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Ufiiv fc.Ks»f
OF MICHIGAN
ESTABLISHED 1839
Commercial
Financial Chronicle
Beg. U. 8. Pat. Office
Volume 180
Number 5356
New York 7, N.
Price 40
Y., Thursday, September 2, 1954
Cents
a
Copy
EDITORIAL
A Fresh Look at the
As We See It
x
decades, neither of the
major political parties in this country has often
permitted the "farm vote" to escape from their
consciousness
them
for
even
a
For
moment.
have itself
farmer.
regarded
Formerly With U. S. Atomic Energy Commission
months
party managers have been morbid in their dread
of
offending—or even of not particularly
—the voters who till the land.
The familiar contest is
now
on
pleasing
this year.
Last
week the
President, who is widely and warrantably being commended for his courage in insist¬
ing upon and getting a law which refuses certain
favors his opponents have been demanding for
the farmer, took special pains in signing the legis¬
lation in
question to set the act forth
especially
as
helpful to the farmer. What he had to say at once
drew fire from Mr. Stevenson, the titular head
of the opposing party. Along with the Democratic
leader, we must frankly say that we think that
the President far overpleads his case, and with
the critics of Mr. Stevenson we must agree that
he has little or nothing to offer instead.
Our major complaint against the pleas of both,
and against what practically all speakers of both
parties aver, is that they completely ignore the
basic issue in this farm question, and hold tena¬
ciously to the notion that somehow the farmer
must be in part at least carried along by the re¬
mainder of the population.
Here in brief
farm
measure
"The
are
the President's claims for the
Mr. Pofcher maintains best way to get winning
the various barometers which indicate economic trends.
ticket" in uranium
in
our
of
a
Continued
vigorous,
on
page
21
Should
you
peacetime history.
consider investing in uranium?
Yes—if
have substantial capital
(preferably "tax
which .you are prepared to invest in a long
you
now
money")
Following a decline that carried industrial production
down to around 10% from the postwar
peak of last year,
range
the
three- to five-year
is
economy
likely that
on
a
less
The Federal
dustrial
seasonal
unchanged in July for the third
consecutive
vacation
month.
months,
production
was
period of last
t
the
year.
*
by
summer
a
seems
tities
the
The
no
There
general
let
Nicholas E. Peterson
on
by Mr. Peterson at the 61st Annual
Association
SECURITIES NOW IN REGISTRATION
—
of
Maine,
be
in
found
economic
factors
that
substantial
money
made
from
the
is
continuing
a
long-range
government
tickets you
Poland
Springs,
as
Munroe F.
But in any specula-*
mining, the more lottery
discovery.
uranium
of
hold, the
The
way
more you
to
hold
more
Maine,
Continued
Underwriters, dealers and investors in
undertakings in our "Securities in Registration" Section, starting
and potential
on page
State and
29.
'
t
Established
U. S. Government,
Municipal
Securities
telephone;
ALL
*
MARKETS
CALL
ONE
ON
Complete Brokerage Service
U. S. Government
—
4
jf
New
Cotton
Exchange
York
j
Bonds
Exchange
Exchange
Chicago
^
*
MABON & CO.
*
THE NATIONAL CITY BANK
Bell
RE 2-2820
System Teletype NY 1-2152
of
Inc.
1
Trade
Cotton Exchange
N. Y. Cotton Exchange
NEW YORK 4, N.
Sixty Years of Brokerage Service
N. Y. 6
Board
Bond Department
and other Exchanges
Chicago
OF NEW YORK
Members N. Y. and Amer. Stock Exchs.
115 Broadway,
Exchange,
New Orleans
Preferred and Common Stocks
^
Stock
Stock
Commodity
& Foreign Bonds
^
DEPARTMENT
NV
York
American
^
BANK & TRUST
BOND
Members
Municipal,
State and Revenue Bonds
All Corporate
Chemical
f
Municipal
'
£
COMPANY
1856
H. Hentz & Co.
New
£
HAnover 2-3700
30 BROAD ST.,
34
page
cor¬
ut
i
on
porate securities are afforded a complete picture of issues now registered with the SEC
DEALERS
State and
Pofcher
increase your chances of
lottery tickets in
uranium is to investigate as intelligently as possible the
greatest number of property possibilities over a reason¬
ably long period of time, Using all of the available
techniques that have and are proving successful. These
winning.
18
page
Convention
venture such
willing to
to encourage
money
further exploration and
(1) Accelerated government spending prior to elections.
the Savings Banks
Aug. 29, 1954.
will
on
quan¬
and
people make
tive
half year are:
address
based
are
that wants uranium and is
Among the possible stimulating factors for the second
♦An
show
to
your money.
market guaranteed by a
letdown will be followed
fall upturn. There is
for
discovery,
mining and milling of uranium ores.
that
agreement however, on the extent of
the improvement that may be expected*
uranium
of
be
can
be
reserves
ore
run
conclusions
future
which
.
to
fair
you a
geologic indications that great
first
Business sentiment is better.
exploration capi¬
potential
These
closedowns,
For
and
give
aggregate industrial
11% below the same
prevailing feeling
the
tal
production, after allowance
was
seven
not have sufficient
Reserve index of in¬
for
exploration and development program costing not
$2 to $3 million over a
than
period. Probably
not—if you are considering invest¬
ing in speculative ventures which do
leveling off.
It is
seasonally adjusted
basis the low point of this recession
has been passed.
Continued
core
"lottery
speculation is to investigate intelli¬
gently the greatest number of property possibilities, with
use of available
proven techniques. Holding while con¬
sideration of proper precautionary factors will discour¬
age the investor from buying in majority of the new
companies, this will nevertheless enable him to select the
two or three "good speculations" with substantial return.
Sees forces indicating a continued ease in the money
market, and concludes a moderate adjustment is under
way, but the chief stimulating factors that have kept
business at a super-boom level are losing some of their
steam, and the problems before us are the most critical
adopted this year:
law—the central
new
New England banker, after surveying current business
conditions, discusses the economic outlook by analyzing
Finds business sentiment is better and enumerates pos¬
sible stimulating factors for second half of the year.
the special friend of the
Truman upset of 1948,
as
the
Attorney at Law, New York City
Vice-President, First National Bank, Boston
national test of popularity, each of
regularly made strenuous effort to
Ever since
By MUNROE F. POFCHER
By NICHOLAS E. PETERSON*
any
has
And the Investor
Business Barometers
For many years, even
prior to
Uranium Stocks
•
Detroit
Miami Beach
•
•
Bldg.
Y.
Pittsburgh
Coral Gables
THE
CHASE
BANK
NATIONAL
-f.
Hollywood, Fla.
Bond
•
Beverly Hills, Cal.
OP THI CITY
OF NEW YORK
Geneva, Switzerland
Dept. Teletype: NY 1-708
Amsterdam, Holland
CANADIAN
Chattanooga
bonds & stocks
Gas Company
COMMON
Analysis
upon
request
%
JhywaoN Securities
Crporatiohl
40 Exchange
Place, New York B.N.Y*
IRA HAUPT & CO.
Members New York Stock Exchange
and other Principal Exchanges
111
Broadway, N. Y. 6
WOrth 4-6000
Teletype NY 1-702-3
>
WHitehall 4-8161
Boston
Teletype NY 1-2708
Telephone:
Enterprise 1820
2
The Commercial and Financial Chronicle
(870)
...
Thursday, September 2, 1954
1}
We position
The
and trade in
Security I Like Best
Central Electric & Gas
A continuous forum in which, each week,
a different group of experts
advisory field from all sections of the country
participate and give their reasons for favoring a particular security.
Central Illinois Electric & Gas
Week's
Participants and
,-Alabama &
Their Seiections
in the investment and
Central Indiana Gas
Public Utility
Central
This
Forum
(The articles contained in this forum
Citizens Utilities
they
are
be regarded,
to
as an
offer
intended
not
are
be,
to
The
Whirlpool Corporation—Carl
E.
Bryant, Investment Consult¬
sell the securities discussed.)
to
Louisiana Securities
ant, E. M. Newton & Co., Bos¬
nor
ton, Mass. (Page 2)
Gas Service
CARL
Iowa Public Service
E.
BRYANT
producing wash¬
machines for Sears Roebuck
ing
Investment Consultant
E. M. Newton & Co., Boston, Mass.
Otter Tail Power
Bought—Sold—Quoted
nents have been
since
1916.
Ten1
Puget Sound Power & Light
Scranton Spring Brook Water
Upper Peninsula Power
The
be
are
Established
Associate
American
uucmg
a
sale
1920
1
Exchange
120 Broadway, New York 5
WOrth 4-2300
BOSTON
Teletype NY 1-40
OFFICE:
Lincoln
Boston,
Chicago,
Hartjord,
Street
OFFICE:
Liberty Building
Private
Direct
State
84
PHILADELPHIA
Wires
Cleveland,
Houston,
Providence,
to
Dallas,
Philadelphia,
Portland,
the
chdnge
it
enter
by
sales
viously
Rights & Scrip
in
Carl
has
t.
that pre¬
market
a
saturated.
well
been
pool Corporation, one of the large
domestic
up
of
manufacturers
auto¬
ironers
York
American
120
Stock
Stock
Exchange
Exchange
BROADWAY, NEW YORK 5
TEI.
REctor
up-swing
is
basic
a
the
In
of
country
Alabama-Tennessee Natural
Gas
Company
sales
Company
Dan River Mills
electric
in
washers
exceeded
never
this
170,000
Follow¬
1949 to
an
aver¬
of 252,800 units monthly and
have exceeded that figure each
year since. The record of the first
age
five months of 1954 indicates that
Scott, Horner &
Mason, Inc.
A breakdown of these unit sales
between regular electric wash¬
as
Lynchburg, Va.
Tele. LY 62
LD 33
monthly average sales this
will exceed 300,000 units.
year
.
and
ers
completely
Whirlpool's
the
action
indication
trend
American Mercury
Insurance Company
(Currently selling under $7.00)
Bought—Sold—Quoted
to
Special Report Available
★
in
Members New York Stock
American Stock
44 Wall
sales
the direction
automatics.
of
Last
produced
$ales, which
and
makers is
the
year
11.4 times its
was
The rate of increase
gain each
year
rapid.
per¬
over
the
previous
year since 1946, with an
estimate for 1954 based on actual
of
$85,204,210
six months:
1954
Exchange
the
for
(estimated)
1948
+14%
+26%
+34%
+12%
+63%
+14%
+79%
1947
+82%
1952_
1951
Tele.—NY 1-1817
first
.
1953
Exchange
1950
1949__
I
A further indication of the trend
Successor Companies
to automatics is the recent
announcement
paper
that
Thor
Corporation, a Chicago manufac¬
is planning to double its
to
during
meet
orders
received
nationwide tour by sales
executives to introduce three new
Firm Markets
a
automatic washers.
of
for
40c
years
Sc Vot
Members New
York
Stock
Exchange
and
name
25 Broad St., New York 4, N. Y.
Pbjne: HA 2-9766
Tele. NY 1-3222
now
automatic
firm
back,
Whirlpool
Sears
The
manufactures
washer
under
sold
its
"Kenmore."
is
shares of
$1.20
to
reported
to
Whirlpool
in¬
been
in
the
the
third
The
current
represents
1953
of
of
quarter
the
on
common
since
of
rate
$1.60
conservative portion
a
earnings
(58.5%)
own
by
the
that
brand
Incidentally,
own
213,478
common.
Whirlpool Corporation was
organized in 1929, but its compo-
Members New
to
get the business in vol¬
It is in a unique position to
ume.
do
A
di
campaign
in
undertaken
1949
1953.
thus
far.
and
12,000 retail dealers.
zation
the
at
retail
and
factory,
levels.
records
sales
has
It
quiring
liberal,
working capital
that
maintained
000,000
payable
Divi¬
to 1970.
year
restrictions
at
are
17%
by
the
wired
of
washers
include
not
1/1/51
tions
totals
$11,446,000
be
can
with certain
or
These restric¬
made
liberal
more
consents
the
on
part
parties at interest.
Whirlpool
the
American
where
had
it
191/4-14%;
so
far
is listed
common
Stock
a
on
Exchange
1952 of
in
range
in 1953; 21-17%, and
1954, 29V2-17%. At the
in
current market of 28% it sells at
price
that
looks
prospective
in
low
1954
view
earnings.
To
in
this
at the first
year
would
the
be
Con¬
six-months
warranted.
tion
is
made.
earnings and
These
which
of
in
A
are
apprecia¬
stock
with
In
the
store
$5'
ings at 40 and would return 5%.
Currently Whirlpool common
yields 5%%
and sells for
less
year.
this
the
to
to
There is
this
earn¬
favor¬
are
prospects
of
The market is fa¬
modernization
automation
fy
future
industry.
vorable
in
home
the
and
laundry.
clamor for it. To satis¬
a
demand,
it
employment
remains
only
be
and
wages
be high and that
consumers
sufficient
credit
sales.
mains
much
brand
distribution
future
doubt
that
Burnham
and
Company
A
name.,
qual¬
brings 'profits
Members New York Stock
Exchange
Street, New York 5
Cable Address: COBURNHAM
to
stockholders.
FRANK
Specialists in
CANNON
Y.
J. W. Gould & Co., New York City
Hiawatha Oil & Gas
LOW-PRICED
Company
Common Stock
URANIUM STOCKS
My first contact with substantial
oil
stocks
in
was
dissolution
Oil
of
1913
the
after
old
Inquiries Invited
the
Standard
Company of New Jersey, with
markets being made for the stocks
segregated
years
of
stocks
companies.
followed I be¬
that
interested
came
crude
in
oil
looking
and
gas
for
pro¬
ducers that I ascertained had good
management
with
chances
for
WELLINGTON HUNTER
ASSOCIATES
15
Exchange PL, Jersey City 2, N. J.
HEnderson 5-6005
•
Direct N. Y. Phones:
Teletype J Cy 698
WOrth 2-4578-9
of
not
too
distant
past, I selected
Argo Oil Corp. and "General Crude
Oil
Companv, which I thought
fitted
into
this
stocks
were
available at that time
effort
on
the
that be" to
It
part of
see
only
for Whirlpool
that
Oil
approximately
Corpo-
N. Q. B.
1
OVER-THE-COUNTER
INDUSTRIAL STOCK INDEX
60.
14-Year Performance of
I
am
of
Oil &
opinion
of
the
that
the
Hiawatha
Gas Company,
nine
what
the
stock
level,
vision
at the eight
offers the investor
and patience
similar
preciation
re¬
Both
eight to nine level.
The
equivalent today for Argo Oil is
about 83, and for General Crude
to
These
category.
the
at
there
available
Currently,
continued.
then
Royal Dutch Co.
develop¬
ity product with volume sales and
to
are
Philips Gloeilampen
Teletype
with
they
,
NY 1-2262
sire and
the "powers
+'
Dlgby 4-1400
conditions obtain along with a de¬
an
■*." I* ■'
Telephone
"Kenmore"
common
finance
V
\
growth and expansion. Within the
Economic conditions
able
fj
15 Broad
the
ings this
»*«•#'
through sales by Sears under the
In
possible
'
just now
There doesn't
way.
be
to
sell at only eight times such earn¬
its
,
in¬
Whirlpool will get business and
get it in volume, through sales ot
its
own
brand
products
and
the 133
times
Unilever NV
addi¬
by
States, and 24
Sears retail
seem
less
dryers.
will
America.
Latin
the
of
six
Broadway,N.Y.6 COrtlandt T-5680
Mines
and
family
this
market
tap
United
the
$2 dividend would
a
Branches
Bankers
De Beers Consolidated
of Sears Roebuck's dis¬
through 694 retail out¬
tribution
very
materials
70
Investment
a
likely result in
earnings of at least $5 a share.
Higher dividends in such case
would
ttl
1897
—
addition to all its
have the ad¬
efforts,
of
tinuance of sales for the balance of
level
Brokers &
only
the
getting under
about $7.50 a share.
Tokyo
homes
and
generated
population
vantage
lets
that
automatic
market
other
fact
ment in Canada which is
since
Office
frequency
American
have
Whirlpool,
is
income
Established
Home
com¬
witness. The
potential market is
its
formation.
in
Net
Securities Co., Ltd.
calls, to all of
increase in sales
income
1/1/51.
write
reputation
low
a
and cash dividends limited to net
after
or
service
of
creasing
$8,-
than
on
be
Call
Yamaichi
in recent years bears
12/31/53),
less
not
($17,443,216
re¬
The
established
an
does
annually each
knowledge
Japanese potential.
of
\
1954.
quality and
tional
dend
investors with
.
pany's product is being accepted.
for
This
are
have unusual appeal
investors with vision—
distributor
*
in
shares
loans
may
to
of
entirely new line, improved
in design and p e r f o r ma nee,
reached production late in
1953
supported, by the
largest
sales
promotion program in the com¬
pany's history, is producing new
ferred
The
offices
An
automatic
shares.
All
moves in recent years made
possible to strengthen and ex¬
tend the Whirlpool sales organi¬
5%
to 1,534,300
branch
our
JAPANESE
it
have
common
to
SECURITIES
these
indicated
in the
wires
promote
selling
80 carefully selected distributors
than
crease
to
the end of 1953 the
organization/consisted of
year-end Whirlpool had
$10,256,000 serial loans,
178,570
shares of 5V4% convertible pre¬
and '1,355,394 common
outstanding.
Since then,
the preferred has been called re¬
sulting in conversion and an in¬
NY 1-1557
.
was
By
extent
shown
pace
magnitude
Whirlpool brand products. Added
plant capacity in
1952 brought
production close to demand in
of
the
-
St., New York 6, N. Y.
Mobile, Ala.
Direct
the rapid
up
Exchange
Exchange
.
which
keep
Stock
New Orleans, La. Birmingham, Ala,
so.
further increase
to $2 if earnings for the last half
1954
Rector
HAnover 2-0700
ration
for
augurs well for a
York
Members American Stock
record
of
Steiner, Rouse & Co.
19
and
.
teamed up witti Sears Roebuck &
Co.
had
$1
Dividends
1954.
that
Some
which
from
creased
news¬
turer,
output
$2.74 for the entire
Furthermore, the divi¬
with
rate
than
I. G. FARBEN
was
com¬
last quarter of 1953 was recently
increased to $1.60 by declaration
an
$149,129,142
in sales each year has been
The
following shows the
Street, New York 5, N. Y.
Tel. DI 4-7140
of
dollar
other
sales in 1946.
sales
Peter P. McDermott & Co,
of
Whirlpool
centage
.
automatic
machines is not made but the trend
of
stockholders
At the
unit
1935-1946,
monthly on the average.
ing the war, sales rose sharply on
a
pent up demand to an average
of 360,000 monthly in 1948, the
peak of the past five years. Unit
the
The result for
share for six months
1953.
dend
appeal.
years
sales declined in
Commonwealth Natural Gas
of
Reduction
volume.
in
sales
American Furniture Company
of
a
household drudgery and the hours
that the home-maker spends at it
2-7815
Trading Markets
cycli¬
modernization,
is in
and the automatic washer is mov¬
ing
Members
New
profits for the
were up $900,000 over
period and net income
$1,600,000.
a
1930.
The home laundry
McDonnell & Co.
profits taxes helped.
have been paid in every year
for the home.
cal
well
as
preferred
pre-tax
common
year
matic washers, dryers and
Since 1917
1953
pared
ttryanc
<
this latter type is The Whirl¬
Of
the
$2.63
modernization
ment
1952,
its
of
To be sure, elimina¬
excess
was
the
stage
replace-
another in
and
conversion
However,
half-year
promoting
and
hit
hard
was
profits taxes but showed
excess
tion of
rapid
a
It
pre-tax margin of 8 to 11.5%.
of a two-for-one split in
gin of 10%.
or
Cannon, J. W.
New York City.
a
early this year, the earn¬
ings in the first half of 1954 were
$2.63 a share with a pre-tax mar¬
improve it and
growth
of
called
accepted
Y.
Co.,
(Page 2)
In the past eight years
has
reached
the
its stockholders.
1948
company
with a w e 11
&
major producer with
growing profits and dividends for
as
a
may
Gould
company
stature
a
a
product
Stock—Frank
or¬
less than
were
In spite
its
in
the
by
new
steadily ex¬
panding mar¬
ket. However,
Me.
Specialists in
of pro-
process
and
promoting
Member
Stock
in
one
product
Corporation
$6,000,000.
two
phases to the
"growth company" idea. Usually
a
growth company is considered
to
New York Hanseatic
Whirlpool Corporation
There
after
years
ganization its sales
Hiawatha Oil & Gas Co. Common
in
a
FOLDER
REQUEST
4
National Quotation Bureau
Incorporated
46 Front Street
on
ON
some¬
opportunity for ap¬
value, as was pre-
Continued
35 Industrial Stocks
page
23
New
York4,N.Y.
Volume
Number 5356
180
.
.
The Commercial and Financial Chronicle
.
It Should Never
INDEX
Articles and News
Have Been Started!
A Fresh
SEC
dismisses
proceedings
against
"Chronicle" editorials reviewed.
3
(871)
Olis
&
Co.
—Nicholas E.
Pertinent
Public cost of Administrative
-
page
Look at the Business Barometers
Peterson
Cover
Uranium Stocks and the Investor—Munroe F. Pofcher
PER the wall with those
securities
Cover
meddling outlined.
The
cliche
will
"Justice
that
triumphant"
finally found its realization in the "Findings and Opinion
of the Securities and Exchange Commission" exonerating
Otis & Co. from any violations of law in connection with
the Kaiser-Frazer underwriting.
emerge
4
Atomic Energy and the Outlook for Business—Jules Bachman
5
CK the stuff off to
INT the town with
E.
—Leroy
Rodman
for
A Plea for Monetary
6
Restoration—Ernest R. Gutmann.
Role of Investment Banker in Underwriting
99 WALL
STREET, NEW YORK
Telephone: Whitehall 4-6551
7
Securities
i
N
'
Dudley N. Schoales_
Role of Insurance in
9
_
Consolidated Uranium
Promoting U. S.-Latin American
Solidarity—John A. Diemand
10
—
How the Canadian Government Functions—Hon. C. D. Howe—
these
proceedings was based upon
(1) That Otis caused a lawsuit
(the Masterson Suit) to be filed against Kaiser-Frazer to
evade its obligations under its underwriting contract;
(2) while Kaiser-Frazer was stabilizing the market, Otis
got others to sell with a view of repurchasing from the
underwriters at the lower public offering price; and
these
alleged grounds:
Norfolk
•
Federal Uranium
11
Lisbon Uranium
and Western Railway An Investment Grade Common
Stock—Hubert F. Atwater
13
Standard Uranium
Our Current Economic and Financial Problems
—Martin
Stock
the
Is
R.
Uranium-Petroleum
16
Gainsbrugh
Market Top-Heavy?—Norman
16
Steelman
Bought—Sold—Quoted
Your Head Has
Gold
a
19
Mine—Roger W. Babson
(3) Otis offered and sold the Kaiser-Frazer stock before
the
«$>
registration statement became effective.
Should Never Have
It
In now granting a motion' to dismiss these proceed¬
ings, the Commission, as to the first charge, adopts the
decision of the Court of Appeals for the Second Circuit
Been
Started!
(Editorial)
3
T
Mutual Savings Banks Deposits Now Over $25*4 Billion.
Gearhart & Otis, Inc.
12
74
-
Purchasing Agents See August Pickup in Business Better
that the instant
underwriting contract was illegal because
registration statement of the securities with which it
the
dealt
-
-
false
Than
t
Economic
*
the
says
New
Investing Course Announced
:
Samuel Penski. Sees Stock Market Due for Technical
f
Correction
(Letter to Editor)————
Telephone
Teletype
WHitehall 3-2900
NY 1-576
16
——_
are
Frederick Shull Disputes Einzig's Views
: .Note Increase (Letter to Editor)
;
British Bank.
on
17
MEXICAN
-
v
evidence to
no
■t
•
Y
i :■>
.
case
has been made out.
First National Bank of Boston Scores Attempted Revival of
Deal
•New
*:
the Commission found there
support them and that no prima facie
As to the other charges,
was
.
"
\
A
:.
&
"*
we
detriment
already suffered by Otis and of the fact that
result of the termination of the underwriting contract
As
came
to
*
*
:
►
23
Co.__l
..
'•
,
'
'■
»■■
"
.
.
•
"
•
,
J. RAY McDERMOTT
f
•
,
■
;
•
public investors to whom the stock was
See It
We
Stocks
and Insurance
broker-dealer
membership .in. The NASD because of such al
and
its
SULPHUR
12
:
DOESKIN PRODUCTS
'
Bookshelf
Business Man's
;
respect to Otis' registration as a
¬
%
36
GIANT PORTLAND
6
C.
CEMENT
8
We maintain
than
Einzig: "Britain's Business Boomlet"—
In pursuit of our editorial policy we expressed cer¬
was going on, some of which we;;
review with considerable satisfaction.
"
From Washington Ahead of the
v-
tain views while all this
now
Coming Events in Investment Field
Dpaler-Broker Investment' Recommendations
leged acts."
y
'
News—Carlisle Bargeron_^__
,•
*
trading markets in
over-the-counter
24
HA 2-0270
we
said:
.
"We have remonstrated with the
.
Securities and Ex-
;
change Commission and with the National Association of
Securities Dealers for their combined unreasoning entry
into
private dispute
a
V
News About Banks and Bankers—
f.
Observations—A.
arising out of an underwriting
by reputable litigants who have placed their rights
the equities before the courts for adjudication and
therefore the administrative bodies should have
and
that
neutral and strictly hands off policy until the
render judgment."
adopted
courts
"*
to
a
*
*
persistent efforts of the SEC and the NASD
discipline Otis & Company served neither the public
the
Continued
on
page
Wilfred
Our
12
Securities Now in Registration
29
Prospective
Offerings
Security
The
.
.
.
specialized in
New York Stock Exchange
ST., NEW YORK 4, N. Y.
TELEPHONE HAnover 2-4300
Albany
•
Manchester, N. H.
Boston
•
TELETYPE N. Y. 1-5
•
•
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Chicago
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•
Schenectady
•
Worcester
Heintz, Inc.
Reeves-Ely Lab, Inc.
Common
&
Preferred
■
i
-
l
New
2-9570
Publishers
Publisher
„
SEIBERT,
President
Every Thursday
(general news and ad(com-
and every Monday
issue)
plete statistical issue — market
records, corporation news, bank
state and city news, etc.).
Other
Chicago
Offices:
3,
HI.
135
South
La
(Telephone STate
quotation
clearings,
Chemicals Co^
the
post
at
office
New
York, N. Y., under the Act of March 8,1879.
In
WM V. FRANKEL & CO.
Rates
United
States,
U.
S.
Possessions, Territories and Members of
Pan-American
Union,
Dominion
Canada,
of
$48.00 per
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year;
per
in
year.
Other Publication
Bank and Quotation Record
Note—On
St.,
2-0613);
rate
of
account
of
the
—
Monthly,
_
fluctuations in
exchange, remittances for for-
elgn subscriptions and advertisements must
be made in New York funds.
INCORPORATED
39
BROADWAY, NEW YORK 6
WHitehall
3-3960
Teletype NY 1-4040 & 4041
$33.00 per year. (Fbreign postage extra.)
the
Salle
at
other Countries, $55.00 per year.
Thursday, September 2, 1954
vertising
1942,
Subscriptions
_
DANA
West End
Subscription
9576
HERBERT D. SEIBERT, Editor &
WILLIAM
25,
York 7, N. Y.
to
Eng-
C„
Company
ary
Place,
E.
Reentered as second-class matter Febru¬
Reg. U. S. Patent Office
Park
London,
Copyright 1954 by William B. Dana
c
FINANCIAL CHRONICLE
B. DANA COMPANY,
Gardens,
Drapers'
lanrd' c/o ^ards *
COMMERCIAL and
REctor
Members
Jack &
4
^Column not available this week.
22
25
25 BROAD
Corporation
36
Washington and You
WILLIAM
Spencer Trask & Co.
Tidelands Oils
2
Industry
runnyin
PREFERRED STOCKS
Sulphur O
15
Security I Like Best
Published Twice Weekly
have
32
and You—By Wallace Streete
The State of Trade and
Sulphur Corporation
Pan American
23
Securities Salesman's Corner
The Market
Gulf
*
28
__.
Railroad Securities
The
For many years we
5
Public Utility Securities
*
Exchange PL,
25
Report.
Reporter's
40
Teletype NY 1-1825 & NY 1-1826
14
May
Our Reporter on Governments———
agreement between Otis & Company and Kaiser-Frazer.".
i
"Our attitude is that the dispute is a private one con¬
ducted
8
Notes
NSTA
mor
securitk
Singer, Bean
& MACKIE, Inc.
27
__'
Mutual Funds
250
17
i
of Current Business Activity
Indications
.
Among these
t
PAN AMERICAN
Cover
(Editorial)..
offered, it would not be in the public interest to take any
action with
DAN RIVER MILLS
V.Regular Features
\ Bank
.
harm
■*
■
HYCON
;
*
satisfied that in view of the extensive
are
Railway
.
■
*
*
'
Denver
.
GULP
SULPHUR
22
Philosophy
■
■
The Commission adds:
.
.
R. Wright Armstrong Optimistic on Prospects of Fort Worth
v-xm
as a
>•
Trading Dept.
15
...
avoid
«
no
Unlisted
14
in part:
provisions cited in the order for proceed¬
performance oT:an illegal' and; unenforceable'
I contract between an issuer and an underwriter." '
to
,
■
<$>
not applicable in,the circumstances presented,",
"insofar as it realates to "^^•,,,;'1;he-alleged''-use of a device -
ings
Policy
Reilly, Manager
.
Dealing with the Masterson Suit, the SEC
*
❖
13
Year Ago
Texts of Eisenhower-Bullis Correspondence on Foreign
and
•
"*
a
Trinity Place, New York 6
«'•
John F.
misleading in that it substantially
misrepresented certain earnings.
/•••
was
.
-
cash!
Obsolete Securities Dept.
Policy—Paul Studenski—_
Dealers.
Order
our
6
s
Our Monetary and Fiscal
August, 1948, more than six years ago, pro¬
ceedings were instituted by the SEC to determine whether
the broker-dealer registration of Otis should be revoked,
and whether Otis should be suspended or expelled from
membership in the National Association of Securities
The
us
Monthly Investment Plan Helped by New Revenue Code
Back in
.
Strength in Cement—Ira U. Cobleigh
Direct
Wire
to
PLEDGER & COMPANY, INC.,
LOS ANGELES
4
(872)
The Commercial and Financial Chronicle
You
Strength in Cement
in
back
and
the
in
1930's;
of them with long
some
short,
and
new
By
ce-
shares
t
m e n
today still call
dangerously
They
opine that the
over,
the
ce¬
cashed
in
slacken,
it
as
has
steel,
a
and
cars
for
copper
TV sets.
In
word, to these somewhat hard¬
bitten
characters,
too high and if
are
they have
any
place to go, it's down.
opinion for the
years, the cement pes¬
simists do have a few points of
logic culled from the history of
the
trade.
an
an
five
past
In
the
'20s
there
capacity
in
1946
pounds,
or
and
and
million
•The
pitiful losses.
as
50c
a
around
Cement sold
barrel
$2.85
at
the mill.
might
of
25
and
in
capacity,
most
hitting anywhere
operation, price cutting
were
55%
the
of
near
was
incisive and, to add to the trade's
Swedish cements
ing into the
Eastern
distressingly
The
blues
holder
they
were
were
were
the
not
cement
panding
stock¬
ahead. As
business
ment.
Then
came
and
another
slack¬
for
great that it
was
Pennsylvania
mand was, all
of
such
cash
as
Price
time
one
cement
was
so
being bought in
and
trucked
to
Price Restraint
A principal problem of cement
in the eight postwar years was
in other
ultimate
total
capacity
made.
Whereas
vanced
to
the
building
mill
times
as
mill
25
today)
equal
years
not
ma¬
to
been
has
extent
much
of
have
price
around
f.o.b.
importantly include cement
the
undis¬
Miami.
averages
our
production capacity, by
But
more gen¬
At
us
Here
now.
up
we
industries
ad¬
noted
$2.85
a
it
costs
build
capacity
a
(it
barrel
four
cement
today,
as
the
Does
It is true that, for the first
in
a
into
of years,
score
has
cement
Belgian
coming in vol¬
been
New
York
the while, growing
a
cement mill
just
can't build
any
old place.
and
Boston,
with Danish and German imports
a distinct possibility;
but the de¬
mand
looks
so
bright that, at
least for another year, the Amer¬
ican
cement companies
will be
operating at virtual capacity. Ce¬
ment company
as
shares look as solid
building or construction
any
equities
you
talizations
can
in
cite.
most
The capi¬
cases
are
amazingly simple — just common
stock—preferreds or bonds, if any,
having been retired out of the
lush cash earnings of
Some Industry
Well
recent years.
Leaders
assuming that ce¬
offers financial
then,
ment
today
strength moderately comparable
to its structural strength, which
look
ones
have
notion
big
if
you
buying shoes on?
My
most
your
would
attractive
be
to
start
with
a
with a number of
mills strategically located through¬
country, like Lehigh Port¬
Co., Lehigh earned
Penn Dixie is sell"
Kugel, Stone
&
Co.
Incorporated
at
and
could
$2.50.
Among
the
Giant
its
more
has
of
future
near
last
that
week
with
goods
many restrictions on trade in
Iron Curtain countries will soon
some
claims
front, the government reported that idle
jobless pay and the total of workers
for
last Oct.
In
.
31, when 234,000
claims
new
smaller
filed.
were
the week ended
Aug. 14, meanwhile, the total of workers
drawing compensation dropped by 34,100 to 1,716,200. This was.
the lowest level since the week ended
last Dec. 26, when insured
1,589,125. The latest total compares with
unemployment of 822,068 a year earlier.
Among factors contributing to the reduction in new claims,
unemployment totaled
insured
the Bureau of Employment Security
said, were fewer vacation
layoffs, a decline in new unemployment in industries expanding
seasonally, and a reduction in layoffs in the fabricated metals,
electrical equipment and non-electrical
machinery industries.
Manufacturers'
for
sales
the
$22,400,000,000,
$2,300,000,000
States
of
off
Department
justment, volume
inventories
a
$500,000,000
less than
a
was
the
at
Commerce
about the
of
end
reduction
year
month
from
July
a
of
as
valued
the
amounted
the
ago,
After
in June.
same
were
during
July
year
reported.
been
course
ad¬
Manufacturers'
at
$44.200,000,000—
and $2,200,000,000
month,
Personal income has shown "considerable
stability" since the
spring of 1953, states the United States Department of Commerce
this week. During
July, it noted, income receipts of individuals
ran at a
yearly rate of $286,500,000,000, unchanged from June, but
$1,700,000,000 below the pace of July, 1953. For the first seven
months, however, personal income set
or $200,000,000 above the like
an
000,000,
This
in
week
marks
annual
gait of $285,600,-
1953 period.
the
beginning of the long-awaited upturn
states "The Iron Age," national metalworkThere is a modest increase in new orders and pro¬
the steel market,
ing weekly.
duction is scheduled
slightly higher for the
With the
of the
exception
continue to
The
been
second week in
Labor
Day week, the
it reports.
improve gradually,
significant thing about the upturn is
most
achieved
without
the
stimulus
everyone
row.
a
market should
has
that
been
it
has
waiting
for—renewed steel buying by the auto
industry for new models.
When that happens it will furnish more
strength to an already
recovering patient.
Still, there is
spectacular
1
no
reason
to
expect that improvement will be
sudden.
It may actually be so slow as to be
barely
discernable from week to week.
But within the next two months
or so the ingot rate should climb
about 10
or
Here
are
points, continues this
the signs that tell
the
us
steel
market
has turned
and is headed up "The Iron Age" points out:
(1)
eral steel companies have noticed a
slight increase in both
and
corner
Sev¬
tonnage
number of
new
orders.1
The
ones
not
reporting
Continued
an
on
increase
page
52.
companies
especially
to
share
good.
in
the
We
are
i
pleased to
announce
MR. T. E. PLUMRIDGE
daddy of them all, Universal Atlas
Cement Co., you must be a stock¬
has been elected
a
holder in U. S.
Office
August 30th 1954
been
to
a
Steel, which owns
outright.
Alpha
has
solid
performer
Vice President
paying
dividends in 36 out of the past 38
30
BROAD STREET
years.
Riverside Cement in Cali¬
fornia
looks
Cement
NEW
VORK 4, N. Y.
"
of this
interesting.
has
proven
a
WHitehall 3-2050
'
teletype:
commodity with expanded usage
today deployment of funds
N.Y. 1-1822
into this industry does not appear
difficult to justify. Perhaps some
the issues we've named de¬
your more detailed analysis.
among
serve
Corporation
durable
EASTERN
and
telephone:
to
United
seasonal
earlier.
earnings
about
Employment Security said
That high
than the De¬
Price
year
Carolina, where the de¬
Univerasl
on
a
ended
looks
South
Arid
of
952
good with a mill in
Pennsylvania and a quite new one
in
the removal
times
nine
pay
dicated
mand
announces
only
mg
con¬
further stated
The Aug. 21
the
is marvellous.
equipment
was
218,700 below the
came in early January.
week's total of new claims compares with 178,year earlier. The latest total is the lowest since the week
1954 peak.
3%
higher dividend could
It
/
trade paper.
a
to
new
$3.32 in 1953, pays $1.20, could pay
this year. At 40 the yield is
but
idle
claims dropped by 5,600 in the week ended
Aug. 21 to 250,The drop was the sixth in a row.
Over the six weeks, new
claims volume has sunk by 94,000 to a level
more
correct that, and the balance sheet
condition
100.
company
Cement
industry will keep produc¬
output of military,
Private industry will be
full-scale
time.
war
new
sight is fantastically good. Pres¬
tinue.
possible
The Labor Department's Bureau of
(should it come) and the demand
schools, hospitals, sewers, dams,
etc., to meet the requirements of
our 160 million population
suggest
that big cement buying will con¬
York, according to
that during the
getting benefits have both fallen to the lowest levels this
in the period ended Aug. 21.
industry is more stabilized than
certainly well heeled enough
to stand quite a bit of adversity
road
building
program
fine, home building is still
roaring and the need for new
New
estimated
and
On the employment
ever,
terstate
in
to certain distressed
industries,
textiles, and will make relevant recom¬
the Congress in January. The
Secretary of Com¬
announced
workers'
pessimists (whom we dusted off
bit earlier) have validity at this
juncture?
In the main, no. The
looks
Here
productive
the
in
coal
non-strategic
the
of
argument
for
in
be lifted.
a
land
you
mendations
in the market that has Dow
last?
soft
as
merce
slapping Jones on the back.
Now we get down to the crucial
question. Is all this too good to
ume
Index
improvement in indus¬
an
essential for possible defense needs.
attention
able
the increase, wonder¬
on
Fall.
of
security analysts
ready
maintain
to
such
solvency, and share perform¬
time
Production
payments of several hundred millions will be involved annually.
It was reported that the Administration
plans to devote consider¬
time high in earning power
(particularly without E. P. T.), a
cash payout that is excellent and
probably
the
of
week
that in the future private
facilities
sidered
all
ance
Price
Auto
railroad carloadings should rise and more
nearly approximate last year's freight traffic.
The past week President Eisenhower stated that
stockpiles
of lead and zinc will be
increased, which will boost output of
these mining industries.
The Office of Defense Mobilization also
paid
the
sellers'
a
(thanks mainly to a pro¬
of non-expansion), with an
gram
out the
ago.
Another thing,
de¬
of
one
in
still
in
group
a
last
atomic and maritime needs in
market
ful
Food
Business Failures
remainder of the year
tive
pretty much
see
evidence
production
reports,
Market
ident Eisenhower's $50 billion in-
bonds.
not uncommon.
That brings
few
Industry
was
announced
Still In Sellers'
dividend
the
trial
markets.
to
Trade
Commodity Price Index
J
There
product,
limestone supply,
transportation
costs,
have
tended to prevent cement mills
springing up all over, like super¬
in
form
government
was
were
products.
and
of
the
in
demand
to
ce¬
stopped
did not
more
much
as
output
companies,
tended to
as
could be
company
cash
up,
way
and
and
reasons
1943
building new plants
turning out, at a titanic
rate, the military hardware which
we
same
Carloadings
Retail
State of Trade
and
65%). In fact this lag in
price is probably one of the major
why significant additions
and an ex¬
works
program
ening off spell. While cement
in good demand to beef
up
war
cement
be
such
about
advanced,
public
the
to
terials
(lumber has advanced
400% in the past 15 years, cement
Tide Turned
the sorely needed lift to
gave
continues
ago)
shot
noticeable
real.
The
generally
at
prices.
psychosomatic—
But brighter days
lay
the
1940's
approached,
Not
Competition of the thirties,
monopoly price charges by the
Federal Trade Commission, and
price controls lasting well into
the postwar era (they ended in
1953) tended to deny to cement
the
heavy
price
upswings
so
pour¬
seaboard
competitive
of
much as
was
imagined.
price.
imports of Belgian, Danish
woes,
and
cement
on
much
and
profit. In the early thirties
no
this
have
cement
years
were
represent
them will grind out all limestone
few
of
gains of 150% and 200% in shares
heavy original investment and
unless
they operate somewhere
55%
376
able chunk of earnings to research
and
a
above
equals
tidy balance sheet baubles
mills
barrels
being burdened with heavy out¬
lays for new plant, year by year
(as, say, a chemical companv),
and not having to devote any siz¬
enterprise
(It's
today.)
Cement
million
tributed earnings stayed with the
Financial reorganizations or re¬
capitalizations were definitely in
fashion.
170
barrel
payouts grew
at
low
as
was
effect
erous,
operate
In this way,
able to bulge its
stocks in the market
ment
or
in
last year.
earnings
close
65%
four ordinary bags of
is a hangover from
the days when cement was actu¬
ally packed in barrels)
to 261
the, then, population) and the
dreary thirties saw a lot of ce¬
mills
about
today.
(a
cement,
made
pro¬
(for those times
95%
from
(since
was
overexpansion of cement
duction
to
industry
you
With due regard to the error of
holding such
the
shares
cement
from
operation
the seashore
plant in Bunnell,
Production
Electric Output
near
or
steadily sold quite locally, within
say a 225-mile radius of the plant.
These three factors, price of plant
of
renewal
output
cement
will
plant expansion a la
True, there was some
of new plant facility,
1920's?
1946
demand
*
lead, motor
of
it, and that
for
its
old, but by and
large, the technique employed was
merely to hop up the percentage
industry
the
Cobleigh
By
the
building boom
on
U.
future?
building
has
Ira
in
some
that
like
industry
Steel
The
result, cement
breweries, have
a
create
in
ability,
postwar
ment
cement
demand, and profit¬
history. But how
did it propose to meet this golden
cvclical.
about
the
1946
advances
cement shares
is
new
schools,
hospitals, all
poised for the most dramatic
was
/f
Valley districts
where the limestone
comes
from
ground-up coquina
shells. Cement is a heavy product
and it costs a lot to transport it.
unbuilt pending the war's end.
memories
positions, in
no
or
roads,
housing, new
apace—new
East,
the Lehigh
As
got stuck in
substantial
a
Florida,
manufacturers of this magic adhesive powder.
cement
the
like
Mixing together some items about cement, the bed rock of the
building trade, and offering some notes about a few of the
of investors
near
and Hudson River
Enterprise Economist
lot
it
supply
of limestone, either
in
quarries as in the Lehigh Valley
By IRA U. COBLEIGII
A
build
Thursday, September 2, 1954
120
Broadway'
Tel.
-
.
SECURITIES, INC.
:
•
T
:
New York 5, N. Y.
Dlgby 9-3550—Teletype: NY 1-4127
26
Volume
Number 5356
180
.
.
The Commercial and Financial Chronicle
.
(873)
Atomic
By DR. JULES BACKMAN*
Professor of Economics, New York
DRAMATIZING VALUE
And Other
The
booming Battle for Montgomery
Ward, with its kliegconferences and the front-page rags-to-riches story
of the venerable Seward Avery's young
challenger, assuredly is
providing the public with its fill of drama and glamour.
Areas with atomic energy
Atomic
installations are gigantic
trial
aggregations.
One
panying
aev e lopment
corporation finance.
First, Mr. Wolfson's arrisubstantiates
the
elements, conliquid assets and
sisting
of
development
into
Wilfred
action
market
strates
A.
potentialities,
again
areas.
plants
energy
indus¬
accom¬
large
m
erating
1
i t i
e s.
ably
demon-
of
that given
a
is
In
a
special interview
Wolfson expressed himself
75)
as
with
your columnist this week, Mr.
envisaging 175 (versus the current
eventual attainable market price for the stock. This
an
as
happy conclusion he bases on the ratio of market to book value
of Sears; as well as on the boost to volume and net derivable
from management reform.
Mr. Wolfson disclosed that careful
study has revealed to him that with the putting of idle capital to
work, under competent merchandising personnel which he has
surveyed,
feasible.
net
net-after-tax
a
On
income
5%
is
volume
entirely
volume expanded to $1% billion this would mean
a
earnings
of
$12
of
of
interest
is
that
the
sales
potential
and
quantitative
value
ele¬
ments of net quick liquidating value of $87 per share, with $45
in cash and Governments (excluding unsold but cashable time
payment accounts of another $27 per share)
tical
And
..
coming to prac¬
are
fruition.
should
profit plans
are
be increased
as
it
even
turn
that these
out
expanded sales
and
not embarked upon; in any event dividends would
a result of being raised to a fair payout propor¬
tion, in contrast to the existing policy of even hoarding current
earnings to swell the already overflowing cash till. As Mr. Wolf¬
son
remarked to me, it is a wonder that the existing dividend
policy has not been penalized under section 102 for unwarranted
accumulation of surplus.
as
<
'
^
Alternatively in the event of non-expansion, the suggestion,
broached on behalf of a group of stockholders by Thomas J.
Gerstley Sunstein & Co., for a major dis¬
tribution could be followed; namely, to use some portion of the
short-term U. S. Government securities (then $232 million, now
McCann,
$270
1%,
partner
million),
for
the
of
which
effective net yield of less than
of the company's outstanding common
have
acquisition
an
stock, either by open-market purchases or by requesting tenders
at some price above the current market and below the net liqui¬
Now one million shares could be
dating value.
bought in by the
Continued
on
page
25
en-
Of
area.
part,
portance
be
the
against
be the
experimental research laboratories
of industries which are potential
of atomic energy.
of
stilts
A
retail
stores,
these
—
More
are
and
bigger
wholesale
more
the
inevitable
by¬
products of atomic energy instal¬
lations.
And
ment.
no
government—Re¬
Democratic—is going
or
to stand
by idly under such cir¬
cumstances.
The
cure
for the
of
inflation
will
be
inflation rather than defla¬
tion.
As I
look
for
sequences
de¬
see the long-term out¬
commodity prices, we
established a new plateau
have
effects of bank failures. Govern¬
which is at least 75 to 100% above
the
prewar
level.
Prices
will
ment
deficits
automatically
activity
are
when
business
declines because tax
de¬
revenue
fluctuate
above
below it.
There will be
tition
the
of
that
level—not
collapse
no
in
that followed World War I.
increased.
With Reinholdt & Gardner
Business Forecast and Prices
Business
marked
activity will shoW
recovery during the
mainder of 1954.
<Special
no
ST.
re¬
to
The
Financial
LOUIS,
Mo.
Chronicle)
—
James
However, the path will not be
one of steady growth.
During the
early stages of atomic installa¬
We wish to
tions, the growth will be exceed¬
ingly rapid because of the large
volume
of
construction
Robert H. whitacre
completed, some set¬
tling down is to be expected as
construction
and
as
crews
move
suppliers of building
terials
face
a
contraction
in
is
now
associated with this firm in
our
on
United States Government
ma¬
vol¬
and Municipal Bond Departments
But the Vacuum created will
ume.
that
required.
When this is
the
announce
slowly but surely be filled by the
development of the various satel¬
lite
industries.
The
communities
and
the
outlook
is
for
favor¬
very
employment oppor¬
1948,
the
population
J.q.WHITE 6c COMPANY
w
Business Forecast Long Term
Since
founded 1890
1
incorporated
37
of
Wall Street,
New York 5,N.Y.
the United States has increased by
a
Direct Private Wire to
an
amount
equal to
population of Canada.
the
entire
September 1, 1954
To state it
'
f
differently,
.
Fairman, Harris & Company, Inc.
209 S. LA SALLE STREET. CHICAGO 4,
ILLINOIS
greater
or
a new
than
this
country
tion
of
Here is
Associate Member American Stock Exchange
120 BROADWAY
•
BOSTON
Mid-West Represent alive:
NEW YORK 5, N. Y.
Teletype: NY 1-40-1-2
.
PHILADELPHIA
William A. Sholten, 120 So. La SaUe Street, Chicago 3, IIL
Direct Private Wires to Boston, Chicago,
Cleveland, Dallasf
a
a
period
of
six
dramatic illustra¬
years
has
birth rate
WE
opportunities in all
The Bureau of the
ulation.
25%
HAS
IN
ex¬
or an increase of
the present total. Here
basic
reason
over
for
the
economy
OUR
SAN
p. Rich
ASSOCIATED
BECOME
FRANCISCO
manager
of our
further tax
Heller, Bruce & Co.
INVESTMENT BONDS
reductions will;
possible—in the absence of:
new wars—the levels will remain
♦A
department
visu¬
be
statement by Professor
presented before the inaugural
the Ohio Savings and Loan
summary
session
AS
the next two decades.
Big government is here to stay.
means high taxes. While
Backman
WITH US
OFFICE
trading
SAN
:
of
Academy, Granville, O., Aug. 14, 1954.
NEW
FRANCISCO
"4
SEPTEMBER
Hartford^ Houston, Philadelphia, Providence, Portland, Me.
THAT
ANNOUNCE
ex¬
And this
some
TO
ipillion
panding American
alized
PLEASED
Robert
Census
By 1975, the total will
over
the
is
ARE
in
meant
estimates that in the next 10 years
we will add 25 million to our pop¬
ceed 200
Established 1920
Telephone: WOrth 4-2300
lines.
in
what the large
of
recent
terms of sales
Corporation
market equal to
the entire Ca¬
nadian market has been created in
years.
New York Hanseatic
R.
Crouch is with Reinholdt & Gard¬
A balance sheet
In part,
unavoidable.
are
announce
opening of
repe¬
prices
the greater needs of the forces at work shows the ner, 400 Locust Street, members
may be satisfied by the modern¬ following:
Expansionary factors of the New York and Midwest
ization and enlargement of exist¬ include
higher
construction Stock Exchanges. Mr. Crouch has
ing facilities.
But new facilities awards, tax relief and tax re¬ recently been with the Union Na¬
also are required.
tional Bank of Springfield. In the
form,
the
government's
easy
Community facilities also must money policy, and increasing state past he was with Edward D. Jones
be expanded. More schools, more and local expenditures. The sus& Co.
hospitals, more police, firemen,
and related services.
These, too
«
the
con¬
more
these
facilities.
are
publican
developments clines rapidly while some types of
creates the need for many serv¬ government expenditures may be
companying
only be reduced in
major decline in prices would be
accompanied by huge unemploy¬
price
bank
run
posits gives protection against the
increased
The increase in employment ac¬
catastrophic
Guarantee
can
the short
under prices in many
sectors of our economy—and these
are not likely to be reduced.
A
more
past.
institutional
declines.
Dr. Jules Backman
tunities very good.
pleased to
to
in
millions of families, including the
unemployed and the aged. Farm
incomes are protected, at least in
o
particular im¬
should
than
changes in
economy.
Social insurance, in¬
cluding unemployment insurance,
places a floor under the income of
using
the
able
are
continue
various
t
such
w.
will
economy
by large budgetary
surpluses—a politically impossible
situation.
High unit labor cost
ac¬
cluster
attracted
has not taken place since
World War II and is not
likely to
occur.
The large inflation in our
the
repetition of the 1929-33 collapse
is not likely to recur because of
trade, more recreational facilities,
improved roads, service stations,
all
under
return to pre¬
wars
to
facil-
mately 14).
Whether these expectations turn out precisely valid is not at
crucial to our broad investment conclusions.
Our point of
schools
no
The collapse of
prices which developed after past
grows
Inevit¬
ice
.
certain
seem
the demand
additional
tivity
further substantiating the 175
market price (in line with Sears' price-earnings ratio of approxi¬
share,
per
as
moderate
atomic
users
taxes
place
The fluctuations of business
plants and fa¬
L. E. Wolfson
local
take
g e n-
ergy
Wolfson's Expectations
background which would
a
dynamic expansion of
to
price levels.
war
recent years.
scale
electric
§
the
lead
economic! activity.
considerably higher than those
prior to World War II. At
the same time, further increases
for
cilities will be
Mr.
not
known
in
and steel out¬
put,
liquidation
of
consumer
credit, reductions in plant and
equipment expenditures. This is
impact of the high birth rate in
the creation of
enough time, "value will out"
—jn one way Or another.
May
growing
necessarily
value-appraisal approach
investing policy. The
current
galvanization
of
an
value
Energy
inventory
farm outlook,
poor
in auto
There will be
are
principles of investment and
Ward's
reductions
structure.
Atomic
ready evincing some extreme¬
ly serious and fundamental
as
to ensue from
But be¬
yond this, the embroglio is al¬
scene
analyzes mixed economic results
development of areas with atomic energy plants. By way of
business forecast, expects fluctuations to be more moderate
than heretofore, owing to creation of subsidising floors. Pre¬
dicts political factors will lend long-term stability to price
press
val-on-the
liquidation, the
Dr. Backman
Implications of the Battle of
product
factors include: further
University
—
Montgomery Ward
lighted
end
Outlook for Business
By a. WILFRED may
include:
the high
demand,
mainte¬
nance of disposable
income, high
savings, strength in foreign econ¬
omies,
built-in
stabilizers, and
high level Federal Government
spending.
Important
negative
Energy and the
Observations...
—
taining forces
5
1.
19S4
YORK
6
The Commercial and Financial Chronicle
(874)
birthday;
Monthly Investment Plan
Helped by New Revenue Code
his
and
become
or
Our
prior
would
estate
in the event
death, such
(3)
child's
the
of
assets
payable
to
By PAUL STUDENSKI*
legally direct.
Desirable
Fiscal Adviser, New York State Division of the
Budget;
Professor of Economics, New York
Permitted
Trust
University
By LEROY E. RODMAN
The
Member
of
the
New
York
Bar
the
supplies brokers with
the Stock
a new
trust
a
for
Changes made in our tax laws
by
the
new
Internal
Revenue
men
interested
ket
inevitably
Code of 1954 should prove
helpful
the Monthly Investment Plan
where
to
few
set
by the
their
York
ties
up
New
Stock
Ex¬
change.
Jan.
25,
children.
in
with
wise
be
Consultation
has
duced
buying
of
stocks
which
forms
the
the
of
a
with
by
cash
amount
an
if the
other
or
value
or
gifts
not
child
year
per
per
year
mother joined
ex¬
per
in the
Leroy
Rodman
Fear of Minor's Accounts
American
people toaay.
It enables Member
$3,000
running afoul of the old problem
of handling minors' assets.
Freedom from gift tax is,
the
Section
Internal
Revenue
that
or
even
but
is
was
stock listed on the during depression years. Many a
The plan is based on stockbroker found that the minor
two successful principles of large- was
in
a
position to claim his
scale merchandising:
profits but at the same time to
in
any
1
(1) The initial purchase is sim¬
painless; and
ple and
(2)
Payments
systematic.
are
The
Exchange has high hopes
that by thus broadening the base
of
the
securities
make Wall
ily
market
available
the
to
while at
bringing greater
vestor,
curities
five
will
of
19,000
smaller
the
After
the
were
first
books with payments
approaching
rather mod¬
est
a
beginning if it is compared to
the
total
traded
dollar
the
on
Exchange
of
shares
York
Stock
volume
New
from
Feb.
1
than
more
Military Personnel
over,
his eye
credit
of
securities
the
broker
should
to the minor status
the
the
point
the
sale
the
of
minor
and
the
upon
the
father
unhappy
an
sell
to
has
it
once
name
the
rely
father,
position—how
the
invest¬
been
taken
minor.
At
must
with
in
this
authorize
it
the
comes
inevitable
unwillingness
of
broker
participate
such
to
in
the
a
transaction..
Faced
a
this
problem,
But
tax
client
if
lawyer,
minor
might
"future
transfer
to
be
trust
a
gift
a
for
of
interest"
that
gift to the trust for the child did
ment
not
it
for
has
some
not
yet
reason
caught
or
with
on
Why this should be the
altogether
is the
newness
false
fear
clear.
case
is
Perhaps
it
of the Plan and the
that
the
paper
work
involved might make the program
unprofitable. Actually the odd-lot
houses
handle
the
back
office
work,
thus
Firms
to
allowing
Member
concentrate
without
the
expense
of
usual
sales
on
problem
and
future
of
interests
exclusion.
per person
qualify
for the
per
If the
exclusion,
transfers
the
made
were
minor,
to
the
it
gift tax
a
trust
return
had to be made.
Once the father's
$30,000
gift
tion
lifetime
was
tax
consumed,
gift
taxes
would then become due.
Since clients
were
minors
lawyers
generally
un¬
were
in
developed by
attempt to escape
an
the future interest rule.
What the
that
Perhaps it
in
most
instances
where
such
brokerage
firms, accustomed to dealing with trusts were created, the Commis¬
of
Internal
persons of substantial means, have sioner
Revenue, on
not yet learned how to reach the audit, claimed gilt taxes.
Where
is
the
fact
broader
that
market;
perhaps bro¬
kers have concluded that the
of substantial means,
cated to the wisdom
man
already edu¬
of
a
securi¬
ties investment program,
would
have little interest in the
Monthly
Investment Plan.
New
Revenue
Code
Supplies
Ammunition
Whatever
the
however, the
enue
Code
dium
for
be,
Rev¬
supplied the
alert stockbroker with
Lis
may
Internal
now
a
new
me¬
attracting the capital of
well-to-do
the
the
father
customer.
Most
li'igated
he
courts,
Commissioner
the
issue
passed.
usually found the
the
was
victor.
The
new
section
are
treated
future
as
gifts
of
not
to
be
inter¬
(1) the property contained
in the trust and the income
there¬
can
minor
not
so
be
before
birthday;
the
presum¬
bracket
tax
is
well.
Revenue
thus
new
an
Code
supplied
in¬
of
brokers
vehicle for promoting
the
Monthly
Investment
Plan,
namely, "A Trust for a Minor."
,
*The author
spent
he
(2)
upon
or
reaches
all
expended
child
by
such
would
for
his
the
21st
amounts
pass
to
reaching his 21st
and
must
flation
a
and
able
counteract
to
deflation, toward either
a depression.
or
or
Monetary policy is more flex¬
ible than fiscal policy. II, has been
experimented with a longer time
and, therefore, has had a better
chance to acquire the means of
flexibility. It is also less affected
by politics and less subject to
and resistances from af¬
pressures
fected influential private pressure
The
groups.
effectiveness
started
in
recent
been
applied
cess,
together
years,
with
it has
as
eminent
with
currently, in
combat
eco¬
reverse manner,
a
we
rapidly
fiscal policy
policy
the
as
Municipal Bond Club of Chi¬
breakfast 8:30 to 11 a.m. at
Welty's Restaurant.
1954
Statistical Association
Economic
Section)
convention.
Sept. 16,1954 (Cedar Rapids, Iowa)
Iowa Investment Bankers Asso¬
ciation
field
day at
Rapids Country, Club.
Sept. 17, 1954
the
Cedar
(Philadelphia, Pa.)
Bond Club of
Philadelphia 29th
annual field day at the Hunting¬
ton Valley Country Club, Abington, Pa.
a
recession
the
economy's
and
also
Korean
to
ability
Sept. 20, 1954
Built-in
New
Our
Federal
restore
for
con¬
system
today contains considerable builtin
flexibility
enues
which
much
more
Security Traders Asso¬
ciation Annual
further
Convention at ths
were
Ex¬
penditures are also much more
sensitive, as they contain today
the important item of social secu¬
rity and public assistance outlays
which
with
move
cycle,
but
do
so
the
the
in
business
exactly
direction from that of
reverse
a
rev¬
expanding
and
during depres¬
contracting during pe¬
As
a
result,
on
upswing of the cycle revenues
automatically
but
the
expand,
foregoing
as
moderate
contract
expenditures
automatically
produce
the
swing, while
reverse
tending to
which
surpluses
cash
force
on
the
i
23-25,
1954
(Minneapolis
Minn.)
Board of Governors of Associa¬
the
of
the down
situation
tion
of
meeting.
Stock
Exchange
Firm*
session
of
the
statement
Ohio
to strengthen
existing built-in
the
Federal
our
as
budg¬
well as
flexibility
therein.
I
have
no
doubt that full advantage
will
be
taken
of
these
opportu¬
nities in the years
to come, just as
they have been taken in the past
in
perfecting the flexibility of
our
monetary controls.
In
addition
needs
state
our
fiscal
local
and
policies,
co-related
flexibility
greater
also
introduced
be
to
in
governmental
these must be
closely with the
as
more
fiscal
Other¬
programs.
wise,
the, objectives of economic
stabilization through the applica¬
tion of rational fiscal policies may
be
readily defeated.
But the development
of greater
flexibility in our fiscal policies,
even
if accompanied with a like
perfection
of
other
our
govern¬
mental economic controls,
suffice
to
sential
to
growth
conditions es¬
healthy
produce
continued
the
of
There
about a
economy.
our
also
must
will not
be
brought
sharp substantial reduction in the
size of our Federal expenditures
burdens
tax
the
and
balance
There
tion.
as
orderly
is
condi¬
normal
a
doubt
no
that
but
the heavy
equipment
up¬
types
new
of
logical
in
productivity and in the
generally. Nor
standards of living
there be any doubt that these
tax burdens also interfere
ability of our consumers
heavy
with the
to
the expanding outputs of
enterprises.
Fortunately,
buy
our
is
there
both
full
our
and the
i
awareness
governmental
among
leaders
general public of the im¬
perativeness of this type of action.
The
revision
of
law and the
enue
ures,
steps
our
Federal
budgetary
rev¬
meas¬
just enacted, are important
in this direction and there
assurance that other
is* adequate
along
measures
follow
year
develops,
by
Savings
in
and
thus retarding techno¬
advance and the rate of
products,
in
or
due
these
order
in
two.
lines
will
the
next
»
swing
Professor
Studenski presented before the inaugural
summary
Taxation.
for the application of a
managed
With Allen Inv. Co.
contracting
while the
expenditures in question expand,
*A
both
means
revenues
Sept.
the
on
ways
etary and fiscal system
can
the
Hotel Claridge.
they
basis.
current
a
are
flexibilities of
lected
just
(Atlantic City)
techni¬
and
Committee
Revenue
There
rise
on
Joint
Internal
before, being derived to a much
larger degree from personal and
corporate, income taxes and col¬
riods of prosper, ty.
Sept. 22-25, 1954
sensitive to
the business cycle than
(Philadelphia, Pa.)
Philadelphia first dinner meeting
in the Regency Room of the Bar¬
clay Hotel.
susbtantial
Federal tax burdens in¬
it did not hibit private enterprise from mak¬
ago.
Rev¬ ing new investments in plant and
20 to 25 years
are
Women's
of
as
restoration of the Federal budget¬
Flexibility
budgetary
sion
Club
well
as
I have ref¬
Report and the Con¬
gressional
Joint
Committee
on
ary
enues,
National
the
taxing policy again
moment, reducing taxes
means
to mitigate the cur¬
possess
&
of
our
rent
sional
and
(Montreal, Can¬
his advisor
Economic
overnight
(Chicago, 111.)
ada)
American
almost
outbreak
eco¬
tinued normal growth.
Municipal Bond Club of Chi¬
cago annual outing at Knollwood
Country Club, Lake Forest, 111.
Sept. 10-13, 1954
the
and
reversed
this very
cago
Sept. 10,
We
War, increasing tax rates sharply
as a protection
against the greater
evils
of
inflation; and 'we are
(Chicago, Xll.)
much
to such instrumentalities
Federal
learning
are
stabilization.
tax
to
recession.
a
But
our
Field
economic
reached
the Council of Economic Advisors
suc¬
other
measures, during the Ko¬
War to combat inflation and
changing
Sept. 9, 1954
of
monetary policy as one of the imimportant mobilizing forces in the
economy has been amply demon-
with
Investment
altered
be
can
any
boom
nomic
In
aid, decisions alter¬
of fiscal policy in
an
by Congress itself.
as
erence
economic
changed
to
how to apply also
flexibly, to the same ends of
EVENTS
of
cally well equipped staffs of the
pronounced
ten¬
dencies of the economy at any Treasury and of the Bureau of the,
given moment toward either in-, Budget as well as' the Congres¬
rean
COMING
the
course
President and
Studensfti
Paul
Or.
read¬
quickly
B. D.
Fidanque, Jr., partner of the
Exchange firm of
Rosenthal & Company, for supply¬
ing and checking portions of this
and
of
quickly than before by the
more
They must be
capable of
nomic
New York Stock
executive
departments
situation
positive.
siutations
today
instru¬
of
policy by delib¬
of the
their
face
the
flexible
acknowledges, with
thanks, the kind assistance of Mr.
