Full text of Commercial and Financial Chronicle : September 30, 1954, Vol. 180, No. 5364

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CANADIAN INVESTMENT OPPORTUNITIES FEATURED
UJNIV

t£

s ITY

mjchgan

CT 1

Pat. Office

Reg. U. S

180

Volume

Number 5364

EDITORIAL

perfectly clear if not in the least
surprising that the official tactics of the Demo¬
cratic party include great use of unemployment
as a
campaign issue. This much is evident not
only in the political speeches of various candi¬
dates for office throughout the nation, but in out-;
givings of gatherings of organized labor, which
now

By F. K. McCUNE*

Mr.

McCune

A swift financial

points out the impact of potential

of atomic energy in

listed on major Canadian Stock Ex¬
which consecutive cash dividends have
been paid from 5 to. 126 years, for those whose pref¬
erence
leans more to proven stability than glittering
speculative appeal.
changes,

the industrial field, particularly in

prised in the Atomic Energy Act of 1954. Explains
Although spokesmen for the Administration - changes made by the Act, and asserts, as the result of
are, rightly or wrongly, on record as considering
the new law, there will be a new and dynamic surge of
presently existing unemployment as too great to
interest in atomic energy uses.
Comments also on
fee tolerated by the nation as a permanent condi¬
developments in the use of direct solar energy.
tion, it is being freely asserted that the Republi¬
"Atomic Energy Development and Electrical Compe¬
can
regime is quite content with it. Such an ac¬
tition," is not, I can assure you, an easy subject to dis¬
cusation is probably within the limit of political
cuss
at a meeting with executives of the natural gas
industry.
I am, however, enthusiastic over today's
license, but clearly reveals a firm intention to
assignment—and principally because
make the most of the larger volume of unemploy¬
I see great things for atomic energy,
ment, particularly in some of the politically vital
and
progress in the
gas industry.
Some months ago

While

certain

thoughtful elements in the

population were forcefully reminded that the
magnitude of "unemployment" as reported in
official statistics depends in very substantial

the

Too

future.

degree upon definition of terms. Speakers and
other commentators would do well to bear this

makes

fact in mind when

the

gas

atomic

bows to

considerable

development
naces

for

page

capital

the

turbines, fur¬
and industry, and

gas

home

Francis

point out that our own investigations into the
nuclear energy began 20 years ago in our own

McCune

Association

none.

Canada has

by welcoming the vigorous development of her

Gas

For

those

Americans

who

choose

Continued

— Underwriters, dealers and investors in cor¬
complete picture of issues now registered with the SEC
potential undertakings in our "Securities in Registration" Section, starting on page 53.

SECURITIES NOW IN

encouraged for¬

fabulous and altfiost limitless natural

by Mr. McCune before the Independent Natural
America, New Orleans, La., Sept. 13, 1954.

lifted in 1951.

were

eign investment by eschewing capital gains taxes,

field of
research

on page

Continued

;

of finp com¬

government finance. Canada
along its magnificently solvent way, bal¬
ancing its budget (with a credit balance) in each
of the past eight years, and whittling down the
national debt by $2.3 billion in the process. Her
dollar has been selling at a premium over ours for
the past two years, and all exchange restrictions

equipment for the chemical industry
—one of your prime markets.
When I say that we have
invested heavily in the atomic energy business, I should

♦An address

Continued

•

panorama

has gone

promising, and so is the
industry.
Our company has in¬

vested

Let's start with

future

industry

energy

'• '
Canada offers

panies in many fields.
In point of solvency, and as a haven for prudent
investment funds, the Canadian national economy

fools of those who prophesy.

The

are what we
about in Canada — but not

speculations, these

hear most

Now

young and

they roll unemployment statis¬
tics off their tongues as if these figures were to
fee accepted in the same way that a patient's tem¬
perature as recorded in an accurate clinical ther¬
mometer is accepted by the physician. There is,
feow^v^r, ho reason to doubt that unemployment,
Jhowfever defined, is greater in some districts now
than was the case a year and a half ago. It is
about as clear that taking the country as a whole
men and women who are seeking work are more

Americans, Canada is

today.

that

often

of many

Promotion and
used to

ydu are
keenly aware that peacetime uses
of atomic energy will have an im¬
pact
upon
your
business,
I
am
equally certain no one can give you
a completely accurate
prediction of
am

minds

frequently associated with a new chunk of ore
to be developed in Labrador, a new gold vein in
Ontario, a gusher in Alberta, a Geiger counter in
New Brunswick, or a Uranium share zooming like
a
misguided missile on the Toronto Board.

of the country.

In the

self.

areas

Canada noting especially
and the splendid assortment

over

of sound equities
uses

production. Describes composition and
of the Atomic Energy Commission, as com¬

activities

flight

the fine economic climate,

electric power

often are more New Deal than the New Deal it¬

Copy

Climate for Investment

General, Manager, Atomic Products Division,
General Electric Company

■7..

Cents

Canada—A Wonderful

Atomic Energy vs.
S
Conventional Fuels

We
It
it is

Price 40

N. Y., Thursday, September 30, 1954

New York 7,

1954

resources.

to
on

deploy
page

REGISTRATION

porate securities are afforded a
and

State and

ALL

Municipal

Securities

★

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DIRECT

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New York B, N.Y«

IRAHAUPT &CO.
Members
and

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York Stofk Exchange
Principal Exchanges

New

other

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SECURITIES

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NEW YORK 4, N. Y.

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Our Customers

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SUGAR

Exchange

Orleans

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NEW YORK 5, N.

Exchange

Cotton

and other exchanges

Sixty Years of Brokerage Service
Members N. Y. and Amer. Stock

STREET

Stock

Board

Chicago

Bonds

.Exchange

Stock

York

Commodity

DEPARTMENT

WALL

New

MABON & CO.

Bell

Municipal

Members
New

BONDS

State and

1856

H. Hentz & Co.
American

& Foreign Bonds

Preferred and Common Stocks

LAMBORN & CO., Inc.

MUNICIPAL

and

bank & trust

company

STATE

Municipal,

State and Revenue Bonds

All Corporate

Chemical

MARKETS
ONE

Established

1 NORTH

LA SALLE ST.

CHICAGO

Teletype NY 1-702-3

WHttehall 4^8J81

"Boston

Y. 6

Teletype NY 1-2708

Telephone:

Enterprise

1820

The Commercial and Financial Chronicle...

(1262)

The
Investors

Security I Like Best

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

reasons

for favoring

(The articles contained in this forura

they to be regarded,

are

Services

Thorofare Markets, Inc.

fare"

New York Hanseatic

Corporation
Established
Associate
American

The

Exchange

WOrth 4-2300
BOSTON

Teletype NY 1-40

OFFICE:

Lincoln
Direct

State

PHILADELPHIA

Liberty

Street

West

Me.

basis, and

merchandise

Since 1917.

Members
York

120

Stock

Exchange

Stock

American

Exchange

BROADWAY, NEW YORK 5
TEL.

REctor

quality,

2-7815

Trading Markets

Alabama-Tennessee Natural

Gas Company

Company

Lynchburg, Va.

addition

best

possible

authorized

the

and

American Mercury
Insurance Company
selling under $7.00

the

Supermarket

the

one

Swissvale,
Charleroi,

Members New York Stock Exchange
American Stock Exchange

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

All Sources

Inc. Taxes

Earnings

1938

weeks.

at the

are

rate of

than $60,000,000 per annum.
Earnings (since 10-31-42) retained
and

reinvested

the

business

amounted to $2,302,749 as of July

sales

3, 1954.

The books of the company

period of

the District of Columbia, 33 states
of the U.S.A., England and Canada.

same

time

actually improve profit mar¬
gins. The second significant factor
the

profit

squeeze

and

1951

1952

Stock dividends of 10%
and

margins

1953

1952

been

have

paid

and the management regards with

resulting

favor

continuing the

payment

reasonable stock dividends

which did not permit offsetting of

tified

rising labor and other costs.

time.

Excess

Profits

Tax

also

The

operated

The

outlook

for

continued

normal level.

New

York

Stock

Exchange

25 Broad St., New York 4, N. Y.
Phones HA 2-9766

Tele. NY 1-3222

wider

1,250

advances

packaging,

average
fare

in'

the

and

1953
the

was

food

display,

sales.

than $200,000;
year

The

sales volume

Market

relations
common

per

operation

cents

As of Aug.
com¬

listed
can

employs
women

time.

have

some

with

for mar^y years.
have

been
are

traded

The

listed

through the

department

the

Labor

good.

not

are

Numerous

been

the

over

un¬

Ameri¬

are

not subject

assessments.

annual

Thoroat

the

annual

(

stock

capitalizing

common

near-term

York

Gas

Stock

Corporation
serving

has had

ratios.

The following table is in¬

•

•,

Yamaichi

Home

Office

Brokers

111

Co., Ltd.

1897

Tokyo—70

Branches

Investment

Bankers

Broadway,N.Y.6 COrtlandl J-5680

high

gives
of

H0*>R

promise,

growth

the

in
A

future.

glance at

few

statistics

(Table I) will

give

picture

1 what

has

happened.
The

lower

Tampa

Bay

bridge

con¬

the

necting
Horace I. Poole

reality

Sarasota
next

Since 1932

peninsula city
of

St.

will

month

Florida.

population

become

and

VIRGINIA-WEST VIRGINIA

make

to
lis^d.

The

NORTH and SOUTH

should

recently

pub-

The second important advantage
of
this situation is the growth
factor

innertnc

Here

(Table II)

the

CRAIGIE&CO.
RICHMOND, VIRGINIA

figures

the

out

JDS

F. W.

Lp-Gas

again

spell

MUNICIPAL E

by 1964, accord¬

estimates

business.

CAROLINA

present

125,000

Specialists in

Peters¬

Petersburg the gateway to all

southern

Bell System

Teletype: RH 83 & 84
Telephone 3-9137

picture

clearer than words.
The

possiblities

for

continued

growth of this industry are bright.
Little has been done in the in¬

Specialists in

dustry to secure new load build¬
ing uses from present customers,
and
sis

from

now

LOW-PRICED

greater empha¬

this phase will

tend to in¬

URANIUM STOCKS

profits per customer. The
competitive position of LP-Gas to
crease

electricity is shown in
parison

the

leaflet,

Gas

for

entitled

the

"Liquefied

Household"

two

120

per

section

400

over

aod

cents

kilowatt hour."

one-half cent

rate.

three

from

cent

three

rate

advantage that Gulf
enjoys lies in a very

management

team.

The

top-management is shared by R.
J.

Foster, President; Kermit Fos¬

Vice-President,

and

know

him,

Continued

Teletype J Cy 698

N.Q. B.
OVER-THE-COUNTER

Don,

sparkplugged

14-Year Performance of
35 Industrial Stocks
FOLDER

REQUEST

National Quotation Bureau
Incorporated

46 Front Street
on

INDUSTRIAL STOCK INDEX

Donald

Alberty, Vice-President.
all

•

Direct N. Y. Phones: WOrth 2-4578-9

use

third
Gas

HEnderson 5-6005

the

usually

cents.1
The

Exchange WM- Jersey City 2, N. J.

one

competitive with 12 cents a pound
for LP-Gas whereas I pay six

Cities

ASSOCIATES
15

use

get

rate

company.
I
two months

for

cent

have

you

hours

WELLINGTON HUNTER

which

states, "For water heating lique¬
fied gas at eight cents
per pound
costs slightly less than
electricity
at

Inquiries Invited

com¬

published

by the United
States Department of Agriculture

price/earnings

write

growth

and

times

comparable

Securities

LP-

rate of

ter,

which is low in relation, to

Exchange

Petersburg, Fla., enjoys
three important advantages. First,
it is operating in a
territory that

earnings prospects at about eight

other

Call

Gas in St.

excellent

At present prices, the

knowledge
Japanese potential.

POOLE

corporation,

electric
on

Stock Exchange, have no pre¬

emptive rights and
to

about

pres¬

than $800,000

average

and

Exchange,

any

and

1944 was less
at the close of the

jus¬

payments

part

the counter and

proc¬

year

current

are

company

offered, the move¬
ment of people to the -suburbs, in¬
creasing population, the greater

and

men

employees

selection

of the auto for shopping

increased

company

Within recent

and

cash

1954 there were 226,146
shares outstanding.

whom

of merchandise

ervation

been

The

Among the factors responsible for
their growth have been the greater

essing,

Quarterly

time

from

investors with

Established

This

mon

supermarkets Jrave become
ingrained in modern living habits.

values

earnings

effective July 27, 1954.

rapid turnover of inventory
largely minimizes the. possibility

inventory loss.

have

against the realization of equitable
net earnings.

scientific

Members

Gulf Cities

show holders of record resident in

use

New

ing

years

Qppmheurwi &. r€w

Members

478,996

com¬

have unusual appeal

investors with vision—

King, Libaire, Stout & Co.,
New York City

1,026,687

Present sales

past five years two
were
significant in the

high levels during

food

34,964,181

♦1st

The

Dollar Bonds

EiseJe

rocket to 300,000

has

the

may

'•

470,547
356,555

the

margins to

German

$1,278,047
770,087.

$136,719

"Thorofare."

HORACE

St.

moderate business adjustment and

promise of

$4,911,143
47,264,369
25,359,071

1953

gain in sales and recovery in profit

VALIDATED

stock

mon

Year

experience of the food chains. The

Tele.—NY 1-1817

evident

Pa.,
Pa.,

Net

primarily from rigid price control

Peter P. McDermott & Co

tne

SECURITIES

the

writer shares the enthusiasm

burg with

outstanding de¬
the retail field.

first is the ability to sustain

management,

are,

Profit before

;

been

offices

JAPANESE

con¬
com¬

quality of

proven

aggressive

each -at

one

Earnings

mar¬

the past two decades,

Over

during

★

Pittsburgh,
Pa.,

outstanding

Supermarkets

new

Sales

Special Report Available

its

♦1954_

kets.

and of the

pany

♦1953—

tributes

price decline and at the

share)

Bought—Sold—Quoted

con¬

Fiscal

dis¬

branch

8.00

tinuing growth record of the

to be opened soon
Connellsville, Pa., New Ken¬
sington, Pa., Steubenville, Ohio,
Perry Highway, Pittsburgh, Pa.,
Monroeville, Pa., and other prime
locations in shopping centers.

From these

corporation
merchandise to its

growth
33

Because of the

are

Pittsburgh, Pa., and in

warehouses

Avalon, .Pa.;

the

Supermarket, the
corporation maintains main ware¬

factors

Tel. DI 4-7140

way,

during recent weeks

Whitehall,

warehouse

the

Greensburg,, Pa.,

each

space

During

per

the

confi¬

customers'

order

two

including

velopments

(Currently

their

opened

All of the Supermar¬

Morgantown, W. Va.

Scott, Horner &.
Mason, Inc.
62

shop

our

7.18

Among

refrigeration
facilities for meat, sea food, dairy
products, fruits, etc.
-

houses

Dan River Mills

premises,

Commonwealth Natural Gas

Tele.

who

customers

kets have warehouse space on

American Furniture Company

8.42

7.40

began in April, 1954, of
single story modern warehouse
and
general
office
building of

facilities

Parking

space.

automobile.

wires to

7.66

of 16,000 square feet of mar¬

the

3.42

3.00

available for the convenience

NY 1-1557

Mobile, Ala.
Direct

35.

Exchange

9.00%

struction

available.

Stock

HAnover 2-0700

Yield

some 216,000 square feet, located
on a 30-acre tract, owned by the
rapid service and comfort¬
able
surroundings.
The Super¬ company, near Murrysville and
markets operated vary in market¬ Monroeville, east of Pittsburgh on
the Pennsylvania RR. and William
ing space from 5,000 square feet
Penn Parkway just east of
the
to 16,000 square feet, and it is the
present policy of the corporation Interchange with the Pennsylvania
to open
markets which have a Turnpike. Occupancy is expected
minimum of 12,000 and a maxi¬ by early October, this year.

keting

Stock

4.00%

2.18

wide choice, convenience of selec¬

are

Cash

55_i_.

"Thorofare"

wide variety of
kind, brand and

Stock

York

American

New Orleans, La. - Birmingham, Ala.

to pave the way for
operating economies and
long-term
growth,
directors
of

Customers
offered the real advantage of

mum

Per Share

further

Humphrey, Jr.

New

Total

tion,

ffiUONNELL & CO.
New

Members

and

2.10

are

cash -and-

are

—Yield from—

type.

prices

estimated basis:

2.66

creasing

in these

Steiner, Rouse & Co!
19 Rector St., New York 6, N. Y.

projected

Price

what lies back of the brands they
sell."
"
\

made

Rights & Scrip

note

namely, talking specifically about

service

carry

matter

dence

the

markets

Specialists in

dicative

yields

years

self-

large
Sales

been

saying

for

particularly,

Bought—Sold—Quoted

Members

Thorofare

recognize that, in these days, the
public needs reassurance about the
American way of life, and they
are going about the matter of in¬

and

Louisiana Securities

Corporation—

Thorofare management appears to

Virginia,

are

Hartford, Houston, Philadelphia,

Gas

thoughtful observers of retailing.

sylvania, east¬

Building

Portland,

has

sixty-

Ohio

leadership

Markets,

western Penn¬

ern

Boston, Chicago, Cleveland, Dallas,

Providence,

—"The

corpo¬

located

OFFICE:

Wires

Private

licly quoted at that time

permarkets,

Broadway, New York 5

120

Cities

Horace
I.
Poole, of Eisle &
King, Libaire, Stout & Co., New
York City. (Page 2)

'•

Names Foundation, Inc. was pub¬

three (63) Su¬

Member

Stock

food field. The President of Brand

increasing.

ration's

1920

Gulf

....

Brand

Retailers-of-the-year in the

Name

for the
very important fac¬

recognition

company as a
tor in its field
is

Certificate of Distinction

climbing and favorable

are

widespread

Inc.—Arthur

Names

earnings of "Thoro¬

and

nor

April, 1954, Thorofare Mar¬

Markets,

F. Humphrey, Jr., Vice-Presi¬
dent,
Hulme,
Applegate
&
Humphrey, Inc., Pittsburgh, Pa.
(Page 2)

kets, Inc. was awarded by Brand
Incorporated the National

request

Sales

Thorofare

than $1,000,000.

Humphrey, Inc., Pittsburgh, Pa.
on

be,

sales volume per store is at more

Vice-President, Hulme, Applegate &

Analysis

intended

not

are

Alabama &

Selections
i

offer to sell the securities discussed.)

JR.

HUMPHREY,

ARTHUR

as an

Week's

Participants and

Their

particular security.

