank¬
ers for their public spiritedness, exemplified
by voluntary credit restriction

in

and

and
propria-

Currency
A p

Com¬

tions

Calls

program.

on

government to function as referee rather
over and squelcher of capitalism.

with the views on govern¬

ment

ment finance which had

after

hood

was

Carter

by

Warning

Glass

tended

the public schools headed

Some of you

call

the

report

The
departments,
by the Senator's brother, Edward
bureaus, and boards, all inspired
Glass. Later, at Richmond College,
by
a
laudable enthusiasm for
I came under the influence of a
their work, but some by a less
great history teacher who had laudable instinct to magnify its
studied

history

with

Woodrow

Wilson at Johns Hopkins and who

delighted in teaching his students
This
led me to successfully seek elec¬

Wilson's political philosophy.
tion

as

gate

a

Wilson

Woodrow

the

to

Virginia

vention of 1912; and

in

Con¬

that, in turn,

commenced for me an

ticipation

dele¬

State
active

par¬

practical

both

politics and the science of gov¬
ernment,
which has
been
the
dominating influence of my life.
first became

I

local

taxation

acquainted with
budgetmaking

and

problems as legal adviser to our
County Board of Supervisors. In
the

Virginia

State

served for six years

which

mittee

Senate,
I
on the com¬
taxes

handles

Means

handles taxes and tariff
and

when

shortly
War

I

after

which

Committee,

entered

the

problems;

the

end

Senate,

of

World

II, I was in emphatic agree-

♦.Address by Senator Robertson before
First
General Session of the
78th

the

Convention

Annual
Bankers

30,

of

the

us.

importance, bombard the commit¬
tees
of Congress with projects,
some
more
or
less meritorious,

merit whatever, but
all conceived in sublime indiffer¬
ence
to the facts that the great
of

some

at

American

Association, Atlantic City, Sept.

1952.

government is being
of

of

business
run

loss and that each one

a

projects increases the defi¬
the government and con-sequently
the
burden
thrown
upon the great body of the people,
whether the deficit be met by in¬
creasing taxes or by floating ad¬
these
cit

of

ditional

loans.

"For

fallacy

no

waste

or

in the

The

must

of course, merely an
elaboration of the plank which
Glass
wrote
for
the
National
This

was,

is

more

of

our

burden

own

extravagance.

these

of

interest

and

issues will

not only in
sinking fund

heavy
expansion of

charges added to an already

in

but

credit

which

the
is

inevitable

result of the issue of such

central

which stated:

"The

.

.

.

recognized
set
up the Federal Reserve System.
But, as Woodrow Wilson pointed

than dominator

in

out

his

and of individual initiative.

urgently need today the
kind of integrity illustrated
by
Carter
Glass
when, five years
he

had

made

of

one

Government

tween

is

difference

in

preserving the bal¬

of power among

ance

be¬

government which serves

a

referee

as

.

Role

vast

a

.

Exercise

Should

Referee

There

the

greatest speeches of his career
advocating the election of Frank¬
lin D. Roosevelt, he spoke out with

men

banking and currency system
by means of which they can make
use
of the freedom of enterprise

We

after

business

"a

elements of

the various

society while

our

en¬

of 1920 equal emphasis against the Presi¬
couraging individual initiative and
plan
to
reorganize
the
high cost dent's
Supreme

Court. No
no

only be remedied by
production, strict gov¬

reflected, however, the prin¬

ciples of Thomas Jefferson, who,
in
his
first
inaugural
address,

government rigor¬

ously frugal and simple, applying
all the possible
savings of the

public revenue to the discharge of
the national debt;
and not the

the

constitutional

which
In

is

this

our

par¬

democracy

American

connection,

it

heritage.
may

negative

form

of

the

Latin

verb "tangere"—to touch. In other

words, the integrity of

our

tually

democ¬

dominates

and

even¬

vital

the

quench

would

spark which characterizes Ameri¬

capitalism.

can

To

Wilson

quote

again: "The history of liberty is

a

history of limitations of govern¬
ment

not

power,

the

increase

of it."

be

appropriate to consider that the
word "integrity" is derived from
the

which

one

narrow

misplaced loyalty to
or
to groups can be

relentless individuals
pursuit of those who take advan¬ allowed to stand in the way of our
duty to preserve the integrity of
tage of postwar conditions."
ernment economy, and a

"a

was

citizens who select them.

tisanship,

for

Con¬

to give
of the country

objective

the

increased

called

the

to

message

the

integrity of the government in a
democracy is dependent in turn
upon
the qualities of the indi¬
viduals who compose it and the

of living can

It

government

was

as

in the banking field when we

Democratic Party Platform

In the early

fall of 1949,1 visited

fourteen countries of Europe; and
last month, I revisited six of these
countries and
pean

of

other. No Euro¬

one

traveler with

currency

knowledge
be im¬

any

fail

can

to

as

a

securi¬

The lack is

currency.

Government
Integrity

Dependent

on

to future generations the

on

load,

desire to accom¬

the

perform,

multiplication of officers and sala¬ racy and the integrity of our
pressed, as I was, with the lack
ries merely to make partisans, and dollar may best be preserved if
of confidence in every nation in
for increasing by every device the they are untouched by bureau¬
Europe except Switzerland in the
public debt, on the principle of its cratic scheming and manipulations. fundamental
gro¬
integrity
of their
In its September Survey, The
being a public blessing."
national

have to be met today,
the

governmental

plish real or fancied benefits for a
portion of the community."

cates of indebtedness now we may

burden

in

incidence

assumption that by
issuing bonds or notes or certifi¬

tesque than the

pass

to you in all

no

and

In
the
United
States House of Representatives,
I served for ten years on the Ways

appropriations.

and

among

say

solemnity that a hundred million
American people will pay for the

its

will no doubt re¬
as
Secretary of
ter
C? 1 a s s'
the Treasury in which Glass told
home town of
the Congress: "All sense of values
Lynchburg, Virginia, where I at¬ seems to have departed from
Car-

Robertson

"but I want to

extravagance of the government,
whether that extravagance finds

I.

War

World

been ex¬

Glass

Carter

by

pressed

boy¬

spent in

W.

A.

of course, that in

aware,

functions

gress,

mittees.

My

am

old idea

Senate

Banking

regarded with

complex modern economy the
of complete laissez jaire
will not work. There are certain

Reminding bankers that currency

member

a

the

of

be

can

our

footsteps

as

dollar

reasonable assurance."

United States Senator, Virginia

the United States
Senate, and I
have
deemed
it an especial
privilege
t o
be
permitted
his

the

By HON. A. WILLIS ROBERTSON*

that has
my election

honor

greatest

The

Integrity

It

is

adherence

to

those

prin¬

Guaranty Trust Company of New
York mentions the following fac¬
tors
our

as

having built inflation into

economy

thereby

im¬

the integrity of the
dollar: "(1) the cost of govern¬
comments I shall make to you on ment,
(2)
'compensatory' fiscal
the subject of "Dollar Integrity." policy,
(3) the full-employment
I
need
hardly remind you, as commitment, (4) the easy-money
bankers, that the integrity of the bias, (5) labor policy, and (6)
farm policy." These, the bank said,
currency of any nation is meas¬
ured by the integrity of the gov¬ "are long term forces that will not
ciples of Jefferson, of Wilson, and
of Carter Glass that shapes the

pinged

and

upon

ties, constituting as they do a
cease with the rearmament effort
primeJ?3$is, for additional .credit ernment which stands behind it
or with direct price and wage conin theliands of the holders, ^who¬ ($£4: of the »$29 Ibillion of cur/
rericy novf In circulation1 being trols.f They must be adequately
ever they may be. I shall not elab¬
dealt with before the future of
orate upon that point," Glass said, Federal Reserve notes); and the

so

great that it is generally believed
the

nationals

these

of

European

hidden

have

governments

some

$6 billion value of gold and pre¬
cious metals in which the people
still have confidence.

Many of them would prefer dol¬
lars to their

own

complacency
the

fact

that

currencies of two
countries

—

to

gives

able to

be

by

now
prize tfye
relatively small

Switzer-.

and

»V

\\

ours.

me

our

international

Canada

land—above
It

be

the

changers

money

but

shaken

currency,

may

.,

pleasure, however,
commend the

con¬

tribution of American bankers to
dollar

our

sands
ated

-OFFERING

men

integrity. You have de¬

unique system of thou¬
of independent banks oper¬
by competent, self-reliant
who have a conception of

veloped

a

public obligation controlling their
personal. ambitions. Your spirit

A WIDELY ACCEPTED

illustrated during the
by the voluntary credit
restriction campaign which de¬
pended upon the mutual good

was.

past

CORRESPONDENT
SERVICE

well

year

faith of bankers in not

attempting
dollar profits out of a

to squeeze

TO NEIGHBOR BANKS

national emergency and which did
much to take the edge off of the
inflation threat.

FOR THE OVER-ALL

The

BENEFIT OF

architects

of

Federal

System recognized the
importance of keeping it regional¬

CONNECTICUT

ized

and

served

BUSINESS and INDUSTRY

democratic.

the

dual

They

pre¬

system of

state

national banks, and they set
the governing board on a basis

and
up

designed to protect it from public
private partisan influences.

★

or

Operating

John B. Byrne

work,

Chairman

tain

we

an

within

merce

Shippee

and

frame¬

currency

needs

system
of

com¬

and

reserves

President

this

have been able to main¬
elastic

responsive to the

Lester E.

the

Reserve

industry. The banking
of the country are fluid

mobilized

to

meet

unusual

credit demands. We have

adequate

facilities for discounting commer¬
cial paper to maintain liquidity of

THE HARTFORD-CONNECTICUT TRUST CO
760

MAIN

ST.,

HARTFORD

Member Federal Reserve

System

Member Federal Deposit Insurance

Corp.

the banks, and soundly organized
"and

readily

services




available

banking

to be found in every

part of the country.
Last year, the American Bank¬
ers

Association recognized the im¬

portance

System
tS!

are

of

by

the

Federal

passing

a

Reserve

resolution

Number 5158

Volume 176

.

.

.

The Commercial and Financial Chronicle

(1339)

asserting that it was essential that National Bank of Boston, that ex- ing constitutional liberty, which
the freedom and integrity of the elusive of state and local taxes, is a compound of economic opsystem should be preserved. Last the tax take of the Federal Gov- portunity and political freedom.
Our joint task is to communi¬
month, the Federal Reserve Board ernment in the current fiscal year
Remonstrated its independence by will equal the estimated income
Withholding
its
support from payments to all people west of the

cate this

of

sense

responsibility to

all those with whom

we

in

come

central

government, they faced
of necessity and
opportunity. They were unable to
depend too much upon the state

encouraging

combination

a

or

of its creations and

any

forced

to

depend

well
you

them¬

upon

living reality of the motto

a

inscribed
God

Mississippi River and in addition contact, especially those who may selves.
Mr. Aldrich then summarized
allowing the interest rate on one- all income payments to the in- not realize the necessity of a conyear certificates to advance from habitants of the state of Mississippi tinuing struggle to preserve our what I am trying to say to you
the highest in nearly and 55% of those of Alabama, heritage.
1% to 2%
by stating: "Any man who has
20 years.
Spending promises of both candiI was much impressed by an to depend entirely upon himself
dates for the presidency for farm address given in Washington last will
automatically endeavor to
We
all
recognize the serious

as

those elected to represent
in all governing bodies to
as

make

were

depositors

your

27

We

upon

our

coins:

"In

Trust."

Treasury financing operations and

price supports,
and irrigation

problem faced by the Treasury in
managing the huge wartime debt,
which reached a peak of $280 bil¬
lion

1946

in

which

and

has

and

know, however, that the debt
has been reduced nearly $11 bil¬

Cuts Disappointing

despite

I realize that the cuts
in the

stressing the purchase of Savings
_

.

,

.

of sufficient

~

,.

developments, including

_

mLlch

sjt on.
,

"...

,

„

encouraging factor in
considering the integrity of the
dollar is the status of the Federal

Deposit Insurance Corporation,

spending; and that

Eugene Hart has joined A. G.

Edwards & Sons, members of the
New York Stock Exchange and

the vicissitudes of the future; and
as soon as he does this, whether

other
leading
stock
and
com¬
modity exchanges.' Mr. Hart will
be in charge of the commodity

to

department

a

York

to

South

Carolina, most

and

them>
fabric

the

few

precedents to guide

were able
to produce a
of government based upon

conception of the sanctity of

individual freedom which

was

ideally suited to defend and
serve

and

pre¬

descendants.

was

to

be

found

in

the

lands,

houses,
with which

becomes
capitalist; and when a man has
become a capitalist, he has acquired not only property but the
sturdy self-reliance which will
enable

him

to

value

his

and defend it against every
from any quarter."
You bankers
sense

Aldrich suggested that the

acquired

goods, tools, or money
buy such things, he

that freedom for themselves

their

Mr.

so

has

are

custodians

in

a

of

in

office,

the

501

firm's

is

Avenue.

vutj

very real
American

capitalism, the by-product of

po¬

litical and economic freedom. It is

VPaine, Webber Adds
:

■

:

(Special to Thk Financial Chroniclb)

LOS

ANGELES, Calif.— Fred
a substance more precious than
Peecher is now with Paine, Web¬
anything which your customers
Finding ** fhnmwivod
themselves keep in their safe deposit boxes. ber, Jackson & Curtis, 626 South
f'Ant'"p"t •1 Fmniirnr
3,000 miles away from any strong I urge you to guard it well, while Spring Street.
*

the":
forebears
continent.

and

men

had upon

of

this

a

You .know,

however,
that the biggest item
the

uiouiauuc

•

I

..

,

failures, it has
not to touch. Others involve a!
pay¬
been of immense value in prevent¬
ments for programs
which have
ing public'hysteria, which was a
legislative authorization and which
primary causeof bank failures and
cannot be stopped until the aueconomic disturbances inthe
preventing

bank

past,

withdrawn

'

are

*

or

modified,

the rapid expansion of real

over
-

thorizations

I have been somewhat concerned

,

estate

from

mortgage credit which rose P
outstanding, total of ^'££2*

farmers *hat I disap-'
1^* extension °f •the

an

-billion

in

billion

1945

this

to

more

than

$54

I was opposed to the provision written into
and

year,

«? costly to

™

the Defense Production Act which

requires suspension of credit controls if new housing construction

J

'

r»flt

*

,Dort

cri

,

nroviHpH

r^-asurvw

a

priate funds required to meet the

rnonths, the highest rate m our promised
subsidy payments; and
history. I was encouraged to learn j would not feel
justified in cutrecently, however, that in the first
ting ^
funds
months

seven

standing

of

this

advances

-Home Loan

outFederal

year,

of

to their

Banks

mem-

-

tir,

.,

*1 every effort must be
!£adf
e was*e ln de~
Sg'

ber institutions have declined 18%
and that the

outstanding notes of

creased

50%, with the result that
outstanding advances of this

bank

svstem

represents

its

to

members

3 3%

onlv

of

now

their

*Jem. w^lle

fh

^0rld

the Federal Home Loan Banks de-

the

■_

,

acu+te'

lI
You and 1 value
vn,

°Hr freedom too
ta^ on lts

much to put

a

preservation.

However,

pnce

can

we

improve the efficiency of

assets

pro¬

curement and other aspects of our

Under these circumstances, the
tightened money market may pro¬
vide

all

the' restraint

is

that

needed to prevent further unwar¬
ranted

inflation

values

and

of

real

estate

topheavy mortgage
which
might
become

situation

a

dangerous when the tide of infla¬
tion

turns,

Edmund

do
I

learn

not
am

as

some

day

it will.

said

that

nations

Burke

sure

something

by experience,
bankers

our

about

the

but

learned

danger

of

military system; and by looking
ahead and planning strategically
to

put

our

be most

forces where they will

effective,

overall

our

to

say

needs.

can

We

reduce

also

ride

backs

our

when

you

tions, anywhere.

my

recent visit to Europe

to,how much
in

on

allies

help

some

when

we

can

re-

integrity
both

are

discouraging
estimates

of

of

the

dollar,

encouraging

angles.

The

and

latest

budget

receipts and
expenditures indicate that despite
the largest tax collections in the
country's history, there will be a
$10 billion deficit at the end of

\

can

purpose,

as

Senate, to do
of

a

tax

you of my

assure

member

a

my

sound dollar

dollar

go

as

best

in

the

behalf

by making each
far as possible

American

sys¬

hand, the tem of free, competitive enter¬
budget as approved by the Con¬ prise which has made us the
gress was cut $8 billion, or ap- greatest industrial nation on the
proximately 10% below the Presi- face of the earth. I am sure that
The

fact

remains,

however,

,

as

the

-

members

of

the

Bankers Association

American

^equally
recently pointed out rby the'First dedicated to the^task of preserv-^l




:.are

enable

you to meet

the requirements of

financial, commercial and government organiza-

tions and

Europe and correspondents in every part of the world

Guaranty Trust Company to help you understand local condi¬

gain on-the-spot information wherever and whenever required;

Guaranty Trust Company of New York
Capital Funds $380,000,000

running our government and
by preserving in that government
fundamental

as

sincere
of

fiscal 1953. On the other

dent's recommendations.

also enable

in

the

well

Branch offices in

duce

our
national spending, as
have advocated, to anything
Looking at the broader field of approaching pre-World War II
federal spending and its influence levels.

the

as

count

we can

an
emergency from
our
there, I do not believe the

come

place extra banking facilities at the disposal of your

Broad and effective, these services

during
as

1929.

on

you

customers.

individuals,

time has

there

advantage of the correspondent banking services of Guaranty Trust

Company and

able to walk." But, especially
in view of the uncertainty I felt

are

inflated real estate loans following
the stock market crash of October
v

Take

can

valued European allies:

our

"Don't

we

.

offices in St. Louis and Clayton,
liberty
Mo.;.Springfield, 111.; and Houston,
threat Texas.

encouraging

wi? P1}?

.:

A. G. Edwards & Sons also has

in
budget is for military spend¬
interest and now has a surplus of
ing, while -other big items are
approximately $1,300,000,000. Aside
fixed obligations, such as interest
from the actual protection which
on the debt and veterans'
pensions
this insurance ojroitiu
system piuXJLA
provides in
"
plus

New

Lexington

fre.nd-toward- economy that will
f>ainforce^ in^succeeding years. A
J°urrjey nf a thousand miles, says
ai\ £, ^!^ese proverb, is com-

which has returned to the governinvestment

children

reduce

^because I believe it indicates

Another

his

A. G. Edwards in NYG
J.

protect
against

^ a co"scientious effort,

4

Status of FDIC

initial

.

and

to

chusetts

answer

Comnrfttee and consider the probiem item j™ item

himself

something

he

becomes

.

its

American Consti¬

complicated when you
the Senate Appropriations experience which these

returning closer to the pattern
envisaged by the founders of the
Federal Reserve System.

naent

dis-

more

are

•

year,

are

to ,balance the

size

howeverj that the task

between the Federal Re-

and the Treasury is working
and that money market operations

serve

deficit,

a

;national budget. I can assure you,

the permitted rise m interest rates
indicate that the accoixl reached
last year

made

we

appointing to those who believed
it should_be possible to make cuts

-

_

,

the

on

accumulate

tution and expressed wonder that
a few men scattered from Massa¬

tion

.

budget estimates this

which still left

more inflationary securities held by banks have been

$24 billion.

mented

a

of them with little formal educa-

the impact of the Korean War. By

reduced

in the Congress who

us

zation of power must be stopped.

to

Bonds, the

power

big government and the centrali¬

mpting inflation. It is encouraging

years,

of

public

believe that the tidal drift toward

almost unlimited capacity for pro¬

lion in the last six

better

those

an

June by

member of your prodams, and bigger fession—the Honorable Winthrop
pensions discourage W. Aldrich—in which he commore

J. E. Hart Joins

(140 Broadway
'New York 15

Fifth Ave.

at

44th St;

Madison Ave.

at

60th St.

New York 21

New York 36

Rockefeller Plaza at 50th Su
New York 20

LONDON

PARIS

BRUSSELS

32 Lombard St., E. C. 3
Bush House, W. C. 2

4 Place de la Concorde

27 Avenue des Arts

Member Federal

Deposit Insurance; Corporation

28

The Commercial and Financial Chronicle

(1340)

Continued from page

record

18

some

production

change

as

could

crises.

farm

new

such

create

Inventory

basic economic force

a

ahead probably

year

best

can

economic

be

will

long

question—how

it stay

in

being formed—
abnormally

families

new

low birthrate of the

Economic Forces
Operating in the Year Ahead

The Principal

one

trends

This

will

means

depression 20

national

tude

demands for

Many

economy.

back

to

defense

in

1950

mistake

now

by

economic

penditures
of

of

when
from

the

unusual degree

by some divergent
these areas.

tendencies in

have

country

largely

more

which

strictly
will

be

some

of the

economic forces
influencing busi¬

prospects for the year ahead.
These will include: (1) population
ness

and

family formation; (2) indus¬
capacity and capital expen¬
ditures for plant and equipment;
(3) inventories; (4) the fiscal potrial

cition
sumer

of

government;
(5) con¬
incomes and spending, and

(6) the balance of foreign trade.
On all

sides,

ifestations

encounter man¬

we

and

discussions

the

of

great upsurge ih population which

jhas

occurred in this

1940.
25

This nation

million

more

country since

now

has

about

people than be¬

fore World War II, largely because
t>f several years of record births.

The

future

States

growth of the United

seems

assured

as

these

youngsters reach maturity, bring¬
ing with them the boundless needs
and

desires of

generation.
enthusiasm over the
a

new

upon

hand.

sant

such outlays is close

High

rapid

usage,

needs

rates

supporting

some

most

The

time dur¬

obsolescence,
to

reduce

costs

ily being accelerated

sonal"

cushion the decline in capital in¬
vestment.
But
here
is
another

substantial

major economic force which

first

The recent

half

This

with severe inventory
liquidation, plus the skepticism of

people

today—toward

you

larger

in¬

the

a

Winter.

In

in

the

are

at

year

situation

reverse

will

be

Escape

fortunate to

financial

stringencies

of

liquidation

35%

near

'

the

payments

this

income, the economic

consumer

expected

to

spending

LIFT

can

in

we

im¬

are

embarked

upon

of
import limitations
already
have
restricted

programs

which
wide

market

products.

the

Jhr greatest

territory,
the
:

We

number of banking offices

one

in Jhe

-

Passaic-Bergen County

of the fastest growing industrial and residential

State.
offer

no

for

areas

trust

in

There

quick service

on

your

collections

and

full

cooperation

problems in, our locale.

We think

you'll like

our way

banking

as

situation, so
economic force,
net

an

aside

private

on

from

account

aid

government

nations)

can

\

expected to have

beginning
which

next

down trend

a

two

year,

likely

appear

to

others

follow

course, and

only

a

one

with

moderately upward tenden¬
On economic
grounds, there¬

that

we

can

seems

rather

expect general

improve slightly

remainder

of

1952

1953, but also that

some

oyer

and

into.

weakness

will appear later in the
year, par¬

ticularly in the heavy goods lines,
with some depressing effects
upon
prices.

This

precise

enough,

view, inter¬

now

appears

cast

among
business
across the
country.

to

Can

TRUST

COMPANY

we

this

be
entirely
appraisal of

based

think not.

that

to

It,

satisfied
business

primarily

seems very

political
and

upon

probable

developments

abroad

change -the

will

actual

I

just established.

would

the

expect
to

strictly

would

at

intervene
course

business somewhat from the

average

Clifton, New Jersey

ting

almost

tax

during

certainly

"value

more

dollars

there
get¬

on

received"

being

now

for

spent

Heavy gov¬
outlays, it is widely con¬
ceded, have resulted in only lim¬
ited progress toward placing our
Allies on an
economically selfsufficient
basis, and have pro¬
ernment

duced little enduring goodwill for
us

the

among

aid.

recipients

ments,

Moreover,

of

our

our

de¬

still

are

woefully

weak

this country and in other
parts of the world which we have

agreed to help defend.
Tax

view,

Cuts Ahead

and

is

both in¬

on

businesses,

likely

modification

unrest over

to

of

lead

the

in

to

my

some

present

-

tax

laws in the not too distant future.
In

this

the

connection, I suspect that

Presidential

find

the

candidates

campaign

period

will

be

to

extended that to maintain pub¬
lic
interest
in its
closing days,

so

promises
sides.
lic

will

flow

freely

If such is the case,

appetite for

whetted

all

tax

a

the

all

on

the pub¬

cut will be

and

more;

some

potentially fruitful seeds will be
planted for Congressional action
on

taxes

strictly
might

next

year,

budget

even

though

considerations

rule out any

to

seem

eventuality.

In

such

event, Con¬
facing the tax

any

gress cannot escape

question early next year since the

profits tax expires on June
30, 1953. Any move to modify the
excess
profits tax is very likely
excess

to be linked

ilar

action

inseparably with sim¬
adjusting personal in¬

taxes

come

Third,

well.

as

growing

grassroots

for relief from

mands

consideration of the economic fac¬
tors expected to be at work?
I

tern

and

its

several

on

the

de¬

uncer¬

tainties

home

Paterson

First,

analysts

Political-Psychological Factors

prospects

AND

views

policy
questions of considerable impor¬

,

cies.

with

NATIONAL SANK

make

dividuals

of doing

Chairman

its

forcefully

known

that

business for you.

RAYMOND PETERSON

American

crystallize

be

to

appears

be the most
commonly held fore¬
you

the

will

American

reason

estingly

with you and your customers in the successful solution, of
your
or

areas

*

believe

in

few

next

rather

Second, the current
the heavy tax burden

the

the .largest bank and have

and

to foresee any marked
improvement in this

little

clear

are

I

public

prospects

In the

both in

goods, they

necessarily

business to

1st National Bank. ?We

weeks,

ahead.

will

influ¬

have

fore, the conclusion

on

business

upon

the year

important

no

fenses, according to official state¬

fairly neutral

Jersey, call

have

to

view

abroad do not have sufficient dol¬
lars to buy many U. S.

are

New

these

hard

next

business prospects over the
y£ar
ahead reveals at least three
which

of

of

it

foreign

upon

section

really

interest. Exports actually account

This brief review of six
impor¬
tant
economic
influences

our

find

will be greater insistence

*

have services to be performed in

I

at home and abroad.

,

you

Because

years.

accept the frequently heard
that
the
coming
election

business

be expected
to be DOWN further
in the year
ahead.<
*

when

idential

which most Americans have little

(i.e.,

re

presentations than in former Pres¬

porting too little. Because nations

but

be your

so
doing requires of them
variety in their political

the

to other

we

in

tance to business prospects
the year ahead.

of

foreign trade

May

but

more

increase in

world is evidence that

two,'-required
year,

Television, I might add,
only puts the candidates liter¬
ally in a nationwide goldfish bowl
not

some

produced

make

key

significance. The so-called "dollar
shortage" in many parts of the

June, when corpora¬
tions will be making two 40% tax

tory

again be¬
determinant
of

ship overseas and receive from
abroad has considerable economic

al¬

and

funds.Jo

fairly normal

a

once

for only about 5% of total United
States business, but how much we

money

whereas

1952, tax liabilities to be paid be¬
fore mid-year. Substantial inven¬

storage,

present, but another

more

payments—a total of 80% of their

burdensome

crops

particularly

of

inven¬

accumulated

and

a

More

inevitably will be true next
Spring. The business j community

distinct possibility that
own

half.

most

seasonal'purposes.

manufacturers'

and

year

second

Treasury than it receives,

March

There is

the

each

con¬

slightly in coming months.
Foreign trade is a subject

Treasury surplus in the
of

which

such

records in many parts of the

ence

With

of

use

campaign,
be rising

to

what the public will spend. Since
the immediate outlook is for some

be

a

another

widespread

the

seems

wishes

force

business.

about in the form of

outpouring

for

some

S.

^sea-

from the

acute

than

in

has„ the

new

ended.

income
the

by

increases,

wage

yet

buying in

comes

injo the first
a

of

not

fashion,

stead¬

are

nqw

pattern for U.

half

ventory investment should prevent
any appreciable increase in stock¬
piling of goods jn coming months
other

yeaf

producing

comes

production

followed

in

circumstances,

strikes which has

industrial

been

sumers

of

specifically, business this fall and
early winter will be bolstered by

many

as

each

of

deficit

during

industries

•financial executives—such

of

effect

prom¬

experience of

Operation

corporate tax payments

by

cheaper manufacturing processes,
increased competition, and mount¬
ing depreciation allowances will

ises to be heading DOWN
the year ahead.
i

too.

the so-called Mills Plan by which

inces¬

de¬

consumer

and employment in recent months

has

well, -Uncle-Sam

very

of

wave

disrupted

ahead.

money,

urgent

mands have been pretty well met.

shortsighted to consider

know

collects

machine

of

ing




all

increasingly clear that

the peak in
at

must not overlook the current de-"' not

cline in numbers of marriages and

in

round

agriculture,

we

the

is commonly expected

has

further this

country,'

people not to take
official predictions of "shortages"
at their face value. At the
moment,

only the expenditure side of the

tories will be reduced

this

the American

that

government's fiscal activity. As we

business, but it

across

Fall

in

is

equipment
is becoming

But, in our
longer run prospects for expand¬
markets

spending. In addi¬
tion, the Korean War has taught
consumer

the

as

to a
new pitch.
Registrations for vot¬
ing in November have established
nation.

NEUTRAL

But it's

ex¬

new

based

year

and

debt. Subsequent

well

as

pered

doubled. In 1952, roughly $27 bil¬
lion will be spent for plant and

"

Let's consider first

than

more

questions. This year
because of the stature of the can¬
didates for the two major parties

payment schedules also have tem¬

pronouncements,

be

savings

coun¬

very

and economic

are

expanded
The general

in 1953. This economic force, con¬
to

liquid

consumer

be

me

salutary effect of
getting more people interested, if
for only a few
months, in.political

shipments

ing the

an

panded

vastly

of

to

try has the

efforts to rebuild savings and meet

production.

expectation,

public during the early days

can

Let

sup¬

specific.

ex¬

general business at

be marked

in

business.

will

to

A national election in this

defense

sequently,

ness

in

similar

a

underestimating

force

mounting
lines

making

ity of American industry to .pro¬
duce increased
about
15%; and
since 1939, the industrial facilities
the

port general

interest

are

"guns" and
"butter." Since mid-1950, the abil¬

of general busi¬
in the months just ahead will

increase

Larger dollar in¬

balance

on

changes tending

personal

viduals

of this nation for both

course

real

no

power.

have been offset by the rise
the cost of living. Moreover,

comes

indi¬

Some

operating on the. one hand, and to
come
probable political develop¬
ments and changes in public atti¬
view, the

spending

has

policies

produce

television

goods.

official

my

ernment

of the Korean War reduced
many

delivered

defense expenditures will level off

For -in

experienced

States

least

at

popularly assumed, and that shifts
in public attitudes toward
gov¬

for

pansion of the productive capacity

other.

much

more

United

be

if not increased, for a
longer
period than
now

the spending spree of the Ameri¬

impetus to further tremendous ex¬

the

the

will

program

properly between gigantic appro¬
priations and the actual payments

ahead to draw attention to certain

on

to be

Thursday, October 9, 1952

.

fense

Over the past year, the average

be¬

basic economic forces likely to be

tudes

the

over

seen

inflationary over the
months, and then tem¬

few

family .in

distinguish

to

receipts

thus be

can

.

sustained,

government

porarily deflationary.

people

1951

tax

moderately
next

expendi¬

and

failed

they

cause

as

actual

of

tures

this complex field of items—which have benefited im¬
"political economy," a measurably during recent post¬
useful
expression seldom found war years of record numbers of
today except in fairly technical family formations. In short, here
is one important economic force
literature.
I believe that it is both neces¬ which points DOWN during the
year ahead.
sary and profitable in appraising
The Korean War has given great
business prospects for the year
referred

study

rising

tended to overestimate the magni¬

established.

be

reduced

all well aware,

are

expenditures for de¬
fense currently provide one of the
principal forces supporting our

Over the next few
years, the nation faces the almost
inevitable prospect that fewer new

movements are
products of many lines of
linked with political and psycho¬ the
business—e. g., homebuilding. fur¬
logical developments. With good
appliances, and related
reason, some of the early writers nishings,
economic

closely

we

of

versus

ahead

year

government

ago.

years

who watches business
these
days
knows
how households

Any

As

the direct result of the

force

spending

considered NEUTRAL.

this way?

of

source

is

likely to be at hand
early in 1953. On balance, the net

affecting business prospects in the

The Year Ahead of Us

convenient

money

.

of

pat¬

In general,

business

on

the

hold

up longer than
economic, forecast

suggest.
My reasoning is
essentially that I believe the de¬

of international tension,
specifically for some honor¬
able "settlement" of the Korean

and

War,

as

revealed in polls of pub¬
raise doubt that

lic

sentiment,

the

international

What

year.

will

be

me.

But

is

would be
not to
ments

status

throughout

prevail

the

quo

the

will

coming

actual

outcome

certainly not clear
convinced

I

am

a

serious mistake for

expect some

new

these

along

to

that

it
us

develop¬

lines

in

the

months ahead.

Fourth,

there

pressed. desire
for

removal

threat

to

is

a

across

of

the

national

widely ex¬
the country

ever-present
economic

life

Number 5158

Volume 176

The Commercial and Financial^ Chronicle

.

.

.

from

crippling industrial disputes.
can be expected to
bring forth some new public pol¬
attitude

This

crease, our

much

defense program for

longer period than .is.,

commonly believed. If

ask

we

a

Deflation

Leading

Increased

to

than

more

decade

a

Of full employment, many people
have

to

come

conditions

that

expect

will

initely. A

boom

continue

indef¬

generation, in fact,
has grown to maturity knowing
only
highly
prosperous
times.
While

new

every

is

one

general

in

with the objective of
maintaining high employment and
income, a growing attitude that
agreement

there must
economic

be any let-up

never

freedom

of

narrowing

executive

gressional

policy

action

matters.

tremendous

tual,

our¬

I believe the stage

this

on

perhaps

participants,

nevertheless

must

plans accordingly.

This

afternoon

in

evaluate

a

I've

tried

forthright

both the possibilities and my
ment of the prospects for

of

nesses
can

judg¬

create

dis¬

national

in his hour of potential

man

ican

long

over

our

political life. We

to grow and prosper

eral business situation.

Obviously

as

crystal ball.
certainty about fore¬

In

have

no

There is

foolproof

one

the

future

the

real

we

can

demonstrated

In

of

closing,

about the

face the future

ability

again will

known.

will

course

the

ahead,

once

desires

let

story which I

will continue

because

so

be

Our

charted

point,

collapsed/In the end, he got home

one

that

feeling that Amer¬
wobble a bit

may

the year ahead.

time, later it
on

a

business

we

may

knee.

will

But I
be

Perhaps

even

as

am

some

get down
confident

successful

as

wobbling stranger, and avoid
collapse.

my

accordingly.

happen.

confidence

only

just

people

their

forecaster lives long enough, both
he and his audience will find out

But

weeks

American
make

The coming year

can

this condition continues to hold.

casting, however; and that is if the

what actually does

strength.

one

he actually dropped to one knee;
but despite my fears, he never

expect

with

to

need, I followed him. At

and

in

expected

of

injecting new, albeit artificial,
strength once again into the gen¬

us.

be

this

our

of

challenge the best that is in all

which

any

safely. I have

of

ahead

of

the;people feel is still the
controlling force in our economic

to

year

meet

How

num¬

the

to

working

wark

potential economic weak¬

a

the

democratic processes lies the bul¬

is being set for

number of far

the year

ahead. I've said I visualize
ber

to

fashion

system

In

reaching political
and psychological changes in this
country which will have the effect
a

we,: I

lay

crisis.

was

of
our

last

me

told

at

finish
the

wobbling stranger who

staggering

seen

Teddlie Opens Office

the

outset

in

the

WACO, Tex.—George K. Teddlie
has opened offices at 2508 Wash¬

distance from tree to tree. Because

ington Avenue to conduct

I

rities business.

thought I might

be

helpful

to

a secu¬

in

Con¬

economic

on

of

the

not

ac¬

Because

of

our

an arms

American

markets

but also that

the

and

if

potential,

power

As reluctant

scattered

in

country,

29

has far-reach¬

activity

implications

ing

race.

Americans

Inflation

Fifth, after

again is engaged in

the

across

year

once

turbances

now

ahead, aimed at. selves the question, will the Rus¬
promoting greater stability in em-, sians be tapering off their defense
ployment
and
general
business program next year, I expect most
through
fewer
national
work of us would answer "no:" This is a
shocking realization that the world
stoppage emergencies.
in the

icy

(1341)

sentiment

public

point, a little deflation—
as
indicated for some

astest

.

time next year by the outlook for

.several key economic forces—may

to

prove

be

tributory

of

con¬

inflation.

more

combination for

these

all

How

important

an

cause

changes actually
will depend, of
course, to a considerable degree
upon which Administration comes
into office in January. That should
will

„

work

out

be easier to
Thus

predict

far,

checking accounts.

Nov. 5.

on

have limited

we

our

appraisal of probable political and
psychological change in this coun¬
try to matters largely associated
with
domestic affairs.
Develop¬
ments abroad, of course, also in¬
fluence

public opinion,

and can¬

Unit Plan!

not be overlooked in judging bus¬
iness prospects

for the year ahead.
reports from Europe

Recent press
indicate

deal of unrest
"austerity" meas¬

good

a

over

continued

ures

accentuated

burden

the

by

gives you S advantages each day you use it!

of

rearmament, despite all the1 aid
being extended by this country.

-

possibilitv

political

another

of

the

concede

observers

Numerous
'

1. simplicity

shift to the Left in Britain within

be learned in a few min¬
sharply reducing operator training time.
When statement-ledger is placed on the automatic
Machine operation can

the

coming year. This could easily
mean a scaling down of the Brit¬
ish defense program.

ingness

Further evi¬

inability

printing table, 8 important steps are performed
automatically.

unwill-.

or

nations in Eu¬

of Allied

meet their defense com¬

to

rope

the

of

dence

utes,

almost

mitments

tinuing

as

neatness
Statements-ledgers and journals are posted si¬
multaneously—all in original print.No carbons
needed.
Uniform printing at all times assures

our con¬

substantial

provide

to

2.

to the ef¬

wisdom of

or

will

certainly

raise questions here
fectiveness

military and economic aid abroad,
least

neat, accurate statements

Obvi¬
ously, this is another political area
at

3. speed

which will bear continuous watch¬

ing".

By actual and repeated tests, this National Com¬
bination has proved itself to be 25% to 50%

United States foreign policy
come
under careful review

will

in the year

faster, depending on the method it replaced.

ahead, with important

for
banking -and
general business to the extent that
repercussions

changes

4.

control
under lock-and-key, plus

Dates

made.

are

you

over-

provide control not available
with any other machine.
Entries on statements
and ledgers are always identical.

Changes

doubt

no

automatic

"

draft
Russian
As

which build good will.

present terms.

on

are

all well

in recent weeks the Rus¬
sians have been making headlines

detection,

aware,

several

5.

economy

policylevel changes of their own. Am¬
bassadors to several major capi¬
with

have

tals

important

nals

important mission to Moscow from
Red China has been completed.
nounced.

And

new

a

often

ments

in

shifts

,

tactics

toward

the

no

war,

more

one,

of

of

rest

peace

course,

or

the

•••••.•

!«•••••••••••••

★ Feeds checks and

National does automatically, the operator cannot do

deposits into view for posting

★ Accumulates and

more

camreally

again, we have further evi¬
of changes coming in the

Injects the form to proper posting line

★ Selects the proper

★

★ Corrects

columns

Spaces the form for multiple postings

★ Detects overdrafts the instant

they occur

*

international political front in the

i.
•

★ Prints checks and

ahead.

Personally I
lieve

that

these

political

am

the

and

effect

of

tend

to

overdrafts in red, deposits

in black

<

posting errors, adjusting affected totals

psychological

sustain,




if

not

in¬

*83

simultaneously with

f

single key depression

|

balance is

'

mmmmm

Ejects form when

printed

''

ACCCtmtm AAMtHit

■Mm

Aotnm mAmm - m# mmm

all

developments at home and abroad
will

wrong!

prints check count

inclined to be-

net

more

••••••••••••••••••••••!

What your

★

dence

year

get faster and

neater and

moves

outside of the Kremlin itself.

But

.

and

strategy

world. Whether these latest

foreshadow

•

foreshadowed

have

Kremlin

check-and-deposit feeder that

produces statements 25% to 50% faster than other methods.

.

Party Con¬

has been called for an early
In the past, such develop¬

gress

date.

say

The National Machine with

A

Five-Year Plan has been an¬

new

...

legible records . . . more
uniform ribbon printing at less ribbon cost . . .
greater machine life . . . ALL at a big saving of
time and money!

.

An

reshuffled.

been

less costly jour¬
better form alignment

With this combination you use

THE

NATIONAL
CASH REGISTER

DAYTON 9, OHIO

m

30

(1342)

The Commercial and Financial
Chronicle

bonds

in

hands

ultimate

of

in-

vestors.

Our

Reporter

Governments

on

Yield

The
ceived

By JOHN T. CHIPPENDALE, JR.
The demand for funds and tight
ernment market

side.

will

be

To

the uncertain

on

from the

lieved to be

from

lows that

new

were

re¬

but this is not be¬

cently made,

than

more

rebound

a

oversold and too sharply

an

quoted market.
Volume has in¬
creased slightly but even so the
market is still a very thin affair
and one that can be rather easily
in

manipulated

held

the

at

Speculation
With

direction.

either

to

level

current

of

Prime Bank Rate

on

the

of

uncertainty

the

Humors have been very prevalent

prime rate overhanging the mar¬

in the

is a definite lack of
the higher income
Treasury obligations. This results

market,

indications

but there

are

official

that

keep

or

in

it orderly.

ing

of the attention
let

no

thin market that

a

for

them
time

al¬

there

bills

and

bills

of

it and

what

regular
four

Treasury

basis

points

However,

Giles Failure oi

run

liquidity. The
bills went well,

accomplish

Monetary Fund
October "Monthly Bank Letter"

they de¬

operation.

A

such

by

very

an

ing that is necessary in order to
a
price trend.

closer relationship to the 91-day
maturity than was the case in the
past. Tax swopping, it seems, has

sustain

Housing

brought about a minor increase in
volume and activity, because quite
a

The

towards

ness

market

receded

a

were

possibilities of them
a later date at lower

interest rates? The
be

one

seems

to

had

to

raised

to rally after selling at new alltime. lows, in some instances, gave
a

was

higher, because why

being sold at

future. The ability of the in¬
termediate and longer term issues

to

indication that the

as an

headed

there

near

encouragement

concerned. Some looked

are

should these tax exempt bonds be
offered now at this high rate if

bit, it does not seem as though any
important change in this general
altitude is to be expected in the

minor

factor

general trend in money rates
still

Government

to have

seems

Housing bonds

favorable

a

the

on

the longer term Govern¬

this

upon

of the bearish¬

the

been

as

ments

Bearishness Still Prevails
some

not

far

as

they consider favorable.

Although

has

prices

Governments

vs.

recent tax exempt

few institutions have been able

to effect these exchanges at

Bonds

high yield carried

was

be

needed

another

very

to this

answer

that

the money

because

now

immediately. This
in which there

case

it

was
was

f$oomy market. The combination only Hobson's choice. The high
«f a small amount of buying, and yield at which the Housing bonds
were sold at not
Only took buyers
aome short covering by traders,

out of the long Governments but
also brought about sales of these

enabled the market to get off its
This performance, however,

feaek:

ii* the opinion of not
market

followers

a

bonds in order to get funds that
reinvested in the tax exempt
issue..

few money

is

were

natural

a

technical
not

ate

development, but it is
likely to indicate any immedi¬
change in the general trend.

This does not,
however, preclude
tfie possibility that a bottom

might

b6 in the

of being made

process

'fey the backing and filling method,
which

has

been

the

in

case

the

past.
The belief that the
money mar¬
ket still has other hurdles to
get
^ver

ticism
«ne

the

is

that

reason

is

for the

around.

skep¬

Probably

of the most prominent forces

working
prices

against

of

settlement

a

Government

in

securities,

especially in the longer term obli¬
gation, is the question

to what

as

The
It

Political

seems

as

Factor

is

ments
a

to

make

commitments

in

the election. For what it
might be

structive

should be

a

change

in Administration

the

new

in
Washington,
Secretary of the Treasury

would offer

long-term 3% obli¬

a

gation for refunding and

conver¬

sion purposes. Also the
higher rate
would aid, it is

MJ,uin getting

Municipal Finance
Municipalities

assistance in

of

the financing of

of

existing

States and

plans for

debt

We

WE
are

cial institutions and

Woods

is

con¬

other

structures,

DO

NOT

and

BUY

financing,
planning
financial

OR

SELL

pleased to cooperate with finan¬

investment houses.

of Hitler

international

New York
5, N. Y.

Telephone WHitehall 4-3540

stronger

The world

and

will

not

healthy balance of suddenly grow larger and these
payments position; and that it is forces diminish and; fade out; it
the failure to apply these policies will continue to shrink and
you
a

and the absence of internal stabil¬

must be prepared to recognize the

ity which make inevitable

fact and the possible effects.

manent

structure

of

a

per¬

trade

and

their

present

been

done

status.

was

With, this
that

currency controls.

shows, thriving dous loss
does

commerce

part

What

of

goes the possibility
form of the problems

some

face today will continue for a
long time to cornea l wish I could
be optimistic enough;to believe we
we

could

return

world

in

time.

I

to

some

hope

a

more

normal

reasonably

short

we can—but there is

real indication, of it because
hashave
with us and ahead of
no

we

effort

an

us

In any event we have

on a

universalized fixed

not

rates

.

decisions

of

physical wealth ac¬
by an 'immeasurable

companied

political and economic dislocation.

exchange; it demands reason¬ Once powerful nations are no
able stability of key
currencies, a longer powerful—others have been
universal freedom to hold and

these

currencies

in

use

international

broken
ments

up

or

have

absorbed.

changed

Govern¬

their

form.

settlements, restraint in the Large segments of population have

trade

of

the

mutual

benefits

that

strains and pains of birth and de¬

power

lie

in

the

hands

of

a

dedicated to world revolu-:

tion,

we can not - assume we< are
assured either peace or security.;

Until that time, comes you can not
sit back content to think only in
local

terms.

Youl

longer
personal
or turn your
the effect of international
can

everything
domestic basis,

measure

and

back

on

events

on

no

on a

the lives of everyone.

What has

happened already has
velopment. And, out of this malestrom, only two great world pow¬ deeply affected your business and
"The Fund was rushed through
ers
remain—with completely op¬ your personal affairs, and every
during the war as a once-in-aone of you is immersed in interposed philosophies of life. One of
lifetime opportunity to shoot for
them is the United
flow from international trade.

the

rid

and

moon

fetters

the

trade.

on

undertook

the

States and the

world

Many

reach.

was

never

The

charter

ink

of

nations

obligations

their fulfillment

but

within
the

on

other

Soviet

clared

Russia, with its de¬
of world

program

revolu¬

tion.
The

fundamental

whether

the

question

future of the

is

world

hardly dry
gradually is to be hewn, into the
before it was recognized that re¬
form of
the totalitarian state,
covering the solvencyof the
dominated and controlled by the
pound sterling, so vital in world
Soviet Communists; or is to be
trade,
was
prerequisite to any led into the path of freedom
and
kind of normal
functioning of the human dignity by the
United
was

economy.

A

taken toward this
with

$33/4

a

United

of

loan

major

one

but

from

the
and

revaluation

the

objective

Prime

the British

Min¬

Common¬

wealth, gathering next month in

London,

may consider a fresh at¬

tempt. The Fund presumably will

ise of

success.

It

resources to sup¬

is

center

as

a

depends

national destiny,
but we can not escape the fact that
most of the hopes of the remain¬
our

ing free world rest
like

problem
what

we

it

or

and

on us.

not,

we

much

Whether

have

the

depends

on

do with it.

Obviously

have

not

been

the

upon

x.
-

finding

a

reeourcea,

Ior

more

tlun

oppotile

a

century

Ji>

L'.S.Treaiury.

IiKjuirief corJi.llv invite J.

ready to play the part history has
written into our script. We have
lacked experience and have been
buying it at a tremendous rate
and

at

a

high cost.

What

are

within

FOREMGST in

experience, {acililic*. Locale J

reclly
we

not

world, financial

workable solution."

original

conception of

we

Commonwealth that the survival
London

We did not seek this
leadership
it is contrary to the

and

becoming in¬ doing and will have to do is
the kind of thing at which

creasingly" recognized

of

States.

we

still eludes solution.

isters

by

Government,

pound,

of

have been

end, beginning

billion

States

the

succession

measures

be ready to offer

Waitiwright, Ramsey & Lancaster

beeome

faster.

institu¬

port any solution that offers prom¬




to

stability

exchange restric¬

*

70 Fine Street

essential

internal

.....

extraordinary
a

tremendous im¬

a

wars or revolutions which
empha¬
program that prob¬
size the need for strong
ably will be difficult to change or
military
tion "an overambitious project,"
forces. There are all the
compli¬
modify.
one that "shoots
at the moon to
cations
and
dangers l that
can
I propose an
entirely different arise from the;
rid the world of fetters on trade."
international dis¬
emphasis. It is that you can not
turbances: continually: ;>
"The
basic
appearing
difficulty of the consider with
any sense of com¬
Fund," states the "Monthly Bank placency the present state of world throughout the world. And; there
is the continuing problem of con¬
Letter," "stems from misconcep¬ affairs.
You can not ignore or
trolling inflation, at home and of
tions at Bretton" Woods of what shove it
aside as a matter of little
ensuring our own economic
the postwar world would look like. concern to
you, to your business,
strength and' financial- solvency.
Even * apart form the unexpected or to the future of
yourselves, your All ; of these are
closely inter¬
tensions between East and West, children, and the nation.
woven.
it was an unnecessarily ambitious
Overshadowing everything else
Efforts of many kinds are-being
aim to have all currencies, world¬ is
the fact that the entire balance
made to meet these problems and
wide, linked together in fixed of international
relationships has there are
varying degrees of prog¬
ratios and freely interconvertible been
upset by war and subsequent
ress.
But, so long as the most vital
at such rates. As history prior to events. There
has been a tremen¬

including
new

self-liquidating projects,

relations.

