Full text of Commercial and Financial Chronicle : September 3, 1953, Vol. 178, No. 5252

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UNIVERSITY
OF MICHIGAN

SEP

ESTABLISHED 1S39

8 1953

nSHQS iimUIIMIM

The Commercial

UHin

Financial

an

j

Chronicle

Reg. U. S. Pat. Offioe

Volume 178

Number 5252

New York 7, N.

Y., Thursday, September 3, 1953

Price

40

Cents

a

Copy

EDITORIAL
t

We See It

As
A

The Present Outlook

Democratic

critic

has

as

he is right
adding, will be the real test. The President, a
military man all his life, was obliged to give most

curred

climate, which must result in
huge rearmament program and
necessitating something else to fill the business void.
Expects production to fall 10% from recent high levels;
stock prices to decline 10% more by next June; interest

getting himself nomi¬
ac¬

Having been chosen to

rates

the

badly divided.

have

Those

who were
Republicans at all—was

we

fail to be

we

the

I

to

horizons of

economics.

I

see

the

of

ground

and

shall

I

shall

ables

than

do

it

shall

I

answer.

I shall

those

of

But

prise

I

few

now

meant

it is my aim to present,
becoming humility, a
personal opinions.
If past

over

34 years of active

L.

O.

Hooper

right
organizing representatives of all elements in
the political life of the nation, and laying upon
them the task not only of rallying support for nawas

experience,

practice of

Continued
speech by Mr. Cooper before the Savings
Maine, Poland Springs, Me., Aug. 31, 1953.

22

SECURITIES

NOW

porate securities

are

IN

REGISTRATION

afforded

undertakings in

a

—

are

this

demonstrating in dem¬
that
can

the

free

weaker.

In

simplest

economic

on

page

of living for the
it has meant conser¬
physical resources; finally,
it has meant strengthening the basic
of

freedoms

my

In

Continued

22
"A

and

Municipal

our

Bankers

Head

in

investors

cor-

WESTERN

to

the

Government

HAnover 2-3700

Chemical

SECURITIES

26, Bishopsgate,
London, E. C. 2

In

India,

land

Pakistan,

Ceylon,

Capital
Capital

Paid-up
Reserve

£4,562,500

J. A. H0GLE & CO.

every

Members of All Principal

OF NEW YORK

description of

50 BROADWAY

business.

exchange

Trusteeships and Executorships

Bond

Dept. Teletype: NY 1-708

Los

Angeles
and

Net
To

T.L.Watson

Corporation

&

Active

Markets

Dealers,

Banks

50

Request

BROADWAY

I

Orders

NEW

YORK

4,

Hardy & Co.

Executed

Teletype
DIRECT

On

OF THE

CITY

OF NEW

YORK

Cities

CANADIAN

Central Maine
Power Co.
COMMON

All

WIRES TO

\

Established 1832

MEMBERS

NEW

115 BROADWAY
NEW

YORK

Analysis

1-2270-X

MONTREAL AND TORONTO

Goodbody

Exchange

Tele. NY 1-733




Western

BANK

NATIONAL

DEPARTMENT

N Y

York Stock Exchange

New York

other

Spokane

'

N. Y.
CANADIAN

30 Broad St.

Denver

,

*

Canadian Exchanges at Regular Rates

Members N. Y. Stock Exchange

Tel. DIgby 4-7800

NEW YORK CITY

BONDS & STOCKS

Brokers

Albercan Oils, Ltd.
Commission

10

Exchanges

Maintained

and

Co.

Common Stock

•

Salt Lake City

also undertaken

Alleghany

CHASE

THE

1915

ESTABLISHED
v

£3,675,000

The-Barfk conducts

and

THE NATIONAL CITY BANK

£2,281,250

Fund

banking

Bond Deportment

Protectorate.

Authorised

COMPANY

American Stock

Bonds

iri

Uganda

Burma, Aden, Kenya, Tanganyika,
Uganda, Zanzibar, and Somali-

BANK & TRUST

Members

Municipal

OIL & MINING

Office:

Branches

Members New

28

of issues now registered with the SEC
"Securities in Registration" Section, starting on page 30.

of INDIA, LIMITED
Kenya Colony and

on

page

presented
by Mr. Ensley before the University
School of Banking, Madison, Wis., Aug. 26,
1953.

complete picture

NATIONAL BANK

Securities

Circular

on

State and

U. S. Government,

telephone:

Ensley

paper

Wisconsin

dealers

W.

Grover

of

choice, of opportunity,
and of enterprise.
We have made substantial progress
even
during the recent costly war and defense period.

Bank Association of

Underwriters,

standards

average person;

vation

in

State and

enter¬

stronger

grow

raising individual incomes all

creasing

ex¬

profes¬

my

tions of all analysts and economists, but it is not
practice to allow difficult things to go unchallenged.

*A

con¬

along the line; it has meant ever-in¬

sion, is any measure of today's effort, some of it will be
amazingly good and some of it will be in tragic error. I
am impressed with my
limitations, and with the limita¬

parently been done well.

world

strength and
growth has meant increased produc¬
tivity and national output; it has

with

broad

tending

for

major reliance on
collapse
in
the
United

than

rather

aware.

trust

leadership and

placed

system

terms,

you

world

depends

upon
our
ability to
The doctrinaire Communists
capitalistic system cannot survive

our

strategy

America

.

in

At the end,
I

we

ocratic

quickly.'

imponder¬

which

freedom

role

States.

cover '

develop

more

has

economic

you

than

of

nation's

strong economy.

a

Soviet

quest

sure? we

questions

more

minds, I hope,

your

are

raise

am

this

preserver

and

the

hope to make

many

lot

a

ap¬

and potential

stability and growth.
of

in

have believed that

to

up

survey

politics, finance

but, I
trees.

forest,

you

to

miss

will

was

page

Reviews theories of economic
Success

of the forest.

take

station

and

working organization had to be built up which
would pull together reasonably well—and be able
to command adequate support from both
wings
of the party, and, for that matter, from substan¬

on

of the

aware

operate.

we

aware

want

look-out

broader

a

Continued

which people

are

inevitable

picture, and concludes there'll be no abrupt military de¬
mobilization, and magnitude of the cutbacks in govern¬
ment outlays will be less than
following World War II.

engaged in
people's money

are

maintain

much inclined toward this

that the President

which

in

unless

us

an

recession, and characterizes current situation

as one of
"steaming stability" supported by "rolling re¬
adjustments." Discusses long-run forces in the economic

of

so-called progressive wing of the party as he is
toward the old-line Republican
group. Somehow

Time may prove
iiT

here
other

and

We cannot do the good job

right to expect of

a

Today

of their ideas
deeply different from those held by the
wing of the party which had from the first been
supporting the General, and the President-elect

This

savings.

gathered
own

nothing in present outlook that indicates

economic

that

General Eisenhower. A
great many

it has

is

Sometimes, I fear, all of us just
stumble along so interested in trees

were

tial elements of the Democratic
party.
hard and time consuming task, and

are

our

us

environment

firmly to its original
beliefs despite the fact that they had been
obliged
by the political ^alities of the situation to accept

a

of

who

and

The "Old Guard" still held

as

free enterprise system, a government economist examines
the current economic situation and outlook. Holds there

secularly; railroad and utility earnings to
high, with industrial profits falling.

management of

Committee

the Economic Report

Contrasting the Communist system with the American

our

remain

had elected him—with the aid of
many
not arid are not
"regular"

and is at least

rise

to

nation, he then at once had a sort of
personnel problem on his hands. The party which

Director, The Joint

oc¬

international

in

collapsing much of

head the

was

Staff

on

Market economist maintains real major change has

tively interested in going to the White House until
November of last year.

By GROVER W. ENSLEY*

W. E. Hutton & Co., Members N. Y. Stock Exchange

in

nated and elected from the time he became

Forces Ahead

By LUCIEN O. HOOPER*

sort of "shakedown run." Next
year,

of his time and attention to

Sustaining Economic

For Securities

aptly described the

work of the Eisenhower Administration to date
a

The

YORK

&

STOCK

1 NORTH

Doxraox Securities
Grporatiot!

EXCHANGE

CHICAGO

ira haupt & co.
Members

New

York

Stock

and other Principal

Co.

LA SALLE ST.

request

upon

40 Exchange Place, New

York 5, N. Y,

111

Broadway,

WOrth 4-6000

Teletype NY 1-702-3

WHitehall 4-8161

Boston

Exchange
Exchanges

N. Y. 6

Teletype NY 1-2708

Telephone:

Enterprise

1820

of

f

Tic.

H

V» VI U

VAD IHDIM TO
2

The Commercial and Financial Chronicle

(814)

..

.Thursday, Septep^bfcr 3, 1953

■Mm
WE

POSITION

IN

TRADE

The

and

This

Security I Like Best

.

Forum

A continuous forum in which, each week, a different group of experts
in the investment and advisory field from all sections of the country

Central Public Utility

Central Vermont Public Service

participate and give their

reasons

for favoring

Their

American

particular security,

a

(The articles contained in this forum

they to be regarded,

are

offer

as an

intended

not

are

he,

to

nor

S.

ROY

IIEAVNER

Fidelity & Casualty Company

Because

Pfd.

depends to

ume

certa'n extent

a

the

in

(automobiles,
population,

economy

Puget Sound Power & Light

etc.),

Southern Production

growing
uu

American

pany's

would oe
The

ty

in

Teletype NY 1-583

dividually
buses

or

ualty
Heavner

in

premicarriers

listed by A. M. Best & Company)
that
has
outpaced
the national

during the period 1931During this same period,
however, stock casualty companies
have
faced
increasing competi¬
economy

loss

assessed in¬

each fleet of trucks

on

in

are

then

with

line

experience.

raised

are

actual

the

Then

or

sub¬

too,

is

has

that

written

the

less

rapidly

Gross National Product.

Eft ppNNELL & fo.
Members

York

American

Stock

lustrated

REctor

than

This is il¬

computation

be¬

low.
Inc.
1931

BROADWAY, NEW YORK 5
Tel.

the

Exchange
Exchange

Stock

Gross
120

in

premium

stock carriers

by

increased

(In

%

1952

Product

National

billions

dollarsl

of

76.0

rapidly to meet current

Casualty
billions

'As

listed

dollarsi

of

Markel

Because

Trading Markets

the

American Furniture Company
Alabama-Tennessee Natural
Gas

Company

stock

Service,

Company

idly

other

The

unique

of

part

the

company's operations is that of its
affiliate,
Markel
Service,
Inc.
Generally speaking, Markel Serv¬
ice performs three services under
American

for

contract

Casualty. They
of

business,

Fidelity &

(1) production

are

safety

(2)

engineer¬

investigation and adjust¬

of

ment

rolling stock and servicing equip¬
ment, (2) examination of mainte¬

schedules', personnel and
facilities (checking equipment for
braking
power,
lighting,
tires,
axles,
windshield wipers, etc.),
(3) examination of schedules to
nance

determine

do

we

growth

insurance

situations.

growth

a

Lynchburg, Va.
LD 33

of

as

ran-

Product,

most

stock

companies

qualify as
it does not

company

to expect that
sales should grow much

rapidly than the Gross Na¬

tional Product.

There

are

several

field

and

notable among them is the Amer¬
ican
Fidelity & Casualty Com¬

of Richmond, Va.

pany

tion

American

Wringer

Front Range
National

its

the

to

&

Casualty,

an

organiza¬

insurance

Mines

business

consists

1952, 87.7%

business

in

writing

of the company's

in

was

these

lines.

The

company's susbsidiary, The Amer¬
ican Fidelity Fire Insurance Com¬

Fuel

specializes in

pany,

Ponds Extract Units
Roch. & Pitts. Coal Com.-Pfd.

Stonega Coke & Coal

Physical

Damage

automobiles
and

by

banks

1

finance

com¬

panies.

Upjohn Co.

records

Home

Between
and

bus

on

and

1952,

registrations

BONDS

to

truck

increased

Products

4/54

Federal Coal 5/69 (W/S)
Intl.

solidated
creased
In

Accountants

Soc.

the

growth

100,000

over

5/58

Gross

premium
with

National

volume

is

growth

the

of

Product,
1931

Gross

National

Product

(In Billions of Dollars)

George A. Rogers & Co., Inc.
Our 26th Year
120

Broadway, N. Y. S WOrth-4-6930




'Consolidated
miums
of

(In

Net

by

76.0

346.0

355

Pre¬

able one,

having earned an under¬
(excluding all in¬
vestment operations) in 24 years
of its 27-year history.
The com¬
writing

profit

expense

ratio is among the
For

the five-

period 1948-1952 the

year

ratio

averaged

25.2%

expense

of

premi¬

written, compared with 36.1%
for the industry during the same
time.
Underwriting profit mar¬
gins are about in line with the
rest

of

the industry.

American
writes
in

American

than

to

almost

Casualty

&

to

branch

our

offices

Collateral

balance

of

of

funds

company's

Growth in the net asset value of/
insurance company over a

an

of

From

years

was

ualty indicated

growth that was

a

approximately 24% greater than
the average of nine other leading
value

the

at

$28.54

of

end

for

allowance
was

Net

companies.

casualty

funds.

afford

this

Hie

extra

premium

stock

12

casualty

$2.50

of

pre¬

company

can

leverage

be¬

rates

can

be

al¬

rapidly to reflect experience,
whereas with other casualty com¬
panies, rate increases must await

the expiration of the policy.

share.

Gordon Graves & Co.

Price History
The

price for the common

mean

in

1942

the

of

mean

The

9%.

was

current

the-counter

For

1952,

come

as a

from

vestment
and

of

growth on
investments.
1951

income

casualty

for

stock

companies

in

in¬
in¬

fire

lave

been

with

d"r!n<r

Cas¬

1951

the

net

this

in

paid

since 1926. The current
$1.20 per share is 100%

every year

of

1940.

TRADING MARKETS
Southern Advance

Capitalization

Capital

consists

shares

of

ferred

stock

of

(held

is

300,000
pre¬

Keyes Fibre Co.
some

time

150,-

expected

that

000 shares of

$5.00

par

ferred

This

new

will

stock.

be

stock

convertible

on

value

first five years.

able

common

on

share-

a

for-share basis.)

The present pre¬

ferred

reclassified

will

be

into

75,000 shares of junior convertible

$5.00

Philadelphia 3, Pa.

the

(Shareholders will

subscribe

to

BOENNING & CO.

basis

for

cumulative

be

pre¬

preferred

into

share-for-share

a

will

and

value

par

Penna. RR. 41/js 1984
American

the

Leeds & Lippincott Units

Future

Phila.

growth of American Fi¬

delity & Casualty will,
stem

from

and

we

two

sources.

The first

important source
of
growth will be the continued in¬
crease in freight carried by motor
trucks.

It has been estimated that

1960

tions

tractor

will

be

trailer

1951

Transportation
3-6's

2039

believe,

most

Samuel K. Phillips & Co.
Members

Phila.-Bait.

Stock

Exchange

Pennsylvania Bldg., Philadelphia'
Teletype

N. Y. Phone
COrtlandt 7-6814

PH 375

combina¬

carrying about 247,-

This

800,000 ton miles of freight.

ton

such

miles

of

terialize,

Casualty

an

increase

the

freight carried ma¬
Fidelity
&

would

be

greatly bene¬

fited.
The

for

second

the

of

source

company

increased
of

N. Q. B.
OVER-THE-COUNTER

INDUSTRIAL STOCK INDEX
14-Year Performance of

growth

stem

may

service

rendered

by

Inc.

exclusively

Fidelity

& Casualty )

FOLDER

its
American

The hi?v»-

REQUEST

National Quotation Bureau
Incorporated

46 Front Street

Continued

ON

Markel

(Markel renders
to

35 Industrial Stocks

from

recognition of the type

Service.

income

in

American

services

In

171%.

growth of about

a

Should

record

investment

Wyoming Valley

5's

Growth

Fidelity &
period.

Dredging Com.

Cambridge Bldg. 3s 1953
Lackawanna

Future

by

Vegetable

Parchment

180,000 shares

and

the company will issue

soon

Kalamazoo

Markel

by

Bag & Paper

Grinnell Corp.

stock.

common

It

of

cumulative

5%

Service, Inc.)

the

(as listed by A. M.
Best
&
Company)
was
224%
greater than in
1940.
Contrast

however,

WHitchall 3-2340

Dividends
Dividends

States

turned in by American

Telephone

high-low was
asking price overis
in the
neighbor¬

hood of 21%.

resents

whole has turned in

record

30 Broad Street, New York 4

the
177/s.

with 91,446,000 ton miles
actually hauled in 1950 and rep¬

Investment Results

good

liability,

tax

any

per

compares

The fire and casualty insurance
a

asset
before

1952,

premiums

miums for every dollar invested in

capital

Bought—Sold—Quoted

the
net
asset
value of American Fidelity & Cas¬
1942-1952,

consolidated

the

in

pe¬

reflects successful
underwriting operations and succ e s s f u 1
investment operations.
riod

non-cumulative

companies

1952

Common Stock

preferred stock.

An average for

for

Company

receivables,

cash,

company

capital funds.
field

Oil

Loans

the

of

in

was

Commonwealth

Estate

casualty

the

$4 34

dollar

every

capital

other

1952,

about

wrote

its

any

In

company.
for

&

greater nremium volume

a

GacuaRv
Fidelity

wires

Net Asset Value

be

Fidelity

relation

this,
.842 23.855 2.733

Mobile, Ala.
Direct

as

miscellaneous items.

and

Fidelity & Casualty's
underwriting record is an envi¬

Millions

Dollars)

'Written

ualty.

%

NY 1-1557

Orleans, La.- Birmingham, Ala,

in¬

Stocks

Real

greater than in

Underwriting

United

1952 Inc.

St., New York 4, N. Y.

Stocks

Common

1.2%

American

in¬

tabulation

New

Exchange

Exchange

companies.
year-end

Preferred

10.1%

rate

drivers.

industry

following

in

compared

writings

432%.

5/68

E. Pritchard 434/61

Rochester Ice

premium

by

Stock

Stock

Bonds

1.4%

its

about 95% but the company's con¬

Doeskin

American

com¬

at

tered

Outstanding

1943

31.4%

Markel

available

Office

cause

Growth

Virginia Coal & Iron

underwriting
insurance
on

financed

installment

cars

Service estirra.es that it has

plete

in¬

Bodily Injury and Property Dam¬
age insurance on buses and trucks.
In

Licorice

Pocahontas

uninue

in

cameras

traffic situations.

record

1952

ums

dustry. By far the greater part of

'

Industries

tes

lowest in the field.

casualty

American Fidelity
organized in 1926, is

Ambrook

ro

in

stock

in

conservatively

the

at

re¬

without

met

movie

pany's

Unique Company

INACTIVE STOCKS

be

exceptions to this lack of growth
the

York

New

considerably

casualty

were

vested

,

transportation

can

main

as

To

unreasonable

more

Tele. LY 62

consider

not

company

Scott, Horner &
Mason, Inc.

volume

National

if

equipped with

casualty companies has

Gross

as

seem

Dan River Mills

premium

most

above

Inc.

endangering
safety,
(4)
road
patrol.
Markel's engineers cruise

Best & Co.

increased only aho-'t 88%

casualty

Commonwealth Natural Gas

M.

The return

1940.

3.94%,

was

assets

along
by A.

1952

7.2%

312

3.17

.77

1,047%

was

company

invested assets before taxes

on

The

quirements

Companies

(In

Members

Members

greater than in

ex¬

355

346.0

■"Premiums Written, Stock

2-7815

the

rapidly changing loss experience,
since premium
rates can be al¬

tion from mutual carriers and the
result

Steiner, Rouse & Co.

follows:

a

claims.
Markel's safety
engineering service consists of (1)
complete examination of assured's

volume

Co.,

25 Broad

for

monthly premium basis. This
is of great advantage in
ti^mes of

on

ing, (3)

net

Since 1917

19)

Assets

1952.

Rights & Scrip

(Page

com¬

stantially all of American Fidelity
& Casualty's business is written

a

cas¬

volume

u m

(all

Specialists in

&

Service,

Markel

rates

and

lowered

has

growth of
S.

Cook

perience.

resulted

1

for Nev/hard,
St.
Louis, Mo.,

Analyst

curity

rate

changes,

5

the

by

Sold—Quoted

Witherspoon, formerly Se¬

liam

rates

(2) the

levied,

Bought

National Gypsum Company—Wil¬

HAnover 2-0700

Premium

production,

Roy

New

J.

N.

Inc.

tered

with

Exchange

premium

provided

affiliate,

combined

1920

120 Broadway, New York
BArclay 7-5660

econ-

increase

Member

Stock

a

expected.

Corporation
Established

with

ent

New York Hanseatic

vol-

consist¬

m e

u

Western Natural Gas

Associate

in

crease

Taylor Oil & Gas

in¬

an

which

computed and

facilities

the increase in physical things

on

Corporation

casualty premium vol¬

in

manner
are

American

Michigan Gas & Electric

1

Fidelity & Casualty's
unusual nature stems from (!) the
American

Vice-President, Templeton, Dobbrow
& Vance, Inc., Englewood, N. J.

& Electric

Metal & Thermit

Polaroid

Englewood,

Louisiana Securities

(Page 2)

Units, Notes and Common

Morris Plan,

Casualty

and

—

Vance,..

&

Gulf Interstate Gas

Kansas Gas

Alabama &

Roy
S. Heavner,
Vice-Pres., Templeton, Dobbrow

sell the securities discussed.)

to

and

Selections

Fidelity

Company

Colorado Interstate Gas
East Tennessee Natural Gas

Week's

Participants

on pacte

19

New York 4, N. Y.

Number 5252

Volume 178

The Commercial and Financial Chronicle

...

(815),

4)

A

Perspective

the

on

INDEX

Bear Market in Bonds
MARSHALL

DUNN*

debt structure and the
money

of fluctuations.

of its servicing.

costs

Perspective

as

in

rule,

a

who

stocks

Traces major

—Dudley
A Look

scarcely

are

there is such

real

an

activity
the

gov-

private

American
back

debt

the

United
in

1948

$435,000

was

million, and
total

our

tional

wealth

estimated

was

at

just

under

mil-

$800,0000

lion,

that

y

vaiue

iV
^

ad

risen

portion

54

rithmic paper in the

of every

Qn

?u 'a?* 0n
van,il?en S

i

of

debt

correct

to

65%.

rate,

change hands,

The

when

bond

a

of

I* C0?S
For

Let

when

rate

by

the

interest

debt

s

for

each

and

bab;y», it

by

man,

about

to

has

in

(Since
in

gined
lows

the

1946,

going
in

highs
bonds

recent

of

bond

have

de-

the

interest

1%

over

by

long-term

on

about

short-term

has

rate

2%

certain

by

paper,

cipal bonds, and by about 1% on
prime rail and utility bonds. Add
to these the increases in

we

real

get

-

the

rates

estate
on

creased

mortgage loans and
the average an in-

cost of

since 1946 of
between

servicing

debt

our

probably somewhere

$32

a«d

$65

per

per year.

person

'

quality wise,
did

he

of

bet

place—the
would

ment
nf

since

Price

Haile Mines

15

$70

at

(Letter to Editor).

16

Controversy

(Letters to Editor from
17

Reforms

(Boxed)

in

Offing,

says

Smith

Throop

17

_

Assisant Treasury

___

—

Farm

on

Policy"

J.F.Reilly &Co.

Secretary

______

17

___

1920

for

National Bank Assets

77

*A

part
fore
ers,

.

Shreder Terms Average

X.

Common

Stock

Under-Priced

r.

of
the

a

,

,

26

Savings and Loan Units Add to Mortgage Holdings

Philbin Proposes End

25

of Federal Tax Snooping
%

'

■

.

Empire State Oil

36

i.

Johnston Oil and Gas Co.

Regular Features
As

It

See

(Editorial)

Canadian

Securities

10

—

Bookshelf

Man's

—

Dealer-Broker

From

8

Washington Ahead of the News—Carlisle Bargeron_____

Funds

Mutual

mar¬

NSTA

retrace60%

^

top,

a

This

new

for

seven

Our

time.

Association

of

Customers'

Public

Railroad

the.,, lows

34

________

21

Offerings

GIVE

33
23

TO

25

Securities

the type of secuconsideration, had at
last

June

Securities

Salesman's
Now

The Market

The

retraced'

preceding

.

in

.

Corner

major

advance

.

T,

1*920 lOWS.

following

i.

their

i.

-

CANCER

30

,

You—By Wallace Streete

13

Security I Like Best

2

Industry..-.

4

Opin-

INVESTMENT IN

-

Brok-

071 pClQd

*Column

not

PREFERRED STOCKS

25

BROAD

York

Stock

Albany

•

Manchester, N. H.




Boston
•

Twice

Chicago

Nashville

•

Glens Falls

•

•

Worcester

Gardens,

B.

DANA

COMPANY, Publishers

York 7, N. Y.

second-class

as

Publisher

SEIBERT, President

Possessions,

plete statistical issue — market
records, corporation news, bank
Other
nvi\n*ur\

city news,

Offices:
i

Til

135

glad to send

La

STate

matter

Febru¬

quotation

Salle

United

offer in

to

the

We shall be

you

a

list of

sugges¬

Canadian western

oil and mining stocks.
cuted

St.,

2-0613)2

and

U.

Note—On
rate

of

KIPPEN & COMPANY Inc.
Established

Record

made

Investment
607

—

1922

Securities

JAMES STREET WEST,

ST.

Monthly,

MONTREAL

(Foreign postage extra.)
Tel.

account

of

the

fluctuations

of

in

exchange, remittances for for¬
eign subscriptions and advertisements must
be

exe¬

Exchangee.

S.

Members

Union, $48.00 per year; in
Canada,
$51.00
per
year.
$55.00 per year.

Quotation

Orders

all Canadian

on

ENQUIRIES INVITED

States,

and

Other Publications
Bank

the

South

of

$33.00 per year.

clearings,

etc.).

fTpienhone

in

Territories

Pan-American

Thursday (general news and ad¬
issue) and every Monday (com¬

and

much

of investments.

tions, including

Other Countries,

Thursday, September 3, 1953

state

field

Subscription Rates
Subscriptions

Every

Eng¬

ary
25, 1942, at the pest office at New
Fork, N. Y., under the Act of March 8, 1879.

REctor 2-9570 to 9576

HERBERT D. SEIBERT, Editor &

vertising

C.,

Copyright 1953 by William B. Dana
Company

CHRONICLE

Park Place, New

WILLIAM DANA

E.

Patent Office
Reentered

WILLTAM

London,

has

c/o Edwards & Smith.

Dominion

TELETYPE N. Y. 1-5

Schenectady

Drapers'

land,

Exchange

•
•

1

Weekly

COMMERCIAL and

Reg. U. S.

ST., NEW YORK 4, N. Y.

TELEPHONE HAnover 2-4300

CANADA

this week.
Canada

,

Spencer Trask & Co.

available

20

FINANCIAL

New

36

•

o/">

my

25

Members

You

•

It has been

C07ltl7lU6(i

and

Washington

CONQUER

25

Registration
and

.

The State of Trade and

•

The

specialized in

1-1826

5

—

Governments

Securities

*

upon

of

May

Securities..

Utility

Published

have

Inc.

Exchange PI., N. Y. 5

Teletype NY 1-1825 & NY

years

prices

major selling movements and,

New York City, Aug. 27, 1953.

For many years we

40

29

—

Report

Security

Prospective

Then

following
declined in

Reporter's

Our Reporter on

went

April,

highs in bond

all

Wilfred

Observations—A.

second

one

by

and

years

bond

depending
rity under

.A.

MACKIE,

HA 2-0270

8

Bankers.

and

&

27
24

1
Banks

Singer, Bean

11

—

Notes

About

News

•

18

Indications of Current Business Activity

lower

Corp.

8

Communist Countries"...

in

Sonic

*

_____

Recommendations.

Investment

Einzig—"Inflation

Ultra

Products

36

—

—

,

Liberty

Cover

—

Stocks

Insurance

and

Business

the

just

We

Bank

quality

the

Mfg. Co.

Dan River Mills

Congressman

'bonds

far

so

during the

,

Philadelphia

24

he*

upward in

from 30 to 50% of their

by Mr. Dunn presented as
Symposium on the Markets be-'

paper

to

21

—

Bates
Harold

Coming Events in Investment Field.

high-grade

1946, had made

prices

Teletype NY 1-3370
Wire

19

"

1

Broadway, New York 6

9-5133

Direct

18

__.

its

If

the
in

been

great bull market.

two

Money

the

of

of

resulting

havfe

have climbed

that

Redeemable

nreredint? advance

the

0n

Standard Sulphur

Ray Gidney, Comptroller of Currency, Reveals Slight Decline

chart

of

use—with

Sulphur

13

;

only the-

average

being
indicated
by
yields they obtained

high-grade muni-

on

third,

top

govern-

on

government

almost 1%%

risen

bis

Sulphur

Guaranty Trust Co. "Survey" Discusses "The Coming Decision

By the time the bond

jn

used

bonds

appreciably in price to the
last .June, with .t^ie result

ments,

on

jlad

on

of

that

by

been

July

in

Gold

for

Calls

decline

Macaulay's figures,
62%
preceding long-term rise.

individ-

us

market

bond

prices

girl

Gulf

llj

July, reports Richard A. Booth, President of Nat'l Associa¬
tion of Mutual Savings Banks

.

market reached its bottom in 1920,
d
bad retraced, on
the basis of

$32.50

of

effected

recoveries.

on

not hard to visual-

is

the significance

years.

the

boy,

woman,

aally of what
our

of

burden

Halted

Survey

Agents

61

in about three major
interspersed, as might be
expected,1 by important rallies or
was

Down, according to

Purchasing

BO

m0ves

1%

as

cost

average

annual

America

much

as

the

the

price

of

Deposits of Mutual Savings Banks Attained New Peak During

commercial.

history

This

Barton

Gold

on

Dan

on

.

financial
States.

.

14

Price

Tax

the preceding major advancefve underwent the first recorded
long-term bear market in bonds
the

/

Pan American

Philip Gans and Frederick Shull).

111

United

Prices

Farm

But Not Enough!

^^^^e Ve^e^ '
?
just nail tne time lequircd

we

Mexican Gulf Sulphur
•!.;.
*.
■
•

6

to

prices extendin§ for 42 years from

realize that any drop in the price
of bonds which increases the in-

12

M

Department of Commerce Reports Construction Activity

in

per-

9
the UN's Inadequate

Peak

Gold

more

in

in

More

the long-term bull market in bond

market.

instances,

the

on

Schedules Slowing

i

defini-

downs

first notice

us

4-6551

9

Association

E.

bonds,
1857

century.

a

»!*

Dept.'

STREET, NEW YORK

7

NYSE Adopts New Plan for Sale of Large Blocks of Stock

line,

during this long period

almost

y to sendce our in

debt.

from

short-term

Wilson

Investing Course at New School for Social Research

Harold

high-

paper

this

have

we

and

heavy

shows

and

S.

■,

»!»

at

usual way.

Macaulay>s

line

ups

Stocks—Edward

Railroad

^

U. S.

been

on

pro¬

some-

portions

of

same

rates

65%™

and

broken

,

Drop

Moody's Aaa Public Utility bonds,

•

ize

the

indicating since 1935 the yields

violent

WALL

6

Charter—Hon. John Foster Dulles
(\

National

Interest Rates, Stock Prices," and

would

is

Fred

for

Stocks—Paul Kent

Production

semi-loga-

a

available

in

1935

Perhaps

oronortion

any-

total

is

.

■

y tive study entitled "Bond Yields,

our debt

wealth

to

betweeV^V

raises

chart

mac|e

as

$520,000 mil-

advanced

terest

^his

Outlook

meas-

prices

on

!

us

Obsolete Securities

6

99

New

to

amounts

dollar

plotted

Cobleigh

Irwin R. Frumberg to Give Lecture Course..

in bond

yields had first

then

your

5

Announced

•

debt

j

if

as

J

'L .'V

decline and

gives much

Try

over

dump

money

rise

relative

the

It

junk.

4

paper.

in

money rates

to

1948, the

force

of the

on

both

approximate by vertical

effect

by^ another $85,000 milestimated

an

where

change

terms

as

change.

wealth had grown by
fjnie I have seen no esti™^t jf it sinceremained close
had
to $435 billion
the

in

placed

possible

the

urements

fif
that

have

it

converted

As to how much greater our

ion.

visualize
rates

is

>

semi-logarithmic

makes

prices

and

these

equity. By 1951

to

inverted
This

physical things
Sub]ect in one way

was

fLJ!

ion

yield

doll^r °* our indicating the yields on
on? other structures, ma^^rade, long-term railroad
-h m
nd

rhin«v

,

of

Schoales

N.

"labor"
to

3

Dunn

at Selected Group Stock—Nicholas E. Crane:

Growth

,

rates, extending y
century./It• is in

in

cents

,

terms

to

major
a

Bonds—Marshall

Executive Treaty-Making Power and

money

year

that
Dunn

i+u

of

the

,

almost

that

means

Marshall

as

na-

of

homespun
swingsin

a

LABOR DAY

Cover

Telephone: WHitehall

the longer %

over

chart

and

total

States

appraisal

an

term, I have prepared

Yet

ernment

of

For

bond

as a

market;.

Hooper

Industries—Roger W. Babson_.___

The

Yillds

Bond

that

aware

the Bear Market in

on

Tools for Investment—Ira U.

Long-Term Appraisal of

estate,

O.

-

refunding operations..

interested

are

-

and

Cover

for Securities—Lucien

Investigation and Buying in Investment Banking

New

Investors

Ensley

where

k

solely

Forces Ahead

Don't

rates over last century and explains causes
Discusses present bond market situation and

significance of Treasury

stresses

W.

;
A

swings in

Economic

The Present Outlook

Mr. Dunn points out significance of our heavy public and pri¬
vate

Sustaining

—Grover

Wood, Struthers & Co., Members New York Stock Exchange
President, Association of Customers' Brokers

Page

AHD COMPANY

The

By

[iCHTfllSTfir

»

Articles and News

a

in New York

funds.

Members

of

UNiversity
The

6-2463

Investment Dealers'

Association

of Canada

/

4

The Commercial and Financial Chronicle

(816)

their

As

will

ness

business

new

As

business

the

of

with

study

upon

also

We

ports

of their published re¬
and other published data

about

them

and

interim

ings,

to

their

balance

sheet

keep

to

try

currently informed
records

as

asked

been

talk

to

you

maintain
earn¬

position

and

about investigation and

ing

in

"investigation"

term

well

pretty

Two Major

tor it¬
self. The word

spcuKs

"buying"

o n

the other hand

would

I

to

point

eral

the

over

First

past 15 years.

that

have

out one

two trends in financing in gen¬

or

denotes, in in-

nancing of any
hope, however,

Financing Trends

like

to

companies.

We
companies
which have financed through us
have been pleased with what we
able

been

for

do

them

highest and that based on this past record
grade corporate bonds which were they will also wish to do their
banking
par¬ aOld
during the 1920's carried in¬ future financing through us.
lance,
some¬
terest rates of anywhere from 4%
As to companies for which we
thing
more
to
6%.
With the
beginning of have not
previously done business
than
what
it
Government deficit financing and
but which we hope to secure as
might mean to
support of Government bonds, and our clients, we also
study what
a layman.
consequently
encouragement
of information—financial and other¬
In
invest¬
low interest rates, it became pos¬ wise—we can
obtain, so that when
ment banking
sible during the middle and late we call on their officials
we will
language, the 1930's to effect substantial savings
have some
knowledge of their
term "buying"
through refunding the bonds sold financial condition and some idea
and

Dudley N. Schoales

ments
a

buy-

broad field of subjects

to

are

including:

be issued.

Determination of

protective and

other

provisions of the securities.
Working with lawyers, account¬
ants
and
company
officials in

the

preparing

necessary

papers,

In

short, "buying" means about
everything connected with bring¬
ing a security issue to the market
except
syndication and
selling.
Thus, my subject covers a lot of
territory and I will have to paint
parts of it with a very broad
brush.

At

Morgan

Stanley & Co. we
departmentalized, but I

not

are

corporate
the

*An

address

by

Schoales

Mr.

the Third Annual "Forum
Joint

Committee

on

on

before

Finance"

Education

of

rep¬

the American Securities Busi¬
ness
sponsored
by the Association
of
Stock Exchange Firms, Investment Bank¬

resenting

ers

during

financing

bond

period of continuously

interest

from

rates

for

was

1935

lower
1944

to

refunding and re-refund¬

ing purposes.

Association

sociation

of

of

America,

National

Business

state

placement

the private

1935

securities

of

played

a

minor role in the overall
financing
picture.
Since
1935,

University,

New

York

City,

Aug.

24,

1953.

prefer special situations
and

large control blocks

Harry & Myron Kunin

•

talk

In
to

original
reprints

formation is published as to many
such
transactions.
However,

of

from

information

the

luring

would

the

that

is

that
four

appear

three or
at least 40% to 50% in dol¬

/ears

lar

it

past

of

amount

all

corporate

issues have been sold

bond

5, N. Y.

discussion

a

investigation and buying. Per¬
haps the first item to consider

knowj, the freedom of

circumstances
in

recent

Refined

—

than from

summaries.

or

This

is

not

always possible, but where it
is possible we use company audits
and

company
registration state¬
ments and reports rather than the

statements

which

digested

or

magazines,

papers,
manuals.

in

financial

or

In addition to the avail¬

Bank

serve

nals

and

in
It

reports, Federal Re¬

bulletins, trade jour¬

other

status of

has

the

which

sources

industries

certain

the

the

to

as

as

a

whole

operates.

company

is

My

firm

has

should

choose

form

such

felt

always

management

be
of

through competitive
by negotiation with

that

free

to

financing,
bidding or
bankers

of

Now let

Stock

American

Stock

Exchange

Cotton

Exchange

York

New

Exchange,
Board

Orleans

of

Cotton

other

Inc.
Trade

Exchange

in the industry,
company's management
decide

that

financing

for

we

wish

them.

Living costs in the month to July 15 rose to a new high, the
reported. As a result, almost a million automobile
workers will receive a pay boost of a cent an hour under escalator

government
contracts.

The Bureau of Labor

moved

0.2%

NEW YORK 4, N. Y.
DIgby 4-27J27




CHICAGO

DETROIT

GENEVA.

PITTSBURGH

It

Statistics Consumer Price Index
the

was

fifth

rise

in

a

row

and

Major auto firms announced they were boosting wages of
hourly-rated workers a cent an hour bebause of the B.L.S. index
rise.
The Federal Reserve Board also
reported that consumer credit
in July rose

$166,000,000 to hit $27,200,000,000. The total was nearly
$4,500,000,000 above the 1952 figure.
The July increase came
solely because of continued high instalment borrowing, the Board
noted.
This type of credit, including auto
loans, repair and mod¬
ernization of homes and personal
loans, climbed $365,000,000 in the
month to $20,900,000,000.
Auto loans accounted for most of the

boost, soaring $273,000,000.
its review of the steel

In

national
in

steel

with

industry this week, "The Iron Age,"
metalworking weekly stated that 13 dominant industries
and metalworking responded to an "Iron
Age" survey

vote of confidence

a

future business prospects. Many topas inevitable the easing
production in late 1953 and 1954 as a return to a more
market in which solid profits could be made
and

industrialists

on

significantly regarded

of record
normal

high

operations could continue, it added.
Opinions indicated that inflation
in

industrial

the

tive

economy.

salesmanship

increases.

hold

the

line

this

consumer

and

was

not

a

dangerous factor

Intensifying competition,

high-initia¬

certain to be effective deterrents to price

were

For the

automotive

since

heartening news, especially
industries seem determined to

was

appliance

prices, continued this trade journal.

on

Sales outlooks for, 9 of the 13 surveyed

industries

were

ranked

dim. In the dim grouping was coal.
B,y year's end steelmaking operations should be easing down
to around 90% of capacity, a number of prominent steel men pre¬
dicted. A slight but gradual decline should continue into 1954.
good, 2 as fair, and only 2

Bottom estimates for 1954

as

steelmaking rates

were

85% of capacity,

this survey revealed.

Producing at record through first half 1953, appliances should
din to a still-high rate for the second half, enter a high-buying
first half in

1954 which will

magazine

further

see

competition growing greatly, this

stated.

Declining defense orders inspire varying degrees of pessimism
in the machine tool industry which has felt an almost 45% cut
in order backlogs from a year ago. The
emphasis is now on the
civilian

market.

Detroit

believes

1953, recede to

its market will stay strong for the rest of
good level in 1954 to the extent the boom plays

a

"The Iron Age" reported.

1

The auto industry expects to jack up its
production a bit next
month—to

539,999 cars from 526,000 produced in August, "Ward's
Report" stated.

The

agency

foresees

stronger

and the return to operations

automatic

transmissions

and Oldsmobiles

of the

operations by Chrysler Corp.
by Nash. It also notes that substitute

would

be

during the month.

recent fire

at

G.M.'s

put

into

Pontiacs,

Cadillacs

The replacement is the result

Livonia, Mich., plant.

Slower August

production "definitely dropped 1953 car out¬
put behind the 1950 record pace for the first time this year, with
4,379,000 units estimated for January-August, this year, against

4,394,863 by Aug. 31" in 1950.
"Ward's"

If

estimates

account

some

50,000

cars

will be lost by the end
setbacks to exceed

perhaps 75,000."

figures

published

not

are

reports,

available

we

ask

the

company for such audited figures.
We also attempt to get industry

figures,

from

publications

or

And

—

associations

trade

a

A slight rise occurred in manufacturing firms' inventories in
July, but at a much slower rate than in previous months, states

the United States Department of Commerce.
Total value of fin¬
ished products and raw materials at the end of the month was

$45,600,000,000, about $100,000,000 above June levels.

try to determine the
pany's relative competitive
tion.

most
a

who

com¬

posi¬

number of

to

the

its

the

know

management
character

company

to

and

check

ability

as

of

management and the general

During the

months preceding June, inventories had been built
up at a
rate of about $500,000,000.

important

the

and

due to the fire, "with eventual

government

either

and

people

Exchange Bldg.

114.7%,

month.

of September

point—we talk with
N. Y. Cotton

to

pushed the index 0.5% above a year earlier and 12.7% higher than
the pre-Korean War level of June, 1950.
Increases in the cost of
housing, medical care, transportation, food and miscellaneous
goods and services were chiefly responsible for the gain in the

.

Sales of manufacturers in

monthly

July totaled $24,500,000,000, up 2%
New orders, however, showed

from June, the Department stated.,
a

Export $—Imports—Futures

up

audited balance sheet and income

Exchanges

Liquid

slowed

major

manufacturing industries and coal mining.
The Federal Reserve Board's index for July dropped to 233% of
the 1935-39 average, compared with 240% in June and 193% in
July, 1952.
Most of the durable goods industries showed seasonal
declines in activity during the month but high auto production
helped boost the major consumer durables index, the Board stated.

company

position
we

do

in

Automotive
a

preliminary investigation of the
company,
of
the
industry
in¬
volved, of the company's com¬

before

Exchange

preliminary

to us and ask our
help in
raising money for expansion or
refunding purposes, we make a

in
York

Industrial output in July dipped slightly as vacations

production

come

Members
New

to

When the officials of

and of the
1856

turn

us

investigation.

petitive
Established

Layoffs were reported in parts of New England and the Mid¬
but claims f,or unemployment insurance benefits remained
perceptibly below the level of 1952.
west,

out,

Preliminary Investigation

in

through
govern¬
mental
dictation
of
compulsofy
competitive bidding.

a year earlier. Further, it was down
mildly from the
post-World War II peak reached several weeks ago.

trade

industry

circum¬

been

on Wednesday of last week with that pf the
preceding week, but production continued to be moderately above

are

news¬

noticeable variation in over-all industrial output

was no

the level of

as

published

years

And
—

rather

sources

financial

There

from

amazing how much good in¬
corporate management to choose formation is available, if you con¬
the method of finance which they scientiously set about to
get it,
consider best for their particular on almost any industry.
you

Chicago

Raw

possible

as far as

information

our

Government

turn to

us

of

Commodity

SUGAR

try

we

Index

for the period ended

level

company we also try to keep our¬
selves
informed
through U.
S.

"Getting the Business"
Now let

officers

able statistics about the particular

privately.

New

YORK

company's

informed
the various companies which

complete statistics

no

are

will

we

keeping ourselves

fo the total volume of private
placements, since little or no in¬

There
is

LAMBORN & CO., Inc.
NEW

the

to

appear,

about them.

gather

TU-5630

STREET

financing

to

H. Hentz & Co.
WALL

of

try to follow regularly.

we

ties for

to

•99

host

such

follow

/niva/c wweiicM
403 W. 8th ST. LOS ANGELES

great

corporations, but we
certain number of the

a

we

scribed

SECURITIES

currently

important companies whose

as

As

SOUTHERN CALIFORNIA

select

more

become ah increasingly important
factor in the business.

should be: "Getting the Business."

uye/iA Of

do

however, private placements have

of

York

keep

the

on

Industry

Production

Business Failures

J

Nat¬

United States

In

As¬

School
New

cannot

we

informed

affairs

^

second

that before

Securities

at
the
Graduate
Administration
of

urally

financing needs.

cases, where capital ex¬
major
financing
trend since 1935 is that of private pansion, maturities, interest sav¬
placements. I believe it is fair to ings or other needs or opportuni¬

The

Dealers, American
Stock Exchange and the New York Stock

Exchange,

their

to

as

large proportion of the

a

available

the

earlier.

or

very

etc.

;

1920's

the

Thus,

cover

Compilation of statistics.
Investigation.
Deciding what types of securi¬
ties

in

depart-

firms

investment

of

the

;"rt

the

of

many

—

vestment

Auto

and

Price

we

all

we

Food

past,
the offi¬

requirements.

and

Trade

Commodity Price Index

the

company and discuss
their operations and

them

financial

call

Retail

State of Trade

after it.

in

Production

Electric Output

Carloadings

get

to

way

go

companies for whom

done

regularly

we

cers

to

to have been in the buying or ana¬
capital expenditures. We do not
buy¬ lytical end of the business rather control
any companies, nor do we
investment banking. The than in selling and distribution.
have any contracts for future fi¬

have

I

to

have

determining pricing of securities.

factors

Outlines

concern.

investment

best

is

Steel

The

the door.

in

walk

businesses—the

& Co.

banking "buying" means
about everything connected with bringing a security to the
market, except syndication and selling, Mr. Schoales calls
attention to major financing trends of last two decades.
Describes methods of "getting the business" and the proce¬
dures in determining the plan of financing, as well as the
provisions which give protection to both investor and issuing
that in

out

just

This sometimes happens, of course,
but for the most part—as in all

Stock Exchange

York

Members, New

Pointing

r

Business,"

the

"Getting

the ideal always is that the busi¬

DUDLEY N. SCHOALES*

Partner, Morgan Stanley

to

Thursday, September 3, 1953

they may

as

wish.

Investigation and Buying
In Investment Banking
By

selection,

own

...

decline from the

preceding month.

United States commercial exports in the first half of 1953 fell
about 14% below the like 1952 period, but military aid

shipments

boosted total shipments slightly above the year-ago
figure.
The
United States Department of Commerce reported shipments abroad

SWITZERLAND

Continued

on

page

18

Continued

on

page

26

Volume 178

Number 5252

...

The Commercial and Financial Chronicle

(817)

tive

A Look at Selected

Observations.

Group Stock

tember

Dept., Dean Witter & Co., Members of the N. Y. S. E.

Since Britain has served

the cradle of the entire investment

as

trust movement, it is interesting to note the present status of

the

trusts there, particularly with regard to their role in the provision
of risk

capital, and in their effect

©market.

on

the stability of the general
This talk is not to be

lifting of
unreasoning ban on their capital flotations

its
in

of

excess

£50,000.

And

the

prognostication.
man

features in this country are significant now in
the framework of the shaky condition of our

of

Much

in

light

Britain

is

available

Hole of the Investment

in

with

is

bear

analysis, "The
Trusts," in the Aug. 15

m

This survey

"bulls"

give

of

its

importance to the nation's

on

It

economy.

Wiltred

A.

May

quoted daily in the Official

are

lion,

($1,624 million); a gain of merely £25 mil¬
5%, since before World War II. This is in contrast to the

or

present aggregate of almost $4.7 billion of the American funds
assets, representing almost a five-fold gain since pre-War. Even
our closed-end
companies have grown by 33%.
The

British trust assets, which incidentally amount to less
quarter of those of the insurance companies, represent only
about 2 cr 3% of the total of listed risk securities.
They appear to

than

a

constitute

only about 4% of the approximately £13 billion of non¬

government bond

^securities listed

on

the London Stock Exchange.

In the United States the $3 billion of our funds' assets amount
to

only 2.6%

of the

value

of

all

stocks

listed

on

the

New

York

Stock

Exchange; and comprise only 2.2% of all non-governmental
issues listed on the Big Board.
Stability

The investing activity in the British

.v

one-fiftieth of the total
sion fund

trusts' shares, less than
pen¬

trusts'

lion,
of

a

During the declining markets of the second

jjf this year the funds' sales of securities held in their

portfolios

million—12%^ of the concurrent dollar volume

American

on

securities

exchanges totaling $3.1

tion

d¥' the

total

So wq see

ket

very

annually,

an

insignificant

to

mar¬

great.
Expert

greater "gearing," that is, leverage in

in England than here.

their shares

are

A

Selection

among

portant there than here

looked

on

as a

British

more

im¬

(and the British non-professional has

out

by

a

tute

market

As customers'

Atlantic

Seaboard,

areas

showing that

whereas

funds take

in

the

United

occur

Kingdom,

the London

on

Stock Exchange.
#

"British

warded

renresentatives

*

*

Under-Statement"

s\

leading British

seems

statement in the

trust, which he has just for¬

interesting in indicating the "relaxed"

non-

promotional attitude prevailing there:

w.

When

"When commenting

usually been able to

say

on

the outlook in recent years, we have

that

our

to

earnings would be maintained.

were not

on

occasion

unexpected; but it would have

anticipate them, since to

some

extent

emerged from the operation of abnormal factors, such

as

they

stock¬

piling, monetary inflation,

rearmament or currency variations.
Today the outlook is different, and it is difficult to
envisage cir¬

T

f.

which
.

our

funds

we

i

,

.

first asked to

give
mai-

I

was

an^'

the

considering

generally

atcuuae

me

in

of

number

pessi-

bireet,

a

companies

stock

dividend

dividend

are

by

any

shall be




of

have

aries

of

All the maior cornjY.ii me major com

important benefi¬
change of the EPT

be

the

benefici-

material

been
the

lc

pack

a

increase

which took place this spring.
American

has

Tobacco

shown

marked earnings improvement in
the June qUarter- industry exPei*ts believe that the possibility
of

0Q

earnjngs

American

for

cigarette companies

voBrabiy

an

in-

No°th aZh™ A^Vion

line for increased

in

®

a°nr'

Incidentally, in looking at the
companies, you might
look 3t American Machine

cigarette
3

& F™ndry> the largest manufac-

S!?tn turer of cigarette making machm-

an/the nmsDeSs wmdd
ery in the country' most of whi(~h
falorable for^ In ^nerea^ is leased' This sto?k' curreJ}tll

75c

seem

aui'te

?!dn°™b u *dividend
t/nos,ihW ^
SellL

fmm

7sP

no

m

about $21 a share and paying $L0°
to yield about 4"5%' also paid 5?S

^cr *> lsibly ■$1.0(). SeL mgun- in stock in 1952 and has paid
fuat iLLintv orSl^O this
2*/2% T- 9XS?*J0J*r this yeaF'
^d /rnhahlv
me? Smce thls dlvldend ls worth ap"
year

<R1

North

76

A

proximately another $1.00 in the

.

^iclT

nMy

reasonaoiy priced.
United Aircraft, a leader m
every phase of aviation from piston engine-to atomic power plants,
would appear to offer real investment value and a very generous

7,7% yield'
.

appreciably higher
than the cash rate would indicate,
The

company has also developed
the "automatic pin spotter" which

to have

appears

tential

over

enormous

an

the

lesg

in

20

years,

year

any

prevjous
dividend

no

never

raising

less than

in the twQ decades
.

paying

than it paid the
and

year

seven

with

a

the

times
back-

beiieved upwards of $700 mil-

for

Bakimr Shares

owning snares
Although General Baking earnings for the six months were disappointing,

Continental

Baking

appears

to be quite favorably sit-

uated.

Earnings

were

major supplier of planes
for the jqavy wouid appear to be
assured of constantly higher earningg in the years ahead. The $2.00

Cement

„

„

air

conditioning companies

afrS ™uld appear to have a solid basis
for mcAr,®ased business year by
companies.
This
„

manufactunng
group

The cement stocks appear to be

.

r Conditioning

•

The

..

All

year.

be

to

appears

fairly

well

be

to

extremely generous
yields and to be assured of a high
volume
many

of

business

ahead.

years

for

seen

around

you

you

have

favorably situated.
driven

many,

Unless

there

ir?g u.nitf; ho"'eYer' you,

Will ob-

viously have to be quite selective
in this particular group.
Carrier
is

the

General

of

Motors

the

in-

dustry and would appear to have
outstanding
prospects
over
the

viet

militarists, it would not

ap-

longer term, although

that

our

a

afford to let

we can

military guard down, particularly
in this vital

item.

With the

com-

of

SckTairc^afrbacklogfThU
has

not

not

seem

above

been

the

case

likely to be

situation

so

exists.

companies

and

as

*

York

Philco,

Tw,ims.

com-

Buffalo

h_vp

irYinnr_

For^e and Tecumseh have impor-

roade

nrnvPfi

a

pointed

"Business Week"

that

out

very

i

na(»

added

d
.

about

the

t
.

road

t930's. At the

d^d ^
we

of

miles

,

io

than

million

The

roads

future

of

their

and

business,

North

this

in

country

to

up

minimum

nmvidinL*

withni.t

p

a

dend

likely

follow

to

air¬
We

are

pleased

to

that

announce

example.

When I look at companies such as

scnne

*A

paper

part
of a
before
the

Brokers, N.

$2 billion backlog,

by Mr. Crane
Symposium on
"

Association

Y.

City,

(has become associated with us as Manager of our

United

billion, United

figure. If it should show

MR. JOSEPH H. GASSOUN

po¬

PUBLIC

American

their

Air¬

presented as
the Markets

of

Au*. 27,

Customers'

1953.

1

Continued on page 14

sub¬

recently increased divi¬
payments
and
others
are

the

L

with considerable specula-

priced

does

Aviation

of

P<>lnted out that ^ would take at
least $40 billion to bring the roads

additional turnpikes such as have

sitions and their confidence in the
Aircraft

vehi-

surv

^

......

we

time

same

over-the-counter

low

prospects for increased dividends.

Indicating improved financial

the

in

riecade of the 1940's we built about

tant representation in this field.
a

roads

around the eountry and kn0w the
c
ing need {or lncreased and im-

while the
Most

have

panies

such

have all

You

sub-standard

on

the increase in air condition-

complete collapse of the So-

is

$2

disappointed, but not dismayed

over

up

jj0rij

mu

billion, Boeing $1.6 bil-

gross revenues will

in
au-

boys.

pin

e 0 Iearn" higher earnings.

Lockheed

our

po-

Used

years.

Grumman, selling at $20 and pay- tomatically set up the knocked
down pins and eliminate the need
last

j

market, to bedividend rate would
the
appear

bowling alleys, these devices

*ng $2.00 a year to yield 10%, is
a blue chip in the industry, havjng Paid a dividend in every one of

Aircrafts

craft $1.5

think

,u,;

,

•

blgb

large accretion of dis¬

We

fa-

i

....

toke

osvoiit

also

are

situated.

100% in the first half of the year,
and an increased or extra diviearnings and dividends over the
dend would appear a reasonable
next year. The need for selectivexpectation. Yielding almost 7%
lty is ever present; however, the
dividend would appear to be most on the present $1.60 dividend, the
secure on the basis of the histor- stock
would not appear overmes appear ?^SiirieLa^Q/?^Pao
kely to maintain a
j pattern and the prospect of priced.
to be

section of the various industries, in

invested.

ciaries

next

i+o

the

.

a

be maintained close to last
year's

decrease,

.

selling

spring with the prospect of
cressed

our

Douglas with

cumstances which might soon produce
any

tributable earnings

panies will

stantial earnings or very excellent

predictions have been generally fulfilled and

exceeded. Such increases

been imprudent

do

can

talk, I went through the

craft

>

*

These

we

it

the Korean peace, it was
thought in some quarters
that

following excerpt from the Chairman's

to%ie,

cer-

fundamentals.

ing

a

in

and

—

clients and, incidentally, ourselves
the greatest good by sticking to

pear

of the country outside of

conversely, most of the public's acquisitions

report of

substi-

wrong, with the

that

seem

a+

renegotiation may cut

pear

place in the relatively non-expert

are favorable
iavoraDie.

same

il ^

sales

salesmen

and

opinion

many cases were

this

project?

P

survey

study made by

here two-thirds of the sales of shares in 75
open-end

current

or

no

to help him out).

U. S. National Association of Investment
Companies

-The

one

many

because

for the

haven of refuge for the lay

This, contrasting situation is borne

North

seen

fundamentals

liquidating

suitable

as

the individual trusts is far

Wiesenberger & Co. analytical "Bible"

the

cer-

Even in the

great

lost

been

™r

investor who is expert rather than

citizenry.

and

groups

day has
highs.

market.

would

and,

the

with

+

In view of these variations in capital

Structure and the great obscurity in their
accounting re
value and the like,

all

discussion of the trend of

a

or

another

As salesmen you know that a
great deal of time is wasted every

appear

trust capitalization, both market price and earnings fluctuate much
more

new

propor¬

occurring there.

The Expert's

Because of the

every

mistic

that both abroad and here the trusts' threat

stability is not

include

surprising

business

Crane

billion.

Over-the-counter here the trusts' total volume of transactions
is estimated at only $60 million

as

E.

past few weeks of declining mar-

amounted^to only $130 million, purchases to $246 mil-

total of $376

sales

Nicholas

tainly not all issues.

pur¬

probably
1953

as

«

«d.n

nt

looking at the
textiles, movies ctrid licjuors will
testify. A "bear" market, if there
is to be one will almost certainly

a

in

values

ZZrovitl earnings^'and

and

instance,

$10-11

a.$40 to yield 7.5%, Boeing would
appear to be a likely candidate for

of perhaps a client and
tainly losing commissions.

proportions, the

chases and sales of securities comprise
only about 6% of Exchange

quarter

vpar

loss

investqrs and insurance companies.

total trading volume.

groups

the

for

investment

sound

tbey

"i /r° tS t0/°/e GXtent' Tobacco in 1954 is not at all reih
an eX" mote. and an increase in the curl
G ^
rent $4.00 rate would appear to be
i
««In mir
a distinct possibility.
The other

m

past

ignore

trading volume, is largely confined to

Here, in similarly insignificant

the

day in

least

at

over

do™

four years did
not include all

have

Small Threat to Market

rpnrulir?.!
ep icing

The

kets

earn-

«9nmia ml/0 wluariJv!JPWar
n+h! In*
While they may

market

more

companies

nf

one

"bull"

not

dollars, it is

these
;•

dividends

earn

the other

of

List of the London Stock Exchange, hold assets with a market value
of only £580 million

Aviation

increasing

but

strong

as

side.

shows that the 234 major trusts, that is, those

whose shares

you

just

billion
how

show

Boeing,

can

traditionally

should be added deflation of exaggerated ideas

substantially from the lows of last
they still appear to repre¬

next 5 years,

will

the

inflated image of British trust
performance in phases of management results,

general have moved ahead rather

you

have,

indicates that to the debunking of the public's

.

IBBIHHHHI the

mar¬

t

n

e

and

American

a

see

fail to

can

ings

bull

a

over

to
~;i

+

o

ket. For every
bearish argu-

an

issue of the London "Economist."

of

Tobacco

sent

North

hard

nlioni

whether

or

the present trust situation

on

know

lion,

few

this

stock price level.

I

more

anrl

man

earnings

and

Although the tobacco shares in

groups.

futile for both salesand client thon a discussion
than

things

comparative

market

a

year-end,

expected to be sharply higher

year,

in selected

This is particularly timely there now

in view of the British Government's

Re¬

in the year ahead.

Asserting there is need of selectivity in present investing,
stock market analyst reviews companies of favored
groups,
such as aircrafts, air
conditioning, tobacco and cement com¬
pany stocks, along with others. Concludes there is no ground
for being "very bearish" in face of certain favorable factors

The Investment Trust Picture—In England and Here

Copeland

Copeland,
currently
selling about $11 V\, should show
about $1.10 a share for the Sep¬
are

By A. WILFRED MAY

is

frigerator.

By NICHOLAS E. CRANE*
Research

attraction

5

TRADING

UTILITY

■

.

^

DEPARTMENT
'

'

'

!

'

EDWIN L. TATRO COMPANY
50

BROADWAY, NEW YORK 4, N. Y.

Telephone: DIgby 4-2420
Direct

BALTIMORE

—

BOSTON

Teletype: NY 1-3430

Telephone

—

HARTFORD:

Enterprise 7H46

<3

The Commercial and Financial Chronicle

(818)

distinguished line of pre¬

tion of

By IRA U.

'

Containing

some

and

industries,

'cyclical"
ilways

view

into

be the machine

to

seems

the

of

one

marshalled

ones

electrical

Wall Street"

industry.

tool

Machine tools,

the

patient
vital

and

of

servants

big. industry,
perform

these

lia¬

and
that
the earning
of machine tool companies
was going to drop dead tomorrow
noon. In few investment fields in
bility,

power

past decade has so much in
value, and earning power,

the

asset

been

reflector of mass opinion—
the

in

market—as

the

by that

regarded

lightly

so

great

of

area

we

hardly

today's commentary, the machine
tool companies.
While the rewards of those who

ever

think

quarrel with the dicta of the mar¬

of

dozens

op-

erationswhich
of.

would

Yet you
never

have

lawn

mower,

razor,

a

car,

a

tractor,

a

Cobleigh

Ira U.

a

airplane,

an

lo-

a

comoti ve,

,

ket have often been either meager

seemed

Cincinnati
For

ing gadgets that mold, shape, cut,

the

hundreds

gauged and

fine

of

industrial

tricate

processes.

in¬
And

they're not employed turn¬

when

o'ut

finished products, they're
■even
busier turning out more of
their own ilk—production equip¬
ment
for
manufacturing
other
ing

products.
Traditional

The

to

industry

"cyclical"

as

when

ordered

times

is

re¬

seem

to

good;

are

tools

chine

the

to

"cyclical"

technology, however, is now
changing this traditional pattern.
For
instance, with ever higher
labor
costs, new and improved

maintenance,
make

Jess

it

constantly be¬
They can lower

are

increase

better

output

faster,

or

waste;

or

they

efficiently,

an

entirely

Then

too

there

industries

new

is

and

is

the

of

demand

new

and

a

hitherto non-existent

for
tool

power

new,

market

Importantly, also, there

the

are

of defense,

and

which carried the

industry to alllime highs in 1942, leveled off in
the war, and postwar
phase, only
to surge again from the Korean
•outbreak

$1.1

total

to

billion

in

sales

1952.

of

over

defense

The

machine tool demand is still very
much

with

with

us,

normal

ments,

and

that, coupled
industrial
require¬

suggests

total

sales

year above the billion dollar

which

profits

in this

and delivery to them of

a

Finally,

of

there's al¬
replacement
demand

the

ways

outfits

many

course,

is

equal the best postwar year
(about 28% of total) but which

will

still

run

into

nine

Market "Whipping
On the financial
of

machine

been

Boys"

side, the shares

companies

have

real

market

ret

tool

figures.

the

whipping boys. The
definitely has refused to
least

bit

rorhantic

about

equities in this category, apprais¬

ing

many

two

or

of

them

at

a

,

mousy

three times

price/earnings
ratio; and often discounting em¬
inently solvent balance sheets, as
though they had been blown up
tor

merger

purposes.