Forum

of experts

group

advisory field from all sections of the country

participate and give their

Diversified

different

This
*

Thursday* September 30, 1951

page

New

York4,N.Y.

Volume 180

Number 5364

The Commercial and Financial Chronicle

...

IN D EX

Canada's Plans for Its

Articles and News

Northern Territories

.Atomic Energy

Mr. Germain reviews economic potentialities and

of Canada's Northwest Territories.

the

—Edmour

Notes recent changes in \

and points out "the North Pole is no longer
pole, but a hub." Says, because of the airplane and other
improvements in transportation, the north land is no longer
remote, and the Dominion- Government has taken, steps to

in store for those

the

job

who continue to think of Canada's

frontier with

Far

unity which it is the

North

jwaste

over

terms

frozen

which the Royal Cana-

world

dian Mounte

Police

chase

Icebergs' and

•

Each

The Expanded Operations of the World Bank ^

and

to the Yu-

and

Nor thw est

Germain

Territories,
twice

are

all

numerous now

put together.
As for the

Royal

Canadian

Mounted Police, it is hardly even
-mounted

more,getting
country chiefly by
any

the

around

power boat and canoe or dog sled
and sometimes by airplane. While

its

job is to maintain law and
order, its duties include more and
civil

such

administrative

work for the governments

territories

of the
tending to old age

pensions and allowances for the
blind (paid in the form of food¬
stuffs and .goods to the Eskimo),

"the

collection

tax

and

the

fur

export

license fees, and
as
notaries public

game

acting

even

and

coroners.

.When thinking of Canada—and
especially its northern territories
—it is well to remember that the

country is relatively undeveloped
not because of its climate, the
lack

—Walter

natural

resources

the

frontier.

aid

which

securities

rifle but

with

rivers

lakes

and

to. be

his

relatively
\

found

North

The

youth.
By all
standards, Canada is a very young
country. It attained the status of
a major sovereign state only with

airplane

confederation

Canadian

the
with

West

Canadian

the

had less than
to

back in

think

and

1867 when
was

East.

Canada's future is about what

part of the continent, appeared to
be about a century ago, back in
the period of the Civil War. Con¬
federated Canada, of course, reaps
the benefit of the fact that it has

great
-

the tragedy of that
schism which has left its

mark

.U.

S. political and

jdioiniE affairs to this day.
dians

can,

all

itself

North

the

eco-

the

top

and

but

As We See It

News

giant portland

...

....

Recommendations:

Discount".

reeves-ely

the

and

—

points,

Our

American Electronics Ine,

...

Eastern Industries
53
Common

Security Offerings

Prospective

The Market

Pole is

no longer a
hub.
Increasingly,
are
becoming aware

and You—By Wallace Streete

Continued

page

The State of Trade and Industry...

Washngton and You

Reeves-Ely Lab. Inc.

6<K

...

Gardens, London, E.
land, c/o Edwarids. & Smith. f
l

the COMMERCIAL and

Drapers'

PREFERRED STOCKS

Reentered

Reg. T7. S. Patent Office

Park Place,

COMPANY, Publishers

New York

7, N. Y.

,f.

Rohr Aircraft Corp.

Company

second-olass matter Febru¬

25,

WM V. FRANKEL & CO.

Subscription Raties
Subscriptions" in United States,
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[REctor 2-9570 to 9576
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Thursday, September 30, 1954

Othdr

Offices:

135

South

INCORPORATED

of
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39 BROADWAY, IIEW YORK 6

Dominion

Every Thursday (general news and ad¬
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i;«i

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—2

Common

specialized in

Preferred

Ketay Instrument

The Security I Like Best.....

...

Securities Salesman's Corner

:
-i

Published Twice Weekly

For many years we

Exchange PI., N. ^ ;

Utility Securities

Securities Now in Registration

Teletype NY 1-1825 & NY 1-1826

distant

world

mor->

securitit f

Reporter's Report

Railroad Securities

markets in

Our Reporter on Governments

Public

trading

over-the-counter

HA 2-0270

Observations—A. Wilfred May

and

250

Singer, Bean & MACKIE, Inc.:

Bankers

maintain

than

1. 51
.....

cement

—

Funds

About Banks

manufacturing

-Q-rri^TTirr

have

sulphur
given

;

.Cover

(Editorial)........

Investment

pan american

Canadians

the whole, tackle

Regular Features

NSTA Notes

Europe.

The North

Cana¬

international

U. K. Note Rise

—

Mutual

populous,

America

;

■

air express

—

very great change
By shortening the

between
of

gulf

sulphur

42
on

From Washington Ahead of the News—Carlisle Bargeron....

flying the trails blazed by mili¬
tary aircraft during World War

pole

T eletype

NY 1-576-

Indications of Current Business Activity

future, commercial planes will be

spared

Telephone

Pole
—

either that in the not too

over

Dept.

WHitehall 3-2900

consecutive

Einzig—"Sterling Again at

rapidly evolv¬
ing new global transportation
system.
It is not inconceivable,

Siberia

years.

Einzig Replies to Shull's Criticism

Dealer-Broker

in the center of the

respect to

(Boxed).

Business Man's Bookshelf

Longer

Far East and other Asiatic

continental

Bank and Insurance Stocks

the airplane has placed the north¬
western corner of Canada squarely

has

the future of the U. S., on its own

been

Canada.

distances
centers

from 5

with

Trading

consecu¬

24) and

page

Unlisted

re¬

joined

terms.
,

wrought

over

(Table II, page 35)

(Table I,

■

com¬

century in which

act

has

126 years

❖

..."

John F. Reilly, Manager

Canadian

showing the banks and

the Canadian Exchanges which have paid

inaccessible

Pole
A

its

tabulation

Trinity Place, New York 6

"'■>-IT,

Canada

indifference of its population but
of

(Letter to Editor)

The

the

"Canada: A Wonderful Climate

(Letter to Editor)..
*

gions but also actually to prospect
ores.

Bought—Sold—Quoted

Mr. Shuli Again Takes Issue on Gold Price Question

through uncharted
probably will not
fail at some point in his- adven¬
tures to travel by air not only,
to
go
over
the high mountainranges,
the frozen
wastes and

for

request

way

territory,

other

Prospectus

•

mexican

Sense!

Good

work

sci¬

-because

cash dividend payers

This

counter

western

and

and includes

second tabulation

and,while
he
may ' make
extensive
use
of the incredible number of
nOthern

Audubon Park Raceway

tive cash dividends from 10 to

likely it will

mpre

Gieger

.. ...
•

W. Hel-ler.:.

panies listed

ence,/developed over the inter-.
venipg period, has beerj able togive. The frontiefSman in Canjadatoday may go equipped' .with £txef
and

•• ..

Article starting on the cover
page

beautiful teamwork.

geographical

Randolph Burgess 17
t

Expanding Economy

for Investment" deals with the investment opportunities in

difference

14
...

Gearhart & Otis, Inc.

respect, Canada, in
its territories has a'
marked advantage over the U. S..
when
it was pushing back
its
own

Assoc. Oil & Gas

"CANADA: A WONDERFUL CLIMATE FOR INVESTMENT"

another

opening

The Federal Taxing Process and the New Tax Law (Part I)

projects

•

—Charles M. White.

sanctioned
and undertaken is left to private
effort.

the Eskimo inhabiting the region
/

various

■

'■

^American Tidelands

;

„

government

the

Anchor i Precision

—rEugene R. Black...

pretty much at the helm of af¬
fairs, much, if not most, of the
initiative required to carry out

men, newcom¬
ers

Telephone: WHitehall 4-6551

..'..

The Outlook for Uranium—Jesse C. Johnson—

de¬

enterprises which seem economi¬
cally feasible for the northern
country. ; While
government is

white

Dept.

STREET, NEW YORK

Ihlefeld--i_:..^.-—— 12

Other—August

Better Profits: Key to an

that

Obsolete Securities

Banking Trends in India—S. N. K. Sundaram.----—

policy seems to
be to encourage by every reason¬
able device private promotion of

nevertheless

of the

The Prospeets for Convertibility—Hon. W.

Spahr_

Banks-Complement

Commercial and Mutual Savings

pitable enough
-

Anthracite Industry on the Mend—Edward G. Fox...

velopment of the territories, are
The general aim

the

■

prosperity—Roger W. Babson

able to promote.

places

A Look at Canadian Natural Gas—N. E, Tanner.

but

——6

climate is hos¬

JT -

99 WALL

abound

there

■

glaciers
many

us!

—Hon. Richard A. Butler__

We Can Have Both Peace and
*

administration

•

happy situation is reflected

the

This Is.Not the Time for Convertibility!

in the programs which'
officials at Ottawa, charged-

with

•

r\-

Outlook for Sound Money in United States—Walter E.

course

the

desper¬

criminals.

ate

Have him sell his

national

envy

,
.

observe.

This

sense

MILLIONAIRE

Marry

obsoletes

•

their

back

;

power

pushing

Germain___

Flirting With Convertibility—A. Wilfred May

are

Oilier Oil Wells—Ira U. Cobl6igh—

in the
Northwest Territories. Concludes Canada is for the Canadians,
but foreign capital can find profitable investment in Canada,
without being in the driver's seat.

Surprises

How to

Conventional Fuels—F. K. McCune____Cover -

vs.

lessen the hazards of navigation and communication. Notes r
favorable influence of the Alaska Highway, and sees vast :

potentialities for mining and for hydro-electric

AND COMPANY

-._____Cover

Canada's Plans for Its Northern Territories

progress

this frontier region

Page

Canada: A Wonderful Climate for Investment

By EDMOUR A. R. GERMAIN
:

(1263)

Canada.

$51.00

per

Countries, $55.00 per year.

year.

Bank

and

WHitehall 3-3960

Teletype NY 1-4040 & 4041

Note—Op account of the fluctuations in
r^te of exchange, remittances for. for¬

the

eign subscriptions and advertisements must
•

Direct Wire to

Quotation Record'—Monthly,

$33.00 p8r year." (Foreign postage extra.)

be made in New York fund*.

Other Publication

PLEDGER & COMPANY, INC.
..

LOS ANGELES

•

(1264)

f
"

The Commercial And financial Chronicle... Thursday, September
30,1354
'
'
'
'

Valley

ner

Oilier Oil Wells
the

importance of oil, the extent of

brand

pressurized sand has the effect of
permeator sleeve.
jacking a bedding plane apart and
increasing permeability, thus al¬
For almost a century, oil's uses methods of
improved extraction lowing the dammed up oil to flow
have advanced year by year; first that we'd like to talk
today.
toward the well
(and the cash
to light kerosene lamps; then to
If a well was drilled and
it register).
Again, this input sand
power
and
lubricate
horseless flowed, it was a gusher—lush and went in the line of least resis¬
-

buggies;

then

lovely.

Flowing wells as a rule
about one-third of their

tance, under pressure, and prob¬
ably entered only one of a pos¬
flowing wells, and sible great number of bands. The
tion, diesels two-thirds
by
pumping.
Some other bands simply did not- get
for
trucks, wells were more modest, and the treated.
boats
and oil had to be pumped up from the
In attempting to pack off one
Some oil flowed into the
trains;- and start.
band from another to get separate
finally, w i t h casing from porous horizons, but treatment of each band the
prac¬
fuel oil and often, in the same drilling, core
tice of running and cementing the
natural gas, it samples
would
reveal
an
oilcasing through all zones was in¬
fuel

for

power genera¬

average

total output as

V has

become

major

factor

in space heat¬

ing.

that with each
new

Ira

Cobleigh

pri-

use,

and by¬

mary

product, there
has arisen

fabulous, unremitting
burgeoning demand for oil, max¬

imized

postwar

growth rate of 10%
the

five

the

United

point where it
60%

side

per

all

world's

and

its

commuting

Venezuela
the

and

Java

(out¬

Araby,

make

difference.

This

ing

thirsty, endlessly expand¬

demand

for

has

oil

led

hopeful, romantic and aggressive
drilling in every country and
clime, to push
on

world

may

the

the known

which

serves

oil

re¬

consuming

call in years to

United

States

come.

there

usually offered each year, a semipessimistic announcement that in
15

years

oil.

The

prophecy

we'd be fresh out

last

was

Cassandra-like
the

1953

end when the oil omeners

that

had

underground

of
only 29 billion
enough .to last for

year's

opined

reserves

barrels,

paltry

this

reluctance

The earliest of these

the upper

oil

year

we're
each

accordion-like

using at least 3%
and

year

each

feverish drilling and explo¬
on
land, and off shore,

ration

seems

smoke out

few billion

barrels of liquid marine life
decay.
Smart scientists and en¬
gineers are ever scratching their

brains for

ing

new

and

methods of squeez¬

of the precious

black fluid from existing oil pro¬
ducers

and

ervoirs.

underground
is

about

oil

those

res¬

varied

was

Now

section of bore

casing
the

was

get either

lower

the

by blowing upward in
the casing.
Only the open hole
below the casing was shot with
nitroglycerine. This method could
power

down

into

casing a dangling sort of long
cable. When the desired

gun on a

level had

been

ex¬

ensuing explosion would not waste
its

designed

reached, specially

approximately

ber steel bullets were shot

.45 cali¬
through

the casing

and, through the holes
thus created, either the acid or
sand was deployed under some¬
times great pressure to enter the
producible bands of rock so oil
This

"perforating" had certain
shortcomings, however.
Very great charges of explosives
are
needed
to
fire
projectiles
the horizon that only a fraction through steel, casing.
They can
of the reservoir oil came toward split or fracture the casing. They
can impair or crumble the cement
the
casing.
Further, the gases
generated by the explosion rushed around the well, and the steel
into the most permeable band and bullets leave jagged holes within
then require
only stimulated that band. There the casing which
milling out at considerable cost
was no selectivity, nitroglycerine

a hole
in the casing above,
agitate the oil-bearing zone,
and bring in some oil; but it often
split the casing and so disturbed

definite

time

has

debris.

steel

Then

around

known

This
of

1932, the

acidizing

called

for

solution

process

was

the

intro¬
intro¬

of approxi¬

mately 15% hydrochloric acid in¬
to the pay zone. The acid ate into
the limestone, a band of which was
treated by solution, and this meth¬
od

increasing

brought in

permeability

increased- produc¬

tion from that band. The pressure
used in forcing acid sent it into

the line of least
resistance, prob¬
ably only into one thin band.
The

used,
oil

third
was

method,
especially

widely
adapted to

(altogether oil
is found almost
equally in lime¬

stone and sands—Kuwait and East
Texas are sand, while

Leduc, Tur¬

Perforating

considerable

damage

to the cement bond in back of the

casing in wells and resulted

in substantial cost.

was

instru¬

mental, however, in putting holes
through casing.
But, whereas you can pack off
inside the casing
on
each side
(after
cutting away the steel
burrs) of the series of holes thus

perforated in an attempt to get
selectivity of acidizing or sand
fracturing in just that band of
rock opposite the holes, the ex¬
plosion and gun recoil have ham¬
mered and
such
the

casing
such

that

arate

shattered.
to

treatment

producible
the

cause

and

seep

shattered

the cement

Thus

isolate
bands

any

for

sep¬

the

any

be¬

injection
away

fluids escape
because of the
It

cement.

some

other

travel

may

band

may

rock

previously treated.

Active Markets Maintained in

Kansas Turnpike

Obligations of:

Authority

A second system

involves

what

of perforating

called

the

"shaped" charge; a more recent
method of perforating casing.
A

New York State

Thruway Authority

Pennsylvania Turnpike Authority

J- Cj- WH1TE 6c COMPANY

create

even more damage to
and the cement bond behf0 it than shooting bullets, and
accordingly it fails in large part
as a

maximizing agent for oil flow

from

tight bands—for, again, the

pressurizing

Telephone: HAnover

2-9300

Street, NewYork 5,N.Y.
Bell System Teletype: NY
1-1815

Industry

'
;

Ji
4

Total

industrial

production continued

to hold

about

10%

under that of

a year
ago, in the period ended on Wednesday of
However, a moderate increase is looked for during
November and December, but until then the current rate
of out¬

last

week.

put is expected to prevail.

At the present time per capital indus¬
higher than in* 1947, Dun & Bradstreet,

trial output is about 1%
Inc. reports.

Last week the United States Department of Labor
announced
that small but widespread declines in
joblessness occurred in
three-fourths of the nation's largest labor market areas in
the

period between mid-July and mid-September. More than
3,000,000
remain unemployed, however.
Areas producing automobiles, norvelectrical

machinery, steel and coal did not show significant im¬
provement during this period.
.

Total

continued

claims for unemployment insurance benefits

in the week ended Sept. 4 declined 3% from
the preceding
week; initial claims in the week ended Sept. 11 decreased 7%. :
Economic activity in July and August held around
the level
prevailing since last spring.
That's the way the United States
Department of Commerce sized up the business situation in its
latest

survey.

Orders

flowing to manufacturers

cited

were

major indi¬

cation of

"stability." After allowance for seasonal variations, new
business placed with producers has totaled between
$22,500,000,000
and $23,000,000,000 a month since
March, the survey said.
It
added: "This plateau is in contrast to the
previous 12 months
when new orders fell from almost
$26,000,000,000 to a low well
under $22,000,000,000 a month."
Steel production this week is at its
highest point since midJune, according to "The Iron Age," national metalworking weekly.

Mill production
estimates

continue to raise

men

steel

new

orders

their sights over

come

steadily at

summer

faster pace

than had been anticipated.

Ingot

production

this

\
week

scheduled

69.0%

'•

rated

capacity, up one-half point from last week's revised rate of 68.5%.
Ingot production index is estimated at 102.2 (1947-49=100).
There

increasing signs that production will continue1 its

are

slow but steady growth of the past few weeks and
the rate of
climb may accelerate next
month, as steelmakers are talking now
of operating in the 80%
range during the fourth quarter, states
this trade authority.

Another
brisk

trade

important
winds

this

steel

weathervane continued

week.

"The

indicate

Iron

Age" Heavy Melting
Composite Price remained unchanged at $30.17,
high
point for the year. The scrap industry this week recorded further
price advances not yet reflected in open hearth
steelmaking
grades.
Steel Scrap

barometer of overall economic

weather, the steel picture
Ingot operations are tied closely to new order
(pressure is high for fast delivery), and current increase
in steel buying is not limited to
any one industry.
Rather, it re¬
is

encouraging.

volume

flects

general

quickening of overall metalworking activity, it

observes.

•

The much talked-about flood of automotive
orders still hasn't
appeared, but this shouldn't be taken too much to heart.
The
automotive buying

picture, this trade magazine asserts, is brighter

than it has been painted.