SECURITIES.

render

we

This service includes
experienced

development

reorganization

public

Municipal Finance

units.

influence
move

that

City Bank of New York, embarked

practical

v

do has

on

bility;

tion

if there

we

the rest of the world, and
its explosions and difficulties di¬

pact

are

that

planning service for Cities,

governmental

to

thing

be taken to recapture internal sta¬

do this.

National

world
on

nations

application of import and export been moved about. Newly created
duties, and in general a recogni¬ nations are struggling with the

A Constructive Service
to
As Consultants

that exchange

so

finds this Bretton

Fund's

on

some

worth, the story is going around

-'-y-

Consultants

encouraging

prime mover in the economy of
the free world. It is the
principal
supplier both of products, which
are badly needed
by many other
countries, and of the dollars re¬
quired to pay for them. Every¬

by the United States to link to¬ many sources of possible difficul¬
ties and crises.*
•
gether peace, freedom, and prog¬
tions are still the order of the day,
There always is the
ress.
possibility
Any nation can go to war,
the October issue of the "Monthly
of direct Soviet aggression or of
but no other nation ever has tried
Bank Letter," publication of the
additional;
to
Soviet-inspired border
difficulties and

of

higher income Governments
until they know the
outcome of

still far from attaining

are

demand

clined

is

exist.

on

state of balance

now

the

it

to

So far I have attempted to sum¬
the recent re¬ marize events and conditions for a
definite purpose. This purpose is
port of the International Monetary
not to criticize or to debate
any
Fund, which reveals "a melancholy
of
the
circumstances
fact" that seven years after the
attending
their creation, their
end of the war international pay¬
progress, or

money

knocking at the door of the
markets, because one hears
reports that buyers are not in¬

misconception of

a

Commenting

the rise

,

though politics

from

stems

es was

fundamental

same

something to be done and left be¬
hind as quickly as possible.
Today the United States is the

rectly affect our daily lives.
As you well know, the world
beginning to realize that more
has
been shrinking. The waves of
stringent domestic measures must

what the postwar world would be.

for

to

the

disequilibriums continue
note that at last

market of this kind is not condu¬
expected, but the yield on
cive to the permanent type of buy¬
the 161-day maturity bore a much

sire

dence that

in line with expectations.

was

what the traders want

upon

do with

to

down yet

be

can

the

about

Policy
Foreign Aid

And

about

was

ago.

year

professional

desire

the

tax anticipation

Problems of Foieign

re¬

of the National City Bank of New
York says its basic difficulty

in

r

that
a

down very readily, depend¬

up or

The shorter-term issues continue
to get the bulk
Because there is

bills

attention

considerable

this

ket, there
buyers in

no

support

lias been used to stabilize

Tax Bills

on

anticipation

though there did not seem to be
the same passionate desire around

the prime bank
to 3 V\ % or will it

Thursday, October 9, 1952

.

Continued jrom page 23

There was world trade and currency restric¬
3%? There appears to be consid¬ greater sanity and more calm and tions have been
increasing as a
erable opinion on both sides of cool calculating
done over this result of mounting balance of pay¬
this one, but until the answer is one so that the yield of 1.72% was ments problems,
coming from the
known it does not seem as though much more in line with the 91- price decline in
primary commod¬
the long Governments are going day obligations than was the case ities in the past year, the turn
to do much more than back and when they were made available from a sellers' to a buyers' mar¬
fill with a defensive tone expected before. It seems as though the dif¬ ket, and growing defense expendi¬
to be in evidence.
ferential
between
Everywhere we see evi¬
the
new
tax tures.

in¬

the higher

sure,

be

obligations have moved up

come

happen

rate. Will it go up

continues to keep the Gov¬

money

tax

.

.

been

a

sideline and

disturbance
oL living

of

our

RIGGS

we

have developed our greatest skill.
Past international excursions have

NATIONAL

BANK

of WASHINGTON, D. C.
an

unfortunate

FOUNDED 1836

normal habits

MEMBER

FEDERAL

and domestic -progress—

.

'

RESE^f.f XJTtEM.. FED CRM. pErOSiT.l.NSURANCECOJR.

Volume 176

Number 5158

.

.

The Commercial and Financial Chronicle

.

'

(1343)
national

problems,

recognize it
Growth

expenditures for products that are
Whatever we do has to be de¬
delivered abroad and can not be signed to
meet the long
range
used to satisfy domestic consumer
strategy of an imperialistic and
demand. This situation is aggra¬
revolutionary Communism which
vated
by the unique device of includes a "Cold War" that is as
paying
for
exports
from
the much of an attack on our

you

not.

or

in

whether

Public Awareness

In the last few years there has
been a growing public awareness
of international

issues, but this is United States—not by
imports, but
only the result of the Korea War by sending our goods abroad with
and increasing taxes.
bill of lading and check attached.
And when you are disposed to The
check
complain about the circumstances revenues.
the results, remember the con¬
tributions made by our own na¬
or

tional characteristics.
«In international politics we have

hoped that
some

kind of

some

national law

inter¬

an

legislative device,

or

Second

is

charged

credit

as

Every

to

foreign

only
is

be
home.

can

at

perils

as

strong abroad

Weakness

freedom

a

nation

other

sions that

nations. And
our

any

resources are

delu¬

(Special to The Financial
Chronicle)

SAN

it

FRANCISCO,

here

im¬

Robert M. Home is

everywhere.

No

with Mutual Fund

now

permanent

solutions

all

the

complicated problems of the world.

SAN

pany, Russ

Building.

v>' :5

&

v

-ji '
'

'

not be furthered by a
tendency to
return to more restrictive trade

will have to be restudied and re¬
complicated almost be¬
vised.
belief
or
comprehension.
Third—Unless the beneficiaries
Any real knowledge of their rami¬
is

From other nations

>

ected

standard

a

international

ex-

conduct

affairs

that

is

in

not

pioral
and

always
and

the

that

we

demonstrate

absence

qualities
self-interest

of

and

of

of

self

ap¬

help

be anything but weak,

can

until

this

is

done,

they

have little valid appeal to

sympathy

created

by

will be forthcom¬

ing at the level

willing to take

are

measures

and the corrective steps which
go
to the roots of their
problems, they

nomic

the

intellectual

assume

aid

our

never

not

evident at every political level at
home. In our domestic politics we
do

of

propriate

have

we

of

you

by

or

can

our eco¬

to. the wealth

effort

our

and

saved

self denial.

our

Fourth

Continued

—

aid

can

be

international

self-defeating and reach a point
inter¬ of
diminishing returns. It tends to
national political behavior of other create
dependency and reduces or
nations is no better and
frequently eliminates the pressures and needs
affairs.

The

Is much

worse

domestic

than

and

ours.

that should force progress and ef¬

It is only

recently that we have ficiency. A few of our benefi¬
become seriously concerned about ciaries
already have begun to rec¬

costs

and delays in expected re¬
ognize that there
sults, and this is occurring because its usefulness.
we are beginning to
comprehend
Fifth
The

kind

—

some of the

difficulties and adver¬

sities in international planning.
We are beginning to realize that

despite

be

can

ated

'a

of

everyone desires will

limit to

a

world

not be

Much

nations

are

dollars and in

almost

exclu¬

sively concerned with their
political national
interests
problems

—

and

own

and

little

very

not

create

have

ability to

with All

This should not surprise us,
but it does.

we

We

are
discovering that many
Of ithe solutions proposed in inter¬

others

they
disposition or
for themselves.

create

is

add

can

in

what

little

ours.

factor

mere

few years we can

a

for

shown

any

than money
minds can not

more

the tremendous amounts
is needed.
Men's
of foreign aid we have given and
be modernized quickly with
are
giving, the governments of
other

cre¬

by dollar expenditures in

amount.

their

small

a

With

all

wealth

our

have

we

difficulty in paying for our
lost in new or different or perhaps steadily expanding welfare proj¬
ects at homeland we can not sup¬
worse problems, and that the new
problems inevitably lead to more ply any substantial measure of

national affairs create Or become

demands

some

what

on us.

have

we

to

the

rest

are

learning

is not

it

the

frustrate

our

efforts and add to

our

costs.

White Fleet contributes

j

friendship through
senger

constant

better

to

development of freight and

others.

we

can

meet

no

possible

pas¬

traffic. As both travel and trade increase, United
Friut,

with experienced, able personnel and

own

Sixth—There is

Fundamental Problems and

1INKING
busy ports of North and Middle
America, and
the
Great
understanding

the

of

without

world

undermining our
stability. The danger lies in
Ideas or ideak that are at fault.
It is the pitfalls of practice and weakening ourselves without pro¬
viding any permanent help to
application that tend to
We

the Americas

on

plus
and

development

progress.
*

With Accent

continue to maintain service of the

modern, fast liners, will

highest standard

to both

shipper and traveler.

way

the most press¬

even

Dangers

ing needs of so many other na¬
I suggest that if we are to con¬ tions and already there is evidence
tinue doing what we can to assist that if we try it, we will be sub¬
other nations, we would do well to jected to the same conflicting re¬
consider

problems

certain

and

fundamental

dangers

in

what

tion

from

in

foreign aid is
dollars, it is mostly
our

own
people. Dissatisfactions
antagonisms are the price of
failing to satisfy their needs or

Our

not

resources, are

though they

are.

This creates

double-barreled problem.
One is the depletion of our nat¬
ural resources.
We now import
a

materials

that used to be

in

free supply from domestic sources.
A Presidential long-range study

commission recently

reported

we

are
exhausting our resources so
rapidly that our future security
and economic
growth are seri¬
ously threatened.
We have ex¬
panded our industrial production
capacity about 50% since the end
of the war. The principal program
of every other nation also is in¬
dustrial expansion. This creates a
great and growing machine for
chewing up raw materials.
We
can

become too dependent on the

rest of the world for the

raw

ma¬

terials needed to support our own
tremendous industrial capacity.
The other is the

nancial

inflationary fi¬

and

everyone

'.'fj
•

3liJ

(:

COLOMBIA

•

DOMINICAN REPUBLIC.

•

COSTA RICA

•

EL

SALVADOR

»

GUATEMALA

•

HONDURAS

include

to

treat

and

JAMAICA, B.W.I.

•

NICARAGUA

PANAMA CANAL ZONE

•

alike.

of direct
of

our

military aggression,

one

greatest dangers is that

we

will try to satisfy the national in¬
terests of too many other nations,

without firmly
protecting our

considering

and

own.
After
all
"collective security" and projects
of foreign "welfare" mean easing

the

budgets

additions

to

of

other

the

nations

budget

and

by
tax

burden of the United States.

Eighth

—

We

have

contribution

to

the

Great White Fleet

great and

a

understandable desire to

make

UNITED

progress of the world and to assist

General Offices:
New York 6

does

Chicago 2

not

lead

to

changes

in

political, social, and economic

the
or¬

ganization that has made possible
what

we

are

and

we

have

and does not undermine

doms

or

the

over

its

have;

our

sovereignty
own

free¬

of

FRUIT

COMPANY

a

and

peace

and cooperate with other nations.
But we must be careful that this

impact of large domestic United States




CUBA

Sevenths-Aside from the threat

Without limit although we proceed

raw

'

■

BRITISH HONDURAS

and

delivered in goods produced from
wants
the raw material resources of this

as

other

discrimina¬
nations as
we
of

our

First—While
measured

country.

and claims

have from the pressure groups of

do.

We

quests

the

affairs.

New Orleans 4_.

80 Federal

St., Boston 10
Pier 3, North River

_111

Washington St.

1__321 St. Charles St.

—

s

FRANCISCO, Calif.—

yond

fications will easily convince
of this.

Staff

Palmer Bescherer has been
added
to the staff of Waldron
and Com¬

But, unfortunately, there are no practices. If we are to avoid de¬
Simple, easy, positive, and. com¬ feating our world objectives, our
plete answers. Every element of attitude toward volume imports
them

to

(Special to The Financial
Chronicle)

a

for

connected

Associates, 127

Waldron Adds

maintaining the moral, eco¬
inex¬ nomic, and military
strength which

Nations, self-supporting basis. All of our
plan, or programs have been directed
an appropriation of dollars would toward
helping other nations be¬
Quickly and automatically produce come self-sufficient and this can
Agreement,

an

'

Calif.^—

Montgomery Street.

as

prefer to meet its balance haustible are dangerous to the is so vital to us and to
everyone
of payments problems with
trade, security of ourselves and of every¬ else. May we have the wisdom
not aid. We have invested
one else.
and the courage to do it!
many
billions and years of hard work in
attempting to put our Allies on a
would

With Mutual Fund Assoc*

action of the United

Treaty,

a

as

military threat.
amount of words, diplomatic ef¬
Without protecting the elements
forts, or appropriations for loans
of our own
strength, we can not or gifts can create the same confi¬
tax provide any real or
lasting help dence and the same firm support
to

—

it is

A strong economic foundation is
essential to any successful defense
program
and the United
States

31

iilOOl Fourth

San Francisco 7

i

Philadelphia 6

Pier 9, North Wharves

St.

The Commercial and Financial Chronicle

32

(1344)

\ '

well

The

omists
reached

'

•

'

#•

by-product of expansion,
same time he had to

at the

and

provide financial resources so that
the expansion was rapid enough

is

It

of us—

for all

necessary

particularly bankers—to understand with as much clarity as
the simple economic facts

can

we

the

When

formed constantly new

these
blessed
with a democratic banking system
that is unmatched anywhere in
the world.
Our dual structure,
which includes large and small
privately owned local banks and
a countrywide
independent Federal Reserve System, has enabled
preceded

who

bankers

States

to build a sound

us

us,

now

are

national econ-

The continued strength of
this economy is absolutely neces-

omy.

sary

to our political

health.

Zf "Zn

that'we engaWcT'in'wars

the'"

the

nineteenth

Dnf

s\r*

small

during
and early twentieth
tirofc

compared

inexpensive

and

wnrld

<f

left

nrettv

much

alon^to
nal

work out our own internroblems
Our
international

relatkms were much simpler

much

ject to possible disaster. The truth
the matter is that we spent

of

comparatively little time thinking
about the rest of the world.

of

balance

The

power'which

hgw

bav<f, not been willing to absorb
a11 t"® new dert' a complacency
toward resumption of bank financin£ 1S developing.

isolation

our

possible

was

creation
of the
eigtheenth and nineteenth cenJuries.
Its
main-architect, was
Great Britain, and its two main
the

potential

of

ther British

werp

wpanon<?

imperfect;

course

and

navv

our

battle against

communities,

home.

speak during this past

return to plague us later.

danger signal. It must warn
the

bjm that
as

of

is

time

ripe for

the

meet

that

of

cost

have gone SQUarely and honestly.
outbreak in Korea
,
T
f
,

the

•American people. If through
laziness and indifference or fear

role

our

nation's role in the

tuJt

we Succumb to "governmentitis,"
we sha11 have denied an essential

ctrnn«iv

<=p

part of the trust that the Ameri"
can Pe°Ple have Placed in us. The
denial of this trust will bring this
natl?n to ruin faster than a11 the
armies of communism.
To fulfil this trust' the banker

nnp

thP

thP npnnlp

must be alert He must be well

as

'

*

Cost

xhe Budgetary

noHnnoi

mun

deficit

financing,

banks is

an

the long run can lead

weakening of
nnmirfairahlv

how

ture-

efforts tells us unmistakably how

only to the

th

f nnfnt w^rp

nnr

see

So far

c>ur

nPQ«

spective. Had

tection,

we

not had this pro-

we

might

never

have been

bow jong we can

nf

fitrnl fitnotinn

maintain the cost

reached

have

We

of our present military effort and

the

stage

..

,

ff

toward^

ts

has

progress

made

versed in knowledge of the economic and financial complications
arising ^onri our neWrole in world
affairs- Equally as important, he

the revised

Bond

must be P^pared to impart that-

that end

been

-

Sa^dngs

theto others in his comprogress must-be encouraged
mumty- The everyday process of

ther

.

principle must be a part of
the banker's creed, especially to-

expenditures are now, J^ptqpH

.

g£

monetary struc-

our

-

,

the

This

rJLlti?ln fourths
our £ederal

throiigh

unwise course that in

bv au of

y a

u.

a

oe enco age

*

...

banbing.: activity

- affords* many
opportunities to perform this im-

lf

xt woald be indeed unfortunate
to £° ^ong with the tide and

willingness on the part of individuals to give up some of-the
g°ods

and

pleasures

ad°Pt an attitude of complacency,

of present-

?u ? 5 blinded by ignorance of
the facts of economic life. On the*
contrary, the banker must buck

day livin^' in return for their en~
joyment at some later date. The
postponement of spending that
accompanies

is

saving

tbe tide of complacency and must
fnarpen his, vision on the important economic- questions of the

small;

a

price for a nation to pay for the
purchase of its security and very

.

cmy.

existence.
But

we

in

bankers, your interests

out

or

of

prisis such

ments

on

present

series

of

advertise¬

business insurance

we

say,

appreciate the cooperation of

who work with

in

on

the nation's most experienced companies

clients.

estate

our career

you

underwriters

problems of

our

mutual

the cost

business purposes.

At

every

specially

to

set "up

trained

Security Plans'
sultation

with

are

you,

office,

con¬

attorney,

part in

as

well

our
.

.

own
.

by

calling us in when the credit needs of

'Business

available for
your

investment program

men

a

or

the trust officer of your bank."

their

depositors

loans

than

the

involve
bank

longer

wishes

to

term

grant

alone. " We welcome such collaboration.

must

in

assuming

course,




Mutual

Life Insurance

Company Chartered in America—1835

of

examine

carefully; We
that they are

obligations
confident

be
on

throughout the world; they

sound

policies and

-

Inflation is not

a partisan politiissue.- Rather it is an issue
which lies at the heart of our
by the people without close scru- defense against tyranny and affects
tiny, nor used as an excuse for the health of our nation. Although
reckless spending. Then, after we some groups seem to benefit from

have

pro-

determined

what

constitute

legitimate and essential needs
national

security, we must
lightly the problem of
meeting their cost.
our

treat

too many of

have been prone to

disease
First

role

a

must

we

In recent years,

Life Insurance Company of Boston

a

grams

of

MUTUAL

as

be willing to bear
of the obligations we have

based

not

NEW ENGLAND

we,

^

.

cal

should neither be accepted blindly

the

The

whether

issue

leadership in the world of today?
Of

Many banks play

contracts for special

financing

shall

people,

those

in providing policy

to

deficit whatsoever? Is not:

real

accepted
the

part, "New England Mutual is one of

these. Is not the

as

•

kn°w what causes inflation,
tor example; and we know that
"nP°Pular political decisions must
be made in order to stop it; We
know^ that, the banks themselves,
as demonstrated under the Voluntary Credit Restraint Program,can do a concrete, constructive job
J311 the ^monetary front. We also
know that banking cannot do the
whole job alone, and that industry a^d agriculture, labor and
capital, and every other group in
this country must have the facts
so *bat realistic political decisions
can be made. v
; -

our-

through the banks, the avoidance
the

OUR

ask

deficits, financed
banking system,

alternative

best

own

of any

In

of the

even

should be tolerated at all in times

often parallel our
We

should

whether

selves

As

.

,

' "

mni? J nl,t thl aHpI*
defense of the free world. During tha Jce £us* sf?e5
this time, much emphasis has been
tiSj.
J
bankers' we are caUed uj?on placed on the need for avoiding *hr°agb }£* tbi"pewLalwr
inflation.
-One
of
the
central a^f/s
npTuf tLT.th
fo/th^ro^nf th^fieht^I^both themes has been that the defense df^S£
15
^ tb.c.
°fJ^att ftidln. b°JL program must not be financed ,lbbn^hem to nurchase the debt
capacities, wres a
history
through the banking system. Down direfflv .ind through their savings
courts of democratic nisto y
through the years, bankers have
few • generations have'been fried held firmly to the principle that fr^t^
that'the Treasurv ha^dibefore,
reoriented

called upon to play our Partlnthe
fl^ht to Preserve a civilized, dignified
way of life, in the worldAs

of the*

truthfully regarding the life we
share in common with the rest 01;

responsibility in worid affairs

+q

since

by

us

nation, having accepted a role

a

year

banker as a symbol of trust. Part
ot the trust you and I hold is the;
® Jj=a
sp^kyclearly-- and^

Every banker must understand

More than two years

now

are

we

,by sapat

strength

economic

its

a'wffn America ^ d^fddit^ t^n' t?nn mu^
EE weniierneaave u^hftimTm dous drain the human and P1^" ifhiiX nrtlih inwSaS"
prob.Ims in better perworked

be

it is not forthcoming from sources
part of the trouble with leaving
outside the banking system, there serious economic decisions to govis no alternative but to finance ernment officials is that statesthrough the banks.
manship is too often lacking. Frebankers must not subscribe quently a decision will be basedany such complacency. We must solely on political considerations.not accept the thesis that there is When such things happen, we cann0 aiternative. Rather, we should
certainly blame ourselves if we do;
rec0gnize a move toward financ- not fight with all candor and£
irig through the banking system as vigor for what we know to bef
one 0f the
clearest indications of right, even though it be unpopufiscal weakness in
our
govern- lar. It is for this reason that we

of action, or our this

£ sane course

ping

Americans and members of

there

S^taTybSaS,Vi^eit-

must

develops slowly, and history shows
the number of times it has defied
diagnosis until it was too late,
"Governmentitis" is with us, and

,

made

time

the

action

pears to be merely a general Mr. Jefferson's statement, "That
acceptance of the idea that since government governs best that govthe Treasury needs the money and erns least."

miist plead

tyranny in the long run

in orflcr«

cont/in0Hv

of Amsound

fantasy

nation will lose the

^®tsm0U/t0"0^duifeli|eUarely

^

the

discard

financial thinking and
for

our

nath^fto^tos'le^lt'Tf
fhP

aooLnfaaaiisfone

of

fnr.ee ™e" «* ■g°°radousfirannTes

ixrAvA

•

delay

to

dies to be spanned in a matter of planes, tanks, bombs, and the like
hours by aircraft that can move short of taking material from nafaster than sound. European na- ture and productive time from
tions which were thought to be men and women. The defense of
eternally powerful or externally this nation will come only from
weak have shifted positions, ana an expenditure of time, effort, and
some have even gone out; of resources. All of these must be
existence. The formerly £r^a* paid for.
creditors have now become debtYou and I, as
bankers, must ment. If the only way that our must know the facts of our naors, and the former debtors have meet this situation in terms of nation can afford to pay for part tional and international lives. We'
become creditors. So the story realistic facts and action,, and not of the cost of the defense program must know them, and we must
goes. Little of the old world is
in terms of fantasy and wishful is through the creation of new lead others to know them and act
still with us.
•
_
thinking. We cannot afford the money by the process of selling upon them,
History has now reached the
luxury of'fantasy, because we sit its debt to the banks, we must
n
f u
„
point where these United _ States at the pumping station of our na- admit that there is an element of
a ffer 1 MOVernmentitis'
can no-longer be isolated; pdee , tion's economic lifeblood. We must weakness in our make-up that will
Some of you have heard me

of financing America's
initial expansion was difficult, but
it was facilitated by this nation's
The job

and

corrective

This complacency does not stem it must be understood and recogaffairs, from any particular group, either nized now. We must ever be mindsmoke of political and in or out of government. It ap- ful of the
enduring wisdom of

tory in order to point out the com- partisan battle is gone, we shall
plete transformation of the old still be faced with the undeniable
world. The balance under which fact that we cannot get something
when these pictures seemed som- we
once
lived has now been for nothing. If we want the deber and terrifying; yet courage totally destroyed. The oceans we fense of our
people and our instiwas sufficient to produce the heri0nce
thought were impregnable
tutions, we must pay for it. There
tage that you and I now serve.
barriers have become small pud- is no way to get battleships,

United

when

world

in

role

modern

historically unusual pictures,
There
must
have
been
times

Through the intellectual labor
imaginative insight of the

problem

real danger. There

poses a

the*

becomes much

budget under our

of the national

and

and the

This

It

out.

for defense

and

Complete Transformation
I have recalled this bit of his-

The kaleidoscope

prising people.
of events

Complacency Developing,

limit: that either gov-

way

taking

less painful to temporize with a

-nff

no

rnmnlo„onm

now

and

is a great temptation to follow the taken. The symptom centers in a
must decline, easy way of financing the deficit general loss of individual initiaor the
American people must be through the banking system, tive and in dependence upon the
willing to get along with fewer Already there have been indica- omnipotent wisdom of a bureau
goods and services.
tions that, since other investors 0r an elected official. This disease

able to mature our political experiment; and the task of building
our fantastically successful economy on the basis of free cornpetitive enterprise would have
been much more difficult.

Indsof an'ene/getictin'd'enter-

easy

leads

some one else. It

complacency

other purposes

and

*

*

<

our

have

we

ernment expenditures

American Banking
growing economy. The banker had
to minimize those losses that are

that

feel

to

sizable deficit financing.

long-run

effects. Some well informed econ-

Challenge to

to resort once more to

necessary

as

without suffering severe

often the

Thursday, October 9, 1952

where the Treasury has found it borne by

government expenditures, as
our
standard of living,

other

first page

Continued from,

■

,:;

m

which

might

"governmentitis."
manifests

itself

succumb to

be

This

when

us
a

called
disease

people get

it in the short run, in the long run
we

all lose. An American inflation

becomes a world problem which
strikes fear to the hearts of. free
men

and gives joy to the spirits

of those who seek
It

may

seem

our

destruction,

strange

to

some

that I mention the problem of inflation today, when readjustments

have taken place in

the idea that the burden should be" industries

during

many

the

past

of

our

year,

*

tvm

Volume 176

Number 5158

.

.

The Commercial and Financial Chronicle

.

end rumblings have appeared con-

the

cerning the danger of

International

economic

an

iense program
setback after the defense

iwill

have

to

that

War

afford

of

mistakes

for the

war

proceeded, and the heritage

as we

debt

of that

weighs heavily

now

shoulders.

on our

Today, the program of defense
of the free

much

world

is

absorbing

Bank

the

Meeting in that ancient City of

culture, and
any similar
added a
colorful background to the discussions which took place,
whose arts,

customs

far'antedate

site

our

on

continent,

addition

In

the

to

representa-

tives from the members of the re-

proportion of our
national output than was absorbed

spective organizations, the meet-

in World War II. We

living in

ing brought together many repre-

luxury, and spending
recklessly, both as individuals and

sentatives from the banks in our

r

i

the

lap

of

nation. To say that we cannot

a

as

are

afford to pay the bill will merely
create the foundation for another

of

wave

inflationary pressure—if

not in this

at

the next year, then

or

later date.

a

That

is

There

feel

that

the

of

out

arise

our

three

were

past

presidents of the American Bankers
Association present: Messrs.

Hemingway, and Dodge.
Each of these gentlemen has disHanes,

tinguished himself,
I

why

banker must know what financial

implications

country interested in international

field

the

in

in

nance

know,

you

as

international

of

recent

We

years

are

is

financing
„

If

through
.

the

the

.

.

confusion

was

in

banking

friL ^on/of thf wnrM

t„;,.

we

economic

our

cloth. We have

an-

cient statement that "the power to
tax
is
the
power
to
destroy."

Many

Americans

learned

have

that

the

not

have

only

money

the

from

comes

labor of the

These

(2)

confidence

we

another.

productive

people of this

gain

We

(1)

yet

coun-

for

respect

We

(3)

lead

discussions

in the

can

actions

to

come

understanding

of

of

Co.;

Co.,

R. M. Michaud Joins

x.

,

Model, Roland, Stone

aa °*~rmg, ^1j*

.

•

and°

mat,Urity.

120

William Michaud, formerly with

Brundage, Story & Rose, bas
joined the firms Research Staff,

ia

The offer-

the bonds

at Associated
competitiveinsale
on Oct. 7.
the
offering

■

bers of the New York Stock Exchange, announced that Ralph

David N. Richardson Ca

o

cou

Stone,

Broadway, New York City, mem-

~

.

Roland

Model,.

®
Illinois Company; De Haven &
^M20,000 City of Phimdelphia, Townsend, Crouter & Bodine;
* o^ri,0Vs
PurP°se
R°bert Winthrop & Co.;
bonds, due Jan. 1, 1954Also: The First National Bank
' inclusive.
Ha sey, Stuart & 0f Memphis; Moore, Leonard &
?c'rfQnCl
lladelphia Na- Lynch; Fahey, Clark & Co.; Wurts,
tl0nal faak are associate man~ Dulles & Co.; Stein Bros. & Boyce;
£,0mmeroce Trust Company;
fr™e1
sa:p:tn £ u™as £ ^ComTpaPJ; As?^ei3'

are—

Harris
Trust and Savin*s Banki
c. J. Devine &

Co

H

°M

Company

DAVENPORT, Iowa-David N.

Gregory&Son

tog group & Co., Incorporated,
Richardson

Byteby

(IncorDOTatedl

inco?po%tedfMuUaney,7Weils &
X! Third National B^n^ NasTiCompany

John C

Lege &

withoffices in the Central Office

Building, has been formed to con-

Com-

ttoue the investment business of

Richardson & Company. Officers
of the new firm are David N.
Blalr'Rollms & Co-Incorporated; Cook & Co.; Anderson & Strud- Richardson, President and Treas-.Co.; The First Na-

Bank

of

Portland,

Ore ;

ville

j!'b'.

Tenn

•

Seasoneood & Maver*

Hanauer

&

f Newhlrd,

Co

**

,

r»

vr

i

*

n

„ror.

.

nmn

to

common

a

the

merit international confidence,

for

the

when

collector

tax

when the forces of in-

or

flation take hold.

Trooping to the Federal Treasury
_

..

Because

,

,

doesnt

it

.

be

to

seem

costing anything, people — singly
and in groups—-have been trooplpg
0 * ® Federal Treasury for
gifts and loans which will never
repaid.

looked

Some politicians

have

this procedure

upon

as

a

perfectly

legitimate way of getting votes; and we have gone merrily on, assuming that the next
person will pay

truth
cost

of

the

the bill, when the

matter

back

comes

to

the

that

is

at

us

rate

a

compounded
by
the
weakened
value of our money. Under no con-

cept

of

moral

the

accept

values

must

we

that the defense

idea

merely an excuse for
running to the Treasury.
program

It

is

is

bad

live

to

in

fantasy
world at any time, but it is downright criminal to take fiction for
fact when

the

nomic

fairy

This

beyond

particular

story must

before

now

a

freedom, itself hangs in

balance.

the

institutions

we

are

given

be

because

defense,

When

hard-headed

assist-

aroused public opinion,

True, the issues

are

complicated;

but

every banker and this Association must find ways of speaking

the simple truth

eign enemies

directly. Our for-

are

not going to call

off their attacks because
of

errors

judgment.

that

sure

they

will

delighted to capitalize

we

We
be

only

be

too

on our mis-

es*

small

of

one

us,

no

how

matter

large the town in which

or

live,

we

can

afford to isolate his

thinking and his action from the
world

scene.

ancestors

total

Bank;
gratifying for us today
££le splendid progress that

and
£o

see

bas

Those of

who

problem

banking
disregarded
the

of

our

domestic

our

in

made

the

its operation.
-

few

of

years

;

tbe Association did not

jn

the

favor

creation

of

separate

a

Monetary Fund, but recommended
that certain
be

of its features should

incorporated into the provisions
World

£or

tbe

the

difficulties

Bank.

Since

faced

by

then,
of

some

the nations in world currency re-

have

lationships
effectiveness

impaired

of the

the

operations of

the Fund, but it is hoped that the

principles

of

international

operation will become
established
in my

in

the

opinion,

co-

more

firmly

to

come,

years

could sit

no one

and listen to the discussions which

place

feeling

that

in

that

have

as

these

lighted

freedom. We
and

without

faces

a

be

must

a
rising tide of interrelationships. It may be

through

we

Mexico

our

to

national

a

organizations

facing

are

bankers

we

a new era,

must

prepare

My plea today is £or each of
£o

do

better

a

job

in

our

us

local

communities. In each community,
£be banker is the symbol of in-

Many

times

has proved itself

this

assume

has

to

be

active

and

sometimes

in

resulted

and dangerous nature. We can

longer afford them, and

tion
fate.
ance

will

have

exactly the

same

History will not accept ignoras

an

excuse

During the first

for failure.
two

weeks

month,

your

it was my privilege,
representative, to attend

seventh

annual

meetings




of

we

right to exchange

Since 1933,

abrogated the people's

paper money

value of the dollar has
The incentive to save

of

so.

for gold, the

constantly descended.
is gone

...

expansion

production facilities is hampered. Kena case in point. We make

uncertainties

The

the

industrial
ahead in

This is the type of

product that keeps America far

technological advancement.

Investors

go

hand-in-hand

return

which

to

the

purse

strings. We must

Gold Coin Standard*

gives the people the right to

much to the realization of American enter-

.

.

by redeeming their

.

express

lack of confidence in government policy,

if

currency

gold.

When this control

has

been

restored

to

the people—wasteful government spending
will be stopped—and American
which Kennametal Inc. is

have always before contributed

with

public must again be given control of

for

other vital industries.

that

government's

hard cemented carbide tool materials which

triple production in metal-cutting and

handicapped

unsound money.

necessary,

can

are

high taxes, and hampered by all the

nametal Inc. is

will

be able to

a

industry, of

key enterprise,

plan and produce with the

vitality that exists only in

a

free

economy.

Number 5 of

a

Series

KENNAMETAL 9m.

no

must
in

again.
-pbe American

confronted

banking family is
with

one

greatest challenges that
eration can place upon
We

when the government

to it that they do not happen

now

of

always been

by

eco-

disregard the problems
by our international posi-

see

purchasing value inevitably becomes less

and less. It has

prise. Today, however, they

to

nomic stupidities of a momentous

who

the

community responsibility

great disservice. Those of

us

from

the half-educated,

or

heirs

created

its

inarticulate, and

economy did themselves and their
a

is

symbol

sometimes the active participation
in economic affairs has fallen to

demagogues
The failure

Whentaken
the power the
to control
hands of
public people,
money

torch of

new

ourselves to meet the issues,

tegrity.

Not

1945, the Asso-

establishment of the World

make

can

their

under discussion at

cjati0n gave its full support to the

turned

the

for

proposals

were

Bretton Woods in

without

an

the

creati0n

took

of

they embody cooperation

between nations,

weakened

of

power

eco-

World

the

as

Monetary Fund have

f11
tke Potentialities for helping to
lay the basis for permanent peace

Again the politicians will find it
impossible
to
break
this
myth
ance

such

Bank and the

—

—

one

paid

arrives

the

&

Cook

each

thing, it is not free; it is simply

try. If the government gives some-

as

A

mi

,,

other, our respective points of
view, and our common problems,

plane, or
level, upon which our actions must
be based if we are to maintain and

this

,

.

not

yet learned the truth of the

a

Mericka

J.

&

fifty-four free nations of the world stone & Webster Securities Cort
m
qinano
vw prmi
*
can sit down and discuss their poration; Goldman Sachs & Co.; wlck;
' B' Vlck & Company- "rer, Loren T Sloane, Vice-Pre.jproblems, great good can come out Salomon Bros. & Hutzler; R. W. Walter Stokes & Co.; A. E. Masten dent; and A. Fred Berger, becrefit of their deliberations:
Pressprich
&
Co.;
Mercantile & Company; Watling, Lerchen & tary.
in

any

cut the costs of government to

up

Com
Company;

Coffin, Betz

criterion,
have not yet learned how to

our

be

Trust

and

Quinlan:

Wm.

Offered to Investors

tional

.

.

of tongues

present world is

me
me

&

Philadelphia Issue

was awarded

even
even

fa*«££?TvJsto
accord, it
to

Iwavs
always

Bank

Inc.;
Incorporated; Aubrey G. Lanston Glover & MacGregor, Inc.; Magnus
&
Co.
Incorporated;
Schmidt, &
Company;
Sterne,
Agee
&
Poole & Co.; Dick & Merle-Smith;
Leach; Harrison & Co.; and J.
F. S. Smithers & Co.; Bache & Co.; Ross & Co.
Fidelity Union Trust Company,
Newark, N. J.; City National Bank
& Trust Co., Kansas City, Mo.;
Dolphin & Co.; Bramhall, Barbour
group headed by The National & Co. Inc.; William Blair & ComBank
?^ew
pany; G. H. Walker & Co.; The

proud of their accomplishments

Is'why'he
JenZ/to
the' iSsfons'
why he shoiZ'undemtend
should understand ^he
the 1listening
to the
discussions,
examT1
example, rfTrSSnto^eficH
of a return to deficit

fi-

Shelby Cullom Davis & Co.;

•

Provident Savings Bank & Trust
1.
Wachovia
Company
Cincinnati

Of $28,220,000 Bonds

_

banking.

Co

Recon-

for

Mexico,

a

smaller

of

Governors

history which reflects our devo- Trust Company; Eastman, Dillon
tion; we have the confidence of & Co.; Hornblower & Weeks; First
of this
this great
great land;
land: and
and of
of Miehitran r!nrnnrntinn« Wppflpn
struction and
Development and the
the DeODle
people of
Michigan Corporation; Weeden
the International Monetary Fund I know we possess the courage to & Co.
Incorporated; Barr Brothers
in the City of Mexico. For me it do the job. We shall do our part &
Co.; Harris, Hall & Company
and we shall not fail.
was a thrilling experience.
(Incorporated); Roosevelt & Cross

II. We told ourselves

could not pay

we

My

peak.

cannot

we

the

compound

World

its

reached
that

is

answer

of

Boards

33

(1345)

have

the

proper

of

the

any

geri-

its

sons,

faith

as

foundation for action; we have

a

a

gold roin on

Latrobe, 1 enn

sss^ftsSSj-gis
-etjssjz

Latrdbe', Pa,
WORLD'S LARGEST Independent

Manufacturer Whose Facilities

are

Devoted

Exclusively to Processing and Application of CEMENTED CARBIDES

I

34

The Commercial and Financial Chronicle

(1346)

.

.

.

Thursday, October 9, 19521

reflects other factors than
earnings and dividend

price

the current

Public

figures. The company is well along
with a huge construction program,

Utility Securities

and

big

a

to

into

go

The

of this year.

around the end

with
Sante Fe and Southern Railway
capacity of 200,000 KW (presum¬
The market for railroad stocks this would mean common share
claims this would be equivalent ably under normal water condi¬
to $1.28, making the value of the tions) will almost equal the com¬ continues
to
ignore good news, earnings of $15.26 for the year.
$1.10 stubs about $1.60. These esti¬ bined capacity of the present 11 including the steady trend toward Actually there is every reason to
more
mates are, of course, merely con¬ generating plants.
liberal
dividend
policies. expect that there will be some
The dam is a concrete, true- The most recent news in this di¬ further year-to-year improvement
jectural.
In making the Washington arch structure stretching 600 feet rection was the declaration of a in earnings over the balance of
Water Power distribution in across the gorge and rising 208 feet $1.25 extra by directors of Santa the year. Thus, it is entirely pos¬
August,
American arranged
to above bed-rock. Although not the Fe, bringing payments this year sible that as much as $17.00 to
have the number of outstanding largest in the area, Cabinet Gorge to a new all time record high. The $18.00 a share may be realized in
shares
of
Washington
reduced Dam has presented problems as regular quarterly rate on this 1952, the best showing since the
about 10% to coincide with the difficult as dams many times its stock is $1.25. Santa Fe common, wartime peak of $23.41 in 1942:

Light—Washington Water Power

American Power &

plant is
operation

hydro

new

scheduled

By OWEN ELY

Cabinet

new

plant

Gorge

-

The stock of Washington Water
Co.

Power

by

distributed

was

American Power & Light Co. to
stockholders

own

on

its

Aug. 21—the

distribution made by
American recently

last "major

that company.
filed

with

SEC

the

dissolution

a

plan, under which it proposes to
distribute 1/43 share of Portland
Gas &

Coke

and

each share of its
is

in cash to
AP is

950

own

stock.

selling around V-k and the

now

would

distribution

the

reduce

value to $1.10, based on

the cur¬

rent

quotations for Portland
around 19V4.
After this distribu¬

tion the company will
net

still retain

plus

indeterminate ahiount of
It also has
contingent assets with a cur¬
value of about $1,500,000—

an

contingent liabilities.
some

rent

ecrowed shares of former subsidi¬

aries

not

holders,

claimed

yet

which

and

available

will

general

as

stock¬

by

become

assets

after
out.

statutory time limits run
Judging by experience in other
cases of this sort, possibly half of
value

of

these

shares

may

eventually

become available, or
about 32^ a share. Assuming that

the $3,000,000

is

made

American

of

distribution

the
on

shares,
could

so

size. One of the first

be

to

share-for-share basis.

a

This, of course, has altered Wash¬
ington's share earnings and divi¬
dend figures. Since the financial
services have been slow to report
,

quick assets of about $3,600,-

000, against which there are defi¬
nite liabilities of about $600,000,

the

number
that

not

of net quick assets

reduced

by

tax

or

figures,

adjusted
led to

some

this

may

have

confusion in the minds

of investors, who are

perhaps

re¬

lating old earnings and dividends
to the

current price of the stock.

Thus, the share earnings of $1.45
12 months ended

for the

June 30

would be increased to about $1.59

the

on

the

number of shares, and

new

dividend

of

American would

$1.20

paid

(if paid to

to

pres¬

ent

divert
the

from

spring torrents
Other

selling to yield 4.9% and would

reflect

other

a

price-earnings ratio of 17.

However,

the

present

market

and

last April.
railway

was won

rushed

crews

from

be

the

highway

relocations in the
completion of
the 230,000-volt transmission line
site

the

and

plant

having

high equity ratio

the end of

at

1950—

which has permitted financing the

plant first by bank loans and
by sale of $30 million First

Mortgage

Bonds./ Further

debt

financing

is

1953.

in

expected

Thus, the earnings leverage of the
common stock has been improved
by

reduction

of

high

the

equity

ratio.
Due to

has

with

the

for

applications

and
but

is

were

the

in

fall

in

filed
Idaho

of

1950,

hearings have been held,

some

completion

been postponed

the

of

has

case

several times.

It

expected that hearings will be

completed late in 1952.
Based

Special

$2
a

on

share, with

a

share when
on

the

additional $1

an

accelerated amorti¬

hydro plant is

new

being fully accrued

(probably

in

the year 1954). While the manage¬

has made

ment
cast

regular list of banking services includes title,

no

definite fore¬

that dividend policy
reasonably generous, opin¬
in informed quarters is that
except

individuals and businessmen.

some

alertness and

May

we

handling unusual assignments.

be of help to

you

will

This may not be the initial
include

a

substantial

very

credit for interest

LAND TITLE
COMPANY

would

on

construction

income
a

is, after all,
bookkeeping item and

mean

the

the

over

too

not

The

way.

been
011

Broad and Chestnut

a

yield of

over

price.

present

5.5%

Moreover,

are

and

years

paying handsome

divi¬
costs

form

increased

large part of the dividend

may

"tax-exempt"—i.e., not subject

to current income taxes

—

which

of

lower

to

face

company

two

Department

will

dieselization

pleted
its

the

has

to

yards

energies

nals.

may

ities

moment
and

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

in

.

the

this

area—though

local

at the

political sentiment

temper

favorable factors.

of Congress are

.

feature

expires

on

Oct.

.

17.

Win. J. Becker With

Hulburd, Warren Co.

com¬

now

turned

and

termi¬

being

now

controlled
and

funds

year,

Alabama

by

Great.

will

others

are

second

a

undertaken

is

the

South¬

follow

as

William Becker

available from earnings.

Thus, it may be expected that the
operating ratio will continue on

(Special to The Financial Chronicle)

month

gross

$23,U14,0u0,
000

over

income

revenues

an

a

CHICAGO,

at

Federal

taxes

Despite

were up
$1,835,000.
this heavier bite by the

Internal Revenue Department ap¬

proximately 90%
was

gain

the

of

carried

1951. The

answer

William

J.

Hulburd, Warren & Chandler, 208

were

earlier.

—

Becker has become associated with

the

increase of $1,247,-

year

111.

was

in

through to

souiii

of

the

jL,a

members

street,

&ane

New

York

and

Midwest

Stock Exchanges. Mr. Becker was

formerly

in

the

trading

depart¬

ment of the First Securities Com¬

of Chicago and prior thereto

pany
was

with

L.

F.

Rothschild

&

Co;

lies in the trend

of

operating costs. The transpor¬
was cut by 3.7 points
and the
overall operating
ratio
by more than 10 points, to 65.7%.
tation ratio

Relatively the showing for the
eight months was not so

full

favorable

as

the

for

month

August by itself. However, it

Gross revenues in¬
$6,572,000 to $176,850,000.

good.

Federal

income

$6,395,000,
tent

of
was

of

or

the

taxes

were

up

nearly the full

ex¬

revenue

rise.

Never¬

con¬

continue

1,

date
is Oct. 20 and the conversion

The first major project was

completed last

ern

largely

road

vicissitudes-

■

Dec.

of

as

redemption

operating elfi-

$20,893,000 compared with $16,926,000 a year. earlier. The most
recurring droughts, and the impressive part of this perform¬
strained relations between private ance was that the actual dollar
utilities and public power in the outlay for transportation expenses
was lower this year than last and
Northwest. Barring political
this all important ratio was cut
changes, Bonneville and the In¬ more than two
points, to 33.5%.
that the

The

called

ciency. Moreover, the full benefits
have not even yet been realized.

creased

into play,

redemption

1952.

„

Line pre¬

been

have

the

in

Air

had

the properties and

on

equipment in recent

now

dends

very

comes

their hostility toward private util¬

Fifth and Chestnut

for

stock

distant

that

sums

Seaboard

ferred

stock

roads that has been

huge

spent

new

ERRATUM: Two weeks ago
this column it was stated

that

doing exceptionally well from the
point of view of operations and
earnings has been Southern Rail¬

ated amortization

be

in

year-

railroad

in

of the

One

beginning in 1954, when acceler¬

terior

PHILADELPHIA




1952

might make the stock interesting theless, more than 60% of the gain
for those investors in high tax in gross was carried through to
net operating income. Net operat¬
brackets,
It must not be forgotten, how¬ ing income for the period was

?

TRUST

uptrend

prices

cash.

ever,

AND

the

$1,115,000 greater than in August,

tinue

BANK

before

the dividend rate will be $1.50 per

a

resourcefulness in

management
consideration'

on

share.

at

our

the
into

dividend

the

operating income. Net operat¬
ing
income
of $3,282,000
was

merely

special services, you'll find

important elements—notably

the

net

Assuming tnat a future
$1.50 rate is not too hopeful, this

our

for

ion

not

Among

that

end, many of the leading railroad
analysts look for a resumption of

revenues

—which
as

looked

will be

rate, however, since 1951 earnings

banking facilities for banks

Granting

must still take

and

zation

well

from

normal hydro condi¬
the downtrend.
operation of the new
Southern's August showing
plant, Wall Street estimates of
future earnings power are around particularly impressive. For

tions

as

notably strong
to the direc¬

the August

company

increase

an

Washington. and

Commissions

and commercial

prior

meeting, fell off

Aside

With

rising costs, the

applied

rates. The

trust

been

future.

Spokane.

to

a very

60%

—over

later

Our

tors'

Washington has been fortunate
in

new

or

had

immediately

working season, between high- balance of the year, and well into
water periods
of spring floods, 1953, still appear quite favorable.
Under
the
was allowed for completion of the
circumstances,
and
with
more
good dividend news
dam, but this race against the

its

price around 27 would

dam

which

the news. the bond maturities from now
picture through 1956 such earnings would
earnings reports that certainly appear to justify some
have
been
tremendous
blast
ripped
60,000
coming out in the past hopes of more liberal dividend
cubic
yards of rock from the few weeks have generally been policies over the reasonably near
gorge's left wall and dumped it highly encouraging. The rebound future. In any event, even the
into the narrow canyon to create from the influences of the steel present $4.00 annual rate affords
a
cofferdam, which turned the strike was far more rapid than a return of better than 6% at
river into two 1,050-foot-long di¬ had been anticipaetd in most quar¬ recent market levels.
version tunnels.
Only one short ters. Moreover, prospects over the
area

powerhouse would be built.
This was accomplished
when a

reservoir

recent

which the

in

was

River

Fork

and

public holders of the stock)
automatically
increased
to
$1.32. On this basis, the stock at
be

problems

Clark

the

The

dollar

increase

in

mon.

If

net

the

operating

road

did

no

better

than match the 1951 performance

in

the'

last

five

resource*,

for

more

tJian

rectlv opposite

a

century

di-

U.S.Treasury.

Inquiries cordially invited.

of

$3,967,income is
equivalent to a little over $3.00
a share on the outstanding com¬
000

Foremost in

experience, facilities. Located

months

of

1952

NATIONAL

BANK

0/ WASHINGTON, D.

C.

founded 1836
MEMBER

FEDERAL RESERVE SYSTEM

•

FEDERAL DEPOSIT

INStTtANCE

CORP.'*

Number 5158

176

Volume

.

The Commercial and Financial Chronicli

.

.

(1347)

vestigation

Continued from page 25

reserve

Banking Problems in

In

-

Our Defense Economy
our

work in

jobs won't fit exactly, but they
fairly closely. As much as
I dislike the concept of across-the-

contribute both time and

board increases, it has to be done

ticipation is all a matter of

sometimes; and we must be enough

ance,

informed to know when the time

best

judge of where that

has arrived. If we follow the BLS

lies.