And,

per

share

which

net

cases

current

the

assets;
purchaser

ceived his

in
re¬

equitable share in the
plant, brick and mortar of the
property without paying a cent




"feast

a

a

company.

have

in

importance
As

units.

been

of

case

sales

government

of

war

entire market);

magnificent,

.$128.6 million for

to a

up

high

of

1952.

Of course, government demands

extensive

considerable
lion

and

reported

but the

1953;

for

account

a

portion of $110 mil¬

backlog

main

products

on

line

July 1,
of com¬

milling

—

and

grinding machines, cutting fluids,
and
surface hardening machines
are widely sold to
private indus¬
especially automotive

try,

plants.
Domestic production is provided
by the home plant in Cincinnati

and

another in

Wilmington, Ohio;
and its British subsidiary located
in Birmingham, is reported as the
Empire's largest machine tool
maker.

Dividend

$3

About
at the

Well

balance

Protected

sheet

position,

year-end net working
at
$33.8
million,
roughly equal to $40 a share on
each of the 850,000 shares of com¬
mon

outstanding. So you're
paying very much for plant
equipment with CMZ now

after a healthy EPT bite.
Quite
obviously $11 and more a share
gives plenty of cushion for the

$3

a

year

indicated

divi¬

dend

rate; and a company
magnificently solvent as this

shouldn't
raid

what

exactly
with

invoke

the

a

common

so
one

bear
sell¬

ing less than four times earnings.

in

million

$32.7

Another

one

today with

we

some

living

reasonable

and

1951,

couldn't

$5.20
on

demise

of

The

EPT!

—would

strikes

creases

About

there

was

(1953)

waged. May it

earnings

last

year.

cash

$2.25

30th

and

in

something

cash

within

possible.
lard

for

In

Accordingly,
dividend

the

at

realm

end
the

of

the

Bul¬

shows

23V2

current

Vz %. There

either

year

event

any

common

of

assured,

by the

an

yield

was

of over
2-for-l stock

a

split in1 1952.
in

Industry

there is little

or

some

other subjects,
but

would

by

the

in

search

Roger W. Babson

re¬

fields

of

physics, chemistry and metallurgy,

invention's,

including
and

Atomic

mind

do for

Energy may

the

following

&

Ex-

as

Machine

Tool;

Norman,

Swasey,
evidence

and

reveals

no

are

which

be

can

for

used

better

clothing and homes—thus
eliminating Wear and main¬
(3)
not

for

uses

electronics,

production and dis¬
tribution but for the protection of
in

and

against

crops

ever

studies

Photosynthesis

(4)

whereby the air, light, water and
minerals now used by the plants

might

look

assurance,

be

can

it

cyclical

slowly

trends'

well be that
this trade are

very

in

flattening
in

vances

need

can

for

that

out;

technology,

ad¬

continuous

unused

is

use

conditioning in

winter,

free

air

hot water

household

other

summer,

benefits

saving ma¬
chines, the spread-out of military throughout the year.
(7) The discovery of new mira¬
demands, and the researching of
new products may provide
higher cle drugs which will eliminate all
more

sustained
in the

levels of gross

future.

And

earnings

proven

capac¬

infectious

good

who will

in net when EPT expires, suggest
that
tools for
investment
may

tional

and

and

long

assure

life

to

all

live

properly.
A revolution of our educa¬

(8)

system

citizens

which

will

make

truly

intelligent, useful
happy—perhaps greatly re¬

and

have been unduly slighted.

diseases

health

ducing later mental diseases.
(9)

Rauscher, Pierce

fly

Forms New

Discovering

manufactures

using

Dept.

how
cold

the

fire

light

and

the secret for many pur¬
from flash lights to general

poses

illumination.

(10)

Securing from the sea its
and constantly increas¬

unlimited

DALLAS,
Pierce

Texas

—

Rauscher,

&

Co., Mercantile Bank
Building, has announced the for¬
mation

of

an

out-of-state

institutional

dealers

under the direction

Volz,

combining

and

department

of Edward

the

services

T.

of

ing supply of food, minerals and

firm's
the

and

west.

central

research

state-wide

Mr.

headquarters

Volz

in

office,

facilities

maintains

the

in

Building.

With M. P.

staff

firm's

the

addition to the above, are
possibilities of finding a par¬
tial insulator against gravity. This
could
greatly
reduce
weight
In

trie

which is the greatest
cost

of

of

his

San

Milam

These

are

the studies which As-

sociations

should

of

Manufacturers

be

making and generally
encouraging
instead of fighting
labor

along

present

lines.

port,

Bullard

and

customs

of

"horse

today.

Frumberg to

a

the New York Institute

at

course

New York

Office will conduct

of Finance for benefit cf

people
actively engaged in buying and
selling securities.

been

R.

Frumberg, who has
Interpretive Attorney

Chief

for the New York
Regional Office
of
the Securities
and

Exchange

Commission
since 1949, will

this

conduct
fall
of

course

a

lectures

at

the New York
Institute

of

Finance,

an

institution fos¬
tered

the

by

York

New

Stock

Ex¬

change.

The
will be

directed main1 y

for the
of
professional

Irwin

guidance

dealers

securities

R. Frumberg

and

other peo¬

actively engaged in buying
and selling securities.
Mr. Frumberg was born in New
ple

City on April 8, 1915. He
graduated with the degree of
Bachelor of Science
at Harvard

York
was

completed

University in 1936 and

law degree at
Harvard Law School in 1941. The

the

for

course

he was appointed as an

next year

attorney in the
office

the

of

a

General Counsel's

Securities

Ex¬

and

Commission in Philadel¬
phia and was later transferred to
the New York Regional Office as

change

interpretive
Chief

made

attorney. He was
Interpretative At¬

torney of the New York Regional
Office of the SEC on July 5, 1949.
Mr.

will

Frumberg's lectures at the
Institute of Finance

York

New

deal

with the

mainly

rules

regulations relating to secu¬
rity trading and the procedures of
the SEC in interpreting and dis¬
and

regarding

information

tributing

its rules and decisions.

As has al¬

ready been stated above,
aim
is to
assist those

in

primarily
as

ness

ficers

the

the

well

and

as

others

issuing

the chief
engaged

securities busi¬
corporation
concerned

and

of¬
with

marketing

o

i

securities.

If one

Giessing
Company of Bridge¬
half of what is now lost by em¬
(Special to The Financial Chronicle)
Conn.,
which
for
almost
ployers through strikes were used
three-quarters of a century has
FARMINGTON, Mo. —Leonard
been applying Yankee
*Summary cf an address by Mr. Bab¬
ingenuity J. Vargo is now with M. P. Gies¬
son
at the Summer Conference of Babson
and sound business
judgment to sing & Co.. 108 North Jefferson
Reports, New Boston, N. H., Aug. 23,
research, development and produc¬ Street.
1953.
The

which

greater

power.

factor in the
living. Yes, and I might
add one more hope that some way
their offices to offer a compre¬
will
be
developed
to
regulate
hensive
municipal
investment
population growth in a way which
service in Texas and the South¬
is both righteous and practical.
the

develop

and

more

attorney for its

Regional

course

radiation

solar

of
in

would

industries

en¬

waves

being used.
heat

free

now

are

homes like radio

The

(6)
for

which

waves

our

—but not

and

labor

we

artifical insemina¬

Capturing for useful pur¬
the supersonic and other

(5)

tering

In fact

into

tion.

should

liquidated.

directly
connection

this

In

must not forget

poses

be

combined

higher

a

Give Lecture Gourse

Irwin

New

only

be

more

Furthermore,

losses

buggy"

Irwin R.

tenance.

convincing
that better
grade machine tool share holdings
now

and

New

colors

goals

new

offer far

SEC

metals
and
alloys
lighter, stronger and
cheaper than any now known.
(2) Indestructible plastics in all
(1)

would

with

living.

for
in¬

some

demands

maintenance

ten

thoughts:

which

in

opportunities than the sicknesses,

mankind, if properly used, I have
in

such

inventions

demands

that

along

of
the

in¬

discoveries

processes? In addition to

new

that

and

all would have

we

entirely

price

necessary.

the

true

time

of

consumers

no

complain

labor

leisure

standard

drudgery.

Warner

is

It

some

or

as

be

reduce

labor.

less; but

food, thus eliminating agricultural

such

would

stances

logic for any counsel
of gloom; and a glimpse at the
present position of some of the
toolmakers

will

by

new

parties—stock¬

discoveries

reached

increasing pests and insects.

Certainly in regard to the two
companies we've briefly reviewed,

Cell-O; Monarch
Sunstrand;
Van

Seme
new

plans

humans

Others

would

profit sharing

what

1953,

additional

stock

or

seems

share.

strongly

appears

best

legislation

of

running substantially

are

of

these

can

all

benefit

not

of

$52

indicated

the

that

research

holders, employees and

be

backlog on Aug. 6
million, and net

a

of

ahead

outloox

the

are

primarily

sim¬

be

June

per

ers

wasteful

be

balance sheet showed net working

capital at above $14

cooperative research along the
lines, their work¬
would
constantly
be given
higher wages, more security and
better working conditions.
From
above and other

such

ends

share. Bullard stands high
list of beneficiaries, at the

a

any

for

things wage
disputes and

a

$4.44, this after payment
at
the
astounding rate

EPT

security
these

For

pler—just 552,000 shares of com-,
mon, listed NYSE. No bank loans,
no preferred, no subordinated de¬
bentures. For 1952, net per share
was

their

conditions.

work

Simple Capitalization

Capitalization

in

with

whopping $57 million last year.

Antonio

Bullard Company

at

and

increase

$12.5 million in 1950 expanded to

Under Edw. T. Volz

NYSE at 43.

Earnings for 1952 were up sen¬
sationally from $4.75, the year
earlier, to $11.14 a share; and
they
should
wind
up
in
that
vicinity this year. This, mind you,

current

standard ' of

along present lines.

analysis, the work¬

an

Postwar
a 1948 low of $8,855,000 and then, beginning with

stood

on

want

ers

big war
Bullard

now

quoted

final

ity to earn money in slow times,
plus substantial hoped for gains

1952

capital

labor
the

In

other

back

and

all-^ime

processes. Says studies along these lines should be made
by producer associations, rather than using their efforts to fight

million.

grossed
$47.6
sales dipped to

technological research and its

new

the

when

1942,

v

the

Milling,

was

year

;

in

noted

we

Cincinnati

of

production

the

jet propulsion

9

there

that

atomic energy,

chucking grinder. Bullard also
a
special process of especial

has

on

building new industries, lists, in addition to
10 fields for inventions, new discoveries and

and a verti¬

reamers, spacers,

ers,

cal

Babson, in commenting

importance in

automatic control, bor¬

or

or

surplus machine tools glutted the

actu¬

ally, some machine tool compa¬
nies have sold at a discount
from

for

Mr.

to 12
single
circular unit, as a mass

indicated

true

(when

and

years

held.

common

swings in net sales ranging
from a wartime high of $103 mil¬
lion, down to $31 million in 1947

not

million;
and
export
probably not for

old

record

It

preferred for

e

4

wide

which this year should amount to

$150

6%

pretty decent sort of divi¬

a

dend

over

sales which will

of

of

share

each

6 for 1 split of the

a

share

new

this

field.

for

has

common

by

level,

humming lathes, and

means

sturdy

CMZ

by

common,

pany

created.

•demands of war,

illustrated

omission

are

needed

are

out,
item.

new

jet planes

—

example—where

gadgets

turn

can

or

with

or

above.

to

best

that

fact

this
This

of

paid cash dividends without a
miss, since 1894 with the single
exception of 1922; and in that year

famine"

Perhaps the current level of

tools

is

resistance
the

States,

theory

alluded

industry,

United

the

in

considerable resistance

has shown

life.

researched.

Mill¬

largest

That's

machine

Cincinnati

instance,

during depressions they seem to
have evidenced long and sturdy

ing

Milling

shareholders were solaced for this

that

is

machine tools

many more

be

the

reason

ferred

Reversed

Pattern

instances,

Machine Company, probably
manufacturer of ma¬

ing

finish metals in

or

groove

manual

to

appraisals

particularly harsh.

a

ship, or a toaster without some of
these power-driven metal work¬
form,

introduced

be

perhaps

might

suggest
that
trading
here
have,
in
some

are

production technique. Other prod¬
ucts
include
vertical lathes for

negative, some points of logic

or

h

a

from

lathes in

accounts were a

plant

1

Au-Matic

By ROGER VV. BABSON*

its Multinstallations,

industries

bunching

industry,

almost have thought

for it. You'd

New Industries

its

Among

tools.

products today in wide
demand in the aircraft, motor ana

random notes on the machine tool
brief appraisal of two tool equities.

anybody talks about

Whenever

first

a

machine

featured

COBLEIGII

of "Winning in

Author

a

cision

Tools ioi Investment

.Thursday, September 3, 1953

..

With F. K. Justus,
(Special

to

The

Financial

SMITHVILLE,
Moore has

Justus, Jr.

Jr.

Chronicle)

Mo.

—

J.

B.

joined the staff of F. K.

Volume 178

Number 5252

earnings reached a level not at- would appear more vulnerable to
tained previously at a time when a drop in industrial activity than
all know commodity prices were showing other Southern carriers. Most of
by sad experience that you can't a slow decline.
these roads recently have made
argue with the tape. The burden
(8) A relatively low ratio of feal headway in reducing the allof proof is plainly upon the raildividends to earnings (41%
in important transportation ratio, but
roaos to demonstrate that a satis1952
and an estimated
38%
in face the acid test of lower traffic
factory level of earnings can be 1953).
In 1949, this ratio was volume before this improved permaintained if industrial activity 57%. With many railroads reach- formance
will be accepted by
should
drop
10%-15%
below ing the end of their postwar im- investors at full value. The Eastpresent boom levels.
provement programs, there have ern carriers are especially vulnerbeen several significant dividend able
because of high terminal
Some Basic Constructive
increases this year and more are
expenses and
heavy losses on
Developments
passenger traffic, particularly
in prospect.

theless, the fear of such

The Outlook for Railroad Stocks
By
Manager,

EDWARD

Research

Members

of

the

sion

New

Hallgarten

York

Stock

&

Co.,

Exchange

Commenting

upon the pricte decline in railroad stocks in the
face of record net
earnings, Mr. Wilson lays this paradoxical
situation to investors' fear of future

Says recession

ings.

psychology, but

points out factors which

railroad stock values.
will not fail

drop in traffic and earn¬
becoming roofed in investors"

scare us

Forecasts

can

net income of

\

decline in

ease

Class I carriers

What

than

15% below present peak levels, but
warns
heavy industry railroads may suffer greater losses.
Lists rail equities that have favorable investment factors..

TnHdina hv
iimoH

railroad

+hQ

q

railroad

To

he

the

a ?er*aih strike*

*

is

losses caused

average

from

Missouri,

an¬

like

the

fourth

proverbial
in

man

levels

shoe

drop

the

on

above.

The

other

shoe,

of

the

is

course,

'possibility
cline

hand

the

rail-

in

individual

strike.

of

sharp de¬

road

-•

■

'recession"

tnLr
roads.

forgot¬

of

year

on

ing

in

deener

railroad

the

re-

If

with

ratio

railroad

of

e

incon

which

thelreatestsoiTrce

been

past

four

iiignb

diiu

pnrrpntlv

in

earnMes

This

with

are

has

in

the

industry in 1949.
vards

of

automatic retarder systems
mechanization

ornnnmieq

birrpasinf?

rofd

of

road-

demonstrat-

are

rail-

to

The'Southern

managements.

price

a

a

x

sion

t%e

(based

the

on

In

bull

market

the systematic monthly budgeting
revenues and expenses, i.e., the
Baltimore & Ohio. In case of

1936, the .average price x earnings
ratio

14 times.

nearly

was

valuation of current

railroad

earnings, the

Class

obviously

in

looking

investor is

beyond

this

dence to accept a cautious invest- Coast Line).

"I6? P°^lc.y towar s t e sec rit s

compared with

1938

1932

became

1949

and

net loss of

a

balance

oro-

?

gressivelv toss severe

with

demand

and

pre-

' dictions are being made in au-

record
the

following

for

the

close

afT&ml
aii time
ai

running

high and,

table,

last

income

net

should

half

second

to

an

indicated by

as

run

excellent

year's

showing:

production, after breaking all records jn
the fjrst ha)f.

cut-back

both

as

js

cars

pile

of residential

confounding

(6) A relatively low and stead-

Several of the six roads menas examples fit into more
than one of the favorable cate-

.

.

Included

in this category are tioned
lines

trunk

Eastern

(Balti-

f___

.ntt.r„„u0

mcric

how

mv

six

iommon

LrtSswS
stock selec-

now my six common siock seiec

ctorcpt;

Eastern anthracite roads (Jersey tions shape

up in

relation to esti-

Central, Delaware & Hudson,) D L mated 1953 and 1954 earnings, the
& W, Lehigh Valley and Read- latter

assuming

year-to-year

a

Great Northern (iron ore).

specialty

carriers

as

Particularly,

the

Be- general good quality of the above

gressive and relatively young men
into the top managements of many ucts in their traffic mix, the L & estimated

railroads, although an intangible
rpsnltinff

in

N

:*i^£wments'"InTraffic
andCfinances°Pera
Personnel

earnings for several years to come,

savings

amounted

mated'

at

(12%)

this

t0

ap_

The

million

$110

about

Southern

the

and

Railway

1953

and

prospective

lower 1954 earnings.

con-

manv

tinuing improvements in trainc

These

the

cause of the relatively high per- issues, price x earnings ratios are
centage of heavy industry prod- conservative in relation to both

(4) The influx of vigorous, pro-

is

considering

ITUm,!'1

'

JTj.ii!*.,
i-

i

.

Estimated

Estimated

,

1953

Market

,

Price—

V V•
i

8/36/53

Price

1954

x

Price

building, after

economists

fir

over

(6) The

Earnings

Earnings

Earnings

*Per Share

Ratio

Per Share

Ratio

6.5x

$12.60

91%

$14.00

Atlantic Coast Line—

921/2

16.50

5.6

14.85

6.2

4.2

tKansas City Southern

42

11.00

3.8

9.90

Seaboard Air Line——

40%

9.25

4.4

8.33

4.9

Pacific——

411/4

7.85

5.3

7.07

5.8

1

194%

16.00

6.5

14.40

7.3

I

Southern

Union Pacific
*

Estimates

by Standard

& Poor's Corporation.

fSystem, incl. Louisiana

Arkansas.

favorable attitude

more

private

towards

enterprise gives promise of more

/

a

Railroads

cf 0'is^ I

Net Income

(Millions)

1st Half

1953

Year

$418

$310

507

514

$925

$824

2nd Half

Farm income is

ning well below last
Year-t

Year,
*

finally is showing signs of

year,

topping off.

Change

-f 34.8%

sales

tural

1.4

—-

resultant
of

goods,

*Estimates

by Standard

12.3%
&

Poor's

Cor

poration.

The

1953

would

set

estimated

net

income

all-time

an

record

notably

durable

becoming hard to
burner
many

on

agricul-

has

credit

for

goods

and

move

reached

consider to be

iy high level.
tures

effect

a

implements, to the farmers.

Consumers'
12 Mos.

with

year

depressing

run-

arc

con-

plant

especially

roads,
relief.

There

of

is

rail-

the

regards

as

rate

basis

some

for

hope that the "time lag" hill (pro-

for

viding

faster

the

by

action

Interstate Commerce Commission
on

rate increase applications) will

be enacted at the next session of

what

Congress.

It will be recalled that

dangerous-

a

the delay

in obtaining rate relief

Corporate expendi-

new

regulation

equitable

equip-

and

in

the

wake

material

of

rising

and

wage

railroad

penalized

costs

high, surpassing the wartime peak

ment,

of

ally inflated by the tax advantages

tionary period following the out-

$897 million reported in the fab-

of

break of the Korean

ulous

ably have reached their peak this

million

$902

boom

in

year

1952

of

and

,1.929.

the

The

projected year-to-year decline of
only
come

1%

in

is

also

second

half

heartening

which

five-year

been

artifici-

amortization,

prob-

earnings

(7)

in-

With

supply

civilian

goods

military

and

in

ample

production

prices

apparently past its peak, there is

panied

increasing

in

omy,

and

dustry,

the nation's

particularly

operated

at

heavy

forced

during the balance of the
*A

econ-

in-' what

draft

y^ar in

by Mr. Wilson presented as
part of a Symposium on the Markets be¬
fore,
the
Association
of
Customers'
Brokers, New York City, Aug. 27, 1953.
paper




can

public

measures

take

downturn

to

in

is true that
next

year,

a

discussion

the

combat
business

government
any

best advertised

probably
in

sharp

activity. It

recession, if it

will

of

comes

be

the

history. Never-

such

that

provided

in

1952,

period

industries

lowing the end of the steel strike
July,

severely

A

modity

year.

fol-

net
as,

have

by

gross

growing

a

infla-

the

in

war.

stable

of

corn-

benefits

regulated

the

railroads,

as

it

is

not

material

revenues.

indications

falling off

that

the

are

in-

flationary excesses of the postwar
period
over a

are

being

liquidated

and

period of time costs should

stabilize at moderately lower lev-

els.

In

the

late

1920s,

INVESTMENT

railroad

BANKERS

Established 1925

accom-

There

7.3x

Atchison T. &c S. F

year.

Washington

*n

x

Earnings

used

dealers.

with

up

and

new

level

being

nQW

branch

of heavy industry railroads until iiy declining transportation ratio

sucb

Why the underlying fear on,tteproximately $80 million (10% of
part of the lailroad investor at
by the fourth quarter. Automobile net income) in 1952 and are esticurrently

no

the 1954 outlo°k is better elan- (Seaboard Air Line).

year's prospects to an appreciable
:
$139 million in 1932. At this point. dr°P in traffic and earnings in ana^nances,
it should be noted that the per1954. Various clouds are appear(5) Tax savings from five-year
centage
decline
in
the
railroad log on the economic horizon. Steel
amortization of defense facilities
averages in the bear market years, supply appears to be coming into should
be of maior benefit to
1929

or

C S UmP (Atlant,e

[,ore' a?Pear 'he cou,r.se of

caused by coal or steel strikes, the

factor

.

little

Very

sodden drops in revenues such as ing), the Pocahontas roads, and decline of 10% in each case.

of

year

(1)

mileage and a small volume of
and roads Passenger traffic
(Kansas City

~

costs through

over

equities of roads which possess
or
more
of
the following

characteristics:

(3) Railroad accounting depart- more & Ohio, Erie, New York
ments are achieving an eyer-im- central and Pennsylvania), the
control

Rails

this "guesstimate" is based

the national average

the

pr0gram

proving

of

on

V/o\ Thp mndprniyntinn

the

course,

Selection

whose traffic is heavily dependent Southern).
upop the cyclical durable goods
(2) An above-average growth
(coal, iron and steel, building ma- territory (Southern Pacific),
terials, etc.) will probably suffer
(3) Long average haul and conmore severely than carriers with seqUent
low
terminal
expense
better diversified traffic compo- (Atchison).
sition. The capital goods indusAhnvpnvpr
«P financial
tries, except for the brief readAbove substantial non-railjustment of 1949, have not had a
?TT„fon Pacific)
real shake-out since World War road income (Union
).
II, and, in view of the factors pre(5) An abnormally heavy dus
viously enumerated, would seem temporary maintenance program,
overdue for one. It would, there- which gives a "cushion" in the

others

maintenance

one

to

selecting railroad stocks for
investment, I would select

wa^has

Several impor100% dieselized and

and

1954

the

not fall more than 10%-15% below this year's record levels.
Of

S^s^m^r?q^ckrCe

multiple

uie

million

$897

many

factors,

net income of Class I carriers will

years.

tant roads

these

of

ofoper-

tremendously

progressed

at

year

months pndpd

12

compares

averages

1932*tows' and"the fact"that
net

the

V| J ffmls

for the

^
ivtif

T

for

earnings

is

the

in

Dieseiization

light

what is the outlook for railroad
earnings in 1954? My guess is that

~

j

earnings back-

aVprafrp

Ju*e ^ ig5*

also*, remember
shudder the sickening drop

a

been

railroad inves-

many

way

Year
year

in

investor

roiirnari

$9084

will

he

93%

of

million

average

our

for
tor

,

in'-

of $124

defici^
50,

Low
LOW

low

£finr| I0

averages

Class I roads was transformed

1938.

New

new

a

T,

*

over

at

of 112.21 reached in late January,

re

deeper

in3?Q^f lift* mniinnfni
a

carloactings in
of August

weeks

rail" 99'47> 1,A% below tha 1953 high

I

slumped 68% from the 1936 highs

to

have

Guide
In

the

In

.just

avaraSe 0t 2U leading issues, mak-

a

36%

of

Class

of

the
Searching ,the

w,

1952

reports

with

ground, we lind railroad stocks, Raijway js an excellent example
as rePresented by the Dow-J ones 0I llje savings realizable from such

the

from
1949

decline

'income

that

calls

three

With this bright

railroad

of his memory, he also re-

cesses

roads

Moreover,

nails
Rails

1948 to the lows of the

year-to-year
net

not

37%

dropped

average

highs of

the

has

Dow-Jones

the

1

cellent

investor

that

seen,

above

earnings

there

15% Reduced

Earnings Expected

of sharply de-

economies since the

"n °?1fol9ightlty ,bel°W, th'1 6X"
1952 post-strike level.

-

earnings

railroad

tne

Class

of

Not More Than

are

first

in 1954. This nypothetical average
ten

July

of

to

floor

35%

ran

and

in

previously

income

net

to

other

period

comparison

year

tors:

high

new

a

commutation.

of

are rapidly approachcoming ing that point. These savings have
uniformly showing been particularly helpful to the
substantial
increases
over
the large Eastern trunk
lines, such as
comparable
1952
month,
when the Erie, New York Central and
traffic
and "earnings
were
ab- Pennsylvania, which suffered parnormally depressed by the steel ticularly from the slump in heavy

breath for the

a

half

railroads

Industrial

of,last year.

have

we

first

bated

reached

postwar

quarter

As

the

parlor waiting
with

the

of

position

several basically constructive cievelopments wnich are apparently

fact. the Federal Re- ignored by

Production
for

In

clining traffic,

.

Index

the

be

.1949, tne last

by the two months'

Board

serve

simile,

will

decline?

a

the production

up

reces-

a

in inves-

the railroads in the event of such

,

order to make

10n 0

investor

use

is

,

mes,

ex-President,
other

more

is becoming rooted

tors' psychology and we

S. WILSON*

Dept.,

7

(819)

The Commercial and Financial Chronicle

...

Members New York

Stock Exchange and Other National

Exchanges

UNDERWRITERS and DISTRIBUTORS
of INVESTMENT
BROKERS of BONDS,

Private Wires

•

SECURITIES

STOCKS, COMMODITIES

Home Office: Atlanta •

Phone LD-159

&

The Commercial and Financial Chronicle..
8

Thursday, September 3, 1953

(820)

Japan Mail Steamship, Mitsukoshi, and Japan Cement, and a
tabulation of investments by Foreigners in Japanese Stocks.

Dealer-Broker Investment
is

COMING

142)—

(No.

EVENTS

Smith, Barney & Co., 14 Wall Street, New York 5, N. Y.

Corporation—Analysis—Vietor, Common, Dann & Co.,
Ellicott Square Bldg., Buffalo 3, N. Y.

Polaroid
482

Recommendations & Literature
It

Company—Bulletin

Railroad

Central

York

New

investment

In

Field

i

Lerner &

understood that the firms mentioned will he pleased
to send interested parties the following literature:

Company—New

Cement

Riverside

analysis

C-20)—

(Report

(Chicago, 111.)

Sept. 11, 1953

Co., 10 Post Office Square, Boston 9, Mass.

Municipal

Safeway Stores—1953 semi-annual report—Librarian, Safeway

annual

cago

Stores, Incorporated, P. O. Box 660, Oakland 4, Calif.

Club

Bond

field

day

Chi¬

of

Knoll-

at

wood

Club, Lake Forest, 111.

Sept.

15, 1953

Salem-Brosius, Inc.—Analysis—Graham,, Ross & Company, Inc.,

Y°rk—Descriptive

Futures Market in New
booklet—Commodity Exchange, Inc., 81
the

and

Burlap

Broad Street, New

&

Mining Stocks—Data—Kippen

and

Oil

Inc., 607 St. James

Company,

Note

Canada.

Dame

West,

& Co., 221

Co., 132 St. James St.,

National Security Traders Asso¬
ciation 20th Annual Convention.

Club.

Profit Sharing

Notes

NSTA

Fixed Pensions—Booklet—Kidder,

vs.

Peabody & Co., Dept. CF, 10 East 45th Street, New York 17,
N. Y.
Also available is a booklet entitled Balanced Retire¬
ment

Sept. 17, 1953

nual

Outing

Country

Stocks—Analysis—Geyer & Co.. Inc., 63 Wall St.,
5, N. Y. Also available is a tabulation of Insur¬
for the six months ended June

New

York

ance

issues
way,

as

Bank

Stocks—Comparison and analysis of 17

of June 30,

1953—Laird, Bissell & Meeds, 120 Broad¬

City

showing

up-to-date

an

com¬

parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation

a

period —
Street, New

Front

Retail Trade—Brief
du

analysis in current issue of "Gleanings"—
Pont & Co., 1 Wall Street, New York 5, N. Y.
issue

same

are

discussions of Westinghouse Elec¬

tric Corp. and Douglas Aircraft Co. and

a

list of switch sug¬

gestions.

&

and

McKinnon, 11

Wall

Street, New

York

5, N. Y.

Investment

—

Circular

—

American

Investment

tonio

the

of

re¬

port—American Investment Company of Illinois, Executive
Offices, 1112 Ambassador Building, St. Louis 1, Mo.
American
Broad

British

Natural

two

are

Bond

all available during

Compkny

Ltd.

—

Memorandum

—

J.

as

Alleys

Bowling

Swimming Pools, Outdoor Ice

glass enclosed

Sporty 9 hole Golf Course with

a

will

be

Tournament time for

it

Ladies and Gentlemen. Ice Skates
of Bowling shoes

number

of

addition to the

evening in

every

open

both

limited

A

rented.

are

the

For

more

experienced

Trap,

Cleveland

Analysts

will

There

Liquor
a

Cycle Corp. — Memorandum
Seventeenth Street, Denver 2, Colo.

Lighting &

Organiza¬

AD

Boettcher

&

Co., 828

5, N. Y.

the

taken

Lift

Friday

on

weather

time

Scott

provide that Liquor

Stock

Exchange
Meet¬

Investment Bankers Association

daily except Sunday. Bottled

10:00 A.M. to 1:00A.M.

only be sold by

of America Annual Convention at

may

about

the

mile from Sun Valley which

one

Hollywood Beach Hotel.

June 9-12, 1954 (Canada)

good stock of Bourbon and Scotch at slightly higher than

Investment
of

prices. A liquor permit costs fifty cents.

&

Co.,

120

Forgan & Co.,

Street, New York 4, N. Y.

half

a

Lou

are

a

privilege

great

and

pleasure to

Walker, National Quotation Bureau,

page

not

defending

most sincere

our

the inside front

on

only supports

a

Dealers

Canada Annual

Giles

mention the

fellow member

our

cover

of

our

Association

Convention at

our

you,

Lou, as

closing to date is $18,000. Reports reach

for

1953.

You

I the NSTA with your

years

sociated

Eisele
&
King,
Libaire, Stout & Co., 50 Broad¬
way, New York City, members of

of

our

the

;
me

your

that

some

of

Stock

Exchange.

page

10

trading

Joins Hamilton Managem't
.

on

York

department.

local affiliates through

Continued

N'ew

Olifiers & Hilhnan in the

advertisements in the Convention Year-Book.

brief analyses of

with

He has recently been with Frazee,

have not yet sent in their advertise¬

supporting

are

one

King Firm

Giles Montanye has become as¬

organization financially—he is

business. We recognize

Montanye Joins

Eisele &

Convention

partners in the financial industry.

supporters of past

ments

Mitsubishi Metal Mining—Analysis in
"Weekly Stock Bulletin"
Nikko Securities Co., Ltd., 4,
1-chome, Marunouchi, Chi-

always

Security Traders Association of New York. He has again

Our

Limited—Analysis—Glore,

Also available

of

of Governors

Nov. 29-Dec. 4, 1953

always out front championing our cause and spends much of his

Broadway, New York 5, N. Y.

yoda-ku, Tokyo, Japan.

a

is

issue.

Company—Bulletin—Montgomery,

40 Wall

Ski

(Louisville, Ky.)

ing.

only be purchased at State Liquor Stores. There is

of Lou

name

of

Power—Memorandum—Josepthal & Co.,

MacMillan & Bloedel

the

13-16

LIBBING
It

120 Broadway, New York1 5, N. Y.

Kendall

on

Regional

Jasper Park Lodge.
Conklin

Co.—Memorandum—Shearson, Hammill & Co.,

Wall Street, New York

Houston

—

Laws

State Store at Ketchum

tion, 100 Broadway, New York 5, N. Y.

Watch

ride

a

Security

of

Lakes

(Hollywood, Fla.)

may

average

14

be

Great

Firms Board

Ladies and Gentlemen and prizes will be awarded.

also

the

(Cleveland, Ohio)

Society

Association

is sponsored by the Investment Dealer's Digest. It is

State

Idaho

carries

Gruen

Oct.

Friday afternoon there will be an Amateur Ice Skating

to both

open

in

Conference.

rented.
On

meeting

officers

of

Hotel.

Pistol shooting and guns are available for rental. Trout

Rifle and

election

Oct. 13-14, 1953

Skeet,

Association

annual

Crystal Room of the John Bartram

available but

is

there

sportsman

an¬

(Philadelphia, Pa.)
Traders

Philadelphia

and

can

suggested players bring their own.

is

Beaunit Mills.

Golden

in

Anthony

(Philadelphia, Pa.)

Investment

Maine Power Co.—Analysis—Ira
Haupt & Co., Ill
Broadway, New York 6, N. Y. Also available is a review of

Eastern Industries, Inc.—Bulletin—de Witt

St.

day at the Huntingdon
Valley Country Club.

t

H.

Central

An¬

of Philadelphia

Sept. 30, 1953

well

as

the drink from

Oil

San

meeting

field

nual

Valley.

Club

18 tees. Six

tlemen

Street, New York 4, II. Y.
American

Room,

Sept. 25, 1953

It is not necessary though to confine

Sports.

days at Sun

There

Co.—^Memorandum—Hirsch & Co., 25

Crang & Co., 40 Adelaide Street, West, Tor.onto, Ont., Canada.

of

dinner

Tapestry

permitting.

Gas

(San Antonio, Tex.)
Women

annual

Skating, Croquet, Horseshoes and Tennis for both Ladies and Gen¬

Hardy & Co., 30 Broad

Illinois—Semi-annual

Hall.

Hotel.

Outdoor Activities to Friday they are

Show which

Company

Constitution

Sept. 22, 1953

Bowling Tournaments.

Outdoor

and

four

the

be

Street, New York 4, N. Y.

and

of all the facilities available.

fishing in adjacent streams and tackle and other equipment may
Alleghany Corporation

Hotel

Meeting at the Stab¬

Friday, September 19th has been set aside as a day for Ath¬
letics

be

Supermarkets—Analysis with particular reference to Safeway
Stores, First National Stores, National Tea, and Winn &
Lovett—Thomson

ler

everybody should

and Cocktail parties have been planned as

Reception

Golf

as

your

Stocks—Comparison of 11 largest Phila¬
delphia banks—Stroud & Company, Incorporated, 123 South
Broad Street, Philadelphia 9, Pa.

Francis I.

well

13-year

Bank

Also in the

usual

The

Hills

Association

Bankers

79th Annual

Valley.

Sun

take advantage

to

Bureau Averages, both as to

market performance over
Quotation Bureau, Inc., 46
York 4, New York.
and

National

Phiiladelphia

prepared

come

American

regarding

members

written

has

There is much to be done at Sun Valley and

Over-the-Counter Index—Folder

yield

facilities at

wonderful

the

New York 5, N. Y.

Committee

Convention

NSTA

Forest

(Washington, D. C.)

EdwardJT. Welch, Sincere & Co., Chicago, Chairman of the

30, 1953.
York

INC.

ASSOCIATION,

TRADERS

SECURITY

NATIONAL

the

at

Club.

Sept. 20-23, 1953

Stocks operating results

New

(Rockford, III.)

Rockford Securities Dealers An¬

Program.

Insurance

Asso¬

ciation Field Day at the Wakonda

5, N. Y.

York

(Des Moines, Iowa)

Iowa Investment Bankers

Bonds—Bulletin—Bache & Co., 36 Wall Street,

German Dollar

Flexible

Sept. 17, 1953

New York 5, N. Y.

120 Broadway,

New

York Hanseatic Corp.,

Dollar Bonds—Analysis—New

German

party

Sept. 16-19, 1953 (Sun Valley, Ida.)

5, N. Y.

York

party at the Omaha

Club. A cocktail
will precede Sept. 14.

Canada.

Que.,

bond

Country

Que., Canada.

Street, West, Montreal,

Montreal,

Beaubien

G.

L.

—

Bankers

Association of Omaha and Lincoln
annual

Memorandum

—

Zellers—Memorandum—L. S. Jackson &

Stocks—Review of 125 situations tabulated by indus¬
classification—Stanley Heller & Co., 30/ Pine Street, New

Common

try

Oil

YVestbourne

Street, West, Montreal, Que.,

(Omaha, Neb.)

Investment

Nebraska

reappraisal—Selig Altschul, 25 Broad

Street, New York 4, N. Y.

Western

Canadian

Street, New York 5, N. Y.

United Air Lines, Inc.—A

4, N. Y.

York

Beaver

82

(Special

-

to The

Financial

Chronicle)

-

DENVER, Cok>.—Clark N. Cram
has become associated with Ham¬
ilton
Management
Corporation,
445

We make good markets in
•

Public

385

TOR
A

•

COMPLETE

SET

FROM 1929

This

a

of

set

Chronicles is

Truster, Singer & Co.
2400

74

N.

Y.

Security Dealers Association

Trinity Place, New York 6, N. Y.




Three With Inv. Service
(Special

to

The

Financial

Chronicle)

1951

(Bound)

DENVER, Colo.—Walter M.
Jones, James C. King, and Robert
D. Waters have become associated

orders & inquiries invited

Members:

-

Street.

"CHRONICLES"

Industrial Stocks
Available at

your

OF

Natural Gas and
•

HA 2-

SALE"

Utility

Grant

Phone

or

Brokers office in N. Y. C.

Commercial
a

terrific

&

Financial

buy.

write Edwin L. Beck

REctor 2-9570

25 Park

Investment

Service

Corpo¬

With Frank Edenfield
for price

NY I-

376

with

ration, 444 Sherman Street.

Place, N. Y. 7

(Special

to

The

Financial

Chronicle)

MIAMI, Fla.—Nelson L. Samson
joined the staff of Frank L.
Edenfield & Co., 8340 Northeast
has

Second Avenue.

Number 5252... The Commercial and Financial Chronicle

Volume 178

(821)

buying reserves to provide for
purchase of such issues when they
can be
bought at more reasonable
prices.

Growth Stocks
By PAUL KENT*

stdck

common

time

Mr. Kent lists enterprises nnder

development and rapid growth,
experiencing normal growth, stability

are

authorities
at

are now

and

ness

which, for

think

that

ally

that

agree

we

crucial point in busi¬

a

have

we

been

gradu-

pricing
markets

our

during the la¬
ter

phases

the

ten-y

DEVELOPMENT

lowing stages of progress:
Development &

in

general
level

have
this

been

period

fully

of ad¬

interested in the

to be that this

the necessary adjustment
out
the
economy,
and

ever

by

and

coun¬

32;

yield

For

For

weekly at 5:20 to

6:50

6.2%.

from

26.

Dividends

&

Chemical:

1943.

Sylvia F. Porter

Machinery

Materials

Handling: Chemipals: Food Preservation; Packag¬
ing. Around 37; yield 5.4%. Down

through¬

from

56.

Dividends since

spent

Down

on

Price around 35; yield 5.7%
from

Dividends

46.

since

|
Owens Illinois Glass: For Glass:

Television.

Around

75; yield 5.3%.

Dividends since 1907.
89.

Down from

Pullman, Inc.: For Atomic

Electrical Equipment
Metal Fabricating

En¬

handling of

J.

concerned

K.

Lasser

money.

as

the

for

the

novice" and

Mr.

Three

leading

42;

Corp.:

Equipment.

yield

7.1%.

Continuous

For

Price

Down

dividends

Elec¬
around

from

since

80.

1911.

Automobiles

Joins Barrett Herrick
(Special

to The

Financial

author of

"Your

kinds will result in

and processes, increased
tion and lower costs.
We will have

are

In¬

Basically the

emphasizes

course

and

lower

costs.

growing population,
the rate of 2%

at

will

we

have

produc¬

million

to* seek

a

Lasser will

world

Out

"automatic

enable

much

at

Iron

Specific
to

for them.

ing

we

are

a

fast

materials

an

this

advantage

to

in

us

The

duce

(Special

"automation"

will

On

products.

wider markets
easier
more

the
in

Lower costs

of family fi¬
long-term estate plan¬

Wheeler

has

Marion

become

Joins Sutro & Go.

(Special

SAN

will

analyze

the

Pabst,

to

The

Financial

Chronicle)

JOSE, Calif.—William H.
Jr.

has

become

affiliated

a

war econ¬

on

Street.

He

was

formerly San Jose

securi¬ Manager for Davies & Co.

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

an

Telephone and Telegraph Company

Food

Preservation

Twenty-Four Year 3M% Debentures

Rubber Products

Photography
Home Appliances

mean

Dated

Due

September 1, 1953

September 1, 1977

Decline

Price 102.07% and accrued interest

Smelting

work, and better pay for
people.
An illustration is

Rail

Equipment

Wool

huge increase in employment
industry

Soap
Lumber

through mechanization and wider

Telegraph
The

Railroads

I suggest further that all of this
will be against the background of

Anthracite

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

Leather

perhaps a hundred years of the
"Pax Americana," similar to the

Manufactured Gas

Traction

Romanum, and the Pax Bri-

HALSEY, STUART & CO. INC.

Ice Distribution

tannica. We have been forced into
the

roles

peace

of

and

ternational
Investors
ested

in

keeper of the world

virtual

arbiter of

OPMENT

naturally

inter¬

which industries and ill-

dividual

companies

from

will

benefit

these

pects

interest

today

is

in

the

&

RAPID

GROWTH

and RENEWED GROWTH.

present
levels

22-year

sition of the various industries in

cycle.

They

move

•A

talk by Mr. Kent at the Annual
Summer
Business
Conferences,
Boston, N. H., Aug. 27, 1953?*

Babson
New




with obvious growth
pros¬
been bid up beyond

PHELPS, FENN & CO.
'

NEW

YORK

buying price levels. For

reason

we

BLAIR, ROLLINS &, CO.
INCORPORATED

recommend

strong

BACHE & CO.

HANSEATIC CORPORATION

AUCHINCLOSS, PARKER &
F. S. SMITHERS &
I

REDPATH

CO.

i

September 3, 1953

BAKER, WEEKS & CO.

GREGORY

INCORPORATED

WM. E. POLLOCK

SON

&, CO., INC.

WILLIAM BLAIR &. COMPANY

BACON, WHIPPLE &. CO.

SHEARSON, HAMMILL &. CO.

have

attractive

this

WEEDEN & CO.

SHIELDS &. COMPANY

market

Many well-known good quality
pects

WERTHEIM &CO.

buying

the
growth stocks of well-entrenched

stocks

SCHOELLKOPF, HUTTON & POMEROY, INC.

INCORPORATED

upper

advocate

we

strong growth pros¬
the present stage of companies that have weathered
growth of others. For this reason previous periods of business de¬
cline, particularly those that have
we
have/ maintained for many
done well in old lines
and are
years the Babson Growth Curve
of Industries.
On this chart we adding new ones in "rapidly ex¬
endeavor to place the present po¬ panding activities.
life

HALLGARTEN &, CO.

DICK &. MERLE-SMITH

CO.

L.F. ROTHSCHILDS CO.

At the

and

their

BEAR, STEARNS

in¬ groups in the periods of DEVEL¬

business.
are

Our

H.

affiliated

Packaging

re¬

con¬

indi¬

Chronicle)

—

Southern Bell

Glass Containers &

the 'automobile

Pax

Financial

Mich.

$30,000,000

Farming-Chemurgy
Handling

markets.

.

Janeway

and their impact

Growth

Materials

shorter hours,

and

The

Vending Machines

trary lit will create more jobs
through increased production and
new

is not

Bituminous Coal

will

not

announcement

Lighting

many

the

to

JACKSON,

Chemical Reduction

*

employment.

afforded

their

H. H. Butterfield Adds

Problems

and

tionary factors under

The

Renewed

many

respects.

be

in

Printing & Publishing

becom¬

program

will

Motion Pictures

market

"have not" nation in

a

raw

be

As

find

help

members

course

i

This

to

vidual problems.

Building

will

lower

clipper captains, we will have to
our
goods and take back the
raw
materials and
products of
and

418

omy

Retail Trade

sell

nations

Co., Inc.,

ques¬

reference

important inflationary and defla¬ with Sutro & Co., 55 North First

,

Banking

prices; and in the heritage Of the

-other

&

Mr.

William P.

mar¬

factories"

sell

to

us

Herrick

avoid

year-end investment procedure.

Textiles

year,

increased production,

our

:

discuss tax

Non-Ferrous Metals

^

kets for

—

Locust Street.

Paper

climbing

now

Barrett

~

Food

LOUIS, Mo.

May

logical
behavior,
with
H.
H.
Butterfield &
Co.,
pointing out the many psycholog¬
ical foibles confusing the market Jackson City Bank & Trust Com¬
place.
Taxation
will
be
fully pany Building.
weighed, with full exploration of
its impact on individual investing

ning will be thoroughly explored.

Young has become affiliated /with

ftadio

special need for
In spite of our

a

ST.

Stability
Cosmetics

products

new

how to

tax."

nance

Chronicle)

Wilfred

pitfalls and booby traps;

tions with particular

Porter,
Financial
Editor,
New
York "Post"; Eliot Janeway, busi¬
ness
trends
consultant, "News¬
week
Magazine"; J. K. Lasser,

decisions.

Agricultural Equipment
Telephone Insurance

authorities

an¬

associated with Mr. May in giving
the
course,
including
Sylvia

lecturer and

A.

ties

investment; Miss Porter will
These suggest "investing do's and don'ts

advisor,
security
alyst, trustee and executor.

realism

Down from 69.

Underwood

Steel

the prospects are
larger outlays for this pur¬
pose.
New technologies
of
all

all

common

come

tronic

Pipelines

this country and

to

include the layman as well

1867.

Electric Utilities

research in

with the

terprises: Fluorocarbons. Around
40; yield 7.5%. Dividends since

Petroleum

seen.

Eliot Janeway

guidance

professional customers' broker, in¬

1935.

Lion Oil: For Chemicals: Chemurgy.

Machinery
Rayon

barring

ment

vestment

Drugs

aft

Price around 14; yield

Office Equipment
Natural Gas
^

;

for

the

offers practical invest-

p.m.,

Printing
Plastics:

Photography:

Detergents

research, mechanization,
Last year $3^

was

Investing Problems Today," by A. Wilfred May,
Economist, beginning Thursday, Oct. 8.
The series,

and

which meets

Dividends without

Inc.:

Down

Food

Controls

Normal Growth

automation.

billion

Editor

Current

1936.

This growth will be made pos¬
sible

since

Alloys

III, we are likely to
greatest growth period

the

have

7.1%.

Aluminiim

War

enter

10-weeks'

a

Belt: For Materials Han¬

Around

Electronics.

Aviation

pared with what lies ahead. After

we

announces

dividends since 1939.

Chain

Daystrom,

Television

try is just getting started. Our
accomplishments of the past will
seem only small
beginnings com¬

World

Research

price around 56; yield 5.4%. Down
from 1946-53 high of 68. Continu¬

Chemicals

are

seems

Social

Electronics:

Television.

Powdered Metals

Ethical

are

more

outlook
beyond. As we take a
longer look ahead the logical con¬

clusion

Enterprises:

Aviation:

Processes:

Synthetic Fibers & Plastics
Air Conditioning
and

industries;

justment and

Atomic

Electronics

Paul Kent

de-

about

for

interruption since 1902.

Gas Turbines

expected.
Investors
warned

School

"Your

course,

following:

Down from 42.

Automatic

veloped in
many

mind

New

Bendix Aviation: For participa¬
tion in growth prospects for

Prefabricated Housing
Rare Metals & Earths

•

Partic¬

have

the

as

in

'

•

The

"

the

ularly since
buyers' mar¬
kets

have

dling.

Isotopes

inevi¬

table.

issues

We

Titanium
'•

price

is

or another,
already well de¬

one reason

levels.

by A. Wilfred May, in association with Sylvia Porter, Eliot
Janeway, and J. K. Lasser.
'

this
with

potentialities

Fluorcarbons

substantial
decline

Rapid Growth

at

issues

Atomic Enterprises

further

a

such

ous

of

ear

growth

RAPID

GROWTH; NORMAL GROWTH;
STABILITY; and then either into

inflationary
binge,, and
that

&

periods of RENEWED GROWTH;
or DECLINE.
At present we place
the principal industries in the fol¬

ourselves out
of

through the first three periods of

other

available at

are

flated

the stock market. Many

purchases

are

exceptional

and decline.
Most

there

Investing Course Announced

10-week series to be given at New School for Social Research

However, for funds allocated to

Investment Advisor, Babson's Reports, Wellesley Hills, Mass.

along with those that

New

9

H. HENTZ &. CO.

STERN BROTHERS &. CO,

The Commercial and Financial Chronicle

10

.Thursday, September 3, 1953

..

(822)

Continued from page

Since

E. JOHNSON

H.

.

—

Marshall, Seattle, advises us that Puget

will again be recorded among our adver¬

Sound Power and Light
tisers

Philadelphia bank stocks have been attracting increasing in¬
during the past several years and because of

that

developments in

area

in

the

issue.

Convention

from three main but unre¬

In the first place there has been a

lated factors.

widening interest

INVESTMENT TRADERS

THE

ASSOCIATION OF PHILA.

.

outside of New York City.
and election of Officers and Governors
Traders Association of Philadelphia will be

The Annual Meeting

long period of time bank stocks in the major money
practically the only issues available to investors who
desired to purchase bank shares. Issues in other areas were rela¬
For

centers

Chairman.

Advertising Committee

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

quite some time.

in desirable bank stock investments

SMITH,

B.

HAROLD
NSTA

should continue to do so for

.This interest has arisen primarily

SSyth & Co., Inc.

tions today.

Bank Stocks

vestment attention

certain

Gorley With

closing is fast approaching, send in your space reserva¬

our

Sid Sanders, Foster &

This Week

El'w, M.

.

.

NSTA Notes

Bank and Insurance Stocks
By

8

a

The

of

were

Investment

tively small and ownership was closely held. This restricted mar¬
ketability. In recent years, however, wider distribution of owner¬
ship and the necessity of raising additional capital, has created a
more active market for shares in some of the bank

Edward M. Corley

broader and

stocks in

cities other than New York and

In this connection Philadelphia seems

to be in

a

Anthony & Co., as man¬
ager of the corporate bond trading
department.

Announces Purchase

factor in this connection

L.

C.

Joseph

Wallin-ford

Edgar

Dorsey

R.

A.

Christian

Averell

Harrirr.an, W.

E. Roland

Joseph P. Ripley
announced that Harriman Ripley
and

Harriman

factors

banking institutions and has undoubtedly been one of the
stimulating interest in shares of institutions in the area.
second

Ripley Go.

Harriman

Steel

plant nearby presages a period of industrial growth of major pro¬
portions. Increasing activity means a population and trade growth
well in excess of normal. This, of course, should be beneficial to

A

been

recently
Tucker,

particularly

The construction of the large new U. S.

favorable position.

rejoined
Wall Street,
Corley has
associated with

Blyth & Co., Inc.', 14
New York) City. Mr.

the desire on the part of
pension and other fund managers to obtain diversification in bank
stocks. In general, banks in some of the smaller industrial centers
and merchandising areas of the country benefited by the deposit
growth over the past ten years to a greater extent than did institu¬
tions in the larger cities. This same factor has encouraged invest¬
ment managers to look for banks which are likely to benefit from
industrial changes now taking place.
been accelerated by

This trend has

has

Edward 1VL Corley

Chicago.

&

has purchased all the
shareholdings of the
family
in
Harriman

Co., inc.

remai

has been the rising curve

ing

of earnings on banks

Harriman

and

Rip.ey & Co. As a
outstanding shades

in Philadelphia. While rising interest rates
increasing loans have enabled practically all banks to report
an improvement in operating results, the showing of banks in the
Philadelphia area compares favorably with institutions in o,ther

owned

sections of the country.

;W 4'

%

1-3%. Actually, net cur¬
higher but taxes

Present
make

an

indications

that

are

equally favorable showing. This, together with larger
has increased the interest in bank stocks in the

held

dividend payments,

The third and
on

The

July 1, 1953, stockholders of the National Bank of GermanTrust Company approved a merger agreement with the
Girard Trust Corn Exchange Bank on the basis of a share-for-

Brennan,

&

the usual amount
by certain directors of

share exchange. This meeting attracted more than
of interest because the merger was opposed

the Germantown
Another

bank

and

attention
was the announcement by the Philadelphia National Bank that it
was acquiring, subject to the approval of stockholders and certain
regulatory authorities, the First National Bank of Conshohocken.
Of particular interest in this connection is that the Conshohocken

Ripley,

Stroud

Mundy,

&

Incor¬

Company,

Samuel

Treasurer:

elected for 2 years;

personal relations in the future.-

for 3 years; one to be

Six to be elected

three to be elected for 1

Sair.uel Gold Willi

year:

Ray Allen, H. A. Riecke & Co.; John Cantwell, Walston & Co.;
John

it is likely that banking changes H

the Philadelphia area will be followed bv an jnorposim*
of investors as well as individuals interested in significant banking

Mr. Ripley and his asso¬
look forward to cordial

pany by

Kehnedy, Yarnall & Co.

M.

of Governors:

Board

long range significance.

in¬
&

ciates. anu

porated.

approved by regulatory authorities remains to be seen. It could,
however, start the spread of Philadelphia banks into new area.
Developments will be watched with considerable interest, as a

Ripley

Messrs. Harriman ex¬
pressed their appreciation for the
successful operation of the com¬
the

Co.,

Edgar A. Christian, Stroud & Company,

G.

Mr.

with

present

Harriman

in

vestment

James

Seecretary:

at

as

Chairman, and Mr. Pier-

pont V. Davis, President.
With
the disposal of
this

Incorporated.

Montgomery County or in the adjacent county
to the Philadelphia bank. Whether or not this acquisition will be

Because of the foregoing

remain

for 1953-54:

se¬

will

management

The

curities.

Beane.

2nd Vice-President:

under¬

governmental

and

municipal

Muller,

Merrill Lynch, Pierce,

1st Vice-President:' Joseph R. Dorsey,
Fenner &

operate as heretofore as an

M. Byllesby & Co.

Charles L. Wallingford, H.

on

writer of and dealer in corporate,

Stroud & Company,

Co., presented the following slate

President:

bank is located in

result of its immediate and

of:

Kidder,*Peabody & Co., Chairman; Charles

Blyth & Co., Inc.; Victor Mosley,

Janney &

received considerable publicity.

development which received considerable

Room of the
be called to

Incorporated; John Hudson. Thayer, Baker & Co.; George

will continue to

under the Harriman
Ripley name at its present head¬
quarters at 63 Wall Street, New
York, and with offices in Boston,
Chicago, Philadelphia, Cleveland,
Detroit and Reading. And it will

Dinner will be served at 7:30. p. m.

Nominating Committee, composed

The

company

carry

Kennedy

M.

Sept. 30, 1953 in the Crystal
The business meeting will

sharp.

Floyd E. Justice,

in progress.

On

town

Hotel.

Bartram

order at 5:30 p.m.

possibly most important factor which has fo¬
Philadelphia, is the numerous bank mergers and

consolidations which have taken place or are now

Wednesday,

on

John

area.

cused attention

Samuel

James G. Mundy

earnings for the full year will

of the company.

stock

the

by 26% and absorbed a large portion of the gain.

rose

who

desirability of
management ownership of all of
the

with

agreed

before taxes was 19%

operating earnings

acceptable

family,

Harriman

the

to

initiated

was

by Mr. Ripley ar.d was

"r>

year.

in the similar period of 1952 or a gain of
rent

transaction

The

earnings was very evident in the first six months
According to the Federal Reserve Bank of
Philadelphia net earnings of third district member banks in the
first half of 1953 amounted to $25.9 million as against $22.4 million
current

company.

'

This gain in

of the

result, all the
of stock are
by the management of the

New York Hansealic

Carothers, H. M. Byllesby and Company, Incorporated; Jack

Christian.

Janney

& Co.;

Spencer Corson, Elkins,

Samuel Gold, formerly of

Morris & Co.;

Securities

ern

is

Inc.,

jiow

East¬
asso¬

Fahrig,1 Reynolds

ciated

&

trends.

William Doerr, American Securities Corp.; Harry

Stanley

Hanseatic Corporation, 120 Broad¬

,

Co.;

Chas.

Heward,

James

A.

Taggart

&

Butcher

Co.;

John

Sherrerd;

&

E.

Knob,

Drexel

&

Jeffries,

Co.;

McCullen, Hendricks & Eastwood; Jack Murphy, Hornblower
Thomas

Weeks;

Active

O'Rourke,

Carr,

O'Brien

Company;

way,

&

Clifford

stock

G.

&

Co.; J. Leslie Rogers, Blair, Rollins &

Co.;

Russell

(Special

Schaffer,

I.

duPont

OUR

&

ANALYSIS

NEW

o/

HAVEN,

M.

17

N. Y.

City

Bank Stocks
Will

STROUD & COMPANY
Incorporated

be sent on

Allen

as

an

offices

BROADWAY,

is

investment
1032

at

Conn.

—

engaging in

Arthur

business

counsel

Chapel

from

Street.

Co.,

121

He

Southeast

was

formerly

request

NEW YORK 5, N. I.

to

The

Financial

LOS ANGELES,
R.

Ball

has

added

The

Financial

Chronicle)

H.

Moore

is

now

associated

with

King Merritt & Co., Inc. of New
York.

"...

Retires From Firm
Gordon

H.

Ullrich

retired from

partnership in McLaughlin, Reuss
& Co., 1 Wall Street, New York
City, effective July 31.

Gross, Rogers Adds
(Special

to

He

formerly with Eisele & King,
Lxbaire, Stout & Co.

Members New York Stock Exchange
Members American Stock Exchange
120

&

WILMINGTON, N. C.—Maurice

was

Laird, Bissell & Meeds
,

Chronicle)

With King Merritt

Opens Counsel Firm

MID-YEAR

COMPARISON

of 11 largest Philadelphia Banks

Financial

(3 years):

(Special

Send for comparison

The

with A. M. Kidder & Co.

Gratuity Fund

Joseph Zeller, Bankers Securities Corp.;

BANK STOCKS

to

Second Avenue.

Company.

PHILADELPHIA

their

has become affiliated with Francis

Weller, Arthur L. Wright & Co.; George Willis, C. C. Collings &

Trustee of the

in

City,

department.

MIAMI, Fla.—Richard T. Schutt

Schaffer, Necker Co.; Roy C. Thomas, F. P. Ristine & Co.; John
Maintained in at!

York

New

Joins Du Pont Staff

Remington, Woodcock, Hess & Co.; Willard Rice, Eastman, Dillon

Trading Markets

York

New

bank

Wm, J.

the

with

Chronicle)

Calif.—Richard
to

the

staff

of

Retires From Firm

"

,

PHILADELPHIA 9

Telephone: BArciay 7-3500
Bell

New

York

•

Pittsburgh




•

Allentown

•

Lancaster

•

Atlantic

City

(L.

A.

Teletype—NY

Gibbs,

Manager

Gross,

1-1248-49

Trading

Dept.)

Specialists in Bank Stocks

Samuel
Rogers, Barbour, Smith &
Gronick
retired
from
Co., 559 South Figueroa Street, partnership in Garfield & Co., 120
members of the Los Angeles Stock Broadway,
New York City, on

Exchange.

Aug. 31.
i

Volume 178

Number 5252

The Commercial and Financial Chronicle

...

(823)

Production Schedules Slowing Down

From

Washington
Ahead
of the News

CLAREMONT, N. H.—Your correspondent and his wife have
vacationing in New England, enjoying the ocean breezes
when there were any, the cool mountain breezes when| there were
been

and always the delightful scenery. Also we have been trying
to find out what people outside of Washington

any,

thinking.'

are

This

State

along with Massachusetts is
talking a lot about the coming of electronics
industries which are creating additional em¬
ployment; in short giving these States quite a
shot in the arm against the pessimists who
decadent.

New

Englanders

noted

are

garrulous,

servatism
for

the

as

late

Will

they

economic reforms

of the modern

any

that the migration of the

textile

as

industry

responsible

was

40-hour week.
textile

from this section

away

the

for

agitation which led

industry wanted to equalize the lower

the migration of the

tqxtile industry.

illustrious National statesmen.
Webster to whom there

time in

tor George Moses was

Republican

leaders.

to

come

while still
he is third
tion

as

be

Going

lower living

wages,

In the

of the

one

Chairman

the

of

Styles

over

as

the State.

It is

a

succeeded
in

men

giving him

him

gress,

a

public

that

of

a

Con¬

is what to do about the situation in the state set-up of the

Federal Security Administration.

There

are

13

there

or

employes, 12 Democrats covered by Civil Service and
lican not

so

covered.

the staff is reduced

were

13

Repub¬

one

Under the economy drive from Washington

by

one

in

lower

Some purchasing agents are

upswing
the

Fall and

a

nue

view

is

a

viously

ther.

Materials
very
Summer.

Prices
show

the

has

management

inventory conscious
'

to

K.

Brust

is

with

Stock

Stein Bros. & Boyce

C.

To Admit Lanahan
BALTIMORE, Md.—Stein Bros.
& Boyce, 6 South Calvert Street,
of the

York

New

Stock

Exchange, will admit W. Wallace

Calif.—Charles

with First

partnership

Lanahan,

Spring Street.

Jr.

to

Sept.

Cali¬

fornia Company, Incorporated, 647
South

City,

York

Chronicle)

The Financial

now

York

New

the

Mr.

Lanahan

10.

was

on

for¬

merly with Merrill Lynch, Pierce,
Fenner

&

Beane.

With Mitchum Tully
(Special

to

Chronicle)

The Financial

William F. Goulet

SACRAMENTO, Calif.—Gifford
A.