Automotive steel
not

yet

high,

some

buying is

flat-rolled items and
Initial

steel

light side.

While volume is

have

stepped up purchasing of
bars and parts suppliers are
buying.

some

buying for

There

the upgrade.

automakers

new

model

traditionally

the

just too many problems that can crop
up
when a new model goes into
production to justify heavy steel
buying, particularly when steel is easy and deliveries fast. The
two biggest producers, Ford and
Chevrolet, have the most com¬
plex changeover problems.
Warehouses
recent

are

months.

limits.

are

battling to regain customers lost

Latest

move

Aggressive selling

seems to

general

mills in.

shifting of quantity

be paying off.

In the automotive field a
13.2% drop in car output last week
—the eighth decline in a row—established
the industry's switch to
1955 models as the most
costly changeover in five years, "Ward's
Automotive Reports" stated on
Friday last.

Scheduled to leave domestic plants the
past week were 50,161
against 57,716 a week earlier. Not since
1949, when the low¬
est five-day point in
changeovers was 36,613 cars, has: such
depth been reached.

cars

ansib

1953 the

while

through the pipe at a very
high pressure.
A great number
of these are required. While this
will surely penetrate the pipe it

INCORPORATED
37 Wall

Index

hole

can

FOUNDED 1890

Price

Auto Production

Business Failures

poorest five-day volume during changeover was
52,277 units, while in 1952 it was 86,403, in
1951—62,048, and ik
1950—95,865, according to this statistical agency.

caJhg,

„*

Retail Trade

Commodity Price Index

cone-shaped explosive unit is low¬
to the right level, and deto¬
nated in such a way that the full
explosive force applies at
the
apex of the cone,
and blows a

ered

Massachusetts Turnpike Authority

Production

Food

and

sev¬

fails

in back of the casing

enter

(formation side) of the

was

attempt

eral

expanded the casing in

manner

back

now

bearing sands

and money.

caused

Carloadings

could be very dangerously ex¬
plosive,
and
necessitate
costly
cleaning out or drilling out of the

* ,

Electric Output

State of Trade

would flow back.

blow
did

duced.

somewhat

troduced.

take

nitroglycerine in the then
shallow wells, first blocking off

duction

at the rate we're presently
up the stuff.
But these
predictions assume, from year to
a

plode

gobbling

quality;

oil

toddling steps toward a
the ingenuity of man
has devised certain techniques.

years

year,

of the

refinery,

Muscovite

from

the first

minions).
The
U.
S.
produces
about 10% less than it
consumes,
thus keeping an immense fleet of
tankers

beds

oil

product could be
acid, or the sand (in suspension),
gleaned, because the limestone or
into known or proven pay zones,
sand
formation
was
too
tight. some
system
was
required
to
The oil was there, in the lime¬
drive a hole, or rather a series of.
stone or sand, but production suf¬
holes, in the casing, so that the
fered from poor connection be¬
treating solution could be pushed,
tween the pores—low permeabil¬
out from the well to the forma¬
ity. It stubbornly refused to flow
tion and the oil follow it back to
toward the casing.
To overcome
the well. A way to perforate the

for

oil

series

has

This

States

now consumes over

the

Russia

year

1946-51.

years

carried

drenched

which

» f •

one—the magnesium

new

Steel

The

gasoline mixture or, more recent¬
ly, ordinary c r u d e, chemically
stiffened) was pumped into the
ground under great pressure. This

re¬

* f

this,
solution
a jellied
By

are

The technique

suspension in a
(this solution could be

and the methods in sight for maximizing oil flow from

producing wells, including

"Hydrofrac."

called

sand

Enterprise Economist

serves ,

fields).

By IRA U. COBLEIGH

Some comments

Redwater

and

limestone

•

lated

methods

production

(acidizing

many

stimu¬

bands

sand fracturing) fail

Continued

page

"Ward's said that changeover operations
continued last week
at

30.

Chevrolet, Pontiac and the four Chrysler Corp..

car

Kaiser and

divisions,

Willys continued their shutdown started June
addition, combined Oldsmobile-Buick volume dipped 38%
adjustment to the September program.

In
an

The
truck

reporting service added, however, that

volume

fall-off

from

the
the

pected this week.
Scheduled

past

week

held

the

over-all

preceding week to 6.2%

23.6% .gain in

domestic

with

output

upturn

ex¬

output

week

66,957 cars and trucks
against 71,358 the week before and 132,329 a year
ago.
The up¬
turn in trucks stemmed from
higher Chevrolet volume following

ago

were

scheduled shutdown

during ^a part of the preceding week:
Reflecting the changeover pattern, Ford Motor Co.- took 63%
of United States car output last
week, General Motors garnering

52
4-'

Continued

page

Volume 180

Number 5364

The Commercial and Financial Chronicle

...

Observing proceedings and discussion

at annual

off the hook" of

•

adopting immediate decisive policy.

WASHINGTON, SEPTEMBER

Executive Vice-President,

"Mother,

{

Asserting

may I go

in to swim?

your clothes on the
hickory
But don't go near the
water!"

nursery rhyme to characterize the
hesitancy of
standing on the edge of convertibility, Mr. M. W.
Holtrop
Holland, Chairman of the Board of Governors of the Inter¬
'

have sound
In

to fear

reasons

bad cold?

here

provide

stemming from Mr. Butler's definitive

the

need

for

further

delay;"arid/"'

the other

hand, from skepticism in regard
here and elsewhere; has been
the $64 question
pervading these corridors as
thereto

voiced

to whether Britain's

decision should be taken to
has been permanently buried

that

mean

con¬

by those who only

give it

lip service; or, on the other hand, whether we will in
good
faith be edging toward it on a de
facto in lieu of a formal basis,
with the arrival at the desired
goal only a matter of time.
Are the Britishers' professed fears
valid; or are they afflicted
with hypochondria, and bereft of the
will required to get well?
Will the British ever deem the time to
be ripe? '

••

•

Germany's position, with its implication about British
stalling,
enunciated here by her economics
boss, Ludwig Erhard,

was

follows: "Doubtless not all member countries of the Bank
and
a position to make their currencies
convertible to the

Fund are in

same, extent or at

the same rate of speed, but neither can there
be any doubt that in a
large number of countries the basic condi¬

tions for convertibility are
actually present.
'If we are to post- "
pone the transition to
convertibility until the ideal pattern of all
conceivable conditions in all countries is
achieved, we shall never
.

held

■

the;,
this V:

Bridges

about

the

sincerity of
Britain's professions, and hence about the
convertibility timetable,
depend'.en an objective appraisal of the obstacles there and in
other countries.
The

here

British

...

opposition

by Mr. Butler, is based

drug

addicts,

mind

devise

can

■.

Spahr

was

But

this

permitted

close without any re¬

ings

In the House

held

were

hear¬

the companion

Prior to the introduc¬

tion of the

Bridges-Reece bill in

bills

session
had

House

been

human

similar

Congress,
introduced

body, there
for

excuse

diseased

currency

healthy blood¬

sound

the

by Representatives Buffett

not

monetary
one

possible opportunity.

our

case

such

opportunity

continuing down to date.
that

the

Administration

new

a
higher type
understanding and responsibil¬
ity in respect to our people's mon¬
etary system than was shown dur¬
ing the- two preceding decades.

But

such, unfortunately, has not

heen

the

Officials

case.

ernors

tem

of the Federal Reserve

have taken the

irredeemable currency is better
a
redeemable currency for

than
our

people at this time and for

and

the

regrettably, the latest session

Congress provided evidence to

the effect that the
tration

far

is not
the

new

Adminis¬

good doctor in

monetary bloodstream

of this nation is concerned.

Bridges offered

Sena¬

sound

enamored with the

effects

and

possibilities

intoxicating

assumed

pre¬
were

beneficial

the

drug of irre¬
that his pro¬
posal to save our people from the
ultimate effects of that subtle, but
deadly, drug seemingly yielded no
positive
beneficial, result
aside

deemable

currency

from

the

opportunity

provided

posite

reasons—Dr.

Burgess, for
because our eco¬
situation
is
not
good

Treasury,

nomic

enough, Mr. Martin, for the Re¬
serve Board, because it is not bad
enough.
Also of significance is
the fact that Dr. Burgess's defense
of

irredeemable currency as a

Treasury official stands in direct
conflict

with

behalf of
deemable

his

prior

currency

To the obstacle to

sound

currency

Treasury and Federal Reserve of¬
ficials must be added the office of

bill.

any

♦An address
eon

of those bills.

August 20, Senator Bridges
by Dr. Spahr at

Obstacles Which
the People

lunch¬

meeting of the John Erickson Society,

Engineers'

Club,

New

York

City,

Are

Depriving

of the United States

Sound

but

none

them

President, or perhaps one
say Presidential advisors,

since Dr. Burgess stated
in his
opposition to the Bridges bill that

his

views

were

"in

Our irredeemable currency sys¬

tem

provides
■'

the

United

Continued

We wish to
our

announce

the

moving of

main New York office to the 20th floor

120

1956, and probably to be held in the fall

BROADWAY

New York 5,

the opportunity given to foreigners to

convert their sterling into
the possibly brief period before the advent of a
Labor Government which would take away that privilege.
But a second "political" consideration, namely, the risk of
public unpopularity in the removal of controls, pre-election, is
questionable. Surely it is not inconceivable that a forthright
position for correct policy would win out. In any event, there is
no guaranty that
such political foreboding would be eliminated

N. Y.

during

Telephone remains unchanged: DIgby 4-4141

two-year off election.

If the Conservatives
might still be "politically" restrained from
taking the step; and there surely is grave doubt about a Labor
remain in office, they

So here,

Walston&Co.

elsewhere,

"why is later any more likely than now?"

it not ironical that the British, who always

bait the United States Executive Branch for letting high

influenced

political

expediency,

and with greater subtlety and
The consideration of

are

also

thus

policy be
motivated,

surreptition?
can

far-reaching. We refer to President Black's important
proposal on behalf of the Bank, soundly pleading for curtailment
competitively expanding export subsidies via suppliers' credits,
which, in opposition to the Capehart proposals, will probably be

by political considerations.

;>
*

Continued

page

"W tt

-»

Salinas

Phoenixville

San Diego

Brooklyn

Lugano (Switzerland)

Philadelphia

San Francisco

East

Modesto

Pittsburgh

San Jose

Erie

Orange
.

"
.

New York

Pomona

Santa Ana

Portland

Seattle

120

Waldorf-Astoria Hotel

Pottsville

Stockton

Harrisburg

1370

Riverside

Vallejo

Sacramento

Yakima

Hartford

September 27, 1954
.

Pasadena

Fresno

of Great

Britain, possibilities of achieving converti¬
bility are mixed. Germany and the Benelux countries are in the
easiest l position of dollar liberalization.
Even if Britain delays

Long Beach
Los Angeles

Eureka

Convertibility Possibilities Elsewhere
Outside

Commodity pxchanges

Beverly Hills

blocked

Members New York Stock Exchange and other leading Stock and

Bakersfield

politics in another instance here

seen

States

page

One of these considerations appears to be valid; in the form of

accordance

with those of the White House."

Currency

Various obstacles, thus tar over¬

Sept.

whelming,

1954.

of 1955.

Incidentally,

honest and*

provided : by :thel

government ever being pressured into it.

his

Treasury official
in the present Administration.

blocking Britain, not openly voiced,
political consideration—with a general election on tap before

re-,

as a

The other major obstacle

one-

arguments

gold standard and

appointment

the

major reversal in such policy, will there not always be

by the

indefinite future time, but for op¬

convertibility step, as voiced
the allegedly continuous inade¬

concerning its permanence?.

even

Sys¬

position that

should

emphatically on complaint about American tariff policy.
reply thereto it must be asked, irrespective of the justifica¬
whether there will not always be ground for
complaint, or at least great worry, in this area. Even with the

dollars

the

Treasury and of the Board of Gov-,

others, to offer constructive actual
testimony in support of the Bridges

tion of this argument,

the deadline of the end of

was

demonstrate

various monetary economists, and

But in

is the

the
on

at least hoped,

but more

obstacle

money

the position taken by our Federal
Government beginning in 1933 and

Nebraska, Reed of New York,
Hale of Maine, and Hiestand of
California; but no hearings Were

23,

honest

has existed since the reopening of
the banks in 1933. Unfortunately

scription; but his associates

Reece bill.

this

sound

valid

earliest

tor

port being made by that subcom¬
mittee to the full committee or to
the Senate.

never

the

Senate.

bloodstream with

Congress

in the

replacing

And in

States

analogous to

stream

bills, on
March 29, 30, 31, and April
1, this
year, by a subcommittee, under the
Chairmanship of Senator John
Bricker, of the Committee on
Banking and
Currency
of
the

to come to

properly served.

*•

gold

United

and

(presumably without a $5 billion raid on the Fund and/or
the U. S. Treasury) of dollar reserves outside of the United
States;

advent of

why they

ominous

and

sound

would

Walter

the 84th

Another
to

widely expected,

p
Dr.

bill "in

Congress and vigorously press for
passage." Although there was no

three other

"Congressional Rec¬
14666) that he intended

(p.

introduce his

the best interests of the people in
the field of money may be better

cur-; r

session of

ord"
to

quacy

fear

employ

every argument which the human

gress, perhaps in the next session

bill, and

rency

that one's conclusions

seem

manner

drug

currency
they
it and, in the

embrace

stated in the

^Inasmuch

gold

deemable

thev

standard-re-

The Obstacles

It would

taste of the

corrupting

irredeemable

held

attain that goal; it seems to
me, on the other hand, that the condi¬
tions for it were never so favorable as
at this phase of a brisk

business activity throughout the world."

and

during the latest session of Con¬

given

are

outward manifestation of vigorous
pressure
for passage^ of his bill

■

tion intends to

policy pronouncement at the early proceedings

now

of the world's monetary authorities
gathered here.
.
.
-

vertibility

'■

Administrafor

array

And

people

quickly

equilibrium.

cur¬

■■

entering the sea, Chancellor of the
people of
Exchequer Butler, the man' in the key posi-*:;
nation with a.
tion, added the twin simile clearly depicting
redeemable ;
the basic conflict
underlying the extended dis- "
> urrenc y.,
cussion of convertibility's status
engaged in by *
.Searings were;the

May

(

publican

feet before

Wilfred

sound

justify confi¬
dence that the

bather to test the water with his

summer

for

in
the United States
is
shrouded in uncertainty. There ap¬
parently is no basis at present to

replying that England's custom is

outlook

rency

Fund, inquired just what it is that holds them
back; whether they are only out for a flirtation
with
convertibility, or whether they do really

the

self-liquidating trans¬

should not be deprived of it.

Reciting this

$35

of credit

One of these obstacles is the old
and well-established fact that once

insidious

economic

rate

uses

The

•

national Monetary

is, a
gold at

actions.

currency

Treasury Department, Dr. Spahr
by Congress on monetary reform. Holds wise
use of
savings becomes a problem, because there is no pro¬
tection against further depreciation of the dollar.
Concludes,
a Managerial State and irredeemable
currency are enemies of

limb,

with

ounce,

attacks inaction

countries
of

system

our

fine

confined to

Communists formerly in the
~

Hang

Monetary Policy

which is fostered by the
Administration and Congress conforms with the desires of the

darling daughter!

per

Economists' National Committee

29.-—

Yes,

i
"

bloodstream—that

currency redeemable
the present statutory

Professor of Economics, New York University

World Bank

long-distant future; with the world meanwhile
edging uncer.tainly toward an informal uncertain shadow-land of de facto
transferability. Says turndown by British has gotten Italy and
Ffauce

monetary

Mr. May interprets British posiconvertibility postponed to indefinite

are

By WALTER E. SPAHR*
,

and Fund governors'
meeting,
tion as indicating formal

;

our country,
preventing our people frotq
having the benefits of a healthy

Outlook foi Sound Money in U.S

By A. WILFRED MAY
I

(1265)

the best interests of

Fluting With Convertibility
.*

Broadway

Oakland

(1266)

The Commercial and Financial Chronicle

30,1954

Thursday, September

...

■'t' i

in trade and finance secured under

in this matter—took the initiative

progressed in the
I sometimes
wonder whether the extent of the
advance of the-United^ Kingdom

regional arrangements

towards

And

This Is Not the Time

For
Chancellor of

Convertibility!

Britain's ranking finance

tended
must

official maintains

freedom

for

trade

can

with achievement of necessary

equilibrium

nearly ten

now

the Fund

was

since
the Fund

But

years

set up, and

has not yet come to play in inter¬
national affairs the role which its
founders in¬

regional

arrange¬

have

all

expres¬

think

now

are

abstract

for
a

it,

Fund
its

what

own

bers

the

sources

filled
to

seems

to have the

merits

American

the

Constitution, in that it

written,

and the

But up

adjust-* there

ing itself.
me

value

the

British

Constitution, in that it is
ever-evolving. And, therefore, we
have to have in handling its af¬
fairs something of the wisdom of
Jefferson
and
the
original and
antiquarian quality of Simon de

aid, and
tional
and

very

there

and serious

with
re¬

oscillations

two
gap,

deep-seated

imbalance in interna¬
It

payments.
sensible

natural

was

these

circum¬

stances to break up the worldwide

problem

into

manageable

parts, and this has been done very
successfully in the regional or¬
ganization, such as the sterling
and

area
am

the

OEEC,

Chairman.

•

of which

-■

Montfort.

First,

past.

Multilateral

absence of

•unanimity among its members, and

particularly, if I may say frankly,
among the major members, about

suggested

should

from

come

the
than

climate
it

coast

that

jump

country

somewhat

here-^-and

from

speak not as young girl, of
which I have very little experi¬
ence, but as the father of a family,
it's usual for the father of

land

the east coast of Eng¬

the

the word

underline

summer—I

"summer"—at least

fore entering the sea
water with his feet.

wisely

laid

abroad.

One

System Approached

Now, in this

year,

without neg¬

lecting the experience we have
gained, and using the existing or¬
ganization, we have come nearer

cause

That I suggest would be a
dent course for some of us.
,

Leaving

aside

this

pru¬

considera¬

tion,

deep human considerations.

want

Member

before

put

countries—and

you

Government—do

speak

not

wish,

do we intend, to seek equilib¬
rium through severe deflation and
nor

the

accompanying

employment.

scourge

of un¬

Countries nowadays

committed by national policies
and
international
obligations to

are

maintain

high levels of employ¬
ment. And perhaps this has been
the most significant advance in
social and economic affairs in this

century.
link

And

here it

is that

efforts with the needs of

our

the people, and so the architects of

modern i system involving
freedom
of
currencies, the

the

expansion
of

of trade, and stability
international
payments must

combine

these

much-sought-after

than at any time since the end of
the second world

higher

.made toward its objectives.

ditions

which

Monetary
♦Statement

Mr.

the

Butler at

dis¬

the

International

Monetary
"Fund's Annual Report, Washington, D. C.,

Sept. 25, 1954.