Investment
provides
that gifts to minors
from
has
a
ex¬
Since the
there
as
de¬
in
It was against this
background
that Section 2503 (c) of the Inter¬
nal
Revenue Code of 1954 was
ests if
cause
new
has
was
most
or
1954
with
Internal
(Business
willing to face the gift tax prob¬
lem, many permutations of trusts
for
tThe
a
the $600
lower
a
the
as
the trust would
tax
come
exemp¬
lawyers found, however,
servicing.
would
qualify for the $3,000
meant that for each year in which
for
Stock Exchange Houses.
many
not
other
child
secure
father,
saving
se¬
in
so-
a
and
long time. Although the prin¬
ciples behind the Monthly Invest¬
sound,
the
the
a
gifts
to be basically
from
time he is still
emption for such child.
in
taxable
own
contained
same
claim
of
fail
appear
his
income
now
pendent and
for
have been selling on this basis to
Plan
the
to
lawyer was
he also told
the
assets
or
trust
a
the
that
called
year
sup¬
the
■other people of limited income for
a
able
usually turned to
The lawyer in turn
suggested
child.
to
more
child's
has
lawyer.
good
supply
the
article.
with
customer
begun to sell their
own
More¬
finds himself in
money
monthly payment plan to
military personnel. In fact, they
minor.
of the customer and
his
a
if
even
close
a
the
provided
to
of
from
At the
the
that open-end mutual funds have
on
trust.
be
the
Recent articles have pointed out
income
curities
than
of
name
probably
Sales to
eliminated
ably
the
upon
using the income from it
father
in
his
$8,750,000,000.
whose
be
the child's support, the
memories carry back to the 1930's
will countenance any transactions
through
June 30 which amounted to
place.
brokers
policies
Thus, by creating the trust
not
or
ment
the
took
losses
few
continues
one-half
child
more
on
when
result,
a
se¬
$4 million.
This is
As
soon
to
operation
plans
in¬
time
same
stability
markets.
months
than
it
Street's product read¬
rescind
a
have,
may
than
as
terly
19
may
With
ing the
monetary
19
number
a
government.
fective,^ fiscal
and
action
legislative
ef¬
be
raoid
for
Exchange.
as
To
of
student,
dependent
erate
a
society.
over
age
is
full-time
a
free
which
not
of flexible fiscal
economic
of
deficits
previously avail¬
able, for the effective application
and
justments
fear
unhappy experiences
new
provides
mentalities
continued
growth
cash
Thus, this
flexibility works auto¬
matically as a staoilizing torce in
both phases of the cycle.
!
contains also
sta-
b i 1 i t y
producing
cushion the depression.
built-in
Our Federal fiscal system
greater
economic
gardless of the income which the
of
of
who
of
child
customers
born
the
under
still be taken
port.
This
Code
child
a
the
of
151
the promotion
program
his father's income tax return, re¬
and
accounts.
child
a
the
to
outlined.
fear
minor's
law
tax
new
has
by having them invest
little as $40 monthly or quar¬
how¬
not the only lift given by
ever,
ing methods to their dealings with
stockbroker's
be arranged in a Month¬
can
circumstances demand without
as
Firms to apply mass merchandis¬
the
each
to
Through the
trust, investments can be changed
big stumbling block to the
purchase of securities for minors
been
flexibility and reduction of
expenditures.
v
$3,000
fact,
father
The
the father
to the trust
ly Investment Plan.
rates.
adviser
tax
a
his
upon
tax
program.
of
part
program
probably
child
buying
large
a
might other¬
estate
ceeding $3,000 per
—or
even
$6,000
recog¬
habits
high
at
sequences
of
con¬
with
nized
buy
brought the advice
that such siphoning could be ac¬
complished without gift tax con¬
new
a
method
a
therein
taxed
Stock
intro¬
Such
which
assets
death,
change
point
to
good estate planning
the New York
Ex¬
like
siphons off from the father's
estate
1954
the
to
come
would
mar¬
shares from time to time for
for it
On
they
the stock
in
the de¬
of the
Fiscal and
separate trusts
for each minor
monetary policies vi¬
child the father may have.
This tally affect all segments of our
$3,000 will fall within the $3,000 national economy. They are im¬
gift tax exclusion so that no gift portant tools in the hands of gov¬
tax return will be necessary. The
ernment
for
—in
minor.
a
Each year,
contribute $3,000
can
Professor Studenski declares fiscal and
monetary policies must
be flexible and positive; and
ready to counteract promptly in¬
flation or deflation. Urges
greater
client
his
supply
to
permits
now
trust which meets
a
sired result.
vehicle for promoting sales under
Exchange's Monthly Investment Plan, in the form
of
lawyer
with
Mr. Rodman shows how the Internal Revenue Code of 1954
section
new
Thursday, September 2, 1954
.
.
Monetary and Fiscal Policy
minor might
the
as
.
and
(Special
to
The
has
joined
Chronicle)
the staff of Allen In-
Lo^n
Academy, Granville, Ohio, Aug. 14, 1954.
Financial
BOULDER, Colo.—John W. Kane
xroclmont
PA
TTniirtppnth
1Q^1
\
St.
.Volume 180
Number 5356
.
.The Commercial and Financial Chronicle
.
(875)
A Plea for
Monetary Restoration
By ERNEST
Economist,
R. GUTMANN
Russell
Saxe
&
of
Investment Securities, New York City
/
the
debt;
Dr. Gutmann discusses the domestic and international
mone¬
increasing the official price of
Asserts it would be far belter
to
put the price of gold
voluntarily than
up
to undergo the tensions of self-liquidating
Concludes adjustment of the monetary unit is only
excesses.
secured
by
reduction of the rate of
or
both.
the
When
Federal
law of
the
It
government.
contemplated
that
requirements
would
managing
be
stabilize, without starting a serious depression. Urges
re-defining the monetary unit in keeping with the price struc¬
ture before we go back
simultaneously with other nations to
way to
placed
ernment
become
factors for
debt;
ceiling should
from
the
the
indisputable fact that
monetary unit has lost half
our
its
purchasing power is the condition
which, sooner or later, will have
be
to
ameli-
orated.
We
standing
exactly at the
are
halfway mark
three
and
of
courses
tion
are
open,
we
wish
close
this
once
to
ac¬
pact, of
because
adjustment per
self-
which
E.
Dr.
R.
as
a
strictly, pal¬
Gutmann
liative
device
cannot
be
recommended.
(2)
and
return
to
a
artificialities
natural
more
the nation's
state of
economy—as
started the spiral with 75-cent
wheat and 75-cent wages—conse¬
we
would be violently defla¬
quences
tionary,
and,
in
which
are
currency,
1954.
Bank
form
artificial
of
confidence
the last 25 years, can be discounted
in this discussion, because it con¬
if
in
its
a
Gold,
currency, i
value
is
extraneous,
provided the standard by which
people could judge the extent of
distortions
that
developed
be¬
tween quality and quantity of the
monetary unit.
What
We
Gold?
governed by
are
domesti¬
a
such
would
stitutes
multiplied
first
a
increased in
the last
in 1945 to
would
farm mortgage
the
mean
standard
paper
not identical.
would
to
In 1949
gold, bullion
our
$60
In
therefore,
unrealis¬ •1954 it is $21.9 billion. On balance
we lost $2%
billion in gold.i For¬
present half- eign credit balances on Jan. 31,
has
and
purposes
Giving
by
at $35
over-extension
is
a
will
up
have
the
against,
this
expenditures
—
;r scale,
require
on
proven
'
par
(1934)
are
off
The
foreign
In the
exchange,
gold bullion market we arp
only on the Standard — we
on
because
and
than
on—we are
we
(3)
Adjust
of
the
former
our
monetary
unit to the 1954 purchasing power.
This course would recognize the
1954 amounted to about $11.9
lion.
These
will
balances
borrower
in
are
not
inflation.
The
symptoms
are
visible,' the weight of
grows
that depreciation
is
rency
opinion
of cur¬
road to lasting pros¬
1954j 4934 dol¬
in
or
of
can
be
long
as
isted
our
and
export surplus ex¬
as our
(excluding military aid) and
best cash crops,
corn
in
were
wheat, cotton
strong demand
abroad, dollar balances were used
the payment; but the mone¬
for
tary climate has changed.
monetary unit.
The
Underlying Facts
The world's gold
and dollar re¬
gold has never lost a serves
(excluding Russia) which
price has often been
stood in 1937 at $25 billion gold
raised, never lowered, and in 2,and
$2.1 billion in foreign ex600 years of the practice of de¬
Coniinued on page 20
grading
money,
every
country
eases
many
Axiomatic Laws
The law of supply
and demand
temporarily circumvented.
Its
bil¬
no
perity.
Economic
science
two measuring rods
knows
only
ir) free enter¬
of
given
a
currency:
pur¬
chasing power, and gold.
Both
inter-dependent and are com¬
are
ponents of
equation.
one
For
ex¬
ample, $1 (1934 purchasing power)
is
equal to 1/35 of an ounce of
gold.
Purchasing
power
repre¬
the medium of exchange
value of merchandise
and services; and gold represent¬
ing the value of the reserve pur¬
chasing power used by definition
senting
—money
On
in
balance.
According to official
(Index of The Depart¬
Labor)
the purchasing
statistics
of
ment
the
of
power
47%
since
of the
power
dollar has shrunk
The purchasing
1954 dollar is con¬
1939.
reads
an
ounce
of
gold, which allocates the price
of $18.55
(1954) to an ounce of
gold.
the
Thus, the
paper
overvaluation
dollar leads to
an
of
Gold
Reserve
Act
of
solicitation of
or a
'
'
,
'■
t
an
'
offer to buy these securities.
' '
%
«■'
■
'•
•
'
t
/
,
.
Southern Bell
not
are
Telephone and Telegraph Company
extreme
would
case
Thirty-Five Year 3H% Debentures
•.
Dated
can
stocks, bonds, and real estate
are
not
It appears
September 1, 1989
On the other
hand, foreign holdings in Ameri¬
taken
Due
September 1, 1954
Price 102.368% and accrued interest
consideration.
into
that there is
surp'us
no
in
gold—we are just covered. The
U. S. is rearing the end of its free
and usable gold reserves.
There¬
fore, the gold is much better off
Fort'Knox, otherwise the
in
situation
would
be
created
the
where
$500 million
only
come
as
Prospectus may be obtained in any State in which this announcement is circulated from only such
of the undersigned and other dealers as may lawfully offer these securities in such State.
in
government
the citizens
and
$5 billion in hoarded gold.
turn to the
The
same
A
HALSEY, STUART & CO. INC.
re¬
gold coin standard can
after the adjustment,
A. C. ALLYN
AND
BLAIR
BEAR, STEARNS & CO.
COMPANY
&
CO.
INCORPORATED
INCORPORATED
not before.
DICK
The
&,
HALLGARTEN &, CO.
MERLE-SMITH
operate
an
SALOMON
breeder.
atomic
end, the Treasury end, we
feed in $1 billion in gold. In the
one
middle
of
the
pile.
station,
to
The
this
$4 billion
LADENBURG, THALMANN &. CO.
System
L. F. ROTHSCHILD &. CO.
We
At
Multiplier
Federal
has
(25%
aug¬
cover¬
COFFIN
&
&
CO.
SHIELDS & COMPANY
HAYDEN, STONE & CO.
BURR
BROS. &. HUTZLER
WERTHEIM
SCHOELLKOPF, HUTTON & POMEROY, INC.
INCORPORATED
BAXTER, WILLIAMS & CO.
AMERICAN SECURITIES CORPORATION
age). At the other end of the plant,
the commercial
banking end, the
product is increased
$24 billion
to
(6 times).
a
CENTRAL
(INCORPORATED)
total of
Now,
find ourselves saddled with
as we
a
NEW
GREGORY
REPUBLIC COMPANY
YORK
& SON
INCORPORATED
,
HANSEATIC
REYNOLDS & CO.
CORPORATION
500
un¬
dollar, it appears that this multi¬
plier system is far too expansive.
AUCHINCLOSS, PARKER AND REDPATH
1934
The ratio of transmission 1:4:24 is
COOLEY
dervaluation of gold.
The
'
offer to sell
offering is made only by the Prospectus.
'
$11.8 billion, which
capital in America.
mented
equation
•" >:-
L
$55,000,000
Now, ^about $3 billion will
alv/ays be used as foreign working
Reserve
530 is equal to 1/35 of
'
'
7
lion.
of
unchanged, the
today as follows:
'
'
gold deficit of $1.8 bil¬
a
sequently 53^. As the 1934 defini¬
tion $1 equals 1/35 of an ounce
gold remained
to
most
us
France
to
';■"
'
'
'
own
we
31, 1954, the U. S.
required gold reserves
the
give
has
scale, both sides of the equation
have to be in equilibrium in order
which
Jan.
ments
a
The
'V"
subject to any agreement.
for
regulating the balance of pay¬
not covered by merchan¬
dise exchange. Like two sides of
gold
clear, and which
amounted
prise society for the comparative
value
billion
$10
legally
The Nature of the Problem
This announcement is not an
withdrawn,*but they
potential threat. As
free and
&,
COMPANY
BAKER, WEEKS & CO.
BACHE & CO.
R. S. DICKSON & COMPANY
FRANCIS I. duPONT & CO.
INCORPORATED
1000 (1934) to be equal
purposed
too
steeip at the far end.
As the
to 1/35 of an ounce of
result
bestows
economic atom in half. This mech¬
to
an
to
gold, which
of $66.15 (1954)
price
ounce
would
of
gold.
adjust the
the
level.
a
1954
This
price
1934 gold price
purchasing
It would not
mean
power
the im¬
anism
way
of
shows,
would
in
gold
we
have
work
in
split
the
our
same
for every billion
withdrawn, the money
reverse,
supply would contract
by $24 bil¬
are
expressed conversely, a
$66.15 (1954) can be
withdrawn from us at $35 (1954),
really a bargain, on which we
lars,
history,
never
suffered, would »constitute a
to the existing per
Treasury agreement under the
price and wage level, would still International Gold Bullion Act,
leave
our
financial
machinery foreign central banks are entitled
flexible enough, and would give to withdrawal in kind.
Using cau¬
us
a
new
basis for real growth,
tion, we can, therefore, count on
or
not
deliver by, agreement
definition
value
battle.
be completely
damage already
keep semblance
in¬
overvalued,
tic for political and social reasons.
brother
$18.55
difference
two
the Standard.
ternational
more
as
away
periods is a
shrinkage of 47% in that part of
our
monetary unit in which we
and cost,
outlay of so
to reduce the
billions
the
at
away
ounce.
between
scope,
idea ad absurdum.
of gold
ounce
with the idea of giving
an
the
many
an
(1954) instead of $35 (1934)
substance
our
Therefore, a new basis is es¬
sential. In 6,000 years of financial
total stock of
$24 xk billion.
was
work
the value of the
savings total $206 billion, but saver
have to ask ourselves "with what
gold?"
$5.6 billion
debt, from $18 bil¬
billion. Accumulated
present
we
far
sults—real growth, instead of de¬
preciation—it is more prudent to
adapt ourselves to these laws.
You can make bad money out of
good money — the opposite was
never achieved without change of
years
in 1954. In¬
billion
$22 billion in 1954. Non-
and
because
says,
more
The Double Standard
In
in 1945 to $28 billion
stalment credit, from
which would not be realistic at the
time,
seven
Consumer credit, from
lion
we
the
too
not
indicated
whole
all
on
$141 billion to $305 billion.
could
standard,
and simple.
Or,
completely on the
go
is
up
power,
completely off the standard, which
Bullion
.are
piled
national wealth.
chasing
from
Gold
mortgage
proverb
changes, the
short,; the economic laws are
Fading pur¬ all working slowly but thorough¬
which is working ly; they are axiomatic. It is pos¬
as a capital levy, took $150 billion
sible to bend these natural laws might be taken up sooner or later.
away from the value of life insur¬ temporarily
out
of
shape
and As long as our contract partners
ance, savings, and deposits.
adapt them to our purposes, but were in a financially weak posi¬
Now the private debt.
It has in the absence of permanent re¬ tion the danger was negligible;
our
inconvertible International
Standard, which
means
we
are
part on, and part
off, the standard.
We could go
cally
in
ten
by
of
stimulus
background
which
has
The
monetary unit they were
in; we transgressed the
to
power
billion in 1954. The
Federal, state, and municipal debt,
it
same
the store of value for long
centuries.
It is an often embar¬
top of three booms, two wars and
natural postwar demand.
No
from $65 billion
up
are
same
deposits,
another
but
we
limit
that
fact
a
in 1939 to $195
even
is neutral.
se
pure
the
Abrogate
times
1.89
billion
It is
neither
inflationary, nor defla¬
tionary, but it is indispensable to
end:
(1) Add i-
immolation
inflation
the
is already an established fact. The
open
tional
inflationary force,
new
a
That
this
■
As
limit to astro¬
a
dimensions
created
Currency in circulation is up
$6V2 billion in 1935 to $30
from
The
Standard.
to be
credit makes it impossible to
refinance $700 billion of debt in
The Status Quo
French
money
of
purchasable.
the
diminishing returns points rassing barometer.
nomic
one
problem.
Gold
to
"The !
it is
thing."
Gold has no
mystical properties, it is simply
the best all-round yardstick for
boon, has already
a
serious
a
out that there is
reserve
the amount of gov¬
on
bonds
>
the gold standard.
money. A
not
was
of
use
become
pa¬
back
the
The weight of the debt,
for
of the most important
-
sustain it.
far from being
was
arbitrary
an
had inevitably to go
the
activity is more and more
dependent on increasing debt to
Re¬
to
per currency
more
ness
passed in 1913, that
institution was designed as agent
Act
serve
gold to offset loss of purchasing power cf the dollar. Says
either the price of gold must
go up or the level of prices go
down.
ledger—debt
that resorted
show
in distortions, either in short¬
ages, or in surpluses.
Gresham's
Law, that bad money drives out
good money is at work. Our busi¬
up
the Federal Reserve requirements,
or
tary situation and advocates
but the inherent corrective
power
is lost, and the consequences
lion, which means strong defla¬
tionary repercussions—unless the
withdrawals are replaced by new
inflationary measures—additional
assets created from the wrong side
7
E. F. HUTTON
& COMPANY
SHEARSON, HAMMILL &. CO.
September 1,1954
WM. E. POLLOCK & CO., INC.
STERN
RITER &. CO.
BROTHERS & CO
The Commercial and Financial Chronicle
Revenue Bonds and
'
City of Seadrift, Texas General Obliga-?
tion Bonds.
J.
P.
;
Morgan
&
Co., Inc.—Circular—Laird, Bissell
120 Broadway, New York 5, N. Y.
Riverside
Cement
Analysis
Square, Boston 9, Mass.
C.
F.
25
Russell
Broad
—
—
Company—Analysis—B. W. Pizzini & Co., Inc.,
Foreffin Investments Through
Co.
Incorporated, 44
Street, New York City, has
announced the
opening of
and
stock
insurance
manager.
Joshua.
Davis,
and Em¬
man,
Century Fox and Marine Midland Corp.
Bryant,
mons
the Japanese Stock Market—In
A.
Chair¬
current issue of
President
Japan.
Blair, said the
new
depart¬
" ;r,\-
Industrial
Opportunity
setting
forth
in
Canada
information
in
—
"
ment
Comprehensive 32 book
three
parts:
economic
NSTA
panies, Company Acts and the like; taxation of income—
Department FC, Head Office, Imperial Bank of Canada,
Toronto, Ont., Canada.
It
is most
informed
Jones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to
in
and
market
performance
Quotation
4, N. Y.
York
Philadelphia
Bureau,
over
Inc.,
a
46
CHRONICLE
13-year period —
Front Street, New
and
ers
Utility Common Stocks—Comparative tabulation—G. A.
Inc., 70 Pine Street, New York 5, N. Y.
Stores
J Pont
&
Co.,
issue
same
Corp.—Analysis
of
"Gleanings"—Francis
I.
a
medium for reaching those
other
Chairmen.
proaching the Convention and
1 Wall Street, New York 5, N. Y. Also in the
a
brief analysis of Western Pacific Railroad
last year's
our
our
sample Portfolios.
HAROLD
Limited—Analysis—Dominion
Additional
Steel-Youngstown Sheet & Tube—Memorandum—
Co., 25 Broad Street, New York 4, N. Y. Also avail¬
able
memorandum
Canadian
Lines
Delhi
Ltd.
Analysis
Limited
and
Trans
Chattanooga
Gas
Corn
Company—Analysis—Ira Haupt & Co.,
Exchange
Corporation—Analysis—Glore, Forgan
Ill
Street, New York 5, N. Y.
Cor¬
& Co., 40 Wall
•
Clay Minerals & Chemicals Corporation of America—Bulletin—
Troster, Singer & Co., 74 Trinity Place, New York 6, N. Y.
Cleveland
Cliffs
Iron
Company—Analysis—H. Hentz
Co.,
Beaver Street, New York 4, N. Y. iAIso
available is
analysis of Olin Oil & Gas Corporation.
Credit
Co.—Analysis—Stanley Heller
&
Pine Street, New York 5, N. Y.
Continental Motors Corporation
—
Co.,
an
30
Bulletin
Corporation—Analysis—Cruttenden
La Salle
Flying
—
&
Co.,
209
Trading
Racing Association
—
of Trade
Report—Capper & Co.
& Co.
and
5,
Texas.
Seadrift, Texas Waterworks and
Also
available
are
New York
Meyer
&
Chicago
Fox
Los Angeles
headed by Mr.
spent practically,
securities
business
also
conducts
corporate
a
bond
trading de¬
partment and is the primary mar¬
ket
for
bank
several
trial stocks.
indus¬
and
Mr. Davis has super¬
all
over
trading activities,
Geyer
&
business
President
was
which
Co.
of Aug
as
of
discontinued
31.
Mr. Geyer
the
following statement:
Geyer & Co. announced on
Aug. 5 that it had suspended trad¬
ing activities, it had open pur¬
"When
chase
sales
and
contracts
standing in the amount of
out¬
approx¬
imately $5,000,000, represented by
1,423 open contracts with some 300
and
dealers
institutions.
The
New York
Beil &
St. Petersburg
suspension
Chicago
cided upon to facilitate the settle¬
Hough
Krensky & Co.
I
Philadelphia
F. Hutton & Company
Leedy, Wheeler & Alleman, Inc.
Kansas City
Orlando.
Hendricks & Eastwood
R. W.
•
ca¬
Laird, Bissell & Meeds
E.
.
Pressprich & Co.
Equitable
Securities
Philadelphia
Boston
Philadelphia
Nashville
Philadelphia
Corporation
Woodcock, Hess & Co.
Boenning & Co.
Glore, Forgan & Co.
Philadelphia
Pittsburgh
Chicago
Chicago
Weeden & Co.
San Francisco
Simpson, Emery & Co.
Cruttenden & Co.
Sincere
associate members
or
&
Co.
Chicago
descriptive circulars
Sewer
interested, please contact
Chairman:
System
Sept.
of the fol¬
"Joe"
"Walt" Mewing
"Jack" Manson
"Mike" Growney
Roy Klein
Faroll
any
•
"Julie" Bean
"Artie" Burian
Board
Bonds—Descriptive
of
Cleveland
Bioren & Co.
There will be
City
New YorK
Philadelphia
Grottron, Russell & Co.
"Charlie" Kaiser
bulletin—Rauscher, Pierce & Co., Inc., Milam Building, San
on
Company
A. C. Wood Jr. & Co.
H. A. Riecke & Co.
lowing Captains
25
Building, Chicago 4, 111.
Antonio
New York
Philadelphia
Bowling will start Thursday, Sept. 9, 1954, 5:30 to 8 p.m., at
City Hall Bowling Center, 3rd floor.
All STANY members
Company—Analysis—Standard Investing
McAllen Texas Independent School District
City
Seattle
Frank,
de¬
be
has
municipal
issued
>
Cruttenden & Co.
Welch, Edward H.
the
Products—Memorandum—Kneeland
N. J.
Pacific Northwest Company
Arthur M.
Petty, Herbert
Remington, Clifford G.
♦Scattergood, Harold F.
♦Simpson, William G.
Stephens, Donald B.
Corporation, 40 Exchange Place, New York 5, N. Y.
Indiana Steel
Blair
and
bank
trading
specialist in such stocks/*
reer as a
Mr.
Doyle, O'Connor & Co.
McCullen, William J.
♦Monroe, Paul B.
Street, New York 4, N. Y.
Hycon Manufacturing
his
statement
new
the Blair statement said.
Lee Higginson Corporation
Stern,
Hough, William R.
♦Krensky, Arthur M.
Krug, Thomas B.
Latshaw, John
Leedy, Jr., Loomis C.
Company
Brewing Company-^-Bulletin—DeWitt Cpnklin
Organ¬
ization, 100 Broadway, New York 5, N. Y.
Park
all
vision
SECURITY TRADERS ASSOCIATION OF NEW YORK
,
Line—Bulletin—Sttamrowe
Committee
South
Goebel
Broad
who
of
stock
will
Geyer
a
our
business
these
of
ment
of
de¬
was
contracts.
the
At
of business Aug. 31, all lia¬
close
bilities
both
to
and
customers
trade
creditors had been paid in
full.
The
cooperation
received from
most
our
firm
our
customers was
gratifying and, helpful.'*
Stewart, O'Connor With
♦Mr. and Mrs.
Inc., 96 Wall Street, New York 5, N. Y.
Hazel
Dawson-Smith, S. Edward
♦Doyle, J. Robert
♦Fraser, James G.
Gibbs, Louis A.
W'eeden, Frank
Bregman, Cum-
Street, Chicago 4, 111.
Tiger
SMITH, Chairman
H. A. Riecke & Co.
Allen &
Thorsen, Lester J.
(
mings & Co., 100 Broadway, New York 5, N. Y.
Filtrol
Brochu, Peter W.
Campbell, Miss Marguerite
♦Cayne, Morton A.
,
♦Parker, John E.
&
60
Commercial
♦Beattie, Herbert E.
—
Bank—Analysis—First Boston
poration, 100 Broadway, New York 5, N. Y.
Chicago
Bateman, Homer J.
Pipe
Broadway, New York 6, N. Y.
Chemical
do try to improve
Convention, Atlantic City,
Firm
*•
♦Barker, John S.
Canada
Kippen & Company, Inc., 607 St.
James Street, West,
Montreal, Que., Canada.
—
Smith
Including 8/31/54
x
_
offices.
Blair
that
insurance
Geyer
Registration NSTA
Name
Newport Industries.
on
Petroleum
B.
New York 5, N. Y.
Securities
Middle
pleased to be able
are
partment
Advertising
c/o Pershing & Co.
120 Broadway,
>
Hirsch &
a
B.
"We
announce
and
National
Corporation, 40 Exchange Place, New York 5, N. Y.
is
to
so
five
Davis and Bryant in
ap¬
deadline,
its
of
states.
said:
Harold
are
number
"
Company—Special report written
by Paul S. Morton—Peter P. McDermott &
Co., 44 Wall
Street, New York 5, N. Y.
Bethlehem
them,
advertising results.
American Mercury Insurance
Asbestos Corporation
We
and
branches, bringing to 26 the
Blair is licensed to do business in
27
still hearing from Homer Batement
Pacific Northwest Company,
Seattle, and
our
Inc.
Co.
West
public relations service to stockhold¬
investors.
on
a complete invest¬
banking,
brokerage
and
trading organization.
Two weeks
ago, Blair acquired the Chicago
ment
total
am
notes
du
is
Co. and three
a
Geyer
investors with
&
the
use
Lewis Jacoby of
Thayer, Baker & Co., Phila¬
delphia, but sure would like to run some
♦
in
as
and
I
Saxton & Co.,
Allied
as
should
dealer members making a market in
our
*
corporations
interested in the distribution of securities and
Banks
*
that
George
investment firm of Ames, Emerich
me
that they regarded advertising
issue most valuable to them. I agreed,
our
naturally,
Stocks—Comparison of 11 largest Phil¬
adelphia banks—Stroud & Company, Incorporated, 123 South
Broad street, Philadelphia 9, Pa.
Public
Convention
our
pany,
requesting a contract for advertising
therein, which has now been completed. They
com¬
parison between the listed industrial stocks used in the Dow-
National
interesting to relate the value of
issue of the FINANCIAL CHRONICLE to industrial
corporations.
I received a call from W. L. Maxson & Com¬
to
and
dealers
"Monthly Stock Digest"
Co., Ltd., 1-1 Chome, Nihonbashi-Tori.
Chuo-ku, Tokyo, Japan and 61 Broadway, New York 6, N. Y.
f
o
issuers,
serve
—Nomura Securities
yield
Notes
as
expansion
Japan's Foreign Trade—Discussion in
up-to-date
being
the latest step
in
the
firm's
facilities
Investment Opportunities in Japan—Circular—Yamaichl Secu¬
rities Co., Ltd., Ill Broadway, New York 7, N. Y.
Over-the-Counter Index—Folder showing an
is
of
established
back¬
ground of Canada; business organization, formation of com¬
a bank
trading de¬
partment with
as
"Weekly Stock Bulletin"—The Nikko Secu¬
rities Co., Ltd., 4, 1-chome,
Marunouchi, Chiyoda-ku, Tokyo,
\
&
George Geyer
Mercantile Bank Building, Dallas 1, Texas.
Producing—Analysis—Bache & Co., 36 Wall Street,
New York 5, N. Y. Also available is a statistical tabulation
of Oil Shares and a bulletin on P. R. Maliory, Twentieth
1954—Analysis—Ross, Knowles & Co., Ltd., 25 Adelaide
Street, West, Toronto 1, Ont., Canada.
Blair
Wall
Texas Gulf
Canada
Blair & Co. Inc.
Lerner & Co., 10 Post Office
Southern Union Gas Co.—Memorandum—First Southwest Com¬
pany,
George Geyer Joins
& Meeds,
Street, New York 4, N. Y.
2,19^4
Thursday, September
...
Donadio
"Hoy" Meyer
Wilbur Krisam
"Hank" Serlen
George Leone
meeting of all Captains at the office of Joseph
Co., 42 Broadway, Room 1735 at 5 p.m. on Wednesday,
1, 1954.
Shelby Cullom Davis
Shelby Cullom Davis & Co., 110
Street, New York City,
William
members of the
capacity. A graduate of Wesleyan
University, Middletown, Conn., he
has
spent
his
entire
business
career
in various phases of the
a
&
SIDNEY
JACOBS, Sidney Jacobs & Co.
Chairman of the Bowling Committee.
surance
business.
he
nity,
and
underwriting
in
years
in¬
with
Indem¬
claims
activities.
For
he
an¬
was
an
alyst for Geyer & Co., Inc.
The firm has also disclosed that
William
D.
O'Connor,
director for the
▼
&
engaged
was
six
Starting
Accident
the Hartford
the past
DEPENDABLE MARKETS
New York Stock
Exchange and specialists in insur¬
ance stocks since 1927, announced
that George T. Stewart has joined
the firm in an analytical and sales
publicity
Security Traders
Association of New York, has been
named head of the trading depart¬
ment.
Mr.
O'Connor
has
traded
insurance stocks for many years— -
five
years
with
Eastland
& Co.,
Hariford, Conn., and 16 years with
Fitzgerald
&
Co.,
as
manager
of
the bank and insurance stocks de¬
DEMPSEY-TEGELER & CO,
partment.
He
was
most recently
associated with Geyer & Co.
Volume 180
Number 5356
The Commercial and Financial Chronicle
;;.
(877)
statements which
Role of Investment Banker
In
zines,
Underwriting Securities
Prominent New York investment banker explains operations
how
placements, since little
formation is published
of
the
I think
"investigation"
term
well
that
such
or
the
to
as
as a
status
much
of
the
whole in which the
operates.
available,
get it, on almost any
us
turn to
equity securities,
must
we
member that debt has to be
preliminary
and
us
ask
a
company
help in
our
.
for
money
paid
or
Df the industry involved
mnnnrHnn
dJht
of
in
in
selling
the
sub-
out
of
income
after
-
provide
not
of
only^ for the
should be .designed
so
that
company will not exhaust
crown
or use up
in'
jewels,
its
all its
the current
op-
eration.
As
a good example of the need
conserving borrowing power
for
f°r ? rably d?y- I.would like to
P°l] n?"!
American Telephone
and
m
another, so
Telegraph Company and its
i3£K»
pretty
be
borrowing power,
company,
in
underoriced
will
financing
the
_
industry involved, proportion of debt
because
company's current needs but also
for its further needs into the foreseeable future
Thus
to keep its debt at a
reasonably; low figure.
What
might be a light proportion of
^rmlnfrv^Sabon^'the
,
repaid
course,
therefore,
,.
expansion,
thirdly
Any plan of financing should
particularly burdensome
in periods of poor business.
We
the
a
taxes.
re-
be
counsel
as
higher in the future
principal of a loan must
However
considered the total financial costs plans
may
is
and
stantially
be
very
much less than the dividend costs
would
c9IHPany» of
However
market
pres-
off and that when the charge for
serial maturities, sinking fund or
,
in-
debt, particularly under
corporate tax rates, are
conscientiously
When the officials of
no
ent
you
investigation.
raising
on
and
stock
own
company with those of the
other amortization of debt is also
Now let
to
our
interest
many managements feel that their
others.'Although interest charges
good
Preliminary investigation
Investigation
Preliminary
come
of
recognize
low,
/very
industries, and compare
proposed capitalization plans
the
on
if
(which
deduction before taxes) make the
interest cost of debt borrowings
capital
It is amazing
information is
industry.
to many
as
transactions
to
set about to
"buying of securities"
everything connected with bringing a security issue to the
market, except syndication and selling.
the
and other
try
company
cludes among operations involved in
investment banking
^In tigate
about the
industry
buying of securities by underwriting houses. Points out new trends in financing over past
15 years and lists as steps in
buying: (1) going after the busi¬
ness; (2) preliminary investigation; (3) selecting the financ¬
ing plan; (4) determining stock and bond provisions that are
fair for both issuer and purchaser;
(5) preparing the legal
documents, and, lastly, fixing the price of the securities. In¬
various proposed issues of
capital
W^e would also inves-
addition to the available statistics
sources
involved in investigating and
about investigation and buying in
or
maga— ^securities.
manuals.
particular company we
keep ourselves informed through U. S. government
reports, Federal Reserve Bank bulletins, trade journals and other
By DUDLEY N. SCHOALES*
I have been asked to talk to you
financial
or.
published
are
newspapers,
structures of
high grade companies in the same
also
Partner, Morgan Stanley & Co., New York City
-
in
digested
subsidiaries which
refer to
s
for itc
onrdtheUoih!r oTl\rc^porft^bld1ssueThave
hand
in
denotes,
I
banking
Iqtipa
^™n/„vP
1
,
'
t-
*■'
j
w
than
tnan wnat
might
to
mean
Lmon
o
InT^ vest
mint hank?n£
SS
it^!1nLo?Jnt ^
anH
"Getting the Business"
par-
enmp.
h?n'B Tore
With this introduction now let
whTt it
tt "S,turn to a discussion of invest!gation and buying.
Perhaps the
t
telTwnh'aZm"
uti'ity companies steel compatalk with anum- mes etc.-can afford to
an'
been sold privately.
investment
check
.TS
about one-third of its
ital in the form of debt and.
greater proportl°" °? debt
han can consumer goods indus-
IT
two-thirds in stock. With the end
of the
the S stem was faced
the character and tries, merchandising industries
abiiity 0f the management and and the like.
■
the general standing and reputaWe would also point out to the
tion
to
of havi
carina
as
the
of
in
comDanv
its
trade
that
oomnanv
wViptp
p
n
m
n
m
with
it
scriDea
over m tne tuture.
is
necessary
to
determine,
if
there
are
.barge compa-
ever,
that
times when it is
many
rfpmnnrt
for
a
n
item to consider should be Soc
company in its traae company that, where common
iirst ^ixem to consiaer snouid oe circles.
stock capital can be raised on;
Gettmg the Busmess.....
Some smaller companies may be historically reasonable terms,
As ^ou know> the freedom of dependent on one or two men, and common stock should be sold, as
first
corporate management to choose
frpmpnHnii<?
TxbanLe STrvTces aT faihUes whlfh instituted Raising
^
wnicn instituted raising a
.
Vast and unprecedented amount of
t
pansion
pt
f•
th
As
program
capital'of
the
it
the
turned
Svstem
wiitL
iwr^a(MW,
in
Dudley N. Schoales
TTiPnf.5
investmenTfirmVrover
Of
broad field
a
of
subjects includ-
ing:
m
certain
industries
in
TO
can
Compilation of statistics.
Investigation.
M
Deciding what types of
ties
secun-
to be issued.
are
Determination of
protective and
other provisions of the securities.
Working with lawyers, accountants and company
paring the
officials in
necessary
pre-
etc.
about
papers,
In short, "buying" means
everything connected with bringing a security issue to the market
except
Thus,
syndication
subject
my
selling.
and
covers
a
firm
At
management
should
form
Morgan
Stanley & Co. we
departmentalized, but I
not
than in selling and distribution.
I would like to point out one
or
two trends in
eral
over
First
tion>
'nee(j
tbe
highest
grade corporate bonds which were
sold during the 1920's carried interest rates of anywhere from 4%
to 6%.
With the beginning of
government deficit financing and
support of government bonds, and
consequently
encouragement
of
low interest rates, it became possible during the middle and late
1930's to effect substantial savings
through refunding the bonds sold
in
the
1920's
earlier
or
at
lower
interest rates.
Thus,
a
corporate
the period
interest
rates
from
1935
to
1944
for refunding and re-refund-
was
ing
large proportion of the
bond financing during
of continuously lower
purposes.
The
•
*
trend
maior
second
-inoc
1935
since
nlaeements
placements.
T
1
•
of
of
1935 the
seenrities
securities
very
minor
role in
financing picture.
hnwpvpr
become
£
that of
private
to
to
private
nlaveH
played
the
a
a
overall
Since 1935,
an
increasingly important
There
as
are
no
to the total
only does he
under
whom we
Jjai/e J*®"® ^Ul®J"1?SS11 ™
pas/'
J*
I
5®
by
Annual
American
Act
confidence,
so
to
buy
however,
that
companies
JjJ.f Jiave flnahced through us
ka^® keen pleased with what we
.
..
.keen able to do for them and
.
J^at based on this past record they
J?"* a{®° ^lsp J? d0 their future
Imancing tnrougn us.
As to companies for which we
have not previously done business
but which we hope to secure as
pur clients, we also study what
information—financial and otherwise
we can obtain, so that when
cal1 on their officials we will
have some knowledge of their finai]cia^I condition and some idea
wouid
be
willing to
securities
the
of
that
sponsor
company,
comnanies
to follow
certain
whose
number
affairs
we
of
frv
w«ose attairs we try
regularly. In such cases,
ties,
stock> or some combination of the
two
If it were decided to sell
W
or
savings
or
other
onnortunitio.! for finanr>
w,[
they
by mortgage bonds secured by a lien on all or part of
the company's properties, by collateral
Tl"".0;
keeping
bonds, by straight
obligations, or possibly
by convertible debentures; also
the length of the debt obligations
—i.e. whether they should have
a
maturity in 10, 20, 30
?
■
T'
a
reprints
it
«on
auditS
at
Graduate
of
what-
or
or
School
New
of
York
Business
University,
is
possible
.
and
summaries. This
possible, but where
we
use
,,„
.
,
company
listing
Company
.
to
retire
all
or
part of the
prior to maturity
rather
than
the
re-
financial
the
in
the
circum¬
prospectus
jdie buyer.
Inc.,
was
organized
on
June 28, 1954,
principal purpose of operating a trotting horse raci,ng
pari-mutuel betting privileges in the State of Ken¬
tucky. Before the Corporation can commence operations it will
be necessary to acquire property for its racing site and con¬
struct and acquire a racing plant and equipment.
track with
This
The
Offering represents
Corporation had outstanding
shares of Common Stock
new
financing
August 10, 1954, 310,000
on
(Par Value 10^ Per Share).
The registration statement covering
and
if
so
tion
were
not yet
that the proposed offering
of securities, if any, that will
available for distribution by this firm.
of this notice is
will be made
be
or as
Copies of the
to
no
assurance
the amount
proposed form of prospectus
may
be obtained from:
BERWYN T. MOORE & CO., INC.
debt
314 Marion E. Taylor
how
Building
Louisville, Kentucky
sinking fund,
monev
these securities is
effective. No offer to buy or sell the securities should be made
and no offer to purchase the securities will be accepted until
the registration statement has become effective. The publica¬
matuniy ana, 11 so, now
a
if the
u
to be raised
m.oney w., xo De raisyh
tbe form of straight preferred
,
stock, convertible preferred stock
GEARHART & OTIS, Inc. F.H. CRERIE and CO.,Inc.
74
19 Rector Street
Trinity Ph*ce
New York 6,
Newt York
New York, New York
common stock and, if convertithrough
pre-emptive rights issued to the
existing common stockholders.
In investigating these matters
with the company we would make
Study Of the company's capital■
%
ization and the relation of past
a
.
,
registration statements and
ports
and
contained
given to
for the
furcnabe I""a snouia oe proviaea
from
rather than
sources
is
be
PRICE: $1 PER SHARE
Audubon Park Raceway,
purchase fund should be provided
"
ourselves informed
® Var'°"S companies whic.h
offering
,
trust
debenture
,?I by the sa'e,°J stpckwou d
will talk to the discuss whether it should be in
aPPear, we
the
-
Act.
should be
for
New York City. Aug. 23,1954.
of
•
the regis¬
to
Securities
(Par Value 10^ Per Share)
debt obligations, the next decision
i
aDrearwe
subject
are
900,000 Shares of Common Stock
to be made must be whether
interest
needs
They
AUDUBON PARK
the
the money to be raised
ghoyi^ be through sale of debt
obligations or through sale of
canital expansion
matnri
yYnere. caPliai expansion, maturi- large
where
•••*'#'
these securities.
which must
the
their financing needs. Nat- ever number of years or whether
canl™t keep currently they should be in serial maturity
ir ^
?n
great host of form. We would also consider
Gnlted States corporations, but we whether or not a sinking fund or
3
sell
we
wbether
as y?
select
to
RACEWAY, INC.
therefore,
from original
by the Joint Committee on Educarepresenting The American Securities
offer
stances
Financing Plan
Assuming,
the
on
an
and
prospectus requirements
of the Federal
Information
about
the issuer,
the securities, and
the
Mr.
Forum
not
on page
which he sells.
Zl
°,to T
tryour
35 f?r/s ppssi- ble Preferred or common, whether
ble
gather
information or not the sale
at
Finance
is
tration
1933
? and next matter to be considered with
We do not ^.be company's officers is a plan
La y companies, nor do we of financing.
future fiWe
wpyi^ fjrst discuss with
g
any companies. We tbe 0fficers 0f the company
complete statistics
Schoales
This
that the inves-
continue
..
and
,
projected
..
earnings
.
to
.
the
re-
contrfbuted
IDENTIFYING STATEMENT
A' '
expenditures.
a £
Earnings
year
Continued
NEW ISSUE
a}a^e ®keet
„
Collets an^Univ^smes0 spoi" is not always
Administration
of
a
raise common stock money approximately $385 million so that
-first because it appears on the practically all this increase was
surface to be more expensive, derived from the sale of secun-
the liabilities
Securities
^or
rd8 as to their interim earn-
sored
Business
torg,
TTheT"publishe'd "re- securities
.
$g00 million
tained in the business
by his ability to maintain inves-
j
p°rts. a£d other Published data
f11T1 /nd
^T/ to. ke®p
y informed and maintain
to
^
but alg0 hig reputati0n and success in business are determined
•
the company and discuss
them their operations and
the
assume
should be
lecture
Fourth
great responsibility when he
agrees to sponsor the issuance of
a company's securities, for not
selec_
volume of private
______
♦A
own
0f tbeir particular situa-
»? J? 1
nrivate nlaeements have
factor in the business
difficult
tor therefore makes it more diffi- secondly because present tax rates
cult to appraise smaller companies.
An underwriter takes on a
*
4
believe
it is
is iair
fair
oeiieve it
state that before
tYlaremenf
placement
financing
4-
is
to
pretty quickly under bad management. This management fac-
^on
the
of
free
.
tbey feel will begt saj-isfy
ag
financing in gen-
many
be
th
of
*f the£
with bankers
the past 15 years.
—
sucb
..
financing
through private placement, competitive bidding or by negotiation
lot of
have been in the buying or analytical end of the business rather
A.
.
cboose
territory and I will have to paint
park of it with a very broad
are
it is often
Tn?al fetation" of" gcoS2Tr'y periodsVpoSr'manag^nt"''but
TOmpetitWe biddine
compulsory rsmaTcoTanv
broke should
Please
send
me
a
copy
Audubon Park Raceway,
Name.
Address.
Telephone-
of
the
proposed
Inc. Common Stock
form
of prospectus relating to
(Par Value 10* Per Share).
21
The Commercial and Financial Chronicle
10
he considers
by what
interests
Role of Insurance in Promoting
>r
By JOHN
America
executive
'.V'f
.
I
!•
of diverse
One
of
North
famous
our
said
statesmen
that
"Eternal vigilance is
liberty."
the price of
equally the price
is
It
American
of
solidarity
which
we
in-
American
seek
surers
promote.
to
"f
busi-.
Few
nesses
other
than
ours
have
greater
oppo):tunity
and
Demand
A.
auun
pay
ability to
this price;
and
few
have
more
to
gain
than
we
its
In
lar
conduct
must
of
study
payment,
the
regu-
activity.
Unless
know
Knowing
what
we
to
are
insure, nor estimate the losses we
will have to pay when they
occur,
advise
our
insureds
how
nor
these
risks
and
losses
be
may
xeduced.
From such
study and underhave come to know
a
standing we
beyond dispute
how much we
have to gain from
conducting our
business in
a
society of free
men
exercising .liberty under law, and
how much we and our
policyholders
have
system
to
to
were
lose
of
wide
liess
base
we
we
say
in
our
Without
insurance.
a
num-
balanced book of busi-
and
of
we
all
-
without
strive
such
underwriting
are
operations
vulnerable
as
catastrophes
as
to
those
are
to
broad
a
single
in-
we
sure-
Inhibitions
of
Government
"
of'
:
Hence it requires
to
show
the
serve and
lations
surance
urgent need to
promote
in
argument
the
our
pre-
mutual
Hemispheric
Conference, and to
i
least
this,
in
the
will
have
the purely tech¬
almost
that
*
tent
toward,
countries
.
speaker
the
ex¬
ration
of
this
address.
in: trade
journals
publications in
They
and
Moreover,
the
are
against which we
vigilant? That is the
we
progresses..
is
solution
not
;,
•
United
the
and other American
be looked
cannot
to
are
upon
be
f uiiy
skill
fullest
and
in
those
to
Second.
than
the
East
and
■
rise
Third.
..
Two Lines of Activity
Never
in
we
this
Moreover,
for
And
to
lations
™mdle
Each delegate must con-
exchange
the
of
in
information
latest
best
and
connection
with
the various technical fields of our
activities:
in
and
the
the
consideration
t ictions
of
funds
currency
free transfer
prevent
Underwriting strength
drafting
tion
of
losses.
agenda in this
and
amendments to the Export-Import
*«?Se measures-
Faced
with
these
phenomena
they
have
created,
and
bearing the complaints from local
insureds, the government planners
then
ance
place the State in the insur-
business.
However, without
the stimulus of
profit which spurs
the private
underwriter, they
•
•An
Is
head
address
of
the
by
U.
Mr.
S.
Diemand
delegation
Conference.
at
to
the
the
interference
will
Other
coun¬
profit
governing inter¬
regulations
insurance
you
the
as
in
which
of
whether
or
enumerate
can
speaker
either:
mission
such
reinsur¬
and
transactions.
Each of
on
laws
as
those
the
in¬
laws -of
prohibit
the
a
ad¬
foreign
insurers,
financially sound
skillfully staffed; or, permit
insurers to be admitted only
not
conditions
which
discriminate
against them and in favor of do¬
mestic
insurers;
or which hamper
flexibility of opera¬
rigid investment require¬
ments
or. foreign
funds control
relations to the North and South sage, a plea that you realize that,
not necessary for the protection
American
busi¬
of us than to the East and West, however much
of the insuring publk^These pos¬
the facts
speak for themselves.*' nessmen and officials realize the
itive
obstacles-, hamper --sound
However great may be the mone¬ need for promoting North-South
Inter-American Insurance opera¬
tary profit of trade with Europe relations, the distracting stresses
tions as effectively as any sup¬
and the Orient in times of peace, to the East and West are enor¬
of
the
preven-
ing. From the
spread of the
and from a knowledge of their learning the sad lesson that peace
high professional skill and broad is not the condition which exists
experience, it is easy to be sure between wars.
success
of the Conference
of the contributions to be made to
our
common
tions of
knowledge and
of the business
within
each
of
the
un¬
of
na-
Hemisphere.
our
the requisite
tions by
attention to
necessities
flames
of
life
home
at
obstacles
when
strongest
house
next door and are threatening to
pass beyond control.
raging
are
in
the
respective
our
own
the
methods
we
borders
have
found
and
to
solve them.
However, when
problems
we turn to the
insurance and rein-
foreign
interest
is,
in
fact,
causes
in¬
these
of
the
of
one
for any such dis¬
does, in fact, exist.-
as
J
Although
so-called,
V-E
are
and
nearly
V-J
a
Days,
decade
George W. Smith Joins
in
the past, the Cold War has never
ceased since then. The
physical
No such toll of human sacrifice
Link, Gormen, Peck
is
expected from those who en¬ strain on our resources and the
in
Inter-American
trade.- nervous strain on our planning
The countries of our Hemisphere have
scarcely lessened to this day.
have .avoided
the
use
of force Viewed
against
the
mushroom
on
any significant scale in their
cloud of the Hydrogen bomb, the
dealings
among
themselves for problems- presented in Berlin, in
more than a century; nor is there
Korea, and in Indo-China, since
(Special to The Financial Chronicle)
gage
CHICAGO,
Link,
of wartime con¬
sion; and that there is
way
developed enormous capacity-for
East and West than by
no
George
—
W.
Gorman,
Peck
&
South La Salle Street.
Co.,
208
Mr. Smith
formerly with Wm. H. Tegtmeyer & Co. and David A. Noyes
was
&
Co.
officer
pany
Prior
of
thereto
First
he
was-an
Securities
Com¬
of Chicago.
Jonathan
become
A.
Seaman
associated
has
with
Gorman, Peck & Co. He
also
Link,
was
viously with Bache & Co.
_
pre¬
.
„.
■
Paul Grannis With
"
ditions the North Americans have
111.
Smith has become associated with
gradually coming to see that these
relative
priorities require revi¬
whole.
Under the spur
of
The continuance
surers.
than the barest
more
disinterest
posed
mously great. It is difficult to pay
ence's
^
wnich
re¬
unwarranted
and
and
your
price
in
lost
lives
and
mangled bodies of our citizens
A review
of the spent during the two wars in ouri.
respect is hearten- lifetime is immeasurably greater.
wide geographical Furthermore, so far as Europe and
participants listed, the East are concerned, we ,are:
settlement
derstanding
because
from
revise their
stances
i
.?
a
of Inter-Ameri¬
all, and of all our govern¬
both in the technical and
country
®?f these relations. Variety
J f?
S?n? +v,a? disap™rw^ieX*
£
govern-'
nrivatf
r?
place of
/plans. Forms become
*L yr .1,x®< »
become limited to ^vestments
low-return
npflr
our
promoting
.
First.
tribute fully to the most complete
insurance
or
of
re-examine and
well
In this phase of the Conferactivities
we
face
no
any reasonable grounds for fear we feel them to involve the auesanticipated obstacles. As partici- that they should do otherwise in tion of actual survival, can under¬
pants in a business affected with the foreseeable future. Never, in standably be given a high relative
a public interest, long accustomed fact, has there been greater op¬ priority.
to interchange of technical data portunity for North, Central and
However as we have faced and
Americans
working
to¬ lived
without pride of authorship, we South
though each of the succes¬
0f each nation feel no hesitance gether to accomplish more for sive crises to the East and West
gov- in
the
outlining to each other the
good of each of their nations, since World War II ended, we are
securities, foreign writ- insurance problems faced within and for the Hemisphere as .a
ernments
us
ance
Congress, in ad¬
dition to considering these appeals
needed
free
national
which
would
patient understanding Bank ' legislation
However, the pattern of effort while we work our way through permit this institution to * stimu¬
established
in
past Conferences this dilemma of adequately re¬ late our international trade
gives us a sure guide for the pres- sisting our foes while we properly through extension of long-term
ent.
In general we must work cultivate and
support our friends. credits. This leads me to the sec¬
along two lines,
As to the greater net worth of ond phase of my threefold mes¬
more
in
that
you
aims
tries than my own can with
international
under
remind
the
politico-legal fields.
has
authority to revise tariff
has
would
governmental
rates downward.
the
I
individ¬
your
require the best combined efforts
of
policy, for extension of the
for
pa¬
as
insurance and reinsurance
can
Reciprocal Trade Agreements Act,
and
I
broader network
.
trade
keep
lessen,
not,
accomplish
Conference
fellow Ameri-
liberal
more
a
will
to
to
by many others. Your voices will
be heard if they are raised in the
halls of your governments.
•
materials
awareness
plea
not
affairs of his country, not shared
brought home to and ex¬
pressed by .our government. Presi¬
dent Eisenhower has expressed it
in his recent appeal to Congress
West.
you
ments,
likewise
have
our
are
ual
efforts
to
promote
Hemi¬
spheric solidarity.
Each of you,
by reason of prominence in our
industry, has an influence in the
been
,
,
c
'
strongly
participant in the seminars and
study sessions planned before we Armageddon which
adjourn,
i
East and West.
m
before
before have we
Never
more-
and
us
for
views
more
a
and
know
icans.
.
ever
services
these
widespread,
to the third and last phase
tience
•
and
and
contrary
interests."
as
country:
my
gained from reciprocal trading of
skills
frustration
e n
of
the
message
I feel can be
brought to fellow Americans from
one¬
a
in which we
merely export our goods and serv¬
ices. To quote at random from a
distracted
from these North-South ties, than
we
are
now
by the threats of
been
each
of
effort
More
.
Inasmuch
I come
countries
as
h
w
national
our
daily becoming
States
proposition,
way
be given. between
•
day
despair result in action
-
the hope
for peaceful, friendly and profit¬
able living in ties which run to
the North and South of us, than
ciearly stated, or even
sketched, by a single
speaker.
The
problem
is
one
wkich will require the
highest
can
'
concerned—is, in our opin¬
foolhardy and may hasten
that
aware
more
between
trade
realize how great is
we
-
which
one
to
message
„
First.
must seek to solve as
Conference
threefold
ion,
the
are
businessmen
our
daily
growing
make sound
to
particularly in so far as dollars
for imported goods and services
'
and
bit¬
to
logical plans without helping
them to implement such plans—
country.-
our
discon¬
lead
political
and
stressed
business
and
repeated
Economic
frustrations
and
of other countries
the
in
if
instability
and, sometimes, to the embrace of
of
the
glittering
promises
of
Communism. Helping the people
rate,-or
of research for the prepa¬
people.
and
terness
,*
.
economic' progress,
to satisfy the demands of
are
their
South
course
constantly
as
we
do, fellow insurers and fellow citi¬
Hemispheric zens of the United States, there is
a
In-
°/
°Ur
respec"
to
narrow
and
at
times
covered*- by
be
you:
ever
re-
fore-
insur¬
activities,
the general
back¬
ground of current national his¬
tories
upon
which these view¬
points are based.
' '
-
will be greatly measured in terms
no
our
others,
dangers
that the
Controls
Central
increased
three
nearly 24%.
phases of our business and
give careful thought to the. cur¬
rent political viewpoints of each
insurer cannot forms, the computation of rates,
which
write,
merely the
spread of risks in
fer
05u
have the
a
the prime essential
is
successful
such
disappear in the
JSt Yar?ty 1S
sp ce of life, as
proverb, it
if
all
must be
the
this
of
actly
nical
.
these
problem
we
that
America
supply-
the
but
most
we
are
all
do
Conference
from
depart
Insurance Conference to do about
we
risks
while
.
business
we
the
the
not
forms of domestic and commercial
cannot
immediate
they
Again, in this regard, it would
beyond my ability, and would
coverage that will quiet the de- require more time than you have number of similar communications
mands of the public. In place of graciously
allotted
to
me,
to recently crossing my desk from
full indemnity, limited schedules speak from more than my own
leading American business insti¬
of specific benefits are provided, experience and limited knowl¬ tutions, "recent explorations and
The vicious circle closes with edge of the thinking of my own
resources
surveys have
made it
the public reaction that inevitably countrymen. However, if each of
abundantly clear that Latin
follows. Unable to obtain protec- us will state thus his own views,
Arperica is potentially one of the
tion; from the inevitable risks we should be able to go far in world's great storehouses of the
which accompany new ventures, reaching
the lasting accord to basic raw materials of industry."
businessmen limit their activities which we are pledged.
to long tried and narrowly deReciprocal Trading of Skills and
Message to Latin-American
fined fields. Innovations diminish
Services
Insurers
*
"
and the standard of living lags
In short, we in the United States
behind
its
expectable rate
of
Speaking along these lines, it. have an increasingly keen aware¬
progress under free enterprise,
seems to me that on behalf of my
ness oi
now mucn tnere is to be
ing,
understand
our
and
by
with
themselves
reinsurance
this
of
we
to
a
content
urgent to oil foreign governments
the
in
Inter-American
and
ance
skills and services.
American
' Hence,
favorable
,
careful consideration
political viewpoints. Stresses reciprocal trading of
regarding insurance technicalities, and
a
Thursday, September 2, 1954
.
ipg in the United States has made
'
Businessmen„ in the United
second
phase of our activities, in con¬ States are generally well aware
sidering how we may best foster ofjthese facts. They were not un¬
Second.
Speaking at the Hemispheric Insurance Conference, prominent
points out few businesses have greater opportunity '
to promote political and economic solidarity than that of insur¬
ance, and few can gain more by it. Says there is urgent need
to preserve and promote better Hemispheric insurance relations >
and to forestall attempts by governments to narrow or confine ;
these relations. Advocates complete exchange of information
-
Americqmow exceeds that
United. States, and is increasing faster than any other
the
of
* country.
'
States Chamber of Commerce
of the United
Latin
be the
to
own
they lead to complementary ac¬
tivities, rather than conflicts.
Conference Committee
Chairman, Hemispheric Insurance
his
antagonism. Far more often', when
differences are analyzed we find
A. DIEMAND *
President, Insurance Company of North
of
*
Moreover, the interests of no two
countries are precisely identical arear in the
world. During the
in all details. Nevertheless, dif¬ period from 1940-1950 the popu¬
ference does not necessarily mean 1 lation of the world increased 8%,
U.S.-Latin American Solidarity
!.
-i.
(878)
better
of meeting the strains to the
increasing
Dempsey-Tegeler & Co.
the
production of goods, and the solidarity and strength from North
(Special to The Financial Chronicle)
of
services along
a .to South.
of
LOS ANGELES, Calif. — Paul
our
various
number .of lines yet to be equally
Again to quote from recent cor¬
unavoidable inhibitions are developed in the rest of the Hem¬
become
affiliated
respondence with a top executive .Grannis, has
found. Nationalism has not com- isphere.
We need customers, to of a leading U. S. company doing with Dempsey-Tegeler & Co., 210
pletely
disappeared
from
the keep this capacity from shrinking •extensive business in the West Seventh Street. Mr. Grannis
was formerly Beverly Hills repre¬
world,- nor is it likely to in our and the skills it requires from be- Americas:
- .
"We
are
convinced
that- the sentative for Selected Investments
•ing lost through misuse.
surance
of
crossing
the boundaries
nations, certain
,
supplying
„
-
*
.
t™e'
,_M
......
Hence, while we are fellow
Americans, and fellow insurers,
Med as such to full coopera-
eaC^
shaped to
us
a
f1RdS hlS thinking
greater
or
On the
tke
otker hand,, nowhere in
American way of
there a greater po¬
tential buyiiig public, and a more
rapidly
expanding
one
than
in
less extent Latin, America. The population of
be best
i a t e d
the world by helping peo¬
maintained
world isf
-
around
ple
to
-
and
improve
conditions.
The
I
-
life'
can
ap p r e c
their, economic
standard -of
liv-"
Company
thereto
&
of
Chicago
was an
and
prior
officer of Douglass
Company.
William
J.
been added to
Thornton
has
also
the firm's staff.
Volume 180
Number 5356
.
.
The Commercial and Financial Chronicle
.
(879)
the
of powers. Your President and his
to support the Cabinet on an important issue, the Government has
Cabinet
no
on
How the Canadian
principle of the separation
separate
and both
from
the
Government Functions
separate
By RIGHT HONORABLE C. D. HOWE*
will
my
remarks
the
quite
judiciary,
tions
Prominent Canadian Cabinet Member describes Canadian form
separated.
of government
essence
providing
as
one
of the strongest
speak
in
the
invitation to
an
United
States,
the
Liberal
speak
Arthur
about
Canada,
otherwise
This
the
thus
I
I
do
I
and I
de-
Somewhat to my
the election and
so.
won
entered
Port
made
the
House
Com-
of
supporter of the Liberal
a
is
Canada
the
are
Liberals
the
and
Conservatives. There are, in addi¬
tion, two small groups, the CCF
Party, which is socialist in its
economic
growth. I my¬
de¬
philosophy, and the Social Credit
Party, which professes unorthodox
veloped this
topic
on
C. D. Hows
i
~
views
occa¬
on
were
fine
speech and is easy to prepare, which is an important consideration in these busy days. The
second
is
Canadian-American
relations—the 3,000 miles of un-
in,
won
the
the
i
•
„
the Liberal
House
cordance
of
Commons.
with
servative
In
ac-
tradition, the Con-
Prime
tendered
Party had
the seats in
of
his
Minister
resignation
then
the
to
Deacfuf "relation's 'and^Trth Governor CenerM and advised
This Pprovides an opportunity^ for
tor Kln§» tne leader 01 the Liberal
<
-
-
.
rounded phrases and high flown
oratory —borrowed, if necessary,
eV1°US
else
or someone
SpeeCheS'
s.
The third subject that Canadians
frequently talk about when they
find a captive audience of Ameribusinessmen
can
trade
Because
ments
in
Canada
trade
them
relations
the
and
about which
before
is
of recent develop
we
between
United
are
States,
unhappy,
very
I almost succumbed to the tempta¬
tion to devote my remarks to that
subject.
in
But
Party, to form
The
k
Mr.
Prime
e
government,
a
Govern0r
for
sent
d
Minister
hi
then
King, asked him to
to
and
th
included
Minfste?
Mlaister
General
recom-
Ministers
'my
name
Mr
his
as
TranTnort
transport.,
of
c
cr.
ber
of
my
constituency
Parliament.
c.cc.cu
rxrv.cn
The
people of
for
me
as
a
member of the Cabinet,
but rather as their representative
do
not vote
from P?rt Arthur. I am appointed
1 member of the Cabinet by the
something Governor General, on the recom-
spite of the temptation
have
chosen
this
subject because
I know that many of you have
investments in Canada, and that
-
■
-
-
others
are
looking
with
ever¬
growing interest across the north¬
?
still
a
Member
but not
a
member of the Cabinet
Even
elected
boundary. It has been my ex¬
perience that few residents of the
United
Leader
States
Canadian
understand
form
seems
to
tween
our
government. It
that
me
improved
of
two
by
relations
countries
of
be-
be
can
mutual
each
begin on a personal note
by explaining my position in the
me
Government
been
of
Canada.
introduced
Trade
Minister
of
for Canada.
the
as
and
I
have
Minister
Commerce
Defense
and
Production
Most of you are
say-
ing to yourselves this fellow Howe
is
a
sort of combination of Secre-
tary
of
Commerce
Weeks
and
Secretary of Defense Wilson. It is
a
flattering idea, but hardly an
description of my posi-
accurate
tion.
First
member
ment.