Meeting your

the

for

similar statistics

some

have

less

far
chance of reacting too late to
we

area,

pre¬

Other

Relationships

Employee

of

assistance. The degree

and

bilities

bal¬

balance
civic responsi¬

give you

will

our par¬

each our own

are

we

financial'

of

sense

a

satisfaction, and the contacts can¬
helpful to your bank's

not but be

beyond the

Employee relations

question is dependent almost
on our supervisory and

wage

entirely

Perhaps the greatest social con¬
we can make is through

staffs.

personnel
educated

They

and

re¬

They must

the personnel.

spect

be

must

understand

to

place responsibility on those who
seek

it, work slowly

fear it.

those who

on

They must encourage free

expression,

the education

personnel in

of our

government. We can impress upon
our
employees the fact that the

this country
the re¬

great strides made by
since

its

sults

of

beginning
free

working

men

We

environment.

free

about

were

can

in a
bring

realization among our em¬

a

good ideas and

pass on

ployees
that
good
government
justifiable complaints, and make
comes about as a result of active
sure
the
employee understands
public participation, and that over
that consideration is being given.
the years, the saying that "People
An answer must come back. All
get the kind of government they
supervisors and officers must rec¬
deserve"

ognize that their duties include a

responsibility to the personnel
well

to

as

have

the

been

as

job to which they

appointed.

Providing

job comfort and stimulating inter¬
est

pears

of

a

our

been

times,

some

personnel, it will have

small added burden.

a

Six

Personnel

May

gestions

personnel,

on

realizing

to

regulations
considered:

be

(i) It

al¬

are

rial

and

think

to

pays

less

you

turnover.

You

it

doing

are

may

yet

and

not be. Periodic check-ups are ex¬

tremely
(2)
to

It

to take time initially

pays

there

is

freedom

still

my

to

reexamine

tion to the

(1)

ness

introduce

new

acquiring

under

em¬

new

organization and

your

they

stay

can

sound

pays to recognize and
promote and increase pay prompt¬
members of your

staff who demonstrate

real

ability and

interest.

(4)

point,

than

in

get

to

control

It pays for the president

feels

he

people,

the

from

of

education

you

better.

It

promising
to

make

future officers.

wait

till

employees,
selection

of

Try informal social

get-togethers of senior officers and
these

young

thefn

and talk

men

about

their

and

interests, their
families, and your plans for them
if they continue to perform good
work.

those efforts,

Bonds

"I know of

such

as

to

to

worthy social

sound

government

programs. Of this most
bank

important

function, I should like to be

brief but emphatic.
We

are

faced

locally with the

endeavor to

should

previ¬

be rendered to any country than

by improving its agriculture

.

the

injustice of the excess profits tax
law, particularly as applied to
those banks who need good earn¬

additional needed

ings to attract
capital. ■

IV

The

Problem

Satisfying

of

basic

that

of making a

satisfying

concep¬

own

our

tion, and that of our supervisors,
in regard to

sound depositor pro¬

We have been

whipsawed over

a

between artifi¬
cially low interest rates and in¬
creasing costs. (We have, in fact,
been subject in our interest rates
to a form of price control.) Al¬

period

of

years

have not experi¬
enced excessive profits, they come

though

banks

the

under

tax

provisions

of

the

rates

of

excess

laws.

become

There appears

in the

bond market,

government

have

near

more

to be

future of

a

chosen
-THOMAS JEFFERSON

.

.

.

no

other human occupation opens so

Civilixation."

of

wide

a

profitable and agreeable combination

labor with cultivated thought, as

agriculture."

-ABRAHAM LINCOLN

-THEODORE ROOSEVELT

You can help preserve that freedom
Your freedom

rooted in the

.

.

.

America's freedom

...

is

topsoil!

Washington knew this when he spoke out for
soil conservation. Jefferson, Roosevelt and Lin-'
coin knew it when they spoke for agriculture.
they were farmers themselves, all four
hunger and poverty breed war and

knew that

is still

problem

".

field for the
"The Farmer: The Cornerstone of

honored in his call¬

ing—for they who labor in the earth are the

people of God."

.

-GEORGE WASHINGTON

Because

Stockholders
Our

"Let the farmer forevermore be

point out

elected representatives

jour

realistic.

good chance

that food and the products of the farm
powerful weapons for peace and freedom.
They knew, too, that America's agriculture and
the enterprising American farmer were, and
are, keys to American greatness . . . that the
industry of the soil was, after all, the basic
industry of any nation.
Today, those things . . . the peace and free¬
dom that hinge on farm production . . . are in
the hands of you, the American farmer. That is
why soil conservation is important both to you
strife

...

and

to

America.
after

his land pays

into

it.

year

him

.

cause

of you.

HELPFUL FACTS ABOUT SOIL CONSERVATION
•

DISTRICTS

Soil Conservation Districts are made possible by your own'
state laws.

•

•

Operate independently of any federal law or regulation.
any such federal programs as marketing agree¬

Do not handle

ments, market quotas, acreage
e

of America's future
washes away—needlessly. Is anything being
done about it? Yes, thousands of modern farm¬
ers like yourself are seeing the need for sound
conservation practices and are attacking the
problem. Typical are the farmers who have
organized and manage 2300 non-political Soil
Conservation Districts. Sure, it has cost them
some money as an original investment. Bui ask
a soil conservation man and he'll tell you that
Year

through sound soil conservation
principal plus increased yields. Then too, the
generations of the future who will continue to
live by the land, will benefit as even you do.
If you are interested in the program of Soil
Conservation Districts, see your MM dealer
today or write to the United States Department
of Agriculture, Washington, D. C. Ask for com¬
plete information on establishing a soil con¬
servation district in your neighborhood. You
too, will find that the "Roots of Freedom" are
in the topsoil.
.' and they will be stronger be¬

Get the conservation job done

allotment or crop insurance.
by local people through local

effort in the American way.

more

•

There is

no

charge for the technical and other district help
apply a conservation plan to your farm.

that

is available to

times over what he puts
production pays back the

many

Increased

Minneapolis-Moline
MINNEAPOLIS

MINNESOTA

Congressional

recognition and reconsideration of

the excess profits tax law, as it
responsibility of supporting pertains to banks. There also ap¬
worthy civic and social organiza¬ pears to be a good chance of in¬




pursuit in which more real and im¬

the Savings

.

and

no

portant service can

program,

.

contribute

was

Pizzini & Co.

found the "Roots of Freedom" in

government's approach to eco¬
nomics and- banking, supporting

profits

efforts

He

W.

B.

the Trenton Trust Co.

must,

The three-year
Ill
provision for reserves for losses
in
many instances
is inadequate
Our Responsibility to Community,
in the light of past experience as
State, and Nation
loan portfolios increase and the
As national bankers, we form a
twenty-year moving average be¬
vital and influential sector of our
gins to exclude early depression
local
and
national communities.
years. But collectively we
have
To maintain our leadership
and urged corrective measures;
and
discharge our responsibilities, we this last
year, with the unpegging
must

Road.

with

These four Farmer-Statesmen

hands in resignation.
rather, ferret out the
weaknesses and strong points in
We

tection.

nonofficer

intelligent

and

in¬

business from offices at

Nassau

ously

J.—

an

throw up our

to know your most

pays

a

are

or

have real trouble.

(6)

sail in

by adequate in¬

26

N.

conducting

approach to government ac¬
and policies.
We must not

our

tion

or

to know the

Don't

lie ahead.
We
period of respective calm
may

Bertram Stiff is

vestment

Opens

MONTCLAIR,

responsibility to act positively in

time

employees

fair

emergencies

UPPER

who

weather ready their
ships and their complements for
whatever rough weather and
during

Bertram Stiff

liken

captains

our

attend

and

can

we

shall

we

super¬

meetings,

me

ship

great deal in

to

visor

to

one

employee functions, attend

officer

ourselves

ds, tec h-

to

seems

dis¬

decent return for our
stockholders, while at the same

executive

Conclusion
It

personnel.

cannot

(5) It pays for the president

chief

&

York

only that
previously taken

has

economic

the

get satisfaction in any other way.
•.

New

people

the

to

it

can

Chief executive officer to be avail¬

who

be better prepared to control

lines.

new

new-busi¬

o

Lambert & Co., NYC
Lambert

can

across

government

that

tribute

able at all times to any disgruntled

employee

t h

George P. Shettle With

to encourage
their out-of-

them

urge

thinking

more

no

We

(3)" ft"

new

m e

of

adequate

with

safely

us.

business connections. If we can do

or

leave.

ly of those

into

yield

negotiate

to

whatever is before

Co., 2 Wall Street,
City, announce that
George P. Shettle has become as¬
our expense and to direct our new
sociated with them in charge of
business efforts along profitable
Investment Analysis.

may

Protection of the assets
our

prepared

(7) Knowing our costs that we

all

ficers and personnel.

(4)

be

services.

Development

that deserve our
help, and constructively opposing
see that they get the proper initial
nonessential spending, waste, and
instructions.
The impression re¬
unbalanced budgets, which we
ceived in the first few days may
know to be inherently unsound:
determine whether
ployees to

us

in rela¬

efforts

entrance

and

(6) Thoughtful management of
security portfolios in the light
of current conditions to obtain the

tage of the tax law provisions.

following:

Our

(2)

our

rigging, strengthen our staffs,
tidy our Ships that we may

our

stability and to take full advan¬

management.

opinion, it behooves

examine

and

Imaginative review of loan

maximum

served,
amount of

great

good

In

fields

a

for

the

important.

properly

per¬
some

area

is

storm

a
us

Finally, we are faced with the

pay
slightly
above the average going rate for
any job and thus get better mate¬

;

We

have accomplished a
sug¬

better

a

but
Let

employees

our

away

Suggestions

show

come.

to vote, to
participate in local affairs of gov¬
ernment and civic organizations.
urge

which

six concrete

I make

that the wage
ways

ap¬

disproportionate amount
time; but if we can keep

better

our

*

what

consume

We

true.

been

has

banks

formance than others. While

to

policies.
our

matter of record,

well-being,

economics and

basic

of

field

the

as a

and

bound

guards.

have been operating as

we

safe¬

other

and

auditing

ternal

niques, and advertising.
(3) Development of capable of¬

tribution
\

the

(5)

variance is due to the

long range progress.

employee discontent.

vent

of

allowances.

industry,

some

all know that we must

We

tions.

or

revision

spite of the handicap under

which
an

indexes

and

regulations applying to bad debt

85

MANUFACTURERS OF THE COMPLETE

(The above is one of a series

LINE OF MODERN

VISIONLINED TRACTORS, FARM MACHINERY AND POWER

of farm service advertisements sponsored by

UNITS FOR

AGRICULTURE

the Minneapolis-Moline Company during

1952)

36

The Commercial and Financial Chronicle

(1348)

munity. If

By JOHN

to

A repuation for integrity,

BUTTON

ity and sincerity is one of the most
priceless possessions any profesfessional

man

can

acquire. It does

take years to build such a reputa¬
tion.

It cannot be done

There

lows

definite actions

is

position

your

in

reputation

is

as

good

takes

step in building good

discuss

well

of

serious

a

view

of

business
other profes¬

your

as any

Don't dis¬

would do.

man

on

in the club,

corner,

luncheon

table

or

the street

the
golf

over

the

on

Don't give tips. Don't make

course.

just something which
a
living, will act
accordingly. The man

business pro¬

your

stocks and bonds

cuss

who regards his

large meas¬

a

Make

important

sional

it cheap. A man's money

him

and perform

who

think

a

and ridicu¬
his work.

unsound

related to the two first steps.

Don't

your

only be accom¬
will be fair with

man

as

furnishes

emotional

ure

can

you

yourself. A
life work

in building

to

yourself. This

if

ing, and he says, "I'm a peddler,"
I know that he is carrying an in¬

miscuously.

The first step

plished

watched

public relations is in

community.

finances

first

all

of

are

and his

fairly

a

confidential matter. This is also

his

a

activities, who believes that he
must continually add to his store

important subject to most
people. I am reminded of a broker

of experience

friend

and

his

ness of action, will
build step by
step in his relations with the pub¬

lic. You cannot be something that
you

not. Sooner

are

will

know

will

know

whole

good

will know

second

public

matter

later you

or

it, then your friends
it, and later on the

town

The

of

relations

inner

building
is

also

a

understanding.

You must believe that you are in

important part of the community.
I

know

there

who

men

have

thought

something about which
they should be apologetic in that
they were engaged in sales work.
I

was

have

never

Death Of

"The

see

Salesman." I read the

a

reviews, and
the

to

gone

general

after I had obtained
outline

maladjusted,

of

the

poor,

fellow's

character,
who was on the receiving end of
the accumulated misery that was
portrayed in this play, I did not
need

to

see

who

men

who

it.

There

call

are

The

themselevs

many

sales¬

am

also

success

men

who

have

There
made

a

out of their lives in
every

way—they had it in them to live

right and do right

—

salesmen in the finest

Your

they

sense

other

any

the

man

don't think I
to be rude.

or

stock

what he should buy

unless

market,

knows what that

he

already
holds, what his investment objec¬
tives are, and a good many per¬
sonal things about him.
I have
man

too many 'off the cuff' opin¬
that were given in all sin¬

seen

ions

cerity

then

and

boomeranged. I
am
sure that your doctor would
not give you his advice on a seri¬
mater

ous

regarding your health
telephone without first

the

over

giving

you

physical

a

tion, and I believe
with

me

same

tention." As

a

derstanding

was

could have
from

you

examina¬
will agree

result,

idle

a

better

un¬

established than

possibly

some

ever

resulted

chatter

about

the market. You don't

or

to

considerate at¬

be

stuffy about it—but
people should know that if they
get

advice

valuable.

from

You

can

you

that

build

it

is

prestige

for

yourself by the attitude you
ASSUME toward your business.

The

fourth

favorably

step is
known in

to

become

your

actions

our

have

time

people

and

and

re¬

again
certain

under

tendencies

and

build

up
man

who

makes

never

nimself

is

rare

a

But he is

to

fool

a

most

jor

should be our ma¬
in military elec¬

concern,

objective

tronics.

of

out

indeed.

person

television.

Immediately after the war, ac¬
tivity
in extending commercial
television gained great momen¬

the air has grown from fewer than

discreet,

the impulsive, the fret¬ a dozen in 1946—and these offer¬
ful, the show-off and the bluffer ing only limited programs — to
will never build a good reputation. 110
serving 65 urban areas. By
For him it is true that "The things means of coaxial cable and radio
he does

speak

hear what he

loud

so

no one

is

advertising

to the

comes

the

professional man
important single as¬

most

relay

the

spread

of

programing
has
in¬
creased. Today we have expand¬
ing network facilities which span
the

continent.

can
acquire. When strength
clients begin to say to their sion.

and

which he

set

your

geographic

television

The word-of-mouth
that

can

says."

friends that you are

good

a

At

man

the

This

has

impetus

to

added

televi¬

beginning, just thirteen

channels

provided for the
job, that you are a sincere
fellow, that you can be trusted service. These were in the veryand you know your
portion
of
the
business, then high-frequency
on

your

you

are

on

your

Speech-

way.

were

radio spectrum. The rapid growth
of television broadcasting brought

making before public audiences
with it problems in the allocation
helps if you know what you are
of stations because of possible in¬
saying. Publicity of all kinds pro¬
viding it is favorable can't hurt
either. But best of all is the "good¬
will" of your clients. If they get

something from
preciate
granted,
tion

you

But if

if

or

not

you

ap¬

take

build

can

that.

on

cheap,

do

and

that they

you

for

reputa¬

a

make

it

don't believe

it

you

yourself, all the outside publicity
in

the

build

world

won't

help

to

you

business.

a

It is not necessary

I

to

review and there followed

a

"freeze"

by

build

am sure

good-will.

Any

how to

time

keep—

Federal

tional

addi¬

station

assignments. The
began in September of

"freeze"
1948

Com¬

on

and

months

continued

until

few

a

During this period, information
and experience were accumulated
on

these interference problems. In
a

the

on

predominant

channels did

same

eliminate

to

minimize

or

a

interfer¬

of

source

of

high-frequency
a
Salesman" may be a clever
radio spectrum.
writer, but he wouldn't know how
to

about being one—not in

go

thousand

a

years.

Banking Correspondent in Canada

portion
A

extensive

an

UHF

made

tions

and

time.

First

studies

over

Street

long

a

these

of

the

period

of

Sir

are

Edward

Pea¬

the

siderations

of

UHF

technical

con¬

VHF

interference

struction.

They

station

con¬

announced

the

on

ris, President; J. M. Conn, Secre¬
tary; and W. W. H. Hill-Wood,

and

C.

authorized.

and

H.

B.

Bell,

UHF

60

stations.

By last week,

stations

new

VHF

new

had

been

the second

big surge of television.
way
has been opened for
approximately 500 more stations
The

(Special

to The

Financial

in the

Chronicle)

BEVERLY HILLS,
Calif.—Betty
Keeler
has joined
the
staff
of
Daniel

Aiding

in
the
Development
of Canada
Since 1871

Reeves

Beverly

&

Drive,

Co.,

398

members

South
of

the

television
out.

range

was

formerly

total
in

NEW YORK AGENCY:
HEAD

Branches
Private

across

WALL STREET

OFFICE—TORONTO
York, Montreal

and

Toronto offices

1,500

nation-wide

can

be

filled

community
will be within

of television broadcasts.
United

is

A

50,000,000 television sets
not

States
an

Added

within

of

area

to

this

promise

of

J.

building

at

a

research—electronics

ing

just

the threshold

in

now cross¬

into

revolu¬

a

tionary future. It is my Number
One
promise for electronics of
tomorrow.
Radio equipment of the early
days made use of essentially the
materials

same

brother,
These

the

the

conductors—ma¬

—materials

ready
when

influence; insulators

where

bound;

terials.

the

electrons

of

under proper

older

industry.

permitting

movement

are

its

as

electrical

were

terials

From

the

the

almost

entered

These

were

radio

the

neither
in

ma¬

begin¬

class of

a new

terials

electrons

magnetic

and

ning, however,

ma¬

scene.

conductors

nor

insulators

and

they did not obey Ohm's law.

usual

the

sense

I refer to the loosely packed par¬
ticles
of
the
coherer
and
the

crystal
These

its

with

point

basis

contacts.

the detectors of radio

were

While the performance of

waves.

of"

measured, the

the- performance

was

little understood. Except for such

specialty applications these semi¬
conductors

the

electric

discards

were

the

and

radio

of

arts.

They
served welLduring the early radio
days

but

when

electron

lever-arm
tronics.

apparatus

became, the

tube

the

is

stage

tube emerged.

radio

of

It

the

from

passed

the electron

elec¬

and

keystone of all

techniques

and

which the present

upon

ever-expanding

industry depends.
While we have

while

we

progressed far,

usefulness of'
attention
again,

and

tubes,

has

directed

been

still expanding

are

electron

discard

the

to

materials, the semi-conductors. As
is

often

so

the

case, we find in
the real gem itself.
the approach was

discard,
this

not

time

empirical
experi¬
painstaking re¬
search with understanding of each
through

mentation but by

step. Also it

proach but
many

of

not

was
one

The

and

first

materials
linear

and

which

were

ap¬

taken

evidences

many

potential results.

broad

came

single

a

which has

routes with

current

their

unilateral
those

of

these

of

uses

from

non¬

properties
importance

for

radio-frequency detectors of
early days. Then we moved
into small power applications as
well. As understanding grew, we
learned that
conductivity could
be influenced by radiant energy

(photoconductivity), by electron
bombarment
(bombardment-in¬
conductivity), and by ap¬
plied voltage (transistors), just as
duced

in

the

up

case

of

Here,

however,

with

the

the

tube.

electron

we

are

controlled

working

action

of

electrons in solid meaterials.
A New

Why

grow
for black-and-white tele¬
Lowe, Jr. has joined the staff of vision, is the opportunity for tele¬
Company, 51 North High vision in color. Extensive testing
Street, members of the Midwest is under way. Experience is now

Exchange.

look

a

five

The Ohio

Stock

Electronics

take

us

the solid state—is

unreasonable

estimate.

(Special to The Financial Chronicle)

Ohio—Alfred

some

every

country

of

the

years

Joins Ohio Company
COLUMBUS,

Canada and in
London, England

wire New
connects




49

the

of

service

Virtually

Exchanges.

She

skeleton

present

in

Lipton Co.

VHF band and

stations in the UHF channels. The

New York and Los
Angeles Stock
with Curtis

Peacetime
let

the

This activity marks the start of

directors.

With Daniel Reeves Co.

in

promise for both military
peacetime electronics. This

and

But

of

criteria for allocation of

Millis

received

conventional

on

current

later

practicality

cock, Chairman; William C. Har¬

H.

and

Now

and

service to receiver designers.

a

With

lifted the "freeze"

Officers

be

can

white

Current Promise of Both Military

the

merchant

London.

to

television receivers without modi¬

basic

banking firms of better understood and reduced,
Federal
Communications
Baring Brothers & Co., Ltd. and the
in April
of
Morgan Grenfell & Co., Ltd. of Commission,
1952,

the

progression

fication.

for

were

system

established—with

Jordan

that

and

the( versatility

in

with

21

black

culminated

as

at

system

and

TORONTO, Canada—Harris and
Partners, Limited has been formed
by W. C. Harris & Co., Ltd. and

orderly

broadcasting enhanced
by the addition of color. By com¬
patible, I mean, a color television

of

conducted under full-scale condi¬

of Toronto Formed
offices

the

of

succession

by RCA-NBC at
Bridgeport, Conn. Here tests were

Harris and Partners

signal

compatible system permit¬

an

propagation studies and field tests
set-up

com¬

of

television

The

you

"The Death

determination

a

ting

ence.

think
The readily apparent need for
job doesn't
take
ability, more
channels
to
achieve
full
knowledge, patience, and all the
coverage
for television spurred
other virtues, think it over. The
fundamental studies on the ultrawho wrote

with

such units could he

ago.

your

fellow

the

standards. We may move forward

a

system of slightly off¬
to
setting the frequencies of nearby

only have to know
but

the

munications Commission

much

cart." You not
how

to

easily, how easily, can
stations
slip overturn the apple¬

bad

one

terference between them. This led

addition,

add—"How

industry. The National Tele¬
vision System Committee is active

.•

who, tum. The 10,000 receivers in the
once in a while, sees himself ob¬
public's hands at the close of the
jectively, and tries to
discon¬ war quickly multiplied.
Today,
tinue some
of his
foolish
and seven
years later, there are more
harmful words and
deeds.
The than 18,000,000 sets with an esti¬
man
who can
grow
will build mated audience of 60,000,000 per¬
good public relations.
The big- sons. The number of stations on
headed, the loud-mouthed, the in¬

the

on

much rarer bird

a

Industry

a

stronger character traits. The

that good financial advice

deserves the

were

of the

"Well,

first of all, I believe that no
has the right to suggest to

man

in

you

trying to be glib,

have

are

was

securities.

asked

was

Peacock, I hope

in all walks of life who kid them¬

selves, not just salesmen.

buying

follow

to

strains,
and
I
have Television—No. I
Oportunity in
witnessed that they do the same
Peacetime Electronics
thing over and over. Very few
Now let us have a brief look
have the will power and. the un¬
at
today's Number One oppor¬
derstanding to curb their weak tunity in
peacetime electronics—

intro¬

was

what's good?" He answered, "Mr.

stocks,

go

in

broker

who

who he knew

man

a

interested

through life kidding
themselves into believing that
they could have been something
bigger and better. There are men
men,

mine

of

duced to

But

it.

in

step

very

effective¬

I

actions.

The third

good public relations, that if
faithfully followed will eventually

in

3

page

And Peacetime

of

creatures

are

tend

we

pattern

apologetically answer the question
to his manner of earning a liv¬

lous attitude toward

of

establish

man

some

We

and

as

completely

pattern that fol¬
in the field

a

hear

I

will
that type of person.
in life is reflected

as

action

habit

feriority complex around that will
dog him the rest of his life, unless
he wakes up and gets rid of this

quickly—
or carelessly. In every
community
there are standout Doctors, Den¬
tists,
Lawyers
and
Investment
Men.

Every

When

word.

abil¬

accepted

outwardly.

Build Prestige

jrom

Thursday, October 9, 1952

.

Electronics for Defense

of solid progress—you too

ers

be

How

Continued

.

that

work—if you go with people who
have character and who are build¬

SalesmaCorner

Securities

associate with or¬
do
community

you

ganizations

.

in many segments of

is

this

Tool

important?. It

important because

we

have

is

a new

tool, a new instrumentality. It
promises to augment and to sup¬
plement
the
electron
tube.
It
means

ture

new

freedoms

in the designs of

in

the

fu¬

equipment.

Volume 176

The Commercial and Financial Chronicle

Number 5158

(1349)
It

wider and added services

means

and

It

uses.

provides

a

di¬

new

mension.
We
this
swer

limit

might

ask—"Doesn't

well

spell obsolescence?" The an¬
is obviously "Yes," but it is
which

obsolescence

the

though too far
present,

is

the

fundamental

I

have

ters

it spells

and

greater

ser¬

vice and utility.
It

is

in

this

have

of electronics

area

electronics

engineers

immediate future task. It

an

is clear that the foundation stones

of

industry

our

and changed.

The job
be

to

is to

in

move

orderly

an

fashion. The job is
the

that

sure

to be modified

are

This is the challenge.

but aggressive

advances

are

constructive and beneficial.
I have outlined what I consider

problem in
military electronics. We have dis¬
cussed
what - I
consider
today's
Number One opportunity in peace¬
today's

One

Number

time electronics—television. I have
sketched

opinion, is
the Number One promise for elec¬
in

what,

my

tronics

of tomorrow

in

solid

the

one

electronics

—

Shall

state.

Shall

step?

more

to

be,

Tor

the

attempt
seems

me

the
-

Industry. In closing let
just a moment- of

for

we

shall find ahead. As

through the
from

us

Conference

National Electronics

to

Mental

viduals and all groupings of indi¬

part, in

upon—
we

hearts—that faith

which

the

(2)

The vision

area

face

we

if not

greater

than

we

AND

ability

gone

before.

I

count,

to

►control

or

never

constant.

cannot

over

But you can

minimum in

with

its

ca¬

facility

to

performed

minds—thinking

by

processes.

conceive,

can

compre¬

hend and perform, he will be able
to construct in electronic systems
to

do

as

effective

his

bidding and the elec¬
tronic performance will be at least
the

as

human

per¬

formance.
I

not

am

-help to

just thinking here of
such

man

veloped to aid his
him

to

store

to
or

•other

helps.

I

aid

to aid
him

to

variety of
thinking of a
together

am

all

of

has de¬

senses,

compute,

information

-synthesis

he

as

these

developments yet to come, so
•organized
that
by
man's
pre►arrangement the electronic system
will

sense, react, interpret, com¬
pute, act and control. It will do
this using what is the equivalent

thinking

and

intelligence.

will do this because

It

has put

man

these channels into the system. It
will do this at man's simple choice
"to start or to stop, which will act

with

such

speed

vall-inclusive

with

such

comprehension

that

and

it will outstrip man in its action.
It will permit solution of the most

•complex of situations.
How far will this go?

Certainly
thinking processes
repetitive. Certainly it
will "think through" and execute
it will include

which

are

wherever

situations

be

can

pre-

analyzed and stored in electronic

Maybe this will include

memory.

situations

which

considered

today would be

creative

as

thinking

at least in the border

creative.

This

materialistic,
the

may

the

humanistic

—

now

than

a

formance

all

the

Cincin¬

its first edition

Edwin

other

purposes

in each of the past five
years has

exceeded that of each of the Cin¬

the
our

for

proceeds from the sale

of

debentures, together with pro¬

cinnati afternoon newspapers. The

"Enquirer's" advertising linage in

J.

(Special to The Financial Chronicli)

has become associated with

mann

Hallgarten

&

Co., 231

Cincinnati has grown from 39.5%

past

convertible junior debentures and

of the field in 1942 to 45% in 1951.

Spencer Trask

from

the

sale

of

was

Chicago

car,

a

What protects your

or

market.

open

government

investment in stocks?

the buy¬

govern

are

much

Self-regulation
Every stockbroker acts in

a

posi¬

tion of trust when

or

sell¬

buying

behalf.

on your

businessman interested in
a

sound

business.

is

O

a

Exchange regulation

Government
and

running

To

Stock

in¬

you.

stockbroker

every

Self-regulation

•

He is

carry out your

structions—directly liable to
And

O

regulation—assure

you

fair

equitable trading practices

operate

profitably/he must supply satis¬
factory service to
any

you

the

Therefore,

you

can

easily

see

broker is both morally and

legally obligated to give
best

same as

retail merchant you deal with.

your

the

you

possible counsel and guidance

with your

investment program.
Besides, it's simply good busi¬

ness

for him to

serve

your

best

interests,

for when

from your

investments, he profits
satisfaction.

from your

you

Stock

profit

Exchange and

Government

But
no

a

Regulation

The Toronto Stock

Exchange has
rigid regulations governing the
listing of stocks, and it maintains
strict control

the operation

over

of all stockbroker members.

Special provincial government
departments devote their

full

time

overseeing all security
issuing and trading.
The Exchange works in close
cooperation with the government
departments

avoid unsound

to

securities and

to

ensure

the in¬

tegrity of all member personnel.
•

•

•

The

legend "Member of the
Toronto Stock Exchange" is your
guarantee of fair trading in all
your

stock transactions.

If you'd like more

about this
ness

write

information

fascinating stock busi¬
any

member of the

Toronto Stock

Exchange for a free

of

illustrated booklet

copy

our

!'TheMAGicof the T icker T ape."-

■

**•.

V

-V; 'V

.-V

TORONTO

let

me

stronger
per¬

limit,




X

C

H

A

N

G

E

arts

al¬

series of advertisements

commemorating the lOCth
Anniversary of the
Toronto Stock Exchange

SEE

YOUR

STOCK

EXCHANGE*

THE

VISITORS! GALLERY

IS

OPEN

EVERY

TRADING

SESSION

manager

& Co.

element of

a

South La

Salle Street. Mr. Moelmann in the

$2,500j000

ceeds

Moelmann

CHICAGO, 111.—Edwin J. Moel¬

and real estate.

and

the

Electronic

surely has

Sunday

controlling
marketing of such things as

One of a

predict.

feeling.

It published

in

for the

so

scientific,
for

feeling—it is

express a

only

of the

area

be

Where will this stop? I for one
not

nati.

and

published

or

and sciences.

do

morning

newspaper

a

with

•of

only

strict than those

more

cars

tirelessly
and
without
fatigue — is electronics literally
•asking to take over certain duties

man

we

investment,

ing and selling of stocks

and

-operate

What

Inc.,

The Cincinnati "Enquirer." Since
1930 the "Enquirer" has been the"

and

period of time.

and

regulations that

ing shares

its

been

Enquirer,

Their value is

fair,

a

legally bound to

have

Cincinnati

organized by a committee of
key employees to purchase and
operate the newspaper known as

they may be redeemed at prices
ranging from 105% to 100%.

reduce that risk to

-electronics

men's

than

Halsey, Stuart Offers
Cine. Enquirer Debs.

The

It increases

the laws,

And

an

a

pacity for accuracy — electronics
wyith its comprehensive coverage—

'which

pro¬

in

carry

stocks.

decreases

a

any

remember,

with

Hallgarfen & Go.

newspaper.

unlimited

its

electronics

—

With

REGULATIONS

house

a

•emphasize this too strongly.
with

we

hearts—that vision which inspires

after

day

isms, and machinery—a revolution

Electronics

our

if necessary, to defend.

pose,

You can't avoid the

revolution of techniques, mechan¬

has

in

carry

purchase

that

more

think!

amount

(1) The faith

whether you

great

Cincinnati

our

tronics, more and more, is assum¬
ing functions formerly performed

tomorrow. In this

The

The

was

need

we

"Enquirer"

of

culated to retire over 57% of the
circulation during this period has
great country, our debentures
prior to maturity. For
actions to preserve and guarantee
increased to 270,000, or 22%. The
this purpose the debentures are
peace
depend in no small part redeemable at their
principal paper's audited daily circulation
our

in

as

These
may

$7,600,000 incurred for

purchase

their respective

risk involved

that

earlier

and

dignity and freedom of

the individual.

loan of

a

in 1841 and its first
Sunday edi¬
Halsey, Stuart & Co. Inc. is of¬ tion in
1848.
contributions, de¬ fering $3,500,000 The Cincinnati
Daily circulation of the Cincin¬
fining and determining the com¬ Enquirer, Inc.,
sinking
15-year
plicated
paths
of
defense
and fund debentures, 5%, due Aug. 1, nati "Enquirer" has. grown 42%
peace. May those paths be directed 1967, at 100%.
in the last 10 years and now totals
so as to move away from the acts
A sinking fund is provided, cal¬ about
183,000 daily. Its Sunday
of or even the threats of war. For

viduals in the free world will add

elec¬

mentioned

toy men's minds. Here today's ele¬
mental applications are prophetic

•

all indi¬

next,

faith—actions to

our

of

the

GUARANTEE FAIR TRADING

Functions

■

the

the

assure

our

move

we

which separate

years

one

LAWS

tomorrow

De¬

in

carries

,

Electronics Assuming

for

for

in acting

us

carry

after

day

tomorrow?

I

mat¬

we

fervor which

Edwin J. Moelmann

promise

One

Number

electronics

take

we

we

glimpse at, what to

a

Electronics

—

(3) The fervor

matters basic to the environments

of solids—the use of semi-conduc¬

tors—that

and

think

us

selected

relating to the theme for this

conference

uphold our faith and which from the common stock
currently
inspire others because of the being sold by the
corporation,
we display.
have been applied to the
payment

vision

hearts—that

discussed

fense

to

us

will

re¬

main supreme.

research. It requires agile

zations

creative

thought and thus will always

basis and the purpose of scientific

organi¬

to discern at
mind has no

away

but man's

in

37

for

38

The Commercial and Financial Chronicle

(1350)

Continued

from

page

past,

over-the-counter

active

close,
the

In

in

the

While

another.

accepted
transmission
of

from

messages

the

was

office

one
some

•

Thus,

twenties, the use of the

Code

vehicle

much higher spread pre¬

a

vailed.

markets.

Morse

we

now

liquid

to

with

of these sys?

result of these closer
more active trading,

as a

markets and

have

an

active,

broad,

market
which functions
facility—-in contrast to the

exist, the use of the vague, uncertain, inactive markets
telemeter system, which was per¬ that prevailed not so long ago.
fected early in the thirties, is by
Publicity
far the most popular means of
fast communication.
Publicity is defined as informa¬
Nearly all
large firms with out - of - town tion designed to advance the in¬
branches have their own private terests of a cause, usually appear¬
terns

still

leased wire

These

office to

in public print.
Over-the-counter quotations

ing

systems.

wire
systems,
along with the use of the TWX,
long distance telephone, and West¬
ern
Union, assure the prompt
spreading of financial and world
news and of changes in the quo¬
private

are

well publicized, even
so.

Liquidity of a
on
the

greatly

increasingly
market depends
availability
of

accurate and current
The

quotations.

stock

making notations of the
wants and offerings of rival firms.
It was also necessary to watch the
advertisements in newspaper and
financial
publications
carefully,
noting The firm name and the
security advertised. All this in¬
formation was carefully filed and
often

led

weeks

or

to

successful

a

months later.

financial

made the

mation

necessity,

naturally,

gathering of such infor¬

great

a

easier—but

deal

necessitated

it

still

of

laborious work.

deal

great

a

Early in the nineteen hundreds,
a
monthly service was edited,
showing the wants and offerings
of
many
dealers
all
over
the
country. However, as time went

trading volume increased amid
greater activity, and the
an accurate daily publi¬
cation became extremely acute.

in

-

the

over

-

the

-

the

counter

use

of

the

readily

re¬

the normal

a

above factors result in
small

the

publicized

relatively
list, with

a

daily

issues and active large is¬

new

predominating.

sues

Publicity, is
made

dividual
mailed

periodically by in¬

up

firms

out

to

profitable

a

curred

are

complete list of
and institutions.

a

dealers, brokers
Many

which

and

trade

has

oc¬

Dealers, also, often advertise in
the newspapers—sometimes only

locally, but often,
basis.

Some

also

are

on

national

a

national

magazines

occasionally used for ad¬

vertising

purposes.

The list

-

latest

dealer

bids and

over

the

-

-

of quotations

the-counter

lists

made up

over-

by

has also been growing

newspapers

continuously, evidencing the value
of

of the markets of

publication

market.

this tremendous
It is

fitting, here, to mention the
the

of

value

Dow

Jones

News

Ticker to the financial

community.
Operated in conjunction with the
"Wall Street Journal," this news

ticker

financial world

keeps the

abreast of all important corporate

well

news, as

tional

all important

as

international

and

able

transaction

those

who

on

has

keep

careful watch

a

news.

counter

quotations

The

are

each day by the respec¬
They are picked

tive subscribers.

value

of

investment

trust to the over-the counter
ket

should

mar¬

underesti¬

by

never

for the

service, mated.
carefully edited, printed and de¬
The portfolios of these trusts
livered complete to the subscriber
consist of large amounts of both
the next morning.
Each issue is listed
and
unlisted
securities.
listed alphabetically and is fol¬
These
securities
are
by

up

runner

a

lowed

the

by

the firm

of

name

in

interested

the

security, with
firm's bid .and offering or
trading
market
indication.

that

his

also

is

There

telephone

listed

number

firm's

the

his

and

tele¬

type number.

is

one

oil that lets

cars

keep "New-Car Power"

for thousands of extra miles!

Practically
bank

every
dealer and
the country subscribe to

in

this service

and

use

its

facilities

service

is

issued

daily in
New York, Chicago and San Fran¬
cisco.

Each of these central loca¬

tions carries

quotations of securi¬
ties which are local in character,
those

and

active

being added to, reduced,

which

in

in

market

there

that

is

an

particular

section of the country.
In addition, the National
tation Bureau maintains

a

are

for

certain

a

in

of

need

are

security ,on

great influence
market.

anxious

to

prices,

the

to

comes

of estates,
quotations must

be obtained.

While

the

National

Bureau includes in its

Oil, made from 100% Pennsylvania

crude, actually improves

performance. Scientific
proved in road

new

your

car's

ingredients,

tests and countless lab¬

oratory experiments, let yotfr motor

keep "new-car power" for thousands of

It

service

serves

to

was

the

same

FEDERAL TIRES... Good For

TIDE

a

Long Safe Ride

WATER

ASSOCIATED
DIL COMPANY
New York




Tulsa

San Francisco

in

essential

the

der

of the financial field.

four hundred dealers

vice,

and

hundred

to

advertise
a

use

Some

this

some

thousand

ser¬

eight

issues

daily.
It

is

worthwhile

that

many

mentioning,
dealers in this

field do not feel the

t

organized

municipal trader
and buyer as does the National
Quotation Bureau to the remain¬

here,

miles.

extra

1935.

service

not, and as

security

be

endeavor to

do

result, enter

a

They

so.

necessity of
advertising their needs. State and
municipal issues are generally
high grade issues which are
bought mainly for the tax feature
and certainty of income. As a re¬
sult, once these bonds are placed,
they rarely have much turnover.
Furthermore, firms who deal ex¬
clusively in government, state and
municipal issues are not required
to register with the Securities and

individual is to become

an

one

are

<

ing

and

plently

He must have

experience.

have

instant

decisions.

He

They

avidly sought

all.

by

small part in main¬

serve no

taining and

their

and

activating

the

over-

must

lot of plain common senise

a

very flexible mind. A trad¬
er's responsibilities are great and
a

his duties

are heavy. He is
charged
representing his firm in the
professional over-t he-counter

with

market. He

must conduct

himself

with

dignity, unquestionable in¬
tegrity, and use his ability to the

utmost, With the responsibility of
making primary markets and en¬
tering into commitments for his

firm, he must at all times exercise
sound market

judgment.
Trading, in general, with partic¬
ular emphasis on position trad¬
ing, is a highly specialized line of

endeavor. Let us see just what
knowledge must be acquired be¬

-becomes

-one

adequately

equipped to enter this highly com¬
petitive field.
He must:

(1) Learn how to obtain quota¬
tions

and

what

these

whether
or

quotations

not

they
simply quotations.
or

are
;

(2)

Acquaint himself with ra
working knowledge ^of hundreds
and hundreds of securities. He will
learn

where

these

companies

located and the names of the

are

com¬

panies' bankers.

(3) Learn the

names

of invest¬

ment bankers and dealers all over

the

country; whether or not they
trading positions and
how, and through whom, they ex¬
maintain

ecute their orders.

(4) Attain

real

a

working

knowledge of cage procedure, that
is, the method of delivery and re¬

ceiving securities; how dividends
are paid and how they affect the
price of stocks; how interest is
figured and how that applies to
the price of bonds; the meaning of
accrued

firms

mem¬

He must have the ability to

make

and

of

excellent

an

flat, plus accrued interest,

is

;

A trader does need sound train¬

over-the-counter
business

skill¬

a

-

of the best customers of the larger

or

plus

dividends; how call dates
trading; how to figure

enter

into

local

state

and

Federal

transfer

stamps and how they affect 'trad¬

ing; what the meaning is of "regu¬
"delayed deliv¬
ery"; what a buy-in is and what

lar delivery" and

Secondary Distributions

Secondary distributions are an

to do about it.

dealers?..

distributions

These

generally

consummated

TheJize of

a

ruh from

in

are

the

secondary offering

consisting of a
small number of shares, to one in¬
can

one

If

the

offering

emanates

from

control, it must
first be registered with the Secu¬
rities and Exchange Commission.
A secondary distribution is the
method employed in the liquida¬
tion of large blocks of outstanding
management

or

.

that

ze

with

ly

stock

he

must

knowledge

exchange
have

of

the

mechanics

exchange procedure. It -is
most important that he be ex¬
tremely well informed of the com¬
plexities of those institutions.
■
(6) Have a reasonable working
knowledge of the workings of the
investment banking business in
general; how the buying depart¬
ment

and
syndicate department
operate; how competitive bids ate
made, and how to operate a posi¬

tion

at

the

bidding;

time

how

manuals and

of

to

sacrifice in price.

how

to

fect

on

a

of

as

dealer

making the

how

In the case

of

a

of

a

secondary dis¬

stock

listed

on

an

exchange, it is necessary to get the
permission of that exchange to en¬
able its members to

the distribution..

participate in

This permission

--

the
to

secondary.
(8) ..Obtain
rules,

as

■>

..

sec¬

to

operate one;
the market ef¬

ascertain

security in question
or

not

it

would

participate
a

in

be

that

knowledge of the

.they, .affect trading, of

the Securities and

offering.
tribution

—

advisable

it enhances the repu¬

the

*

(7) Learn the technique of

set price for his* and whether

Speed of distribution is highly
desirable
tation

statistical

obtain pertinent in¬

The advantage to a seller using
this method of sale lies in his abil¬

ity to obtain

competitive

use

ondaries

entire block of stock.

of

stock

formation from them.

when

trading
intimate

an

regular market
channels are not broad enough to
absorb the offering without undue
securities,

over-the-

counter trading dovetails so closfethat

market.

over-the-counter

[

-

(5) Reali

important means of revenue to all

stockholder.

more

the Blue List.

This

the

and gov¬

importance to the Municipal Bond
market
is
a
quotation service
called

are

far

ice,

[igh-Detergency Motor

trusts

%e 11 at net

volving thousands of shares. In the
latter case, the seller is generally
an' estate, an institution or a large

Quotation
daily serv¬

a list of municipal
ernment securities,
of

The
o r

the over-the-countermarket in

settling

accurate as-of

buy

whether

or

over-the-

ori the

counter

library

date, days, months or years ago.
This proves very valuable when it
as

securities

the-counter market.

specific

a

new

replace them.

bought to

an

ful trader.

This constant turnover exerts a

Quo¬

quotation

a

plale,

inations take

for the convenience of subscribers

who

elimi¬

or

nated from the portfolio. As elim¬

listed

extensively.
The

constantly

however, certain attri¬

are
extremely help¬
ful, if not absolutely necessary, if

markets

the

;

is

which

mean;

Trusts

of

butes

benefited

its up-to-the-minute

-

nothing mysterious
about trading. A sixth sense is not
a
requisite to become a trader.

na¬ fore

news.

Nearly all of the larger firms use
this service, and many a profit¬

offerings.

These

of

carried

securities

exchange in

of business.

Trading
There

ory.

result of these lists.

as a

the

on

course

There are,

furthered

by the
quotation and offering sheets that

much

need for

sold

sult, less publicity is given to day-*
to-day dealings in this field. The

on,

ticker

Wky New

nor are

issues that they deal in. As

are

telephone* as

The advent of the
a

trade

exchanges, through
Thps, it was in 1913, that the
systems, have
for years been able to publicize National
Quotation Bureau was
market. The result of this faster
formed.
This service plays a most
the stocks
and
bonds listed on
communication is that buyers and
their exchanges and the activity important part in the daily life
sellers can be brought together in
of these securities.
In addition, of the financial worker. Since its
a
matter of minutes, no matter
it has grown in size
newspapers for years have carried inception,
how far apart they may be.
complete compilations of the daily until, now, some two thousand
This
speedier
communication
dealers from all parts of the coun¬
trading on these exchanges.
has also been a great factor in
advertise their wants
and
There is no such system avail¬ try
the narrowing of the spread of
daily.
An average of
able to the over-the-counter mar¬ offerings
over-the-counter markets, and the
some four to five thousand quota¬
be
resultant increased trading volume ket so other methods must
tions
are
quoted daily and; on
of over
the
counter
securities. utilized.
some occasions,
this number has
Most active over-the-counter seMany years ago, when the tele¬ been as
high as ten to twelve
curties are now traded at a spread phone was a luxury and not a
thousand quotations.
of only y4 to Vz point.
In the necessity, successful traders made
This service furnishes a daily
comprehensive compilation of the
tations

Exchange Commission,

office

The Over-the-Counter Market
of

habit of walking from

a

4

Thursday, October 9, 1952

..

.

Exchange Com¬

mission

and of the National As¬
sociation of Securities
Desders.

(9) Learn the.names, and make
acquaintanceship, of hundreds
of traders-T-not
only locally but
the

those in other cities

as

well. Leafn

if;ln the eyes of the the peculiarities of these traders^exchange, the sdburity cannot be- whom you can be frank with arid
is given only

Volume

Number 5158

176

with

those

whom

<

*

The Commercial and Financial Chronicle

*

be

must

you

careful.

/ (10) Learn how to make
ket from

a mar¬

position; the size of a
market, the ethics of trading, etc.
a

Learn all about arbitrages

(11)

their

and

ramifications.

"Arbi¬

as defined by the diction¬
is the simultaneous buying
and selling of the same things in

trage"
ary

different

in

markets

order

to

profit by the difference between
the prices ruling in such markets.
As the trading fraternity now uses
the word, this
definition is not
strictly adhered to. Today, in what
is termed an arbitrage operation,
the buying and selling is not nec¬
essarily done simultaneously in
the same market, and the same se¬
curities

not

are

always bought and

sold.
•

An

arbitrage involving rights
is

warrants

the

or

purchasing

of
rights or warrants and the
selling against them of an identi¬

those

cal

of

number

which

other to the fullest extent in order

shares

bonds

or

they give the privilege to

subscribe to.
In

operation emanating from

an

reorganization

a

where

program,

in

offered

'Certain firms

are

specialists in

certain type of security.
find many

a

You will

firms who specialize in

for' old,

exchange

or

of

law to follow and that is the law

proceeds

of

of

reverse

is

Traders

true.

successful

and

the trader who follows trend

equipment trust issues—others

high grade bonds—some
only in stocks. Only a very few,
only

speaking,

large
enough arid have a sufficient
amount of capital to thoroughly
cover all the leading types of se¬
curities
in ;.,the; over-the-counter

relatively

the

of

some

time,

tinuously, is the trader
uniformly successful.

matter how

ground the firm

covers, you

ing.

A

deal

great

needed

the

and

high.
•

organized solely for
of professional trad¬
of

capital

overhead

•

A

the

firm,

may

and may

lions

of

California

trading
ment.

as

service

a

Their's is the

have

which

departments

solely

do

con¬

to

the

current

necessitated

large

a

the

of

Such addi¬

tional net funds the company may

the

hydroelectric potential of
Umpqua River and its

receive will be used to reimburse

tributaries
in
Doublas
County,
for income expended Oregon. The plan covers the con¬
for plant additions.
struction of eight hydro plants in
The
California Oregon
Power the North Impqua project area,
Co. is an operating public utility five of which are on that river

offices

nationwide

run

involve positions of mil¬

THE NATIONAL CITY BANK OF NEW YORK

may

Head
N/|,

Such

a

dividend

Statement

department,

change

or

ing
to

be

'8l2

19^

-

absorbed
a

Due

and

Banks

from

U. S. Government Obligations

$1,588,817,014

.

1,495,131,149

State

.

Liability

543,66^,870

.

Other Securities
Loans

Discounts

and

Customers' Liability
Acceptances.
Stock

.

Securities

\

Reserves

.

.

.

23,256,783

.

9,000,000

v

.

.

Bank Premises

Items

in

.

.

Transit

with

7,000,000

.

.

Branches

Other Assets

.

'

26,271,631

.

Interest^ Taxes, Other Accrued
Expenses, etc.
r
Dividend

.

~

Other

and

Unearned Income

International

of

Eanking Corporation

16,135,500

.

i

...

Ownership

23,859,802

21,712,933

for:

Unearned Discount
'.

Federal Reserve Bank

in

11,534,728

.

Portfolio

in

(In Foreign Currencies)

for
.

$45,572,735

.

Foreign Central Banks.

to

2,036,722,765

.

...

.

and

Bills.

and

ances

Due

99,499,233

Real Estate Loans

Accept¬

on

Less: Own Accept¬

31,087,283

.

Municipal Securities

and

$5,402,085,923

Deposits

Other Federal

of

Agencies

.

-0

•

0

0

.