Fund

mind—that

the

to the

con¬

International

founders

had

is, conditions in which

multilateral system of payments
can be envisaged.
a

adopt policies condu¬
the expansion of trade, be¬
have

standards

life.

the founding
in

■

views of international experts and
central banks with the hopes and
how

that

the work

fathers

march

must

gether.

held

upon

time

our

must

trade and

forward

to¬

the

shall

common

man.

this?

Well,

And
we

Convertibility,

ferred

journalistic

hear it

corridors

re¬

seems

interviews,

and

be regarded as a sort of terminus.
But it is

the

really only the beginning
I regard it as a

journey.
in

reward

efforts

our

suc¬

ceed to create the right conditions

for

healthy expansion of inter¬

national

trade

certificate that
to

continue

should

are

regard

down

how

Well,

the

be abV

road

same

progressing?

Europe. I

must

clear

advance

Well,
bility

sell,

nor a

solicitation of offers to buy,

any

of these Bonds.

The offering is made only by the Prospectus.

New

offer to

under

group

realized

EPU

ments

chairmanship.

that

the

OEEC

and

transitional

arrange¬

fuller

multilat¬

towards

eral

system, and so we are
giving close consideration in

now

the

OEEC to the really intricate prob¬
lems involved in the move in Eu¬

rope

tainlv

Wider system.

vital

It is

cer-

and con¬
solidate the liberalization of trade
side Europe, and with patience we
in ^'urooe will discover the

Prac¬

tical solution to the difficulties of
transition

OEEC

frpjn the regional

worldwide system.

We have

certain

made

considering

the

nrogress

provision

credit, for example, to sustain
vertibilitv.

freedom

the

trade, and

have

possibility

European

there, will

role

for

this, and

cpn-

about
of

have considered the

the

sooken

liberalization

and

fund.

important

Fund

o'av

discussions will

all

nec¬

between the Fund and the

essary

countries when

European

field

our

ated

exporters
the

United

Kingdom.

towards

advances

Similar

have

trade

made

been

free

others

countries, ndtably the OEEC coun-?
tries, which have been progres-v
sively extending to other areas
the liberalization of trade built up
in

Europe.
Progress Thus Far
this adds up to

All

most en¬

record of progress to¬
worldwide system of mul-,

couraging
wards

tilateral

and

trade

payments,

I must stress that further

irreversible

and

but

decisive

steps to freedom

depend oh reciprocal action

must

by others and on reasonable pros¬
a
dependable and con¬
balance in international
payments and trade.

pects

tinuing

Now, what about the improved

pattern of international payments
and

general expansion of world
Chapters 2 and 3 of the
Report bring out these im¬
provements very clearly, the im¬
provements in payments and the
reserve position of countries out¬
side the United States, and the
greater fveedom in the payments
field,
and
the improvements of
trade?
Fund

current

lar

capital accounts. The dol¬

gap

by the bal-

measured

Pr>rn

non-aid

and

nrivate

government transactions had

dis¬

appeared in 1953, and this balance
on current account has continued
into

reduced

1954,
despite the
of United States

level

business

These favorable developments are
due in part to

want

way

that European

stress

cooperation

regional basis is

inconsistent with, but

complementary
in

world

the

and,

IMF

to,

par¬

organizations,
the

a^d

GATT

is known in this gathering,

the GATT is about to be reviewed.

Europe's Partners Should Provide

Driving Force

the flexible use of

monetary and

fiscal weapons by
the
United

the

other

the

free

countries

world.

Thus, they have made

States.

concerned

The

Common¬

and

kept their economies healthy and
strong, and so in 1953 we have
seen
clear evidence of the great

in supplies from
a reduction
the deoendence of the rest of

competitiveness

non-dollar areas, and

world

the

example
cotton, and machinery.

the Commonwealth and the

United States of America, and all

outside

countries

supplies,

Then we think of Europe's part¬
ners,

Mortgage Bonds, 31/4% Series due 1984

opportunities for
other countries
expanding market of the

enlarged

the

First

importers can buy where

want. And so these moreliberal trading practices have cre¬
they

has developed its thoughts a little

such

nondollar

now

activity and United States imports.

ticipation

Columbus and Southern Ohio Qectric Company

the dollar

the

Eu^one

actually

$10,000,000

with

than

tions

preserve

and payments already secured in¬

the

high degree of liber¬

right.

conceived from the be¬

were

ginning

Issue

well

have discussed converti¬
the ministerial
OEEC

must

of trade with

prevails. So restric-*
are now the exception rather
the rule and over a very wide:

practical

I
an

and

world

the

controls on

and

individuals

imports. Most of these restrictions
have
been
progressively swept

further.
This announcement is neither

postwar period. There were con¬
trols on the consumption of pri¬
vate

away,

Convertibility Only the

ago

rationing pervaded our econ¬
omy. These were the relics of the
second
World War and sprang
from the shortages of the earlier

alization

But

We have in fact to reconcile the

fears

always

to build

are

that in the present Furopean con¬
ditions the atmosphere and the

some

dom

that other countries

was

would

First

the role of the Fund and the speed
with
which
progress
has
been

war

these

also

A few years

controls

and

the

to test

greater freedom and trade
is
fully realized

currencies

down certain pre-conditions.

be¬

prizes with high levels of employ¬
ment, increasing production, and

cussion

currencies,

every

There have been two difficulties
in the

been

girl

east

worldwide

of such

particularly for the United King¬

year or

proposing

to us

We have also

United Kingdom, and

movement towards freer trade and

finance

England, where
bathing is quite an adventure.

intended to

generous

was

1952 in

great help

Beginning

has

the

dollar

serious

Easy Task

are

system.

colder

equilibrium.

till the past

was

efficient working

bathe.

reserve

with

deal

Canada

easy or simple task to
the equilibrium necessary

where

all

payments

providing

mem-' round about that

make

—ever

Rt. Hon. R, A. Butler

Fund

internal

the

objectives. The

was

develop.

our

young

prevailing in the world

international

-The

entity.

It's

secure

sions of impa¬ operate in a world where the pat¬
tience. But the ? tern of trade was such as to as¬
Fund is not sure us a substantial equilibrium
some

and

see

credit, and

consolidate

Equilibrium
:

family

learn

cumstances

able to the Fund's

sterling area and the Com¬
monwealth—because our friends

cive to

liberalization

hopeful is that the economic cir¬

time,

need

policies.

no easy

good deal closer together.
What's more important and

Fund,

ex¬

this

But

in the

need

And I were for a long time after the
daresay that? Second World War quite unfavor¬
we

time.

can

widely.

We need to discuss

widely extended;

tended.

heard

the

which the freedoms

take

task

create

trade

task. De¬
clares United Kingdom does not intend to seek equilibrium
through severe deflation and accompanying unemployment in
the face of national policies and international obligations.
Notes encouraging progress made thus far, but states "further
decisive and irreversible" steps to freedom depend on recipro¬
cal action by others. Cites as present factors not durable and
lasting: large-scale U. S. aid, her heavy overseas military ex¬
penditures, and discrimination against imports from dollar
area. Urges period of
consolidation, and proceeding with pru¬
dence as well as assiduity.
It is

is to

example, for the consideration
of the
many intricate
problems
facing Europe, We need time for

time is needed

constructive

ahead

for

Exchequer

the conditions in which the present

to create
ments

the

lies

conditions

By the RT. HON. RICHARD AUSTEN BUTLER*

)V
)f

the

so,

which

for

grain,

hope that these changes
spring from increased pro¬
and productivity outside

We
which

duction
the

States will be

United

contin¬

the

current

wealth, the United States, and the

Price 102.915%

may

be obtained within

any

the

therefore,

state from any

persons to whom the undersigned
legally distribute the Prospectus in such states.

Ladenburg, Thalmann & Co.

Fulton, Reid & Co.

Johnson, Lane, Space and Co.
Incorporated

September 30, 1954.

place

Coffin & Burr

Emanuel, Deetjen & Co.
Fauset, Steele & Co.

known

made

very

con¬

progress in 'the sterling
have had a series of
one

Sydney,
I

year.

the

Chapter 2 of

what

world's

trade.

Therefore, I must urge upon this
gathering that a mood of the up¬
most responsibility is essential in
deciding upon the future of tHs
great concept. b°sed as it must be
on
the cooperation and stability
of its members.

This has
improvement

Stafes.

capital and reserve position
nondollar area. As shown

took

speak

the

in the

between

its ae?regate payments

the United

to much needed

onlv

the banker for the ster¬

led

which

area, and I speak as one who
realizes that sterling
finarces

half

with

that is,

surplus

Australia,

ling

about

stantial

annum

have, too,

conferences,

Incorporated

Reynolds & Co.

and the rest of the world over

2.000 million and 2,500 million per

this

Pressprich & Co.

is.

that

balance

driving force for moving towards
greater4 freedom in trade and pay¬
We

Higginson Corporation

ments.

area.

R. W.

trade.

unexpected

The

past two years has meant that the
rest of the world has had a sub¬

siderable

Lee

world's

not

some

these countries should provide the

of the undersigned only by
may

account between the United States

80%

plus accrued interest from October 1, 1954

Copies of the Prospectus

ued.

OFFC countries account for

the Report, the

officiaK^old and dollar reserves
of

outside

countries

the

United

$3,500 million
December, 1951, and

States increased bv
between

March,

But, even so.

1P54.

consider the

if we

adeauacy of the re¬

serves

outside of the United States,

these

are

quate

selves for
to

still

give
*

general

inade¬

support by them¬

decisive move forward

convertibility, for these reserves
many

c/ases still amount to a

Volume 180

Number 5364

The Commercial and Financial Chronicle

(1267)

small
nual

proportion of the total

an¬

imports.

continuing discrimination against
imports from the dollar area. *
: A

And
such

international

so,

those

held

national Monetary
of

come

by the Inter¬
Fund, will be¬

increasing importance

move

Some

reserves,

forward.

Existing

Not

Supports

However,
field

this

ments
as

for

cannot

durable and lasting.

example,

United

great

the

States

scale

world,

shows,

international

which

aid

still

the

trade

and

payments and
particularly in the United States
with

payments

the

rest

stable

factors at work in

some

national

creased

the report

are

regarded

These are,
the

which

giving

rest

the

heavy Upited Stafes
military expenditure overseas, in¬
cluding off-shore purchases, and

factors,
production

countries and

such

trade

there

going

will to

relatively equivalent
period, bal¬

considerable

of payments

world

in¬

not

coun¬

difficulties

re¬

strictions," and contraction of

forward
the

world

power,

States

Europe

risks

ar£

Europe

with

expansion
a
major
namely, the United
of

economy

activity in 1953-1954.

that

the

America, is static;

part

balance

And

think

members
about

the

feel

can

say

when

they

United States

holding its

all
see

econ¬

and

showing
signs of maintaining its improve¬
omy,

own

want

add

this eulogy the very definite feel¬

remember that the rate of expan¬
sion in any country and the ratio

tration

all look for

decline in the United

the

expansion

Interest

between

has

taken

and effective

one

such

measures

prompt

to halt the

States level

ing

have, and that is that

ress

liberal

earning

rest

marked prog¬

the

all

Fund

help in all

collective

our

the members
wards

greater

tices and
ord

our

freedom

policies, 1953
for

year

currencies

effort

progress

the

was a rec¬

Fund

members

sales
and

has

been

seen

increasing service

and

bers in the Fund as
of reserve.
I think

membersi
of

mem¬

second line

probably all this is the

Continued

trade policies which

record

greater, confidence

page

-i

$30,000,000

.-Af

OHIO

w.; i
..

6%, 1%, m% and 1.40%Major Thoroughfare Construction Bonds, Series "A"
Dated October 1, 1954

Due March 15 and

the denomination of $1,000 each, registrable

Coupon bonds in

principal and semi-annual interest, March

Ohio,

principal of and interest

operation

or use

of vehicles

the bonds

are

Constitution for the

setting aside of

license taxes, levied by the State of Ohio, relating to registration,

sufficient amount of said fees, excises

license taxes each

<♦■■...

•

Amount

£1.660,COO

■

March 15

1956

1,665,000

1958

1,665,000

year

to pay bond interest and principal becom¬

1960

1,665,000

1961

1,665,000

1962

1,665,000

1963

1,665,000
y

Price

Yiell

•

1,670,000

1957

1.10%

1,670,000

1959

1.20

1,670,000

1960

1.30

1,670,000

1961

1.40

1,670,000

1962

1.45

1,670,000

1963

1.50

1,670,000

1964

'A%
VA%
VA%
1 %%
1.40%,
-1.40%

Rate

•95%
100

1.10%
1.20
1.30

1 VA%
1.40%
1.40%

1.40
1.45

1.50

(Accrued Interest to be Added)

and received by

us,

and subject to the approval of all legal proceedings by

Attorney General of the Stale of Ohio and Squire, Sanders & Dempsey, Attorneys, of Cleveland, Ohio. Such

any

Union Securities Corporation

menu;

of the offering circular, copies of which

State in which this announcement is circulated, from only such of the undersigned

dealers and

are

may

be obtained in

as are

registered

offering these securities in compliance with the Securities Laws of such State.

C. J. Devine & Co.

Fahey, Clark & Co.

Merrill, Turben & Co.

Field, Richards & Co.

Ball, Burge & Kraus

Baxter, Williams & Co.

The First Cleveland Corporation

Fulton, Reid & Co.

F.W.Craigie&Co.

Aubrey G. Lanston & Co.

Wm. J. Mericka & Co.

Stroud & Company

Incorporated

R. L. Day & Co.

Incorporated

Shearson, Ifammill & Co.
First Securities Company
of

Olderman, Asbeck & Co.

Bfewer, Heitner & Glynn

Ginther, Johnson & Co.

Malvern Hill & Company

Incorporated

John W. Clarke & Co.

E.F.Hutton&Company

Incorporated

Andrews & Wells, Inc.

Dempsey-Tegeler & Co.
.

Magnus & Company

Weeden & Co.
'

Blunt Ellis & Simmons

Chicago

Kaiser & Co.

Yield

6%
1%
1%
v/4%
1 VA%
1 VA%

1958

offering is not wade hereby, but only by

Iiayden, Miller & Co.

1956

1,670,000

We offer these bonds'when, as and if issued

Clark, Dodge & Co.

Price

Sentemberl5

$1,660,000

placed. No public reoftering.

the

Amount

■

Due

100

■

1964

6%
6%
1%

1959

1,6(5,000

Pate

1957

1,665,000

'to

Cleveland, Ohio.

AMOUNTS, MATURITIES, RATES, PRICES AND YIELDS
Due

to fuels used for propelling such vehicles. Provision has been made by law and by the State

without other appropriations.

Coupon bonds payable

The Northern Trust Company, Chicago, 111., at The Ohio National Bank, Columbus,

at The /Union Bank of Commerce,

payable from fees, excises

public highways,

ing due in that

year,

only, and exchangeable for fully registered bonds.

September 15, 1956-1964

15 and September 15, at office of the Treasurer of State of Ohio, in Columbus, Ohio, at The National

City Bank of New York, New York City,

The

principal

Nelson, Browning & Co.

Doll & Isphording, Inc.
#

Heller, Bruce & Co.

New York Hanseatic Corporation

Rodman & Renshaw

Waited,Woody&IIeimerdinger J.A.White & Company Rand & Co. Schaffer,Necker&Co. Fairman,Harris&Company,Inc.
....
.

September 50, 1954

for

repayment by members.

Exempt, in the opinion oj counsel, under present laws, from all Federal Income Taxes

to¬

prac¬

New Issue

STATE

the

this?

in the United States towards

the

Function of the Fund
can

There

now

And so, we have been gratified
that the United States adminis¬
v

The

How

And

world.

the

reassured

future

the dynamic

opportunities

due in great

was

maintenance

would increase the dollar

health and strength of the United
States economy.

Hails Halt in U. S. Decline

world

the

United

provoke

international

The fact

didn't

payments crisis

ment.

itself and

reduction

activity

general

likely to follow.

are

while

overseas.

has: certainly fortified
helped the rest of the
through the expansion in
European production which has
taken place recently. But we must
-

ance

increased oppor¬

over

States

expansion in the major

tries

the

certain

tunity to trade, and
invest

pay¬

one

difficult and perplexing

dependable balance in inter-;, puzzles for governments.

wbrld, requires, therefore, in our
view, the substitution of some

Durable

there

countiy and another form
the most

(1268)

'■■'■f'-'x.r

»'•

''' (.

The Commercial and Financial Chronicle...

Public
&

Service

Co.

Hampshire—Analysis—Ira

of New

Cement
Analysis
Square, Boston 9, Mass.

Schick,

—

Doll &

It is

&
Nelson,
Browning & Co.; New York Han¬
seatic
Corporation;
Rodman &
Renshaw; Walter, Woody & Heimerdinger; J. A. White & Com¬
pany;
Rand
&
Co.; Schaffer,
Necker & Co.; Fairman, Harris &
Company, Inc.; Cqurts & Com¬
pany; Dwinnell, Harkness & Hill,
•Inc.; Farwell, Chapman & Com¬
pany; Freeman & Company.
Barcus, Kindred & Company;

Co.,

Wall

New

Street,

Fruit & Steamship Co.—Memorandum—Barclay In¬

Standard

the following literature:

send interested parties

Co., 39 South La Salle Street, Chicago 3, 111.

vestment

Twin

Cluteh Company

Disco

"Business
the

Behind

Market

Issues—Selected

list—Francis

Pont

Mason

Co., 1 Wall Street New York 5, N. Y.

Co.—Analysis—Cohu & Co., 1 Wall

Street, New York 5, N. Y.

will be pleased

understood that the firms mentioned

Colorado Power

—
Analysis in current issue of
Digest"—Loewi & Co., 225 JJgst

Financial

and

2, Wis.

Street, Milwaukee

In the

issue is

same

analysis of Emhart Manufacturing Company.

Canada—Monthly commercial letter—Canadian Bank of Com¬

•C. Haas & Company;

Si¬
Thornburgh
Company;
Watling, Lerchen &
Company; R. H. Brooke & Com¬
pany; Clement A. Evans & Co.,
Inc.; Gottron, Russell & Co., Inc.;

Commerce, 25 King Street, West, Toronto, Ont., Canada.