Thomas

with
J

has

affiliated

become

&

Tully

Mitchum,

William
Goulet

Co., 926

passed

Building.

F.

&

Goulet,

Co.,

of

partner

York

New

City,

away.

according to the survey,
tendency to level off or

a

soften.

and
pre¬

members

down

are

1

were

of

with

York

Collins

and

LOS ANGELES,

to reduce fur¬

pressure

New

New

Street,

Exchange. Mr. Yunker for a num¬
ber of years was with Hemphill,
Noyes & Co.

reve¬

With First California

Unworked

inventories

again, with

Ryan

(Special

September survey may show
definite trend.

in

associated
J. Devine & Company.

by

supported

slight movement into

more

Co.

&

Messrs.

hand-to-mouth to 30-day bracket.
The

state, municipal and

Wall

1

members

Winter

policy of
forward buying—only 24% in the
90-day column—while there has
a

sociated with A. M. Kidder & Co.,

an¬

Park,

bonds, with offices at 70 Pine

Courts

present short-range

been

of

Street, New York City.
Mr.
Park
was
formerly

be slow in develop¬

may

which

Many recent nominal in¬

creases

looked upon as market

are

competition that has been devel¬

serious

a

Production

life

national

sessions

1952.

trending

are

in

ers

lower—

are

formation

This advertisement is neither

an offer to sell nor a solicitation of
offers to buy any of these securities.
The offering is made only by the Prospectus.
'

feelers which must meet the sharp

leading voice

man

in between

now,

June,

the opinion

ing,

the

Ryan, Inc., underwriters and deal¬

and

Committee is
a

1952.
of

this

Aside from that, his posi¬

Appropriations

commentary on the life of

Robert C. Swanton

22% of the individual reports, also
the
largest number since June,

of

in party councils.

problem confronting him just

since

become

of the small group of

Bridges

as

many

reported by one-third
the Survey—the largest num¬

Daniel

men

Ryan and Leonard J. Collins

antici¬

But in

was

As President pro tern of the Senate

well

as

Roswell Yunker has become as¬

Darragh A. Park, Jr., James J.

.

nounce

material

mighty

always been

one

influential

most

Senate

responsibility

tre¬

Coolidge and Hoover days Sena¬

nationally known,
Senator

A

some

back there

way

in line for the Presidency.

tremendous

present

for the loss.

up

monuments all

are

his early 50's.

in

early

Now the electronics indus¬

Washington, its Senators have

distinction and influence.

has

the

to

small state, New Hampshire has furnished

a

the

accomplished but it didn't stop

was

try, from what I hear, bids fair to make
For

as

longer hours of the Workers in the South.

mendous humanitarian result

my

far back

New Englanders confronted with the union in their

standards and

as

Roswell J. Yunker

Formed in New York

ty

has

been

schedules

to take place in this

ever

Au¬

condition

ber

responsible

the

Park, Ryan, Inc. Is

pickup

of

unwittingly

were

the

New

a

Bargeron

policy

months.

past five

pated. Order backlogs

Carlisle

of

of

continuation

a

—

conservative

very

Pm

coverage

Com¬

had

New England generation are aware of it,

20's

bracket
m■

Conn.,

brisk

It is not generally known and few, if

country.

of

the

not

con¬

Policy

is still pre¬
dominantly 60 days and under,
leaning toward the low side of the

chases,

business

Rogers

regards the New Englanders'

of the greatest

one

Pur

Future

of industrial

wrote about him.
as

Director

gust,

for

those who knew him well knew him to

And

Swanton,

pany,

taciturnity and conservatism, the former
was exemplified by the legends
Calvin Coolidge. As a matter of fact,
in this respect he was a delightful fakir be¬

once

C.

finds

around

quite

Robert

Haven,

trait of which

be

is

Repeating

their

cause

Buying

Chairman

Arms

was

At A, M. Kidder & Go.

A composite opinion of
purchas¬ the
country.
The
demand
for
ing agents who comprise the Na¬ skilled workers is easing off in
tional Association of
some areas.
Flow-back to school
Purchasing
Agents Business Survey Commit¬ of Summer employees is seasonal.
tee,
whose

Wine hester

continually grumbled that New England

Roswell Yunker Is Now

Lower order backlogs and declining production schedules cited
in report of National Association of
Purchasing Agents.

By CARLISLE BARGERON

11

oping

for

several

months.

NEW

ISSUE

September 3, 1953

The

only noticeable effect of the Ko¬
rean

peace

maneuver

employment,
doWn

bit

a

which

appears

has

in

general, but
spotty, over the country. Over-all,
the industrial picture is not bad
the

for

slower

end

than

$35,000,000

turned

not

—

of

August—a

other

postwar

little
years.

Duke Power Company

Purchasing executives apparently
plan to be ready for a jump or a
slump and, until a more definite
trend develops,
servatively.

and it has to be the Republican. Try to

First and

Refunding Mortgage Bonds

VA% Series Due 1983
'

to

operate

con¬

.

Dated

/

■"

-'

September 1, 1953

r...

'■

Due September 1, 1983

Commodity Prices

explain this to the Republican party workers, those hardy souls
who go out and ring

door bells and get out the vote in

an

election,

and it can't be donev
This problem of

the Senator's is

a

problem that confronts the
matter of patronage to

keep their party machinery together but in the matter of getting
trustworthy and loyal subordinates in the vast bureaucracy that
over

or

because

it, the so-called "liberals" would like to get his scalp next year.

He is up

for reelection to his fourth term.

this early are resorting to the

usual

stability.

smear

These "liberals"

even

tactics of their trade.

real danger. The Senator's opponents, in fact, reflect
is

He

too

well

entrenched,

a

Moving about the State, talking casually with rank and

is

going

on,

you

hower's 'gblfing.

men

one

filej

whose business is to know what

hear considerable criticism
No

pickup in demand has
brought out a number of higher
quotations on steel-based items.

Copies of the Prospectus

However,

writers only in

of

buyers feel that
is market testing.

this

much
With

of

General

Eisen¬

with whom I talked felt strongly enough

chasing Agents are doing more
shopping around and ordering in

spften rather than to stabilize.

Eastman, Dillon & Co.

Inventories

Clark, Dodge & Co.

Inventory position of purchased
materials is about static compared
to previous months, though em¬

phasis

on

turnover

plies

lower stocks and higher
continues.

are

in

production

better

Reserve sup¬

balance

schedules.

performance

of

both

But it

thought golf
It
car,

gives

your

is

funny

was
you

hotel

a

the General I would go right on play¬

the criticism

very

you

hear about

dignified if humbling

it.

I

tinue to

always

or

a

of the Armed Forces.

your

motel, you hear the strained explana¬

defending their cut in the funds

This writer would think it would be

thing they would brag about

as

an

some¬

outstanding accomplishment.

They get their reports from the hinterland, though, and apparently
they feel that defending the cut is the thing to do.
the national state of mind of




a

better.

Pur¬

of the several under¬

qualified to act as
legally be distributed.

are

The

Thus far has

"peace loving" nation progressed.

only

Korean

W. C. Langley & Co.

Hayden, Stone & Co.

Central Republic Company
(Incorporated)

The Robinson-Humphrey

F. S. Moseley & Co.
Shields & Company

Phelps, Fenn & Co.

Francis I. duPont & Co.

Laurence M. Marks & Co.

Company, Inc.

Kean, Taylor & Co.
J. C. Bradford & Co.
Robert Garrett & Sons

Crowell, Weedon & Co.

noticeable

Wertheim & Co.

Reynolds & Co.

'

Laird, Bissell & Meeds

armistice

lower pay rolls

Hemphill, Noyes & Co.

Bache & Co.

First of Michigan Corporation

Stern Brothers & Co.

Julien Collins &

Swiss American

Corporation

Company

Fulton, Reid & Co.

Granbery, Marache & Co.

Heller, Bruce & Co.

con¬

Employment

the
room

is

improve.

game.

thought, too, when listening to the radio in

tions of Administration speakers

any

Corporation

producers

back to power, so

distributors

with

Delivery

chasing Agents believe it will

ing.

be obtained from

The First Boston

Salomon Bros. & Hutzler

and

were

may

Slates in which such underwriters

dealers in securities and in which such Prospectus may

smaller quantities.
General opin¬
ion
is that prices
will tend to

about it to want to impeach him or to want the Democrats to come

if I

Price 102.55% and accrued interest

The late August

rather hope¬

too much to the

means

State.

people and occasionally with

prices show

seasonal

The results of this writer's survey, however, show that he is in no

less attitude.

material

marked trend to level off, with

comfortable stocks and open pro¬
duction facilities available, Pur¬

the past 20 years.

Notwithstanding the eminence Bridges has attained,
of

a

uneasy

whole Republican Party, not only in the

has been built

Industrial

effect

in

Cohu & Co.

Foster & Marshall

J. Barth & Co.
J. J. B. Hilliard & Son

of

appears

Schwabacher & Co.

Pacific Northwest Company

William R. Staats & Co.

Sutro & Co.

reported for Aug¬

ust.

Cancellations, cutbacks and
of
military orders,
particularly airplane, are back of

Sweney, Cartwright & Co.

Carolina Securities

Corporation

Davenport & Co.

stretch-outs

the

A. M. Law & Company

reports of lower labor enroll¬

ment

month.

and

less

overtime

The condition is

not

this
gen¬

eral, but is reported in spots over

Strader, Taylor & Co., Inc.

Irving Lundborg & Co.
Townsend, Dabney and Tyson

Reinholdt & Gardner
J. C. Wheat & Co.

12

The Commercial and Financial Chronicle...

(824)

interest

Executive Treaty-Making Powei

by assuring

nationally in

that

will

others

and

tion

na¬

inter¬

deemed

way

a

our

act

mu¬

tually advantageous,

the only

and

President

whereby the
the day-to¬

means,

carries

on

Thursday, September 3, 1933

matic

that

day business of dealing with other
nations.
Daily
the
President,

its

retention

constant

need

vigilance.

does

not

The supreme test of
any Consti¬
tution is the way it works.

import, or that the treaty form
lawfully be used to circum¬

George
through his diplomatic Washington, in his Farewell Ad¬
makes agree¬ dress, warned against
amending
ments with foreign nations. In the the
Constitution' to meet hypo¬
State
Department, for example, thetical
dangers.
"Experience,"
we
may agree that Foreign Min¬ he said, "is the surest standard
by
isters will meet at a certain time which to test the real
tendency of
and place. Perhaps we agree with the
existing
constitution
of
a
the Briitsh and French on a joint country. Facility in
changes, upon

security under our present

vent the Constitutional procedures

note

involved in constitutional limitations on

established in relation to what

Germany. Perhaps

And the UN's Inadequate Chaitei

not

believe that "Treaties"

the

meaning of Article VI

I

of

JOHN FOSTER DULLES*

By HON.

do

within

Constitution,

our

of the American Bar

can

foreign policy. Discusses problem
treaty-making powers,
and the proposed constitutional amendments having in view
the prevention of possible future abuses of the treaty-making
power.
Points out long experience of U. S. treaty-making in
which there occurred not

serious

assure

states.

Force

become

only

are

like

against

such

to

depend

on

own

nation

i

*n

1 i t

a

might

r

without

which

John

Dulles

F.

third
of

extract

can

out

of

one-

of the people and one-third

the

natural

world

will

its

wreck

the

of

resources

domestic

•economy.

It will have to impose

sweeping

governmental

controls
which will destroy the very free¬

dom

it defends. Further

ures

that

assure

we

of ' strategic

materials.
There is
•coerced
nated

but

one

unity of the Soviet-domi¬

is the

answer

'voluntary association of free
tions for

the

na¬

defense. To

common

the

is

added

friendship,

extradition

defining

dependable

ingredient

of

and

commerce

treaties,

the

located

agreements
of
forces

status

abroad,

treaties

control¬

ling the drug and narcotic trade,
treaties

in

avoidance

taxation and

to

necessary
on

a

friendly and non-friction basis.
Treaties

make

it

executive

and

friends

them to

and

us

pendable

and

allies,

political tools which
possible to provide our

nation with

environment of

an

se¬

to them

us

ways,

therefore,

is,

aspect

•essential

of

United

an

States

J:oreign policy.

master

time

our

United
hered

is

sents

the

Charter

of

the

has. been

It

ad¬

repre¬

world's

best
hope of
justice. But the United
in its present form, has
all our expectations.
I

peace with

Nations,
not

met

shall

speak

Because

of that later.

more

the United

Nations

treaty-making

treaties

with

other

that

our

used

to

forms,

cialistic
alien

Charter.
North

Atlantic

Treaty Organization of 14 nations,
•designed to insure the peace and
safety of the North Atlantic Com¬

munity.
We have the

21

so-called Rio Pact

American

signed

to

mutual

Republics,

promote

security

in

peace

the

In

the

de¬
and

we

security

with

Philippines, Australia, New
Zealand, and Japan. Two weeks
I initialed

defense

proposed

mutual

treaty with the Republic

o:? Korea
with

a

and

have

Nationalist

close

China

we

on

ties
For¬

mosa.

security
treaties
have
Lcen implemented
by a series of
Lase

agreements

President.
torces

.*«

the

These

made

give

means

to

by

our

the

armed

operate

adc*ress by

Secretary

Dulles

at

Diamond Jubilee
Convention of the
American Bar
Association, Boston, Mass.

August

social

upon

re¬

to

26,

legitimate fears

any

President
he

that

1953.




approves

fears

believe
it

such

which

will

S.

J.

Res.

mental

arose,

this

was

concern,

legitimate

a

genuine

a

tention

But

I

service

situation

of the

to

American

the

that

make

would

2

treaty

could

treaty
respect

cut

a

funda¬

down

bind

no

in

so

the

which,

under

fall

system;

the

that

nation

power

matters

of

Federal

within

the

jurisdiction of the,States. This
set the
clock back to an
approximation of the condition

which

existed

under

Confederation.

dition

was

that

the

the

Articles

Then, that

intolerable

so

jeopardized

so

the

Let

the

it

Confederation

authority,
matters,

dependable

vigilance
danger,

way,

of

that

never

is,

by

citizenry.

our

the

The

great, has passed.

However,
danger

fear

some

may

recur

and

that

the
our

ments have been
proposed, with a
view to
preventing

possible future

of

the

treaty-making

of

trying

to

confine

treaty-making to the historic and,
I believe, Constitutional
sense
of
word.

It

within

the

Constitution

foreign
to

to

seems

me

are

our

States.

contracts

de¬

national

instructions

under

of

our

The

with

made

United

our

these

agreements

in

Korea.

with

I

in

of

the

to

after

made

were

consultation

with

been

this

face

it.

pro¬

nation,

a

They

speak

field

as

authority
foreign ^relations.

worked

.

well.
Today,
perhaps even

and

new

enabled
unit and

a

effective
of

system

founders

authority of the President.
that
The
more
important of these which

agreements

far-reach¬

are

of

meet

confronted.

the

formal

the

have

greater peril than that which the

under

made

to

prompt,

The

Na¬

Many

of

There

hypothetical.
reassuring.

are

the nation

we

allies

need

founders

power

gotiations. Some were made with
Republic of Korea, and some
were

relations.

seeing international peril, created

the

tions

the

facts

jLue

to armistice ne¬

as

actual experience to demon¬

no

foreign

ing changes that
posed.
The fears

agreements,
some
enemies in relation

procedures

has

well for 160 years in the

us

of

series

a

variety

it, is,

as

is

from

climax

the

was

Constitution,

strate

com¬

in¬

en

Con¬

they provided.
I see only
in

need

authority
If it is tak¬

away,

crease

We

political

same

steady in¬

a

ment

they

Congress.

January,

been

in

with

yea's to 1

of

local

of 8 of these

case

of

was

86

Included in the 86
favor

of

these

55 of the 64 Senators

S.

J.

listed

Res.

1,

as

which
un¬

constitutional.

have

I think, that the

the

of

the

proposed

fully understood,

Senate.

Also

I

nation

must

Federal

comes

down

recognize

cases,

which

even

suggest that

Senators, when it
concrete

treaties

amend¬

be

able

will

bind

to

that

his

faifh

Government

views

the

of,

the

would

"I

imagined,

for

the

conduct of

Con¬

regulate

all

agreements.
fundamental change in

Constitutional

system
it

under

President

for
our

phrase

can

be

to

opposed

authority

before

in

essential that

effectively

can

the

to

say

'

agree¬

that

it

is

possible

Section

which

1

that

except

President

Eisenhower accepts, would
calamitous effect upon the

have

a

inter¬

the U. S.

It would make it impos¬

sible for the U.

S.

share in the

to

voluntary and friendly association
of free nations which is necessary
to

offset what the

refers to
the

of

Soviet

Premier

the "monolithic unity"
Soviet
system.
It would

make it

as

would

impractical for the Presi¬

in

foreign affairs and
upon
the Congress

throw

this respect

daily and inces¬
responsibility which sucn a

sant

a

and

already overbur¬
dened legislative body is, in prac¬
numerous

The Test of Experience

We

have

there

instance

such

as

abuse

course,

is

admit

not

can

power

be

that,

abused,

should

be

United

States

and

as

were

Potsdam,

power

will

a

large

and

It

is

impossible

Constitution

perhaps

so

ill-advised.

But

are

the

"execu¬
means,

on

In

ter.

follows

annulled.

renounces

of inter¬

of

the

rewrite

United

a

from

spring
of

to

in

were

of

the

fall

Aug. 6, 1945.

this

San

1945,

atomic
Hiro¬

on

The Char¬

pre-atomic age Char¬
it

sense

obsolete

was

before it actually came into force.
As one who was at San

Francisqo,

I

can

with

sav

the

the

confidence

delegates

that

urable

be

there

a

if

known

immeas¬

and

the

of

,

as

that

had

mysterious

power

available

would

atom

of

means

mass

destruction, the provisions of the
Charter
dealing
with
disarma¬
ment and the regulation of arma¬
would

ments

emphatic

have

and

been

far

more

realistic.

A
second
inadequacy
sprang
from the fact that the three lead¬

who

ers

tions

planned

the

United

President

were

Prime

Minister

Stalin,

the

led

three

who

Na¬

Roosevelt,

Churchill

Generalissimo

of

the

and

precisely
war-time

the United Nations

the

States

that it is fool-proof.
It is im¬
possible to make freedom so auto¬

as

a

kind

peace-time prolongation of the

war

time

-

triumvirate.

Conse¬

quently,

the
proposals
initially
forward1 by the United States,

Kingdom and

primary authority in
Security Council and stipu¬

lated

that

manently
Council
At

Soviet Rus¬

placed

great
be in

scope

General

this

extent

per¬

that

concept

altered

given

was

Assembly.

remained

on

agreement.

Francisco,

some

greater

powers

represented

San

"veto"

the

must

to

and

to

However

in

the

the
the

Security

Council and the General Assembly
was

permitted

mend."

to

was

Charter

sprang

knew

us

shima

United

national anarchy.

which have proved unpopular and

agreements"

measure

to

inadequacies.

we

the

which

al¬

might be abused, the result,

be

of

none

was

the

in

bomb

are

because

it

Nations

When

Francisco

sia,

do

I

and
But

can.

inadequacy

ignorance.

the

I

United

reflects serious

One

put

That is the reasoning that leads to
If

The

only admit it, I have said it.

admit

I

this,

it

important respects.
now

that.

pbwer
that

single

achieve
that

realize this hope will require that
the Charter be altered in some

upon

has

160 years with¬

a

possibility.

ai

I not
But

over

abuses

Of

which

system

a

being

treaty

ways

be

agree¬

which

victory coalition against Hitlerite
Germany. Inevitably, they looked

tice, incapable of discharging.

day-by-day the power to act effectively in in¬
foreign relations.
ternational
affairs, because that
"executive

under

menace

tions | would
still believe

ter is thus

soberly

you

the

commitments

Yalta

into

nations."

amendment,

proposed

is

country be able

enter

ments with other

I

as

it

history

our

our

to

conduct

to

Congress anarchy.
would

brings to mind such major

at

unalterably

am

would
treatymaking power or which would
hamper the President in his Con¬

of

other

and

more

ments"

in the

amendment
which
change
our
traditional

also

proposed

give the
to

power

executive

wartime

matters

any

feared.

3

amendment

The

these

on

following words:

only

but

the

end

•

Congress.

survived for

Section

not

the

make

not

to

humanity has existed for so long.
President Eisenhower has stated It was hoped that the United Na¬

like

dent to conduct

suggests,

ment is not

tive

We

respon¬

deliberative assembly

a

licensing national position and prospects of

originally

were

state

negotiable

as

Senate vote

in

were

amend¬

would have made the treaties

our

assumption of

sibility by

unconsti¬

matters

laws,

voted

No

the

cluded

effect, because for

such

nay.

sponsors

be

proposed

save

of

never

in

would

the

laws, etc. In the

gress

to

man

leadership that
backward will never

These

and

stitutional

deal

the

enable

Political

This Administration has a vi¬
indispensable to the final re¬
were of a multiplicity
sion of something better than bare
survival
an
in
the face
of
immediacy which ex¬
danger.

were

sult.

foreign affairs. Today probably

convened

had

our

must

requiring Senate or Congressional timidly goes
action, grew out of a series of cope
with
scientific
knowledge
preliminary
agreements
which which goes ever forward.

present

say

to

wisdom
himself.

experi¬

if

the

appropriations.

Congressional

the

advisers

in

to

our

leaders.

our

tutional

who

gressional

in

1953, the Senate has approved 23
12 of which, our legal

meaning of made

governments

promote

that

military

S.

perpetual

endless

field

was

of

of, these proposals takes responsible

form

the

all

treaties,

and

None

Armistice

U.

a

subsidiary

out

citizenry may not then be alert.
So, various Constitutional amend¬

abuses

inter¬
for

act

Executive Agreements

that

by

ment

was

the States.

Proposed Constitutional

served

be

you

it

import

concern was a correction of
the evil—a correction in the most

and

not

treaties

session of the
Since

in

to

including

tell

me

with

ence

at¬

that

life

Washington. This armistice agree¬

con¬

and

present Constitution

nation,

This

point out the arousing of

and

Our

could

there

to

the

hypothesis and opinion."

warp

the

are

from

,

in

public.

of

hypothesis and

mere

exposes

change

But these conspicuous agreements,

would

1

Section
nation's

our

clear

changes.

instrument

largely

opinion,

peril and a steady
The Security decline in our
capacity to meet
treaty cannot override the Con¬ Treaty which I initialed in Korea that peril.
stitution
or
deprive citizens of will, of course, be effective only
International Law and Order
their rights under our Constitu¬ with the advice and consent of
the Senate. Agreements for eco¬
tional Bill of Rights.
Physical scientists have enabled
nomic rehabilitation are
subject man to destroy himself. Political
The
remaining
provisions
of

are

American

were

that

bringing the

signed

stated

Knowland,

it

make

jurisdiction,

and that those who voiced it

with

score,

has

Senator

12 treaties the

performed

our

is

Constitutional
as
that intro¬

a

by

who

that

this

on

amendment,

treaties

the

some

with

United Na¬

international
them

Korean

made

to

question

Eisenhower

so¬

country
which

traditional

our

to

matters, and

our

conceptions

"Treaties"
"tee

be

domestic

power.

These

the

the credit of

about

agree

friendly international intercourse.

of

doubt, and fears in this regard

have mutual
treaties

However,

that

Union

we

proposed resolution.

a

of

woof

without

the

states

Soviet

Agreements

of

be

have been widely spread. To meet

tions.
i

this

is.

now

upon

made with

that

feel

to

founded upon the activities of cer¬
tain committees of the United Na¬

Western

the

•ago

in

it

as

Amendments

Pacific,
or

and

These

Hemisphere.
defense

concern

might

power

particularly in relation

impose

one,

the

treaty

effectuate

economic

authorized

of

to

na¬

by the United Nations

law

seem

shall

effect.

or

believe

I

international

This movement reflects

when

have

and

authority of the Presi¬

to

force

no

severely

power

conduct

to

tions for the purpose of
furthering
collective
self-defense.
This
is

We

limit

to

up

it¬

curity, the United States has, by
Li-partisan action, entered into a
of

grown

the

movement

a

ideals.

self does not provide adequate se¬

series

juncture

has

of

treaty

by 60 nations! It

the

this

At

tions

mander

1.

Constitution

the

the

to

The

treaty which conflicts

a

ernment

business.

security

with

in

national

Problem

dent

Security

Nations.
to

Constitutional

curtail the

Mutual

The

The

in de¬

and

adopted to give the Federal Gov¬

curity.

bind

to

rigid

more

Section 1 provides that any pro¬

of

agree¬

the

i

win

a

S. J. Res.

by

would
are

put international intercourse

are

who

refer to the amendment

me

vision

double-

of

multitude of other

a

agreements that

ments

those

reason

adopted

proposed

trade, reciprocal trade agreements,

to the

answer

wqrld. That

of treaties. No

meas¬

no

take in isolation will

supply

our

and

friendliness. This requires treaties
of

system

treaties

to

alliance

of

Per¬

amend the Constitution

duced

other kinds

treaty

y

totalitarian

a

de¬

matters of security, we must have
many

the

match

that

our

agreements dealing expressly with

tempts, singly,
to

is

keep

can

addition

In

t-

a

result

The

economy.

free

which

share,

we

expenditures within limits
compatible with a free domestic

aided strength.

Any

which

estab¬

fense

un¬

world

in

others

and

we

military

the North Atlantic Treaty

as

Organization.

have

here at home.
Security Act1

to build up stra¬

located

lishments.

disas¬

to

want

based
Mutual

the

tegically

ter. We do not

•our

have

that

now

Let

have joined

we-

par¬

insurance

tial

for

would

words.

or

military agents,

other members of the

less selective approach.

planes

Under

But they

Constitutional

haps

as

easy

no

reli¬

ultimate
ance.

into

task to abroad more effectively in the
the safety Of the United protection of our security. For ex¬
one
plane based abroad
Our Army. Navy and Air ample,
necessarily constitute an may be the equivalent of three

has

It

are

essentially internal affairs.
That concept is difficult to put

"reflects

Charter

United Nations
inadequacies."

Holds

feared.

now

are

single instance of such abuses

a

the

the Land," are
primarily domestic

of

measures

speaking at the Diamond Jubilee Convention
Association, defines objectives of mutual

Secretary Dulles,

pro¬

be

of

Law

supreme

which

"shall

treaties

that

vides

Secretary of State

directly

or

only to "recom¬
Indeed, the Assembly vot¬

ing procedure, with
nation,

having
Now

precludes
more
we

one

vote

its

decisions

per

than advisory weight.

see

the

inadequacy

of

"Volume 178

Number 5252

whose

functioning depends
with

ation

dominated

by

customers

third

of

inadequacy

'for

disregard

world

THE MARKET... AND YOU

fact

on

but

men,

of

justice

When

the

Charter

the

of

drafted

at
no

was

the

"law."

word

That

extent

was

to

San

or

defect

Francisco.

remedied

at

At several points
Charter, references to "jus¬

in the

tice"

some

introduced.

were

Also

the

General Assembly was required to

"the

promote

of

opment

progressive

international

devel¬

law

and

its codification."

However, in the
eight years of its existence, the
General Assembly has made but
little
I

in this

progress

recall

*that

the views

great

of public

Robert

statesman

and

New lows for the year were

student

Taft.

In

his

book

been

impaired, at least tem¬

porarily.

But

an

even

more

implications—the market
fuses to act, as so

pected, in the
in

1946

levels

widely

difficulty

is

that

it is not based
primarily on
underlying law and an admin¬

an

ex¬

now

be

istration of justice under that law.
I believe that in the
long rurf the

have

*

reached,

out their

points

is

which

the

tively, that the highly selec¬

which to make

on

turn

up

tions

of

such

of

all

by

sions

the

the

once

passed.
the

not

irrevocably

present Charter of
Nations provides that

General

Assembly will
agenda a proposal to
general conference to re¬
its

on

a

view

and

The

1955

the

present Charter.

I

have

already announced that the United
States

will

then

holding such
The

1955

vote

in

favor

conference

in

original

of

review conference.

a

comparable
the

its

San

will

Francisco

ference.

It

opportunity

will

be

importance

spicuous

provide

Con¬

a

for

to

con¬

which

the lawyers of America should be

prepared.

There are, of
other opportunities.

many

course,

important thing is that the
Bar of America, which exerts a
powerful influence on the think¬
and

political

action

of

the

American

people, should itself be
forward and
inventive¬

looking
ly and creatively trying to

solve

the great problems which confront

people

our

founders

at

of

this

time.

nation

our

The

showed

a

political wisdom which has rarely
if

been

ever

matched.

Surely,

however, their effort did'
haust

the

political

American

They

and

bequeathed to
society of spiritual
tual freedom. Such

be

to

able

ideas

to

'conditions.

society ought

for

Now, when

threatens, it behooves
worth.

our

May

generation,
forebears

the

in

the

to

fife?

That

time.

our

is

the

Let

us

later

also

was

us

peril

to prove

in

our
our

generation,
develop in¬

challenge of

dedicate

our¬

selves to meet it.

rent stock setback is

a

market

The

CHICAGO,

Ryan,
with

105

Jr.

has

Stifel.
West

Financial

111.

—

Chronicle)

Nicolaus

Adams

&

E.

affiliated

Co., Inc.,

Street.

sure

for

(Special

son,

to

The

Financial

:k

Theis

&

Sons,

North Fourth Street.




Inc.,

have

we

*

❖

been

*

,

4

this

restrained

very

out

markedly.

*

As

i'f

of

comes / as

there is such
still

being

this

:Js

are

a

fact,

a

it

distinct

was

mir¬

snuff

Actually,

Helme

and

have

in

classification,

being
U.

Geo.

S.

held

in

W.

group

utilities

the

14

points,

the rail
a

or

are

the

in August of

slump of 10 points for

drop of around 5 %, utilities

actually
gain,
of

able to show

were

of

on average,

a

a

couple

pennies. They ended a sick

month

(which generally is a

bullish

month

incidentally)

by

with

tradition,,
a

change

narrow

came

tenths of

to

around

three-

1%.

despite the

soul-searching gyrations of the market, and
"Is it logical to even
though U. S. Tobacco's
Chrysler is ad¬ ventures

expressed in thi»
necessarily at any
time coincide with those of the
Chronicle. They are presented as
views

[The

article

do

those of

not

the author only.]

Drop in Farm Products
Prices Gomes to
The

An issue

sta¬

about 5%, and

Tobacco.

similar to that

of American Snuff

picture of

a

industrial drop

that
brackets very

.

as

generally included

others

For

only candidates. Despite the

couple of other

industrial

Both

thing

made.
a

•

bility,

:Je

matter

a

The Stable Utilities

downward

that, all by itself, products

prices

trend

in

the

Mailt

a
of

farm

United

u'

successive

five

ses¬

wasn't

too

there

so

One stock that has been far

from

al to

Where
The

Floor?

the

spectacular,

but

has

stood out

'*

*

*

be

with

big debate of the mo¬

vividly by its refus¬
pulled down sharply

the

is

rest,

Kodak.'It

has

Eastman

held

through¬
ment is where, and when, the out
the year in a narrow band
new floor will be built. In this
of some half a dozen points.
respect the technicians' Last year the range was very
glasses are somewhat more similar. In fact, it hasn't been
rosy-hued than those of the since 1948 that it has had a
tape watchers. For one, after range as wide as 18 points for
backed

more

to

ing

was

establish the

tween

foot,

314 level

now.

9 clos¬

a

already

in what

and in the last half

years

$52

usually
sidering

it has held be¬
$38, an un¬

and

spread

narrow

what

the

have done in the

week later

Monday's closing of

was

full year

dozen

lasted until

made

a

a

263.39 and the year's

were

261.22

indus¬

less than

up

To be exact, the June

LOUIS, Mo.—Guy C. Lam- first

Jr. has become affiliated with

Albert

points for the widest-

predic¬

much left to discount.

some

Chronicle)

as

action stands

now

sions

lows

With Albert Theis Sons

its dozen

*
*
•'!<
price index, as compiled by the
rate troubles, and
high price Bureau of Agricultural Economics
the rankest of coinci¬
Independently Acting Issues tag—all normally calculated on the basis of 1910-1914
as
100,
dences, the toll of the worst*
Recently one such indepen¬ to make an issue susceptible showed no change in July from
day of selling—that of Mon¬
dently popular issue has been to wide
the figure of 259 reached in June
day—was the widest break
swings—seem to be
New York Shipbuilding
after a 17.3% drop from the rec¬
since June 9 and the indus¬
well offset by the arbitrage
which has been posting new
ord high peak of 313 in February,
trial trim on both of those
weight on convertible issues, 1951.
The
firmer
tendency in
dates was exactly $4.52. The highs throughout the selling
waves and
through the month as well as the persistent buy¬ July gave support to the prospect
rail
setback
was
somewhat
of August added nearly a fifth
that
a
precipitous
decline,
re¬
smaller than the June upset,
ing of odd lots by the largest
to its value despite the drastic
flecting .a serious business reces¬
largely due to j;he fact that
group of stockholders of any
sion, is not likely to occur during
the rails had been under pres¬ handling of the list generally. American
enterprise. The list the remainder of this year at the
❖
❖
:)<

base which

William

become

as,

in the-

postwar years, only a meagre

By

at 262.88.

ST.

:|s

that

has been,

range

,

lows the
which

belated

whether the

or

point

Stifel, Nicolaus

to

than

such

questions

Telephone's

lately, and for the whole year has done a rather remarkable States, which started in March,
in many cases, the best acting
1951,
and
carried
prices down
tions of a business slump be¬ stocks have been
job of ignoring movements to a low for the movement in
foreigners
fore the thrn of the year or to
the
issues
that
usually elsewhere is venerable Amer¬ June of the present year, came
shortly after aren't a bit awry come to mind as the bell¬ ican Telephone. It's record- to a halt in July, says the Alex¬
on
their timing.
ander
Hamilton
Institute.
The
wethers of the market.
breaking debenture flotations,
one,

trials
(Special

as

difficult

new

dilemma

in

assume

range,

was

the June 9 selloff, the

Joins

sup¬

markets

a

what the rhar- year?" Their
problepi is made
ket had foreseen, it poses the even
more
complex by the
question of whether the cur¬ fact that month after month

years

de¬

to

ternational order to shield nation¬
al

Their
rored

shares outstanding. Big

many

it has narrowing constantly

year

into the more popu¬
posed to have been predicting equately priced at $66 or is
a
business depression. Yet if there a chance it can work lar
cigaret and pipe lines
the rolling recession that back
to
around
the $96 it might have stimulated hopes
reached its peak some two commanded earlier this
or accentuated fears.

new

what

their

way

downturn

changing
us

new

not,

we

emulate

did

find

and

intellec¬

meet

is

the

ordered

an

and
a

to

That

monstrate.

us

ex¬

of

invented

produce

needed

not

genius

people.

that

.'j

The

ing

$

that

law

has

United

have

little of the action resembling

second-place General Mo¬

tors, which has nearly twice as

of SV2 points. In moving year and some nine
unpredictable and points so far in 1953.
■

range

future upturn.
questions are firms

any

,

saw

call

each

covenant

opportunity which Senator

Taft
the

with

the

nations

that

made

The

obtain

the wholesale retreat on
a
they will
broad front that characterized
by deci¬
thereunder."
the
1946
upset.
Ironically,

such

abide

nations

to

points

over

roster as that

a

smaller

there

for

stand

10

long

as

1952

higher,
deciding usually

tive advance of the past
and
year? are ; established,
only way to establish peace is to
or
so
is going to be equally groups are
write a law, agreed to by each of
logical candidates
the nations, to* govern the rela¬ selective on the decline with to take over the
leadership.
other and

a

timely to buy surprise to the laymen that

But it has The universal
leasttenta¬ what can make

entirely logical.
been shown, at

people

entirely different set

an

yet of issues

seems

the of

had

three-point

a

for¬

back around now, or to search
out

in

this

more

were

trouble

it

And

quarter holders, well

somewhat

as

consoling, the

dozen

a

bined.

having,

Brokers who

vague.

a

a

13

*

side is somewhat

half

*

*

While this is
other

whether
*

the mild

on

^
*

resistance

breached.

to

fundamental

a

Should held

side.

similarly

were

"A

"The

lower.

fashion it tunate to sell

same

when

re¬

en¬

Nations Charter:

points

half

some

rection somewhat

vital fact emerged that could
have had even more sinister

Majority opinion is that
Foreign
Policy
for
"Americans," he said of the United bottom of the decline has
titled

level

industrials, making the chief these new levels stand up
development of the week a under further pressure, it all
negative one. Confidence has could be written off as a cor¬

affairs, the late Senator

A.

resistance

posted by both the rails and dozen

did

respect.

expressed by

mere

of

has

the past six years com¬

over

prin¬

morality.

Oaks, it contained
word "justice"

Dumbarton
mention

and

set

STREETE

law,

law which embodies eternal

ciples

market

age-old* leader

swing of

By WALLACE

that

upon

the

path is down. twice

"defensive"

order, in the long run, de¬

pends, not

of

This

out

came

the

when

has shown the

is

party seeking world domination.
A

(825)

cooper¬

which

international

an

\

.

effective

upon

nation

a

-

.

organization

an

The Commercial and Financial Chronicle

...

i

❖

Another

same

*

issue

con¬

averages

period;

❖

that

has

much of what has
resistance
area
under¬ gone on in the market in re¬
cent years is American Snuff,
with an even stronger
of the chartists call the

around

255.

The

ignored

rails, the issue that the brokers al¬

too, are credited with a strong ways start analyzing for their

is

around

a

million and

least.

14

Continued

from

and

5

page

recent months.

been authorized in

highways now author¬
ized added to new dams, schools,
many

hospitals and other institutions
now
being proposed should keep
this industry at a high rate of op¬
erations

several

for

ahead.
This industry, incidentally, would

Gronp Stocks

years

ical

scientific

or

methods.

farms of the nation are

The

pretty well

equipped with machinery and de¬
clining farm income probably will
result in restricted purchases of
such

However,

equipment.

afford

fertilizers

thetic

the

syn¬

most

overall
method of increasing yields per
appear to be pretty well hedged
in the event of a recession as it acre. The wheat farmers, as you
seems
likely that both state and know, recently voted to curtail
federal administrations in such a acreage rather than lose the bene¬
fit of high protective prices. Since
period would turn to road build¬
ing to "make work" thus provid¬ the farmers are a very shrewd and
ing these companies with a sub¬ versatile group of people, it seems
likely that they will use more
stantial volume of business.
effective

Drug Companies

have

chemical

drug

of

companies

rather mixed outlook.

a

will note that

this

Davis

said

week

that

the

earnings for the last half of 1953
should be materially ahead of the
half

first

Pfizer's

higher prices being paid
impressively to earn¬
ings over the coming year for most
of these companies.
Since quite

sales

of

smaller

the

on

to increase the

acres

number

yield per

few

a

erations

including extras, for
past 5 years and probably will
$4.50 again this year to yield

$4.50
the
pay

year,

a

Chem¬

Davison

7%.

than

better

of

"captive"

are

the

op¬

oil

companies, it
should help to stabilize the earn¬
ings for those companies.
Shamrock
be

of

one

situated,
portant

past

Oil

would

those

several

appear

quite

having
reserves

developed
of

to

favorably

gas

im¬

over

the

rewriting its
higher prices, and as
a result
earnings over the coming
years
should
show
impressive
gains.
contracts

years,

at

Transcontinental

i

Gas

Pipeline

against

depreciation charge of reflecting

a

about $20 million.

this

In other words,
cash

will have a
flow of about $35 million if
ju§t break even on profits.
$35 million represents nearly
company

share

a

thus making the present
dividend quite secure even

$4.00
if

this

source.

from

23c

caution

the

year

June

that part of this in¬

you

is

crease

a

jumped to
quarter
earlier. I would

earnings
in

share

due

to

increase

rate

a

The

oils

such

form

broad

a

in¬

dustry

category, being in petro¬
chemicals, chemicals and natural
that it

is

not possible to

they put through in March of this
year

which has not yet been ap¬

erally, the

group

go

is not likely to

make much upside progress as re¬
fined products may be under some

in the

pressure

future. How¬

near

such

Standard Oil of California

as

cal

house, has shown °ari increase

in sales

in every

of the few

one

believe could be materially
in

companies to show

the

appear

and

rate

and research-minded

has

done

the

field

of

furans

term capital

management,

outstanding

an

interesting

an

vigorous
in

could

and

job

be

prospect for long-

gain.

Electronics and

Electrical

Equipment
The

electronics

equipment
be

to

pear

the

read

recent

Wilson

Mr.

tric

of

commenting

5-10

in peace,

as

us

of

Corporation

General

Elec¬

the electronic
over

Vital in

years.

fa¬

more

statements

on

wonders ahead of

ap¬

well. You have

as

Mr. Sarnoff of Radio
and

electrical

would

the

among

vored industries

all

and

companies

the next

war

well

as

the electronics indus¬

try geared rapidly for national de¬
fense and is
tribution

making

to

major

a

Such companies

gram.

con¬

armament

our

as

pro¬

General

Electric and Westinghouse present

impressive growth pictures.
Radio

Television:

and

ing of the freeze

on

The lift¬

new

station

allocations in July 1952 has helped
the television stocks to enter a

growth era. From 108 trans¬
mitting television stations at the

new

time

freeze

the

lifted

was

we

should have approximately 275 by
the end of this year, and it is ex¬

that

pected

1,500

to

within

5

vision

there will be from
television stations

2,000

years

broadcasting tele¬
The
replace¬

programs.

ment market for old

sets alone is

expected to reach 1 million

a year

The

personal finance companies
to be interesting, primarily
interested in
income.

those

for

You have all seen the record

of

personal

loans

high

as

air

con¬

characteristic

downs

dustry be
future

of

this

riod

Such

ahead.

Bridgeport
and

years.

done

companies

as

Brass
Copper & Brass have

masterful job of

ulation

of

the

country

increased

by approximately 20 million

per¬

,

At the same time the

sons.

about

one

expectation
will

see

tional

at

million.

that the
least 20

persons

in

million
the

addi¬

United

States, it would seem that
only way enough food will be
duced would be

the
oro-

through mechan¬




quite safe, and
growth prospects

be

recent

intro¬

duction of "canned" soft drinks.

the

are

tractive.

Paper Industry

All in

issues.

Crown
tional

Zellerbach

and

should

Paper

Interna¬

well.

do

Crown

Zellerbach, the dominant
company on the West Coast,

paper

offers

the

yield,

strong

plus

investor

a

generous

financial

position

all, it is very hard for me
to be very bearish in the face of
the above. I am not trying to pre¬
dict

the

market; however,

some¬

where in the near future it would

reasonable

seem

that

the

shares

of those

companies heavy in EPT
will begin to reflect the prospect
of the expiration of that onerous
tax at the end of the year. Added
to that is the prospect of a 10%
cut in personal taxes which could
be

strong stimulus. The
is working on a
tax bill which may well in¬

quite

a

Administration

in many

dividend has been doubled in less

than

sues

trebled

three

in

time.

that

The

Management, I
outstanding job

years.

feel, has done an
in reducing the operating cost to
a break
even point of about 45%
of capacity. Bridgeport has never
had a strike in its history and has
paid dividends in ,82 of the 87
years of its existence. Earnings of
$3.01 were reported for the six
months and $1.70 for the June
quarter, indicating that the com¬
pany is earning at close to a $7.00
per share rate at the moment. The
has

increased

b^en

as

with

the

stockholders

limits dictated by

within the

sound business

practice.
Meat

The

Packers

removal

of

price

controls

the

general decline in meat
should over a period of

ings this

year

for most

companies turned

up

of

these

impressively

1952 figures.

over

Natural

Since

there

Gas Industry
is

forum scheduled

no

one

on

this

to speak for the

natural gas shares, I will comment
that the gas stocks
appear to be

quite

favorably

contracts

ing

situated.

for natural

written

at

gas

are

New

be¬

increasing prices,

new

clude
a

a

credit

for

dividends

and

change in the capital gains hold¬

favorable factors

ing period,

an

is available at a 5% yield.
Management is impressive, indus¬
try position strong, the constant
growth in their specialty type tis¬

have

num¬

With every
next decade

the

which for the first time

yearp, reduced funded debt
approximately 40%, paid off all
the preferred stock, and earnings

ber of farmers declined about
10%
or

of

important

five

time help the meat packers. Earn¬
pop¬

beneficiaries

be

may

outstanding position in which could be important marketthe excellent long term prospects wise.
of the paper industry.
One specialty which we happen
to like very much is Scott Paper

prices

Fertilized Companies

Both

diversify¬
ing and improving operating ef¬
ficiency. Bridgeport Brass, which
I have followed quite carefully for
several years, has done an out¬
standing job in reducing the op¬
erating ratio, diversifying and im¬
proving
the
overall picture.
Bridgeport has doubled sales in
a

and

Oyer the past decade the

to

term

years

Mueller

Brass,

Revere

tainers.

This
has
been
a
necessarily
sketchy outline of a group of in¬
dustries and companies. Undoubt¬
excellent.
The
management
is
highly regarded in the utility in¬ edly, you have your own favorites
which I am sure are just as at¬
dustry.

long

The paper stocks appear to be
satisfactory holdings for the time
ahead.
being, although here, too, upside
progress may be limited; The im¬
Metal Fabricating Companies
proved earnings trend seen so far
this year augurs well for the pos¬
The metal fabricating compa¬
nies are considered highly cyclical; sibility of increased dividends for
a
number of units in this group.
however, they still appear to have
However, one must obviously be
very
satisfactory
prospects
for
earnings and dividends in the pe¬ highly selective in picking these

these companies in the

in¬

continuing factor in

a

about

standing which should augur well
for

dividend

ditioning which will be a stabiliz¬
ing influence should the ups and

6%%
which
seems a little bit on the high side.
However, the $1.40 dividend ap¬
earning

out¬

now

by 1955 and 2 million by 1960. ac¬
cording to experts in the field. earnings improved, and there is
GrE and Westinghouse will share no reason to believe that directors
in this market along with other will not continue to be generous
fields of endeavor such

be

pears

Companies

Finance

Personal

higher

ahead.

years

higher earnings in 1952 over 1951,
and this improvement is continu¬
ing through 1953. Norwich, a small
company noted for a few proprie¬
tary items including Unguentine

Pepto-Bismol, with

share but we

was

and

years

June 30 were $3.27 a

one

quarter but

the past five

over

about $36,

currently

ical,

years

and

their

continued

leader¬

ship in the field should pay off for
the patient stockholders over
a
period of years.

Even

the

much

Reports Construction
Activity at Peak
U.

S.

Department of Commerce

expenditures for new
construction this year will reach
$34 2/3 billion, $2 billion above
estimates

last year.
Expenditures for

Steels

tion
abused

steels

this

year

new

are

construc¬
to

expected

reach $34%

billion, exceeding last
not seem overpriced
on
the
year's record by 6% or $2 billion,
approximately 5 times earnings
basis that they currently sell and according to revised outlook esti¬
mates
prepared jointly by the
yields of 7-8%. You have all seen
Building Materials Division of the
Mr.
Grace's
(Bethlehem
Steel)
U. S. Department of Commerce
statement that the industry could
and the U. S. Labor Department's
make more money at 90% than it
Bureau of Labor Statistics. This
could at 105% of capacity. What
will happen if the rate declines year's dollar volume of new con¬
struction the announcement also
materially below that figure is
another matter. However, the in¬ states, will represent a new peak
in work actually put in
place,
dustry has spent a tremendous
when adjustment is made for price
amount of money in the postwar
period improving operating effi¬ changes.
do

ciency, and the break-even point

In

for

estimating

bal¬

the

the assumptions were that
only mild readjustments in the
general economy would take place
this year; that close to 1,100,000
dwelling units (private and pub¬
ance,

effect

stage.

of the expected annual

25%

total.

the

attractive at this
Other California oil shares

com¬

the

56% and the latter for something
over

would

appear

be

or

remainder of
The former accounts for

the year.

Union Oil, earning at a
$7.00 a share rate, seems likely to
increase the dividend this fall and

ever,

continue

to

during

pleted

and Richfield should benefit from
paying proved by the FPC.
However,
terramycin have picked up sub¬ $1.40, yields only about 4%. How¬ since the Federal Power Commis¬ higher prices and the dynamic
stantially and are apparently a ever, the long term prospects for sion allowed a
6%%
rate
for growth of the West.
major contributor to earnings of Davison would appear to be quite United Gas Fuel
Co., a Columbia
Containers
this company.
Each company in favorable. Davison, in addition to Gas
subsidiary, it seems to be a
this group obviously would have its fertilizer business, is the major
The containers, American Can
reasonable expectation that they
to be scrutinized on its own mer¬
producer of
synthetic catalysts will be more liberal with other and Continental Can, still appear
its.
used by the petroleum industry,
to be attractive on a long-term
companies coming up for rate in¬
basis due to the constantly ex¬
Norwich Phatmacal, a small but with a most promising sales out¬
creases.
On
the basis
of
$2.00
attractive specialty pharmaceuti¬ look. Earnings for the year ended
earnings Transcontinental would panding use of tin and fibre con¬
year.

present outlook for 1953
activity is based

The

construction

tract and
Oils

into the group in detail now. Gen¬

a

facil¬

company reports no earn¬ largely
on
relatively firm esti¬
ings,
which
management
feels mates of work
already put in
quite sure will not happen. Every place
during the first seven
major steel company will have months, and on documented in¬
substantial
sums
accruing from formation about work under con¬

around

continental's

than is usual, as

the

gas,

$22% and paying $1.40, is
one of the highest yielding of the
pipeline companies, yielding about
6.2% at the present time. Trans-

smaller rise for the

a

months

six

last

outlays for private plant decline
steadily, and expenditures for

they
This private housing and military
$7.00 ities taper off.

Company, selling over-the-counter

55c

Agricultural has paid

American

add

of them

acre.

You

official of Parke

an

cheapest

and

fertilizer

The

the

should

A Look at Selected
The

September 3, 1953

The Commercial and Financial Chronicle... Thursday,

(826)

lic)

will

with

be

started,

in

1,127,000
Korean

and

other

that

and

will

truce

construction

on

no

compared

1952;

have
this

major

no

year,

changes

in

the international situation will

oc¬

to affect the level of construc¬

cur

tion

activity.

Private and public construction
both

share

will

in

the

1953

rise.

The dollar volume of private work
is

expected

cedented

reach the unpre¬
$23.1 billion, or

to

of

sum

two-thirds of the total. The sharp¬
est

upturn in private activity this
will

year

increase

in

occur

building, for

commercial

which

about

outlays

45%

to

a

will

peak of

$1.7 billion. Facilities actually put
in
place, however (expenditures
adjusted for price changes) were

exceeded

during

the

prosperous

1920's.
Public

utility construction, at
is expected to be at
an
all-time high both in dollar
volume and in physical plant in¬
stalled, marking the tenth succes¬
sive year of expansion. Most of
$4.4 billion,

the 11% rise in

will

1952

expenditures

occur

in

the

over

gas

and

electric

light and power group,
only moderate increases on

with

railroad

and

telephone and tele¬

graph work.

Although the downtrend in pri¬
industrial building begun in

vate

March

is

to

expected

continue

through the year a total of nearly
$2.2 billion will probably be spent
this

for

only
last

This

work.

by

the

is

exceeded

billion

$2.3

spent

year.

A

third of all

new

construction

activity and half the outlays for
private work will be for residen¬
tial building ($11.7 billion). The
5% increase over 1952 in expendi¬
tures

for

units

will

new

nonfarm

occur

dwelling
spite of a de¬

in

cline in units started. This results
from

higher prices and the

unsea-

sonally large number of dwellings
begun during the latter part of
last year, which were still under
construction early in 1953.
The
new

expected

total

volume

of

public construction this .year,

$11.5

billion, will, like private
building, account for
third of all 1953 activity.

residential
about

a

Only about three out of every 10
dollars of
public work will be
for direct defense purposes—pub¬
lic industrial plant and military

and naval facilities. Public indus¬
trial
on

construction,

atomic

will

energy
advance 15%

largely

work

establishments,
to

a

peak

of

nearly $1% billion, as construction
of the Portsmouth, Ohio facility
gets into full swing. On the other
The continuation of the steady hand, military and naval construc¬

for many steel companies is prob¬

postwar climb in construction ac¬

ably considerably lower than is
generally believed. One favorable
factor in the steel picture is the

tivity

tion

is

expected to

be

about the

will result pri¬ same as in 1952. Some projects
marily from a sharp rise in com¬ were delayed and some may be
mercial building, and substantial set aside as a result of the Budget
instruction
to
review
cash flow to be derived from ac¬ increases in expenditures for pri¬ Director's
Federal projects for essentiality.
celerated amortization of facilities. vately owned public utility con¬
On the other hand, expenditures
struction, private housing, and
Republic Steel, as one example,
schools and highway work. The for two important civilian types
will have a cash flow of some¬
only major types of construction of public construction—highways
thing like $24 million a year from
will probably rise
for which expenditures are ex¬ and schools
here on for the next 4 or 5 years
by 10 and 8% respectively this
due to this factor.
In addition, pected to decline are private in¬
dustrial construction and farm and year, to new record levels both
since capital expenditures are
in dollar volume and in physical
hospital building.
largely completed, it is estimated
The rate of increase oVer 1952 capacity provided.
Most of the
that their outlays for depreciation
will probably decline moderately funds involved are from State and
into

1953

—

will be

about $10

million

a

year

in

the

second

half

of

the

year,

local

sources.

Number 5252

Volume 178

The Commercial and Financial Chronicle

...

Smith

NYSE Adopts New Plan
For Sale of

Large

they

shares

its

to

Funston,
how

individual

where

York

Aug.

28

known

announced

as

Mr.

tion,

to

itate

the

of

the

firms,

on

25,000

plan,
Exchange Distribu¬

an

new

a

the

auction

effort

is

Exchange's
market.

group

for

orders

continued

facil¬

broker,

own

help of the participating
get orders to buy, say,

shares.

Those

orders

sent to the floor of the

until

of

Mr.

shares,

Proceeds

dis¬

notes

Smith's

Exchange,

original

and

the

50,000

orders

two

will

Banks

Market

on

offering
Home

of

Loan

of

sale

used

to

notes

through

made

was

notes

several

2%%

Everett

Sept.

on

Smith,

the

surance

other

Loan

of

the

are

and

don

are

Banks, who will be assisted in the
offering by

a

nation-wide selling

9445

institu¬

of securities

ing

outstanding

notes,

dated

Sept.

obligations

note

of

and

has

will

aggregate $349,500,000.

1953

the

Home

Banks

Loan

with

Daniel

Olympic
of

the

Reeves

Boulevard,

New

York

the

to

The

Financial

The

recently

Co.

&

been

with

Prior thereto he

Van Denburgh & Karr.

Ex¬

plan

the

f

Board

Governors

of

the

Ex¬

change
July

on

9,

tingent

con¬

upon

Securities

.the
and

Exchange
G.

Commission

approving

Funston

Keith

an

amendment to their Rule X-10B-2

which

paid

amendment

the

and

plan

01

be¬

Mr.

Funston

pointed

that

out

<ron.,heSemiAn-ud"P"1

Exchange Distribution is the sec¬
of

ond

two

Wtecome

effective

the work
tee

marketing

plans
result

the

as

of

of the

Committee

The

Market.

Gross

Earnings

$
,

a

Expenses

Operating

in

recommendations

of

number

made

...

based on one
of the most intensive analyses of
the

year,

operations

2,715,233

Exchange

the

of

.

undertaken.

ever

Net

The first plan,

effective June 1,
in a given
security to buy a block of that
security off the floor of the Ex¬
change and sell it in the Exallowed

Number

Mr.

Number

increasing the breadth and
liquidity of the Exchange's mar¬
ket, we can function more effi¬
ciently in the public interest."
The Exchange Distribution plan

of Loans

Average

thus

Loan

Notes

\

t,le

Number

of

,

°It]

Khole is

a*iom

th

con«mte

—

to

°»r W-

367,300
$313

Made.. ..sl40,815,661 $128,705,052
275

Ve^yonrs,

^

Offices.-

Branch

provides tl^at a member, or mem¬
ber firm, acting on behalf of a
who

customer

wishes

sell

to

J™

. :■

Receivable Out
f

hufgross in"""Pure,/
favorable
",is
P'< ture of net
lor,

,W,'SC' "'e

$115,020,972

346,191

Made. .--•

a

""erstvitl* 'Te

.80

.80

$u2>036,212

'"Oe

■

»

$1.15
$

$

ye

Similarly ,?'lent "Pon the
S"'e"e"' °<
dePends
* ,e st|-engtf| of stre«gth of jts
I"divi4uaj ,oanthe -»nd„e81
credit

94,687

$1.19

Per

y ,s ®»r
is

.

'"

Our

per

b«uof

"52. TJ,e

earnings.

1,996,267

2,064,786

Common Sh
Dividends Per Common
Total Loans Made.

Funston said,
"•"is designed to bring more stock
to the floor of the Exchange. By
plan,"

Dividends

° snioiler

"reused

257,989

.

of Common

Earnings

chane's auction market.
"Each

Earnings

Preferred

specialist

a

-

°f "»>

remZTl0P°™>ngexn

'°';ie •'"ring
w,"i 'lie fij

V

rr

this

January

treatment.

'"She,."",S
th°y

15,453,259
16,895,051
$
9,741,419
10,825,816
$
3,123,770
3,636,401
%
192,610
217,547
$
2,395,460
$

Special Commit¬
Broadening the Auction

on

June3M?52

JuocS(U95S

to

•

Hie first
si

Cenl

effective Aug. 31, 1953.

came

■

securities

to

has approved

SEC

The

salesmen.

the

be

may

Preside

compensation

governs

which

Preside nt

a

of stock, may solicit
from the public to buy the
either alone or with the

block

large
orders

stock,

help of other members and mem¬
ber firms.

The

being

commission

this

for

pay

member

the

to

firm

member

would

sold

the

whom

for

customer

is

stock

a

LIABILITIES

ASSETS

or

service;

June 30, 1953

buying customers would pay reg¬
ular commissions. The registered

Casb

representative

Installment Notes

by

(who

firm

member

brokers

dealing directly
could

tion

be

given

extra

soliciting
the security.
to

"crossed"
the

of

usual

compensa¬

orders

orders

the

to

-be

sell

on

governing

.

$

11,891,264

.

135,630,461

Accrued Interest and Other...
Total Current Assets

123,312,484

136,913,452

1,355,752

1,272,021

4.193,314

3,817,240

.$ 155.610603

Total

52,887,000
-

Lon^ Term Senior Debt.......

.

Long Term Subordinated Debt..

$

44,083,000

7,154,522

6,545,495

50,623,495

44,800,000

47,600,000

12,150,000

8,600,000

3,980,473

Capital Stock and Surplus

$ 142,002,713

June 30,1952

60,041,522

Payable....

Minority Interest

Deferred Charges

such

Payable..$

Total Current Liabilities...

1,209,704

150,061,537

Other Assets and

transactions.

Notes and Debentures

1

1,046,477
.

Property—net book value.

Exchange under

rules

13.384.599

Accounts and Taxes

Receivable—Net

buy

to

would

buy

with

floor

the

are

with the public)

for

Orders

the

employed

.$

June 30,1953

June 30,1952

4,472,060

34,638,608

30,702,150

$ 155.610.603

Total

$ 142,002,713

For instance:

Smith

Mr.

has

50,000 shares of
COMMON STOCK LISTED ON NEW YORK AND MIDWEST STOCK EXCHANGES

XYZ Corporation, a relatively in¬
active issue, which he wishes to
sell.

He

with

a

After
for

the firm

the

change
as

Exchange

regular

a

market

agree

could

reasonable

way

approves

member

situation

the

stock.

and

the

with
not

time
FINANCE

Ex-

sale of the stock

funic

an

to

Mr.

and

CORPORATION

GENERAL

PUBLIC

LOAN

CORPORATION

DOMESTIC

FINANCE

CORPORATION

Financing the Consumer Through Nationwide Subsidiaries

sug¬
as

economical

the

SERVICE

explains the

Smith

Exchange Distribution

most

under

firm

LOAN

LCAN

CORPORATION

Exchange Distribution.

an

The

gests

the

that the stock
within

be sold

the

(AMT)

Request at-Executive Offices, 1112 Ambassador Bldg., St. Louis 1, Missouri

particular issue, officials

of the Stock

.

sell

upon

firm

member

a

to

investigating

that

in

to

goes

request

Copy of Detailed Semi-Annual Report Available

procedure
circumstances.
Mr.




m

v

•

Douglass
was

approved

by
o

Lot:

Chronicle)

change.
was

Co.,

mem¬

and

blocks of stock
on

asso¬

&

with A. S. Van Denburgh & Co.,
Inc., 27 South Euclid Avenue. Ha

Upon completion of the financ¬

The

HILLS, Calif.—Gor¬

PASADENA, Calif.—Harlan K.
Deckert„ has
become
associated

states.

dealers.

Chronicle)

Glidden has become

(Special

laws

the

under

Financial

Rejoins Van Denburgh

legal for in¬

savings banks, in¬
companies, trustees and

fiduciaries

many

The

Angeles Stock Exchanges.

by

15,

group

G.

ciated

joint and
the Home

of

are

to

BEVERLY

provide

member

obligations

Loan- Banks

fiscal

agent of the Federal Home

their

!

(Special

bers

The

$98,500,000

Banks

to

vestment"
1

be

the

15

Daniel Reeves Adds

priced at

are

tions.

series C-1954 non-callable consol¬
idated

from

are

plus an order to sell 25.000 shares

sale

large

of the distribu¬

Smith's

may

Public
Federal

15, 1954,

100%.

funds for making additional credit
available
by
the
Home
Loan

FNLB Notes

the

due March

The

a

On the first day

tion,

Exchange,

buy

selling

compensation.

of "in¬

President'of

the

merchandising effort
for which they may be paid extra

sought to dis¬

Stock

in

solicit

with the

Keith Funston,

selling

under

the

Mr. Smith's 50,000 shares are

security,

work

active" issue.

New

but

in

posed of.

then

de¬

would

of 50,000 shares

pose

customers

own

rules

The salesmen for the firms par¬

President,

plan

firm ."crossed"

ofber firms to sell the balance.

ticipating
Keith

member

dispose of 25,000

can

will need the assistance of several

Blocks of Stock
scribes

The

agrees.

decides

(827)

OHIO

FINANCE

COMPANY

with

16

The Commercial and Financial Chronicle...

(828)

TO

LETTER

ported in the annual report of a cite this to show the type of imforeign
mine)
to < $100.00. per practical thinking that is helping

EDITOR:

THE

.

DaJaa.m«LIa Mamam

rjj

<reP°rted by a
with France

ounce'

traveler to keep us in the place of "do
offering nothing now" or "wait till the

IrallS 101 UOlU X\6u66niaDlC ITIOIICV abroad);
$66.00

w

With Cold at $70 Pei Ounce
E.

Harold
„

.

of

Barton

.

roots

San

Jose, Calif.,

,,

views

Calls for

and

a

gold, sound

on

money

immediate return to

an

economic

an

gold value of the dollar at $70

new

s a

gold redeemable

a

ity.

i

Chronicle:
I

have

other

their

turned

had been

gold loose to find its market level

read

in

the

of

several

and even supported

of

Conditions have

for

paid, in the
that they

they
(I

future, which

words

0f others.