I
and
of
foremost, I
the
could
Canadian
not
hold
am
a
Parlia-
my
pres-
ent
job unless I had contested a
Federal election and thus won my
seat
,
in the House
I contested
Commons.
first election
my
1935. I had been
of
an
industrial
in
en-
of
of
voters
district.
his
Party
his
is
He
own
chosen
manner
—71—
jj_
in
u
which
w
u
the
l-x
Con»i_
is known to be the Leader of the
Party has an impact on voting in
every
outside
papers
his
own
electoral district. Should he die
or retire during his term of office,
his
successor
as
Prime
Minister
be
chosen
by a Liberal
Convention, rather than by popu-
would
lar vote.
Thus
our
you
will
that
see
under
system the Prime Minister and
other Members of the Cabinet
also
Members
Commons.
of
The
the
Prime
are
House
of
Minister
is
also the Government leader in the
House
the
of
Commons.
Cabinet
Members
announce
their
of
poli-
cies in the House of Commons and
defend their actions there in person.
An
interesting
feature
of
session is the half hour of
questioning, when a private member has the privilege of questioning a Member of the Government
on
any
subject about which he
every
Cabinet Minister with Members of
tbe Pouse
Sulphur Springs, v*.
Commons.
;
in
power
ment
is
founded
This
of
Govern¬
that I shall be
means
and
De-
fense production to carry on their
functions during the present fiscal
or
In
year.
cussion
j
the
suooortof
loses tne
■
support
L rnmLn!
the-
o
*
"
•
^p^phS
respects, the
many
of
the
dis-
appropriations
is
CXC?rPt
election.
He
does
his
government.
tion.
an
The
That
keeps
Often the debates
Opposition Parties, the Leader of
that
Party would then become
appointed by himself It would be
impossible for the Prime Minister
be
Liberal
a
and
the
ministration
vote
majority
on
before agreeing
for the next year.
money
The House
of
Commons
to
may
decide to reduce expenditures proposed by the Cabinet, but increases
cannot
the
made
be
unless
they
are
approved in advance by the Cabi¬
When my appropriations
net.
are
under
consideration, I do not have
worry about the possibility that
to
the whole,
on
cross-examine
question relating to their ad-
any
exciting and
are
vigorous, and yet
Cabinet
a
m
its toes.
on
to
the members of the Cabinet
their func¬
is
opposition
government alert and
with
work
opportunity
an
Of course, the opposition memof Parliament criticize the
£esiSn
aad advise election
the Governor
General to call
to test
Minister
3
bers
ntluun
to
-■
and without publicity.
cannot carry an impor¬
piece of legislation, he must
Prime
*
Cabinet and among the members
of his party in Parliament> quietly
nraptw
in
VliL.
Minister
tant
,
m to mobilize support in the legis-
Canada
-loses
KJ
even tbe opposition remams rea-
private members may try to force
sonably responsible. It knows that me to spend more money on one
one day it may form the govern- of their pet projects. Such a moment and may be called upon to tion would be ruled out of order
prom^'e™ a"nd"the
Commo^TobeclservatWes
leader of the opposition party in fore it could be discussed
j wdl touch lightly on two important elements of the Canadian
the House of Commons
come the Prime Minister.
Government
ernment that "lobbying," and I do
reigning
monarch and is appointed by the
the
the
Senate
of
functions
of
official
acts
the
advice
Minister
The
Opposition and receives the salary
ent
Minister, in order
carry out his duty
of criticizing and opposing the
government.
Washington. When individual Ca¬
Cabinet
that he may
of
a
carried
are
of
out
_
Another
interesting illustration
Canada,
and
his of how the Canadian Government
independent decision system works is to be found in the
to do with taxa-
that
not
Bills,
Bills,
although this power is seldom
exercised.
Appointments to the
Senate are made by the Prime
are
monev
money
use
the word in any deroga-
tory sense, is a somewhat differin
matter
nadian
done
Ottawa
citizens
by
the
want
must be sp0nsored by the
.
,
h
.
does
introduce
a
the Cabinet either
directly
iiament
tural
■
For
example
jnterests
want
nroducts
or
if agricul-
fl00r
illustrate
me
reference to the legislation
parliament
bill
they
make
their
representations
Continued
which
on
creat-
"Rights
jng Hie authority that will build
^he g^
Lawrence Seaway, either
aione or jointly with the United
states. This Bill was approved by
the Cabinet and introduced in the
House of Commons by the Minister
of Transport.
The Minister
spoke in support of the Bill from
his
seat
in
and
mons
The Bill
the
House
replied
of
read three
was
Corn-
criticisms,
to
times
as
required by statute and approved
by the House of Commons. It
then went to the Senate, where it
was
again read three times and
approved. Finally, it was signed
by the Governor General and became
law.
You
had
will
the
Cabinet.
the
observe
full
If
House
Cabinet
it
that
support
had
of
would
_
failed
^nce Rejection ^wouFd
that
the
Cabinet
Prime
no
of
the
to
pass
the
resigned,
have meant
Minister
longer
We offer to
|||
o
and
enjoyed
^
the
buy Bank of Montreal
"Rights" at current market prices.
If!
United
I |
Settlement in Canadian
p|
States funds at your option.
||j|
These "Rights" expire November
| |
26th, 1954.
j |
or
Inquiries invited.
this Bill
Commons,
have
of
Bank of Montreal
by
M<Leod,Youhg, Weirs Compahy
IIMITEO
50 KINO STREET WEST,
the
TORONTO, CANADA
EMpire 4-0161
confidence of the majority of the
MONTREAL
OTTAWA
WINNIPEG
LONDON
HAMILTON
House of Commons which controls
VANCOUVER
CMPART
KITCHENER
QUEBEC
YORK
puree strings. In other words,
when the House of Commons fails
prices
if manufac-
mean
in terms of the transaction of pub¬
lic business? Let
or
through their local member of Par-
To American Holders
this
all
by
the
for their products, or it manutac
Cabinet. t"rers want a change ln the tarlH-
private member of Parliament
cannot
of
life.
what
or
involves
Minister and tenure of office is for
Now
in
something
government
which
Parliament,
than
expenditure of public money, they
.
r
not
Taxing and Spending in Canada approach the appropriate member
Prime
the
are very limited.
fields of taxing and spending All
The Senate of Canada has the bills having to do with the spends
power to amend legislation, except ing of money, or with taxation,
Bills
gov-
out the
of
of
powers
machinery of
our
Canada.
carries
vcuauu.
his
with
You will gather from this description of
the leader of the principal opposition party is officially known as
the Leader of Her Majesty's Loyal
of
British
the
be-
Indeed,
the
office
General
Governor General
may
and
is the
one
Governor
other
the United States your the
system of government
ment.
o
St. Lawrence Seaway
a
Ottawa, I shall
appropriations
the
Departments
my
mains President for that fourI might add that this is also the most important function of
year period, regardless of the sup- part of the explanation of why Parliament. Those who are faport he received m the House of Canadian politics seem more sub- miHar with English history may
Representatives or the Senate.^ dued, even dull, when compared remember that it was through the
~
"
- —•
"
A
"
l x
m
TTIn
Canada>
elections
for the" with
American
politics.
The ex- control of the expenditure of pubHi°1use °f Commons must be held ecutive is seldom fighting openly iic monies that Parliament curbed
uVe years;.
3, ?*ey witb tbe maj°rity °f the legisla- the powers of autocratic monarchs.
™ay be held whenever the Prime ture. The Prime Minister is never Well, in a sense, that goes on every
]JJimster may advise the Governor called upon to appeal to the peo- year in the Canadian Parliament.
.ne
,1?
-c?
an
electlorV
N.°
pie to support his idea, in order Every member of Parliament has
Prune
Minister
n*n
romo,n
1r*
Legislation Regarding
Manufacturing* chemi.tJ""Here
White
the people at
He re-
years.
Convention, and the fact that he
at
gineer and had never given much
thought
to
politics
until
the desires information. An ability to
depression of the early '30's, when answer questions promptly adds to
I became quite
indignant about the reputation and standing of the
the
f° administer legislation, that
does not support.
four
Party
ballot
institutions.
Let
the
is
Parlia¬
of
constituency, even though
other's his name does not appear on the
better
a
understanding
the
by
Minister
Member
a
electoral
Parliament,
Prime
the
as
of
defending
of
never
is
States is elected by
P^tvlfot hite !egislat'on
^hnnlTthlhaving
be
Canada
in
forced to agree to legislation
bhou{d tne liberal Party not have tlon or appropriations. The Senate
a majority m Parliament, I would als0 has a limited power to veto A
ment
ern
jheral
When I return to
be
Commerce
executive
systems of govern-
ment. The President of the United
every
essary money by recommending
taxes or borrowing measures,
That is why it is impossible for a
situation to arise in Canada where
the elected members of the legis-
01
You Wl11 see from tbls personal monarch, usually after consultahist°ry 'hat I am first and fore- tion with the Prime Minister of
most a P°lltlclan> an elected mem- Canada. Like the British Monarch,
to follow the usual pattern, I have
decided
to
tell
you
about the manner in which the
Canadian Government functions. I
the
American
a
charge on the
treasury.
Such bills . can
be introduced by Cabinet
who propose spending money must
also be prepared to raise the nec-
therefore proceed with confidence,
1935
majority
a
t
and banking.
election results
money
When
sions. It makes
heart
can. .re™air*
perhaps explain that
the two major political parties in
Canada's
several
where
should
x
The
have
Ontario
con-
Party.
suggest them¬
self
of
to
mons as
familiar topics
first
to
district
surprise,
Three
selves.
me
electoral
home at the time,
cided
is the
between
ence
involve
lation go on refusing to accept
asking parliament to vote enough
of the differ- proposals
put
forward by
the mone*
for
the
Departments gof
Canadian and Cabinet. On the other hand, the Trade
and
ment.
large
Party invited
the
my
you
W,o u 1 d
not
have invited
me.
test
Parliament who are also members
of the Liberal Party, knew that
other
Liberal
members
would
support the Bill. They could
legislative tuncare
not
the very
government
indeed it is
its
very life upon the support of the
legislative branch of our govern-
servative Party
tv
wda
was
administering
our
affairs " The Leader of the
difficulty is to decide on a subject. Obviously you expect me to
Canada
the legislature and depends for
principles of the main Canadian political parties.
Having accepted
from
in
of our system that the executive is drawn from members of
why
reasons
foreign investors have confidence in Canada. Points out all
legislation having to do with taxation and government spend¬
ing in Canada must be sponsored by the Cabinet, and this is
valuable check on irresponsible
legislation. Extols the prin¬
ciple of cabinet solidarity, but admits Canadian government
can work well
only under a two-party system and strict party
discipline. Holds there are no fundamental differences in
of
of
are
observed
that
the executive and
Canada's Minister of Trade and Commerce
a
have
You
public
alternative but to resign and only
recommend an election so that the Ministers with the express recompeople tnsmselves can decide the mendation of the Cabinet. This is
issue. In fact, the present Cabinet a valuable check on
irresponsible
which is composed of members of legislation, for it means that those
from
are
legislature,
would
11
page 28
12
The Commercial and Financial Chronicle
(880)
to
Mutual
Savings
Bank and Insurance Stocks
Banks
■
i
Deposits Now
Over $251/2 Billion
i. *
ending with July is at lower rate
fhan
year
by savings banks
mortgages
;
focused
weeks has been
which have been
on
A few of the
July 31 approximate $14 billions.
Insurance Stocks
the semi-annual operating statements
on
a
months
six
gained
$1,031,839 in
from
-
1953
in the first six months of
against $298,232
as
that
was
final
for
income
net
period in¬
the
$1,049,914 from $898,213 in the comparable period of
to
ago.
year
thbse apparent in the figures
The trends discussed above and
*
compared
Investment
Federal income tax accruals were of course higher,
result
The
creased
stocks for the past several
investors in insurance
Interest of
of
Holdings
ago.
—
first
the
$1,185,696.
1953.
This Week
in
1952.
period of
corresponding
the
in
totaling $406,805
If. E. JOHNSON
By
Thursday, September 2, 1954
.
statutory underwriting profit of $289,030 as
a
$1-35,992
income
to
However, increase, in 4 months
j
report
with
.
published.
of
major institutions have not as yet released their
operating results of the major institutions in the first half year.
the
companies
foregoing
dominant
the
were
influences; on
"
-'
»"f
■
■
Total deposits in the 527 mutual
•
savings banks of the nation gained
196,000,000 during July, to reach
new
record figure of $25,534,000,000, according to J. Hamilton
•Cheston, President, National Asso-
a
•
ciation
•
and
of Mutual
President,
Philadelphia
Saving
Fund
Society. The
increase was 13% less than the July,
1953
gain
of
$111,000,000. De¬
spite the fact that July was the
■f
-
fourth
•
month
increases
/
•
.
than
less
The
tended
The slackening in the rate of
deposit gains in July reflects the
coverage
withdrawals
counts
were
8%
in
above
such
ac¬
those
for
To date this year, net
money
received from de¬
positors—the excess of amounts
new
deposited
9%
than
less
months
was
of
in
the
1953,
first
but
than
more
crease
withdrawals—was
over
the
offset
by
paid
depositors.
Mortgages continued to
attention
banks
tions
July
holdings of
by
$172,000,000.
loans
1947,
31,
to
to
1953
of
losses
extended
the
1954,
of
casualty field, and especially in the automobile lines,
the
to offset losses.
gains tending
The
panies
result
net
removal of
There
the
time
for
earnings
compared
as
with
Increased dividends from
larger volume of invested
assets resulting from retained earnings and increased premium
volume, helped to enlarge the investment income.
Gains in this
segment of the business varied from about 5% to 10%.
ago" were substantially higher.
holdings of stocks, combined with a
the
was
Missouri
to
large
final
of
Beane,
301
Montgomery Street.
Frank Edenfield Adds
Chronicle)
MIAMI, Fla.—Henry H. Tomp-
kins has joined the staff of Frank
8340
Northeast
Second Avenue.
the
in
Fire
Insurance
Company
showed
Fire
ment
in
similar
volume
of
Philadelphia
also
and
only
the
in
any
The
showed an improve¬
gain in premium
Shelby Gullom Davis
Members New York Stock
details
full
the preferred will
and
the company
&
Co.
100
Exchange
Stock
Exchange
American
Stock
Exchange
120
on
y
BROADWAY, NEW YORK 5, N. Y.
Telephone:
Bell
BArclay
1
7-3500
Announces with
pleasure that
-
of
(L. A. Gibbs, Manager Trading Dept.)
Specialists in Bank Stocks
.
and
'j
GEORGE T. STEWART
-
the Government
/
are
now'associated with
us
1
in
Also, the entire amount of preferred is not to
Office:
26,
Bishopsgate,
London, E. C. 2.
Oldest Insurance Stocks
Branches
Burma,
India, Pakistan, Ceylon,
Aden, Kenya, Tanganyika,
Uganda,
Zanzibar,
and
Reserve
Capital
banking
and
exchange
business.
Trusteeships and Executorships
also
undertaken
The stock is call¬
The direct saving involved in-
dividends.
outstanding but not figuring elimination
are
stock
now
WILLIAM
now
outstanding.
the exchange plan.
that
each
first discussed many months ago it was under-
preferred
share
for
exchanged
income
If this is followed
common
through, it would involve an increase in
outstanding to 573,899 shares.
feature, came to $8.46.
share
a
on
"IN
THE
HEART
OF
THE
•
Teletype NY 1-384
INSURANCE
bonds
incentive
As stated above, earn¬
partici-
If the exchange plan as outlined
on
pro-forma basis to
a
the increased number of shares to be outstanding.
Obviously, then, the plan has highly favorable implications for the
STREET, NEW YORK 38, N. Y.
Telephone BEekman 3-0626
of
outstanding 528,899 shares of common and this
junior equity.
Meantime, of
course,
the company has been hard
by the combination of cessation of hostilities in Korea and the
drop in general business during the past year.
110
£3,104,687
The Bank conducts every description of
83,211 shares ($8,321,-
operation, reflecting the tax saving and ihe reduc¬
amount
common
There
pa ting
hit
,__£2,851,562
Fund
the
bonus.
Somali-
land Protectorate.
Authorized Capital
£4,562,500
Paid-up
Specialists
Serving Dealers and Institutional Investors Since 1927
in
ex¬
participating feature, would come to $739,906, or $1.40 a share
$12.47
West End
(London) Branch:
13, St. James's Square, S. W. 1.
be
that 225,000 shares will be exchanged for
is consummated this would be increased
Kenya Colony and Uganda
Head
the
in
stock
bonus has not been
value) will be called for redemption.
par
stood
the
exchange
ings on the common stock last year, after allowing for the
of INDIA. LIMITED
to
Western Pacific
It is known that holders of
would also receive one/fifth of a share of common as an
(both formerly with Geyer & Co., Inc.)
NATIONAL BANK
Last
share on
be offered par-for-par in new 5% income bonds,
When the plan was
Teletype—NY 1-1248-49
Bankers
proposed
the
will be increased an undisclosed amount under
*
WILLIAM D. O'CONNOR
a
There are now outstanding 308,211 shares of preferred/
this proposed
Laird, Bisseli & Meeds
New York
$11.64
share after allowing for the par¬
a
The exact amount of the common stock
held.
the
Members
that has prevented the di¬
the common in any year since
on
fractional share of common for each share of preferred
a
tion
Members
the common stock in
on
It is generally considered in finan¬
$22,500,000 of income 5s and the remaining
Request
on
As it now stands the stock is
plan have not as yet been announced.
able at par plus accrued
Circular
it will not only reduce the
it will eliminate the participation
dividends paid
cut to $8.46
Of these it is proposed
Incorporated
Western
regardless of high earnings in many years.
were
common
changed.
Morgan & Go.
which are expected
exchange will have a dual pur¬
preferred.
persent
paying more than $3
determined.
J. P.
are;
ticipating feature of the preferred.
A small
slightly higher losses premitted
the
that
Illinois and
for instance, straight reported earnings of
year,
Federal income taxes were almost
Association
roads
two
preferential dividend of $$5 and partcipates equally,
a
reorganization
same
operations for the first half.
The
Eastern
&
quarters that it is this provision
cial
rectors
double amounting
to $565,000 in 1954 as compared with $274,000 in 1954. The final
result was net income of $1,155,448 in the first half of the cur¬
rent period as compared with $718,143 in 1953.
year.
the
of $3 in any one year.
excess
period. The underwriting gain for the first
six months amounted to $785,977 as against $216,216 in the first
half of 1953. Investment income gained to $853,104 from $755,712
trends
last
(Special to The Financial
Union
Naitional
FRANCISCO, Calif.—Don¬
ald J. Reilly is with Merrill Lynch,
but, also,
burden,
share-for-share,
initial six
in the
against $348,967
Chicago
If successfully consummated
entitled to
Federal income taxes were substantially
1953.
are
The Western Pacific plan of
com¬
higher
reflecting this improvement, amounting to $1,538,991 in 1954 as
compared to $360,600 in the earlier period.
Lynch
&
$2,223,154 as
was
year
It is notable that this inequity,
Pacific.
For
this
holders were satisfied in
of old bond
reorganization.
Pacific
shortly,
move
feature
*
This has imposed an unreasonable burden on
where claims
apparently all set with exchange offers, and
investment earn¬
gains in underwriting and
to.Federal income taxes while preferred stock
not.
important factor in the ultimate decision in setting up
an
new
potential savings in Federal
the
preferreds in reorganization.
new
designed to substitute *
One reason;
plans
Income bond interest is deductible before arriving
are
those'roads
year
of
such proposals is
pushing
the original House,
railroads will get going
issues now outstanding:
for preferred
at income subject
a
recapitalization
proposed
/income taxes.
experience each had in the storms "
investment
of the punative provisions of
some
bonds
dividends
same
Because
their
on
income
1953.
early
At
the emphasis in
companies, depending upon
type of business written and
of
underwriting
variation in the
however, considerable
was
different
of
fire and casualty com¬
able to show good improvement in their
were
experience.
results
of the
passed and signed, after
tax law has been
new
version, it is expected that a number of
/
that most
was
Proposed Refunding Plan
Western Pacific's
Now that the
tax
With Merrill
Co.,
half
first
income
(Special to The Financial Chronicle)
&
annually, the
million
the
example, Firemen's Insurance Company of New Jersey
reported net income of $3,627,999 for the first half of 1954 as
against $1,731,589 for the comparable period of last year. Under¬
writing accounted for most of this improvement where the gain
.
Edenfield
of
experience reflected the fact that there were no major
nominal.
months of
,,
sections of the middle
of
pose.
011
$69,000,000/ in
Fenner
In
the ex¬
in
panies showed substantial gains.
holdings
000.
Pierce,
unusual.
of the
results
►
The banks also
corporate
and
municipal securities, while
reducing U. S. governments by
$.95,000,000 and cash by $13,000,-
SAN
$16
operating
on
the balance of the year.
1953 caused losses running
dollars.
As against an historical
the spring
millions
The size of the storm, however,
influence
The major
$13,901,000,000,
bring
1954
;
was
ings, Federal taxes were substantially higher absorbing a
portion of the improvement in underwriting.
Even so,
earnings for the first six months for most of the major
for that month
48.8% of assets.
placed
The
occupy
savings
institu¬
their
greatest gain
since
or
mutual
during July.
increased
mortgage
the
of
however,
experience,
evenly and some companies may have a
not fall
companies during
five
six
darpage and
previous catastrophies of this type
in
As
losses.
pronounced
a
have been
losses
underwriting results continued to show improvement. Experience
in the other insurance fields showed only minor changes with
in¬
an
in
around
of
indeed
In
of 28% in the amount of in¬
terest-dividends
the
seven
decline
the fire
fact
windstorms and losses from this line was generally
regu-
4% whereas
up
deposited
were
from
of
hundreds
were
July 1953.
-
northeast
and
experience
amounts
-
coverage
posit gains of $1,147,000,000 were
2% greater than a year ago.
the
the
of
The windstorms which swept through
into
months of 1954 de-
spite
the loss
field.
in
improvement
the first
seven
In
losses.
states, the loss 'ratio was in most cases favorable.
the
in
of
trend
will
have
will
It will take time to assess the
experience than others.
better
reports, however, was the
favorable aspect of the
most
final
losses
the
for the final
results
operating
Maine,
to
in doubt.
are
establish
where
The
instances
few
a
continuing upward, and rates have been reduced in a number of
west
3ar accounts
,
in which
year
only
In
upward.
continued
special problems were encountered was a decline reported.
gains in most cases were modest, generally below 5%.
York
New
months
volume among the large multiple line,
The trend of premium
companies
from
for the industry.
swept the Atlantic Coast
the recent storm which
Because of
fair idea
of the first half of this year
corresponding month of 1953, over
fact
-
this
were
a
Savings Banks,
The
However, based upon the results that are now available,
can be formulated as to the experience and operations
figures.
DISTRICT'
six
months
dropped
on
was
from
off
$5.70
more
to
than 50%
$2.07.
and
year
the
1954.
present
$3
share earnings
However, comparisons from
should be considerably more favorable and
double
Net for the first
common
dividend
rate
are
here
earnings of at least
estimated for the full
i
Volume 180
The Commercial and Financial Chronicle
Number 535G
(881)
13
debt.. Norfolk & Western has
two
*
v-
Purchasing Agents See August Pickup in
Norfolk & Western
Business Better Than Year Ago
Investment Grade Common Stock
Business
Survey Committee" of the National Association of
Purchasing Agents finds that production pick-up and new-order
increase at this
season
but there is still
no
is
substantially larger than
indication of
By HUBERT F. ATWATER
strong upsurge of industrial'
a
rities
Mr. Atwater describes
~
v
railroad that handles around 10%
a
of the nation's bituminous
A composite opinion of purchas¬
ing agents who comprise the Na¬
tional
Association
of
whose
tee,
-
is
Robert
C.
Swanton,
Di¬
record
higher
aluminum
and
of
van
since
number
1953),
Steel
One-third
advance.
or
highest
Purchasing
Agents Business Sprvey Commit¬
Chairman
firm
of j*
June
'
quotations.
the
in
were
burden of comment is
that,
far,
so
small
rector of Pur¬
slow
to
chases,
items, where stiff competition has
Re¬
indicates
has
.
that
slower
advances
mild
Pro¬
made in the second quarter.
duction,
of plant vaca¬
strikes, dropped a bit,
because
and
held
orders
close to
pattern established
improved
the Spring.
is. the
terest
very
particular in¬
of this
Of
comparison
August, 1954, survey with that of
when
1953,
August,
it
was
re¬
ported that the usual August pick¬
disappointing and the Fall
Winter upswing might be a
up was
and
This year,
slow starter.
tion
produc¬
a
and new-order in¬
reported by a substan¬
pickup
are
crease
tially larger number of the com¬
increases
The
mittee.
to
.
'decline,
....
bers
but at
doubt
Some
*
a
of1,
than the average
pace
the first six months.
Robert C. Swanton
has fairly well :
maintained
the
in
=
inventories
material
continue
business
the
Inventories
mem¬
will'ma¬
inventories
terially increase with the gener¬
ally anticipated improvement in
activity for the balance of the
year/Short procurement time and
ready availability are expected to
keep inventories on the low side.
Employment
it
Were
for
not
:
•
.
the
of
strikes both large and small, Au¬
gust would show
in
scattered
reports
time and
work
offs.
has
call-backs of lay¬
active
Very
work
slight increase
There are
of
increased
a
roll additions.
pay
construction
,
absorbed
industrial
of
some
the
unemployed this Sum¬
mer.
March.
that bracket;
comparative of
the recessionary trend of August,
1953, is the strength currently re¬
ported in the industrial materials
price structure, an improved in¬
ventory position, a slight stretch
in
buying policy, and the strong
construction activity found in aH
The only
areas.
rash of
executives
ness
/-'-*•
„
exceptions, purchasing
look for better busi¬
through
the
the
of
balance
boom, but no bust:".
year—no
-Commodity Prices
materials
Industrial
August show
a
also, into the 90-day
in¬
Reduced
columns.
over
ventories, price strength, and in¬
creased
count
production schedules ac¬
this moderately longer
for
view of future
coverage.
ern
N
in
prices
f
o r
&
-
dependence
coal
is
In
on-
and
sober "
all
be
so,
Russell
Haff
A.
has
been
coal
Broad
at i 25
offices
with
Street, New York' City.- Mr. Haff
was
formerly in the municpal se¬
curities
department
the
of
office
of
the
Marine
New
Trust
Company of Western New York.
lands
large
quantities of
devoted
Corp;
*
&
lands
served
Western
ginia,
tucky,
in
between
.
Carolina Securities
(Snccial
>
to The
RALEIGH,
Parchment
Financial
Carolina
Keyes Fibre Co.
N.
C.
—
Securities
Insurance Building.
Jerry
BOENNING & CO,
Corporation,
Mr. Vaden in
officer of Griffin
Inc.,/ and
was
with
Kirchofer & Arnold, Inc.
&
Vaden,
and
fSnec'-'
-
Pfi
Public Service Coordinated
ence
&
Pocono Hotels Units
Leeds & Lippincott
LOS
to
The
Units
-Walnut Apts. Common
Financial
Chronicle)
ANGELES, Calif. —Laur¬
Casselman
affiliated with
4s, 1990
-
III
has
become
Francis I. du
quite
coal,
a
Samuel K. Phillips & Co.
Phila.-Balt.
Stock
Co., 677 South Figueroa Street.
Mr.
Casselman
previously
was
with Dempsey-Tegeler
Fairman
&
& Co. and
Co.
from
lau
Exchange
Pennsylvania Bidg., Philadelphia
Teletype
PH 375
N. Y. Phone
COrtlandt 7-6814
has
reflects
courser
show
of
the
the class
includes
'•
high
a
low, volatile
National
production
inous coal
^
of .bitum-
1953 and may not exceed 375,000,000 tons in 1954. In the first
seven
months production is down 18.9%
whereas in the Pocohontas region
is is down 16.6%.
&
Western
coal
For the Norfolk
production is off
the production
but
production
ous
has borrowed no money from.
public since 1913 when the
stockholders subscribed to an is¬
of convertible bonds, most of
sue
which
were
later converted.
Equipment purchases have
caused many railroads to borrow
large sums since 1946 but Norfolk
& Western has created no equip¬
1926.
debt since
ment
This is the background
and re¬
West¬
denote®
cent
history of Norfolk &
ern.
It is impressive and
strength.
j.At 41 Vz
Norfolk- & Western
yields 8.40% on a $3.50 dividend
that
has
been
paid each year;
,
Hudgins, Smith With
Fewel & Co., L. A.
conducting
trans¬
railroads.
net
1
of low
Chronicle)
ANGELES, Calif. — Her¬
bert
C.
Hudgins and John C.
Smith
have
become
associated
LOS
Fewel
with
Co.,
&
with
of 8.17 or
South
453
members of the
Angeles Stock Exchange. Mr.
Hudgins was formerly Vice-Presi¬
Street,
Spring
Los
dent of R. E. Evans & Co.
compared
average
(Special to The Financial
of San
Diego with which Mr. Smith was.
also associated.
the
District.
Eastern
Chicago Mun. Bd. Blub
•
,
.
traffic
of
originates
on •
for off line delivery.
r
■
■
five
while coal traffic
39.1
from
million
tons
all other com¬
increased from 15.5 to
to 45.4 million tons,
million tons. "
1953
revenue
r
'
Club
an
informal
September 9, 8:30 to 11 a.m., for
out-of-town visitors attending the
Club's outing
and Chicago mem¬
bers
to
wishing
which
held
be
will
visit with their
the breakfast,
at Welty'm
at
Hosts
friends.
South
La
Restaurant,
135
Street, will
be Hal Spink,
Salle
A. C.
Allyn and Company, Incorporated,
Joseph
and
•
Condon,
McDougal
and Condon, Inc.
-
corporations have an unbroken record of dividends for 50
Few
but Norfolk & Western has
pai(} dividends on" its
common
stock every year from 1901, i.e.
53 years."
Kugel, Stone & Co.
In New Location
years
Few
of
.
received from
handling the products-of mines
was 63.50% of the total and manufacturers and miscellaneous
25:74%.
111.—The Municipal
Chicago will hold
breakfast, Thursday,
CHICAGO,
Bond
.
effort is made to in¬
years
Informal Breakfast
line
the amount of commodities
increased
In
451,559,000 tons in
was
greater
or
$11,700.00 Revenue from hire of
equipment due to the owner¬
ship of 58,083 freight cars and
i
the fact that so high a portion
18.2
which
coal
to
for
5.17
modities
percent¬
sales advantage.
equal,
1
the class
last
mines, each
large investment in;
a
report will
carried, other than coal and in the
.
tippie
a
able to
'
crease
bi¬
of
course
1953
of
in
Intensive
great
a
as
the
from
down
equipments are located on Nor¬
folk & Western lines.
Their pro¬
of
are
way
since 1949.
having un¬
the following
14.81% of gross revenue brought
the record of Steel Operating Ca¬
is
major
Kugel, Stone & Co., Incorpor¬
ated, announces the removal of its
office effective Aug. 30, 1954, to
corporations make
eliminate funded 30 Broad Street,
effective plans to
New York City.
of the bitumin¬
United
of 4 the
one-half
from
the
With Investors
Realty
Chronicle)
LOS
Financial
ANGELES, Calif.—Mrs. E.
joined the staff of
Investors
Realty Fund, Inc.
Parker in the past was
Baker & Co.
Mrs.
with H. R.
Active
produced
The
coal.
Trading Markets
re¬
cently authorized expenditures by
Maintained in all
the Atomic Energy Commission in
Ohio
alone,
estimated to add
are
7% million tons to the annual de¬
^
the consumption
Once
bituminous coal
lion
tons
has
been
in
of
PHILADELPHIA
reached 630 mil¬
single
a
will
year
that
estimated
consumption
reach
and
it
BANK STOCKS
annual
800
mil¬
lion tons in 20 years.
To
coal
aid
Western
the
in
from
consumption
mines
off-line
several
and
standards
per
In
the
main
of
Send for
comparison of 11 largest
Philadelphia Banks
&
coal
bureaus
of
line is
not
less
'
maintenance of
have long been
Western Railway.
Its
of
Norfolk
locations.
characteristic
rails
in
territory the railroad has
established
high
.
is
power
bituminous
Efficiency
(Spec'r.1 to The
capacity
steadily and about
expanding
in
E. Parker has
.
that
the
pacity will seldom
age
retired.
portation, among the lowest of
any period.
The In¬
of Industrial Production and
commands
efficiency
sorbed
of bi¬
use
bituminous
of
accurately
duction
built
30.42% of gross revenue was ab¬
business in
dex
Last
mileage.
our
pattern
,
many
railroad
Vir¬
greatest single
source
of power, has had wide
fluctuations over the years but the
Pont
Pratt Read Co. Common
Members
in
Cincinnati.
production and
mand.
.
With Francis I. Du Pont
Stetson
coal
advantage to the railroad.
formed
they
as
borrow; Norfolk & Western Rail-
The electric generating
B.
the past was an
B.
best
•
.
••
Chronicle)
Vaden has become associated with
John
the
by the Norfolk
Norfolk
production,
-
Gross
ton
miles
per
freight train hour, up 17.7%
since 1946.
Higher than any
This element of location is of par¬
ticular
/ >
have the abil¬
ity to carry on expansion of fa¬
cilities or make major improve¬
71,991
Virginia and Ken¬
area about midway
an
as
funded
the
States.
Kalamazoo Vegetable
Philadelphia 3, Pa.
efforts
.volatile coal is off only 9.1%. Nor¬
folk & Western continues^ta.han-
Jerry B. Vaden With
to
maturity.
Few corporations
show:
bringing
situated
are
West
13.4%
-•r
-
its
to
to
to market with the least cost. The
dle from 9 to 10%
Grinneil
(1881-3)
been
coal
in the
cars
shops.
locomotives- were
twice
factors
westward
new
Western
&
15
usual
Hubert F. Atwater
have
ap-'
pointed Manager of the municipal
bond department of the Cleveland
' firm of Joseph, Mellen & Miller,
retire
at
in Norfolk & Western
was
representing
Joseph, Mellen, Miller
sufficient
Careful supervision has resulted
since the raild
the custom to
long been
Norfolk
year
u s t
locomotives
build locomotives and
para¬
conscience this
r o a
has
It
mount.
in
Norfolk & West¬
owned 444 steam
of which 209 were built since 1940.
the
Western
borne
Continuing Interest in
& Paper
1 k
o
variance
Russell Haff Joins
Inc.,
.*
marked trend to
Southern Advance Bag
the end of 1953
history of
.
York
A
wealth; but in
tuminous production.
dark cloud is the
strikes/;;,;
With few
and
-
good
the
The
pre¬
in
,was
develop¬
of the.
tuminous
remains
policy
shown
•Adding /to this
the
in Eur¬
war
physical condition
and had plenty of power on hand.
It has never had to buy diesels,
either
because
of
shortage
of
power or lightweight bridges. At
-
fund,
sinking
the
in 1939 the Norfolk & Western
ope
importantly to
Buying Policy
Buving
.»
dominantly 60 days and* under.
However, there has been a slight
movement into the high side of
improvement that has been
in .the reports since last
most
borrow-
without
At the outbreak of
con¬
tributed
not
are
large; do not indicate a strong up¬
surge of industrial business.
They
do confirm the trend toward grad¬
ual
ties have
$200 million in capital
over
improvements,
ing.
Railway is the
story of Coal.- The two commodi¬
reach
•
spate
vested
the
is
The story of. the
Norfolk & Western
"pushed
/
Virginia
of
story
Common
Purchased
July and Au-,
gust, indus- ~
while
than
the
in
held
principal, would be
debt
?
common
story of Tobacco.
many; ment
in
i
IV
slump in
tions
strength
more
reported
Sum¬
normal
trial
been
A
months.
1,
despite the
mer
restraining
has
markets
,.
Haven, Conn.,
fabricated
influence.
Currently, the general tone of the
.
Comany, New
been
have
into
move
[ strong
a
Arms
peating
increases
The
because
when add^d to
ments except
movement, following
increases.
However,
the
these
chester
its
on
this
wage
Win¬
production, that has paid dividends
stock for 53 years, that has invested over $200
million-in capital improvements within the last decade, and
has issued no bonds or equipment certificates since 1926.
(the
discontinued
were
the estimated income on the secu¬
Members New York Stock Exchange
business.
•
tions
Gammack & Co., New York City
ago,
year
Railway An
direct mortgage
issues due 1989 and 1996 issued in
1889
and
1896 respectively, for
which a sinking fund was volun¬
tarily created in 1937. At the efid
of 1952 the monthly appropria¬
jnon-callable 4%
the
Norfolk
'
**
now
than
•
,
&
Incorporated
laid with
130
PHaADELPHIA 9
pounds
yard. '
New Vork
the years
Norfolk
STROUD & COMPANY.
*
&
1945 through
Western
has
1953
in¬
•
Pittsburgh
•
Allentown
•
Lancaster
•
Atlantic City
,
14
.(882)
The Commercial and Financial Chronicle
Charge of the bank's
Office, Brooklyn.
:
♦
'News
Banks
ibout
NEW
Trust
BRANCHES '•
Company,
•
Bankers
and
NEW OFFICERS, ETC.
REVISED
♦
Mr. Ralph T. Tyner, Jr., Presi¬
Westchester Bank &
CONSOLIDATIONS
.
New
N. Y., announces the
of
CAPITALIZATIONS
its
R.
Hand,
Mr.
Board
Directors
of
of The
special meetings
scheduled for
Oct. 14 to vote upon the proposal.
In their joint statement the two
chairmen
said, "No two banks
National City Bank of New York
has called a Special Meeting of
Shareholders for Sept. 20, 1954 to
take action on a proposal, recom¬
by the Board, to increase
capital funds of the Bank by
the
sale
shares
of
of
change.
2,500,000
additional
capital, stock (the
its
For
over
institutions
York, to take
♦
The
»
his duties
up
Y.,
Marine
a
Sept.
on
Midland
through completion of the acquisi¬
a major interest
b,y Marine
The
Pope, Chairman of the Board of
ital
sources
stock
proportion¬
of
City Bank Farmers
Trust Company, New York, on the
basis
same
posal,
the
staffs
all other sharehold¬
as
of the Bank).
ers
cal
share to all shareholders pro
rata
the basis of
on
for each three shares held
ord
of 3 p.m.
as
(EDST)
of
posits
000
24, 1954.
Fifty
tional
Bank
marked
was
of
New
F.
Schroeter, Assistant Cashier, at
luncheon
officials
Mr.
tendered
as
signed
a
as
where
to
started
at
is
52
.
Street
today.
Schroeter
employed
the
few
Widely
bond
1904.
housed in
was
Carbon
paper
in
tween
poration, the Chase Securities
Coropration, Chase Harris Forbes
Corporation, and since 1933, the
un^
turned
wheel
a
Chase
large book, be¬
sheets
and
then
a
damp
the
on
dent in
indelible
ink
the
used
correspondence, placed it
alphabetical order and filed it.
Later, Mr. Schroeter
signed to the Auditing
ment,
continuing
ident
entered
1921
to
Caracas,
served
Pro-Man¬
as
1928 he returned to
Caribbean
Loan
in
transferred to
was
Venezuela
In
ager.
he
1923
Section
of
*
are
is
1
April
its
14,
location.
present
1931
he
where
he
has
making
since
served.
Mr.
Co. will
elected
was
Treasurer of the City Bank
Club,
Head
Office, in 1910, and also
served
as
Editor
of
"Number
Eight," The National City organ¬
ization employees'
monthly magagine, for a time prior to 1921.
*
*
New
York, have unani¬
mously approved a plan to merger
j|-*any,r
their
institutions,
nounced
on
Jackson
and
it
was
an¬
Aug. 26 by N. Baxter
Dunham
B.
Sherer,
respective Chairmen.
The
plan, which provides for
exchange of two shares
ical
Corn
to
Bank stock
for
one
Exchange, will be
stockholders
an
of Chem¬
share of
*
submitted
as
all
legal
requirements have been
met, and
of
be
increased, thus
possible
the. broadening
and international
domestic
that
the
manage¬
un¬
changed.
of the exchange have
yet been finally worked out,
current
discussions
spect thereto
the
staff of
are
with
*
re¬
being held with
the Securities
&
Ex¬
'
change Commission.
*
appointment
of
John
C.
Reutlinger, Jr.
Assistant Secretaries at Manu¬
facturers Trust Company of New
announced
was
Colwell
has
on
been
with
Manufacturers
1945.
He
is
Sept. 2.
associated
Trust
since
assigned to the Per¬
Department, 67 Broad
Street, N'ew York City. Mr. Harms
Manufacturers
1941.
He is
23rd
Street
who
is
Trust
in
assigned to the bank's
Office.
assigned
to
Mr.
the
Moran,
Accounts
Receivable
Department
at
the
Brooklyn Trust Office, became as¬
sociated
with
since
with
Mr.
the
1931.
the
bank
in
July,
Reutlinger
has been
Manufacturers
Trust
He
is
Officer-in-
nomic relations between ourselves
and
62
State.
of
these
Pres.
Eisenhower
of
"We
r
~
r-»
the
come
First
happy to wel¬
Bank
&
Trust
Company of Utica to the Marine
Midland group of banks. Founded
in 1812, it is now the oldest of
the Marine Midland banks whose
average
age
is over 100 years.
The bank will continue to be man¬
aged by its
directors.
present officers
and
it is in
$4,250,000.
in
Deposits of
excess
dent
Eisenhower
and
the
of
its
its
and
dous part of your
has
program
the
has
written, it is clear that
been
enacted
In the field of
•
A
the; bank
and
Congress
■
-
believe
previous item
the acquisi¬
on
tion appeared in the Aug. 26 issue
of the "Chronicle" page 789.
Obviously
much
to
the best
♦
*
program
your
foreign
presented
died
Company,
suddenly
Bratteboro,
*
certificate
Vt.,
cerned
Aug. 23.
on
♦
gram
*
issued
was
Aug.
13, by the Office of the Comptrol¬
ler of
the
Currency, approving
and making
effective, as of the
close of business Aug.
14, 1954,
the
consolidation
National
Vernon,
with
of' The
Bank
Mount
Vernon,
stock
common
of
FirstMount
Ohio,
of
friends
your
the
about
place
'
■■
policy
occupies for the
Some, too, fearful
_
of
quences
cision,
are
the
are
ahead.
conse_
tariff
de-
anxious to be reassured
that your Message still constitutes
the charter of your Administra-
tion's foreign economic
policy. It
might be useful, as you have the
opportunity,
clear
to
get
the
and
the
record
members of the Boston and Midwest stock Exchanges. Mr. Leland was formerly Boston representative for Geyer & Co., Inc.
i
thinking
straight
for your magnificent efforts in the
;
solidation
service of
Johnson
was
effected
title
and
National
of
under the
"The
Bank
of
Mount
of the par
plus
of
value of $50 each; sur¬
$450,000; and undivided
profits of not less than $440,185.79.
*
The
and
*
American
,.
Bank
$4,000,000 to $5,000,000
♦
The
of the
a
a
wxt
THE
dividend
*
effective
sincere
view
Office of the Comptroller
Currency issued on Aug. 19
as
in
your
a
mnst
our
country.
the
of
splendid
your
Several
of
on
page
28
the
Los
Angeles
Stock
Ex¬
accom-
SAN
FRANCISCO, Calif.—Rob-
ert w. Grunigen is with J. Barth
& Co., 404 Montgomery Street,
members of the New York and
San
recently
Francisco
Stock (Exchanges,
these
Davidson Adds
concluded.
enactments
(Special
re-
SAN
°
That is always a time-consuming and often exacting process,
pace.
connected
With J. Barth Co.
Congress
in
translating so much of my legisla¬
tive program into reality during
session
become
the
charter to the Citizens National
Continued
of
good
i1 most 2K
vital
know, I fully share
to
has
change.
for
interest
plishments
Chronicle)
(Special to The Financial Chronicle)
thanks
As you
the
*
»
Harry:
Many
Financial
Jones, Cosgrove & Miller,
81 South Euclid Avenue, members
HOUSE,
Washington, D. C.
August 26, 1954.
Dear
to The
PASADENA, Calif.—Norman T.
with
WHITE
problem confronting
National
Company of Chicago,
111., increased its common capital
by
a
stock
Aug. 20.
yt
*
Trust
stock from
beloved land.
(Signed) HARRY A. BULLIS.
bank had
capital stock of $450,000, divided
into 9,000 shares of common stock
Joins Jones, Cosgrove
.(Special
appreciation
Sincerely,
At the effective date of consoli¬
the consolidated
our
First-
Vernon."
dation
warmest
my
i
BOSTON, Mass. —Alan C. Leland has joined the staff of Coffin
& Burr, Inc., 60 State Street,
that issue.
on
With
.
(Special to The Financial Chronicle)
$375,000,
and The Dan Struble & Son Bank,
Fredericktown, Ohio, with com¬
mon
stock of $75,000.
The con¬
again
Incorporated,
Coffin & Burr, Inc.
con¬
the
,
EISENHOWER.
Alan Leland Joins
this pro¬
year
of
watch
people.
South,
Minneapolis 1, Minnesota.
quately with it.
of
my
still in
(Signed)
D.
General Mills,
message of March 30 to deal ade¬
Some
are
our
400 Second Avenue
prior to
economic
on
Mr. Harry A. Bullis,
a
complete
classification.
...
*
Howard S. Merrill, Director and
proposals of
interest of
DWIGHT
Congress had too
on
major pieces of
your
the
Sincerely
the
do
that
Message of last March
authorized
customs
one
was
I welcome your
support and the
support of the many who like you
foreign economic
-
of
recent
more
the
on
That case,
Branch.
policy some progress was also
made.. The one-year extension of
the Trade Agreements Act will
study
say
is
and
Commission's report and with the
advice of interested Departments
and Agencies of the Executive
-
$60,000,000.
youi
decision.
the
That
markets
decided solely
on its merits under the law in
the
light of the United States Tariff
into
significant
are
themselves
In
abroad.
better
lead and zinc,
The accomplishments in
agriculture, taxation, Social Security,
unemployment insurance, transportation, atomic energy, and the
fields
to
tariff
with
as
law.
other
route
watch
tremen-
a
friends
our
better feeling,
I
note
what
full
forward-looking
been
in¬
will not only
will encourage similar action
Congress has
activities
us
"y Ub wm »oi umy propro-
duce
good results
but
"
the
work
by
^
President:
of
the channels of trade and
vestment
by
Now that the 83rd
record
enlightened self-inter-
our
prudent widening and deepening
President's reply follow:
■
of
our
t(? *\ave economically strong
permit the negotiations with Japan
aggregate capital, surplus and un¬ to go forward.
divided profits now approximate
I was glad to see also that the
are
our
friends throughout the world. The
memorable.
additional capital furnished by
Marine Midland Corporation the
of
economy and the attainment
rising standards of living for
Mr. Bullis' letter to Presi-
Theodore
Rokahr, President of
Company
Utica, pointed out that with the
This is true,
growth
•,
ident Eisenhower.
completed
indeed
are
the
foreign economic policy, people can materialize only in
between
Harry A.
Bullis, steP with economic growth and
fv
;
improvement in the economies of
Chairman of the Board
of the free world linked to ours. It
General Mills, Inc., and Pres- is more
emphatically true because
Dear Mr.
poration, said:
because
of
Midland, Charles H. Diefendorf,
President of Marine Midland Cor¬
the acquisi¬
on
own
Harry A. Bullis
'•
commenting
$1,400,000,000.
the free world.
first
Washington, D. C.
In
sonal Loan
joined
in
York
deposits
exceed
now
charter
*
events of every day bear
heavily upon us the imperative
necessity of building stronger eco¬
tion of the Utica bank by Marine
as
York,
offices
is
The
offices, there
New
It
in
Eisenhower,
Colwell, John H. Harms, William
Mr.
130
position.
present intention to give high
in planning for next year's
legislative program.
10 Marine Midland banks
in
was
them
consider
to
priority to progress in this whole
President Dwight D.
The White House,
banks
Knox
The
the
First
Company of Utica
operate
Knox
Details
not
by
the
Vice-President, of the Brattleboro
,
ment of the Bank will remain
1945.
as soon
Aug. 31 that
on
A. Moran and Max
*
Directors of Chemical Bank &
Trust Company, New York, and of
Corn Exchange Bank Trust Com-
of
its
but
Schoreter
Trust
combined
A
Assistant Cashier in the Caribbean
District
The
plated that the capital of Colonial
the
On
held
addition
communities
Trust
Trust
appointed
was
bank
presently
also President.
the
Wall
&
which
As part of the overall
program,
Messrs. MacMillen and Kleeman
further stated that it is contem¬
activities, and
55
the
the
are now
companies of which Mr. Kleeman
of
to
Co., New
stockholders of
Colonial Trust Co. and four other
Office,
Street,
moved
Jr., Pres¬
Industries,
Kleeman, Pres¬
the
and
Bank's Credit Department at Head
now
With
of
*
Colonial Trust
dustries
City
Bank's
Foreign
Inspection division and
Cuba and then
was
being
held, looking toward an exchange
of shares between Chesapeake In¬
as¬
covered South American branches.
From
of
discussions
entered
Army service in 1918.
When he returned, Mr. Schroeter
Branch
of
Time
session.
field
to
the First Bank & Trust
York, announced
Depart¬
until he
there
He
1940.
Inc. and Arthur S.
in
was
shares
Corporation and retired
940,000 shares of preferred
stock
Vice-Presi¬
William C. MacMillen,
ident of Chesapeake
the typist.
gathered all
the
Bank.
Second
*
by
boy
page
to
copying
compressed the sheets
and copies came from the special
Then
National
promoted
and
press
Street
F.
RFC.
circles, Mr.
officer of the Equitable Cor¬
as an
known and. at the end of the day
the office boy placed the corre¬
spondence
Wall
N. Y., in 1916. For 38 years
he had specialized in bond work
special
a
was
in
investment
pany,
generator to ring the oper¬
booth.
known
and
joined the bond depart¬
ment of the Equitable Trust Com¬
Foreign Department had one
telephone, the wall type, with
ator and it
Mr.
Reeves
The
hand
Chase.
Reeves,
who
resided
at
Great
Neck, N. Y., was 59 years old.
em¬
in
stenos
home
Ontario, of a former as¬
Arthur M. DeBebian, a
sociate,
those
National
summer
retired officer of the
secretaries, al¬
femal
Chase
Wall
though male secretaries outnum¬
bered
the
from
Women
and
as
Lake
on
rarit.y, according
a
of
Aug. 30, at the
on
in the Foreign
when
the
Bank's"
the
215,000
which operates three
page
was
from
Bank
*
President
were
Mr.
were
*
Bank of New York, died suddenly
a
it
*
George H. Reeves^ Second Vice-
Bayard
Corporation,
Finance
the
almost
a
Midland
2,150,000 shares, of which Marine
Midland purchased the additional
1,935,000 shares for $5,500,000.
First Bank & Trust Company
paid
$6,000,000 to the Reconstruction
system
as¬
across
ployees
office
the
Office
Street,
branch
a
with
Department;
Head
banking require¬
boy of 14 and wais
Schroeter
Bank
stock
extensive fa¬
more
the
Administration's
my
this purchase increases the
amount
of
the
bank's
common
will
him by
senior
organization.
the
of
Bank,
Corporation.
stated
98
ing
York
Victor
for
Chemi¬
strategic locations, serv¬
every
neighborhood
throughout
New
York's
five
boroughs.
of service with Na¬
years
Marine
of
and
with
City
re¬
approximately $2,500,000,000 capital funds of $190,000,-
rec¬
Sept.
on
of
name
Exchange
even
their
experienced
The merged bank will have de¬
share
new
one
the
under
Corn
of
highly
cilities for every
ment."
additional
shares would be offered at $52.50
per
and
provide
Under this pro¬
2,500,000
combination
Midland
in
available
adequately. I want to emphasize,
however,
that
my
Message
of
March 30, 1954 to the Congress
on this subject remains
firmly the
1
ate beneficial interests in the cap¬
to
along
bank
tion of
entitled
eco-
Jf® PJ°T
tTcSSSS well
chiefly with the field
Com¬
Trust
&
Utica, N.
became
correspondence^-
released,
cerned
With respect to the foreign
Aug. 26 nomic P°licy asPects ?j
on
not
of the country and with the de¬
velopment of Greater New York.
be
to
are
Denver, Colo.,
c
*
First Bank
of
pany
closely with the industrial growth
registered holders of which shares
The temporary White House
at
with the trust company.
identified
been
his posi¬
Secretary, Sav¬
ings Bank Life Insurance Council'
century both
a
have
1.
will resign
it is an
relations
says
necessity to build stronger economic
between ourselves and the free world.
.,
Vice-President,
Executive
in New
could supplement each other more
than
Chemical
and
Corn
Ex¬
mended
the
are
Hand
as
correspondence with Harry A. Bullis, he
imperative
executive,
who will join the bank on Oct.
tion
In
Rochelle,
appointment
business
new
James
r
The
Eisenhower Upholds a More Liberal Foreign
Economic Policy
»
dent of The
-
i
♦
Bushwick
Thursday, September 2, 1954 ~
...
to
The Financial
to
Staff
Chronicle)
FRANCISCO, Calif.—John
Leeper
-
with Davidson & Co
^5 Sansome Street, members of
the San Francisco Stock Exchange.
Volume
Number 5356
180
.
.
.
The Commercial and Financial Chronicle
(883)
Yet
industrials
the
when,
THE MARKET... AND YOU
couple of
beatings
severe
control of the
this week gave the stock mar¬
ket its stiffest test of the year.
house
For
of the
the
stant
month
industrials
made;
progress
so far in
to
came
the
con¬
every
1954
finally
end, at least tem¬
an
porarily, in August, with ir¬
regularity until the Labor
Day weekend is out of the
the best that could be
way
expected.
—
\
i
STREETE
By WALLACE
A
downtrend, the rails
from
the
impetus of strong rumors
had
budding fight the issue
crossed
has been
few
some
:
■
_
the
line
80
but
retreating since with
In only
determination.
some
a
large mail order
underway. Under
was
far tion
g.
,
.....
;;
...
.
,
troubles
on
indus¬
the
to
.
time
those
bound,
an
was as
do
yield
to
of
the
the group
tive'sale Aug. 31
ing became general. Volume,
however, showed no drastic
increase and,
proposed
ward
now
for
some
time and
of Youngstown Sheet entirely willing to slump
and Bethlehem Steel and when the going is rough for
neither was of much comfort the market generally.
merger
market-wise
Both
ers.
to
their
were,
bellwethers
among
that
*
follow¬
have
The
the
re¬
*
❖
chemicals
mostly
worthy
were
on
note¬
the dour
treated
10% or more from side. Virginia Carolina Chem¬
in fact, held in the best prices of the year.
ical, a recent skyrocket,
the lower range
bf the recent
"norm."
/
*
*
the
to
.
:
*
$
Motors Give Some Comfort
*
offered
Motors
American
a
of
bit
logically came in for some
profit-taking that forced it off
hard from its newly posted
Telephone was
year's high. Allied Chemical
the weaker issues in solace, Chrysler able to inch was also dropped some 10%
ahead
despite general market off its year's high by rather
the investment section of the
list. On top of losing a couple debility while Mack Trucks, persistent selling, despite a
of points last week, it lost which was handled-roughly rather heavy concentration on
when a merger with White
even more in a couple of ses¬
the issue by analysts as one of
Motor fell apart, was able To
sions this week with some of
the behind-the-market items
carve out an impressive gain
the selling ascribed to
•around.
J
;
the
among
weight of a large block hang¬
ing over the market.
*
" I
.
'
5*
.*
even
the
when
market
was
-
*
*
*
:
7
*
There
Former Leaders Chief Targets
T
;
softest.
that
was
heaviness
some
'
•
'«.
ing
will
from
used
be
its
parent
was
-time in two
of
The
debentures
of
the
selling that forced
handful of points at
its worst this week, and car¬
to
help replace the $9,000,000 such
withdrawn from the cash box
company,
Southern
Bell
Telegraph Co. is
business
cation
of
Utah
to
finance
of
California which
a
as
c'ently suspended, Fedders
ried it to roughly a dozen mine. There was also a block
Quigan, Pfeiffer Brewing and
of 33,200 shares of Union Oil Southwestern Public Service.
points below its year's high.
*
•
.
The
Falling Aircrafts
Aircrafts
for
it.
were
through
ing.
;.
was
put The
latter,
via organized trad¬
:
sue;
build
prime targets
a
up
a
range
of
to
be
*
*
*
throughout,
These large bundles, prob¬
Douglas being forced below 80 ably by what is no; coinci¬
I... The Technical Side
from its year's peak of above
dence, seemed to center on oil
On the technical side, the
92 and Boeing landing at a issues and
helped cut short
level a dozen points under the the new-found
general
market decline was
popularity of
best seen in
1954. At one the
group following
recent hardly a surprise, nor was the
•
of the selloff, no less price increases: Texas Gulf fact that the 340 level failed
to
hold for the industrials.
than Boeing, Douglas, Gen¬
Producing, which had added
After
an
improvement
of
eral Dynamics', and Bell Air¬ some half a dozen
points last
craft appeared simultaneously week at best, turned around nearly .100 points in the in¬
dustrials a technical correc¬
in 4he casualty column with rather
abruptly and in a few
losses of three points or close sessions lost the entire im¬ tion,-far from being out of
order, actually was overdue.
to it, while Republic, Grum¬
provement in a rush.
Opinion is divided over where
man,
Northrop and North
:!s
*
*
American Aviation c o i n c isupport will be encountered
Those Contrary Rails
with one school holding that
dentally were sporting minus
points—
graphic proof of concentrated
Rails continue to
contrary
*
*
*
streak.
They
a
had
a
base is imminent while the
chart
element
.
sees
a
the
first
to
ment still favors a
resumption
early in August. And
Montgomery Ward has had
they did it on somewhat of the bull swing eventually,
a rather bleak market course
with
at
least
one
market
since it was officially revealed greater daily weakness than
that shown by the industrials. anaylst talking quite glibly ®f
that a proxy fight to change
low set
the
principal
a
Mer¬
engage
business.
Mike
the
in
firm.
sub¬
Joins
Carroll, Kirchner
w
(Special
to
The
Financial
DENVER,
Wiesner
has
Chronicle)1
Colo.—Alfred
A.
associated
become
with Carroll, Kirchner & Jaquith,
principally
New
He was
formerly with Boettcher & Co.
tele¬
Investing Course Announced
School
for
Social
Research
announces
a
course,
Economist
Inc., and
of
Prentice
author of
Hall,
the
cur¬
rent best seller "Your Invest¬
ments,"
beginning
Thursday,
Oct. 7 at 5:30 p.m.
The series, subtitled "Man¬
aging Your Money in Today's
Market"
offers
practical in¬
guidance to all con¬
vestment
with
cerned
capital.
a
the handling of*
Emphasis will rest on
realistic
vestment
on
as
appraisal
opportunities
the
avoidance
chological ^foibles
of
in¬
as
well
of
and
psy¬
statis¬
tical pitfalls.
Among
A.
Wilfred
May
the
special
topics
Dr-Leo Barnes^
how to
read the financial and business pages; opportunities in common
stocks and other types of securities; estate planning; and whether
successful market forecasting is possible.
investment
are:
lation; how to choose
your
The instructors will advise
students throughout the
versus
specu-
broker1 and other
on
advisers;
special problems of individual
course.
(T
We
are
the
completion of the sale of
pleased to
announce
1,000,000 SHARES
of
;
ST. SIMEON
URANIUM CORPORATION
(No Personal Liability)
Currently Quoted Under 30c
BOUGHT
—
SOLD
—
QUOTED
possi¬
decline bility of a decline to around
through the previous reaction the 320 level. Major senti¬
been
attention.
display
is
in
Building to
securities
the
stage
signs of around two
offices
Bank
the
conse¬
quence.
J liquidation
$13,049,538.
"Your Investments," by A. Wilfred May of the "Commercial and
Financial Chronicle," formerly of the Securities and Exchange
Commission and Treasury Department, and Leo Barnes, Chief
newly listed is¬
hasn't had much time to
was
furnishing communi¬ Ine., Patterson Building.
New
-
were re-
31, 1954, operating
aggregated $111,939,404
with
cantile
Telephone
&
in the
American Motors, on
uranium
of
Engineering Assoc.
formed
engaged
services,
The
company
revenues
DALLAS, Tex.—Finance Engi¬
neering Associates, Inc., has been
part, at regular redemption prices
ranging from 105.368% to par,
plus accrued interest.
that for the first
months the daily
which dividends
Fin.
option
in whole or in
,
a
at
the
company
proceeds will
are
operating
and net income
Abraham
ject to redemption
for
and
programs
March
poses.
logical selling targets on fering and Atlantic Refining second valid lead taken by the
a I setback
were
borne out which was under the weight bear side all
year. The regu¬
fully. Du Pont, particularly, of a 280,000-share disposal lars that have been repeaters
felt the brunt of some con¬ from Atlas Corp.'s portfolio on the new lows list include
off
total
in
the
centrated
out¬
organization,
the
by new lows ran ahead of the
Earlier predictions that the heavy off-board offerings; nbw
highs. Discounting the
issues
which; had done the notably Jersey Standard-Oil
period early in the year when
which
had
to
contend
with
a
most
to
keep the advance
the 1953-54 prices were used
going for 11 months would be 100,000-share secondary of¬ for this yardstick, it was the
it
television
be used for general corporate pur¬
exaggerated
was'
and teletypewriter
for the transmission of radio
and
revenues
approximate $52,000,000 at the
the proceeds are received.
balance
and
private
$432,062,692 and net income of
$50,954,432. For the three months
time
The
service,
service
facilities for
use,
had
American Telephone & Telegraph
Co. These advances are expected
to
switching
and
For the year 1953,
was
repay
within
other purposes.
the financ¬
to
terri¬
points
radio-telephone
line
ended
proceeds from
service
its
line telephone
101.70999%.
One result of the corrective
selling
on
toll
within
between
services
competi¬
a
bid of
at
and
rural
about
issue
standing advances to the
issues which have been back¬
by
Net
interstate
points
mobile
■
Award
fur¬
was-
and_ points outside its territory in
Stuart
&
Co.,
Inc.
headed a syndicate which on Sept.
1 • offered
$55,000,000 * Southern
Bell Telephone & Telegraph Co.
35-year
3%%
debentures
due
Sept. 1, 1989, at 102.368% and ac¬
interest,'
and
conjunction with other companies;
teletypewriter exchange service,
Halsey,
3.015%.
31, 1954,
4,322,828 tele¬
service
furnishes
Halsey, Siuart Group
Offers Telephone Debs.
crued
in
between
tory
occasional re¬
persistent as its
Carolina
nishing local service in 1,037 ex¬
change areas. The company also
I
f
.
South
had
company
phones
necessarily at any
those of the
They are presented as
with
logic
tention
this
not
strength
estimates that the Fall independent
Attempts to lay the setback pickup in business would be throughout July and August.
to the end of the European less than
anticipated. To these A measure of this could be
Defense Community strained
predictions there was this blamed on the natural gas
selling followed the breaching
of the previous reaction low
at the 340. When it appeared
that this previous resistence
level would not hold, the sell¬
in
expressed
the author only.]
of
Carolina,
and Tennessee. On March
■
try
week added the anti-trust at¬
North
the
coincide
Chronicle.
•
bit and the more ac¬
cepted version was that the
service, in the States 6f
Alabama, Florida, Georgia, Ken¬
tucky,
Louisiana,
Mississippi,
heights of
won
a
phone
if specula¬
more
views
article
rjs
*
ijs
i
having withuionly
have*been
rises
[The
_
own
or
spectacular in the sell- past bull markets.
Missouri-Kansas-Texas
preferred, in fact, was able to
keep nudging its 1954 high a
peg or so higher despite the
weight elsewhere. The popu¬
larity of the latter stems from
a new attempt to work out a
recapitalization plan for the
road.
%•
yi .■
n
sibly 600
trading sessions it lost
Utilities, however, took the
10% of its peak price, t.
heaviness seriously and the
7
*
*
*
retreat of the utility average,
-Steels
their
were
level of 450 to 500 and pos¬
a
"confirmed" the intermediate
15
PHILIP GORDON & CO., Inc.
INVESTMENT SECURITIES
39 Broadway, New York
6, N. Y.
WHitehall 3-7840
J
(884)'
16
The Commercial and Financial Chronicle
LETTER TO THE EDITOR:
Oar Current Economic
trading
present
and the
wages;
clearly indicate that the ma¬
jor body of this nations consum¬
tax
curtail their
income
in
in
any
earlier
period,
with
the
recent
than
years
exception
of
the
sav¬
be
sharply
months.
prevailing
actual pattern as we move into the
closing months of 1954 is sharp,
stable
consumption
high
accompanied
i d
of
R.