Incorporated; Ross, Borton &

Canadian Economy—Monthly report—Bank of

rities

Japan—Circular—Yamaichi Secu¬

NSTA

Co., Ltd., Ill Broadway, New York 7, N. Y.

Monthly Review—Trading data
listed

the

Stock

Toronto

Inc.; The W. C.

mon,

Montreal, Mon¬
treal, Que., Canada (New York office 64 Wall Street).

Investment Opportunities in

Company; G.
Park, Ryan,

Brownell

Grant

Business Development Department, Canadian Bank of

merce,

on the more than 1,000 issues
Exchange—Toronto Stock Ex¬

Notes

Graves & Company.

Gordon

Charles A. Hinsch & Company;

change, Bay Street, Toronto, Ont., Canada.

Shannon & Company;

particular reference to Nippon Oil
Co., Daikyo Oil Co., and Mitsubishi Oil Co.—In current issue
of "Monthly Stock Digest"—Nomura Securities Co., Ltd., 1-1
Chome, Nihonbashi-Tori, Chuo-ku, Tokyo, Japan.

& Company;

Oil Industry in Japan with

Over-the-Counter Index—Folder showing an

up-to-date

com¬

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

market performance over a 13-year period —
Quotation
Bureau, Inc., 46 Front Street, New

and

yield

National
York 4,
Profits

N. Y.

and

News

Plus

booklets

free

charge—Offer

The

Security Traders Association of New York entertained
the members of NSTA attending the Atlantic City Convention
at a most enjoyable dinner-dance on Sept. 26 at the Starlight
Roof of the Waldorf-Astoria. Music by the
Meyer Davis Orchestra.
On
Monday, STANY entertained the ladies at a special
luncheon at the Plaza Hotel, and on Monday and Tuesday morn¬
ing were hosts at breakfast at Eberlein's. Also on the program of
entertainment were a Circle Line boat trip around New
York, and
visits to the Hayden
Planetarium, N. B. C., United Nations, etc.
'

Service—Special

introduction

Digest—Booklet—Amos C.

tional Bank Building,
Values

Sudler

--The

trial

Year

Denver 2, Colo.

American Mercury Insurance
Dermott &

Brooks

Oil

Co.

—

advertisement
Convention

America in New York

HAROLD

National

Company—Report—Peter P. Mc-

Memorandum

—

for

NSTA

our

Supplement

the

City.

Piper, Jaffray &

120
M.

Cyril

of Georgia Railway Company — Analysis — Ferris &
Company, Washington Building, Washington 5, D. C.
Century Geophysical
Corp.—Bulletin—George A. Searight,
115 Broadway, New York 6, N. Y.

Advertising Committee,

Murphy

Chemical

Research

Corporation—Analysis—L.

Jackson

National

Convention

to holders of its $20 par
capital stock rights to sub¬
scribe
for
2,500,000
additional
shares on the basis of one new
share for each three shares held
fering
value

at Mackinac

Convention

Springs, California.

Company, Ltd., 132 St. James Street, West, Montreal, Que.,

1954.

transaction, which will in¬

First Boston Corp.

Also available

5, N. Y.

data
Joy Manufacturing and Standard Milling.
East

Tennessee

Natural

Gas

are

Company

Visking Corp.,

$30,000,000 Stale of Ohio Major Thoroughfare
Construction Bonds Marketed

Analysis — Smith,
Hague, Noble & Co., Penobscot Building, Detroit 26, Mich-

Gould-National

Forgan

Batteries,

Co.,

135

and 40 Wall Street,

Inc.—Analytical

South

Salle

brochure—Glore,
Street, Chicago 3, 111.

New York 5, N. Y.

Associates

associates submitted the high

Corporation

bid

for

$30,000,000

Telephone

Peter P. McDermott &

group

& Telegraph Corporation—Bulletin
Co., 44 Wall Street, New York 5, N. Y.

Investors Diversified

Services—Analysis—New York Hanseatic
Corporation, 120 Broadway, New York 5, N. Y.

spe

1.40%

(No. 174)

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

2023 First Avenue
National

City Bank of New York—Bulletin—Laird,

Olin

Mathieson

McKinnon,
Pacific

Chemical

Power

Light

Co., 122 South La Salle Street, Chicago 3, 111.

We Buy and Sell
•

issue

the

0.95%

from

The

net

1.3811%

bonds

the

prices

yield

1.50%.

are

interest exempt

on the
payable from fees, ex¬
license taxes relating to

cises

are

vehicles
to

fuels

operation or use
public highways,

used

for

propelling such

vehicles.

Sulphur Stocks

of
or

Uotmroi .fcatritics

Davine

approximately $582,000-,-

Dodge & Company; any commercial banking enter¬
Fahey, Clark & Co.; Field, Rich¬ prise in the country.
ards & Co.; The First Cleveland
National
City provides "retail
Corporation; Fulton, Reid & Co.; banking" through 71 units servic¬
Hayden, Miller & Co.; Aubrey G. ing the five boroughs of New
Lanston & Co. Incorporated; Wm. York. It has 57 branches overseas
Clark,

Mericka

Co.

Incorporated;

stock
R.

John

Clarke

Craigie

held

Co.; Shearson, holders
Co.; Blewer, Heitner
oldest,
Glynn; Blunt Ellis & Simmons;
Day

Hammill

Co.;

largest

Co.;

First

Member N.A.S.D.

Standard
■>

Mexican Gulf

F. W. United
Securities ers Trust

DEPENDABLE MARKETS

Members:

Security Dealers Association

Trinity Place, New York 6, N. Y.

I-

376

Through Research11

plus
"A

Green 9-0187

Office

Tokyo

booklets

Investment

will

sent

you

to ac¬
vastly
improved Investors Rerearch Serv¬
absolutely

ice.

FREE

you

Proven

packed

obligation

BOwling
Head

Positive

Program for 1954-1958"

Ask

Broadway, New York 6, N. Y.
Tel.:

securities

BOTH-FREE!

administers

"Profits

Japanese Stocks and Bonds

the

well as one of the
companies in the
States.
City Bank Farm¬

of
Chicago;
Ginther, and properties amountmg to about
Johnson & Co.; Malvern Hill &
$2 billion and in addition holds
Company Incorporated; E. F. Hut- approximately $5% billion in cus¬
ton & Company; Olderman, As- todian and
safekeeping accounts.
beck & Co.; Andrews & Wells,

Broker and Dealer

without

stock¬

trust

quaint

Troster, Singer & Co.

for

City,

Company

Material and Consultation

Pan American

trust

Both
•

2400

National

(Co., em.
•

countries, more than

in 19 foreign

Company Incorporated; any other American bank. City
Bank Farmers Trust Co., whose
Weeden & Co. Incorporated.
Stroud

income taxes.

will

000, not including unallocated re¬
Co.; Merrill, serves amounting to $50,000,000.
Turben
&
Co.; Ball, Burge
& This will result in the bank hav¬
Kraus; Baxter, Williams & Co.; ing the greatest capital funds of
C.

Principal of and interest

Gulf
•

of
and

of the bonds,
placed the 6% bonds
privately and offered the balance

regisration,

Company—Analysis—A. C. Allyn &

price

group

bonds

Corporation—Analysis—Thomson

reoffering

Upon

Bissell &

Wall Street, New York 5, N. Y.

resulting
of

cost

from Federal

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

State.

Company—Analysis—Carlson & Company,
North, Birmingham 3, Ala.

ci f i

for 6%, 1%, 1V4%

bonds,

interest

the
Kansas City Southern Railway Company—Bulletin

State of Ohio

Major Thoroughfare Construction
Bonds, series A, due March 15 and
Sept. 15, 1956-1964, inclusive, at
competitive sale on Sept. 28. The
100.9599%

International

Corporation

to capital and the
$81,250,000 will be
to surplus.
After the

remainder

transferred

clude:

Securities

Union
and

price.
proceeds, $50,000,000

the

added

will be

financing, combined capital funds
Union Securities of the bank and the affiliated City
Bank
Farmers
Trust
Companythe offering in¬

—

Freeport Sulphur Co.—Analysis—Laird, Bissell & Meeds, 120
Broadway, New York 5, N. Y. Also available is an analysis
of Kaiser Aluminum & Chemical Corp.

The group will

purchase all unsubscribed shares
of which up to 25,000 will be of¬
fered to the staff of the bank at
From

New York

outstanding

bank's

the

crease

the subscription

Canada.

Chrysler Corporation—Analysis—Bache & Co., 36 Wall Street,

1954. The sub¬

scription price is $52.50 per share.
The offering expires on Oct. 22,

10,000,000 shares, will be
underwritten by a group of 42 in¬
vestment firms
headed by The

Traders Association will hold its
Island, Michigan, in September.
will be held at El Mirador, Palm

Security

1955

the

1956

Bank of New

stock to

CONVENTION FOR 1955 AND 1956

The

The National City

York, largest commercial bank ini
New York, is today (Sept. 30) of¬

The

Broadway, New York City

Central

NSTA

City Bank Offering

of record Sept. 24,

SMITH, Chairman,

c/o Pershing & Co.,

East 7th Street, Minneapolis 2, Minn.

Hopwood, 115

Book

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

Scanlon

Committee

"Chronicle" from the Trust Company of North

Advertising

Company, New York City, for his work in

obtaining

Co., First Na¬

(Canadian)—Analysis—Ross,
Co., Ltd., 25 Adelaide Street, West, Toronto 1,
Ont., Canada.
Knowles

National

extending thanks to Cy Murphy, John C. Legg

Industries

Depressed

First Boston Gronp

Underwrite National

LIBBING

Stock Market Advisory service— $3.00—(regular subscription
rates $15 for 25
issues or $25 for 50 issues)—Dept. 5, Oscar C. Bartells, 100
Adelaide Street, West, Toronto, Ont., Canada.

Uranium

Com¬

Cincinnati Municipal Bond
Corp.; Cunningham, Gunn &
Carey, Inc.; Ein'norn & Company;
Hawkins & Company; Mead, Mil¬
ler &
Company; Middendorf &
Company; Parsons & Company.
pany;

Calif.

to Canadian

subscription
eight weeks

John Small.

J. W. Suarks & Com¬

pany; Berman, Selonick &

STANY'S POST CONVENTION ENTERTAINMENT

"Positive Investment Pro¬

Company, Santa Barbara,

Research

Investors

Markets

—

both

1954-1958"

for

gram

C-154,
Stock

Research

Through

Co.;

Co.; Magnus & Company;

Inc.—Report—Parrish
N. Y.
/

Southern

Heller, Bruce & Co.; Kaiser

Lerner & Co., 10 Post Office

York 5,

Recommendations & Literature

1954•.

Dempsey-Tegeler
Isphording, Inc.

Inc.;

Haupt

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

Riverside

Dealer-Broker Investment

Thursday, September 30i

with

ideas

of charge
the new,
and

t-chniques—

pages—SEND TODAY!
for

Offer

C-154

INVESTORS RESEARCH COMPANY

DEMPSEY-TEGELER & CO.

Santa

Barbara

California

Volume 180

Number 5364

The Commercial and Financial Chronicle

;v.

(1268)

recession was in part a process of of us. But, if we want both peace
readjustment;to this mistaken at-, and prosperity, we will learn how
tempt to keep prices high.
to live under a free working Law

We Can Have Both Peace and

-«*r

'■■■■•■

*i.

•

Work for the Consumer
Whether

Mr. Babson .contends that what

have learned from 1953

we can bare both peace and
prosperity if we
adjust ourselves to Jbe law of Supply and Demand. Calls
for intensified research on consumer attitudes, with * view to
creating wants and needs and make selling more effective.
Holds more Spending on advertising is required.

veloped. When
the sales

find another market rather

need more-than any-

vertising, prices
start
to-**~£aU,
thing in Jhis country If we want people go out and buy, and more
both peace and prosperity is a are
employed.
.

Demand..

Many people
have indicated
tn

kind of fatalism about

our

e c ono m

than

change than

change the weather,

Walston & Co., members of the
New York Stock Exchange and
other

FRANSICO, Calif.

—

Broadway, New York City.

to phone

seem

Montgomery Street.

viously with Francis I.
& Co.

was pre-

Pont

Eugene Catron Joins
Shields & Company

aPP®al to the government,
I forecast that research must be

Eugene H. Catron has become

...

prices

high

the face

...

Montgomery

Stock Exchange.-

of declining demand. Pretty soon wlth the tuncs- The Law of Sup- Hooker
inflation ballooned our whole ply and Demand will require Street, members of the Sari Fran- formerly
Eberstadt
price structure. > The subsequent flexibility and adaptability by all cisco Stock Exchange,

Mr. Catron

Vice-President
& Co., Inc.

feel

pros¬

can be
maintained

only in

NEW ISSUE

September 30, 1954

a war

economy.

Perhaps this is
Roger w. Babson

been

because it has

so many years

since

prospered without
that

2,500,000 Shares

have

A lesson

war.

will learn from the reces¬
sion which started in the summer
we

©f 1953 is that

can

have both

and prosperity if
adjust ourselves to the

peace

will

Law

must

The National City Bank of New York

Supply and Demand.
But
done

lot

of research

merchants.
who

These

determine

business.
dollar

bill

the

are

employment

wish

for

had

and
five-

I
recently heard say that he
would buy
a
new car
if only
someone would really try to sell
every

person

him one.

1929

Lessons from
World

During

the

-VV" ■">

(Par Value $20 Per Share)

•.

ones

have

\
1

Capital Stock

consumer

attitudes, on
finding out what makes people
buy, on how* to create wants and
needs, and how to develop ap¬
preciably more effective selling.
This
especially
applies
to
all

and

Holders of the Bank's

outstanding Capital Stock are being offered,the right to subscribe at
share for the above shares at the rate of one share for each 3 shares of Capital
Stock held of record on September 24,1954. Subscription Warrants will expire at 3:00 P.M.,
Eastern Standard Time, on October 22, 1954. '
;
'
The several Underwriters have agreed, subject to receiving opinions of counsel, to pur¬
chase any unsubscribed shares and, both during and following the subscription period, may
offer shares of Capital Stock as set forth in the Offering Circular.
y
#52.50 per

...

WarH

peace

years

from

1929

through 1940, we lost in
national output of both goods and
services better than $600 billions
when measured by 1953 prices.
This was about twice what World
War II cost ^us! Our Teal trouble

The Chairman
to

buying power of our
people failed to keep pace with
our
productive know-how. For
the Law of Supply and Demand
to work freely in peacetime, the
benefits

inventions

new

methods

must

and

passed

along to the worker iri the form
©f higher wages and to the con¬
sumer in the form of lower prices,
'

that the public

will be able to

buy the products of our increased
capacity.
This - surely
requires

recommending fthe increase in capital funds], the Board of Directors
continuing growth of the American economy, and

affirms its faith in the

the

new

of the Board, in his letter of August 18, 1954

the Bank's Shareholders, said in part:
"In

during those unhappy years was.
that

recognizes the responsibility of banking institutions to keep pace with the
expansion of the businesses which they serve. The growth of population and
national product, the achievements of research and of business manage*
ment, and the resulting needs for capital and credit, all point to expanding
demands for hanking accommodation. The increase in our capital funds
will enhance our ability, both as depositary and lender, to meet these de¬
mands. It will strengthen our position of leadership and increase our capacity to attract new business. It is in the interest of the shareholders, since it will provide a firm basis for continued growth."

spending more money on adver¬
tising. .

Out of our experiences

in two
that

World Wars we have learned

Supply and Demand,
although suspended during war¬
time, must never be forgotten. We
have, learned that only by cur¬
tailing civilian demand can we
meet military needs effectively,
and save as many lives as possible.
The trouble comes, however, when
the Law of

try to return to a

economy

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

writers

peacetime

The First Boston

without stimulating ci¬

Corporation

vilian demand.

Morgan Stanley & Co.

Your Part in Prosperity

Kuhn, Loeb & Co.

Blyth & Co., Inc.

Harnman

Ripley & Co.

Incorporated

knows that when
the demand for anything becomes
'

Everybody

Dominick & Dominick

Goldman, Sachs & Co.

Lazard Freres & Co.

•/-,-■

Lehman Brothers

great, prices go up until produc¬
tion

Remember what

catches up.

electric refrigerators, radios,

and

Clark, Dodge & Co.

Merrill Lynch, Pierce, Fenner & Beane

Ladenburg, Thalmann & Co.

the

sets

first

current asking
When

his
the

smart

cost.

Look

price of color TV!
businessman

Salomon Bros. & Hutzler

Stone & Webster Securities Corporation

sees

colleagues waking money by

fistful,

too. Then

duced and

get^ into the act

as more

Dean Witter & Co.