(not

long
opportunity

golden

while

ago),

so

out.

runs

our Again a certain large bank

it

read

indicted, though equally

"that

says,
the price of
increase
inflation."

mark

to

gold

would

This

is

up

propaganda,

scare

flation

right

here

hoarders

well

as

in

to $100.00 per ounce,

past

10

years?

with
up

private

some instances.

country, especially the "Com-

guilty);
offering

higher price

a

of

not

and

now

as

experience these
This: labor still

our

why it is only natural that trade
will go where the greatest return
Chronicle," the present frozen price of gold *n goods can be received for its
the views
of
bankers, industri- in this country is utterly inade- money. Any one can buy more
alists, economists and others on quate to secure the best interests with $54.00 to $100.00 than he

leading
our

financial

mercial

publications

the subject of gold, sound
and
economic
stability.
matters »of

are

that

portance
does

not

near

future,

if

find

money

These

vital

such

im-

government

our

solution

a

shall

we

influenced

been

throughout

in

by

the

them
three-

than

more

in the capacity of a
prospector,
miner,
oil
driller, contractor, minister,
teacher, field engineer, and inscore

years,

farmer,

salesman.

surance

Along the way

have raised and educated nine

we

children

and

to

date

grandchildren, and
rich

nor

very

middle class

U.

A.

matter

My

is

just

a

so-

family of the

credit

on an immense scale, in
order to prevent the total collapse

of our entire economy, especially
agriculture. Obviously we cannot
go on doing this forever, so there
comes a time when the wheels of
our economy cease to turn so
ment and

suffering among
involving loss of

savings,

homes

that were not
paid for, provision for illness and

this

old age.

and

recession

and readjustment must

Same°o,TportunTvfor life^iberW and"materia"" arelorad down'to
have

we

had.

red

ask

for

willingly

nor

have

the views I

less

anv

I

STSbo^flS"
the

of

life

economy start on

.,

In any intelhgent consideration
of this subject we must

^

recognize

which are

incontrovertible
incontrovertible.

fJrSt ~ThFree 3Ild
I's Sutely ^necessary
necessary

No

has

who

man

"grass roots" of
and

through

passed
"

lived

«rith

momnmr

what occurred to all of
look

the

uoon

"de-

several
us

therein
citnn

nresent

the welfare

pioyment

e

his posterity.

of

under our present policy.

staggering amounts which

?«-

Tf

cmiarelv

tbk

nnfi

{,flvprnrnpnt

to

ud

our

to

congress

•

d
Th

bttlp

•

ahont

f

who

or

' \

.

n

out

it

talking

what

anv

got

us

^no or wnai goi us
Tt

,

_

'

work

n~p

tbg

f

t

.

now

down

will

with

world

values

unpoual

time

we

we

us

fall

^^ 1vaiues we wi
again

unless

.

,

'

noli-

forget

we

monev

.

managed

exoonents of

baronsand.exponents ot managed
kind

Pro£it

wh°

the dis-

from

to

aubuiuieiy

By

the

term,

pros-

in

sanity
the

can

for

such

we

are

^

^

^

^

^

New Deal policies that make for
inflation and living beyond our
income, on the individual and
national levels. Fourth, by hard
wQrk ^
u
^
^
start Paying off the enormous
national debt and thus cut down
tbe back-breaking load of interegt

Many

payments

Qf

^ as
dollar,

i^i^n't
isn t

(which

(which

nation's

nowi

it

no

no

now;

work with firm resolve to get
out of the depi0rable and dangerous condition we are now in

Sixth

—

j

1

freedom

°n trade"*'thSTSS?
can
■

*

This

1

be

pe

" Xev" Pr°SPentymiict

Second
There
aecona—there must k.
be

r,.;.

c

basic

a

nized°bAT1aflSlnr^Rnn«VainienrdeC0+rt
facflitatP ?iad^nt Thlro
r J°

same.

is

i

true

iar^n
ignore

today

Ihf
e

f ^eS
fact or

this

th'p^n

regardless

vertib]

aS

and

goid-baeked

change under

and thua
n0w

our

°Pe"

ciosed

aetinn

sound conunit

wdioie

nf

ev

econorny

the doors of trade

and

others

fast

ing t0 our products. Our

governor

by evalu-

demanding

d0l ^S
°UnCe 38
I* TntTl a?d-°f others dollars
.demand, others give. Thus
and giving as
many
as

in-

the doors of trade and

opens

are

now

living in

so

°Ur PF1Ce f°r thGir g°ld'
pr0minent writer says

many

ounce
our

in

wordS) ._that $70.00 per

™
'

+

life, are very high. If we could
stay on this high plane all
might
be
well, but we cannot do so

under

the

Because

present
our

frozen

the

world's

basic

completelv

istie

nripp
P
,

set-up.

price
unit

of
of

arhitra™
i

Why?

government

o

1. e.

gold,

mcL

$35.00




.

heavy

the

eyes

a

„„r0oi

per

same pnntmg-press money,
m turn ls backed by a
totterinS» over produced, tax

a.

has

value, at
onri

P?°^e bonds, redeemable only by

"

the

ebb

Why
and

.

shut

flow

tides in human affairs?
i,•

ounce,

to

economy.

,

of

.

„

dollar

0ne-half

and

and

insurance

benefits

nonsense!

ment

of

What
a

that

already

the

measure-

other

amount

of

goods

on

the market?

much

now

or

devalued?

(re-

or

that

the

services

1934

as

we

it

If there-

fore\ we cannot buy one-half

way

per-ounce

is

dollar

will buy

sellmg on foreign markets all the
from $54.00

main-

to

are

solvency and self-respect,
past and present policy of

playing

is comparable to
so-called
game
of

the

Russian

roulette; sooner and not
much later, the last billion of defi-

cit

spending will

get

us.

is yet time to heed

some

"grass root" thinking and do some
"down to the earth", acting. I believe that under God, Who alone

thus assure to our children and
grandchildren that opportunity
that they have a right to expect

from their forebears. We do therefore petition the legislative and
executive branches of our national
government to consider and take

action without

unnecessary delay
to esta51ish a realistic> sound gold^
backed dollar and adopt such

monetary policy with other nations as will open the doors of
trade. Because of the high cost
q{ Uving preVailing nQWj and the
price of gold abroad, it will be
necessary to raise the price of gold

to at least $70.00
Drominent

A

per ounce,

economist

^

and

r u 1U'

5 pe

after

study,

1 nai we

old
™l11 see 75-cent wheat and
e

.

ce for

w

Fellow citizens, we must let

citizens

the

*bat will open the doors of trade

live

still

and

of

tra

our

their

is

lives

caus-

their

in

group of citizens.-,,ScoresrfJf .metal
gold, copper, lead, zinc,
.

dow

of

because

the

present government policy toward
oroducte

could

in

whteh^

holds

the

tneir proaucts, wmcn noias me
price down while their labor and

growers

(a

reveals

penence

that

smaller

group

than

though a

great

when

the

pendulum starts down it does not
stoP un«l the bottom has been

reached.

BARTON

San Jose, Calif.

■

July

supported by taxpayers'money to

even

distresang

°ur tprl=| '°magy be'toSTtl^E^
year may D^,l0°

costs soar to the sky.
nAnuLU
On the other hand, contrast the 663 South 9th Street,

material

27,

1953.

PAfliyAr

Willi

iinH

KOOger, Mp|) Wltll
pj

. Op.„r;i;.c n.
rllOl OwliUlllICO UUi

sur-

CHICAGO, Ill—Arthur T. Rod-

and

theSe tw° commodities* T°bacco their
is a national liability of the first
magnitude, in physical health and

fire

amounts

time.
can

caused
losses,
these
alone, if saved and ap-

In truth not

one

good word

be spoken for the obnoxious

Whereas, without metals
country would never have
become what it now is nor could
weed.

our

course

it

has.

not

I

even

tional

allowed

rights for

their

Augtin

G

Ki

doin

business with First Securi-

ties Company of Chicago

Sept

in

this

what moral or legal principle?

None, absolutely none!
Then let
our government and Congress put
an end
of this injustice at once,

effective

UmCag°'

1953

1

^nrifypp

M

hxi

hppn

Vipd/I

Vv#

Rn^'pr1
?Q°9dogep'vS15 fr^ i^?o 7.
^
fn^rtnPrmRinf
Hpw,,

H
„
I Prinr
/
?ord' ,RodSer & Co- Prior to formf

p

,

tn

PfgfpiSca^ps.c?^?v^?the+^p
Si

S.
yA
Corporation and A. G. Beckbr &
g /
!'
,

r

.

,

.

.

Austin G. Kipp, who will be a*
registered representative of First
Securities Company, has been associated with Mr. Rodger- since
1930.
wdb

he

Previously
tbp

Chicago

Trust

constitu-

survival

free democracy of whose equality
and justice we boast. Is this fair?

as By

1933

has the dollar not been
Of

tbat long

mto

8°

or

'any other slide back to the old level where

occupation

mines,

more,

our

They have just as much

group

to

felfr

^believe he'S

representatives in Congress know
which we want. Stay on our p^esent high economic level by legisbating a sound gold-backed dollar

hardship

it continue to exist in prosperity,
let alone progress to still higher
heights of efficiency and enjoyment of living. And yet the tobacco grower is supported and
"that the dollai* had not been the miners are oppressed and
devalued
since
1933-34."
What many put out of business by law,

the

,

we

on

which

and

time

g^at

would also wipe out half of the plied, would wipe out the navalue of our bonds, bank deposits tional debt in not too long a

our

With gold

paid if

still

lar'ge

some

ing

useful

any

individuals.
monetary policy has
group of

for

f0r goid w0uld depreciate in

a

.

is

and

w! rzift

c?mpete paid for"; but the real fact is,
world trade and get it, thereby ^bai one-half or more is already
period of high prices for
every- disPosing
of our surpluses to wiped out by present inflation
thing; labor is higher than it those who need and will buy on and a sound
gold-backed dollar
has ever been in our
history, con- ai? e^ual basis of money value. 0f realistic value would help save
sequently the materials produced
^.e mu^- S^°P this vicious devalu- ^be other half and in time help
by labor are high.
In fact all a
f. - our cljmrency caused by recover the half now lost., This
services preformed
by either men P.n"
f, such huge amounts of same writer in criticizing the
°!t ™acbines, in every department
togetner with bonds and still statement of another writer said,
of
lliird—We

that

backs,

our

Our

keeps them open that would be plus is now.on hand, which can? lot ^etLer^than the pref^ ^ol.T not be sfold fjsewhere at present

fnd thps .on]y can

1

be

yet
are

reveals

deficit spending

is backed with only one-seventieth go .on producing at a profit, the
?/ an oun,c.e o£ Sold?fAs long as government ^buying more and

tr^ed^be avoided^ Mv^swer bUY 3t
My Answer
Qne

is yes, it can be avoided

economy

our

Suppose that dollar

objective.

our

else

a.-a.'ss

«" —■

eremies °l 3mman^

lr

backed dollar,

and t agedy be avoided .

who

tain

that

?fght in princ pie^ and nearly sS
ifofigi^ peinaps exacny »so.
iP .iiguies>,

Thus sha11 we stop this' Sive~ chosen

clos

ment must cooperate in this

debt

collective

must

wiu bog down before we reach the miners) for instance; they are

a

book

of

mav

billions'

?

3m n0t
I TTV,° *lnjustice to
°Wn*-any
bld j do hate

must be paved with a sound gold- treatment accorded the tobacco

put

that

load

heartless °r we

and

taken s00n

Those who atf"g our ^ock
gold on a par
seek to change with
world
prices,

he/mdent

es^s-

of

the
our

some

p"i!f— fast Es'intem:
^
determined

same

on

us
well

l0t °f thG

right

suPPort. and

"sss^x ivffi

been^true^from ancfent* times
f from ancient times

still

owing

other billions

many
these

uui d

There have been

thoughtless

very

na " miners.

prosperity,

oT with^he" othe"r
Oiner.

of

don't know anything other than careful investigation
^ J

wv

Ar.ov.t

cross

of

of

billions

our books
other nations and

us

we

exchange

off

crossed

dollars from

all

that

and

words written about the present

P"asanv^ other

a

s^bsidv "orice

government

demand

spending today. Second, economy,
honesty and a sound business
practice in administering public
office from the smallest townshiP up to the nation's capitol.

unrealistic, untried

war production, with give-give, which humiliates ■ and
inevitable hMw tnvntinn onri
antagonizes the recipients even
tn<: inevitable heavy taxation and
L ,
mean
basic needs and legiti- PrintmS
Press money financing
emphasize that "working out"
mate desires recognized and
supnecessary to pay for the great " the onlT wav ouT anf don't
plied
No
one
nation
ha<;
the
surplus of goods which we can )SA me only way out, ana aon t
means
for that supply essential "either «at, explode, or sell under let anyone kid youitcan be done
in
i umu
7
supply essential
^
monev
set-nn—T
any Other way, and that is a long,
h
Jyg standard of hving, empbaticallv this nresent nros hard road to travel, and that road
lb

Penty.

untii

a depression, ana aiso to me in

°and11^remunerrtion ^nancda^y» andto ^ive the
other
and
remuneiation
^ons
chance
do

government

of

matter by what name it is called, individual or
' beneath our economy and go to -phis present

f.
look upon the present situaion without great apprehension
or

spiral

we,stop this vicious
prjces that is rapidly

cutdown

the

at

economic life

our

can

behalf

Never forget that while

have

we

have contracted

we

own

from

There

How

only the inexperienced or tne
blind cannot see is impending

theories of some of our professors

today.

of

our

grass bringing our nation to financial
roots
of the matter and stay ruin? Firgt Qf aU a sound donar can give wisdom for these
days
there long enough to do some in- by which we can trade and trade and Who gaid "Righteousness extelligent legislating and negotiat- and tradej in order to get more aiteth a nation but sin is a remg with other nations and try money. and still more money to proach to any
people," we can
and stop the economic crash that pay {axes and m0re taxes even prevent a serious depression and

level

ure*^by

h

the up-

the

experienced,

can

'

||.

,

our

of

ward climb again toward the high

about to set forth

am

.

can

of

purpose

background

of American

t

less

right down to the "grass

are

roots"

blooded
any

history for the

revealing

which

.

accept

written

personal
of

No

could

American

beclouding

in'

for

up.

lssue^and get down to the

This period of business

posterity

my

this

tragic

people,

many

of

more

tast,^ the result being unemploy-

in

desire

one

that

24

neither

we are

poor,

called
S.

have

There is

can

assuredly nothing complex about
that, then please let s have no

our great, economy
and that
others as well. The effect of
low price for gold is simply
this, in brief—because we Amer-

this

tragic

see

with $35.00.

of

of

icans are a hard working, ambitious people, eager for new worlds
times for many people. I was not to conquer in the realm of science,
satisfied
with
the
soundness of invention and production, we have
many of the views above referred
produced a huge surplus of goods
to nor did some of them clarify
that we cannot consume or use
the issue for the ordinary man. within our own borders, therefore
Therefore, I have undertaken to our government has introduced
set
forth
the simple
facts as I price support,
government
purhave seen them-—lived with them chase,
storage
and
guaranteed
—and

going
up,
materials
going
up,
services going up, taxes going up,
cost of all levels of government
going
up,
and
printing - press
money financing to the tune of
most $45 billion already and still going

changed that

so

Financial

and

we shall need every ounce of
production^ frdm every industry
and every man engaged in them
to meet dur obligations in the

for

dust settles," a policy with which
we
become
too
disgusted
for

have been indicted but not that supported by facts of our recent
those guilty of selling it to them history. What is making for in-

per ounce.

nations

selling

and

foreign market

j

while

bolster her
a
reliable

million

$25

gold

what

double

currency

1

Editor: Commercial and Financial

reported

a

Treasury

i.i..

.

in

(reported

and

getting very little at
price; with smugglers buying

that

his "grass

expresses
j

,

to

ounce

per

finances

paper)

Thursday, September 3, 1953

had

been

ComDanv

»

for

' years*

Leston

B.

Nay,

First Securities

President

of

Company, said the

combined business would continue
.

ln

c

the First Secur t

134 South LaSalle Street.

^

Number 5252

Volume 178

The Commercial and Financial Chronicle

...

Piiila. Bond Club to

V

1

.

1

f v

Hold Annual Field Day
Club

Bond

its

hold

of

annual

28th

advised

Field

Day

of the laws which

Club. A well - rounded
program of events has been ar¬
ranged for the outing, including

Country

and

sion

H.

Bodman,

Special: R. Victor Mosley, Stroud

Company, Incorporated, Chair¬
man;
Harold
F.
Carter,
HornWeeks; Russell

All this is well

M. Er-

miles to

&

Frederick

Golf:

T.

suffer

It

is

affirmative

Arnold, Harriman, Ripley

ment of

& Co.,

Inc.

Smith,

Sayers,

Barney

Chairman;

John

Bioren

Co.,

&

Colket

& Co.,

R.

Pen¬

Schmidt,

Harold

F.

Tennis:

Rawson

&

H.
•

Chairman;

Co.,

and
for

Blye, Jr., Wurts, Dulles & Co.,
Kurt J.
Huttlinger,
F.
P.

and

Butcher

pany,

&
G.

Robert

W.

W.

Guests:

Butcher,

Keen

Sherrerd,

Chairman;
& Com¬

Rowe, Stroud

Incorporated, Edward Starr,

at

the

Jr., Drexel & Co., Norbert W. Assistant to
Markus, Smith, Barney & Co., the Secretary
Walter L. Morgan, The Welling¬ of the Treas¬
ton

Bertram M. Wilde,

Company,

Janney

Co.,

&

V.

Robert

Wehr- 27,

heim, Philadelphia National Bank,
William H. P. Townsend, E. W.
Clark

ury,

laws

"We
start

It

to

need

Russell, be changed to
Blyth & Co., Inc., Edgar J. Loft, relieve hard¬
and Gordon Crouter, DeHaven &
ship situations
"

&

Stanley

Co.,

Townsend, Crouter & Bodine.
l

* i '

.

-

thing
our

M.

need

economic
Stevens, Hemphill, Noyes & Co., growth.
"There
are
Chairman; Newlin F. Davis, Jo¬
seph C. Morris, Jr., Frank L. New- also lots of
burger, Jr., Newburger & Co., technical
age

/Inc., and John
Thayer, Baker & Co.

E.

Co.,

Financial

The

to

SAN FRANCISCO,

been

has

Thruston

staff of Davies
gomery

members

and

San

to

the

Mont¬

of

the

Francisco

Stock Exchanges.

to The

Jacques

limited
"it

Financial

Chronicle)

C. Nordeman, member

tax

possible

be

to

get

a

out

that

•pointed

committees

of

over

50

been

.age of 60.




comes

pansion," Mr. Smith reported.
He cited problems in allowances
for
dependents,, for working
widows with children,
and "in

Congressional

Mr.

greater liberal¬

depreciation
deductions,
simplified and modified rules on
in

pensions and retirement
plans,
and "a good many things of spe¬
cial importance to small business,
including a better treatment of
deductions for research and de¬

law.

set

staff

up

to

analyze

Frazier

Jelke,
partner in
& Co., New York

Jelke

City, passed away
age

of 73.

i

to

quite

billion to near¬
that

apparent

is

there

bank

—

bonds

ment

of

"value"

a

ounce

an

such

if

"so

re¬

currency

situation.

we

to

were

I
go

dollars for

our

be

would

withdrawn

in keeping with

anxious to embark

much

is

on

so

none

gold

a

on

to¬

think they know
results would be.

I

the sorry

what

insurance

dollar carry¬

a

one-thirty-fifth

of

of gold per

dollar? If
"sacro¬

not

are

happens that the nation with
most money still denies the

been

done

the

to

But,

really talking about

American

nothing

1939."

before

as

are

we

the

is

has

that it cannot have the

value

what

has

dollar;

been

done

and

the

to

"value" of that dollar since Janu¬

1934, when, by Congressional

ary,

action, it was decreed to be 13 5/7
grains ,of fine gold per dollar;
and nothing will
be done until
alters

Congress

us

experienced
duced

say,

since

we

have

1934—the

re¬

"purchasing power" of the

dollar—has been due to
confidence
leaders

that

will

lack of

a

our

the

have

political
monetary

sagacity and forthrightness to
to

it

—

will.
however, that
never

inflation

the

of

"value"

that

hope, it

fair to

seems

some

redemption program based

price.

life

transactions

It

day's

the

on

deposits, govern¬

and

and predicated on

same

today's price structure.
I notice the Treasury
too

effect

benefits—consummated since 1934,

ex¬

gold standard of $35.00

Knox

dollars

an

that Mr. Shull is

me

that

a

be raised without its hav¬

"corrupting"

a

gold

of

imaginary

an

on

that

dollar

the

be

see

rigidly

maintained at $35 a fine ounce of
crime to possess gold; but, in the main, that "In¬
gold and this being so, it is ob¬ flation" has in all probability,

citizen the privilege of exchange;

it is

further,

than

a

gold

that

vious

is

worth

more

Ironically enough, only the cen¬
tral

governments of Foreign Na¬

tions

obtain

can

been

due

to

the

gold at the low

to equal the same

We

fully

gold value than

for the most

restoration of the

If

when

and

dollars,

they
for

dollar

able

are

notice

I

they

to
re¬

deem

the

sence,

what we are doing is giving

rest

of

gold.

world

the

In

es¬

present

a

and.denying the same privilege to
taxpayer. Yes, I would like to
the United States back on a

our

but

standard,

gold

$35.00 valuation
suicide

at

that

...

not with a
it would be

2309

South

statement,

G.

GANS

Mr.

"We need

a

gold standard";

with his claim
price of gold should be
raised above its present $35 level.
that

we

disagree

the

all highly competent mone¬
experts—past and presenthave
strongly
emphasized
that
tampering with the gold value of
a
nation's currency is fraudulent,

For,

tary

dishonorable, and to be avoided at
all costs.

FREDERICK

price.
PHILIP

but

with

agree

Polacek's

obtain

now

dollars

more

it did prior to 1933.

price, and fortunately for us, they,

part, are bankrupt.

it

fact that

requires about 70%

$35.00.

G. SHULL,

Connecticut State Chairman,
Gold Standard League.

Florence,

Tulsa, Oklahoma,

2009 Chapel

Street,

Aug. 20, 1953.

New Haven

15, Conn.,

1

Aug. 18, 1953.
Mr.

F. Frazier Jelke
Frazier

"officials
ten-fold,

remained.

such

price

could redeem

see

F.

it

which, let

problems receiving attention.
On
the
incentive
side,

and

the

seems

the

ity

increased

sanct," what transactions are?
Again, Mr. Polacek says that
why has the dollar
has

value to

in

afraid

getting some sense in the present
discriminatory combination of ex¬
cise taxes" as among the hardship

joint

members have
proposed
Aug. 28 at the changes in different parts of the
Treasury

partner in Gruns, Nordeman

Treasury.
to a fine

useful to show for
It is quite clear that
is full agreement that we
basic changes to remove tax

referred to

that

on

has

revalue the price

very

Smith

to

Yes, let us get back on the gold

close working
relationship between Congress
velopment work."
and the U. S. Treasury, Mr. Smith
the

and

passed away

the next year.

laws."

of the New York Stock Exchange
& Co.,

substanial

attitude reflected all through

new

the

basis

should

opti¬

into
effect on
a
at first," he said,

things

some

Describing

Jacques C. Nordeman
(Special

Smith

is necessary to put

it

if

"Even

Calif.—M. B.
added

securing

about

tax reforms with in

Chronicle)

& Co., 425

Street,

York

New

Throop

expressed

Smith

Mr.

mism

l)avies Adds to Staff
(Special

Dan

& changes necessary to remove an¬
Fricke, noyances to taxpayers," he said.
In spite of the tight budget situa¬
tion,

off

January

based
—

standard, but before we do, let us

barriers to continue economic ex¬

Blair, Rollins

John; Derickson,

getting
when

know

we

quickly it would create panic.

so

efforts.

there

and to encour¬

Lawrence

Treasury,

around, I think we'll have some¬

: i*

Entertainment:

are

be

gold, the amount we now have in

produced valuable in¬
for
consideration
by

and

would

maining constant?

and

Congress and the

both

many

gations
price"

from less than $30

ing

price

gold

with

tent

the

has

compared to today,

depreciation

declined

It

which

the

of $35.00 ^vas set
what we could buy

as

This being so,

groups

formation

when

fact, yet in all this time the

a

a

Aug.
declared

1933,

100% in certain commodities

$35.00

completed
extensive series of hearings

very

by raising the

depreciation

the

This
be

tee, he added, has just

on

that

"These

seminar
States

National Debt .— „td
aspect of dollar-obli¬

one

ly $300 billion. Doesn't that make

and merchandise.

many

address

an

price

dollar

over

do the spade
work
for
the inembers
of the
session of the Central
Committee on Ways and
School of Banking, conducted by House
the University of Wisconsin, Mad¬ Means and the policy officials in
the Treasury," he said.
ison, Wis., Dan
The Ways and Means Commit¬
Throop Smith,
In

Ristine & Co.

to

compare
a

Why

of laws need to be changed to relieve hard¬
ship situations and to encourage economic growth.

points out

price of gold to $35 art

the

ounce,

appropriate
"value"
of
obligations-payable-in-fixed-numbers of

present

Offing

Throop Smith, Assistant to Secretary of the

Dan

John

but im¬

we

further

Fort

Attendance: Walter W. Buckley,
Walston

corruption.^

Now, subsequent to the raising of

ing

raising

Tax Reforms in

A.
Brown,
Jenks, Kirkland & Grubbs.

the

on

something that

as

against

cannot

back

Lawrence

and

"secure

back

Wellington

Co.,

is

the official

one

to do this, what

were

latter is defined

something "sacrosanct" about this
$35 price and isn't it a price that

am

Company, Chairman;
Francis M. Brooke, Jr., Brooke &

we

(Webster's) of "sacrosanct" is that
means
"inviolable";
and the

in the last 15 years—and if we go

The

Lloyd,

we

of today

going

is

"there

says

depreciation that has taken place

cordingly.

& Co.

of

Mr.

view,

devalue tlfie dol¬
lar—then how can he explain the

generally, employment would shrink at least 50%
and our standard of living would be affected ac¬

Roberts
&
Parke,
and
Scattergood, Boenning

Poole,

favor

supporting

Polacek,

mention

He contends that

than

worse

in

price of gold,

competition in free markets.
If legislation or rules tantamount to laws such
as those mentioned obtained in trade and industry

Chairman;

Roberts,

Osborne

OPA.

is

is

cons

it

it

as

and

the dollar

,

would the results be.

Chester
Mark-ups should be determined by
blessing,

today

knows

he

dollar

buy in 1940.

agine if

conceal¬

wilful

the

or

He

Is

and

pros

price of gold, but in the present
writer's view, that statement is
open to question. One definition

compared to 1940 will only buy

He

this and provides that the
thing to legislate against

misstatements

SEC's

Bowies'

& Co.

Publicity: Arthur Horton,

ington,

one

value

same

1940?

Gold Standard. I am, too,

relevant facts and quite another to adopt

the

had

Bunn,
Jr.,
George W.

F.
and

Elkins, Morris

Elkins, Jr.,

Co.,

&

the

in

could

economically unsound laws of the instant nature,
and the NASD 5% mark-up philosophy, which has

C.

Edward

is

It

is

the

nothing sacrosanct about the price
of $35 per ounce" as the official

Astronomic

our

about 45 cents worth of what

legislation, embracing the New Deal philosophy

seller beware.

Mr.

Cortney's

brings

inferring that dol¬

all knowthat

event, the American system of free enter¬

John C. Bogan, Jr., Sheridan
Bogan Paul & Co., -and Eugene

Arrangements:

of

as

ties

man;

and

the

been

been well aired.,

have

argument

already a fact.
deluding himself that our

it goes. But it fails by

Colket & Co.

Illvainb, G. C. Haas SjCo., Chair¬

his

which

tinued"—until

in

and

to me, that his dire pre¬

seems

diction

be reasonable to expect Mr.
suggest doing away with the SEC al¬

of government reverses

re¬

lar value would be impaired.

prise is based on the principle of caveat emptor, or
let the buyer beware. The existing Federal securi¬

Tranportation: Leighton H. Mc-

"Chronicle" has
according this de¬
bate, there would seem to be no
reason
why it cannot be "con¬

would

us

loss

issue) at this time." With

already

is

of Life Insurance

amount

National Debt,

Walter
A.
Schmidt,
Schmidt, Poole, Roberts & Parke;
Raymond H. Gage, Jr., and W.
Walbert
Smith,
Jr.,
Penington,

In any

heavy

make

outstanding

together—but that is what is needed.

Chairman,

raised, all of

Cortney's, your

port

He constantly

very

to

out the

hardly

Demmler to

Severing,

as

a

most important

extension of the cooperative sup¬

an

people

sound ominous, he usually

far enough.

go

would

It

far

as

be

order

conducting a review of
a view to simplifying them
done consistently with its

the

be "con¬

can

a

as

June 11

the

that if the price of gold

us

to

were

was

Company,
Harry
B.
Snyder, Yarnall & Co.

Jr.,
Stroud
Incorporated,
and
good,

be

can

rending.

minds

program^."—Ralph H. Demmler, Chairman of the
Securities and Exchange Commission.

&

&

that

why

on

for

concern

heart

such

investors, and it wel¬
comes
any suggestions which may be made to that
end. It is also reviewing its statistical services and

Woodcock, Hess & Co.

blower

render

to

letters

this is

article (Mr. Philip

always interesting to read

Shull's

His

request of it.

wherever

Warren

administers, the Commis¬
readiness

tinued

price of gold should be $35.00
ounce—they are so irrational.

presented for amend¬

statutory duties to protect

lee, Suplee, Yeatman & Company,
and

in

Eck¬

E.

It is
Mr.

appropriate committees of Con¬

its rules and forms with

feldt, Chairman; William Z. SupInc.,

the

as

"The Price of Gold"

Chronicle:

"The Commission itself is

handling the

Theodore

itself

hold

gress may

consist of:

Registration:

will

assistance

Kidder,'Peabody & Co., ex officio.
field day

are

ment of the laws which it

will be Harley L.
Rankin, Goldman, Sachs & Co., as
Chairman; Theodore E. Eckfeldt,
Stroud & Company, Incorporated,
Vice-Chairman and Alfred Rauch,
of the program

The 10 committees

ready to receive

suggestions by any group of citizens
its rules and forms.

"Similarly, if proposals

phases

various

the

discuss

Controversy

of James V. Polacek.

with respect to

activities.

other

Gold Price

on

Philip G. Gans expresses disapproval of views of Frederick
G. Shull, and Mr. Shull, in turn, answers letter to "Chronicle"

administers.

it

"The Commission will hold itself

inter-city golf match, a tennis
robin, a stock exchange and

Overseeing

More

that

Editor: Commercial and Financial

round

numerous

Commissioners

the

forms of the Commission, as well as for amendment

Sept. 25 at the Huntingdon Valley

an

Enough!

they intend to
make suggestions for revisions of various rules and

—

17

LETTERS TO THE EDITOR:

!rl

But Not

"Industry representatives from time to time have

.

The
Philadelphia will
Pa.

PHILADELPHIA,

(829)

Shull

Replies to

Critic

Editor: Commercial and Financial
"*•'

Chronicle:

Louis

Sherfesee, Jr.

Louis Sherfesee,

Jr., partner in

& Co., Boston,
Aug 30, at the Polacek, your issue of Aug. 13, passed away Aug. 30 at the age of
expresses hope that discussion of 42.
The

letter

by

Mr.

James

V. H. C. Wainwright

;,

it

The Commercial and Financial Chronicle
jr.

Continued

Inflation in Communist Countries
EINZIG

By PAUL

BsPosi„'s •' ?,avinss,
Banks at Hew Peak
Richard

of inflation in Communist countries to
Keynesian principle that excessive capital expenditure gener¬
ates inflation. Says Stalin recognized, but ignored, fundamen¬
tal economic laws and forced his policy of excessive capita!
expenditures on satellite nations. Points out in capitalist
countries effects of excessive capita! investment can be offset
Einzig lays cause

Dr.

for

reasons

than in

more

to

infla-

the

is

it

country

the

a

distribute

in

goods

of
dis¬

available

U. S. S.R. and

country is in a worse position

lite

quantity

States,

ist

mainly

re¬

for

the

of

unrest

recent months

the

for

and

change in So¬
viet

policies

under his

comrades who think

.

.

suc¬

"Those

cessor.

and

that the

.

them

by

ple

...

Yet

throughout
the

S.

U.

his

stated

are

or

new

rule

long

S.

death.

He

leaders

the

on

the

and

imagined

other

that

his

of

eve

Soviet

they

were

able to

ignore and alter the Key¬
nesian
law
according to which
•excessive capital expenditure gen¬
inflation.

erates

thought it

They

possible to devote with impunity
abnormally high percentage of
the national productive capacity

an

to armament,
normal

They

the

grossly

was

Russia

The

production

•quantity

in

and

unfor¬

to

pursue

result

of

was

consumer

inadequate
both

in

quality

other

in

and

the

States

course.

same

goods

forced

Satellite

tunate

that

equally ab¬

an

percentage to industriali¬

sation.

the

and

in

Communist-

controlled countries.

The recent report issued by the

clearly

illustrates

the

production

of

provided

The plans of

Eastern

Czechoslovakia
1953

economic

of this disregard of

economic principles.
and

for

a

Germany,

Hungary
further

for
ex¬

pansion of the industries produc¬
ing capital goods. The purchasing
power put into circulation in this
connection

not

met

by any
corresponding increase of the out¬
put of

was

consumer

goods.

The result

inflation, leading to acute
shortages of consumer goods. Un¬
was

der the pressure of facts the East

German

Government

had

to

ac¬

knowledge the operation of

eco¬

nomic

con¬

laws

trolled

by

prices

raising
and

the

by

cutting

This caused widespread
discontent culminating in the riots.

wages.

In

Czechoslovakia

munist

of

were

sought

to

Savings

measures.

cancelled,

bonds

Com¬

to
economic
laws
by
highly drastic deflation¬

monetary

ary

the

Government

conform
means

repudiated.

Government
Even

so,

ac¬

cording to the calculations of the
Economic Commission for Europe,
prices in Czechoslovakia in terms
of

wage

twice
in

and

units

are

between

now

eight times

as

high

as

Switzerland.

In the U. S. S.
R., too, inflation
due to excessive
captial

expendi¬

ture

on

heavy industries

has become

fairs.

From

monetary

and

arms

chronic state of af¬
time to time drastic

a

measures

that the demand
for consumer goods need not ex¬
ceed the supplies available.
In a
Communist country, on the other

chasing power,

were

carried

out to cope with the situation.




so

hand, there is little or no induce¬

No

In¬

public to save.

capital

of

banks

528

a

standing

4

page

the

of

reputation

and

debt than
industries,
merchandising industries and the

Some

proportion of
goods

greater

consumer

can

in its trade circles.
smaller companies may be

company

mil¬

$23,731

to

two men, like.
We would also point out to the
determine,
holdings now exceed $12 billion.
that,
where
common
if
possible,
whether there are company
younger
men
of ability in the stock capital can be raised on
According to Richard A. Booth,
reasonable
terms,
company who will be able to take historically

banks

Savings

%

dependent

mortgage

it

and

President of the National Associa¬

President.

Savings Banks and

panies

Institution

Spfingfield

Savings,
Springfield,
Mass., depos¬
its

sav¬

the nation rose

underwriter

An

SI 12,000,000

takes

a

—first

great

new

a

record figure
of

$23,731,-

000,000.
6%-

is

"This

greater

the

than

Richard

A.

be

to

that they

appears

the

on

expensive,

more

is

stock

own

underpriced

will

and

market

be

Plan

therefore,

Assuming,

for any July since com¬

that

we

to sponsor

the

willing

be

would

in
"During

pilation of these figures began

of

of financing should,
provide not ..only for

plan

Any

Financing

Drafting

course,

the

the

in

selling sub¬
the future.

stantially higher in

Booth

is

and

the largest

investors' con¬

fidence.

$105,000,000
during July,
952,

on

it

because

surface

ability to maintain

gain

of

1

many

responsibility when
he
secondly because present tax rates
agrees to sponsor the issuance of
(which
recognize interest as a
a
company's securities, for not
deduction before taxes) make the
only does he assume the liabilities
interest cost of debt
borrowings
under the Securities Act of 1933
very
low, and thirdly because,
but also his reputation and success
many managements feei that their
in business are determined by his

during July,
to reach

are

should raise common stock money*

appraise smaller companies.

of

banks

broke

go

can

sold, as

be

times when it is
not possible to raise common stock
money
except
at
bargain
low
prices. I might point out, how¬
ever,
that it is often difficult to
there

quickly under bad man¬
agement. This management factor
therefore makes it more difficult persuade managements

to

ings

company

should

stock

common

com¬

pretty

528

the

in

mutual

Large

future.

often survive extended

of poor management but

small

a

or

to

on

the

can

periods

for

one

necesary

is

in

over

tion of Mutual

company's

needs but

current

also for its further needs into the

the
foreseeable future.
Thus, financ-'
through saving would be contrary
next matter to be considered with
each month of 1953 to date except
ing plans should be designed so
to
the
equalitarian
principle.
the company's officers is a plan
May,'the increase in deposits has
1947,"

There

capital expenditure neces¬

sarily puts the Keynesian law into

said.

Booth

Mr.

of

that of the same month

exceeded

of

securities

in every one

the

company,

that

financing.

officers

-

of the

the
whether

company

be raised should be
8.5%."
through sale of debt obligations
or cut down the purchasing power
or
through sale of stock, or some
The large gain in deposits re¬
of the public the inadequate sup¬
combination
of the
two.
If it
flects a continued steady inflow of
plies of consumer goods disappear.
were
decided to sell debt obli¬
funds
from
savers.
Both
The result is a lengthening of the new
amounts deposited and withdrawn gations, the next decision sto be
queues and a^ute discontent.
made
must
be
whether
they
during July were the highest for
It seems that Malenkov is be¬
should be by mortgage bonds se¬
any single month since 1947, with
coming aware of the need to rec¬
bne exception—amounts deposited cured by a lien on all or part of
ognize economic laws. Hence the in
the company's properties, by col¬
January, 1953, exceeded the
announcement of the decision to
lateral
trust
bonds, by straight
July figures.
Both deposits and
increase the production of con¬
withdrawals were 9% higher than debenture obligations, or possibly
sumer goods at the expense of re¬
in July,
1952.
It is significant, by convertible debentures; also
armament
and
industrialization.
the length of the debt obligations
however, that deposits so substan¬
The significance of this change of
—or
whether they should -be in
tially exceed withdrawals that it
policy cannot be overrated. It is results in record
serial maturity form.
We would
deposit gains.
much more
important than the
also
consider whether or not a
"The climate for savings," Mr.
half-hearted conciliatory gestures
sinking fund or purchase fund
Booth said, "is, I firmly believe,
made since Stalin's death in the
should be provided to retire all or
more
favorable than it has been
sphere of foreign policy.
Until
for years. The spectre of inflation part of the debt prior to maturity.
recently the increase of the pro¬
If the money were to be raised
has faded, at least for the time
ductive capacity of steel, for in¬
being, so that the individual can by the sale of stock, we would
stance, was proceeding in Com¬
discuss whether it should
be in
munist-controlled

the

time

short

within

that

fear

to

countries at

an

a

S.

U.

reduce

satellites would materially

the present

superiority of the steel
output of the U. S. A. and .allies.
doubt

No
to

But

continue.

will

end

that

efforts

Communist

the

bound to slow down if
the output of consumer goods is
to be increased in accordance with
they

are

order

inflated

to

offset

purchasing

the

existing

power

of the

public in Russia and other Com¬
munist-controlled
countries,
the
output
have

of consumer goods would
be increased very sub¬

to

be found
necessary
in order to allay the
discontent.
The frequent repeti¬
This

stantially.

may

tion of monetary

acted

manipulations to
purchasing
power

this

cancel
as

a

disincentive

and

dis¬

couraged productive effort. Hence
the
was

disappointing
freely

output

admitted

in

continued

riots, went

in

All

of

support, for

our

us

we

should

vertible

and

all will bene¬

banks during July
reduced their high mid-year cash

savings

by

holdings
build

up

$61,000,000 in order
earning assets. Mort¬

holdings

reach

a

new

rose $138,000,000 to
peak of $12,100,000,-

000, or 45.6% of assets. Holdings
of corporate and other securities

recent

long
Com¬

a

common

the

to

stockholders.
In

a

these matters
we would make

study of the company's

capitali¬

zation and the relation of past

and

projected earnings to the various
proposed issues of capital securi¬
ties.
We would also
investigate

high
$50,000,000, and of
grade companies in the same and
S. Governments $15,000,000.
other industries, and compare the
proposed capitalization plans of
our
company
with those of the
D'Assern Co. to Admit
capital

Co., 20 Pine Street,

York

City,

New

York

Stock

admit

Bayard

members

the

of

Exchange,

will

Walker to partner-,

ship Sept. 15.

on

debt,

ent

particularly under pres¬
tax rates, are very

corporate

much less than the dividend costs
on

equity securities, we must re¬
that debt has to be paid

member

off out of income
that

Baker, Simonds Adds
(Special

to

The

of

structures

Although interest charges

others.

D'Assern &
New

Financial

when

after taxes and

for

charge

the

'■? maturities, sinking fund

Chronicle)

DETROIT, Mich.—Don E. Mac¬

amortization
the

sidered

of

debt

total

or

also

is

financial

serial

other
con¬

costs

particularly burdensome
munist leaders realize that they become connected with Baker. in periods of poor business.
We
would counsel the company, there¬
Simonds
&
must pay more attention to eco¬
Co., Buhl Building,
fore. to keep its debt at a reason¬
nomic laws.
members of the Detroit Stock Ex¬
ably low figure. What might be a
change.
light proportion of debt for one
company or in one industry might
With El worthy & Co.
be
a
Col. R. P. Campbell
very
heavy proportion of
(Special to The Financial Chronicle)
debt in another, so a large degree
Col. R. Potter Campbell, U. S. A.
SAN FRANCISCO, Calif.—Mor¬
of judgment is involved.
Gener¬
ton E. Lichtman has become asso¬ retired, passed away at the age of
ally speaking, however, the heavy
ciated with Elworthy & Co., Ill
61. He was formerly President of industries with substantial plant
way

towards

Sutter

with

Street.

making

He

Hannaford

&

Stone & Youngberg.

was

the

formerly

Talbot

and

kenzie and Warren H.

the investment
Peterson &

Co.

will

company

not

ex¬

borrowing power, or use
crown
jewels, in the

its

current

operation.

Tipton have

firm of Campbell.

may

for
I

afford

as

utility

to

companies

carry

a

much

example of the need

good

a

borrowing

conserving

would

like

American

to

The

as

Prior

its subsidi¬

Bell System.
War

having

capital

in

form

the

the war, the System

with

faced

was

for

demand

tremendous

a

and

debt

of

With the end

two-thirds in stock.
of

the

II,

followed the policy
about one-third of its

had

System
of

the
Tele¬

and

and

World

to

power

out

will refer to collec¬

aries which I

tively

point

Telephone

Company

graph

expanding its services and facili¬
which required raising a vast
and
unprecedented
amount
of
money in order to finance the ex¬
ties

pansion

turned

it

As

program.

out, the capital of the System in¬

by

creased

the

1946

1,
is

which

in

billion

$5M»

over

and one-half years

seven

Jan.

from

June 30, 1953,
increase of

to

average

an

approximately $750 million a year.
Earnings retained in the business
contributed
approximately
$320
million so that practically all this
derived from the sale

was

securities.

of

.

order

In

obtain

to

amounts of needed

vast

such

capital, it was

integ¬

the

maintain

to

necessary

rity of the

stock and the

common

ability to sell it, which absolutely
The

borrowing.

excessive

precluded

therefore, decided
substantial portion of the

System,

that

a

total

program

would be obtained

by the sale of convertible deben¬
ture
issues
which
would
carry
conversion

terms

making
their
into
common
stock attractive and probable. As
a result, in the seven and one-half

early

conversion

years,

the

its debt
its

has

System

increased

by about $2% billion and
stock

common

and

almost $3MHomion,

surplus by

including the

$320 million of retained earnings
mentioned
It

be

assets—such
—can

Experience of Bell System
As

,

increase

investigating

with the company

the

increased

also
U.

rights is¬

existing

sued

The

to

through preemptive

be

fit."

straight

preferred
or
common,
or
not the sale should

whether

lend

of

form

the

dollar.

with courage

Washington

initiative.

his

of

power

which

public statements in various Com¬
munist countries.
This, together
with the recent

purchasing

gage

Malenkov's announcement.
In

the

all

up

the money to

preferred
Current efforts to solve our eco¬ stock, convertible preferred stock
relatively
common
stock
and, if con¬
nomic problems are being made or
S. R. and

There was reason

pace.

in

confidence

have

the

haust its

first discuss with

We would

of the last six years.
operation. It produces an infla¬
The total increase for the past 12
tionary state of affairs.
Unless
months has been $1,854,000,000 or
the authorities adjust the prices

alarming

Economic Commission for Europe

consequences

of their full pur¬

the

R., Stalin ut¬
terly disregarded the truth he so

clearly

temporarily

may

use

accumulation

laws."

over

the

for

Peo¬

create

nor

consumers

renounce

corresponding
by the public.

the

society, but they cannot change
them,

The

a

saving

of

degree

by

ment

them

abolish

accompanied

deed

discover these laws and
in the interests of

can

employ

capital expenditure can be
avoided
if such
expenditure is

re¬

laws

new

fundamentally mistaken.

country

can

leaders

its

abolish the economic laws and

place

inflation through ex-^

cessive

were

sponsible

State

than

Capitalist country to over-in¬
vest with impunity. In a Capital¬

conditions

Soviet

for

Communist

a

a

which

Einzig

Indeed

tribution.

Satel¬

the

in

Dr. Paul

of

lion.

excess

the

reports

of $112 million dur¬

ing July, bringing total deposits

elemen¬

tionary condi¬
tions
in
the

Banks,

Savings

from

Investigation and Buying
In Investment Banking

Booth, President of

net increase

in a Communist
not possible, any
Capitalist country,

that

fact

tary

fundamental

tingly explained the

tual

conjuring

monetary

however,

alter,

can

"Bolshevik" shortly
death. Stalin unwit¬

his

before

of

amount

the

LONDON, Eng.—Writing in
Oct. 2 issue of

A.

National Association of Mu¬

the

by private savings.

,

^

Thursday, September 3, 1953

...

(830)

not

previously.

would

accomplish

difficult

been

with

than

a

such

a

debt

the 31%

ratio

of

which

much

stock

a

great

capital

convertible

deal

of

1946
more

existed

then

if it had not, during the

raised

if

to

vast financing

if it had started in

program

or

have

impossible for the System

period,

common

through the sale of

securities

which

into

were

soon

converted

stock.

Actually, of the almost $2

billion

of

convertible

issued during

common

securities

this period, all

but

•

Number 5252

Volume 178

converted

be* considered the relative prices

had been either
by June

about $280 million

Despite the large acqui¬
common
stock capital,
debt ratio has risen over the

the

would

which

of

received

be

the relative

company,

30, 1953.
sition

would

which

redeemed

or

be

indentures

bond

time has

that

since

and

been de¬

in

the

Thursday

offering
ible

convert¬ ing about,

$625,000,000

of

would

debentures

cisions which

new

a

program,

envisage
which

would

it

fronted

had

been

have

is

of

its

stock

common

including
the security

is

curity
is

to

to prepare

necessary

In

circular.

tive

or

if

the

a

is
se¬

sold privately

be

it

descrip¬

a

either

event

description

Protecting

property of the company must be
furnished and the terms of the

In

Borrower and Investor

the

various security described. Also financial
classes of securities which may be statements and schedules must be
used for the raising of money, it prepared.
•

considering

the

is also necessary to consider what
ture

managing underwriter us¬
ually arranges to visit and inspect
the plants of the company.
This
gives a chance for an on-the-spot
investigation of the manufactur¬

be

can

which

accomplished

will provide

the company greater
increased flexibility in

or

ease,

raising

additional

future.

It

is

capital

the

in

to

ing processes, and also an oppor¬
tunity
to
talk
to
officers and

should be
mortgage or in

plant managers on the job. Con¬
ferences
with the sales officers

also

necessary

study the terms which
included

in

the

the indenture

relating to

deben¬
ture issue, or in ,an amendment
to the company's charter in the
of

case

preferred

a

that

the

a

stock

and

The

issue,

security may

provisions
chasers

covenants

enants
not

later

may

the

for

only

are

company

re¬

in

trouble
issuer 'but also
cause

registration statement, and

the

must

that

see

correct

statements

the

there

that

and

are

are

no

might make

the

omissions

which

statement

misleading.

the

important functions
investment banker is
to

of

the

of

the

as

they

since

sponsible for the statements made

for the purchaser.
One

well

as

the other hand, what cov¬

on

careful,

extremely

be

are

underwriters must

All

facts.

Pricing the Securities

determine bond a$d stock
provisions that are fair for both
issuer
and
purchaser, *so as to

help

Now,

securi¬

pricing the

to

as

ties.

7

security is registered
give
protection tp the investor
and the circular is prepared, the
who is furnishing the mdney, and
work of the .buying or analytical
at the same time not to unduly
restrict or hamper the company department is virtually completed,
and the job is turned over to the
which is raising the new capital.
It is the general opinion of my syndicate or selling departments.
However, all during the period of
firm
that if
the company is
a
study and investigation it is nec¬
good company, and well managed,
in touch with the
what is best for the company is essary to be
also best for the holder of its debt selling department, as there is no
use
in
preparing a security for
x>r
other, senior
securities and,
the market which may be techni¬
therefore, that the less restrictive
cally a good security but which
the covenants are, the better the
is unpopular from a sales view¬
obligation will be for the holder
point. Furthermore the analytical
in
the
long run.
There are a
or
buying
department
usually
number of restrictive
provisions,
makes studies of comparable se¬
such as those that limit what the
curities to aid the selling depart¬
owners of the common stock may
ment
in
the pricing of the se¬
obtain from the company in the
curities.
These figures are made
way of dividends or distributions,
which will not hamper the com¬ up comparing the security to be
When

pany's operation
the

On

"such

that

as

.increase
net

ture

if

bond

issues

times

be

sold

certain

fu¬
only

bility in times of bad business.
popularity of the industry, and
are4
management are considered.

number

charges,

effect

is

in

periods

that

of

periods

adversity,

of

raise

cannot

pros¬

when

it

stock

money, it
is
selling boncls —
thus preventing the company from
raising any new capital to re¬
habilitate
its
properties
or
for

prohibited

working

from

capital

the company may
One

at h time when
need it most.

further

point to discuss in
of fi¬
nancing is whether the securities

setting
should
sold

up

be

»

the proper plan
sold

privately.

to

the

public

or

Here there must




hope

that,

talk,

I

I

somewhat

this

in

rambling

the

perity, when it should probably
be selling equity securities, while
in

and for
From

possible to get some
idea of what the relative prices
of
the
securities may be when
other factors such as growth, sta¬

a

is allowed to incur ad¬
debt

ditional

that

or

past

statistics it is

unless
to

have

that

exists.

market

a

opinion, bad cove¬

my

Their

nants.

can

a

interest

usually, in
company

debt

the

in

sold

which

cannot

securities

with

been

provisions

amount

figure,

are

whole.

company

assets

dollar

earnings

of

the

funded

its

current

certain

as a

hand,

other

sold

the

have given

you

idea of'the work which the

some

analytical and buying department
of

an

called
I

upon

would,

lightly
which

banking firm is

investment

I

on

„

to do.

have

which

sources

have

been

not

Be¬

Fidelity

can

heretofore

insuring with the

We believe that Ameri¬

company.

reasonably

could

Casualty

&

share in a normal year.
Considering the company's past

per

the

and

for

prospects

its future

stock
of
Casualty

the
common
Fidelity
&

growth,
American
to

current

to

us

be

undervalued at

(

prices.

WITHERSPOON

WILLIAM
320 N. Fourth

actually

Street, St. Louis 2, Mo.

Newhard, Cook & Co., St. Louis, Mo.
National

to choose

difficult

It is

curity from such
of

attractive

select

weeks of research and

study. Per¬

haps the best way to continue the

subject is to start now the ques¬
tion

period and I shall be glad to

try to answer any questions that
you

may

have;

Hence, there is

of

times

The

The

like

narrow

year

di¬

a

It

of

$0.35 per quarter to
yield almost 7% at current levels
for

the

plus

stock,

this

within
years,

confined within a
of 231/2-181/2 in 1952,

might

be

far

thus

1953.

in

while

some

before

fancy

the

catches

group

the

of

and ^capital
gains materialize to present in¬
vestors in this issue.
But, this,
appears to be a sound company'

2%

usual

a

the

in

been

having

nor

issues

the

of

group, has held
limits
in
recent

price range
and 22%-20y8

paying

is

An

share was
latest balance

per

price of this common stock,

most

building

lightly.

company

vidend

liabilities.

$23.59
by this

sheet.

earnings.

cushion this

cur¬

and

current

indicated

share, this stock

a

totaled $15.93
2.8 times

was

liabilities',

equity,of

slightly in

times

considered

even

stock dividend payable in Decem¬
ber.

investing

public

with

combination

will

disregarded.

A substantial capital

A

I

well

company,

repaid

his

for

appreciation

by the

company

be

confidentlyNa¬
tional Gypsum common is listed'
on the New York Stock Exchange.

expected

maintained

forever

not

be

can

ultimate goal.

as an

se¬

"The

but
would

Coming Decision

Farm Policy"

on

Guaranty Trust Company of New York, in its monthly publi¬

Na¬

of

the

for

a
forward-looking and ag¬
gressive management, and such a;

strong financial condition has

stocks,

request

outlook

he is being
patience.

stock

the

Hence, while the stockholder
waiting for ultimate capital
appreciation in reflection of the
is

the

common

cation, holds decision of wheat farmers to prefer price support
under

marketing quota system indicates continuation of price

a

tional Gypsum

basic farm products.

supports of

Company for

specific

rea¬

(1)

sons:

Acceptance by the wheat farm¬
ers
of marketing
quotas on the
1954 crop in preference to fore¬
going Federal price support at
90%
of
parity gives a timely
significance to "The Coming De¬
cision on Farm Policy," according

five

least

at

An

aggressive

look

Low

the

price-

ratio;
High

William Witherspoon

yield; (5) Good financial position.
The forward
looking and ag¬
gressive management of .this, the
second largest producer of gypsum
building materials, is noted to be
in
sharp contrast to its largest
-

While

rival.

in

turn

latter

the

for

looking

which

September

features

issue

"The

of

Guaranty Survey," the monthly
publication of the Guaranty Trust

earning
( 4 )

editorial

the

to

the

for

building in¬
dustry;
(3)

has

been

important down¬

an

business

therefore

and

Company of New York. It is im¬
portant

that

farmers,

all

above

others, have the nature of the is¬
sue
clearly in mind, the editorial
states. Whether the decision is for

against rigid supports and

or

con¬

fearful

expansion,

of

Estimated

1945.

since

four-fold

of nearly $120 mil¬
will be about 20% above the

sales this year
lion

previous

the next year.- Some
arguments are, of course,

logical, one being the diminished
family formation.
On the other
hand," a rapidly expanding popu¬
lation through the high birth rate
is enlarging the size of the aver¬
age American family so that it is
becoming cramped in present
quarters.
This is causing a de¬
mand for larger houses, and high¬
lights the company's enlarged ad¬
vertising program which is keyed
of

trend

the

to

"add-a-room."

Furthermore, industrial expansion
for
the
development of public

housing and the pressing need for
additional

school

contribute

to

facilities

also

in¬

stimulus

.the

jected into this prospering indus¬
try.
company

is

in

a

high

ex¬

earnings

reported

has

share in 1952

as com¬

six

in

1951,

months of

for

and
1953

the

per

first

earnings have

share. If
excess-profits
tax
had not
been
imposed
during the
first
half of this year, earnings would
have been about $1.85 per share.

amounted

to

$1.41

EPT

has

been

the end of this year, but

to

beginning

"It

be

to

seems

that

ceded

generally
system

some

con¬

price

of

suports will be maintained," ac¬
cording to "The Guaranty Sur¬
vey." "The real issue in the com¬

the

ports."

less
freedom
of
operation.
They cannot have both, concludes
"The Guaranty Survey."

production, according to the bank
publication. At the same time,
opponents of fixed supports have
their

farmers

for

traditional

renouncing

freedom

of

ac¬

"Actually,
that

either

it
of

doubtful

seems

these

inter¬

broad

pretations can fairly be placed
upon the farmers' vote. The wheat
growers

unwisdom

or

their

were

and

policy

of

its

or

a

the
gov¬

relation

long-term

welfare. They
choosing between fixed
flexible
price supports,
or
not

between

even

fixed

supports at all

no

judging

not

were

wisdom

ernmental
to

proposition.
with

which

reduction

of

supports and

as

They

condition

a

supply

a

long-term

were

of

faced

price
in

cussed

be¬
sup¬

stressed

supports

dis¬

were

the

editorial,
which
argument in favor

one

of fixed suports to the effect that
farmers
risks

subject to exceptional

are

that

and

nancial

their

resistance

quently,

the

is

it

is

to

fi¬

average

low.

system's

believe

farmer

Conse*

defenders

the

unfair

to

the

expose

rigors of competi*
tion. Weather, insects and disease
raise havoc

can

output.

The

with

turn

agricultural
the

of

seasons

about

and this

be

a

Guaranty

normal

observed

Survey."

somewhat the

same

Gassoun has become

with

Company,

50

L.

Tatro

New

York City, as manager of the pub¬
lic
utilities
trading department.
Gassoun

has

McLaughlin,

Brothers and

public
for

recently

Reuss'

was

was

is

e

in

position."

been

&

Co.

with Samuel

manager

of the

utility trading department

Holt, Rose & Troster.

Joins F. K. Justus,
(Special

to

The Financial

SMITHVILLE, Mo.
Bell

has

become

Jr.

Chronicle)

crop,

"T h

"Corn

Edwin

Broadway,

Prior thereto he

year's output is expected
20% above the 10-

average,"

Joseph H.
associated

with

about

year

Edwin L. Tatro Go.,

Mr.

and
peanuts.
The
of cotton is equivalent

of

be adjusted to de¬

Joseph Gassoun Joins

over-

acreage.

43%

can

exceptionally variable.

sharp

a

tobacco

carry-over

production

mand. Prices of farm products are

acute

"Unfortunately, the wheat sit¬
is only the
beginning of
the problem of surpluses. Market¬
ing quotas are already in effect

to

be

flexible

and

The pros and cons of fixed and
flexible

for

called

uation

to

fixed

limits the promptness with which

tion.

—

Eldon R.

associated

Francis Krauss Justus, Jr.

He

with
was

formerly with Arthur Fels Bond
& Mortgage Co. and Uhlmann &
Latshaw.

per

extended

temporary basis, through 1954.

tween

The

the

The

practices, the present fixed price
supports at 90% of parity began
as a temporary device. Their pur¬
pose was to increase farm output
quickly in response to the emer¬
gency meeds
of World War II.
They were to have expired auto¬
matically after hostilities ended.
Instead, they have been succes¬
sively
extended,
always
on
a

ing debate will probably

on

The

cess-profits tax bracket but, nev¬

many years.

governmental

trols, farmers will be surrendering
privilege in exchange for an¬
The more price protection,

within

try

of their

other

many

one

criticized

1952.

of

record

Many economists look for some
downturn in the building indus¬

against margarine for
Like

other.

National
The collective decision of the
Gypsum Company has been ac¬
wheat
farmers
has
been
inter¬
quiring smaller companies during
all
of these
postwar years and preted by defenders of the fixedas
a
result has been enjoying a supports sytem as a repudiation
of the Administration's desire to
larger and larger slice of this
industry's business.
This is re¬ move away from close govern¬
controls
on
agricultural
flected in a sales growth of almost mental
is

share

or

tax

that should not be overlooked

wide selection

a

common

this

fulfill

to

one

items pared with earnings of $3.12

days

of $20 per

one-half

and

been

Co. Common Stock

Gypsum

ertheless,

require

en¬

is

future

Formerly Security Analyst,

of $2.84 per

of

levels

which

good current earnings and bright

seems

touched

af number

substantially

excess

in excess of $4.75

earn

As I told you
only

should
easier

company

current

Cash items at

1952.

total current
assets of $41.74 million were 7.4

rent

the

a

At

be¬

couraging out¬

with

statements

million

load.

management;
(2)
An en¬

the

needed for the sale of the security

and,

from

the

these

1954

joy

Markel

work

fine

the

officials and makes sug¬
gestions as to the presentation of

and an in¬
be made to de¬

must

what

company

views

securities,

vestigation

arranged.

are

company

desired by the pur¬

are

of

termine

new

managers

generally prepares
a
first draft of the description of
its business and
properties, and
the
managing
underwriter
re¬

be
made
readily
salable.
Certain
covenants in mortgages and bond
indentures and in preferred stock
so

sales

of

at least,

part

of 1945 to

the end of last year

selling about seven times earn¬
cause
of this, American Fidelity ings and, based upon earnings ex
the EPT, is selling at about five
&
Casualty may draw business

The

simplification of the capital struc¬

in

Service is doing in the field.

and

business

number of years but

a

in

been

a

diminished.

of

end

at the end of

is gaining the publicity

deserves,

regis¬

a

prepare

a

be

to

publicly

statement,

prospectus, ,or if
railroad security

a

materially higher debt ratio or if
it had
permitted the attractive¬
ness

to

necessary

tration

con¬

with

started

it

the mechanics of

come

under the Securities Act of 1933 it

System's financing
I trust that one can
the
difficulties
with

the

of

many

have been talk¬

we

If the issue is to be sold

From

mary

in

or

has

preparing the issue for the market
and preparing the papers, etc.

voted

be

it

along with the financing de¬

cases

by stockholders on Oct. 14.
the foregoing brief sum¬

on
;

that

20)

(Aug.

upon,

plan

for

us

cause

financing

decided

been

with

only nc^v

has

problem

safety

way

Working capital
from $12.49 million at
$36.12 million

grown

Like Best

19

years.

has

The Security I

for the stock,

"Paper" Work

the

After

policy of the
company
is continuing as evi¬
denced by the announcement last
The sound

clining.

2

page,

the

so

The

from

provisions

needed
or

for many

Continued

the

by

that today it is approx¬ the relative costs and ease of
imately 37%. At the end of 1948, completion of the transaction, and
before the
attractive conversion the relative time schedules needed
features were fully effective, the under public versus private sale.
debt ratio reached a high of 50.5%
period

(831)

The Commercial and Financial Chronicle

...

to

p r

bank

i

potatoes

e-support

and

dairy

referred

situations

products.

in

A

complication affecting but¬
is the fact that this staple has

grave
ter

c

publication

been

Harold S. Stovall
Harold

S.

Reynolds &

Stovall,

partner

in

Co., New York City,

steadily losing competitively. passed away Aug. 23.

The Commercial and Finmcuil Chronicle... Thursday,

3

Continued from page

more

the

1947

But in

hopeless.