.

.

.

.

45,938,611

.

3,312,003

...

Capitai

$144,000,000

.

29,512,759

.

8,369,499

Surplus

.

5,30 V 84

Undivided Profits

(7,200,000 Shares—$20 Par >

$",838,906,767

0

.

.

,

.

.

156,000,000

.

71303,309

Total

371.303,300

Figures of Overseas Franches

are as

of

$5,868,906,767
September 25.

f520,912,785 of United States Government Obligations and 516,496,100 of other
to secure S345.049.488 of Public and Trust Deposits and for other
purposes required

definite bear¬

the market.

on

.

.

ances

Obligations

very

as,

LIABILITIES

ASSETS

Cash. Gold

Total

have

can

oj September 30, 1952

as

in

policy.

must

of Condition

Branches Overseas

57

prop¬

Local, political and international
news

Office: 55 Wall Street, New York

Branches in Greater New York

67

into the hun¬

run

deposited
permitted by law.

assets are
or

(member federal deposit insurance corporation)

Primary markets are established
obtain profits from in-and-out

securities in which the firm is in¬
The
maintaining
of
primary
terested, and the executing of or¬ markets from either a long or
ders flowing through the firm.
short position necessitates the use
The last named department, that of certain
technique and funda¬

Chairman

Chairman of the Board

responsibility transactions within the market

Wm. Gage Brady,

keeping the organization sup¬ spread but, mainly, to enhance the
plied with quotations, offerings of value of a base position.

Jr.

•

oj the Executive Committee

President

W. Randolph Burgess

Howard C. Sheperd

»

of

operates

as

combination

a

professional trading and

serv¬

ice departments, is by far the most

important
which

of

all,

shall

we

dwell

Dependent

upon

of

the

are

one

the

fessional

and

the

be followed.

desired, these

Continued

staffed with from

to

one

thirty or forty traders.
inventory positions in some

Their
cases

into the millions of dol¬

run

lars.

Some

others

These
ized

only

departments

and

purpose

operate

locally,

national in scope.

are

maintained

are

organ¬

with

in mind—to make

a

a

dual

profit

from their operations and to serv¬

ice

the

principles.

Large volume, rapid turnover of
inventory and short swing profits
should be the objectives of a pro¬

upon

firm

size of the operation

departments

the

mental

sales

departments.
should, at all times, maintain a

It
re¬

sition
In

has

the

loss

a

from the

second, just the

outset.

reverse

its firm's retail distribution

i

purchase

of

by the

securities

Close

competitive

is

taken

items

markets

should be maintained at all times.

for

inventory.
It must develop A fair size unit of trading must,
ideas, execute orders to the of necessity, go along with the
advantage of its customers, watch close market.
Close markets of

trade

market trends

self

posted

on

closely and keep it¬
all

matters

perti¬

nent to the financial world.
.

,

The

ments

retail

and

must

work

trading depart¬

closely to¬
spirit of teamwork
so

gether that a
and harmony must be in evidence
at all times.

Each must utilize the




size
soon

invite

kets and
Trend
tance.

must

inquiry

and

a

the size

is

To

of

be

follow

he

will

trend

'8j7

.

of Condition

as

of September 30, 1952

i9«A
ASSETS

Cash

and

Due

Banks

from

LIABILITIES

....

U. S. Government Obligations.

.

.

$ 82,679,670

State and

.

.

Reserves

2,149,303

.

Municipal Securities

Cthf.r Securities

.

.

.......

Securities

Stock in Federal Reserve Bank
Bank Premises

.

$154,249,793

4,059,846

..........

(Includes Reserve for Dividend $288,548)

16,89 ,993

2,503,428

Capital

....

Surplus

.

$10,000,000

3,379,555

Loans and Advances
Real Estate Loans and

Deposits.

75,961,384

Cbligations of Other Federal
Agencies.

separate

functions

trust

.

.

.

........

1

.

.,

,

10,000,000

600,000

2,685,622

Undivided Profits

11,267,715

31,267,715

2,721,398

Other Assets

,$189,577,354

Total

Total

$189,577,354

$12,801,221 of United States Government Obligations are deposited to secure
$1,654,658 of Public Deposits and for other purposes required or permitted by law.

mar¬

(member federal deposit insurance corporation)

trade.

paramount

successful,

City Bank of New York for

administration of

trader

becomes known for his

Office: 22 William Street, New York

Affiliate of The National

n n / y,

Statement

liquidity of position
is of prime importance.
To buy
into a position where you could
suddenly find yourself without an
opportunity to sell should be
strictly avoided.
Maintaining a base position, scale
down buying, generally speaking,
should be avoided, whereas, buy¬
ing on a scale up is quite desir¬
able. In the first instance, the po¬

»

judicious

Head
fc

trading department.

lationship of complete cooperation true.
Losses should be
with its sales department. It must
quickly, but profitable
a,be on the alert to help stimulate should be allowed to run.
r

CITY BANK FARMERS TRUST COMPANY

To
obtain these objectives, certain
the financial basic principles of operation must

most.

capabilities

is

and

con¬

upper

Power Stook Offered

A

of

which

reduc¬

struction program, which includes
the
expansion and development

company

its

construction program.

is

This

$12,000,000 of

finance

a

tion in sales of electric energy at
wholesale.

upon the size
primary mar¬
into the hundreds

corporate .changes

are

depart¬

which

but obtained

Oregon

extend from a
firm doing a purely local business
to one who, through its wire sys¬

often, it

firms

many

refund

industrial customers and

these

dollars.

Coverage

is

very

.

great

used

is

to

loans

used

bank

company, there has been an In¬
crease
in sales to residential and

Again, dependent
of

Working in the over-the-counter
erly staffed, ably directed and ef¬
are
the trading depart¬
ficiently operated can be of major
of both'dealer firms and
importance to a firm in collateral
brokerage firms. The primary dif¬
advantages, as well as contribut¬
ference is that the dealer buys and
ing profitable productions.
sells for his own account, whereas
The actual running of positions
the broker buys and sells for the
and the making of primary mar¬
accounts of others, working on an
kets require close constant atten¬
agency
basis.
There are times,
tion. The exchange tape must be
when one assumes the role of the
watched at all times. Many trad¬
other, but the basic capacity under
ers pride themselves on being able
which they conduct their business
to "read the tape." That is, to be
is sharply defined.
able to ascertain by watching the
A trading
department can be
tape, which may the market is
operated in three ways. It can be
likely to move. Over-the-counter
maintained
solely to conduct a
security prices are very sympa¬
professional trading operation. It
thetic to stock exchange fluctua¬
can
be maintained simply as
a
tions.
service department for the sales
Financial columns must be close¬
and other departments of the firm,
ly read and corporation news must
or it can be a department which is
maintained and charged with both be digested continuously. The in¬
dividual corporation must be
responsibilities.
There are very few firms of any watched carefully for any pending
are

be

be

who

ments

purpose

the

of

the treasury

markets

the

$7,000,000

39

incorporated under the laws of the and three on tributaries in the
State of California. Its principal
immediate vicinity.
are
in Medford, Oregon.
syndicate jointly
will find it staffed with traders
headed by Blyth & Co., Inc. and The company is engaged in the
who are specialists in their own
the First Boston Corporation of¬ production,
transmission,
distri¬
Shields Adds to Staff
field.
fered publicly yesterday (Oct. 8) bution and sale of electricity in the
(Special to The Financial Chronicle)
Just
what
is
a
professional 250,000 shares of common stock of southern part of Oregon and the
LOS ANGELES, Calif. — John
trader? Broadly defined, he is one the California Oregon Power Co. northern part of California.
C.
Tanza
is now
with
Shields
who trades securities with banks, at a price of $26.35 per share.
Due to a continuing increase in
brokers and other dealers from a
Company,
510
West
Sixth
Proceeds from the sale of the the business activities and popula¬ &
base position which is maintained
common
stock, together with the tion in the areas served by the Street.
by the making of primary markets.
In each, ease, no

much

dreds.

Size that

at¬

can

are

field.

and transactions

new.

who

ment securities—others in railroad

underlying
companies are distributed, an ar¬
tem, completely covers the coun¬
bitrage is created by purchasing
try. Daily volume is tremendous
outstanding securities and selling
the

When the

tempt to trade from value

in

from

proposed sale
first mortgage
buyers are more aggressive, the bonds, 1982 series, which the com¬
price of a security rises, when the pany expects to offer at competi¬
sellers
are
more
aggressive, the tive bidding later this month, will
supply and demand.

only state, municipal and govern¬

new securities are

securities

where

divestment

or

benefits

greatest

from each individual's efforts.

kets

'

the

realize

to

(1351)

a

impor¬
trader

practically all
the time.
In trading, as in any
other business, there is only one

Chairman

oj the Board

W. Randolph Burgess

Vice-Chairman

of the Board

Lindsay Bradford

President
Richard S. Perkins

40

The Commercial and Financial Chronicle

(1352)

,

,

Thursday, October 9, 1952

.

%

Continued from page

occupying
a
land
of
natural vested in its business some $15 bil¬
wealth, lives in slavery, poverty lion in the same period and, I un¬
and fear.
derstand, plans to spend another

5

What

Government Ways
Of Attacking
of

toll

of them with¬

much with any one

basic

Profits

en¬

into

resources

and

economy

It is

so

free

so

a

fruitful

an

society?

freedom of enterprise,

our

the

115,000 casual-

than

more

which

factor

the

is

abled Americans to translate their

priceless ingredient of our so¬
ciety.
This freedom has let us
outproduce all others in the world.

four

in

billion

This

alone.

1952

capital expenditure is the reason
why the American oil industry is
able today to supply an American
market now consuming 48% more
motor fuel than in 1946. Here, as
often in the past,

so

American

en¬

ties.
the others.
terprise has accepted and met the
The second demand being made Even in the trial of war it has
the more important
challenge of new demands.
lift such times as these, when the upon our resources is the long- performed superbly without let¬
American
corporations,
last
effort of government
is toward range defense program. It is esti¬ ting the civilian economy suffer year, plowed back more than nine
mated by some authorities that it
unduly.
controlling selected parts of the
billion dollars from the amounts
will have cost more than $200 bil¬
Up to now our economic and they were allowed to keep from
economy. The trend toward more
lion by the end of 1954; and there
and more regulation of our essen¬
political order has survived war, their income, after taxes and ex¬
have
been
forecasts
that
even the threat of
war, and the com¬
tially free economy has been ex¬
penses.
Furthermore,
American
cused as being necessary to meet after that it may well continue to petition of totalitarian, socialistic
corporations last year raised an
cost us as much as $20 billion an¬ economies.
the many and abnormal situations
Invariably it has per¬ additional
$10 billion from the
which have confronted us in re¬ nually, even if there is no war. formed best when allowed to op¬
sale of stocks and bonds, and from
When you consider that the total
cent years.
erate with a minimum of restric¬
mortgages and loans. This was
money cost of World War II was tions.
Ill-advised
and
unneces¬
used to help pay for better and
Problems of "Garrison State"
about $330 billion, or less than
sary tampering can in time dry up
expanded facilities, thus improv¬
twice as much as our current de¬
its basic productive force, which
Today, for the first time, we are
ing products and creating new
fense program, you realize why
faced with the problems of a gar¬
is the incentive of profits. Profits
jobs.
rison state in peacetime. Because the burden of such a program is are not only the incentive to pro¬
These
immense
amounts
of
affect
our
lives
pro¬
of the indefinite duration of the bound to
duce, but they provide means for
money,
reinvested in American
defense period ahead, we have set foundly. These effects are already more production.
business, had to come from the
apparent.
up a state of semi-mobilization.
profits of business and investors,
The third huge claim upon our
Importance of Profits
Our nation is producing certain
mostly average citizens, who have
amounts of war materials, and resources and our efforts is related
Without
profits to turn back
confidence in the record of Amer¬
fighting a localized war, as well to the first and the second. It is into the economic system, it
our
world-wide program of eco¬ withers and weakens. Profits are ican business, past, present and
as maintaining a fair level of pro¬
out affecting

is

This

all

This is

duction for civilian use.

a

nomic and

unique situation for our country.

countries

It illustrates the new complexities

year

confronting

us

in

so-called

this

more
as

all

Meanwhile

of

spent annually for

our

Federal

Govern¬

allowing
dollars for the cheapening of the dollar
Federal non- that has occurred since then.

.to. this year

alone

on

defense activities. This reminds us
that

itself produces
nothing; it can only spend and use
up what its citizens produce indi¬
vidually and collectively. In the
last analysis, our ability as a na¬
tion to carry the burden of neces¬
sary defense and civilian needs,
m well as a vast category of pub¬
lic services whose necessity might
be questioned, rested upon our
ability to maintain a thriving,
productive civilian economy.
government

Three Enormous Jobs

We

are

asking

ourselves

and

country to do three enormous

Jobs:

arms

and

the

to

manpower

to

debate

dertakings, it

seems

they can be done
without weakening the very same
that

economy

we

expect

to

per¬

in

go on

tasks, as well as to do
workaday jobs that must

our

men

are

already

American

being killed in this war;
it has

taken

a

dreadful

machnery, build

new

develop

new

I

ing

can

be

plants,

products, create

new

about

specific by talk¬
Chrysler Corporation.

more

In

1951, alone, we added land,
buildings, equipment and tools to
operations

our

which

cost

$146

million. These improvements were
made to create better products,
more

sources.
a

land

the
any

of

material

is typical of the

company

as

life,

process,

which

greater

our

spells

productivity.

example at the end of 1945,
Chrysler
Corporation
operated

The Soviet Union

of

also is

immense resources, yet

Russian
lowest

people

exist

standard

great power.

of

under

living of

There

than 31 million square feet.
Put another way, Chrysler Cor¬

more

must

be

other reason why one peo¬
ple, occupying a land rich in raw
materials, becomes great and free
and dynamic while
another, also

poration since

the

end

War II has undertaken

of
a

World

program

to American

business,

that

we see

over

a

half billion

living, who buys the
of American firms or

products
who

unique material
opportunities

the

enjoys

benefits

the

and

American

that
made

enterprises

have

Profits

on

better way

our

of

getting things done. Controls
have already placed in govern¬
ment hands centrally many of the

help

exercised by individual business¬

each in his

men,

his

own

and at

way

time.

own

First

take

American

Last

taxes.

corporations

year

earned

$43 billion; more than $24

billion

of

by passing

on

to you

knowledge of all business in Puerto
ize in the

of credit




handling of collections and

our

Rico.

complete

We

special¬

commercial letter

to

come

these

earnings

two-thirds

were

This

evapo¬

each

of

com¬

tax

The

It

a

equal to al¬

sum

that

amount

its

in

any

its

paid to

One

upon

is

its

company

a

few

ablity

productivity.

to

after

year

basic
to

Rising

ductivity is the key to

the

money

back

more

in¬

Aibonito

Santurce

Caguas

Arecibo

Utuado

Cabo Rojo

Cayey

and

means a

chance to

that must

be

earn

poured

research, development
improvement. Controlled

Another
amount

of

pany can
more

Guayama

Aguirre

and

come,

related

factor

is

the

such

earnings a com¬
keep. If taxes wipe out
of

company's in¬
it is obvious that there is
more

51

Broadway, N. Y.

But,

Agencies
153 East 116 St., N. Y.

CAPITAL AND RESERVES
Over

notwithstanding the in¬
creased tax drain, American busi¬
ness is demonstrating its resource¬
fulness in doing a remarkable job
of making our production machine
bigger and better.
Government: Unseen Partner

$4,000,000.00

I

MEMBER

FEDERAL

DEPOSIT

INSURANCE

CORPORATION

market.

Many
Mr.

Only

handful

a

of these

Keller

because
order

to

failed,

properly

very

did

left.

are

companies

their

owners

says,

and

managers

not

realize

survive

and

that

in

they
had to plow back
earnings into
their companies.
They failed to
improve
their
facilities,
their
product

and

their

grow,

markets;

and

they went out of business.
In

those days, taxation did not
of the earnings they

them

could

have reinvested.

taxation

which

in

some

kind

and

of

today

actually
forego im¬

business to

a

should be

cannot

But

cases

advancements
made.

Even

management,

neering, production
forever

and

the

engi¬

marketing
such

overcome

a

handicap, imposed from outside.
Taxation, if carried far enough,
accomplish the

havoc

same

ignorance, inability and

were able to do
in the past.
I think of this when I remember
that almost three-fifths
of
our

country's

corporate

earnings

go

into Federal taxes.

Government's Stake in Profits
Government
stake

in

healthy

itself

the

has

profit

big

a

maintenance

situation

of

in

economy, if for no other
than for the
purpose of

a

our

reason

raising
bigger government
bigger its stake. No

taxes. And the

the

grows,

government

challenges

be

can

in

sound

size

the

which

economy

The effect of lower

am

when

year

the

Federal

estimated

that

profits would be at
most

govern¬

corporate
rate

a

of al¬

$52

billion, from which it
anticipated taxes of more than $31
billion. But—as

a

result of

numer¬

restrictions; price, credit and
production controls; as well as
burdensome

confident that businessmen

taxes—all

billion; and these yielded nearly
billions

less

profits
pay

less

mean

for

our

tive

service

mentioned

than

tax

which

our

to

on

the effec¬

business, which I
earlier,
and
under

system

the burden of

now

some

I do not think
our

money

of

labors, is

controls which
be justified

can

by

present state of emergency.
great difficulty facing the

The

controllers, which they have
yet

been

able

to

eliminate

not
no

matter how sincere
they may be,
is that all their decisions

affecting

a

future time cannot be
separated
a
considerable element of

from

guesswork; but those who control
an

economy must act nevertheless.
The leaders of the
biggest busi¬
nesses
in the world, who
have
have to

to continue this

which

bility for the successful manage¬

taxes

defense needs.

The other restraint

lifetimes

partner without responsi¬

in

expected. In our dual de¬
fense and civilian
economy, lower

never

growth, but they
finding it increasingly diffi¬
cult to do so as government—an

which

were

spent

are

of

government itself imposed—there
were taxable
earnings of only $43

will not shirk their responsibility

unseen

profits quickly

shows up on big government's bill
of fare. That became
apparent last

a

less and less to put back to work.
New York

retary of Defense, has said about
many hundreds of companies
that have appeared in the motor

into

and plant

Arroyo

board Chairman

our

the

seven

production stifles such growth.
San Juan

Keller,

now also Director of Guided
Missiles in the Office of the Sec¬

pro¬

better products for more people at

less cost. It

Rico

K. T.

and

ous

business,

product

depends

crease

Puerto

is

reinvest

factors.

Branches in

was nearly four
paid to our stock¬

Chrysler employees in 1951.

year,

Ponce, P. R.

matter how much they want to.
often think of something Mr.

ment

load

sum

improve

DANC0 DE PONGE

about $79 million.

most two-thirds of wages

may

financing.

I

American
companies,
including that is expected to sustain it. Big
Chrysler Corporation, shows that government, such as we have
now,
in 1951 Federal taxes alone, in has a fantastic
appetite. Earnings,
each case, took from more than in one form or
another, sustain it.

holders.

you

no

of decision that used to be

powers

they
com¬

shortsightedness
are

principal means of attacking
profits, and through them, the
whole structure of

Today,
happen to

panies that are not allowed to
reinvest enough of their
earnings

that only

two

times the
can

businesses.

wonder what will

could

possible.
Attacks

half

We

because they did not rein¬
enough of their earnings in

their

best

pany's earnings. At Chrysler, net
earnings after taxes, were about
$72 million. Federal taxes on in¬

DO YOU TRADE WITH PUERTO RICO?

failed
vest

works for

rated in taxes. A list of 24 major

The petroleum
industry has in-

today are con¬
by this situation. They see
plenty of examples of others who

compels

has been

dollars.

All businessmen

cerned

provements

a

itself

greater share of the
profits than a company itself may
keep.
a

It happens, directly
corporation.
or
indirectly to everyone who

about

expenditure of

of the company—cuts

for

it doesn't happen to some remote

of modernization and
expansion of
its facilities, a large part of which

completed, involving the

in

rob

look at what happens

we

Excessive taxes and controls

This sort of reinvestment in

For

re¬

When

turing efficiency.

The great spirit and power of
America are appreciated by every¬ ^with about 19 million square feet
one.
But they did not come from of plant floor
space; today we use

possession

promised.

jobs and greater manufac¬

growth and
Russia Has Huge Resources

new

jobs.

continuous

busy, complex life.

some

settle the Korean War.

hoarded. They are spent. They buy

such

the many

something withheld and

un¬

to be in order

to consider how

the

The first of these is to provide

attempting

the merits of these three vast

form

not

years ago, even

Without

mere

the

fiscal

current

than twenty billion

more

©ur

the

as was

cost

spending ment 20

are

we

For

alone this program will cost
than $6 billion. This is about

much

postwar world. We are living in a
state that is neither war nor peace.

military aid to foreign

ment

as

making decisions,
act

much

in

where wrong guesses
one

concern,

quick

to

others

move

in

matters

depends.
are

on

Even

made

usually

by
are

competitively,

Volume 176

Number 5158

.

.

The Commercial and

.

Financial Chronicle

(1353) 'if41
and

so

offset the damaging effects

that have repeatedly been discred¬

strange situation that

economy.

ited,

of

the

on

But

when

to

that

have repea^tfly failed
rewards inherent in

provide

us

tion

concerns

all

expect continued performance and

who realize that in propor¬
control becomes stifling,

improvement.

.

M. A.

Manley, Jr., Will
Manley, Bennett 6e.

,

Some people seem to have for¬
They want to as taxation moves from its rev¬ gotten that the core of our ma¬
by big government, there
substitute
a
are
no competitive forces within
reactionary society enue-producing function and be¬ terial strength is our free econ¬
the country great enough to offset for our modern, youthful, dynamic comes restrictive, the ability of omy. Let us remind them that we
DETROIT, Mich. — Manley,
the damage. And none of us can way. They peddle a modern brand our economy to perform is re¬ have not, and that we do not want Bennett
&
Co.
announced
that
of feudalism and call it by a new duced.
to face the dangers of the future Milton
escape the consequences.
A.
Manley, Jr. is now
name.
They deride our proved
with our strongest weapon dulled associated with their
If only inconvenience were in¬
Sales
DeWhat's the Answer?
way and call it old. And this myth
and
encumbered.
Let
us
be
partment alter
volved, the situation might be
has been swallowed by some of
Now, what can we do about it? vigilant that measures taken in
more
tolerable. One might even
spendinga
In fulfillment of our obligations
the same people who enjoy more
the
name
of
strengthening our
year with tbe
dismiss with a
smile such
an¬
under our society than they could as citizens, we can require of our
economy do not end up by making
firm's New
nouncements as this one from the
leaders that the retreat into the
hope for -under an.y other.
it weak.
York
cor¬
Office of Price
Stabilization. It
reaction of old, feudal systems of
One of the biggest
Our American
stumbling
way
of doing
respondent
stated that the office was
issuing blocks to attaining the rewards control and ruinous taxation be
things better has never failed us,
Baker, Weeks
Amendment 1 to Revision 1 to
halted.
We can demand that in
our way of doing things holds out
when given a chance.
Let's see
&
Harden.
Supplementary Regulation 15 to for us, is a lack of faith in it. Our these troubled times there be a that it
continues
to
While in New
get
that
Ceiling Price Regulation 22, al¬ enemies have done a
pretty fair moratorium on the government's chance.
York he took
lowing the price of horse meat
job of discrediting private enter¬ pouring out our substance.
special traiosold for dog food to
stay where it prise among the unthinking. They
As citizens aware of the
i n g
peril
covering
was!
have led some people to forget facing our nation and the fantas¬
all phases of
That somehow reminds me of a that our way of getting things tic demands
upon our resources,
the brokerage
certain doctor's diagnosis I heard done is the newest, youngest, most we can insist that our leaders ex¬
and investabout. His patient had a rash on dynamic
ercise
the
the
world
has
ever
utmost
prudence in
ment business

decisions

wrong

are

our

made

free

as

economy.

Norton P.

Rogers, Jr.

With Adams

his hand and asked the doctor to
examine it. The doctor looked at

it, thumped it, X-rayed it, put a
tissue
sample under the micro¬
scope, took the patient's tempera¬
ture and blood
pressure, sat off
and

stared

at

him, touched his
finger tips together, ahemed, and
finally said:
"Ever have

fore?"
>

rash like this be¬

a

"Yes, I did," answered the

pa¬

tient.

But

and

than any

other, for a given amount
effort put into it.
It has re¬
peatedly demonstrated that it can

the

control

our

labor it represents.
Above all, we can make it clear

Isn't

to
it

ironical

method of
has

ever

that

the

best

doing things the world

known

should

be

beset

by obstacles and hindrances mis¬
takenly imposed in an attempt to
it

do

even

more?

It

is

a

make

all

immense

our

that

announce

that it is our wonderful and fruit¬
ful enterprise economy that, in
carry
bigger loads and deliver the long run, best marshals our
higher
performance
than
any efforts and utilizes our resources

other.

Hinckley

NEWARK, N. J. — Adams
Hinckley, 24 Commerce Street,

and all the

money,

Jr.

became

nicipal

Norton

bond

P.

of

manager

sues.

of

as

and substitute

He has specialized in New Jersey

incentives

controls,

cannot

we

after

,

from

College

June

serving in the United
_

^

,

Edward

T.

Bennett

years.

are

at 1100 Buhl

has

inconvenience

perhaps,

more critical things than
merely mischief.
,

Dangers of Controlled Economy
controls

efforts to do

our

can

IN

job

our

THE

CITY

OF

CIEVEIAND

in defense and civilian
production.

The.y

freeze competition to

can

standstill by
tion
quotas

a

for

the

customers'

"votes" in the market place.
And
competition is basic to enterprise.
Sometimes restrictions get out of
hand.
Last winter, for instance,
the government experts were

sisting

that

-

there

was

a

in¬

grave

steel

I

shortage. At that very time,
was receiving calls from
presi¬

dents of steel companies who were

trying to sell
ler

more steel to

Corporation.-: Mills

ing

for

customers

creased

output of

steel.
the

I

look¬

were

for

their

some

reported

Chrys¬
in¬

types

of

fact

to

this

governmental author¬
These sincere men never¬

proper

ities.

theless

insisted that their

showed there
And

that

weeks

that.

It

figures

shortage.

was

before

many

the

truth

through the bureaucratic

machine

and

allotments

increased.

were

steel

was a

was

later

trickled

Much

of

steel

the

same

story could be told about the alu¬
minum and copper situations.
It is significant that some im¬

portant

labor

union

leaders

also worried about the

controlled

try.

in

economy

are

developing
our

Last winter the AFL

tive

coun¬
execu¬

council

expressed
concern
Controlled
Materials

the

over

Plan

because

it

has

controlled

practically all metal
and using industries.

producing

forecasts
defense
cil

of

least

at

prove

without

perience
the

in

most

If

10

official

coun¬

mean

a

training

private

of

years

correct, the

said, "this would

eration

gen¬

or

ex¬

enterprise

valuable

possession

—

of

nation."

our

The

rewards

to

their

immense.

our

us

in

operate

way

than

peace

for

us

half

a

any

chance to

and

to

way

can.

President, White Motor Company

methods,

Vice President, The Warner 8s Swasey Co.

"Attorney

RESOURCES

,

Frank M. Cobb

T. J.

(Less Reserves)

P

Director, Cleveland Electric Illuminating Co.

Conway

President, Fisher Brothers Co.

Frederick C. Crawford

Cash

on

Hand and Due from Banks

•

•

.

(Including $13,700,000.00

as

President, Thompson Products Company

Ernest C.

Other Investments

Dempsey

.

United States Government Obligations.

.

•.

$ 17,036,465.57
75,543,271.57

Lawful Reserve)

.

•

•

•

•

•

•

♦

33,038,867.49

.

.

.

91,022,725.30

Attorney, Squire, Sanders 8t Dempsey

First

George Durham

Mortgage Loans

on

Real Estate

President, Wheeling & Lake Erie Company

Other Loans and Discounts.

Randolph Eide

36,013,787.72

President, The Ohio Bell Telephone Company

Bank Premises—127 Public

Mervin B. France

Square

.

.

.

1.00

.

President

Bank

Dwight P. Joyce
President, The Glidden Company

Parking Lot—W. 3rd & Frankfort Ave.

Interest Accrued and Other Assets.

Frank C. Lewman

.

•

«

1.00

1,273,711.74

i

Chairman of the

Board,
Richman Brothers
Company

Total

.

.

.

......

$253,928,831.39

James L. Myers
President, The Cleveland Graphite Bronze Co.

Laurence II. Norton

LIABILITIES

Director, Columbia Transportation Company

Drake T.

Perry

Surplus

Secretary, Harshaw Chemical Co.

Henry S. Sherman

•

Reserve for

Chairman of the Board

Herman L. Vail

•

$ 15,000,000.00

.

Contingencies

.

.

2,802,962.22

.

Reserve for Taxes, Expenses, and Dividends

Attorney, Sayre, Vail & Steele

on

John S. Wilbur

Deposits

1,620,177.73

Company

Savings Deposits

Arthur P. Williamson
President, Dill Manufacturing Company

Other

225,012,767.88

.

(OIVR

Deposits

7,239,374.62

Deferred Credits and Other Liabilities

.

2,253,548.94

...

Total

$253,928,831.39

.

our

given

operate without
a

life of

abun¬

Security and Uninterrupted Dividends
Soriuty

doing things

old

1952

Irving C. Bolton
Harold T. Clark

security.

as

CONDITION

September

Robert F. Black

If

Value of Incentives

are

OF

win for

Yet the detractors want to sub¬
stitute other ways of
that

STATEMENT
Bicknell, Jr.

President, Cleveland Construction Co.

way

come,

maintained,

economic

shackles, promise
dance

must

more

other

be

proven

war

will do

can

unique

If

TRUSTEES
Warren

Vice President, Cleveland Cliffs Iron

awaiting

giving competitive enterprise and
its wonderful
technology a chance
are

Founded 1849

substituting produc¬

as

history,




ways

Six Generations

airing

to

of Savers

Sc*ce/S49

MEMBER

FEDERAL

DEPOSIT

INSURANCE

in

1932.

Building. ,; ~

the occasion of Jokes.
Much
come in its train
and,

Unreasonable

TT.

New officers of the organization,

mischief has

hamper

in

Rogers formerly was States Coast Guard. His new asRogers, Gordon & Co. and signment brings him to the firpa
recently with Rand & Co. founded by the senior Manley and)

municipal bonds for the past 25

these

■

State

graduated

-Mr.

If

remove

Jr.

1951

is-

head of

we

Manley
Michigan

New

revenue

takings possible. We can make it
plain that our way of doing things
was built by, and thrives
on, in¬
centives to perform and improve.

more

'

of Finance.

mu-

October 1st, to specialize in

under¬

'

'

Rogers,
the

department

Jersey municipal and

the /New
York Institute

at

doctor,

situation

than

more

spending

of

make

"Well," announced the
"you've got it again."*
;

lution.

:

.

meant

Our way is the real revo¬
It offers
more
rewards

known.

CORPORATION

42

The Commercial

(1334)

Continued

from

20

page

$6,960,700,000, leaving $6,414,300,-

do it better than do the

000

cure

for

public debt is

we

will

not

-

.

banks, the

but let

hostility or
in
improved

of life.

in

lie

.

Thursday, October 9, 1952

.

us

also

see

the larger issues

In this troubled transition

between

two great epochs in the
mankind, much of the ten¬
sion lies in the world of economics,
life of

to

Modern science is learning how and much of the confusion has
Thus in the
the actual retirement to see the unbelievably micro¬ been the result of the abandon¬
would be $73,893,400,000; $99,72-3,- scopic, but it is also learning how ment of sound basic principles. In
950,000 in the second decade; and to see the infinitely vast.
Both the economic world, thrift is an in¬
$61,379,650,000
in the last five are parts of the same orderly uni¬ dispensable ingredient of all prog¬
the twenty-fifth year.

first decade,

fluctuating figure

a

By

reduction.

year,

shifted

Left Us Extinguish
The National Debt
national output which, for the last

debt

these
would
have name calling but
$7,252,100,000 for debt service.
Conclusion
retirement, up to $12,342,200,000 in
fifth

four

aiyd Financial Chronicle

decades, has increased at the in the vicinity of $6 billion a year, years.
verse.
In our civilization and in ress.
In the promotion of thrift
rate of about 3% a year. It may it would require only a little over
It is not suggested that the entire our
particular calling, we must we have a high calling. Let us be
also measure the breathing spell $7!/a billion a year more than we
public debt be forthwith rewritten
deal
with
petty routine details; true to our calling.
granted us before the forces op- are now paying in order to ex¬
on
a
flat-rate amortization basis,
posed to us think they have suf- tinguish the entire national debt
but rather that its equivalent be
ficient strength to launch an all- in the next quarter century,
achieved by a definite, but rather
out war against us. Freedom from
Even allowing for a considersimple, program of annual debt Continued from first page
debt
would
constitute
a
great able variation in these figures, the retirements
and
refundings
to
reservoir of
defensive strength, problem does not seem impossible
which the present pattern of out¬
In broad outline, the retirement of solution of resolutely handled,
standing obligations would readily
of the debt can be reduced to an According to most responsible auconform. If some definite, work¬
understandable
and
relatively thorities, it would be possible to
able, long range program should
simple problem. It is difficult to save these extra few billions each be
have come to such a conclusion
long before 1950, and done
adopted to retire the pubilc
tell from government publications year
merely by the elimination of debt in
uniform, predetermined,
precisely what the Communists did, i.e., support, train
exactly what the net debt is or waste and without impairment of
annual payments, the tonic effect
and supply AsiansUo oppose other Asians whose activities
how fully collectible are the
iteihf joitir national defense or any es- on our entire economy would
we felt it
which partially .offset the gfosS sential Federal function. If every
necessary to suppress or "contain." Failure to,'
border
on
the
miraculous.
The
debt; and, of course, the gross Federal function which competes
do some such
thing—assuming that we are right in be¬
hope of devising and executing
and net debt are continually with private enterprise were to
such a program rests chiefly with
lieving that our destiny is to be found on the continent of
changing. But if it be assumed make fairly competitive charges
the bankers
of the nation. The
Asia—is what has cost many,
many American lives, to say
(1) that the net debt to be retired fojr services
rendered
or
cornlong range value of such a con¬
is an even $235 billion, which may modities sold; if moneys loaned
nothing of vast American treasure.
tribution to the public welfare can
be approximately correct at
pres- should be loaned at fairly comscarcely be overestimated.
Broader Implications
ent, and if it be assumed (2) that petitive interest rates; if grants,

We It
See

As

the

is

debt

to

be

retired

by

special privileges
generally be made
self-liquidating,
these
increased
duction mortgage, and if it be as- revenues alone
might retire the
sumed (3) that the overall inter- public
debt, stimulate private enest
rate
throughout the entire terprise, and permit reduction in
period be computed at 3% a year, taxation.
then, on the basis of those assumpBy analogy with a 25-year ditions, an annual payment of $13,- rect reduction mortgage at 3%,
375,000,000 would retire the debt and if the net debt be assumed to

program comparable to the
tization

of

25-year

a

in

25 years
including
costs. If the overall

subsidies,

a

should

amor-

direct

all interest be

billion, the total annual
payment for interest and prin-

interest be
calculated at 2%%, the cost would
be

$12,651,000,000

current

cost

a

$235

cipal, as previously stated, would
As the be $13,375,000,000 a year. In the
on
the first year, the interest would cost

year.

interest

of

and

Thrift Education and Public

more

All this is

important enough in its own right. There
throughout the length and breadthof this land, Americans are critical of what has been
taking
place in Korea- and more and more critical of the author¬
ities responsible for this basic blunder.

Relations

re-

Thus

far,'this discussion has

re¬

ferred to broad subjects in which
the

individual

take

but

thrift

banker

can

small

part; but right
his doorstep is the opportunity
spread
economic
education

on

to

a

v

But the essential doctrine enunciated in the tw©
para¬

graphs quoted is at bottom identical with muchf which
may be said, Tndeed wfiich" mpst be said, of our^ourse'
in other parts of the world.
It is as true in Europe andanywhere else, on the globe as in Asia that if the peoples,

throughout the length and breadth
of

democracy.

our

economic

need

No

exists.

economic service

Every thrift banker
the

front-line

greater

No

greater

be rendered.

can

in

serve

can

trenches

themselves have

that

in

be aroused to their

BANCO CENTRAL DE VENEZUELA

is

need

constant

a

public to have in

confidence of which

(CENTRAL BANK OF VENEZUELA)

Every time

we are

that

us

all

banking

as

of June 30, 1952
Dolares

ASSETS

Bolivares

Bs3.35 per

a

controversy

at

holds

threat

the

harm.

There

a

time

present

universal

of

is.need for restraint

sides.

both

on

the

'■

J

hand:

on

Gold

125,084,197.62

Gold in bars

Other Cash
Gold

in

the

bars

(earmarked)

Federal

Reserve

779,676,534.30

37,338,566.45
232,739.263.95

37,312,426.97

11,138,037.90

,'T-;;

nearly

cejitury, local build¬

Demand

236,059,764.20

deposits

in

70,465,601.25

or spurned by
banking institutions; These

Foreign

Banks

182,937,973.67
27,754,600.00
2,457,120.00
5,000,000.00
.5,330,128.18

Investments
Venezuelan banks

Unpaid shares of the Capital...,
Bank premises
Other Assets

54,608,350.36
8,284,955.22
733,468.66

1,492,537.31
1,591,083.05

323,659.44

96,614.76

336,813,929.70

100,541,471.56

Bsl,738,750,334.08

519,029,950.47

Offset Accounts

LIABILITIES

*./

Treasury Agency

Reserved for Dividends

865,576,740.00

258,381,116.42

235,875,097.18

70,410,476.77

for

*

of

175,000.00

52,238.81

They

18,645.37

work

•

4,77,732.10

142,606.60

5,000,000.00
5,000,000.00'

paid

Reserves

8.007,220.32

Other Liabilities Accounts

(Memoranda)

reserve

other
ratio

in

connection

obligations
between

lation

at

the

on

(Art.

have

whose

hand

and

the

is

the

law)

bank

notes

in

on

hand, plus

nection
bank

with

notes

and less
obligations at sight, in con¬
foreign banks, namely in connection with the

circulation

.
^




too

some

any

GORRONDONA, h.

Manager

midst.

restraint

w

h

the
o s e

in

bump¬
actions'

frequently been both
or

a

not, the evidence

to

indicate that they

difficult

years

failure

are

ahead,

and

their

part

on
as

well

other thrift institutions.

If

as

we

genuine

cooperation,

worst of the friction

nated

and

-

-

can

all

can

the

be elimi¬

sounder

-

exploitation by Western ]

fertilized

the

soil

for

the

—

least

sub¬

a

to defend themselves

the.

to

But what of

a

European ventures? Obviously
parallel is to be found, but is there not an underour

-;

>
\

1

In Europe

To the best of official

judgment, the powers of West¬
Europe faced a deadly danger from the East. Very
few, if any, of these countries were convinced, or even
ern

today are fully convinced, of the validity of cur view of
these matters.
Substantial elements had adopted the no¬
tions of the Kremlin. Others were much
disposed to the
view that in any event we were
bed when we worried about the

Russian

domain

toward

nearly all of them,
soon

arrived at the

seeing things under the
possible extension of the

the West.

All

of them,

or

very

of war and dispirited. We i
opinion that we had to "save" Europe
ourselves—just as we ultimately con- -

were weary

,

in order to defend

eluded that
defend

our

had

we
own

to

"save"

South Korea

in

order

to

shores.

Hostilities, .of

European
not

system

area.

course,

have

not

broken

out

in

We have; troops in Europe, but they

engaged in bloody battles

side of the

globe, but they

are

as

they

are

in that theatre
in Asia.

or

the.

during the past

year or

we

aim

the other
num¬

another to do

just about what their compatriots

.Meanwhile, although

prepare

on

there in appreciable

bers, and may be called upon atone time

to
a

of

and

we

accu¬

permanent part of our na¬
thrift system.
They face

serious

Communist-

lying kinship between the attitudes we have adopted in I
Europe and those of Asia? Have we not found ourselves j
in a position in a number of countries which differs
only
in degree?

un¬

Whether

151 40%

JUAN JOSE CARVALLO
Accountant

J. J. GONZALEZ

shown

sound and unethical.

offer

CARLOS MEND02A
President

their

would hurt all banks

deposits

the

in

have

circu-

131.79%

tried

often been annoying and
competitive activities have

tional
91.72%

have

the

if Asians could mot be aroused—at

so

mulates

of

in

youngsters

519,029,950.47

58

who

and

economically im¬

tious

1,492,537.31

circulation and

the

attitude toward

Bsl,738,750,334.08
in

leaders

their

like it

notes

of sound

still at work, and their
is showing results.

country

all

per¬

complex.
however, it

core

zealots

100,541,471.56

the bank

combined

are

1,492,537.31

2,390,215.02
18,193,075.31

a

general, the bankers of the

to be
with

sight

gold

mature

new

crusading

inception,

restrain

the

and

centuries

portion of them

exact

no

the
the

to have started out

solid

a

patriotic
to

60,946,802.30
336,813,929.70

.

Accounts..

and

its

has had

61,405.362.79

.

cooperate in
what ' became

something of

In

Entered in cash

Offset

seems

From

205,707,965.37

gold

to
of

forthcoming,

system

561,092.06

62,462.00

Conversion

not

ally

3,948,575.14

Capital:

Gold

cultivated

their will.

'

Federal Home Loan Bank system.
That cooperation was not gener¬

1,879,658.40

in bars

Quota

formation

13,227,726.71

National Coffee Fund..
Reserve

institutions

secution

Deposits
Manager's checks
Foreign Correspondents

The

even

had

were

with

Bank notes issued

National

largely small, local groups;
and during the .great depression,
their mortality was g r e a t. ■ To
strengthen the system, President
Hoover urged the regular banking

of

point where they viewed
Communist conquest with equanimity, we undertake a
costly and doubtful venture in trying to save them against
.

New York

Leral

and

powers

death, if they had reached

fields neglected

other

of

a

"fanatical" followers

were

decades

stantial

ing and loaA{ ^associations have
performed notable public service
in

with

Bank

For

do

growth of belief in communistic dogmas.

Building and Loan Associations

coins

own

afford to

and

Yet

Cash

fending off tyrannous im¬
called) and if they can not

name

fully under the thumb of the Kremlin; that
they were organized, armed and trained by emissaries
from Moscow. There was and there is a
very substantial
element of truth; in all this, and it is further true that

of ' the

regardless

merits of the participants. Such

can

war

"line"

banking
aired in public,

are

we

rean

worthy.

they weaken public confidence in

VENEZUELA

Statement of Conditions

that

internal

our

controversies

CARACAS

make

to

our
banking system worthy of
public confidence and then to edu¬

cate the

interest in

(dangers, there is not very muclm
to shape the destinies of such
careless, neglectful or indolent peoples. It is commonly
said that the North Koreans in earlier
stages of the Ko¬

Refining the point still further,
there

no

perialism (by whatever

1

battle.

little wonder that

is

are

doing

have been hard at work

,

two trying to persuade Europeans J

themselves for the dangers

we

think

we

see

achieved.. In any event, the public

facing them—and thanks: to the work of General Eisen-

will be served; and if the Federals

hower considerable
progress appears to

have been made—

^

Volume 176

Number 5158

;

.The Commercial and Financial
Chronicle

.

(1355)

ourselves

we

burden.

are

carrying

•

;

large part of the total

a very

-

might well ask whether there

situation in which

a

of

defense

of

active attack
matic.

is much

undertake to carry the burden
the world against possible

we

by the Kremlin. The question is not

human emotions
asked about the

the

as

one

come

whether all of
with

which candidate Eisenhower

fighting and the dying in Korea, but the

all

so-called Allies

We

well ask

may

are

really playing fair
hear it said that
they

impoverished from World War II, and to hear

their

that

our

Of course, it is usual to

us.

still

dra¬

so

close to the natural

so

question has real point nonetheless.

are

in

reason

virtually all

does the situation

nor

troubles

they

and

tribulations

enumerated

to

prove

doing their part.
The fact remains that
judged by most ordinary stand¬
ards, many of these peoples have not
really gone to work
are

since 1945 to rebuild and to
refurbish their economic lives.
An exception is said to exist in

"Western

real

in economic

progress

achieved, by

Germany where

is sa'd to have been

recovery

of the good old-fashioned method of
hard and
intelligent application of energy and initiative.
means

But what of several of the others?
In

broad but very real sense we are
front lines in areas other than Korea.
Must

manning the
continue

we

Using coal as a fuel, these
steam-powered plants will con¬
estimated 16 million tons

an

of coal

a

year.

Other

roads

making every
huge coalfreight volume, and will, too. But
C. & E.'I. confidently
anticipates
getting at least 25%, and likely
more, of it.
Not only are these
plants practically on its lines (C.
to share

Southern Illinois mines to be
fully
competitive for the available coal

business, C. & E. I.'s anticipation
is justified.

Foreseeing the great industrial
likely to spring up

high-earning

Only

234%

estimated
all

cover

also, in 1953.)

Gross

of

for

shares

common

1952

is

Revenues

required

to

Fixed

Charges of about
*:$995,000, and only 2% more to
m e e t
all
contingent
interest
charges of about $622,250.

this

in the

-

but

siead-

Credit

col¬

of

this

new

car

own¬

ership.
Over
on

$9 million

is

being spent

loading yards and equip¬
This includes a
$500,000, 16-

new

ment.

New Efficiency of Operations

Rents, now
million an¬

instead of the Debit
column,

a/result

tra'ck

freight-classification

yard
at Evansville,
enabling C. & E. I.
to triple
the amount of freight

Expense saving and new revenue
producing facilities have sharply
Towered the Transportation Ratio
previously handled at this impor¬
in recent
years, making C. & E. I. tant point. Also included are coalClass

well

1

railroad

in

as

in

quality as
Nearly $37 mil-

name.

ilion

was
expended for Additions
Betterments
during the last
years.
Since 1945, Cash Ex¬

-&

five

penditures alone approximated $20
^million, or the equivalent of well
$45

•over

a

common

Included
,

locomotives

share.
Diesel

100%

that C. & E. I. is

so

Dieselized

affording
savings.
For
^example, a 6000-hp. engine costs
.about $600,000. If written off unlarge

•

der

operational

routine

a

.annual

15-year

amortization

schedule,
would

be

,$40,000. On a five-year amortiza¬
tion, under Certificate of Neces¬
sity, annual amortization is $120,000.

Based

50% corporate tax

on a

rate, the saving is 50% of the in¬
creased amortization of

$40,000

yearly—or

$80,000,

$200,000

or

(Note:

cost

estimates

realize

from

amortization

chased,
fax
mately S234
annually.)
mated

of

Standard

—

Poor's

the

to

the

C.

&

E.

and

I.

&

will

benefits

As

approxi¬
Common Share

Diesels

for

pay

esti¬

are

themselves

in

"four years through their extraor.

dinary efficiency the above calcu¬
lation shows they can
actually re¬
turn

their

.in three

that, in

investment

cost

It should be noted

1949, when only 70%

'train-miles
*sel

entire

years:

power,

of

handled by Die-

were

costs

were

$1.02

per

-mile, while steam-engine operat¬
ing costs

were

$1.52

per

mile.

all

,

freight

hopper
per

coal

1,000

straight

-

cars,

cars.

such

alone,
particularly

Amortization

coal

cars,' on
a
schedule-" would

15-year

amount to around

$550,600cr

year,

but C. & E. I. expects to
get $875,000 net out of them.
Of

course,

Net

Debits

for

freight-car




hire,

share

with

would be worth 96% plus a

premium,

pool

power

world, C. & E. I. has bought
acreage

waterfront,

along
the
best
natural

expect

times

such

If C. & E. I. winds
earnings

common
*

in

a

1953!

Because

Joppa,

of

This

for

market

of

more

these

to

Co.

other

of

America,

chemical
are

and

and

ca¬

an

will

to

now

C.

port to C. & E. I. volume

bond is

convertible into 41.08

now

iron

advertising agency some 37
ago, after filling an earlier
assignment with the "Wall Street
Journal."
founder

shares

common

currently selling
under 18, or .about three points
under conversion
parity.
Obvi¬
ously, if the stock moves toward
the

30-level,
with

the

the

a

for

of

move

each

Common.

high,

bonds

will

At

23%, the 1951

example,

the

bonds

total

coal

2,835,643 tons,
$4,086,583 Gross

was

Revenue.

Indiana's

with

Profit

Margin

Area,

12 miles south

There

C.

analysts

estimate

Available

for

Should

Gross

reach

million plus,
(vs. $33,659,000

Revenues

$35

the "Available" would
on

only

Fixed

in

seems

in

1951)

equal

15%

a

1952

as

$5V4
basis!

This would be equivalent to
$8.50
per
mon

ing

"A"

share, and $6

per Com¬
(In 1950, on Operat¬
Revenues of $30,577,220, the

share.

"Available"

tically

was

15%.

$4,571,197,

This

profitable year, up
&

E.

I.'s

trend of

Net,

prac¬

the

was

most

to then, in C.

100-year

history!) The
revenues, both Gross and

clearly
at

is

the

holds

Co.,
650
Spring Street, members of
the Los Angeles Stock
Exchange.

&

E.

I.

of

Main

Chicago.

envisages

a

COMPANY

Office, 37 Broad Street

tre¬
a

business expansion, and
large acreage available for

,y

•_

•

.

•

.

'

CONDENSED

STATEMENT

cate

there.

Victor

Chemical

OF

is

CONDITION

among

from

of

this

September 30,1952

RESOURCES

area's

freight

year—besides

a

in land values

an

State and

Trend

«

•

•

'•

•

•

•

•

Municipal Securities

Other Securities

"Seasonal

$128,865,104.23

.

toward

hivhest

mainte¬

level

in

a

of

7,911,572.14

......

Loans and Discounts

.

....