Union Securities Corporation

roods are pro¬

is spent-on ad-,

the staff of Reynolds & Co., 425

perity

Tele-

remains unchanged.

outlook. They,
that

announce

removal of their main New
York office to the 20th floor, 120

Leo-

nard J. Smith has been added

leading exchanges,

the

(Special to The Financial Chronicle)

SAN

encouraged toJkeep a concern or
associated with the new business
Shaw Hooker Adds
a
city in a competively strong
Instead of 1
/
(Special to The Financial Chronicle)
department of Shields & Com¬
this course after World War II, position — product research, sellSAN FRANCISCO, Calif.-John pany, 44 Wall Street, New York
g°vernl™ent subsidy and regula- ing research, and consumer rekeeP business good, search.Salariesmust keep pace E. Hamilton-Selway is with Shaw, City, members of the New York
„

by holdmg

cent months

a market is lost,
organization had better

With Reynolds Staff

work

lower cost, and then sell harder
than ever before. New markets
for new products must be
de¬

better recognition of the Law a!
Ji
Supply
and

can

New Quarters

of Supply and Demand. This Law
we

will have

harder, produce better products at

will

of economic salvation is to

recession is that

-What

not

anotherxraslrdepends on the kind
of producers and merchants who
make up our economy.. The way

By ROGER W. BABSON

Walston & Co. In

was

The Commercial and Financial Chronicle

(1270)

—500

A Look at Canadian Natural Gas
By

President, Trans-Canada Pipe Lines, Ltd
f

Bioomfield

Mr. Tanner describes the rapid rise

tance

time

been

operating,

Trans-Canada

age

length

of natural gas

many

have

the

Pipe

the

compare

which

companies
with

"regulations for the sake of regulations"
the basic concept of free enterprise.

tained

that

original

pattern

makes

used

by the other members; in
fact, if my information is correct,
Trans-Canada's pipe line will be

ugly
i.e.,

duckling,
■one

feel

the

less out of his

class,
ably

would

sisters

|
N.

have offered to make their know-

how

older

the

how

re¬

girls

hold

baby

came

her

when she
own

her

eral

opposite sex. We are de¬

termined
member
way

heartedly

having grown
gracefully to maturity. Referring
back to the ugly duckling: If I
remember

shape

were

while

pretty
yet

was

well

the

well acquaint¬

you are

Western

events

which

Canada

led

and

the

birth of Trans-Canada Pipe Lines

Limited,

However,
which

deter¬

youngster,

exists and also

now

its proposed program.

correctly,, his size and

mined

size which

one

say

with the history of gas devel¬

opment

in such a
accepted whole¬

This

you

Many of
ed

adult

the family

into

grow

problems.

our

have called on sev¬
and have been given
worthwhile help.

very

popularity

with the

with

too, that

every

even

available

resources

greatly appreciate. I might

was

respect,

and

assist

sister as a
nuisance and of little importance,
able

growth

fact, many engaged in pipe¬
lining here in the United States

Tanner

all of
whom are married, and I well

but the time

our

ters,

pattern

large and important undertaking.

lovely daugh-

looked

was

development, and to whom
we
can
go for advice and even
assistance
in
this
exceedingly

member

can

deal

this

think

is
am

with today.

information
expected to

Although most of us think of
pipe lines as an amazing develop¬
ment in North America, with a
comparatively short history,
it
was
most
interesting to me to

somewhat greater

•An address by Mr. Tanner at the
Independent Natural Gas Association of
America, Annual Membership Meeting,
New Orl eans, La., Sept. 14, 1954.

learn that

far back

miles

was

940 B.C.

first

to 80 p.s.i.

pressure

con¬

Na¬
had
con¬

with

tremendous strides that have been
made in all

phases of the oil and

industry since that time. When
you think that at the turn of the
century natural gas was practi¬
cally non-existant as a fuel even
gas

this

Yes,

almost

many

have

U.S.A.,

great

situation

•

which

five

apd

of '1

the family.
I
am the proud
lather

most fortunate,

are

baby daughter, to have older
with
experience ' after

the

sister

baby brother
or

longest gas pipe

and

largest

line in the world.

prob¬
a
better
comparison
or

5 lfc

was

inch

distance of 120 miles,
and had a pressure of 525 p.s.i.
This actually
was
a
very
short
time ago when you think of the

somewhat larger than the patterns

the

iron pipe-,

with

1872,

Chicago,

Limited, it
like

first

the

The
pipeline was
structed in 1891 by Indiana
tural Gas Oil Company, and
a
diameter of 8 inches; it
nected the Indiana gas fields
sure

high

Trans-Canada Pipe

its

Oil

present

the

here in this room,

most
som

out into

find

people

seen

reality. Today we
industry 2,000
miles away from the source feel¬
ing that they are entitled to natu¬
ral gas to heat their homes and
to

fuel

and

their

factories, and they
expect to be supplied with it im¬
mediately, and the most encourag¬
ing thing about it is that there
are/those who

prepared to see

are

thaf these wants

satisfied

are

al¬

most over night. To me the whole
thing is fascinating and challeng¬
ing to say the least.

Canada

when compared

with

that of

States, it has

short

period

and

the

astounding

I do appreciate this oppor¬
of discussing this subject
with you. Whether or not Alber¬

portance

old

years

celebrating

50-year

unbelievable

jubilee.

that

Albertans

proaching
it

50th

our

ap¬

lion

too

State

Louisiana

today

iences

with

all

and

Many of you here today are
well acquainted with the devel¬
opment in Canada and particu¬
larly Western Canada, and in fact

what it

there

played

here

little

part

velopment; in fact
that

the

rate

and

who

have

the

de¬

fully realize

kind

devel¬

opment that has been experienced
there could

have

than

the

and

The

have

the equip¬
capital and

manpower,

the

and

risk

mately

100,000 to
Canada's population
15

million,

compared
an

The

offer to sell nor a solicitation of an offer to buy any of these Shares.

offer is made only by the Prospectus.

has

small number when
with the State of New

turn

of the

what

now

actual

con¬

has been looped

line

runs

couver,

year

This

from Edmonton to Van¬

distance

718

miles,

lit will carry oil to the West coast
serving refineries in Vancouver

Canada also

century.

commenced

was

ultimate carrying capac¬

ity of 150,000 barrels daily.

the

was

Line

completed the following

with

times

150 -days

Pipe

and

reached

alone, yet the value of her
national production is $24 billion,
or

Later

Two years later the Transmoun-

tain

million.

one

York
This announcement is neither

Great

a
carrying capac¬
ity of 300,000 barrels per day.

During the short 50-year period

the

struction and

cf which I speak, Alberta's popu¬
lation has increased from approxi¬

ment

of the

markets.

and extended to

been possi¬

how,

world

and

was

1950

been

able to accomplish.

ble had it not been for the know-

not

Company Limited from Ed¬

inches and serving refineries from
Edmonton Duluth and to Sarnia.
The line was built to Duluth in

generally realize
that we as younger

Provinces

built

completed to Sarnia, being
a distance of
1,765 miles and vary¬
ing in size from 16 inches to 20

progress

States

announcement

pipe line would
by interprovincial Pipe
the head

pioneers and the things they
have
influenced

pro¬

Lakes

due to the spirit of those

progress,
old

Leduc,

monton to

with

Orleans.

New

made that

Line

accomplished

those

are

here

came

development

really got

oil

was

when the first settlers

was

and one-half yeafs ago,

discovery of oil af Leduc in
1947, Alberta's oil industry grew
in a hurry and in May, 1949,
just two years after the discovery

conven¬

advancement'

and

day.
February, 1947,

one

compare

its

long.

system,

the

others and their great accomplish¬
ments.
Take this,; wonderful old
it

not until

anacf^ve

gram

look

miles

combined

load, during the
1953-54, was 350 mil¬

seven

that

accom¬

field in

peak

was

just

ite plans for improving in the fu¬

Naturally

built

was

170

the

cubic feet in

plished and begin to make our
new year's resolutions and defin¬
ture.

and

then

combined

century, and as at the begin¬
ning of a new year we sort of take
been

length

any

Winter

half

has

was

Edmonton
and
Calgary
intervening and surround¬
communities, has developed
the point where the highest

anniversary

that have been made in that brief

what

gas

with

ing

only natural for us to want
back in retrospect at the
great progress and achievements

natural

serving

look

stock

diameter

for

development in
that the first

Port

Since

think

are

drilled

gas

find

Southern Alberta to Calgary. The
main pipe line was 16 inches in

progress

1912 from Bow Island gas

century, al¬

Continent.

one-half years.

natural

line

has
field all over
the world and particularly on this
American

short

very

Colborne, Ontario, in
about 1860. Development follow¬
ing found so much gas that it sup¬
plied the City of Weiland, Niagara
Falls and Buffalo, New York.
;
Western Canada's first gas pipe

been made in every

thp

have

return, however, to the ear¬

near

period

since the turn of the
most

will

golden

our •

that

During

and

the
and

well

the Province ot Alberta will

Columbia,

different parts

developments,
taken place
period of

which

Canada,

I should like to tell you that next
be

British

many

subject has to

liest

another

Canada's future development.
Before going into this, however,

year

and

of the utmost im¬
Canadians
and
to

seven

Texas, and regardless of the fact
that
the
industry is young
in

exports

million

One could go

Canada, but

during

gas.

fields foreshadow

important

$17

do with oil and gas
most

tunity

Canada,

from

and Kitamat in
uranium

particularly about natural

ta's oil

Commodity

interesting develop¬
such as the spectacular
iron ore development in the East

progress. My assignment here to¬
day is to tell you something about

number

risen

ments,

in that

even

made

and

with most

Though the oil arid gas indus¬
try in Canada is in its infancy
...

unbelievable.

this whole al¬
fantastic development blos¬

actually

Industry

world

worid in the' produc¬

$4.1 billion.

Gas

and

United

long, running from Newton to Titusville, Pennsylvania; the pres¬

Lines is somewhat in that position,
in

Lines

that

million.

built in the United States

inside diameter and

fill the cast which

had to grow to

was

early

than that of his associates, and
had been set.

project

this

about SlYa

was

find

line

stLling

miles;

failed, however, and the loss sus¬

Tennessee Gas Transmission Company lines. Looks for more
nil and gas exploration in Canada in anticipation of gas export,
and hits at

from West
Rochester, a dis?..

have

the

our

made

was

bored pine logs and ran

briefly development of gas pipe lines in U. S.,
of the oil and gas industry
In Canada. Finds astounding progress of pipe line construc¬
tion in Canada. Points out Canadian gas reserves could have a
natural market in the Northwestern states, if present man-made
barriers did not exist. Tells of new 20-inch pipe line being
constructed from Niagara to Toronto, connecting with the
After reviewing

States

confidence in it.

pipeline built in

gas

United

the

„

those

evaporate brine from salt. The

first natural

that

was
supplied by ing nation
neighbors to tne' leading the
South who had been engaged in tion
oi a
the industry or Wiu nau every
minerals.

Chinese

through hollow bamboo rods

gas

N. E. TANNER*

confidence

before Socrates was
piped natural

years

born—the

Thursday, September 30, 1954

...

has become the third largest trad-

Continued

page

■

;

150,000 Shares

Spencer, Zimmerman g Waller Devlin Joins
Co. Formed in

Spencer Chemical Company

COLUMBUS,

per

Avenue

ond

Share)

business.

William

dent;
a

President;

and

Kyle

are

Presi¬

Zimmerman,

Secretary-Treasurer.

and accrued dividends

se¬

Officers

Zimmerman,

Dempsey-Tegeler Co.
(Special to The

Spencer,

in the

engage

curities

Price $100

—

Zimmerman & Co., Inc., has been
formed with offices at 1238 Sec¬

4.20% Cumulative Preferred Stock
(Par Value $100

Georgia

Ga.

Vice-

Spencer,

Mr.

Zim¬

LOS

Devlin

with

was

formerly Vice-Presi¬

Chronicle)

has

become

associated

Dempsey-Tegler & Co., 210

West

Seventh Street.

Mr, Devlin

formerly, with H. Hentz

was

& Co.

prior thereto was manager of
the investment department for A.
W. Morris & Co.
In the past he
and

was

merman

Financial

ANGELES, Calif.—Walter

officer of

fornia Company.

the

First

Cali¬

dent of Clement A. Evans & Com¬

Inc.

pany,

lumbus

Copies of the Prospectus
signed

charge

the

office.

Co¬

William

be obtained from only such of the under¬

may

the

Shame, Amelar With
Arthur

BL YTII & CO., INC.

CO.

GOLDMAN, SACHS & CO.

EASTMAN, DILLON & CO.
f

Krensky Co.

(Special to The "Financial Chronicle)

GRAND RAPIDS, Mich.

THE FIRST BOSTON CORPORATION

—

Hy-

man

HAIiRIMAN RIPLEY & CO.

KIDDER, PEABODY & CO.

Incorporated

MERRILL LYNCII, PIERCE, FENNER & BEANE

Shaine

have

Amelar

and

Maurice

become

associated

with

Arthur

Krensky & Co.,

Inc., Chicago, members of the New
STONE &

WEBSTER SECURITIES CORPORATION
DEAN WITTER & CO.

WHITE, WELD & CO.

York

and

changes.

Building,
west
was

-Midwest

Mr. Shaine

Stock

for
and

the

Grand

office

Straus, Blosser & McDowell, with
which Mr. Amelar

ciated.

was

also

asso¬

—

William

members

the

Mid¬

Stock

Exchange. Mr. Perry
formerly regional manager

the Midwest Stock

prior

thereto

was

Ex¬

was manager

Rapids

Ohio

of the Cleveland Stock

September 29, 195^.

CLEVELAND,

J. Perry
has become associated
with The First Cleveland Corpor¬
ation,- National City East Sixth

SMITH, BARNEY & CO.

Corp.

(Special to The Financial Chronicle)
•

MORGAN STANLEY &

Perry Joins

First Cleveland

legally offer these Shares in compliance with '
securities laws of the respective States.

as may

Exchange
Secretary

Exchange.

With H. L. Jamieson Co.
(Special to The

SAN

tor

Financial

Chronicle)

FRANCISCO, Calif.—Vic¬
Hugo

Jamieson &

now

with

Co., Inc., Russ Bldg.

Volume 180

Number 5364

The Commercial and Financial Chronicle

(1271)

vania in cooperation with member

Anthracite Industry on the Mend
By EDWARD G. FOX*

As many

President, Philadelphia and Reading Coal & Iron Co.

Decrying

producers and the United
Workers of America.

Program

toric

market in 1954-1955.

Says price war and maladjustments of
years is reaching an end and, among favorable fac¬
tors, he includes smaller dealer inventories, small supply in

the

mourners'

crowded

that

aware

beqch

this

the

pretty
In

season.

the

Of that I

well

that

April

tion
and

Twain.

will recall

of sound

business

this

his

the

port

with

premature
mourn

dustry

that

delivers fuel
with

Fox

value

to the

been

each year of ap¬

consumer

fantastic

demise

anticipate

knowledge

the

industry whose

in the industry
and last, is helped .by ri

re¬

the

anthracite.

recent

You

all

fuel
are
the envy
of
and oil company in the
country. No, this great industry is

wartime

boom

every

gas

duction

when ..every

going

full-time

serves

for

generations

selling millions of tons of
hundreds
every

millions

That

year.-

conviction. More

producing

honest

store

Philadelphia and Reading, I am
equally certain that it is going to
continue to produce

portion

year,

that

goodly

and for

year

come.

here

you

have

the

measure of

fact

that

counted

for

-7V2

some

ac¬

distribution

million tons of anthra¬

that

size

preserved,

but

by
of

can

1952
of

expanded.

However,

know that it won't be

the

defeatists—those
with

doom

have

done.

faint

the

coal,

heating

1953 to

They

are

think

with

apostles

who

and

•

ably does not have
Anthracite
customer

Unit

demands

over

one.

He's

this

you

invita-

this

opportunity to dis¬

with you the present industry

cuss

problems, and I wish to make it
very clear now that what I say
only

are

flow

industry

that

true

the

industry

difficulties

with

beset

that

not

one

claim—and

would

claim—a

have

solution

the
to

address

State

Fuel

sure

temerity
these

Mr. Fox at

Merchants

many

the

New

Association's

Convention, Lake Placid, N. Y., Sept. 25,
1554.

Now,

what

mekns

does all

iqr^3cl"V IqA

conr

this

now,

production of

World

War to

Korean

markets:

War

in'-mind

keeping

Jhuu .sates, with the result that
&«'-overM! decline in sales of
f
e / io^ iTui I

and

normal

ventoiy dec ine of 18.7%. T es

that

substantial"31 markets" are: very ^resulted
suDstanuai

cooperative

and orderly

pattern, The fact of the matter
that

did

not.

competition

"day,:

suicidal

Instead

I' use- the

produced

hav-

became the order 'of

and

Meanw lie, we know /that l
y
producers-for months past-have
-

term,

Other

Industries Have

Faced

Readjustment

;

Problems similar to those of the
anthracite
have
been
faced

^by

other

industries
You

overcome.

late

'20's

and
will

there

from

was

;the

have

recall

been
in

the

wholesale

cigar

industry

because many felt that from that
time on no one would smoke

any¬

thing but cigarettes.
manufacturers
business

profits"
•

Many cigar

remained

benefit

through
'*

years.

the

large

following

;

Those piano manufacturers who

did

not

came

lose faith when radio be

popular, continued with

newed

energy

joying

and

are

today

very ^prosperous

•

re¬

en¬

market.

; Let's
get it down to a ,moi.«
practical level.
It is true' that

the present tonnage of some size:?
in storage may give you a feeling
of
security on the question oi

supply for the months ahead.
bear

ing been obliged to carry undue
proportions of the total supplies
UpQn which consumers relied for
their requirements.
'
.'

This adjustment could haveTollowed

stocks

1952-1953 and. 1953-;i954r, but-the
ra^
10/a 1 e,F lnventones
d.rPPPe^23.1 %. Ifhe case: pf pea
S1?e, sa es were off only 3.3%, .but
retailers stocks werejpwn 10 1%
Dealer? inventories of buckwheat

and
fol-

industry for some two
has'been undergoing
adjustments
from the
booming
the

'£■

anthracite
years

...

£ !alef Sales of egg stove
o1?#
V f

fail*

actually that the

But

mind

that

the full ranga

of sizes is not

now

in storage, and

this

may

result

the

sizes .most

demand

coming winter.

scarcity -of
thrj
*

Having coal of all sizes in bins
ready, for the winter demand,
how great, is just: a
matter
of
plain
good
busine^}

and

matter

■

This is not

■

)

•-

V ' '

;

The offer of these Bonds is made only by means of the Offering
Circular, whicli should be read prior to any purchase of these Bonds.
'
Offering Circular.

•;

solve

"■

acted

factors

last

;

Northern Pacific

Railway Company

Collateral Trust 4% Bonds
Dated October 1, 195//

Interest

Due October 1, 198%

payable April 1 and October 1 in Nelv York, N; Y. *

' '

depres¬

price.

$52,000,000

can

This
year

believe

The issuance and sale of these Bonds

are

subject to authorization by the

Interstate Commerce Commission

greater

proportion
by re¬
ducing their
prices
below
the
prices of other producers. Such
the

action

anthracite

market

taken

operators would

move

meet this

not

Price 99'/2% and Accrued Interest

in the mistaken

other

was

belief that

Price

price

Copies of the Offering Circular are obtainable from only such of the undersigned

com¬

petition.

legallytoffer these Bonds in compliance with the

may

•

securities laws

•

You

1953

know

war

happened.

the

industry not

number of

respon¬

sought ways and means of ending
this price war. In this connection,

the

BLYTH & CO., INC.

MORGAN STANLEY & CO.

TIfE FIRST BOSTON CORPORATION

HARRIMAN RIPLEY & CO.
Incorporated

September i!/, 1951/.

LEHMAN BROTHERS

KIDDER, PEABODY & CO.

INION SECURITIES CORPORATION

made earlv this year

voluntary''Production
Program" supervised by
Department of Commerce of
Commonwealth of Pennsyl¬

GOLDMAN, SACHS & CO.

;

the

Control
the

was

million.

sible elements within the industry

revision

of the respective States.

touched off that in

cost

Meanwhile,

War.

what

was

alone

less than $20

of
♦An

York

ditions.
mean?

ranks, 1 and

effort

producers

obtain

and

are

deep-seated and wide in scope. I
do

closes

coal

some

price
Anthracite Industry Difficulties
It

united

combination
led

personal opinions.

was

burn iu

coal, recover cash, overcome the
competition of sub-standard coal,

shortsighted.
an

price, warfare

they could unload their stocks of

how
they could possibly have been so
acceptance

year

lo\yed by chaotic' marketing

develop¬

in years to come and wonder

The

anthracite?