Hitler

menace

and

more
«_

September 3, 1953

(832)

20

no

was

market in bonds gets well under settle down to a price level cor¬
way.
responding to a 4%% yield com¬

while Stalin, the real evil
of our century, had
achieved
far greater
and more

A

Perspective

the

on

Bonds

thing which is not limited to the
United States, but prevails, and
major bear market in bonds—one always has prevailed, in a general
that will prove somewhat compar- way
throughout the entire free
able to that earlier one that ex- world.
And, it might be noted,
tended from 1899 to 1920.
while the rhythm of these changes
fhn« it cnnuiri hp obvious tb those
is not as reSular as the tides>
J™ in the flnanc al community is <K«"e as inexorable and, once
who have been blaming Washing- established, seems certain to run
iori

for

now

quite sometime that we
undergoing a second

for

recently

ton

incurred

losses

higher price levels dur-

bonds at

this

of

months

the- earlier

ing

that the decline we are in
eann'ot be laid at the door of the
year

rtew

Administration.

This

long-

term

bear market has been

going

oo

nnd

already for over seven years,
the Federal Reserve support-

plugs under the government bond
iwarket
were
pulled
out
with
dramatic

effects

January

inbear

of this year was a
bonds that had

in

market

.

4

Causes of Fluctuations
Bond

pro-

then

far and had
by
gained great momentum.
gressed

In

in

office

took

he

when

years

Humphrey

Mr.

What

ago.

bcrited

two

over

Uie

cost

erally

of

believed

balance

for

funds
for

aide

to

be changes

between

and

the

lending.

only

P»o-

is in the 1899-192 J he ir

of
slowing down which the preceding 42-year advaney. in

and

Whether

years

we

clearly bonds prices

more

see

can

was

by
after the unexepcted jolt Red Imperialism received in Korea and
the recent explosions of the slaves
in East Germany and the satellite

jn

Woodrow Wilson

World

borrowed at 4%

War

finally

while

I,

&
United

Standard

retracements,

in

avail-

strength

some-

the

Central

in

and lower levels of interest than those of

Europe

for peace

outlook

becoming of 1946

once a new

2.96%,

while

show for the same type of

out to

the boundaries that might
expected technically
if the
minor rise does develop

Table I,
be

current

such

into

ranging

(No- Years)

Long U. S. Govt. Bonds

High-grade Municipal Bonds

I

Yield

Price as 3s

1940

Yield

A 00%

Price Adv.

High

Price as 3s

in Points

■

as

Price

Yield

To Yield

3s

Current Market

—Decline So Far to June 1953 Lows—

Retracement

Would Decline to

Price

as

(8-19-53)—rr-

Retracing ll)'^0-4GAdv.

3s

by Points

or

by %

Price

Yield

as

3s

preferred stock index had al¬
ready reached the one-third level
of
such
a
recovery,
while the

,

continue. Personally, I

will

rally

WW,

come.

consideration

One

short-term and into long-term ac¬

—

or

923/4

3.15%

98V4

14y2

2.96%

IOO1/2

other

3.51

3.14

977/8

281/s

52

2.86

1021/8

rented

87%

447/8

603/4

4.94

4.48

67

20%

46

4.29

697/g

427/s

5.98

58%

2.51

110%

51%

791/4

4.23

3.49

90 7/8

191/2

38

3.30

94%

30

6.82

5iy2

2.44

1117/8

60%

75%

4.49

3.43

92

197/s

33

3.30

94%

higher rates of interest

at

long-term during most of

than did

If

period of time.

analyze Mr. Macaulay's
months for the period
to 1931, you will dis¬

you

15
High-grade Municipal Bonds
20
Pfd. Stocks (Non-Callable) 100
Moody's Aaa Bonds:
_

Utility

Yield

Price

Price

To

Price

To

3s

r

the

j

.

x

>

'

Price

<

Yield

Yield

3s

Federal

veloped to a high degree, the rates

3s

Decline

12%

1021/2

2.79%

1041/2

2.64

106%

2.47%

2.96%

1001/2

1241/g

3.14

98

261/s

1063/4

2.57

111%

2.30

1153/s

2.06

2.86

102%

3.81

78%

4.48

67

11%

69%

4.29

72%

4.12

74%

4.01

4.29

697/g

IO2V2

2.87

3.30

943/8

months than were those for long-

103%

2.82

3.30

94%

term

as

as

3s

Yield

as

3s

as

1

as

wide

2.65

30

_____

30

2.56

IO71/4

3.49

91

109%

3.43

92

I6I/4

171/4

963/4

97%

99

3.16
3.11

3.05

100%

2.97

about.
♦As

of

Jan.

rates

J95I.

the

CrcUat




Aon*

[n A»io-uth L

ong

ml
m

4ni Shot Term
lax
hiq

ms
leil

in»
<2::

.

m5

in.

nv

iiso

long-term

basis

na

short-term rates ex¬

average,

rates by 171
percentage
points in yield). This, on the other
hand, was over two times as many
basis points as those by
whictu
long-term rates exceeded short-

In teres f /kfa 5twee 1857

.<115

in 65?

higher

were

high-grade railroad bonds—
74% of the time—and on

ceeded

/^fai or

90O

the

period, commercial

months of this
paper

-

During

extremes.

e r m

within quite

fluctuated

money

long-t

and

short-term

for

(

_

government was de¬

98 y4

2.15%

I'

___

by

management

money

3.15%

as

Yield

To

before

well

century,

a

political

1107/8

Yield

3s

that during this three-quar¬
of

ters

(To 8-19-53)

V,

«/o-

-Vit

Resulting
Price

1857

Rally So Far

Resulting Replacement by

Price

by

*1.59

Years)

Long U. S. Govt. Bonds

Railroad

June 1953 Lows

Price

data

cover

1

part below the

long-term bond line. In
words, short-term
money-

heavy

937/8

7.05

you

chart of bond

my

line is for the most

53%

43%

from

yields over the past century that
for over 75 years—from 1857 to
1931
the dotted or short-term

33%

3.66%

connection,

this

In

note

126

of Prices

standard & Poor's:

should

we

in

keep

112%

.

-*■

probable

will work higher,
with pauses a(.nd minor setbacks,
for perhaps some months yet to>
that bond prices

1.44

Avg. Maturity
Jan. 1950 Highs
for Figuring

INDEX—

quite

is

it

that

think

2.02%
3.42

Rally in Prime Bonds Retraces % to % of Preceding Decline (Since 1950 Intermediate Top)

.

one-

decline,

again your guess is as good as mine
as to
whether or not the present

721/4

TABLE II

If Current

tabulation
about

preceding

the

of

sixth

from

-

only

recovered

had

the

in

indexes

other

this long

Utilities

de¬

prices of last week,

At the

1950.

791/8

IW'oody's Aaa Bonds:
Railroads

preceding

the

5.34

100

Stocks

—

the

intermediate rally top of January,

4.99%

15
20

30

Preferred

of

cline—a decline that began at the

will

Bull Market 1920-194(1

1920 Low

Prices

Standard & Poor's:

that is, one
one-third and

rally

^

between

two-thirds

railroads portion of the Federal debt out of

Aaa

long-term bull bonds on the same basis would

50% Retracement of the 1920-1946 Bull Market Occurs in Money Rate Securities

Figuring' of

INDEX

and

high-grade securities as given in

count.

TABLE
a

two

1948

early

between

mind is the statement
made by Mr. Humphrey, Secretary
of the Treasury, that one of the
capital should seek shelter here, long-term bonds. Eventually—we, rise in yield to about 3.65% as important tasks facing the Ad¬
with Hitler acquiring enormous or oqr children—should see even compared with their present yield ministration is to get a larger pro¬

is

In Case

about

for

experienced

Tivd, early 1950,1 do not know. For your
chart convenience, Table II was worked

canceled.

For example, as you can
from this tabulation, on a 60%

see

or

full-fledged rally, such as;

a

gernaut, a

a
major ra 11 y.
not this is to develop

be

to

prove

into

of

start

a

was

now

breathing spell
what might later

market has had a

ing down 0f the Communist jug- market, when in 21 years 80%

War; then the government under market.

supply

This

but a foreshadowing of the slow- cedent

Oar

yet.

as

Poor's
old world for safekeeping in this Franklin Roosevelt financed World average of long
States
country. It was easy to see Why war II at as low as 2%% for Government bonds would have to

demand

the

sure

mendous flight of funds from the

major fluctuations in
hiring money is gen-

the

for

housing and new plants. We had
witnessed during the 1930's a tre-

in

Prices

The fundamental cause of these

long-term

was

lows, the bond

June

the

Since

the figures as given in the
were only for corporate bonds.
A similar study for -municipal
bond yields or for government
states. Certainly there has been bond yields might have, shown a
its coursea growing demand for money here different retracement than' 11: e
When I first began to wonder and abroad and an actual tight- 60% for high-grade long-term
about our developing bear market ening of rates due both to the railroad bonds. Nevertheless, this
in bonds, money was still plen- needs of borrowers and to gov- earlier experience might turn out
tiful, and the people of this coun- ernmental curbs on the forces of to be a reasonably good one to
try were putting by what seemed inflation. If the confidence, of keep in mind,
like adequate savings each year, entrepreneurs and investors in
If it does work out that our bond
Why, then, should the demand the future is to increase even market has not yet hit bottom and
have so exceeded the supply as to more, not only here but in fear js f0 undergo eventually somecause interest rates to increase stricken Europe as well, then we where around a 60% retracement
as radically as they have? It can see the possibilities of even 0f ^he preceding 1920-46 bull marseemed to me then that one of further demands for money and,
what sort of yields would
the principal reasons why there conversely, of lower prices for jf offer when it reaches its final
might .develop a relatively greater bonds in the next few years.
lows? Table I answers this quesdemand for money would be such
Over the very long term it may tion for four types of high-grade
a tremendous growth
in confi- be interesting to note in passing bonds and for a group of well
dence throughout the world in the that George Washington won his known non-callable industrial
future outlook for security and war at a cost 0f g% money. Later preferred stocks, for all of which
business as would require unus- Abraham Lincoln's government consecutive figues are available
ual new amounts of funds for bad to pay 6'% during the Civil since the 1920 lows in the bond

underwritings and purchase of

in

111 Bonds

ever

prices

bond

is

decline

new

Hitler

than

power

of

as

now.

Is our current bear market in
enjoyed.
bonds over? I do not know —
Perhaps the beginning of this probably not; but no one knows
sinister

Bear Market in
hre

The Current Bear Market

genius

with one for 3.30%

pared

■

more,

term

tUo

points

ones

which
©So%

(1.71

in

they

There

the higher.

what

have

you

in

months

236

the

were

actually

happened during an extended pe¬
riod
of
our
history
when theAmerican economy was
from

free

tion and money was
world's
the

relatively-

government manipula¬

savers

loaned by the:

in accordance with:

supply of it available and the
on balance, for that sup¬

demand,

ply.

generally' 'then

Investors

were

willing

to

pay

short-term

ones

terest

in

more.

Effect of Treasury

Thus

is not hard

it

who

the

men

the

credit of

1;he

buying power of

and who

are
our

relatively-

Refunding

Operations

,

the in¬

which

fluctuated

rate

much

15-0*

for

more

contracts than for

long-term

"

to

see

why

responsible for
government and
our

dollar,,

apparently do not intend

to follow former

Treasury policies

of

national

pegging

artificially

looking

for

the

high

debt

at

price levels, are

opportunities

to

rer

yolume 178

Number 5252

The Commercial and Financial Chronicle

...

fund
as
much
as
possible into tance of the interest rate to us,
longer-term bonds. As long as the people of the United States,
such a policy prevails, the gov¬ where debt has grown to over¬
ernment bond market
may
face shadow equity in the wealth of
large long-term offerings. This in the nation.
Itself may be an important factor
Thus it is that the costs of serv¬
determining the extent both of icing our debt structure play a
Tthe present price recovery and of fundamental role in the economic
•whatever

subsequent

decline

in

<&>ond prices

well-being of
you

long-term bear market in bonds.
The importance of this to us all

common

/ber

that

visualize.

to

the

of

cost

business

in

modern

a

credit

est

of

not

us

World

industries

War

on

II.

When

over

to

keep

so

arti¬

as

their

up

about par and

price

thereby

down

to

where

it

be¬

(the forces of demand for

supply of money being what
were at the

^managers, took

time),

our money

orthodox

an

and

►basically sound step to halt the
persistent inflation. that had been
at

away

American

the

the

soundness

dollar—our

of

measure

our

of

dollar,

savings, of

our

Of such

is

the

impor¬

and

cial

Admits Partners
Gildner

2%%

one-year

a

have

cer¬

security
was

has

been

expecting.
An
part of the "basket" such

as

pretty well ruled

will

to

appears

be

be

the

of

doubt

no

successful

a

out

offering of

longer-term

a

picture about two

weeks

New

Stock

ago.

refunding operation
because the securities being offered in

one,

tailored

are

those that own the Sept. 2s.
ligation for those that must have
of

to

fit

the

the

demands

of

mar¬

holding of the debt limit

scarcely noticed and quite
has always been, is now,

will

basic

some

be

of

welfare

importance

and

that

to

always

way

to

your

each

of

and

American. We might think

every

it

the

as

Gulf

Stream

of

economy, wide and deep,
ever
outward
from
the

tropical

and

seas,

our

flowing
warm

exerting

a

con¬

shores

of

the

modern

the

effect

at the $275 billion

the

upon

Government's

for

fair

a

amount

tax

of

operations.

anticipation bills

the

have

adverse

an

influence

should

far

as

Treasury

vate

Ray M. Gidney, 'Comptroller of
Currency reported that the

"the

•total
•

assets

June

of

national

banks

30, 1953 amounted to
billion.

$103
The

on

more

returns

•covered

that

portant

loans

the

of

as

other

•4,881 active

date

billion, a decrease of
$211 million since April. Loans on
real estate of $8.5 billion were up
more
than 1% in the period. All
to

including consumer
individuals, loans to

farmers,

to

national banks

and

in

brokers

and

dealers

purchasing

the

United..

^States

and

to

assets

w

e

r

-irn

i

1

1

i

o

below

the

billion, jan

nearly

1%

purpose

of

sets

and

of

since April, and 15%
The percentage of

discounts

to

total

as¬

June 30,

on

comparison

re¬

increase

year.

the

loans

n

the

amount

$12

in

$227

e

for

and carrying securi-,
ties, and to banks, etc., amounted

possession's.
'The

others

1953 was 35.23 in
with 35.18 in April

32.67 in June

by the
4,890 active

and

•banks

United States Government obliga¬
tions on June 30, 1953 aggregated

ported

Investments

on

April 20, 1953,
the

date

the

Ray M. Gidney

of

$33 billion

previous call, but were more
billion over the aggregate

than $2

reported by the 4,932 active banks
•

•

as

of June 30, 1952.

as

an

lion

since

-of

increase

of

$413

mil¬

April, and an increase
$1.7 billion in the year.

over

-Included

figures

in

the

were

recent

demand

deposit

deposits of

Individuals, partnerships and
porations

of

$53.4

billion,

cor¬

which

'decreased

$344 million, or nearly
1%, since April, and time deposits
•of individuals, partnerships and
•corporations of $22.3 billion, an
increase

of $404

of

June

banks

the

a

stocks

32%

of

34%

were

in

compared to

year

and

ago.

Other

securities

bonds,

of

$8.5 bil¬
lion, which included obligations of
States
and
political subdivisions
of

$6.2

billion,

less than in

were $96 million
April, byt $95 million

than held in June last year.

more

The total securities

held

Government

market

was

$1.5

lion,

at

the

end

of

June

billion

and

balances

with

other

process of

:States

and

April; deposits of
political sub-divisions

•of $6.6 billion showed

an

•of

deposits

$176, million;

banks
■an

amounted

increase

-April.

of

Postal

and
to

$8.6

increase

billion,

$168 million

savings

of

since

$13

were

million and certified and cashiers'

'checks,

etc., were $1.3

billion.

Net loans and discounts

on

June

lion,

(including
a

showed

cash items in
collection) of $10.5 bil¬
total
of
$24.3
billion,

an

increase

of

$363 mil¬

lion since April.

above

The

capital stock

of the

year.

June

Commercial

30

figure

and

last

industrial




other

have

been

been

all

volume

switches

activity

and

will

the

as

Vies

continue

have

been

for

replacements

for

to

the

the

the

tax

purposes, with
1965-/70 maturities the favored issues on the

SAN
rus

The

tinue

to

one-half

the

fact

discount

a

issues

is

that

are

still

there

in

the

of

form

another

feature

that

is

issues

casualties yet

many

ment

securities

far

as

tight

$3.4

billion, undivided profits $1.3 bil¬
lion, and capital reserves $267
million, or a total of $4.9 billion.

than

7.61%

in

April

when

they

of total deposits.

were

Financial

Chronicle)

Johnson has become asso¬
with Guardian Securities

SAN

be

as

bought

far

at

these

as

The

Staff

to

Financial

Chronicle)

FRANCISCO, Calif.—Sid¬
Lippitt, Jr. has been added

to

staff

the

of

Montgomery

Sutro

Street,

& Co., 407
members ©f

the New York and San
Francisco
Stock Exchanges.
He was

previ¬

ously with Hooker & Fay.

and

yield after taxes.
can

to

ney G.

buy side of these

favorable

side,

The

With
(Special

King Merrittt Co.
to

The

Financial

Chronicle)

'

FT.

KENT, Maine—James I.
Hoyt is with King. Merritt^&.tCo^
Inc., of New York.

Thomson & McKinnon Add
to

The

Financial

Chronicle)

MIAMI, Fla.—Lawrence S. DeVos, Jr. is now connected with

there

have

not

been

McKinnon, Shoreland

Building.

purchases of selected Govern¬

as

concerned.

are

to

Thomson &

the

Exchange.

It

seems

as

though

of

some

the

tightness has been taken out of the picture at least temporarily
by not replacing all of the Treasury bills as they come due. Cor¬
porations and other non-bank investors, however, continue to be

the principal buyers of the near-term issues

among

the

competition is

keen

as

as

ever

from

been

instances

some

reported

where

though

even

foreign banks and the

larger deposit institutions for these securities.
funds

There have

that

have

JJ. S. TREASURE
STATE

also

and

in

been

equity market have been put into Treasury bills and certificates.

MUNICIPAL

Lagging Interest in 3%% Issue
The

31/4S

permanent

continue

homes

interest

much
It

to

even

around

is indicated that

for

this

the revival

There

are

been disposed of with

into

move

though

financing has taken quite
Treasury issue.

a

there

what

is

does

obligation

as

of corporate

few

buyers

considered

not

appear

has
and

be

be

SECURITIES

as

the

case.

municipal bond

from

away

also reports that

been

to

to

some of

the

longest

the 3V4S have

the proceeds going mainly into corporate,

municipal issues.

I

Reserve Cut Rumors Persist

June 30, 1953 was $2.3
billion,
including less than $6 million of
was

B.

(Special

on

pri¬

York,

close contact with.

very
the

Sutro Adds

which

1964-69

Money Conditions Eased
too

a

FRANCISCO, Calif.—Cy¬

(Special

in

concerned.

Although money is

New

business in San Francisco.

im¬

be

bonds

the

the

comparatively short maturities

is

to

Co. and Davies & Co. In the
past
he conducted his own investment

swops

presently outstanding intermediate-term obligations con¬
receive
attention, despitof the offering of a three and
year 2%%
note in the September
refunding, because

attraction

The

wire

Corporation.
Mr.
Johnson
was
formerly with Harris, Upham &

operations.

on

preferred stock. Surplus

at

Manley

Guardian Securities

selling has taken place.

the

as

of

member of

Company with

direct

(Special

concerned.

are

Corps Lieu¬
a

This kind of busi¬

purposes.

indications

and

Rumors continue
cut

in

reserve

demand
that
ment
care

for

funds

believe

is

a

to

be circulated

requirements in
will

further

coming, and

of this condition

be

the

very

that there will be another

not

too

distant, future.

substantial,

downward

the monetary

revision

according
in

authorities

will again cut the

requirement.

are

talking

about

downward
^

reserve

in

required

market operations do not seem to be considered

those' that

a

Cyrus B. Johnson With

hand, it is reported that the other longer-term

used

disposed

banks

were

the

the

have

state and

$36.5 billion, a de¬ Total capital accounts of $17.2
crease of $29 million since
A£>ril, billion, which were 7.64% of total
but nearly $3.4 billion or
10% deposits, were $61 million more

30, 1953

On

2V2s

re¬

1952.

Cash of $1.3 billion reserve with
Federal Reserve
banks of $12.5
banks

since

as

that the bank 2J/2S as well
which the main part of the

bil¬

4% below the amount

or

ported

•of' $2.5

lion

from

and

far

the

are

Air

was also made of
the admission to the firm of Car¬
roll V. Geran as a
limited partner.

is

amount¬

ing to $41.5 billion

million. Deposits
•of the United States Government

billion increased $97 mil¬

been

as

in

(including $24 million
obligations),
a
de¬

investment

assets,

moment

the

on

Announcement

favor¬

a

1952.

of $422 million since April.

These
total

The deposits of the banks on
June 30 this year were $94.7 bil-

Jion,

guaranteed
crease

the

trader

Exchange, is

He has been

Adrian

being

Although
nearly all maturities are involved in these exchanges, it is re¬
ported that the bulk of the swops made recently have been'con¬
cerned largely with the
longer-term obligations. It is indicated

loans,

loans

the

call

recent

$16.6

were

has

ness

at

being made, mainly for tax

are

Stock

Naval

maintain

Despite the fact that the center of the stage is being oc¬
cupied by the September refunding operation, there are other
things going on in the Government bond market, and the most

$413 million.

i

former

ciated

prominent of these

ensuing 24

which dates back to 1928.

Issues Involved in Tax Operations

Comptroller of the Currency Ray Ml Gidney reports that on
June 30, total assets of national banks amounted to more
than $103 billion, a decline of about $227 million since
April 20. National bank deposits, in same period, rose by

floor

as

Bennett &

concerned.

National Bank Assets Show Slight Decline

regis¬

Exchange 3V2 years since ac¬
quiring his father's membership

continue, it should not

the

as

upon

a

N.Y.S.E.

the

The reported improvment in Government
finances, which in¬
that the deficit for the current fiscal
year will be con¬

trend

the

a

Adrian, who will represent
York

dicates

If this

spending several
department of

firm for

firm

tenant.

re¬

in the not too distant
future, probably sometime next
These funds would be available to the
Treasury to meet
current expenditure and would most
likely be paid off when June
1954 taxes are collected.

development.

and

representative of

Mr.

month.

siderably under previous estimates, is looked

1929

years.

seems

are

certificates

or

o.a

entered
in

local bank. He has been

member

a

figure
that

powers

financial

known

having
business

Georgetown College graduate and

issued

able

world.v

favorable

a

for

Detroit

graduating from University

tered

Secretary Humphrey, although hedging his recent statement to
a
certain extent, does seem to
convey the belief that it will be
possible to get through the rest of the year without an increase
in the debt ceiling.
There will probably be enough
leeway be¬
tween the outstanding debt and the
$275 billion limit to allow

tinually

its beneficent influence
the peoples living on the North

had

Adrian

general

years with the bond

$275 Billion Debt Ceiling Adequate
have

well

Street

Michigan

New

military security

why the bond

is

investment

after

There

a

ception.

to

That is

Gildner

Griswold

is a one-year 2%% ob¬
short-term security.
The 27/8S
due 3/15/57 will meet the needs of
those that can use an inter¬
mediate-term obligation.
The yield after taxes is also in line
with
those of the
outstanding middle-term :* obligations.
The
amount of the 2%s that will be taken
in exchange for the ma¬
turing 2s is a matter of conjecture but reports seem to indicate
that the three-and-one-half
year note is getting a very good re¬

The

A.
as

York, American and
Exchanges.

Mr.

but what the

exchange for the maturing issue

Richard

admitted

Manley, Bennett & Company,
Buhl
Building, members of the

the 3%s due 6/15/78-83

as

and

been

partners in the investment firm of

a

district

sponsible

of

offering by the Treasury of

;

DETROIT, Mich.—Henry C*.

three-and-one-half year 2%% note to refund the
Sept. 15 maturity of 2% bonds was in line with what the finan¬

tion.

purchasing power, and of the sta¬ on
bility and health of our national Atlantic
'economy.

The split

tificate

and industrial and other construc¬

unsung,
and
in

►eating

Years
building our
plain and moun¬

were

needed for

ket,

the

country.

our

we

across

But today it is
people who are loaning
government and business the vast

to

they

we

Governments

on

own

^permitted the entire bond market

longed

whereby

land and Holland.

sums

settle

means

rates

drew

we

ing Government bonds
or

of

when

railroads

our

ficially

interest

of

put to work the savings of
countless persons and built up the

two years ago the officers of our
Federal Reserve System quit buy¬

iand

forget that debt and

Reporter

By JOHN T. CHIPPENDALE, JK.

There

heavily upon savers
developed during and abroad, principally those in Eng¬

we

levels at

the great¬

even

have

tain

the infla¬

the

on

corporations.

structure

■s

.-.after

stocks of

our

Let

the

ago

restraining factor

as

determination of the yields on the

•economy. That is why an increase
in the cost of borrowing acts as

tion that

influence

an

the higher is the interest have been the

:*money,

jrate and, therefore, the greater is
"the cost of starting and carrying
ron

est rates exert

Remem-

the

more

And

well know, changes in inter¬

we may undergo dur¬
ing a third and probably final
jphase of this now seven-year old

is not hard

country.

our

Manley, Bennett Co.

Our

order

The

to

those

require¬
to

reserves.

take

Open

in

& Co.
INCORPORATED

15 BROAD

ST., NEW YORK 5

WHitehall 3-1200
B1 So. La Salle St.

■

45 Milk St.

reserve

.L

.

i

CHICAGO 4

BOSTON 9

ST 2-9490

too important by

revisions

Aubrey G. Lanston

HA 6-6463

The Commercial and Financial Chronicle
22

in

are

Continued from first page

clearly what is wise and what is not. Free traders
would abolish tariffs, and are quite insistent and noisy
about

country,

particularly in more recent decades. It could be¬

sort

of coalition government at its best, although,

of course, it

must face all the hazards implicit in our form

a

drastically reduce all forms of foreign aid whether or not

"two-party" operation. But however all that may be, the
President appears now to have completed his tasks of this
sort, and meanwhile has given certain evidence of a strong

Presidential

But there

closely

are

questions.

cal

be expected. Farm policy, tax reform, anti-trust
policy, and social security, to name but a 'few will be
troublesome enough, but real results are essential.

if superficially similar to

Continued

those

out

sial

the

have

matter

It

and

is

vital

that

the
on

President, the Congress, and all

public questions bear carefully

fully in mind that the time is not far distant when

definite, basic decisions must be made, and the course of
the

Administration

specifically

formulated. When Con¬

in January, a program of legislation
covering many facets of our national life must be ex¬
pedited. Next year is an election year. It will not do for
the Republican party to face the voters next year empty
handed, or anywhere near empty handed. The public has
been patient. It has, by and large, realized that it would
inevitably take time for the new Administration to get
itself organized, formulate policies and show concrete re¬
sults. It has been ready to adapt itself to temporary ex¬
gress

reconvenes

pedients designed to carry us over until the real work of
the Administration could be gotten under way.

year

next year.

This, of course, is much easier said thar/done.
At no point perhaps will it be more difficult to formulate
and put into actual practice a policy which will obtain
broad support than in the field of foreign relations.
It is in this

area

that the so-called

kia

'

internationalists,

usually accused of being isolationists,
bitterly. It is here that the President is rather

fully committed to policies which are not to the liking of
very influential elements in his own party. It is also in
this area that some very real issues arise—issues which




but that

face

world

a

improve¬

world economic

ana

sion;

facing

are

expan¬
in America do

we

kind of mild and selec¬

some

tive domestic adjustment over the

I

have

taken

this

cover

much

so

time

to

all-important aspect of

the present situation as to limit to
outline

mere

the

other

you may

be in¬

of

some

thoughts in which

in

Korea

i

stuff

war

has

proved

to

it.

her

what

long-

I
think it is silly to talk about longFurthermore,

are.

of governments except

aims

term

insofar

as

with the

geography and economics

the

of

they

You

Stalin

and

know

lifetime
Roose¬

In

that

me

the

in

the

domestic

is the changed character of
This population

omy

population.

our

makes

ket,

the

the

great

American

mar¬

biggest fact with which

Magazine"
of

one

econ¬

most

is

"Fortune

publishing

series

a

important and illuminat¬

ing articles about it which I
ommend to you as

Very briefly,

rec¬

"must" reading.

population and

our

the population of the whole world
is

increasing at

much

a

than at gny

rate

rapid

more

time in

our

ex¬

Not only is it increas¬

perience.

Great

ing, but it 'rapidly is becoming

dicta¬

middle class

died.

have

take place in

can

per¬

our

Hitler,

change.

Mussolini,

Lenin,

fact

great

consistent

are

country.

sonalities

to

seems

a

torship like Russia just by virtue

a

population, with ever
thinning stratas of very rich and

the

East

and

rapid

cow,

news

the

in

changes

per¬

of the Soviet Government,

sonnel

Soviet

the

the re¬
in Mos¬

Germany,

censorship of

duced

political

for

amnesty

prisoners, the little publicized re¬
volts in North Korea, the gradual
clandestine

almost

and

resump¬

tion of trade between Eastern and

Western

Europe, and the attempt
to
look
strong when

Russia

of

economic

and

shines like

political

brilliant

a

through

that

Western

and

Russia.

about

over-

in

for

Europe

be

to

great political
Russian
the

been

These

upheavals like the

Revolution, World War I,
of Hitler, World

ascendency

War II and the

now cooling "cold"
essentially of economic
and social origin, not merely the
war

are

nefarious work of

a

few evil

Europeans know that

men.

if the nat¬

ural trade

lanes of Europe can be

reopened,

and

can

flow

as

veterately
problems

goods

and

people

natural geography in-

dictates,
all
can
be solved

time

political
and the

edges of extreme ideologies

And
time.

will!

we

most

of

us,

and that includes you and me, are

living
in
the
afterglow
of
a
counter-propaganda about Russia
which, in the cool light of history
will make modern cigarette and
soap
advertising look like high
culture.

We

have

we

convinced

our¬

selves in advance that it just can't
be thus.
Russia

does not want

war.

She

wants peace.

She
as

has

good

a

decided

price

buy it she will.

as

to

buy it—at

possible.

But

She must.

What
it

will

proved

that

our

it

happen

obvious.

Isn't

take

will

will

inevitable?

great

a

rearmament pro¬

probably not

and

gram,

Isn't

then?

it

going to collapse

are

deal of this uge

of

most

think.

us

economy

can

We

cant.

slowly

as

A

normal

in

the

old

have

nar¬

partisan necessity for it.

row

the domestic

The

people in
at

present government

our

Washington

seems

to me)

made

(it

some

rather rash promises

one

that is to cut rearmament costs!
the

So

thing J

one

clearly

see

from this look-out station viewing

the

economic

is that

and

business forest

going to spend less
less, not more and more, for
we

are

I "will

leave

it

to

to look at the individual trees

you

of this forest, to

the details of the
thinning and the pruning. I will
leave it to you to tell how all this
will affect business, earnings, the
FRB

Index

stock

prices.

of

My only comment is
some

kind of

an

justment coming, and that

thing
the

are

will

else

slack

tion

if

and

Production

have

to

of rearmament

present

business

take

up

produc¬
volumes

to be maintained.

slim

were

just

are

be

born

were

about

married.

were

in

so

every

1950.

five

is
not

a

but

the

time

very

these

look

Just
kets

as

market;

a

youngsters, by

next few years

of

unit

as

or

to

our

mar¬

these

expand

because of the way

population will
and

sume

more

are

tams.

con¬

capita!
know what they al¬

of you

ready

12

important

adults.

the way

at

bound

are

the

big factor in the

almost

are

a

old,

years

they get to be 10

consumers

as

time

the

to

seven

modern

old,

years

Up
to

1960,

teenagers

more

not much of

economy,

never

In

year.

there will be 40%
in

sub¬

and

there

of them—are bigger

many

consumers

is

1940

years—and

sequent

Wait

more

per

doing in the school systill they get a little

older—and

from

now

on

more

of

them

will

year.

The great American market

namic

getting older each

thing in

our economy, and
something to enthuse about!

it

is

It

never

I

be

always has been the dy¬

is, and

looked better.

and

capital

does

not

formation,

Something,
tator,

a

time

but

allow.

however,

said about taxes.

the

>

going to talk about per¬
debt, interest rates, profits

was

sonal

ad¬

some¬

mar¬

years,

now

to

Some

for them to deliver, and

way

them

of

that

last fall about

balancing the bud¬
get and reducing taxes. They are
embarrassed that they have not
been able to deliver. There is only

Births

age.

few

so

of

But offsetting that is something
tremendously dynamic. The babies

it

now.

forget

are

become

depression

enough

child

Don't

to

and the
depression babies, and there were

than

we

about

riageable

Korea, but nothing like

large as

rapid

less

there

because

people

police force will be much
larger than the one we had before
as

facing

are

family formation for the next few

few

If I

benevolent

must

were

one

a

be
dic¬

controlling

country without the nuisance

of elections, I would r.un the gov¬
ernment at

a

loss in times of bad

declining business, and at a
time, that peace seldom has been huge profit in good times, I would
"bearish"
in the past; and that cut taxes when business is bad,
I would

war,

even

warn

you,

"cold"

neither to business

We have out-produced her. We
have out-prepared her. We have

present age content of the

population is peculiar and signifi¬

years

But

Collapse of Armament Program

that there is

just can't accept the truth
clearly before our eyes

of what is

because

wake

prompt.

rearmament.

America,

tomor¬

to

Our change in thinking

and

in

of

us

be gradual, even if it has not been

bluntness.
Here

for

guns,

and be realistic!

up

be¬

are

reopened.

bombs

even

is

ships,

world

has

years

It

bombs of to¬

planes,

the

and

row?

nearer,

blocked trade lanes which

ginning

radar

as

realistic. I submit, too,
big fundamental trouble

the

be

submit

I

is

Europe,

that

more

that

day

We

Curtain.

complaint is heard
Western Europe is soft and
credulous

guns, radar and even

weakness

sun

the cracks in the Iron

and other elements
so

of

here

us

lifetime.

our

we

business has to contend.

know

aims

The
signifi¬ changes

the

judge

armistice

take

don't

term

she

and

hot

or

satisfaction that she just

will be dulled to live-and-let-live

it may be quite different. Certainly
continued delay or anything in the form of procrastination
will provide the opposition with the very best sort of am¬
munition, and the general public with excellent reason
to listen to Democratic party arguments. The Republican
party and the President, as leader of it, simply must begin
to show constructive results of major consequence early

clash

to
the

Stalin,

razor

Different Next Year
But next

of

The

bodies at work

period

great

of

Those very poor. Moreover, it is becom¬
together with the death of changed personalities.
reduction of retail changes can be infinitely greater ing a small town and suburban
prices for consumers'
goods in than a transfer of power from one population rather than a rural and
party
to
another
in big city population. Since 1947,
Russia, the new emphasis on the political
production of peacetime goods in America or in Britain.
population has increased by 15
And how do you prepare now million
that country, the lifting of travel
while the population of
to fight a war 15 years, 10 years,
bans, the resumption of diploma¬
what might be called the suburbs
five years, or even three years
tic relations with Yugoslavia, the
has .increased 17 million.
Will the planes, ships,
unrest in Hungary, Czechoslova¬ from now?
The

Senator Capehart,

story goes.
these

experienced in

My hunch is that,

less tense

a

than !any

is to put it

of

example, recently announced an oversized group to

organization to look into the facts of the age old
of the economics of the post office. And so the

way

cance

organized, some of them proceeding on a more infor¬
mal basis, are really being asked to formulate and recom¬
mend basic policies and programs for the Federal Govern¬
ment during the next few years!
Nor is this committee technique confined to the

search

I

cold

this

stride;

velt

into the same ball of wax.

up

oonly

of them formally appointed

it all roll

stand with

things that

and

beginning its study of the entire foreign policy
Congressional committees have
''been at work on the problems of renovating our tax struc¬
ture, and Treasury officials at the behest of the White
House are working on these issues almost day and night.
A Senate committee has recently retained a private re¬

standing alone,

armistice in Korea,

might be regarded as a mere in¬
cident in the long "cold" war. But
it does not stand alone; and the

plenty of need for the much publicized Eisenhower charm

Administration.

in

can't

strikes me,
in all of my analysis of the pres¬
ent situation, is the great change
in the international climate.
The

particularly since they are composed of such dis¬
parate elements, but we hope he will demand that they get
down to brass tacks. We hardly need add that there will be

the

Climate

International

New

over-populated committees and commissions to func¬

group was

life!

The first thing that

tion,

of

the great satisfactions of

"take"

her own

prefer to think that the President has

proceed with the financial aspects of our foreign policy
(whatever that means) just as a Presidentially appointed

challenging of difficult things

are

nothing of this sort in mind. He may be politically naive,
and thus not realize how difficult it will be for some of

for

be able to live in

atmosphere

Changed Population

The Present Outlook for Securities

ing back comfortably into the easy chair of the small
minded politician rather than occupying the more rigorous
seat of the statesman. It must not be permitted to happen

Executive branch of the government.

unsettlement

effectively and the world

ly and
may

It

politically dangerous issues. They have been all too
popular means of ducking responsibility and of fall¬

and force. These groups, some

military

past 50 years, can be solved quick¬

from first page

or

these

and

terested.

Dodges

adopted by the President have been used since time
of mind to postpone or to evade action upon controver¬

this time, and we

of the prob¬

many

which has been continuous for the

now

often

lines,

lems which have led to the politi¬

other fields .where trouble enough

many

along their tra¬

reopened

ditional

next year or so.

may

notions.

Procedures

were

Commission to study these

be

can

ment

opened to foreign manufacturers. All
elements are included in the recently appointed

these

predilection for certain lines of policy, some of them ex¬
cellent, some of them less soundly conceived and some of
them all too plainly concessions to politically popular
as

markets

our

of

Often Used

it; and vested interests which have grown up na¬

turally behind protectionism for many decades are equally
insistent that "trade not aid" may well mean for them
"aid not trade" in an aggravated form. Here also we find
influential members of the Republican party, and one
sometimes suspects, of the Democratic party, who would

policies, but of actually taking a leading part in the
formulation of such policies. It is bold sort of procedure,
and one which certainly has not been common in this
tional

come

political only. Here, too, it is difficult to

sense

no

see

See
We It

As

i

Thursday, September 3, 1953

...

(834)

happiness.
that
trade

if

the

lanes

I

at the same

war,
nor

would

is

a

boon

to national

suggest,

too,

normal^ geographical
E'Ofrope and Asia

of

or

and I would increase taxe and run

the

government at

a

surplus, re¬

ducing debt, when business is
good. That's what America ought
to do.
It would tend to stabilize

.Volume 178

Number 5252 .f.'The Commercial and Financial Chronicle

cycles, and

stop

>

thisf^ever-rising

public debt.
'

people

businessmen

vote,

the

ideal

will

ever

heaven

high

to

cry

where

I doubt if

be

realized

except by fortunate accident.
I

not

am

going

to

much hope about a

in

the

"take."

If

the

bring

as

result

a

of

demand

to

in increasing

and

more

more

from government, and I don't see

early

any

end

this

of

That's

more

it

because

is

a

dominated

market

enced investors rather than

by

ever-in¬

continue to be practiced in turn¬

and off the spigot of credit,

on

will

higher

move

From

years.

period of

over a

sometime

till

now

next

year,
on
the other hand,
there will be a continuation of the

present easiness.

bonds,

rates

try

This uptrend in
is

worldwide

a

to

stick

to

short

The

price

of

these

ma¬

low

rate long-term bonds

coupon

tionauiy

The spread

between

rates

long-term interest rates will

ter

row

understanding

of
Federal,
Municipal spheres of

Gradually

short-term

further

Keep

until

it

An

short, down to five to

attempt will be made to
change the incidence of taxation,
and to provide more so-called in¬

gerous

aggregate

tax

"take"

is

reduced

explana¬

Personal
in

the

the

and

instalment credit,

aggregate, is not of dan¬
proportions in relation to

present

and

of the

comes

prospective

in¬

people who have in¬

sector, perhaps, is in the financing
of the purchase of used automo¬

it.

Two "bad" taxes

high

tax

tax

and

the

are

the

excess

excessively
gains.
The

still

tion

to

and

will

priced

feat

its

own

that

the

My

purposes.

reforms

than

guess

get

can

thing

incomplete.

of

bankers

what

Not enough

regard

"the

as

The

the

of

surplus

about

I'm

know

Railroad

not

well

drops

a

maintained

little,

better

ing" and

tax system

new

to be too

com¬

lot of "log-roll¬
give and take to get a
through the Con¬

gress.

best

The

thing I

in the tax

see

outlook is

the trend toward

and

self-supporting "public
By this I mean toll

more

more

authorities."

^roads, toll bridges, transit systems,
and all that.
This type of thing
seems bound to spread.
The Post
Office ought to be run that way.
A

typical

development

is

the

transfer of the New York City
Hapid
Transit
System
from
a
municipal charge to a self-sup¬
porting authority. Mr. Beardsley
Huml

think

to

seems

opportunities

many

logous

things

there

do

to

the

in

are

ana¬

Federal

I suspect he is right.

Government.

agements which

the

balanced budget

a

duced

is

taxes

campaign

"That's not

not

and

re¬

simple

orators

as

made

as

it.

pleasant, but it is

fact.

a

Production

A

let's

mundane

more
me

get

Forecast^

down/to

things.* You want

stick out my neck,

to

>

some

because

ft is not yoursnecks that will get
bruised. After 34 years of this, my
neck

is

tough!

It has

been

ped on lots of time, and it
stepped on now. 1

may

get

Sometime between
end

of the

ye^r,

now

and the
some

month in which the FRB Index of

Production

between

will

215

and

be

220

somewhere

against 243

3n June and 232 in July.
would

that 60%

of the Index's content is

consumers'
I

for

The drop

be greater but for the fact

thing
the

goods.

we

year

have
in

seen

the

try

is

not

of

the

Some¬

time between npw and next June,
it may go as low as 240 against

last June's low of about 261.

high for next

year,

The

I think will




delivered

earnings

company

will

term

near

trend

downward, but only the dividends
of marginal companies are endan¬
gered.

Next year's dividends paid
by all corporations will be nearly
large as, if not a little larger

as

the

overestimating
earnings that will

are

increased

result

elimination

from

Excess Profits Tax.

in

on

the

of this

to

con¬

competitive

more

a

of

Much

saving will be passed
market.

Industry always is find¬

ing

ways

new

Excess

Profits

relief

around the

to get
Tax.

or

unwise tax. I doubt if
its tax

should

other

any

excess

be

a

prof¬

market

factor in many stocks.
The

turnover

ownership,

in

measured

Stock

by

New

Exchange

where it becomes

a

revenue

pro¬

ducer instead of merely a regula¬
tive penalty to cause people to
stocks

longer.

rocket

and

came

down

like

is

at

and will mature serially

quarterly

installments

and

to

and Cuyuna iron ranges, which produce about two-thirds of the
nation's iron ore, provide nearly a third of the company's electric

first,

none

of you would

The

revenues.

remaining industrial business is well

diversified.,

including the manufacture of cement, paper and other wood prod¬
ucts, flour and refrigerators, dairying, grain storage, coal and oreThere is also

docks.
In

1952,

hydro

extensive resort business in the

an

generation

provided

some

57%

area.

output,

and

steam

equipment covered by the

trust consists of 831
and

two

tank

new

cars

of these

cars.

both steam and hydro. The Au¬
large taconite development is under way (set*
below), is designed for an ultimate capacity of 200,000 kw.

plant, where

The

Paul J.

Koughan With

Egerton, Lofgren Go.
(Special

to

The

nanced

a

construction

through

a

program of 1950-53 has thus far been fi¬
moderate increase in funded debt together with,

depreciation and retained earnings (dividend payout is relatively
low). No equity financing appears likely in the immediate future.,
but would

Chronicle)

Financial

scheduled for operation late in July.
Operation
plants should make it unnecessary to operate a nuro—

was

new

ber of very small obsolete units
rora

hopper

new

new Aurora
plant having been placed in trial operation late in April, while the

second unit

including June 1, 1973.

Dec.

to be

seem

31, 1952

LOS

was

a possibility next year.
approximately as follows:

ANGELES, Calif.—Paul J.
Koughan has become associated

Long-Term

wtih

Common Stock Equity—

Preferred

Edgerton, Lofgren & Co., 609

South

Grand

formerly

Avenue.

officer

an

He

Estates of America, Inc. and Can¬
tor, Fitzgerald & Co., Inc.

G. W. Gerlach With

to

The

Chronicle)

Financial

MILWAUKEE, Wis. —Chas. W,

North

become

has

the

Marshall

Water

associated

765

Company,

Street.

Gerlach

Mr.

for many years conducted

his

own

investment business in Milwaukee.

Now R. A.

11,600,000

Debt

24,100,000

Wildenberg Co.

BEVERLY

$82,100,000

Light has been selling recently at 39
which is almost exactly ten times the latest reported share earn¬
ings of $3.93 for the 12 months ended July 31, 1953. This low mul¬
tiple of earnings is also characteristic of Montana Power Company.,
derives

a
substantial part of its revenues from Anaconda
Empire District Electric, serving the tri-state zinc-lead

Copper.

area, also sells at only a little over ten times earnings. Evidently
investors fear that the electric business contributed by mining

cyclical element in the earnings of these utilities
case of Minnesota Power & Light it may be
pointed out that in 1952, despite the long-drawn-out steel strike
(and its substantial effects on the general economy) share earn¬
ings were $3.27, slightly larger than those of 1951.

companies is

a

in

However,

the

Investors may also

dwindling
boring
there

reserves of

ranges.

are

also

have been somewhat apprehensive over the
high-grade iron ore in the Mesabi and neigh¬

However, these reserves are still substantial and
enormous

amounts of low-grade ore called taconite..

of

1952

Stanley L. Ross.

Until recent years,

grade ore
so

or

(Special

PALO

D.

to

The

Chronicle)

Financial

Barnes

has

Calif.

Clifford

—

become

affiliated

La
Montagne-Sherwood
Co,. 418 Waverley Street.

&

Joyce Assoc.

520

North

in

a

Michigan
securities

to

The

Financial

Mass.

Robert

J.

McCoy

with

now

&

Willard, 30 Federal Street.

With Paine, Webber Co.
"(Special

being

are

constructed

by

the

to

The

BOSTON,

Financial

with

now

T.

P.

Paine, Web¬

ber, Jackson & Curtis, 24 Federal
Street.

The Oliver Iron Mining Divi¬

plant north of Aurora, Minnesota.

sion, United States Steel Corporation, will complete soon a taconite

Minnesota, which will have an,

in operation require

Financial

Chronicle)

a

force

fit from the added residential and commercial business."

The partial refining of taconite into pellet form will, it is*
understood, require large amounts of electric power. This power
mav in some instances be supplied by Minnesota Power & Lighfc
in

other

cases

the

company

collaborate with the steei.

may

companies in the construction and/or operation of industrial power
plants to handle the job. In any event the development of
taconite reserves will probably fully offset any decline in

the
the

mining of high-grade reserves, so far as the utility company's rev¬
enues and earnings are concerned.

on

The

construc¬

working
substantially larger than is required for the present methods*
producing iron ore. The company is already getting some bene¬
employment and will when

The company's financial record

to

Company at.

Company has increased the output of its Aurora
pilot plant and has begun construction of a commercial taconite

marized in the

Joins Prescott Co.
(Special

Mining

The Erie Mining

and

Chronicle)

Mass.—Robert

Reserve

by the Oliver Iron Mining Division, United States Steel Cor¬
poration, at Mountain Iron.
"The Reserve Mining Company's taconite pilot plant at Bab¬
bitt has been in operation for six months and construction of ittf

of

is

business about devel¬

mean

Babbitt and Beaver Bay, by the Erie Mining Company of Aurora

tion

Chronicle)

—

to

seem

pilot plant near Mountain Iron,

BOSTON,
Bonner

mining companies

annual production of i)00,000 tons of concentrate.
"These taconite developments are creating much

With McCoy & Willard
(Special

The company'**

report to stockholders stated:

major processing plant at Beaver Bay is progressing satisfactorily-

CHICAGO,
111. — Thomas
F.
Joyce & Associates have opened
engage

doubted whether these refractory low-

could be profitably mined, but in the past year
of the big steel companies have made definite plans to

and

with

Form Thos.

was

oping Minnesota's low-grade iron ore of which there is an almost
unlimited supply. Plants to process taconite from this low-gradt>
ore

ALTO,

it

reserves

some

"The

Montagne-Sherw'd

100%

Minnesota Power &

spend many millions of dollars on this program.

With La

a

accompanying table.

bver the past decade is

sum¬

Stockholders will vote Oct. 1

proposed 2-for-l split of the common stock.
Common Stock Record

CLEVELAND, Ohio
Payton

has

—

become

with Prescott &

Irwin S.

associated

Co., National City

Building,
York

members

and

Midwest

of

thd

Stock

I)ivs. Paid

$20,000,000
19,000,000
18,000,000
16,000,000
15,000,000
13,000,000

$3.29
3.27

$2.20
2.20

39

3.38
3.91
3.12
3.40

2.20

35V2-30

1945——

11,000,000
10.000,000

1944—

9.000,000

2.88
1.97
*1.79

1943

9.000,000

*2.25

1951

1949—-1948—1947

Exchanges.

1946

Bernard L. Mensch

passed

L.

Mensch, members of

York

away on

Stock

Aug. 21.

*

Approximate Rangci

Consol. Earns.

Revenues

1952

1950

Bank

of

29

HILLS, Calif.—The
Wildenberg-Ross &
Co., 450 North Camden Drive, has
been changed to R. A. Wildenberg
& Co., following the withdrawal
of

name

as

57%
14

$46,400,000

Stock

,

which

The Marshall Company
(Special

Capitalization

was

Income

of

the

come

is about 315,000.

capacity, the first of two 44,000 kw. units at the big

in

on

beginning and the least
Bernard
important part is at the end; but
if the neck-sticking-out part of it the .New
had

areas

The Mesabi, Virmilioa

of 3.80%

amount

a

stick, because the best part of it

principal industry.

tificates bear dividends at the rate

New

I'm afraid this talk went up like

Population in the system

Iron mining is the

generation 43%. However, rated hydro capacity is about
41%, and steam 59%, of the installed capacity of 259,000 kw. Pres¬
ent capacity seems ample in relation to the peak load of 217,000 kw.
in 1952.
However, the company is sharply expanding its steam,

Metcalf is
stock

common

activity,
permanently is slower, much
slower, than formerly. It is, how¬
ever,
abnormally low and will
increase, particularly if the capi¬
tal gains tax is reduced to a point

a

June

1, 1953 and
principal
Sept. 1, 1953. The cer¬
on

the balance of $3,209,375

than, the dividends paid last year.
offices
at
Look out for the marginal com¬
Avenue to
panies.
Competition
is
to
the
business.
strong.
Investors

of $20

Minnesota,

the adjacent area.

Transporta¬

yet

recent

Industrial
over

American

certificates, series 52. Of the to¬
tal, $3,250,000 principal amount
was

firm

enjoying the full
financing, but it
is paying the charges on the new
money raised.
fruits

the high

Dow-Jones

better

building and recently put in
place comes into use. The indus¬

hold

Industrial Share Average.

system.

are

now

York

I look for

bonds

Utility company earnings will
improve further as the new plant

step¬

^

transport

railroad

sumers

Now

handling

are

than you think.

Just remember this whole mat¬
ter of

country's

Most

now

man¬

Company

million, serves the central and northern parts of.
including the city of Duluth. Its subsidiary^
Superior Water, Light & Power, serves Superior, Wisconsin, and

eastern

has

amaz¬

traffic

the

to

due

Minnesota Power & Light
revenues

Corp. announced Sept. 1 that
sold through Kuhn, Loeb
& Co. to a small group of insti¬
tutional investors, $6,459,375 prin¬
cipal amount of equipment trust
it

with

if

Utility Securities
By OWEN ELY

am

Loeb Places

Gerlach

early inext year,

or

too

Optimism

the

a

I

tion

person.

cost controls of the excellent

It takes

Public

After all,

authority.

Equip. Tr. Glfs.

credit,

the

Railroad earnings will be

ingly

car

over¬

personal

I

car

worst

new

right people" vote. Don't expect
fax relief legislation to be very
plete.

ap¬

prices, and must

cars.

if

Used

high in rela¬

with

used

and

way and

dangerous

down.

the

is

especially

through the various committees
Congress in the log-rolling
system of legislation will be half¬

car

wrong

market

too

come

worried

is

most

are

new

capital
personal income tax system is too
steeply graduated, tending to de¬
on

The

biles at too high prices.

prices

profits

have

I

as

of the scribes.

General

reasonably

cline. We badly need the substi¬
tution of better taxes that produce
for worse taxes that produce

one

seven years,

curred

less.

my

no

Minnesota Power & Light Company, with consolidated annual

nar¬

much unless personal incomes de¬

more

in

one

one

The

tions.

centives, at the next session of the
Congress.
I would doubt if the

and

disappears.

maturities

your

and avoid headaches and

come.

can

do you dirt—and will.

neeas overnauiing, ai tne
Federal level, and so far as a bet¬

influence is concerned.

only

rates, regardless of all
monkey business that will

turities.
Tax Reform on Way

Our present tax system
unques-

this reform will

not

am

Interest

phenomena and it has consider¬
ably further to go. In buying

neighbors, are de¬
manding these things — and they
have to be paid for.

and

I

much

as

,

and

our

out

that

Rising Interest Rates

interest

State

knows

remember

an

creasing demand for services. You

I, and

Please

uninformed amateur public.

ing

seems

a

largely by informed and experi¬

may

taxes enough to take up the slack.
A more complicated
civilization

sticking

to

peared to know today.

will

way

around

market.

the

long

got

neck.

situation, the State and
Municipal Governments probably
a

Averages

help¬
ful than it is.
This is, and will
continue to be, a highly selective

interna¬

tional

go

lot wiser and

have stayed to hear that best part
that I made you sit through till I

Govern¬

it well

easier

an

you

government

Federal

ment cuts expenses, as

sounds

sophisticated

bid reduction

aggregate

the second half year,
half.
*

first

All this talk about the

democracy

and

the matter of taxes.

on

the

not

But this country is a

where

be made in

(835)

-

Exchange,
♦Parent

company.

40V2-34

-32%

2.20

341/2-27%

2.20

291/2-22

2.20

271/2-31

0.39
0.19

—

24

The Commercial and Financial Chronicle

(836)

Joins Perkins Staff
(Special

to The

BOSTON,
is

Jacobson

Group Securities' Economist Terms
'Average'Common Slock Under-priced

Financial Chronicle)

Mass.
now

Mutual Funds

Warren R.

—

associated

Perkins & Co., Inc., 31

with

"Some

Milk St.

By ROBERT R. RICH

ments

further

business adjust¬

inevitable,

seem

the

yet

average common stock in the
THERE IS evidence that the pres¬

NATIONAL

least, to

SPECULATIVE
SERIES

tion,

characterized,

large extent,

a

which

features

market

of

at

by emo¬

itself

reverse

can

when account is taken of the
structive

TWUTUAI iNtfesT¥tW7uND"

is

market

ent

the

con¬

present

situation, D. Moreau Bar-

ringer of Delaware Fund reported
in

his

Directors'

letter this

week.

Prospectus from your dealer or

"I

believe," Mr. Barringer stated,

NATIONAL SECURITIES &
RESEARCH CORPORATION
Established 1930
120 Broadway

"that the

sioned

country is in

and

disillu¬

a

pessimistic

"In

though
may

HUGH

the

emotional shock

LONG

sued

which

year

with

com¬

term

glamor

of

the

of the

some

'business¬

new

man's' Administration.
"Add

it

to

herence

of

American

the

John's

allies, the loss of

our

prestige throughout the

bination

is

and the com¬

quite enough

give

to

the country an unreasonably 'blue

Monday'
ONE

"This

outlook,"

WAlt

NEW YORK

disregard
of

a

obligation please send

prospectus on

Canadian Fund,

the

excellent

ing

me

Barringer

current

contrast

tainable
other

statements

earnings, the widen¬
between

on

start
to

while

John

and

Address.

of

capital

"Fear that the

City

expansion

of

age

a

year.

worth
In

$42,863.

the

sons

investment

an

Since

revised

its

folder

introduction

folder
to

have

span.

than

more

funds

plansr"

~

THE

been

discuss
in

used

place

the

by

of

family financial

of

the

beginning of the
which

1,

adjusted

is

less

Knicker¬

the decline in the

This

budget-balancing

for

capital
from

one-third

usually accepted

performance

was

a

'result

of the Administration will reduce

of

by

rec¬

a

Company

50 Congress Street, Boston 9, Mass.
me

prospectuses

Humphrey

cannot be

wisely

as

spent

in

for

the

by

spent

torily

describing

Organization and the shares of your
-u-73

v.

satisfac¬
dollar

same

private hands to be spent

"That

there

first

is

a

'stickiness'

second-hand

and

loadings

in

auto¬

before

the

the
of

200

Parker

necessary

in

and

order

to have
contin¬

to

was

have

characterized

dealers'

'20s

our

as

efforts

to

clared

in

g r a d

10%

an

the

to

in

in

tion,
Harold

X.

Schreder

class of the

of

smooth

the

indications

econ¬

the

over

next

18

For the average corpora¬

this

might

around

ings.

point to a'
of about

adjustment

sales

months.

uating

antici¬

1

"Current

last

the

the

continued

a

adjustment

downward

de¬

address

and

make

omy.

econ¬

omist,

mean

20%

With

in

tax

average

earn¬

corporate

reductions

the

decline

a

pre-tax

scheduled

the

University of Wisconsin
Madison, Wisconsin.
"in

would

come

could maintain the

And

ings despite
tax

opportunities, income and
considered, than bonds, real
estate
or
commodities,"
Mr.

the

all

New

showed

I

York

that

recently

Stock

June

on

con¬

stocks

common

decline

age

15.6%,

all

to

of

50%;..(b)

individual

aver¬

stocks

hundreds

with
20%

were

highs; the

of

stocks

as

earn¬

pre¬

earnings.

■

.

'

"While

patience
of

fore

currently

the

vestment

well

may

today's

be

investor

be¬

attractive

inr

opportunities

prov^

Exchange themselves, no matter how viewed
9, 1953 (a) —-whether from the viewpoint of

81% of the individual stocks
below their 1951

on

net

same

40% decline in

required

analysis
of

a

same

corporations

many

ment

"An

be about the

now!

risk

ducted

in 1954, however,
corporation's net in¬

invest¬

attractive

more

in

appear

fact, selected stocks

offer

to

was

earnings, dividends
lected

of

below

were

Schreder

Mr.

issues

72%

or

assets—se¬

stocks

common

offer good

values."

of stocks of
to the

their 1946 highs. Yet, all the major
business indicators have been re¬

cording

advised

purchase

companies which sell

rapidly growing total popu¬
He favored the soft goods

lation.

food

peaks

new

above their 1946

"From

proof
has

for

shifted

and

1951

or

the

to

levels.

burden

on,

With

me.

substantially

the
continued

now

of

prosperity

consumer—you

'free

developing

industries

such

the

as

tobaccos,

chains, dairies, soft drinks,
banking and biscuit, along with
the service type industries such
auto

parts, banks, communications, utilities, transportation, and
as

retail trade.

markets,' Mr. Eisenhower is giv¬
ing us this responsibility and cur¬

President and Director of Research

rent

of

indications

that

is in
of

stated:

policy

adviser

"Due

of

your

by

tion in asset value and sale of

Mr. Schreder is Executive Vice-

investment

opportunities

period

is

time

no

complacency,

time

when

for

but

alert

Such

invest¬

rather

a

professional

should

again

prove

During the

$13.66

The

listed

report

stocks

and

ferreds

two

INCREASE

33%

in

corded
Fund

total

by

in

the

represented

of

net

$7,430,201

assets

was

or
re¬

twelve months ended

July 31, 1953, according to its

re¬

port for its fiscal third quarter.

to

a

increase boosted

total of

last,

$26,864,149

from

net
on

$19,433,948

to
per

72

common

portfolio

pre-

and

investments

vision, radio and electronics

com¬

the

in

or

various

companies

branches

of

within

the

elec¬

market

value

at

the

fiscal

The

remainder of the
in

was

in

the

Fund
stock

total

of

net

reduced

equities
assets

close

its

assets

and

cash.

quarter,

investment

from

to

of

total

fiscal

third

97.5%

of

twelve

era

Fund

ware

ANNUAL

Fund

its

from

report

for

of

1952

drew

"Financial

for

the

Dela¬
an

World

excellence

of

makeup and presentation.

Linton

of Dela¬

president

Nelson,

of

Mr.

able

appointment,

Schellenger's

the

management to broaden

its services to dealers

especially in
where the

the field of trust work

mutual fund industry is becoming

important factor.

increasingly

an

addition

"The

lenger

to

our

of

Mr.

Schel¬

Mr.

staff,"

Nelson

said, "will enable Delaware Fund
to

give its dealers
the

in

more

of

preparation

assistance
revocable

and irrevocable deeds of trust and

the

establishment

duction
ferred

Mr.

of

plans

and

employee

payroll

de¬

executive

de¬

programs,

plans."

pay

Schellenger is

a

resident of

Oreland, Pa. During World War II
he

was

officer in the

an

Navy and

^3eor<je
Fund

FUND
£/)o6fon

A

a

ment

share from net invest¬

income,

September
50 State

Street, Boston

Common Stock Investment Fund

Quarterly Dividend
20c

of record

30

WALTER L.

Prospectus

upon request

payable
to

stock

September 11, 1953

Lobd, Abbett & Co.
t-.'l

MORGAN, President

New York

Chicago

—

the

according to Mr. Nelson, will en-^

generation.

95th Consecutive

the

announced by W.

was

retirement
THE

of

Fund.

in

89.9%.

assets

July 31,

staff of the management

$24,157,775.

governments

During
the

period

had

member

a

Philadelphia Bar, to the executive

all

tele¬

panies,

Schellenger,

ware

in

a

Television-Electronics

in the

The

$13.40

convertible

the
AN

per¬

July 31, 1952.

Magazine"

business

month

from

share

per
on

award

best

twelve

iod, net asset value increased

share

PROGRESS

PERSONAL

THE APPOINTMENT of James P.

tronics field. These securities

REPORTS

Group Securities. Inc.

new

to

in¬

during the past

during the transition period.
ment

can

position to take advantage

a

new

are

we

months previously. The
report at¬

Berkeley St., Boston, Mass.




York

to

rolling

Schreder, New

unauly,
must

opinion

X.

tributed the increase to
apprecia-

be obtained

1925

Harold

them

the

sell

Corporation

•FOUNDED

in¬
Gov¬

up

pated tax reductions—vital in his

picture,"

ness

PUTNAM

or

building

to

men

overall busi¬

nostalgically look at

Putnam Fund Distributors, Inc.

u

vestment

The entire decade of

c7/ie

Investment Fund

that

business

prosperity,

ernment

D.

may

the '30s, it was

inflation

—and yet we

dealers

President,

Karl

its worth."

counter-depres¬

of

shortages

1920's

sive

investment

August,

cautious

are un¬

plenty of automobiles, and inten¬

may

in

management

But in the

1954.

the

economics

good times.

The

Fund

denied;

considerable margin, and

considered

not

A Mutual

cautioned

Schreder

must refrain from

s

shares.