F. H. A. Insured Loans and

Customers' Liability for

ization

$2.26

Situation Characteristics
is

above, this equals

"A" share, and $1.17 per
Common Share in 1951 vs. $1.48
per "A" share, and 44c per Com¬
share

C. &

a

in

stretch

of

E. I. has established

Seasonal

Mortgages

Other Assets....

t

•

2,872,477.94
901,500.00

.

•

#

0

•

•

•

2,422,377.79

664,458.32

.

•

•

307,147.58

$525,065,094.42

well-

of

LIABILITIES

earnings, whereby Net Operating
Income

is earned,

by quarters, as
follows: 1st Q., 21% 2nd Q., Minus
8%; 3rd Q., 28%; 4th Q., 59%.
For example, in 1951, C. & E. I.'s
lst-half earnings per share, 44c,^

compared with 2nd-half earnings
of
$2.01, or about
17%%
and
82 % %
respectively, of full-year

showing.

If

1952's

2nd-half

fol¬

Capital

$13,234,375.00

........

Surplus.

16,815,625.00

.

30,050,000.00
Undivided Profits

10,918,030.83

Unearned Discount

378,125.00
•

♦

•

Reserved for Interest,Taxes, Contingencies

this

Deposits

seems

more

than

likely),

then

we

half

earnings of $1.17 per Com¬
share, another $4.60 to $5.40,

a

may

bears

Acceptances

1,948,236.70
5,488,424.27

$4,272,722.76

Less: Own in Portfolio

.

1,114,207.62

Other Liabilities
•

•

•

3,158,515.14

.

747,203.23

•

472,376,559.25

expect to add to lst-

total between $5.77 and $6.57.

(This

$40,968,030.83

Dividend Payable October 1,1952

lows
this
pattern
(and
with
higher freight rates in effect from
May 2 on, with steel mills again
in full production, and with the
new
coal
stock-piling
freight
movement now getting into swing,

out

the

rough

mate under "Gross Profit

esti¬

Margin,"

$525,065,094.42
United States

$19,412,838.59

are

Government Securities carried at

pledged to

and for other purposes as

public and trust deposits,
required or permitted by law.

secure

"kick? in the C. & E. I. above.)
the

.great

electric

Price

en¬

MEMBER: N. Y. CLEARING HOUSE ASSOCIATION

Prospects

pool

group

Accrued Interest Receivable

266,936,514.26
3,589,991.11

Acceptances

years,
a

Trend

being built by TVA at
Rock
Island,
Illinois
Central,
Shawnee, near.Chiles, Ky, and by
and Southern Railway, as exam¬
Electric
Energy, Inc. at Joppa
(the latter is m subsidiary of a ples, are all earnirf $1 or slightly

ergy

•

1951.

long

recognizable

for

•

•y,

picture

shown

per

81,392,059.73
29,201,891.32

Earnings" Factor

mon

'

•

in¬

through the

For the first six months of 1952,
Net
Income
(after
all
charges

basis.

The big

associated

&

private industries wishing to lo¬

century of operations, with sizable
gains envisaged from the present

Special

become
Miller

of NEW YORK

mendous

Over

Charges is headed for the 20%
level, over the next few years.

million

has

Revel

South

AND TRUST

coal-powered elec¬

new

tric-generating plan- near Terre
Haute, Ind.; to be ^grved by C. &
E.
I., and the Chicago Heights

mon

likely,

ANGELES, Calif.—Francis

Pruitt

Banking Houses

Income

city.

LOS
J.

in

move

peak-volume

year,

of pUbhiT'utility companies

also

With Revel Miller

Stock of the Federal Reserve Bank

Competent

was

Governor

(Special to The Financial Chronicle)

re¬

four

over

1-point

Other revenue-producing devel¬
opments include Public Service of

year to the steam-power prior to the equities) was
$866,000
being built at Joppa, and vs. $566,000 in 1951's 1st half.
beyond, by barges.
In
1950, a Based on present share-capital¬

the

Harvey
former

of the Downtown Athletic Club of

this

plants

Gross

Mr.
and

the

over

a

produced

for

next several years.

&

handle

fa¬

Street

known

to point out, the addi¬
freight tonnage such plants

The

shipment of at least 4 million tons

which

a

issues

these.

among

its heavy

facilities,

able

freight moved

the

will develop, will be of much im¬

continuous requirements.
be

because

Wall

was

a

Each

Cash and Due from Banks

will

fine

powerful speculative appeal.

U. S. Government Securities

Through

A

who

years

thorities believe, up to 120,000 cars

for

The C. & E. I. situation is

that

their

their

market

new

likely

close to 100.

or

vorite of mine

convertibility
feature, the Income 5% Bonds,
selling around $840 per bond, hold

spond

large industrial
build plants there.

leasing operations.

of coal

$6

along the Ohio and Ten¬

fields

I.

of

toward the semi-investment yield
level of around 6%, indicating a

points for

to

Valley Authority turns to Illinois

E.

6

better, it would be logi¬ discussed appeal strongly to all
a price at least five types of
investors, whether inter¬
earnings, or 30-plus ested primarily in income
yield,
for the Common Stock. As for the
or capital
gains, or in a combina¬
"A" stock, which appears
likely tion of both.
to see its $2-dividend requirement
covered by earnings of at least
H. St, John Harvey
$8.50 a share, it should
move
cal to

harbor in the area; and will lease

crease

and

to

or

portions of it

increase steadily as the Tennessee
coal

5%

fast-growing in¬
dustrialization would provide, au¬

Rivers.

nessee

nance

Other A's and B's

"To protect an increase in traf¬
fic now developing," C. & E. I. has
also bought, during 1951-52

2,500

at

adjacent to C. & E. I. lines,

unlimited

engine.

rapid,
five-year,
on
equipment pur¬
per

facilities

over

Statistics

1952

up

69; 73%; and 67
around

of

The five-year
period, equivalent to
one-third

or

companies moving in — it
transferring over 10,000 has just bought 30 acreas for a fac¬
tons of coal daily from rail-cars
tory which is expected to produce
to river barges. Now in
operation, 6,500 cars of freight per month.
this permits coal operators
along The potential increase of traffic
pable

coal

electric

(replacing 145 steam

vlocomotives)
.now

89

are

handling

greatest

Substantial

tional

Facility
costing well over $iy4
nually, will gradually
ily move toward the
as

were

Needless

and for Joint

umn

highs

respectively,

times earnings.

.

-alloys companies

Security I like Best

in line for dividends

in this

Barge delivery which will enable

various

the

are

cent

personality,
his probity
price around 35 vs. present 22%, and sturdy convictions, Hamilton
or
over
55% higher, while pro¬ St. John Harvey, passed
away last
ducing a 9% yield to. present buy¬ Monday
at
his
home
in
East
ers.
These expectations are not
Orange, N. J., at the age of 74.
out of line, as C. & E. I.'s 1952
Mr.
per¬
Harvey was Vice-President
Albert Frank-Guenther Law,
& E. I. is the only road now serv¬ formance is outstripping the Class of
1 average, and dividend
prospects
Inc.,
131
Cedar Street, this city,
ing Joppa) but in consideration of
are held out for the
a special freight-rate for Rail-andhigh-earning having started his connection with
effort

companies

*4; and placing

to

York."

sume

Aluminum

current price of 22

area)

tremendous

with "as much electrical energy as
is used in the whole
City of New

Joppa

Continued from page 2

The

the

Energy Corp. proj¬
ects now being
completed there.
Tennessee
Valley
Authority
is
committed to supply A. E. C.
here,

around

j

.

general
to

development

a

to do so?

this
power

Atomic

new

Must We?
We

serving
supply

43

more

per

share

per

month.

Re¬

FEDERAL

RESERVE SYSTEM

FEDERAL DEPOSIT INSURANCE CORPORATION

26 Offices Located

Throughout Greater New York

44

The Cov->.

(1356)

rcUt and Fluincial Chronicle

under

Continued from first page

Bank and Insurance Stocks
5

By II.

This Week

—

The

ABA Holds 78th

and

of Fire Prevention Week on

marks observance

a

nationwide

basis.
The period is important as it serves to direct
public attention to the yearly loss of life and property through

destruction

the

foreign aid hoping to ease the
strain, to stimulate recovery, and
help build the defenses of the

to

leading organizations in the country devoted to

fire prevention is the National Board of Fire Underwriters. This
is an association sponsored by the fire insurance companies.
As
such institutions must pay

or

pre¬

spite of the intensive effort of the National Board and the

modernization of fire equipment over the past several years de¬
struction by fire appears headed for another record total in 1952.
For the first eight months of the current year fire losses as
estimated by the National Board of Fire Underwriters amount to

$522,790,000 as against $495,077,000 in the similar period of 1951.
a gain of 5.6%,
•

This is

following gentlemen

chosen

tion

Presidents

as

Divisions

the

and

Section

four

Associa¬

annual

at

were

the

of

State

held in connection

meetings

with the

Con¬

vention:

the losses resulting from fire destruc¬

tion, it is logical that they should be active in reducing
venting losses through such an organization.

great progress has been
of produc¬

While

The

made in the restoration

National

Bank,

Division

T.

—

Glenn, Jr., President, Peo¬
ples National Bank, Norristown,
Pennsylvania.
Savings and Mortgage Division

rities

our

achieved
can

System
flex¬

more

other

securities

flexibility

as

permits

use of the traditional pow¬
of the Federal Reserve System

ers

through
and

market

open

operations

the rediscount rate.

Excess
Taxation

dis¬

somewhat

been

Profits

of

Tax

so-called

"excess

The

economies which

sound

forward without our con¬

go

a

mutual defense profits" is a most harmful method
of raising money for government
has moved slowly. Few
use.
It is impossible to create a
partner countries have

program
of

for

well. .This

of our ef¬

results

the

have

Reserve

allowed

and

living standards of people in many
forts

appointing.

Allen

of the

tion and the improvement

countries,

Federal

has

ible market for government secu¬

greater

New Division Presidents

people about their individual responsbility to cooperate with civic
or minimize the loss by fire.
of

William

free countries.

all

organizations in the effort to prevent

In

B. Gladney,
President of the Fidelity National
Bank of Baton Rouge, La.

Treasurer,

by fire.

In addition it helps to create an awareness on the part of

One

the

which

\

This week

Treasury and the Federal
Reserve System

We commend progress made in
cooperation between the Treasury

Annual Convention

Insurance Stocks

great Constitution and
Rights.

our

the Bill of

JOHNSON

E.

Thursday, October 9, 1952

;.

.

law for the collection of such taxes

that

all concerned

interest. ^Taking
profits* calculated in some ar¬

of

—Wendell T. Burns,

will be fair to

in the public

or

tinued aid.

Senior ViceThe greatest obstacles have been
bitrary fashion as "excess" from
President, Northwestern National political — to persuade people to
business has two serious effects:
Bank • of Minneapolis,
Minneap¬ resist excessive public and private
(1) it induces carelessness in ex¬
olis, Minnesota.
spending, to balance their budgets,
penditures and so increases costs
to
keep
their
currencies and stimulates
State Bank Division
B. M. and
inflation, and (2)
Harris, President, Yellowstone sound.
it handicaps business in building
Banks,
Columbus
and
Laurel,
Unfortunately the United States capital needed for further produc¬
—

Should this percentage increase be maintained over the
four months losses

for

total

of $771,350,000
$731,405,000.

the full

compared

next

would reach a new record
the record of last year of

year

with

Montana.
Trust

'

However, it should be remembered that this is the time of
year when,
because of the heating season, fire losses start to
increase

on

a

seasonal basis and it could

easily be that losses for

the
so

remaining months will be higher than the 5.6% gain recorded
far. Also, there is the
possibility, though not the likelihood, of
major catastrophy which could contribute to the loss total

some

before the end of the year.

Regardless of this, however, losses are expected to continue
above a year ago with a new record established for the
period.

Senior Vice-President, The
Pennsylvania Company for Bank¬
ing and Trusts, Philadelphia, Pa.
son,

State

January
February

1951

$74,155,000

$68,686,000
69,136,000
71,507,000
62,965,000
58,744,000
56,403,000
52,220,000
55,416,000

69,925,000

March

72,254,000
67,380,000
62,354,000
58,585,000
61,675,000
56,462,000

April

May
June

July
August

—

Eight Months
September

$522,790,000

December
Twelve Months
Fire

losses

taking place

$731,405,000

reflect

the

increases

in

office and

a

of

its

its

Adminis¬

in

executive

staff

new

a

shift in the titles and

Harold

Stonier,

Executive

tures.

A

penditures is of necessity for de¬
fense. The
common
goal of all
loyal Americans is freedom in a
decent world. So ardently do we
cherish

of

Manager

the

our

for

it.

and

at

health

or

clearly

confronts

that we have
willingness to

goal

life

out

stance

look

Deputy

that

shown

often

mood

a

We must balance
through the curtail¬
governmental expendi¬
major part of our ex¬

way.

of

been

man,

can

the

same

at

which
by pouring out

jeopardize the

66,820,000

ager; and Henry M. Sommers, As¬

$688,460,000
have

been

As the cost of replace¬

ment, which is the basic insurance contract, rises, the value of
property destroyed by fire also gains even though the number of

we can

sistant General Counsel, has been

goal for which
we strive. The struggle which con¬
fronts us may be a long one and

given the title and duties of Sec¬

for

retary.

will continue

He

sistant General Counsel
Under his

As¬

as

well.

as

title, Dr. Stonier

new

will be "the chief staff officer

re¬

its

serves

later

very

phases we need re¬

of strength. Wasteful mili¬

tary expenditures will lessen the

military

potential

For

reason

this

of

our

the future.
military ex¬

We
and

to

the

practices

or

misled through

advertising

or

tinue

the ?ace of these figures, it

L.

may

be

difficult to

see

how

fire lines this year will show
any underwriting improvement over
•1951. However, the
larger losses have been accompanied by some
gam m premiums so that this increased
volume acts as an off-

fsettmg factor.

Nevertheless, it may be difficult, unless losses moderate in the
remaining months of' 1952, for most companies to show
as favorjable an underwriting experience as last year.
1

{
This is significant because the fire
underwriting lines account
for close to 50% of the normal
business of fire and
casualty com¬
panies.
For this reason it will be a
major determinant of the
general underwriting results for the current period.

J#

For

most

companies

fire

(contributor to earnings in
(the other
drain

on

.recent

the last several

years.

lines, notably automobile, have been
earnings, the fire business has been

increases

narrow

underwriting has been

in

costs

it

is

still

significantly, however, it

While

major
of

some

problem and

a

a

likely that

rate

some

In

director

of

The

his

of

post

new

The need for

Executive

the

Association

which

of

been the director

since

has

he

of

Secretary to those of Assistant

General

which

Counsel,

he

in

full

(Special

City

Bank Stocks !
September 30, 1952

BEVERLY
B.

Larson

.with

text,

are

of the important resolu¬
adopted by the Associa¬

on

Request

Laird, Bissell & Meeds
Members New York Stock
Exchange

Members New York Curb
Exchange
120

BROADWAY,

NEW YORK 5, N. Y.

Telephone: BArclay 7-3500
Teletype—NY 1-1248-49

BeU

(L. A. Gibbs, Manager
Trading Dept.)
j
Specialists in Bank Stocks




York and
Stock Exchanges.

substantial

398
of

Angeles

Wagenseller Firm

in

Convention

Hall

on

Calif. —Wal¬

Wagenseller

&

now

the

United

the way

present

Conditions

and

Foreign

Policy
The

with

Durst, Inc., 626
South Spring
Street, members of
the Los Angeles Stock
Exchange.

partly in

and

civilian

of

we

in

have

ap¬

defense

the

take
operations. Big
partly

to

government is unmanageable and

inevitably

leads

to

differences

our

banking institutions.

Inequitable
distributes

taxation

the

to

including

corporations,
institutions.
is

the

One

profits tax
Equity

be

can

all

on

causes

against

The strain has been the greatest
of
unwise
and
unsound

covery

policies

Sound

in.

many

econom'*

re¬

has been impeded and

cur¬

rencies have been

of

country

source

countries.

One

corruption.

inflated.

The United States has spent bil¬
lions and billions of dollars in

confusion,

and

economy.

the

is

a

mili¬

production

of
goods and services, all at the ulti¬
expense of the public.
This

accomplishment could be of
terial
and

advantage to the
producer alike.

Nation's

ma¬

consumer

Leaders Are

Guest

Speakers
During the meeting the bankers
heard

addresses by a galaxy of
leading representatives of the gov¬

ernment, industry, education and
their

own

business.

guest speakers

The

M.

Detroit

Totton,

Chase

were

Among these
Secretary of

Bank, Mich.; Frank
Vice-President
The

National

reduction

our

Bank

of

New

York; Robert M. Hanes, President
Wachovia
pany,

Bank

and

Trust

Com¬

Winston-Salem, N. C.; Alex¬

ander

Chmielewski, Rhode Island

Bank

Commissioner and Immedi¬

Past

President, National As¬
of

dent Newton

great needs of

today

which

and

mate

hamper the

all

on

costs

the

Banks; Joseph

strain

further

corporations

industry,

fearful

carried

increased

threats of communist forces have
a

excess

by the elimination of double tax¬

ate

create

financial

the

of

above proposed.

as

sociation

earth

due

of action

course

elimination

Bureaucratic directives having the

the

im¬

now

adjust the burden,, giving

force of law increase the costs of

of

unfairly

load

consideration to different types of

have

nations

tax

posed and action should be taken

found peace since the end of
World War II. The activities and

not

between

Treasury John W. Snyder;
Comptroller of the Currency Pres¬
ton Delano; Senator A. Willis Rob¬
countries ertson; retiring ABA President C.
huge bu¬ Francis Cocke; Joseph M. Dodge,

on

At

States

organization

governmental

ANGELES,

disintegration.

care

World

(Special to The Financial Chronicle)

LOS

reaucracies have been
to

publicity

to the real and

as

the

employees,

placed

lace B. Alexander Jr. is

Bureaucracy

sion

peoples throughout the world.

Joins

indefinitely.

proximately 2,500,000 government

Co.,

Los

relied upon

not be

tion at its Second General Ses¬

Beverly Drive, members

New

artifi¬

fire

connected

&

economy

tions

Chronicle)

become

Reeves

an

and

HILLS, Calif.—Miles

has

Daniel

South
the

Bulletin

to The Financial

from

revenues

cially stimulated by inflation can¬

which

Oct. 1.

17 N.Y.

our

Throughout
history
have developed

RESOLUTIONS

Following,

because

Moreover,

has

Daniel Reeves Adds

ANALYSIS

munism.

had since 1948.

increase.

J
AND

imperative

drawn

1937.

Mr. Sommers will add the duties

some

COMPARISON

reducing expendi¬
especially

tures to the minimum is

present
taxation is excessive, and if long
of the administrative duties in the continued will prove stifling to the
conduct of the affairs of the ABA. economy and will slow down and
He will continue to manage the impede the productivity which is
national
conventions
and
be
in America's greatest strength in the
charge of the Trust Division of battle against world-wide Com¬
Manager, Mr. Selecman will be
responsible for carrying out many

relief

Lw
^rfve^tio.n Week directs attention to this problem
umlerwriters^0
the period has special significance to

the

Graduate School of Banking.

profitable. Despite
profitable.
Should margins

seems

would be applied for in
the form of

a

the

be

to

of

more

savings and loan associations and

sonnel

provided by Congress and
independent of military authority.

operations

fused

ation

He

and

clearly the
worthy purposes for which they
were originally created.
We insist
that the public should not be con¬

tates

organization."

meas¬

savings and loan associa¬
reflect

continuing scrutiny. That scrutiny
should include an inspecting per¬

established

bodies of the
will also con¬

for

press

to

Association's

policies

to

remedial

tions

Although better means of control may help minimize the loss
by fire as long as replacement costs increase the overall
totals are
Jikely to continue to gain.

governing

continue

propose

correct

Federal

penditures should be subject to

the

June 30, 1953.

any abuses exist¬
ing through permissive rules, reg¬
ulations, and the circumvention of
states rights in order to adjust

sponsible for carrying forward the
by

on

Savings and Loan

shall

will

ures

fires may not be
any greater.

a

.

Associations

substance in-

and

been

Man¬

that

moment

55,790,000

Executive

sub¬

danger

a

that

us:

life and health

or

hold

We

temperately and unwisely

designated

Federal

budget

"* ; V

■'

V

expiration date

importance that our own
be buttressed in every

possible

;

The "excess profits" tax should
be terminated not later than its

Economy

economy

ment

tion.

conditions it is of

these

Under
vital

Manager for the past 15 years, has

given the title of Executive
Vice-President;-Merle E. Selec-

ex¬

budgets

and

Government

pour

Dr.

policies,

Association and its Secretary, has

prices which

the last several years.

over

Committee

example of

an

seldom balanced.

duties of three of its executives.

49,878,000

45,922,000
49,953,000

November

trative

through

session the creation of

57,116,000
52,980,000

$469,975,000

requirements

announced

58,340,000
72,468,000
61,605,000
58,765.000

53,398,000
54,660,000
60,060,000
68,206,000

the

set

spending, inflationary

monetary

our

growing activities, the Association

$58,823,000

$495,077,000

October

Secretary-

Adapting its organizational set¬
to

cessive

Section—

Scarboro,

Association Staff Changes

up

1950

C.

Treasurer, Colorado Bankers As¬
sociation, Denver, Colorado.

The monthly totals of fire losses as estimated
by the NBFU
for 1951 and 1950 and so far this
year are shown below.
1952

Association

James

itself

has

Division—Robert A. Wil¬

Supervisors

of State

Earl Perry, Presi¬

Savings Bank, New¬

ton, Mass.; T. V. Smith, professor

of

of poetry, politics and philosophy,
to
a
point where
duplication, and where Syracuse University; Joseph W.
there is no development of new White, Vice President, Mercantile
laws- through
the
issuance
of Trust Company, St. Louis,
Mo.; H.

bureaucracy
there is

no

directives.
more

Thus

fully to

we

our

may

restore

Frederick

people the free¬

Hagemann,

-Rockland

doms with which they have been

dent,

blessed

Bank,;. Boston,

since

we

started

living

Atlas

Jr.,
•

Presi¬

National

Mass., and Walter

Number 5158 '.

Volume 176

.

.

The Commercial and Financial Chronicle

(1357)
E. Hoadle.y,

45

Jr., Economist, Arm¬

strong Cork Company.
that 500 of all types of banks are

Mr. Hanes urged the bankers to
the face of the government's prof¬

ligate jspending
monetary

policies.

He

and

unsound

ijc

>1:

—

must let their

The Honorable Preston Delano,

«l

and insist that

t

a

e

t h

positions

e

i

r

un-

increas-

i

reliance

g

o n

g ove r n

ment
of

■jb'i

September

=

29, earnestly

—

urged the

E

T. Allen

President

gird them-

W

selves

K5

for

the

-

,

of

ABA's National

examine

Robert M. Hanes

-

sis

Robert

Trust

Division; and James C. Scarboro,

Wilson,

A.

of

State

and

banks

asset

Association Section.

insurance,

credits

to

directors

deposi-

not

■
IIm
>

■

Dr. T.

and

V. Smith

in 1956,

or ever.

the other."

speaking

Youth,"

on

"Bank¬

strongly

urged

give more time and ef¬
fort to character-building organ¬
of

izations

built

have

we

seers

into

can

then, with cogent and impressive
reasoning, that we had reached a

of the nation's banking

99%

Columbia,
ber of the

The

member.

bank is

one

membership

states

are

Arkansas,

zona,

a

with

by

Wash¬

Convention

W.

Harold

on

October

on

for

do

leged to

dates

of

Convention

the

will

the other side.

"Now

tents:

as

to the

practically

signs and por¬

trucks,

mixed trends at
the moment, bankers cannot dis¬
Despite

The

100%

Convention

last

of

Missouri, Montana, Nevada,
Mexico, North Carolina, Ore¬

1934.

The

Bankers

District

of

Association

hosts for the

1953

decline

the

nations

western

and

our

These

which
of

the

possible diminution of
export markets. The miracle

Jet

production bids fair,
shortly, whether rearmament de¬
mands are reduced or not, to pro¬
generation
better
ours

in

is

than
every

except one, and that is money
management)" continued Mr. Tot¬
way

again, at least

school savings accounts

so
are

concerned,
the
youngsters
are
doing encouragingly well. For in¬
stance, the mutual savings banks
report a 17.6% gain in school sav¬
ings deposits this last year, with
almost 2,000,000 school children




civilian

vide

for

even

give

This

denouement,

the

our

us

a

are

equipment. Every major railroad, public

companies which demand the finest parts, equipment, and
them is in itself a testimonial to the quality of products

serve

Eaton

makes, and

•

Cold

Wire

Drawn

•

Poppet Valves

Free Valves

•

•

Tappets •

Hydraulic Valve Lifters • Valve Seat Inserts • Motor Truck Axles •

Permanent Mold Gray
•

this company's dependability as a source

to

PRODUCTS—Sodium Cooled Valves

Engine Parts

and

needs

Manufacturing Company is privi-

supply.

EATON

of American

Totton

of Industries

utility, and communications system in some way uses Eaton products.
materials. To

Iron Castings • Rotor Pumps • Spring Lock Washers •
•

Heater-Defroster

Units

•

Stampings

Snap Rings

Leaf and Coil Springs •

•

Dynamatic Drives, Brakes, and Dynamometers

surplus of goods.

together with
other factors, could produce

unemployment and start a trend
of
events
leading to deflation.

Finally,

we

anomaly of
level

of

an

cidentally with
ume

of

the

see

apparent

unprecedented high

consumer

a

credit

savings, indicating

balanced

distribution

of

General Offices: CLEVELAND 10, OHIO

coin-

tremendous vol¬
an un¬

the

na¬

tion's purchasing power. This ap-

Plants:

CLEVELAND

•

MASSILL0N

MARSHALL

•

DETROIT

VASSAR

•

SAGINAW

KENOSHA

•

BATTLE CHEEK

LONDON, ONTARIO

4

be

meeting.

airplanes, Diesel engines, domestic appliances, machine

tools, farm machinery, construction

wholesale

in

commodity prices which has taken
place over the last 18 months and
the probable gradual reduction in
the
government's
rearmament
program. We must also recognize

the

Columbia

will

basic industry—leading manufacturers of automobiles,

every

tractors,

be

Alabama, Ari¬ American Bankers Association to
Delaware, Flor¬ be held in Washington was in

includes the best-known and most respected names in

serve

1

newly

Brenton,

Sept. 20-23, 1953.

non-

ida, Georgia, Idaho, Iowa, Louisi¬
ana,
New

in

held

elected President of the ABA. The

every bank is a mem¬
Association; and in five

only

states,

be

^

current

states and the District of

In 21

will

ington, D. C., it was announced at
the
close
of
the
organization's

and

resources.

/TiHE LIST of customers which Eaton

high plateau of prosperity with no
decline—much less a precipice—

certain

as

sociation

of all the
States

Wide Range

resulting

here

98%

United

Eaton Products Serve a

the serious economic conditions in

"But

the

our

during the past 20 years

of the 1920's who assured us

regard

M.

over

are

in

It

enough to remember the respected

bankers to

Frank

over

(The
addresses
of
Messrs.
Snyder; Cocke; Hoadley; Hagemann; Dodge; Perry; Robertson
and White are published in full
in this issue.)

should

which

really can cushion any recession
and prevent it from developing
into hardship—although I am old

productive on
the one side, and what is acquisi¬

on

James C. Scarboro

be that the shock absorbers

may

economy

tween what is

ing

Wilson

unpopular role of Cassandra; I do

which

but

Mr. Totton,

jeopardy unless

conservatism

times in 1953,

^■^■1

around dis-

on

A.

not know whether we face harder

tinction be-

tive

banks

with this mon¬
call the cold war."

ABA
Membership Increased
guide any one who handles other
T. J. O'Brien, Chairman of the
people's money, there are today
Association's Organization Com¬
certain
signs
and
portents
to
which I think we should give very mittee, announced that ABA mem¬
careful attention," the Comptroller bership had been increased by 97
banks and branches during
the
continued. "I am not assuming the

I-

what

creative

Included

strous thing we

general economy
without
interruption

Bflmifeft^"^jm

between

idealistic,

and hard struggle

our

and

what is selfish
and

fulness will be in

its

titious distinction

bank in such

"Aside from the natural caution

fic-

a

a

run

a new

need

Robert

for

that its solvency and use¬

manner

way

we

Harris

believe rniiiiiiiiiiiiiiiiiiiiiiiiiiifiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiifiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiuiiitE

to

ism that

.

What

of wisdom to

*

fullyatits
bootstraps..

M.

economic

our

continues
to
reach
higher and higher levels."

Mr. Smith said: "We need

B.

.

and

tors. He urged

heaving hope- J

55

system will
Vermont,
Virginia,
again
experience
a
depression praisal is not a prophecy—it is, I past year, bringing it to a total of gon, Utah,
16,790. Mr. O'Brien is Vice-Presi¬ Washington, Wisconsin and Wyo¬
comparable to that of 20 years ago. hope, food for thought."
"Underlying all this there is dent of the Second National Bank, ming.
But although it is unfair to your
shareholders, as well as to your a deeper and more reason for us Houston, Texas.
1953 Convention to Be Held
The membership is made up of
customers and community, to ex¬ to put our banking house in order
In Washington
just
now,"
Mr.
Delano
continued.
14,298
banks,
2,324
branches,
and
pect the worst and strive for 110%
The 1953 Convention of the As¬
168 members in foreign countries.
"Every
indication
points
to
a
long
liquidity, it is even less the part

employment of outside auditors
reporting to directors only, greater
efficiency in systems of internal
controls, and rotation in office.

an

difficult

it

find

one,

that

stockholders
and

—

a

and unrealistic assumptions. I,

stressed

between

own

E

satisfactory income
level. I do not suggest that the
national banking system should be
operated on the basis of extreme

relationship

rather than

Burns

without

investments

and

jeopardizing

the fiduciary

conception of idealism:

Wendell T.

sufficient to enable us
to eliminate marginal

are

gradually

nagement's

He

pay

problems

earnings, although far from start¬

not

prevent losses.

can

Preston Delano

ling,

does

proper

*

IHHaBU

have

less

measures

*

Glenn, Jr.

-

this neverthe—

responsibility
for taking

,

of

today; and our

lessen -bank

Chmielewski

-'■y» Jr

relatively few

be adequately protected by bonds

m a

President

time," he said,

safeguarding of bank funds, main¬
tained that, although fundk may

A.

mk

attitudes

at this crucial

%

£

Alien

Divi¬

sion;

£

our

guaranty
our

Bank

Savings and Mortgage Division; B. M.

President
T.

Mr. Chmielewski, discussing the

far

the

Harris, President of State Bank

f JIBH E

HHHMsaJHI

banking risks, terming this "a
on the body of banking."

ton.

Glenn, Jr., is newly elected
of

Division; Wendell T. Burns, President

ankers to

cancer

is

E
E
£

concern

over
n

Comptroller of the Currency,

on

NEW ABA OFFICIALS

~

speaking before the Annual Meet-

ing of the National Bank Division

equivocally.
He
expressed
his

E

Cautioning by Delano

government

t

Heads of ABA Divisions and State Association Section

^

asserted they

s

£

serving 10,000 schools, with 3,- s
300,000 school savers having $92,- EE
000,000 on deposit. This adds up E
to about a 15% increase the coun- E
try over."
=

fight for integrity of the dollar in

LAWT0N

the

46

The Commercial unci Financial Chronicle

(1358)

NATIONAL

Mutual Funds

STOCK SERIES

By ROBERT R. RICH

.

Thursday, October 9, 1952

..

Diversified Cuts 24 Funds To Three

A MUTUAL INVESTMENT FUND

In

Approximately $6.20 per share

announcing

proposal

to

dissolve 22

W.

Hugh

funds,

Long, President, states industry and specialized series funds

Prospectus from your dealer or

longer attractive to investors.

no

are

NATIONAL SECURITIES &

Shareholders

RESEARCH CORPORATION
Established 1930
120

Broadway

Diversified

Series

Investment
and

and

Diversified

Fund,

Pacific

Diversified

Coast

Growth

Stock

Funds, said, "Investors
shown, by the votes of their

tors

largest need is for mutual

funds of the general management

which

for

prospectus from

investment dealer
or

2, PA.

investing

clearly

the

mutual

entire

the

fund

responsibility

according to a
investment policy

—

stated

—the money

entrusted

have offered

the

to it.

public

We

both the

initial

shares with
value

will

"In

have let the public choose.

preference

is

overwhelm¬

our own

investors

the preference

case,

for

the

com¬

more

plete services offered by the gen¬
eral management funds is clearly

indicated," Mr. Long said, "in the
that

fact

these

versified

two

Investment

Diversified

count

Common

for

versified
are

in

Co.

its

in

of

the

most

Fund's

owned

by

The

total

Fund

did

redemption

into

services

investment

Industry Series

attractive

fied1 Fund's

other

Stock

The investment objective of the
new fund will be "to invest sub¬
in

securities

of

panding

phase

and

to

of

prospects

in

their

an

for

ex¬

develop¬

better

possess

long

than

provided by
no longer

term

secondary importance."
reorganization

process,

effective Nov. 28, the reclassified
have
out

•

assets

of

•

totaling

Diversified

$11

Fund's

$44 million.
Shareholders

of

Diversified

its

dicate

the underwriting syn¬
will be protected: in the

series—Corpo¬

public

offering of the

Diversi¬

with

rate

Bond

Bond

Series, Diversified Preferred

Government

Funds

and

because

the

Diversified

new

resolution

Growth

Fair's

fund'

creating

Stock

ctry

Howard

contain

of

provision

a

its

shares.

days

from'Sept.

-menf

Lay hew,

-

for

who

or

27

to

explained-

William

Middleleer/

the country.

across

figure of $100,000.
plan to reclassify

Con¬

until

the

certificate

Fund

shareholders

.

Shareholders

funds

will

of

all

value

of

receive

their

effective

date

net

holdings
of

Growth

r

'

Fund

at

net

value.

each

of

the

shareholders

versified

Funds

tunity

determine

to

experience
general
suits

date,

one

actual

the

three

after the

year

shareholders

their

book

shares

cost

not

establish

tax

purposes.

paid

from

of

not

shares

gain

a

loss

or

However,

gains

will

for

substan¬

be realized

may

during- reorganization.

million

out

of

total

the
over

of

assets

Growth Stock Fund

GROUP

class

has

SECURITIES,

industry

on

Nov.

fied

10

to

Funds to

fund"

in

fund

then

since

h i.

w

your

investment

The Value Line
5

East

Fund

dealer

1933, and-i
largest;

with

authorize

President,
menting

in

statement

a

the

on

nounced

com-*,

recently

plans

New

At present Group

fers

and

of

"series

less

than

Securities of¬

broadly

5

manages

of which is

curities

solely in se¬
with a single

identified

"The original conception of theindustry
class
structure,"
Mr.
Anderson stated, "wns to permit *
investors

to enjoy the combined-''
advantages of a mutual fund with >

the personalized
vestment

fitting of
This

program.

policy in

today."

1933

and

still

THE

Securities

although

currently

Continued

on

Canada General Fund

T

.

,

'

Diversified Investment Fund
*
*

A prospectus relating to the shares
of any of these separate
investment funds may he obtainedfrom authorized dealers or

INC.

.

^Diversified Common Stock Fund

.

NEW YORK

VANCE, SANDERS & COMPANY
111

PROSPECTUSES

DEVONSHIRE STREET

I

Prospectus and other data obtainable
from

your

investment

dealer

BOSTON

or
NEW

I

The Value Line Fund
5

East 44th St.

Distributors, Inc.
New York




6i

YORK

Broadway

-

CHICAGO
lio South LaSalle Street'

LOS
2io

ANGELES

West Seventh Street

AVA1LABLE.ON

FROM

YOUR

LOCAL

THESE

MUTUAL

INVESTMENT

FUNDS

DEALER, OR

Cleveland

u?Zl
San Francisco

HUGH W. LONG
-

AND COMPANY

Incorporated

•.

17

Westminster

at

Parker, Elizabeth

New Jersey

em-

page

Manhattan Bond Fund, Inc.

;■%

ALUE

a

is

r-

Mr. Anderson said that

Group

in¬

an
was

.Fundamental Investors, Inc.

Century Shares Trust

,

invested

industry.

$1,500,000, instead of the present

17

inr-

vested funds of various types and
17 separate classes of shares, each

or

York

an-,

of

dustry funds from its structure.

Diversi¬

redeem any
assets

••

known

made

Distributors, Inc.

44th St.

h

the

been

Prospectus and other data obtainable
from

c

Tuesday by Herbert R. Anderson,

sound

Shareholders will also be asked

Massachusetts Investors

\

;

originated the idea of the multiple

can
one

change

and

appreciation
on
expiring funds amounted to
$3

i

group.

Diversified.,
funds best Funds, Inc., managed by Hugh W.
investment Long & Company to eliminate inr

personal

For

effective

Di¬

oppor¬

from
of

management

his

of

ample

which

purpose.

converts

a

unit in that field, plans no change

$11 million.

INC.

as

'

.

Hugh W. Long said that, in ad¬ in its structure.
dition, the management will give)
This
fact .-was.:;

and-

FUND

shareholders
v

dis¬

Mutual Fund Notes

the

on

Unrealized

^Massachusetts Investors Trust

before
be

can

asset-

reclassification,

Stock

particular fund

Fund

reclassified

the

Nov. 28, in full shares of Diversi¬
fied Investment Fund or Diversi¬

tial capital

LINE

each fund

solved, this proposal only requires,
the majority vote of
Diversified)

reclassification would

OF BOSTON

of

but not redeemable.

the

Bond Fund

Although the)
the 22 funds

requires the majority vote of the!

of

The management's counsel said

CJJTe

NEW YORK

wire-

cash

Milton Fox-Martin,
George Washburn, fund sales man¬

manager;

without cost.

INCOME

nine

Peabody
fair-goers were:

fund to another at net asset value

ALUE

write

a

that

asset

funds

to
in

$106» in

was

Kidder,

the

filed, on or before
Nov. 28, the shares will be offered

fied

million

Peabody's

Fair
eggs

amendment is

will be of

are

Series,

tration

growth. Immediate income return
the

winner

■

companies

which it believes to be

ment

the

sequently, from the time of regis¬

and

experience

specialized

Growth

Fund.

not

assets

investors.

to

Diversified

dissolved

be

to

(Conn.)

will offer

group

Di¬

specialized)

Kortcer

Kidder, Peabody will make the portable replica of the barn

;

are

the

the

to

Eric

;

which

Kidder,

the number of

available to its associated dealers

of

industry-type
fund,
Mr.
Long
said, "Equally clearly, the limited
the

funds

average

10,000 of its

the

mutual

by stockholders of the 19 expiring
funds

entered

Danbury

guess

for

Reinders,
and Felix Dyckoff,

integrating mutual;

underwriting

Prize

Among
funds

the public shares not absorbed

to

In
on

in

the

at

and

during

men

5.

mutual

ager;

investment syndicate has

an

played

stantially all of the assets of, the

and

-

unusual

fund

Stock

some

yet

Oct.

public

underwriting group
Kidder, Peabody &

an

one

basket.

by four

fund

new

Fund

three-quarters

Remarking

Address.

supported

offering by
headed
by

shoreholders."

Canadian Fund, Inc*

be

The

booth

names

people

mutual funds shares. Kidder, Peabody kept the booth manned-

1,600,000

assigned net asset

an

$7.30.

thousand

fund

their

bushel
an

funds—Di¬

—today have assets of more than
$33 million. These funds now ac¬

proepectua on

of

of

given

funds into the securities business.

of

■M a

allocation

was

mutual
down

direc¬

and

Their

obligation please send

Sept. 11,1952,

on

of

board

roles

ingly for the general management
type.

no

Fund's

general management type of fund
and the specialized industry fund
we

pnuto oy

twelve

Over

Diversified Growth Stock Fund,
created
by a resolution of Di¬

est and

in

Diversified

vestment Fund—has been similar."

invested dollars, that their clear¬

assumes

into

Stock Fund and Pacific Coast In¬

versified

type

Fund

Fund.

versified
have

Stock

Preferred

dissolving all eighteen industry series funds
Investment
Fund
into
the
newly-organized

announcing
the
proposal,
Hugh W. Long, President of Di¬

CENTLEMEN: At

10

and

In

PHILADELPHIA

Nov.

vote

proposal to cut the twenty-four Diversified Funds to
three, reclassifying the Corporate Bond Series, Government

Bond

your

will

Funds

the

on

New York 5, N. Y.

•

of

54

Volume 176

Number 5158

The Commercial and Financial Chronicle

...

The following statistical tabulations

Indications of Current
Business
«

MERIOAN

IRON

Indicated

Equivalent
*teel

Crude

and

gall(ns

42

Crude

tons)

(net

to

average

(bbls.

(bbls.)

average

(bbls.)

(bbls.)

(bbls.)

100.3

Oct. 12

2.173,000

*2,195,000

2,093,000

2,033,000

6,507,150

*6,518,350

6,284,450

Domestic

shipments

Domestic

Warehouse

116,987,000

*7,075,000

7,110,000

6,558,000

Sep. 27

23,561,000

23,980,000

23,936,000

21,085,000

Dollar

exchange

Sep. 27

2,634,000

2,728,000

2,664,000

2,549,(00

Based

on

Sep. 27

10,214,000

10,278,000

10,253,000

9,124,000

Sep. 27

8,835,000

8,525,000

8,839,000

8,332,COO

Sep. 27

120,276,000

118,315,000

117,240,000

122,468,000

Sep. 27

34,080,000

32,080,COO

36,171,000

102.235,000

104,170,000

53,484,000

52,296,000

49,014,000

(number of cars)
Sep. 27
freight received from connections (no. of cars)Sep. 27

862,061

873,559

727,344

864,575

Middle

727,072

719,769

657,100

703,316

South

OF

at

AMERICAN

RAILROADS:

CONSTRUCTION

—

U

S.

Public

construction

municipal

Federal
OUTPUT

Bituminous

(U.

coal

Pennsylvania

S.

BUREAU

and

lignite

anthracite

coke

STORE

ELECTRIC

Electric

output

FAILURES

INDEX—FEDERAL

AVERAGE

(in

000

steel

steel

3erap
METAL

127,486,000

57,239,000

315,014,000

90,718,000

189,663,000

52,717,000

106,926 000

71,774,000

54,880,000

41.567,000

81,959,030

Oct.

18,944,000

134,783,000

11,150,000

24,967,000

Sep. 27

10,030,000

♦11,580,000

2,230,000

11,136,000

Sep. 27

859,000

878,000

152,000

963,000

Sep. 27

85,900

93,300

29,700

132,600

112

♦113

110

114

INDUSTRIAL)

—

DUN

7,665,408

7,624:747

7,324,127

7,155,921

110

133

2

129

156

,

;

Sep. 30

4.376c

4.376c

4.376c

4.131c

$55.26

$55.26

$55.26

$52.69

$42.00

$42.00

$42.00

$13.00

QUOTATIONS):

Straits

Lead

tin

(New

(New

Lead

(St.

Zinc

(East

MOODY'S

at

Louis)

BOND

at

at

Louis)

1

Oct.

York)

York)
St.

Oct.

at_

PRICES

24.200c

24.200c

24.200c '

24.200c

1

34.925c

34.950c

33.425c

27.425c

Oct.

1

121.500c

121.500c

121.500c

1C3.00UC

Oct.

1

16.000c

16.000c

16.000c

17.000 C

Oct.

1

15.800 c

15.800c

15.800c

16.800c

Oct.

1

13.525c

13.500c

14.000c

17.500c

DAILY AVERAGES:
*

J.

Government

o.

Average

Railroad
Puuuc

Group

Utilities

Industrials
MOODY'S
U

Bonds

corporate

Group—.

Group
YIELD

BOND

DAILY

7

96.24

95.91

97.49

98.21

7

109.42

109.24

109.79

111.25

.Oct.

7

112.93

113.50

114.27

115.82

.Oct.

7

111.62

111.62

112.00

115.C4

.Oct.

7

109.06

108.88

109.24

110.15

.Oct.

7

103.47

103.64

103.97

104.66

.Oct.

7

106.21

106.21

106.92

108.16

.Oct.

7

109.06

109.24

109.42

111.07

.Oct.

7

112.37

112.75

112.93

114.85

Oct.

7

2.76

2.78

2.67

2.62

Oct.

AVERAGES:

Government Bonds

6.

corporate

Average

7

3:21

3.21

Oct.

7

3.01

2.98

.JCt.

7

3.08

3.08

Oct,

7

3.22

3.23

.Oct.

*

Aaa
Aa

—.—

3aa

Railroad
Public

Group

Utilities

Industrials

Group-

Group

COMMODITY

MOODY'S

3.18

3.10

2.94

2.86

3.06

2.90

3.21

3.16

'

7

3.54

3.53

3.51

3.47

Oct.

7

3.38

3.38

3.34

3.27

Oct.

7

3.22

3.21

3.20

3.11

.Oct.

7

3.04

3.02

3.01

2.91

Oct.

7

424.1

427.6

427.6

466.9

INDEX

received

(tons)

Production

(tons)

Percentage

of

Unfilled

OIL,

activity

orders

PAINT

at end of period

(tons)
DRUG

AND

AVERAGE

1949

New

York

York

TRANSACTIONS FOR ODD-LOT ACCOUNT OF

LOT

DEALERS

Odd-lot

sales

dealers

by

ON

SPECIALISTS

AND

EXCHANGE

EXCHANGE—SECURITIES

Wholesale

Construction

Wholesale
Retail

Total

service

35,154

1,025,367

$35,564,700

$27,804,822

$45,026,496

value

Number

of

short

sales

other

Customers'

—

8eP- 20
—bep'

20,422

22,451

19,188

32,871

113

252

126

228

beP- 20

20,309

sales

—beP-20

Customers'

short

sales

Customers'

other

sales-

fep 2®

—-•

——

Dollar value
Round-lot

sales

Number

Number

of

sales

sales

Total

520,090

929,213

3,403

8,926

4,749

8,1*0

628,865

515,341
$21,622,815

921,055

$26,648,150

156,300

213,390

156,300

213,390

$37,508,929

150,740 '

281,400

1~50~740

28R400

bep- 20

OF

MEMBERS

THE

ON

314,090

305,890

233,480

364,750

'

?ep-

ACCOUNT

p• io

^

■-

m

FOR

,3

°ep. 33

s

OF

239,970

139,470

148,150

398,770

6,339,570

4,410,560

5,142,870

11,228,180

6,579,540

4,550,030

5,201,020
)

11,612,960

MEM¬

purchases

Shprt

sales

Other
Total
Other

Total

sales

sales

—

initiated

sales

Other

sales

6ales

Other

sales

659,660

409,430

458,600

1,248,720

111,350

75,540

98,740

23^,300

13

515,480

365,150

378,780

1,016,0-0

13

626,830

440,690

477,520

1,248,360

All

sales

sales

Total

.

I

PRICE8,

All

=

NEW

products

I'AIRCHILD
INDEX
As

of

SERIES

—

U.

S.

$22,789,000

$26,417,000

HOURS—WEEKLY
S.

DEPT.

OF

$66.85'
:

-71.37
61.45

___

goods

goods

PUBLICATIONS
1935-39

—

RETAIL

1 ()()

=

♦$65.80',
-■

„

.

$64.32

-

♦69.88

69.55

V

*60.87

57.91

40.2

39.9

40.3

40.6

♦40.3

41.3

39.8

♦39.4

39.1

$1,663

♦$1,649

$1,596

1,758

♦1.734

1.684

1.544

*1.545

1.481

PRICE

(COPYRIGHTED)

September l:

Composite index
goods

104.9
96.8

95.2

100.9

105.3

105.5

106.7

_.

apparel

Women's
Home

apparel
and

100.8

,

Children's

furnishings

wear

:

104.7

107.1

101.8

102.7

104.8

104.8

106.4

107.8

107.7

111.0

goods—
silks

and

Cotton

wash

goods

89.8

89.8

108.2

108.0

114.0

94.6

94.6

100.1

92.9

Domestics,

Blankets

and

comforters

101.2

100.1

109.7

119.2

120.2

125.5

apparel—
;__

and

95.2

housedresses
brassieres—

and

;

j.

97.8

95.2

97.0

97.5

99.2

107.3

107.7

107.9

93.8

94.0

100.7

Underwear

100.1

100.0

101.7

Shoes

108.6

108.8

110.2

106.8

106.7

107.0

Men's

apparel—

Hosiery
Underwear
Shirts
Hats

.

and
and

neckwear
caps

Clothing,

,

including overalls

Shoes

Infants'

children's

and

.___

Underwear
Shoes
Floor

.

coverings

-

Luggage
household

110.7

110.7

110.9

102.4

102.4

102.8

100.2

100.3

100.5

103.1

103.8

104.8

107.2

107.8

102.9

102.9

103.0

102.9

102.6

110.0

110.4

113.2

112.3

wear-

Socks

appliances

and

INDUSTRIAL PRODUCTION
ERNORS

OF

SYSTEM,

1935-30

•

102.5

108.1

107.8

106.5

117.6

117.4

125.0

102.4

102.3

102.9

101.5

101.0

104.2

104.8

105.1

107.4

100.9

100.5

102.9

MOODY'S

200

Banks

17,500

91,700

97,600

370,78C

.Sep.13

244,120

173,320

207,570

477,99f

.Sep.13

25,820

26,070

55,930

.Sep. 13

203,566

451,283

Sep.13

Net

314,386

201,075
227,145

13,640
247,620
261,260

507,213

Other

Sep. 13

1,026.310

DEPT.