10%
It

who choose

those apostles

almost,

well

familiar

are

anthracite

influence

sing

the

to leave anthracite will look back

tion offered

when

standard

in the industry.

And

Meanwhile,
throughout
1953,
storage of large tonnages of
coal at the expense of cash in the
anthracite industry continued. At
the same time, the flow of sub¬

prob¬

when

hand

unfavorable

every

wake

half

lot of bounce

exodus
•

ing
Past three years, and also
the decline is larger than the de-

Control

the

fellow who croaks "I told you so"
ment

two years ago

Program has meant. Its failure in
the

off

many

phase
for survival that

progressively less dur-

•

of those corrective
They provide another
recent illustration of

the

makes

Automatic

Production

con¬

As *a

market.

curb

all

very

what

people' don't

starts.

,the

the story

measures.

and give them orders.
the kind of dealer who

before

touched

are

observation that dealers
have been

All of you know what the
ure

Production Control

sub-standard coal into the market.

.you

argues,that he can't compete with
other fuels, because he won't. He's
licked

•

which
of

serious problem.

that

In Wake of Failure of

the world there'q

„

bitter

most

struggle

c
.

condition. There

about pndpd

the

was

Production

revised*

Coming?

season

much

anthracite

taken

were

done

hearts

and

the

call- up

which

market.

sub-standard

and

sizes

anthracite. Nor will it be done by
those tired souls who sit around

complain

quota, but of the market demand,

only recently that effective steps

real faith in the future of

those

amounted in the

Moreover, we are more than will¬
ing to help you expand it.
and I

the

signs that the

Control. Program
and
overproduced not only in excess of their

the

grade

worthwhile

fighting for. It is worthwhile pre¬
serving. And, I not only think it
can

such

producers chose to disregard
their allocated production quotas
under

shortened list gf

the

means

Instead,

case.

and

anthracite producers. With all e?.
these in mind, what would a no**" •

for which your friends and
neighbors in New York State paid
approximately $80 million. A mar¬
of

the

ducers,

you

cite

ket

been'

Stability

By" definition",' readjustment
to bring once again to " a
satisfactory situation. The anthracjte
industry's. production
and
price
structure
is
approaching

which the

dealers,de¬

tomntArfaSrnooiothan

this stake is

1953

the

not

„ru

stantial stake in the anthracite in¬

dustry. A

year,

stocks
of
storage coal,
-"suicidal" deliberately.
... ^en dumping this
so-called unprincipally the chestnut, pea and'
•
>
„• due
proportions : of supplies to judgment. Today there is no
'
What you have been-wi nessmg
No. 1 buckwheat sizes, mounted.
.cuse for1 slow delivery either t,y
bbta,£ ■ h_ M th
Um
m - the • anthracite, irrdustcy
for*
A full
During this period, too,- the in¬
this dumping has been attended producer or by retailer.
supply of coal on hand in all siz/j'
dustry was plagued by the rise of
tempted struggle for greater than by a reduction in. the number of
a
brodurinff comnanies
As
I said permits undelayed delivery.
group
of producers, formerly
/".-'J®1?
known as bootleggers, who pro¬ properly allocated tonnage. It is
The Retail Anthracite Dealer
*
duced without giving considera¬ regrettable, and no one regrets it
more
than-I that an orderly rer--^.
J
^
u
tion to quality, and with a shortBeinf$ mindful ! of the ste/j
adjustment couldn't
have * been number jof ethers are permanently taken and now
underway to ccwrange viewpoint, dumped on the
made in the industry/For as you. out ot the business.
...
market a sizeable tonnage of lowContinued on page 16
well know, adjustments such as
Now add up all these factors of

sub¬

short

result,

,
_

All

tinued

years

not in great demand,
production could' be icon-,

tinued

this

."'■•/?
/1.

sizes

that

pro¬

anthracite

happened. With the adjustment in
the
market, producers began to

As for the

am.

reaction

in
1952,
and
continued
through 1953. We all know what

importantly, it is

astute than I

The

this

way

the conviction of authorities much
more

into

pressed

was

service.

pro¬

available

industry to more normal mar¬
ket conditions began to get under¬

dollars

unit

anthracite

the

coal for

history

recall

some

under¬

happening

this year

proximately $300 million. In fact,
it

good

has

ally resolve themselves. Certainly
such
an
understanding then, at
the very least, would put the in¬
dustry and its future in the proper
perspective.
r
Any understanding of what has

in¬

solution

problems that plague it, many of
these problems would automatic¬

an¬

thracite.

prohlem

the

if everyone in the
industry had a
clear
insight:' into
the
various

exag¬

gerated.

sxep

standing of it. In fact,. 1 think that

was

greatly

first

any

his

death

re-

revision- in

was

„

that

this

among

producers
cooperated, it
reasonably- anticipated that
industry would move toward
stabilization. As you know, - such

principles,

by cooperative meetings such

both the retail and pro¬
ducer levels.
-♦

comment

wry

are

inventories

duced supplies in storage
by pro¬

day, where many have been de- mal winter do for the anthracite
Priyed> perhaps permanently, of market? And even without
very
their regular means of livelihood, favorable weather I can
see
a
1 am from the anthracite region, pretty good market
aheqd for the
It • was and is my home. And I 1954-1955 year. In other
words,
tell you in all sincerity that no
gentlemen, this violent price re¬
one deplores more than I the un- adjustment is
just about reachim;
fortunate circumstances that for its end. And with
its finish in
the time- being at least have sight, isn't it about time
that we
wrought - such economic havoc take off our coats
and roll up our
there.
- v ;
y
...
*
sleeves and show

ma]or

rumored

death of Mark
You

1940,

result

by constant effort, ingenuity arid
research, by day-to-day applica¬

re¬

positions in the industry. In

small

fre-

non-combatants. Such is the
case in the anthracite region to-

1954

stricted.

and

quently the casualties

through the years, and
particularly during World. War
II, when production was unre-

confident. And they

origin

in anthracite

this

occurred

solutions*

are

will be found and made workable

re¬

spect, the anthracite industry
minds

problems. But there

its

casualties,

many

aware,

were

storage by producers, and reduction in number of producers.'
well

are

have

revision, those positions
adjusted
to
the
many
changes in productive capacity of
the various producers
that have

last two

you

have.been going

Mine

when cooperating producers accepted production percentage
positions in relation to their his-

current pessimism

regarding the anthracite industry/
head of leading anthracite concern looks for a pretty good

of
had

•

N.,,

The Commercial and Financial Chronicle...

(1272)

much
with

Savings
Banks Complement Each Other
briefly traces the historical development of com¬
mercial and mutual savings banks. Points out both perform a
different and specialized financial service.' Says each compete
only in trying to serve the public better, and both have much

;
.

•

•*.

ble without strong financial insti-4 being

met

needs

*.k

the

Thrift

and

■

;

legislative branch of

national economy performed
by our financial system, two stand

bulwark of

Presidents

being of transcendent im-

portance.
These are to furnish
liquidity and to facilitate capital

first

service-

liquidity

?S per ,t:
In the

the

same way,

,erm

companies,

mone'v

hnSibfn pfh" need for fj"ancial services as the
eSSTtial them arose.

evolution of

All

these

provide additional

reuuired

hooved

Thev

into

of liquid funds through checks to

and

effect payments, and provide

financial^ istitu-

tions

Financial
financial

institutions
instituiions

evolve

and

ful

iustification

public

for

cur-

several

Partners?

evis- '

tvnes

justification ior. to the existneir
in tnis service

Modern

economic

life would not

-Eouallv

use

public service and mutual inter-

Historical

Developments

Commercial

banks

only fostered by the government, When the two functions ar exerit is actually required by our dnti- cised exclusively by the same inliquid trust laws.
.
stitutions, the results have often

founded in the eighteenth century
in this country. They have provided

and

funds

safeguarded the
the

have evolved
venient

community/, They
a

marvelously con-

of payments by
have made avail-

system

check.

They

able, at modest cost, trust, foreign exchange and other highly
specialized services that have coneconomic

tributed

much

progress

and well-being.

Mutual

savings
,

our

banks
i

It is inevitable that competition
will at tihiOs produceA'irritation
and differences of opinion among
competitors in private enterprise.
Banking is no exception. In the
heat of rivalry, those who manage
particular types of financial institutions may even forget that they
complement and supplement each

m£ troubles in continental Euf°Pean countries at that time (as
^ Germany and Italy, for instance), arose in considerable
measure from the acquisition of
excessive amounts of non-liquid

other. They may overlook the fact

the rountrv

was

still

vouns

Thev

the_C0"nS:Wu!/^
established in
were

response

*An address by Mr. Ihlefeld before the

Dartners

partners

far

iar more

serious bank-

excellent
di

record
hank*

British

and

fimp

than they are competitors in serv- ^an4ac\ia^ oariKs at tne time rethe public. This holds true fleeted the separation of functions
particularly of the roles of savings,ln those countries,
and commercial banks.
G e n/£ r a 11 y
speaking,
only

Meeting of Group V, the Savings
Association
of the State of New

these

York, Brooklyn, N. Y., Sept. 28, 1954.

are

•

ing

Annual
Bank

thpv

that

tnar.tney

cummp^ial

convinced

that

both

great classes of banks have

through what is tantamount to

banks and savings banks is it
possible to have both functions
prop¬

erly
This
an

buy

advertisement is not, and is under no circumstances

offering
any

to be construed as

p/ these securities for sale or a solicitation of an offer to
The offering is

of such securities.

made only by the Prospectus.

performed

ment of the
ness

without

impair¬

efficiency and sound¬

each, of

these

two

^Shares

'• 1

Joe

brought

was

only

institutions. At the same time,
through limited participation by

partnership in service and

happily achieved in

his boundless energy, embraced the Leftist political cause.
McCarthy had been his nemesis in his fantastic operation of the

Voice of America.

public life.

Benton

' /

our

have

country.

Safeguarding Commercial Bank
Liquidity

Price $4 per Share
Copies of the Prospectus

may

be obtained in any State only from

Van

Alstyne, Noel & Co.
T

•

September 29, 1954

Perhaps the greatest single con¬
that mutual savings
banks make to the well-being of
our commercial
banking system is
in helping to safeguard the essen¬
tial .liquidity of that system.
tribution

such

of the undersigned as may-lawfully offer these securities in such State.

Holding $128 billion of demand
deposits, commercial banks re¬
quire
a
very
high
degree
of
liquidity. Serious difficulties were
encountered by commercial banks
in the past where their portfolios
included
-

excessive

Continued

proportion

dedicated

was

.;•/'«

get Joe out of

;it .*>■*'.

•-

This investigation with which McCarthy refused to "cooper¬
ate" and for which he is now at this late date being "indicted" by
a committee
of his fellow Senators, was so nauseating that two
members of the original five members of the committee resigned
and a third went away to Europe.
Senator Hayden of Arizona,

then Chairman of the Senate Rules Committee, had to name him¬
self to

the committee

took little part

that it could function

At the time I considered

McCarthy would have been

walk into this committee's clutches.

think, to stand
Senate
such

his

leaders

things

within

was

They

asking him

were

opponents.

when it

was

•

explain,

were

controlled

judicial role to this

opposing

fool to

rights, I

of their most vigorous and

one

Why he should give

nothing but

to appear and

Government, at the time,

McCarthy

his

not elders of the

were

his personal finances.

The Senate and the

group,

dignity.

own

who

by the Democrats.
effective

and he thereafter

in the proceedings.

political group, is

something I didn't understand at the time and I don't understand
now.

With

the

Republican victory

Democratic effort

Senator
the

page 47

1952,

assumed

was

get McCarthy had collapsed..

ever

this

There is still

to whether this committee's report

been "filed"

"received" by the Senate.

Jenner, Chairman of the Senate Rules Committee under

Republican Administration, insists he has

never

seen

it and

it is to his committee that the report should have come.
i

But at this late

Common Stock

three years ago

for

McCarthy has

what

nose at

obviously political and was brought about as the result of
charges by Senator Benton of Connecticut, who made his millions
out of the advertising business and then
seeking more outlet

argument in the Senate

Government Operations Of

The committee which Joe thumbed his

;

This

multimillionaire adventurer

was

groups of insti¬
tutions is assured.

performance

disrepute three
that had been

men

committee tried to get him three years ago, and voted funds
by
the Senate, with only one member voting nay, to
carry on his work.

attracting savings for capital
formation,
healthy
competition

Company, Inc.

into

minority committeeman at the time the other

between the two

Guild Films

Senate

politics with whom this country has been cursed—he

the

committee of hatchet

cartoonists'

types

commercial banks in the function

250,000

in which only
forward with its

way

come

which he

partnership between commercial

it, has

the people of Wisconsin, made

assets. On the other band, the

arrived

after commercial banks but when

the

has been reelected to the Senate
by

requirements-of functions of providing : liquidity
dynamic economy. In fact, and facilitating capital formation
competition is so necessary to a shall be performed efficiently and
dynamic economy that it is not safely by its financial institutions,

convinced

Chairman of the Senate Committee

our

first

were

can

get him—at the behest of

into Lefist

; V ever-changing
-

Terrible

fsy scorning

created to

•

this, though, under duress, under the force of agitation
it really thought its collective face had been

Since

stant improvement in the services
It is essential to the well-being
rendered, to adapt them to the of eyery. country that these two

dependence be disregarded.

;

-years ago

es-

^Quany, it is es

institutions are mumsuiuuons are .mu

principles of maximum :

Senator.

Carlisle Bargeron

preserve its
reputation, the brunt of editorial and
jibes, of being the most deliberate body in the world.

romoete with each other
sential that such savings,. once
pub-tney are> compete wun eacn otner, accumulfltpj and
shall
as well as among themselves.
;
accumuiatea ana mopiiizea, snail
^omnefifihn tn serve the be made readily available to govtually interdependent. Only at the
' |V.ls
competition to serve tne
t
anrI
neril of the institutions and to the Public
better is desirable and ernment, Business and individuals
cost of the public can these basic - healthy. Such rivalry assures con- that .require long-term capital.
-

economic

it.

The verdict on one of the two counts
against Terrible Joe is
that he brought the Senate into disrepute three
years ago and the
Senate is just now
finding out about it. Thus the Senate is to

tence.

lie' Danxing
uc,. banking

about

because

verdict.

income from current consumption
future

not

learned members of the bar

saving> which
the withholding of a part of

financial

to. do somehting

sticking closely to judicial procedure in that

bg possible without
.

body

Be that as it may, the Senate is now in a fix for sure. The
committee of grave, serious miened and serious minded
Senators,

!£a*ltlve rate of r.etu™ Wlth fa

ren-

atroohies

ine several types oi nnanciai
institutions, specialized t h o u g h Ior

the""

their

uneconomically
institution

Competitors

Specialized.use-';

the

service

dered- ™ institution atrophies.

the

response

needs of society.
sole
soie

ciently
*

indeed
inaeea,

—

institutions-originate

;

burned.

all business

humble

the conduct of the Wisconsin

Senate did

have enjoyed spectacular
rency and coin at all times for
nancial
insti- growth and development because
payrolls and other current needs,
tutions
that each renders specialized serviceshave in gen- that the public requires and conSayings banks specialize m caperal met the tinuously utilizes. In finance, as JJf* formation, which consists of
August Ihlefeld
growing de- in all business enterprise, the con- ;be
sJePS of saving and the
mand for these services promptly. sumer is king.
If the service of- investment of the sums saved in
and efficiently.
fered is not wanted, or is ineffi- Jong-term assets that yield an atspecialized fi-

that

make possible the ready transfer

...

This it did whe» it created a special committee of six judicial minded Senators to Iocric

bv in¬

eoveroment

;;

the Senate and the House 1

However, if the Senate really felt that it ;
was
being brought into disrepute by the con- j
duct of one of its members it obviously be- j

SUDPiv

seen

fight back but not often enough in
opinion. •
». .;

borers that need
e£
d the nation,s

a^,d

alleled by the

]oans

,iquidit

I have also

'■

and individuals. They make short-

life insurance
trust companies, savrapid econom- ings and loan associations and,
ic
growth of more recently, investment trusts
cur
country have evolved - to provide other
that

that they knew

have.'*-">a";

They

business,
in- necessary service-to receive and ho!d
the demand deposits'of the
dlvlduals. and invest safely at a good rate of recountry
the chief reservoir of
government." turn the personal savings of our
Iiquidity for government, business

"strong'^ '

seen

try to do it, not purposely to-de-;//

House occupancy gave them,
best what the people should

Commercial banks specialize in
#ie

govemment ag the

our

liberties, il have

our

stray the bulwark of our liberties-but in the'*£;';•
sincere conviction, come by through the Spell V
y
of righteousness and omniscience which White

commercial formation

•

been fortunate

II!titnrvihtLar« able and wjUinf developed those days. a different
They were
to
the financial
needs of bank,s o'
to provide
serve

Morse, Flanders and Fulbright,? is that his
bring the august Senate into ill repute.] Manifestly that should not be permitted. There are all "too many forces
moving in this world todaytcrteardown the''
* "i
"".v
conduct tended to

the

not

were

Liquidity

*The basis for the charges, against- Senator McCarthy brought

by fellow Senators

Among the manifold services to

which

By CARLISLE BARGERON
•

out

possi-' definite

better under¬

'L the other.

Economic progress is not

all have

can

pf bank
is beneficial to the well-being of

savings: hanks complement services of commercial"
banks, and lists the common objectives shared by each type
v- Df institution.

Washington
Ahead of the News

the existence of each type

which

V':- '

From

all

standing of this community of in¬
terest between savings and com¬
mercial banking by reviewing how

Mr. Iixlefeld

ways

recognition

interests coincide.
We

Cites

clear

times of the extent to which their

By AUGUST IHLEFELD*

gain in establishing .closer inter-relations.

gain

each

from

President, Savings Banks Trust Co., New York City

in their relations
other, with the public
they serve, and with government,

Commercial and Mutual

Thursday, September 30, 1954

date,

licans and Democrats,

into

ate

back in

mittee

disrepute
1951.

was

not

have

was

The

Democratic

set up, it was
as a

committee

arm

of the

Three Republican members join in

against Joe, this
the club.

member of the club

with three Democrats. And it is

searching through the 46

charges made

that

whole and McCarthy

ignored it.

outside the pale of

onto

when he flouted

inspired or how it

this verdict along

after

evenly balanced committee, of Repub¬

The reasoning is that regardless of how that com¬

august Senate as
should

has found that McCarthy brought the Sen¬

often reckless and
was

one

they

opinion that

irresponsible

considered to be
J

fact, though, that it has taken the club this lqjig to get

this

serious

offense

the part of one

of its

members

likely to bring more disrepute than anything McCarthy

lias done.