M.
1
u a
Gainsbrugh
middle,
in
mass
consumer
only
taxes.
World War II.
1951-1953, the corre¬
rate
of
savings
was
years
sponding
slightly above
recession
of
rate
7%.
Despite
business
or
of
ment
In
the
readjust¬
year,
the
past
savings has
the
continued
at
this
historically high plane. Pre¬
liminary estimates for the second
quarter of
1954
recently released
by the President's Council of Eco¬
nomic
Advisors place
the rate of
the
loan
and
excepting
savings of
Labor
Income:
It
is
doubtful whether in all man's his¬
tory
historic
a
be
parallel,
found to match the upward surge
since the turn of the century in
the wage received by
the
average
American factory worker.
early
the
of this 20th Century
years
average
hours
54
In the
wage
week and
per
worked
earner
received
in return about $11 in his
weekly
somewhat lower than the rate for
in 44 hours
the first quarter but well above
the "noun" for peacetime years.
received only about $25 per week
in return.
Contrast this with his
;of past savings through the proc¬
ess of
inflation and the recogni¬
tion
of
consumers
that a higher
savings out of current in¬
of
rate
come
was
to offset the
necessary
shrinkage in purchasing
power
their
the
past
savings;
(2)
of
high
capital
formation
which
simultaneously
provided ready outlets for savings
and a higher reform or reward for
thrift; (3) the sharp increase in
rate
of
construction
and
mortgage
debt
and
credit, which in turn
to
consumers
rising
set
required
aside,
proportion
of
to meet interest
come
consumer
(save)
their
a
in¬
charges and
fixed
payments
(4)
"cultural' lag resulting from
a
such debt and
on
the
that
received
pre-World War I
despite a cut of about 10 hours per
week in labor's input of time.
True,
taxes
middle
income
groups
and
have
yet
to
acquire
the
spending patterns of such groups.
Professional opinion is still di¬
vided among economists, as to the
possible permanency of this higher
savings
rate.
Meanwhile,
it
should be recognized that the
high
rate of savings has enabled in¬
vestment in
plant
and
houses,
factory
new
industrial
equipment
to
continue,
thereby
contributing
significantly to high employment
and
of
the
the
maintenance
millions
of
of
incomes
workers
em¬
ployed in the capital goods indus¬
tries.
personal
savings
have
continued high during this reces¬
sion,
too
so
has personal
Consumers are
sumption.
cession
began.
durables
these
Expenditures
used
to
allow
be
for
but
such
best
as
increass
times what it
reductions
have
been
tion and other services.
Thus
the
saving spending fig-
was
a
half
statement
presented
before
by
Dr. Gains¬
the
inaugural
session
of the Ohio Savings and Loan
Academy, Granville, O., Aug. 14, 1954.
ists
to
sufficient
suggest
technical
a
peted
"long term uptrend in
earnings," pointing to stiff com¬
petition for each dollar of even
ex¬
correc¬
tion of intermediate proportions.
The market has been in
ing range between 340
(D-J Industrials) since
a
a
and
352
July
23.
(g)
Government
the
over
not be
next
point
correction
rise
since
__
,
of
last
by
96-
the
or
as
Box 195,
Hurleyville, New York
Aug. 28, 1954.
F. I. F.
(Special
so
September.
reasons folloW.
A
great deal of
selling
(profit-taking)
has taken place
the beginning of July. This
The
Financial
Chronicle)
Colo.—Francis
J,
Keily has become affiliated with
F. I.
F. Management
Corporation,
Sherman Street.
may
Three With F. I. F.
peter
may
(Special
boom,
Election
out
year
Although the election this
year will be considered import¬
ant, the Administration may de¬
,
Management Adds
to
DENVER,
many are
economic
Presidential
yours,
activities
year
favorable
as
other¬
SAMUEL PENSKI
444
rising demand.
trad¬
indicates
Very truly
to question the heretofore trum¬
opin¬
evidence
beginning
are
parket until
it
as
to
The
Financial
Chronicle)
NEW
ORLEANS, La.—Wallace
R. Ousse, Henry F. Thompson and
Carl M. Wicks have joined the
staff of F. I. F. Management Cor¬
poration, Humble Building.
since
living
century
Is the Stock Market
is shown not only by the extraor¬
dinary turnover without
increase
a
Norman
by the
of
"latev
in
very
become
Yet
scarce.
implies
the
part is due to shrinkage in the purchasing power of the dollar is
difficult to decide, but it is safe to
say that the rise is due in a
large
"Were
thus eventually the market should
break downside.
(2) The blue chips
—
to what is
measure
commonly referred to as inflation.
to determine with any degree of accuracy
exactly bow much the dollar has shrunk in average purchasing
power, we could measure the rise in stock prices accurately, but
the charts
depicting credit inflation and price trends are con¬
flicting.
process
shifting of stock from
strong hands to weaker ones, and
a
investment
stocks of
it possible
semi-investment
or
of the dollar.
power
"The Dow-Jones industrial
average reached 352 on Aug. 19—
a rise of 231
points since 1939.
Just what part of this rise is due
to legitimate increase in values
plus speculative fervor and what
the market stop it in
But, stocks still being
strong
hands,
selling
lets up as soon as bids
pressure
values since 1939 is due in large part to
shrinkage of the purchasing
under
tracks.
of
cate the rise in stock
Apparently, when buying comes
in, offers stop the market in its
tracks; and when selling occurs,
bids
Steelman
Lilley & Co., members PhiladelphiaBaltimore Stock Exchange, presents statistical data that indi¬
extraordinary
number
tapes" for the period involved,
namely: 11 (by my unsure count).
its
Top-Heavy?
relative
in price, but also
*1939
1954
Increase
grade—have been fully, even ex¬
100
170
cessively
perhaps,
marked
They may be expected to
up.
200
450
125%
go
110
240
118%
100
190
through
tion
a
in
neriod of price
order
to
enable
correc¬
them
to
perform
If
quality stocks are unable
advance, why should stocks of
quality do so. General Elec¬
tric, which has sparked the market upward since last September,
♦The
reached
year
their
"In
chosen
is
face
of
tive estimate would
be taken
as
example of
chip.
In
an
blue
Line"
said
of
is
the
last
year
these
in
which
indexes
all
started upward.
conflicting percentages,
we
j
f
only
can
estimate of shrinkage in the purchasing
since 1939, and in the opinion of the writer, a
money
over-priced
that
an
lower
an
because
approximate lowest level of the century and
the
to
resort
1939
to
may
90%
-
The thought involved is:
top
70%
j.
power
of
conserva¬
be
50%.
In other words, it takes $2 to buy
what $1 bought 15 years ago. Had the
purchasing power of money
remained constant since
1939, the Dow-Jones average would now
be somewhere near 176 instead of
352, and
or
45%, in stock prices would
view
of
the
to
seem
tremendous achievements
a
rise of only 55 points,
be
very conservative in
accomplished by industry
since 1939.
during the past year is
stability
of
the
average
weekly pay-check in manufac¬
turing. Despite the loss of over¬
ings
"The following tabulation illustrates the results of this for¬
mula when applied to the current levels of individual stocks:
time
3-for-l
has
also
relatively
gone
and dividends are in sight
this year; the current price of 100
represents
of
an
excessive
the favorable
discount
average
day
investment grade stocks are in the
related
defense
numerous
and
industries, official figures
recently
released
indicate
that
weekly earnings are to¬
virtually at the peak levels
earlier
achieved
in
1953.
The
weekly paycheck for June of this
year average $71.68. This was the
same
the average paycheck re¬
as
ceived during the full 12 months
of 1953 and only
slightly below
the
for
corresponding figure ($72.04)
June, 1953.
Farmers'
Exchange
Position:
have,
contracted sharply in recent years
and may continue to do so in the
far
ahead.
However,
the
exchange position is still
better
World
than
War
II.
it
before
was
' With
the
same
physical
quantity of agricultural
products today as in 1939, the
farmer
more
still
can
goods
and
markets
command
than
he
20%
a
standard
this
and
badly in
only is
fact, but there can be little
of
a
doubt
correction.
that
stocks
are
those
aware
is
Not
interested
in
of it.
(4) While the action since early
July is no doubt a part of the base
for
the next move in the major
trend, it is highly unlikely that
any action above 352 (D-J Indus¬
trials) would be supported with¬
out
a
searching test of support
underlying the current trading
range.
(5)
Conditions external of the
pre¬
been
also cost
wheat, to
six-room
before the
September,
need
could
It would
him 9% less, in terms of
build
last
market appear bullish as a whole,
but in recent weeks doubts have
example, he needs 36%
less wheat
today than in 1939 to
buy a given piece of farm ma¬
chinery and 26% less to buy a
house than
than one-third in value since
war.
frame
raised
strength.
(a)
to
its
underlying
For example:
as
President
Weir,
of
Na¬
tional Steel, has erased the idea
of an increase in steel demand
been
(c)
Loans
40
—Appreciation due tn-—
+Aug. 17/54
Incr. Value
Inflation
68%
28%
68%
24 %
811/2
40%
16%
40%
13
43%
21%
8%
19%
681/2
341/8
15%
17%
Westinghouse Elec. 2714
541/4
271/s
9%
36%
68
34
6%
40%
General
Electric
S.
Steel
♦Adjusted
"The
to
____
subsequent split-ups.
dollar has
22
33 y8
tAdjusted to the 1939 dollar.
depreciated
more or less steadily since our
inaugurated.
Anyone who has
lived long enough to know what
things cost 50 years ago will
recognize that as true, and anyone whose memory does not extend
so
far back, can find statistics to
verify the statement.
There
have been short periods when prices fell and the
purchasing
power of a dollar rose, but they were always of short duration.
present
Even
fect.
monetary
the
drastic deflation
Prices
chasing
power
like
"Have
a
of
the
1930's
of
always risen again
money over
had
and
the
the past 50 years, would look
stock market chart in
very
reverse.
fear that the inflation
no
of the dollar
was
only temporary ef¬
trend has always
A chart depicting the downward trend of the pur¬
have
been upward.
much
system
at
some
date in
the
is going to be squeezed out
future forcing stocks to adjust
themselves downward accordingly.
Nothing short of
such as we experienced in the 1930's could
a depression
bring that about, and
another
such
depression is most unlikely.
After
two
disastrous
world
wars followed by Korea, we have learned how to maintain
constantly high level of prosperity and avoid depression.
The
lesson is not likely to be forgotten, and its
application must neces¬
sarily result in continued inflation.
Only through the discovery
of some magic formula, could we hope to stabilize the
dollar, let
a
alone restore it to its former value."
this Fall.
(b)
Aug. 17/54
137%
U.
(3) The market, as measured by
the D-J Industrials, has increased
more
Pont
General Motors
Sears-Roebuck
situation.
same
cur¬
For
♦Aug. 29/39
du
the
now
in
services
-Closing Sale-
prospects." Split
since
then, the stock is
equivalent of 130, and
has already been the equivalent of
145.
To a large extent the other
in
passenger car.
summary
that
my
(f) Economists
the
time
wise.
this stock: "Although record earn¬
rent
offset
ion
March 1954 "Value
war.
*A
in
can
ago.
more
brugh
we
costs, it remains true that the real
'income of
today's wage-earner
Ghat is his actual command over
goods and services) is two to three
months
furniture,
etc.)
by about 10%, but
major term trend, it is
on
market.
by a higher rate of
spending for rentals, transporta¬
than
today
prices,
sharply above what they
are
farmer's
(cars,
declined
bullish
too,
cur¬
for
still
am
than in earlier decades and
con¬
rently spending at an annual rate
equal to, if not above their peak
outlays a year ago, before the re¬
have
higher
are
Farm prices and farm income
While
While I
their function of spark¬
ing the advance of the rest of the
the
to
week and
per
of hourly earnings
multiplied nearly nine¬
fold—from 22c per hour in 1914
to
about $1.80
today.
And the
weekly paycheck is fully six times
unnoticed
levels
is doubtful.
the New York stock market.
been
been
subsistence
more
average
has
bution—millions of families have
the
or
the last and current year. Within
little more than one
generation
What
from
As late af 1929 he put
paycheck of about $72 in
average
the drastic shift in income distri¬
lifted
on
such
(1)
paycheck.
Among the various factors be¬
the bulge in savings habits
are:
(1) loss in purchasing power
opinion
out:
(e) Any favorable trend in
foreign trade in the near future
reader) bold¬
my
It will
—
year,
abnormal
in
Trends
savings
employed by
income groups—
peak
any
of
personal net savings at about 7.1%
hind
unum
express
1956.
as
personal
to
technical
rate
a
income,
after
pluribus
e
points
As
to decline.
the
as
savings
fell
just short of 5% of all
the
(an
ness
This
that bullish forces
(including rallies) will be absent,
"Stocks (of goods) still are high
alongside shipments."
(d) Unfilled orders continue
this
in
other forms of thrift
largely in savings and
rate
that
experts, only
people with varying degrees of
ignorance. This thought gives me
no
now,
the
v
said
are
supported
t i
indi
been
mean
but rather that bearish forces will
be dominating the
eliminated.
Week"
As
by
peak
has
been
thinking.
ac-
i t y
It
yet
"Business
intermediate term.
an
does not
intermediate technical
an
not
Chronicle:
world there
turn downward from
a
eventually, I believe, break
out of this trading range down¬
side, for an intermediate term
economic
v
picture
inadequacy of
II
in
level
-
the
employment
current
not
the
consumer
other years of
high
will
in
and
War
1929
income
their
purchasing power cur¬
rently which requires income sup¬
plementation through emergency
governmental action. Instead the
goods
World
that
does not suggest an
consumer
in
living standards. Ap¬
they
continue
highly
confident
Certainly
during
shortages
of
parently
curtailed
ings
the
have not found it necessary to
and
"en¬
forced"
ures
ers
indicated that it would be bearish
96-point rise since last September.
Editor, Commercial and Financial
Savings: The average
American family has been saving
a
higher percentage of his after¬
for
reasons
indicating
range,
correction of the
farmer's improved long-term exchange position.
Personal
easy
early part of July, the market has
over
Samuel Penski gives five
Gainsburgh analyzes the bulge in savings habits; the
in American workers' factory
with
My conclusion is that since the
For Technical Correction
Chief Economist, National Industrial Conference Board
surge
while before in¬
a
economy
money, easy credit, and fabu¬
lous government contract work.
Sees Stock Market Due
By MARTIN R. GAINSBRUGII*
upward
cide to wait
jecting the
And Financial Problems
Dr.
Thursday, September 2, 1954
...
to
business
have
declining contraseasonally.
Inventory problems have
Lilley & Co.,
Packard Bldg.,
Philadelphia, Pa.
NORMAN STEELMAN
(
■"'
Number 5356
Volume 180
The Commercial and Financial Chronicle
.
Britain's Business Boomlet
Disputes Einzig's Views on
League,
State Chairman of the Gold
principle that in these days the
in Britain no longer is related to
opposes
of the gold reserve
size
of the circulating note-issue.
amount
Editor, Commercial and Financial
Chronicle:
The article
by Dr. Paul Einzig
19, entitled
in your issue of Aug.
report rendered in 1931, made
this
significant statement:
Einzig
re¬
world
Circulation,"
is
garding
British
causes one
Note
to wonder
backed
rencies
dark
ages
—
f
**'•
v
■§
as
thing
again
only
was
the Gold Standard.
"Twenty-five
ago, during the days of the
standard, this rising trend
the
have
would
issue
note
among
concern
2009
He
show
that
concerned
seems
England's
of
"Bank
New Haven 15, Conn.
increase in the note cir¬
an
to
culation
all
for
records
new
time." And well he might be; for
printing-press money, lack¬
mere
for
any nation—as it was for France
in the 1790's, and for Germany in
ing gold-backing, is dangerous
The Federal Home Loan Board
yesterday ( Sept. 1) offered,
through
Everett Smith, fiscal
$119,000,000
amount
of
banks
series
Loan
B-1955
con¬
of
demand
such
Industrial
increase,
of
now
the
of
past
gold
hfstory. The size
longer
no
reserve
plays a part in Britain in
mining the note issue." If
deter¬
this is
atten¬
do we pay any
tion
to current claims that na¬
tional currencies should become
true, why
Certain¬
ly the American dollar is "goldbacked," in so far as our dealings
freely inter-convertible?
banks and countries
with foreign
concerned; for the American
a "value" of l/35th
are
dollar carries
of
of fine gold, and
ounce
an
is
partici¬
notes
will
from
the
sale
of the
provide funds for re¬
tiring $55,000,000 of 1.15%
series
E-1954 consolidated notes on ma¬
Sept. 15, 1954 and for
additional credit avail¬
able by the banks to their mem¬
turity
on
making
ber institutions.
The notes
are
the joint and sev¬
obligations of the 11 Federal
Home Loan banks and are legal
eral
"redeemable" to foreign¬
U. S. Treasury at $35
are
ers
at the
an ounce
will
I hope America
of gold?
become
never
simple
so
as
Upon completion of the offering
retirement of the notes due
Sept. 15, outstanding consolidated
obligations of the banks will total
$179,000,000.
Einzig
a
...
is
circulation
rise in the note
generally regarded as an indi¬
cation
of
an
policy,"
tary
that
nothing
indicates
For
inflationary
money,
my
countries"
are
"in
Britain it
kind."
"backward
the
of
the
on'
mone¬
far
N. Y. Hanseatic Wire
wire
to
Harris & Company, Inc.,
Fairman,
Chicago,
Illinois.
If
Einzig
Dr.
really
wants
to
promote a return to sanity in in¬
ternational finance he will lend
his
support to a proposal made 23
years
by a committee of 14
British economists and
into thin air
There
Exchange
Weekly Firm Changes
Howard
Corlies withdrew from
limited partnership in H. T. Carey,
crowded.
are
holiday
summer,
Crowds
are
surging day after day in the shop¬
ping centres of London. Evident¬
ly there is plenty of money to
spend and it is being spent freely.
One
characteristics
the
of
most
entirely
mand.
on
It is true,
industries
are
of
engaged in substan¬
But
in¬
by privately owned in¬
barely exceeded replace¬
requirements
does
de¬
consumer
the nationalized
expenditure.
capital
not
show
in
1953, and
expansion
much
this year.
to
High taxation continues
risk-taking invest¬
It may take some time be¬
discourage
ment.
fore the continuation of the pres¬
capital expenditure
new
on a
really large scale.
The British
goes a
iting
experience
of\^954
long way towards discred¬
the , prevailing fashion in
economic
according
to
busi¬
ness activity depend overwhelm¬
ingly on the changes in the vol¬
theory;
which the ups and downs of
ume
of
capital expenditure.
This
"mystique" of capital investment
was
William Turnbull withdrew from
limited
partnership in Harris, Upham & Co. on Aug. 31.
J. L. Donahue Opens
(Special to The Financial Chronicle)
DENVER, Colo.—John L. Don¬
ahue
is
engaging
business from
teenth Street.
in a
securities
offices at 430
in the thirties.
special significance to
spending on capital goods, which
is supposed to be the source of
all prosperity. For some obscure
It
attaches
reason
which has
quately
Six¬
never
been ade¬
Keynesian
explained,
economists think there is
a
funda¬
mental difference betewen the ef¬
fects of
Joost & Patrick on Aug. 31.
is
once
logical reason, how¬
no
The
British prosperity of 1954
been brought about by
not
any
boom
of capital investment.
largely, if not entirely, the
is
result of
increase of consumer
an
capital
goods.
former
an
increased speeding on
goods and on consumer
The amount spent on the
is re-spent again and again
by its recipients. To use the jar¬
gon of economists, it produces a
"multiplier" effect which is sev¬
eral times larger than the actual
amount
originally spent
goods.
On
amount
the
spent
other
on
on capital
hand, the
increased
buy¬
ing of consumer goods is supposed
to
produce
no
such
effect;
the
being able to get
unchanged wages.
nothing spectacular in
their
There is
the
of
form
for
more
British
business
boomlet.
It
is
true, it is accompanied by a
steadily rising trend on the Stock
Exchange. But there is no indi¬
cation
that
in
excessive
of
would
speculation
threaten to culminate
slump.
a
is
Nor
feverish company
there
any
promoting
-
ac¬
tivity.
Indeed, as we saw above,
capital investment is deficient
new
has
It
the
in
it is exercised.
ever,
rather than excessive.
is not
reaction in
a
The danger
deflationary
a
but the degeneration of the
sense
boom
moderate
into
revival of
a
strong inflation.
spending.
mand for
consumer
additional
then
be
will
investment
largely the effect of the
boom and not its cause.
R. H. Whifacre Joins
J. G. White S Co.
Robert
H.
officer
an
Bank
of
joined
Whitacre,
G.
White
ority of capital expenditure over
consumer
expenditure as the
United
wealth
of
seems
that
it
and
is
prosperity.
matter
a
of
undoubtedly initiate
embarking on large
capital expenditure, leading to the
creaton of additional purchasing
bond
' %: •:;/ > v -ft
States
depart¬
has
it
a n-
nounced.
Whit¬
Mr.
may
acre, a
former
Secretaryof
Treasurer
Arizona
power
the
of
Bankers Asso-
and to a resulting increase
consumer
demand.
On
the
/',
Government
cycle is initiated on the producer
side or the consumer side.
Pro¬
by
y
and municipal
been
boom
'■
the
in
City,
ments,
a
,
York
New
complete indifference whether the
ducers
has
Company
&
Incorporated,
37 Wall Street,
source
National
Phoenix,
Arizona,
J.
formerly
First
of. the
experience is liable to un¬
dermine the widespread supersti¬
tious belief in the alleged superi¬
This
Robert H. Whitacre
hand, consumers, too, are ciation, is a
in a position to take the initiative graduate
of the University of
by receiving higher personal in¬ California, A.B and M.A. in Ber¬
come or by spending more freely.
keley.
From 1936-1944 he was
The ultimate result is the same, Assistant
Secretary,
California
other
no
matter at which end the boom
originates.
Bank, Los Angeles and from 19441948
,
in the U. S. Government
was
bond
department of the Bankers
peculiarity of the Brit¬
ish business boom of 1954 is that Trust Co., New York.
i*
so far it has not lead to any de¬
Another
j
terioration of the balance of pay¬
In spite of the
ments.
increase of
well
of in¬
Robt. W. Rich With
domestic demand exports are
The
maintained.
increase
capable of meet¬
additional domestic de¬
mand, so that there is no need for
diverting manufactures from ex¬
port trade to home markets. This
does not mean, however, that it
would be possible to maintain ex¬
ports if domestic demand should
further increase to an appreciable
extent.
The index of industrial
Heller, Bruce & Go.
dustrial output is
ing
and the index of wages
watching
carefully.
For
the latter rise materially
output
need
of
payments would be bound to suf¬
above
the former, the balance
rejoice under the wishful impres¬
sion that it has become possible
to eat our cake and export it.
Yet
another interesting feature
the
boom is
place without the
inflation in the
present domestic
that it is taking
stimulus
of
an
ordinarily accepted
much
Too
term.
&
there
was
sense
money
an
sellers' market, owing
of the
is no
has
period.
not
been
much
post¬
Monetary expansion
stopped
reduced
In the absence of
altogether,
pace.
the irresistible
for higher wages, due to
overfull-employment, the increase
pressure
1929
from
the
in
was
securities
to
1946,
save
for the
1943-1945 when he was in
miiltary service.
More recently
he has been teaching at Rutgers
years
University in New Jersey and at
Punahou School in Honolulu.
Pittsburgh Bond Giub
Annual Fall Outing
Bond
will hold their
Annual Fall Outing at the Alle¬
PITTSBURG,
Pa. —The
Club of Pittsburgh
gheny
County
Sewickley,
1954."
Club,
Pa., Friday, Oct. 1,
W. G. Nielsen
all-round
put seems to keep pace with it.
"Creeping" inflation is still in
progress, but it is now creeping
a
San
Heller, Bruce
business in Boston and New York
BURBANK,
Gram
Nielsen
is
Opens
Calif.—Walter
engaging in a
securities business from offices at
212 East
but, judging by the stability of
prices, the expansion of the out¬
at
the
joined
of
Mills Building, as Man¬
of the Trading Department.
Rich
Mr.
to the mon¬
etary expansion of the early
war
has
office
Co.,
ager
longer chasing too few goods. In
the days of Dr. Dalton's Chancel¬
lorship
Rich
H.
ert
Francisco
premature to
is therefore
It
fer.
of
SAN FRANCISCO, Calif.—Rob¬
the
should
initiated by Keynes
New York Stock
ago
eminent
luxu¬
in modern economic literature
sounder
ground than the "advanced coun¬
try" in this matter of "note issue."
resorts
late
Britain
credits
Higher
ent business boomlet would stimu¬
with
The New York Stock Exchange
being an "advanced country"; but
has announced the following firm
says that "in backward countries
changes:
Dr.
1952-53.
this
ment
and
private
provisional
spite of the bad weather
other
to
question,
of "the amount of the note issue,"
In
dustries
direct
the
on
untaxed profits on
and
conditions
tial
of many States.
sumer
It
are
classes to spend on
vestment
by savings banks,
companies, trustees and
fiduciaries under the laws
fall fob this!
In connection with this
income
insurance
Fairman, Harris
ter
goods
sets.
employment encourages lower-
for investment
Treas¬
ury, at that value.
Is it possible
that any Britisher is-envisioning
To
a
setup whereby printing-press
New York Hanse?.tic Corpora¬
paper
pounds
are
to
become
"freely convertible" into Ameri¬ tion, 120 Broadway, New York
can paper dollars, and which lat¬
City, announces the opening of a
eign agencies, at the U. S.
its
this boomlet is that is is based al¬
is
readily convertible by those for¬
al¬
increased
Exchange operations stimu¬
late luxury spending.
Steadiness
ries.
pating in the offering.
the terms
is
their
during
re¬
produce
an
profits
after
decline
practically worthless; and, in the
case of Germany, it required one
trillion post World War I marks
to equal the "value" of just one
prewar mark.
As
indicating that Dr. Einzig
regards gold-backed currencies as
something belonging to the "dim,
dark ages," I quote the following
from the article in question: "All
Proceeds
corre¬
semi-durable
for
of
dealers
on
to
television
as
100%. A nation-wide selling group
investment
less
or
The recent
beginning
the
this is,
more
effect in the form of
experience of France, came to be
in
un¬
Real
ever.
hire-purchase contracts
ready
Sept. 15, 1954 and due March 15,
1955.
The
notes are priced at
money,
a
booming.
Stock
Such
spent on! con¬
goods is supposed to vanish
power
the
during
increasing, because the
wages are
dividends
1920's.
unions
their
and
prefer to benefit by higher
productivity in the form of re¬
panied by
some
The proportion of
solidated non-callable notes, dated
the
prosperity dies hard.
more
workers
much
rise in money wages is not accom¬
extent
1953 have dis¬
principal
Home
Federal
VA%
The
Possibly the rising de¬
goods and the
rising profit possibilities will lead
to an increase in capital expendi¬
ture, as and when industrial firms
find it neecessary to expand their
producting capacity in order to
cope with the higher demand. But
trade is
FHLB Notes Offered
agent,
and con¬
tinued to
Dr. Paul Einzig
moval of restrictions
cur¬
un-
ployment that
developed i n
1952
purchasing
ex-
The
sponding decline in the purchas¬
ing power of the pound. Retail
Chapel Street,
ex¬
returns
to
d.
pockets of
employed is lower than
G. SHULL,
Standard League.
Gold
perts and laymen alike."
rent
trulj yours,
Connecticut State Chairman,
says:
much
caused
tinues
appeared.
FREDERICK
year.
p a n
historic
the
prosper¬
ployment
as
prompt return of nations to "hon¬
money—meaning, the Gold
were on
means
saving.
reason¬
a
ably
ous
Why not get right down to
and
plump
for a
Very
in
Wage-earners would ben¬
unchanged
money
wages
could
buy more goods. But the illusion
that
more
money
necessarily
Em¬
1953
itself
was
tacks
Shu 11
decline
a
efit by higher real wages if their
con¬
condi¬
in
which
est"
Frederick G.
mechaniza¬
in
result
would
prices.
why there should be such a
difference.
Any additional pur¬
chasing power, whether created
through additional spending- on
industrial equipment or on per¬
ishable goods, is likely to be respent again and again until it is
mopped up through taxation or
improvements
of evolu¬
process
from
starting
the
Einzig
whole, except
a
a
Standard?
world
of
of
brass
a
of
gold
as
result
show
over
little
be
business
tions
Why continue to dodge the real
tions
years
world
the
issue?
generation
ago that prac¬
tically all the
leading
na¬
Dr.
Most
be
Brit¬
indices
monetary
can
will
1954
war.
gold standard."
it
yet,
there
the
tion
to be revived.
And
ain since the
hope of progress at an early
date for the monetary system of
dim,
never
scientific
and
rea¬
the most prosperous year for
or no
be¬
longing to the
so m e
that
whole should achieve
a
But
system.
cur¬
as
as
sound
a
gold-
believe
to
son
I
Dr.
the
in
LONDON, Eng.—There is
"There is,
whether
Rise
re¬
ceiving higher wages rather than
perhaps, no more im¬
portant object in the field of
human technique than that the
"The
tion
.
financiers, known as the "Macmillan Committee," which, in its
very
the
and
progressive
through
Commenting on improvement in business conditions in Great
Britain, which will make 1954 "the most prosperous year
since the war," Dr. Einzig holds that this development goes
far toward discrediting the economic theory that business
fluctuations depend on changes in the volume of capital invest¬
ment.
Lays present prosperity in Britain to increased con¬
sumer spending.
Frederick G. Shall, Connecticut
output
17
duction of the cost of production
By PAUL EINZIG
British Bank Note Increase
Standard
industrial
of
LETTER TO THE EDITOR:'
(885)
Providencia.
H. C. Schneider
Opens
OKLAHOMA
Carl
CITY, Okla.—H.
Schneider is engaging in a
securities business under the firm
name
of
Herman
C.
Schneider
Company, with offices at 329?331
N.
W. Third Street.
18
The Commercial and Financial Chronicle
(886)
to
Continued from first pagt
help facilitate the coming Fed¬
eral
financing
of
about
bil¬
$10
lion.
k Look at the Business Barometers
Looking
inven¬
of
Replenishment
(2)
angle of
national point
another
at
tories.
this
Relatively strong consum¬
ers' financial position.
(4) Good first half earning re¬
of
ports.
(5)
farm mortgage loans,
(3)
Easy
policy,
money
of
assurance
with
credit for
adequate
all essential needs.
There is
be
can
able
single indicator that
no
depended
guide
The
events.
Bureau
of
after
exhaustive
an
future
National
Economic
Research,
of 800
study
series, found that eight
economic
indicators
in
reli¬
a
as
forecasting
in
economic
qpon
foretelling
most reliable
the
were
since
future,
the
turned up or
in advance of general busi¬
consistently
they
down
anywhere from 2.5 to 10.5
months. All eight are now point¬
ness,
upturn in business. But
the National Bureau has empha¬
sized that the series do not indi¬
ing to
an
the
cate
change
of
extent
corning
any
business.
in
The basic
of the recession
cause
is attributed
cumulation
the abnormal
to
of
ac¬
inventories, which
in September,
1953, reached a rec¬
ord high of $82 billion. Since then
there
has
been
reduction
a
of
about $3 billion.
picture, from
view
a
find
we
that in
the
1939
mutual savings banks of the coun¬
held
try
17%
the
of
total nonaggregating
The latest reduction in
this proportion
13.5% in 1953. In
other words, your institutions on
a national basis were losing rela¬
tive ground during this period. So
$29
billion,
but
had dropped to
also
individuals
were
called
"other
clined
from
and
holders,"
33%
that
de¬
total
the
of
so-
vestments of
banks
during this period
at
comes
which
on
time when the supply
a
funds
(1)
banks
at
has
•
Plan
since under the Mills
corporations
90%
pay
of their taxes in the
half of
first
required
were
the
(2) Large accumulations of cash
held by corporations.
(3)
Slackening in business and
(4)
in
inventories.
Competition
finance
companies
-
for
loans
insurance
Savings and loan associations in¬
per
from
from
13%
22%, while
to
companies
increased
to 23%. These figures
17%
market.
'
These factors point to
ued
in
ease
the
by
pa¬
\
'
-
contin¬
a
market.
money
The
Federal
Reserve
officials,
emphasize in a concrete way that however, do not desire that loan¬
competition for loans today is able funds become
keen and
on
superabund¬
broad front.
a
Long-Range
ant,
Outlook
ready to take up
the slack by selling Government
Outlet for Savings Banks' Funds
securities or by allowing Treasury
Based upon a report issued by
bills to run off as
they mature.
the Federal Reserve Board, nearly
Another restraining influence up¬
48% of the total assets of all mu¬
on
abnormally low rates has been
tual savings banks in the country
taken by corporations and state
were
accounted for by loans and
and municipal authorities by plac¬
over 47%
by investments, princi¬
ing
large
amounts
of
surplus
pally U. S. Government securi¬ funds in time
kept business sustained at
super-
a
long period
a
This is inevitable and
in order to correct the
necessary
by
the
period of artificial
prolonged
stripped
created
Production
consumption,
has
out¬
future in-1,
is heavily mortgaged,
come
staggering
government
have
tures
where
been
have
and
plant
expanded
about twice
point
reached
the
capacity
has
until
great
as
the
to
grown
taxes
ceiling,
while
expendi¬
it
is
now
in the
as
pre¬
period.
war
provided
forces.
ment
resist
to
Whereas
spending
deflationary
in
1929
govern¬
Federal,
—
state,
local—constituted 13%
and
tional
income,
32%.
is
it
now
of
around
tures of all kinds currently aggre¬
gate
about
$100
than
twice
the
billion,
more
or
national
total
in¬
expenditures, and in view of the
considerable
cold
made
all
in
progress
adjustment
basis,
and
the
reached
trend.
be
must
for
have
replen¬
inventory
not of itself
the
business
there
upturn
an
the
on
have
of
increase
an
goods
lines
in
reversal
To
over¬
where
completion
adjustment would
a
an
be necessary.
soon
The
assure
been
on
some
stage
ishment will
has
in
demand
of
part
indi¬
viduals, businessmen, government,
or
foreign
customers.
Various
could be used
means
stimulate
to
business revival. Among them are
new
and
better products, lower
prices,
reduction
in
easier
taxes,
terms in financing mortgage loans,
expansion
other
of
public
works,
and
recommended
measures
sources
ervoir and
are
fundamental
common
a
res¬
subject to the
same
and
eco¬
monetary
determined
not
only
mand for and the
but
also,
debt
supply of funds
with
rates
Member
ly
resisted
While
downward
bank
reserves
market
bank
money
the
are
as
lending
serves
power.
These
concentrated
at
are
re¬
the
Federal Reserve banks, and Fed¬
eral Reserve policy can exercise
dominating influence
extent
to
which
these
A year ago last spring
pressure.
industrial
■declined
production
one-tenth- in
by
has
the
market
upon
the
funds
are
rowers
etary
of
support
major
farm commodities, the stockpiling
metals
for
militay purposes,
of
^nd the rise of industrial produc¬
tion abroad
Savings Banks'
Situation
At this stage I shall temporarily
■depart from the general economic
.
theme and
the
present some data on
position of mutual savings
banks
The
were
nancial
land
in
in
comments
as
loans
assets
banks
31%
well
as
mortgage
and
of
mutual
about
24%
institutions
1953,
as
on
investments.
in
savings
of
all
fi¬
New
Eng¬
compared
with
1930.
1937, total assets of
England commercial banks
the
restrictive
by
the
time it
was
a liberal
easing of mon¬
policies as soon as there
indications that business was
were
slackening.
By
June,
market committee
was
New
were
less than those of New
28%
more
those
of the savings banks.
savings banks have been
outdistanced by commercial
banks,
While
in
turn
have
lagged
behind
the insurance companies.
1930, the assets of New Eng¬
land
life
insurance
companies
In
tuey
were
calling for
less
than
banks,
60%
those
but
greater.
of
in
the
1953
with
managers
of in¬
ten¬
After
eight
record-
of
years
the
remainder
penditures
for
the
for
first
billion,
the
building
chief
boom
policies followed were in
line with the statement made last
spring by Federal Reserve
Chairman
Jr.:
William
McC.
Board
Martin,
"The universal desire for
derly,
and
steady
economic
or¬
progress,
constantly improving stand¬
a
living, certainly cannot be
achieved without flexibly admin¬
istered monetary policy and ac¬
tion—with restraint
liberal
on
a
creation of
boom
and
monetary
ease
dangers
longer threaten stability."
The
money
maintained
tary
ease
a
to
managers
condition
combat
a
no
have
of
mone¬
the
defla¬
the
autumn
expected
seasonal
rise
in
reduced
for
be
building
commercial
projects,
unexpectedly changed
Furthermore, the
tivity
the
and, through its spending,
and
regulatory policies,
the
financed
As
and
to
with
now
30
years
future
can
nothing
' l
to pay.
prospects,
many
factors must be taken into consid¬
eration.
Since the end of World
existence in this country to 49
million,
or
about
persons,
to
one
every
compared
as
unemployment
be
drawn
for
upon
purposes.
Moreover, it would
appear
that
business is better able to ride the
"rough seas" because it has
a more
-
economic and statistical data
were
that
could
of
down
as
farm
may
there
be
such
A^e Assistance,
commodity price
supports, and deposit insurance,
plus huge private liquid assets
and
Houses
situations that may de¬
are "built-in"
pensions,
erality
mortgage maturities.
un¬
rect the course.
We need go no
farther back than the early 1920's
to
find
how
grossly inadequate
Reserve
payments
any
compensation, Old
lib¬
down
combating
Then there
stabilizers
monetary relaxation and the
of
of
means
and
utility construc¬
stimulating forces
vigorous building ac¬
Federal
determin¬
reliable compass and charts to di¬
and
the
are
the
and
The most
behind
period
relations
taxing,
than the
state
indefinite
better.
that
private
an
Administration has
ation
Federal
of
international
unless
the
item
with
be
business
used
trends.
monthly
that
At
inadequate
were
such
barometers
as
nor
time
no
or
quarterly figures on
important items
as
gross na¬
tional
is
that
of
a
the
part
about
homes
and
for
in
were
next
five
offset by
60%
built
of
ventions
thing
on
the
years,
the fact
American
prior
to
1930,
good proportion are in need
repair
and
renovation.
estimated
that
the
the
extended
a
Amer¬
upon
forces
have
lost
The
momentum.
boom
filling
upon
which
the
based
was
huge
post-war
pent-up demand in all fields has
been
largely met, and for the next
few
business will
years
dependent
be
more
replacement de¬
mand.
In other words, the major
expansionary forces may not be as
strong for the period 1954 to 195758.
upon
This
period
transition
may be one of
the business pace
with
will
It
be
a
period of
competition, narrower profit
margins, and a challenge to busi¬
keen
bankers to find
and
ness
portunities to maintain
new
op¬
healthy
There will be the con¬
economy.
a
stant danger of public clamor for
huge Federal spending. But if we
can
bridge this gap on a sound
basis, there lies beyond in the lat¬
ter
part of the 1950's and 1960's—
barring of
the
worsening in
course no
international
situation
—
an¬
other period of great dynamic de¬
velopment.
Propelling Forces of Progress
Fundamentally, the economy is
shifting from a super-boom stim¬
ulated
by
huge
a
demand
war
period
to
based
pent-up
replacements.
post¬
normal
a - more
largely
more
Despite
upon
the
pre¬
vailing
slackening
in
business,
there are strong underlying forces
of
that
growth
will
themselves
following
transition.
But
manifest
period of
a
this
development
will be accompanied
by challeng¬
ing problems in financing our re¬
quirements and in making the
adjustments.
necessary
Pressure
of
Population
Growth
One of the
forces
strongest propelling
population growth.
In
is
the last decade the number of per¬
sons in this country increased
by
19
over
million,
or
that
1930's, while
is
estimated
the, population will increase
by
28
twice
million, or equivalent to
population of Canada.
the
The most
decade
of
than
more
twice the gain in the
from 1950 to 1960 it
striking gain in the last
in the group five years
was
which
age,
increased
million in contrast with
decrease
and
of
1940.
tion
first
was
other
words,
practically
terial
give
issued
there
all
of
in
produc¬
by
an
5.6
actual
900,000 between
1930
By 1960 it is estimated
In
1922.
lacking
was
the
basic
ma¬
that
we
now rely
upon to
the picture of the business
us
well
tion.
is
indications
as
available,
now
in
much
a
so
the
as
future
management
better
keep operations on
sis.
Nevertheless,
is
of
a
position
economy
complex, and is subject to
million.
so
many
This
number
sharp
of
increase "in
of
thousands
people will
young
require the building
of
of hundreds
classrooms
new
which
are
be 35%
higher than it
already
badly over¬
crowded.
By 1960 it is estimated
that public school enrollment will
Many billion
was
in 1950.
dollars will have to
be spept on school buildings, play¬
grounds, and other related works.
to
sounder ba¬
our
million, and the high schools by 2.3
Since 1948 the growth in family
has slackened because
formation
the
of
abnormally low birth rate
during
As the
or¬
any¬
have
previously indicated,
their
of
forecasts.
In
have
some
annual rate of $6.5
billion.
influence
propelling
ever,
being
or
would
progress.
spent currently on homef improve¬
ment and maintenance is at the
amount
is
facilities,
that
restrictive
political and international
influences, that even with all the
data now on hand it is extremely
difficult at times to make reliable
It
and
else
the
of
trend. In consequence of informa¬
family formation will be
and
Reserve Board's index
pattern of the past and present
decline
tape
that enrollment in the elementary
schools will have increased by 7
to every four persons in 1940.
While it is estimated that the rate
this
red
exorbitant
>
product, disposable personal
income, consumer credit, corpo¬
profits, inventories, sales, and
farm income, while the Federal
rate
of
one
is
by excessive gov¬
taxation, rises in
beyond productivity,
and by any stifling of competition
or
suppression of new ideas, in¬
consti¬
will not be substantially
war
emergency
to
many
Defense
major
the
the
1930's.
In
depression
the
of
the
early 1960's, how¬
there wlil be another vigor¬
cycle because of
ous
population
the
heavy
birthrate
since
1940.
youngsters born since 1940
der to provide accommodation for
the
growing
population and
a
peaks and valleys of**become of marriageable age, fambusiness may be less pronounced, ily formations will be expected to
modest increase in
it
in
keeping
with
housing space,
rising
living
standards, it is estimated that ad¬
tionary developments. Toward this ditional dwelling
qnits averaging
end, member bank reserve re¬ a million
annually would be
quirements were recently reduced needed for the next seven
years.
in order to release ample credit The
key forces that determine the
for
the
tutes
$20
props
are
building,
municipal
tion.
more
The
of
than
more
about 3%
or
earlier.
year
months
seven
Ex¬
year.
construction
new
aggregated
year
the
of
expenditures is highly
slackens.
velop.
breaking performance, the build¬
ing] boom will continue for at least
three
The
ment
mand
favorable
Building Prospects
in
"to avoid deflationary
dencies."
inflationary
27%
open
taken
of
were
war,
deflationary War
II, about eight million hous¬
tendencies without encouraging a
ing units have been added, bring¬
renewal of inflationary
develop¬
ments." By September, steps were ing the number of dwellings now
when
were
the
operations "to avoid
policy
commercial
that there
would be
commercial banks
latter
But at that
announced
excessive credit in
the
meas¬
Administra¬
tion to halt inflation.
England mutual savings banks. By
1953, however, the assets of the
than
mon¬
ard of
In
around 5%
and
applied
ernment
the
tight, largely be¬
unusually heavy de¬
funds by major bor¬
for
mand
ures
price
was
of the
cause
12 months, the
overall index of wholesale prices
has held fairly steady. The rela¬
tive stability is attributed to gov¬
of the past
course
cold
mon¬
they
constitute the marginal supply to
ey
of
creeping inflation,
by variation in risk and maturity.
key to the
does
for
period
huge
angles, it
provide an important ele¬
of support when civilian de¬
should
a
this
While
undesirable from
in
residential
Commodity Prices
compara¬
1932.
of
amount
tively easy.
This spells a rela¬
But
tively strong bond market.
accounted for largely
are
used.
Commodity prices have strong¬
rates
money
mar¬
management
government. Differentials in
ey
de¬
ket,
borrowers'
a
particularly in recent
vestment portfolios must always
the credit, fiscal arid
be alert and on guard
against un¬
policies of the
toward developments.
by
years,
the
by
it will be
year
nomic influences. Money rates are
a
by
the Administration.
constitute
'
in
come
to
rates
wage
na¬
Total government expendi¬
leads
rigidity
interference,
slower.
A number of cushions have been
kept flexi¬
that
This
regulations,
losing some of their steam. Aj ican
period of moderate adjustment is
under way.
pattern
discriminatory
are
The bulk of the
deposits at 1% in¬
ties. In other words, on a national
stead of buying
adjustment was accounted for by
Treasury bills at
basis the outlet for savings banks'
durable goods manufactures. For
lower rates.
It would appear then
funds was about; equally divided
that
the first time in four years, the
the
bottom
of
the
money
between loans and investments.
end of the month inventory total
curve
is being reached.
•'
Never¬
in May was less than the preced¬
theless, in view of the fact that
Investment and Money Rate
any upturn in fall business is ex¬
ing year. While inventories are
Trends
still troublesome, particularly in
pected to be moderate, indications
Loanable
funds
from
major
some
durable
are that for the rehiainder of the
goods
industries,
'■
a
rigid
stagnation.
and
chief stimulating forces that have
stand
and
economy must be
ble and not allowed to become set
in
ernment
country rapidly catch¬
ing up on past civilian shortages,
and having provided for a major
part of the defense program, the
boom level for such
our
brought about
Economic
With the
prosperity.
and
firms, and in the commercial
insurance
The
maladjustments
the reduction
broad
a
Thursday, September 2, 1954
.
.
As I
year.
increased from about 13% to 18%.
creased
in¬
been
Less demand for funds for
tax purposes
to
This
on
long-range point of
'■
.
they
$9 billion.
over
creasing because of::
hand, the proportion held by com¬
mercial
banks
view.
of funds
These factors
.
be considered
now
make additional loans and in¬
can
in
On the other
1939 to 21% in 1952.
reserves
billion
$1.5
over
member
of
will
basis from the
added
of
ity in this country.
.
trend
of
building
are
population
business, and particularly growth and the degree of
prosper¬
the
While
is
not
cycle
likely that the business
be eliminated.
The
seeds of
depression
are
sown
in a
prosperity.
What is
needed is to keep business expan¬
sion within reasonable bounds, or
period
as
Paul
bulge
show
will
of
on the
Another
requirement is that
In
of
a
considerable rise.
addition
.
the
fundamental
boom."
is
force.
mobility
important
an
In
the
last
decade, mobility of our people has
been
the
About
one
Warburg put it, "sit
of
to growth,
population
stimulating
sons
greatest
out
in
of every
changes residence
history.
five
per¬
every year
Volume
5356
Number
180
.
.
.
The Commercial and Financial Chronicle
(837)
,and resettles in
Migration of Industries
different home
a
in another part of
or
the country,
.according to United States Cen¬
sus figures.
Mobility of the pop¬
ulation
,
builds
tent
is
.
much
the
to
communities.
new
this
of
migration
The
ex-
movement
of
nomic
as
of only less
the central cities.
and
living
Living
-
in-
an
than
crease
countries
14%
in
assure
such
progress.
China
as
lation
and
popu-
spells
overcrowding, star¬
and misery.
But in this
country the expanding wants of
the people have been met because
productivity. While
attributed to many
be
may
the
predominant
is
one
world
far
the
American
better
equipped with
driven tools.
trical
workman
country is
produced dn this
than 30 times the
century ago human
two and
a
maphine
power.
half
electricity, the
has
10
than
in
the
the
of
coun¬
world's
American
average
mechanical
more
the
was
great as
as
Since this
times
power
whereas
power
times
produces 42%
try
power-
more
amount of human power,
a
is
The amount of elec¬
power
worker
average
the world, and our
living are correspond¬
ingly higher, as confirmed by inrest
of
standards of
statistics
come
United
by
the
Nations.
the
In
compiled
decade, more than
$200 billion has been invested by
industry in
equipment.
nbrmal,
trend line.
ment
long-term
According to
all
of
are
recent
a
three-
outlays for
equip--
for replacement of worn
facilities
rather
than
pansion of capacity.
for
reason
approaching
the
on
and
stock of
approximately
survey,
out
is
use
based
fourths
.
in
plant
present
The
equipment
for
ex-
The primary
this investment
is cost
cutting.
v
-
huge outlays of Federal funds for
development in the form of dams,
irrigation, and flood controls have
inant
is the
one
Based
in
found
45%
of
two
and
price
much.
as
devices,
in
of
States.
More
Middle
ade ;than
the
preceding
payments
individuals
to
England
190%,
by
national
a
migratory movement of in¬
dustry is a challenge to the older
the country.
of
uation should be met
and
in
realistic
a
must
be.
level
as
kept to
the
prices
termined
The sit¬
de¬
favorable-economic
vital
order
in
that
climate
Hence,
one
emphasis
labor-saving
for
preparation
the-
rugged competition that lies ahead.
This
should
benefit
the
workers
since increased mechanization will
call for
also
skills, with the
con¬
upgrading of labor,
and
new
sequent
provide
job
new
Role
based
of
rising at a
much faster pace than highway
development.
Since
1941,
the
number
motor
of
vehicle
regis¬
trations has increased from around
35 million to 55 million, a
gain of
60%, while by 1975 it is estimated
that there will be 85 million motor
vehicles
of this
built
situation, fewer roads
in
the
the 1930's.
86%
In the face
the road.
on
of
last
were
than
decade
in
To
aggrevate matters,;
traveling is done on
the
burden
imposing
a
staggering
government.
on
The
toll
roads
are
partial
a
About 4,500 miles of toll
roads
have
been
process
built,
are
or
authorized.
proportion
construction
of
While this is
of the needed
sion, according to
Commerce
have
As
in
President
recent
a
United
was
is
now
Nations
mile
network
most
rugged competitive period in
history.
productive
fully self-liquidating turnpikes in
service
a
by
system
the
the mid-1960's.
congestion
of the
Such
would relieve much of
on
rural
sections
interstate highway
but it would
system,
not solve the traffic
problem in metropolitan areas.
"The
be
produced,
terial with
sorbed
in
Since
formed
serves
as
to
test
into
and
1960
the
indicated
and
1970
of
In
times
is the
consumer
of innumerable
ucts,
the
beats
a
and
varied
the
to
are
prod¬
longer
no
in
iman
forest who makes the best
be
now
available to the
the
mouse¬
mouse¬
conveniently
is
to
reduce
distribution
of the
pared
While
costs.
costs
wete
1870,
only 25%
consumer's, dollar
to
no
75%
for
In
as
com¬
production.
reliable recent data
fuel
great
as
costs
power
at
are
as
reserves
least
20
of coal
reserves
oil.
and
are
well
those of production.
The
There is
,
abundant
is
life.
But
we can
panding
There
and
is
as
can
and
of
an
by mobilizing
scientific re¬
and
provide for an ex¬
vigorous economy.
human wants
We
are
generations
science
to
always work to be done
long
as
—
open
of
invention
un¬
and
instrumentalities
that
trails to the future
new
make
are
the inheritors of
for
profitable
enter¬
prise and higher living standards.
Income
r e-
h i
s
Conclusion
best
are
brains
done
it
and
to
possible
have
I forecast that
this
column—the
machine
in
us
laboratories
most
workings
of
which
of
understood
is
It
the
God,
have
by
the
any
never
scientist
to
4%
necessarily
or
Second,
that
inventing
tell
reached 5%
the
or
who
men
but probably
more;
run
our
are
talent
a
we
living in
our
peacetime his¬
challenge
can
an age
efficiency.
For
the "long pull" the above
thought should make us very
hopeful. If the }3rain of the aver¬
high-school
graduate
works,
after
graduation, at only 2%'
think what this would
if this average of 2% could
increased to 4%!
It could re¬
mean
be
doubling the prosperity of
nation;
doubling both our
production
living.
and
Surely,
mine in
standard
our
all have
we
of
gold
a
head.
our
and this has led to clamor for
se-
and
the
entire
world,
the brains of its three billion peo¬
ple probably
working at less
than 1% efficiency. If this aver¬
age could be increased only slight¬
ly, think what it would mean in
billions.
In
addition,
it
should result in greatly increased
foreign
trade
for
all.
us
The
"chain reaction" caused by a small
increase
brains
in
the efficiency of our
beyond the most opti¬
is
mistic
dreams.
faith
of
curity
which
scope.
Essentially
is
is
world-wide
this
quest
World
physical brain
upon
the
in
business
War II, fear
depression,
of the atomic
of World War III.
children
asset.
an
look
children
upon
luxuries.
or
reason or
in
If
this
must never forget that
what made this country great was
search
craving
for
for security
initiative.
It
is
the
curity which makes
It
What
is
the
action,
fear
us
same
of
inse¬
seek secu¬
fear
destroys
that
initia¬
this
country needs, what
the world needs, is courage to re¬
fear; vision, to replace self¬
ishness;
initiative, to replace the
search for
reader,
my
please
group,
training more children. This
be your best opportunity for
serving mankind.
Furthermore,
brains
the
be
far
of
these
children
insurance
better
old age than any paper
may
for
your
policy
you
buy.
can
One
thought.
more
If
are
you
who loses your
job dur¬
ing this "push-button" age which
we
are
entering, do not be dis¬
woman
a
couraged.
Remember
that
far
a
greater
opportunity is awaiting
you to stay at home and help de¬
velop the brains and souls of your
sit."
These
also
"baby
or even
have
great
op¬
portunities.
Blunt, Ellis to Admit
B. J.
-
Cunningham
CHICAGO,
Cunningham
admitted
111.
—
J.
Bernard
will be
partnership in Blunt
Simmons, 208 South La
on
Sept.
9
to
Ellis
&
Salle
Street, members of the New
York
Midwest
and
Stock
Ex¬
Cunningham
has
joined the firm recently and prior
thereto was with Goldman, Sachs
Mr.
Midwest Exch. Members
111.—The Executive
CHICAGO,
Committee
of
the
Stock
Midwest
Exchange has elected to member¬
ship in the Exchange the follow¬
security.
C.
Wilbur
Britton,
C. W. Brit-
&
ton
Co., Sioux City, Iowa; F.
Dodd
Sadler, Chicago, 111., and
Ralph H. Yount, Chicago, 111.
but
through
progress
competitive spirit and courageous
rity.
liabilities
as
you,
latter
think of the wonderful brains you
can create and nurture
by raising
jus¬
secu¬
we
the
considered
were
Today too many families
ing:
But whatever the
tification for this search for
the
both.
Final Thought
Once
combination of factors in¬
not
and spiritual
power
Health and happiness
dependent
an
bomb, and the overhanging threat
rity,
In fact,
for & Co.
attempt to escape
reality which has stemmed
a
due to
are
it is hard to draw the line between
changes.
security
"
are
better living and a higher life for
these
ft*
Lack of concentra¬
lack
weak, unused brains.
our
family—or to teach,
Considering
us
may
sad
capacity,
give
and
Why I Am Bullish
tq the place
We
muster.
of insecurity,
tion
Government
Washington or who head our
corporations average only about
age
I further forecast
are
at
even
from solar radia¬
greatest need.
come
3%
power
gravity.
the will power to carry out these
decisions.
This
power
is
our
us
using our
most
wonderful
brains
only to
about
2V2%
of
capacity. Some
great thinkers have perhaps
not
new
discover¬
or
of increased brain power
will result in helping us to make
are
psychologists
American
we
ing free
our
does
more
mean
faith power.
physiologist.
or
God?
changing attitude
a
correct decisions and will
marvelous
world.
to
nearer
Increasing the efficiency of
use
creation
greatest
been
the
to
us
is ahead.
brains
that
reader, remember you
your head—as you read
in
Brains
for
over
chemical
bring
it
my
are
long dis¬
tances, and now—by television—
see
what is going on anywhere.
But,
what
have
the
inventive
or
tive, and shrivels men's souls.
The problems before us are the
and
spiritually.
up
faster, hear
tion
contains!
we
a
made
head and what
Why A Gold Mine?
First,
paralyzes
tory
Redistribution
Roger W. Babson
cluding
shortcut
no
manpower
sources
Ahead
royal road to prog¬
no
There
ress.
our
Road
most critical in
Marketing policies of today need
to be adjusted to a revolutionary
should
catch
travel
each
reader
from
are
above
thoughts
which
from
available, it is believed that dis¬
tribution
me
capacity put in place.
atomic
satisfied.
consumer.
The great challenge to market¬
ing
between
by his preferences
consumer
path
electric
of
the market place as it
in
created
jobs
de¬
efficient,
A study
nuclear
It is estimated that world
analysis,
in
plants will account for 10 to 20%
and consumer, it holds the key to
the future of production and jobs.
final
capa¬
and
that
connecting link between producer
the
no
by the Atomic Energy Com¬
mission
channels.
consumer
which
universal,
economic
usage."
made
but
distribution
That
velop their ideas, that this capa¬
bility would
rapidly be
trans¬
rather for the
goods that can be ab¬
of
future.
and engineers had ade¬
quate amounts of fissionable ma¬
period.
Consequently, the concern is not
for the volume of goods that can
amount
the
scientists
capacity
On the contrary, the
of
said:
proved, is here—
now—today.
Who can doubt, if
the entire
body of the world's
being reversed. The consumer is
king, and business will face the
our
with¬
aroused
I 'mi '
our
already
situation
'fitf
before
bility,
The
col¬
Natur¬
ally, I
am
pleased. It has
„f® til j
sult in
of
must
•
speech
pos¬
from Atomic Energy is
dormant.
1
.1
|
*'i:
Eisen¬
dream
competition
trap
Department of
the
power
while
trap.
-expan¬
of
pended,
in
small
threshold
United States knows that peaceful
or
study it is possible to
12,000
a
a
a
motion by
and
accele¬
are irresistible.
with its limitless
age
'
the
in
war
the
on
'
answer.
come
During the war period the law of
and
demand
was
sus¬
who
determines
the
type
and
23% of the mileage. The big prob¬ amount of
goods to be produced.
lem is how to finance these roads,
Because of the freedom of choice
without
the
double that of the prewar
is
cars
distribution.
set
by the
are
hower
of
American history is approximately
Congested Highways
now
technology
sibilities.
the
on
supply
The
flow
is
forces
modern
atomic
problem
or¬
laboratories.
research
The
management
products which
upon
from
is
Marketing
one
front
economic
opportun¬
ities.
The
of
The number
more
than
in
possibly one-half of all the em¬
ployment in the United States is
predominant factor in the migra¬
tion of industries.
Furthermore,
a
place
work that it is estimated that
the
are
take
decades,
and these in consequence have so
expanded the
opportunities for
place by
whose demands
compressed
developments
dinarily
competitive
market
were
scientific
Costs
largely
are
the
at
consumers
there
courageously
manner.
period. Not only has research
inventions, scientific discoveries,
and
developments.
In the rela¬
tively short period of the war
of 262%.
This
sections
weekly
umns.
^
f:
to
have
that
mean
mechanistic age. One
today is that we all need
trouble
my
these
garding
one-third of the number employed
had jobs that were based
upon
compared
as
average
i
Opens New Frontiers
chief source in creating new jobs.
In 1939 it is estimated that about
the
by 316%, the Pa¬
by 357%, and New
States
r
This need not
headed for
ad¬
of
"push
Need of Spiritual
Awakening
miraculous machines
outstanding contributions in
providing mor'e goods for more
people but also it has been the
South increased
cific
/
consumer
made
100
in
writing
the
between living condi¬
today and those in the cave¬
man
From 1939 to 1952, income
years.
years
a
difference
Atlantic
people migrated to
in
33
consider
Research
a
from
came
group
of
mirers of
spending.
the Pacific Coast in the last dec¬
equip¬
only about
about
tions
the
for
1939, while it is estimated
average
for
proportion of
same
We
the
account
18%
South
This gift
"
.
income
zation and largely accounts for the
the
library.
under $5,000 receive about
taxes
rated
that
Those in the
states of nearly 40%, as against a
gain of 1-3% for New England and
and
its
in¬
gain
Atlantic
87%,
prominent educational insti¬
was
recently presented a
life-sized sculpture of my head for
income, and to the progressive
basis.
generally is more than 165%
toward
way
A
of the
age.
tution
gone
Technical progress is the foun¬
dation of modern economic civili¬
of
button"
two-thirds of the net income after
the population
of the Pacific Coast showed
spiritually with mechanical developments
up
equality.
group
were
decades,
Eco¬
system
have
we
half
income tax.
primarily
oriented to their market, 30% to
materials, and 25% to labor.
The population and income pat¬
tern of the country has undergone
profound changes.
During the
past
of
a
This striking re¬
distribution of income is largely
accounted for by the rise in wage
payments, relative to other forms
a
that
Under
decades
than
come
market.
consumer
two
more
study made by the
N.P.A. Committee of the South, of
88 new firms locating in the South
in
the
post-war period, it was
upon
Bureau
Research.
tarian level, while now the spread
is only 13 points. In other words,
forces and has.
industries, but the dom¬
18%,
of total income. In 1929 this group
was
29 points from the equali-
dustry to the South and West.
Industrial migration has
been
varied by
use of brain
capacity, Mr. Babson says
this could double the
prosperity of the nation. Says hope of
attaining greater utilization of brain
capacity makes him bullish
for the
long pull. Holds trouble is that we have not
caught
equality, the upper
would obviously receive 5%
5%
ing factors in the attraction of in¬
motivated by many
Calling for increased
complete
bor
is being placed upon
.
of
around
now
Gold Mine
a
By ROGER W. BABSON
recent study made
a
National
the
by
addition,
have a fair chance to meet
regional competition on an even
half
:
In
may
ment has advanced
.
States.
Including fringe benefits,
the average cost of an hour's la-
above
.
Pacific
with
last
American
the
been and continue to be contribut¬
Standards
India, the expansion of the
factors,
..
27%, and is
number
that compared with the rest of the
•
to
the
persons
Your Head Has
disposable income after taxes.
By 1939 their share had declined
the suburbs
against
this
income
total
in
this
-
This
forces.
in
of tremendous
-
economic
in
upper
groups' proportion of national in¬
come has undergone a
sharp de¬
cline. In 1929, the highest 5% of
income
recipients
had 34%
of
a
by the
establishment of defense plants in
the South, West, and other parts
of the country.
Nearly 40% of
vation,
-
This is
movement was accelerated
The rapid growth of population
.
the march.
on
income
The
according to
in itself does not
!
are
of
country.
by the increase dur- ' total facilities contracts in World
ing the last decade of over 35% War II were in the South and in
In
•
tries
redistribution
dynamic economy, indus¬
mental
reflected
Tools
..
our
sign of healthy growth of funda¬
dynamics of the economy, creates
markets
for
new
homes,
and
,
.
contributes
In
19
Ingalls & Snyder Admits
Ingalls & Snyder, 100 Broad¬
New York City, members of
the New York Stock Exchange, on
way,
Sept. 15 will admit John S. Shaw,
Jr., to partnership. On the same
date, Johfi T. Snyder and Warner
W.
Kent,
become
vald
the
F.
general
limited
H.
partners,
partners.
Tenney,
will
Thor-
member
of
Exchange, will retire from the
firm
on
Sept. 14.
The Commercial and Financial Chronicle
(888)
:2G
j.