OPEN-END
any

uous

from

his report to shareholders of

likely to exceed the 1953 level by

continuous

Prospectus

equities to under

months of readjustment your Fund

a

that railroad

nor

sion

State

a

private ends.

days

City

that

government

or as

that

as

well be lower in

Address....

stated

fact

mobile markets cannot be

rj

The Keystone

obvious

Secretary

the

Name

guarantees

In
the

the

quite

dollar

COMMON STOCK FUNDS

Funds,

Russian

Pettit,

the

left

ten

the

reduction in

of

BOND, PREFERRED AND

Please send

that

almost

a

ord level of defense expenses; nor

Custodian Fund;

your

the fact

of

H-bomb

:ystone

to income."

iow

Mr.

insure

50% of assets in the first quarter;

note

K,

ately

,

government expenditures takes no

t

for consum¬
disproportion¬

spending

years

ventories

to Sept.

year

than

market averages.

two

relative to the

the

value

Fund

and i

g e s,

down
|

ASSET

an

priced

than the aver-

compari¬

15-year

a

100,000 copies of the "George and

dealers

tively

purchasing power is at
all-time high and for the past

er's goods has been

Schreder stated.

given for

are

be

attrac¬

more

program

bocker

plans of corporations.

even

be

$1,200

had

to

appears

b 1 y

e r a

challenge.

the

accept

Personal

Central States Banking School at
to

his

of

save

market

i d

week

with

changes declined only 4.1%

ing high level of forward orders,

on

shares

ob¬

securities, and the continu¬

Name.

of

and

yields
stocks

common

15-

a

Investors.

mutual

'Calvin buLlock

no

Mr.

on

After 15 years George had
$18,613

commented, "is causing people to

STREET

GENTLEMEN: At

the

able

John"

outlook.

family

combined

assumed

was

at

world, and the fact that the Rus¬
sian H-bomb exists,

its

of

program - based

purchases

Each
35

based

insurance

and

weakening ad¬

Inc.,

endowment insurance policy

Fundamental

This fact alone

Co.,

George's

program

without

victory.

con-

s

will

and

'underpriced'

&

version

compares

security

of

enough to tarnish

it

popular "George and John" folder,

regular

is

before

mutual funds, has is¬

revised

a

pletion of the country's first war
a

market

cur¬

rent

a

W.

sponsors of

from

frame

predict where it

the

evaporates."

part

in

can't

we

carry

of the

mind, which stems

at Delaware Fund

we

don't share the present pessimism,

New York 5, N. Y.

•

short,

.Thursday, September 3, 1953

..

Atlanta

—

Los Angeles

|
i.

Volume 178

Number 5252

...

The Commercial and Financial
Chronicle

(837)

service in the South and Cen¬

saw

tral

Pacific, He

the

Wharton

Law

School

is

graduate

a

School
of

the

and

lar do the work of two and three

dollars

of

of

bread

the

Securities Salesman's Corner

University of

advertise

IN A LETTER to stockholders

The

Board

Selective

of

Directors

Fund

terly

dividend

share

payable

share holders

31,

has

of
on

of

Investors

declared

a

quar¬

eleven cents
September 18,

of record

as

companying

third

quarter

of August

1953.

ing

ening indications that this quarter

market

well

many

have

'least

C

of

marked

an

at

era—or

tensions,

ied

1

FUND, INC,

Minneapolis, Minnesota

some

trade. The quarter's

evidence

of

accompan¬

of

news

internal

tain—the truce
of

one

have

BALANCED
MUTUAL

third

a

supplied

'Iron Cur¬

Korea

but

was

examples—which

many

greatly

that

in

world

weaknesses

and discords behind the

a

the very

expansion

by

be¬

interval—of lessening

an

international

SELECTIVE

the

lessened

World

the

War

fears

might be

FUND

secur¬

ities and the newly freed markets

commodities

many

reflect such

begin

to

change in outlook.

a

change has been

should

tively

continue

smooth.

Our

gradual

to

be

rela¬

military

ex¬

penditures will necessarily remain

high
for

Prospectuses describing these
funds may be obtained from in¬
vestment

Company

dealers

or

at 2529 Russ

from

the

Building,

but

the

present

relaxation

some

in

scheduled

in

year

Every

is

'stretchout'

or

reductions

tax

present

reductions

kets

that

down for

go

quite

spell. In fact,

a

in

„

so^und

and

create

a

for

more

investors."

Add to

Mtge. Holdings
500,000 loans,

gating $3,751 million,

aggre¬

made

were

in first half of current year.

loan

and

for

associations

■

than 500,000 mortgage

more

total

a

types

months

dollar

during

of

the

this year,

National

first

six

and

Loan

League in Washington, D. C. With

that
bulk

of

securities

as

wholesale,

do

dealers,

Y.

than

billion

$21

in

their

accounts, it is estimated that

sav¬

ings

and

now

have

kl

an

their

with

so

bids,

in

loan

associations

$113

average

EXECUTIVE
CHECK LIST

each of the
the

savings

of

160,000,000 people

United States.

The
loan

nation's

'

6,000

associations

savings

had

and

net

a

ings inflow of slightly

take

half

billion

dollars

in

the

for

This

land.

is

PROGRAM—a

new

booklet

for

employers describing a care¬
fully worked out, pre-packaged,
balanced

retirement

month

salesmen look

—

than

more

vs.

PROFIT

customers

unusual tax shelter the govern¬
ment has provided to encourage

corporations to supplement So¬
cial Security for their employees,
comes a
really flexible and sim¬
ple Profit Sharing Plan.
For your free copies of this literature—
check items you wish—mail this adver- '
tisement with your personal or busineai
card.

alone

increase

the

is

recorded

in

$1,935

six

i

savings

first

throughout
a

record

million
of

greater
six

net

milHbn.

$1,562

the

of

Founded 1865

Members New York Stock

the

record

Then

Comes

on

residential,

Uptown Office 10 E.45th St., N.Y. 17
CP

months of

MUrray Hill 2-7190




37%,

has

is

there

is

that

one

no

along and explained to

come

them that they can make one dol¬

right
and

their

to

their

book

I

doing that
Speculators
go—they have a
place in the sun

ulcers.

But

looking

am

for

in

my

the

fel¬

low who says, I "I want my divi¬
dend checks—I don't care whether

they

go

up

down—I

or

not

am

speculating on the market — it's
'grits' I want when I invest in
securities."

There

find them

plenty

are

them in your town

but

of

won't

you

sitting around worrying

about the stock market.

one

After

to

-

this

associations
or

National

the

Cold

several

and

the

order

road

of

years

of

this

well-being,

Not

up.

only'

the

the

of

as

continues

market

such

developments

shares

in the rail¬
consistently

day

Just

group.

as

to

and

remain under

ignore
railroad

In

pressure.

sets

$4.00 to $5.00 annually, Denver &

—

coal

—

and you

They

changed.
for

it

(maybe not

wages

—

say

know what hap¬

the

That's

alright.

psychology has

the

word

proper

of

Instead

willing
now have

and

happy bidders we
unwilling and timid bidders.
Those

who

ments
more

bought good invest¬
higher prices don't want

at

of

them

salesman
to

his

but

if he

did

any

lower

at

doesn't

customers

prices.

look

like

anymore—

has

raised

two

this

thing

from
an

should do when he

into

runs

a

that

lower

normal—that
the

other
in

one

and

come

periods

just
have

progress

came

sistent dividends and steady
growth which they will do again.
He

should

allow

view.

himself

When

to

take

customer

a

is

discouraged
and
says
he's
through with stocks and bonds,
he jshould
sympathize with him
and by all means
believe him.
After he has

potent

more

It is the

all

listened to several

such conversations he should walk

One
as

not

widely

candidate for

treatment this year,

more

either

through

year-end

a

is

extra,

Even be¬

that of Great Northern.
recent poor

rails

as

stock

"What's Good?" That should
to prime the pump.

five

whole

a

times

for

earnings

the

12

months through June

1953, and to
yield 7.8% on the present regular
dividend of $4.00 a share annually.

right

up

four

for

a

the

front

ringside

representative

to

business.)
to

this

the

any

much

custom¬

a

keep

he

blues.

conversation

his

else

one

Then
real

(Quite

very

for

perspective than
the

a

difficult task

er's

They

row.

seat.

frankly, I think it is

in

should
the

By

has

ended

hero should be ready to go out
and take in a movie, get good and

our

drunk,
next

vote1 New

or

any

in

the

some

spective clients—plan

Savings and Loan League

paign

this

for

make

a

fall

sound

a

new

sales

and
switch

a

list

pro¬

current

the stock would ap¬
outstandingly attractive

year

pear as an

around these

investment

of

railroad

the

long been

or

as

a

that

continued

Pacific

been

Also in

new

sources.

North¬

particular boon.

a

connection with the

projects, millions of acres
irrigated farm lands are

should from here
of

on be productive
expanding freight tonnage.
Share
earnings on the Great

Northern

stock

have

years

the

over

averaged

level

to

date

and

The traf¬

during the current
has

been

further

company

good

10

past

$7.95

last year came to $9.10.
fic

earlier.

year

Northern

good

year

the

and

benefited

from

weather

It has

group.

Seasonally,

normally

bulk of its

Great
the

accrues

earnings in the second

half of the year and 1953 presum¬

the

will

be

in

road's

may

and

levels.

a

of

whole.

no

exception.

many

net

establish

a new

It

quarters

income

this

is

that
year

all-time peak

that share earnings could top

$11.50.

Such

an

estimate, in turn,

supports the hopes of
dividend policies.

liberal

more

the

Class

There

Adds

carriers

I

has

A. G. Edwards & Sons

(Special

certainly

to

The

to

Financial

Chronicle)

Staff

ST. LOUIS, Mo.—Mrs. Mary C.
anything in the past few
O'Brien has been added to the
change the company's
staff of A. G. Edwards & Sons, 409
status in this respect.
Last year
North Eighth Street, members of
its transportation ratio was 33.4%
not been

to

years

with

compared1

36.9%

all

for

Class I railroads, and the year-toyear

was

wider than that of the

industry.
Similarly,
the
road's
profit margin last year of 17.1%
was more than a point wider than
that

of

Class

Great

I

Northern

first of the
go

railroads

was

railroads

one

that

as

a

the

debt

necessity

of the

did

through bankruptcy to

nize

the New York and Midwest Stock

Exchanges.

improvement in the first half

of 1953

times

two.

the

traffic

the

a

ation, with

cam¬

winter—

sion.

power

ably

won't be in

mental state to analyze

has

expected

of the

the balance

during

whole.

of securities—meet

or

Deal

election.

On<fe thing sure—he

and

accounted

in

west

alized

than

have lhad

Expansion

Even if this rate is not to be liber¬

all day

long and watch the ticker

of

new

this

highly efficient oper¬
profit margin that in
normal times is consistently wider

tape slowly grind away, have been

of
in

up

had been laggard.

Those fellows whose job it is to sit

enough

opening

unusually

est

and

trend

indications

favorable

Northern pic¬
of traffic, and

during
action of the
particular the winter and spring months. As
a result, earnings on the one class
With the
recent decline in price in sym¬ of stock outstanding rose to $3.90
pathy with the general trend, the for the seven months through July
with $2.32 reported a
stock is now selling at just about compared
fore the

Great Northern has traditionally

them

the

is

the

Great

the

depression

final

A

1930s.

of

ture

yet been

as

stock fairly
a

di¬

1953

increase in the regular rate

an

or

has

news

considered

favorable

been considered among the sound¬

with

facet

the

in

supported

the

of

continues
influ¬ being opened up. Thus this for¬
merly
sparsely
populated
area

to any of his friends who are
down

lion

market

customer's representatives and he
sit

are

roundly $8.1
million annually compared with
between $19 million and $20 mil¬

of

opinion among analysts

of the

released.

in

share, with

a

Obviously, how¬

are

and that good in¬
through with con¬

gone,

vestments

markets

a

Charges

of

rate

than management optimism.

re¬

security prices is to lose
his perspective. He should forget

authorized

pessimism

public

ever,
as

liberal

entirely normal period of

cessive

entirely

$0.25 to $0.30

extra of $0.20.

vidend

good sales¬

any

Western

from

the

at

now

each, compared with $1.00 Government hydro-electric proj¬
previously, to be followed by a ects have attracted much industry
stock dividend of 50%, and Min¬ to the area, and the aluminum in¬
neapolis & St. Louis increased its dustry as one outstanding example
regular quarterly distribution is still planning further expan¬

never

What to Do

rate

job.

outstanding

an

share

that

The first

Illinois Central

regular

quarterly payments of $2.00

ence

only knew it, he

its

Grande

Rio

way.

$3,550 million worth, the

announces.

Favorable earnings comparisons

the past few weeks

time
of

savings

year,

Great Northern

too.

other things too — com¬
modities—automobiles—television

listen

total

-

to

Storm

the

was

$9,595 million in mortgage record¬

loan

Exchange

it

and dividend increases continue

more

year.

than

months

Of

,

during

this

.1952, when the net inflow

ings

sav¬

ings in low income-producing 2%
to 2%%-investments and the only

customers

re¬

accounts

months

23.$%

previous
of

institutions

than

first

This

their

should

is

it

family homes during the first six

Kidder, Peabody & Co.

and

—

they are pretty smart
Everyone is happy.

be

nation

SHARING

FIXED PENSIONS—out of the

June

i

These
the

to

and

come

been

what?

So

years.

will

it

make

good

think

say,

more

□ FLEXIBLE

of

ported.

program,

combining dollar annuities with
equity securities. Shows how
even a small business can
profit
by the tax advantages of a qual¬
ified retirement plan.

270

quiet
activity. It has

for

down,

go

again, it will be dull
and it will boil with

up

nice period

a

Brokers

everyone.

their

sav¬

during the

□ A BALANCED RETIREMENT
■

on

from

will

market

go

do the same. They look
"hope"—they inquire for like¬
ly looking opportunities — they
add to their holdings—and joy is

over
a

feeling

a

down

reason

We

mean)

i
'

at

positions,
talk boldly and sell strongly. The
buyers
(the investing public I

the short
for

and

security. They have confidence

in

like

Group, Incorporated

read

the

amount

according to

Savings

REQUEST

63 Wall Street, New York 5, N.

don't

for

$3,751 million in mortgages of

more

they

220

man

investment dealer

board-rooms,

have

God

Savings

from your

in

now

The

Group Securities, inc.

Distributors

as

even

spending

toward

climate

More than

ON

well

as

complacency, of well being, all
around. Those who buy and sell

When it goes up

or

of

Such

Savings and Loan Units

PROSPECTUS

which to live

on

they might desire. They don't loaf

260, or
matter. They

pens.

A

I

today do not have sufficient

goes

wages)

the

as

In your town—in my town—all
the land there
are
people

over

sideways.
there is a feeling

down,

up,

stocks

all

This

and

income

We should

direction.

ours.

will

Investors

going

next

rates.

military

step

prosperity
favorable

loans

Cultivate

the financial pages and break out
in a cold sweat if the Dow-Jones

going

of

good

a

mood to eat dinner.

who

their

turvy, inflation-deflation world of

be in

even

remember, and long before
that, the market has either been

things, stop

made

far

as

can

state

OF

while—

a

sideways—or they go
has been going on for

up—this

pleasant

STOCK FUND

mar¬

they go

or

and taxes would represent a
very

THE COMMON

stock

into

run

we

significant

San Francisco 4, California.

the

fact,i he won't

steadily moving
again, this little piece

in

the

are

should cultivate in

we

eat and sleep on in this topsy¬

can

been

often

so

money

outlook

spending which should permit

the

days

In

putting

for

"The
and

60

past
has

southward

of

imminent. The markets for

for

the

that dur¬

aware

won't be out of order at this time.

ginning of

H. K. Bradford, President

Should you be

Securities, Inc., finds "some heart¬

per

to

Tape Watchers

divi¬

to

come

should sell income, because today
that is the only thing that anyone

ac¬

dends, the management of Group

it

the table. These

the securities business.

By JOHN DUTTON

Notice of 31st Consecutive Dividend.

when

on

people that

Pennsylvania.
SELECTIVE FUND, Inc.

25

during

not

recog¬

(Special to The Financial Chronicle)

PORTLAND, Ore. — George A.
McFaul, Jr. has,become connected
with
Blyth & Co., Inc., Pacific
Building.

With King
(Special

good

Of

reducing the burden of
and fixed
charges.
In this

respect the management has done

r

With Blyth & Co., Inc.

to

The

GENESEO,
has

Merritt Co.

Financial

Chronicle)

111. —Ace

C.

Olds

joined the staff of King Mer-

rite & Co., Inc.

of New York.

The Commercial and
28

not reach

did

4

Continued from page

their 1952 level of 32. Sixteen concerns

heavier during the week in all industry and
trade groups except construction which dipped one to 19.
Sharp
upturns lifted retail casualties to 89 from 56, wholesaling to 18
from 9, manufacturing to 40 from 30, and commercial service to
16 from 7.
More businesses failed than a year ago in all lines.

and Industry

The State ol Trade

abovlf 1952* UStincMrfSWcom"
$782,000,000 in the first six months of 19o2.
Federal deficits for the current fiscal year ending
either Truman or

be less than

going to

next June

high of about

June 30 hit a new

to 55 from 34.
The week's only declines oc¬
curred in the West North Central and East South Central Regions.

casualties exceeded the 1952 level; more than twice
as
many concerns failed as last year in the Mountain, Pacific,
and South Atlantic States.
On the other hand, mortality dipped

In six areas,

$69,700,000,000,-Revenue Commis-

below

The total was $4,700,000,000, or 7.2%
above the 1952 record.
Individual income and employment taxes
vielded the highest revenue and also accounted for most of the
increase.
They totaled $37,200,000,000, up $3,500,000,000 from the
previous fiscal year.
Corporate taxes were the second largest
source of income, bringing in $21,600,000,000.
This group showed
the smallest percentage rise in the year.
•

a

year ago

the

It compares with $6.70 on
rise of 0.4%.

July 21.

Week

ago, or a

all the time, says
"Steel," the weekly magazine of metalworking, the current week.
You can see that from the continued easing in demand for steel,
a decline in steel output and a downward break in prices of steelposition is getting stronger

the sum total of the price per pound of
31 foods in general use and its chief function is to show the gen¬
eral trend of food prices at the wholesale level.

Wholesale Commodity Price Level Maintained A

continues, because users think their steel
less urgent than they were.
The rate of steel output

Demand is easing, it

The

materials used in making steel, are taking a
Not only does this drop in scrap prices reflect current
foretell something of the future, since scrap

drop

weeks.

cash

duction has to increase.

American

Institute

Steel

announced

that

Corn

in

The capacity this

year

relatively strong with good quality cash grain sell¬

smaller last week.

grain and soybean futures was

Daily

sales on the Chicago Board of Trade totaled 58,900,000
bushels, against 69,000,000 the week before, and 40,000,000 in the

the

week

same

a

year ago.

continued

Lard

of

is higher

higher,

buying of beef products. Sheep and

government

lamb prices

steady.

were

than last year.

Bookings of Spring wheat bakery flours held at a very slow

Car

Loading of

revenue

While potential demand for these types

pace.

Loadings Extend Advance of Previous Week
freight for the week ended Aug. 22, 1953,

Cocoa futures declined for the week but the spot market con¬

tinued

decrease of 16,798 cars, or
&2% below the corresponding 1952 week, and a decrease of 21,156
cars, or 2.5% under the corresponding 1951 week.
817,431

cars,

a

Electric Output Soars To New Ail-Time

totaled

of

the

over

kwh.

comparable

the like week of 1951.

over

U. S.1 Auto Output

ing conditions in the belt, lagging export trade, and slowness in
cotton textile
It

was

'

markets.

announced during the week that there would be
on

cotton shipments this

more

Drops 4% Under Preceding Week

industry turned out 125,283 cars last week, compared
with 130,493 in the previous week. A year
ago the weekly produc¬
tion was only 94,051.
United States truck production last week totaled
24,133 com¬
pared with 25,229 the previous week. A year ago truck output was

only 20*718 units.

production
week

amounted

before and

to

2,060 units

last

week,

against 1,748 the
earlier period.

1.849 in the year

Sharply Upward

which had been rising in recent weeks.
chants

than

Inc.,

in

reports.

While

casualties

were

considerably

higher

the comparable weeks of 1952 and 1951 when 132 and 164

occurred, respectively,

they remained at 21%

below

the

prewar

level of 229 in 1939.

Liabilities of $5,000
failures.

liabilities

or more were

This size group showed
wee^

anc*

under

continued

100

a

year

a

ago.

involved in 162 of the week's
marked

from

12

last

the

surpass

sales

Clearance sales of seasonal merchandise

were

much less

common

in the recent weeks.

than

Relaxed credit terms helped to

debt

remained

the

near

sustain shoppers' interest and
all-time

high reached several

weeks ago."

Retail dollar volume

in

the

week

estimated

was

by

Dun

&

Bradstreet, Inc., to be from 1 to 5% higher than the level of a
year ago.
Regional estimates varied from the comparable 1952

by

the

following

percentages:

New

England

and

South

110

in

the

+4; East —1 to -f3; Midwest -fl to -f5; Southwest, North¬
west, and Pacific Coast +2 to -f-6.
The

week

but

interest in

resurgence

Fall

clothing was weakened somewhat by the
The buying of back-to-school and

of Summer heat.

other Fall items declined and did not surpass the level of a
ago

when Labor

Day

was

a

week

earlier.

There

was

a

year

steady

dwindling in the response to clearance sales of Summer clothing.
Sportswear and children's clothing remained the most popular
items.

Small casualties, those with

$5,000, increased to 20




rise from

to

week slowed retail trade

However, most retail mer¬
figures of a year before.

0 to

Commercial and industrial failures increased to 182 in the
week ended. Aug. 27 from 122 in the
preceding week, Dun & BradStreet,

weather to many parts of the nation in

warm

the period ended on Wednesday of last

level

Business Failures Turn

ago.

In Latest Week
return of

consumer

Canadian comPanies made 6,861 cars last
week, compared with
ii5,165 in the previous week and 5,041 in the like 1952 week. Truck

preceding week, and

year

a

Trade Volume Slowed By Warm Weather

The

The

ex¬

Reported sales of cotton in the ten spot markets the past week

102,300 bales in the corresponding week

evident, states "Ward's Automotive Reports."

no

season.

increased to 105,700 bales, from 82,600 in the

Automotive output for the latest week dropped 4% below the
preceding week's volume as the effects of the General Motors fire
became

raw

market was quite steady last week with price
Helping to sustain values were mill price-

small.

port subsidy

gain of 893,304,000 kwh., or 11.7%
1952 week and an increase of 1,393,948,000

position.

Demand for

fall below the loan level. Bearish factors included favorable grow¬

107,954,000 kwh. above the

a

statistical

fixing and short-covering,, and expectations that large quantities
would be placed in the government's 1953 loan stock should prices

previous week.
The current total shows

tight

the

declined slightly during the week and

cocoa

rather slow.

fluctuations

according to the Edison Electric Institute. The previous high point
at 8,513,782,000 kwh., was reached in the week ended Aug.
15, last.
increase

reflecting

higher,

The spot cotton

High Record

and power industry for the week ended Saturday, Aug. 29, 1953,
estimated at 8,539,557,000 kwh., a new all-time high record,

an

and

174,045 bags, against 128,328 a year ago.

sugar was

was

represented

firm

Warehouse stocks of

The amount of electric energy distributed by the electric light

This

large, bakers

lower.

increased 10,044 cars, or 1.2% above the preceding week, according
to the Association of American Railroads.

Loadings totaled

was

jobbers bought sparingly in the hope that prices would work

and

The
as

consumer

appetites wilted

call for food

from

warm

slackened

weather-.

preceding

st

remained

e r e

the

slightly the past week
However, food

stores

correspond¬

television sets, large ap¬

While

pliances

and

goods

case

in

were

demand, the buying of dec¬
orating materials, floor coverings
and bedding remained high.
The approach of a new selling
weak

reflected in the grow¬

was

volume
the

past

tinued

As

to

orders

during most of

year,-the

total

wholesale

of

.

wholesale

of

week.

dollar

trade

con¬

the level of a
year
earlier.
With
inventories
generally larger than a year ago,
buyers
tive.

surpass

increasingly

were

store

country-wide basis,
the

Federal

selec¬

V '-:y
sales

A•

:

Reserve

on

a

taken from

as

Board's

in¬

dex, for the week ended Aug. 22,
1953, showed no change from the
the

of

preceding week.

four
no;

from

reported

similar

of

week

weeks

change

period

change
that of

1952.

ended

1

Aug.

to

In
was

the

For

Aug.

the

22,

Recorded.

was

Jan.

1953,

For the

22,

1953,
department stores' sales registered
an increase of 4%
above 1952.
Retail

trade

volume

York last week

intense

hot

consequence,

for

According
store

in

New

suffered from the

weather,

and

as

ai

trade observers look

drop of about 5 to 6% below

a

a

sales

year ago.

the

to

Board's
in

Federal

index
New

Re¬

department

York

City for

the weekly period ended Aug. 22,

1953, declined
period of last

ceding
was

the

1953,

week

reported

similar

reflecting lessened production and
small stocks.
Prices reached new high ground for the season and
the highest since June, 1951.
Hogs remained strong and sold at
best prices for August in five years, aided by relatively small sup¬
plies and continued firmness in fresh pork cuts. Although cattle
receipts increased, prices showed some improvement as the result

(revised), or 2,106,000 tons a week ago. For the like week a month
ago the rate was 94.0% and production 2,119,000 tons.
A year ago
-the weekly production was placed at 2,055,000 tons and the oper¬

98.9% of capacity.

all

the

1952 level.

ing

serve

average

93% of the steelmaking
capacity for the entire industry will be at an average of 95.4%
of capacity for the week beginning Aug. 31, 1953, equivalent to
2,150,000 tons of ingots and steel for castings as against 93.4%

was

United States and Canadian supplies.
was

t

n

above

the like week

ing at the best prices of the year. Rye prices dropped under selling
induced by the bright Canadian crop prospects.
Trading volume

operating rate of steel companies having

ating rate

the visible supply of the

unlooked for, drop in

an

cereal, and a smaller than expected movement of cash re¬

potential

an

and

Iron

prices

Early weakness in wheat and other grains reflected the large

cludes.
The

with

week

ceipts at North Western terminal markets.

than the percentage figure indicates, "Steel" con¬

Idle equipment

past

on

market,

bread

operating rate to hold steady, pro¬
When the rate goes down, there is more

For

the

until the final day of the week.
All grains
Monday for the first general advance in several
The rise in wheat was sparked by good demand in the

sharply

rose

greater lack of use of steelmaking facilities

of 117,5 million tons.

unsettled

were

trending downward

in the percentage rate of steel production

now

a

markets

Grain

a

actually
than is
displayed by the percentage figures. Steelmaking capacity is still
going up and should reach 119 million net tons by the yearend, but
-the operating rates are still calculated on the Jan. 1, 1953 capacity
A

with 292.64 on the cor¬

compared with 281.82 a week earlier, and

bellwether of business conditions in the steel in¬
dustry, this trade journal notes.
What happens to scrap often hap¬
pens to steel several months later. Last April, scrap prices dropped
markedly.
Now on every hand there's evidence of an easing in
steel demand.
The newest drop in scrap prices suggests a con¬
tinuation of the easing in steel demand and production, it adds.
constitutes

a

i

The

about as

were

during

as

somewhat

also

commodity price level held fairly stable last week.
daily wholesale commodity price index
narrow range and closed at 282.15 on Aug. 25.
This

responding date a year ago.

conditions but it may

historically

in

foods

the previous week no

Bradstreet

&

Dun

moved

£he important raw

is

week.

level

The general

off largely because producers feel less urgency in de¬
In the face of those situations the prices of scrap, one of

mosedive.

I

Steady Trend The Past Week

is slipping
mand.

Household goods

popular

Department

The index represents

making scrap, it observes.
meeds will be

0.9% over $6.67 a week
year's high of $6.75 on
the corresponding date a year

week.

frozen

and

at this time last year.

volume

to $6.73.
This marks a rise of
and is only slightly under the

earlier,

1952

remained in broader demand than

the

High Mark In Latest Week
in wholesale markets continued upward last week,
Dun & Bradstreet wholesale food price index for

than they

more

similar

foods

Canned

in

Food prices

lifting

the

in

season

Wholesale Food Price Index Approaches Year's

Aug. 25

The steel buyer's

did

ing

Scheduled at 95.4% of Capacity
In Present

in the Middle Atlantic, West North Central and

Central Regions.

South

East

to sell

continued

where they were up

Andrews reported.

Steel Output

in the Middle Atlantic States

climbed to 55 from 30 and

failures

Eisenhower expected.

it is reported,
red ink.
Mr. Truman last January predicted $9,900,000,000, Presi¬
dent Eisenhower in May forecast $6,600,000,000.
United States tax collections in the 1953 fiscal year ended last

Toner

major geographic regions reported increases,
in the Pacific States where

with the most marked rises appearing

budget estimates,

Revised

was

Seven of the nine

pared with
are

succumbed

compared with 10 last week.

with liabilities of $100,000 or more, as

Mortality

,

Financial Chronicle... Thursday, September 3, 1953

(833)

week

four
a

ported.

2%

from

year.

In

the

the

decrease
from that

a

of

weeks

decrease

like
pre¬

of

4%

of

the

1952,

while
ended Aug.
of

1%

for
22,

was

For the period Jan.

re¬

1

to

Aug. 22, 1953, no change was reg¬
istered from that of 1952.

Volume 178

Number 5252

The Commercial and Financial Chronicle

...

The following statistical tabulations

Indications of
Business

latest week
week

Activity

steel

Equivalent
Steel

operations

(percent of capacity)

Crude

42

gallons

Crude

Kerosene

Ago
„.

§95.4

*93.4

94.0

98.9

Sept.

6

§2,150,000

*2,106,000

2,119,000

output—daily

(bbls.

average

BANK

Aug. 22

(bbls.)

;

6,594,750

6,618,700

6,568,700

6,283,600

117,109,000

7,092,000

7,125,000

7,174,000

of

25,182,000

25,561,000

24,954,000

23,904,000

New

Aug. 22

2,334,00

2,157,000

2,212,000

2,573,000

Aug. 22

10,324,000

*10,189,000

10,023,000

10,359,000

(bbls.)
Aug. 22
Stocks at refineries, bulk terminals, in transit, in pipe lines—
Finished and unfinished gasoline (bbls.)
at J
Aug. 22

8,956,000

8,635,000

8,778,000

9,161,000

142,334,000

143,577,000

143,446,000

116,393,000

(bbls.)

____

(bbls.)

Distillate

fuel

IsSOClATION

at

oil

Residual fuel

AMERICAN

(number

South
West

30,312,000

30,814,000

and

99,085,000

50,844,000

*50,425,000

48,886,000

(U.

coal

coke

EDISON

IKON

$297,471,000

$353,898,000

154,195,000

179,162,000

236,524,000

Manufacturing
Wholesale

104,845,000

118,309,000

117,304,000

81,184,000

95,214,000

92,259,000

27

20,697,000

23,661,000

23,095,000

25,045,000

Au_

22

9,570,000

*9,535,000

9,160,000

10,955,001

-Aug

22

550,000

553,000

603,000

965,000

22

95,600

*105,800

98,600

Aug. 22

INDEX—FEDERAL

100

95

83

1

Aug. 29

AND

INDUSTRIAL)

DUN

—

Total

M.

&

8,431,603

8,511,622

182

122

182

(New

Lead

(St. Louis)

Zinc

(East

St.

48

43

74

41

724

817

580

$17,139,000

$11,179,000

$8,882,000

!

liabilities

_g_l

liabilities

8,904,000

3,811,000

5,434,000

3,200,000

1,759,000

3,196,000
1,466,000

$41,324,000

$32,379,000

$22,739,000

$45,496

liabilities

12,464,000

2,789,000
1,210,000

liabilities
service

3,777,000

11,282,000

liabilities

Total

-

I

■

liabilities

BUSINESS

4.634c

4.634c

4.634c

4.376c

$56.76

$56.76

$56.76

$55.26

$41.67

$43.17

$44.92

$42.00

INVENTORIES

MERCE

NEW

29.500c

29.675c

Aug. 26

SERIES

OF

Month

—

*$44,970

$42,892

COM¬
June

of

______—

1

Wholesale

29.700c

DEPT.

—

(millions of dollarst:

Manufacturing
Retail

10,399

*10,323

9,896

21,655

*21,543

20,125

$77,550

*$76,836

$72,913

138.5

—

134.0

130.2

24.200c
Total

29.525c

29.200c

29.075c

34.675c

Aug. 26

83.000c

83.000c

80.250c

121.500c

Aug. 26

14.000c

14.000c

14.000c

16.000c

Aug. 26

13.800c

13.300c

13.800c

15.800c

DUN

Aug. 26

11.000c

11.000c

11.000c

14.000c

(1947-1949=100)—Month

___Sept.

92.69

93.00

93.22

97.28

e(Jt-

103.64

103.80

i
at

at

at

Louis)

99

132

'

Aug. 26

York)

York)

number

59
299

7,646,253

QUOTATIONS):

Export refinery at_.
tin

service

80

419

64

number

Construction

copper—

(New

Retail

133

73

380

number

Wholesale

10,

&

—Aug. 25
Aug. 25
Aug. 25

—

J.

51,000,349

BRADSTREET,

number

Manufacturing

88,400

18,539,557

.

lb.)

&

number

number

Commercial

iper gross ton)

(E.

FAILURES—DUN

Construction

j

Domestic reimery at

Lead

Retail

RESERVE

100—

=

City

Commercial

(per gross ton)

Straits

York

84,117,260
77,592,168

INC.—Month of July:

131,784,600

Aug. 27

steel

PRICES

145

6259,040,000

61,850,000

152,481,000

;_

AVERAGE

Finisned

Electrolytic

164

$214,331,000

(tons)

(tons)

Pig iron
VIETAL

44,945,049

396,215,872

Outside New York City.

INC

(per

$441,160,921

43,264,650

411,973,547

New

673,658

COMPOSITE PRICES:

Scrap steel

$455,238,197

69,097,923

461,093,283

834,229

633,114

w-I-Aug

lignite

(COMMERCIAL

AGE

$530,191,206

780,705

659,291

27

(in 000 kwh.)

BRADSTREET,

States-

807,387

ELECTRIC INSTITUTE:

FAILURES

84,152,089

817,431

Aug!
Aug!

(tons)

Electric output

14,508,493

71,964,713

667,774

Aug. 27

DEPARTMENT STORE SALES
SYSTEM—1047-49

11,943,583

87,349,928

Aug. 27

Pennsylvania anthracite
Beehive

22,844,154

22

__Aug!

BUREAU OF MINES):

S.

74,491,792

33,436,622
15,517,964

;

:

BUSINESS

and

58,800,352

.__

52,104,000

municipal

OUTPUT

105,949,777

Pacific

;.

Bituminous

75,331,214
33,899,864

124,191,865

ENGINEERING

—

Federal
COAL

56,736,681

Mountain

98,114,000

construction

State

$20,559,484

89,526,564

Central

*32,668,000

construction

Public

$21,780,933

59,936,559

Central

110,443,000

consiruction

S.

$35,440,904
115,517,012

Aug. 27

COxNSTRUCTION

CITIES—Month

!

Atlantic

33,769,000

Aug. 22
of cars)

$139,759,000

&

East Central

113,601,000

of cars)—.
(no.

DUN

—

South Atlantic

NEWS-RECORD:
U.

INC.—215

.

Total United

freight received from connections

Private

$154,106,000 *$142,175,000

VALUATION

England

Aug. 22

freight loaded

Total

Ago

^

July:

Middle

RAILROADS:

Revenue

ENGINEERING

(in thousands)

PERMIT

Aug. 22

Revenue

CIVIL

Year

SYSTEM—Month

Aug. 22

—,—

(bbls.) at
(Bbls.) at

oil

OF

FEDERAL RESERVE

Month

GOVERNORS OF

—

BRADSTREET,

Aug. 22
Aug. 22

output

Kerosene

BOARD

OF

BUILDING

oil output

fuel

DEBITS

of June

of

(bbls.)

oil

fuel

Residual

of that dates

Previous

Month

„„

2,055,000

(bbls.)

output

Distillate

are as

Latest

6

each)

output

of quotations,

cases

either for the

are

INSTITUTE:

to stills—daily average

runs

Ago

in

or,

Year

___/Sept.

(net tons)

condensate

and

Gasoline

Month

27

production and other figures for the

cover

Dates shown in first column

that date,

on

THE

PETROLEUM

oil

month ended

or

to—

ingots end castings

IMERICAN

month available.

WppV

IRON AND STEEL INSTITUTE:

indicated

or

Previous

Latest
AMERICAN

(839)

at

—

—

CONSUMER

_.

PURCHASES

&

OF

BRADSTREET,

COMMODITIES-

INC.—
of

July

MOODY'S BOND PRICES DAILY AVERAGES:
(J. S.

Government Bonds

;

COTTON

LINTERS

AND

corporate

Aaa

—

_

__

A

Baa

Public

Group

Industrials

108.34

108.88

114.08

Lint—Consumed

697,637

106.21

112.00

In

of July
consuming establishments as of July 31

741,929

105.86

1,491,007

1,660,823

1,035,098

103.13

103.13

102.96

109.24

In

public storage as of July

3,751,936

4,050,356

1,534,264
78,830

98.25

98.09

98.57

103.97

Linters—Consumed

101.97

101.97

102.13

106.74

Stocks July

102.96

103.13

103.80

109.42

Cotton

106.04

106.21

106.21

U.

S.

YIELD

BOND

Government

Sept.

corporate

Average

AVERAGES:

DAILY

Bonds

"

3.02

3.00

3.00

Sept.

3.52

3.51

3.18

3.23

—

«ept.

3.28

3.26

.Sept.

3.41

3.40

3.38

3.56

3.56

3.57

Sept.

3.86

3.87

3.84

3.51

Sept.

3.63

3.63

3.62

3.35

Sept.

3.57

3.56

3.52

3.2C

Sept.

3.39

3.38

3.38

1

Baa

Industrials

—______

1

Group

Group
INDEX—

COMMODITY

MOODY'S

PAPERBOARD

NATIONAL

Orders-received
Production

PAINT

OIL,

Ul&- 22
—tug. 22

of period

at end

DRUG

AND

DEALERS

Aug. 23

EXCHANGE

—

'•

Odd-lot

sales, by

N.

of

Customers'

other

ig

$26,929,242

$30,299,003

$26,585,273

$29,995,478

—

®*

19,074

17,888

129

93

173

18,981

17,715

15

515,441

529,602

488.900

4,343

of

*£
"ug'

JJ

FOR

Total

ACCOUNT

Short

sales

Other

sales

Total

2,985

Aug<
ACCOUNT

FOR

TRANSACTIONS

ROUND-LOT

OF

Total

of

$19,7|42.000

157,770

149,190

144,360

178,010

157,700

149,190

144,360

8

8

8

Total

Other

sales

purchases

Short

—

transactions initiated

Total

purchases

,

272,230

248,550

Short

sales

Other

sales

229,500

252,660

204,920

186,640

5,423,840

5,850,330

4,510,360

Total sales

Total

6,103,490

4,715,280

5,728,910

sales

Other
Total

LABOR

—

(194 7 -49

NEW
=

SERIES

—

U.

S.

Meats
All
«

1,

value

119,790

106,900

32,610 !

$1,684,471

$1,337,103

12,940

14,000

13.400

6,600

US,440

95,440

85,520

122,300

133,440

106,340

92,120

213,250

credit

34,654

66,759

282,426

649,685

658,688

335,336
691,949

115,885,633

113,306,468
99,454,004

100,273,060

1,193,868

*104,494
*1,257,538

307,021
1,156,400

259
251
222
198

261
243
242
205

292
277
238
226

balances-—

shares-.,

__:

bonds

listed

100,279,485

on

U. S. Govt, issues—

Member

borrowings

on

other collateral

280,470

203,630

205,385

51,860

43,050

38,200

31,470

232,995

255,837

240,450

264,120

BY

RECEIVED

PRICES

NUMBER—U.

FARMERS

DEPT.

S.

OF

141,345

115,824,575

—

INDEX

1

AGRICUL¬

1941=100—As

liMW-July,

TURE—August,
of June

Aug-

28,648
286,289'

83,430

109,360

Aug.
ug-

15:

Unadjusted—
All

farm

products

'Crops „l_
Food
Feed

grain

—

-

grain

.*

-

'

384,855

293,337

278,650

295,599

913,625

1,053,550

.732,930

816,055

Tobacco

426

437

175,240

162,430

134.770

150,200

Cotton

266

268

319

948,855

955.4371

723,130

772,300

Fruit

253

224

220

857,900

922,500

250

1

Aug.
Aug.
Au®-

1,117,967

1,124,095

Truck

-

hay——

and

crops

Livestock

110.5

112.0

Dairy

97.7

97.4

103.8

£

1—-Aug- 25
1—Aug. 25

filncludes 639,000 barrels of foreign crude runs,

the Jan. 1, 1952 basis of 108.537,670 tons.

1
—Li

*105.3

270

182

280
267

285
277

289
306

——--

299

311

380

—

______

crops

and

254
213

257
218

277
181

r

>

products
—

i

Poultry

105.0

—

425

products
and eggs

110.8

97.5

—

:

Oil-bearing

OF

**ug-

foods

$1,663,839

S

borrowings

110.7

foods

$29,026,000

.

accounts—
balances

Member
»

„




listed

of
of

debit

free

customers'

Meat animals

—

1253 as against

of

margin

net

in banks in U.

and

value

™g-

commodities other than farm and

Revised figure,

of Jan.

hand

Market

100):

products

Processed

Total

527,240

on

Market

AuS-

DEPT.

*$29,951,000

customers

to

112,139

Commodity Group—
All commodities
Farm

extended

534,790

•

PRICES,

441,690

customers'

of

422,660

.

sales

21,888

$30,116,000

omitted)

Member

Total

666,180

(000's

30

470,410

—

*26,226

26,118

STOCK EXCHANGE—As of July 31

635,640

sales

WHOLESALE

June

(000's omitted 1:
firms
carrying

*

of members—

purchases

Snort

of

616,940

Aug.
—Au£Aug-

a—

Total round-lot transactions for account

$42,892

—-

83,170

Aug.

—

,

*$44,970

CIRCULATION—TREASURY DEPT.

IN

NEW YORK

5,542,2/0

5,653,340

580,585

*ug*

—______

______

—

____

19,544

$45,496

—

Sales

387,240

——T

$23,348

19,550

SERIES—

dollars):

—

105,430

;

;

*$25,420

SALES

&

NEW

of

Durables

250,050

off the floor—

—

$2,442,000

19,696

(millions

—Aug.

Total sales
Other

$3,227,000

$25,799

INVENTORIES

COMMERCE)

OF

of June

530,210

—

——

,

351,000

$2,962,000

—

__.

110,440

sales

420,000

600,000

Nondurables

the floor—

1

sales

Other

on

$1,671,000

543,000

July

.

506,500

—

transactions initiated

Total

$2,084,000

499,00.0

465,000

of

——

Cash

•ug'

:

65,435,000

$339,822,000

$1,998,000

Month

—

—

Credit

Aug.
—

.

58,118,000

$355,232,000

PURCHASES—INSTITUTE

AUg*

sales

50,453,000

omitted):

(DEPT.

MEM¬

——

—.—

sales

Other

57,485,000 '

35,126,000

178,010

215,880

AND SPECIALISTS:
specialists in stocks in which registered—

purchases

Short

31,177,000

71,958,000

INSURANCE

LIFE

Month

BERS, EXCEPT ODD-LOT DEALERS
Transactions

________

MANUFACTURERS'

—As

^ug-

—

—

sales

8,651,000

35,339,000

59,810,000

________

INSURANCE

MONEY

Aug-

——

—

values

Total

(SHARES):

MEMBERS

OF

8,834,000

34,018,000

_

$383,181,000

Group

$23,602,149

sales—

Round-lot

payments

———

Ordinary

564,017

$21,302,648

SALES

STOCK

ROUND-LOT

$148,980,000

37,168,000

8,378,000

LIFE

OF

June:

Total

g"

shares

482,821

ON THE NEW YORK
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS

TOTAL

of

Inventories:
—

purchases by dealers—

Number

6,079

526,563

$20,665,963

g'

—

3,039

511,098

—

—

$158,288,000

39,094,000

INSTITUTE

567,002

®*

.

sales

115

$169,923,000

—

payments

(000's

20,300

118

92

18,670

102

TO

dividends

OF

20,392

•

dealers—

by

18,799

—

111

120
PAYMENTS

benefits

Policy

LIFE

^

70

98

seasonally adjusted

Matured endowments

109.36

98

101

107

INSURANCE—BENEFIT

Annuity

72

75

103

unadjusted

Disability

23,130

u<r

i

shares—Total

seasonally adjusted—

POLICYHOLDERS

657,240

"

sales

Other

106.23

106.00

21,116

tales

Round-lot

106.06

578,884

—

sales

unadjusted
unadjusted

daily),

Death

394,190

22,596

———

value

Short

522,123

583,898

654,339

—

sales

of

507,572

19,973

.

sales—

Number

88

574,818

sales-

short

Dollar

220,691

93

15

Customers'

Round-lot

237,654

98

lg

sales

other sales—

daily),

(average

Industrial

by dealers (customers' sales)—
total sales

shares—Total

of

260,535

97

lg

—-—-—

—

short

Customers'

Number

431.2

187,012

.

orders—Customers'

-Customers'

FED¬

(average

Stocks,

—

Ddd-iot purchases
Number

422.2

185,853

Vug

shares.

532,710

1947-1949

Total

(customers' purchases)—

value

100

'

19,923,000

FEDERAL

—

Y.

orders

of

Number

Dollar

dealers

of

Number

ON

Y.

(average monthly),

Stocks,

ACCOUNT OF ODD-

SPECIALISTS

N.

Sales

SroCK
SECURITIES EXCHANGE COMMISSION:
AND

DISTRICT,

Saies

Surrender

INDEX—

REPORTER PRICE

STOCK TRANSACTIONS FOR ODD-LOT
LOl

421.4

232.550

261,470

*ug-

—
—

,

122,924

1,063,936
19,824,000

76

SALES—SECOND
OF

INSURANCE—Month

AVERAGE =100

1949

413.8

199,211

—Sept.

—L_

STORE

BANK

Sales

LIFE

—

————

(tons)

Percentage of activity
Unfilled orders (tons)

2.95

ASSOCIATION:

(tons)-.

102,693

20,007,000

3.01

A

Railroad Group
Public Utilities

July

Average=100—Month of July:

3.21

s.

'

of

1,012,443

RESERVE

RESERVE

3.0o

3ept.

Aaa
Aa

ERAL

2.69

3.53

month

31

spindles active as of July 31__;

DEPARTMENT

MOODY'S

739,050

31

112.93

Group
^

BALES:

month

Sept.
Sept.

.

Group

MERCE—RUNNING

—~ept.

_____;

Utilities

109.79

107.98
105:69

Sept.

,____

.

Railroad

103.97

5ePtSept.

:

,

;

Aa

-

COM¬

OF

Sept.

Average

-•

DEPT.

—

104.9

110.9

95.1

95.7

96.9

116.0

114.7

114.8

114.5

112.9

UNITED

(000's

§Based

on

new

annual capacity

tNew all-time high record.

of 117,547,470 tons

as

STATES

BUREAU

Exports
Imports

OF

EXPORTS

AND

CENSUS

Month

—

IMPORTS

of

<

June

omitted):
______

—

$1,379,000
951,000

*$1,441,000
*901,626

$1,167,000
860,844

The Commercial and Financial Chronicle...

(840)

5»

ment.

Continued from first page

Personally, I
if

even

The Snstaini ig

hard for

production has doubled

real

past 25 years. Our per cap¬
real income is up 50% and

the

*»

(or to

give

and

policies have been pro¬
ita
the desired results. The
the distribution of income has im- ducing
recent Communist overtures lead¬
leroved greatly during this period.
In contrast, available informa¬ ing to a Korean Armistice prob¬
tion suggests that the real earn¬ ably reflect the Soviet belief that
a truce at this time will strength¬
ings of the average worker in the
en
Communism in the long-run
•Soviet Union today, in terms of
military

icvel

in 1928, when
free enter¬

25. years ago,

certain

a

of

amount

that

lieve

probably be¬

States. They

United

the

weaken

will

and

*:ood-buying power, are below the struggle

cessation of fighting

a

provide an opportunity for
before the
further rapid Soviet industrial expeasants had been forced into col¬
lective farms. The average Soviet pansion. They probably believe, on
the other hand, that an armistice
worker has to work about 45%
will

and

prevailed,

prise

longer today for the same supply
•♦f essential foods than in 1928,
despite the widely publicized

this

price cuts of last M>ril. This un¬

fortunate
twice
us

a

worker

work

[has to

long for a pound of bread
New York City worker; for
as

a

armament

of

States

United

the

$65 billion rate from the

a

and

ten

twenty times as long

as

the New York City worker.

spring I attended a meeting
at which a number of economists

.analyzed

fragmentary

the

eco¬

nomic data coming out of Russia.

while

niandards

I have already noted,

as

nevertheless
national

has

been

of the Communists it is nec¬
essary
to analyze the economic
outlook—short-run
and,
even
egy

man

freedom and

improved living

I want

briefly the present eco¬

to discuss

nomic situation;

the forces at work

in

run;

the

longer

theories

leading

the

economic

to

as

stability

a

policy.

,,

increasing

and
during recent years.
Most of the economists attending
10%

output between 8%

The Current Economic Situation

Outlook

and

year

"this meeting

Our national economy has been

alarmed. relatively stable since the buying
"They pointed out that our produc¬ spree that followed the outbreak
tion is increasing only by about of the Korean war. In the past
* we-half
that percentage. On this two-and-one-half years we have
t^asis

very

were

production
of
would show that within a rela¬ consumer goods and services, un¬
tively short time Russian eco¬ precedented private investment in
nomic strength, as measured by new plant
and equipment, and
productive capacity, would exceed high levels of residential construc¬
projections had

straight-line

*Hir own

and the combined capac¬

world.

the free

ity of

This,

my

-economist friends believed, would
nrean disaster to the United States.

increases

from

1950

1955

to

tion. Government expenditures for
national

security

from

increased

an

annual rate of about $15 billion

to

a

level

of

$50 billion at¬

over

price index—have been relatively

*\V 43% in coal, 85% in petroleum, stable for 30 months.
*v52%
in steel, 80%
in electric
The American people have con¬
power,
85%
in
metallurgical tributed to this stability
b,y saving
"•equipment, and similar increases their money. Consumers, although
other basic industries.

But

I

took

a

optimistic

more

view. I doubted that the increase

Soviet industrial strength could
* continue
at the same pace that it
•r*

Jbas in recent years. Russia started
<rom

nothing

is

trying to
*4|ueeze a century of industrializa¬
tion into a relatively short period.
and

1 pointed out that

it will be

nec¬

for Russia to devote a
larger percentage of this output
t,o consumption rather than fur¬
ther capital investment if it is to
•maintain its existing production.
essary

tiussian
an

We

Unbearable

seeing

evidences
that Russian expansion has placed
*wri

are

now

unbearable load

on

the civilian

population of the satellite coun¬
tries, and has placed a strain upon
Hie population of Russia itself.
Tliis was confirmed by Premier
Malenkov's
revealing speech to
the
.ago.

w-aimer

Soviet

two

weeks

goods by 65% between 1950

arid 1955.

3Last week the

•jtl
the

As

the

mon¬

Rumania
Black

Foreign Minister

stated

Sea

that

Canal

work

has

one

must conclude that

pansionary
work—with

forces were still at
employment exceed¬

ing 63 million, production averag¬
ing $367 billion (annual rate),

private investment and

consump¬

tion at all-time

general credit control.

was

tiving standards. What is essential
4s that the Government should
it

that

present.

see

standards

•raised."




are

Will

to

move

we

national

a

security

business

con¬

tinue to modernize and expand to
the

meet

growing

de¬

long-run

mands of the country?

be

sumers

Will con¬
to spend a

willing

larger portion of their disposable
income

Recession

after

did

is

business analysts that the

inite

will begin to show def¬

signs of weakness this fall,

carrying into

calendar

1955. This forecast is

1954

nothing

and
new.

It is based in large measure on an

decline

penditures
and

on a

from

in

Federal

Not

levels,

decline in private

invest¬

large
pro¬

ductive capacity next year or the

after; rather I

year

inflationary
ther drain

continuing

see

and

pressures

basic

our

on

fur¬

a

resources

nothing
today which indi¬

the outlook

that

an

economic

inevitable.

Actually

have

we

ing the past two years-and-a-half.

housing, food, and
new population
the forties, will

supply the
the

in

find

for; the

decade

in

the

of

that

decade

next

will have to do

it

job nearly one-

a

third greater.

—perhaps reducing our standard
of living
and our long-run
strength.

of

this

growth in

in

the

amount

sustain

over

units

time

necessary.

Just

major economic impact

one

population lies
housing which
The fundamental .challenge to it will call for. Everyone has been
our
capitalistic system is to de¬ impressed by the magnitude of
velop public and private programs our home-building activities of
which will give us adequate mili¬ the last six years, during which
tary strength and which we car) period' new non-farm residential

the

is

whatever

I

length

believe

erally,

recognize

this

determined

are

to

that

see
us

in¬

which

will eventually
economy.
I personally

trap

a

gen¬

challenge

external forces do not lead
to

of

that

Congress, and the people

and

While

discount

to

the United States by 1960,
authorities

estimate

this

decade.

rants.

year,

Let

look

us

interesting
forces
in

internal

which

will

more

economic

be

influential

our

determining

units

will

14

be

While

mil¬

required

problems

financing

and

housing

that

of

limit

may

the rate of construction in any one

the

figures

suggest

a

sus¬

tained market for the next decade

the

at

now

dis¬

the estimates of housing needs of

pricing

even

year.

be

question

to

or

more

per

people will

many

posed

averaged
units

million

one

new

our

of

constructed

than

lion

wreck

recession

passing through adjustments
in one industry after another dur¬

and longer of

progress in the years to come.

As¬

suming that we can level off and
adjustments, and in a num¬
perhaps reduce expenditures for
cases
severe
shakedowns,
in textiles, certain consumer du¬ military preparedness, what will
be
the outlook?
What
are
the
rables, and other industries have
left the economy in a strong po¬ sustaining internal forces at play
which, in large measure, are with¬
sition.
Agriculture has been ex¬
in our power to control through
periencing a squeeze for nearly
adjustments in private and public
two years. Adjustments were in¬
programs?
evitable
as
agricultural exports
In considering these forces and
declined
to more normal levels
of

perhaps 1V2 million

housing units

economic

These

ber

to

clothing

higher levels of security
expenditure if the situation war¬

Inevitable

be

can

cited

for

hospitals, and
maintain

to
at

year.

a

astounding

Similarly,

figures
schools*

new

highways required
community

services

capita standards compara¬

per

ble with

the

present and to pro¬

vide the improved levels of
the

living

American

people
rightly
School enrollment re¬

anticipate.
mained
the

virtually

decades

unchanged

1930

1950.'

to

estimated to increase 27%

in

It

is

in this

decade and call for capital invest¬
production restored in war- the types of program adjustments ment
in
new
school
facilities
torn areas.
The farm problem is necessary it seems to me that two
amounting to
$20 billion.
The
also
the
consequence
of
the things must be kept in mind. First, Public " Health
Service, on the
it is not at all likely that we will
drought
in
the
beef-producingl
basis of State hospital plans ap¬
areas,
of the pressure of large enter a sharply defined period of proved
under
the
Hill-Burton
military demobilization as we did
carry-overs and of good current
Act,
estimates that
at present
at the end of World War II; and
crops.
Agricultural economists, I
price levels about $20 billion will

with

believe, agree that the present
slump will not likely pre¬

farm

cipitate a general depression. For
example, Dr. Jesse Tapp of the
Bank of America, recently said:
"Adjustment

problems

which

inevitably follow in the wake of
a

slowdown

tionary
in

or

reversal of

price trends

many

are

infla¬

evident

segments of agriculture.

Haunted by memories of the

sharp

post-World War I slump of 192021 and the acute farm and

economic

general

depression of the early

1930s, many farmers and others
pondering the question as to
the agricultural adjust¬
ments in prospect will precipitate
a
general economic
depression.
are

whether

second, that when and if military be needed for
jhew hospital con¬
expenditures can be tapered off, struction in this decade. Recent
the magnitude of the cutback will
highway studies place the needs
be far less than that which oc¬
for
highway
maintenance
and
curred

IIJ

ments

I would

economic

situation

of

World

War

as

of

one

modernization at $7 billion a year.

billion

in

1946—a

drop of
optimistic

The most

billion.

$70
pre¬

dictions today are that it will not
be

possible to cut national

ity

expenditures,

than

$10 to $15
below their present level

by

taxes,
billion

more

at any time

if

ture

secur¬

probably

and

in the foreseeable fu¬
to

are

we

maintain

our

military strength.

The

entitled

Dynamic Growth Forces
More than offsetting

possible decline in defense

small

expenditures

impor¬

several

are

1975, have had
pig crop by an
all of the pigs
produced in Iowa and Nebraska in
increase

to

equal

1950.

we

have

the

to

disagree

services.
for

growing

our

This

and

will

call

small

investment

in

additional
in

plant and equipment,
public programs of com¬

vast

munity

facilities,

highways,

schools, and the like.
will

likely

increase

150 million in

1960.

It

1950

has

who

are

pessimistic

continually

about the longer-run. On the other

hand, there
that

are

moderate

those who believe

inflationary

will continue almost

pres¬

indef¬

initely.

The differences between
groups are due largely to

these

differing assumptions

as

to inter¬

national developments and to dif¬

fering

theories

of

domestic

eco¬

million

about
million

175

as

of the

already

reached

increase

during

approximate 25
compared
with
less

1940's.

during the decade

While it is not easy

to appreciate the full significance
of the dynamic forces represented

If

the

continues
arms

race,

make

a

situation

necessary

I cannot

see

a

the

increase

fo which
our
is already tuned, but is

rate of
crease

for

production of

Utah
will

demand

and
in

no

agriculture re¬
cover
from the adjustment inci¬
dent to the decline in foreign de¬
way

help

mand.

I

have

placed this emphasis on
growing., consumer demand
first among the forces affecting
the longer run because it is the
thing
which
businessmen
and
government
in

making

Let

us

must

plans

look

now

to meet these

mind

investment-

at

our

demands.

ity to produce
the

in

keep
for

ability

Our abil¬

will depend upon

labor

force,

Shorter

Work

our productivity
"know-how," and on the avail¬
ability of raw materials.
or

With

there

Week

Forecast

increasing population
will

looking

for

be

additional

productive

people

jobs.

But

growth. The estimated in¬

expansion will be concentrated in
the older, retired or retirable age
groups and in the infant and child

decade

York State and

in

is

Pennsylvania, and

itself represents a new market
of

major importance.

more

the

But,
significant is the fact

national economic

which

had

years

since

major War II

in¬
than

of 25 million in population

this

factor

our

characteristic of the expected
increase in population is that the

acceleration

equivalent to
the combined population of New
in

1950

more

Wyoming,
This

to

the

substantial

that

international
to

of

rate

economy

even

nomic development.

maintain

our

from

to

equivalent

will have

we

combined

Montana,
Nevada.

demand

private

huge

re¬

popu¬

goods

consumer

than 20 million

more

to

are

we

crop,

we

production in Texas*
and Minnesota com¬

the

us

for

our

national

our

look first at the

Let

lation

sharply
and
more
basically than when by an increase of this magnitude,
I think it is extremely important
analyzing the short-run outlook.
There are those yvho prophesy a to underscore the point that this
is not merely a continuation of a
major economic depression and
even

to

amount

an

Oklahoma,
If

add

to

1950

bined.

maintain

to

are

beef consumption,

capita

will

ysts

If

to

cade.

quirements of

decade

When we attempt to sketch the
longer-run picture economic anal¬

by

our

amount

crease production by

this

the

will,

we

during the next de¬

The

Picture for

present standard of liv¬

our

ing,

the economy

million.

the

which

to main¬

we are

lamb

160

Longer-Run

report

tant dynamic forces for growth in

"rolling readjustments."
in

a

Plate"

5th

points out that if

production

this rather

issued

ago

"The

will

in

Forces

time

some

tain

Plate"

Department of Agriculture

per

/.'

"Fifth

The

ped from $88 billion in 1944 to $18

Population in the United States

the current

summarize

end

chases for national security drop¬

in process."

now

the

at

At that time Government pur¬

The seriousness of the adjustment

ex¬

present

with

unused

tain

World

I must say that there is

in

and

believe that the economy can sus¬

they

as

War II?

sures

There is considerable sentiment

assumed

living

Nat¬

urally it pinched some, but only
because of the expansionary forces

economy

that will most rapidly raise their

of

expenditures.

ex¬

on

been

as

level

down-turn

economic

unemployment

"steaming stability" supported by

economic

statistics for the first half of this
year,

among

to

reviews

one

♦topped because "the material and

'

and
credit

were

-•noral forces of the people should
tie concentrated on those works

x

reduced,

were

selective and later general

highs, and corpo¬
rate profits 12% above a year ago.
Malenkov stated, for example,
The
chief
restraining influence
he hopes to
increase conSupreme

that

penditures

applied by the
etary authorities.

Load

consumption

problems to large groups of farm¬
ers
and to some closely related
enjoying even higher standards of
industries is quite apparent. How¬
living, have been saving at annual
rates of 7%
or 8%
of their in¬ ever, there is little evidence to
comes
after taxes; in the 1930's support the view that these ad¬
they saved less than 5%, as during justment problems of themselves
an
the three years preceding Korea. will be
important factor in
heading the general economy into
Voluntary saving on the part of
individuals has been, of course, depression. On the contrary, there
is ample evidence to indicate that
encouraged by the Government's
if it can be achieved a continued
anti-inflationary fiscal, monetary,
high level of employment and
and regulatory programs. Follow¬
consumer
income
will
greatly
ing Korea, taxes were increased
facilitate the agricultural adjust¬
substantially, non-defense ex¬

controls

Expansion Becoming

question is what happens

lower

tremendous

•They pointed out that the Fifth 5- tained several months ago. Prices
year plan of Russia calls for fur¬ —as measured by the consumer
ther

the

think

I

economy.

to private investment and private

light of this cold war strat¬

In

and growth; and finally some im¬
living plications for public and private

increasing

not

will

been

The statistics suggested that Rus«;»a,

level)

the1

cates

standards. Today, therefore,

Bast

billion

$75

general
crucial

and cause economic
dislocation and recession.
its allies,

and

.potatoes, three times as long; beef,
tfive times; milk, six times; eggs, more importantly, the longer-run
*cven
times; butter, nine times; —because of the crucial impor¬
•and tea, 21 timesv as long.
For tance of a strong economy to the
•clothing he has to work between achievement of our goals of hu¬
I

It is
mar¬

a

make that much difference to

relaxation in the re¬

will induce

re¬

of Federal
expenditures at present high levels

that our economic

assurance

in

to believe that

me

present
Our

fortunate

gin of say $10 billion

recent happenings

think

pessimism,

ducing the Federal budget.