663,160

747,490

Sep. 13

147,720

109,010

116,880

-Sep. J3
Sep. 13

933.846

650.525

719,500

1,820,563

1,081,566

759,535

836,380

2,12o,29

OF

215

•193

217

218

♦195

220

111.0

111.1

Sep. 30

105.9

♦105.2

107.9

Sep. 30

103.7

109.8

110.7

foods

Sep. 30

111.7

108.7

112.5

115.0

112.6

112.7

112.8

GOV¬

Aug.;

AVERAGE

YIELD

STOCKS—Month

of

OF

Sept.:

(125)

5.63

5.51

(25)

6.03

5.68

6.13

5.28

5.31

5.78

4.23

4.39

4.70

Insurance

Average

RYS.

(10)

3.18

3.15

3.28

5.56

5.40

5.91

$67,900,110

$82,970,256

$65,818,234
28,147,464
'93,965,698

ITEMS

(Interstate

railway

of

OF

U.

Commerce

S.

CLASS I

Commission)

June:

operating income

income

income

:

—

Miscellaneous

deductions from income
Income available for fixed charges

Income
Other

after

fixed

3,775,683

3,887,315
94,244,325
57,234,689

40,364,540

2,892,194
54,342,495
40,234,661

3,638,915
90,326,783
55,340,180
3,182,432
52,157,748
39,000,398

31,759,146

42,434,800

43,224,026

19,049,391

28,356,475

1,646,591

8,361,350

16,94"\267
2,286.1

2.38

2.55

2,832,097

income

48,987,945

income

.

taxes

appropriations:

On

common

On

preferred

Ratio of

15,161,384
98,131,640

51,870,042

deductions

Dividend

25,385,940
93,286,050
89,510,367

charges

Depreciation (way & structure <fc equip.)
Amortization of defense projects
Federal

6.03

(200).

—Month

Net

Sep. 30

of

(15)

Total

305,73(

OF

RESERVE

J00—Month

(24)

Railroad

353.280

2,077,610

BOARD

FEDERAL

—

WEIGHTED

COMMON

Industrial

4,500

350,900

THE

Seasonally adjusted
Unadjusted

93,100

tlncludes 707,000 barrels of foreign crude runs.




1,358,000

$16,322,000

Men's

7,400

'

.

foods

figure,

1,466,000

goods

Piece

84,300

81,320

100):

commodities other than farm

*Revised

6,173,000
4,290.000

-1,SOD,000

goods

Durable

10 550

Meats
411

3,196,000

Hourly earnings—
All
manufacturing

140,350

Group—

commodities

Farm

Processed

1,816,000

goods

Nondurable

129,800

.

LABOR— ( 1947-49

Commodity

4,099,000

5,434,000

_

SELECTED INCOME

sales

WHOLESALE

$10,497,000

-

August:

manufacturing

Durable

Sep. 13

80,410

off the floor—

purchases

Short

$8,882,000

Hours—

Sep. 13

sales

Other

of

goods

Nondurable

122,530

Total round-lot transactions for account of members—
Total

56

678

'

Sep. 13
Sep. 13

_

'

41

580

3,811,000 -

manufacturing

futilities

_.

initiated

*3
13

floor-

purchases

Short

Total

,—

the

8eP8ePSep.
—Sep.

sales

transactions

Total

on

purchases

Short

Total

Other

-—

transactions

51

594

'5,255,000

China

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS
Transactions of specialists in stocks in which registered—
Total

AND

ESTIMATE —U.

Durable

Electrical

NEW

89

(SHARES):

_—

TRANSACTIONS

liabilities.

Furniture

YORK
ROUND-LOT STOCK TRANSACTIONS
SALES

48

$5,056,000

Radios

sales

EOUND-LOT

32,643

557,662

$23,224,613

sales—

Round-lot

Short
Other

19,062

dealers—

STOCK

AND

ACCOUNT

637,791

bep- 20
bepSep- 20

shares

ROUND-LOT

FOR

561.065

bep- 2P
sales

sales

purchases by

EXCHANGE
Total

by dealers—

sales

Short

Other
Round-lot

TOTAL

fep 20n

shares—Total

of

22,199

sales

shares—Total

of

$32,727,115

sales)—

total sales

orders—Customers'

Customers'

Number

(customers'

dealers

58

'

Furs

21,563

612,336

64

333

Earnings—

Corsets

27,361

136

59

299

2,386,000

service

LABOR—Month

Aprons

760,597

by

-

Hosiery

25,546

133

60

.

liabilities

AVERAGE

116.14

707.804

purchases

number

FACTORY EARNINGS

458,150

SeP- 20
SeP- 20

Dollar

109

316

'
__

liabilities

109.43

8eP- 20

Odd-lot

BRADSTREET,

number

Construction

383,360

orders

76,505,151

361,161,249

liabilities

109.21

shares

44,945,049

393,921,076

liabilities

467,535

of

69,916,114

number

Manufacturing liabilities

90

purchases)—

(customers'

&

$438,866,12^ $437,666,400

324,577,389

number

90

Number of

Number

City

number

Rayon

-

62,566,795

$394,493,503

number

Woolens

ODD-

77,592,168
49,807,192

•

Sheets

N. Y. STOCK
COMMISSION:

96,812,346

52,961,261

INC.—Month of August.

Manufacturing

Women's
STOCK

States

BUSINESS FAILURES—DUN

206,321

109.19

34,420,897

84,084,671

;

City_,

New

218,174

459,907

111,643,528

33,899,864

34,059,337

United

224,724

3

$41,387,438

75,331,214

53,556,281

Total

216,985

°ct-

$19,490,434

98,996,532
29,171,991
79,183,176

14,508,493

215,865

INDEX—

PRICE

REPORTER

$19,708,500

&

84,152,089

234,715

94

DUN

13,489,270

227,129

27
27

—

CITIES—Month

66,923,436

231,254

2?
21

100

=

„

SeP...Sep.
Sep.
Sep.

26,408,000

$384,321,000

Pacific

Piece
e

jrders
„

34,133,000

$450,150,000

25,745,212
11,533,904

Infants'

NATIONAL PAPERBOARD ASSOCIATION:

29,975,000

;

Nondurable

'

13,199,000
5,651,000

73,351,000

Mountain

All

.Oct.
.Oct.

12,099,000

9,556,000

$454,111,000

Central

West

Commercial

refinery at
Export refinery at

VALUATION

INC.—215

.

Electrolytic copper—
Domestic

'

7,724,000

shipped between

Central

Commercial

&

Sep. 30
Sep. 30

M. J.

&

and

Central

Total

ton)

gross

(E.

4

PRICES:

ton)

gross

(per

PRICES

143.559,000

__Gct.

AND

109,211,000

credits

Atlantic

Retail

lb.)

(per

Pig iron (per

$421,940.r00

Oct.

Oct.

COMPOSITE

Finished

$109,956,000

Oct.

Sep. 27

kwh.)

(COMMERCIAL

AGE

$317,149,000

INSTITUTE:

BRADSTREET. INC.
IRON

$234,277,000

RESERVI

100

==

$217,753,000

125,622,000

Atlantic

Outside

(tons)

SALES

SYSTEM—1947-49

Oct.

MINES):

(tons)__

(tons)

DEPARTMENT

EDISON

OF

$199,764,000

119,177,000
7,143,000
12,513,000

England

South
Oct.

Ago

August:

East

ENGINEERING

construction

and

of

Month

$211,697,000

-■

PERMIT

BRADSTREET,
New

construction

State

BUILDING

Year

Month

73,606,000

countries

of that date:

Previous

August 30:.<

Total

112,472,000

at

(bbls.)

are as

Latest

BANK

,

goods stored

foreign

either for the

are

OUT¬

RESERVE

of

As

—

6,303,500

54,583,000

(bbls.)

oil

ACCEPTANCES

FEDERAL

—

YORK

Sep. 27

freight loaded

Beehive

NEW

34,989,000

Private

COAL

OF

pipe lines-

at

oil

ENGINEERING

Total

DOLLAR

Exports

NEWS-RECORD-

'

BANKERS'

114,727.000

fuel

ASSOCIATION

'

101.8

Sep. 27

fuel

Residual

of quotations,

cases

Ago

*105.7

Sep. 27

Distillate

CIVIL

Ago

104.6

Sep. 27

3tocks at refineries, bulk terminals, in transit, in
Finished and unfinished
gasoline (bbls.) at

Kerosene

•

Week

in

or,

Year

oi

,

Revenue

Month

Dates shown in first column

that date,

47

production and othei^ figures for the

cover

Imports

output—daily

stills—daily

output

Revenue

Previous

on

INSTITUTE:

condensate

J Distillate fuel oil output (bbls.)
Residual fuel oil output (bbls.)
'

month available.

month ended

or

Oct. 12

'

.

or

STANDING

castings

output

Kerosene

Latest
Week

capacity)

each)

runs

Gasoline
i

and

FF TROLEUM

oi

week

INSTITUTE:

operations (percent of

latest week

to—

ingots

AMERICAN

STEEL

AND

steel

Activity/

(1359)

stock

stock

income to fixed charges

*Revised figure.

.

tNot including American Tel.'& Tel.

2

The Commercial and Financial Chronicle
48

.

.

Thursday, October 9; 1952

.

(1360)

^

5

succumbed

cerns

of the

listed in twenty-seven

were

forty-eight reporting states.
The first eight months of this

witnessed

year

aggregate of

an

business incorpora¬
tions in the United States.
This
•S2.1Q4

new

only declines from 1951 ap¬
peared in retail trade and manu¬
the

companies hav- facturing.
Most
93% of the steelmaking capacity
geographic regions
re¬
for the entire industry will be at
ported a dip in failures. Only two
of

of 104.6%

average

an

equivalent to 2,173,000 tons

of in¬

building per.mits for the month
of August
showed a drop of 9.9% below the
August 1951 level, and 10.6% be¬
low that for July 1952, according
to Dun & Bradstreet, Inc.
The
Total valuation of

United

cities of the

a

$441,160,921

and

ago

year

City, the volume

In New York*

filed
during August
amounted to $69,916,114. This rep¬
of

plans

resented

decline of 8.6%

a

from

in the like month a
,year ago, but a rise of 55.5% as
compared
with
$44,945,049 the
previous month.

$76,505,151

104.6%
Trifle Below

Steel Output Set at

of Capacity, a

Previous Week

Steel

output

States is at

a new

review of the steel trade.

The latest record was cast in the

indicated

"Steel"

Week

nation's

the

South

failing than a year ago. A
mild decline from the 1951 level
nesses

prevailed in the four other

amount of electric

The

distributed
and power

energy

fourth successive

Bradstreet

&

Dun

the

index fell to

wholesale Food price

1952, was

kwh.,

estimated
according

Electric Institute.

to the Edison

The current total was

40,681,000

capacity

the

been

as

June

24, when it stood

The

current

number

Car Loadings
Downward

at $6.39.

drop of

with $6.79 a year ago, or a

The

of
below the

roads, representing a decrease
or

1.3%

Continues

and

ago,

2.1%

a decrease of 18,125 cars,
below the corresponding

commodity
in

tinued

evidence

in

the

level
during

con¬

declined

290.68

to

the

Sept.

on

in

capacity plus full

making
strong
pushing supply up

are

Leading
tinued

Passenger

grain

unsettled

car

markets

30,

bread

cereal

delivery

low

new

a

Some of the

season.

production in the

the

during

Wheat declined late in the

reaching

United States last week fell about

con¬

prices moved

as

lower

week with the December

Dropped About 3% From
Level of Previous Week

steelmaking capacity coming into
Increases

for
the
selling in the

attributed

was

to

reports of large quantities of red

3%, but maintained the over 100,- wheat in store at Chicago.
into balance with demand, asserts 000 weekly pace begun after the
The market was also featured
this trade paper. Proof of this is first week in September.
by a sharp reduction in the move¬
the
It aggregated 100,598 cars com¬ ment of Spring wheat.
growing cost consciousness
among the consumers. They are pared with 103,925 (revised) cars
Export business in wheat was
increasingly insistent on placing in the previous week, and 84,006 fair. Sales under the International

in

headway

their
mill

orders

steel

that freight

so

held

As

down.

the

at

a

nearest

costs

result,

feeling

reduction

a

to

in

con¬

The

supply improvement is re¬
flected also by a survey made by
Association

of

Pur¬

chasing Agents. It finds that only
47% of those answering in the
survey
have any steel supply
problems now.
An easy supply

29,291 trucks built in the United

running

into

quarter of 1953
only 9%,

are

the
second
visualized by

with 42%

compared

a

month ago.

supply,

more

narrow

cold-rolled

carbon

sheets

strip

and

will

be

available in the first quarter than

anticipated earlier, states this

trade

weekly. While March
expected to be the first

month
some

have

Some

on

was

open

nondefense sheet orders

producers

openings

now

sooner

customers

expect

than

to

that.

passing up
offerings, either because of lack of
are

government allotments
of

sufficient

out "Steel."

or

because

inventories,

points

The government

limits inventories to 30-day sup¬
plies. Some debate is going on as
to whether

liberalization of gov¬
ernment restrictions on inventories
would swell demand for
steel, this
trade

The

ing the total for the 1952-53
about 79,000,000

year

com¬

with

pared

100,400,000 for the
earlier. Weak¬
corn
largely reflected

period

same

bushels,

a year

a

journal concluded.
American

Iron

and

Institute announced that the




Steel
oper¬

to

week

firmness,

early

spot

in

cotton

stores

other week this
sales for

week.

"T '

Moderately Downward
Commercial and industrial fail¬

dipped

ures

to

129

Average daily sales for the

in the week

ended Oct. 2 from 156 in the pre¬

a

the

Volume

Falls

Slightly

Sept.

Shoppers in

reduced

The volume of

consumer

all-time

high

reached

few

a

weeks ago.

chalked

from

the 1950 total

stores

better

up

the

sales

than

did

generally

comparisons

figures of

city

large

year

a

depart¬

prices

were

steady

last
con¬

increased

an

half

as numerous as

in the similar

port

flour

stantial
the

interest

market

in

the

with

a

ex¬

1952,

the period ended

Wednesday,

week,

last

Pierce,

Lynch,

Fenner

and Dean Witter & Co.

Beane

&

jointly offered yesterday (Oct. 8)
a
new issue of 350,000
shares of
Power

Electric

California

Co.,

stock, $1 par value, at a

price of $9.75 per share. Award of
the issue was won by the firms at
competitive sale on a bid of $9,471
a

share.

proceeds from the sale will
to retire the company's

Net

The total volume of retail trade

used

be

outstanding 5Vz% co nver t i b 1 e

preference stock and 5.60% con¬
vertible preference stock if market
to conditions are favorable, and to
4%
year ago.
Re¬ reduce short-term bank loans in¬
gional estimates varied from the curred in connection with the con¬

on

estimated

Inc.,

by

&

Dun

to be from
higher than a

was

Bradstreet,

unchanged

comparable 1951 levels by the struction and improvement pro¬
following percentages: New Eng¬ gram of the company and its
land and East —2 to +2; Midwest wholly-owned
subsidiary, Inter¬
and Northwest unchanged to +4; state
Telegraph Co.
If market
Southwest

+2 to -f 6; South and

Pacific Coast

for food than in the similar

more

week

a

rises

the

earlier

were

frozen

foods

The

large

levels

in

the

of
of

cuts

chases

of

week

a

for

and

some

continued

slightly

apparel

weather

Some

before.

duce short-term bank loans.

last

returned

merchants

attrib¬

recent relaxation of terms

sets

were

of

parts
in

to the
on

Co.

Power

is engaged

principally in the gen¬
purchase,
transmission,

distribution

in

energy

and

of

sale

and

of

parts

electric

southeastern

southwestern

Interstate

Ne¬

Telegraph Com¬

wholly-owned subsidiary,
a rapidly growing
telephone and telegraph business
principally in the northern part

pany,

a

is

engaged in

of

the

ities

The

company's electric service
adjacent local¬

and in certain

area

in

California

and

Nevada.

company's Imperial Ice Divi¬

sion manufactures and sells ice in

certain

predominantly

agricul¬

tural

sections of Imperial County
Riverside County, California.

and

the

12

months ended Aug.

about

83%

of

31,

consolidated

the

operating revenues was from elec¬
Television tric operations, 11% from tele¬
eagerly sought in some phone operations and 6% from
the nation, particularly ice operations.
homes.

of

Portland,

Ore. and Denver,
Decorating materials, inci¬

Col.

Electric

California

California
pur¬

preference

financing will be used to re¬

the

vada.

their

the

of

stock, all of the net proceeds from

year

level.

reduced

mild

as

of

demand

butter
meat

below the year ago

Shoppers

largest

unfavorable

become

call

the

oleomargarine. eration,

and

buying

The

ago.

year

over

conditions
for

4-1 to 4-5.

Housewives continued to spend

Operating
and

pany

dental

furniture, and cotton floor sidiaries
coverings were increasingly pop¬ 31, 1952
ular.

net

Trading activity in the nation's

sub¬

aggregate booked during

week.

the

27,

El. Pew. Go. Shares

stores.

in the nation in

period

For

Merrill

purchase

The domestic market

reg¬
year

Bankers Offer Calif.

1951

Flour

was

preceding year.

1952,

of 154.

Continuing far below the pre-war
level, failures were less than one-

9%

In

week.

decrease of 7%

common

Suburban

while for
Sept. 27,

1951,
ended

Jan. 1 to
volume declined
under the like period of the

ago.

Week

Latest

In

of

weeks

below the level of a

a

istered

and other household goods

week.

week

four

1952,

year ago.

reported from that of

was

similar

uted the wide interest in furniture

43,000,000

Dun & Bradstreet, tinued dull as for the
past several
Inc.,
reports.
While
casualties
weeks, with bakers and jobbers
were about even with a year ago
holding to the sidelines in the
when
133
occurred, they were
hope of lower prices. There was
down

Sept. 27,

bushels,
against 45,000,000 the week be¬
fore, and 50,000,000 in the same

totalled

week

Business Failures Turn

City for

the weekly period ended

vised)

331,100 bales, from
week earlier, and com¬
with 302,400 bales in the
a

to many sections.
103,925 cars and 28,- ness in
However, ap¬
(revised) last week and ideal weather conditions which parel stores generally had larger
84,006 cars and 22,353 trucks in hastened maturity of the crop. receipts than in the corresponding
the comparable period a year ago.
Easiness
in oats
reflected
mild week in 1951.
Canadian plants turned out 6,835 but
Retailers
of
household
steady liquidation throughout
goods
cars and 2,063 trucks against 6,220
the week. Trading volume in all sold about as much as during the
cars
and
2,384
trucks
last grain and soybean futures was prior week and perceptibly more
week, and 4,479 cars and 2,030 down slightly from the previous than in the similar week a year
trucks in the like week of 1951.

Re¬

department

period of last year. In the pre¬
ceding week a decline of 6% (re¬

week

ment

Federal

index,

in New York

nearby

for

lots

fell slightly to

with

was

Sales of the staple in
spot markets last week

small

Trade

week

9%.

the

to

Board's
sales

store

but

season,

the

1952, decreased 5% below the like

to

350,100

about

at

According
serve

shipment.
ten

1951

the

from

estimated

export were con¬

and

open

Series baseball games. The

decline

quiries from foreign sources were

actual

heavy rainstorm

a

In¬

reported more numerous than in

last

York

New

remained

World

declined

South

the

somewhat from recent weeks.

ago

in

Thursday evening, when many

on

prices turned easier under
pressure of liquidation and hedge
selling.
Mill demands for spot

the

trade

suffered adversely from the

combination of

Following

below the

of 2%

drop

a

Retail

three

099 trucks

ceding week,

Beflecting the improvement in

was

7,700,bring¬

bushels for the week,

States against

condition by the end of this year
Is expected by 44%. Critical short¬
ages

Wheat Agreement totalled

Reports."
Total output for the past week
was made up of 100,598 cars and

pressure,

National

year ago,

mills

states.

the

a

000

while
sellers
.nearest the big consuming areas
are
experiencing no let-up, it
sumer

in the like week

according to "Ward's Automotive

farthest from big consuming areas
are

cars

be

can

in

1%.

1 to Sept. 27,

like period of the preceding year.

cotton

the

daily wholesale
commodity
price
index,
com¬
piled by Dun & Bradstreet, Inc.,

week.

United States Auto Output

production.
operations

level

of

decrease

a

1952, department store sales reg¬
istered

credit outstanding continued near

The

week.

irregularly

every

brings reports of new

now

lowest

the

interest.

Its

trend

downward

past

cars,

Price

Downward Trend

862,061 cars, according to
the Association of American Rail¬
11,498

Commodity

Index

Continue
Course

general

week in 1950.

week

reach

downward

reflected

the

For

Sept. 27, 1952,

For the period Jan.

years.

nation

Loadings of revenue freight for
the week ended Sept. 27,
1952

or

Almost

sharply

1951.

of

sup¬

and

continued

week

weeks ended

sales

firm wholesale pork
prices in contrast to weakness in
other
meats.
Slaughter
lambs
plies

compares

5.3%.

Wholesale

great as it is now. The capacity
months.

similar
four

hogs

most parts of the
their
spending
~The index represents the sum slightly in the period ended on
7,624,747,000 kwh. It was 509,487,total of the price per pound of 31 Wednesday of last week, but con¬
100
kwh., or 7.1%, above the
foods in general use and its chief tinued to spend moderately more
total output for the week ended
function is to show the general than in the corresponding 1951
Oct. 6, 1951, and 1,151,701,000 kwh.
Easy
credit
terms
and
trend of food prices at the whole¬ week.
in excess of the output reported
extended
shopping hours
were
sale level.
for the corresponding period two
used by retailers to spur shoppers'
kwh., above that of the preceding
week when output amounted to

will continue to climb for the next
several

was

same

steel for ingots and preceding week.
from 290.83 a week earlier, and
The week's total represented a
castings at 103.5% of capacity.
compared with 302.77 on the like
Steel
output has been slightly decrease of 2,514 cars, or 0.3% be¬
date a year ago.
above 100% of capacity before but low the corresponding week a year
has

sharply

hogs.

weeks, or since

in fourteen

level

worked

Strength in
influenced by reduced

electric light $6.43 on September 30, from $6.45
pared
industry for the week a week earlier to reach the lowest

mills produced

never

live

in

fined

Week

Straight

Fourth

Down for the

prices

lower despite continued advances

any

the

by

7,665,408,000

at

geo¬

graphic districts.

week,

totaled

week ended Oct. 4, when reports
to

Picks up Volume

In Latest

in
the
United
high mark, and

"Steel," the weekly magazine
metalworking, in its current

regions, along with the East
Central States, Mountain,
and Pacific States had more busi¬
two

For

Electric Output

records will be set soon,

more new

week, in the New England and the
West North Central States. These

Wholesale Food Price Index Dips

years ago.

jsays

of

estimated at 101.8% and

ended Oct. 4,

in July.

year

production at 2,035,000.

States, were

$394,493,503 last month, $437,666,400

2,093,000 tons. One
rate was

100.8% or
ago the

at

stood

output

ago

215

covering

totals,

gots and steel for

the

during

occurred

increases

beginning Oct. 6,1952,

for the week

castings. In the
week starting Sept. 29, the rate
was an increase of 7.7% over the
was 105.7%
(revised) of capacity
57,685 a year ago, but a decrease
and actual output totaled 2,195,000
of 7.1% from 66,830 in the corre¬
tons, a new high record. A month
sponding 1950 period.

respective

year

ating rate of steel

previous month

Declines from the

last

than

remained steady;

and construction

and Industry

-the State oi Trade

Lard

wholesaling con¬

More service and

Continued from page

wholesale

did

markets

not

vary

appreciably in the week, but

re¬

of

re¬

totaled

After

the

stocks,

of the

consolidated

for the year ended

income

411.
on

revenues

its

$14,640,040

amounted

dividends

preferred

and

to
of

com¬

sub¬

Aug.
and

$2,269,-

$680,920

preference

the balance

Spot cocoa was firm
applicable to
futures
registering
small mained close to the increased the common stock was $1,588,491.
advances, aided by short covering level of recent weeks. The total Quarterly dividends of 15 cents
Casualties involving liabilities and
hedge-lifting against sales of dollar volume of wholesale orders per share (an annual rate of 60
under $5,000 declined slightly last actuals.
Warehouse
stocks
of remained slightly larger than that cents per share), have been paid

week

of

1939

when

279

were

with

recorded.

week but exceeded the 107 of this

cocoa

size which occurred

to

sharper
small

decrease

failures

a

year ago.

was

the

for.

A

in
previous

noted

week and last year.

showed

a

93,324 bags,

99,157

one

as

further

decline

compared with

week ago, and 212,895

bags on the same date a year ago.
Demand

for

coffee

was

rather

a

year

ago.

Merchants

ordered steadily to broaden
stocks

for

selling

season.

the

Department

coming

their

on

the

common

stock

from

June

1, 1945 to date.

holiday

Elected Director
store

sales

on

a

The

election of Albert L.

Wil¬

The
week's
decline
centered quiet with some easiness result¬ country-wide basis, as taken from liams as a
director of J.
Henry
principally in retail and whole¬ ing from pressure in the spot the Federal Reserve Board's in¬ Schroder Banking Corporation was
market.
dex; for the week ended Sept.
saling mortality.
In commercial
27, announced by Gerald L.
Beal,
service failures, there was a slight
The
sugar
market
remained 1952, declined 2% below the level President. Mr. Williams is a direc¬
decline.
In the tor, Vice-President and Treasurer
Contrary to these de¬ firm with domestic raws advanc¬ of the preceding week.
clines, both manufacturing and ing to 6.60 cents, delivered, the previous week an increase of 1% of International Business Machines
-

construction

had

more

failures.

highest price of the year.

was

recorded

from

that

of

the

Corporation.

Volume 176 " Number 5158

.

.

The Commercial and
Financial Chronicle

.

(1361)

Canadian Securities
By WILLIAM J. McKAY i
Canadian

won

humanity has

dollar

War II. I

exchange re¬ that they are
finding it more dif¬
relatively stable at its pre¬ ficult to sell
goods abroad. Im¬
rate, despite the slower pace porters, of
course, are finding for¬
the flow of new investment
eign goods cheaper and do not ob¬

mean

mains

ever

capital

into

Canada

United States
column

last

from

week.

Should

verse

movement

would

again bring the

dollar below the U. S.

to

curb

announced

parity, the
now

it.

Canada's
United

from

official

States

reached

well

Finance
on

Ottawa

Oct.
that

reserves

dollars

and

America's battle for the abundant life.
"There

of

on

by dumping some of it
into foreign markets in
exchange
for Canadian
funds, it would like¬

Bache & Co.

Sept. 30.

dollar, had continued
through the first nine
Sept.

30

they

months

were

more

than $200 million greater than the
$1,610 million on the correspond¬

ing date

a

year

the foundation under all of

unless

Expanding

immediately Bache

Co., members of the New
Stock Exchange and other

Charles

and

business

broadcasts

into

York

radio

news

five

additional

using the following stations:

areas,

phia; WGAR, Cleveland;
WMAL,
Washington, D. C., and KABC, San

The

peak of $1,856 million on
Sept. 30 compared with the criti¬

Antonio.

cal low

based

of less

than $500 million
at the end of 1947 when Canada
was forced to
impose

The

broadcasts

will

be

on

investors and those with

no

huge supplies of U. S. funds.
The reserves, expressed in terms
of U. S.
dollars, had climed to

$1,828 million

on

June 30, jumped

again to $1,845 million

July 31
and continued the
upward stride
to $1,848 million, on
Aug; 31.
There
of

seems

Canadian

in

addition

to

rious

exchanges, the

tures

news

items

the

^United

States, due in large part ', to the
increasing amount of strategic raw

F.

Kettering

Continued

business and

plague

jrom

H.
are

B.

Simon

Co.

an

proceeds

are to

It

to

furnisb

addi¬

to

seems

clear

case

that needs

that here

me

of

rate purposes.

The Blando company owns and

is

a

discrimination, one

challenging.

chase up to 65,000 tons of ore from
the East Rim Nickel Mines, Ltd.,

Toronto,

for processing by Falconbridge Nickel Mines, Ltd., also
of Toronto.

The

begin

Lef-

new

rubber colorwall au¬
tomobile tire process
(patent ap¬
plied for) and now operates two

plants,

of which is devoted

one

ex¬

clusively to the Lefferts Colorwall
The other plant
presently
manufactures blank preforms
which are used to make
process.

East

Rim

mining

firm

expects to

and

crushing ore
phono¬
from partially developed
deposits graph records but the equipment
immediately, at a rate of 3,500 is similar to that used in process¬
short tons monthly.
Up to the ing colored rubber and this plant
present, the company has delayed
the mines because
of

working
lack
ore

of

processing

deposit

in

facilities.

this

mated to contain

area

over

is

The
esti¬

two million

The
ess

Falconbridge Co. will

the

ore

can

be

easily

in

its

proc¬

plants at Fal¬

(Special to The Financial

Edward

purchase agreement,

Street.

are

not being

however,

of lack of proper

also

BARBARA,

H.

Peirce

has

avenues

money,

mostly

flow

of

from the

become

Paine,
Webber,
Curtis,
1100
State

&

American Telephone and Tele¬
graph Co. is engaged in the big¬
gest private financing operation
in history. In the past five years
the company

has raised $2 billion
by issuance of debentures con¬
vertible into capital stock.
Sup¬

Chronicle)

CINCINNATI, Ohio —Webb

C.
Gower has become affiliated with
H. B. Cohle & Co., Union Trust

United States, is giving an assur¬
ance
of
a
favorable balance of

Building, member of the Cincin¬

payments,

nati

which

may

keep

the

Canadian dollar at its current
pre¬
mium of about 4%. It is a matter
of considerable concern,
however,
to both the Canadian Government
and to Canadian

industries, should

the upward trend in the
rate
continue.
It
has

exchange

already

brought complaints from exporters




I want to buy some of those

pose

debentures, which have about
high
the
the

officials

tells

can

chase

limited

is

Federal

lations.
•
I think I

and

Midwest

Stock

Ex¬

changes

With Walston, Hoffman
(Special to The Financial

LOS

can

they'll allow

ANGELES,

Hoffman

&

now

Spring Street.

margin

do better.
tells

bank
me

pur¬

because
regu¬

I go to
me

that

90% credit

a

on

Why the difference?
margin regulationsj The

issue is

a

bond not

a

Walston,
South

men

Only

undertakings are finding it
hard to obtain ih£U
necessary capital -to explore new
new

increasingly

fields."

And

he

had

also

this to

say:

"For the most part organized
investing has overlooked the fact

that the blue chips of today were
the

promotions of yesterday."

More

and

porations

more

are

today our cor¬

resorting to debt fi¬

Freedom
of
Capital is a big
phrase, just as Freedom of Labor
is a big phrase. Freedom of Capi¬
tal embraces more than, say, the
right to make a profit
just as:

attempt otherwise to control
restrict the securities market.

...

or

of

Labor

means

than the right to strike.

more

,

The automotive industry started
Capi¬
here on a small scale. It got its
which is per¬
start from the savings of a fewhaps the greatest single deterrent
men. Its employees were numbered
to a healthy securities market. In
in the hundreds. ' •
the past, it has been argued by
As the industry grew, scores
the Treasury '• staff that the tax
should be raised and the holding of subsidiary industries — making
period lengthened. This is curious products never heard of before—
were
created.
New .jobs
were
reasoning.
A shortening of the holding pe¬ made, higher wages paid. Today's
riod from six months to three, automobile, a triumph of mass
production, is the product of hun¬
coupled with a reduction in the
Then there is the present

tal Gains Tax Law,

-

tax rate would pro¬
government with much
greater revenue than is produced
under the terms of the present
present 26%
the

law.

In addition,

such

a

would thaw out capital

revision
now

fro¬

dreds

low

freedom

investors

their

investments

and their

shift

to

conditions

as

we

have

a

law that

freezes capital, a law which sub¬
stitutes tax considerations for good

judgment
tion.

I

in

a

have

business

heard

of

transac¬

too

people who have solved
lemma

refusing

by

to

of-

and

men

This

spectacular

wealthy

men.

could

growth

not have been financed

What

by

few

a

made

that

many

this di¬
their

put

ment of
of

the savings

people,

of thousands
putting their

people

money where they thought
would do them the most good—

and, in the process, benefiting not
only themselves but the nation.
That
all

over

story has been duplicated
America—in the steel in¬

dustry, the oil industry, the rail¬
road

industry, the chemical indus¬

try,

electronics—the

products

of

work—which is not my men, brains and freedom of capi¬
conception of a growing and pro¬ tal, freedom to put a dollar where
money to

you

ductive economy.

think it will do you the most

good.
The

Example

of

a

minute that I

and the amount of credit actually

being used in the market, rather

Canada

than

one

slide

rule

am

calculated

a

curious

used

policy

in
a

Washington.
new

I

long-term

which will

carry

prevent

Congressional mandate to
"the

credit for the

excessive

purchase

or

use

of

carry¬

ing of securities," but which will

a' couple

Opens

In Canada, there is no

(SpecJal to The Financial

capital gains tax law.
The1 Federal

advocating

Federal

on

A footnote to my

her riches.

of

tax

other

structure

has

Chronicle>

ST.

PETERSBURG, Fla.—Ger¬
R. Jobin, Investments, Ltd.,

facets with ald
familiar. has been formed with offices at
Tax, for in¬ 1617 28th Avenue, South to engage *

which I know you are all
The

Excess

Profits

„

of components manufac¬
tured by hundreds of smaller com¬
panies.

growth possible was mass invest¬

judgment dictate.

tal Gains Tax

thousands

world,

by tax considerations and al¬

zen

of

women, the products of raw ma¬
terials drawn from all over the

That is capitalism—a way of do¬
comments can ing business derided by fellow
be found just across the river. travelers, by dewy-eyed theorists,
chase of securities. I am advocat¬
Canada, possibly the most dy¬ bv politicians looking for a whip¬
ing a margin rate of 40 to 50%,
namic nation in the world today, ping boy.
a rate which has some reasonable
is seeking and welcoming vast
relation to
the
values involved
sums of venture capital to exploit
G. R. Jobin

Calif.—James
550

not

stock.

Chronicle)

with

Goodwin,

for the

25%

the

deal.

Federal

out the

M. Anderson is

me
to

Reserve

The

bank.

the

give

that

me

business

and

we hear on all sides the
that the sources of venture
capital are drying up and that

as

York Stock Ex¬

New

who

sufficient

of

"Today

Capital must be free and mo¬
rating as any security on bile if it is to have maximum pro¬
market, using my credit in
ductivity. This is a truism of our
process.
I go to a member business
system. But in the Capi¬

credit he

flow

into

cry

a

firm of the

further the

regulation has

nancing. Conceivably, if this trend
should continue, there would be

vide

favor unlimited credit for the pur¬

With H. B. Cohle Co.

processing
of

—

with

(Special to The Financial
new

Calif.

debt financing
equity fi¬

than

Don't think for

be¬

facilities.

foreign

Jackson

Chronicle)

making

nancing.

a

SANTA

affiliated

These

attractive

change

Now With Paine Webber

Sudbury mining district of
Toronto, a source of the ore in the

cause

of

Maspeth, L. I., N. Y.

the

now,

inexpensively

The plants are located in Woodhaven and

conbridge, Ontairo, and Kristiansand, Norway. Other deposits in

worked

and

converted
to
the production
Lefferts Colorwall Tires.

in

more

of

tons of nickel.

of intent, the result of
margin regulations is to

assist

not labor

sion commented:

Regulated Industiy

matter

a

present
corpo¬

metal, nickel. Under the agree¬ controls
exclusively the
ments, the United States will pur¬ ferts natural

open

and extravat-

free and open market would-be
legislated out of existence.
>

be used

and

waste

no
such operation as equity fi¬
nancing through the public and a

government regulations do
not apply
either — I might put
down 10 or 15% or nothing.

issue of

being recog¬
is —an

recently the Chairman of the Se¬
curities and Exchange Commis¬

us.

way,

of. New York

publicly offering

Materials; . Procurement for additional
plant facilities
Agency, has contracted Ayijth two
equipment and for general
firms

need

ment

11

page

An Ovei

Sh.

a

it

gance.

Freedom

Offered at $1

what

generally have observed it.

The Securities Business—

va¬

finance."

Defense

supplied ofimportant

for

scale with¬

a

that this tax is

nized

invitation to

observed

>

,

Canadian

note

on

It is gratifying to

equity channels. I've
it; economists, govern¬

materials imported .'from, Canada 300,000 shares of common stock
The High Margin Requirements
(par 10 cents) of Blando Rubber
to bolster the
defense'effort. Only Corp. "as a
Now, these credit restrictions
speculation" at $1 per
recently it was announced that the
have an even more pernicious ef¬
share.
'
Federal Government, through the
fect.
While I feel sure it is not
The net

tional

creation of debt
out precedent.

the

only one
of many
things made with ma¬
chine tools.
We have electric

"Fair Deals" to

Blando Rubber Stock

to

retarded

program fea¬

on

an

funds

expe¬

on

of

menace

great industries and has made

We should then not have had "New Deals" and

giving

closing prices of securities

heavy deipand for

dollars

"In

e

heavy with debt. And yet our tax
laws are driving business to the

thesis that all this

"noisy blanks" of the politicians.
If only more of the rank and file understood this
simple fact—and acted accordingly at the polls.

on

to be good prospect

continued

a

said.

members
t h

our

the

Canadian-, developments plus rience in investing. The response
from both of these
month surpluses in
groups of peo¬
foreign trade
ple has been gratifying," Bache &
has resulted in Canada
obtaining
Co.

to

Club

Capital Funds

Of course, it is in such places as this that we find
the real secret of "the more abundant life"—not in

Henry Gladstone's "To¬
day's Business" show, sponsored
by
Bache
& Co., and heard over
temporary
import curbs to rebuild her re¬ WOR (Mutual) in New York Mon¬
serves.
day through Friday at 7:15 p.m.
"The Henry Gladstone show is
Now the big movement of
capi¬
tal from the United States and designed to reach both seasoned
other countries for investment in

out

financial practice which is
inherent in a capital structure top

We
our

refrigerators, radios, washing machines, stoves and
many other appliances you can easily call to mind.
"All of them brought to market millions of
people
who could not have afforded these
things if it had
not been for what we call
'interchangeability of
parts' more often referred to as 'mass production'."
—Charles F. Kettering.

&

leading
exchanges, is expanding its finan¬
cial

point

Regulation Obstructs Flow of

progress possible.
"The automobile is

Mr. Abbott WGN, Chicago; WCAU, Philadel¬

ago,

reported.

,

taken,

actually

sound

ability to go from agri¬
culture to manufacture has laid

Radio Broadcasts
Effective

to swell

of 1952.

On

be

85%

farms

on

to

Economic

"The

conditions change
radically.

the exchange value of the Cana¬
all

will

category

money by debt financing
long as the interest rate stays
under 6%%.
It is not necessary

machine tools.

ly boost the Canadian dollar pre¬
mium still further. However it is
quite apparent that no action of
kind

time when

Today, about 15%
of them do it and a
large per¬
centage of the rest, in fact mil¬
lions, are in our shops using

reserves

this

was a

citizens worked

our

to raise food.

ject to the premium. But should
the Canadian Government
attempt
to reduce its U. S. dollar
official

The reserves, used as a cushion
to block any
sharp fluctuations in
dian

of

gold

all-time high of $1,856

an

million

re¬

Canadian

Minister Douglas Abbott
3

a

which

occur,

Canadian Government is
prepared

the

discussed in this

as

greatest battles that
I don't mean World

fought.

mium
of

of the

one

that

makes

as

"Machine tool builders have
produced the equip¬

ment that has

in

pany

Of Course!

49

stance, literally subsidizes debt fi¬ in the securities business. Gerald
nancing, almost forces a company R. Jobin, formerly with Merrill
in the excess profits category to Lynch, Pierce, Fenner & Beane,
go into debt to raise capital. I am is general partner, and Robert R.
informed that an average com¬ James, limited partner.

.

:

50

The Commercial and Financial Chronicle

(1302)

...

.

Thursday, October 9, 1952

* INDICATES

Now in

Securities
Admiral Corp., Chicago,

Registration

111.

miral Corp., Ltd., at rate of one
for each two shares of Canadian

October 9,

Admiral stock held.

(Bids

19.

October

Foote

Mineral

CST)

a.m.

13, 1952
;

Mich.

October 14,

California Oregon Power
(Bids

Common

3

*_—Bonds

Co
PST)

a.m.

Oct.

Bids—To

104,104 shares of common stock (par $5).
supplied by amendment.
Proceeds—To
selling stockholders. Underwriters — Harriman Ripley
&

—-Equip. Trust Ctfs.

Georgia Ry

(Bids noon EST)

October 20,
Carolina Power &

/Bids

(EST) on Oct. 28. If no bid is re¬
ceived which at least equals the minimum price of $14,000,000, the trustee will surrender and deliver the cer¬
tificates for such division equally between the parties
a.m.

—Bonds

—

rights expire Oct. 31;;
For working capital.

Seiberling. Rubber Co————-Debentures
iBlair,

Standard

Rollins & Co.

/

Inc.)

(Scott, Khoury, Brockman & Co., Inc.)

certificates for such shares of stock to be

issued.

October 21,
Gulf

* Benson & Hedges, N. Y. (10/22)
filed $3,000,000 of 15-year sinking fund deben¬
tures due Oct. 1, 1967. Price—To be supplied by amend¬
ment. Proceeds—To step up production of Parliament
cigarettes. Underwriter—Morgan Stanley & Co., New

Co.

Morgan

*

.

V5"'

Sachs

11

&

Co.)

through Clemens E. Gunn of Gunn, Carey & Co.,

(in denominations of $60, $100, $500 and $ 1 ;000 each >.
working capital.
Office—2110 Central

..Bonds

Proceeds—For

York.

Underwriter—None.

St., Kansas City, Mo.

record Oct. 21 at rate of

one new

October 22,'T952v;v'^;^>^-.4,

...

(10/22)

Price—To be supplied by amendment. Proceeds—
To step up production of Parliament
cigarettes. Under¬
writer—None. Tobacco & Allied Stocks, Inc. (owner of
common
t

Pistell

&

Co.,

& Hedges.—

Benson

&

Inc.)

'

Co.)

Corning Glass Works
(Harriman Ripley

&

_—.Common

_

Co., Inc. and Lazard Freres

October

& Co.)'

Electric

Jefferson

.——^Common

Co.—...

•/

October 27, 1952

r

(White, Weld & Co. and,George R. Gardiner, Ltd.)
•

to be made

*

(Offering

share. Proceeds—

acquire leases and for corporate purposes.
writer—None. To be named by amendment.

;

Under¬

Sinclair

Oil

(Offering

Calaveras Cement Co., San
Francisco, Calif.
Aug. 15 (letter of notification)" 4,100 shares of common
stock (par $1). Price—At market
(estimated at $13

EST)

a.m.

;

Chemical

"'i

to

—

November.10, 1952 ■"

Corp

—

Se^t 23' filfed 625,000 shares of common stock (par $5)

Common

to be oHered as follows: About

scripfibh By

to

stockholders—Blyth

November 15,

& CO.,

(Bids

fnolf'
i8 filed $7>000»000 first
1982.

mortgage bonds due Oct. 1,
Proceeds—To repay bank loans. Underwriters—To
determined by competitive
bidding. Probable bid¬
ders: Halsey, Stuart & Co.
Inc., Smith, Barney & Co.
Union Securities
Corp. and Carl M. Loeb, Rhoades &

to

be

November

be

1952

of which

(Bids

Pacific

& Co., Inc., The First Boston Corp.
Salomon Bros. & Hutzler
(jointly); Shields & Co.
Blair, Rollins & Co. Inc. (jointly); White. Weld &
Bids—To be received up to 8 a.m.
(PST) on Oct. 14

to

Invited)

..Bonds

be

invited)

(Bids

8:30

Debentures

PST)

a.m.

November 24,

.

f •

1952

(Bids

San Francisco,

—Bonds
noon

New Orleans Public Service Inc.—
to

be

ii- "

Bonds

invited)

Carolina Power & Light Co. (10/20)
17 filed $20,000,000 of first mortgage bonds due

1982.

Proceeds—For

To

be

determined

bidders:
W.

New York

competitive

Boston

Pittsburgh

San Francisco

Private Wires




to

all

offices

Chicago

Cleveland

Underwriters—

bidding.

Probable

Halsey, Stuart & Co. Inc.; Lehman Brothers;
Langley

&

Co.

and

The

(jointly); Kidder, Peabody & Co.

Philadelphia
■

C.

by

construction.

First

Boston

Corp.

and Merrill Lynch,

Pierce, Fenner & Beane (jointly); Equitable Securities
Corp.;

Smith,

(jointly).

Barney

&

Co.

and

Bids—To be received

up

Blyth
to

:

• ,r

Farmers Underwriters Association, Los Angeles,

Sept.

new

Co;y

July 7 -filed 1,613,168 shares of class A common stock
(par 25 cents) and 2,744,034 shares of class B common
stock (par 35 cents), the class A stock to be sold only to
policyholders of The Farm & Home Insurance Co. Price
—At par. Proceeds—To increase capitaL UnderwritersJohn J, Rhodes and James E. McNelis, officers and direc¬
tors of the two companies.

,

and

Phoenix, Ariz.

EST)

December 15,1952
(Bids

•

Farm & Home Loan & Discount

Gulf States Utilities Co

company

Co.« Proceeds—For
new Construction.
Underwriters—To be determined by
competitive bidding. Probable bidders: The First Boston
Corp.;: Lehman Brothers: Kidder, Peabody & Co., Merrill
Lynch, Pierce, Fenner & Beane and White, Weld & Co.
(jointly); Smith, Barney & Co.; Blyth 8c' Co., Inc.; Carl
M. LOeb, Rhoades & Co. and Wertheim & Co. (jointly).
Bids—Expected to be received on Oct. 27.

18, 1952

Telephone & Telegraph Co

80,000 shares will be offered by

170,000 shares by the Philadelphia

...Bonds

Long Island Lighting Co.

one new

i&5,000 v shares

•: buquesne Light Co., Pittsburgii^ Pa. (10/27)
SepLS30 filed 250,000 shares of coinmon'stock (par $10),

Inc.):

Detroit & Toledo Shore Line RR.

(10/14)

420,<Q00^hare$ for SUb-

stockholders of-'hetJordr Get. 2i;. 1952

the )^ompahy

American Trust Co., San Francisco.......Common
(Offering

rateybf

abaut

November 12, 1952

per

common

share for each 50 shares held,: amd
fop subscription: by employees-®f
titid its subsidiaries and " affiliated " corfipaniesS/'Iheroffering; will; open Nov^3 and close on" Nov.
26.| ?rice—To be supplied by• amendment.; Proceeds*—
For
^lieralt corporate purposes. • Underwriter—None: v

at

;:

.—Debentures
underwritten by Smith, V1
Pterce; Fenner
Beane)
;
___

stockholders—to he

<wv.,

;"',

stockholders—No underwriting")

to

Barney & Co. and Merrill Lynch,

share). Proceeds—To Henry C. Maginn, Executive VicePresident.
Underwriter—Walston, Hoffman & Goodwin.
San Francisco, Calif.

®ta^nencan Trust Co., 464 California St.,

11

November 3, 1952

Dow Chemical Co...

(par $1).

vertible-5% preferred stock to be offered for subscrip-

tiop by stockholders of record Oct, 6 at rate of onenshare
forlea^i 10 common shares held; rights ;to expire on Oct.
31. £.Price—At par: ($2 per share), < Proceeds—For general

Lines, Ltd.-^--—ACIass A & B

(Bids

®ri*tol Oils Ltd., Toronto, Canada

California Oregon Power Co.

October £8, 1952

American President

by. Oil and Gas Co.

per

:

,

$25,000. Proceeds—
For acquisition, exploration
apd operation of oil prop¬

Ltd. (Nev.)
April 7 (letter of notification) buuuiut) shares of common
stock' (par one cent)'. Price-^-50 cents per share.
Pro¬
ceeds
For, rehabilitation and dev *opment program.
Office — Suite 839, 60 East 42nd SL New York 17,
Y.
Underwriter---Gardner & Co^ New York. ?
Ddle (James 1' Engineering Co.
v
>;«
Sept/''1'9 (letter of notification) 100,000' shares; of con¬

;

• ••
(Bids to be invited)-., ^ ;'V;!' VV
'
Redwater Utilities Holdings Oil & GasLtdik.iCom

and

be accepted in an amount less than

"Jnce—Approximately
64.48 cents
To

r

...

City,

stock

<
■'

t

i...^Common

Duquesne Light Co

The Oil and> Gas
Co., Madison, N. J.
Sept. 26 filed $2,500,000 "contributions in oil property
interests (1.953 fund).". Price—No contributions will

common

*

23, 1952

(Paul H. Davis & Co.)

'

Devil Pfeak- Uranium,

•

"*

•

Underwriter—Parsons & Co., Inc., Cleveland, O.
Blackwood
Nichols Co., Oklahoma

Sept. 25 filed 1,000,000 shares of

capital. Offering—Expected before Oct. 15.

(Offering to stockholders—no underwriting)

Bingham-Herbrand Corp.
"
Sept. 4 (letter of notification) 5,000 shares of common
(par $1).
Price—At market (approximately $14
per share).
Proceeds—To E. E. Parsons, Jr., a director.

are

<

.

——-Common

stock

erty Underwriter—None. Solicitations

Deerpark Packing Co., Port Jervis, N. Y. ?■
March 21 (letter of notification) 235,000 shares of com¬
mon stock (par 10 cents).
Price—$1.25 per share. Pro¬
ceeds—To repav RFC loan nf *41 fifin and for Working

Hedges—————Debentures <
(Morgan Stanley

held.

stock) will purchase anyr unsubscribed shares,

K.

(C.

Benson &

share for each 10 shares

approximately 55% of the present outstanding

>

Allpark Finance Co., Inc.———————Debentures

Oct. 2 filed 40,068 shares of common stock (par $4) to
be offered for subscription by common stockholders of

Co.

vidual

,

^

*

EST)

a.m.

are

Sept 18

—Common

Virginia Electric & Power Co.—
(Bids

Price—r$25 per share. Proceeds—
Underwriter—None, unless 1,000

unsubscribed which will be sold to one indi¬

shares

;;Crown(i>rug Co.,..Kansas'City',; Md.
(letter of notification) $250,000 of 4¥2% con¬
vertible debenture notes due Oct. 1,1962; Prtce^At par

_—Common

Co.)