{Continued from page 7
test low-cost producers, survived
„
instructive
—an
PlA^ fur
IflAnAtanr
AHV
m
mm
m
j
Ivfft
m
IVl
Villion
in foreign
exchange in 1953, mostIt does not lead to a
iy dollars.
stronger dollar position
if exter-
rial short-term liabilities increase,
balances
Foreign
their
•of
increase
in
are
erratic
size
is
a
Indicative
concern.
and
source
of
the
in-
of
one
and
price determination
of restrict the enhancement of pursupply and demand—as any other chasing power (the medium of
(under American merchandise.
payment) with the other.
succeeded with— , As long as the U. S. stands
AtvilftVAVIft«Vift
others,
guidance) just
after having repudiated 93% of ready
to
deliver gold at $35
its purchasing power (Inflation (1954)
an
ounce,
there is no
is partial repudiation, the differ- chance that the price of gold will
among
is
ence
in
only
degree
in
not
Markets
much.
change
with
kind). It is impossible to maintain higher prices develop only locally
1934 price of. Gold
both the
political or economic tension. It is something else to say
and
under
1954 price level indefinitely,
the
trend to enlarged
gold holdings is
An
t
G | , p j
world"*TVnnH
that
Canada, for example,
insafeguard to the world. A good
creased its gold stock from $590
The fixity of value will have bid in any market is one in which
Tnillion in 1950 to $1
billion in to he defined by Congress. As the goods are sold to the bidder, but
1954. England increased its gold purchasing power of the mone- our bid was not taken up.
We
and
foreign exchange holdings Jary unit is already halved —- a lost $2 /2 billion of gold in the
from $1,685 billion in 1952 to $3 *act which cannot be rescinded— last
five years, so the support
billion in 1954, but England will the price of gold according to the means little. The world is buying
slill
need
about
double
this reciprocal
value
should
about our gold, but not our monetary
siiu
neca
aooui
aouoie
mis
'
"thf
,
amount
become
to
■i/ertihle
verubie
Holland
woiiana
million gold
$311
»nillirn
in
to
co
foreicn
from
in
cold
increased
cold
in
$5fT2pr
O
s
in
1
of the
consent
-Fund
cold
a
a
1949
Mexico
MonetSrv
men
cold
in
1954
$2
to
it
hill ion
indicate
would
1951
fevcl
reserves
I^ternational
Pf
holdings
world's
The
increased from $15
in$9<f 5 hillinnin
^evained
with
This
a
exchance
1954
dollar
and
which
100%
on
million
$500
billion
1950 to $737
in
naritv
dollar
and
2nd
confrom
irorn
Germany
1954
predicates
Thp
freely
inrreased
increased
Drice
American
or
nfde
r-anadian
rommonweaUh
xne uommonweaitn
are
aiCo on+hc
are also on
tne
Parity.
decrying
eold anymore
World
The meeting of the
Monetary
tember
in
in
FMand
Washington
Sep-
probably
will be of the greatest importance
in
attaining
vcrtibility.
the
Any
goal
of
system
con-
of
con-
vertibility should extend to the
Dollar, and should embrace as
nations
possible. It would
be a pity if we would refuse, and
convertibility were limited just
many
as
to the six nations of the
rail
and
American
national
world
policy
trade
essential
limited
serves
European
community.
To
steel
maintain
U.
are
As
50
as
un-
raw-material
re-
*
cents
i
^
irom
a
tary
unit
monetary
a
40
a
as
the
monetary unit in
60
a
without
cents
mone-
destruction
price
present
advance
cannot
we
50 cents
unit
in
cents
and
of
wage
I»lateau (deflation); as by standing still we lose our motive power
for
real
growth,
-emanate
forces,
from
and
which
can
natural
keep,
the
only
economic
monetary
end still open, inviting distortions
in both directions; as other coun-/
Iries
lis,
qpt
gain trade advantages
will have to act to
we
"in competition,
financial house
and
to
bring
over
our
inflation
*-89
times
nripp
face
Pold
In
of
cold
the
the
other
monetary
metal
race or. febia> lRe monetary motai
side, is dimensionless as a fixed
point of reference, and can only
oe determined by definition, because it is in the nature of a surd
—a constant. You cannot determine the length of a yard, any
weights or measures—like Pi-or the normal meter in a free
market. The last definition prior
to 1934 was good for a hundred
in
nume
1941, is today $875 mil-
J^5° t^111!101^
.
in
special
a
this
was
production over
c0!nfn in
ac-
for
(free gold)
—
were
in
account
existed
ance
Treasury
^ next iu years,
ine new Londone before. $2.8 do^ Sold market is widening in
in kind
—
credited to
1934—this
bal-
13
years—then
given ijn gold to
volume and may become
principal trading place.
the
On the assumption that
ac-
no
Bonds
in
November,
1953; and $500 million are still in
this account. The increment could
also be used to reduce the shortterm
debt,
for
or
other
neutral
international
monetary
agreement under the Gold Bullion
Act—as a compromise1— and an
adjustment in that moment,
purely
for
our
own
economic
new
In that way, existing good,
would
be
the
practical
monetary reserves would not be solution.
The
real
machinery
written up, they would just stay which assured the balance of payas is.
1
ments was that of private credit
purposes.
Tn
1004
thp
denression
was
boom
tend
a
desired
prices
to
rise
rise
of
in
nrire
thp
At the ton
and
hv
bottom
costs
of
a
a
will' not-
themselves
thev
gold
to. v the non-will churn around and stagnate
category has brought our —and a heroic anticyclical effort
fiigh-cost economy only more off will be needed to make them stay
center.-As stabilizing at 53 cents at
about
the
present
plateau,
in a flexible economy does not Gradual deflation would
be
give evidence what happens to another
possibility,
but
that
transactions
and
Interest
Arbitrage—little gold was actually
shipped, but without the general
validity
the; gold ^standard,
these functions cannot be rein-
stated.
.
Another argument runs, that
change in the price of gold
any
benefit
a
power
whose
political attitude does not conform to our own. The fact that
as it took to inflate—at 2V2% per Russia
sold $250 million worth
annum, 20 years. As we are ac- of gold was much publicized and
customed to do nothing in modera- overplayed—we sold in the same
amputate that part of the mone- tion, it is doubtful
that the pub- period
of time, $l!/2 billion of
tary unit which cannot be re- lie will have the patience for this gold. The Russian gold production
stored to life, and conserve the road
back, which will be slow, is estimated at the national figure
the
47%
shrinkage,
deductive
reasoning dictates as the only
realistic solution, to recognize the
facts, to close the open end and
would
take
just
as
many
years
other half for a fresh start.
The long and rough. Another school of between $70-$130 million dollimp-Standard,
domestically
off of thought is for determining the lars a year. The Russian gold
and internationally on, will have price of
gold in a free market, stock is guessed at anything beto be consolidated. In this
manner
the
equation wbuld be at equilibrium
again on a new basis,
This is not going to be fatal—we
are rigid right now under the ef-
fT exampll GemS1
sysiem. tor example, uermany,
other
the
approaches
convertibility.
the
The
of
stage
world
re-
to orthodox economic prac-
turns
to
the
world
temporarily
The prosperity of the U. S. was not built
on-high cost of production. Every
ahead of consumption.
time wben costs of production get
out of bne vvitb 0ther nation?, a
readjustment is called for.
The
wnr]d
f.annnt
he
snrre^fullv
run
woria cannot De run, successtuiiy
tbe
Qn
baglg
of
eyer
A
p
lncreasing
to
cost
Tb;s
ture
living.
us
will
steD
fresh
a
growth
than
the
equipped to
tjon
than
other
deal
natural
added together
with
is
better
the
situa-
aenerallv
believed
not for the sake of an academic
principle
then
past experience
scare
sound
a
not
wait
to
until
the
lng
the facts
thev
are
one
in
can
into
nf
a
advance,
unnleasant
frPP
of
reco?niz-'
y Iec°sniz
if
even
;
die unpleasant,
Preserving the American
+Prn
re-
a
bottom
bv
J
-
com-
better chance
a
businrsrdecline
•
of
basis
No
economy
We stand
cession.
the
on
and simple
rules
mon-sense
a
the
artificial
public
is
to
more
form
in
start
all
devices' employed
perhaps
do
and
PPOnr»mv
sys-
dpnpnd«?
on
tern oi a tree economy depends on
the will to restore the integrity
of the monetary unit. A unit in
this
sense
means
just
that,
namely, to adjust the inside off
standard value to the outside on
standard value. The fact thaf we
lost only 50% whereas other nitions lost up to 98% of purchasing power, puts us under obligation to lead in restoration.: The
other step will not be disastrous and
.
.
we
monetary
confidence
basjs for
the
0f
f
Instead of the price increasing
system, the universal benefits of
the price reducing system should
be substituted. Price cuts will
often produce a larger unit and
dollar volume. Periods existed in
American economic life where
raw materials declined 40% and
the output of manufactured goods
increased twofold. The export
_
to
the
unit
in
keeping with today's price struc-
tn
and .wa2es>
ce?
ever_lncreasing
other
re-define
ticeS a"d t]?e buye,rf' ?narket has if
COme
the goldus go nations
back simultaneously
do, let
with
standard, but before
.
import and
pay
for,
either the
so
price of gold has to come up or
the level of prices, down. Under
no circumstances can the standard by expected to perform to
Once the misconception of
cause
(multiple credit expansion) and
effect (deteriorated currency) is
out of the way, the outlook for
the longer-term is bright. Amer-
the depreciated currency, the ica has often amazed the world,
abused medium of exchange has let us amaze the world once more
to conform to the standard, like
by throwing
a thermostat
crutches and stilts.
the economic
away
Let us use
Up to now, the advancement is our resources, our initiative our
prices> the progress is in the creative Power
our skill, discidebt> and the bin hag yet tQ be plme, and good will, by being
Paid- In the first part of the leaders to stabilization, to adjustcycle, we witnessed an over- ment, a n d convertibility.
We
abundance of money and a short- can go right on stimulating ourage of goods. In the second part, selvcs, through hard work and
,
in
^bere js stni
overabundance of
an
bu^
a]so
piethora of
jn ^be nex^ part} the sur-
money
goods
pjug purcbasing
to
be
a
^
sorbed by iosses>
C0Ldd
be
could
or
it
by budget-surpluses
put
the
ab-
by raising
under
be
cannot
be
the dilution
SqUeeZed out
pidce 0f gojd;
conditions
0f debt.
will have
p0wer
absorbed
present
absorbed
a
Gold Re-
sumption prosperity. In the field
conservative financial matters,
wbich do not readily lend themselves
to
experimentation,
it
might be well to
once said
to
a
sa.y, as Verdi
young composer,
"Go Lack to the past, there lies
y°ur
future."
repayment
or
It would be far better to
price
greater efficiency, for
Rlirlrhlllflor NaittOfl |a
'UnUIUCi liCtlVICU 10
of
gold up voluntarily, than undergo the tensions
of self-liquidating excesses
rrUn„n
DJ
al*
t/^tttoirtt
u
*
A|
u
||
IDA
D0« Ol UtllO VOIISV ISSft
problems cannot be ig-
t
^
LOUlbVILLE,
t
tf
r.
*
K^—J. R. Burk-
2?;red Y1
sa.
Garried holder, Almsted Brothers, has
through to its logical conclusion, been elected a member of the
,
•+
i
^ simply means that seeking to Board of Directors of the Ohio
stri^e a .alan^e ^
reIatl,ng
£old realistically to the vast mcrease in debt and money supply,
cannot
be successful for the
longer term. There is no substifor balance in this world,
Adjustment of the monetary unit
is the only way to stabilize, without starting a serious recession in
p e credUj expansion, btanding
Provcn principles on their head
not our saLvation—the mechan-
J£al interpretation of the quantity
f
°1- rPoney }? not going to
Pe,
final solution. Can anyb0(iy really believe that natural
economic forces are no longer of
consequence and that we have
manipulated ourselves into a state
permanent well-being.
De.
J. R. Burkholder, Jr.
Valley Group of the Investment
Bankers Association. He succeeds
John
G.
Heimerdinger,
Walter,
Woody & Heimerdinger, Cincin-
cisive is not the willingness to nati, and will serve a three-year
expand regardless of cost, but term to begin in December,
the ability to live within limits
Gold, just like Janus, has two op- tween $1.1 billion and $3 billion.* we can afford. Can anybody be
p# BUJ(J Ooens
posite faces—one face is technical, The evidence points up the ex- really convinced that the world's
*
______
it
is
and
and
guided
usage
by production costs
in the arts (jewelry
dentistry)
aggeration
as
to the Russian gold
selling potential. Selling of Russian gold has no malevolent ef-
(by the way profeet of the spiral, but sufficient duction
costs
rose
as
much
as
feet on U. S. A., on the contrary,
flexibility for compelling reasons $10.92 per ounce, but the price of any amount sold by Russia will
■will remain. We will have to re- the
product,
which
cannot
be not
be
withdrawn
here.
Mr.
form a method—England
where manufactured at will, remained Stassen said recently that "we
it
originated
just failed
with, unchanged for 20 years — two- have no objection at all about
f.urned around and is gaining sub- thirds of an entire
industry fell trade in peaceful goods to Russia,
A
including
places,
many
future
a
esrane°th2S' JLvi2ff^t2>Sofble l°
escape the after-effects of "J.ul-
_
Russian Gold
would
in
sought
which
on
might be built.
restore
being
is
money
U. S. A., as one country after an-
tbe
$1.8 billion were
tion is taken on gold, non-dollar
the I. M. F. and The International countries will have no choice but
Bank for Reconstruction and De- to withdraw from us, to fill up
velopment. $500 million were used their currency stabilization reas
collateral
against
bought-in serves. This could I bring about a
Government
the conditions
peace
nations are not content to hand experience suggests that the adWorld
gold
production out gold at the level of $35 (1954) justment might foster the natural
was $iy4 billion per an- for high priced goods they should growth of the nation's economy,
The real meaning of the read°F 35% below the peak,
justment of the lost purchasing 56% °? the new production are
Power of the monetary unit-to a still going into hoarding, and only
new basis—for a stable currency 44 f°
1S monetized. Relief can
—*s suppression of inflation, the ordy
come. from
dishoarding,
greatest
wrecker
of
currency. w*Vcj?. reQUires politically
tranMore important than arithmetics, Quil times, or from Russian sales,
in this respect, is a change of ^
monetary attitudes. The adjust1:Jr iqaN $«>nn minfon
ment is a purge of the unwhole- duetmn, wjas in 1941 $200 million
some monetary behaviour.
The P£r annum, and is today $70 milcorrection might not cause (in
p®!"J?"1
/£pS 9n]
itself) a new economic advance,
a ,foi
but without the correction no new
new advance will be possible. ^
Gold which will be set free by African P oduction s ab ut $ 00
the a d j u s t m e n t, the accretion, million pei annum ana win inshould be immobilized, that is, crease, as gradually new mines
kept
.
Conclusion
Sound
surplus vanished, because
GoId Production
essential
-
of
hereto,
contrast
also
is
Relegating
•
'
at
already an
established fact —
further inflation is not going to
The
show up again unless it is willed which
stay -level
in order.
nnit
tinct
funds competing for goods—well, years.
billion in bullion
monetary
superabundant money
the direction of
-eur
hp
materials in worm markets, wnn
out supports, and prevailing purchasing power of our monetary
unit in that given moment. Examining the argument that such
an adjustment — the devaluation
took place already in the past and
will only have to be recognized—
would instigate a new shower of
inflation in the future, expand
bank reserves, increase available
just as jt
i
Status
easily make condiby retreating from a
of
by
supply;
*
tn
on the prices of raw
in world markets with-
.
acount
can
worse
direction
unit,
is
thing of the past.
o
we
so,
a
free
on
convertibility
more
S.
a
r^u
based
and
the
—
leadership,
The Scrambled
tions
nripp
pvnpt
will depend
-V
gQ
me
.>
,
„
doabl,e- inJ exac* price to be set unit at our price oi gold, in ais
the
we wish to encourage as much of
that category of trade as we can."
ni<?al part
™oul-d ^ndThis
itself
trade withto ease hand,
dustrial
achievement).
tech-to ItWestis impossible
the East- Let
by the law
KACIATAiIAYI
■
■■
4!iWilWlU»
have increased to $36.1
in gold and $20.2 billion
-change,
example
Thursday, September 2, 1951
...
movement, but one-third, the fit-
Samuel
Annua, feu b„u.„„ R„ue
Montague
&
Co.,
Ltd.,
London,
supply
paper-money
able
tod
is
as
'
it
valu-
yky
LUKLINGTON, N. J.—Thomas
U"dd has opened offices at
^ West Broad Street to engage in
r»
a^°' and that gold which did not a securities business,
change
retained
its
as
purchasing
regulator —is
a
valuable
morb valuable.
helium
butf
strength to
power—if
"Si
7m
not
norm
Si vis pacem,
means not weapons
bring
into
existence
William V. Walsh
William V
Walsh
^ X rI™
Mp
general Dart-
part
v'
v
?
ru
passed
awa^at
theVo£54 £o£
lowing
long
a
illneoo
Volume 180
Number 5356
Continued
from first
..
.
The Commercial and Financial Chronicle
(889)
that
page
butter, cheese and skimmed milk that
As
We See It
setting up the proper plan of fi¬
nancing is whether the securities
had in 1952 and I think of all the
be
in this world—I wonder if
entire economy.
and will also share
my. hope that in time nearly
duction adjustments can be accomplished
through
all pro¬
flexible
supports instead of direct government controls.
"There will be many other
flexible price support system.
important gains from the
healthier,
for
years,
the world would
in
more prosperous
income, and
"Over
farm
it
will
mean
economy, a moi;e
abstract
some
be better served if he
able
were
or
willing to buy the surplus we produce. Obviously, the
trouble in the backward regions is lack of production
there. The remedy will not be found in a day, and when
it is found it may prove that these peoples will produce
their own food cheaper than we can provide it for them.
At
rate,
any
decade
the, farmer,
the speaker may be right in
when he says
that the trouble is not really over¬
production here but underconsumption in certain other
parts of the world, or even in some parts of this country.
However, this is a v^ry real world in which we live. We
can
hardly profit by producing more than can be disposed
of for what it costs merely because some one, somewhere
we
must
meet^r problems today, not
two hence.
or
a
_
Our real trouble is that
help achieve a better balanced agriculture by
moving more farm products into consumption.
the
we
resources^ materials
our
and
in too large a measure bei/ng devoted to the
production of agricultural crops, and all remedies so far
tried or proposed tend to perpetuate this imbalance.
manpower are
a
stable
steadier buying power.
a
the
for the
years,
it
will
mean
Continued
from
page
cause
of the
it will
mean
There
are
sqme
years,
other features of the
the President believes will benefit the
new
at
pains to tell the agriculturist how he will gain as a
result of certain other legislation which has come from
the present Congress, but the kernel of his offering to
the farmer is the "flexible
support" principle embodied in
the bill, the signing of which he made the occasion for his
statement to the public.
It
points
also
was
Stevenson
this
so-called
flexible
feature
that
Mr.
called
are
sharply into question. His words at
worth consideration. Here is the gist of his
argument:
"In
this
connection
I
have
been
interested
in
the
of praise that have arisen from the Eastern Repub¬
lican press, at least, for the Eisenhower Administration's
abandonment of price supports at 90% of parity.
"Although the flexibility is within the narrow limits
of 82.5% and 90% of parity, this legislation has been
widely hailed as a great victory for the Administration
and for sanity. The President the other night even said
with, I suspect, more enthusiasm than confidence: 'Now
paeans
have
that will encourage efficient
production, will stimulate consumption and stabilize farm
we
gotten
a
program
income.'
of
farm
were
true and that
we
were
at the end
and
surplus troubles, but, with more con¬
fidence than enthusiasm, I say it is not true; that this
Republican farm bill continues the faults of the present
our
legislation, adds no real flexibility and, in fact, will ac¬
complish little or nothing apart from a probable reduc¬
tion in farm prices.
"I don't believe that the new Republican farm bill
will
save
eliminate
much money,
surpluses
newspapers
as
reduce food costs appreciably, or
the Administration and so many
would have
hurt the farmers
some
you
more,
believe. I think it will also
although the relation of the
prices he receives and the prices he pays is already less
favorable to the farmer than it has been for many
years."
We, too, doubt if any solution has been found or
applied. The fact is that we doubt if we are even looking
in the right direction for a solution. Mr. Stevenson cer¬
tainly seems to be looking aimlessly around (or worse)
for the proper course of action. Here is what he has to
the subject:
"Perhaps there
say on
other partial solutions at least.
We talk about maintaining the price of what the farmer
has to sell; perhaps we should give more attention to the
cost of what he has to buy. Perhaps there is too much
are
In order to obtain such vast
ties.
provide direct payments to sustain guaranteed
income, measures which would not produce government
level and
conflict with free trade policies, should be
re-examined even by scornful Republicans.
"But when I think of the so-called dairy surplus—all
surpluses
nor
raising
amounts o£ needed
future.
necessary
study
capital, it was
to maintain the integ¬
rity of common stock and the
ability to sell it, which absolutely
public
©jr
company,
which
the relative provisions
would
be
bond indentures
relative
needed
for
or
costs
in
the
and
the1
stock,
of
ease
completion of the transaction, and
the relative time schedules needed
under
public
private sate.
versus
Preparing Legal Documents
After
been
the
financing
plan has
upon, or in many
with the financing;
which we have beeji
decided
cases
along
decisions
talking about, come the mechanics
of
preparing the issue for the
market and
preparing the papers,.
etC.
.A'
If
the
issue
is
to
be
sold pui>~
licly under the Securities Act of
it
1933
is
necessary to prepare
registration statement, including
prospectus, or if the security is
a
a
a
railroad security or if the
security
is to be sold privately it is neces¬
to prepare a descriptive cir¬
In either event a
descrip¬
sary
cular.
tion of the business and
property
of the company must be furnished
the terms of the
security de¬
Also financial statements
ally arranges to visit and inspect
plants of the company. This
gives a chance for an on-the-spot
investigation of the manufacturing
additional
It
is
capital
also
in
necessary
the
to
the terms which should be
processes,
also
ity
and
to talk to
officers
an
opportuxvand
plant
managers on the job. Conferences
with the sales officers and sales-
in
pany
arranged. The
generally prepares a
the indenture relating to a deben¬
draft
of
in
included
the
mortgage
or
managers are
com¬
first
tne
description of its
issue, or in amendment to business and properties, and the
the company's charter in the case
managing underwriter reviews
of a preferred stock issue, so that
these statements with the com¬
the new security may be made
pany officials and makes sugges¬
readily salable. Certain covenants tions as to the presentation of the
in
ture
issues which would
mortgages and bond indentures facts. All underwriters must be
carry
conversion ,t e r m s making their and in preferred stock provisions
extremely careful, since they as
are
desired by the purchasers of well as
early conversion into common
the company are responsi¬
stock attractive and probable. As
securities, and an investigation ble for statements made in the
excessive borrowing.
The
System, therefore, decided
that a substantial portion of the
total program would be obtained
by the sale of convertible deben¬
precluded
ture
,
a
result, in the eight years, the
System has increased its debt by
about $3 billion and its common
stock
and
surplus by almost $3%
billion, including the $385 million
of
retained earnings mentioned
previously.
would have been
impossible for the
System to accomplish such a vast
financing program if it had started
in
1946 with
than
more
existed
the
or
of
which
31%
it
had
which
not,
then
during
raised a great deal
capital through
period,
sale
debt ratio of much
a
the
if
common
the
stock
convertible
were
securities
converted
soon
intb
stock. Actually, of the
al¬
billion of convertible se¬
curities issued during this period,
all
but about
$740 million had
common
most $2,
either
been
conyerted
or
re¬
deemed by Dec. 31, 1953. Despite
the large acquisition of common
stock capital, the debt ratio has
risen over the period so that as
Dec. 31, 1953 it was approxi¬
mately 39.5%. At the end of 1948,
of
the
before
features
attractive
were
since that
conversion
fully effective, the
debt ratio reached
and
a
high of 50.5%
time has been
de¬
At June 30, 1954 an addi¬
clining.
tional $380 million had been con¬
verted and the ratio then stood
at
35%.
envisage
foregoing brief sum¬
the System's financing
I trust that you can
the difficulties with
which
would
of
mary
program,
it
have
been
con¬
fronted had it started with a ma¬
terially higher debt ratio or if it
had
permitted
of its
common
the
attractiveness
stock to be dimin¬
determine what
made to
needed for the sale
are
the
of
security and, on the other
hand, what covenants may later
cause
trouble
not
only for the
issuer but also for the purchaser.
the
One of
of
the
determine
help
banker
bond
is
the
for
its
of
debt
securities
senior
also
is
company
holder
the
long
be for
restrictive
that
the
of
are
number of
a
provisions,
limit what
common
the
from
cove¬
the holder in the
There
run.
those
the
the better the obliga¬
are,
tion will
other
therefore,
and,
that the less restrictive
nants
best for
or
stock
company
such
the
as
owners
obtain
may
in the
way
of
dividends
or distributions, which
hamper the company's
operation as a whole. On the other
will
not
hand, provisions such
assets
figure,
can
a
debt
unless
amount
or
be
to
as
that the
increase
cannot
company
a
net
its
current
certain
dollar
that future bond issues
sold
only if earnings are
certain number of times interest
opin¬
ion, bad covenants. Their effect
is that the company is allowed to
incur additional debt in periods
charges,
of
are
usually, in
prosperity,
when
my
it
should
various
ties, while in periods of adversity,
classes of securities which may be
when it cannot raise stock money,
the
it
is also necessary to consider what
simplification of the capital struc¬
ture can be accomplished which
will provide the company greater
ease, or
increased flexibility in
the raising of money,
and
statements
that there
are
must
are
cor¬
omis¬
no
might make the state¬
misleading.
Pricing the Securities
Now,
as
When
to pricing the securities.
the
security is registered
and
the
circular
prepared, the
provisions that are fair for both
work of the
buying or analytical
issuer and purchaser, so as to give
department is virtually completed,
protection to the investor who is
and the job is turned over to the
furnishing the money, and at the
same
time not to unduly restrict syndicate or selling departments.
However, all during the period of
or hamper the company which is
study and investigation it is neces¬
raising the new capital. It is the
sary to be in touch with the sell¬
general opinion of my firm that
ing department, as there is no
if the company is a good company
use in preparing a
security for the
and well managed, what, is best
In
considering
the
and
ment
stock
and
probably be selling equity securi¬
for
that
sions which
to
ished.
used
registration statement,
see
rect
important functions
investment
funded
the
From
must be
covenants
It
difficult if not
foothill land in
grain that ought to be in grass.
"Perhaps the proposals to allow prices to find their
the
to
Here
the
[In Underwriting Securities
i
of
"I wish that
sold
there must
considered the relative prices
which would be received
by the
scribed.
9
Role of Investment Banker
law which
farmer, and he is
be
privately.
and schedules must be prepared.
The managing underwriter usu¬
at rea¬
for all of our people, be¬
central economic importance of agriculture,
a
stronger national economy."
prices. Over the
sold
and
consumer,
adequate, steady supplies of agricultural products
sonable
should
the
Of course,
sense
"It will
"Over
un¬
us
hungry people I've seen
really have a farm problem
at all, or if we just have large defects in the American
Economy and in world economy."
progressive agricultural program—will bring substantial,
lasting benefits to our farmers, our consumers and our
"Obviously, its most publicized feature is the flexible
price support system which it places into effect. At last
our farmers are enabled
gradually to redirect our agricul¬
ture toward better balanced production—and, at last, our
farmers are assured of greater freedom instead of the
rapidly increasing regimentation and Federal domination
they were sure to suffer under a continuation of the pres¬
ent system of rigid price
supports. Those who share my
deep feeling about the great importance to our country of
preserving the proud independence and initiative of our
farming people will share my pleasure in this new law,
to
seems
is the equivalent of only eight quarts of milk
a
year for each of us—then I note that we have about
200,000,000 more bushels of wheat in our bins than we
hinge
k
21
market which may be technically
a
good security but which is un¬
from a sales viewpoint.
popular
Furthermore
the
analytical or
buying department usually makes
studies of comparable securities
to aid the selling department in
the pricing of the securities. These
figures are made up comparing
the
security to be sold with se¬
that haye been sold in
curities
the past
exists.
ble to
and for which
From
prices
be when
growth,
as
market
possi¬
get some idea of what the
relative
may
a
statistics it is
of
the
securities
other factors such
in times of
popularity of the
stability
bad
business,
industry, and
management
are
considered.
I
hope
rambling
some
that, in this somewhat
talk, I have given you
idea of the work
which the
analytical and buying department
of an investment, banking firm is
called upon to do. As I told you
I
would, I have touched only
lightly on a number of items
which actually require days or
it is
weeks of research and study. Per¬
—thus
haps the best way to continue the
prohibited from selling bonds
preventing the company
from raising any new capital to
rehabilitate its properties or for
working
the
capital
company
at
may
a time when
need it most.
subject is to start now the ques¬
tion period and I shall be glad to
try to answer any questions that
you
may
have.
,
22
The Commercial and Financial Chronicle
(890)
Scores
in
power, tends to penalize the
successful, coddle and pamper la¬
Attempted Revival of New Deal
Philosophy
by the Conference
cal support
purchasing
for
on
unions, impugn profits, and
subject industry to all forms of
red tape and regulations.
When
power is concentrated in a cen¬
principle
as
force in business
a
The First National Bank of Bos¬
ton, in the August issue of its
monthly publication "New Eng¬
land Letter," calls attention to the
efforts
ence
the
of
so-called
"Confer¬
Economic
on
Progress" to
enlist the support of strong politi¬
cal groups to a return to the New
Deal
spending philosophy as a
of maintaining and increas¬
ing purchasing power and of pre¬
serving prosperity.
The
publi¬
cation at the same time points out
means
the fallacies of this economic phi¬
in
losophy
the
following
para¬
graphs:
j
"This
new
can
becoming
longer
no
the
progress
productivity is the master key to
superior standard of living.
welfare.
But
jobs
and
attained in this way.
growing
popu¬
prim¬
dermine business enterprise, stifle
ing by the government is essential
initiative, discourage risk taking,
and
production.
cast
proponents con¬
future.
tend that national defense and the
ditures
economic
poses
become
strong
by
the
spending of public? funds.
ingly,
the
not be
a
Federal
huge
Accord¬
budget
would
basic factor in determin¬
ing national policies while deficits
be
would
allowed
to
until
run
by the growth of
We are told that
overcome
country.
since
we
it to
owe
one
the
the
quence,
it
to
see
times
country.
the
should
country at
sustained
all
purchasing
power.
"The
adoption of this theory
as
national policy would open wide
the floodgates for pressure groups
make
raids
for the logical
the
on
expansion but in¬
caused
stagnation,
with
heavy unemployment estimated at
around
the
million
10
The
decade.
pansion
during
the
at
end
only major
this
Treasury,
assumption is that
of
ex¬
period
took
em¬
provide merely a short-term stim¬
ulus,
principally
to
consumer
goods. In its influence upon the
there is
economy,
between public
The
latter,
out
vast difference
a
and private debt.
when
wisely made,
jobs and debt is liquidated
profits, while losses are
of
borne
by
limited
a
creditors.
On
government
the
debt,
number
other
with
mulation of interest
of
hand,
its
con¬
increasing burden
upon
stitutes
straints
its
upon
theory
flow?
If
this
is
sound, then the more
the government spends, the great¬
the national
er
kind
of
been
tried
income. The
financial
same
philosophy has
times
in world
But in every instance it
to be like the mirage
history.
many
has proved
on
the
desert, the final outcome
being a sharp shrinkage in the
value of money accompanied by a
broad
extension
of
government
control.
this
program,
full
employment
would be assured by the use of
Federal
slack.
funds
It is not
keep
all
take
to
up
any
possible, however,
industries
other
and
hoax
cruel
a
as
be
can
data issued by the
Department.
If net
taxes of all persons
000 and over
were
income
taxes.
goods,
came
or
new
as
communities,
demonstrated
in
to
promised
Britain.
stimulate
de¬
more
the
work and security in old age, but
the price paid was the loss of free¬
dom.
free
society, it is the
consumer
by his preferences in
the market place that determines
the
be
type and amount of goods to
produced.
Our task
quently to maintain
of marketable
a
is
high level
industrial
tion. To accomplish this
our
economy must
reasonable
balance
conse¬
produc¬
objective,
be kept within
in
order
that
who
siren
people
voices
should
those
of
would make the government
brake
public
be
given
to
policies
the
of
Administration's
establishing
climate
private
structive
Such
program
business to
sound
favor¬
a
incentives
and
enterprise.
to
growth of the
country by expanding the use of
These
plant
policies
by invest¬
equipment.
in line with the
are
principles v that
have
responsible for 'the unsur¬
economic progress
passed
lightened.
has
been
In¬
run,
states'
of
£1,000 has
1938.
the so-called
are
forced
in
times
of
T. E.
tween
for the
into
debt
in
it
may
government
order
In
to
be
to
help
bridge the gap to more normal
business activity. But this is far
different from using public spend¬
ing
as a
Plumridge V.-P.
strument
power
to
and
as
redistribute
an
founded
lawyer and his client
a
"Without such
if
were
of jurisprudence
communications
be¬
not sacred, sealed and
privilege, how could
adequately prepared?
his
How could
defense be
any
be safe in
any person
life, liberty, property and pursuit of happiness? What
significance could there be to
As
and
we
any
bill of rights?"
fully expected, the Court upheld this privilege,
Commission's
the
attempt
to
pierce
it
was / un¬
successful.
When the Court of
vate
Appeals finally decided this pri¬
controversy and the SEC nevertheless still refused
to let go, we
said:
Otis
to
& Co.
& Co.
a
Exchange Com¬
relentless persecutor is
drop the Otis & Co.
has
been
established by
despite the fact
Corporation financing dispute with
finally determined by
it up, the SEC has
sum
case
Undoubtedly its hand
our
courts."
belatedly exonerated Otis
was
forced to
a
large extent
by the relevant determinations of the courts, wherein the
Commission would have done well to leave the controversy
in toto without
meddling.
We like to feel that the
Commission
change in personnel of the
during the pendency of this long drawn out
litigation also contributed to the result.
Here
The
Securities,
Broadway,
New
the
nounces
York
election
Inc.,
City,
of1
120
an¬
T.
Order
the Dismissal Order
and
SALT LAKE CITY, Utah—Rob¬
is engaging in a se¬
business
name
from
offices
beggars belief.
Building under the firm
of Robert R. Baker & Co.
offices
Streets
to
at
entered, staggers the imagination
The flood of
unnecessary
First
and
one
bewildered.
Henry W.
principal of the firm.
Center
Stead
is
It would be
to the
interesting to ascertain the immense cost
public of this SEC junket and this at
the Commission
This
securities
a
business.
a
An
against
complaining that it
appropriations
a
was
vast
were
this
surge.
John W. Kurth
John
a
W.
York
Partner
paves the way
for big government
Phalle
exchange goods and services with
which, in order to maintain itself
passed
&
Stock
Exchange, and
in
Andre
de
Co.,
New
York
away on
Aug. 1CT.
a
time when
Saint-
It
give
is
understaffed
public penalty for meddling.
Fortunately,
have been helpless
Otis &
Co.
was
in
a
position to fight, to engage expensive lawyers,
it has been
Kurth, member of the
was
grossly inadequate.
ordinary respondent would
financial
and to
was
no
ground until the final outcome.
The lesson has been costly for the
New
petitions,
motions, testimony, hearings, arguments, etc., etc., just
and that its
Brokerage
conduct
was
in
CASPER, Wyo.—Casper Broker¬
age
Co., Inc., has been formed
with
Aug. 11, 1948, when the Hearing
issued, to Aug. 24, 1954, six years later, when
Opens
ert R. Baker
the Atlas
historically unforgettable dispute.
chronology of the needless part played by the
was
leaves
curities
an
E.
Plumridge as a Vice-President of
the Corporation.
R. R. Baker
was
SEC and the NASD from
Theo. E. Plumridge
Eastern
wealth
spending
be
can
refusal
To
in¬
and income.
"Furthermore, deficit
was
that the Kaiser-Frazer
Of Eastern Securities
general policy to increase
purchasing
freedom
privileged?"
its
'wel¬
periods, and in
emergency,
necessary
which
mission
Form Casper
transitional
or perhaps
give evidence of such conversation or matter
privacy as came to his knowledge by virtue of such
"The extent to which the Securities &
'soak
to
party shall be compelled
a
"What would become of the system
•
country."
poor.'
"In
go
those in the
under
than doubled since
long
fare
the
groups
this
of this
increas¬
In that country, the pro¬
of total personal income
taxes contributed by
income
was
way:
trust and confidence'."
and
American
been
simple
attorney entrusted with the secret
or
by
law
common
facilities and
in
ment
counsel
cause
between attor¬
privileged."
allowed to
encourages
the initiative in the
research
Cyrus
con¬
a
risks and take
assume
communications
were
firmly imbedded in the
'No
spending.
and of providing
law that
common
of the
In¬
stead, wholehearted support should
on
the various groups may be able to
American
the
the conversations between
and their clients
It
the dominating force in economic
affairs and who would place no
ingly shifted to the lower-income
jobs.
Feudalism and the old slave
system provided everyone with
be
the tax burden
steady rise in wages.
Under certain conditions the
gov¬
ernment can of course guarantee
a
a
their
stead, we find that, after having
virtually liquidated the wealthy,
portion
"Under
that
masses
to
Great
"The
ignore
subpoenaed Harrison and Hull and de¬
on
States
destruction.'
vital, therefore, that heroic ef¬
the na¬
tional
solvency, which together
with our technological superiority
is the chief bulwark against Com¬
munist aggression.
additional
move
productivity
and
the
would
groups.
for
of
taxes
Furthermore, full employment is
inflationary as it tends to decrease
mand
bulk
Socialists, before they
into power in Great Britain,
to
been
United
report
a
"So
forts be made to preserve
The
shift
has
itself to
spend
the
have to spend an increasing num¬
ber of days working for the
gov¬
bear
:
editorial
our
tenet that Blackstone described it in this
is
reason, therefore, that, as our tax
burdens
expand,
those
in
the
lower-income groups will not only
but also will be forced
unaccustomed tasks
in
neys
boasted:
Federal Government for only
five months.
It stands to
the
to
have
the
force
about
to
workers
to
spokesmen
shall
after
ernment,
unemployed
'We
of
some
"We, in the public interest, were particularly out-,
raged, for since the earliest time, it was a fixed tradition
security. This is well un¬
by
the
Communists,
receiving $10,confiscated, the
the' wide variation in demand for
particularly for durable
the unwillingness of
tional
shown
nitely at full capacity because of
and
the
and
bumping
Treasury
lines of activity operating indefi¬
goods,
by
debt
are
Eaton, President of Otis & Co., and his lawyers."
amount would be sufficient to pay
the current running expenses of
the
"According to the advocates of
to
is
Federal
our
the ceiling.
Moreover, our Fedaral finance is
closely interlinked with our na¬
impression that the government
can, by some hocus-pocus, provide
something for nothing or that the
wealthy will pay the bills. This
from
dangerously
came
persecution."
accu¬
charges,
business enterprise and consumers.
"An attempt is made to give the
an
the
are
able
if
Federal spending creates pur¬
chasing power, why place any re¬
taxes
money
"The spending theory overlooks
the fact that government deficits
creates
a
to
business
stead
pur¬
1930's did not bring
ployment.
conse¬
government
that
has
In
pump-priming
place in Federal Government
other, and interest payments mere¬
ly represent distribution of money
within
for
we
an¬
the
over
The large Federal expen¬
in the
about
shadow
the
need not worry about the Federal
debt
dark
a
the interest of investors and
exhibition of
"Then the SEC
manded
inex¬
not
are
evidenced
as
that
whose
general'
an
Commission
money
since
wisely
resources
haustible,
fact
the
security,
spent
financial
derstood
they will
and provide
to have full employment and full
can
be
lays
basis that
the
our
must
"The champion spenders of pub¬
lic money try to justify huge out¬
neither of these objectives can be
country
guard
comes
our
the
nor
close to
excerpts when the
attempted to, pierce the sanctity of confidential
communications between attorney and client:
as
spending can
national welfare.
While the government must spend
whatever
is
necessary
to safe¬
largely
from
the
heavy investment in
tools and
equipment which has
made it possible to double real
wages in the last 35 years.
High
for
interest
Here
deficit
for
jeopardize
we
have
of
providing
steady jobs and of maintaining a
high level of business activity.
the
Have Been Started!
is
of national defense
use
cloak
a
surance
on
balances
and
as¬
and
position of the
"The
come
we
better
It is held that pump
The
checks
scrapped, and mistakes have a
profound and far-reaching influ¬
On the con¬
trary, unsound fiscal policies un¬
a
of
tem
static
provide
for the needs of
lation.
The closer
to. this realization,
Economic
\>
1
;
ence.
expand the economy
holds that the
group
is
economy
authority that determines
economic, social, and political
powers of a nation, then the sys¬
recovery.
another.
one
;
It Should Never
the
government spending to sustain
points out fallacies of the "pump-priming"
power,
3
page
tralized
Economic Progress to enlist politi¬
return to
a
jrom
Thursday, September 2, 1954
bor
August issue of the New England Letter," monthly publica¬
tion of the First National Bank of Boston, calling attention to
efforts
Continued
..;
a
lesson for future SEC
over.
The
controversy with all its horrendous
cost is at rest.
City,
It should
never
people. We hope
guidance.
have been started!
Volume 180
Number 5356
.
.
.
The Commercial and Financial Chronicle
(891)
their leases Hiawatha has consid¬
Texas Rail Official Optimistic
erable
interest
in.
the, Roc k
have
west augurs
is hoped to have five wells
drilled,
free
and
these
well for continuance of road's traffic volume and
y
power at
high level for indefinite future.
leases
evaluated.
been signed
of
to
cost
Contracts
under which it
Hiawatha
r
y
Mountain region and has, over the
last year, concentrated on getting
R. Wright
Armstrong, Vice-President, Fort Worth & Denver
Railway Co., says industrial growth of Texas and the South¬
earning
Securities Salesman's Corner
By JOHN DUTTON
its
During periods of rising mar¬
when securities are in a
•Melben Oil Company, of which kets,
Hiawatha owns 25% of the out¬ long upward price trend, it is a
standing capital stock, together historical fact that gradually good
partners, during 1954.
The following statement
by R.
Wright Armstrong, Vice-President
of the Fort Worth & Denver Rail¬
way Co., was received too late
for
inclusion in
wherein
able
number
a
consider¬
official forecasts
of
by various railroad executives and
others
regarding
the outlook for
carriers and the rail¬
individual
road
industry in general.
The
Fort
Railway, which is
tion
of
and
Denver
the Texas por¬
the
Burlington Railway
System, essentially depends upon
a
riculture
g
f
and
the bulk of its
important factor in the develop¬
ment
A little realized but nonetheless
of
cotton
the
Southwest
from
of demand
for export
merged
With demand
Mexico.
traffic
is the lack
and
in
grains.
Texas
in
the
lands
Melben
also
sub¬
on
Gulf
owns
of
full
a
greater
cised
in
made
true
retail
The
to
the
the
American-produced
grain considerably less
traffic
the
other
growth
that
movement
secondaries.
these
riods of
Texas
the
and
Southwest, especially in the Hous¬
ton-Galveston
to
all
within
miles
hand, the indus¬
of
Texas
of
the
Texas
Somewhat in
excess
Melben-Ohio
within
of
10 V2
Texas.
lands
10 V2
coastline.
of 50% of the
is
acreage
located
miles from the coast
Congress
Dallas-Fort
and
submerged
approximately
ratified
all
As the
increases
securities
South¬
h
west;
ever,
late
it
So
o w-
R.Wright Armstrong
some
is
vblume
earning
power
Forth Worth and Denver
season
rains probably assure good cotton
and maize crops in 1954.
will
remain
the
traffic
for
one-half interest
a
in the affected
acreage, and I un¬
derstand
and
;
that
expected
structures
at
of
Railway
level for
good
drilling operations
started in August.
Melben
Oil
Refining Company
800,000
-•# -
in
one-half
own a
approximately
submerged and
of
acres
other lands leased from the State
Continued from page 2
of
Mississippi and approximately
5,000
of
acres
leases
State of Louisiana.
The
Security I Like Best
sented by both
eral
Crude
Argo Oil and Gen¬
Oil
the
at
price
same
range.
Oil & Gas Com¬
controlled
is
by the Bene¬
Pittsburgh, dom¬
dum interests of
inant factors in the affairs of the
Plymouth
Oil
stock
is
York
Stock
close
or
oil
interest, resulting in 12
wells, one gas well and nine
in
whose
the
on
New
Exchange.
At the
1953, Hiawatha owned
of
had
Company,
traded
an
interest
in
285
oil
holes.
holders'
At the
annual
1,
it
reserves
were
estimated
to
be
approxi¬
mately 10,000,000 barrels and na¬
tural
gas
cubic
100,000,000,000
which may well be
by new discoveries
reserves
feet,
augmented
acreage
well
during the current
year.
of
is
being
for
a
drilled
on
one-half
of
block
a
in the vicinity of the
acreage
well.
stock¬
meeting held June
stated that -crude oil
was
a
such
the
At the present
Melben-Gulf's interest in
an
dry
The Hiawatha
pany
had
time,
from
in
crease
sists
capitalization con¬
1,000,000 shares common
of
dividual
salesman,
should be used
with
No
one
going to help
wells
in
the
the
interest
Diamond
North
"M"
Snyder
Balance
sheet
close
at
of
1953
have been a bit stronger,
earnings in past years have
been applied to further explora¬
tion, results are beginning to show
up strongly in 1954, and should
in;
tional
The
of
this
unitization
to obtain the
greatest ultimate
of production from the
recovery
reservior
underlying both fields.
Engineering estimates indicate
that
through
the .utilization
modern
recovery
duction
from
will
be
barrels
methods,
Hiawatha's
approximately
of
pro¬
leases
2,000,000
than
more
originally fore¬
cast.
In the New Haven
Field,
White County, 111., a water flood¬
ing project was begun in 1953,
which should
1955.
estimated that the po¬
recoverable reserves will
550,000
watha
bbls.
owns
During
reserves
of
a
which
43%%
a
1953
entered
was
gas
fully realized in
It is
tential
be
be
into
for
Hia¬
interest.
20-year
contract
the
sale
of
from the East White
Point
Field, San Patricio County
to Reynolds Metals Com¬
pany at an initial price of 13 V2
cents per MCF with an escalator
price clause providing for an in¬
Texas,
crease
of
.0015
cents
per*
MCF
each year thereafter.
During 1953
Were
a
of
five
good gas-distillate
field; with three more in the proc¬
ess of drilling.
It is expected that
Hiawatha will eventually have an
interest in possibly 10 wells in this
interest in the whole field.
purpose
total
wells have been completed in this
Scurry County, Texas, with other
operators in the area, for a frac¬
was
a
Field
Field,
total of 22 wells
drilled, in which Hiawatha
A contract has been entered
area.
into for the sale of this gas to the
Arkansas Louisiana Gas
at
a
price of
10
cents
Company
MCF.
per
Also it is estimated that with each
million
will
feet
$3
gas,
35
to
which
is
produce
distillate,
able
of
these
40
wells
barrels
as
Anchorage
Chicago Yacht Club.
price of approximately
barrel.
Income is being
at
a
per
realized
from
the
production
of
these wells at the present time.
since
Also
the
first
Hiawatha acquired a 50%
in
a
lease
of
1954,
interest
of
approximately 370
acres in Stonewall County,
Texas,
the
remainder
being owned by
the Benedum-Trees Oil Company.
Five
oil
wells
have
been
com¬
pleted
on
fayette
County, Ark., Hiawatha
acquired
400
this
a
acres,
50%
the
acreage.
In
La¬
interest in about
other
50%
being
owned by the Benedum-Trees Oil
Company.
well
and
was
In April,
completed
another
is
in
1954, an oil
this lease
on
the
process
of
drilling.
Hiawatha and partners
plan to develop this acreage as
rapidly as possible. As noted from
your
Your
a
Comes
First
Statement by the promoters that
they will
use
the investor's money
to
try and find oil or gas. Regard¬
ing Hiawatha, and considering
their
widespread acreage interests
from the Williston Basin to Tide-
lands, I do not know of
situation
where
buy
partnership,
into
an
intangible asset
very
of securities
have if he is to go on year
must
after year servicing an investment
clientele.
That intangible is the
implicit confidence that his cus¬
tomers have not only in his hon¬
esty but in his judgment.
of
some
accounts
man
I have
the best investment
ruined
successful
because
1%
2%
or
can
a
one
ruin
customer's
a
in the salesman's
sales¬
a
confidence
ability.
By this, I am not arguing that
"speculations" per se should be
eschewed.
However, there
conservative
there
are
ulations
investments,,
are
and
otherwise,
country,
the
in
Benedum
interests;
witness Ply¬
mouth Oil.
It is my
who
and
will
see
thought that investors
"look
the
duplicate
Oil
1
and
acquiring
through the trees
forest,"
their
General
some
can
success
possibly
in
Crude
Hiawatha
Argo
Oil
by
acquire.
it is
But
to
up
you
to
winnow the wheat from the chaff.
There is
no reason at all
why any
firm, or salesman, should go
along blindly with the times and
retail
trade
better
out
weaker
investments
This
ones.
has
for
happened
that he would buy any more com¬
mon
stocks.
Anyone could see
from the list that he bought most
of the second
and third
Oil ,&
grade
se¬
curities he has been
sweating with
all these years back
was
the top of the
in 1946.
Good
That
last big
bull
the peak of just
was
as we many
be
now
common
stock
at
present
Municipal
BorifcS*-
George B. Wendt, First National
Chicago, is general Field
Day .chairman. Other committee
members
are:
Vii
'
Arrangements: Floyd W. Sand¬
ers, White, Weld & Co., Chairman;
H. Bede, Julien Collins &
Henry J. Jensen, Eastman^
Dillon & Co.; Henry W. Michels,
Jr., Harris Trust & Savings Bank;
Vincent Newman, Allan Blair &
Co.; Fred T. Rahn, Illinois Com¬
of Chicago.
pany
Reception:
'
Elmer
G.
Hassman,
Becker & Co., Inc., Chair¬
Francis R. Schanck, Jr., Ba¬
con,
Whipple & Co.; Walter J*
Fitzgerald, Jr.
A.
G.
man;
Made
Are
You have to educate investment
clients and this is
if
and
stick
find
that
you
begin to
a
slow process.
keep to fundamentals
to
guns
your
after
see
a
while
the light.
believes, that
he
is
an
you
will
they will
If
a
client
investor,
show him that he has to act like
don't
one.
I
that
you
Jr., Channer Securities Com¬
Joseph P. Condon, McDou-
pany;
gal
&
Condon, Inc.; Richard J.
Brashler; Walter E. Lang, Harriman Ripley & Co., Inc.,; Henry W„
Meers, White, Weld & Co.
Dinner and Refreshments: War¬
S.
Yates,
Merrill | Lynch,
Pierce, Fenner & Beaneji Chair¬
man; Ronald M. Coutts, John Nuren
veen
& Co.
J
Transportation: Harold H. Spink,
A. C. Allyn & Co.; Linus F. Gre¬
A. C. Allyn & Co.; Ray Ol¬
E. Ray Allen & Company
Inc.; Arthur Tresch, Smith, Bar¬
ney & Co.
\
V
1
ene,
son,
Special Event 4: Wm. J. Corbett,
Jr., Burns, Corbett & Pickard,
Chairman; Hugh W. Blair, Halsey,
Stuart & Co.; John T. Boylan, A.
G. Becker & Co., Inc.; John F.
Detmer, Blyth & Co.,. Inc.; Philip
F/Koenig, C. F. Childs & Co.;'
Charles E. Lundfelt, McCormick
."
& Co.
;
Prizes: Lee H. Ray, Continental
Illinois National Bank
&
Trust
Co., Chairman; J. N. Faust, Kid¬
der, Peabody & Co.; L. M. Rieckhoff, Northern Trust Company.
Golf: Carl H. Allman, Lee Hig-
ginson
Corporation,
Chairman;
Harold W. Abele, L. F. Rothschild
&
Co.; Charles Wilson, Smith,
Softball:
Customers
But
Entertainment: George S. Channer,
Barney & Co.
Milton
American National
J.
Hayes,
Bank &
Trusi
Co., Chairman; John H. Kramer,
Harriman Ripley & Co., Inc.; Jus¬
tin
T.
Ottens,
Hutzler;
Edgar
Salomon
F.
Bros.
Grimm,
F.
&»
S.
Moseley & Co.
Tennis:
DeWitt
Davis,
Welsh,
Davis & Co.
think
any customer
have will ever resept the fact that you talk to him
may
seriously about the most import¬
ant things first—the safety of his
levels of 7%-8V2.
The stock is
capital—the fact that you can't
traded
in the Over-the-Counter
keep on year after year getting a
market.
7% return when money rates on
Gas
the
and
various degrees of spec¬
that your customers can
such a period
rela¬ moving into.
of the
oil
to
Chicago.
Bank pf
of the account in
can
independent
operators
the
at
Club of
suggested the purchase of less
market and it
investor
tively low figure, with
most
similar
a
payable
Co.;
price of the stock. To my
many times in the past and the
knowledge during the past three customers don't
find it very com¬
years, the low on Hiawatha was
fortable.
about five, the high ll1^.
The other day I was looking
Oil share prospects are being
over a
list belonging to a pros¬
offered to the public at any where
perous dentist.
His wife would
from 50 cents to $5 per share with
just about shoot him if she knew
a
Registration fees for guests $35;
member $20; mem¬
$10. Checks should be made
ber
customers;;
salesman
any
the
Alan
Customer
There is
that
of
non-resident
good
merchandise you want to sell, then
go find it yourself.
market
of
readily sale¬
obtain
Sept. 9 at the Bel¬
mont
a
speculative, non-dividendthorized and
paying security that went off seri¬
common stock
tj[ie Benedum inter¬ ously in price, or worse still went
ests own a substantial
majority. up the flue. One bad speculation
.
its
merchandise for
than
In
January, 1954, a gas well
wells located in eight differ¬ was
completed in the Greenwood
states, net production for the Field, Caddo
Parish, Louisiana,
year
accruing to the company from the Cotton
Valley formation
be reflected
being 402,525 barrels, average at a total
in future financial
depth of about 8,900
statements.
price received being $2.60 per bar-:
feet, which, from all indications,
•;
5 yt
rel.
In addition to its producing;
will greatly increase the value of
From the above it is evident
properties, Hiawatha held varying these leases.
that Hiawatha operates with the
Hiawatha owns
a
interests in leases covering 357,-*
43%% interest in this well, and best known names in the oil in¬
130 acres of undeveloped acreage.;
it is estimated that Hiawatha, in dustry, and from the record es->
in North Dakota, Texas, Wyoming,;
this particular acreage, has an un¬ tablished so far in 1954, a radical
Colorado, Pennsylvania, Louisi-; derlying
gas reserve
of 70,000, change in its fortunes is taking
ana, Montana, Kentucky, Ohio and
000,000 cubic feet in the Cotton place this year, which sooner or
New Mexico. In September, 1953,'
Valley formation. Since January later should be reflected in the
unitized
ferings, in order to
some
$10 au¬
outstanding. Of the
but
gas
and
cocktails and dinner will precede
the outing on
Harbor
is¬
grade
fact it is not necessary to sell new
issues, and go into secondary of¬
stock par $1 and 53,583 shares 5%
could
,
and
ent
Hiawatha
annual field day on
Friday,
Sept. 10, at the Knollwood Club*
Lake Forest,
Illinois.
A cruise,
up-grade port¬
third
is
Day
its
times
weakening them
and
second
sues.
To Hold Field
CHICAGO, 111.—The Municipal
Bond Club of Chicago will hold
in¬
the in¬
and
such
to
folios instead of
cumulative preferred
par
but next.
of¬
speculative situations.
For the retail firm
seen
Hiawatha's
year
Chicago Mun. Club
de¬
If the market doesn't provide the
Company and Gulf
interest - each
indefinite future.
were
only this
and
lend much promise for the future.
oughout
t he
not
condition holds
same
th
r
to your high standards, youTI
stay in the investment business—
up
investing
drought
three -year
By
cus¬
Offered to you that
they measure
exer¬
outstanding leases, whether within salesman rebuild a clientele if he
the or without the 10 Vz mile l'imit. has been a good fellow
and gone
consequent development through¬ Negotiations have been completed along with the tide, selling securi¬
with the Pure Oil
Company for ties that are overpriced, or repre¬
out West Texas and the Plains
the drilling of wells on two of
sentative of weak companies. In
country of the Texas Panhandle, Melben-Ohio's known seismic
fered from the
4%.
your
are
line with
your
first of all, and by mak¬
ing certain that if new issues are
Worth metropolitan areas, and
territory nat¬
urally has suf¬
investments
regarding underwritings and
working interest in leases affect¬
ing an additional 31,360 acres of
lying
case.
i
tomers
selecting offerings to be
at
public.
be
must
care
for
On
d i ate
of
then
sound
holding
over-priced land
pe¬
•
its
State
become
during
increasing confidence
submerged lands.
During
than it was a few years ago, it is
rising
markets, there is a
1953, legislation was passed by the
to
be
expected that even with Congress of the United States con¬ creasing supply of attractive
ferings
and' a
concomitant
good production there will not firming the title of the State of
for
vol¬
in
the
values
demand
abroad
trial
m m e
with the Ohio Oil
Company, owns
in equal proportions approximate¬
ly 81,470 acres of leases acquired
be
traffic.
i
the
produced
otherwise would be the
for
Traffic
cotton
est
or
products
ume
of
cotton and
Worth
with
1,356,031
in its
territory during 1953, the fore¬
cast of 1954 is 1,000,000 bales.
issue of Aug.
26,
our
published
we
Contrasted
bales
23
Charles
W.
Baker
Charles W. Baker, Jr., of
Bissell & Meeds,
passed
of 53.
away
Jr.
Laird,
Wilmington, Del.,
Aug.
26 at the ago
24
(892)
The Commercial and Financial Chronicle
It
/ MUTUAL INVESTMENT FUNDS
Thursday, September 2, 1954-
...
Pays to Squeak
..V"
"
NATIONAL
Mutual Funds
SECURITIES
SERIES
7
long adjusted to
varying investment
350
secu¬
rities of American
For
porations.
cor¬
volume
FREE
to
of 24 per
information folder and
prospectus, clip this ad
and mail with your name and address.
the
1,000,
are
each
the
above
CORPORATION
ciaries
Eslablithed 1930
normal
ex¬
of
contributing directly to the
young
consumer, are importantly influ¬
enced by their greater number.
Mr. Driscoll points out: "Con¬
struction
of residential
housing,
schools, hospitals and other public
is
will
become acute
in many localities as the
younger
portion of the population matures.
imitpoiiffiii
Greater
motor
m minis
cars
quire
with
fund
mutual
diversified
selected
securities
for
long-term growth of
Prospectus may be obtained
from investment dealers or
Parker
200
of
families
more
to
car
made
ac¬
their
meet
toll
more
greater consumption of
the first
has
A
of
use
Corporation
NET
ASSET
value
share
per
of
Futures, Inc., a mutual fund deal¬
ing in commodity futures and
has
been
than
75
t
gains.
Earlier
also
were
soybeans
the
cling
companies and the field forces of
Custodian Funds
life
insurance
held in New York
day
the
at
business
was
City last Tues¬
Columbia
University
Club.
BOND, PREFERRED AND
was
COMMON STOCK FUNDS
ing
purpose
to establish
a
of.
the
meeting
plans for develop¬
program
to
be
sponsored
jointly
The Keystone
by the National Associa¬
tion of Life Underwriters and the
National
Association of
Invest¬
Company
50 Congress Street, Boston 9, Mass.
Please send
your
describing
Organization. *nd the shares of your
me
Funds.
ten
V
ment
Companies. Chief aim of the
joint effort is to increase mutual
understanding of the operations,
objectives and services of the two
prospectuses
O-aa
businesses
Name.
tatives
Addrea.
of
render
City......
..
so
that field
each
better
will
be
service
able
to
Group
stocks
was
begun
of
to
devoted
to
out¬
gram.
Those attending on behalf of the
National
.
What is
Association of Life Un¬
derwriters
were
Benjamin
D.
Dividend Shares?
Salinger, David B. Fleugelman,
Wilfrid E. Jones,
Stanley J. Lons¬
dale, Lester O. Schriver and Merle
G. Sommers.
v
Those
tives
company
a
as
representa¬
National
Association
of
mutual invest¬
(mutual fund) offering
Townsend and Charles M.
Werly.
Dividend Shares is
investment in
attending
the
Investment Companies were
Edward B. Burr, Robert E.
Clark,
Albert R. Hughes, John M. Sheffey, William F. Shelley, Morris M.
,
ment
of
a
diversified list of
which
of
in
a
In
serious
a
which
was
have
been
opinion, the fear
our
business
setback
broadly held until
so
recently has
dissipated.
been
now
largely
is
beginning to be recog¬
nized by the investing public that
the
highly satisfactory earnings
power of many leading companies
is not transient,
nor necessarily
armament
illustrations
obtainable
in
shareholders
the
on
of
activ¬
the
class.
The
Fund
second
today's
market,
given figures
4
held
for
the
com¬
pany's Common Stock Fund
Capital Growth Fund.
ANNUAL
stone
8%
Report
Low-Priced
noted
in
gain
a
share
per
during the fiscal
31,
1954.
and
net
Shares
capital
shown by the
bond
in
Fund's
the
gross
was
;
.
;
r;
,
Fu
as*et
n
value
somewhat
a
be
to
the
Keystone
the
assets
July 31, '54
Jan. SI, '54
$48,472,585
$45,230,752
Number
2,558,348
THE
20,415
ANNUAL
Lower-Priced
Stock
Fund
crease
in per
-
*
"Editor & Publisher"
The
Key¬
Common
reported an in¬
share net asset value
21%
the
for
fiscal
Report also noted that the
has
Fund
formed
consistently
class
its
l-»vv-priced
the
12
The
177.82%
ta 1
o
of
illu¬
1949
During
the
Standard & Poor's
-
Stocks
Low-Priced
aitd
Bar¬
Stocks
reg¬
gains of only 75.98%
85.97%
in
both
gain
June
point:
Low-Priced
20
indices
t
since
this
period
same
other
and
postwar low.
Fund's
strates
outper¬
just passed, and
period since the
longer
1949
index
stock
months
the
June
and
respectively.
low-priced
class,
while
the
earnings have con-
net
Shares
assets
of
in the
concen¬
trates—electronics, nucleonics and
television.
i"In
-
the
,
months, for
example," Mr. Just pointed out,
"the Fund has been adding new
nine
past
shareholders
at
record
a
month.
a
holders
day.
It
that
at
about
especially
these
located
of
rate
a
is
100
shareholders
new
>'
The combined
are
not
only throughoutthe
United States, but in a number of
foreign countries."
DAVID B. OGDEN and Landon T.
Clay
have
Investors
and
joined
$8,222,572
1,334,317
1,281,639
Massachusetts-
Trust, the nation's oldest
largest
open-end
investment
company, as industry specialists
in the company's research depart¬
ment.
Mr. Ogden, until recently, was
assistant treasurer of the Univer¬
sity of Rochester and
previously
in statistical work with Kid¬
was
der, Peabody & Co., in Boston.
Mr. Clay was formerly a senior
analyst in
the
department
of
security
the
the
research
Bank
on
of
New
research
electrical
•
6,122
"
-
paper
5,929
.
net assets of the
$260,176,000
Aug.
on
30,
1954.
Electronics
Increase 64%
nine months ended
Aug. 31, 1954 sales of Group
Securities, Inc. increased to
gain
of
64%
the
over
corresponding 1953
period, Herbert R. Anderson,
President, stated yesterday.
August sales, he said, were
up 206% over last Augusts
The
on
Fund
Aug.
reported
31
of
assets
$64,616,406,
compared with $52,493,318 a
year earlier, an increase of
23%.
Dividends paid during the
period from net earnings of
the
Fund
Fund
today
the $50 million mark in
the
first
time
to
crossed
resources
culminate
»
The
announcement
was
made
1
20c
a
share from
net
invest-
|
ment
agement
Corporation,
national
distributors of the Fund.
J
tember 30 to stock of record
!
September 10# 1954.
Mr. Just reports that the Fund's
amount to
resources now
$50,109,143 as compared with $28,835,000
on Jan.
1, 1954. By way of strik¬
ing
contrast,
Television - Elec¬
tronics
Fund
cal
year
but
$290,399.
The
in
closed
1948
mutual
its
wtih
fund
first
assets
executive
■
income,
WALTER
payable
I. MORGAN,
Seo-
President
fis¬
of
at¬
150,785 for the 1953 period.
lar company to an aroused invest-
$2,-
!
|f
Quarterly Dividend
by Paul A. Just, Executive VicePresident, Television Shares Man¬
372.973, compared with $2,-
to
"7
,
!
of the calendar year.
tributed the rapid development of
the Fund into a multi-million dol¬
amounted
99th Consecutive
a
$21 million increase since the start
THE COMMON
STOCK FUND
common
of
stocks
selected
for
their
investment
Group Securities, inc.
quality and income possibilities.
Affiliated
Learn the facts about this mutual fund.
Send for
a
free copy
of the booklet-pros¬
pectus by mailing this advertisement to
calvin
Fund
bullock
A
are
Please send
on
me a
fjertroje
PUTNAM
Common Stock Investment Fund
Investment
Established 1894
One Wall Street
fj/ie
New York
objectives of this Fund
long-term
capital
and
income
growth
for
its
Prospectus
free booklet-prospectus
shareholders.
upon
FUND
of ffjodton
request
Name.
Address.
a
prospectus
on
request
from your investment dealer
Dividend Shares.
Lord, Abbett & Co.
New York
—
Chicago
—
Atlanta
—
Los Angeles
FDTMam Fund Distributors, Inc.
50 State
Street, Boston
in
equipment, metals,
and publishing industries.