Economic

Forces Ahead
I

are

we

inclined

am

to discount some of this

Thursday, September 3, 1953

found
the

itself

close

of

plant,

in

the

World

busily engaged in trying

one

groups;
crease

than

the
far

the

work
less

force

will

in¬

proportionately

increase

in

population.
Although the labor force will in¬
crease

about 7

decade of the
the

or

8 million in the

1950's—the

1940's—population
5

same

as

increase in the decade of the

million

more

will

than

I

it

increase

increased

Volume 178

in

the

decade
safe to

seems

ual

Number 5252

the

of

1940's.

also

assume

The Commercial and Financial Chronicle

...

It

grad¬

a

shortening of the work week.

forcement,
theory

but

was

petitive

by-and-large
of

one

forces

private
the

as

The shorter work week and longer

with the gold standard

week-end may

guard

well turn out to be

a

sustaining force far beyond any¬
thing we can now foresee. Not
only will people be taking part
of the
gains in productivity in
increased

leisure,

but

that

in¬

creased

leisure will call for large
investment
in
part-time
farms,

hobbies, resorts and the like.
At

the

of dollars devoted to technical

search

re¬

(some $2 billion by indus¬

try in 1951) and a high rate of
I capital investment, I can see no

the safe¬
govern¬

intervention.

opposing philosophy holds
our
private capitalistic sys¬
tem will only work at
capacity if
there is a cohstant outside stimu¬
lus

provided.
in

be

the

This

form

of

export

might take the form of

growing

population

for

see

can

sur¬

deficits,
phenomenon.

similar

some

stimulus

government

..

the

next

or

It

that

should

show

slackening in rate
generation.
civilian

The

[just opening
provide

the

whole

next

field

atomic

of

use

marked

any

over

of

energy

is

and promises to

up

almost

tunities

for

private

will

also

years with, perhaps, gov¬
ernment help in the form of tax

panies,

sponsorship

and

surance

and

like.

in-

of

investment

the

com¬

These

de¬

velopments would vastly
the

increase
productivity of the free world.

In

the

of

area

availability

Materials

of

a

year

Policy
The

ago.

Commission, having in mind par¬
ticularly the quarter century be¬
tween

1950

and

1975,

concluded

distribution

a

such

in¬

of

provide insuffi¬
and

serv¬

to

keep
the
productive
machinery of the nation in full
operation. This theory maintains
we

able to produce more

are

willing to consume
domestically under a static situa¬
tion, that unless we give it way
through exports or the govern¬
ment provides the extra demand
through deficit spending, inven¬
we

are

tories will

pile up and

management

ness

to

busi¬

cause

reduce

pro¬

duction, thus eventually bringing
the economy to equilibrium at a

I

that

sure

I believe that

economy.

free

quite

am

adequately describes

enterprise

ur^der

economy

we

lem.

tion

We need not expect

day wake

have

to discover

up

we

out of materials and that

run

[economic
end.

will

we

activity has

The

threat

of

to

come

the

an

material

of

long

disastrous

a

independent
million

50

their

problem lies in insidiously rising

pectations

costs.

have

..."

I think

|

this

conclusion, is

tnis

significant

it

for

of

area

new

,

highly

precisely

controlling

the substitution of
and

in

is

costs

by

as a

creeping problem, the

raw

materials

and

resourcefulness is not likely

to prove

problem with

bottleneck

a

care

limiting

or a

I factor.
Solution

problem
cial

the

of

well

as

^problems
if

we

as

of

many

would

in

rios

permit

to

be

-recognize

interest

use

materials

raw

our

economic, political and

aided

so¬

greatly
self-

our

adjusting tariff bar¬
the

best

possible

of the free world's human and

material

sources.

problem

as

portant

or

the

on

the

demand

Implication

for

Private
In

I

of

one

problems

rate

the trade

our

most

from

im¬

here

on

we

ex¬

will

expanding
supply side

side.

Public

and

Policy

considering

1946

the

which

to

ernment

declared

it

to

to

all

use

practicable

promote economic sta¬

and

economic

growth.

Al¬

vided

common
goals for private
public policy and machinery

the

Executive
and

Branch
the

in

of

the

Congress

for continuing
;

Theories of Economic Stability
And

Growth

...

In outlining ..the...demand/,and
supply factors for the longer run,
I have not

gether

or

attempted to bring to¬
equate these internally

controllable

and

supply

study and research
on
this problem, and for coordi¬
nating public programs.
The debates leading to the
tion

that "the

gested

policy,

both

should

and

public

not

be

role of economic

private,

to

to

and

they would add
predominantly to inflationary

the

amount

forces

so

as

to.

conjecture

as

not

or

forces

or
predominantly to defla¬
tionary forces. By and large the

synthesis of this type is subjective

—depending

on
one's economic
philosophy. Let us look at the two
principal' opposing theories.
First, there is the orthodox view
that the private enterprise system,
while subject to cyclical move¬

ment

with

recessions

in

the long run,
natural economic
vide

maximum

and

booms,
if left to its own

forces, will

economic

pro¬

growth

and

impact

nomic fluctuations.

jective

is

of

eco¬

The Act's ob¬

maximum

employment

and

storm signals start fly¬
the economic front." After

on

seven

months, I believe this

diction

of Elliot

We

one.

as

Bell

have

can

was

Assistant

an

Mr.

good

a

in

in the Army Air Force from 1943-

the

and

energy

with which he is going about mo¬

1945.

bilizing the forces in the Execu¬

Hyde Park,

tive

Branch

the

of

in

ernment,

Federal

analyzing

trends, and in preparing
for dealing with what¬
type of
economic
change

strategy

along.

comes

assist

must

in

in¬

creasing private utilization of

pro¬
ahe^d. In
too, the Govern¬
ment must provide a flexible
pol¬
the

in

the

period

longer-run

must

controls

'

.

City

the

it

the

can

tionary

maintaining our economic strength
and growth. This theory has par¬
ticular application in marshalling
a
constructive program for eco¬
in

ahead

tape.

the

for

years
we

im¬

cannot

dent.CrPwafelected
the

Board

of

This

the

private

pretty generally
that guided

philosophy

this country up to the 1920's. There
were,

of

course,

definite

excep¬

tions

to
this laissez-faire policy
taking the form of protective tar¬
iffs and inadequate anti-trust en¬




are

fact

three years if
maintain
"maximum

to

or

employment and production."
I

would

balance

emphasize the delicate

in

which

we

find

our

today and in which we
likely to continue for some

economy
are

time.

This

challenge

to

situation

both

Trustees in

presents

business

a

and

additional

one

on

share

Subscription price for the addi¬
is

tional shares
..

be determine#

to

,

„

a* the meetmg and

contern-

we

Plate that ll wl11 be set somewhafc
th
the

^j.Up ^rnpetine **
the
meeting/

i!
of

j
day

Cbarle* T" Fisher Jr" Preside<*'

htter

that title at the time of his resig
He became a member of

the

inflationary or defla¬ Insurance in
originating in

private

upon

forced

or

1947.

sait

Jo sub15.

scribe will extend to Oct.

The stock dividend would be at

the rate of 19.732% and would
be payable Nov. 16 to sharehold-

York

State

in

SIOfflM shares and would be
on

the 313,200 shares to

Savings

on

cash subscriPtion as wel1 as oa

Lincoln, East New York and New
York Savings
Banks, offered Sav-

£

the

T\/r

tt

J(

President

first

from outside.

us

New

mon

economy,

u

of

be issued

With

private and public policy¬
makers (and Congress)
proceed¬
ing in a flexible, statesmanlike
I

manner,
can

confident

am

that

increase productivity,

and

the

standard

we

output,

of

living of the
American people, while providing
the free world with

Bank

ings

State and
tive

Life

Insurance

in

part

the

the

an

ac-

Offers Duke Pow. Bds.

share

a

J? a

Retirement

*

'

The Freeborn County National
has

changed

eral

redemption

from

105.55%

prices

in

the

ranging

12

months

beginning Sept. 1, 1953 to 100
after
Sept. 1, 1982.
Special re¬
demption
prices,
beginning
in
1953, are scaled from 102.56 to 100.
Proceeds from the sale of bonds
and

the

concurrent

offering

to

stockholders of additional

common

shares

common

will

be

used

by
the Southern utility to reimburse
the company's treasury for construction expenditures made

subsequent to May 1, 1953, and for
further construction costs. For the
calendar years

1953 and

its

estimates

requirements

1954, the

National

City

$94,400,000,
of
approximately $57,000,000

which

earmarked

for

new

generating

facilities.

Through
aggregate

the

plants

having

Bank

Piedmont section

of North

counties

of

tional Bank of Albert Lea, Albeit

Lea, Minnesota,
*

*

*

New

*

n

Virgima
have

been

Operating
months
taled
come

capacity
will
have
by 416,000 kw.

increased

revenues

ended

amounted

to

the

12

1953,

and

interest

gross

in¬

of

#

u

of

owned,

tu

r»

.

*

Bank

j

Richmond, Virg'ma, will

chase, at $45
share

per

stock

from

a

rights

to

pur¬

one

share,
for

deductions

$14,852,000.

and

bank's

board

Federal Reserve post on Sept. ly
in compliance with policy require-

ments of the Board of Governors
the
Federal
Reserve
System

o{
as

to maximum age

He

became

65

'

was

of

directors

the

to

bank's

approved authorizing

increase in the shares of stock.

Some

850

of executives.

years

of ago oa

AuiT kT

Richmond,
following
a
special
meeting of stockholders in which
charter

W

Mr- Gilbert is retiring from his*

five

directed the issuance of subscription warrants in a
meeting held in

amendment

eC-

wST

t

prp*Lpn?^ LnlnrJon

20,000-share

new

National!

Texas

nlwit+

President> announced on Aug. 2&

new

each

the

of

chair_

Directors

of

Dallas

.

stockholders

will

be

.n

of 48

A veteran

The

an

Director

a

ac1fve

Board

i

jssue

an

the

of

years

in

the

banking industry, Mr Gilbert ha*
been
,°
^,e !f
Peserve Par?Jc 0, Ba^as f®* ^
^^afs., a^1<?
as been associated
witbd}at bank since lts f°rmat"»*
n

.

in

1° assuming the new post, Mr.
Gilbert fills a vacancy on the National City Bank Board vacated

mailed the subscription warrants,
which expire at 4 p;m. on Sept. 25.
In

addition

rights,

the

directors
sion
in

for

by the death of Dallas civic and
banking leader Dan D. Rogers m.
subscription 1952.

to

bank's

also

b

o a r

approved

d

of

provi-

a

stockholder participation

the

allotment

of

unsub-

any

shares.

ci

x

Sale

of

shares

1

the

will

onn™

additional

20,000

the

increase

con

JLu

~

of $20 par

Total

3

with

on

C.

of

resources

T.

It

,

established

July

17,

of

seven

eral

of

1953>

j

#

United

,e

San

of

States

National

State sCalifornia,
N t na*
Diego,

in

1922, by
President,
total

and

$376,460.
,

been

announced

Governors

Reserve

*•

.rim

At Coburn & Mlddlebrook
chronicle)

(special to the financial

HARTFORD, Conn.—Phyllis W/

,

has

Board

of Sept

of the

Boushall,

staff

a

as

increased its common capital
bank, by stock from
$1,100,000 to $1,350,00(*
printed statement of by sa]e of new stock effective
were
$96,357,391. The Aug. 24.
was

Richmond

Directors of Tfc«»

tion of Henry A. Widdecke, Jr-J0,
the office of Vice-President, elfective

Bank

value each.

resources

June

^

National Bank, For*
Worth, Texas, announces the elec-

bank's

capital from $2,000,000 to $2,400,000, represented by 120,000 shares

to¬

May 31,

$103,083,000
before

for

*

subscription

condition,

completion of

,

,

increased

was

t

two

the

,

stock
Bank

25, from $1,500,000
$1,750,000 by a stock dividend.

its

At

,

capital

National

effective Aug.
to

40% of the 1950 population of the
states.

'

common

Central

of

man

.,.

Richmond, Virginia

^

Carolina, covering 50
having
approximately

*

„„„„„

The

an

generating capacity of
kilowatts, Duke Power

South

Tufl

The

scribed

40

1.926,673
Company supplies electric service
in

•j.

expansion

at

name

Mr.^Cromwell
the

issue of $35,000,000 Duke
Power Co. 3%% first and refund¬

bonds
are
priced
at
102.55
to
yield approximately 3.61% to ma¬
turity. They are callable at gen¬

its

effective Sept. 1, to Freeborn Na~

.

Cromwell, Vice-

new

ing mortgage bonds, due Sept. 1,
1983, is being offered publicly to¬
day (Sept. 3) by a nationwide in¬
vestment banking group headed
by The First Boston Corp. The

be

.

e

A

to

snares, to> De

'

Minnesota
T

the

on

shares

0f

™

Bank of Albert Lea, Albert Lett.

System.

*

„

annually

ar®a

^

early

President of The County Trust Co.
in White Plains, N. Y., retired on

Group

/hfFcskh' dfvMe^ rate"o?

pioneering
efforts of Savings Bank Life Insurance, as well as the Savings

leadership and
preserving Banks
freedom
and
increasing
living
standards everywhere.

First Boston

in

Mr. Hundt took

Thomas

the

to

the"

to

shareholders

by

of

for each five held.

Mr.

January 10, 1945, holding

on

generating

restraints

free market.
was

philosophy is that

the

economy as a

basis

'on

pressures

is

strength

red

expertly the whole
of fiscal, monetary and reg¬
ulatory tools to neutralize as best

private leadership and statesman¬
ship is
of vital importance in

escape

1919,

the

...

the'

with

in

clerk

a

institution

liv¬

announced

fof C^XPOand°Vice p£si"

we

of

been

Starting

as

tificial

standard

Savings Bank New

has

bank

Lincoln

the present phase of the company's
current construction program,

highest

•

Thf resignation of William C.

York

wa»s

of 313,200 shares to be offered for

Hundt from the Board of Trustees
of the Lincoln

it

dividend,

Aug. 27. If the pro-

on

24, the cash offering will consist

New

'

■

Detroit

of

array

company

mediately

and

use

stock

a

subscription
_.

in the next two

The principal role of govern¬

ment under this

of

York.

by John W. Hooper, President of

Government
duction

resident

a

New

*

Bank

posals are approved at a special
meeting of stockholders on Sept.

Gov¬

current

economic

ever

is

He

as

announced

During World War II he served

of policeman with the
job of pre¬
venting monopolies and other ar¬

ing.

also

the Stock Transfer Department.

Advisers,

to

plans to issue additional common
stock for cash subscription and

and

nomic

*

*

Stampfel joined the bank in
has always worked in

1933

admitted

been

National

The

Aug. 31.

that the private
whole will be called
upon
to expand significantly its
utilization of goods and services

the

announced

was

pre¬

confidence

has

membership effective Aug. 26.

by Horace C. Flanigan, President,

and

and

City,

Dearborn,,

Dearborn,

Michigan

of Manufacturers Trust Company,
of New York

of

Bank

Officer

Trust

Dr. Arthur Burns, new Chairman
of the President's Council of Eco¬

production within the frame¬
of a free enterprise system.
The theory underlying the Em¬
ployment Act is that aggressive
work

nomic

if and

course

Appointment of John P. Stampfel

on

adop¬

of the Employment Act sug¬

prevent all ups
downs, but rather to minimize

whether
up

demand

ing

its

implication

though not guaranteeing prosper¬
ity—and, of course, no law can do
that—the
Employment Act pro¬

in

on

Mr. Elwood W.

"continuing policy and re¬
sponsibility of the Federal Gov¬

and

eye

__

be the

bility

sharp

a

the economic weather and be pre¬

believe, is the action by the Con¬
in passing the Employment

means"

that,

conserv¬

budget balanc¬

ing, it will keep

gress

in

of

measures

on

economic assistance in

public and private policy for
the
period ahead, significant, I

Government

out.

and
with

for

Act

other

both

on

"materials

industry has always excelled.

Viewed

choices

technology that Ameri¬

new

can

I

and

and

as

five mil¬

units

to business

as

contracting

forces,

or

that

busineses

consumer

ideas

own

sort;

have four

as we

lion

begin "with emphasis
ative

said

nation.

will always have some fluctuations
if we are to avoid chronic infla¬

some

he

Administration will

It

philosophies

are not
the threat in the materials
prob¬

[that: "Absolute shortages

which

new

minimum

correct.

our

in

while the

attempt to argue which

full employment.

neither alone
our

vember,

conflicting

these

is

York

post

won't

I

of

the

at

New

icy in the areas of public expendi¬
tures, taxation, credit, with the

beldw

point

have the report of

we

| the President's
Commission

material

raw

ices

than

investment

without

cient demand for goods

that

develop in the

to

which will

come

oppor¬

[coming

inducements,

lead

oppor¬

unlimited

tunity for investment. The
overseas

will

given
of

Club

shortly after the election last No¬

the

the

stimulus private competitive forces

history of the United

Week")

Economists

when

as

in

view

the

I

liot Bell

we

such

decade

in

States

In this connection

impressed by a speech of El¬
(Editor and Publisher of

was

to modify

reason

terized

the least, it
challenge to the

pared

The holders of this

believe

government.

29

spy

real

a

rapidly

a

United States.

why the persistent increase
productivity Which has charac¬

To

consumers.

presents

"Business

The

that

pluses,

time, with billions

same

regulator,
as

excessive

against

ment

the

com¬

(841)

of

System

,

.,

by

the

that

the

Carter

has
„

joined
,

the
.

staff
T

of

_

Coburn ,& Mlddlebrook, Incorpothe rated, 100 Trumbull Street.

Fed-

Financial Chronicle

The Commercial and

30

Thursday, September

...

ADDITIONS

it

INDICATES
SINCE

PREVIOUS

•

ITEMS

REVISED

Now in Registration

Securities

•

(9/16)
be offered
subscription by stockholders of record Sept. 16 in the
Telephone & Telegraph Co.

Carolina

Colo.

& C Bldg., Denver,

E

Office—711

Ltd., Vancouver, B. C., Can.
April 22 filed 250,000 shares of common stock (no par).

Aug. 17 filed 33,320 shares of capital stock to

E. I.

company). Proceeds —To
purchase equipment and supplies. Underwriter—M. H. B.

for

ratio of

•

ISSUE

Price

—

$1

share (net to

per

Weikel, Los Angeles, Calif.

Independence Life Insurance

American

Co.,

July 14 filed 50,000 shares of preferred stock (no par)
and 50,000 shares of common stock (no par) to be of¬
fered to commissioned officers of the uniformed serv¬
ices of the United States in units of five shares of each
class of stock.
Price—$495 per unit.
Payment may be
made

in

36

Proceeds

Underwriter—

monthly instalments of $13.75 each.
general
corporate purposes.
Under¬

writer—None.

—None.

Underwriter

Seattle, Wash.

Office—407 Securities Bldg.,
.

Beverly Hills, Cal.

100,000 shares of class A common stock.
Price—At par ($10 per share).
Proceeds—To establish
and develop a cattle industry in Israel.
Underwriter—
24 filed

None.

(9/9)

Hudson Gas & Electric Corp.

Central

$6,000,000 of convertible debentures due
Sept. 1, 1963; and 159,978 shares of common stock (no
par), of which 139.978 shares will be offered for sub¬
scription by stockholders of record Sept. 9 at rate of
one new share for each 15 shares held
(with an over¬
Aug.

American-Israeli Cattle Corp.,

Aug.

it Cascade Natural Gas Corp., Seattle, Wash.
(letter of notification) 35,000 shares of common
stock (no par).
Price—$4.50 per share. Proceeds—For
retirement of notes and certain
stockholders' shares.

filed

11

with rights to expire Sept 25.
will be offered to employees.
Price—To be supplied by amendment. Proceeds—To retire
bank loans and for construction program.
Underwriters
privilege),

subscription

The remaining 20,000 shares

•
Applied Science Corp. of Princeton
May 21 filed $750,000 of 6% guaranteed sinking

fund 10-

debenture notes due April 30, 1963, of this company
and 75,000 shares of common stock (par one cent) of
Bradco, Inc., to be offered in units of $100 of notes and
10 shares of stock. Price—$105 per unit. Proceeds—For
year

acquisition of stock of two companies, who will borrow
the remainder to repay bank loans and for working
capital. Underwriter — C. K. Pistell & Co., Inc., New
York. Offering—Temporarily deferred.
Bancorporation, Phoenix, Ariz.

Arizona

July 17 filed 150,000 shares of common stock being of¬
fered for subscription by common stockholders of record
Aug. 6 on the basis of three-quarters of a new share for
each
share
held
(with
oversubscription privileges);
rights expire
Proceeds

—

Price—At par ($10 per share).
purchase stock of three State banks.

Sept.

To

15.

Armstrong Rubber Co.
March 31 filed $4,000,000 of 5% convertible subordinated
debentures due May 1, 1973.
Price—To be supplied by
amendment
Proceeds—For working capital. Business—
nolds

&

of

tires

tubes.

and

Underwriter—Rey¬

Offering—Temporarily post¬

York.

Co., New

May be Kidder, Peabody & Co. and Estabrook & Co. (jointly).
•

Service Co.

Central Illinois Public

(9/9)

(par $10).
in part, for the

Aug. 14 filed 350,000 shares of common stock
Proceeds—To
of

costs

the

reimburse

company,

additions and improvements. Under¬
writers
To
be
determined
by competitive bidding.
Probable bidders: Blyth & Co., Inc.; The First Boston
Corp.; Lehman Brothers; Glore, Forgan & Co. Bids—
To be received up to 11 a.m. (CDT) on Sept. 9, at 20
No. Wacker Drive, Chicago 6, 111.
property

—

Clary Multiplier Corp., San Gabriel, Calif.
19 (letter of notification)
not exceeding

shares

of

stock

common

(par $1).

$6.87M*

per

working capital. Underwriter—Walston & Co., San Fran¬
cisco, Calif.; Hill, Richards & Co., Los Angeles, Calif.
Colo-Kan

Fuel

Telephone Co., Sycamore,

DeKaib & Ogle

III.

25,695 shares of common

(letter of notification)

June 24

be offered for

the

of

rate

share

new

one

111. Underwriter—None.

more,

Charlotte, N. C.

Power Co.,

Duke

July 30 filed 208,321 shares of common stock
to be offered for subscription by stockholders
Sept. 2, 1953 on the basis of one new

(no par)
of record;

share for each 20

oversubscription privilege); rights;
expire on Sept. 18. Price—$30 per share.
Proceeds—|
To repay bank loans and for new construction.
Under-1

shares held

(with

an

to

writer—None.

(9/15)

Duquesne Light Co.

stock (par $10),.
of company andil
34,739 for account of Standard Power & Light Co. Pro-jj

Aug. 19 filed 184,739 shares of common
of which 150,000 shares are for account
ceeds—To

repay

Underwriters—To

bank loans and for new construction.!;!
be determined by competitive bid-?

bidders: The First Boston Corp., and;
(jointly); Blyth & Co., Inc. and Merrill
Lynch, Pierce, Fenner & Beane (jointly): Kidder, Pea-1
body & Co. and White, Weld & Co. (jointly); Carl M.I
Loeb, Rhoades & Co. and Wertheim & Co. (jointly>;]
Union
Securities Corp.;
Stone & Webster Securities]
Probable

ding.

Lehman Brothers

Kuhn, Loeb & Co. and Smith, Barney & Co J
(jointly). Bids—Expected to be received on Sept. 15,'J
public offering scheduled for Sept. 17.

with

(letter of notification) 940,000 shares of class A
common stock
(par five cents). Price — 9V2 cents per
share.
Proceeds—For drilling expenses and equipment

(9/17)

Duquesne Light Co.

Aug. 19 filed 100,000 shares of preferred stock (par $50)|
Proceeds—To reduce bank loans and for new construe-;!
Underwriters

tion.

Corp., Denver, Colo.

June 29

it Augusta Chemical Co., Augusta, Ga.
Aug. 24 (letter of notification) 5,500 shares of common

competitive]

To be determined by

—

Probable bidders: The First Boston Corp.; Kid-j
der, Peabody & Co., Merrill Lynch, Pierce. Fenner &j
Beane and White, Weld & Co. (jointly); Kuhn, Loeb &j

bidding.

NEW ISSUE CALENDAR

stock (par $1).

Price—At market, but not less than $2.75
per share (estimated at $2.87%■ to $3.50 per share).
Pro¬
ceeds
To selling stockholder.
Underwriter — May be

Stauffer Chemical

(Thursday)

September 3

named

later.

____

Machine Co.

on

plus $15

cash

to

expire

the basis of 12 shares of Automatic stock,

for

Aug.

on

Cleveland

each

31,

unless

share.

extended.

Offer

(Wednesday)

September 9

Central Hudson Gas & Electric Corp
(Offering

to

Peabody

stockholders—may
&

Co.

by

(Bids

(Bids

11

Co.

Common

S.

September 10
(Lee

Byrd Oil Corp., Dallas, Tex.

5%%' convertible sink¬
ing fund mortgage bonds due Nov. 1, 1962, to be offered
subscription by common stockholders at the rate of
$100 of bonds for each 28 shares of stock held (for a
14-day standby). Certain stockholders have waived theii
rights. Price—At par. Proceeds—To repay $1,014,500 of

Greer

expenses and working
Underwriters—Dallas Rupe & Son, Dallas, Tex.;
M. Loeb, Rhoades & Co., New York; and Straus,

McDowell, Chicago, 111.

(Bids

Tennessee

Hampshire..

EDT)

noon

11

Co

EDT)

a.m.

shares of

series

common

A,

due

stock

Sept.

Debentures

September

for

stock.

Proceeds—To

acquire

(Bids to

General Motors

per

Illinois

five Martinliners

and

Stanley

(Harris,

(The

Pacific

First

Boston

Telephone

Boston, Mass.

(Bids

303,080

Reading Co. ___L
(Bids

Sterling

Discount

EDT;

a.m.

&

Indiana &
'

Weld

Co.)

&

(Bids

A;

Corp.

•

&

(Offering

to

New York

Boston

Philadelphia

San Francisco

Private Wires




Pittsburgh

to

all

offices

..I

'

Telegraph Co
underwriting)

Co. of New

to

•

t,

Cleveland

,

stockholders)

Common

Stanley

Common

Co.)

Bonds

%-

(Bids

11

&!,.

a.m.

Bonds
EST)

October 9

'

$4,000,000

(Friday)

&

Co.)

Preferred

$750,000

'

October

$15,000,000

(Tuesday)

American Fidelity & Casualty Co

Debentures
&

6

October

shares

$300,000

& Light Co
nooii EDT) $12,000,000

Stauffer Chemical Co
(Morgan

As-ociation_Common

'^Mississippi Power Co

33,320

York

4;

(Geyer

(Bids

(Wednesday)

(Offering to stockholders—The First Boston Corp. to be
dealer-manager;
194,916 shares

Chicago
Louisiana Power

Bonds

$15,000,000

..Bonds

-New England Gas & Electric

(Wednesday)

stockholders—no

(Offering

EST)

a.m.

and

Common
•

Excelsior Insurance

..Bonds
$5,500,000

50,000 .shares

Co.)

,

Carolina Telephone &

11

Common

$3,723,750

(Tuesday)

invited;

be

to

September 30

$10,000,000

'

September 16

Inc.)

'Bids 11:30 a.m. EST; $3,000,000

/

Preferred

•

(Sutro

Co.,

^Worcester Gas Light Co

$540,000

Thompson (H. I.) Fiber Glass Co
'

Breen)

(Friday)

Michigan Electric Co

$3,420,000

Securities

F.

of)

(Territory
<Eias

...Common

Co.)

Webster

White,

&

September 29
waii

;.

&

(Stroud

.f

Debs.

Tennessee Gas Transmission Co.;
(Stone

f:-

>;

shares

Corp..

(Courts

and George

shares

j.Cfentral-Penn National Bank of Phila

Equip. Trust Ctfs.
11

Inc.

& Co.,

EDTy $50,000,000

noon

Common

Conditioning Corp

Air

Burnside

September 25

Co

Telegraph

&

Spates

Debentures

.....Common

Corp.)

Common

320,000

$1,000,000

Inc.;

Co.,

(Thursday)

of Detroit

i' May be Morgan Stanley & Co.) 313,200 shares

$150,000,000

Co.)

Mountain Fuel Supply Co...

the spare parts.

*. •

Bank

V' .(Mortimer B.

Preferred

&

ft:

United

Common

Co

Hall

Bonds

(Bids to be invited) $12,000,000

184,739 shares

&

(Tuesday)

v/c

ii,

...

invited;

.Common

&

September 24

(Tuesday)

Acceptance Corp...

Telephone

share

Office—Burbank, Calif. Underwriters—
Gearhart & Otis, Inc., New
York; and McCoy & Willard,

be

(Morgan

1,

principal amount for certificates and 75 cents

j".;
\;

$20,000,000

15

$1,500,000

Co

Duquesne Light Co

'National

Offering—Postponed

1957, and 400,000
(par 50 cents). Price—100% of

|

$7,000,GOO

Gas Transmission
(Bids

Bonds

Co.)

&

September 22

(Monday)

of New

Duquesne Light Co.__

certificates,

(Monday)

stockholders—underwriter may be
Co., Inc.) 1,946,823 shares

to

Blyth

.

capital.

California Central Airlines, Inc.
Aug. 24 filed $600,000 of 7% convertible equipment trust

(Offering

$5,250,000

September 14
Public Service Co.

&

Beane;

Debentures

(Eurnham

Pacific Gas & Electric

Equip. Trust Ctfs.
EDT)

Wertheim

&:

Hydraulics, Inc

...Debentures

;

$15,000,000

Southern Pacific Co
noon

Fenner

shares

337,118

(Thursday)

Higginson Corp.)

(Lids

Common

Co

Brothers;

Pierce,

$150,000

for

outstanding notes and for drilling

Lynch,

Merrill

and

September 21

Underwriter—

Oct. 22 filed $1,750,000 of 10-year

(Friday)

18

Lehman

Corp.;

Boston

..Common
Inc.)

Gerber,

Household Finance Corp

Blosser &

First

Co.,

Northland Oils, Ltd
(M.

(The

350,000 shares

CDT)

a.m.

Preferred
$5,000,000

York State Electric & Gas

New

Central Illinois Public Service

(Thursday)

invited)

be

to

September

Kidder,

shares

139,978

Co.;

$35,000,000

Common

underwritten

be

Estabrook &

ana

Corp.)

Boston

Duquesne Light Co

$6,000,000

was

None.

Carl

First

September 17

Central Hudson Gas & Electric Corp.___Debentures
(Underwriters to be named later;

Debentures

Wcstinghouse Air Brake Co

$2,820,000

(The

• Automatic Steel
Products, Inc., Canton, Ohio
Aug. 10 (letter of notification) 17,145 shares of preferred
stock (par $1) being issued in exchange for 1,143 shares
of preferred stock (no par) of The Cleveland Tapping

in

EDTi

noon

Electric

Windows, Inc.
July 17 (letter of notification) 299,850 shares of common
stock (par 1 cent).
Price—$1 per share. Proceeds—For
general corporate purposes.
Office — Woodside, L. I.,
N. Y.
Underwriter—Royal Securities Corp., New York.

Common

325,000 shares

...Equip. Trust Ctfs.

__

lEids

Automatic

_!

Co

'Morgan Stanley & Co.)

—

Wabash RR.

J

subscription by stockholdes at f
for each four shares held:
Price—At par ($10 per share). Proceeds—To construct
telephone exchange. Office—112 West Elm- St., Syca¬

stock, to

'

poned.

|

Corp.;

30,000
Price — At market
share).
Proceeds — For

Aug.

•

Underwriter—None.

Row, New York, N. Y.

by amendment.

supplied

(approximately

Underwriter—None.

Manufacturer

be

—To

Colo.

Shelley & Co., Denver,

Cooperative Services, Inc. pN. Y.) >
Aug. 28 (letter of notification) 2,000 shares oi: common
stock.
Price—At par ($5 per share). Proceeds—To repurchase from shareholders stock of the^ corporation
which they wish to dispose of by sale. Office—38 Park

Aug. 25

equal
For

—

held; rights

share for each five shares

new

one

expire about Oct. 6. Price—At par ($100 per snare).
Proceeds—To reduce short-term notes. Underwriter—-

to

None.

Houston, Texas.

C-

.

it Consumers'

Gold Mines

Acteon

; i

3, 1953

(842)

28

(Wednesday)

Service Electric & Gas Co
(Bids may

be invited) $30,600,000

Bonds

olume ITS

Number 5252

..

.The Commercial and Financial Chronicle

& Co. (jointly); Blyth & Co., Inc.;
Bids—Expected
to be received on.

Co. and Smith, Barney
Brothers.

Lehman

"

(9/22)

Duquesne Light Co.

filed $12,000,000 of first mortgage bonds due
Sept. 1, 1977. Proceeds — To repay bank loans and for
new
construction.
Underwriters—To be determined by
Aug.

19

Probable

bidding.

competitive
&

Halsey,

bidders:

Co. Inc.: Drexel & Co. and Equitable

Hunter Creek

Mining Co., Wallace, Idaho
(letter of notification) 160,000 shares of common
Price—25 cents per share.
Proceeds—For oper¬
ating capital.
Office — 509 Bank St., Wallace, Idaho.

Stuart

Securities Corp.

Underwriter—Mine Financing,

Christie & Co.,
Houston, Tex. Dealer Relations Representative—George
A. Searight, 50 Broadway, New York, N. Y. Telephone
corporate purposes. Underwriter—B. V.

Inc., Spokane, Wash.

Telephone Co.
Aug. 14 filed 568,703 shares of capital stock to be offered

Dredging Co., New Orleans, La.
July 15 (letter of notification) 3,800 shares of common
stock (par $10).
Price — At market (approximately
$12.62y2 per share). Proceeds—To a selling stockhold¬
er.
Underwriter—Bacon, Whipple & Co., Chicago, 111.
McWilliams

for

subscription by stockholders of record Sept. 3 on the
one new share for each six shares held; rights to
expire on Oct. 1. A total of 3,388,832 shares (99.31%) of
the outstanding stock is owned by American Telephone
basis of

ceeds—To

ing

None.

Sept. 24.

on

(9/16)
Aug. 26 (letter of notification) 30,000 shares of capital
stock (par $6) to be offered for subscription by stock¬
holders of record Sept. 16 at rate of one new share for
each four shares held; rights to expire Oct. 5. Price—$10
W Excelsior Insurance Co. of New York

share.

per

Proceeds

Syracuse Savings

For

—

working

Office—

capital.

Bank Bldg., Syracuse,

Under¬

N. Y.

writer—None.

Fairway Foods, Inc., St. Paul, Minn.
May 8 filed $1,600,000 first mortgage lien 4Y2% bonds
mature $40,000 annually from 1955 to 1994, inclusive.
Price—At 100% of principal amount. Proceeds—To con¬

to

struct

Underwriter—None.

warehouse.

new

it Foxbilt. Inc., Des Moines, la.
Aug. 24 (letter of notification) $250,000 of 5% subordin¬
ated notes.

Price—At $100 face value.

tire short-term notes

and

for working

504% Grand Ave., Des Moines,, la.

Proceeds—To re¬
capital. Office—

Underwriter—None.

General Credit, Inc.,

Washington, D. C.
Aug. 24 filed 150,000 shares of participating preference
tock
five

(par SI ) and 150,000 shares of common stock
cents),

be offered

to

class of stock.

ing capital.

Price—$5

in

per

Underwriter

—

units of

unit.

one

share

of

(par
each

Proceeds—For work¬

&

•

Telegraph Co.

Illinois Telephone

Aug.

General! Dynamics Corp.
May 12 filed 250,000 shares of

provements.

stock

by amendment.
bank loans made to acquire a block of 400,000 share*
Vultee

Aircraft

Corp.
UnderwriterNew York, and Greenshields & Co.,

Lehman

Brothers,
Inc., Montreal. Canada. Offering—Withdrawn Aug. 27.

—

Price

For

To

—

be

Underwriter—Harris,

Hall

&

^ General! Motors Acceptance Corp. (9/15)
Aug. 28 filed $150,000,000 of eight-year debentures due
Sept. 15. 1961. Price — To be supplied by amendment.
increased

volume

business.

of

Co.

Inc.

Bids—To

be

received

to

up

11

a.m.

(EST)

•

Industrial

Research, Inc., Mjami, Fla.
85,000 shares of

July 29

(letter of notification)
stock (par $1). Price — $1.15

June

47

&

Co.,

stock.

on

common

Coral

Gables,

Fla.

Underwriter—

with¬

Temporarily

drawn.

shares

of

capital stock held.

other

Price—To

Proceeds—To

amendment.

corporate

repay

be supplied by

bank

loans

shares of

It is planned to vote on a voluntary plan

adjustment under which it is planned to segregate the
Georgia RR. Bank & Trust Co. and the

business of th.e

and

Underwriter—Blyth &
Offering—Indefinitely postponed.

purposes.

Inc., New York.

stock

Telo-Service Corp.

(par five cents).

for

Co.,

Price—50 cents

common

Underwriter—None.

Price

—

At market.

Proceeds

—

For investment.

June

131,784 shares of common stock (par $1).
supplied by amendment (between $8 and
share). Proceeds—To pay mortgage debt and for
be

Business

Research and development and
exploitation in the field of ion

—

subsequent commercial

exchange chemistry.

Underwriter—Lee Higginson Corp.,

New York and Boston

(Mass.). Offering—Date indefinite.

Kenwell Oils & Mines

Ltd., Toronto, Canada

Aug. 20 filed 1,400,000 shares of common stock (par $1).

Statement

working capital and general corporate purposes.

Banking Go. of

Aug.

14. See also

First Railroad

Georgia under "Prospective

&

Offerings"

below.

Grand Bahama

6o., Ltd., Nassau

Feb. 3 filed SI,350,000 20-year 6% first mortgage conver¬
tible debentures due March, 1973, and 1,565,000 shares
of class A stock (par 10 cents).
Price—Par for deben¬
tures

and $1

per

share for stock.

Business

construction.

—

Hotel

Proceeds — For new
land development.

and

Underwriter—Gearhart & Otis, Inc., New

May 1 filed 55,313 shares of capital stock (par $5) to be
for subscription by stockholders on the basis
new

share for each four shares held.

Price—To

be supplied by amendment.

Proceeds—For general cor¬
porate purposes.
Underwriter — None.
Offering — No
definite plan adopted.
.
.

Greer

Hydraulics, Inc., Brooklyn, N. Y. (9/21-24)
Aug. 24 filed $1,500,000 of 5V2% convertible sinking fund
debentures, due Sept. 1, 1965. Price—To be supplied by
amendment.
Proceeds
For working capital.
Under¬
writer—Burnham & Co., New York.
—

Gulf Coast

July

31

Leaseholds, Inc., Houston, Tex.
of notification) 60,000 shares of

(letter

cumulative convertible class A stock
fered
of

one

for

subscription

by

common

class A share for each three

Price—$5 per share.

(par $4)

6%%

at

rate

shares held.

Proceeds—-For working capital, etc.

Underwriter—Leason & Co., Inc., Chicago, 111.

Hedges Diesel, Inc. (N. J.)
Aug. 24 (letter of notification) 10,000 shares of Class A
common
stock and 20,000 shares of Class B common
stock. Price—At par ($10 per share). Proceeds—To erect
plant and for new equipment, and working capital. Of¬

fice—Marlton, N. J.

Underwriters—None.

Household Finance Corp.,

Chicago, III. (9/10)
Aug. 21 filed $5,000,000 of 5-year debentures due Sept.
15, 1958 and 810,000,000 of 15-year debentures due Sept.
15, 1968. Price—To be filed by amendment. Proceeds—
To reduce bank loans.
Underwriters
Lee Higginson
Corp., New York, and William Blair & Co.. Chicago, 111.




—

be supplied

writer—To be supplied

by amendment.

Proceeds—For

Under¬

by amendment.

^ Kiddieland, Inc. of Worcester, Dracut, Mass.
Aug. 27 (letter of notification) 200 shares of 5% cumu¬
lative participating preferred stock.
Price — $200 per
share. Proceeds—To erect a building to house amusement
Office—50 Emerson

center.

development

Price—50 cents

Ave., Dracut, Mass.

Under¬

share. Proceeds
for milling

per

payment

and

expenses

.privileges or purchasing a mill on time. Office — 212
Union Block, Mt. Vernon, Wash. Underwriter—None.
Mountain Fuel

Supply Co. (9/15)
303,080 shares of capital stock

Aug. 25 filed
Price

—

Ohio

Oil

.

To be supplied by amendment.

Co., who will continue to hold

Muntz TV
June

19

(par $10).
— To

Proceeds

177,777 shares.

Corp., New York.

Inc., Chicago, III.

(letter of notification) 12,000 shares of

common

stock (par $1). Price—At market (about $3.25 per

Earl

D. Sherman

W.

share).
Underwriter—

Muntz, President.

& Co., New York.

★ New York State Electric & Gas Corp.
Aug. 28 filed 337,118 shares of
be

offered

record

shares

for

subscription by

Sept. 17 at rate of

rill

share for each eight

held; rights will expire Oct. 5.

plied by amendment.
and for

Proceeds

construction.

new

stockholders of

common
new

one

(9/18)

stock (no par) to

common

Price—To be

sup¬

To repay bank loans

—

Underwriter—The

First Bos¬

Corp.; Lehman Brothers; Wertheim & Co.; and Mer¬
Lynch, Pierce, Fenner & Beane; all of New York.

North Idaho Mines, Inc., Kellogg, Ida.
July 31 (letter of notification) 400 shares of common
stock (no par).
Price—$125 per share. Proceeds—For
exploration. Address—Box 298, Kellogg, Idaho. Under¬

writer—Robert G.
•

Northland

Nov.

21

Sparling, Seattle, Wash.

Oils

Ltd., Canada

(9/9)

filed

1,000,000 shares of capital stock (par 20*
Canadian)
and subscription warrants for 600,000
shares, which statement was amended May 20 to 200,000

—

writer—None.

^ Lad-E, Inc., Washington, D. C.
26 (letter of notification) 300 shares of common
stock (no par).
Price — $50 per share. Proceeds—To
16th St.,

Office—1600
Underwriter—None.

N.W., Washington, D. C.

Inc., Roslindale, Mass.
July 3 (letter of notification) 2,100 shares of common
stock (par $5). Price—$16.50 per share. Proceeds—For
working capital for device to dispense and record drinks.
Office—596 Poplar St., Roslindale, Mass. Underwriter—
Coburn & Middlebrook, Inc., Boston, Mass.

shares

warrants

and

offered in units of

to

one

purchase

Price—75 cents per unit. Proceeds—For

wells

tional

one

warrant.

drilling of addi¬

and

writer—M. S.

shares to be

200,000

share of stock and

to purchase producing
Gerber, Inc., New York.

wells. Under¬

Liquor Register,

tAt Nyson Oil Corp., Oklahoma City, Okla.
Aug. 24 (letter of notification) $225,000 of eight-year
5V2% notes and 135,000 shares of common stock (par
10 cents)

to be offered in units of $500 of notes and 300

shares of

common

—For

Lone Star

record

For

May 8 on a share-for-share basis "as a specula¬
Proceeds—

Price—To be supplied by amendment.

expansion program.

Louisiana

Power &

Underwriter—None.

Light Co.

i

(9/16)

retirement

land.

Sulphur Corp., Wilmington, Del.

May 8 filed 600,000 shares of common stock (par 5 cents)
subscription by common stockholders of

to be offered for

tion."

to be of¬

stockholders
common

To

produce model home, for advertising, etc.

offered
one

—

Aug.

York.

Gray Manufacturing Co., Hartford, Conn.

of

Price

(par 10 cents).

ton

railroad business and to place the company in a position
where it can obtain additional funds in the near future.
effective

stock

L.

30 filed

per

ic Mitchell Mining Co., Inc., Mt. Vernon, Wash.
Aug. 24 (letter of notification) 110,000 shares of common

Proceeds—To

Ionics, Inc., Cambridge, Mass.

Price—To

cents). Price—40 cents per share. Proceeds
equipment, leases, etc., and working capital. Un¬

derwriter—Allen E. Beers Co., Philadelphia, Pa.

Underwriter—The First Boston

Underwriter—None.
•

stock (par 10

—For

per

^ Investment Trust of Boston
Aug. 27 filed 300,000 shares of beneficial interest in the

.

Aug. 24 (letter of notification) 740,000 shares of common

—For

(Del.)

share. Pro¬
ceeds—For purchase of machinery, installation of elec¬
tronic and business equipment, and for other general
corporate purposes. Office—135 East 50th St., New York,
N. Y.

Michigan Consolidated Gas Co.
May 15 filed $20,000,000 of first mortgage bonds due 1978,
Proceeds—From sale of bonds, plus proceeds from sale
of 215,000 shares of common stock (par $14) to American
Natural Gas Co., parent, for $3,010,000, to be used to
repay bank loans and for construction program. Bids—
A group headed jointly by Halsey, Stuart & Co., Inc.,
Harriman Ripley & Co., Inc. and Union Securities Corp.
entered the only bid on June 15 for the securities—
100.125 for 5s.
This bid was rejected.
Reoffering had
been planned at 101.875 to yield 4.87%.
July 6 com¬
pany sought SEC authority to borrow $20,000,000 from
banks on 3x/4% notes pending permanent financing.
★ Minerals Processing Co., Franklin, N. C.

Telephone & Telegraph Co.
$35,883,300 of 20-year convertible deben¬
tures due Aug. 1, 1973, to be offered for subscription by
stockholders at rate of $100 of debentures for each 20
filed

26

equipment.

& Banking Co.

certificates of deposit for 42,000

filed

common

of

(Treas.) to handle sales.

per

Business—Battery experimentation.

Barham

Proceeds—To pur¬

share.

per

leases, and to improve and drill wells. Office—
1011 Bitting Bldg., Wichita, Kan.
Underwriter—None.
James A. Green, Sr.
(Pres.) and James A. Green, Jr.

share. Proceeds—For
working capital. Office—4016 Northwest 29th St., Miami,

Fla.

Price—$2

(no par).

chase

Sept. 29.

$9

Underwriter—-Morgan Stanley & Co., New Yoilc

RR.

Aug. 28 (letter of notification) 75,000 shares of common
stock

Trust.

Georgia

it Mesa Oil Co., Inc., Wichita, Kan.

(inc.),

• Indiana & Michigan Electric Co. (9/29)
Aug. 28 filed $15,000,000 of first mortgage bonds due
Sept. 1, 1983. Proceeds—From sale of bonds and private
sale of $7,000,000 of cumulative preferred stock, to be
used to prepay bank loans and for additions and im¬
provements to property. Underwriters—For bonds, to be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Kuhn,
Loeb & Co.; Union Securities Corp.; Harriman Ripley &

Underwriter—None.

finance

Underwriter—None.

an/d im¬

Co.

Aug. 27 (letter of notification) 575.000 shares of

To

stock/(no par) of Fitz Simons & Connell Dredge & Dock
Co. on an eight-for-ten basis. It is proposed to acquire
not less than 80% of said Fitz Simons & Connell shares.

supplied by

construction

new

Hydrocarbons Corp.,
City, Okla.
ug. 12 filed $1,010,800 of 20-year debentures and 66,424
shares of common stock (par $1) to be offered in units
of $350 principal amount of debentures and 23 shares of
stock. Price—$359 per unit ($336 for the debentures and
$1 per share for the stock). Proceeds—For general cor¬
porate purposes.
Business — Oil and gas development.
Oklahoma

—

Aug. 20 filed 45,912 shares of common stock (par $12.50)
to be offered in exchange for 57,389 shares of common

Chicago, 111.

International

General

Proceeds

Merritt-Chapman & Scott Corp., New York

Pro¬

Underwriter—

International

(par $3)
Proceeds—To re¬

common

Price—To be supplied

Consolidated

(par $50).

Proceeds

share).

per

parent.

Co., Bloomington, III. (9/15)
shares of cumulative preferred

20,000

series B

amendment.

June

of

filed

24

stcok,

($100

par

John R. Boland, New York.

Offering—Expected shortly after Labor Day.

pay

Price—At

advances from

repay

indefinite.

WHitehall 3-2181. Offering—Date

Illinois Bell

(jointly); Kuhn, Loeb & Co., Union Securities Corp. and
C. Aiiyn & Co., Inc. (jointly); Glore, Forgan & Co.;
White, Weld & Co.; Harriman Ripley & Co., Inc. Bids—
Expected to be received on Sept. 22, with public offer¬
a.

general

exploratory wells, acquisition of leases and for

June 2
stock.

Sept. 17, with public offering on Sept. 18.

31

(843)

Office

Underwriter

Probable bidders: Halsey, Stuart
& Co. Inc.; Kuhn, Loeb & Co., Lehman Brothers and
A. C. Allyn & Co., Inc. (jointly); Blyth & Co., Inc.; White,
Weld & Co., and Shields & Co. (jointly); Salomon Bros.
& Hutzler; W. C. Langley & Co., The First Boston Corp.
and Glore, Forgan & Co. (jointly); Merrill Lynch, Pierce,
Fenner & Beane and Kidder, Peabody & Co. (jointly);
Harriman Ripley & Co., Inc.; Equitable Securities Corp.
Bids—Expected to be received up to noon (EDT) on
Sept. 16.
by competitive bidding.

cents).

(Glenn), Inc.
10,000,000 shares of common stock (par 25

Price—$2

per

share.

Proceeds—For

drilling of

notes

per

and

unit. Proceeds
developing

for

Braniff Bldg., Oklahoma City, Okla.
Paine, Webber, Jackson & Curtis, New

ilr Pacific Gas & Electric Co.

(9/21)

L

Aug. 26 filed 1,946,829 shares of common stock (par $25)
to be offered for subscription by common stockholders
Sept. 15 at rate of

one new

share for each seven

shares

held; rights to expire about Oct. 6. Price—To be
supplied by amendment. Proceeds—To repay bank loans
and for new construction.
Underwriter
Name to bb
—

supplied by amendment. Probably will be Blyth & Co.,
Inc., San Francisco and New York.
'
•

Pacific

(9/15)

Telephone & Telegraph Co.

Aug. 14 filed $50,000,000 of 31-year debentures due Sept.
15, 1984. Proceeds—To reduce bank loans. Underwriters

competitive bidding. Probable
Inc.; Morgan Stanley &
Co.; White, Weld & Co.; Lehman Brothers and Union
Securities Corp. (jointly). Bids—Expected to be received
—To

be

bidders:

up

McCarthy
June 12 filed

Price—$530

demand

York.

of record

Aug. 12 filed $12,000,000 first mortgage bonds due 1983.
Proceeds—To repay $11,342,500 of short-term debt and
for new construction.
Underwriters—To be determined

—

—

stock.

of

to

determined

Halsey,

11:30

New York,

a.m.

by

Stuart & Co.

(EDT)

on

Sept.

15

at

195 Broadway,

N. Y.

Continued

on

page

32

*

32

American

before

or

jrom page 31

Continued
Pan

,

Underwriter

None. Office

—

—

Branch-

13 filed $4,920,000 of Participations in Employees
Savings Plan of this company and its subsidiaries, to¬
gether with 66,151 shares of $25 par capital stock of
Standard Oil Co. (Indiana) offered for purchase by the

Silver Dollar

Exploration & Development Co.,

1,000,000 shares of com¬
Proceeds—For
exploration. Office—West 909 Sprague Ave., Spokane,
Wash.
Underwriter
Mines Financing, Inc., Spokane,

of Pan American Petroleum.

Wash.

Phillips

plan.

Petroleum Co.
$25,000,000 of participation in

the com¬
pany's Thrift Plan and 444,444 shares of its common
4tock purchasable under the plan on the open market
<at current market prices.
It is contemplated plan will
(be placed in effect on or about Aug. 1, 1953.
June

filed

11

Planter's

of notification) 100,000 shares of 6%
preferred stock
(par $2.50) and 100,000
stock (par 50 cents) to be offered in
units of one share of each class of stock. Price
$2.50

.Aug.

common

liabilities and for work¬
ing capital. Office—220 Miracle Mile, Coral Gables, Fla.
Business—To process peat for fertilizer. Underwriter

per

unit. Proceeds—To liquidate

Co., Miami, Fla.

Frank L. Edenfield &

he Portal Drilling Corp., Tucson, Ariz.
Aug. 24 (letter of notification) 63,000 shares of common
stock and 2,000 acres of oil and gas leases. Price—$1 per
share and

Proceeds—To retire outstanding

$6 per acre.

payable and for lease rentals, material, drilling
and testing.
Address —- P. O. Box 1.651, Tucson, Ariz.

accounts

Underwriter—None.

Price—At market (estimated at around
Proceeds—To reimburse the company for
purchases of shares in the open market. Underwriter—
by employees.
$20 per share).

None.

Powdercraft

Corp., Spartanburg, S. C.

(letter of. notification) 5,000 shares of capital
Price—At par ($10 per share).
Proceeds—For

3

,s£qck.

working capital. Business—Makes machine parts. Office
746 Hayne St., Spartanburg, S. C.
Underwriter—CalTioun & Co., Spartanburg, S. C.
Providence

Park, Inc., New Orleans, La.
.July 7 (letter of notification) 33,333 shares of common
.stock (par $1).
Price—$3 per share. Proceeds—To de¬
velop and improve property for cemetery. Office—516
•Carondelet Bldg., New Orleans, La. Underwriter—Wool,4olk & Shober, New
Qrleans, La.

he Prugh Petroleum Co., Tulsa, Okla.
Aug. 28 (letter of notification) 35,000 shares of common
stock (par $5).

loans.

Price—$8.50 per share. Proceeds—To pay
Kennedy Bldg., Tulsa, Okla. Under¬

Office—907

writer—None.

Public Service Co. of New Hampshire

(9/14)

"

Aug. 19 filed $7,000,000 of first mortgage bonds, series G,
-4ue 1983.

—To

Proceeds—To repay

bank loans.

Underwriters

be

determined by competitive bidding. Probable
(bidders: Halsey, Stdart & Co. Inc.; The First Boston Corp.
Jtnd Coffin & Burr, Inc. (jointly); White, Weld & Co.;
"Kidder, Peabody & Co. and Blyth & Co. Inc. (jointly).

Bids—Tentatively expected to be received
(EDT)

on

up to noon
Sept. 14 at company's office in Boston, Mass.

Raytheon Manufacturing Co., Waltham, Mass.
Aug. 28 (letter of notification) 6,000 shares of common
.stock (par $5). Price—At market (estimated at $9.75 per
share). Proceeds—For general corporate purposes. Un¬
derwriters—Percy L. Spencer (Vice-Pres. and Mgr.)—
4,000 shares; and J. Ernest Smith (employee)—2,000
-shares.

These

shares

acquired by them under the
employees stock option plan and are being sold on be¬
are

half of the company.

19

common

.$3.25

(letter of notification) up to 7,000 shares of
(par $1) to be offered to employees. Price »
share. Proceeds—For general corporate pur¬

Underwriter—None.

fice equipment

Underwriter—None.

Products, Inc., Kensington, Conn.
July 30 (letter of notification) 2,450 shares of common
being offered to stockholders

share for each two shares held

Price—At

par

on

basis of

one

new

July 22; rights to ex¬
($25 per share). Proceeds—
on

For

working capital. Office—Fairview Place, Kensing¬
ton, Conn.
Underwriter—None.
Saint Anne's Oil Production Co.

April 23 filed 16*5,000 shares of common stock
(par $1).
Price —$5 per share.
Proceeds —To acquire stock of
.Neb-Tex Oil Co., to pay loans and for
working capital.

Office—Northwood. Iowa.

Chicago,

Underwriter—Sills, Fairman
Offering—Indefinitely post¬

111.

poned.

*

Schlafly Nolan Oil Co., Inc.
.March 25 filed 150,000 shares of common
stock (par 250).
Frice—$4 per share.
Proceeds—To purchase and sell
..easeholds, royalties and producing
properties, to pros¬
pect for oil and gas and to
develop and operate produc—Mt.
JL. H.

Vernon, 111.

Rothchild & Co., New York.
postponed.

Aug

13
i

•sept, l

shares

(letter of

Underwriter—

of

one

per

held;

new

Suite

—

share

each

for

shares

10

owned.

share to stockholders; $5.50 to public.

Church St.,

Office—50

Price—$5

Proceeds—For

New York, N. Y.

Public

Southeastern

Underwriter—

Indemnity Co.
notification) 8,500 shares

on

of

J

of

capital

of record

share for each 8 7/17
rights to expire Oct. 1, with payment due on




one new

Service

Co.

Aug.
to

10 filed

of record
18

Union

for

Aug. 31

shares

Gas

the basis of

on

held

additions to

(par $1)

stockholders
share for each

common

one new

oversubscription privilege);
Price—$18 per share.
Proceeds

an

properties.

Underwriter—None.

be offered

stock.

in units of $100 of

notes and

one

share of

Price—$110

per unit.
Proceeds—To produce two
shows, i.e., 26 films. Business—To produce
a
series of 15-minute films primarily adapted for use
by television broadcasting stations. Office—35 West 53rd
St., New York, N. Y. Underwriter — Mann and Gould,
Salem, Mass.

series

of

stock.

mon

mining operations, equipment, etc.

Underwriter—

& Co., Denver, Colo.

he United States Air Conditioning Corp. (9/24)
28 filed 570,000 shares of common stock (par 10
cents), of which 100,000 shares will be underwritten (in¬
cluding 40,000 shares to be offered to employees and dis¬
tributors and dealers at a fixed price to be supplied by
Aug.

The remaining 60,000 shares, plus any of
shares not sold, will be offered for sale on the
American Stock Exchange or over-the-counter market.
the 40,000

has also been granted to Mortimer B. Burnside
Co., Inc., to acquire an additional 220,000 shares of
stock (also to be offered for sale on the Exchange or
over-the-counter market at the then prevailing market
An ©ption

&

In addition the company proposes to offer 250,000
March 25, 1954 to holders of its common stock

price).
shares

on

purchase warrants which were sold Gn Feb. 26, 1953 in
connection with the sale of 100,000 shares of common

share. The underwriters have agreed to pur¬
a price equal to the piarket.
less 20%; and the option price to the underwriters for
the 220,000 additional shares is the market price, less
17%%. Proceeds—For working capital and general cor¬
$3.06 %

per

chase the

porate
&

100,000 shares at

Underwriters—Mortimer B.

purposes.

13

Stauffer Chemical Co., New York (9/16)
Aug. 27 filed $15,000,000 of 20-year debentures due
Sept. 15, 1973, and 325,000 shares of common stock (par
$10), of which 15,000 shares are for the account of selling
stockholders. Price—To be supplied by amendment. Pro¬
ceeds—To retire bank loans and for working capital.

Toronto, Canada

April 24 filed 660,000 shares of
of which

share in
For

common

stock

550,000 shares will be offered

States and

in

110,000 shares in Canada. Price

U.

S.

and

$1

share

per

in

(par $1)

the
—

United

$1.02

per

Cajiada. Proceeds—

general corporate purposes. Underwriter—Sidney S.

Washington Water Power Co.
7 filed 1,088,940 shares of $1.28 cumulative

May

stock (par $25) and 1,088,939 shares of
(no 'par) to be issued in connection with
the proposed merger into company of Puget Sound Pow¬
er
& Light Co. on the basis of one-half share of pre¬
common

ferred

stock

one-half

and

Sound

ceive cash at

share

of

common

for

each

Puget

share to holders who do not elect to

common

the rate

of

$27

per

re¬

share. Underwriter—

None.

West Coast Pipe Line Co., Dallas, Tex.
Nov. 20 filed $29,000,000

12-year 6% debentures due Dec.
1964, and 580,000 shares of common stock (par 50
cents) to be offered in units of one $50 debenture and
one share of stock.
Price — To be supplied by amend¬
15,

Proceeds—From sale of units and

tional shares of

(9/15)

con¬

vertible preferred

ment.

Underwriter—Morgan Stanley & Co., New York.
he Sterling Discount Corp., Atlanta, Ga.

Burnside

Co., Inc., and George F. Breen, both of New York.

Walcott, President of company, Buffalo, N. Y.

he Stamp Show, Inc. (N. Y.)
Aug. 21 (letter of notification) $82,000 of 5% notes due
Oct. 31, 1956, and 820 shares of capital stock (par $1)
to

(letter of notification) 1,700,000 shares of com¬
Price—At par (10 cents per share). Proceeds

Aug. 26
—For

Walburt Oils Ltd.,

subscription by

(with
rights to expire Oct. 7.
—For

Corp.,

ie United Mining & Leasing
Central City, Colo.

Co.

108,350 shares of common stock

be offered

Underwriter—None.

Torrington, Conn.

stock, the subscription price under these warrants being

Aug. 20 (letter of notification) 17,600 shares of common
stock (par 10 cents). Price—$7.50 per share. Proceeds—
For general corporate purposes, including investment in
the subsidiary operating the Texas properties.
Under¬
writers—Troster, Singer & Co., New York, and Bioren
& Co., Philadelphia, Pa.
Offering — Expected today
(Sept. 3).
Southern

basis of one new share for each 10
rights to expire on Sept. 4. Price—-$20 per
share. Proceeds—To erect and equip plant addition and
for loan to Canadian subsidiary. Office—70 Franklin St.,
of record Aug. 4 on

shares held;

amendment).

patent expenses, to buy photographic equipment, lenses
and tools for fabricating parts and for working capital.

common

1,125,000 addi¬

stock and private sale of $55,-

000,000 first mortgage bonds, to be used to build

a 1,030
Underwriters—White, Weld &
Corp., both of New York. Of¬
fering—Postponed indefinitely.

Aug. 26 filed 60.000 shares of

mile crude oil pipeline.

Price—$9

Co. and Union Securities

per

common stock
(par $1).
Proceeds—To pay off notes to in¬

share.

dividuals and for working capital. Underwriter—Courts
& Co., Atlanta, Ga., and New York, N. Y.

he Stifel (J. L.) & Sons, Inc., Wheeling, W. Va.
Aug. 28 (letter of notification) 37,000 shares of common
stock

(par $5).

Proceeds—To three selling stockholders.
West Sts.,

Wheeling, W. Va.

Filing

be amended.

Aug. 31 filed

198,500 shares of

to

for

be

offered

be

one

supplied
and
^

subscription

common

by

stock

(par $1)

stockholders
share for each share held. Price—To

new

by amendment.

common

Proceeds—To

repay

bank

other indebtednesss, for further exploration
&

Lunt,

Buffalo, N.

£<>., New York. W. C. Pitfield

& Co.,

Y.,

and Allen

Underwriters—To

the

Tennessee Gas Transmission Co.

Webster

Securities

Corp.

and

be

de¬

(9/15)

White,

Weld

$100)

basis.

&

Co.

offered

in

exchange

for

the

19,719
shares of 5,% cumulative preferred stock, series A (par
$25) of Textron Puerto Rico, a subsidiary, on a one-foreffective

(9/16)

To be supplied by amendment.
LeTourneau-Westinghouse bank

• Wisconsin Power &
Light Co.
Aug. 5 filed 20,000 shares of 4.80% cumulative preferred

stock

being offered for subscription by pre¬
of record Aug. 14, subject to allot¬
ment, and 329,194 shares of common stock to be offered
(par $100)

ferred

14

stockholders

subscription by
on

a

l-for-7

preferred, at
per

share.