&

—

——

(Goldman,

.

Cleveland, Ohio.

—w--.

(Peter

Hecht

.

1952

Sulphur Corp

Oct. 2

;

_____...—Common

Turfgsten Corp

Co., Inc. and Lazard Freres & Co.,.both of New York.

of record Oct. 1 at rate of one share for.each three held;

EST)

noon

be

ic Cowle<v Co., Cayuga, N, Y.
■->
•»; • ■
Oct. 6 (letter of notification) 3,000 shares of capital stock
(par $5) ;tn be offered for subscription -by stockholders

1952

Light Co

filed

3

Price—To

October 16, 1952
Central of

association. Underwriter—Nope.

* Corning Glass Works, Pittsburgh,Pa. (10/22-23)

(White, Weld & Co. and Watling, Lerchen & Co.)

Underwriters

by competitive bidding.

1952

—-———Common

Aeroquip Corp.

tween the United States of America and the Dollar in¬

°j

amount.

—Wholesale purchasing

October 15,

be received by The Riggs National Bank of Washington,
D. C., as trustee under a "Settlement Agreement" be¬

and

offered for sale to members and others. Price
Proceeds—To build plant. Business

—At face

registration.

and the other half to the Dollar interests.

an<*

Proceeds—To pay

Underwriter—None.

ness; to be

—Bonds

(Bids noon EST)

(Calif.) (10/28)
Sept. 4 filed 100,145 shares of class A stock (no par)
and 2,100,000 shares of class B stock (par $1). Proceeds
—One half to go to the Treasurer of the United States

•

filed

Cooperative Association, Kansas
City, Missouri
Sept. 24 filed $3,000,000 of 10-year 4J/2% subordinated
certificates of indebtedness, $6,000,000 of 20-year 5y2%
subordinated certificates of indebtedness; and $1,000,000
of 25-year 5^2% subordinated certificates of indebted¬

1952

Utah Power & Light Co_

American President Lines, Ltd.

* Benson & Hedges, N. Y.

ISSUE

Consumers

Co.)

&

(Dillon, Read & Co. Inc. and Blyth & Co., Inc.)

Price—At par. Proceeds—
— Houston, Tex.
Under¬
writer— C. K. Pistell & Co., Inc., New York.
The pro¬
posed offering of preferred and common stocks have

_

25

Debentures

j.

stockholders—Estabrook

to

Bank of America N. T. & S. A

debentures due June 30, 1962.
For working capital.
Office

cause new

11

Co

(Offering

Allpark Finance Co., Inc., (10/22)
$500,000 of 6% sinking fund convertible

and

Preferred

(Bids

Aug. 28 filed

to 11

REVISED

j?Clinton Machine Co., Detroit, Mich.
Oct. 1 (letter of notification) 18,035 shares of common
stock (par $1). Price — $2.50 per share.
Proceeds—For
working capital. Office—21535 Groesbeck Road, Detroit,

10, 1952

October

bank loans. Underwriters—White, Weld & Co.,
New York, and Watling, Lerchen & Co., Detroit, Mich.

up

invited)

be

to

Seymour Water Co...

repay

terests,

1952
Equip. Trust Ctfs.

Central RR. of New Jersey—

Aeroquip Corp., Jackson, Mich. (10/15)
Sept. 24 filed 195,000 shares of common stock (par $1),
of which 150,000 shares are to be sold by company and
45,000 shares by eight selling stockholders. Proceeds—To

—To be determined

ITEMS

debentures due Aug.

amendment.

exchange offer will expire on Oct. 17.
DealerManager—Dempsey & Co., Chicago, 111. Statement ef¬

been withdrawn from

PREVIOUS

$2,500,000 of 10-year convertible junior
1, 1962. Price—To be supplied by
notes issued to the Ports¬
mouth Steel Corp.
Underwriter—Halsey, Stuart & Co.
Inc., Chicago and New York. Offering — Temporarily
postponed.
July

NEW ISSUE CALENDAR

This

*

ADDITIONS

SINCE

Cincinnati Enquirer, Inc.

(par $1) being
Canadian Ad¬
share of Admiral stock

June 2 filed 41,669 shares of capital stock
offered in exchange for common stock of

fective June

•

&

noon

Co.,
(EST)

Inc.
on

Oct. 20 at Room 2033, No. 2 Rector St., New York 6, N. Y.

/California

Sept; 25 (letter of notification) 2,000 shares of common
stock (par $1).
Price—To be supplied by amehdment.
Proceeds—To John C, Tyler, the selling stockholder. • Offiee-*-4680 Wilshire Boulevard, Los Angeles, Calif. Un¬
derwriter—Lester, Ryons & Co., Los Angeles, Calif.
Floseal Corp., Seattle, Wash.
Sept. 12 (letter of notification) 24,950 shares of capital
(par $1). Price — $12 per share. Proceeds — For
general corporate purposes. Address—c/o The Corpora¬
tion Trust Co., 1004 Second Ave., Seattle 4, Wash. Un¬
stock

derwriter—None.

~

Volume

•

176

Number 5158

.

.

.

The Commercial and Financial Chronicle

Foote Mineral

Co., Philadelphia, Pa. (10/13)
19 filed $1,973,000 of convertible subordinate de-

Sept.

.

dentures due Oct.

by

1, 1967, to be offered for subscription
stockholders, at rate of $500 of debentures

common

for

each

66

shares of

rights to
expire
principal amount.

common

about

Oct.

stock

held

23.

Price

Proceeds—From

sale

of

as
—

Oct.

8;

100%

of

of

debentures,
together with funds from bank loans, for constiuction
of new lithium chemical plant, to enlarge ore mining
and concentrating plant, for retirement of $200,000 term
note held
by insurance company, and for additional
working capital. Underwriter—Estabrook & Co., Boston,
Mass.

* Kimberly Corp., Culver City, Calif.
Oct. 1 (letter of
notification) 25,000 shares of capital
stock (par $1),
Price—$3.371/2 per share. Proceeds—To
Leo

Kimberly

and

Zyga Taube, selling stockholders.
Underwriter—Morgan & Co., Los Angeles, Calif.

McCarthy (Glenn), Inc.
June 12 filed 10,000,000 snares of

record

Sept. 23 at rate of

one

share

new

each

for

15

shares held; rights expire Nov. 9.
Price—$200 per share.
Proceeds—For working capital.
Office—18 Hamilton St.,
Bound Brook, N. J.
Underwriter—None.
Front

Range Mines, Inc., Denver, Colo.
Sept. 8 (letter of notification) 125,000 shares of common
Stock (par $1).
Price—At market (approximately 37V2
cents per share). Proceeds—To Irene F. Marple, a direc¬
tor.

Underwriter—Stanley Pelz & Co., Inc., New York.

General

Laboratory Associates, Inc. (N. Y.)
Sept. 30 (letter of notification) 7,435 shares of common
stock.
Price—At par ($20 per share) to be offered for
Subscription by common stockholders of recoid Oct. 15
at

of

rate

expire
•and

to

share for each

one

Oct.

30.

reduce

two shares

held; rights to
expansion of facilities

Proceeds—For
bank

loans.

Street, Norwich, N. Y.

Office—17

East

Railroad

Underwriter—None.

Jc Glen Roger Credit, Inc., Washington, D. C.
.Sept. 24 (letter of notification) 30,000 shares of 6%
•cumulative convertible preferred stock (each share to be
convertible into IV2 class A shares of $1 par value). Price

;—At par ($10 per share). Proceeds—For working capital.
Office—1108-16th St., N. W., Washington, D. C.
Under¬
writer—John C. Kahn Co., Washington, D. C.
it Great Buffalo Mining Co.
Oct. 1 (letter of notification) 1,200,000 shares of common
stock (par one cent), of which 700,000 shares are to be

corporate purposes.

McGraw

Sept.

8

filed

225,000

shares

of

stock

common

(par

10

cents).

Price—$3 per share. Proceeds—To pay costs of
drilling 25 test wells and for other corporate purposes.
Underwriter—Peter

of

common

ol

one

stock

share

Hawaiian

Co.,

Ltd.,

Honolulu,

T.

S.

for subscription by common stockholders of record Oct.
the ratio of one new share for each 10 shares held.
Price — At par ($20 per share).
Proceeds — To

repay

short-term notes and tor

construction.

new

Underwriter

—None.
Hecht

Co., Baltimore, Md.
Sept. 30 filed 135,000 shares of

(10/21)

stock (par $15).
supplied by amendment.
Proceeds—For
-expansion and working capital. Underwriter—Goldman,
Sachs &

common

be

Co., New York.

Hilseweck

Minerals

Corp., Dallas and

Oklahoma

City
$1,500,000 of 20-year non-negotiable de¬
bentures due Aug. 1, 1972 and 139,920 shares of common
18 filed

stock

(par

$1).

Price—$960

$1,000

debenture, plus
the purchase
of 50 shares of common stock. Proceeds
For general
corporate purposes. Business—To engage in oil and gas
stock

common

subscription

per

warrants

for

—

business.

Underwriter—None.

Idaho

June

Maryland Mines Corp.
200,000 shares of common stock

Price—At

Midcontinent

market

(on

the

San

Francisco

(par $1)

Stock

Ex¬

Testament

of

'Francisco.

Calif.

Errol

Bechtold,

deceased).

Office—San

Underwriter—None.

International

Co., Grove City, Ohio
Sept. 26 (letter of notification) $50,000 of 5V2% secured
debentures due March 15, 1963.
Price—At par (in de¬
nominations of $1,000 and $500). Proceeds—For working
capital.
Underwriter—The Ohio Company, Columbus,
Mineral Exploration Corp., Ltd., Toronto Canada
July 29 filed 2,000,000 shares of common stock, each
share

to have attached an "A," "B" and "C" warrant,
giving the holder the right to buy one additional
for each two shares purchased in
two, three, or
five years, at $1, $2 and $3 per share, respectively. Price
—For 2,000,000 shares, $1 per share—Canadian.
Pro¬
ceeds—For exploration, development and acquisition of

each

properties.

Underwriter—Brewis & White, Ltd., Toronto,
Names of United States underwriters to be sup¬

Corp., Beverly Hills, Calif.
,Sept. 22 (letter of notification) 299,635 shares of com¬
mon
stock, to be issued as follows: To William Hoeppner, 6,985
shares; to stockholders of Soft-Flex Glass
Fabrics

Corp.,

17,650

_Price—At

'general corporate
-Drive,

Beverly

shares;
($1

par

purposes.

Hills,

and

to

share).
Office—119

per

Calif.

public, 275,000
Proceeds—For
South

Beverly

Underwriter—Douglass

&

Co., Beverly Hills, Calif.
Iowa

con¬

The remain¬
ing shares will be offered for sale primarily to farmers
—

At

par.

Proceeds

For

—

new

per

Public

Service

Co.

St., N. W., Washington, D. C. Underwriter

—Aetna Securities Corp., New York.

derwriter—Greenfield & Co., Inc., New York.

share.

shares of preferred stock. Price—$1 per
purchase steel structures and mo¬

Proceeds—To

bile hoists.

Underwriter—None.

National

Tank

Co., Tulsa, Okla.
4,000 shares of common
$1).
Price—At the market (estimated at
about $24 per share).
Proceeds — To Jay P. Walker,

Aug. 27
stock

(letter of notification)

(par

Address

—

Corp.,

N. Y.

Price—At par

Proceeds—For industrial and mineral

^development of Israel.
Corp., New" York.

Underwriter

—

Israel Securities

—

Business—Production

transmission chain, prockets, gears-,
Underwriter—Dallas Rupe & Son, Dallas, Texas.

of heavy duty power
etc.

Chicago, III.

filed 85,688 shares of common stock (no par)
being offered in exchange for 471,287 shares of Hickok
Oil Corp., class A common stock (par $1) at rate of one
Pure Oil share for each 5M> Hickok shares, conditioned
17

Hickok into Pure Oil
subsidiary of Pure Oil

approval of merger of
Co., a wholly-owned

Products

Underwriter—None.

Co.

it Redwater Utilities Holdings Oil & Gas
(10/27)

(par 50
amendment.
Proceeds—To pay for litigation and for general corpo¬
rate purposes.
Underwriters—White, Weld & Co., New
York; and George R. Gardiner Ltd., Toronto, Ont.,

Oct.

7

filed

1,200,000 shares

of common stock

cents—Canadian). Price—To be supplied by

(for 600,000 shares each).

it Reeves Soundcraft Corp., N. Y.
Oct. 3 (letter of notification) 10,245 shares of common
stock
per

Price—At market (about $2.62V2

(par five cents).

share).

*

stockholder.

Proceeds—To Bernard Goodwin, the selling
Underwriter—Gearhart & Otis, Inc., New

it Resort Airlines, Inc., Miami, Fla.
Oct. 1 (letter of notification) 20,000 shares of common
stock (par 10 cents). Price—45 cents per share. Proceeds
—To Richard A. Miller, the selling stockholder. Under¬
writer—Eisele & King, Libaire, Stout & Co., New York.
Stores,

Safeway

Inc.

>

cumulative preferred
of common stock (par
be issued to James A. Dick Investment Co. (for¬
The James A. Dick Co.) in exchange for inven¬
fixtures, operating supplies, good will and other

Sept. 12 filed 1,900 shares of 4%
stcok (par $100) and 18,000 shares
$5) to
merly
tories,

assets of Dick.

will

sell

all

or

It is anticipated that the Dick
a

Company
from
Under¬

substantial part of these shares

time to time on the New York Stock

Exchange.

writer—None.

Co., Salt Lake City, Utah

(letter of notification) 6,650 shares of common
$10). Price—$23.70 per share. Proceeds—For
working capital.
Office—105 North 3rd West Street,
Salt Lake City, Utah. Underwriter—None.

stock (par

Schulte

(D. A.),

Inc., New York

$1),
and
shares, to be sold from time to time on

Sept. 26 filed 717,149 shares of common stock (par
in two blocks, one in the amount of 349,500 shares

proximately $2 per share). Proceeds—To certain selling
stockholders. Business—Cigarette and cigar store chain.

stock and

Underwriter—None.

share of

stock.

unit.
devel¬
opment of business in purchasing and making first and
second mortgage loans; and to exercise an option cover¬
ing sale of income property. Office—114 North Third St.,
Las Vegas, Nev. Underwriter—None.
one

Proceeds—For costs

common

Price—$5

per

dent,

Underwriter

brokers

on

the other

the

incident to organization and

—

None,

New

367,649
York

Seacrest

Price—At market

Curb Exchange.

Productions, Inc.,

(ap¬

Newport, R. I.

Sept. 8 (letter of notification) 5,000 shares of non-voting
stock, series B (no par). Price—$10 per share.
Proceeds—To acquire real estate and buildings, convert

common

sound

stages, install recording

equipment and cameras,
Office—73 Bliss Road,
Kidder, Peabody & Co.,

and for other corporate purposes.

Pacific Western Oil

stock

common

sales

the New York Stock

be

to

(par $4).

handled

Newport, R. I.

Underwriter

—

Providence, R. I.

Security Title & Guaranty Co., N. Y.

by

Aug. 22 (letter of notification) 32,000 shares of common
(par $1).
Price—At market (about $2 per share).
Proceeds—To Investors Funding Corp. of New York.

Exchange.

stock
Paradise

Valley Oil Co., Reno, Nev.

At par (10 cents per share).
on

.Oct. 6 filed 30,000 shares of class A stock.
1 ($100 per share).

Price
$2 per share.
equipment and new construction.

Nevada Mortgage & Investment Co.
Aug. 25 (letter of notification) 60,000 shares of common
stock (par $1) and 240,000 shares of preferred stock (par
$1) to be offered in units of four shares of preferred

Aug. 20 filed 3,000,000 shares of capital

Development

LongvieW, Tex.
stock (par $1).
Proceeds —For machinery and

Manufacturing Co.,

Salt Lake Hardware

ganization of Twentieth Century-Fox Film Corp. Under¬

ceeds—To pay off temporary bank loans and for property
'additions and improvements.
Underwriter—None.

Mineral

Powers

Sept. 25 filed 250,000 shares of common

Sept. 23

it National Theatres, Inc., Los Angeles, Calif.
Oct. 3 (letter of notification) 370 shares of common stock
(par $1).
Price—At market (estimated at $4.87V2 per
share).
Proceeds—To carry out part of plan of reor¬

Price—At the market. Proceeds—To J. Paul Getty, Presi¬

&

(letter of notification)

Drawer

-record

Industrial

N. Y.

5,000 shares of common
stock (no par). Price—$20 per share. Proceeds—To two
selling stockholders.
Underwriter — William N. Pope,
Inc., Syracuse, N. Y.

Underwriter—None.

Corp.
Aug. 5 filed 100,000 shares of

Israel

Inc., Minneapolis,

York.

Multiple Dome Oil Co., Salt Lake City, Utah
Sept. 8 (letter of notification) 150,000 shares of common
Price—At market (approximately 10 cents per
stock.
share). Proceeds—To George W. Snyder, President. Un¬

stock and 50,000

Budget Loans,

Porter-Cable Machine Co., Syracuse,

Sept. 24

Canada

it Montana Basin Oil Corp. (N. Y.)
Sept. 19 (letter of notification) 300,000 shares of common
stock (par 10 cents).
Price—$1 per share.
Proceeds—
For exploration and development expenses.
Underwriter

Aug. 29 filed 150,122 shares of common stock (par $5) be-ing offered for subscription by common stockholders of
Sept. 25 at the rate of one new share for each
•eight shares held (with an oversubscription privilege);
•rights to expire on Oct. 14
Price—$21 per share
Pro¬

Minn.
of preferred
stock, series A (no par). Price—$24 per share. Proceeds
—For working capital.
Office—227 Twin City Federal
Building, Minneapolis, Minn. Underwriter—M. H. Bishop
& Co., Minneapolis, Minn.
Phoenix

Ltd.

Proceeds—For equipment.

share.

Under¬

Street, Denville, N. J.

Chicago, 111.

Underwriter—None.

it Mobile Salvage Corp., Washington, D. C.
Sept. 26 (letter of notification) 800 shares of class "A"
voting stock and 3,000 shares of class "B" non-voting
Price—$50

Under¬

trees.

Corp., Hagerstown, Ind.
(letter of notification) 1,000 shares of capital
stock (par $2.50). Price—At the market (approximately
$14 per share). Proceeds—To Herman Teetor, the selling
stockholder.
Underwriter — A. G. Becker & Co. Inc.,

upon

will be issued in

nection with expansion of ammonia plant.

stock.

Main

Pure Oil Co.,

Price

fruit

Perfect Circle

subscribed for

groups.

citrus

Co., Pittsburgh, Pa.

Sept. 17

July

farm

&

Office—3

loans.

Mississippi Chemical Corp., Yazoo City, Miss.
Sept. 29 filed 2,000,000 shares of common stock (par $5),
of which 849,038 shares have been subscribed, paid for
and issued, and an additional 107,550 shares have been
of Aug. 28 and

insure

and

it Peoples Finance Co. of Denville, N. J.
'
Oct. 3 (letter of notification) $50,000 of 7% debentures.
Price—At par ($100 each).
Proceeds—To make small

plied by amendment.

as

fertilize

plant,

writer—Graham

share

Canada.

Underwriter—None.

it Pennsylvania Citrus Groves, Inc., Vero Beach, Fla.
Oct. 8 (letter of notification) 100,000 shares of common
stock (par $2).
Price—$2.50 per share. Proceeds—To

Ohio.

writer—Hayden, Stone & Co., New York.

Glass

Pa.

television station and for work¬

a

Office—Masonic Temple Bldg., Allentown,

ing capital.

Sept. 22 (letter of notification) 4,000 shares

Chemical

1710, Tulsa, Okla.

change). Proceeds—To selling stockholder (Gwendolyn
MacBoyle Betchtold, as executrix of the last will and

shares.

four additional

bery, Marache & Co., New York.

President, the selling stockholder.

filed

6

purchase

it National Pigeonhole Parking, Inc., Boise, Ida.
Sept. 24 (letter of notification) 25,000 shares of common

'

'Sept.

to

Price—$19.87 V2 per share. Proceeds—To Clifford
Strike, the selling stockholder. Underwriter—Gran-

H.

stock to be offered

common

3 in

Price—To

$6 per share to be offered in units

warrants

shares.

—None.

Electric

Sept. 25 filed 50,000 shares of

1

at

and

Proceeds—To construct

writer—None.

Co., Hartford, Conn.
Sept. 10 (letter of notification) 5,000 shares of common
stock (par $2) and warrants to
purchase 20,000 shares

Office—600 F

Morgan & Co., New York.

Offering—Date indefinite.

(F. H.)

construction.

^

(10/21-22)

Underwriter—B. V. Christie & Co.,

Houston, Tex. Dealer Relations Representative—George
A. Searight, 50
Broadway, New York, N. Y. Telephone

Bldg., Salt Lake City 1, Utah.

Sulphur Corp.

(par 25

—

and

Gulf

stock

Price—$2 per share. Proceeds
For drilling of
exploratory wells, acquisition of leases and for general

issued in exchange, share for share, for the stock of a
predecessor company. Proceeds—None. Office—209 Atlas

•

common

cents).

WHitehall 3-2181.

it Forming Machine Co. of America, Inc.
Oct. 3 (letter of notification) 175 shares of common stock
(par $1) to be offered for subscription by stockholders of

51

(1363)

stock. Price—
Proceeds—To drill six wells

subleased land and for other corporate purposes. Un¬

derwriter—None, with sales to be made
basis (selling commission is two cents

on a
per

commission
share). Of¬

fice—c/o Nevada Agency & Trust Co., Inc., Cheney Bldg.,
139 N. Virginia St., Reno, Nev.

Underwriter—Dansker Brothers & Co., Inc., New

York.

it Seiberling Rubber Co., Barberton, O. (10/20)
Oct. 1 filed $3,750,000 convertible sinking fund deben¬
tures due Oct. 1, 1967. Price—To be supplied by amend¬
ment. Proceeds—To repay $1,200,000 loan and for work¬
ing capital.

Underwriter—Blair, Rollins & Co., Inc., New

York.

• Jefferson Electric Co., Bellwood, IIU (10/23J \ rTit Penn-Allen Broadcasting Co.
..Oct. 3 filed 100,000 shares of common stock (par $5).
Sept. 30 (letter of notification) 18,580 shares of class &
Price—To be supplied by amendment. Proceeds—To re¬
.common
stock (par $10) and 7,432 shares of common
imburse treasury for cost of additions and
improvements
to plant. Underwriter—Paul H. Davis &
Co., Chicago, 111.




stock

shares

(par $10)
and

two

to

in units of five class A
shares.
Price—$70 per unit.

be offered

common

•

Sierra Pacific Power Co.

Sept. 15 filed 26,775 shares of common
being offered for subscription

stock (par $15)

by holders of preferred
Continued

on vaae

52

52

Continued from page

51

the basis of one
share for each six shares of preferred and one share for
each 12 shares of common stock; rights to expire about
Oct. 20. Price—$23 per share. Proceeds—From sale of
stock, plus proceeds from private sale of $1,500,000 first
mortgage bonds in October, 1952, to be used to repay
$1,100,000. bank loans and for new construction. Under¬
writer—Stone & Webster Securities Corp., New York,
and Dean Witter & Co., San Francisco, Calif.
and

stocks of record Oct. 6 on

common

Signal Mines, Ltd., Toronto, Canada
July 14 filed 300,000 shares of common stock. Price—
At par ($1 per share). Proceeds—For exploration, devel¬
opment, and mining expenses, and to reimburse Maurice
Schack, Secretary-Treasurer. Business—Quartzite min¬
ing. Underwriter — Northeastern Securities Co., New
York.

Socony-Vacuum Oil Co., Inc.
Sept. 5 filed 3,180,188 shares of capital stock (par $15)
being offered for subscription by stockholders of record
Sept. 25 at rate of one new share for each 10 shares held;
rights to expire on Oct. 14. Price—$31 per share. Pro¬
ceeds—For the acquisition and development of crude oil
production, and the expansion and improvement of re¬
fining, transportation and marketing facilities. Under¬
writer—Morgan Stanley & Co., New York.
if Southcam Petroleum Corp.
Sept. 30 (letter of notification) 530,000 shares of common
stock (par 10 cents).
Price—50 cents per share.
Pro¬
ceeds—For

drilling
Co., New York.

Underwriter—Batkin

expenses.

&

Southern New England Telephone Co.

Sept. 22 filed 400,000 shares of capital stock to be offered
subscription by stockholders of record Oct. 8 at rate
of one share for each nine shares held; rights to ex¬
pire Oct. 31. Price—At par ($25 per share). Proceeds—
To repay $3,500,000 advances from American Telephone
& Telegraph Co. (owner of 960,296 shares, or 26.67%, of
the voting stock of Southern, and for property additions
and improvements). Office—New Haven, Conn. Under¬
writer—None.

^-Standard Brass & Manufacturing Co.
Sept. 29 (letter of notification) 12,000 shares of

common

stock.

Price—At par ($25 per share).
Proceeds—For
working capital. Office—K.C.S. and Fourth Streets, Port
Arthur, Tex.
Underwriter—None.

•A-Standard Cable Corp., Chickasha, Okla.
Oct. 2

(letter of notification) 38,095 shares of common
(par 25 cents).
Price—$2.62% per share.
Pro¬

stock

ceeds—To L. W. Lord, the

selling stockholder.

Under¬

writer—None.
Streeter-Amet Co., Chicago, III.
Aug. 27 (letter of notification) 2,367 shares of
stock (par $50) to be offered for subscription by

stockholders

at

rate

of

one

new

share

common
each four

for

Price—$100 per share.
Proceeds—To in¬
equity capital to take care of increased business

and increased costs.

Chicago 13, 111.

Office—4101 Ravenswood Avenue,

Underwriter—None.

Bunshine packing Corp. of Pennsylvania
July 3 filed $1,000,000 of 6% convertible debentures due
1972 (subordinate) and 450,000 shares of common stock
(par 50 cents) of which the debentures and 400,000 shares
of stock

are

• Twentieth Century-Fox Film Corp.
Oct. 2 (letter of notification) not to exceed 370 shares of
common stock to be issued in connection with plan of
reorganization. Price—At market (estimated at $11.371/2
share). Proceeds—To holders of fractional interests.
Underwriter—None, but Hayden, Stone & Co., New York,

per

will act

as

•

Utah Power & Light Co.

(10/14)

$10,000,000 of first mortgage bonds due
1982. Proceeds—To repay bank loans and for new con¬
struction. Underwriters—To be determined by competi¬
Aug.

14 filed

tive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; White, Weld & Co.; Lehman Brothers and BearStearns & Co. (jointly); The First Boston Corp. and
Blyth & Co., Inc. (jointly); Union Securities Corp. and
Smith, Barney & Co. (jointly); Kidder, Peabody & Co.;

Salomon Bros.

& Hutzler.

Bids—To be received up to

(EST) on Oct. 14 at Room 2033, No. 2 Rector Street,
New York 6, N. Y.

noon

Van

Butane

Horn

to be offered in units of $50 of debentures

and 20 shares of stock. Price—$100 per unit. Proceeds—
To increase capacity of plant and for
working capital.

Service,

King City, Calif.

if Video Products Corp., Red Bank, N. i.
Oct. 3 (letter of notification) 75,000 shares of common
stock (par 50 cents).
Price—$2.50 per share. Proceeds
—For working capital.
Office—42 West Street, Red
Bank, N. J. Underwriter—None.

Virginia Electric & Power Co.

(10/21)

Sept. 17 filed $20,000,000 of first and refunding mort¬
gage bonds, series J, due Oct. 1, 1982. Proceeds—For
construction program. Underwriters—To be determined
by competitive bidding. Probable bidders; Halsey, Stuart
& Co. Inc.; Kuhn. Loeb & Co. and Wertheim & Co.

Stone & Webster Securities Corp.; Union
Securities Corp.; Salomon Bros. & Hutzler; White, Weld
& Co. Bids—To be received up to 11 a.m. (EST) on Oct.

(jointly);

21, at 11 Broad Street, New York, N. Y.
Wisdom Magazine, Inc., Beverly Hills, Calif.
Sept. 17 filed 6,600 shares of 5% cumulative preferred
stock (par $100) and 6,600 shares of common stock (par
$10) to be offered in units of one share of preferred and
one share of common stock. Price—$110 per unit. Pro¬
ceeds—To publish new national picture magazine. Un¬
derwriter—None. An earlier registration statement filed
July 14, 1952, covering a like offering of preferred and
common shares was withdrawn Aug. 1,
1952.

Zenda Gold Mining Co., Salt Lake City, Utah
Aug. 18 (letter of notification) 1,200,000 shares of com¬
mon stock?(par 10 cents). Price—At market, hut not less
than par value.
(Current quotation of the company's
stock on the Los Angeles Stock Exchange is seven cents
bid and nine cents offered, if $120,000 gross sales price is
received by the issue before all shares are sold, no
further shares will be offered). Proceeds — For Alaska
tin placer leases, exploration and development, retire¬
ment of debt, and working capital. Office—30 Exchange
Place, Salt Lake City 1, Utah. Underwriter—Samuel B.
Franklin & Co. of Los Angeles, Calif.

on the Toronto Stock
Proceeds—For working

capital. Underwriter—F. W. MacDonald & Co.. Inc., New
Offering—Probably some time in October.

York.

Texas General Production Co.
June 4 filed 2,500,000 shares of common stock

(par 50
cents). Price—To be supplied by amendment. Proceeds—
To buy property for oil
prospecting. Office—Houston,

Tex.

Underwriter—To be named by amendment (prob¬
Hemphill, Noyes & Co. New York). Offering—

ably
Tentatively postponed.

-^'Texo

Oil Corp., Ardmore, Okla.
Sept. 2 (letter of notification) 934,400 shares of common
stock (par one cent). Price—31 V\ cents
per share. Pro¬
ceeds—To drill three wells to test formation on
corpora¬
tion's leases in Duval and Live Oak
Counties, Texas.

Underwriter—Stanley Pelz & Co., Inc., New York.
/Thompson Trailer Corp., Pikesville, Md.
Aug.

27 (letter of notification) $136,150 of 5% con¬
vertible debentures, first issue, due Sept. 1, 1962.
Price
—At par (in units of $50 each).
Proceeds-—For working
capital. Address—P. O. Box 356, Pikesville, Md. Under¬
writer—None.

★ Timber Owners of New England, Inc.
Oct.

1

stock.

(letter of notification) 20,000 shares of

common

Price—At par ($10 per share).

pand operations.

Proceeds—To ex¬
Address—c/o Lawrence W. Rathbun,

Concord, N. H. Underwriter—None.
Torhio Oil Corp., Ltd.,
Toronto, Canada
Aug. 21 filed 300,000 shares of common stock (par
$1) to
be offered first to stockholders and
then to the

general
Proceeds—For ex¬

public. Price— 60 cents per share.
ploration of oil and gas properties, and to drill
weU.

a

test

Underwriter—None, but offering to public will

handled through brokers.

ir Truax-Traer Coal Co., Chicago, III.
Qct, 3 (letter of notification) 800 shares
stock

be

Prospective Offerings

of

common




mortgage (convertible) bonds on a pro rata basis for a
14-day standby
(certain stockholders have waived
their rights). Proceeds—To repay bank loans and' for
development and exploration expenses. Underwriters—
Probably Dallas Rupe'& Son, Dallasr-Tex.; Carl Mi
Loeb, Rhoades & Co., New York; and Straus; Blosser &
McDowell, Chicago, 111.
Central of Georgia Ry.

(10/16)

at the office of J. P. Morgan &

Bids will be received

Incorporated, 23 Wall Stree, New York, N. Y., up to
noon (EST) on Oct. 16 for the purchase from the railway
company of $2,775,000 equipment trust certificates, series
Co.

"X," to be dated Nov. 1, 1952, and, due $165,000 annually
from Nov, 1, 1953 to and including Nov. 1, 1967. Prob¬
able bidders: Halsey, Stuart. & Co. Inc.; Salomon Bros*
& Hutzler; Bear, Stearns & Co..
,
Gas & Electric Corp.
reported company plans the

Central Hudson
March

4

it

was

sale this

$5,500,000 first mortgage bonds. Latest
bond financing was done privately in March, 1951
through Kidder, Peabody & Co.

Fall

of

about

Central Maine Power Co.

Sept. 2 it was announced company soon after March 1,
1953, intends to issue and sell $6,000,000 of first, and
general mortgage bonds and sufficient common stock to

yield approximately $5,000,000 to refund the then out¬
standing short-term notes. Underwriters—To be deter¬
mined by competitive bidding. Probable bidder—(1) For
bonds, Halsey, Stuart & Co. Inc.; Coffin & Burr, Inc. and
The First Boston Corp. (jointly); Blyth & Co., Inc. and
Kidder, Peabody & Co. (jointly); Merrill Lynch. Pierce,
Fenner & Beane and White, Weld & Co. (jointly); Harriman

& Hutzler.

Co.

Peabody &
First Bos¬
Inc.

Ripley & Co., Inc.; Salomon Bros.
(2) For stock, Blyth & Co., Inc. and Kidder,
(jointly); Coffin & Burr, Inc. and The
ton Corp. (jointly); Harriman Ripley & Co.,

if Central RR. of New Jersey (10/9)
Bids will be received by the company on Oct. 9 for the
purchase from it of $2,895,000 equipment trust certifi¬
cates dated Oct. 1, 1952 and due $193,000 each Oct. 1
from 1953 to 1967 inclusive. Probable bidders: Halsey,
Stuart & Co. Inc.; Salomon Bros.

& Hutzler.

Illuminating Co.

Cleveland Electric

Sept. 11 it was reported company plans to

raise about

$28,000,00 later this year through the sale of additional
common stock, probably to its stockholders on a l-for-5
basis. Proceeds—For expansion program. Underwriter—
None.

Connecticut Light & Power Co.
was announced that it is presently estimated

March 1 it

$11,000,000 of additional capital will
the latter half of 1952, Underwriter
Co., Hartford, Conn.

that approximately
be required during
—Putnam &

Consolidated Freightways,

Inc.

Aug. 26 company applied to the Interstate Commerce
Commission for authority to issue and sell 100,000 addi¬
tional shares of common stock (par $5). Business—Sec¬

Francisco, Calif., and associates.
day (Oct. 9).

if American Trust Co., San Francisco, Cal. (11/12)
Sept. 30 Blyth & Co. Inc. and associates agreed to pur¬
chase at $55 per share such number of common shares
sufficient to provide the funds required to retire on
Oct. 27 the 4% convertible preferred stock (par $50)
remaining outstanding after expiration of the conver¬
sion privilege at 5 p.m. (PST) on Oct. 22. The preferred
is

convertible

basis.

for

common

stock

on

a

share-for-share

plans offer of additional common stock
cn
or about Nov.
12 on a pro rata basis for a 30-day
standby with Blyth & Co., Inc. underwriting.
if Anheuser-Busch, Inc., St. Louis, Mo.
Oct. 1 it
of

was

announced that

an

offering of 352,992 shares

stock (par $4) may soon be made.

Price—To
selling stockholders.
Underwriters—Expected to be a group of St. Louis in¬
vestment houses headed by Stifel, Nicolaus & Co.; Reinholdt & Gardner, and Newhard, Cook & Co. Offerings—
Expected in November.
common

be

named

later.

Arkansas

Proceeds

—

To

Offering—Expected to¬

Detroit & Toledo Shore Line RR.

(11/15)

announced that the company is planning
to issue and sell $3,000,000 first mortgage bonds due
1982. Proceeds — To refund approximately $3,000,000
bonds which mature on Jan. 1, 1953. Underwriters—To
be determined by competitive bidding. Probable bid¬
ders may include Halsey, Stuart & Co. Inc. Bids—Ex¬
pected to be received about Nov. 15.

Sept. 17 it

was

Duke Powef Co.

The bank

Sept. 16 company announced that further construction
will later on require additional financing. There are,
however, no plans for raising any new capital at the
present time. Stockholders on Oct. 15 will vote on in¬
creasing authorized capital stock to 5,000,000 shares from
1,500,000 shares and on approving a 3-for-l stock split.
•

East Tennessee Natural Gas Co.

Sept. 29 it was announced company proposes to construct
about 100 miles of pipe line the estimated cost of which,

$5,784,606, is expected to be financed through the issu¬
ance of $4,500,000 of first mortgage bonds
(which may
placed privately)
and $1,300,000 of bank loans.
Traditional Underwriter—White, Weld & Co., New York,
be

Louisiana Gas Co.

Dec. 6, 1951 it was reported company may

issue and sell
$35,000,000 of first mortgage bonds. Underwriters—May
be determined by competitive bidding.
Probable bid¬
ders: Halsey, Stuart & Co. Inc.; The First Boston Corp.
and

Lazard Freres & Co. (jointly); Union Securities
Corp.; Smith, Barney & Co.; Equitable Securities Corp.
Proceeds—To repay bank loans and for new construction.

Eastern

Utilities

Associates

Sept. 3 it was announced that amended plant of reor¬
ganization of this company and subsidiaries calls for is¬
suance by company of $7,000,000 debentures and a suffi¬
cient amount of common stock to raise approximately

$2,000,000. plan further provides that Blackstone Valley
Co., Brockton Edison Co., and Fall River
Electric Light Co. issue mortgage bonds. Proceeds—To
repay bank loans.
Underwriters—For EUA debentures
may be determined by competitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc. (for bonds only);
Lehman Brothers; Estabrook & Co. and Stone & Webster
Securities Corp. (jointly); Glore, Forgan & Co, and Har¬

Gas & Electric
•

Arkansas Natural Gas Co.

Oct. 3 it was reported company plans to issue and sell
$23,000,000 of sinkihg fund debentures due 1972. Pro¬
ceeds—To retire $21,877,760 preferred stock at $10.50
per share. Underwriters—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart &
Inc.; The First Boston Corp.; Smith, Barney & Co.

Arkansas

(par $1).
Price—At market
(approximately $17
per share).
Proceeds—To Arthur H.
Truax, the selling
stockholder.
6

July 22 it was announced stockholders will in the fall
receive the right to subscribe for $1,700,000 of 5%% first

ond largest motor common carrier of general freight in
the United States. Underwriters—Blyth & Co., Inc., San

Sweet Grass Oils, Ltd., Toronto, Canada
July 29 filed 375,000 shares of common stock (no par).

Price—To be related to quotation

.

,

Sept. 22 (letter of notification) 10,000 shares of capital
stock (no par).
Price—$16.10 per share. Proceeds—For
working capital. Address—P. O. Box 1, King City, Calif.
Underwriter—Schwabacher & Co., San Francisco, Calif.

Underwriter—Weber-Millican Co., New York.

Exchange at time of offering.

..Thursday,.October 9, 1952

Byrd Oil Corp., Dallas, Tex.

Underwriter—None.

Omaha, Neb.

..

ic Bank off America N.T. & S.A. (10 14-15
Oct. 8 it was. announced public offering will be. made
of 1,341,085 shares of capital stock. Proceeds^—To Transamerica Corp., the selling stockholder.
UnderwritersDillon, Read & Co. Inc., and Blyth & Co. Inc. (latter
handling books).

broker.

^ United Benefit Fire Insurance Co., Omaha, Neb.
Oct. 1 (letter of notification) $300,000 of surplus notes.
Proceeds—To increase surplus. Office—3316 Fanam St.,

common

shares held.
crease

Chronicle

The Commercial and Financial

(1364)

Power &

Co.

Light Co.
Aug. 7 C. Hamilton Moses, President, announced that
the company expects to borrow additional money next
Spring to finance its 1953 construction program, which,
it is estimated, will involve $29,500,000.

riman Ripley

& Co., Inc. (jointly).

^Equitable Gas Co.
Oct.

3

it

was

r <f

announced Philadelphia Co. proposes to

bids for its holdings of $6,354,000 of
sinking fund debentures, due March 1,

invite competitive

20-year 3%%

1970, of Equitable Gas Co.

Probable bidders: Halsey,

Number 5158

Volume 176

.

.The Commercial and Financial Chronicle

.

(1365)
Stuart & Co.

Inc.; The First Boston Corp.; Kidder, Peabody & Co., Merrill Lynch, Pierce, Fenner & Beane and
White, Weld & Co. (jointly); and Harriman Ripley &
Co., Inc. Persons wishing to submit a bid should notify

Phiilip A. Fleger, President, on or before Oct. 14.
'

European American Airlines, Inc.
June 11 it was reported company plans to raise an addi¬
tional $400,000 of equity capital. An issue of $200,000
of capital stock was just recently placed privately at
$7.50 per share. Underwriter — Gearhart, Kinnard &
Otis, Inc., New York.
jr First National Bank of Dallas

(Tex.)

Oct. 8 stockholders of record Oct. 7

were

to subscribe
shares

of

share

each

given the right
for 200,000 additional
(par $10) at rate of 4/15 of a

stock

share

common

Price

held.

sell

—

$25

Proceeds—To increase capital and surplus.

per

Un¬

derwriters—Merrill Lynch, Pierce, Fenner & Beane, First
Southwest Co.
,

it

was

privately in October
and

plans to

Traditional

$1,000,000 additional convertible debentures.

Proceeds—To

increase

Underwriters.
—Peters, Writer & Christensen, Inc.; Sidlo, Simons, Rob¬
erts

&

refining capacity.

Co.; Boettcher & Co.; and Bosworth, Sullivan &
1, 1951 of a like amount of 5M>%

Co. handled sale in May

debentures due in 1961.

Georgia & Florida RR.
Sept. 22 company applied to ICC for authority to issue
and sell $717,000 equipment trust certificates. Probable
bidders: Halsey, Stuart & Co. Inc., Salomon Bros. &
Gulf Interstate Gas

Co., Houston, Tex.
applied to the FPC for authority to
construct an 860-mile pipeline extending from southern
Louisiana to a point in northeastern Kentucky. This
project would cost about $127,887,000. Transportation of
gas is expected to commence by Nov. 1, 1954.
company

• Gulf States Utilities Co.
Oct. 3 it

(11/24)

announced company plans to

was

$10,000,000 of first mortgage bonds.

offer and sell
Proceeds—For new

construction and to repay bank loans. Underwriters—To
*be determined by competitive bidding. Probable bidders:

i

Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler and
.Union Securities Corp. (jointly); Carl M. Loeb, Rhoades
& Co. and Lee

Higginson Corp. (jointly); Merrill Lynch,
Pierce, Fenner & Beane and White, Weld & Co. (jointly);
Lehman

Nov. 24.
•

to

.

velopment
7

it

.

Bank

for

Reconstruction

and

De¬

("World Bank")

announced

.

new

construction. Underwriters—To be de¬

termined

by competitive bidding.
Probable bidders:
Stuart & Co. Inc.; Lehman Brothers; Kidder,

Halsey,
Peabody & Co. and Stone

&

Webster Securities Corp.

(jointly); Equitable Securities Corp.; Union Securities
Corp. Registration

—

Expected

about

Nov.

Bids

14.

—

Tentatively set for Dec. 15.
Northern Indiana Public Service Co.
18 it was reported company may issue

Sept.

shortly after the close of this
ferred

and

common

year some

and sell
additional pre¬

stock.

Underwriters—May be Cen¬
Republic Co. (Inc.), Blyth & Co., Inc. and Merrill
Lynch, Pierce, Fenner & Beane.

tral

Northern Natural Gas Co., Omaha, Neb.
Sept. 17 company sought FPC authority to construct
pipeline facilities to cost an estimated $69,826,000. This
would

include about 442 miles of main pipeline addi¬
tions; installation of a total of 73,600 h.p. in new and
existing compressor stations; and numerous branch line
additions. Probable bidders for debentures or bonds;
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; The First
mortgage pipeline bonds, and preferred and common
Boston Corp. and Kidder,
Peabody & Co. (jointly). Com¬
mon stock
financing will probably be done via rights.
Oklahoma
tional

Metropolitan

Oil

&

Gas

Corp.
plans some addi¬

announced that company
common
stock financing in about
was

two

or

three

Proceeds—For

acquisition of properties, work¬
ing capital and drilling expenses, etc. UnderwriterScott, Khoury, Brockman & Co., Inc.. New York.

Oct.

15, 1952, and to mature Oct. 15, 1971. Price—98%
of principal amount.
Underwriters—The First Boston
Corp. and Morgan Stanley & Co., both of New York. Of¬
fering—Expected today (Oct. 9).

lit International Minerals
Oct.
on

it

1

announced

was

approving issuance of

ated

convertible

Kansas City
sell
>

up

debentures.

to $20,000,000 of subordin¬
Proceeds—For expansion

Power & Light Co.

company

late

in

1952

mortgage bonds

amount of first
To be determined by

principal

Underwriters

—

competitive bidding. ' Probable bidders:

Halsey, Stuart
Inc.; Glore, Forgan & Co.; Blyth & Co., Inc. and
Freres
&
Co.
(jointly); The First Boston
Corp.; White, Weld & Co. and Shields & Co. (jointly);
Smith, Barney & Co.; Kuhn, Loeb & Co., Salomon Bros.

& Co.

Lazzard

& Hutzler and

able

Union Securities Corp.

Securities

Stearns

&

Co.

Proceeds—For

(jointly); Equit¬
Corp.; Lehman Brothers and Bear,
(jointly); Harriman Ripley & Co., Inc.
construction.

new

Laclede Gas Co.
Oct.

1 it

€00,000

was

to

reported company may issue and sell $10,of securities, probably bonds.

$12,000,000

Proceeds—For
an

issue

1976

was

Merrill

of

new

construction.

$8,000,000

3%%

In August of last year,

first

mortgage

bonds

due

placed privately through Lehman Brothers and

Lynch, Pierce, Fenner & Beane.

Long Island Lighting Co. (11/18)
Aug. 27 company announced its plan to issue and sell
$20,000,000 additional mortgage bonds. Proceeds—For
construction program. Underwriters—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co.

Incj W. C. Langley & Co.; Smith, Barney & Co.;

Blyth & Co., Inc. and The First Boston Corp. (jointly).

Bids—Tentatively scheduled to be received
Nov.
•

on

or

about

18.

Maine Central

RR.

Sept. 25 the ICC authorized

$1,500,000

of

divisional

lien

company

to issue and sell

(Portland

&

Odgensburg
Ry. line) 5% bonds, due 1977, without competitive
bidding.
Proceeds—Together with other funds, will be
used to retire the outstanding
$1,676,000 Portland &
Ogdensburg Ry. first mortgage 4 %% bonds which mature
Nov. 1, 1953.
Underwriters — Blair, Rollins & Co. and
Coffin & Burr, Inc. (latter
handling books). Offering—
Expected today (Oct. 9).
•

MidSouth Gas Co.

Sept. 23 company

was

191 miles of natural
gas

authorized by FPC to construct
pipeline and to acquire an exist¬

ing 38-mile line from Arkansas Power & Light Co. at an
aggregate estimated cost of $4,524,200. Stock financing in
July, 1951, was underwritten by Equitable Securities

Corp.; T. J. Raney & Sons; and Womeldorff & Lindsey.




reported corporation plans to sell publicly

no

(par $25). No proposal for

dividend rate in

★ Sinclair Oil Corp.

(11/10)

initially

to stockholders.

Proceeds

—

Price—To be determined at

For

expansion

be

filed

on

or

about

Oct.

1

may

soon

it

was

reported

offer

company

areas

in

the

Pacific

Estimated overall capital cost of the project

is $179,000,000.

Financing is expected to consist of first
stocks, and is expected to be completed by April, 1953.
Underwriters—White, Weld & Co. and Kidder, Peabody
& Co., both of New York, and Dominion Securities Corp.,
Ltd., Toronto, Canada.
Pacific Telephone & Telegraph Co.
Sept. 3 company was authorized by the California P. U.
Commission to offer for subscription by stockholder!
an additional 703,375 shares of common stock
(par $100)
in the ratio
common

of

one

share

new

for each nine

shares

of

preferred stock held. American Telephone
& Telegraph Co., the parent, presently owns approxi¬
mately 90% of the outstanding common stock.
Price—
At par.
Proceeds—To repay construction loans and for
or

further expansion.

Underwriter—None.
pected sometime in December.
Pacific Telephone &

Offering—Ex¬

izers and fertilizer materials.
& Co., New York.

(11/18)
Sept. 3 California P. U. Commission approved a proposal
authorizing the company to issue and sell $35,000,000
of debentures due Nov. 15, 1979.
Proceeds — For re¬
payment of advances and bank loans and for new con¬

15

it

★ Peoples Gas Light & Coke Co.
Sept. 29 it was announced company, plans issue and sale
186,715 shares of capital stock

on

a

one-for-five basis.

Price—At par

($100 per share).
Underwriter—None.

★ Pressed Steel Car Co., Inc.
Oct. 3 it was announced a secondary offering of 300,000
shares of

common

stock may be made tomorrow (Oct. 9).

Price—Around market.
ers.

Proceeds—To

Underwriter—F. Eberstadt

Southern Ry.
Aug. 20 the ICC denied the application of this company
for permission to sell not exceeding $46,000,000 of new
bonds without complying with the usual competitive
rules.

If offered competitively, the bidders may include
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co.; Morgan
Stanley & Co. Proceeds—To meet in part the outstand¬

ing bond maturities of Southern Ry. and New Orleans
Terminal Co.

Southwestern Public Service Co.

Aug. 4 it
tional

reported that company may do some addi¬
stock financing (with offer to be made
stockholders) and use the proceeds toward Its
was

common

first to

construction program which, it is estimated, will involve

approximately $23,000,000 for the
1953.