Keystone Custodian Funds to¬
taled
for
a
noteworthy
THE SIX-YEAR-OLD Television-?
Group's Sales
of
rate
More recently this
rate has accelerated. In July," he
noted, "the Fund added share¬
1,500
share¬
holders
10
$9,789,558
outstanding
Number
than
recent years
which the Fund
York, specializing
July 31, '54 Jan. 31, '54
Total
interest in
or
ending July 31, 1954.
year
23
of
S-4
than
more
20,075
•
Report
stone
in
2,505,290
share¬
of
holders
d
ending July
average
a
,
that swings the hammer
that drives the nails.
that squawks the loudest
babe
of
than
performance
$11,855,517,
;
putting notions harmful
continues
outstanding
ron's
Key¬
more
net
year
This
better
of
Bond
of
a
fields in
largest
istered
THE
.
get the dough.
Funds, with total net assets on
July 31 of $48,472.585—a 12.5%
increase over a year earlier.
values
were
stocks
show.
the
soft-soap-spreading
trick that palls and stales
higher rate than those
a
the
of
upon
for
anybody's head
The
Total
a num¬
have recently
in price.
In
improve
their
lining the subjects to be studied
as
part of the Committee's pro¬
?
told
were
years
fleas.
the
of
art
Without
then jtinued at
stocks have
"Interest has spread and
of
that
But the guy
Is the guy
quarterly message.
ber
sheds
long
shareholders
Securities
guy,
both sides
long,
common
activity,"
ness
to
The initial
meeting of the Joint
Is
of
In the
Committee
the
on
on
first
begun to reflect the growing ex¬
pectation of improvement in busi¬
represen¬
clients.
State..
lard
and
"PRICES of
B-3
The
coffee,
short.
As
The initial meeting of the new¬
ly created Joint Committee repre¬
senting the nation's investment
the
profits
a
.
to
headaches
ones
—From
year
■
kicker;
a
Is surest to be fed.
cocoa,,
market,
that
one
the
in
peaceful
a
hard
Reader
a
,
squeaker
the grease.
gets
be
f
'
please;
dog that does the scratching
be
to
The
more
of
this
made
side, and in onions
of
for
the
the
within
share
per
that
to
never
means
Are
mutual
any
Sent in by
But the kickers in the chorus
this
ity, but solidly established and
worthy of appraisal as such."
Hold First
eystone
that
that
responsible
cents
dependent
NALU-NAIC
It
position in coffee fu¬
during the past two weeks
"It
Berkeley St., Boston, Mass.
'• A;*
.
short
tures
general, in
children and the extensive
Is
hate
I
the
year's time.
a
tial
appliances."
believes
time
neglected for
load
an¬
at
doubled in price
be expected.
"Electric light and power com¬
panies are finding their residen¬
may
increasing through the
heavier use of electricity
resulting
partially from the 24 hour care of
capital and income
The
be
Consequently,
gasoline
of
portfolio
as
second
a
roads and
a
will
use
needs.
A
or
share
per
Donchain
is
indus¬
value
nice
But the
-
fund
industries, while not
11 months, Rich¬
Sept. 30, 1953 was $1.65, and
rose
to $3.41
on
Aug. 28, 1954.
rate
entertainment
wheel
And
on
increased
and
dou¬
end of the Futures Inc. fiscal year
the
of
more than
Donchian, President,
Asset
benefi¬
Other
facilities
D.
principal
expansion, according
to a survey by Robert S.
Driscoll,
Vice-President, Affiliated -Fund
Inc. are the drug, food, shoe, con¬
tainer
the
nounced.
the
population
tries.
ard
in the past
Mr.
Among
120 Broadway, New York 5, New Yodc
*53
Is
commodities, has
bled
rate
1.5 million po¬
being added
as
tential customers
year
birth
current
pectation.
NATIONAL SECURITIES &
RESEARCH
annual rate of
an
a
I had rather be at peace;
But the wheel that is a
It's
was
17 births per 1,000 are now
gear¬
ing their estimates of future sales
objectives,currently in¬
over
'
By ROBERT R. RICH
INDUSTRIES whose outlook
Mutual Funds with
vested in
I hate to be
^
..
/
squeaker,
Distributors Group, Incorporated
63 Wall Street, New York
5, N. Y.
t
'■
I
Volume* 180
Number 5356
Continued
from
The Commercial and Financial Chronicle
.
(893)
5
page
FormerSodaDispensdrs
•1
Our
at $80
share and still leave
per
it
with
the huge
Prices
some
for
Investment Company Policy Test
feels that
trust's failure to
a
its
vote
stock
=====
ers
be entering
what
market specialists call "a stabilization area," which
uncommon
for
b6
new
is getting
money,
more
attention
from the
now
"money market group," but the opinions in the financial district
to indicate that
appear
comprises unfair dis¬
in any
startling developments
no
sections of the list because of
of Governments.
issue
new money
1
While the current statement
by H. I. Prankard, President of
Fund, Inc. and of American Business Shares, Inc.,
together own a highly-prized 115,000-share bloc of Ward
The
Affiliated
which
stock,
of
well
as
Central
the
as
Illinois
possibility
the
communication from C. A.
a
Securites
of
bringing
trend
Johnson, President
willingness of fund management to take
a
stand
in
a
disclosed
aversion
an
to
participation
attractive issue.
Mr.
end
in
expressed
elsewhere*
conduct:
"It
seems
to
Mr.
case
be
is
Griswold's
revelant
as
an
about
belief
and
that
with
in
companies
controversial
rule
should
act
matters.
We
nor
be
whitewashers, but of honest
protectors of the interests of
our
A
Jn several fundamental
For
and careful
an
epochally important
of
controversial
procedures will this
proxy fight provide
a
the
the
the
corporate
them
cast
for
single
a
director,
or
distribute
them
several candidates, as he
pleases. For example, at a
meeting to elect 10 nominees, a stockholder owning one share
straight voting,
Contrastingly, under the more
simple majority of the votes elects an
a
of the opin¬
are
a
obligations.
little
very
It
is
being"
long-term bond by the Treasury
tailored
this kind of thinking,
a
to
these
meet
re¬
number of investors
continuing to put
to work in
money
the 2V2S of
as
the earlier maturities of the
1963-68
and
commercial
banks, however,
acquisitions of these securities.
usual
term end of the
entire
have
been
and
still
are,
the smaller out-of-town deposit banks
continue
list,
to
of Ward's, the elec¬
individuals.)
are
his
effective method for lim¬
use,'
,
J,'
.
though there has been
even
some
in
price
many
when
the
been
syndicates
to
It is
work
in,
declined
have
The
terminated.
were
merchandise.
Tax-exempt
closing
full calender
as
the fall of the year
of
to
remove
it
appears
pickup which
to be less
should
about commercial loans
specially advantageous stock buying price. For
the executive's incentive, Mr. Wolfson does instead
believe in the
propriety of liberal bonus technique.
To accomplish the all-around advantage of stockholding,
will
prescribe the ironclad
in
minimum
amount
he has been
in
the
rule
that
all
officers shall
own
he
stock
equivalent to
one
year's salary, provided
business for
two
years.
Fisher
Mr. Fisher lent his soda fountain
of $3
sum
per
those
In
cialized
days Mr. Fisher
in
banana
coffee float
heard
never
"stock
of
spe¬
splits
"dividends"!
and
He
had
splits"
or
"quarterly dividends"!
what
had
he
learnad
from dispensing sodas, Mr. Fisher
"Two things—one, the cus¬
is always right; two, the
boss must make a profit"!
said,
tomer
Mr.
Fisher,
who
shares
with
other members of the Ancient and
Honorable
to
Guild,
the word,
use
the
never
vow
"soda-jerk," feels
that soda fountains today
hot
they were
in 1918. They're too "mechanical"
and the
old, tempting odors of
nearly
much fun
so
least
as
chocolate
Nevertheless, he
gone.
mends
and
are
that
every
ice
one
have
one
soda
cream
syrup
recom¬
at
week.
a
With Hooker & Fay
(Special
SAN
to The Financial
Chronicle).
FRANCISCO,
R.
Hooker
&
members
Beach
Fay,
New
San Francisco Stock
Calif.
now
Pine
340
the
of
is
—
with
Street,
and
York
Exchanges.
to
The
Chronicle)
Financial
SAN FRANCISCO, Calif.—Paul
Secor has become connected with
Managed
41
Investment
Sutter
viously
Street.
with
Hannaford
Sutro
&
Programs,
He
&
was
pre¬
Co.
and
Talbot.
in
shall
the
be
event
cut
dividend
is
in
of
a
STATE
cut
at
time, officers'
proportion, and not subsequently raised
*
"•
"
t'
Company——Its Responsibility as a Public Stockholder,";
Twenty-Sixth Annual Convention of the National Association
Commissioners, Cincinnati, Ohio, Sept. 1, 1943.
address before the
of Securities
tightening factor
matter of gossip, there
a
be officially pushed
and
in the past
MUNICIPAL
ap¬
SECURITIES
under the 3%
Although the commercial banks
do not appear
there
'an
seems
to be
influence
loans.
The
to be too flush
no
upon
as
the large money centers
in
far as surplus funds are concerned,
shortage of loanable funds, and this is having
the
which
rates
out-of-town
are
being charged
deposit banks have been
for
some
putting money
The easy money
time
now,
policy, which has been in effect for quite a
is beginning to
have its effect
Not only
are
upon
the "refundable
Aubrey G. Lanston
corporate bonds being
& Co.
INCORPORATED
#
see
Investment
a money
case
passing amount of talk about the prime
sector" of the money market.
❖
felt soon, there
itself
any
that, far from merely providing a show for the
public's enjoyment, the incipient Montgomery Ward situation
actually embodies many fundamental principles of investment and
corporate finance.
we
a
As
year.
a
into the Government market because of the down-trend in loans.
restored.
1
Thus,
dividend
than
making
and, in spite of
level.
following Mr. Wolfson's principle, the rule will be insti¬
that
more
be
being much of
to be
"The
W.
U. S. TREASURE
than has been the
concern now
during the balance of the
'
'
!■
seasonal
rate, and when it will
★
Robert
present
approaches.
The loan trend continues to be downward
bank
the
Lily-
Tulip
Cup
Corporation,
sizeable amount of
a
financing is also expected
pears
until
the
corporate bond syndicates is clearing the decks for the fall
■offerings, which will bring into the market
a
put
especially those bonds which
The Stock Option and Management Incentive
salaries
executive
an
minor decrease
a
of the money which would have gone into the
Also in here relevant to the broad field of
corporate finance
is the question of the use of the stock
option. Mr. Wolfson is
opposed to this instrument for executives' incentive motivation.
This opposition stems from his-conviction that no one
should have
the privilege of a
tuted
dispensers and
of
big factors in the longer-
Mr.
for
Also
of
soda
With Managed Inv.
purchases of Government securities by these investors.
corporate securities,
and-furthermore, he promises to
from the company
permanently should he win control/
that
former
Loan Trend Favorable
From
a
broths
(Specir.l
be* the
higher yielding Treasury obligations has
Wolfson's interest, the stagger system constitutes
roadblock of delay in electing a new slate; but the cumulative
voting law does not seem to hurt him.
He hopes that the "un¬
democratic" stagger can be eliminated
by his lawyers' ingenuity
^
the
erhood
Gordon
to
appear
3
,
of
The
voting
'
Ma-
tive Secretary
Corporate Market Attracting Funds
Pension funds
provision.
time
Dan
honey, Execu¬
reportedly the volume buyers.
the effects of the cumulative voting
system—by reducing
the number of candidates for election each
year, and by thus raisiftg the number of votes required to elect each director
annually.
Part of the past agitation
against Mr. Avery has stemmed from
the director-stagger system which he instituted in 1950 to
limit the
effectiveness of the Illinois law's
mandatory cumulative
in
-
According
1964-69s.
the lead
In this issue,
age
Blyth
Co., Incor¬
&
are
have taken
the
the
e r
porated.
although the commercial banks have been size¬
in
Fis.her,
of
sarsaparilla
of the aforementioned securities, non-bank investors
iting
.
done,
able buyers
reported that
an
outstanding
1962-67,
bonds, such
It is indicated that
Under the stagger
system, only a part of the board stands
for election in any one year.
In the case
board constitutes
few cases,
a
2Vfc%
in the
The staggered
being
long-term bonds would have
are
firm
Asked
as
slate.
tion is limited to three
is
year is taken into consideration.
done in the 2V4S of 1959-62 as well
are
director.
one
business
It is reported also that some rather important buying is being
-
1967-72.
bunch on fewer than the
all of his 10 votes on a
100,000 voting shares in a
corporation, and 10 directors are to be elected, a stockholder
or
stockholders, with 10,000 shares is assured of the power to
choose
the whole, reports
according to advices, the principal buyers in the 2V2S due Sept. 15,
thus posseses 10 votes which he
may
10 candidates, or even
concentrate
Thus, if there
on
This
among
single nominee.
are
Intermediates in Strong Demand
voting
significant test.
of
market, and it would be
on
of
k
o
for the munificent
likely take into consideration the current pattern of
Based
r
Street
Wells
Pres¬
-
ident
b
Dispens¬
Wall
a
week!
amount
offering of
Vice
obligations, in spite of the talk
somewhat, but,
presently
an
boasts
Honorable
Soda
talents to the Rex Drug Company
in Salt Lake City, Utah in 1918
presently outstanding longer-term Government obligations.
laboratory.
*n v*ew
the assurance by Mr. Wolfson that
"Win, lose, or draw the first
year, we will stick with the fight."
The full-dress test here will arise
through the existence of
cumulative voting combined with
the stagger system.
(Under cumulative voting each
voting shareholder is en¬
titled to votes equal to the number
of his shares multiplied by
the "number
of directors to be elected. He may bunch all his
to
the
upon
money
«S™£artlCular*y true
votes
issue of
in Government securities
will
The longer
To be sure, volume and activity in this section
satisfactory
a
new
quirements.
phases of corporate finance
example, in the operation
a
would most
Laboratory in Corporate Finance
Wolfson-Ward contest furnish
that
pointed out that
'•
Practical
that
effect
stockholders."
'
»
a very
issue in the longer-term classification,
money
well.
very
indicate
ion
we
that of constitutional
new
especially when the time of the
energetic and sincere. We must uphold
management
believe them to be
right and oppose them when we feel
they are wrong. Our role is neither that of
professional dissenters
when
its
run
attention, with pension funds ahd
Money market specialists, in not
irtvestment
firmness
about
holding period has passed for this
distant Government
more
of the list have been slowed
■
my
a
acting
philosophy
excellent
have
Long-Terms Acting Well
.
In. that
-
deliberately
should
the list is also getting
of
The
a
in, in advance.
to
up¬
the smaller commercial banks the important buyers.
Griswold,
Chairman
Massachusetts
Investors
communication to this colunm of June
7, 1951, pointed
out that it is too late for
any ''outsider," including the investment
company, to speak up at the annual meeting after the
proxies
are in.
But this
difficulty is obviated in a situation like the pres¬
ent incipient
proxy contest, wherein the funds' influence can be
of
The six-months
Merrill
thrown
seems
security and the yield is considered to be favorable.
subscribing
"if-you-don't-like-it-sell-your-stock" philosophy.
Trust, in
securities
demand, although the
In the intermediate-term sector there is considerable in¬
con¬
intra-company dissension—even
to the
yields of these
still in
are
terest, with the 21/2% due Nov. 15, *1961, according to some,
troversial situation has in the
past been the exception rather than
the rule. As pointed out
by this columnist previously, fund man¬
agers have generally
situations involving
in
course.
Co., evince constructive interest in
about
management
improvement,
short-term issues
and
Former
now
to
long-term
a
*
of
member—Robert
looked for
are
Ancient
Guild
happening when the market is getting ready
financing by the Treasury. The October operation, which
new
will
shareholders.
own
Has Wall St. Member
.
This Montgomery Ward proxy battle will also
bring to light
investment company policy regarding their
managements, taking
of an affirmative stand for one side or the other.
Mr. Wolfson
franchisement of its
an
By JOHN T. CHIPPENDALE, JR.
of Government securities appear to
money
is not
Value will out!
Governments
on
The
=====
net
working capital of $478 million.
Or simply a special dividend of $15
p'er share could be dis¬
tributed directly to
the stockholders.
/
Reporter
#
•
•
company
25
called and replaced
are
also
years
large
15 BROAD
with lower
being refunded in
ago
that the easy
like
money
number of refunding
corporate field.
a
coupon
issues, but preferred stocks
manner.
It
was
not so many
market conditions resulted in a
operations being
carried out in
the
ST., NEW YORK 5
WHitehall 3-1200
231 So. La Salle St.
45 Milk St.
CHICAGO 4
BOSTON 9
ST 2-9490
HA 6-6463
2G
(894)
The Commercial and Financial Chronicle
Continued
jrom
4
page
estimated at 9.227,000,000
was
kwh., according to the Edison Elec¬
postwar high, exceeding the pre¬
vious record of 28,900,000 bales in
tric Institute.
This represented
The State of Trade and
'
at least do
tion,
not
which
report business any worse.
had
leveling off.
Industry
been
(2) Inventory correc¬
depressing factor for many months, is
warehouses, steel mill customers gen-
a
for
Except
erally have their stocks whittled to desired size.
(3) Plant-wide
shutdowns
virtually
pleted.
level,
are
will continue to improve and (5) Improve¬
fairly general, not confined to a few items or companies,
It is noted in some of the products that had been lagging most,
such as stainless steels and carbon and alloy bars.
Despite reduced inventories, customers can now get such
prompt delivery that they are in no hurry to place orders.
Deliv¬
ery within two weeks can usually be obtained on common sizes
of
the like week in
plates, structural, hot-rolled sheet and strip, hot-rolled bars,
wire products and at least some cold-rolled strip.
Steels base prices remain firm, although mills are absorbing
of
1953, 144,851 units
The
past
week
output
to
a
car
and truck production last week plunged to a
five-day low for 1954, "Ward's Automotive Reports" stated.
Volume—110,912 units—was off 5.2% from the previous week
found Chrysler Corp. and
Studebaker completely shut down
for model changeover and General Motors Corp. and Ford posting
and
reach
said
435,000
that while
domestic
August
output
car
improvement.
Production
declines
lined
up
for September range from
at General Motors
Corp., car lines to 74% at Chrysler
Corp. and 17% at Ford Motor Co., with only the latter producer
48%
unaffected by model changes.
^
to 150,000 and
perhaps 200,000 care are expected to be lopped off domestic new
car field stocks by the September-October
changeover shutdowns,
paring inventories to the lowest point since early 1953.
"Ward's"
vehicle of
is
said
1954
1,000,000-unit milestone.
scheduled
General
for
Motors
up
that the industry completed
its 4,500,000th
Friday of last week, with Chevrolet reaching
on
completion
will
car
The
1,000,000th
this
Wednesday.
leave
the
Ford
the
of
The
at
Mercury's St. Louis plant.
1
In production last week
among the Independents were Hud¬
son, Nash and Packard.
The Dodge shutdown, however, found
all four Chrysler Corp. car lines closed
tight, with Chevrolet and
Pontiac working towards similar suspension in
mid-September.
.
Canadian production,
only active
car
maker and built
estimated 2,025 passenger cars,
industry truck count hit 422 units.
A week
while the combined
earlier
4,443
meanwhile, was cut in half by General
assembly lines.
Ford Motor Co. was the
car
and
cars
an
trucks
605
week,
preceding week and 6,184
1953
cars
4,443
and
cars
cars
trucks
by
Groups Last Week
manufactured.
were
failures,
as
The
wholesale food
to $6.89 oh Aug.
the preceding week.
which
occurred
Higher
week
Last
important turn in the steel market
turn
in
warehouse
That's significant because of the diversity of consumers who
get their steel from warehouses, it adds.
As a whole, warehouse
customers are the smaller users of
steel, but because there are a
great many of them they form a market for
approximately 20%
of all finished steel sold, it declares.
It further states, the upturn in warehouse
business is noted
not
only in tonnage being sold but also in number of orders. The
upturn is coming not only from the larger customers but from
/"
the smaller
Some
too.
ones
warehouses,
is up 20 to 25%
over
fair, because that
comparisons
was
with
"Steel," reveal their August business
July.
Perhaps comparison with July is un¬
a very poor
month, but if you want to make
says
the
"normal" months of
May and June
you'll find August still is ahead by 10%.
Three things are probably
causing the improvement, the trade
paper asserts, adding that steel inventories have been
pretty well
more
liquidated; most consuming plants
tions and
cases
is
The
I
that
business
as
a
are
whole
is
back to
pretty
work
good,
after
and in
vaca¬
some
improving.
American
and
Steel
Institute
announced
that
the
operating rate of steel companies having
96.1% of the steelmaking
be at an average of 64.8% of
capacity for the week beginning Aug. 30,
1954, equivalent to
1,544,000 tons of ingots and steel for
castings as against 1,515,000
tons and 63.5% (actual) a week
ago.
The industry's ingot production
rate for the weeks in 1954 is
capacity for the entire industry will
now
based
For the
duction
annual capacity of
124,330,410 tons as of Jan. 1, 1954.
like week a month
ago the rate was
64.0% and pro-,
on
1,527,000 tons.
A
year
placed at 2,140,000 tons
comparable because capacity
was
percentage figures for last
117,547,470 tons
Car
as
of Jan.
the
ago
or
weekly production
The operating rate is not
90.5%.
lower than capacity in 1954.
was
year
actual
are
based
on
annual
The
capacity
of
1, 1953.
Loadings Declined 1% Below Preceding Week
Loadings of
decreased
6,653
revenue
cars
or
freight for the
week ended
Aug. 21, 1954,
1% the preceding
week, according to the
Association of American Railroads.
Loadings
totaled
678,624
cars,
a
decrease
of
138,822
cars
17% below the corresponding 1953
week, and a decrease
155,605 pars or 18.7% below the
corresponding week in 1952.
or
of
Electric Output Again Establishes New
Ail-Time
High Record for the Industry
The amount of electric
energy distributed
and power
industry for the week
ended
by the electric light
Saturday, Aug. 28,. 1954,
The
accessories
went
on
Midwest
and Southwest
significantly affected by
discount
stores;
Pacific
A
of
sections
now
Coast
shopping
devoted
to
news, and
and
South
center
are
exclusively
discount
selling
particularly since it
reported that
will
use
local
some
the
center
to
is
was
retailers
dispose of
regular unsold merchandise, while
these
retailers continue list-
same
price operations elsewhere.
Trade groups of retailers, whole¬
salers and manufacturers are con¬
sidering various plans to meet this
threat
the
exception
of wheat,
bels
the
the
corn,
prices for
salers who
lets.
revision,
the
total
supply
Department
to
As
refined
stock
sugar
anticipated, there
result
a
was
before Aug. 31, when
little enthusiasm.
a
the
level
of-corn
and
less
surplus moved to
ended
a
iod
in
York
discouraged bidding.
According to
both
production and
cotton
season
consumption setting
was
called
new
acreage
output
the
below
cor¬
trade
volume
the
above
past
that
trade
to
Board's
a
in
New
week
of
the
year
ago
was
cor¬
ac¬
estimates.
the
Federal
index
Re¬
department
below the like period of last year.
the preceding week, Aug. 14,
the
In
1954,
an
ported
week
change
increase of 4%
from
in
weeks
In¬
controls in several of the major
of 29,500,000 bales reached a
1954, de¬
registered a
sales
3%
of
per¬
21,
in New York City for
weekly period ended Aug. 21,
1954, registered a decline of 2%
ternational Cotton Advisory Committee.
Although there were
producing countries, the
Aug.
increase
an
For the
the
records,
"exceptional" by the
was
store sales
ginnings from the 1954 cotton crop, prior to
Aug. 16, amounted to 831,543 bales, compared with ginnings from
the 1953 crop of 574,687 bales prior to
Aug. 16, 1953.
1953-1954
to
According
serve
Bureau,
With
1
cording to
season.
belt
In
14, 1954,
(revised)
1954,
responding period
range, with prices down slightly.
Lamb
rather slow and prices were down sharply, close
cotton
21,
City
slightly
the
the
week.
responding period of 1953.
at
primary cotton textile markets, however, were
significantly firm. Cotton futures moved irregularly; beneficial
Census
Jan.
decrease
Although market observers felt sure that a wave of textiles
buying would soon occur, trading in textiles last week was
rather limited, still confined to fill-in lots for near-future
delivery.
in
in¬
For the four weeks
partment store
narrow
was
2%
reported.
was
Retail
to the low for the
Prices
Aug.
of 1%
receipts were larger than a week ago, they
remained slightly smaller than a year ago. Trading in
hogs fluct¬
within
Board's
preceding
of
week in 1953.
livestock
slaughtering
a
reported from that of the similar
support prices.
While
the
of
increase
an
trucking
the government
Reserve
on
taken from
the previous week, Aug.
of
somewhat
Federal
sales
as
dex for the week ending Aug. 21,
1954 showed no change from the
moderately increased trading, dairy products
prices firmed somewhat the past week. Top grades of eggs gen¬
erally sold well. Butter prices rose slightly. Butter production
shrank
planning
are
store
country-wide basis
unsettled; trading in future in¬
considerably, although the large volume in actuals sub¬
sided somewhat.
Although brokers tried to persuade their cus¬
is
groups
gress.
The coffee market remained
tomers
resell to discount out¬
Trade
selling in the Eighty-fourth Con¬
this Fall is expected to exceed the 1947-1951 average by about
4%.
strike
advertised
prices to meet
Some manufac¬
to work for regulation of discount
upward revision in the next forecast, due Sept. 10.
upward
nationally
competition.
turers
most
trading continued to be limited by the lack of buying
by exporters and flour millers; hedge selling against the Spring
wheat harvest in the Northwest was important in the reduction
of wheat prices.
Heavy shipments were accompanied by a drop
in corn prices.
The good weather in the corn belt seemed likely
to result in a larger corn crop than was expected in the Govern¬
ment's Aug. 1, forecast; observers thought that there might be
an
marketing
may make more stringent
efforts to cut shipments to whole¬
and
Wheat
without
from
goods and reduce
grains increased slightly.
Even
traditional
One reported
pro¬
posal is that retailers remove la¬
year ago.
With
to
procedures.
previous weeks since the latter part of May.
The index closed at
274.31 on Aug. 24, compared with 274.18 a week earlier and 281.51
the
news
houses.
were
Although the over-all level of basic commodity prices edged
fractionally downward last week, the Dun & Bradstreet daily
wholesale commodity price index remained higher than in
any
rains
wholesale
discount
joining the trend.
Any Preceding Weeks Since the End of May
uated
men's
while
has been
the
creased
Iron
popular,
week's
the
and
a
represents the sum total of the price per pound
of 31 raw foodstuffs and meats in general use and its chief func¬
tion is to show the general trend of food
prices at the wholesale
an
ago.
year
items
automobile
The index
a
a
sale at reduced prices. Until now,
trade in New England, the East
flour, wheat, rye,
lard, cottonseed oil and raisins.
Lower in price were corn, bar¬
ley, beef, hams, bellies, butter, coffee, cocoa, eggs, potatoes, rice,
currants, steers, hogs and lambs.
was
business.
of
back-to-school
shopping center completely
operated for discount selling was
opened on the/Pacific Coast; fur¬
niture, appliances,
apparel
and
Wholesale Commodity Price Level Holds Above That of
indicated, accord¬
ing to "Steel," the weekly magazine of metalworking,
by an up¬
a
first
Output Scheduled To Show Mild
Increase This Week
An
lower
demand.
concerned
level.
Steel
levels
percentages:
This month layselling of cold-weather ap¬
parel has been less than retailers
expected.
on
May 25.
in wholesale cost last
varied
1953
were
those
most
poor
Dipped 8%
24,
year
away
price index, compiled
declined
the $7.07 in
estimates
sales
below
were
by Dun & Braddrop of almost 3%
The index was, however,
about 3% above that in the
corresponding week a year ago. Last
week's index was close to the low for the
year of $6.85 which
occurred on Jan. 5, and was 8% below the
high for 1954 so far
from
Inc.,
be¬
a
and women's clothes continued in.
Below 1954 High
street,
of
than last and consider¬
Children's
against 26 last week.
Wholesale Food Price Index
the
trade
that
following
ago
ably
involving liabilities of $5,000 or more fell to 157 from
213 in the previous week and 162 last year.
A mild dip to 27
from 33 occurred among small casualties, those with liabilities
under $5,000, but they exceeded the 20 in this
group in the com¬
parable week a year ago.
Liabilities in excess of $100,000 were
incurred in 18 of the week's
of
week
Inc., to be 3%
comparable
the
week
down 30% from the 1939 total of 264.
was
the
retail
above
Apparel
Industry
week, Dun & Bradstreet,
Inc., reports. Although casualties were at the lowest level so far
this year, they remained
slightly above the 182 which occurred
a
year ago and the 1952 toll of 132.
Continuing below the pre¬
level, mortality
like
Midwest —7 to —3; East —6 to
—2; New England —4 to 0; South¬
west —1
to
-f-3; South, North¬
west, and Pacific Coast 0 to +4.
the
Commercial and industrial failures dropped to 184 in the week
ended Aug. 26 from 246 in the preceding
war
the
estimated by Dun
Regional
ago.
and
in
of
was
1%
to
from
and 1,831 trucks in the comparable
Business Failures Registered Declines In All
And Trade
volume
Bradstreet,
low
week.
(Aug.
::V
^ :'.-V-y-.";-.■
past week's decline in passenger car output came from
month-end fall-offs at Pontiac, Oldsmobile and Buick,
plus Dodge
shutdown Wednesday for model changeover and continuation of a
closing of
605
last
2,000,000th
assembly line Monday
The
Motors'
out 2,025
against
year
30).
strike
&
low
Failures
Meantime, the statistical agency predicted
the
Canadian plants turned
trucks
will
units, further model changeovers will slash Sep¬
completions, with October showing little, if any,
tember to 267,500
dollar
23,624 in the like 1953 week.
"Ward's estimated
422
modest declines.
"Ward's"
five-day
Wednesday
in
spending was also
slightly below that of the previ¬
ous week of this year.
The total
were
17,678 trucks
(revised) in the previous
Domestic
new
new
travel,
in the
Retail
past week
plunge
for
apparel
on
than
week
high level,
a
less
and
ended
of 1953.
turned out.
were
saw
last
Automotive
week and
cases.
period
the latest week, ended Aug. 27,
Reports," assembled an
estimated 93,234 cars, compared with 100,075
(revised) in the
previous week.
The past week's production total of cars and
trucks amounted to 110,912 units, a decline below the
preceding
week's output of 117,023 units, states "Ward's." In the like week
"Ward's
to
spent
automobiles
The automobile industry for
according
Like
Ago
Although incomes available for
consumers
For Year In Past Week
1954,
Reflected
and
Year
a
spending continued at
in
some
Week
Period
Plunges To New Five-Day Low
substantial amounts of freight and are making quality concessions
/
Latest
'
for the year, "Ward's" notes.
Last week the, agency reported there
made in this country, as against 16,948
some
f
1952.
U. S. Auto Output
a
ment is
figure represents an increase of 20,000,000 kwh.
preceding week and an increase of 687,000,000 kwh., or
the comparable 1953 week and 1,581,000,000 kwh. over
over
Volume
Mild Declines Both for the
current
above the
8.0%
Trade
Retail
The
com¬
confident their sales
1952-1953.
week.
fairly reliable barometer of busi¬
substantially. Warehousemen are now
up
are
vacations
for
consumers
(4) Warehouse sales,
at mill
ness
steel
of
an all-time high record and compared with
previous high of 9,207,000,000 kwh. reached in the previous
the
Thursday; September 2, 1954
...
that
of
was
the
re¬
similar
1953, while for the four
ended
was
Aug. 21,
reported.
1954,
For
no
the
period Jan. 1 to Aug. 21, 1954, no
-
chajige
was
of the 1953
registered
period.
from
that
i Volume
Number 5356
180
.
.
The Commercial and Financial Chronicle
.
(895)
The
following statistical tabulations
latest week
Business
AMERICAN
IRON
Indicated
steel
AND
week
STEEL
operations
INSTITUTE:
(percent
of capacity)
Sept.
Latest
Previous
Week
We*v
month available.
month ended
or
Month
Steel
90.5
AMERICAN
PETROLEUM
oil
and
(net tons)
Sept.
to
runs
Gasoline
output—daily
(bbls.
average
of
Distillate
fuel
Residual
fuel
Stocks at
and
Kerosene
fuel
ASSOCIATION
nug. 20
23,826,000
Aug. 20
2,171,000
Aug. 20
10,261,000
Aug. 20
7,917,000
„
oil
OF
gasoline
(bbls.)
at
„Aug. 20
at
at
AMERICAN
ENGINEERING
6,618,700
Benzol
-6,735,000
6,267,550
6,744,000
7,109,000
Crude
23,545,000
23,565,000
24,664,000
111,444,000
Aug. 20
55,848,000
2,170,000
10,243,000
,7,525,000
8,956,000
♦10,065,000
•
7,597,000
156,328,000
33,835,000
20
1,910.000
9,856,000
1,926,000
\
155,017,000
Aug. 20
II Aug.
(bbls.)
(bbls.)
158,844,000
140,511,000
33,105,000
31,069,000
33,227,000
*107,753,000
*98,255,000
113,302,000
55,673,000
53,585,000
50,844,000
.
CONSTRUCTION*—
of
cars)
„
Aug. 21
678,624
685,277
684,287
817,446
Aug. 21
577,987
576,936
565,356
666,427
L
ENGINEERING
U.
S.
Private
;
construction
State
and
municipal
Federal
COAL
OUTPUT
(U.
S.
BUREAU
STORE
SALES
SYSTEM—1047-49
OF
$224,168,000
$258,939,000
$262,263,000
$214,331,000
125,766,000
157,099,000
143,154,000
61,850,000
Aug. 26
98,402,000
Aug. 26
88,567,000
ELECTRIC
output
steel
100
=
000
Electrolytic
Export
(New
(New
Lead
Zinc
refinery
tin
(J. S.
18,454,000
20,697,000
:*
7,090,000
9,568,000
_„Aug. 21
100
*97
519,000
567,000
84
100
INDUSTRIAL)
DUN
—
T*
9,227,000
'
9,207,000
'
j*"'.
9,139,000
8,540,000
&
-Aug. 26
184
246
195
182
Aug. 24
4.801c.
4.801c
4.801c
4.634c
24
$56.59
$56.59
$56.59
$56.76
Aug. 24
$28.67
$28.67
$27.33
$41.67
QUOTATIONS):
at
Aug. 25
I
;
at
.
at
at
at
PRICES
DAILY
Aaa
;
•
A
Baa
Group
Utilities
Group
Group
Industrials
U. S.
1
corporate—'
;
—
A
■
:
—_—
Baa
;■■*«.-*.
Railroad
4
Industrials
MOODY'S
NATIONAL
Group
INDEX
PAPERBOARD
Orders, received
Aug.
OF
SERIES —Month
19,439,000
57,000
22,000
18,728,000
21,957,000
45,000
21,207,000
11,237,000
9,694,000
10,298,000
234,059,000
223,500,000
240,428,000
10,748,000
29,128,000
8,398,000
$163,407,000 *$149,616,000
$153,846,000
(tons)
Percentage
of
(tons)
(running
bales)
LINTERS
—
spindles
active
of
as
29.675c
Active
29.575c
29.650c
Active
96.750c
82.250c
July
spindle
Aug. 25
29.675c
29.375c
Aug. 25
93.250c
92.500c
Aug. 25
14.250c
14.000c
14.000c
14.000c
Aug
25
14.050c
13.800c
13.800c
13.800c
DEPARTMENT
Aug. 25
11.000c
11.000c
11.000c
11.000c
ERAL
Aug. 31
99.94
100.22
100.58
92.72
Aug. 31
110.70
110.70
110.34
103.64
29.700c
Aug. 31
115.43
115.63
115.43
107.98
Aug. 31
112.56
112.56
112.37
105.52
Aug. 31
110.70
110.70
110.15
103.13
Aug. 31
104.66
Aug. 31
109.24
Aug. 31
110.88
104.66
103.97
98.25
109.24
109.06
101.97
110.88
110.70
102.96
112.00
111.44
106.04
2.48
2.44
3.02
hours
spindle
(000's
hours
per
RESERVE
31
Aug. 31
112.00
Aug. 31
2.50
.
Sales
(average
Sales
OF
Aug. 31
3.13
3.13
Aug. 31
2.88
2.87
Aug. 31
3.03
3.03
3.13
Aug. 31
<•.
■
*
3.13
3.15
3.53
t'tr
2.88
3.28
3.04
3.42
(average
daily),
seasonally
3.16
3.56
22,830,000
19,332,000
20,007,000
10,216,000
9,484,000
346.2
417.0
379.4
74
101
3.86
Gas-fired
3.63
Gas
Aug. 31
3.12
3.12
3.13
3.57
Gas
3.06
3.06
3.09
3.39
Aug. 31
404.7
418.3
427.3
414.6
Aug. 21
214,012
237,882
203,751
199,211
Aug. 21
251,722
248,147
239,499
261,470
I
end
at
of
:
period
:
.
PAINT AND DRUG REPORTER PRICE INDEX—
1949 AVERAGE = 100
—
Aug. 21
92
92
Aug. 21
364,174
401,966
Aug. 27
106.77
106.99
88
97
370,844
507,572
-
,
v"
Y.
107.21
106.00
FED¬
FEDERAL
1947-1949
—
of July:
unadjusted
adjusted-
seasonally
STEEL
STEEL
OF
furnace
,
107
•106
117
114
•120
259,342
*219,306
220,669
243,824
*290,262
230,304
PAYMENTS
INSTITUTE
—
51,000
51,300
46,900
20,500
17,600
19,700
5,700
6,100
7,400
$183,689,000
$158,955,000
$169,925,000
45,644,000
41,416,000
39,094,000
8,861,000
8,804,000
37,859,000
34,379,000
34,018,000
71,445,000
79,921,000
67,400,000
60,133,000
66,561,000
71,958,000
$427,419,000
$377,515,000
$383,861,000
$2,152,000
$2,077,000
$2,100,000
(units)—
(units).
OF
TO
LIFE
June:
of
benefits
endownments
Disability payments
Annuity
payments
—
values
dividends
Policy
104
ASSO¬
(units)——
shipments
•" INSURANCE—Month
Matured
75
104
July:
of
shipments
burner
INSURANCE—BENEFIT
Death
99
102
CONSTRUC¬
July:
(tonnage)—estimated..
operated boiler shipments
LIFE
76
73
101
(AMERI¬
MANUFACTURERS
conversion
Surrender
—_
.-
of
CIATION—Month
3;51
3.22
103,901v
1,081,690
20,052,000
adjusted.
APPLIANCE
3.47
113,449
1,611,440
19,332,000
22,728,000
(tonnage)—estimated
3.21
Aug. 31
95,849
742,064
1,491,78?,
6,578,000
Shipments
3.47
400,696
8,182,209
22,707,000
closed
3.21
781,767
1,218,051
8,103,150
19,286,000
STRUCTURAL
INSTITUTE
574,687
i.
Contracts
Aug. 31
$80,167
1,571,582
*
Aug. 31
*$79,372
19,286,000
unadjusted
(average daily),
Stocks,
unadjusted
GAS
$78,957
11,713
omitted) July__
spindle in
place
N.
monthly),
Sales
CAN
22,294
8,926
COMMERCE):
DISTRICT,
BANK
Average=HM)—Month
Stocks,
$46,160
•11,770
•22,804
542,577
STORE SALES—SECOND
FABRICATED
•$44,798
11,853
22,600
'
COM¬
OF
July
SPINNING (DEPT. OF
29.700c
$44,504
831,543
DEPT.
In, consuming establishments as of July 31
public storage as of July 31—
Linters—Consumed
month
of
July
Stocks July 31——
COTTON
9,280
June
of
MERCE—RUNNING BALES:
Lint—Consumed
months
of
July
Cotton
9,748
COMMERCE)-
16
POLICYHOLDERS
.
activity
orders
8,733,000
STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT
DEALERS
EXCHANGE
—
AND
SPECIALISTS
SECURITIES
Odd-lot sales by dealers
Number of
Dollar
ON
EXCHANGE
(customers'
N.
Y.
Total
STOCK
Aug. 14
1,112,250
1,317,792
1,160,812
574,818
Aug. 14
$49,825,757
$99,341,836
$51,794,917
$26,929,242
short
sales
Aug. 14
Aug. 14
1,191,847
Customers'
22,038
11,491
7,592
4,343
Customers'
other
sales
Aug. 14
1,169,80.9
1,350,071
1,167,635
511,098
Aug. 14
$49,481,896
$59,164,651
$49,653,011
$20,665,963
Aug. 14
386,930
461,380
351,150
157,770
Dollar
value
:
sales
of
1,361,562
1,175,227
515,441
sales
Aug. 14
Other
Aug. 14
386,930
^I i"* CO CO
10
t
1i
35 LI 50
15
Aug. 14
314,780
397,580
359,310
215,880
sales
purchases
ROUND-LOT
EXCHANGE
FOR
STOCK
AND
ACCOUNT
ROUND-LOT
OF
THE
STOCK
MEMBERS
N.
Y.
FOR
ACCOUNT
OF
7
608,240
542,010
346,580
229,500
7
16,008,990
12,994,700
9,580.810
5,423,840
Aug.
7
16,617,230
13,536,710
9,927,3.90
5,653,340
2,091,510
1,512,300
1,002,160
580,585
Aug.
351,220
332,410
199,790
110,440
Aug.
1,666,160
1,208,540
838,780
506,500
Aug.
2,017,380
1,540,950
1,038,570
Aug.
571,280
438,460
297,240
sales
sales
transactions initiated
on
the
Short sales
Other
sales
I
„
off the
Aug.
Aug.
545,070
386,640
303,710
109,360
Aug.
586,370
408,740
319,760
122,300
41,300
22,100
16,050
12,940
floor—
Aug.
560,660
475,360
327,256
213,250
Aug.
69,480
80,650
51,860
Other
39,470
Aug.
701,374
529,923
484,749
332,995
Aug.
•770,854
610,573
524,219
384,855
sales
sales
:
•.
Total round-lot transactions for account of members—
Total purchases
Short sales
—
sales
Total sales
WHOLESALE
LABOR
—
;
PRICES,
(1947-49
NEW
=
All
SERIES
—
U.
S.
i
foods
commodities
•Revised figure.
$3,223,000
$24,593
19,911
*$24,926
$26,048
•19,872
20,112
$44,504
'$44,798
$46,160
24,176
*23,978
25,882
$29,922,000
$29,870,000
$30,125,000
SALES
&
dollars):
of
————
of
June
than
farm
and
foods
omitted)
(000's
Total
DEPT.
SALES
FROM
S.—AUTOMOBILE
MANU¬
VEHICLE
number
FACTORY
U.
IN
ASSN.—Month
FACTURERS'
of
of
passenger
Number
of
motor
Number
of
NEW
EXCHANGE—As
STOCK
YORK
(000's
31
customers'
Credit
Cash
extended
hand
on
Total
of
margin
carrying
debit
net
in
customers'
Market
value
of
Market
value
of
free
255,310
175,240
Member
borrowings
on
Aug.
2,912,604
2,125,103
1,627,239
948,855
Aug.
3,374,604
2,560,263
1,882,549
1,124,095
OF
110.0
110.3
109.7
110.7
93.9
*95.3
93.9
97.5
105.5
106.1
on
new
of Jan.
1, 1954, as against the Jan. 1, 1953 basis of 117,547.470 tons.
tNumber of orders not reported since introduction of
Monthly Investment
$1,925,512
$1,859,455
$1,663,839
July
in
U.
S
shares
bonds—
—
S. Govt, issues
other collateral—
28,648
32,596
37,205
326,022
312,301
286,289
877,434
846,924
649,685
115,885,633
100,279,485
145,843,061
139,187,897
105,726,616
152,775
105,582,152
224,458
141,345
1,246,036
1,235,918
1,193,868
22,802,000
*23,279,000
♦24,911,000
22,698,000
25,412,000
21,542,000
97
97
98
.
OF MINES)—
of June:
(barrels)
from
(at
Capacity
91.2
87 3
95.1
114.2
114.7
capacity of 124,330,410 tons
as
ZINC
of
end
—....
—
mills (barrels)
of month—barrels)
used
OXIDE
28,632,000
19,582,000
(BUREAU
OF
26,400,000
MINES)—Month
July:*
Production
Shipments
Plan
376
105.1
114.3
annual
Stocks
of
U.
CEMENT (BUREAU
PORTLAND
Month
89.1
*351
credit balances—
listed
435,160
114.4
105,622
246
accounts—
balances
banks
listed
462,000
§Based
596,901
*91,470
customers—
to
and
Aug.
runs,
702,899
507,055
omitted):
firms
Member
on
Aug. 24
*598,876
78,507
coaches—...
motor
borrowings
103.9;
530,416
451,663
cars...—_—:
Member
b
July:
trucks
913,625
Aug. 24
Aug. 24
Aug. 24
of
vehicles
Number
1,626,656
([Includes 680,000 barrels of foreign crude
30
2,426,120
Aug. 24
other
—As
Shipments
1
Meats
All
$3,286,00(1
MONEY IN CIRCULATION—TREASURY DEPT.
Production
products
Processed
$3,138,000
SERIES—
NEW
(millions
3,223,450
100):
commodities
Farm
INVENTORIES
COMMERCE)
June
Aug.
Commodity Group—
_
570,000
Durables
Total
purchases
Other
553.000
602,000
119,790
Short sales
Total
'
—
transactions initiated
Total
616,940
floor—
purchases
Other
OF
of
Month
PLANTS
Aug.
Total sales
MANUFACTURERS'
MOTOR
specialists in stocks in which registered-
purchases
Other
Total
607,000
MEM¬
Short sales
Other
555,000
431,000
.
._
Sales
Aug.
Aug.
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Total
;
Total
l
TRANSACTIONS
of
June
Total
(SHARES):
Total sales
Total
Industrial
Non-durables
STOCK
sales
Transactions
of
TRANSACTIONS
Short sales
ROUND-LOT
INSTITUTE
Inventories—
ON
SALES
Total Round-lot sales—
Other
—
Menth
—
,
(DEPT.
7 70
by dealers—
Number of shares
TOTAL
PURCHASES
INSURANCE
omitted):
(000's
by dealers—
shares—Total
Short sales
Round-lot
LIFE
OF
Ordinary
sales)—
Number of shares—Total sales
Number
INSURANCE
LIFE
value
Round-lot
1
COMMISSION:
purchases)—
shares
Odd-lot purchases by dealers (customers'
>
COM¬
l
AND
29.700c
ASSOCIATION:
(tons).
Production
OIL.
—
.
Group
COMMODITY
Unfilled
-
—
Group
Utilities
Public
197,837,000
20,362,000
dollars):
TION)—Month
:
Aa
-
DEPT.
GINNING (DEPT. OF
COTTON
BOND YIELD DAILY AVERAGES:
Aaa
-
—
v
Government Bonds
{'./ Average
of
RESERVE
.
corporate
MOODY'S
COTTON
AVERAGES:
Aa
Public
217,321,000
200,593,000
export
Spinning spindles in place on July 31
Spinning spindles active on July 31
'
Louis)
BOND
Railroad
220,977,000
19,785,000
Total
'
-/
Government Bonds
Average
NEW
(millions
18,746,000
'
at__
Louis)
(East St.
MOODY'S
and
(barrels)
Manufacturing
9,835,000
474,000
I Aug.
York)
York)
(St.
(barrels)
domestic
INVENTORIES
Wholesale
7,760,000
-
copper—
Year
195,000,000
In
M. J.
&
Domestic reiinery
Lead
,
Retail
490,000
(per gross ton).
(E.
Previous
214,842,000
INCORPORATIONS (NEW) IN THE
UNITED STATES—DUN &
BRADSTREET,
INC.—Month
of
June
152,481,000
7,560,000
Aug. 28.
lb.)
(per
PRICES
Straits
Z-ZZZZ
I
(barrels)
DEBITS—BOARD OF GOVERNORS OF
THE FEDERAL RESERVE SYSTEM—Month
of June
(in thousands)
131,784,000
Aug. 21
kwh.)
AND
Ago
Latest
BANK
119,109,000
INSTITUTE:
(in
of that date:
Month
42
III"
(barrels)
imports
stock
all
100,655,000
■1
Aug. 21
__
(per gross ton)
Scrap steel
METAL
of
(barrels)
(barrels)
consumption
83,094,000
IRON AGE COMPOSITE PRICES:
Pig iron
output
imports
products
Increase
INDEX—FEDERAL RESERVE
AVERAGE
(COMMERCIAL
Finished
(barrels
output
(barrels)
101,840,000
.
MINES):
BRADSTREET, INC
-
output
Indicated
To
DEPARTMENT
Electric
Aug. 26
Aug. 2S
Aug. 26
coal and lignite (tons)
Pennsylvania anthracite (tons)
FAILURES
gasoline
oil
Refined
oil
"
Bituminous
EDISON
production
crude
MERCE
construction
construction
Public
are as
Month
INSTITUTE—Month
each)
BUSINESS
-
NEWS-RECORD:
Total
either for the
BUSINESS
RAILROADS:
Revenue freight loaded (number of cars)
Revenue freight received from connections (no.
CIVIL
tl6,936,000
at
oil
Residual .fuel
,
t
(bbls.)
(bbls.)
unfinished
(bbls.)
-Distillate
'
Aug. 20
6,157,900
refineries, bulk terminals, in transit, in pipe lines-
Finished
-
output
output
domestic
Natural
.
6,155,750
'
(bbls.)
average
<bbls.)__
oil
oil
Total
2,140,000
-
Aug. 20
(bbls.)
Kerosene output
1,527,000
Domestic
stills—daily
output
*1,515,000
PETROLEUM
gallons
42 gallons each)—,—
Crude
1,544,000
5
INSTITUTE:
condensate
of quotations,
cases
are
June:
of
ingots and castings
Crude
in
or,
Ago
64.0
Equivalent to—
AMERICAN
Dates shown in first column
that date,
on
production and other figures for the^
cover
Year
Ago
*63.5
§64.8
5
or
27
Stocks
at
(short
(short
end
of
tons).
tons)
month
(short
tons)
16,719
10,788
11,339
11,585
12,858
17,696
13,636
14,433
23,550
"
28
The Commercial and Financial Chronicle
(896)
Continued from page
11
5T*
spectively, of the Anglo California
Anglo's pension
National
insurance, hospitalization and early this coming fall.
other personnel
benefits, Mr.
Charles D.
Means,
the
at
Bank
close
of
of
San
Francisco,
business
Aug.
on
20, when the Anglo Bank was to
acquire the assets and assume the
How the Canadian
liabilities
made
of
First
the
The
Bank.
Government Functions
Savings
announcement
was
jointly by Paul E. Hoover,
of Anglo
Bjank, and
S. Yockey, President of the
Savings Bank. Both offices
President
Minister, rather Government of the United States
members of that Canada is prepared to give
to the appropriate
than
their
to
Paul
local
First
were
the House of Commons to get any
strong support to efforts designed
to
promote international trade.
This assurance can be given be¬
«uch
cause
changes in tariff can only
be recommended to the legislature
California
There is
Parliament.
opportu¬
no
nity for the individual member of
legislation
to remain open for business
the
at
usual
morning
time
Monday
of the Anglo
offices
as
National
Bank.
Mr.
by the Minister of Finance, acting
the concurrence of the full
and
with
of
with
Cabinet, and because the govern¬
Cashier of the First Savings Bank,
and
A.
W.
Hodgson, Assistant
voice.
When the
Prime
Minister said that Canada is pre¬
pared to build the seaway alone if
jority that believes in freer inter¬
national trade as being in Can¬
U.
S.
participation
would
mean
midesirable delay, Mr. St. Laurent
spoke
for
Cabinet.
whole
a
fall.
of the
government
a
as
prepared to stand or
was
An
was
which the Cabinet
on
undertaking by
Cabi¬
a
a
ma¬
E.
British
follows
ment
which
has
To
the centuries.
efficient form of
it
me
may have exceeded his authority
4a an extent that his resignation
quickly responsive to the will of
the majority of our citizens.
from the Cabinet may be
required.
This principle of Cabinet soli¬
darity and the related fact that,
tinder
normal
circumstances, the
Cabinet is in
Cmth
it
position to know
a
confidence just how far
some
its supporters with it
la Parliament, has important con¬
can carry
sequences.
It means, in
the
Cabinet
the first place, that
the
not
does
ommendations
until
make
it
is
support of its party.
■tot
put forward
4he
idea
it may
it
for
asks
get enough.
of
It does
Nor
able to
I
the
can
has
It
to
for all
responsibility
its
recom¬
mendations.
same
in the
reason,
ne¬
gotiation of international treaties,
agreement of the Cabinet is to all
intents
4o
and
equivalent
by Parliament.
A
System Essential
Two-Party
The Canadian system would not
as
well as it does were it
work
the fact that
not for
a
high pro¬
portion of the members of Parlia¬
ment are
either Liberals
Con¬
or
Canadians
believe
in
the
two-
party system, and they play the
according to the rules. More¬
over, while there are differences
game
''between the two principal politi¬
cal parties on many important is¬
there is
sues,
ment
just
underlying agree¬
fundamentals,
there is between the Dem¬
as
ocrats
and
country.
erals
an
certain
on
Republicans
this
in
If, by chance, the Lib¬
were
be
to
defeated
by the
Conservatives in the next Federal
election,
ifaink
which, as a Liberal I
improbable, there
is
quite
would not, in my opinion, be any
radical alteration in the direction
of government policy.
ence
would be
The differ¬
matter of degree
a
rather than of kind.
This
I
is
of the
one
believe
that
outside
investors
have confidence in Canada.
see
stable form
a
why
reasons
of
They
government
working successfully and they
evidences that
changes
in
see
if there were
even
the
political
com¬
plexion of the government, such
changes would not be likely to
result in any fundamental altera¬
tion in
the
attitude
towards
pri¬
vate enterprise and economic de¬
velopment.
all
due
that
the
with
deference
Cabinet
confidence
that
is
is
the
able
fact
to
act
source
a
of
strength in dealing with Canada's
economic
problems
and
major
with
Canadian
-
American
nomic and trade relations.
enabled
the
Canadian
ment, for example, to
eco¬
It has
Govern¬
assure
the
Mr.
Bank
was
$8,500,000.
Anglo
Bank, with
outgrowth of
And Bankers
1850.
of St. Petersburg, Fla.
central
a
capital of $400,000
The
surplus of $250,000. The
a
*
house
Francisco
in
offices in Co¬
new
Maxwell,
Anglo
will
California
communities.
units in Colusa and Max¬
new
well will
bring to nine the num¬
Anglo offices in the Sacra¬
mento Valley. A 10th unit is now
President is George E. Tomberlin
and the Cashier Fred H. Green.
*
San
the
as
have 37 offices in 22 northern and
The
has
and
and
in 1873
mercantile
a
in
With the
lusa
Bank
$800,000,000,
over
incorporated
was
ber of
♦
under construction in Sacramento
Certificate No. 16 was
issued on Aug. 18 by the Office
of the Comptroller of the Cur¬
Merger
and
will
fall.
It
be
is
this
opened
also
coming
that
announced
Anglo will acquire also an office
rency approving and making ef¬
in Vallejo in the near future. Five
fective, as of the close of business other
new
Anglo offices, now
Aug. 20, the merger of the Bank
either building or pending, will
of Martinez, Martinez, Calif., with
be
stock
$120,000, into
of California, National
The Bank
months,
common
stock of
$10,200,000.
effected under
The merger was
the charter and title of "The Bank
of
California,
National
Associa¬
tion."
522,000
shares
of
stock
common
of the par value of $20
the
according
to
few
next
the
recent
appeared
on
page
789
of
cle."
♦
*
1
The
was
*
Bank
Merchants
Vallejo, Calif.,
by the Anglo Cali¬
National
Bank
San
of
Francisco, Calif., at the close of
business Aug. 27, according to an
announcement by Paul E.
Hoover,
President of Anglo Bank.
The
Laurence
J. Robin, previously
Anglo's East Bakersfield Office, will be Vice-Presi¬
manager of
and
National Bank, both of San Fran¬
National
cisco,
President
Los
Angeles, have been discontinued,
according to an announcement is¬
sued Aug. 17.
The announcement
was
made in
manager
of the Vallejo
Charles N. Bessac, previ¬
ously Vice-President and Cashier
of
the
Other
Mechanics
of
and
will
the
Merchants
be
Anglo
a
vice-
Bank.
officers, all of whom will be
Assistant
whom
Bank,
Managers
were
and
all
of
previously officers of
of
Crocker
Frank
First
L.
thorough
tors
National
It stated
exploration
involved
had
of
*
that
*
announced
the
First
Calif,
to
de¬
former Mechanics and
National
members
Maxwell
would
the Maxwell
of the
the
office
bank's
of
East
C.
R.
Bakers-
Vice-President
Manager of Anglo's
Vallejo.
new
D. Jud
man¬
office, has been promoted to
and
been
office in
be
construction
in
Sacramento
the
to
assigned to the
office
new
Frank W.
Thommen, previously
office,
Chief Clerk at the San Jose
has been promoted to the office of
Assistant Manager and will like¬
wise
and
be
located
at
the
Midtown
office, Sacramento.
Public
Utility Securities
By OWEN ELY
American Cable & Radio Corporation
American Cable &
Radio is a holding company whose
sidiaries provide world-wide cable and radio service. It is
sub¬
con¬
trolled
by International Tel. & Tel. through ownership of about
58% of the common stock. The company was
organized in 1939 in
connection with the reorganization of Postal
Telegraph & Cable.
The System provides cable facilities to link the United
States with
22 countries or territories
including Central and South
America,
Indies, Canada, the British Isles, France, Belgium, the
Netherlands, Germany and the Azores. Connections are also made
through other lines with Africa, Asia and Australia.
West
There
are
also
extensive
communication facilities.
lion
are
service
and
8%
radio-telegraph
The annual
about 46% from cable
revenues
and
ship-to-ship
of about
$27 mil¬
business, 46% from radio-telegraph
miscellaneous.
The company is expanding itsleased circuit business, and through aggressive
advertising is said
to be obtaining a larger share of total
regular message volume.
The nature of the businesses such that
message volume may
a
considerable increase in
be handled with little increase in costs.
Western Union Telegraph
competes with the company in the
cable field and RCA Communications in the
radio-telegraph oper¬
ations. This competition is said to be
principally responsible for
the company's mediocre
earnings record. A merger of these facili¬
ties was proposed some time
ago, and the several companies in¬
volved have held discussions under the
aegis of the Interstate &
Foreign Commerce Committee of the Senate, to consider the pos¬
sibility of recommending legislation which would permit a merger.
The discussions have been
continuing this year, it is understood.
Headings
were
also held by the Federal Communications Com¬
mission during 1953 on Western Union's failure to divest itself of
its international cable telegraph
operations as directed
by Congress
in
1943.
These hearings, in which American Cable & Radio was
of the parties interested in requiring
divestment, were closed
March 25, 1954 and the case is still
pending before the Com¬
showed
nues
will
will
be
a
gain of about 56%
resulted
mainly
from
South American traffic
of
1952
in 1953.
and
1943.
over
the
high and
The 1953 increase in
upward
adjustment
of
reve¬
rates
on
which became effective in the latter partof international telegraph
Also the volume
message traffic handled
by the AC&R System since the middle of
improved level over the preceding year and
these gains carried through the first quarter of 1954. As a
result,
earnings for the first quarter were about double those of last year
—140 vs. 70.
!
1953 has held
at
an
American Cable & Radio and its subsidiaries are in a
strong
financial position. The 1953 consolidated balance sheet showed no
funded debt or preferred stock outstanding.
The
3,484,120 shares
of
a
common
share.
stock
outstanding (par $1) had
The current position was
a
book value of $8.7£
excellent, with current assets of
million compared with current liabilities - of $5.8 million.
Current assets included about $8.3 million cash and U. S. Govern¬
ment securities. The parent company's balance sheet showed the
$17.3
same
book value and current assets of
$2.0 million compared with
current liabilities
(principally dividends payable) of $1.2 million.
In 1952-3 the company did not draw
any
dividends from sub¬
sidiaries, its income consisting entirely of interest, most of which
was received on the $3,800,000 advances to
Mackay Radio & Tele¬
graph Company, a subsidiary.
American Cable & Radio is currently
Stock
selling on the New York
Exchange at 63/8, this year's range being 7V4-4%. Assuming
that another
300 dividend is
declared
around
the
year-end, the
yield would be 4.7%.
-Revenues
(Millions)-
——Common Stock Record-
Radio-
Merchants
constitute
a
Dan
Tear
Cable
Telegraph
Other
1953
$12.36
$12.19
$2.07
$26.62
$0.48
6%-
3%
1952
11.36
12.04
2.05
25.45
0.20
0.15
6
-
4 fe
1951_
12.63
10.99
1.74
25.36
0.42
0.30
7%
-
5 y4
0.20
8y4-
37*
474-
2y2
Total
Earns.
Divs.
$0.30*
Price-Range
Foley,
1950
11.84
9.41
0.85
22.10
0.41
1949
11.27
8.25
1.49
21.01
d0.12
Harry V. Soanes, C. F. Hatch
Demetrio Magnani.
1948
12.76
6.45
0.99
20.19
d0.46
63/4-
3
1947
13.35
7.00
0,96
21.31
dO.44
7%-
37s
12.19
1774-
57s
Officers
and
Aug.
18
employees of the
1946
5.70
'0.74
18.63
d0.18
Bank
of
former Mechanics and Merchants
1945
18.47
4.18
1.70
19.34
0.46
17
branch
at
National Bank have become
mem¬
1944
15.13
3.33
1.63
20.10
0.63
14-8
Anglo Bank
1943
12.42
2.74
1.89
17.05
0.64
become
the
office,
of
Midtown
office, Sacramento.
and
of Anglo's new Midtown of¬
which
is
now
under
fice,
promoted
Assistant Vice-President and will
Manager ot
Palo Alto office, has been ap¬
pointed Vice-President and Man¬
ager
Callaghan, who has been
connected with Anglo Bank since
the beginning of this year, has
Coppock, Jr., previously
Vice-President
appointed
Mr. Robin's promotion.
previously
ager
been
Charles N. Bessac, Luther E. Gib¬
and
on
its
Bank
Vallejo advisory board for Anglo
Bank,
Mr.
Hoover
said.
The
son,
lusa
and
fac¬
satisfactory
Savings
and
a
*
was
Colusa,
that
all
failed
velop any mutually
plan of consolidation.
It
Bank,
King, President of
Robin,
field
the Mechanics and Merchants Na¬
joint statement by Elliott McAl¬ tional Bank, will be Harry J.
lister, President of The Bank of Martin, L. J. Bussboom, E. J. LawCalifornia, N. A., William W. son, Doris L. Rogers and Leonard
Crocker, Chairman of the Board E. Smith.
The directors of the
a
and
J.
has
The company's revenues last
year established a new
and
of
succeeded
office.
Bank,
Laurence
Assistant Vice-President and
office,
ant Vice-President and Manager,
filling the position left vacant by
dent.
*
Mechanics
National
dent
California
on
Aug. 27 by Paul E. Hoover, Presi¬
on
*
!
Discussions looking toward a
possible consolidation of The Bank
of California, N. A., Crocker First
and
announced
previously
the Palo
ceeding Mr. Coppock. Louis B.
Becas, Jr., previously Assistant
Manager of the East Bakersfield
office, has been appointed Assist¬
Anglo California
was
of
Manager
Vice-President and Manager, suc¬
promotions of five members
National Bank
an¬
each;,
Aug. 26 issue of the "Chroni¬
The
of the staff of the
one
sur¬ Anglo Bank acquired the assets
plus of $15,060,000; and undivided and assumed the deposit and other
profits of not less than $2,460,000. liabilities of the Mechanics and
A
previous item about the Merchants National Bank.
merger
Alto
the Aug.
opened,
mission.
fornia
At the effective date of merger,
the merged bank will have capital
stock of $10,440,000, divided into
within
nouncements.
Assocation, San Francisco, Calif,,
with
added
of
in
appeared
the
be
H.
National
established
California Bank.
I would also like to submit with
benefits,
Savings
of
excess
California
14
page
News About Banks
common
servatives, and that party disci¬
pline is well maintained.
Most
from
about
27 "Chronicle" page 789.
the
First
present assets of
purposes
ratification
personnel
The
in
Continued
bank
For the
H.
established in 1902 and has assets
full
accept
of
Hoover said.