Power

Co.

common

stockholders of record Aug.

basis; rights to expire Sept. 8. Price—For
and dividends; and for common, $19.60

par

Proceeds
and

for

—

new

To

acquire

stock

construction.

of. Interstate

Underwriters—

Smith, Barney & Co. and Robert W. Baird & Co.

be

Offer

retire

To

—

—

and, together with other funds, to re¬
Co., another subsidiary. Under¬
writer—The First Boston Corp., New York.

Incorporated, Providence, R. I.
to

Price

tire bank loan of Le Roi

for

June 2-5 filed 4,930 shares of 4% preferred stock, series A

(par

1978.

1,

loan of $30,000,000

Pro¬

'

Textron

Westinghouse Air Brake Co.

Aug. 21 filed $35,000,000 of sinking fund debentures due

Sept.

Aug. 14 filed 100,000 shares of a new class of preferred
stock (par $100).
Price—To be supplied by amendment.
Proceeds—To repay bank loans.
Underwriters—Stone

(jointly).

—None.

&

termined
by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Stone & Webster Securities
Corp. and White, Weld & Co. (jointly). Bids—To be re¬
ceived up to 11 a.m.
(EDT) on Sept. 14 at office of Cahill,
Gordon, Zachry & Reindel, 63 Wall St., New York 5, N. Y.

&

he Western States Agencies, Inc., Tucson, Ariz.
(letter of notification) 2,500 income participa¬
tion units.
Price—$100 each. Proceeds—For placing of
policies of Western States Life Insurance Companies.
Office—4133 East Speedway, Tucson, Ariz.
Underwriter

Proceeds

Tennessee Gas Transmission Co. (9/14)
Aug. 14 filed $20,000,000 of debentures due 1973.

bank loans.

New York. Offering—Postponed

Aug. 25

Ltd., of Montreal,

Canada, has agreed to purchase 50 000 shares from
underwriters for distribution in Canada.

repay

Dallas, Tex.
(par 50
cents). Price—To be supplied by amendment. Proceeds
—Together with other funds, to be used to build pipe¬
line. Underwriters — White, Weld & Co. and Union Se¬
Indefinitely.

properties and for additional working capital. Under¬

ceeds—To

West Coast Pipe Line Co.,

Nov. 20 filed 1,125,000 shares of common stock

curities Corp., both

he Strategic Materials Corp., Buffalo, N. Y.

four

Offering—Indefintely

1or=o$l0).ubeiu S .offered t0 stockholders
the basis

1953

Office

stockholders

(par $6.25) being offered to common

stock

R. L. Hughes

Airport, Washington 1, D. C. Underwriter

writers—Hamlin

Rowland

Selected Risks

Office—709-710 Na¬
Los Angeles, Calif.

•je Smith-Dieterich Corp.
Aug. 27 (letter of notification)7,849 shares of capital
stock (par $2.50) to be offered to stockholders at rate

of

of

trusts.

Grand,

and

and patents and taxes.

No. 1, National
—None.

loans

Harris

6th

Sky Ride Helicopter Corp., Washington, D. C.

at rate of

Ridley Mines Holding Co., Grafton, N. D.
120,000 shares of common stock. Price—At
($5 per share). Proceeds — For working capital.

fc

of

payment

Bldg,,

July 22 (letter of notification) 10,000 shares of common
stock (no par). Price—$2 per share. Proceeds—For of¬

June 1 filed

pire Sept. 18.

share for share basis. Price—$190 per share.

a

Oil

tional

ipar

.stock

on

Proceeds—For

may

stock

per

poses.

holders

Office—Fourth and

Remington Corp., Auburn, N. Y.
Aug.

he 609 South Grand Building Co., Los Angeles, Cal.
(letter of notification) 1,553 shares of common
stock (par $1 to be offered for subscription by stock¬

Aug. 25

None.

he Portland Gas & Coke Co.
Aug. 26 (letter of notification) not exceeding 4,256 shares
of common stock (no par) to be offered for subscription

June

30 cents per share.

—

—

(letter

6

•cumulative
.shares of

Price

Underwriter—None.

Coral Gables, Fla.

Peat Corp.f

stock.

mon

Co., Torrington, Conn.
12,000 shares of common

Torrington Manufacturing

Standard Oil owns approxi¬
mately 79% of the issued and outstanding common stock
such

under

Los Angeles,

'•

■

,

Aug. 6 (letter of notification)

Spokane, Wash. (9/4)
Aug. 20 (letter of notification)

Calif. Under¬

selling stockholders. Office—Los Angeles,
writer—Sutro & Co., San Francisco and
Calif.

ville, N. J.

& Transport Co.

Petroleum

Proceeds—For

Price—$35 per share.

5.

Nov.

working capital.

Aug.

trustee

September 3, 1953

The Commercial and Financial Chronicle.. .Thursday,

(844)

to

expire

Sept.

30,

1953.

Statement

July 31. ^

•
Thompson (H. I.) Fiber Glass Co. (9/15)
Aug. 17 filed 50,000 shares of capital stock (par $1).
Price—To be supplied by. amendment.
Proceeds—To

Worcester Gas Light Co.

(9/29)

sinking fund
Proceeds—To retire

Aug. 25 filed $3,000,000 of first mortgage
bonds, series B, due

Sept.51, 1973.

bank loans and for new construction.

be

determined

by

competitive

Underwriters—To

bidding.

Probable

bid¬

ders:

Halsey, Stuart & Co. Inc.; The First Boston Corp.;
Blyth & Co., Inc.; Kidder, Peabody & Co. Bids—Tenta¬
tively expected to be received up to 11:30 a.m. (EST)

on

Sept. 29 at company's office, 10 Temple St., Cambridge}
Mass.

•

-

f i.

Volume 178

Number 5252

...

The Commercial and Financial Chronicle

(845)

Columbia Gas

Prospective Offerings

was announced company plans to issue and
sell later this year
$40,000,000 of new debentures.
Pro¬
ceeds—To repay bank loans and for construction

American Fidelity & Casualty Co.
(10/9)
Aug. 26 it was stated registration is planned for around
Sept. 15 of 150,000 shares of convertible preferred stock

(par $5) to be offered for subscription by
holders

on

bidding. Probable bidders:
Morgan Stanley & Co.

stock¬

Detroit

basis, about Oct. 9; rights
Certain stockholders have waived their

to expire Oct. 24.

rights to purchase the
later.

common

pro¬

Proceeds

shares.

new

For

—

March 24

Aug.
that
in

19

directors

voted

they authorize

to

recommend

to

stockholders

exceed $625,000,000 at a meeting to
Price—Expected at par. Proceeds—
For advances to subsidiary and associated
companies.
Underwriter—None.
Offering—To be made to stock¬

American Water Works Co., Inc.

reported company may do

was

preferred

some

stock

financing following private placement of an issue
Underwriter
Probably The First Boston
Corp., and W. C. Langley & Co., both of New York.
Offering—Not imminent.

of

bonds.

interest rate not exceeding

an

—

it Arkansas-Missouri Power Co.
Aug. 27 it was announced company has applied to Arkan¬
sas P. S. Commission for
authority to issue and sell $2,€00,000 of first mortgage bonds, series E. This may be
done privately. The proceeds will be used to retire bank
loans and for construction program.

Arkansas Power & Light Co.
March 20 it was announced that
company may consider

refunding the outstanding 47,609 shares of $7 preferred
stock

(no par) and 45,891 shares of $6 preferred stock
(no par), both callable at $110 per share. Underwriters—

Eastern

Meeting—Stockholders

April 14
Underwriter—None.

debentures.

new

on

Industries, Inc.

Aug. 20 stockholders

to

were

vote

to create

issue of

an

200,000 shares of preferred stock (par $10), a portion of
will be offered publicly. Underwriters —
Blair,
Rollins & Co., Inc. and Cohu &
Co., both of New York.

plans sale of $7,000,-

company

000

collateral trust mortgage bonds due 1973.
Under¬
writers—To be determined by
competitive bidding. Prob¬
able bidders:
Halsey, Stuart & Co. Inc.; Estabrook &
Co. and Stone & Webster Securities
Corp. (jointly); The
First Boston Corp.,
White, Weld & Co. and Kidder, Pea¬

body & Co. (jointly); Glore, Forgan & Co. and Harriman
Ripley & Co. Inc. (jointly).
First Railroad & Banking Co. of
Georgia
May 4 it was announced that this new company
offer stockholders of Georgia Railroad &

will
Banking Co.
exchange for each share held, one share of the new
company's stock, the right to subscribe within 30 days
for 13 additional shares at
$4.10 per share and a $250
in

collateral trust 5% bond due
May
become effective upon acceptance

1, 1990; the offer to
by 95% of the out¬

Ah additional 210,000 of the new shares
would be purchased by the
underwriters, plus any of
the unsubscribed shares. Proceeds—To retire
$2,190,000

&

indicated

that

the

company early next year expects to raise $14,000,000 to
$16,000,000 through the sale of bonds and both preferred
and

for

stock.

common

Atlantic

March
issue

and

Refining Co.

27

it

later

ceeds—To

struction

be

that

proposed

debt

$60,000,000.
The
timing of the financing are still to be

from

used

to

5 tp

increase the

$75,000,000 to $150,000,000.
Pro¬
help pay for a $109,000,000 con¬

for

program
may

debenture

around

Stockholders voted May

be

& Co.

will

year

and

determined.
authorized

announced

was

this

exact nature

ney

Proceeds—To repay bank loan

construction.

new

1953.

Underwriters—Smith, Bar¬

head group.

'

'

Underwriters—Johnson, Lane, Spacf
Sons.

.

holders of the parent company on a pro rata basis under

proposed divestment plan.
Bates

sell

it

reported company planned to offer and
additional'shares of common stock.
Pro¬

was

750,000

ceeds—To

purchase

writers—Probably

properties

Coffin

and The First Boston

—

Co.
•

General

in

the

South.

company's plan of liquidation and dissolution. By reason
of its ownership of NEPSCO
stocks, General Electric will
entitled

be

shares

Burr, Inc., Boston, Mass.,
Corp., New York. Plan Opposed-

receive

to

stock

common

of

(3.89%)

Co.

of New

the

common

97,030.95

Central

of the

stock

of

Central

such

of

otherwise dis¬

period

of

one

year

is

expected

under

6%

present

an

issue of 3,000 shares

carry a

cumulative divi¬

annually. The management
plans, these shares will be

the growth of the corporation

warrants.

Greenwich Gas Co.

bonds

and

latter

first

May

7

the

Connecticut

method is not

&

Co.,

now

Inc.,

Co.

known. Underwriters—Harriman
Rip¬

and

Hemphill,

Noyes

&

Co.,

both

of

New York.

issue

to

company

and

U.

Commission

authorized

$483,000
to

par

sell

$200,000 of first mortgage
value of common stock (the

stockholders).

Power Co.

Jan.

2

year

of $10,000,000

it

was

reported

plans

stock

sale

later

this

(in addition to

$10,000,000 of 1st & gen. mtge. bonds sold March 10, 1953),
after distribution by New England Public
Service Co. of
its holdings of Central Maine Power Co. common
stock.
Probable bidders: Blyth & Co., Inc. and
Kidder, Peabody
& Co. (jointly); Coffin &
Burr,

Inc.; A. C. Allyn & Co.,

Inc. and Bear, Stearns & Co.
& Co., Inc.
Central-Penn

July 24 it

was

National

(jointly); Harriman Ripley

Hartford

July 29 it
mon

Electric

was

Phila.

(9/25)

reported Bank plans to issue and sell to

its stockholders of record
shares

l-for-3

of

capital

Sept. 22 an additional 124,125
(par $10) to be offered on a
to expire Oct. 13. Price—$30 per

stock

basis; rights

share. Proceeds—To increase
capital and
writer—Stroud & Co., Inc.,

surplus. Under¬
Philadelphia, Pa.

stock

on

a

Maier

April

Glore, Forgan & Co. (jointly);
Harriman Ripley & Co., Inc. and

Blyth

&

Co.,

Inc.,
Smith, Barney & Co,

(jointly); Salomon Bros. & Hutzler.

For

and

for

on

new

stock

common

Brewing Co., Los Angeles, Calif.

18

it

was

announced

company will offer 400,000
common stock to its
stockholders at
shares for each share held.
Price—$5
Prcoeeds
To help finance a new

additional shares of
rate

of

four

share.

per

plant.

new

—

bottling

Underwriter—None.

Menabi Exploration
Co.,

Inc., Houston, Tex.

April 8 it was announced
company plans to issue and
$1,000,000 of convertible debentures. Proceeds—To
finance development of oil
properties in Ecuador. Under¬
sell

writer—Kidder, Peabody

& Co., New York.

Mill Creek Chemical Co.

July 24 it
nancing in

was

reported that company may do some fi¬
connection with its plan to build an
anhydrous
plant in the Salt Lake City area to cost about

ammonia

$9,000,000.

Underwriter

Glore, Forgan &

—

Co., New

Minnesota

Aug. 3 it

Power &

was

Light Co.

announced

stockholders

increasing the authorized

common

will

vote

stock

Oct.

(no

from

This

will

place

promptly

the

with

new

Immediate

necessary.

in

company

any

position

a

financing

offer

that

to

proceed

may

become

not

contemplated.
Under¬
writers—May be determined by competitive
bidding.
Probable bidders:
Kidder, Peabody & Co.; Blyth & Co.,
Inc.

Mississippi Power

July

20,

L.

P.

Co.

Sweatt,
1983.

(10/6)

President, announced company
$4,000,000 of 30-year first mort¬

plans to issue and sell
gage bonds due

Proceeds

—

For construction pro¬

Underwriters—To be determined
by competitive
bidding. Probable bidders: Halsey, Stuart & Co.
Inc.;
Union Securities
Corp.; Equitable Securities Corp. and
Drexel & Co.
(jointly); Merrill Lynch, Pierce, Fenner &
gram.

Beane; Kidder, Peabody & Co.; The First Boston,
Corp.
Bids—Expected to be received up to 11 a.m.
(EST) on
Oct. 6 at Suite
2000, 20 Pine Street, New York, N. Y.
Registration—Planned for Sept. 4.

Mass.

Light Co.
company plans to offer to its
105,500 additional shares of com¬

l-for-8 basis before Dec.

31, 1953, prob¬
Proceeds—For construction

(Mich.)
(9/24)
plans to offer 313,200
(par $10) to its com¬
stockholders of record Sept. 24 on the
basis of one

Aug. 27 it

was

announced company

additional shares of
mon
new

stock

common

share for each five shares

held; rights to expire on
Expected to be some¬
prevailing on Sept. 24, the

Oct.'15.

Price—To be named later.
what below the market
price

day the stockholders
financing. Proceeds

are
—

to

To

vote

on

approving the

increase capital and

New

England Gas

new

surplus.

Underwriter—May be Morgan Stanley & Co., New

July 24

York-

& Electric Association

company sought SEC permission to issue and
sell
common stock
(par $8) to be offered

it Hawaii

194,916 shares of

Bids will be received

for

(Territory of) (9/29)
on Sept. 26 for the sale of
$5,500,000
public improvement bonds to mature serially from Sept.
15, 1956 to 1973, inclusive.
Idaho

Power

Co.

Aug. 6, officials of Blyth & Co., Inc. and Bankers Trust
Co., New York, testified before the Federal Power Com¬
that

this

company plans to raise $184,550,000
to finance construction of three hydro-electric projects
on1 Snake River, Idaho. If approved, the financing will
consist of $105,000,000 of bonds
through 1962; $27,400,000
of preferred stock; and $52,150,000 of common stock.
Throughout the financing period, the company would
borrow and repay

$29,000,000 of short-term loans. Final
financing details would depend on market conditions.

applied to the Federal Power Com¬
mission for authority to issue and sell $10,000,000 of first
mortgage bonds, due 1983, and 50,000 shares of serial
preferred stock (par $100). Proceeds—To reduce bank
company

loans and for construction program. Underwriters—(1)
For bonds, to be determined by competitive bidding.

Probable bidders:
&

1

par)

2,000,000 shares (858,047 shares
outstanding) to 3,000,000 shares and on approving a 2-for-l stock
split

(9/30-10/1)

Aug. 26 the

may issue and sell
B0,000 shares of new preferred stock. Underwriters—To
be determined by competitive bidding. Probable bidders:
Btone & Webster Securities
Corp.; Lehman Brothers




bank

it Kansas Gas & Electric Co.

Central Power & Light Co.
March 2 it was reported company

and

retire

reported

stockholders

common

mission

Bank of

bank loans

Underwriters—(1)

program.

company

common

Proceeds—To

loans. Underwriter—F. L. Putman & Co., Boston,

ably without underwriting.
Central Maine

$100, offered publicly

par

repay

it National Bank of Detroit
P.

—

it Carrier Corp.
Aug. 25 it was reported company is considering means
for financing expansion of its
business, but amount and

•

Service

Corp., Washington, D. C.

preferred stock (par $100) to

& Co. Inc. and The First California

ley

or

early registration

Government Employees

publicly $2,000,000 of convertible debentures. Pro¬
For development of Stanwell Oil & Gas
Ltd.,
newly acquired subsidiary. Underwriters—Blair, Rollins
ceeds

a

March 18 stockholders authorized

plans to issue and

sell

to sell

Public

Curtis and Stone & Webster Securities Corp.

as

company

Service

of 50,000 shares of cumulative preferred stock (par
$50).
Underwriters — Probable Paine,
Webber, Jackson &

issued

announced

was

the

45,690.45

of Public

Vermont

within

reported

was

that,

Holdings Corp.

Co.;

of

Telephone Co. of Kentucky

it

dend rate not to exceed

it

stock,

Proceeds—To
construction.

•

General

states

24

stock

proposes

securities

financing.
Blair

(3.89%)

Power

Hampshire; and 20,730.20 shares (2.72%) of

General Electric
of

shares

Maine

common

Consolidated Textile Co., Inc., is opposing the
proposed

June

company this Fall plans

sell

in the neighborhood of
600,000 shares
stock to be followed in the latter
part of
the year by an issue of about
$25,000,000 of first mort¬
gage bonds
(this is in addition to 100,000 shares of
series C preferred

on

from the date of such acquisition
(subject to its right to
apply for additional time to dispose of such securities).

Under¬

&

Electric Co.

Aug. 24 company received SEC authority to acquire its
distributive portion of portfolio stocks being distributed
by New England Public Service Co. pursuant to that

April 27

Manufacturing Co.

25

Controls Co.

July 27 it was reported company may do some financ¬
ing this Fall. Underwriter
Probably Dean Witter &

pose

Aug. 11 it was reported company's common stock (held
by Southern Union Gas Co.) may be offered to stock¬

June

and

new common

Milwaukee Gas Light Co.
July 7 company sought SEC approval of a bank loan
of $9,000,000 the mature
Aug. 1, 1954. These borrowings,
plus retained earnings, are designed to finance
expansion
pending formulation of permanent
financing prior to
maturity of notes. Probable bidders for bonds:
Halsey,
Stuart & Co.
Inc.; Glore, Forgan & Co. and Lehman
Brothers
(jointly); Smith, Barney & Co. and Blyth &
Co., Inc. (jointly); Kuhn, Loeb &
Co.;^Kidder, Peabody
& Co.; Harriman
Ripley & Co. Inc.

Corp.

Aztec Oil & Gas Co.

a

issue

of

York.

General

President,

Securities

Corp.; White, Weld & Co. and Shields & Co.
(jointly);
Blyth & Co., Inc.
Offering—Expected in October.

insurance firm.

Co. and Joseph Walker &

City Electric Co.
England,

Kidder,
Fenner &

Georgia Railroad & Banking Co. debentures held by

an

\

L.

Lehman

probably Blyth & Co., Inc. and The First Boston
Corp.
(jointly).
(2) For bonds to be determined by com¬
petitive bidding. Probable bidders:
Halsey, Stuart & Co.
Ipe.; Blyth & Co., Inc. and The First Boston
Corp.(jointly); W. C. Langley & Co.; Smith,
Barney & Co.

Eastern Utilities Associates
Feb. 20 it was announced

of

B.

were:

May 7).

(jointly); W. C. Langley & Co., and The First Boston
Corp. (jointly); Kidder, Peabody & Co., and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Union Securi¬
ties Corp.

17,

issue

Lynch, Pierce,
Brothers; Union

which

standing stock.

Corp.

Atlantic

(jointly);

stock

Merrill

to

To be determined by competitive
bidding. Probable bid¬
ders. Blyth & Co., Inc, and Equitable Securities

Aug.

preferred
and

Registration—Expected in September.

holders.

July 29 it

company plans to issue an
convertible debentures due 1963

last

Co.

&

Long Island Lighting Co.
April 21 it was announced that

costs.

authorized the

issue of convertible debentures

Oct. 14.

on

for

Peabody
Beane

construction

amount not to

an

be held

Bidders

announced

was

(jointly); Kidder, Peabody & Co. and Merrill
Lynch,
Pierce, Fenner & Beane (jointly); Glore, Forgan & Co..
and Goldman, Sachs & Co.
(jointly); Union Securities
Corp. and Stone & Webster Securities
Corp. (jointly);
Harriman Ripley & Co., Inc.
(2) For preferred stock, ex¬
emption from competitive bidding requirements
sought.

offered for subscription by
stockholders. Proceeds—To retire bank loans and to meet

& Telegraph Co.

a new

it

Halsey, Stuart & Co. Inc.;

Co.

(about $55,000,000 to carry
4%) which may first be

Underwriter—

Geyer & Co., New York.
American Telephone

Edison

unspecified amount of

Price—To be named

working capital.

Underwriters—To be determined by competitive

gram.

share-for-share

a

System, Inc.

April 6 it

33

Halsey, Stuart & Co. Inc.; Kuhn, Loeb

Co.; Blyth & Co., Inc. and The First Boston Corp.

subscription by

one

share

new

standby).

for

common

each

10

stockholders, at the rate of
shares held

(with

a

16-day

An oversubscription
privilege is also provided.
Proceeds—To retire bank

Price—To be announced later.
loans.
Dealer-Manager—The

First

Boston

York.

Corp.,

New

New York State Electric &
Gas Corp.
was reported that
company may, later In 1953,
and sell
$20,000,000 first mortgage bonds. Under¬
writers
To be determined

Feb. 27 it
issue

—

by competitive bidding.
Halsey, Stuart & Co. Inc.; The First
Corp. and Glore, Forgan & Co.
(jointly); Blyth
& Co., Inc. and
Smith, Barney & Co. (jointly); Hemphill.
Noyes & Co. and Drexel & Co.
(jointly); Kidder, Pea¬
Probable

bidders:

Boston

body

&

Lehman
•

Co.

and

Salomon

Bros. & Hutzler
(jointly);
Brothers; Harriman Ripley & Co., Inc.

Northern Natural Gas Co.

Aug.

24 stockholders were to vote on
authorizing aji
issue of 750,000 shares of
preferred stock, of which it is
planned to issue and sell 250,000 shares
Fall.

Proceeds—For

expansion

program.

(par $100) this
Underwriter-

Continued

on

page

34

34

The Commercial and Financial Chronicle

(846)

Blyth

recent

stock

common

of first mortgage bonds due 1983. Under¬
May be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb
& Co. and Lehman Brothers (jointly); Morgan Stanley

writers

Gas Co.

Northwest Natural
March

&

$30,000,000

fi¬

nancing.

it

23

this

that

reported

was

plans to

company

If

cate.

for Sept.

(jointly);

The

First

late

10

it

announced

was

SEC

plans to register

company

Office—5003 Central Avenue, N. E., Albu¬

nationally.

17

N. M.

querque.

to issue a maximum

company

Canada.

1954.

1

it

was

capital stock

l-for-7 basis.

a

on

Proceeds—To

share.

American

None.

1,004,603

stockholders

its

repay

Price—At

bank

Telephone

&

shares

Telegraph

Co?,

parent,

Pacific's

of

Pennsylvania
Aug.

it

11

was

Water & Power Co.
reported company is considering

Proceeds—For construction program.

bondst

be The First Boston Corp.,
Offering—Expected to be made privately.
writer—May

Permian

for

filed

estimated cost of

an

an

Under¬

Aug.

a

bonds

sale

of

was

be done

may

owned by North¬

into

ible

Service, Inc.

(Texas)

of 6%

1963

fall.

Co.,

Feb.

in

of

maturity, plus the procurement of

an

was

done

bonds.

Previous

101.53

Our

the

out

Bell

amount

reoffered

of 24-year

For

Co.

that

debentures for

bids.
Back

on

May 5 the management

a

top bid of 101.3099 for

the issue to carry a

rate.

the

This

made

net cost of 3.79%

issue

Yesterday,
company

an

indicated

to the company.

on

received

reoffering,
a




top

company

New York Life Insurance

Lock

Corp.

to

construct

slowly much
with

other

after about

which

as

with

an

act

making
cost

pension funds

bid

the

of

to

get

away

335

miles

of

Reason

for

Lethargy

effect

But

large

trusts

on

the

chandise

June

out,

this

mer¬

30,

into the

contrary,
trouble

it

committees
such

which

matters.

heavily
at

the

into

is

pointed

a

things

exceeding one-half oi

—

York. 4
*■.

■

Westpan Hydrocarbon Co.
July,! SEC granted Sinclair Oil Corp. an extension of
six mpnths from June 21, 1953, in which to dispose of its:
holdings of common stock in Westpan and the South-j;
westdfti"Development Co. Sinclair owns 384,860 shares
(52.85%) of the stock of each of the other two companies.
Underwriter—May be Union Securities Corp., New York

must

act

Vacations have

'

the

higher

echelons

This observation is based
in

the

in

with

last

direct

ex¬

fortnight. Sponsors of

out

task

From

they

befeacing

at

rr

rash

Sept.

14

marketing
of

some

be
or

bidding for

$289,000
plus

in

fiv<

Largest of the
in

the

list

ceptance

is

aew

Gen|ral

Corp.'s

also

But

is the

15.

Motors Ac¬

now

of

tenta¬

tq^reach market

absenteeism1 via the negotiated

major factor. With the im¬

se¬

debt issues

pl50,000,000

expected

moment

total

takings of substar fial proportions.

eight-year debentures

the

a

debt

jflOute, on Sept.
1

x.: 3

of

which
same

Pacific

is

Tel«

31-year
bids

debentures

will

be

opened

0

tfe

day.

Westinghouse
$35,000,000
of

Air

Co.

Brake

25-year

sinkin

fund debentures is slated for mai

keting also

on

Sept. 15 by negotia

tion.

in

^ equity under¬

tively scheduled

for

what

'jjd*17 inclusive,

fact, made their positions known.

here

000

of

un¬

engaged either

Large Issues

size

phone & Telegraph Co.'s $50,000

formi¬

a

ftf-month

in

Next

of

will

Other

way

in trie interval,

was

interest

the

Loonjfs Ahead
|me revision

immediately evident though it

was

of

expected to pick up.

JrtEw emissions
slated for market fag and bids.

placements

undertakings know the insti¬

h<>)iday

derwriters will

a

seT

Underwriter—Tellier & Co., New York.

current plans

curities,
on

Sept. 2 it was reported company plans to issue and

to

are

si

(Canada)

Inc.

2,000,000 shares of common stock (par 1 cent). Price—,,
15 cents per share.
Proceeds—For working capital, etc!

Unless there is

of

cut

if Yates Uranium Co.,

tutions want them. They have, in

quicken.

trustees are

pected before end of 1953, subject to market conditions.;
Underwriters
May be The First Boston Corp., New.j

not

would

Companies

President, stated

Caldwell,

J.

$8,000,000 bank loan. A total of 978,527 no par com¬
shares are presently outstanding.
Offering — Ex-4

an

Rush

be

quorum

moment, it is noted.

perience

such

to

appears

their inability to get

mar¬

development

recently laggard issues

that

H.

with sufficient funds to retire not

cost

dable

being offered.

the

the

$25,-;

studying plan to issue and sell additional common stock
which would provide the company's electric subsidiary

pipeline

with

and

indicated that sub¬

of

companies);

field to western Washington and

Western Massachusetts

Under¬

pending

Bankers who follow the market
situation closely are satisfied that

case

scription books would close early.
The

Canadian

Oregon. Underwriter—Eastman, Dillon & Co., New York.;

Underwriter—None.

On

emissions.

came

was

Co.; Northwestern Mutual Life

several

mon

requirements

hour, several banks

for

and

Canadian Peace River

New

bankers

had been thei

recent

Co.

of 3% to 4% short-term notes to the National
City Bank of New York; and about 3,500,000 shares of
common
stock for about $30,000,000. Proceeds—To fi¬
nance construction
of a natural gas pipe line from the

was

1

due

was

£

r

■

interest

reserve

3%% interest

for

it

moment, it appeared that

a

ket and it

rejected

17

rate,

net

Hutzlerf

of 4% first mortgage bonds to insurance com¬
panies (including Prudential Insurance Co. of America

Southern Pacific Co. (9/10)
Bids will be received by the
company up to noon (EDT)
on Sept. 10 for the
purchase from it of $5,250,000 equip¬
ment trust certificates, series
KK, to be dated Sent. 1
19o3 and to mature in 15
equal annual instalments

of member banks.

Telephone

it

indicated

easing

a

when

issue

3.75%

a

&

000,000

Offering—Expected

financing

the

Bros.

April L„it was stated company may issue and sell $59,

Proceeds—To acquire

Arrow

Alabama, Georgia and Florida at an estimated
$8,141,518. Rehearing by FPC to be held Aug. 10.

Federal Reserve Board's action in

slight savings on its
cost of borrowing $30,000,000 this
week

of

the prevailing indisposition of in¬
The secondary market, in the
stitutions to come into the market
interval, has taken on a slightly for new issues
does not reflect any
better tone, particularly since the
real dissatisfaction with

this

Southern

stock

up

for

Salomon

Inc.;

1

was
announced a FPC
Presiding Examiner
decision, subject to Commission review, author¬

3.65%.

Reporter's
Report
eked

of

early in October.

privately through Blyth & Co., Inc.

specifying

Co.

&

Stuart

West Coast Transmission Co.

England Telephone Co.
reported company plans an offering of
additional shares of common stock to common
stockholders
on
a
l-for-8
basis.

by the

or

bond

dated Sept. 1, 1953, and to mature annually
1954 to 1968, inclusive. Probable bidders-'

Kidder, Peabody & Co., Dick & Merle-Smith and Wood
Struth^rs & Co. (jointly).
I

500,000

additional $1,500,-

expansion of the credit arrangement
mortgage

Sept. 1,

Halsey,

Georgia Natural Gas Co.

Southern

000 needed for the rest of the year, will be accomplished

first

from

it

the

Aug.

$8,700,000 and $9,200,000, is being accomplished by means
of bank loans under a credit arrangement which will
mature in November, 1953.
Repayment of the loans at

of

19
a

izing

if Portland General Electric Co.
July 22, Thomas W. Delzell, Chairman, and James H.
Polhemus, President, announced that financing of its
1953 construction program, which will range between

sale

series E, to be

who will also have the privilege to purchase
debentures not subscribed for by other stockholders.

filed

nancing.

either by

shares of capital stock).

South

Dallas,

(EDT) on Sept. 3 for the pur-)
equipment trust certificates!

000,000

(convert¬

stock).

common

&

}

of $2,820,000

it

from

chase

Insurance

any

Underwriters — Probably
Texas. Offering—Expected this
Stockholders will vote Sept. 19 on approving fi¬

Garrett

about!

(9/3)

Co.

RR.

York 5, N. Y., up to noon

company,

debentures due

to

Bids will be received by the company at 44 Wail St., New;

(1)

writers—For $115,000 of debentures: Edward C.
Sterling,
Meade Johnson and I. D.
Robbins, all directors of the

reported company is considering issue and

$300,000

deter¬

Segal Lock & Hardware Co., Inc.
Aug. 24 it was announced stockholders will vote Sept.
14 on authorizing an issue of
$975,000 of convertible de¬
bentures (each $100 principal amount to be convertible

Natural Gas Co.

Petroleum

be

bidders:

of

into 66%

Aug. 4 it

may

it

11

end

remaining 50%

ern

stock

Probable

would amount

„

Wabash

the

the stock of this company, 51%

now

preferred

bidding.

Under¬

program.

price, the sale

market

New York.

(which at July 15

Finance Co.

privately. Underwriters — Stone & Webster Securities
Corp. and Glore, Forgan & Co., both of New York. Of
is

and

competitive

current

$14,000,000. Proceeds—For construction program. Offer4;
ing-—Probably in November or December of this year:
Underwriter—May be Stone & Webster Securities Corp.;,

financing

163-mile pipeline system at

$40,269,000/Financing

loans

additional

was reported company may do some public
(probably in the form of debentures) before
this year.
Underwriter—May be The First
Boston Corp., New York.

York.

Co., Chicago, III.
amended application with FPC

authority to construct

by

Seaboard

Basin Pipeline

Feb. 4 company

retire bank

and for expansion

Virginia Electric & Power Co.
I
it was announced company plans to sell 558,946!
shares of common stock later this year.
At

•

Corp.; Lehman Bro¬
thers; W. C. Langley & Co.; Esta'brook & Co. and Kid¬
der, Peabody & Co. (jointly). Common stock will prob¬
ably be offered for subscription by stockholders. Offer¬
ing—Expected during the Fall of 1953.

issu¬

New

$6,867,000)

Corp.,

Sept. 3

ferred—Stone & Webster Securities

and sale of from $9,000,000 to $10,000,000 additional

ance

transport aircraft.

cargo

Halsey, Stuart & Co. Inc.; First Boston Corp.
and Salomon Bros. & Hutzler (jointly); Stone & Webster
Securities Corp.; Lehman Brothers, Bear, Stearns & Co.
and A. C. Allyn & Co., Inc. (jointly); Merrill
Lynch,
Pierce, Fenner & Beane; Estabrook & Co. (2) For pre¬

outstanding stock. Offering—
Not expected until the early part of 1954.
(See also
proposed bond financing under "Securities Now In Reg¬
istration" in a preceding column of this issue.)
91.25%

owns

ton

For bonds:

(100 per

par

Equitable Securities Corp. (jointly); The First Bos-!
Harriman Ripley & Co. Inc. and Goldman
Sachs & Co. (jointly). Offering—Expected later in 1953«

and

Inc., New York

secure

Underwriters—To be determined;

by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Morgan Stanley & Co., White, Weld & Co

announced company plans future public

Proceeds—To

mined

of

Underwriter—

loans.

was

writers—For

issue and

to

additional

Airlines,

it

totaled

Pacific Telephone &
to

Philadel¬

Light & Power Co.
Nov. 12, 1952 F. L. Lovett, President, announced com¬
pany expects to raise about $24,000,000 in the next two
years through sale of bonds, and preferred and common
stock, viz: $5,500,000 of first mortgage bopds and $5,500,000 preferred stock in 1953 and $6,000,000 bonds, $6,000,000 preferred
stock, and $1,000,000 common stock in

pipe line bonds and preferred and common
Underwriters—White, Weld & Co. and Kidder,

July 2

Webster,

United Gas Corp.

to 11 a.m.(EDT)

company up

Reading Terminal,

Rockland

Peabody & Co., both of New York, and Dominion Secu¬

sell

11

financing to

mortgage

Telegraph Co.
announced company plans

by the

Room 423,

at

mature

Riddle

project is 8186,000,000, including $2,000,000 for
working capital. Financing is expected to consist of first

Ltd., Toronto,

Stone &

construction program.'

15

and

Aug.

the

Corp.

Pipe Line Corp.

—Probably White, Weld & Co. and
Securities Corp., both of New York.

$114,000 semi-annually from April 1, 1954,
including Oct. 1, 1968. Probable bidders: Halsey,
Stuart & Co. Inc.; Salomon Bros. & Hutzler.

to

received FPC permission to file a third
application proposing to construct a 1,460mile transmission line extending from the San Juan
Basin in New Mexico and Colorado to market areas in
the Pacific Northwest.
Estimated overall capital cost

•

Transcontinental Gas

May 4 it was reported company may issue some con¬
vertible preferred stock before the Fall.
Underwriters;

and

Underwriters—May

substitute

rities

basis.

stock from 3,000,000

common

New York,]
1954.

phia 7, Pa., for the purchase from it of $3,420,000 equip¬
certificates, series V, to be dated Oct. 1, 1953,

Pacific Northwest Pipeline Corp.

stocks.

l-for-5

a

Read

ment trust

Jan 29 company

of

on

Co.,

&

Offering—Expected in January or February

May 1 it was announced company (in addition to above
mentioned proposed stock offering) plans to issue and
sell about $30,000,000 of debentures. Proceeds—For 1953

Sept.

on

Glore, Forgan & Co. and Kalman & Co.

be

future)

Underwriter—Dillon,

basis).

(9/15)

Bids will be received

to banks, the

proceeds to provide funds to temporarily finance the
company's 1953 and 1954 construction programs prior to
arranging for long-term financing.

$12,000,000 bonds; from $2,000,000 to $3,^00,000 of pre-)
ferred stock; and the remainder in common stock, the;
latter to be offered first to stockholders on a l-for-13,

Offering—Not imminent.

shares.

if Reading Co.

FPC authorized

25

$4,000,000 unsecured promissory notes

of

the

increasing authorized

on

to 4,000,000

Otter Tail Power Co.

June

in

was

common

435,388 additional shares of

time

Service Co.

Public

announced company plans to issue and,
$20,000,000 of securities (to consist of around

it

common

was

(some

6

sell about

Underwriters—Hornblower & Weeks and Paine, Webber,
Jackson & Curtis.
Meeting—Stockholders to vote Sept.

will be offered

of stock, which

issue

an

Westpan Hydrocarbon Co. below.

Aug.

30.

stock

N. M.

Ormond Corp., Albuquerque,
with the

Development Co.

Southwestern

Morgan, Stanley & Co.,
& (jo. may head syndi¬
in October.
Registration—

stockholders about

March

5

See

Boston

sale,

Manufacturing Co.
reported company may offer to

Raytheon
July 27 it

Stanley & Co., New York.

Co.

Southwestern

and Glore, Forgan

Bids—Expected

Planned

000,000 of 5% debentures and 1,400,000 shares of common
stock at $10 per share publicly in the United States and

Co.

&

negotiated

by

Drexel & Co.

000,000 of 41/2% first mortgage pipeline bonds to insur¬
ance companies and oth^r institutional investors and $9,-

Canada. Underwriter—Morgan

Drexel

and

Corp.

by the issuance and sale of $66,-

the Pacific Northwest

Inc.; Salomon Bros. & Hutzler; Kidder Peabody

—

Co.

&

1,300-miles pipeline from Canada to

finance its proposed

Co.

&

was

Probable bidders: Halsey, Stuart

Sept. 1, 1968, inclusive.

reported company plans to issue and sell

Aug. 20 it

handled

Inc.,

Co.,

&

(10/28)

Electric & Gas Co.

Public Service

33

Continued, from page

19531

.Thursday, September 3,

..

On

the

14th

Transmission
ket

with

year

will

Tennessee
in

be

$20,000,000

of

debentures and

on

the

Ga
mar

new

the

20

sam<

day Public Service of New Ham
shire will open bids for $7,000,00
of 30-year bonds.
On Sept. 16, bankers will offerf;
publicly $15,000,000 of 20-year de
bentures of the Stauffer

Co.

will

of

and Louisiana

receive

new

bids

Chemicp

Power &

for

Ligh

$12,000,0

30-year mortgage bonds.

Volume 178

Number 5252

The Commercial and Financial Chronicle

...

Joins

Halsey, Stuart Group
Offer Telephone Bonds
ell

Telephone

&

394 %•

the

group

issue

at

Calif.

Lotis

—

T.

mond

J.

Co.

Jon^s,

of

Cosgrove

F.

Conn.

Liptak

is

Ray¬

—

now

Los

Miller,

81

competitive

with

Merrit

AND LIGHTING

Co.,

COMPANY, INC.

DIVIDEND

asso¬

&

DIVIDEND

clared

NO.

PACIFIC GAS AND ELECTRIC CO.

225

The Board of Directors has de¬
dividend of 25c per share on the

a

•

Avenue,
Angeles

members

Stock

Ex¬

With Income Funds, Inc.
to

The

Financial

value of $12.50 per share, pay¬
able October 1, 1953, to holders of
record

f

on

at the close of business September 4.

NEW

HAVEN,

Stone

R.

Funds,

Smith, Ramsay Adds

is

Conn.

—

with

now

Common Stock Dividend No. 151

1953.

The Board of Directors

J. H. MICHAELI,

Chronicle)
August 25, 1953

change.

bid

a

(Special

The

to

Financial

Income

Inc., 152 Temple Street.

third

MIAMI
61

COPPER

COMPANY

Broadway, New York

N.

6,

Y.

July 8,

DIVIDEND

BRIDGEPORT,

"ill

be

applied

oward the

Tom

its

Ameri-

company,

&

Telegraph

00,000

staff

of

Smith,

Ramsey

&

Co.;

LONG ISLAND LIGHTING COMPANY

Co.

DIVIDEND

Notice of

ice

of

sed

for

established prac-

an

the

subsidiary,

general

and

are

DOME

corporate

pur-

MINES

ions

Dome

of

meeting

a

M.nes

(In

able

quarter

stockholders of record

and

the

improvements

1953

on

of Directors of
day, a dividend
Cents (n^c)
per

Funds)

was

each

CLIFFORD

W.

ble at

the

Treasurer.

whole

in

or

part,

prices

at

anging from 105.07% to

Phila.

plus

par,

A

ccrued interest.

elegrapb

Telephone

Co. is engaged in fur-

ainly

local
in

toll

and

Alabama,

2,

Fa.,

been

27,

Aug.

Capital

($.50)

Stock

per

payable September 15,

pany,
ers

of

record

ber

3,

1953.

at

the

close

W.

B.

of

58ih Consecutive Dividend
The Board of Directors of Rome

Cable

MILES

the

1953, to stockhold¬

of

business

Treasurer

Dividend Notice
A

75$

LABORATORIES, INC.

Stock of the

of

Directors

of

eorgia, Kentuck.y, Louisiana,

1953, the

40

company

DIVIDEND

had 4,109,-

the

telephones in service and

service

xchange

Services

areas.

writer

include

also

ompanv

in

exchange

1,027

of

the

teletype¬

service,

rural

switching service, and service

nd facilities for
hone

and

private line tele-

teletypewriter

use,

for

The

hoard

Anaconda

and

for

of

\linin» Com

dend of Seventy-five

divi¬

a

Qents ($.75)

the close of business

at

pany's
m

operations

o*n t h s

bowed
f

figures

'ended

total

the

on

for

u.ual

hare, based

on

ber of shares

to

Electric

Company

(Incorporated)

Quarterly Dividend

York, New York, July 30, 1953

on

August 26,

Paul Raibourn

1953

Treasurer

the

COMMON

GENERAL

STOCK

of

close of business

record'

oil Mont

the

at

September

on

55^

DYNAM ICS

payable September" 29, 1953, to
stockholders

CORPORATION
445

Park

Ave., New York 22,

N. Y.

In All Phases of Television

8, 1953.

PER

SHARE

Payable September 30, 1953
Record Date
Sept. 14, 1953
Declared
September 2, 1953

lAR.fc mora;*

W.

EB

and Treasurer

25 B oadway,

New York 4. N. 1

OL

ED

A

l©)

WEST

©

%|C

PENN

ELECTRIC SYSTEM

Monongahela Power Company
The Potomac Edison Company
West Penn Power Company

y
5

*0

six

1953

revenues

$213,287,265 and net income of

26,252,189,

^NestPenn

business

tember 15, 1953.

com¬

30,

June

operating

THE

Secretary & Treasurer

share or. its capital ?tock ol
the pa/ value of $50 per ?hare.

other

the

Corporation

Charles P. Hart

New

Secretary

the Common

Aug. 14, 1953.

Sep¬

purposes.

Unaudited

on

at the close of

Stock payable October 1, 1953 to
Preferred Stockholders, on rec¬
ord

for

per,

lecre ary

programs

oL

Coppei

has today declared

pany

he transmission of radio and tele¬

vision

Director?

was

service,, mobile

adio-telephone

1953

share has been

to share owners of record

Laboratories,
Inc. this day has declared a divi¬
dend of $.25 per share on its
outstanding shares of 5% Cumu¬
lative Convertible Preferred

181

NO

ausiis! 27.

urnishing. local

line

AnacondA

58

Rome, N. Y., September 2, 1953

payable Sept. 10, 1953

per

declared

Board

No.

Gerard A. Weiss,

quarterly dividend of

ALLEN B. DU MONT

Septem¬

ASHBY, Secretary.

declared

has

Dividend

share on the Common
Capital Stock of the Corporation,
payable October 1. 1953, tn hold¬
ers of record at the close of busi¬
ness
on
September 10, 1953.

of

Com¬

telephone

arolina, and Tennessee. On June

Corporation

35 cents per

share

on

the

NEW YORK

•

m

Allen B. Du Mont

0,

ROME

WSSst

Q

1953

dividend

declared

-

August 26, 1953

STREET

Florida,

ississippi, North Carolina,s South

ROME CABLE

GD

The

&

ishing communication services,

ervice.

RACE

Fifty Cents

Bell

close.

GREENBURGH,

to stock¬

the close of business

at

VINCENT T

quarterly

has

Southern

Sep¬

Preferred Stock, 5.25%, Series C
Dividend of $1.3i25 per share.

COMPANY

company,

$3.95

the average

per
num¬

CFJ

^AMERICAN

&

MACHINE AND

outstanding.

New York,

METALS, INC.

DIVIDEND NOTICE

tHPili Dividend
QUARTERLY

25^
An
a

EXTRA

share

on

of

dividend

will be

paid

September 30,
at

25^

concur¬

the

1953

3hare on the Capital Stock of
this Company for the quarter
ending September 30, 1953, pay¬
per

able

October

on

shareowners

stockholders

of

business on September

16,

At

15,

1953,

record

of

at

close of business

to

the

a

tors

a

close

to

THE

1953

quarterly divi¬
Seventy-five (75) Cents

dend of
of

share and

a

rently

dividend

September 2

The Board of Directors has this

day declared

A

COLORADO

FUEL

meeting of the Eoard of Direc¬
of

The

Colorado

Fuel

And

Iron

Corporation, held in New York, N. Y.,

I

on

August 27, 1953, the regular quar¬

terly dividend
of

the

on

the corporation

common

stook

in the amount of

thirty-seven and one-half cents pershare, was declared, together with
the

half

series

stock
and

per share, and
also
quarterly dividend on

B
in

$50

the

par

amount

sixty-eight

of

three-quarters cents

business

of

on

record

per

at

share,

the

close

September 4, 1953.

regular quarterly dividend on the

series A $50 par value preferred
in the amount of sixty-two and

preferred

value

payable on September 30, 1953 to

stockholders
of

the
the

cents

regular

all

CORPORATION

IRON

AND

D. C.

McGrew

stock
Secretary

one-

September 1.5,

1953.

1953.

STUART K. BARNES, Secretary

DIVIDEND

NOTICE

The

following

have

been

Guaranty Trust Company

dividends

of New York

declared by the

SAFEWAY

STORES,

INCORPORATED

Board of Directors:

Preferred Stock

Common and Preferred Stock Dividends

A regular

quarterly dividend
share on the
$4.25 Cumulative Preferred

The Board of Directors of Safeway Stores, Incorporated, on

of $1.0625 per

payable

Stock,

October

August 27, 1953, declared the following quarterly dividends:

1,

1953 to stockholders of rec¬
ord at the close of business
on

dividend of
on the Com¬

quarterly

$0.15
mon

1,

A

per

record
ness on

at

FINANCIAL

to

CORPORATION

stockholders of

the

close of busi¬

the

Common

Stock

FI N'ANCI A L

share

Stock, payable October

1953

quarterly dividend of $0.45

per

share in cash has been declared

Common Stock
A

C.l.T.

September 15, 1953.

DLVLDEND NO. 124

September 15, 1953.

of

C.

business

of

on

T.

CORPORATION,

payable October 1, 1953,
holders

I.

record

at

September 10,

transfer books will

not

to

the

stock-,

close

1953.

Checks

will

be

The

close. Checks

on the 4% Preferred
Stock and 4V2% Convertible Preferred Stock are payable
October 1, 1953 to stockholders of record at the close of busi¬
ness

September 16,

MILTON L. SELBY, Secretary
August 27, 1953

1953.

LIBRARIAN, SAFEWAY STORES, INCORPORATED
P.O. Box 660, Oakland 4, California

of

your

1953 Semi-Annual Report

I

C. JOHN

Wm.

ferred Stock.
Common Stock dividends and dividends

Please send copy

will be mailed.

mailed.

KUHN.

Treasurer

J. Williams

Vice-President & Secretary

60<f per share on the $5.00 par value Common Stock.
$1.00 per share on the 4% Preferred Stock.1
$l'.12Vz per share on the 4V2% Convertible Pre¬

of

Transfer books will not be
closed.

August 27. 1953.
-Zone

W»V«V




"

books

consecutive

1513
n

not

t

the

San Francisco, California

Preferred Stock, 5%, Series B
Dividend of $1.25 per share.

Incorporated

option of the

G.

payable

business

not

at

15, 1953.
be closed.

K. C. Christensen, Treasurer

MICHEL.

and

METER

payable October 1, 1953,

Preferred Stock, 5.25%, Series A
Dividend of $1.3125 per share.

1953.

AMERICAN

JOHN

September 11, 1953.

elephone plant.
The debentures will be redeem-

Company will

The Transfer Books will

cents per

transfer

Sept.

on

following quarterly dividends,

holders of record

its

to

of

The

business

The Board of Directors has this
day de¬
clared the

Board
held this

One-Half

Canadian

close

1953.

of

close

Treasurer.'.

27,

144

declared pay¬
October 30,
1953,
to shareholders of
at the close of
business on September

record

20.

of

Limited,

Seventeen

share

NO.

President

and

9,

1953

stockholders of

to

LIMITED
August

DIVIDEND

At

inducing extensions, addi-

oses,

of the

the

at

(50c)

declared,

September 23, 1953,

tember

Quarterly

NOTICES

been

Dividends

the parent company are Ob-

ained under

has

record

Inc., 207 State Street.

July 31, 1953. Advances

on

A dividend of fifty
diare

hese advances amounted to $58,-

rom

NOTICES

Robert

—

Winton has been added to the

company

repayment of advances

parent

Telephone

an

W.

by the

Conn.

August 19,

on

a cash dividend for the
of the year of 55 cents
per share upon the Company's common
capital stock. This dividend will be
paid by check on October 15, 1953, to

1953, declared

Treasurer

Joseph

Chronicle)

101.53%
Net proceeds from the financing

'

DIVIDEND NOTICE

common

(Wednesday)

esterday

NOTICES

outstanding Capital Stock of the Company

(Special

sale

King

NOTICES

THE SAFETY CAR HEATING

of the par

Euclid

the

&

award

won

Chronicle*

Inc.

South

1, 1877. at 102.07% and acinterest, to yield 3.62%, is
eing made today (Sept. 3) by
aisey, Stuart & Co. Inc. and as¬
The

The Financial

to

Chronicle)

BRIDGEPORT,

PASADENA,

DIVIDEND

King Merritt Co.

(Special

Financial

due

Telegraph

debentures

ept.

f

The

ciated

•rued

sociates.

to

Vogel has become affiliated with

Offering of 530,000,000 Southern
4-year

With

Jones, Cosgrove

(Special

35

(847)

State.

36

The Commercial and Financial Chronicle

(848)

Thursday, September 3, 1953

...

dicated

BUSINESS BUZZ
/i

Washington..
Behind-the-Scene Interpretation*
from the Nation's

iiili lbs

*

ii 11 It

Jiiiii
C/'-V

m

,...

.

schedule.

I

'

'/, 4""

J //''' W/H<

?"//

/'

.

-

assume

be lost

to

expire

The

on

from tax

statutory

budget estimates
with

success

,

,

/

Congress

/

,

iililf I tipll 11|

this enterprise.

on

.in

And You

Capital

revenues

rates due to

/
'..M./.

revenues

replace ALL of the $8 billion

of

-

i-

it will ask for

to

re-1

(This column is intended to

yWW/y'y

fleet the "behind the scene" inter-i
pretation from the nation's Capital 1
and may or may not

WASHINGTON, D. C.—Some¬

thing interesting and something
unexpected is likely—

hitherto

sources

have

bailing

out

been

no

criticism
million

early

ing Committee.

port Bank, but the question

This study
over

is expected to run
period of

considerable

a

time. It may even go on for two

would not even be
a change in the or¬
ganization of the Senate, if such
took place either next January
It

years.

affected

Congressional elections.
is

This

of

Jnd.)

(R.,

Committee

the

Capehart

and

Burnet

Senator
1

E.

Homer

man

Chair¬

both

because

R.

Maybank

<D., S. C.), the ranking minor¬
ity member, are united on this
enterprise, as they were as a
•matter of

fact,

standby

on

con¬

trols and most things during the

of

session

ilirst

the

Con¬

81st

gress.

huge

banking,

Advisory
slated to meet

labor

is

■Sept.^15 with the Banking Com¬

will'

mittee. After that the study

it

proceed,

is

expected,

-staff level, with

mittee

staff,

business,

the

at

Banking Com¬
from

experts

and

labor,

and banking,
burnishing memoranda and sug¬

gestions to the Committee.

•Hence the Senate

mittee

for

study

to be

pears

Banking Com¬
at this stage ap¬

preconceived plan of
facilitating the financing of for¬
eign trade; i.e., financing ex¬

T»est

has

study

goal,

range

its

as

longof the

the finding
possible to finance

ways

is the

Committee

unless

exports

tained
tion

at

It

is

cannot

produc¬
in
the

be

even

National

Committee

tion

fi¬

policy—is also a subject
private criticism from mem¬

is not

in

fiion of any brand new
idea

about

mechanisms
^ut

of

the

the

Committee

Jor

a

couple

-studies,

bril¬

be

pulled

offered.

continues

of

As

along

with

years

its

bead

on

opinion will draw
the

target

"what is the best feasible
-sf

financing exports
giving them away.

as

to

means

without

is

It

this

that

feared

par¬

under

Export-Import Bank

of

what

port

Bank

from

its

is

to

the

has

ascertain

Export-Im¬

been

statutory

financing
For

these

extent

exports

varying

function
and

of

imports.

long time there has been
large suspicion in Congress
"that the
Export-Import Bank
lias been into, or on the
fringe
"political lending," meaning

tries
have

that

the

wanted

foreign

or

up coun-

Administrations
to

butter

domestic

up

for

political

considerations.
The Committee also

wants to

how much of the bank's




re*

floor—just follow your nose!"

the

of the Treas¬

State

Department

foreign aid in

Department

might discourage the bank from

the
basis
therefore, offering the possi¬
bility of political insecurity to

making

Mr.

jointly.

State

The

angle might

lending.

for

loans

which

angle

Treasury

The

the

political

encourage

the

purposes

is

quite

Committee
it

likely

is not the
wants

Isn't

the

case,

make

to

sure

commissions

has

studying,

many

other

policy

Reports
Lewis

S.

U.

among

the future
the United

things,

of

its

Sterling

barriers

Am¬

the

of

throughout

the

that

It is true that

throughout his
report, Mr. Douglas appeared to

sug¬
was,

is¬

before the commmisions of

the

reports

of

notable

most

the semi-an¬

was

the

other

the

among

other

tion

usual

the

of

Mr.

to

Douglas
emphasized at considerable
hand,

held

in

conference
like

fiscal

reduced

the

Great

June

Britain's

dollar

problem

ing

something

which

she

privately

had

to

and
solve

themselves.

the

would

ex¬

steadily

be

point

where

budget
be

of the

report

Mutual

Se¬

curity

Administration.

News¬

papers

throughout the

Estimate

From

Budget

country

blazoned the stories

port

this

on

re¬

saying President Eisen¬

as

hower had

declared

foreign aid

must

that

go

heavy

indefi¬

on

nitely.
President Eisenhower

All

himself

port

contributed

was a

this

to

Humphrey appeared in

ecutive

session

for

fiscal
to

Committee, to plead
legislation " boosting
the

for

Treasury's borrowing

Upon

the

ator

Harry

that

the

insistence
F.

political

Harold

Stassen,

suending, Mr.

Administrator

eign

aid

of

the

for¬

to

the

Byrd

of

Sen¬

(D.,

Va.),

Administration's

estimates

now

by

be

submitted

best
as

May 20 Eisenhower Ad¬

estimate

lowered

its

by

million, and
a
projected

$200
with

revenue

lion

of

year,

deficit

billion

$1.8

estimated May

Big
the

for

news

year,

so

came

revised

the

bil¬

lower

in

part

Minnesota's

in connection

with

is that

Management

Crisp—]

tion,
York

Associa-d

330 West 42nd Street, New]
36, N. Y.—paper—to mem¬

bers $1.75, to

Dynamic

-

non-members, $2.50.

Wage

Coming

for

In-]

A.

—

-

Mass.—paper—50c.
Regulations Relating to Foreign

—Supplement 10—Bank for In-,
ternational
Settlements,
Basle,
Switzerland—paper—Sw. francs
(price of the main work with

2]
ten]

supplements Sw. francs 32.-).

We Trade

RIVERSIDE
CEMENT

convention vote from himself to
Eisenhower
and

Senator

the

on

thereby
Taft

second

first

denying
the

ballot,

the

courtesy

ballot defeat in his

didacy

for

the

late
of

a

can¬

Republican

nomination.
Members of Congress

influence
cratic
of

is

Leader

Texas,
the

for

the

as

last

which

Senate

Lyndon

have

foreign aid

Demo¬

far.

in

SECURITIES

50 BROAD STREET

•

SPECIALISTS

NEW YORK 4, N. Y.

TElA

program

HANOVER 2-0050.

.

TELETYPE NY 1-971

LERNER & CO.
Investment Securities

10 Post Office

Square, Boston9,Mass.

will

rearming

Congress

FOREIGN

this

vote if
Europe doesn't show far better
results

they

of such

that

said

Analysis Available

Carl Marks & Co. Inc.

Johnson

MAY

than

thus

continue

Telephone

1

]

Funds Control in the United States

in¬

Republican

J

Nickels Company,1;
Square, Cambridge 38,4

Rocker

Harvard

Policy
Growth,

the

Administration

job of Admin¬
for switching

1952

Market-:

|han

program.

Harold got this

in

current

20.

budget revision

Eisenhower

by

estimates

Eisenhower estimate of $3.8

to

Humphrey stuck

spending

re¬

Budget
Adminis¬

the

$2 billion for the current

out

one-time

that

power

budget

the

out,

reduced

tration's

American

dustry's

Aug. 1 to Aug. 27, when

Practices

Company

ing Research—Richard D.

Eddy

came

ex¬

Sen¬

re¬

of the report represents the fine

wonder,

the

ate Finance

two-paragraph trans¬

boy

before

view

Bureau

$15 billion.

mittal to the Congress. The rest

of

M.

Aug. 1, Secretary George

Bookshelf

on

equivalent

"mid-summer"

the

To Suit Needs

On

Man's

month-

year

i

nual

Business

he

be in balance.

thereafter

we|

reconvenes,

new

a

and the budget would

revenues,

Mr.

Congress

to go
state"
Philbin said.
'police

will deal with the matter."

huge

30, 1954, the rate of spend¬

'54)

Sterling Area

to

(not

this

campaign,"
"When

Bureau!

Revenue

Tax,

a

Korea,

this

length—if only in rather pain¬
less generalities—that most of

.

best]

the

determined

with

forward

for,,

which

barring

that,

by-month

Internal

apparently

continua¬

Profits

Excess

Humphrey

press

Mr.

asking

would

the

is

June

next

things,

penditures

was

experts render their reports.
of

have

ex-Ambassadors

a

which]

Eisenhower's,

20

May

emergency

it were, prejudging those

One

President

After

have

President

the

the

message

to

delinquency exists and
of reducing it."

to]

view

a

means

"The

Humphrey

Mr.

balance

near

promised

which

"with

l

can-1

the

and the budget no¬

year,

where

ish viewpoint on this matter. On

country

Internal]

that

him

would go on

30.

reports

press

weeks

fiscal

Great Britain have for the Brit¬

slant to various reports

a

recent

help

fiscal

present

whole.

as a

ing showing a reduction in the
monthly rate of spending by
only $117 million from the first
to the last half of the present

area.

softness

Some

to

$74.1

monthby-month breakdown on spend¬

Truman,

trade

the

for

of

Aug.. 1 then gave

on

by

study

Douglas,

estimate

Incidentally,

Tariffs

S.

the

on

W.

observers

sues

year,

played
up
the
angle that the U. S. must lower

Prejudging

Eisenhower

President

as

legal

bassador to Great Britain under

Ike

gested

billion,

revamp

and

Stassen.

Mr.

in

to

administrative

ministration

form, but it

authorized

isn't.

given

some

Emphasizes U.

Or if this

told

determine the real extent to

money.

Congress

answer]

door-to-1

regional

Commissioner Wilber A.

Gallahan
vass

effect,

a

making loans to butter

the 58th

on

and

istrator

One

"He's

thumb, in
ury

canvass,

Revenue

ticular reorganization places the

hand

Short-range, the Committee
is aiming at making a
thorough
study
of
the
Export-Import
Hank.
This
study is to shed
light on two factors,
i

that in

protest against the

door

it hopes that financial

and economic
the

can

and

poses-

or

financial

new

that

hat

that

Philbin said

Mr.
to his

Committee.

of the

these

however,

asserted,

abhorrent method of taxi

an

gouging and snooping and smacks
of the Gestapo and Ogpu methods]
of the police state."

nancial
of

that

tutes

foreign

on

hunt]

delin-l

tax

Philbin made the state-l
a field
survey "consti-l

Rep.

Council

Advisory

of f

quents.

coordinating Administra¬

the

—

will!

session

door-to-door

income

Federal

the

of

at the next

Bureau's

enue

for

ment

member

a

J.

Congress to halt the Internal Rev-1

management under a Managing
Director. That the latter official
not

Philip

(D. Mass.) stated in Clin-I

take action

reor¬

ganization of the Export-Im¬
port Bank, abolishing its board
of
directors
and
placing
its

is

Associated Press

an

Congressman

ton, Mass. on Aug. 31 that he

of

desirability

the

Philbin

sus¬

Eisenhower's

President

main¬

high level also.

a

the Committee

liant

main¬

be

can

prosperity

States

tained at

thinking that

high level,

a

and

\Jnited

*ee

intense

also

of

picion

dispatch,

aid.

exports of U. S. merchandise. It

S-C1

According to

States, and the future of foreign

Has Long-Range,

*o

is

There

trade

Short-Range Plans
This

delinquents.

Export-Import

some

ports of U. S. merchandise.

door hunt for Federal income tax

Reorganization

quickie build-up

no

says

and should this now

Dislikes

ly,

will not even begin until
Congress meets next January.

Snooping

Philbin of Massachusetts
he will act to halt door-to-

Rep.

have

these

of

many

will

a

for

public hearings, tentative¬

Federal Tax

regular part of the ExportImport Bank business?

business,

75-man

and

•Committee,

So

how

pe,

bers

The

Proposes End of

Brazil

to

the Eisenhower Ad¬
by the Export-Im¬

in

been made,
be

because of vacancies or the fol¬

1954

made

ministration

by

lowing January because of the

of

$300

sudden

the

eventually—to come out of the

prospective study of world trade
financing which has been un¬
dertaken by the Senate Bank¬

loan

coincide withj
views.)

own

in other
particular

creditors

countries. There is

"Chronicle's"

the

in

engaged

Teletype

HUbbard 2-1990

BS 69