Additional

also

bond

and

San Diego Gas & Electric Co.
July 1, L. M. Klauber announced that of the more than
$18,000,000 required for capital improvements in 1952,

year

preferred

ended Aug. 31*
stock financing

be necessary;

this previously was done pri¬
vately. Underwriter—Dillon, Read & Co. Inc., New York.
may

* Standard Tungsten Corp.
Oct.

(10/20)
reported company planned to
150,000 shares of common stock.
Price
1

share.

is

was

issue and

$2 per
Scott, Khoury, Brockman & Co.,
Letter of notification expected to be

Underwriter

Inc., New York.
filed about Oct.

—

—

10.

t\

Texas-Ohio Gas Co.

Sept. 30 FPC scheduled

an

oral argument for Oct. 20

on a

motion by National Coal Association and others to deny
a 1,406-mile pipeline ex¬
into West Virginia and to import

natural

gas from Mexico.
The estimated cost of the
project is over $184,000,000. Underwriter—Kidder, Pea¬
body & Co., New York.

Toledo

Edison

Co.

Sept. 22 company announced that company plans to con¬
struct a $25,000,000 steam generating station on a 400site now being acquired near Toledo, Ohio, for about
$750,000. It was reported that this may be financed in
part with the sale later this year of about 400,000 addi¬
tional shares of common stock. Probable bidders may in¬
ac-re

clude: Merrill

Lynch, Pierce, Fenner & Beane; Blyth &
Co., Inc.; Smith, Barney & Co. and Collins, Norton &
Co. (jointly); Lehman Brothers, Harriman Ripley &Go~,
Inc., Bear, Stearns & Co. and Carl M. Loeb, Rhoades &
Co. (jointly); W. C. Langley & Co.

Shreveport, La.

Sept. 10 Electric Bond & Share Co. applied to SEC for
authority to offer for subscription by

its stockholder!

525,000 shares of common stock (par $10) of United Gas
Corp. on ja l-for-10 basis. Price—To be named later.
Proceeds — To Electric Bond & Share Co., which now

Oct.

United

of outstanding United

shares, 27.01%)

Underwriter—None.

stock.

around

Registration—Expected

15.

H

States

(Del.)
Sept. 25, 1950 it was announced that this company had
been formed to build, own and operate a petroleum
products pipeline from the Texas Gulf Coast to St. Louis,.
Chicago and other midwest markets to operate as a
"common

Pipe Line Co.

carrier."

The

initial financing has

been ar¬

ranged for privately with no public offering expected
for at least two years. E. Holley Poe and Paul Ryan, of

St., New York, N. Y., are the principal officers
corporation. Underwriters—Probably Dillon, Read
Co. Inc. and Glore, Forgan & Co., both of New York.

70 Pine

of the
&

selling stockhold¬

Underwriter—Lehman Brothers, New York.

stock.

announced

was

(owns 3,165,781

to present stockholders of

stockholders

common

sell additional bonds

Gas

November 18.

of

1953 in the amount then

tive

Underwriter—To be determined by competi¬
bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Lehman Brothers and Union Securities Corp.
(jointly); White, Weld & Co.; Morgan Stanley & Co. Bidi
—Tentatively set to be received at 8:30 a.m. (PST) on

some

that the company expects
during the first six months of
permissible under its mortgage
indenture, and to provide for other permanent financing
by the sale of additional first mortgage bonds or other
securities in such amounts as may be appropriate at the
time. Probable bidders for bonds: Halsey, Stuart & C&.
Inc.; Kuhn, Loeb & Co.; The First Boston Corp., Blyth
& Co. Inc. and Kidder, Peabody & Co. (jointly).
Any
stock financing may be via stockholders.
to

struction.

Proceeds—For expansion program.

20.

Southern Natural Gas Co.

Sept.

United Gas Corp.,

Telegraph Co.

and

substantial amount

a

tending from Texas

market

Oct.

Business—Manufacturer and distributor of mixed fertil¬

company's application to build

to

later date.

Underwriters

program.

Mexico

Colorado

a

Smith, Barney & Co. and Merrill Lynch, Pierce, Fenner
&
Beane, both of New York. Registration—Statement ex¬

filed a second substitute application
proposing to construct a 1,384-mile trans¬
mission line extending from the San Juan Basin in New
company

with the FPC

and

of 6% will

excess

Oct. 6 company announced it
plans to file with the SEC
in the latter part of this month a
registration statement
covering a proposed issue of about $100,000,000 new con¬
vertible subordinated debentures to be offered

•

Pacific Northwest Pipeline Corp.

Northwest.

announced that it plans to issue and

$12,000,000

was

Inc.

issue of prior preference stock to finance expansion of
Kaar Engineering Corp. of Palo
Alto, Calif.

Aug. 29

less than par and
be considered.

sell

an

stockholders will vote Oct. 28

Underwriter—White, Weld & Co., New York.

program.

Sept. 15

& Chemical Corp.

Pacific Associates,

Sept. 13 it

of cumulative preferred stock

★ Smith-Douglass Co., Inc., Norfolk, Va.

New

ceeds—For

Seymour Water Co., Seymour, Ind. (10/10)
will be received by the
company up to 11 a.m.
(CST) on Oct. 10 at its office, .114 South Chestnut St.*
Seymour, Ind., for the purchase from it of 5,000 shares
Bids

pected to

Orleans Public Service Inc. (12/15)
July 24 company announced plans to issue and sell $6,000,000 of first mortgage bonds due Dec. 1, 1982. Pro¬

weeks.

bank

plans to issue and sell
$60,000,000 of 3Vz% sinking fund debentures to be dated
was

common

doing
equity financing (probably in the form of class B
value).

Sept. 10 it

,

half in

and

National Credit Card, Inc., Portland, Ore.
Sept. 8 it whs reported company is considering

be

.

International

Oct.

Stone & Webster Securities Corp.
received up to noon (EST) on

Brothers;

Bids—Expected

place

Underwriter—Kidder, Peabody & Co.,

New York.

Hutzler.

Sept. 16

to

sell

securities, half in preferred stock
stock.

expects

issue of $2,500,000 3%% bonds
next year about $3,000,000

an

issue and

Oct. 1 it

reported directors have authorized issuance

and

mortgage

Mutual Telephone Co. (Hawaii)
it was announced company

some

sale of

company plans to issue
issue of $8,000,000 first

an

Underwriters—To be determined by competitive
bidding. Probably bidders: Halsey, Stuart & Co.
Inc.;
White, Weld & Co. and Kidder, Peabody & Co. (jointly);
Blyth & Co., Inc.; The First Boston Corp. and W. C.
Langley & Co. (jointly); Equitable Securities
Corp. and
Shields & Co.
(jointly); Merrill Lynch, Pierce, Fenner
& Beane; Union Securities
Corp.

stock of $20 par

was

reported

bonds.

• Frontier Refining Co.
and

;

14

in November

Sept. 23

before Oct. 21

or

capital

for

share.

on

Mississippi Power & Light Co.
March

53

Western

Natural Gas Co.

Sept. 2 stockholders approved the creation of an author¬
ized issue of 500,800 shares of preferred stock (par $305*
of which the company plans to offer about 170,000 shares
as

convertible preferred stock

(carrying a dividend rate

approximately $4,000,000 will become available from de¬
preciation reserves and earned surplus, while the re¬

for subscription by common stockholders.
Proceeds—To redeem 2,053 outstanding shares of 5%

mainder must be secured through the sale of securities.

preferred

Underwriter—Blyth

for

ferred stock

&

financing.

Co., Inc. handled previous
.

pre¬

luahgFUBB

of about .5%)

new

stock

(par

construction.

Weld & Co., New

$100), to retire bank loans anc
Traditional Underwriter—White*

York.

*

security

in volume which more, or less as¬

numerous

sured

tional interest.

quick closing of the books.

a

Small

Two

Ahead

Issues

shortened

week,

the ad¬
negotiated

roster could be swelled by

dition

corporate new issue mar¬
ket this week experienced one of
The

undertakings in many
But
the
underwriting

the fastest
months.

fraternity was not disposed to re¬
gard this development as indica¬
tive of a change in basic condi¬

one

Tuesday, California-Oregon

On

of

$60,000,000
which

debentures,

new

put

bids when

three

drew

consensus

Corporation's

Gas

United

that*

the

was

bids for $7,-

will open

Power Co.

000,000 of 30-year first mortgage
bonds.
This business, it is indi¬

cated, will draw a host of invest¬
ment banking bids.
day Utah Power

Light Co., will sell $10,000,000
of 30-year bonds to finance con¬
struction ahead.
Here again ag¬

gressive bidding is indicated.

Offers

Equip. Tr. Ctfs.

mature

to

Priced

for

at

reoffering

102.35

\

annually Oct.

15,

1953

inclusive. The certificates

to 1962,

the New Orleans Stock

bank

local

bonds,

municipal

Exchange
in

markets

active

maintains

and

stocks, and other corporate securi¬
Particular attention has been

devoted

to

established

financing

local businesses.

with

Associated
J.

Thomas

the

Whalen,

firm

are

charge of

in

W:

the Trading Department; Fred

Cashier; and Gerland J.

Helmke,

Foucha, Assistant Cashier.

tractive

count

that

on

alone

to

But the issue carried other fea¬
tures which helped add to

its ap¬
peal. The 20-year maturity is a
term not too frequently available
these days and fitted nicely into
many
situations.
And with the
attached sinking fund the aver¬
age life of the issue drops to 15
years.

Pension

Funds

Buyers

Larger institutions

500

estimated
or

Registered representatives are
A. Anderson, III; Paul C.

Boudousquie, Jr.; Thomas C.
Holmes, Jr.; Felix Holand; Martin
A. Macdiarmid; Albert J. Mayer,

ferred stocks where the yield af¬
forded ranged between 4% and

naturally

was

that

one

quite

such

vestment outlets could not

in¬

readily

afford to overlook and quite evi¬

dently they

in with

came

rush

a

that speeded up their larger com¬

petitors.
Increasingly Popular

of

members

Oil

companies have been lean¬
increasingly in the direction
of convertible obligations in fi¬
nancing their expansion programs.

Winners at

Outing of
New Jersey Bond Club
The

Club

Bond

of

New

Jersey

Thursday, October 2nd at the
Essex County Country Club, held
its
Dutch
Treat
Golf Day and
on

Beefsteak

dinner

served

Ken

by

Weil,

Labouisse,

Company
222

Friedrichs

opened

nounced

by

member

"We

issue of about

And

while

$100,000,000 of
stockholders

new

natur¬

ally will get the privilege of ex¬
ercising their pre-emptive rights
to subscribe to this issue, it will be
underwritten by investment bank¬
ers who will
acquire any unsold
portion of the debentures for ul¬
timate disposal by public
or direct placement.

World
The

Bank

Bonds

offering

at

98

$60,000,000 offering of de¬
being made today by

bentures
bankers

for

the
International
Bank for Reconstruction and De¬

velopment carry a 3V2%
and a price tag of 98.

coupon

bors

of

the

firm.

extremely glad to join

are

who

Street of

Labouisse.
door

our

known

—

New

setup makes for an indi¬
cated yield to the buyer of
ap¬

proximately 3.65%, which, it
believed

buyers

in

make

was

investment
them

interested

circles,
attractive to

in

this

type

paper.

Wall

few feet of

a

located

the

Cotton

Exchange, Louisiana Bank, HiNational, National Ameri¬
can
Bank, the Progressive, the
Federal
Reserve, Kohlmeyer &
Company and Scharff & Jones,
the

National Bank

Discussion around the Street

was

indicative of preliminary
inquiry

Company,

low

of

the

Commerce,

Commercial

kel,

C.

Childs

F.

Wood,

Harris Trust

&

man

John

(Special to The Financial Chronicle)

FRANCISCO, Calif.

San

Francisco

adapt the

Mr.

Jewell

decor is
of
An

banking

modern

firm.

with

an

The

liberal

use

mahogany panelling and glass.
interesting feature
is
that

much

of

the

cabinets
and

office furniture
built

are

panels.

into

We

it;

types—or

walls

that

is

in

interest

265

I.

Davies

&

&

Montgomery
of

the

du

New

Stock

was

—

Good¬

Street,

York

and

Exchanges.

previously

Pont

&

Co.

and

the

of

Boston Stock

Formula

proper

.

"defensive" and

friends
a

will

in

come

and

pay

us

Midwest

of

the

Stock

New

York, and

of

Weil

organized

the

of

and

in

former

of

these

Company, Inc.,
and Howard,

1922,

firms

merged
in August, 1950 to form the pres¬
ent

prominently

local, municipal
corporate financing, and has
as

an

underwriter in

on

"Brief

quotes from a report of the Com¬
mittee on Prudent Man Rule of
American Bar Association in
investment

which

trusts

,

>as

a

for trustee investment is

medium

Richard
teenth

A.

now

—

E. L.

affiliated

with

Harrison,

2200

Six¬

Street.

to The

OAKLAND,
Dickson

has

C. N. White

Building.

Financial

Calif.
joined

&

Chronicle)

—

Ernest

M.

staff

of

the

Co, Central Bank

$1,985,207,
$1,338,918' , on
\

trust

"Investment

invest¬

and

•t-'

Group

United Gas

:

First

Boston Corp., HarriRipley & Co. Inc. and Gold¬
Sachs & Co. head an under¬

man

man,

which

group

public

new

issue

Gas

Corp.

offering
(Oct. 9) a

of

$60,000,000 United
4%%
sinking fund

debentures

102.35%

is

sale today

due

Oct.

1, 1972
interest

plus accrued

yield approximately 4.20% to

turity. The issue
competitive sale
Proceeds
used

of

on

Tuesday.
sale

bank

;

will

by the corporation to

$40,000,000

ma¬

awarded at

was

the

at
to

be

repay

incurred

loans

should be
in connection with the construc¬
appropriate trustee .investments
tion program of the corporation
without
specific instrument au¬
and
its
subsidiary, United Gas
thority.
They have long
since
achieved investment quality and Pipe Line Co., to finance in part
the completion of^ this
program
for years have been purchased by
men
of prudence, discretion and and for other corporate purposes.
The construction program which
intelligence, with regard for in¬
covers the years 1951-1953 is es¬
come and capital safety.
timated to cost $245,328,000, the
"Small banks and most individ¬
major project being construction
ual trustees are not equipped to
ment

shares

company

furnish

much-

a

.

.

FINAL

THE

ratings

of the

independent board of judges in the
"Financial World" Survey of An¬
Research

&

Securities

Reports, National

Corporation

was

having the best Annual
Report of the Mutual Fund cate¬

judged

as

for

gory

consecutive

ninth

the

year.

Industry"

trophy will be presented to Henry
J. Simonson, Jr., President of the

the

on

at the

in

the

Hotel

Annual Awards
Grand Ballroom
New York,

Statler,
Oct. 28, 1952.

A

of

thousand

a

miles

total

were

of

and

this

in

competition,

the

these

the

series

industrial

expenditures

made

for

top

and

report

honors,

maturity and the
sinking fund
redemption prices start at 102.28%
in the 12 months ending
1954

decrease

and

trophies

at

which

than

the

1,300

of

after

tion

Optional redemp¬
range
from 104.85%

prices

if redeemed during the 12 months

redeemed

1953 to

after Sept.

100%

if

30, 1971.

United

Gas Corp. owns all of
oustanding securities of Union
Producing Co. and of United Gas
Pipe Line Co. and about 75% of
the

the

oustanding

capital

stock

of

Sulphur & Potash Co.

With

its

sidiaries,

wholly

the

owned

corporation

sub¬

consti¬

a system engaged in the pro^duction, purchase, gathering,

transportation and sale of natural
' The

gas.

United

of

parts

System

Texas,

Mississippi

and

while

Florida

and

and

extends

to

andPensacola,

the

to

serves

Louisiana
also

Alabama

of

will

the
pre¬

Industry"

annual

will

be

awards
attended

business and fi¬

executives

Sept. 30,

100%

International

Boundary at Laredo, Texas.

The

system produced about 26% of its

surveys,

banquet,

to

Sept. 30, 1971.

Mobile,

Incorporated

originator

"Oscar

to

A
semi-annual
sinking fund,
commencing Oct. 1, 1954 and con¬
tinuing to and including April 1,
1972, is designed to retire $41,483,000
of
the
debentures
by

was

Smith,. Executive Vice-

the

nancial

one

Industry" awards.

Mutual, Incorporated

Weston

more

in

fund, category, In¬

Securities,,,
placed third.

amounted

$158,664,000.

the tutes

surveys,

classifications

Group

sent

of

judged

were

mutual

annual

in the

year

large-

pipeline, including com¬
pressor
stations,
and
gathering
systems at a cost of $125,296,000.
As of June 30, 1952 construction

Duval

5,000 annual reports

considered

of

diameter

ending Sept. 30,

The bronze "Oscar of

President

With C. N. White & Co.

The

discussed:

runner-up

is

Se¬
Sep¬

on

4%% Debentures

spe¬

Group for investment dealers,

Chronicle)

SACRAMENTO, Calif.
McClure

(Special

with

participated

to The Financial

was

partnership.

The firm'has been

and

(Special

Offers

in¬

Distributors

by

published

Case,"

Group

were

First Boston

writing

vestors

busi¬

Labouisse, Friedrichs and Com¬
pany, organized in 1946. The busi¬
ness

Harrison Adds

realized

-

March 31 last.

for

Howard, Weil, Labouisse, Fried¬
and Company represent a

A.

per

sec¬

be

of

issue

CURRENT

THE

of

Shares

last,,
with

compared

both

folio.

In

R.

cents

from

an

pre-determined
individual
price levels for equities in * the
"aggressive" portion of the port¬

for the "Best of

combination

key

cific

visit."

richs

3.0

"aggressive"

to
vested in each depending

hundred

Exchanges.

18

share

per

tember

It has

proportions

the

tions,

Banquet

Co, 231 South La Salle Street,

members

cents

prin¬

shares.

consisting of

list

approved

international

our

amount" of

on

successful investing.

to

as

its

sales of securities is the

and

twelfth

hope

r

Tobacco

the principle
timing of,' purchases

&

We

the

curities

Fund, '.established, in

clientele and the efficiency

operation.

1
of

share from investment income and

and

York

Exchanges,

1949, ^operates
that

New

underwriter for

cipal

of

our

•

months

.

CHICAGO, 111.—On October 16,
Harry A. Graver will become a

our

Bos¬

4

limited partner in-John J. O'Brien

of

nine

open-end * investment
security profits.
the appoint¬
of duPont, Homsey & Co, TOTAL ASSETS

of

To Admit H. A. Graver

froin 25,600.

first

1952, distributions have been paid
in

of

the

announces

company,

John J. O'Brien & Co.

For

an

contribute

comfort

FUND

creased to 34,000

ton,

company,

nothing has been overlooked that
the

stocks.

tobacco

might

to

be for greater

may

There

FORMULA

with

Co.

REPORTS

THE

nual

associated

now

Walston, Hoffman

Francis

and

the

believe

be in

can

stability of income and price as is
by current substantial

IN

Walston, Hoffman

OPEN-END

)

ning of the year,, an.,increase of
28%, it was announced yesterday.
were
7,973,571 shares: out¬
the direction of greater than aver<standing on Sept. 30, against 6;age rise—the present interest in 212,732 on Dec.
31, 1951, and the
the electronics industry is of this number ;of
shareholders has in¬
action

different

This

Rule."

mittee.

1

different than that available

tion

.

Jewell

'J,

through broad averages.

needed, economical investment
medium.
The beneficiary in¬
is President of the Bond Club of
come
is more stable and less at
New Jersey; Glen Thompson, Na¬
risk than in many securities ac¬
tional City Bank of Newark, was
ceptable under the Prudent Man
Chairman of the Field Day Com¬

SAN

'

separate industry
NET ASSETS of Commonwealth
classes have proven to be sound
Investment Company totaled $54,and useful vehicles for investors
633,811 on Sept. 30, 1952, com¬
who seek income and market ac¬
pared to $42,493,826 at the begin¬

Brow, White Weld & Co.,

Joins

f

.

invested

broadly

their

trust shares may

Bank.
Fred

•

'

the

the

members

investment

phasizes

funds,

a

win,

of

«f

investments
because
of
Prize Committee, in¬ handle
trip to Bermuda, won by inadequate research facilities; for
Roe, Hudson City Savings these, well - managed investment

of

cluded

Building.
Extensive and radical
improvements have been made to
use

were

by Joseph Musson of B.
J. Van Ingen & Co., Inc., Chair¬

the ground floor of the Carondelet

to the

which

awarded

with

space

James

prizes

on

located

Co.; David
& Co.; Ed
Ranspm,
Savings Bank.

and

Special

&

Gundy

Wrightsman,

Wayne
be

Com¬

Jersey City, N. J.

Kales,

We know that

"Our offices will

Trust

Winners of the Duplicate Bridge
Tournament were Raymond Heis-

this location will be convenient to

identified




the

as

Orleans," said Mr.

"Within
are

neigh¬
section of

that

occupy

Carondelet

ness

This

would

at

other good friends and

our

registration

subordinated debentures.

Trust

Class

pany,

and

offices

new

everyone concerned.

shortly with the Securities and
Exchange Commission to cover an

Mor¬

Adams &

of

Street, it was an¬
John P. Labouisse,

security is Sinclair Oil Corp.
into

Northern

Carondelet

and Steiner Rouse.

go

Roald A.

were

ton, The Blue List, low gross in
Class
A, and John B. Byram,
gross,

under¬

ORLEANS, La.—Howard,

The latest of the larger companies
in the field to adopt this type of

will

the

bernia

ing

It

unit,

per

Expands Quarters
NEW

4^4% in search of suitable return.
The United issue therefore

$6,200

Howard, Weil Firm

sion funds and trusts had touched

Some of the latter had recently
been leaning to high-grade pre¬

cost

cars

'

V

Mutual Funds

ment

Gordon O. Quackenbos.

B. Philip Arnheiter,
Hinckley, Newark, won
writing group are—R. W. Press- low gross
in
the tourney
for
prich & Co.; Freeman & Co.; The guests, with Frank D'Alessandro,
Illinois Co.; Wm. E. Pollock & Orange Valley Bank, runner up.
The Kickers Handicap was won
Co., Inc.; McMaster Hutchinson
& Co.
by Charles Peine, Tucker, An¬
thony & Co., and Harry Zimmer

good-sized blocks of the United
Gas debentures, but not until after
some smaller operators like pen¬
off the parade.

to

box

aggregate of $3,100,000.

an

Other

in for

came

all-steel

50 ton

new

secured by

are

46

page
' '

James

for members
The certificates

institutional portfolio men.

/' '

•

evidenced

*

Force, "Maestro of the Barbecue."
are priced to yield from 2.35% to
for an indicated yield of 4.20%,
The outing, which was most suc¬
and carrying a 4%% coupon, the 3.25%, according to maturity, and
the offering is subject to the au¬ cessful, was attended by about 100
debentures,^considering the credit
members and 85 guests.
thorization by the Interstate Com¬
rating of the company, were at¬
Winners of the golf tournament
merce
Commission.
many

''

*

members

Accordingly, the broad, general
demand which greeted this issue
Halsey, Stuart & Co. Inc. and
after momentary hesitation at the
associates are offering today
iDutset was regarded as in the na¬
9)
$2,450,000
St.
Louis,
ture of a special situation, and (Oct.
not as indicative of any change in Brownsville & Mexico Ry. equip¬
the thinking of institutional buy¬ ment trust certificates, series EE,
ers.

jrom

'

Stock Exchange and

Midwest

and

reasons.

Continued

Thursday, October 9, 1952

...

G.

Halsey, Stuart Group

for several

attractive

na¬

The firm holds memberships on

the

&

for competitive sale, were ex¬

ceptionally

are

ard, John P. Labouisse, Walter H.
Weil, Jr. and Paul T. Westervelt.

ties.

The following

it

Rather

two

or

projects.

tions.

up

of

of

firm

Shelby Friedrichs, Alvin H. How¬

by the
Columbus Day recess, promises to
be a quiet period in new under¬
writing activities. Only two small
utility issues are in the cards as
things now stand, although the
Next

issues

the

of

Partners

The Commercial and Financial Chronicle

from

the United States and

all

over

Canada.

total

natural

during the

30,

1952.

For

30.

the

1952

gas

requirements

12 months ended June
,

12 months ended -June

United

Gas

Corp.

and

subsidiaries consolidated reported
total

onerating

revenues of

902,136

and

income

deductions

gross

$133,income before
of

$22,432,138.

Volume 176

Number 5158

Continued

from

.

.

.

The Commercial and Financial Chronicle

8

page

SECURITY TRADERS

(

ASSOCIATION—GOLF

ciation
on

Wednesday, Oct. 23,

at

the Bayshore

and 1:00 p.m.

a.m.

Country

Club,

Miami

Beach, Fla. The club is located about a five minute drive from
the Roney Plaza Hotel, Convention
Entrants to the
Headquarters.
"tournament will be received any time through Tuesday at a desk
in the lobby of the
Roney Plaza Hotel. Pairing will be made
Tuesday evening. When registering for the tournament, would
appreciate if you give us a bona fide club handicap, if possible, if
you cannot, speak to the committee and handicap will be given.
Special prizes will be awarded by low net and runner-up

and low gross and runner-up.
to

The

National

a

special blind bogey

will furnish

the

usual

is

hoped that as many of the affiliated organizations as
possible will be represented by a team of four.
It is also hoped as many as possible
attending the Convention
will

bring golf equipment, as Miami has a number of fine golf
.courses and
a large
entry in the tournament is desired.
Clint Whitehead, Merrill Lynch, Pierce, Fenner &
Beane, and
Bill Atwill,

Atwill & Company, both of Miami,

are

in charge of

Offered io Investors
construction

and

Development,
better known as the World Bank,
is bringing to the American in¬
vestment

9)

a

market

today

issue

new

3%%

bonds

Priced

at

est

to

yield

per

cent

issue

98,

of

Oct.

plus

accrued inter¬

are

by

nation-wide

banks

15,

1971.

and

of

group

investment

13y

firms

headed by The First Boston Cor¬
poration and Morgan Stanley &

principal amount
issues sold previ¬

bond

ously by the Bank in the United
States, since the initial offering
1947, is $550,000,000.

rent

be

financing

is

The

the

cur¬

to

second

undertaken in this country on

negotiated

a

In

underwriting

May, 1952,

000

3%%

basis.
issue of $50,000,-

an

bonds

was

successfully

Stanley

&

Co.

and

The

First Boston Corporation.
Of the
other offerings, two issues were
sold

nationwide agency basis,
was sold
by competitive

on

$2,000,000 of bonds

Oct.

15,

or

on

1957 and in each

thereafter

to

and

including

1966, and $2,500,000 in each of the
years 1967 to 1970, are calculated
to retire 50% of the issue

maturity. The bonds
able for

are

prior to
redeem¬

the

sinking fund at par.
General redemption prices range

sale of

LAUDERDALE, Fla.—U. G.

Roman

and

general
Bank.

bidding, and two issues

operations

securities business under the firm
of Roman

name

vestment

Pont

&

with

sold

were

ANGELES,

G. De

Castro

(Special

has

quarterly .dividend

OTTO

THE

of

W.

FE

associ¬

of

divmend

New York

SAN

Blyth & Co., Inc., Russ Building.

Exchange

w

bership of Joseph F.
Samuel

W.

Meisel

Gleicher to

will

The Mark of

be

con¬

NOTICES

At

meeting of

a

tors

of

neld

September

of

Common

Capital

,orders

therefor

C.

120

will

Doiiar

and

mailed

to

Stock who have
at this office.

WILSON,

Broadway,

be

Assistant
New

$1.25

5,

holders

filed

COMMON

to the

remain open.

131st

E.

Philadelphia the following officers

were

elected:

President—Joseph E. Smith, Newburger & Co.

THE COLUMBIA

clared

a

on

the following

The Board

final dividend for 1952:

payable

on

nm

& Co.
Second

7J, 30(f per share

November 15, 1952, to holders of
1952.

Vice-President—Joseph

R.

Dorsey,

Merrill

Pierce, Fenner & Beane.
Treasurer—James G.

cent

stock dividend

ber

26,

the close of business November

at

24, .1952. The

Mundy, Stroud & Co., Inc.

ASSOCIATION

OF

NEW

Preferred Stock of the
pany.

Stock

for

the

at

each

Sec.-Treas.

of 2

rate

shares

100

Stock.

to

of

Company

No

stockholders.

for

rec¬

The

'

the stockholders.
B.

M.

com¬

1952, to stockholders of

A.

be

The

Company proposes to arrange for
the Company's dividend agent to
handle fractional share equivalents
Betsch,

Secretary and Treasurer

payable November 15,

ord October 31, 1952..

1.1. HAWK

Sept. 26,1952
SECURITY TRADERS

meeting held September ,30,
1952, declared a quarterly

payable Novem¬

will

Washington Water Power Company
Common

issued
a

dividend of $1.06J4 per share
on
the
$4.25
Cumulative

to

Secretary—Edgar A. Christian, Janney & Co.

dividend

shares.of

in

Company Common Stock will be

The Board of Directors at

shareholders of
record November 7, 1952.
1952,

the

scrip
representing fractional shares of
Washington Water Power

CORPORATION

10 per

and

on

The

per

shareholders of

1952; also

Lynch,

Commission,

payable

Secretary

record November 3,

to the

Securities

December
29, 1952, to stockholders of record

COLUMBIA PICTURES

stock payable
November 14, 1952,
to

the

Electric Bond and Share

common

First Vice-President—Charles L. Wallingford, H. M. Byllesby

of

Common Stock, payable

close of business October 20,

at

approval

Directors has

of

dividend, subject

a

Exchange

Common Stock

No.

St., New York 6, N. Y.

Common

cents

Ohio

COMPANY..

declared

declared this day

The Board of Directors has

NOTICE

dividend of 40

8,

Common Stock Dividend

INC.

GAS SYSTEM,

The Board of Directors has de¬

share

Cleveland

•

ELECTRIC BOND AND SHARE
-

Bryan, Ohio
•

St.

Two Rector

The ARO EQUIPMENT CORP.

At the Sept. 23 meeting of the Investment Traders Association

at

WRIGHT

11.

Vice President & Treasurer

shares

of

stock

October 1,1952.

on

1952. Transfer

Checks will be mailed.

October 2, 1952

Edgar A. Christian

such

of

upon

Stock

October 15,

THE WEATHERHEAD COMPANY

STOCK

Dale Parker

James G. Mundy

Preferred

payable

holders

Dividend

declared

was

Cumulative

Company,

Direc¬

of

Company,
a

COMPANY

300

record

DIVIDEND

1952,'

September 30, 1952 a quarterly dividend
of thirty-five cents per share was declared on
the Common Stock of this Company, payable
November' 15, 1952 to Stockholders of record at

suit¬

Y,

N.

£3,

share

per

$5,00

the

the Board

Weatherhead

On

Treasurer.

York

The

he close of business

EDMUND HOFFMAN, Secretary

($1.25)
per
share,
being
Dividend
No.
159,
on
the
Common
Capital
Stoc<c of the Company, and an extra dividend
of Oaj
Dollar
and. Twenty-five
Cents *$1.25)
per share on the Common Capital Stock of the
Company, both payable December 8, 1952, to
cf
holders
said
Common
Capital Stock reg¬
istered cn the books of
the Company at
the
close of
business October 31,
1952.
checks

Quality

mem¬

Cents

Dlvld:nd

NOTICES

<

I

Transfer of the

the close of business October 23,

de-

October 8, 1952.

SCHNEIDER,
Vice-Pres. and Treas.

YORK

Security Traders Association of New York (STANY) Bowling
League standing

as

of Oct. 2, 1952 are as follows:

Team—

,

Donadio

(Capt.), Demaye, Whiting, O'Connor, Rappa, Seijas__

Goodman

18

AMERICAN VISCOSE

17

CORPORATION

(Capt.), Smith, Valentine, Meyer, Farrell, Brown__

15

Hunter

(Capt.), Klein, Weissman, Sullivan, Murphy, Searight

14

Burian

(Capt.), G. Montanye, Voccoli, SiegeJ, Reid, McGovern

14

Krisam

(Capt.) Ghegan, Jacobs, Gannon, Cohen, Strauss_____

good/Year

C7vVi

Points

Murphy (Capt.), Manson, D. Montanye, O'Mara, Pollack, Gavin

Directors of the

DIVIDEND

The

Board

NOTICE

of Directors

today the fol¬
lowing dividends:

Notice

$1.25

American

Vis¬

share for the fourth

per

quarter

of 1952

upon

12

cose

Preferred

11

lar

December 15, 1952, to stock¬

Lytle (Capt.), Growney, Craig, Fredericks, Bies, Lyons____„

11

Mewing (Capt), Bradley, Weseman, Hunt, Gronick, Huff____
Leone

(Capt.),

Greenberg,

11

Tisch,

Werkmeister,

Leinhard,
10

(Capt.), Frankel, Casper, Nieman, Bass, Krassowich_^_

9

Meyer (Capt.), Kaiser, Swenson, Frankel, Wechsler, Barker._

8

200 Point Club

Richy Goodman

5

—.210

Artie Burian

209

Dick

202

Montanye

Point

Club




Duke Hunter
*

.

Cy Murphy

dividends

of

dol¬

one

twenty-five cents ($1.25)
share on the five percent

(5%) cumulative preferred stock
fifty cents (50(f) per share

and
on

the

common

payable
to

on

stock,

of

both

November 1, 1952,

shareholders of record

close

15,

210

Artie Burian

declared
lar and
per

Lopato
Bean

Corporation at their regu¬
meeting on October 1, 1952,

business

on

at

the

October

1952.

Stock,

holders of record

CONCRETE

the $5

(Capt.), Gersten, Krumholz, Rogers, Gold, Young_^___

Serlen

RAYMOND

has declared

Dividend

payable

140 Cedar

Soil

the close of

at

75

cents

per

Common

share

Stock,

December 15,

at

Secretary

CO.

Investigations • Foundations

the

The Board of Directors has this

payable

day declared a regular quarterly
dividend of 50^ per share and an

upon

1952 to stock¬

holders of record

PILE

Street, New York 6, N. Y.

Heavy Construction

business November 17, 1952,

the close of

of

extra dividend

business November 17, 1952.

25per share

the Common stock, both pay¬
able on November 3, 1952 to
on

The Goodyear Tire & Rubber Co.

By W. D. Shilts, Secretary
Akron, Ohio, October 6, 1952

stockholders

The

WILLIAM II. BROWN

of

FRANCISCO, Cal.—Elwin

following firm

changes:

books will

day

B.

staff

Blyth & Co,

Stock Exchange

has announced the

1952

this

One

oi

the

Weekly Firm Changes
The

cenrs

AND

Royal

—

Miller has become connected with

AMERICAN

COMPANY

September 30,

Calif.
joined

MORRIS

Treasurer

TOPEKA

Directorshas

quarterly

D.

was

(Special to The Financial Chronicle)

the

seventy-five

RAILWAY

York, N. Y.,

Board

Twenty-five

able

thereto

Yates Staff

has

Joins

Calif.—Hazel

become

CAN

STRAUSS.

ATCHISON,

SANTA

of

Angeles and

to The Financial Chronicle)

DIVIDEND

DIVIDEND

(75c) per share on all the outstanding stock of
the Company has been declared payable October
1952 to stockholders of record at the close of
business October 15, 1952.

a

Los

New York Stock Exch.

NOTICES

29,

The

Roman

George V. Yates & Co., Jorgenson
Building.

Gross, Rogers, Barbour,
Smith & Co., 559 South Figueroa
Street, members of the Los An¬
geles Stock Exchange.

Dividend No. 195

cia.,a

Mr.

prior

CARMEL,

ated with

SUPERHEATER, INC.

New

Johnson, In¬

Enyart, Van Camp & Co., Inc.
Equitable Securities Co. of

and

1952,

—Joseph R. Dorsey

in

and

Burnett

COMBUSTION ENGINEERING-

C. L. Wallingford

Co.

Chicago

of

DIVIDEND

E. Smith

and

Securities.

formerly with Francis I. du

was

the

of

sidered by the Exchange on Oct. 16.

Joseph

»

Johnson

(Special to The Financial Chronicle)

LOS

a

another

A

Gordon, A.

have opened offices at 235 South¬
east Fifth Avenue to conduct a

bonds will be used in

new

the

Gross, Rogers Adds

The aggregate
of the six

in

(Special to The Financial Chronicle)

approximately 3.65 from 101
if redeemed on or be¬ Illinois.
maturity, the dollar fore Oct. 15,
1957, to par after
being offered publicly Oct. 15, 19*38. Proceeds from the
Joins

bonds
a

(October

$60,000,000

due

the

bonds, calling for the retire¬

before
year

Roman & Johnson Formed
FT.

on

55

to

Morgan

INVESTMENT TRADERS ASSOCIATION OF PHILADELPHIA

addi¬

Sinking fund provisions

sold through a group of 119 banks
and investment firms headed
by

golf at the Convention.

In
one

England and Canada and

new

prize

The Blue List will furnish the prize for

basic

three in Switzerland.

Co.

Quotation Bureau

for the winning city team.
the municipal traders.

It

Also, there is

take any handicap you think you need

you may

between 70 and 80.

score

in

ment of

golf tournament of the National Security Traders Asso¬

prize and for this

each

The International Bank for Re¬

will be held between the hours of 10:30

snon«?orsh'n

a

tion, the Bank has sold

Of World Bank Bonds

TOURNAMENT
The

on

$60 Million Issue

NSTA Notes
NATIONAL

(1367)

Greatest
Name
io Rubber

October 20,

of

record

on

1952.

M. M. UPSON,

Chairman of Board

W. V. McMENIMEN, President
October 2, 1952

!

56

The

(1368)

Commercial and Financial Chronicle

Thursday, October 9, 1952

. . .

BUSINESS BUZZ

Washington

A
gJ
xll til'

Bekind-tho-Seene Interpretation*
from the Nation'*

period

the

of

Capital

C.—Within
three months

WASHINGTON,
a

D.

some

1-year Treasury rate has for

all practical purposes been boosted

2V&%

to

from

1%%,

AND—

Money has been made tight

as

result of the direct intention of

a

the Federal

It be made

Reserve

Reserve

but

Treasury-Federal
of March 4,

1951,

particularly since William Mc-

Ctiesney Martin became Chairman
of the Federal Reserve Board,

and

the

of

regularly in debt to the Reserve,
thus disclose their positions

The

toward

Yet

Deal"

assuming

effecting

influence

an

the

over

supply and cost of credit money so
These steps have been taken

slowly

they have

as

as

been taken

surely. There has been little fan¬
fare, little breast-beating, but the
current status of the money mar¬

believed

is

ket

reflect to

to

au¬

thoritative observers the achieve¬
ment of the intention

Chairman

Martin

hearing

a

expressed by
in

March

last

the

before

Patman

monetary committee.

Martin

In that presentation, Mr.

would

Reserve
use

that

the

toward

the

intention

the

expressed

move

especially

discount

and

rate

(operations,,

the

so

use

open

achieve

to

as

of the
market
the

degree of influence it could over

is

It

the

present belief of

make

stability,

months.

several

that

"belief

It

this

stability

secured if there is
to increase

At the

the

no

taken

monetary supply.

moment

the

Reserve

is

to be evidence of some

able

he

advance

in

dustrial

loans

has

been

almost

equal to the advance last year
despite the inflationary or costxaising influence of the steel wage
settlement

the

and

other

wage

boosts which have followed in its

These

wake.

raise

the

and hence
the

This

expected to
doing business
aggravate dollar-wise
were

cost

seasonal

demand

for

loans.

tiappened,

although

it

still

may

show up later this fall.
Federal

Reserve

Will Hold

Its Position
This decision of the Federal Re¬
serve

to

to be

combat

fiscal

view—monthly pocket-size maga¬
zine, including earnings, dividends,
and prices of unlisted companies,

views

candidate's

the

Governor

matters.

on

Stevenson,

on

hand, has indicated in¬
inevitable so long as
the Russian menace remained, and
flation

inflation is

that he would, like Truman,

stand

behind direct controls to mitigate
inflation.
the

Thus

position

is

Reserve

taking

indicates

which

conflict should

a

direct

Administra¬

a new

tion follow the policy

of the old

of Treasury deficits and price and

Hits Mortgage Loans

from

banks

making

long-term

guaranteed and insured mortgage
loans. These loans in volume, are
both

sacred

to

the

and

Truman
to

Ad¬

influential

EPT

on

Treasury Secretary Snyder's At¬
lantic City interview in which he

saying that the

was

quoted

cess

profits tax is the most diffi¬

as

administer

to

cult

tax

ever

been conceived,

tradicted what the

Finance

the

that

directly

ex¬

has
con¬

Secretary told

Committee

of

the

Senate.

tee in December, 1950, Mr. Snyder

The

contradiction,

man

however,

is

the

Administration, following the
corporations," had made EPT

major

a

part

of

like

same.

It

goes

go

get

die.

This

moral

and

from

the

support

positions taken by the Secretaries

growth of
bank holding companies and dis¬
couraging the investment of such
in
non-bank
enter¬
companies
restraining

the

tightness

The

tax

his

and

the

the
of

clearance and
65-acre

a

State

-

the

area

the

attitude,

virtually

any

pany

redevelopment plan for
provides for: (1) replace¬

uses;

adopted

insisting

mercial

death June 30.

are

exercising

anti-inflation control of their

an

own.

Member banks know that their

(2) improve¬

was

Denton

Colorado

compromise bill.

agreement

is

Some

expected

Committee,
lation

as

will

indicated

that

Neither

Mr.

statutory

Snyder

Sawyer, however,

are on

nor

get

a

green

this point

be

if they

elected, he will find it difficult to

continuing demand upon the
Reserve banks for borrowed funds
it will be only a question of time




light

Holding Co. Bill Slated for OK
It

appears
most
likely,
regardless of the outcome of the

election, that Con¬
will pass legisla¬

ously with

responsible for 1953 policy. It will
up to the new Administration
make this decision. If

dent

beholden

recommend

to

the

a

Presi¬

CIO

is

234
was

Lester, Ryons

East

previ¬
&

Co.,

(Special to The Financial

in

to re-

Chronicle)

SACRAMENTO, Calif.
J.

Blucher,

George

and Roy L.

Lester

Nicolaus

B. Smith have joined

staff of Richard

2200

—

C.

Sixteenth

A.

Harrison,

Street.

fleet the "behind the scene" inter¬
pretation from the nation's Capital
For

and may or
may not coincide with

the

"Chronicle's"

own

views.)

Large Appreciation

Potential

WE SUGGEST

RIVERSIDE CEMENT CO.
CLASS B (common)
FIRM TRADING MARKETS

FOREIGN

SECURITIES

STOCK

A

leading

in

fast-growing Southern Cali¬

producer

of

cement

fornia.

Analysis of this Company
a

P.ARL MARKS & P.O. INC.
FOREIGN SECURITIES SPECIALISTS

50 BROAD STREET...NEW YORK

4, N. Y.

TEL. HANOVER 2-0050... TELETYPE: NY 1*971

allowing EPT to lapse.

Congress, however, unless pre¬
ponderantly left-wing, probably in

He

Three With R. A. Harrison

the

(This column is intended

now

Company,

Street.

and William R. Staats Co.

he

Chairman, this legis¬

Mr.

to

large

if

&

be

Congress, Chairman Maybank
(D., S. C.) of the Senate Banking

opinion

from among their oppor¬
tunities to lend. Banks know that
a

to

the Senate Committee.

gress next year

e&oose

attempt to make

upon

definite

Chronicle)

PASADENA, Calif. — A. Wayne
Hough has become associated with

Association have been bringing to¬

reached before the next session of

the central business district,"
said HHFA. '

With Denton & Co.
(Special to The Financial

a

Board and the American Bankers

a

near

forced to

supply of loanable money is lim¬
ited. Hence they must pick and

and

an

that

Meanwhile the Federal Reserve

pressing against
Capitol with commercial and

light industrial

elements

adamant

bank holding com¬
subterfuge to evade
restraints against branch banking.

Capitol.

"The

was

a

Re¬

This

company

redevelopment

surrounding the

area

Presidential

die

Securities

—

—

economic

when he condemned the EPT and

$3.50

—

—

its

unbiased

of

copy

view, Dept. 15A, Jenkintown, Pa.

prises.

Treasury.

his

personal

Champions"

Over-the-Counter

year's

one

free

produces

along.

indicated it could

even

"Dividend

plus

Re
Privatizing Public Enter¬
subject was agitated for prise — Economic Research De¬
only an esti¬ years, but made little progress be¬ partment, Chamber of Commerce
mated $3 billion, it was learned on cause under the former
leadership of the United States, Washington
of the Federal Reserve Board, the 6, D. C. —
good authority.
paper — 500 per copy
latter demanded a large discretion
(lower prices on quantity orders).
Page "States Rights" in Tennessee in
deciding for itself how to re¬
At a Federal cost of about $13,- strain
Rockefeller Foundation, The—
holding companies and how
500,000, the Housing and Home to define non-bank investments A Review for 1950 and 1951
Finance Agency has undertaken a which should be barred.
Chester I. Barnard
The Rocke¬
With a change in the leadership feller Foundation,. 49
project which will help beautify
West 49th
the area around the State Capitol of the
Board, the Board shifted to Street, New York, N. Y.—paper.
grounds at Nashville.
the "moderate" approach toward
Valuation of Going Companies
The project is for the "elimina¬ bank holding company regulation.
for Purchase or Merger —
Ford,
tion of slums and blight surround¬ It became willing to abide by a
Bacon & Davis, Inc.,
39 Broad¬
ing the Capitol building of Ten¬ statutory definition of a bank
way, New York 6, N. Y.—paper.
nessee
in
Nashville," explained holding company and a principle
HHFA. For this purpose Raymond of regulating without strangling
What We Can Do
About the
Foley, HHFA Administrator, has bank holding companies.
Drug Menace—Albert Deutsch—
This legislative project never¬ Public
approved a temporary loan of $8,Affairs
Committee, Inc.,
309,300 and a "capital grant" of theless failed in 1952 before Con¬ 22 East 38th Street, New York 16,
because
the
anti-holding N. Y.—paper—250.
$5,207,200. This will be used in gress

Commerce

of

City. Mr. Snyder,
colleague,
Commerce
higher cost for the Secretary Sawyer, probably voiced

achieved

subscription,

At -Atlantic

beyond the
fact, it is explained, that as a con¬
sequence of tight money the com¬
banks

will

public

Tax

apparent than real. The Tru¬

reflecting

an

disposition

Profits

tion

remains

policy. Mr. Snyder

<of money and a

Excess

to let

which met most of the criticisms.

the significance of Fed¬
eral Reserve policy is said to go
fax beyond the current situation of

Hence

the

will be disposed

gether all shades of opinion

dictates of the CIO about "soaking

away to the
campaign and while the conditions
propitious.

I won't lose it!"

so

acknowledged the criticism that ment of the setting for the State
EPT posed difficulties too great government center now dominated
to be met. In the 1950 version of by the historic
Capitol building
the bill passed by the House, said and flanked by the Library-Ar¬
the Secretary, they had worked chives
building; and (3) major re¬
out
a
practicably equitable ar¬ arrangements in the basic street
rangement for levying this tax and traffic pattern and land uses

ticians

are

case

ment of the slums

Appearing before that Commit¬

said

turned

key inside the box

industry analyses, etc—
any

some

more

are

"I'll leave the

was

timorous passing move
made while the eyes of the poli¬
no

Community Assistance Commit¬
Pennsylvania Motor Truck
Association, Telegraph Building,
Harrisburg, Pa.
i„.
tee,

the other

of

far doesn't appear to have

so

Penn¬

were

consider¬

So far, the seasonal
commercial and in¬

success.

for

Communities—

Over the Counter Securities Re¬

ministration

upon

Manual

Its

.

if

Eisenhower

eral

doing what it
elements in Congress.
can to restrain the expansion
of
the money supply. There appears
Snyder Contradictory

concentrating

Tax

and

elected, is difficult to deduce from

of

be

can

move

New

sylvania

wages

the

outlook

an

A

constantly

and an enlarging
"gross national product."
Just how much backing the Re¬
serve Board would get from Gen¬
rising

Beware—M.

John

Q. Public," 239
Avenue, Garden City,
Y.—paper—$2.00.

N.

the

is

Incidentally, it is reliably antici¬
for the next pated that in due course the tight
is the further money eventually will discourage

for

least

at

achieve

to

as

so

Reserve Board that economic con¬

ditions

which

inflation

signed

Investor

Spies—Published by "Mr.

Stewart

de¬

and

the

Mrs.

&

System is

creeping

direct credit controls.

market conditions.

money

Let

Robert

disposition

fundamental objective of the Fair

of conventional monetary de¬

vices,

the

combat

Deal

to promote stability.

as

"Fair

Blocks Fair Deal

to

17, N. Y.—paper $5.00.

1952-1953—Compiled by A. Leon-

program.

of the Federal Reserve

York

Trotta—Credit Management
Division,
National
Retail
Dry
Goods Association, 100 West 31st
Street, New York 1, N. Y.

regular, planned, in¬

Thus the policy and

an¬

idas

in¬

combat

will

flation is the keystone of the

money

tional role of the Federal Reserve
in

said to be that the

Reserve

Investments—An

Credit Management Year Book:

significance of

long-range

Federal
flation.

New

quarterly reports.

in their

the

market
the tradi¬

Chemical

alysis of Research, Growth and Fi¬
nances in the Chemical Industry—
John F. Bohmfalk, Jr. — Chemonomics, Inc., 400 Madison Avenue,

and

Reserve has moved toward taking
command

rate

1%% will be boosted to a true
penalty rate. So far they have not
shown
any
disposition to stay

this policy is

accord

f

discount

present

the

before

y

A "IX

of

System that

so.

Ever since the

•>

•

•

review

of the Cement

try available

Investment Securities

Square, Boston 9, Mass.

HUbbard 2-1990

-if

t

15^/2

LERNER & CO.

Telephone
vK-

and

Indus¬

request.

Available around

19 Post Office

v.

on

Teletype
BS 69