Sulphur Springs well worth while.
knowledge that those proposals
will be rejected in the House of
Commons.
other
foreign investment. If so,
visit to White
will consider my
by
putting forward
in
the
comfortable
proposals
type of govern¬
described, Canada
economic climate favor¬
lot
a
executive carry its more extreme
supporters
I
an
acquistion
item
to
of the First Sav¬
consisting
Bank
the
have
ment
Anglo's
of the
staff of Anglo
and, for services as Anglo
staff members, will participate in
Anglo's pension plan, group life
insurance,
hospitalization
and
is familiar. I hope that I have suc¬
in conveying the thought
offers
Vice-
members
with
program
a
that if
rec¬
sure
and the
ceeded
under
Assistant
be
Assistant
previous
Balsdon, E. C. Barrell, E. C. Garrette,„L. A. Mace and Paul S.
Yockey, will constitute a ColusaMaxwell
Advisory
Board
for
Anglo Bank, Mr. Hoover stated.
Qfficers and employees of the
First Savings Bank will become
method with which this audience
that
will
The directors
my attempt to outline the basic
differences between the method
of government in Canada
Manager of the Max¬
the First Savings
Branch of
ings jBank,
Chairman, I have finished
Mr.
Assistant
present
at
President and Manager of
Maxwell office.
government. Al¬
though the Cabinet Minister
-even
carried out,
be
well
an
though its form is that of a mon¬
archy, it is in fact democratic and
will
net Minister
Wallace,
Bank,
over
seems
Vice-President
will be Assistant Man¬
of Anglo's Colusa office. L.
Cashier and
practice
developed
been
be
A
is scheduled
which
Hoover said.
Cashier,
Canadian form of govern¬
The
will
Manager of the Colusa office
Anglo Bank.
L.
A.
Mace,
agers
interest.
ada's
member
every
That
decision
it
Liberal
ment has behind
Yockey
plan, group life
on
through Parlia¬
ment unless he has the support or
acquiescence of the Cabinet.
In Canada, the Cabinet speaks
one
Thursday, September 2, 1954
...
Co¬
bers
of
re¬
and
will
the
staff
of
participate
fully
in
♦Paid
in
following year,
d Deficit.
-1072
974-
33/s
•
5/olume 180
Number 5356
Ut -'.retu tiii-i
The Commercial and Financial Chronicle
..,
(897)
* INDICATES
Securities
Now in
Registration
•
it A. & B. Manufacturing: Co., Kensington, Md.
Aug. 25 (letter of notification) 35,000 shares of 8%
cu¬
policyholders of both-insurance companies), and em¬
ployees, at par ($1 per share); and to all other policy¬
N.
mulative preferred stock
be¬
holders
Hirsch &
half
of
Price
At
to be offered
on
and 350,000 shares of common stock
behalf of certain selling stockholders.
company,
(par 50 cents)
(par $3)
on
Proceeds — For working capital and
Office—10441 Metropolitan Avenue, Ken¬
sington, Md. Underwriter—None.
—
par.
equipment.
Allen Discount Corp., Boulder, Colo.
Aug. 13 (letter of notification) 900,000 shares of class
non-voting common stock. I Price—At par (25 cents
per share).
Proceeds—For loans (mainly promissory
notes). Office—1334 Pearl Street, Boulder, Colo. Un¬
B
derwriter—Allen Investment
Co., Boulder, -Colo.
in
the
Proceeds—To
insurance
companies,
$1.25 per share.
small loan field. Under¬
expand in the
it American Buyers Insurance^ Co., Phoenix, Ariz.
Aug. 18 (letter of notification) 2,500,000 shares of com¬
mon stock, to be offered to stockholders on a
pro rata
basis. Price—At par ($10 per share). Proceeds—To ac¬
quire capital required by Arizona law for a stock benefit
insurance company. Office—2001 East Roosevelt, Phoe¬
nix, Ariz.
Offices—New
Tex. Underwriter—None.
Un¬
and
exploration, and related activities.
Office—Dallas,
ISSUE
September 7 (Tuesday)
Products
(Offering
by
* American Seal-Kap Corp. of Delaware (9/15)
Aug. 25 filed 61,312 shares of common stock (par $2)
to be offered for subscription
by common stockholders
on
the basis of
about
Sept.
Price—To
one
share for each three shares held
new
rights to expire on or about Sept. 28.
supplied by amendment.
Proceeds—For
15;
be
CALENDAR
,
Common
(Offering to
For
.(Allen
;
E.
Southwest
Co.,
by Laird &
68,528 shares
Inc.)
September 20
...Common
Beers
Co.)
$299,000
.
Co.
Colorado Sports Racing Association_____i_Common
(General
(Bids
Arden Farms Co.,
Petaca Mining Corp
ticipating
&
September 9
Inc.)
shares
EDT)
(Bids
September 10
(Friday)
Co.)
(Tellier &
11
EDT)
a.m.
(Bids to
-
$5,000,000
(Thursday)
Bonds
be invited)
$15,000,000
be
$52,000,000
(Bids
to
Bonds
invited)
$1,250,000
September 28
(Tuesday)
New England Electric System
(Monday)
Northern States Power Co
Common
(Offering to stockholders—bids to be invited)
California Water Service Co
Witter
(Dean
General Nucleonics
&
(Bids
Preferred
Co.)
Common
(George P. Breen)
$297,500
W.
Brooks
Warren
&
Co., Inc.;
W.
York
&
Inc.)
Corp.
Brothers
Farwell,
Chapman
&
Oklahoma Gas & Electric Co
(Bids 11
EDT)
a.m.
and
Western
Webster Securities
(J.
G.
White
&
White,
Weld
&
Allied Control
(Offering
Boston
(Bids
Co.;
$1,500,000
Co.)
Common
(Berwyn T. Moore & Co., Inc.; Gearhart & Itis,
and Crerie & Co., Inc.) $970,000
Industries, Inc
&
Co.
Inc.
and
(Bids
Fenner
&
to
&
Btone
Co.)
Boston
Corp.;
Merrill
Lynch,
Union Securities
Beane;
Corp.;
Pierce
Blauner & Co.,
Inc.)
a.m.
to
&
to
$16,000,000
September 16
(Thursday)
Illinois Power Co
(Merrill
Lynch,
Fenenr
Corp.)
&
Beane
and
&
Corp.
&
Merrill
200,000
G.
Becker
&
Co.
Lynch, Pierce,
shares
300,000
Automatic
Aug.
4
filed
Remote
Systems, Inc., Baltimore
shares of common stock (par
620,000
$18,000,000
Telebet units and Teleac systems and additions to work¬
ing capital. Underwriter—Mitchell Securities, Inc., Bal¬
timore, Md.
Co.)
Salt Lake City, Utah.
Underwriter
Phillips Building, same city.
—
Call-Smoot
Big Indian Uranium Corp., Provo, Utah
July 15 (letter of notification) 500,000 shares of common
stock (par 10 cents). Price—25 cents per share. Proceeds
—For
mining operations. Address—Box 77, Provo, UtahCo., 242 N. University
Black
Hawk Uranium &
Metals Co.
'
Price—At par (two cents per share). Proceeds—
mining operations. Office—136 S. State Street, Salt
Lake City, Utah.
Underwriter—P. G. Christopulos &
Co., same city.
stock.
For
Buffalo
Forge Co., Buffalo,
N. Y.
Proceeds—To 11 selling stockholders.
writer—Hornblower
&
Weeks,
New
York.
Under¬
Offering-
it Cahokia Downs, Inc., East St. Louis, III.
Aug. 30 filed 140,000 shares of common stock
to
be offered for
subscription by stockholders.
Common
underwritten
Dean
by
Witter
California
April
stock
(par $1)
Price—
Proceeds—For construction of racing plant
Electric
Power Co.
22 filed 105,000 shares of cumulative preferred
(par $50). Price—To be supplied by amendment.
Proceeds
—
For
construction
Underwriter--
costs, etc.
Continued
(Monday)
on
page
Bonds
(Tuesday)
Telephone Co
to
be
T
invitedi
be
(Wednesday)
invited)
Bonds
$17,000,000
(Monday)
Sierra Pacific Power Co
to
be
Bonds
$75,000,000
Louisiana Power & Light Co
Bonds
invited)
October 26
$4,000,000
shares
New York
Savannah Electric & Power Co.
Bonds, Debs. & Preferred
(Eids
to
be
Boston
(Tuesday)
invited)
$11,000,000
Philadelphia
Pittsburgh
San Francisco
Private Wires to all
offices
•
capital!*"
,
New York
Co.,
Underwriter—None.
1
be
.
Big Bend Uranium Co., Salt Lake City, Utah
Aug. 6' (letter of notification) 7,000,000 shares of common,
stock.
Price—At par (three cents per share). Proceeds
—For mining expenses. Office—510 Newhouse Building,
$5 per share.
(Wednesday)
Corp. and
34,807 shares
56
cents), of which 540,000 shares are to be offered to
public and 80,000 shares to be issued to underwriter.
Price—$3.75 per share. Proceeds—For manufacture of.
Postponed indefinitely.
Preferred
Bonds
Securities
Common
Inc.)
(9/15-16)
900,000 shares are to be offered to public. Price
$1 per share. Proceeds—To purchase land, construct rac¬
ing plant, buy equipment and for working capital .Of¬
offering.
Bonds
Texas Power & Light Co
(Bids 11:30 a.m. EST) $20,000,000
(Bids
Ketay Instrument Corp
(A.
First
$9,000,000
and
Beane)
10f),
it Audubon Park Raceway, Inc.
filed 85,000 shares of common stock (par $1).
Price—To be related to current market price at time of
Common
Boston
Aug. 24 filed 970,000 shares of common stock (par
July 7
$4,000,000
Co
October 25
The
Illinois Power Co
Fenner
6
Preferred
Pierce,
Boston
(The First
invited)
stockholders—to
Webster
(Bids to
1
be
October 20
Bonds
EDT)
Inc.,
Bonds
$16,500,000
EST)
a.m.
Common
Ry.___
11:30
First
$20,000,000
EST)
October 19
$299,550
(Vickers Brothers) 455,000 shares
(Bids
Co.,
&
and
International Sulphur Co
Western Marvland
11
Power
(Bids
Texas
The
(Tuesday)
October 18
$43,386,900
Supermarket Merchandisers of America Inc.__Com.
D.
Proceeds—To reduceft>
share.
Underwriter—Eaton
$1,000,000
stockholders—underwritten
Equitable Securities Corp.)
(Milton
(Offering
Preferred
preferred
__^_Common
by
(Monday)
EST)
a.m.
October
Sierra Pacific
Preferred
Cohu
Georgia Power Co
(Exchange offer
by The First
Inc.;
per
Underwriter—None.
Aug. 9 (letter of notification) 5,000,000 shares of
$131,250,000
4
noon
11
(Bids
(Offering to stockholders—to be underwritten by American
Securities Corp. and Hirsch & Co.)
61,312 shares
(Blair
Corp.)
October 5
Common
Audubon Park Raceway, Inc
$12.50
common
Corp.
(letter of notification) 299,500 shares of com¬
mon stock (par 25 cents).
Price—$1 per share. Proceeds
—For expenses incident to drilling for magnetic iron ore. '
Bonds
$30,350,000
Wisconsin Power & Light Co
American Seal-Kap Corp. of Delaware
Eastern
(Thursday)
invited)
Indiana & Michigan Electric Co
$800,000
on a l-for-10 basis; rights to ex¬
Price—For preferred, $48 per share;
Underwriter—Weber Investment
Indiana & Michigan Electric Co
(Wednesday)
Sept. 24.
Ave., Provo, Utah.
Public Service Co. of Colorado
Common
&
be
stockholders—underwritten
to
Common
Inc.)
Co., Inc
(Bache
Bonds
$10,000,000
National City Bank of New York
(Bids
September 15
EST)
$65,000,000
-
Co.,
to
October
Debentures
Inc.)
Development Co
a.m.
Preferred
Corp.;
Halsey, Stuart & Co.
(Bids
$7,500,000
Tennessee Gas Transmission Co
(Stone &
Co.)
-j
Louisville & Nashville RR
and
Common
and
11:30
$1,400,000
Lindsay Chemical Co.'
(Lehman
$20,000,000
(Wednesday)
September 30
Preferred
Lee Higginson
Co.,
invited)
Columbus & Southern Ohio Electric Co
(Tuesday)
Glen-Gery Shale Brick Corp
(P.
be
shares
Bonds
September 29
(Bids
September 14
to
910,883
$1,500,000
Corp
common
on
,
Northern Pacific Ry
...Common
September 13
shares
Preferred
$300,000
Co.)
stock
new
Arkansas Natural Resources
Common
475,000
Dayton Power & Light Co
Common
Mines, Inc
common
fice—Morganfield, Ky. Underwriters—Berwyn T. Moore
& Co., Inc., Louisville, K,y.; Gearhart & Otis, Inc., New
York, and Crerie & Co., inc. Houston, Tex.
(Wednesday)
September 23
Common
189,655 shares
Loma Uranium Corp
&
Bonds
$250,000,000
$60,000,000
Co., Inc
Morgan
(Tuesday)
EDT)
a.m.
(Offering to stockholders—no underwriting)
,
(Peter
11
Tampa Electric Co
(A. C. Allyn & Co., Inc. and Dempsey & Co.)
Riddle Uranium
by
800,000 shares
South1 Utilities, Inc
Middle
Bonds
a.m.
Inc)
September 22
Illinois Central RR
11
Co.,
American Telephone & Telegraph Co
(Bids
Equip. Trust Ctfs.
(Bids
&
September 21
$2,700,000
of
of which
$900,000
Chic., Milwaukee, St. Paul & Pacific RR.
Standard Coil Products
Common
stockholders—underwritten
to
Blyth
Los Angeles, Calif.
being offered for subscription to holders of outstanding"
preferred stock of record July 7 on l-for-10 basis, and
the common stockholders to have right to subscribe for
Office—Rison, Ark.
(Thursday)
(Bids noon CDT)
Underwriter
shares of $3 cumulative and par¬
stock (no par value) and 52,876
stock (par $1), the preferred shares
New York, N. Y.
111
Diego Gas & Electric Co.
$12,000,000
Co.,
-
preferred
(Dillon, Read & Co. Inc. and The Ohio Company) 200,000 shares
San
(Offering
Preference & Common
(Barrett Herrick
(Monday)
Bonds
EDT)
a.m.
City,
and
filed 32,669
June 11
Columbus & Southern Ohio Electric Co—Common
Investing Co.) $297,995
11
Corp.
June 11
,
Montana-Dakota Utilities Co
Island
Securities
exploration and development expenses.
and for
,
(Wednesday);
Carolina Resources Corp
Office—Long
American
Co., both of New York City.
bank loans.
stockholders—underwritten
First
and
underwriting) .$132,700
V
—
Common
'■
September 8
purposes.
ISSUE
American Uranium, Inc., Moab, Utah
Aug. 18 (letter of notification) 3,320,000 shares of capital
stock. Price—At par (five cents per share). Proceeds—
pire
Welex Jet Services, Inc
Corp
company—no
REVISED
First Boston Corp.
(jointly); Morgan Stanley & Co.
Bids—Expected to be received up to 11 a.m. (EDT) on.
Sept. 21.
the
Neo-Line
ITEMS
—Ogden Uranium Brokerage Co., Ogden, Utah.
American Buyers Credit Co.,
Phoenix, Ariz.
Aug. 6 filed 5,000,000 shares of common stock to be is¬
sued to policyholders of American Buyers Insurance Co.
and American
Buyers Casualty Co., and employees.
Price—To so-called '^Expansion Policyholders"
(various
NEW
PREVIOUS
Underwriter—To be determined b,y competitive bidding:
Probable bidders: Halsey, Stuart & Co. Inc. and The
Price—
At par ($1 per share). Proceeds—For drilling expenses
and acquisition of additional properties for development
corporate
Underwriters
ADDITIONS
SINCE
sociated companies; for purchase of stock offered for
.subscription by such companies; for extensions, addi¬
tions and improvement and general corporate purposes.
Underwriter—None.
American-Canadian Oil & Drilling Corp.
May 12 filed 1,500,000 shares of common stock.
Y.
•
it American Telephone & Telegraph Co. (9/21)
Sept. 1 filed $250,000,000 30-year debentures due Sept.
15, 1984. Proceeds—For advances to subsidiaries and as¬
writer—None.
* Allied Control Co., Inc. (9/15)
Aug. 27 filed 100,000 shares of common stock (par $1).
Price—$8 per share. Proceeds—To selling stockholders.
York, N. Y., and Plantsville, Conn.
derwriter—Bache & Co., New York.
general
29
Chicago
Cleveland
3Q
30
(898)
The Commercial and Financial Chronicle
Continued
jrom
& Co.; The First Boston
29
page
for May
Merrill Lynch, Pierce, Fenner & Beane, New York.
Of¬
fering—Temporarily deferred.
Aug.
Offering—Originally set
(letter
Inc.,
of notification)
Lafayette,
&
Durst, Inc., Los Angeles, Calif.
California Water Service Co.
(9/13-14)
Aug. 23 filed 60,000 shares of cumulative preferred stock,
series I (par $25). Price—To be supplied by amendment.
Proceeds—To finance construction program and for gen¬
eral
corporate
Underwriter—Dean
purposes.
Witter
&
Co., San Francisco, Calif.
shares of common
Price—$100 per share. Proceeds—For
working capital. Office—164-09 Hillside Ave., Jamaica
32, N.
Underwriter—None.
(no
par).
'★ Capital Investment Co., Baltimore, Md.
Light Street, Baltimore 2,
—None.
Underwriter
Md.
Carolina Resources Corp.
(9/8)
Aug. 19 (letter of notification) 299,000 shares of common
stock. Price—At par ($1 per share).
Proceeds—To ac¬
quire claims and mining equipment, erect and equip
processing plant, and for working capital. Office—Nantahala Bldg., Franklin, N. C.
Underwriter — Allen E.,
Beers Co., Western Savings Fund
Bldg., Phila. 7, Pa.
.Aug. 9
Co.
(letter of notification)
shares of
1,700
common
Underwriter—Harris, Upham
&
125,000 shares of
stock
common
(par $1),
of which 111,638 shares are to be offered
by Photon, Inc.
for subscription by its stockholders on the basis of one
share for each two shares of
Photon, Inc. held; and the
remaining 13,362 shares are to be offered by Chemical
Products Corp. to its employees. Price—To be
supplied
by amendment. Proceeds—For general corporate purUnderwriter—G. H.
poses.
Walker
&
Co., Providence,
Rhode Island.
Industries,
Inc., Oklahoma City, Okla.
May 10 filed 5,000,000 shares of class B non-voting com¬
mon stock (par 1
cent). Price—$1 per share. Proceeds—
For construction,
operating expenses and working capi¬
Underwriter—None.
Cherokee Utah Uranium Corp.
June 24 (letter of
notification) 6,000,000 shares of capital
stock (par one cent). Price—Three cents
per share. Pro¬
ceeds—For mining expenses. Office—65 East 4th
South,
Salt Lake City, Utah. Underwriter—Cromer
Brokerage
Co., Salt Lake City, Utah.
Chief Consolidated
June 24 filed 1,252,408
50
cents)
Mining Co.
shares
of
preferred
stock
(par
and
626,204 preferred stock purchase war¬
rants being offered for
subscription by common stock¬
holders of record Aug. 2 on the basis of one share of
preferred and ian option to purchase one additional share
of preferred stock
(at 50 cents per share) for each two
shares held (with an
oversubscription privilege);
rights to expire on Sept. 30. Price—55 cents per unit.
Proceeds—For development program and
working capital
common
and
general corporate purposes. Office—Salt Lake City,
Underwriter—None. Statement effective July 28.
Utah.
it Colorado Mining Corp., Denver, Colo.
Aug. 23 (letter of notification) 300,000 shares of com¬
mon stock
(par 10 cents). Price—At the market (esti¬
mated at $1 per share).
Proceeds—To certain selling
stockholders.
New York.
Underwriter—L. D. Friedman & Co., Inc.,
'
'
.
...
★
Colorado Sports Racing Association
(9/8)
Aug. 19 (letter of notification) 297,995 shares of common
stock (par 10 cents).
Price—$1 per share.
construction of track and
working
Proceeds—For
capital.
Equitable Bldg., Denver,
Investing Co., same city.
Colo.
Underwriter
Office
—
—
General
★ Columbus & Southern Ohio Electric Co.
(9/20)
Aug. 31 filed 200,000 additional shares of common stock
(par $5). Price—To be supplied by amendment. Pro¬
ceeds—To
repay
bank
loans and for
new
construction.
Underwriters—Dillon,
The Ohio
Read & Co. Inc., New York, and
Company, Columbus, Ohio.
'
★ Columbus & Southern Ohio Electric Co.
(9/29)
Aug. 31 filed $10,000,000 of first
mortgage bonds due
1984. Proceeds—To
repay bank loans and for new con¬
struction. Underwriter—To be
determined by competi¬
tive bidding.
Probable bidders:
Halsey, Stuart & Co.
Inc.; Dillon Read & Co. Inc. and The Ohio
Company
Hutzler; Union Securities
Corp and Glore, Forgan & Co.
(jointly); White, Weld &
Co.; Carl M.
Loeb,^ Rhoades & Co. and Lee Higginson
Corp. (jointly). Bids—Expected to be
received up to
(jointly);
Salomon
Bros.
&
11:30 a.m. (EST) on
Sept. 29 at City Bank Farmers Trust
Co., 22 William Street, New York
15, N. Y.
Consol. Edison Co. of New
York, inc.
April 7 filed $50,000,000 of first and
refunding mort¬
bonds, series K, due May 1, 1984.
Proceeds—To be
applied towards cost of
redeeming $27,982,000 New York
gage
Steam
Corp
first mortgage bonds and
$25,000,000 West¬
chester Lighting Co.
general mortgage bonds.
Under-
^ ^7Ti° be determined by
able bidders.
14
Refining Co., Houston, Texas
filed
shares of
of
$625,000
common
stock
6%
debentures
(par 10 cents)
Halsey, Stuart
competitive bidding. Prob¬
Inc.; Morgan Stanley
& Co.
and
375,000
to be offered in
units of $50 of debentures and 30 shares of stock. Price
—$100
per
ments.
Underwriter—None.
unit. Proceeds—For additions and improve¬
Danaho
June
14
Aug.
16
(letter
stock.
mon
other
general
corporate
purposes.
of
Corp., Grand Junction, Colo.
notification) 300,000 shares of com¬
Proceeds—For
development expenses.
Office — 618
Price—At par ($1 per share).
exploratory and
Avenue, Grand Junction, Colo.
Underwriter
Joe Roserunai, 1609
Broadway, Denver, Colo.
Rood
—
★ Gatineau Uranium Mines Ltd. (Canada)
Aug. 10 (Regulation "D' ) 300,000 shares of common stock.
Price—At par ($1 per share). Proceeds—For explora¬
tion and development costs. Office — 100 Adelaide St.
West, Toronto, Canada.
Underwriter—McCoy & Willard,
Boston, Mass.
•
General Bronze Corp.
Aug.
5 filed 32,933 shares of common stock (par $5);
being offered for subscription by common stockholders
of record Aug. 27 on the basis of one new share for each
being offered for subscription by common stockholders
10 shares
held; rights to expire on Sept. 13. Price—$22
Proceeds — For expansion program. Under*
writer—Lehman Brothers, New York.
share.
per
Refining Co., Houston, Texas
General Gas
filed
110,000 shares of common stock (par 10
cents). Price—$2 per share. Proceeds—For additions and
improvements. Underwriter—None.
Dayton Power & Light Co.
Aug.
23
1984'.
filed
$15,000,000
(9/22)
first mortgage
of
bonds
due
Proceeds—To repay bank loans and for construc¬
tion program.
Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Morgan Stanley & Co. and W. E. Hutton & Co.
(jointly); Lehman Brothers; Blyth & Co., Inc. and The
First Boston Corp. (jointly).
Bids—Expected to be re¬
up to 11 a.m. (EDT) on Sept. 22 at Irving Trust
Co., One Wall St., New York, N. Y. Invitations will be
published about Sept. 15.
★ Eastern Industries, Inc.
(9/15)
Aug.
of
27
filed
100,000
amendment.
shares
(par $10).
Proceeds
—
To
convertible
be
supplied by
working capital. Under¬
For
—
writers—Blair & Co. Incorporated and Cohu &
Co., both
of New York.
★ El Dorado Mining Co., Salt Lake City, Utah
Aug. 23 (letter of notification) 17,500,000 shares of
mon
ceeds
stock.
—
Price
For
—
At
par
exploration
com¬
(one cent
and
per share).
Pro¬
development
expenses.
Office—223 Phillips Petroleum
Building,
Utah.
Underwriter—Van Blerkom &
Salt Lake City,
same
city.
★ El Dorado-Plumbago Mines Consolidated, Inc.
Aug. 23 (letter of notification) 300,000 shares of capital
stock. Price—$1 per share. Proceeds—For
development
and
exploration expenses.
Office —139 No. Virginia
Street, Reno, Nev. Underwriter—None.
★ El Rey Uranium Corp., Salt Lake City, Utah
Aug. 24 (letter of notification) 1,475,000 shares of'com¬
mon stock
(par five cents). Price—20 cents per share.
Proceeds—For exploration and"development
expenses.
Qffice—510 Newhouse Building, Salt Lake City, Utah.
Underwriters
Mid-Continent Securities, Inc., Cromer
Brokerage Co. and Coombs & Co., all of Salt Lake City.
—
★ Eternalite, Inc., New Orleans, La.
Aug. 23 (letter of notification) 2,000 shares of class A
common stock
(no par) and 1,000 shares of cumulative
convertible class AA preferred stock (par $100). Price—
Class
A, $50
share; and class AA, $100 per share.
Proceeds—For purchase of lamps for
foreign manufac¬
turers.,
Office—1534 Melpmene St., New
Orleans, La.
per
Underwriter—Robert Stateson, 1700 Canal St., same
city.
Eureka Uranium Cor^.,
Cheyenne, Wyo.
July 12 (letter of notification) 30.000.000' shares of p^rr>_
mon
stock.
Price—At par (one cent per
share). Pro¬
ceeds
For mining expenses. Office—2215 Duff
Ave.,
Cheyenne, Wyo.
Underwriter—Underwriters, Inc.,
Sparks, Nev.
—
★ Fidelity Acceptance Corp., Minneapolis, Minn.
Aug.
30 filed 6,000 shares of
7%
cumulative
preferred
stock
(par $25), to be offered to employees; $900,000 of
5%% capital debentures and 24,000 shares of 6% cumu¬
lative
class
E
preferred stock.
Proceeds—To reduce
outstanding bank loans. Underwriters—M. H. Bishop &
Co., Minneapolis, Minn., and B. I. Barnes, Boulder, Colo.
Financial Credit Corp., New York
Jan. 29 filed 250,000 shares of 7% cumulative
fund preferred stock. Price—At
—
sinking
working capital.
tain & Co., Inc., New York.
First Railroad &
Banking Co. of Georgia
July 30 filed 42,000 units, each consisting of one share
of common stock, one warrant to subscribe
at $4.10 per
share
to
13
shares
of
common
stock, and one $250 5%
collateral trust bond due Aug.
1, 1988, to be offered for
each of the 42,000 shares of
outstanding common stock
pursuant to plan of readjustment; also
756,000 shares
of
common stock, which includes
546,000 shares subject
to subscription
upon exercise of warrants and 210,000
shares to be offered to public at
$4.50 per share through
Johnson, Lane, Space & Co., Savannah, Ga., who will
also purchase such of the
546,000 shares of
not sold upon exercise of warrants.
common
stock
Four
Corners
Uranium
Corp.,
Denver, Colo.
note and
on
stock
(par $1).
bank loans,
repay
contracts for purchase of certain claims and
To
—
&
Avenue,
New
York,
N.
Y.
Underwriter
—
George
F*.
Breen, New York.
★ Georgia Power Co. (9/15)
26 filed 433,869 shares of cumulative preferred
stock (to bear a dividend of not more than
$4.92 per
share), Which are to be offered in exchange, together
Aug.
in
amount
an
cash,
for
shares of $6 preferred stock.
the
outstanding
433,869
The exchange will be from
Sept. 15 to Oct. 4, according to present plans and the
exchange offer will be mailed on Sept. 15. Unexchanged
stock
will
be
redeemed
Price
share.
Underwriters—The
Of
—
Nov.
on
share.
stock
new
6,
1954,
expected
First
to
at
$110
per-
be
$105
per
Boston
Corp.; Merrill
Lynch, Pierce, Fenner & Beane; Union Securities
Corp.;
and Equitable Securities
Corp.
•
Glen-Gery Shale Brick Corp. (9/14)
Aug. 18 filed 140,000 shares of 6% cumulative first
pre¬
ferred stock
(par $10) to be offered for public sale.
Price—To be supplied by amendment. Proceeds—For
ex¬
pansion program. Office—Reading, Pa. Underwriters—
W. Brooks &
P.
Co., Inc. and Lee Higginson Corp., both
York; and Warren W. York & Co., Inc., Allenj town, Pa.
of New
★ Gold Butte Uranium Mines, Inc.
Aug. 18 (letter of notification) 200,000 shares of com¬
stock. Price—At par
($1 per share). Proceeds—For
development and exploration expenses. Office—308 Fre¬
mont St., Las
Vegas, Nev. Underwriter-—None.
mon
•
Grand Union Co.
Aug.
11
filed
$5,503,400 of 3J/2% 15-year convertible
debentures due Sept. 15, 1969,
being of¬
subscription by common stockholders on the
basis of $100 of debentures for each 13
shares held on
subordinated
fered
for
Aug. 31, 1954; rights to expire on Sept. 15. Price—At
Proceeds—For equipping new stores and remodel¬
ing and modernization of existing stores and other
par.
gen¬
eral corporate purposes.
& Co. and W. E. Hutton
Underwriters—Morgan Stanley
&
Co., both of New York.
★ Great Basins Petroleum Co., Denver, Colo.
A"<*. 30 filed 500.000 shares of common stock
(par $1).
Price—To be supplied by amendment.
Proceeds—To
repay
First
bank loans and reduce other debt. Underwriter—
California Co., Inc., San
Francisco, Calif.
-
★ Guaranty National Life Insurance Co.,
Houston, Texas
Aug. 13 (letter of notification) preorganization certifi¬
cates
to 86,562 shares of class A stock
(no par) and
14,427 shares of class B stock (no par), through offer of
rescission.
Proceeds—For
Underwriter—None.
capital
Guaranty
Houston; Tex., filed for
and
surplus
National
account.
Underwriters,
company.
C^ast Wes+ern Oil Co.
Jufy 22 (letter of notification) $299,000 of 6% converti¬
ble'
secured
debentures.
Price—At
par.
Proceeds—To
present debt and for working caoital. Office—916
Republic Bldg., Oklahoma City, Okla. Underwriter—
pay
Harrison & Co.,
•
Philadelphia, Pa.
Gulf ^*a+e* Utilities Co.
Majy lA filed 160,000 shares of
Proceeds
—
To
redeem
preferred stock (par $100).
50,000 shares of $4.50 dividend
preferred stock, 60,000 shares of $4.40 dividend preferred
stock, 1949 series, and 50,000 shares of $4.44 dividend
preferred stock at the prevailing redemption prices of
$105. $105, and $105.75, respectively.
Underwriter—To
be determined by competitive
bidding. Probable bid¬
der^:
Stone
&
Webster
Securities
Corp.;
Lehman
Brothers and Equitable Securities
Corp.
(jointly); Kuhn.
& Co. and W. C. Langley &
(jointly). Bids—Had tentatively been expected to be
Loep & Co.; Glore, Forgan
Co.
up
to
Hanover Bank,
11:30
70
a.m.
(EDT)
on
June
15
at
The
Broadway, New York. N. Y.. but of¬
fering has been postponed.
vote Sept. 3 on new issue.
Meeting—Stockholders will
Gulf States Utilities Co.
May
July 26 filed 500,000 shares of common
Price—$2 per share.
Proceeds—To
(par $5)i
•
received
★ Fluor Corp., Ltd.
Aug. 17 (letter of notification) 1,500 shares of common
stock (par
$2.50). Price—At market. Proceeds—To sell¬
ing stockholder. Underwriter—William R. Staats &:
Co.,
Los Angeles, Calif,
*
stock
Proceeds
General Nucleonics Corp. (9/13)
Aug. 18 (letter of notification) 59,500 shares of common
stock (par 10 cents).
Price—$5 per share. Proceeds—
For expansion and working capital.
Office—489 Fifth
par
ceeds—For
common
To be supplied by amendment.
selling stockholders. Underwriter—Kidder, Peabody
Co., New York. Offering—Expected in September.
feu'f
($2 per share). Pro¬
Underwriter—E. J. Foun¬
Corp., Baton Rouge, La.
March 19 filed 100,000 shares of
Price
with
cumulative
Price
Co.,
Cherokee
tal.
June
preferred stock
it Chemical Products Corp., Providence, R. I.
Aug 27 filed
Highway, 52 By-Pass, Lafayette, Ind.
ceived
(Kansas)
stock (par $1). Price—$14 per share. Proceeds—To Getto
McDonald, a director.
Co., New York.
working capi¬
★ Cott Beverage Corp., New Haven, Conn.
Aug. 27 filed 200,000 shares of common stock (par $1.50),
of which 120,000 shares are for the account of the com¬
pany and 80,000 shares for certain selling stockholders.
Price—To be supplied by amendment.
Proceeds—For
expansion. Underwriter—Ira Haupt & Co., New York.
Offering—Expected in four to six weeks,
,
Aircraft
Price—$3
Underwriter—None.
★
Cessna
S.
for
-
Aug. 25 (letter of notification) $300,000 face amount 10year debentures, without interest.
Price—$75 for each
$100 principal amount. Proceeds—To finance affiliates.
Office—10
$1).
(par
Office—U.
Danaho
★ Calverton Development Corp.
Aug. 26 (letter of notfication) 500
stock
tal.
Ind.
31,000 shares of com¬
per share.
Proceeds—
mon
stock
and
Underwriter—Campbell, McCarty & Co., Detroit, Mich.
Four States Uranium
Industries,
To pay current indebtedness and increase
(par $1).
properties;
set.
stock
seller
*
11
date
new
July 21
(letter of notification) 8,000 shares of common
Price — At market (on the American
Stock Exchange). Proceeds — To Mono Power Co. (an
affiliate) to retire indebtedness. Underwriter—Wagen-
'
No
★ Consolidated
California Electric Power Co.
Corp.
11, but has been postponed because of market
conditions.
Thursday, September 2, 1954
...
June
14
filed
$24,000,000
of
first
mortgage
bonds
due
1, 1984. Proceeds—To redeem $10,000,000 of 33/q%
first mortgage bonds due 1981 and $10,000,000 of 3%%
first mortgage bonds due 1983, and for general corpo¬
rate ^purposes.
Underwriter—To be determined by com-
Volume
Number
180
5356
.
.
The Commercial and Financial Chronicle
.
'31
(899)
*
petitive bidding.
Probable
Halsey,
bidders:
Stuart
&
Marion River Uranium Co.
Co. Inc.; Lehman Brothers; Merrill Lynch, Pierce, Fen& Beane and White, W(eld & Co. (jointly); Salo¬
Bros. & Hutzler and Union Securities
mon
terest.
June 14 (letter of notification) 300,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For development expenses. Underwriter—Crerie & Co.,
ner
Corp.; Kuhn,
Loeb & Co. and A. C. Allyn & Co., Inc. (jointly); Lee
Higginson Corp. and Carl M. Loeb, Rhoades & Co.
(jointly); Stone & Webster Securities Corp. Bids—Had
tentatively been expected to be received up to 11 a.m.
(EDT) on June 15 at The Hanover Bank, 70 Broadway,
New York, N. Y., but offering has been postponed.
Mars
Metal
exercise of
loans
and for construction
program.
First
Boston
Corp.
Merrill
and
Lynch,
Pierce,'
when
Aug. 26 filed 150,000 shares of beneficial interest.
—At market.
Proceeds—For investment. Office—1 Court
acquire assets
Aug. 11
Sept. 1,
and
balance
time
any
on
on
television
request of
the
board
Just ^eim
Aug.
7
diiectors
or
at
15 days from date of grant of
Proceeds—For organization expenses,
after
or
permit.
equipment, construction and relaied
•
of
of
York Trust
—
Kern
Front Oil
& Gas
Pro¬
N. Y.
stockholders.
Price
pay
To
be
supplied
by amendment.
obligations.
Business—
develops and manufactures rotating precision
Designs,
—
outstanding
electronic controls and instruments.
Becker & Co. Inc.,
Underwriter—A. G.
Chicago and New York.
"
Keystone Fund of Canada, Ltd., Montreal, Canada
Aug. 2 filed 1,250,000 shares of capital stock. Price—
To
be
supplied by amendment. Proceeds—For invest¬
Underwriter—The Keystone Co. of Boston, Boston,
ment.
Mass.
stock
(par five cents).
Price—50 cents
ceeds—For
exploration, etc.
curities, Inc., Newark, N. J.
per
common
Pro¬
Underwriter—Daggett
Se¬
Mines, Ltd., Toronto, Can.
660,000 shares of common stock (par $1,
Canadian), of which 500,000 shares are to be offered in
behalf of the company and 160,000 shares for account
of Percy E. Rivett. Price—40 cents
per share, U. S. funds.
Proceeds
For development and exploration
expenses.
Underwriter—To be named by amendment.
filed
—
«
it Lewis
Aug.
26
(E. L.)
(letter
Co., Inc., Spartanburg, S. C. ;
notification) $70,000 of 6% capital
of
debentures, series A.
of $1,000 each).
working capital.
Price—At
par
(in
Proceeds—To finance
denominations
store, or for1
Underwriters—Dargan & Co. and Cal¬
new
houn & Co., both of Spartanburg, S. C.
stock
(par one cent).
Price—Three cents per share.
Proceeds—For mining operations.
Office—402 Darling
Bldg., Salt Lake City, Utah.
Underwriter — Uranium
Mart, Inc., 146 S. Main St., Salt Lake City, Utah.
Lindsay Chemical Co.
(9/14)
on
a
rata
Loma Uranium
Corp., Denver, Colo.
(9/10p3
18 filed
1,000,000 shares of common stock (par 10
Price—$1.25 per share. Proceeds—For explora¬
tion and development costs, purchase of
equipment, and
reserve for acquisition of additional
properties. Under¬
cents).
writer—Peter Morgan & Co.. New
•
Neo-Line
Aug.
W.
Road,
Corp. (9/7-8)
notification) 132,700 shares of
Price—At par ($1 per share).
a
Business—Manufactures
custom molder
of
dies
and
plastics. Office—75-10
it Nevada Southern Gas Co., Las Vegas, Nev.
Aug. 30 filed 20,000 shares of 6% first preferred stock
(par $20) and 85,000 shares of common stock (par $1).
per
;-&hare.
Proceeds—For working capital. Office—Room
71$, 141
Broadway, New York. Underwriter—None.
Underwriter—None.
Petaca
i
com¬
Proceeds—For
Mining Corp., Santa Fe, N. Mex. (9/8)
June 9 filed 600,000 shares of cumulative sinking fund
preference stock and 300,000 shares of 10-cent par
common stock to be offered in units of two preference
shares and one common share. Price—$3 per unit. Pro¬
ceeds—To retire 40,526 shares of outstanding preferred
stock, for power line extensions and electric transform¬
ers, equipment and machinery, exploration and working
capital. Underwriter—Barrett Herrick & Co., Inc., New
York. Offering—Expected shortly after Labor Day.
Price—Of
it Pitney-Bowes, Inc., Stamford, Conn.
Aug. 20 (letter of notification) 10 shares of common
stock (par $2).
Price—Around $20.90 per share. Pro¬
per
ceeds—For
preferred, $20 per share; and of common, $6
share. Proceeds—To repay obligations of the com¬
pany incurred in connection with the acquisition of the
business and
assets
—First California
of Las Vegas Gas Co.
Underwriter
Co., Inc., San Francisco, Calif.
New England Electric System
(9/28)
Aug. 20 filed 910,883 shares of common stock (par $1)
to be offered for subscription to common stockholders
the
on
basis
of
one
be Sept. 29).
share for
new
at the close of business
on
each
10
the record date
shares held
(expected to
Proceeds—To construction programs of its
Brothers and Bear, Stearns & Co.
(jointly);
Loeb, Rhoades & Co., Ladenburg, Thalmann &
Co.
and
Wertheim
&
Co.
(jointly);
Merrill Lynch,
Pierce, Fenner & Beane, Kidder, Peabody & Co. and
White, Weld & Co. (jointly). Bids—Tentatively expected
Carl
M.
to be received up
to 11
(EST)
a.m.
on
Sept. 28.
New Mexico
Copper Corp., Carrizozo, N. M.
June 14 (letter of notification) 198,000 shares of capital
stock (par 25 cents). Price—50 cents per share. Proceeds
—For acquisition of power plant, improvement of
mill,
development of properties and general corporate pur¬
poses.
Underwriter—Mitchell Securities, Inc., Baltimore,
Md.
i
North Central
cents
57th Street, New York, N. Y.
Proceeds—For
McDowell
Rockaway Blvd., Woodhaven, L. I., N. Y. Underwriter—
of
share).
None.
^ork.
Price—25
307
Underwriter—None.
working capital, etc.
tion
operators.
per
—
Products
molds and is
June
and
Office
(letter of
11
stock.
($10
par
capital.
Phoenix, Ariz.
it Majestic Auto Club, Inc.
m
Aug. 25 (letter of notification) 100,000 shares of coxpmon
stock (par five cents) to be offered
only to service sta¬
owners
Price—At
selling stockholders.—Underwriter—Fairman, Har¬
Inc., Chicago, 111.
Peoples Securities Corp., New York
Aug. 11 filed 74,280 shares of capital stock. Price—$11
per share.
Proceeds—For investment. Office—136 East
common
Lehman
basis; rights to expire on Sept. 28.
Price—To be supplied by amendment.
Proceeds—For
working capital. Underwriters—Lehman Brothers, New
York; and Farwell, Chapman & Co., Chicago, 111.. t
pro
tain
Phoenix, Ariz.
10,000 shares of
con¬
ris & Co.,
noston. Mass.
Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Blyth & Co., Inc.;
23 filed an issue of common stock (number of
shares not given), which are to be offered for subscrip¬
tion by preferred and common stockholders about
Sept.
June
(letter of notification) 58,800 shares of com¬
mon stock (par $1).
Price—$5 per share. Proceeds—For
working capital, etc. Underwriter—J. P. Marto & Co.,
jpsbidiaries.
Aug.
14
March 10
Aug. 23 (letter of notification)
com¬
vertible prior preferred stock (par $25). Price—At mar¬
ket (estimated at $11.75 per share).
Proceeds—To cer¬
Industries, Inc., Natick, Mass.
it National Home Directory Co.,
newj
by
Peabody Coal Co., Chicago, III.
July 14 (letter of notification) 17,300 shares of 5%
Nevada.
-
Liberty Uranium Corp., Salt -ake City, Utah
July 1 (letter of notification) 3,000,000 shares of common
•
com-
stock. Price—At
For
Natick
determined
Pacific Telephone & Telegraph Co.
May 7 filed 1,004,603 shares of common stock to be of¬
fered for subscription by common and preferred stock¬
holders of record Aug. 31 in ratio of one share for each
seven
shares of common and/or preferred stock held;
rights to expire Sept. 30.
Price—At par ($100 per
share). Proceeds—To reduce bank borrowings. Under¬
writer—None. American Telephone & Telegraph Co.,
the parent, owns 91.1 % of common stock and 78.2% of
preferred stock. Statement effective Aug. 24.
par (1 cent per share). Proceeds—
mining expenses.
Office—1117 Miner St., Idaho
Springs, Colo. Underwriter—Underwriters, Inc., Sparks,
mon
mon
Lake Lauzon
Aug. 2
share.
May 19 (letter of notification) 30,000,000 shares of
(
working
share.
per
Underwriter—None.
stock.
Ladoric Mines Ltd., Montreal, Canada
July 30 (regulation "D") 600,000 shares of
cents
mining operations.
Underwriter—Muir,
Co., Salt Lake City, Utah.
Mountain States Uranium, Inc.
Aug.
Proceeds—To
Price—20
be
01 Jato Uranium Co., Salt Lake City, Utah
Aug. 5 (letter of notification) 1,750,000 shares of common
stock (par one cent).
Price—15 cents per share. Pro¬
ceeds—For mining operations.
Office—114 Atlas Bldg.,
Salt Lake City, Utah. Underwriter — Rocky Mountain
Securities, the same city.
stock.
Price—At par
($1 per share).
Proceeds—For
working capital. Office—117-119 Main St., Poughkeepsie,
(9/16)
27 filed 300,000 shares of common stock (par 10
cents), of which 200,000 shares are to be offered by the
company and 100,000 shares for account of certain selling
cents).
Underwriter—To
bidding. Probable bidders: The First Boston
Corp.; Smith, Barney & Co.; Merrill Lynch, Pierce, Fen¬
ner &
Beane; Lehman Brothers and Blyth & Co., Inc.
(jointly). Bids—Tentatively expected to be received up
to 11 a.m. (EDT) on Sept. 14 at office of J. P. Morgan
& Co. Incorporated, 23 Wall St., New York City.
it Motorists' Discount Service of America, Inc.
Aug. 27 (letter of notification) 41,500 shares of common
com¬
ceeds—For expenses incident to oil and gas activities.
Office—825 S. Serrano Avenue, Los Angeles, Calif. Un¬
derwriter—Farrell Securities Co., New York.
it Ketay Instrument Corp., New York City
10
Inc.
petitive
Proceeds—For
Dumke &
(letter of notification) 300,000 shares of
stock (par one cent).
Price—$1 per share.
(par
Minerals,
30,000 shares to underwriter.
construction.
Co., '100 Broadway, New York 15, N. Y.
stock
mon
Defense
Oklahoma Gas & Electric Co. (9/14)
Aug. 16 filed 75,000 shares of cumulative preferred stock
(par $100). Proceeds—To repay bank loans and for
Monterey Uranium Corp., Salt Lake City, Utah
Aug. 13 (letter of notification) 1,500,000 shares of com¬
Corp.
Aug. 10
mon
(9/8)
filed
bidders: Halsey, Stuart & Co. Inc.; Blyth &
Co., Inc., White, Weld & Co. and Merrill Lynch, Pierce,
Fenner & Beane (jointly); Blair & Co. Inc. Bids—To be
received up to 11 a.m. (EDT) on Sept. 8 at The New
five
of
Underwriters—To be de¬
Price—$1 per share.
mining operations. Office—2101 S St.,
Washington, D. C. Underwriter—Mitchell Securi¬
ties, Inc.,.Baltimore, Md.
Probable
purposes.
notification) 200,000 shares of capital
cents), subject to outstanding options.
Price
At market (estimated at 15 cents
per share).
Proceeds—To Clarence I. Justheim, President. Office—
212 Phillips Petroleum Building, Salt Lake
City, Utah.
Underwriter—Hunter Securities Corp., New York.
No
general offer planned.
(par
Co.
due
program
Proceeds—For
payment of $10,000,000 of notes payable to banks. Un¬
derwriter—To be determined by competitive bidding.
Petroleum Co., Salt Lake City, Utah
(letter
stock
Utilities
construction
N. W.,
$5,000,000 of first mortgage bonds due
1979, and $7,000,000 of first mortgage serial
bonds due March 1,
1956-1975, inclusive. Proceeds—To
redeem $2,550,000 4.50% serial bonds; and toward
pre¬
Each
2%
and
Grand
Montana-Dakota
prior
subscription agreement provided for payment of
of tne total purchase price on signing agreement
Northwest
& T. McCluskey & Sons, Inc. Office
Avenue, New Haven, Conn. Underwriter—
Barnes, Bodell & Goodwin, Inc., New Haven, Conn.
:
unnecessary.
1,
Aug. 12 (letter of notification) 300.000 shares of common
stock, of which 270,000 shares are to be offered to public
debentures,
and business of H.
—527
Proceeds—For capital
termined
by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Lehman Brothers and Riter
& Co. (jointly); Smith, Barney & Co.; Glore, Forgan
& Co.; Merrill Lynch, Pierce, Fenner & Beane,
Kidder,
Peabody & Co. and White, Weld & Co.
(jointly);
Equitable Securities Corp. and Union Securities Corp.
(jointly); Kuhn, Loeb & Co.; A. C. Allyn & Co. Inc. and
Wertheim & Co. (jointly). Bids—Expected to be received
on or about Sept. 28.
1
series A, due July 1,
1962, and $95,000 of 6%
series B, due July 1, 1970. Proceeds—To
it Irwin community Television Co., Irwin, Pa.
Aug. 31 filed 4,000 shares of 5% cumulative preferred
stock (par $100) and 2,250 shares of common stock
(par
$100),-of which 4,000 shares and 2,000 shares, respec¬
persons
1984.
Proceeds—For
company and its subsidiaries.
McCluskey Wire Co., Inc., New Haven, Conn.
June 21 (letter of
notification) $95,000 of 5% debentures,
Price
St., Boston, Mass.
tively, have been subscribed for by 156
to registration thinking registration was
Oct.
Price—Of common, may be $2.50 per share
offered.
share).
it Northern States Power Co. (9/28)
Aug. 31 filed $20,000,000 of first mortgage bonds
a
class B stock.
it Investment Trust of Boston
per
Office—119 Monona Ave., Madison, Wis.
Underwriters—Harley, Haydon & Co. and Bell & Far¬
rell, Inc., both of Madison, Wis.
phens Co., New York, of 199,000 class A shares.
The
registration statement may be amended to change the
designation' of the 121,000 shares of class A stock to
Fenner & Beane, both of New York.
($50
par
improvements.
like number of warrants granted to certain
dealers in connection with public offering
by F. W. Ste¬
(9/16)
Aug. 27 filed 200,000 shares of common stock (no par).
Price—To be supplied by amendment. Proceeds—To re¬
pay bank loans and for new construction.
Underwriters
—The
Price—At
of class A
^ Illinois Power Co.
reduce bank
(letter of notification) 3,000 shares of common
being offered for subscription by stockholders.
stock
Underwriters—Merrill Lynch, Pierce, Fenner
& Beane and The First Boston Corp., both of New York.
To
North-West Telephone Co.
Corp., San Francisco, Calif.
stock; 172,000 shares for issuance at 10 cents
per share pursuant to stock options given to certain key
employees; and 100,000 shares are reserved for issuance
at $1.50 per share during the years 1955-1957 upon the
—
Office—World-Chamberlain Field.
Underwriter—None.
July 30
July 23 filed 121,000 shares of class A stock (par 10 cents)
and 3,000,000 shares of common stock.
It is planned to
sell at $2.50 per share 75,000 class A shares privately,
the remaining 46,000 shares to be issued to
provide
working capital or funds for investment. Of the com¬
mon stock, 320,000 shares are to be reserved for holders
^ Illinois Power Co. (9/16)
Aug. 27 filed 180,000 shares of cumulative preferred
(par $50). Price—To be supplied by amendment.
Proceeds—To reduce trade accounts payable and
working capital.
Minneapolis, Minn.
Houston, Tex.
Stock
Proceeds
for
15
Airlines, Inc.
(letter of notification) $300,000 of 10-year 6%
convertible
debentures
to
stockholders
common
$100
principal
shares held
to expire on
(with
due
of
amount
an
Sept. 15.
July 31, 1964 being offered
record Aug. 5 on the basis
of
debentures
for
each
100
oversubscription privilege); rights
Price—At 100% and accrued in¬
working
capital.
Underwriter—None.
Rapid Film Technique, Inc., N. Y. City
July 30 (letter of notification) 60,000 shares of com¬
mon
stock
(par 10 cents).
Price—$2 per share. Pro¬
ceeds—For working capital. Office—21 West 46th Street,
New York 36, N. Y.
Underwriter—Jerome Rosenberg,
Future Estate Planning, 630 McLean Ave., Yonkers, N. Y.
•
Resort
Airlines, Inc., Miami, Fla.
(letter of notification) 1,361,972 shares of com¬
mon
stock (par 10 cents) being first offered to stock¬
holders of record July 30, 1954; then to public.
Price—
20 cents per share. Proceeds—For maintenance of equip¬
ment, to reduce accounts payable and for working cap¬
ital.
Address—Box 242, International Airport, Miami,
Aug. 5
Fla.
Underwriter—None.
it Riddle Uranium Mines, Inc. (9/10)
Aug. 20 (letter of notification) 2,000,000 shares of com¬
mon
stock.
Price—15 cents per share.
Proceeds—For
exploration and development expenses.
Office — 950
Pinyon St., Grand Junction, Colo. Underwriter—Tellier
& Co., Jersey
Rockhill
City, N. J.
Productions,
Inc.
(letter of notification) warrants to purchase
23,029 shares of common stock. Price — $2 per share.
Proceeds—To two selling stockholders. UnderwritersMortimer B. Burnside & Co., Inc. and Batkin & Co.,
July
15
both of New York.
Ross
(J. O.)
Engineering Corp.
Aug. 12 (letter of notification) 3,500 shares of common
(par $1). Price—$25 per share. Proceeds—To Ryan
stock
Continued
on
page
32
32
(900)
The Commercial and Financial Chronicle
Continued
from
31
page
Sadwith, Vice-President. Underwriter
Marache &
Granbery,
—
Co., New York.
if San Diego Gas & Electric Co.
(9/20)
Aug. 24i filed 800,000 shares of common stock
be
to
offered
for
subscription by
(par $10)
stockholders
common
of record Sept. 14 on the basis of one new share for each
four shares held; unsubscribed shares to be offered first
to
employees.
tion
Rights
period will
about
Sept.
open
13.
Price—To
Proceeds—To retire
burse
are to expire on Oct. 5.
Subscrip¬
Sept. 20, with warrants to be mailed
be
supplied
by amendment.
$5,000,000 of bank loans and to reim¬
the company for construction made.
—Blyth & Co.,
York, N. Y.
Inc.,
San
Santa Fe Uranium
Francisco,
Underwriter
Calif.,
and
New
Co., Salt Lake City, Utah
Aug. 5
(letter of notification) 1,500,000 shares of com¬
stock (par five cents).
Price—20 cents per share,
mon
ifroceeds—For
exploration and development of propcrUnderwriter—Coombs & Co., Salt Lake City, Utah.
ties.
Thunderbird Uranium Co., Reno, Nev.
Aug. 3 (letter of notification) 1,800,000 shares of com¬
mon stock
(par 10 cents). Price — 15 cents per share.
Proceeds—For mining activities. Office—206 N. Virginia
St., Reno, Neb. Underwriter—Stock, Inc., Salt Lake City.
Tomahawk Oil &
27
(letter of
notification)
240,000 shares
of class
(letter
stock.
mon
Price—At par
($1
shares of
109,400
Union
and
Securities
West Coast
Pipe Line Co., Dallas, Tex.
1,125,000 shares of common stock (par
50 cents).
Price—To be supplied by amendment. Pro¬
ceeds—Together with other funds, to be used to build
pipeline. Underwriters—White, Weld & Co. and Union
Securities Corp., both of New York.
Offering—Post¬
poned indefinitely.
Nov. 20, 1952 filed
Western Development Co.
Drilling Co., Albuquerqua, N. M.
of notification)
Co.
&
York.
12
Aug. 23
Underwriters
—
White,
Corp., both of New
Offering—Postponed indefinitely.
Weld
Manganese Mining Corp.
(letter of notification) 299,000 shares of com¬
mon stock
(par one cent). Price—$1 per share. Proceeds
—For mining expenses.
Underwriter—A. L. Albee &
Co., Boston, Mass.
Aug.
com¬
per
filed
20
and
share). Proceeds—For
general corporate purposes.
Office—Quadalupe Trail,
Albuquerque, N. Mex. Underwriter—None.
60,000
the shares
$5
360,000
subscription
stock (par $1)
300,000 of
capital
warrants,
of
which
to
be presently publicly offered.
Price—
Proceeds — To purchase certain royalty
are
share.
per
interests
(9/14)
shares of
located
in
New
Mexico
and
Colorado
for
and
if Trailway Oil Co., Denver, Colo.
Aug. 12 (letter of notification) 200,000 shares of com¬
mon
stock.
Price—At par ($1 per share).
Proceeds—
For general corporate purposes.
Underwriter — Peters,
general corporate purposes. Office — Santa Fe, N. M.
Underwriter—J. G. White & Co., Inc., New York,
i
Writer
Aug. 31
&
ic Western Massachusetts Electric Co.
Christensen, Inc., Denver, Colo.
Oct.
due
Trans-Western Uranium Corp.,
Salt Lake City, Utah
Ar Selevision Western, Inc.
Aug.
1,030 mile crude oil pipeline.
Titan
July
Thursday, September 2, 1954
...
filed $6,000,000 first mortgage bonds, series B,
1, 1984.
Proceeds—To repay bank loans in¬
curred for
new
construction.
Underwriter—To be deter¬
Aug. 16 (letter of notification) 5,960,000 shares of com¬
mon Jt.ock
(par two cents). Price—Five cents per share.
Proceeds—For exploration and development costs. Office
15 Exchange Place, Salt Lake
City, Utah. Underwriters
mined by competitive bidding. Probable bidders:
Stuart, &
Co.
Inc.; The First Boston Corp.;
Uranium Co., Inc.
.Aug. 6 (letter of notification) 1,000,000 shares of com¬
mon
stock (par five cents).
Price—25 cents per share.
—Whitney
Proceeds—For
Wendelboe & Co.
"Building,
May 24 filed 100,000 shares of common stock (par $1).
Price—$4.75 per share. Proceeds—To redeem 1,250 out¬
standing preferred shares ($125,000), to repay bank
loan, etc. ($2,500); for purchase or acquisition of addi¬
if Treasury Vault Uranium Corp., Denver, Colo.'i
Aug. 23 (letter of notification) 570,000 shares of common
stock (par 10 cents).
Price—25 cents per share. Pro¬
poses.
ceeds—For
Rice
A
convertible
stock
(par
Price—$1.25
$1).
share.
Underwriter—Whit¬
(Proceeds—For
working capital, etc.
ney-Phoenix Co., inc., New York.
per
Shasta Copper &
named
mining operations.
Office—612 Dooly
Salt Lake City, Utah.
Underwriter — To be
by amendment.
Somerset
Telephone Co., Norridgewock, Me.
-Tune 11 (letter of notification) 2,200 shares of capital
j^ock. Price—At par ($5 per share). Proceeds—For ex¬
pansion and new equipment. Underwriters—E. H. Stan¬
cey & Co., Waterville, Me.; and Clifford J. Murphy Co.,
Portland, Me.
&
ler
&
Corp., Salt Lake City, Utah
(letter of notification) 6,000,000 shares of
Aug. 2
stock
mon
Vroceeds
(par
one
For
—
cent).
com¬
Price—Five cents per share.
and development
costs.
exploration
Underwriter—Ned J. Bowman Co., Salt Lake City, Utah.
-offered in units of
share of each class of stock. Price
one
—$10.01 per unit. Proceeds—For purchase of land and to
•construct and equip a
luxury hotel. Underwriter—None.
Union Compress & Warehouse Co.
Supermarket Merchandisers of America,
Inc. (9/15-16)
July 15 (letter of notification) 199,700 shares of
(letter of notification) 30,000 shares of common
(par $1). Price—$10 per share. Proceeds—To 35
selling stockholders. Office
Memphis, Tenn. Under¬
writers—Leftwich & Ross and Mid-South Securities
Co.,
—
rftock
(par 10 cents).
Price—$1.50
per
share.
chase
and
Proceeds—
Tacony Uranium Corp., Denver, Colo.
Aug. 17 (letter of notificacion) l,70u,0uu snares of
stock.
Price—10
cents
per
share.
and
development expenses.
Railway Exchange Building, Denver, Colo.
—E. I. Shelley Co.,
Denver, Colo.
Office
—
317
Underwriter
Le
for
construction
determined
ders:
Stone
•fc Co.
and
Gachs
&
&
R.
Co.
(EDT)
a.m.
by
Underwriter—To
program.
competitive
bidding. Probable bid¬
Corp.; White, Weld
W. Pressprich & Co.
(jointly); Goldman,
Webster
Securities
Bids—Scheduled
Sept.
on
22
at
to
49
be
received
Federal
up
Street,
Mass.
Taylorcraft, Inc., Conway, Pa.
April 30 (letter of notification) 150,000
cumulative
convertible
creditors.
to
11
Boston,
($2 per share). Proceeds—For
Underwriter—Graham & Co., Pitts¬
$41,300,000 of 4%%
duce bank loans.
rities
and 5% debentures and to
and
Inc.
•
Texas Internationa!
Sulphur Co. (9/15)
21 filed 455,000 shares of common
stock
cents),
of
which
re¬
Halsey, Stuart & Co.
June
subscription by
385,000
shares
are
to
be
(par
offered
10
for
stockholders at the rate of one
new share for each 4V2
shares held; and 70,000 shares
-are for account of certain
selling stockholders. Price—To
l*e supplied by amendment. Proceeds—For
exploration
common
and
drilling, and payment of bank loans and
Underwriter—Vickers Brothers, New
forts"
York,
basis.
advances
on a
"best ef¬
Thompson-Starrett Co. Inc., New York \
July 29 filed 145,000 shares of
cumulative convertible
preferred stock (par $10). Price
To be supplied
by
—
amendment.
Blair
for
&
Proceeds—To
general
corporate
repay
$1,000,000 bank loans
purposes-
Underwriters—
Co., Inc. and Emanuel, Deetjen & Co., both of
New York.
—
•
*
,
if Uranium Oxide Producers, Inc.,
Grand Junction, Colo.
Aug. 24 (letter of notification) 4,500,000 shares of com¬
mon stock
(par one cent). Price—Five cents per share.
For exploration and development
expenses.
Office—350 Fifth Avenue, New
York, N. Y. Underwriter
—None.
—
if Utah Uranium Corp., Las Vegas, Nev.
Aug. 20 (letter of notification) 10.000,000 shares of capi¬
(par 1 cent). Price — Three cents per share.
Proceeds—For exploration and development
expenses.
Office—1818 Beverly Way, Las
Vegas, Nev. Underwriter
—First Western
Securities,
same
city.
if Vigorelli of Canada, Ltd. (Canada)
Aug. 9 (Regulation "D') 96,770 shares of 8% preferred
stock
(par $2)
$1)
in
per
unit.
units
and 96,770 shares of
of
one
share
of
common
each
stock
Offering—Temporarily postponed.
leases
and
royalties
in
the
Canada and for other corporate pur¬
Underwriter—Irving J.
Eagle Uranium Co.
(letter of notification) 3,000,000 shares of com¬
stock (par five cents).
Price—10 cents per share.
Proceeds—For mining expenses. Office—351 S. State St.,
Salt Lake City, Utah. Underwriter—Arlin
Davidson, 39
Exchange Place, Salt Lake City, Utah.
Winter
Park Telephone Co.
(letter of notification) 3,000 shares of 5% cu¬
mulative
preferred stock.
Price — At par
($100 per
share).
Proceeds —For additional facilities.
Office
—
132 E. New England
Avenue, Winter Park, Fla.
Under¬
writer—None.
World
Uranium Mining Corp.
(letter of notification) 9,996,000 shares of com¬
stock
(par one cent).
Prices—Three cents per
July 21
mon
penses.
Utah.
Proceeds—For exploration and development ex¬
Office—323 Newhouse bldg., Salt Lake City,
Underwriter—P. G. Christopulos & Co., same city..
if Wyoming Uranium Corp., Salt Lake City, Utah
Aug. 23 (letter of notification) 9,166,667 shares of com¬
stock (par 1 cent).
Price—Three cents per share.
Proceeds—For exploration and development expenses.
Underwriter—James E. Reed Co., Salt Lake City, Utah.
mon
Zenith Uranium & Mining
Corp.
July 12 (letter of notification) 300,000 shares of common
stock (par one cent).
Price—$1 per share. Proceeds—
For mining operations.
Underwriter—Sheehan & Co.,
Boston, Mass.
(par
exploration
and
Inc.,
Denver, Colo.
Aug. 6 filed 65,000,000 shares of common stock (par one
cent).
Price—7y2 cents per share. Proceeds—To pur¬
chase mining claims and
exploratory equipment, and for
exploration costs. Underwriter—Weber Investment
Co.,
Salt Lake City, Utah.
(H. S.)
preferred
stock.
Price—At
cumu¬
($25 per share).
Proceeds—To retire funded debt, increase
working cap¬
ital and remodel store.
Office—139 North Brand Boule¬
—
Wagenseller
&
* Welex Jet Services, Inc., Fort Worth,
Texas (9/16)
Aug. 27 filed 68,528 shares of common stock (par $1) to
be offered for subscription
b.y common stockholders on
the
basis
of
one
new
share for each five shares held
10.
Price—To be supplied by amendment.
Proceeds—For working capital.
Underwriters—Laird &
of
Sept.
Co., Wilmington, Del., and First Southwest Co.,
Dallas,
Texas.
West Coast Pipe Line
Nov.
20,
1952
filed
authorizing
Co., Dallas, Tex.
per
12-year 6% debenture*
15, 1964, and 580,000 shares of common stock
(par 5tf cents) to be offered in units of one $50 deben¬
Arkansas
Feb.
22
it
stockholders
(par $20)
of
on
262,500
the basis
Gas
Co.
Cities Service Co. may sell its
holdings of 1,900,000 shares of this company's stock.
If
sold at competitive
bidding, bidders may include Smith,
Barney & Co. and Blyth & Co., Inc. (jointly).
reported
Chesapeake & Ohio Ry.
Aug. 23 it was reported company
may be considering a
plan to refund its outstanding $37,851,000 37/g% bonds.
Underwriter—May be determined by competitive bid¬
ding.
Probable bidders: Halsey, Stuart & Co. Inc.;
Blyth & Co., Inc.
(9/9)
Bids
will
be
8
by
the
company
up
to
..
noon
.
Colorado-Western
Pipeline Co.
Aug. 3 the Colorado P. U. Commission authorized com¬
to bipild a $21,500,000 natural gas pipe line, in
Colorado, to be financed through sale of about 70% of
pany
bonds
and
30%
of
equity capital (expected privately).
of Lehman Brothers, is a Vice-
John R. Fell, a partner
President.
Bank of
San
Jose,
Calif.
Aug. 23
it was announced stockholders will vote Sept.
increasing the authorized capital stock from 12,500
shares to 15,000, shares, the additional 2,500 shares to be
8
on
ceeds—For
$55,000,000 first mortgage bonds to be used to build
received
$90,000 each from Jan. 1, 1955 to and including July 1,
1969. Probable bidders:
Halsey, Stuart & Co. Inc.; Salo¬
mon
Bros. & Hutzler; Kidder,
Peabody & Co..
for each five
private sales oi
<
,,,*■■•
(CDT) on Sept. 9 at Room 744, Union Station Building,
Chicago 6, 111., for the purchase from it of $2,700,000
equipment trust certificates, series SS, to be dated July
1, 1954 and to mature in 30 semi-annual installments of
additional shares of
and
Louisiana
was
ture and one share of stock.
Price—To be supplied by
tmendment. Proceeds—From sale of units and
1,125,000
stock
offering to
ne^w share for each four shares held. Price—$45
share.' Proceeds—To increase capital and surplus.
if First National
$29,000,000
due Dec.
common
the
Underwriter—Blyth & Vo., Inc., San Francisco, Calif.
par
vard, Glendale, Calif.
Underwriter
Durst, Inc., Los Angeles, Calif.
as
on
additional shares of capital stock
of one
if Chicago, Milwaukee, St. Paul & Pacific RR.
& Co., Glendale, Calif.
Aug. 9 (letter of notification) 6,000 shares of 7%
lative
Prospective Offerings
if Anglo California National Bank of San Francisco
Aug. 31 it was stated that stockholders will vote Oct. 5
class.
Price—$3.10
development
expenses. Office—1812 St. Catherine St.
West, Montreal,
Canada. Underwriter—B. Femelohl &
Co., New York.
Proceeds—For
•
<*
.and
eqiupment, further research and development
products and new products design, and for work¬
capital.
Underwriter
General Investing Corp.,
new
Webb
Underwriters—Stone & Webster Secu¬
Corp., White, Weld & Co.
Co.
Office—Glendive, Mont.
Co., St. Paul, Minn.
&
share.
ditional
(9/14)
Aug. 27 filed $65,000,000 of debentures due Sept. 1, 1974.
Price—To be supplied by amendment.
Proceeds—To re¬
deem
Office—Room
if U. S. Fiberglass Industrial Plastics, Inc.
Aug. 27 (letter of notification 150,000 shares of common
stock (par $1). Price—$2
per share.
Proceeds—For ad¬
6%
stock, of which 100,public and 50,000 shares to
Tennessee Gas Transmission Co.
subsidiaries,
938, Merchan¬
Underwriter—First California
Warren Oil & Uranium
Mining Co.,
of
Price—At par
-working capital.
burgh, Pa.
interests,
Gas
White
certain
Co., San Francisco, Calif.
1
shares
preferred
^00 shares will be offered to
from
tal stock
Tampa Electric Co. (9/22)
Aug. 16 filed 50,000 shares of cumulative preferred
<jtock, series B (par $100). Proceeds—To repay bank
and
inventories
for working capital.
Mart, Chicago 54, 111.
Proceeds
com¬
&
Proceeds—For
.^exploration
loans
applicance
common
working capital and business expansion. Office—
"B" St.,
Philadelphia, Pa. Underwriter—Milton D.
Biauner & Co.,
Inc., New York.
Oil
July 29
United Cities Utilities Co.
New York.
For
mon
Memphis, Tenn.
Aug. 10 (letter of notification) 30,000 shares of 6% cu¬
mulative convertible preferred stock. Price—At
par ($10
per share).
Proceeds—To repay short-term note, pur¬
ing
-3219
mineral
United States and
mon
June 25
of
'<&
Plains
July 12
dise
Stardust, Inc., Reno, Nev.
July 9 filed 621,882 shares of preferred stock (par $10)
iiiad 621,882 shares of common stock
(par one cent) to be
tional
None.
both of
Star Uranium
,
exploration and development expenses. Of¬
Symes Bldg., Denver, Cblo.
Underwriter—
fice—718
.-•jelling stockholders.
Underwriters—A. C. Allyn & Co.,
Dempsey & Co., both of Chicago, 111.
Western
Call-Smoot
Co.; Walter Sondrup;
Associates; James E. Reed & Co.; Amos C. SudCo.; Selected Securities, Ltd., and Stradford L.
stock
and
Co.;
Peabody & Co.; Blair & Co., Inc.
Atlantic
Standard Coil Produces Co., Inc. (9/9-10)
Aug. 17 filed 189,655 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds—To
Inc.
&
Halsey,
Kidder,
offered
count.
to
stockholders
on
shares held.
the
basis
of
Price—$100
one
per
new
share.
share
Pro¬
expansion and to increase capital stock
ac-n
Volume
Number 5356
180
.
.
.
The Commercial and Financial Chronicle
(901)
Green River Steel Corp.
9 it was reported company
Majestic Auto Club, Inc.
June
planning to
issue
Aug. 25 it
^nd sell $2,000,000 of 15-year first mortgage convertible
bonds.
Underwriter—Equitable Securities Corp., Nash¬
000 shares
is
ville, Tenn.
+ Guild Films Co., Inc., New York
Aug. 30 it was reported corporation is understood to be
planning
early
registration
of about 250,000 shares of
Business—Manufactures films for tele¬
stock.
common
vision.
Underwriter—Van
Alstyne
Noel
&
Co.,
New
York.
Aug.
Bishop, Inc., New York
it was reported registration
30
shares of
selling stockholders).
of
about
250,000
Business—Cosmetics.
Underwriter—Hayden, Stone & Co., New York.
vote Oct. 7
stockholders
will
on
stock
(par
Illinois Central RR.
Aug. 20 it
(9/9)
announced
company plans sale of $60,000,000 first mortgage bonds, series H, due 1989. Pro¬
was
ceeds—For redemption of 3"%% series E bonds. Under¬
writer
To
be determined
by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.;
White, Weld
—
Co.
and
Drexel
Kuhn, Loeb
Union
ceived
&
Securities
to 11
up
&
Co.
(jointly);
(EDT)
a.m.
Sept. 9 at office of Davis,
Kiendl, 15 Broad St.,
on
Wardwell, Sunderland
New York 5, N. Y.
Indiana &
July 8 it
Morgan Stanley &
Co., Harriman Ripley & Co. Inc.
Corp. (jointly). Bids—To be re¬
Polk,
&
.was announced company plans this week to
registration statement with the SEC covering 475,-
a
the
basis
reported company plans to issue and sell
$15,000,000 first mortgage bonds, series F. Underwrite!
—To be determined by competitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc.; Harriman Ripley &
was
Co.
of
loans
bank
Bids
Expected to be
—
re¬
November.
shares held
22.
New York and San Francisco.
Laclede Gas Co.
reported company plans to issue and sell
and
be
loans
mortgage
for
determined
new
bonds/
Proceeds—To
construction.
repay
Underwriter—To
by
competitive bidding.
Probable bid¬
ders: Halsey, Stuart & Co. Inc.; The First Boston Corp.;
Stone
Blair
Webster
&
Securities
Corp.;
&
Co., Inc. and Drexel
Expected in October.
Lehman
Brothers;
(jointly).
Bids—
Co.
&
April 20 it
Sept.
Underwriter
30.
issue
to
$20,000,000
mortgage
bonds.
Proceeds
—
Tc
finance construction program.
Underwriter—To be de¬
termined
by competitive bidding.
Probable bidders:
shares
held
System companies
Underwriter—None.
rights to expire
be
The
—
mailed
First
on
Boston
Oct.
on
about
or
Corp.
will
National Fuel Gas Co.
June
25,
L.
A.
Brown,
plans
company
PreHdont,
offer
to
to
a
None.
—
Registration—Ex¬
pected in October, 1954.
New York
(10/19)
Aug. 25 directors authorized issue and sale of
$75,000,000
of 35-year refunding
mortgage bonds. Proceeds
To
—
refund
$35,000,000
bank,
of 3%% series G bonds and repay
Underwriter—To be determined by com¬
loans.
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Kuhn, Loeb & Co.; Morgan Stanley & Co.; Merrill
Lynch, Pierce, Fenner & Beane and Glore, Forgan &
Co. (jointly). Bids—Expected to be
received on Oct. 19
•
Northern Pacific Ry. (9/23)
26, Robert S. MacFarlane,
plans
company
bonds
due
to
Oct.
sell
1,
$52,000,000
of
announced
collateral
trust
1984.
Proceeds—For refunding. Un¬
derwriter
To be determined by
competitive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Morgan
Stanley & Co.; Blyth & Co., Inc. Bids—Expected to be
redeem
$12,000,000
construction.
4%
bonds
Underwriter
—
To
due
be
1983,
and for
determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; White, Weld & Co. and Shields & Co.
(jointly);
Salomon
Bros.
Brothers
and
&
A.
Hutzler; Kuhn, Loeb & Co., Lehman
Allyn & Co. Inc. (jointly); Merrill
C.
Lynch, Pierce, Fenner & Beane and Kidder, Peabody &
Co. (jointly); Union Securities Corp. and Wertheim &
Co. (jointly); Blyth & Co., Inc.; W. C. Langley & Co.,
The
First
Boston
Corp. and Glore
(jointly); Harriman Ripley & Co. Inc.
Oct. 20.
&
Co.
Bids—Expected
Registration—Scheduled for Sept. 19.
Louisville & Nashville
July 7 it
RR.
(9/30)
reported that the company may issue and
1954 $30,350,000 of new first and refunding
was
sell late in
mortgage
610,000
Forgan
bonds
due
2003.
Atlanta,
Proceeds—To
retire
$24,Division 4%
Knoxville & Cincinnati
1, 1955, and for general corporate pur¬
poses. Underwriters—May be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Morgan Stanley & Co.; White. Weld & Co. and Salomon
Bros. & Hutzler (jointly). Bids—Expected Sept. 30.
bonds
due May
the
presently
on
a
two-
i
Ritter Finance Co.
Aug.
17
stockholders
were
to vote
on
a
proposal to*
authorized preferred stock (par
$50) fromi.
14,000 shares to 50,000 shares, and the authorized class
B common
(par $1) from 950,000 shares to
2,000,00ft
the
shares.
Underwriter
—
Stroud
&
Co.,
Inc.,
Philadel¬
phia, Pa.
Rochester
May 17 it
year
—
&
Electric Corp.
reported company may issue and sell tbisc
additional bonds and preferred stock. Pi®-
For
bonds to
Gas
was
some
ceeds
construction.
new
Underwriters—(1) For
be determined
by competitive bidding. Prob¬
Halsey, Stuart & Co. Inc.; Kidder, Pea¬
body & Co. and White, Weld & Co.
(jointly); Salomon
Bros. & Hutzler; Shields &
Co.; Blyth & Co., Inc.; The
First Boston
Corp.; Union Securities Corp. and Equit¬
able Securities Corp.
(jointly). (2) For preferred stockt
The First Boston Corp.
able
bidders:
Savage Industries, inc., Phoenix, Ariz.
Aug. 9 it was announced company plans later this
to
issue
lative
received
Sept. 23.
on
Pacific
Aug.
National
was
16
shares
two
Bank, San Francisco, Calif.
$340,000 to
right to subscribe on or
additional shares of common
Price—$28.50
one
share for
new
per
share.
each
Proceeds—
retire
outstanding preferred stock and the
to capital and surplus.
Under¬
writer—Elworthy & Co., San Francisco, Calif., and asso¬
remainder
to
be
added
ciates.
Company for Banking and Trusts,
Philadelphia, Pa.
Aug. 24 it was announced stockholders will be offered
the right to subscribe to
100,000 shares of common stock
(par $10)
shares
the
on
held.
increase
basis
Price—To
surplus
Drexel
&
Pierce,
Fenner
and
of
be
new
capital
share
new
named
later.
for
each
14
Proceeds—To
accounts.
Underwriters—
Philadelphia,
Pa.;
Merrill
&
Smith
Co.,
Beane
and
and
Barney
&
Lynch,
Co., of
York.
New
Progas of Canada., Inc.
13 it was announced company plans
capital stock
share
tion
to issue and
additional 1,200,000 shares of
the basis of slightly less than one new
to its stockholders
for
on
an
each four shares
held
(with
an
oversubscrip¬
privilege).
—
Co., New York, have agreed to purchase, in
proportions of two-thirds and one-third respectively,
any of the unsubscribed shares.
,
Service Co.
of Colorado
Aug. 1 it
was announced company
000 first
mortgage bonds, due 1984.
bank
To
loans
be
and
for
new
(10/4)
plans to issue $20,000,Proceeds—To repay
Underwriters—
construction.
determined
by competitive bidding.
Probable
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co.;
Boston Corp.; Dean Witter &
Co.; Harri¬
man
Ripley & Co., Inc. and Union Securities Corp.
(jointly); Lehman Brothers; Kidder, Peabody & Co.;
Blyth & Co., Inc. and Smith, Barney & Co. (jointly).
First
Registration—Expected
of
75-cent
year
cumu-t
(10/26)
plans to sell
•
.
$5,00$->
mortgage bonds, $3,000,000 of debentures andi
shares of $100 preferred stock.
Underwriters.—
be determined by competitive bidding. Probable*
May
Halsey, Stuart & Co. Inc. (for bonds only);.
First Boston
Corp.; Stone & Webster Securities*
Corp.; Blair & Co., Inc. Registration—Planned for Sept
22.
Bids—Expected Oct. 26.
Sierra Pacific Power Co.
(10/6)
was reported
company plans to offer to com¬
stockholders of record about Oct. 6 a total of
34,807
Aug. 16 it
mon
shares of
common
stock; rights to expire Oct. 22. Pro¬
repay bank loans and for new construction.
Underwriters—Stone & Webster Securities Corp. and
ceeds—To
•
Sierra Pacific Power Co.
Aug.
sell
it
16
was
in
to be received up to noon
September.
(EST)
on
Bids—Expected
Oct. 4.
if Public Service Co. of Oklahoma
Aug. 28 it was reported that company
may
issue
and
reported
(10/25)
plans to issue and
Proceeds—For con¬
Underwriters—To be determined bybidding. Probable bidders: Halsey, Stuart
company
$4,000,000 first mortgage bonds.
struction program.
competitive
& Co.
Inc.; Stone & Webster Securities Corp. and Dean
& Co.
(jointly); Kidder, Peabody & Co. Regis¬
—-
Planned for
Oct.
8.
Bids
—
Expected about
Oct. 25.
•
South Georgia Natural Gas Co.
Aug.
5 company was authorized to construct a 368.3mile gas transmission
system to serve new market areas,
in Georgia and
Florida, estimated to cost $8,969,429.
This expansion will be financed
though
mortgage
bonds and junior
Shields & Co., New York.
securities.
sale !of
first
Underwriter—
,
,,
Southern Pacific RR. Co.
July 28 it
announced
was
company has applied to the
issue $21,091,000 of first mort¬
1, 1996. Proceeds—To reimburse
treasury for capital expenditures previously made. There
will be no private or
public offering, the bonds to b&.l
ICC
for
authority
bonds due
gage
retained
in
to
Jan.
company's treasury.
Spencer Chemical Co.
Aug. 23, Kenneth A. Spencer, President, announced
company plans to issue and sell 150,000 shares of a new
preferred stock (par $100).
Price—To be named later;
Proceeds—To redeem 76,865
preferred
stock
at
$102.50
outstanding shares of 4.60%
and
accrued dividends, and
general corporate purposes.
Underwriters—Morgan
Stanley & Co. and Goldman, Sachs & Co.
Meeting—
for
Stockholders
of
shares
on
new
Sept. 24 will vote
preferred stock.
on
authorizing 250,000
if Standard State Bank, Chicago, III.
Aug. 26, Bartholomew O'Toole, President,
announced
that this bank plans to offer to its stockholders
tional 23,000 shares of capital stock
(par $10).
$17
bidders:
The
block
stock
announced company
was
—
Public
additional
preferred
30,000
•
Pennsylvan:a
an
000 of first
tration
rec¬
the
the basis of
on
held.
stockholders of
common
given
Sept. 9 for 47,685
(par $20)
sell
Savannah Electric & Power Co.
Aug. 10 it
Witter
announced
were
and
convertible
(par $1), expected!
to gross around
$250,000. Proceeds—For expansion audit;
acquisitions. Underwriter—Probably Pacific Coast Se¬
curities Co., San
Francisco, Calif.
—
Burnham &
new
of
being split-up
are
for-one basis.
•
offering of!
stockholders..
Dean Witter & Co. \
President,
Halsey, Stuart & Co. Inc.; W. C. Langley & Co.; Blytb
—To
outstanding shares, which
its
The
& Co., Inc. and The First Boston Corp. (jointly); Smith
if Louisiana Power & Light Co. (10/20)
Aug. 20 it was reported company plans to issue and sell
$17,000,000 of first mortgage bonds due 1984. Proceeds
capital stock (par $4) to
Chemical Corp. owns 50%
Mathieson
bidders:
Telephone Co.
Price—At par (2,5 cents per share). Pro¬
ceeds
For capital improvements and
working capital.
Underwriters
Consolidated Coppermines Corp. and
Barney & Co.
if Reaction Motors, Inc., Rockaway, N. J.
Aug. 7 it was reported company plans a small
additional
the
stock
common
l-for-10 basis (with
Proceeds—For construc¬
on
oversubscription privilege).
Underwriter
that
announced
additional
stockholders this Fall
tion program.
sell
announced company plans later in 1954
was
15
investment in
of Sept. 24; with
as
July
Long Island Lighting Co.
each
head group.
stock
bank
for
and
Subscription warrants will
before
Kimberly-Clark Corp.
July 21 it was announced stockholders will vote Aug. 17
on increasing the authorized common stock from
6,000,000 shares (no par value) to 12,000,000 shares (par
$5),
two new shares to be issued in exchange for each no par
share now held, and to provide additional capital shares
for future financing.
Underwriter—Blyth & Co., Inc.,
first
for
(par $20) to stockholders early this fall for sub¬
scription on the basis of one new share for each three
<
was
share
new
Control—A majority of the
outstanding stocks is
by Morris Plan Corp. of America.
stock
Aug. 18 it
$20,000,000
one
National City Bank of New York (9/30)
Aug. 10 directors authorized a meeting of stockholders to
be held on Sept. 20 to vote on a proposal to increase the
capital and surplus of the company by $131,250,000
through the sale of 2,500,000 additional shares of capital
ord
Aug. 6 it
of
and for other corporate purposes.
Equitable Securities Corp.
or
(par $10) to be offered for
stockholders of record Sept. 22
common
(with an oversubscription privilege). Price—To be sup¬
plied by amendment.
Proceeds—To retire $12,000,000
Inc.; The First Boston Corp. and Lehman Brothers
(jointly); Union Securities Corp. and Merrill Lynch,
Pierce, Fenner & Beane (jointly); Blyth & Co., Inc.;
Kidder, Peabody & Co. and White, Weld & Co. (jointly);
ceived in October
stock
common
owned
increase
(9/22)
Aug
Kentucky Utilities Co.
;
Alstyne, Noel & Co., New York.
000 shares of
preferred stock
(par $100).
Underwriter—
To be determined by competitive
bidding. Probable bid¬
ders: (1) For bonds—Halsey, Stuart & Co.
Inc.; Union
Securities Corp., Goldman, Sachs & Co. and
White, Weld
&
Co.
(jointly); The First Boston Corp.; Harriman
Ripley & Co. Inc.; Kuhn, Loeb & Co.; (2) for preferred—
The First Boston Corp.; Smith,
Barney & Co.; Lehman
Brothers;
Union
Securities
Corp.
Registration —
Planned for Sept. 3.
Bids—Tetnatively expected to be
received up to 11 a.m. (EST) on Oct. 5.
June 21 it
file
an
(10/5)
announced company plans to sell $16,500,000 first mortgage bonds due 1984 and 40,000 shares of
was
cumulative
Co.
Aug. 30 it
common
Michigan Electric Co.
Sulphur
reported company plans issue and sale of
subscription by
increasing the authorized amount of pre¬
$100) from 312,000 shares to 592,000
shares. Underwriters—Lee, Higginson Corp. and
Kidder,
Peabody & Co., both of New York; and William Blair &
Co., of Chicago and associates.
ferred
Co.;
Gulf
was
200,000 additional shares of common stock. Proceeds—
For capital expenditures and working capital.
Under¬
on
it Household Finance Corp.
Aug. 27 it was announced preferred
and
if Mexican
Aug. 30 it
^Middle South Utilities, Inc.
stock is expected (part for new money
common
and part for
&
public shortly after completion of the current offering
of 100,000 shares to service station owners and
operators.
Office—Room 717, 141 Broadway, New York
6, N. Y.
writer—Van
it Hazel
plus.
announced company plans to offer 500,(par five cents) to the motorist and general
was
33
per
plus.
share.
Proceeds—To
Control—A
majority of
stock is owned by Morris Plan
increase
the
an
addi¬
Price—
capital and
present
sur¬
outstanding
Corp. of America.
if State Bank of Blue Island (III.)
Aug. 26, Bartholomew O'Toole, President,
announced
that this bank plans to issue and sell to its stockholders
additional 1,200 shares of capital stock (par $50).
an
Price—$90 per share. Proceeds—To increase capital and
surplus. Control—A majority of the outstanding stock
is owned by Morris Plan
Corp. of America.
if Texas Power & Light Co. (10/18)
Aug. 20 it was reported company plans to issue and sell
$20,000,000 of first mortgage bonds due 1984. Proceeds
—To
refund
$5,000,000 37/s%
bonds
due
1983.
Under¬
sell 75,000 shares of new
preferred stock (par $100).
Underwriter—To be determined by competitive bidding.
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Union Securities
Probable
Corp. and Salomon Bros. & Hutzler
bidders:
Harriman
Ripley & Co. Inc. and
Inc. (jointly); Smith, Barney &
Co.; Kuhn, Loeb & Co.; Glore, Forgan & Co.
Central
Republic
Co.
if Pullman Trust & Savings Bank, Chicago, III.
Aug. 26, Bartholomew O'Toole, President announced that
the bank plans to issue and sell to its stockholders
12,500 shares of additional capital stock
(par $20), Price—
$50 per share. Proceeds—To increase capital and sur¬
(jointly); Blyth &
Co., Inc., Kidder, Peabody &;!Co. and Merrill Lynch,
Pierce, Fenner & Beane (jointly); White, Weld & Co.;
Kuhn, Loeb & Co.; Equitable Securities Corp. Registra¬
tion—Planned for Sept. .23.
Bids—Expected to be re¬
ceived up
to 11:30 a.m. (EST) on Oct. 18 at Room 2033,
Street, New York 6, N. Y.
Two Rectdr
.i
,
Continued,
on
page
34
34
The Commercial and Financial Chronicle
(902)
Continued
from
Co.
33
page
Transcontinental Gas Pipe Line Corp.
March 16 it
to
do
•
for
pay
a
$100 of
White, Weld & Co. and
Corp., both of New York.
tures and one-sixth of
UnderwritersWebster Securitiei
&
Stone
share
new
of
preferred
share of
a
held.
stock
shares
Virginia Electric & Power Co.
Aug. 20 directors approved in principle a plan to sell
600,000 additional shares of common stock this Fall.
They will be offered to
of
share
new
one
which
date,
Proceeds
writer
is
To
finance
be
construction
determined
Probable
bidders:
Merrill
Lynch, Pierce,
Beane; Stone & Webster Securities Corp.
•
Western
Maryland Ry.
bidding.
Continued
from first
and sell
sue
$6,500,000 of these bonds.
Proceeds—To
&
^mclude
Halsey,
Stuart
Stearns
&
Co.
28
it
announced
plans
company
Proceeds—To retire bank loans.
er—Previous bond financing in 1922 was
all
surveys,
surface
and appraisals, and
extensive drilling.
such a program
A participant
directed by
ln
geologists
,uranium
the
of
first
rank—has put himself in the position to be lucky.
Uranium
found
in
is
deposits
ore
combined
with other
form minerals.
of
metal
a
uranium
always
The main
in
bodies
or
elements
this
to
at-
•
x
x
In
~.
gram, to state his belief that pres-
ent developments
beginning
and
merely the
"consistent
are
that,
with the past history of all other
major metals
and
oil,
many more
dep°sits,
J,^f,
s°me yery
rea y
?!^°^re,d' wiU beJound' barge
conventional
Underwrit¬
handled
explo-
i
i
^
,
r»
A
x.
addition, the potential
use
°b
stock
by
,
of
energy for power and in
all forms of
transportation promises a continual increase in the
demand with
increase in
tary
price.
demand
uncertain
become
possible attendant
a
in
The non-mili-
for uranium, now
extent, will possibly
increasingly
particularly with
significant,
the
passage
the^new Atomic Energy Act.
Two other factors should
presently^ produc-
(j) A
by competitive bidding.
Merrill
& Hutz¬
stockpile
of
of
be
uranium
offer
was
underwritten
is
by
The
This is true
even
though
large
mits
an
jng services for private industry.
Also,
the government's drilling
mill
concentrate.
tion
of
program has been limited primar-
the real
ily
ness.
a
to
wide-spaced explorationdrilling
which
represents
the initial-start of the de-
type
only
velopment of new deposits and
new uranium districts.
(Explora-
tion-type drilling is followed by
development drilling and blocking
out of ore reserves.)
Therefore,
the ore discoveries credited
to
government
drilling
represent
only a small portion of the event¬
ual
First
Boston
Corp.; Merrill Lynch, Pierce, Fenner &
Beane; Robert
W. Baird & Co.,
Inc.; and William Blair & Co.
part of the government's expenditure bas been directed to support-
atomic
aFe bodies should be considered:
^
at
TMw
determined
Corp. (jointly); White, Weld &
Peabody & Co.; Kuhn, Loeb & Co.; Dean
Witter & Co.; The First Boston
Corp. Previous common
permanent
Non-Mihtary Demand Potential
D. Nimnger, Assistant Director of
the A. £. C. ^.Exploration Pro-
sources
country
•
a
xr
be
bidders:
Halsey, Stuart & Co. Inc.;
Lynch, Pierce, Fenner & Beane, Salomon Bros.
Dillon, Read & Co. Inc.
placing
n
For bonds, to
ler and Union Securities
Co J. Kidder,
finnacing.
&
Co.
about
Probable
(jointly).
was
Service
reported company is considering the is¬
$12,500,000 new securities. Proceeds—
$8,000,000 outstanding first mortgage 4J/8%
J, jboii^s-due 1983 and for new construction. Underwriters
Wheeling Electric Co.
June
Public
was
of
suance
Blyth & Co., Inc. (jointly); Lehman Brothers and Bear,
page
arenal
examinations
July 28 it
Stuart & Co. Inc.; Union Securities Corp. and Glore.
Forgan & Co. (jointly); Kidder, Peabody & Co. and
bidders:
.,
Wisconsin
re¬
sey,
Uranium Stocks and the Investor
,
about Sept. 9.
termined by competitive bidding. Probable bidders: Hal¬
sives.
,
com¬
imburse company for capital expenditures already made
and for future improvements. Underwriters—May be de¬
(9/15)
Probable
&
sell first and refunding bonds without obtaining
approval of preferred stockholders. It is planned to is¬
July 13 it was announced company plans to issue and
sell $16,000,000 of first mortgage bonds, series C, due
Oct. 1, 1979.
Proceeds—To redeem $12,632,000 of first
mortgage bonds, series B, due 1976, and the remainder
used to reimburse company for expenditures for capital
improvements. Underwriter—To be determined by com¬
petitive
Blyth
pany to
bidding.
Fenner
by
Western Pacific RR. Co.
Under¬
program.
competitive
by
Halsey, Stuart & Co. Inc.;
Salomon Bros. & Hutzler;
Brothers, Bear, Stearns & Co., Reynolds & Co.
and L. F. Rothschild & Co.
(jointly); Union Securities
Corp.; The First Boston Corp.; White, Weld & Co. and
Kidder, Peabody & Co. (jointly): Smith, Barney & Co.
and Robert W. Baird & Co.
(jointly); Blyth & Co., Inc.
Bids—Expected about Oct. 5 with registration on or
remaining 83,211
be called for payment.
June 30 stockholders approved a proposal to allow
the fecord
on
(10/5)
Lehman
The
Co., Inc. and Union Securities Corp.
stockholders at the rate
10 shares held
Light Co.
bidding. Probable bidders:
Equitable Securities Corp.;
stock for each
of preferred stock will
exchange offer will be underwritten
The
presently expected to be in November.
To
—
—-
common
for each
common
&
1984;: Proceeds—To redeem
$8,000,000 4% first mortgage
bonds sold last year and $10,000,000 for new construc¬
tion. ■ Underwriter—To be determined
by competitive
of
mated to cost about $11,000,000 for 1954.
Power
Thursday, September 2, 1954
.
.
July 26 it was announced management is planning issueanee/and sale of $18,000,000 first mortgage bonds due
a proposal whereby holders
outstanding preferred stock will
voluntary exchange for units consisting of
5% 30-year income (sinking fund) deben¬
shares
225,000
be offered
construction esti¬
new
Sept. 15.
Western Pacific RR. Co.
of
permanent
bank loans necessary to
Wisconsin
Bids—Expected to be
on
Aug. 31 directors approved
reported company plans later this yeai
financing to repay temporary
was
some
Inc.; Morgan Stanley & Co.
received up to 11:30 a.m. (EDT)
.
reserves
ore
which
have
increase in mining profit
by extending the depletion allow¬
ance
(now 23%) through to the
ore
This
combina¬
and
reserves
mill
Competent geologists in the
field
believe
ploration
that
and
well-run
a
development
gram, with the proper
ture of funds, can
expendi¬
probably
very
build
over
sufficient
up
two to
a
ore
reserves
four-year period to
permit the construction of
essing mill.
!; '
a
proc¬
*
-:
As
indicated
above^ the/ ap¬
proach to the business that makes
the
most
for
sense
dertaking-'of
with
anyone
-
irregular
shaoe
snape,
and
about
anoui
average
average
of uranium
(.30%)
In
ranffe
six
six
per
Mt*
of
nounds
pounds
ton of
ore
hnHtes.
om
fromTfeVUt^topVhaps^OOfr
feet by bOOO feet
through
tunnels or
inclines, with a few of
the
large
deeper deposits (the
deepest is about 800 feet) require
shallow
ing vertical shafts....
TW
Two
cicrnifi/ianf
Significant
xsvWc
Developments
In the last two years there have
been two developments of
major
significance in uranium discovery,
The first was the finding of
large
bodies
ore
Canada
of
in
a
x_
this
country
million to $200 million. These dis¬
coveries showed that uranium de¬
posits could be of sufficient size
*
and value to warrant the attention
of
the
major investment capital and
larger companies.
They also
supported the belief of the Atomic
Energy Commission and its
geo-
-.v..
logical staff that, with the proper
stimulus of profit and with sufficient
accumulated
exploration
pro-
de-
""vr",
*Jrwn ««nium ae
P°s.lts <some of
large size)
®
deposits yet to
pattern and provide the
for rich re-
same
opportunities
same
turns
have
as
a!«
ka<-♦£n
terials
the other
4/v
basic
Am*
to
our
raw
ma-
aaamamm..
for
economy
the past 100 years.
The
What will be the demand for all
of this uranium?
Present indications are that etrery
pound' of
uranium profitably mined at
prices
presbe sold for at least
can
next
nothing
decade.
now
And
the
on
thqre
horizon
Colorado Plateau
area
to
virtually
the entire western United
Outside
there
in
of
the
Colorado
have been
States,
Plateau,
significant finds
in Wyoming, Arizona, New Mexico, California and
many
the
areas
Dakotas.
discovered
Uranium
in
geological
is
being
forma-
tions untapped five years
ago. The
A. E. C. has revealed
that, since
1949, the total tons of uranium
delivered
to
government
doubled
in
ore
18
every
stations
months.
For
thind
nno
has established
which
ore
feet
alone, nearly 2.7 million
exploratory and developdrilling was performed un-
of
der government and private
sorshin
S°rSh,P".
.
sponI
.
Geological indications have been
favorable enough to cause Robert
supply and
picture, two further quesr1
.n
.
March
An
adequate
exploration
and
and
after
a
30
.
sum
.
of
This is because extensive
reconnaissance over wide areas
money.
-
be
conducte(i
by competent
geologists,
examination
tion and development.
Most
prop-
gradeo/ore (30% UOOflf erties toda^at
on the Colothe^ Colorado Plateau rado bateau- require extensive
at the present time ^21
ton
exPloratory drilling (generally at
aH^iti
f 1^' 200 to 300 foot spacings) because
Wj™ the addition of grade prem- virtually all of the large surface
on
Der
with
thp
™
nf
ancef»
^^agt^wa„Ces
pavl
nauiage allowances* .pay
!?
Payments (f ■^ guaranteed
^a^mg^n^n^t,Vin
pncG
about $30 per ton.
A
New
Source
deposits have been taken
once
n
Qre
bod
of
Demand
body and
tonnage.
With
uranium
for
will
be
required
reactors is
these
plants and
not known, but it has been publicly stated that operations of this
nature
require
A_
pensive
Those
billion
dollars
idle
because
uranium fue* costing
of
j
....»....
per-
haps $100 million.
It
now seems
i
i
■»
*
1 •
orobable that there
proposition.
with
a
for
nor^nfitv
uranium,
r>s
o
since
ap-
xmriofxr
nf
back¬
contain somewhere between 2 and
5 million tons of bre—gross value
o£ $6° to $15° n^lion )
I
!°re
Minijl& of the
ore,
it
once
has been found, ifc generally quite
profitable. As agfcinst the average
price per ton of $30, mining engineers figure the average mining
cost Per i°n
$10 1° $15. With
inw
w/vn
/%-c
MAirnH-i
rf a
oa
aa'
1
am
nv*
J
r*r\
royalties; land costs and
expenses
added, each
incidental
about $10 in profit
before
taxes.
cost
or
a
A very large mine
smaller mines may
$500,000
it is in full operation.
be
even
well-
not
a
less
than $300,000 to
year once
What
Actual
Return?
money?
The experience of
gram
is significant in this respect
in terms of actual discoveries directly attributed to it.
Although
average
series of
more
latter case, this
ernment bonus
on
What is the expected return for
of
$30
uranium
profitable.
which is
ore
In
isidue to the
the
gov¬
payable
the first 10,000 pounds of uran¬
ium shipped from
mining
a
prop¬
the bonus applies
erty;
since
each
separate
mining
to 10,000 pounds—a number of
separate small properties may be
valuable, price-wise
ore discovered directly by the
government's program on the Colconsiderable
amount
the
a
total
....
than
a
„
Also, after thq discovery of suf-
ficient
may
ore
reserves
a
be granted A. E. C.
company
permis-
sion to build a processing mill,
which permits a substantial profit
on
favor
in-
business
such
the'
a
pro-,
program.
uranium
mining
generally agree that they
have to be lucky to find
they
*prer but
main difference be¬
say the
tween
those
who
find'
ore
con¬
sistently and those who do notzis
that those who do have put them¬
in a position to be
lucky.
selves
A
participant in such a large, longexploration ; and develop¬
range
ment
be
program
is in
lucky. '
What Investor
^
position to
a
*
-
>
,
Attitude?
What of the investor who is in¬
terested
in
the
new
ies
which
investing in
mining
uranium
market.
are
-of
some
compan¬
flooding
now
Most of the recent
the
news¬
and magazine articles have
cautioned him to beware in
; no
paper
uncertain
terms.
advice.
This
However,
should
also
geologic
which
be
and
he
is
of
awafe
certain
factors
economic
should
sound
the. investor
look
for
in
a
the mill concentrate^and
ing
the
chances
An
company.
of
to
protect himself if
stands the following:
Practically
found
been
particular
a
investor
all
can
he
the
of
help
under¬
uranium
the Colorado Plateau has
in one of three sedi¬
on
found
mentary
geologic
formations'—
Morrison, Chinle and Shinarump.
The investor should know whether
and where the company's
prop¬
erties contain these formations. If
they
are more than 800 to 1,000
deep, it probably will not be
practical to drill and mine them—
feet
if
even
they contain
commercial
uranium Ore.
The
existence
of surface
show¬
ings and outcroppings of uranium
l- iS notKpossible ,to quot.? exact single big mine of over-all equivalent tonnage.
ium
People
to
property-
up
more
development
Geologic and economic in¬
dications
and which he should
take into consideration in apprais¬
Profitable
Mining of uraittum
un¬
long-range,
prospectus
and
a
long-range exploration
development program will
run,
money expended on the program,
re-
mine, discovered by one exploration hole, is now-«timated-after
partial developnjggt drilling — to
return
point
weapons
the well publicized Steen MiVida
should
oradO" Plateau has exceeded by
be atomic
valu# after develop-
for uranium indicate that
parently weaP°na °f a ^a"ety °f
sizes are practicable, and the end
may
great
very
average
successful
Atnow seems prooaoie tnat tnere flgures because of security res*s a virtually unlimited military frictions, the gross value of urandemand
the same tigif^pi-bvidirig. the
basis for eventual discoveries of
gram.
at
ntrAViA
the government's exploration proa
profit
found diwhile
ore
ground of experience in the search
quanIt is doubt-
ful that the government will want
to leave an investment of several
reasonable
a
mining the
rectly by such a
ton
substantial
ties of uranium fuel.
ore
estimate its gross
average drilling costs at about $3
to
$3.50 a foot, the drilling of
properties can be a relatively ex-
eous
much
found
additional development
drilling at
5Q to 100 fQot spacings is necessary
!
Also, it is known that new gasdiffusion plants and reactors
will be coming into operation
during the 1954-58 period.
How
And
up-
bas b
to "Mock out" the
e*Pi0raJ10dJ tde a^fafe
per Ton Oi ore is sciusny
provide
sustain itself
can
and aPPraisal o£ Properties must ment drilling iff' the * favorable
be performed, and properties must areas discovered by the initial exbe acquired for detailed examina- ploration drilling. (For example,
a vera Be
mfned
drilling program
substantial
the
that
a
large, well-run
of exploration-type drill¬
ing can, over a period of time,
regularly return $100 to $150 gross
program for uranium
minimumSsat
nrSS
indicate
program
(1) What are
the
costs, and.
vaiue jn uranium ore for every
chances of finding uranium?
v.
$30 of direct dril]ing costs
This
(2) Is it profitable?
means
that ' an Exploration-type
uranium
through
,
private sources
experience r in
exploration and mining
substantial,
uranium
requires
thn
10B2
.
and
government
with
development
1953
ment
hut
is
guaranteed hT tmrcha?p
it
uranium
has
And
anvthine
tions should be considered:
must
processing mills and
buying
.
vesUgaited
byreceived
thfe government,
•
Estimates
from
both
to
indicate that the demand for uranium will be sharply curtailed after
second
development has
been the spreading of extensive
exploration activity from the
ff
as
at
a"°™ tdd° a"ytmn8 *>ut_ hnv
buy ®«
pound .of
demand
experience, uranium would follow
the
affairs-and
be
discovered."
the
world
wor/.d affairs—and as long
long as
as it
it
continues—the government cannot
presently" un"econom7cai reasonable prices every
new types of low-grade,
P»d«ced.
With this
favorable
tonnage
which
and
$50
value of
gross
to
dUction from known uranium
d^osUs large
■£
Most
mined
are
grade sour<^es should lead
large,
a
exploration and
"
ex¬
pro¬
substantial risk-capital is the
erally
is
"gravy train" in this busi¬
per¬
as
well
as
airborne anomalies (the
existence of radioactivity
discov¬
by aerial radiometric sur¬
veys) should be carefully noted by
the investor.
They make the area
ered
more
favorable than it would oth¬
erwise
that
be, but they do not mean
commercial
surely
be
found.
should insist
by a
on
a
ore
bodies
The
will
investor
report prepared
competent geologist experi-
Volume
180
Number
-
The Commercial and Financial Chronicle
5356
(903)
enced in uranium and should note
that
his appraisal of these favorable
indications and his conclusions as
not
the
company's
officials
are
only responsible businessmen
but that at least
some
experienced
uranium.
of them
are
*
to the
geology of the
and
area
any
; work that has been done in terms
of
drilling and assaying
pies.
'
Ample
,
An
ore
sam-
Capital Required
adequate
exploration
pro¬
sum
of
ence
of
uranium
may
ore
on
the
with
,up
the
sufficient
stock
end
company will
new
a
capital
after
offering to be able to
i undertake such
program. If suf-
a
ficient capital is not available, the
.investor either will not be given
..
a "fair run for his money" or will
find his equity materially dimin-
;
,
.
,
ished
by
more
capital.
The
-
additional offerings for
DIVIDEND
sure
that
have
are
either privately owned
make
that
sure
the
to the company's
uing
the
vestor
body
ore
in
the
should
ium
over
The in¬
If
only 15 have ore reserves
100,000 tons—or one in 36.
less
come
title to its properties was rendered
tions
by
He should also examine the cap¬
italization of the company and de¬
factors
the
termine
shares
reputable attorney and does
a
not
In
look
this
the
to
extensive
this is
area,
investor
difficult
the
do
can
enough
litigation.
probably all
because
for
attorney
an
virtually impossible for
title"
New
to
is
to check titles—it is
scene
sitting in
it
York;
someone
"clear
and
uranium
property is a
luxury enjoyed by very few com¬
panies.
(Incidentally, the oil and
lease
gas
"cloud"
has
now
been
largely removed by the multiple
legislation recently passed
purpose
NOTICES
the
he
make
payable
DIVIDEND
nice if the
uranium
discovered
profit.
a
of
before
his investment and
recover
can
Consideration
amount
which must be
the
If
royalties
not greatly in
are
excess
of the usual 10% to 15% and if the
ore
is not too inaccessible,
body
the investor may generally figure
will
of
dollars
be¬
course,
to
all
generally
the
in¬
these
of
in
discourage
from purchasing
majority of the new
But it 'will also en¬
a
companies.
able
him
to
pick out the
three
or
one
ium
in
will
ore
return
profit before taxes.
fore
—
an
ore
DIVIDEND
I.
about
200th
Notice
This
body
of ap-
the return may
DIVIDEND
Common
Stock
A
quarterly dividend of 1J4%
share)
a
has
Preferred
-
been
Stock
declared
of
WM.
"The
the
close
of
business
Harry
L.
(5)
^
Bpard
Arundel
on
cents
September 10,
of
share
the
on
to
the
on
no
as
Preferred Dividend No.
-
i
,
Dividend
Common
of
Dividends
dollar
one
No.
of
a
quarterly
NO.
The Board of Directors has authorized
the
payment of a dividend of thirty-seven and
five
seventy
stockholders
of
books
at
September
15,
record
the
on
of
close
of
G.
New
NORRIS,
PICTURES
York,'September 1,1954
The Board of Directors has this
Eighty. (80) Cents
the
Capital
per
Stock
.share
of this
THEATRES
•
1
of record
at
Stock of the Company,
be
ord at the close of business
1954.
share
a
following dividends
have
been
declared
1
Treasurer
&
THE WEATHERHEAD COMPANY
300
E.
131st
St.
Cleveland
•
Ohio
8,
\xest Penn
METALS
Electric
•
COMPANY
'
COMMON DIVIDEND
dividend
(25i)
twenty-five cents
share on the outstanding
a
stock
The
declared
to hold¬
60^
books
Checks
of
the
ALLYN
will
will
be
Manhattan
not
be
mailed
by
Company.
DILLARD, Secretary
Payable September 30, 1954
Record Date Sept. 10, 1954
Declared September 1, 1954
Dated, August 31, 1954
WEST PENN
\
quarterly dividend of
per share on the Com¬
$0.15
The Potomac Edison Company
Stock, payable October
1954 to stockholders of
ness on
West Penn Power
Company
September 15, 1954.
Transfer books will not be
1954.
SYSTEM
ELECTRIC
Monongahela Power Company
mon
15,
PER SHARE
1954.
transfer
Bank
September 15, 1954.
the
COMMON STOCK.
of record at the close of business
closed.
rec-
ord at the close, of business
been
1954,
has
Stock, payable October 1,
ers
on
.
of
September 21,
1,
—————
Quarterly Dividend
Richmond 19, Virginia
$4.25 Cumulative Preferred
on
Company
(Incorporated)
—————
Reynolds Metals Building
payable October 1,
holders
H. T.
on
rec¬
September 14,
on
REYNOLDS
.
A
record at the close of busi¬
September
1954.
1,
WRIGHT
H.
Vice President
Vice Pres. & Treasurer
i
A regular quarterly dividend
of $1.0625 per share on the
A
1954 to share
of record at the close
business
October
on
MORRIS
,»-L.
by the
September 30,
of
business
of
the
at
stock
such
CHARLES C. M0SK0WITZ
STUART K. BARNES, Secrclary
Common Stock
a
50^
close
of
Checks will be mailed.
E
The
QUARTERLY
paid concurrently
payable
•September 30, 1954, to stockholders of
NOTICE
1954 to stockholders of
will
MGM RECORDS
of
payable October 15* 1954,
holders
share
common
„
CASH
•
the
to
quarterly dividend of 25c per
on
the'outstanding Common
A
the close of business
Board of Directors:
EXTRA
the Company,
of
the
September 15, 1951.
Dry^ i
on
of
Dividend
a
THE TT T
[CANADMVm
4:trd Dividend
An
1954,
12,
"
.
METALS, INC.
and
Company,
Weatherhead
the
September 30, 1954, payable,on
Preferred Stock
DIVIDEND
of Direc¬
meeting of the Board
a
October 15,1954, to stockholders
MACHINE AND
share
the
September 1, 1954
The Board of Directors has declared
Company for the quarter ending
the
AMERICAN
25rp
at
September
on
loew's incorporated
1954.
and
am
of
record
$1.25 per share was declared upon
*5.00 Cumulative Preferred Stock
of
DIVIDEND
DIVIDEND
closed.
Checks
will
be
Dividend Notice
mailed.
McMeekin, Treasurer
Wm.
J. Williams
Vice-President & Secretary
w.
A
quarterly dividend of %1V2$ per
share
has
been
declared
Common Stock of the
on
SOUTHERN STATES
the
Corporation
Iron
Roofing Company
SAVANNAH. GEORGIA
TISHMAN REALTY &
CONSTRUCTION CO.inc
payable September 10,1954 to share
owners
A
C. I.T.
FINANCIAL
CORPORATION
DIVIDEND NO. 128
quarterly dividend of $0.50
per
ness
declared
on
the
Dividend
on
Preferred Stock
A
Common
Charles P Hart
Stock of C. I. T. Financial
Corporation, payable Octo¬
DIVIDEND NOTICE '
of record at the close of busi¬
August 13, 1954.
share in cash has been
Secretary & Treasurer
quarterly dividend
of thirty-one and onequarter cents (31.25c) per
share
on
the
ber 1, 1954, to stockholders
Stock
of
this
of record at the close of busi¬
has
ness
September 10,1954. The
transfer books will not close.
Checks will be mailed.
1
http://fraser.stlouisfed.org/ I
Federal Reserve Bank of St. Louis
.
(i V
Broadway, New York 4, N. Y.
of New York
REGULAR
Broadway, New York 4, N. Y.
EARLE MORAN
Guaranty Trust Company
CASH
CHAS. F. BRADLEY,
Secretary
One
the
,
A
Sept. 3, 1954, who on
regularly issued Common
Company.
Stock ($1.00 par), of this
of
;
Secretary
August 24, 1954
that date hold
divi¬
August
MGM
CARL A. SUNDBERG
-
-
($.37V2) Per share payable
1954, to holders of Common
record
tors
1954, to holders
the close of business on September
.
of
At
Transfer.books will not be closed.
10, 1954.
17,
held
declared, payable October 1,
*. of record at
a
Sept.
Stock
divi¬
Company have been
this
of
Stock
one-half cents
of
its capital stock of
on
*
Common
Directors
the par value of $50 per
share,
payable September 29, 1954, to
C.
cents
per share on the Preferred Stock
of twenty five cents (25(1) per share on
C$1.75)
of
Seventy-five Cents ($.75)
share
25
on
;
dend of
per
day declared a quarterly dividend
,
Board
Secretary and Treasurer
Secretary.
C
States Lines
DIVIDEND
185
has today declared
pany
day
185
;
Treasurer.
outstanding,
and
INLY,,
121
GREENBURGH,
the
this
has
MARSHALL
--
G.
Company
value stock of the
par
stockholders
business
AMERICAN LOCOMOTIVE COMPANY
.
JOHN
and after October 1, 1954,
corporation's
-
1954.
AnacondA
close of business
Directors
issued
corporation,
payable
August 31,1954
.
Secretary.
^
Corporation
per
dend,
New York 8,
the close of business September
8,
Stock
(August 31, 1954) declared thirty-five
Hilyard, Treasurer
30 (larch Street
payable September 22,
1954, to stockholders of record at
7, 1954.
The
American
Checks will be mailed.
1954.
PETERS,
fifty
been
be
Anaconda Copper Mining Com¬
the
-October 1,1954, to stockholders of record,
at
B.
of
has
declared,
NOTICES
MARYLAND
($1.50
upon
Tokacco Company, payable in'cash
V
Company
dividend.
•MTINMf
"
V'
share
per
Common
DIVIDEND
Wis., August 30, 1954
A dividend of $1.75 per share upon the out¬
standing Preferred Stock of this Company has
been
declared
payable
October
1,
1954,
to
holders of record at the close of business Sep¬
tember 11, 1954.
No action was taken on the
^CORMRATIOH^
cents
dividend
means
(Incorporated)
ARUNDEL)
Preferred Dividend
(50^)
"playing the market."
$10
Racine,
Y.
quarterly
substantial indeed—or which may
afford the best opportunities for
NOTICES
Case
<nsJuea/n
New York 3, N.
July 7, 1964.
A
"good speculations"
—from which
The
J.
111 Fifth Avenue
Broadway, New York 6, N. Y.
or
August 26, 1954
INCORPORATE?
61
million dollars net be¬
a
taxes
NOTICES
Dividend
MIAMI COPPER COMPANY
is
investor
two
NOTICES
that each ton of average $30 uran¬
that—for
It is, of course, very
closely.
very
million
a
favorable
more
vestor.
such
than
needed, the odds, of
valua¬
as
DIVIDEND
mines
teau,
gross
100,000 tons is re¬
Of the roughly 550 uran¬
on
the Colorado Pla¬
quired.
val¬
rather than
check
proximately
generally
the
at
ground
have—
or are
the net value at the mill.
also
by Congress.)
investor should make
those
body.
ore
companies
new
shouid
on
that
sure
Very few
value
com¬
pany's properties is proved or dis¬
proved. The investor should make
Every
peculiar
own
commercial-grade
a
know-how, and the uranium min¬
ing industry is no exception.
He
legal opinion
require a substantial
money before the exist¬
gram
in
industry requires its
has already blocked out
company
35
C.
John Kuhn,
New
York,
New
York,
July
29,
1 954
GENERAL
DYNAMICS
CORPORATION
able
been
on
Preferred
Company
declared, pay¬
Oct.
1, 1954, to
holders of record of said
stock at the close of busi¬
ness
on
Sept. 16, 1954.
Treasurer
August 26, 1954.
445
Park
Avenue,
New York 22,
New York
Ross G. Allen
Secretary and Treasurer
The
Board
clared
(35c)
of
per
quarterly
thirty-five cents
share
Stock
mon
J,
de¬
Directors
regular
a
dividend
of
the Com¬
on
and
regular
a
quarterly dividend of twentyfive cents
the
(25c)
Preferred
corporation,
Sept.
25,
per
share
of
Stock
both
1954,
on
this
payable
to
stock¬
holders of record at the close
of
business
Sept.
15,
1954.
NORMAN TISHMAN, President
I
36
The Commercial and Financial Chronicle...
(904)
tire
program
could be upset
next year by Congress in just
disapproving one key part of
the whole disposal program.
BUSINESS BUZZ
on...
Btiihv!-the-Scene Interpretation*
from the Nation'*
.
„
view
senhower
that
won
President
but
Ei¬
there
tion
way has been
private business to
making this
preferable that the true
outlook as they see it be under¬
stood.
If the comfortable bed¬
time story is accepted
that Con¬
the way
to share
in the atomic age., then
gress genuinely cleared
for privately enterprise
day there might be a rude
awakening.
Some
On the other
So
atomic
ed,
was
of
tory
against
the
to government
Congress
the
be
1
halted,
the
ot^er
even
generating
value
such
of
facilities
fission,
it
is
electric
Depends
that
AEC
the
ies
were
the
-
power
owned
over
by
have
publicly-
power
generation
been
cooperating
under
regulation in study¬
ing commercial possibilities for
producing electric energy from
nuclear fission, it is normal to
expect that one or two groups
might first hit upon the formula
for producing electric energy at
a competitive
cost, with nuclear
enterprise under
ing features, however, that
cessful
Limited to AEC
were
desperate last-minute drive to
get for the President what could
It
be
called
an
Atomic Energy
Act legislative accomplishment,
compromises
was
that
other
atomic
AEC
public
could
bodies
electric
to
license
build
generation
plants.
company
new
a
into
per).
a
rattle!"
Effect
over
to
public
even
be handed
these firms which patents a new
bodies.
in synthetic rub¬
required to share the
patents with all other firms and
the government.
power
that
have
elements
many
the
*
money
in
private
hardihood
and
Liberalized
Methods
of
of
Compulsory Licensing
The late Rep.
this
tend
on
restriction
the
of
whenever
stud¬
engineering
ies, research effort and expense,
the vitality to go forward,
one who is brave enough to
and
that
the
trend
toward
somehow
will be
■
•
'
held
sion
Atomic
predicts
would
rule
Energy
that
this
licensing feature
because
unconstitu¬
Mr.
said
Shafer
synthetic
disposed
Supreme
is
regarded
as
a
brave
would
if
be
Synthetic Rubber
with
analyogy to "compul¬
plants
ated by rubber firms
for the
are
as
»
oper¬
agents
government, which
owns
the plants.
genuinely
raise
ber
disposal
revolu¬
of
case
of the
program,
Atomic
with
the
doubts
as
Act,
Energy
left-wing
sure
Arthur
R. Porter, Jr.—Colum¬
University Press, New York
27, N. Y., $2.50.
bia
People to People Diplomacy—De¬
partment of State Publication^
5492—Superintendent of Docu¬
ments, U. S. Government Print¬
ing Office, Washington 25, D. C.
(paper), 200.
Philosophy
for
M.
Our
Time,
A
—
Baruch—Simon
Problems in Anti-Recession
Policy
—Committee for Economic De¬
velopment, 444 Madison Ave¬
New York 22, N. Y. (pa¬
nue,
erals" like
(D.,
Stock
Buying Guide—5am Shulsky—Arco Publishing Company,
Inc.,
480
Lexington
Avenue,
New York
17, N. Y. (cloth), $2.
We have available copies of
"Lib¬
an
Analysis of
Senator Paul Doug¬
111.)
so
rubber
the
amended
disposal
pro¬
gram as to suggest that the en-
RIVERSIDE CEMENT
CLASS
B
COMMON
STOCK
recently prepared by
THE OVER-THE-COUNTER
SPECIAL SITUATIONS
jlG#
this
city
firms
will
SERVICE
^
This analysis shows why this
stock
to
make the
to
be first in the business of
pro¬
ducing electric energy
cheaply
with the atom, for their advan¬
tage will be taken
FOREIGN
lay out
effort
SECURITIES
50 BROAD STREET
TEL:
HANOVER 2-0050
offers
portunity
Carl Marks
•
A
&
copy
will be
Co. Inc.
SPECIALISTS
NEW YORK 4, N. Y.
TELETYPE NY 1-971
from
an
for
excellent op¬
capital
sent
on
gains.
request.
LERNER & CO.
Investment Securities
10 Post Office
Square, Boston 9, Mass.
Telephone
HUbbard 2-1990
away
&c
Schuster, Inc., 630 Fifth Avenue,
New York 20, N. Y.
(paper), $1..
to
as
will revert
finally to private hands.
las
Manufacturers, 2 East
Street, New York 17, N. Y„
the synthetic rub¬
industry for
synthetic
Under the rubber law, any
finally
private
serious compromises were
made
At the present time the syn¬
rubber
to
Bet-*
per).
the
such
licensing" is furnished by
thetic
plants
of
However, in the
the synthetic rubber business.
when
that
tionary.
rubber
A crude
rubber
developments in
rubber production
synthetic
Analyogy of
sory
com¬
the
owners,
traditional
Interpretations of the Constitu¬
tion
the
a
New
(paper).
■'
were
Court would uphold
Street,
(paper).
of
Bernard
these
present
Rector
Job Property Rights—A Study of
the Job Controls of the Interna-*
tional Typographical Union —
company.
tional. Any one who would pre¬
the
of
competing
every
dict
that
48th
company
with
courts
compulsory
as
tion
licensing features. No
with a brand new
product was going to patent the
same
and share the knowledge
one
Commis¬
the
back
the
on
ter America—National Associa-*
probably
was
pulsory
1
Chairman Sterling Cole of the
Joint
Paul W. Shafer
synthetic rubber plants,
told
this
correspondent more
than a year ago that the number
of
practical
developments
in
synthetic rubber which the com¬
panies operating the synthetic
plants
had
worked
out
in
laboratories,
was
little
short
of breath-taking.
These devel¬
opments, he said, all were being
expect to reap for himself
fruits
2
York 4, N. Y.
the
on
it chooses. A person so sanguine
toi
porated,
the foremost expert in Congress
compul¬
sory licensing will end in five
years.
Congress is free to ex¬
as
1954
—
is
(R., Mich.), who
skepticism that the pres¬
five-year limit
of
Industry's Goal—Building
Any firm with a rudimentary
ent
Code
Electric and Gas Utility Indus-*
tries
Ebasco Services Incor¬
development
bers
Doubt End
doubted, by substantial
business
of
Revenue
It could
them.
suc¬
not successful.
is
444 Madison Ave¬
New York 22, N. Y. (pa-*
would have to
share its knowledge under com¬
pulsory license with those who
the
made serious compromises with
the left-wing. One of the most
serious
of
these
himself
getting
tests
Under the compulsory licens¬
Public Operation Not
in
he
when
fission.
"showing
Congress,
may
close AEC
the way."
However,
the
compulsory
licensing features. Among the
several
private groups which
hand, if the
heavily "liberal"
was
mood
in
quixotic individual.
Even
time, AEC probably could
engage in rather a considerable
power
at
first
get
be hampered by the
any
jmblic
gen¬
Threatens Private Development
the White House, at
the guide that it
power
Compulsory Licensing
other
was
of
rules
now
ties.
undoubtedly
hostile to socialistic enter¬
so
believer
firm
a
Depreciation Under the Internal
neo-socialism
regulated, and tax-paying utili¬
prises, AEC (even if publicoperation minded) would prob¬
ably be stopped.
Congress
is
is
\
cooperatives
privately
new
plant, or any additional
plants. Hence, if the Adminis¬
tration and Congress of the time
and
and
crack
White House to launch any one
the
innumerable
by other public enter¬
Local public power bod¬
prises.
approval from Congress and the
On
distribution
erated
would have to get some kind of
were
the
clause" which
erence
Congress Approval
However,
J.
reversed.
energy
on
public
Furthermore, the Act contin¬
ues with respect to
public power
which
may
be produced via
nuclear fission, the same "pref¬
plant, and
build one. Of if a better method
were believed possible another
day, the AEC might build a
plant according to the later
method, and so on, many times.
an
via
Distribution Is Public
feasible to build
considered
nue,
predict
AEC could take the latest meth¬
od
of
a
to handle this business.
the
conceivable
licensing
to
existing public bodies equipped
generation of electric energy.
Thus
signal
generation from nuclear
power
in
predomi¬
a
go-ahead
large-scale
atomically-
permitted, however,
was
the
and
Policy
Stability
Economic
velopment,
"B.
some
hand,
singjie amendment to
a
Greater
—-Committee for Economic De¬
knowledge of history may have
the recent Act, a left-wing Ad¬
in
for
at least restrained
or
in growth.
without
demonstrating the practical
k
less hostile in
give
AEC
-
more or
States Sav-*
Loan
Defense Against Recession:
to
public power, then
the development of the atomic
age via governmentalism could
to build large-scale plants (note
the. plural) for the purpose of
_
net
a
and
League,
22X
North La Salle Street,
Chicago
1, 111. (cloth), $5.
r
devoted
not
monopoly, and
nantly "liberal" Congress could
distributing
ings
at present,
as
bid the AEC to engage generally
and
Jacobs, Inc., 2 West
Street, New York 36, N. Y,
(paper).
is not
or
Program,
&
45th
certain
Administration
an
produced electric energy.
.
is
in
of
ies Public Information
Bozell
exten¬
an
contains
—
Atomic Energy Law
1954, interpretative sections
pertaining to electric power in¬
dustry, etc.—Electric Compan¬
a
were,
supplement
new
of
gov¬
ministration
business
second
text of
Annals: 1953—United
the
build
such
to
there
If
On
left-wing,
Atomic Energy Information Kit-
so.
the decision of Congress to for¬
the
Bookshelf
re¬
it.
toward
superficial vic¬
a
the
project, and
what Congress would feel
upon
course,
government mo¬
cannot be foretold.
was
out of
whether
shall
devoted
Congress passed a new
law
which
contemplates that
private enterprise shall be per¬
mitted, under license of the
Atomic Energy Commission, to
use the atom not merely in the
possible generation of electric
power, but for all other imagin¬
able
purposes
or
uses
which
There
size
industry
power
Administration
the
nopoly.
even
Man's
limita¬
and
public power domain based
upon
nuclear fission, depends
not particularly upon the terms
of the
recent Atomic
Energy
Act amendments, but on whether
adopt¬
was
energy,
100%
an
Act
new
again,
ernment
were
Until the
new
sive
better understood,
Chen spokesmen for private in¬
dustry might be better mobil¬
ized to give the battle to the
feft-wing that they feel is inev¬
itable in the years to come.
Cory"
views.)
own
Business
Energy Act amend¬
them to do
cense
hand, if the lim¬
itations of the Eisenhower "vic-
*4?
the
as
practical
come
can
not coincide with
the etChronicle's"
Here
again,
however,
the
proliferation of public power is
dependent upon Congress. Prob¬
ably Bonneville, TVA, and other
present public power adminis¬
trations and authorities, would
ljiave to come to Congress to
get authority to spend money to
build such plants, even if AEC
were
ready and willing to li¬
view known,
haps
fully
and may or may
ments.
feel that it is per¬
sources
possible
|
OFFICE Of THE PRESIDENT
TVA, Bonne¬
quantity
public
which
the atomic age.
In
such
far
as
little
the
cent Atomic
fully in the development
these
is
on
the
of
skeptical that the
tif
So,
ville, etc.
Hence they are extremely
share
Cv
re¬
flect the "behind the scene" inter¬
pretation from the nation's Capital
atomic energy law is concerned,
Act.
for
of
include
they
final form of the Atomic Energy
'cleared
BABY RATTLES
m'
JL
(This column is intended to
ft Co.
public bodies is already legion,
victory in the
a
number
The
WASHINGTON, D. C.—There
knowing business sources
here who do not share the optiare
mistic
/■ yi/g
xJL m
Capital
B.J. Boople
Thursday, September 2, 1954
Teletype
BS 69
@FedFRASER