Volume 180

Number 5364 ',;.. The Commercial and Financial Chronicle

(1273)

vided

Banking Trends in India

•

By S. N. K. SUNDARAM*

with

Banks, there

the banking system in
India since that country achieved its independence. Gives data V
regarding the various categories of banking facilities in India
and explains the organization and functions of the Reserve

;
-

Bank of India.

India is

firm and.sure foundation and is vested with

responsibilities of not only increasing its

...

make

effective

.1
I should introduce myself as the
-

...

banks of
head
in

country.!: It is called

Bank

Limited

with

is.

'/ (1)

the * ;

second largest

South

cieties
.

branches with

ral

tained

its

independence
it

that

through

ernment

at¬

with

confess

are

1947

partition.

must

(2)
nance

passing

now

Reserve Bank of India

Agents

inally started
Office.

India;
Exchange Banks which fi¬
mainly the import and ex¬

(4)

approximate.

Non-Scheduled

(5)

Private Bankers

latest

statistical

information

formed

in the

the

of this speech.

course

I would be

citizen

failing in

duty

the

the
The

been extending to mine under its

urated,

foreign aid program. I sincerely
hope that it will maintain .its

the

places where Reserve Bank of In¬

friendship and kindly attitude for

dia had not established its offices.

all

1935, it

acting

was

Government.

Reserve Bank of India

became

When

the

inaug¬

was

the

Agent

for

which

the

shape of
of

decade

lack

bank

controversy in
of the century.

identity

ther

and

governed

Reserve

Bank

into

cor¬

and new

departments

development

of industrial institu¬

matter

important sub¬

mittee.

This

committee

was

ap¬

pointed by Reserve Bank of India
to
examine and report howl in¬
creased finance, particularly bank
finance, could be made available
to

the

been

private

assigned

by the

was no

were

render fur¬

can

the

has
role

Planning

Commission for
of the Na¬
Mr. A. D. Shroff, Di¬

implementation

tional Plan.
rector

India

which

important

sector
an

Ltd.,

the

famous

the

was

Committee.

Sons

Tata

Chairman

It has made very

the
val¬

uable recommendations which are

under the active

added

consideration of

Reserve Bank of India now.

for the collection of

Apart
tance

remit¬

improving

from

facilities

station

from

station arid widening the scope of
rediscount facilities recently ini¬
tiated

by Reserve Bank of India

remodeled and reconditioned with

under Bill Marketing Scheme, two

special credit facilities made avail¬

major issues came to be canvassed,

influence

able

the

Institution.

working of the

restrictions

ticularly in respect of loans and

par¬

advances.:

'
Until the recent partition of the

politics

uniform

working, special in¬

any

particular

interest

Provision

that

Central

recognized

was

were

The

personal

ing to a revolutionary scheme of
deposit insurance. So far as the
has

operating in the service of

the community.

the intrusion of

is concerned, a
committee
already been constituted by
Government; to study and report

descriptions

other

United India, it had 443 offices.
that neither a member of the Leg¬
After the partition, the total num¬
village economy is
islature nor a director of a com¬
ber of its offices in Indian Union
mainly dependent on agriculture.
stood at 367.
Literacy is at a low ebb in the
Imperial Bank of India handles
villages. Nevertheless, the villager
also Treasury
business of Gov- •_
is a shrewd man, able and willing
This announcement is not an
to take opportunities to his best ernment apart from its other nor¬
'
*
'
'
mal commercial activities.
advantage. The economy of the
New Issue

creation

first

institutions

made /of .various types and

also

was

the

for

without

banks.

one

Bankers' Pool to finance industry

predilections, and the other relat¬

As for the commercial sector, it

hold

ensure

stitutions for the training of suit¬

Board should not be directly con¬

either

able personnel in the cooperative
sector were also introduced.

the directors of the Central

cerned

to them.

standards

It will be noticed that

The present population of Par¬
titioned India is about 300 million.
It is a land of villages. The wealth
and well being of the country has
to -be -sought and sustained in the

purpose

"surveys and
enquiry by the recent Shroff Com¬

inde¬

for

growth

ject

State Bank.

help

tions has been

The constructive phase of Reserve
Bank of India thereafter started

*n the first Reserve Bank of India

viHages.

the achievement of

converted

was

interest

Act,

business

per¬

It is now proposed to start

commercial banks

longer in doubt. But for psycho¬
logical reasons, the shareholders'

State

bilities which necessitated certain
its

problem

where the government of the day
would
not
exercise
a
dominant

Reserve Bank of India at all

initial

industrial-development

serious

ernment and the

Shareholders' Bank be¬

matter

third

whether

It is vested with special responsi-

towards

come

had

With

serving

this

repercussions
and inflationary trends in the cost
of living.

peace-loving,^ God-fearing nation.

time

manner.-

During the war again, there was
large expansion of
currency
whichin
the
postwar
period
brought
problems
of
exchange
control and speculative activities

orig¬

was

two

functioning of Joint

statistics, re¬
cial points to be resolved. Contro¬ search
studies, sample surveys,
balance of payments and so on.
versy raged over the rupee ratio
with sterling.
For the redemption of agricul¬
The public, therefore, was anx¬ ture, the Land Mortgage Banks
ious to have a Shareholders' Bank ; and the cooperative system were

three

Presidency Banks of
Madras, Bombay and Calcutta in

ac¬

the

providing trained

under the Colombo Plan.

between the then government and
the governed was one of the cru¬

Bank

did not

with experts in the line recruited

bility in ah entirely cadtious and"
conservative

-i

Currency
making it

for

unit

question

take

came

knowledge with gratitude the
timely assistance your country has

if I

7 ~

as a mere

need

the

Bank

constitut¬

Till

of India

deal,

one

training college for the

and the

tity of interest between the Gov¬

should

Banks; and

amalgamation

the

sonnel.

pendence of the country, the iden¬

then

1921.

In
was

the admin¬

over

currency

safeguarding the credit struc¬

The Imperial Bank of India was

certain points that I have touched

the

ture of the country was recognized
after the First World
War
and

the community of Multanis,
will, therefore, excuse me if
jnot able to provide you with Marvaries, Nagarathars, etc.

The

independent

and

ing

You
I

somewhat

as:

acting

to "the other of) each

Banking Organization of Govern¬
ment, yiz., Reserve Bank of India.

and

port trade of the country;
(3) Scheduled Banks;

stage of transition and

our statistical reporting
various subjects is either de¬

layed

and

1935

"an^ growth of the ^Central

can

distinct

special

and treatment without dis¬
turbance to the existing economy.

porations are sponsored^" one by
StQCk.'-Cdnapanies operating with
Government of India'and the other
the savings hfrthe- community. In
by the private sectof.
' ' •
the bankmg-sector prQper,-it. pro-The extent to which the existing
ceeded to discharge ■ its responsi¬

Reserve Bank of

naturally
on

under

It took
of

the effective

-In this connection it would be
/appropriate for me to trace the

commerce.

(1)
Imperial
Bank
of
India
brought in by a Statute of Gov¬

S. N. K. Sundaram

the

country
and

classified

ru¬

are

aware

are avail¬
country.
indigenous, istration

responsible to the other.

■

Commercial hanks in India

•

separate heads

you

' "

corollary

control
-

mainly in trade and

areas.

the

(4) Banks interesting themselves

the main ob¬
ject of carry¬
ing banking
service

under

run

Government; and

requirements called for
survey

was charged with the respon¬
sibility of serving and safeguard¬
ing the credit structure of the

Government; v *
of India because they are involved
(2) Post Office Savings Banks "in nonbanking business and they
run by the Postal Department! of
could not possibly separate their
Government;
•'
" rbanking business from their other
;
(3) Cooperative Banks and So- business.; Probably either one was

present, 23

the

was

finally integrated in April,

447 of them

serve

•

Sub-treas-

and

regard

could

and

In¬

It has

Treasuries

Board.

The Reserve Bank of India

uries of

city in the;.
Madras Statedia.

;

categories:

Madurai.
:

._'_

bank

Central

are also playing an •? public debt
departments of Gov¬
For the purpose of industrial
important role in, financing inter- 1 ernment of India, keeping the Im- '
finances, the Industrial Finance
nal
trade, particularly in rural) perial Bank of India as its agency Corporation has now been work¬
areas and
agriculture.? But their; for- Treasury operations. It also"
ing for the past few years, capital
activities
should
be
considered > openeid; an agricultural credit de¬
being drawn from Reserve Bank
generally on the decline now; be- * partment to study the needs and- of
India, the commercial banks
cause wi
of the sMiiiguu piwisiuiiti
tauw
mic
stringent provisions requirements of the countryside. and the insurance
companies. The
of legislation -for the regulation of • Before it could develop any suit- operating funds are provided by
moneylenders, and debt reliefs and able mechanism on - control of issue of bonds on the
guarantee of
affeeting land tenures passed by credit institutions the Second *
Government of India.
the several States in India.
World War came in and therefore,Its limitations for providing fi¬
It has also been found difficult it had to hold up the introduction
nance for new
enterprises have
to bring these indigenous bankers of a separate
Banking Companies
come to be recognized. Therefore,
under the control of Reserve Bank Act necessary and desirable for

system of hanking facilities available jn India
in; the following

its

.office

which

•

mercial

are

bankers who

people and placing the same at
their service., I would place the

head of-one of the: medium sized

Pandyan

of them.:

use

with

able

but also to

resources,

are now

No reliable statistics

States/as -conclusion, the banking system of "

now on a

position
there

;in. India with 1,344 offices.

Indian banker describes the changes in

latest

total number of 2,711 of¬
As for the Non-Scheduled

fices.

Managing Director, Pandyan Bank Ltd., Madorai, South India
;

the

89 Scheduled Banks in India alone

India,

available disclosed that

Continued

v.,/

Their needs and

page

ojjer oj securitiesjor sale or a solicitation oj an Qfjer to buy securities.

■

country
It

is basically

has

large,

and

Fifteen

sound.
variety of,

very

functioning

the form

ing foreign trade.
ated in coastal

Scheduled

which

into

building up
the
economy
for better living.
Banks are doing their bit in this
direction by creating confidence

capital and

put

to the

for

savings

int®

circulation

India

and in

Banks

Preferred Stock, 4.96% Series

those

are

Par Value $100 per

included in the Second

Act

and

have

reserves

aggre¬

Price

ehaage

i—

fisti

est-

Act, every Scheduled to keep^eposited with

•v»-

the term,

piqv
;

'An add

a*e »ow W Scheduled

norma* irsa£e of

the country "by-'
-collecting the savings of
.

Copies oj the prospectus

;

'•

v -

evidenced

W. C.

Batiks in /

bythe fact that iti;1938,
.

att^ there wetie ^ only

Verm

;

Blyth & Co., Iikv

wftb-a total number of 2,711.}
; There hasbecir a/ phe- :
nomsnal*
dirrro^ tad af^ Second World War. It is>

way

are among

map

be obtained from such oj the undersigned

the underwriters named

the prospectus)

as may

legally offer these securities under applicable securities laws.

but at the same time, India
important role in- -the

economy ;Of
of

Bank of India that "*its af-

a variety of fnstitutions a; fechidine Imperial Bank of In- »
which are not- probably -dia and ' Exchange Banks, there

/ "banks?? in-the

It lias also to satisfy the Re¬

serve

I,.'.;

{who

.able from

-v

facilities and system ofJ?irs are not being conducted in working in my country.1 .a. manner detrimental to the In- *

banking

? some

per

provisions of Reserve Bank J

India

the

$100

plus accrued dividends from October 1, 1954

its Demand Liabilities, and 2% of

this context, I wouldJafct'to pre,

paid-up

its Time liabilities without inter-1

Corporation

larger

the Reserve Bank of India: 5%

-since

sent

are

Bank has

The banking .system, minriia has

undergone- considerable

areas

gate value of not less than 500,000
rupees and incorporated under the
Indian Companies Act. According

the progreauc^the community.
-

Gas Transmission

They have 65

Schedule to the Reserve Bank of

for

the mind of the people to

the

75,000 Shares

cities.

gold

the plea of provision

circulation

present.

offices in India most of them situ¬

rainy day. The government
is now exciting the interest of the
people to bring out the idle money

for

•

eign exchange business of financ¬

high. He has a peculiar
tendency to save and allow the
savings to be idle in the conclaves
on

September 29, 1954

established outside India. They
mainly interest themselves in for¬

Indian is

his home

India

are

by the government and the people.
The average intelligence of the

Banks

The parent offices for these banks

natural resources, the exploitation
of which are well taken in hand

ornaments

Exchange

Langfef & Go.

•"

DHlon, Read & Co. Inc.

The First Boston Corporation
Lazard Freres & Co.

Hemphill, Noyes & Co.

Merrill Lynch, Pierce, Fenner & Beane

> %

•

Stone ir W«bsfer Securitie« Corpor»tio«,-'- Uiii«n

32; Scheduled *

Seairihe» Corporation w..

Wnte, WdJ&Co.Dean'Witter &Co.
y

■'

«"j i
,

r -

this

was

the position in an undi- 1

■

Improvement

The

Expanded Operations

These

Oi the World Bank

Mr, Black notes past

marked Bank's most active

year

are

ally

of loan

last five

years,

espe¬

borrowers' securities from our

our

ties

economic system of bilateral pay¬

short-

ments

ties

suppliers' credits, and the furthering of inter¬
dissension via competitive trade and credit subsidies.

national

In its eighth full year of opera¬
tions, the International Bank has
continued to be

tion.

The

which

What

customarily
rize

s u m m a

still

are

able

mov¬

ing along

up¬

and

Report

investors

amount

lending

of
million—than

$324

some

Eugene R. Black

the

—

equivalent

other fiscal year.
fiscal

the

loans

new

than $34 mil¬

striking

fact

any

about

that, in

was

enlisted

were

—

aid

to*

reconstruction.

Since then the Dutch position has

improved that the government

most

seven

five

recent

loans.

our

think

have main¬ that it is safe to
say that private
tained that pace and a little bet¬
participations, rare in preceding
ter, with $90 million more of lend-,
years, will become a continuous
ing. Our gross total of loan com¬ and growing part of the Bank's
mitments, since the beginning of
operations from now on.
operations, now amounts to more!
A still more conspicuous devel¬
than $2 billion.
opment during the year was the
Disbursements on loans, at $302
we

to the

agree

re¬

lease of 100 million guilders from

the Dutch subscription to our cap¬

well

ital

Bank

markets.

to the flotation

issue

bond

guilder

Dutch

capital
Nether¬

Recently

prepayments

million

the

Government has

lands

also

1947

the

made

loan

would

also

the

call

attention

After the

end of the war,

beset

was

her

case

making, which

own

any

she

1949

million

Austria;

Austria
difficulties, not of

couraging to
In

your

dis¬

were

foreign investor.

needed

foreign

almost
aid

$200

cover

her external deficit: but today she
has achieved equilibrium in her

million

the

fiscal

past
than

faster

moved

year,

time

any

since the exceptional requirements
of the reconstruction loans of 1947.

Disbursements

than

other

rencies

United

cur¬

States,

dollars, equivalent to $82 million,
n^arkedlv

were

preceding
It

since

cies

any

last

the

bonds

the
eight

various

amounting

is¬

curren¬

nearly

Governors'

sold

have

active

most

borrowing.

Meeting,
sues

Bank's

the

months

higher than in

year.

was

year

the

$300

million.

beginning,

member

advice

give

countries,

forward

steps

States

sold

ing the

to draw

year

recommendations;
headed

non-dollar

the

Malaya

whicn

Chick

were

to have

the

fortunate

services

enough

Sir Louis

Chief of Mission; and one

to Syria, under the distinguished
leadership of our good friend, a

important
when we

public

bonds,

the

United'

in. 1952,

when the

original

Canadian

subscription to

Annual Meeting in 1953,
able
to
report that the

members

the

Bank

releasing their currencies to
encouraging
report

can

the

Bank's

Now

amounts.

development
to

access

capital

markets outside the United States.

moment ago,

sold for United States

nearly

issue,

It will be dis¬

in European cur¬
rencies, largely in Italian
lire,
Dutch guilders and Swiss francs
and it is the seventh of the Bank's

currencies

These

disbursed

entirely in

examples of

are

aging progress.
members have

encour¬

Especially during

the past two years,

European

our

and more

re¬

their

role of exporters of
the world.
They are
again able to produce and fi¬

sumed

once

their

nance

equipment

needed to
of other

The

Bank

welcomes

availability of
extent that

greater
to

the

private capital cannot

Opr

$50-million

meet

the

ital

into

will

do the

The

channels

most

amounts
which

ex¬

where

good.

itself

Bank

member

large

currencies

far have been wholly or

partly inconvertible and therefore

place ment of five-year 2V2%

what

former Governor of the Bank, Dr.
Pieter Lieftinck. The report of

sold

mission

Nigeria

made

was

available
earlier
this
week,
in
Lagos and Washington; the other
reports are nearing completion.
Two features of the Bank's oper¬

States.
to

outside

the

United

Subscriptions

amounting
approximately $78 million were

investors

different countries.

issue

lish

other

amon<*

mobilize
tional

capital

things,

interna¬

basis, and to do it in cloke

with

cooperation

private

capital.

traded

Bonds of this

\orK at

particularly significant and
encouraging. The Bank was estab¬

yesterday

,New

101, o full point over the
issue price. Five other offerings,

during the 12 months,
for

other

currencies

States

dollars:

one

for

sold

were

than

United

Canadian

We have done both with increas¬

dollars, two for Swiss francs, one
for sterling and one for Nether¬

ing

lands

success.

Most

year

our

lending during the

based on funds raised
private market.
This, of

course,

was

bonds for
one

not new:

some

the Bank's

time have served

of the chief

means

Governors

ft*- I

by Mr. Black to the Board
the International Bank

Reconstruction

and

Development,

^shington, D, C., Sept. 25,

1954.

all

Bank

and

first

the

United

bonds

sold

investors

months,

delivery

want
that

repeat

release

add

the

now

time

has

when the conditions attached

the

Bank's

should

rencies

use

know—the exact

anyone

credits

standing.

these

cur¬

reviewed

same

time

expansion
ment

that

^rre

interest

of progress

because

and

toward

all

con¬

the

the promise of further

the

volume
out¬

now

positive

one

toward meeting the situ¬

sibility

establishing

tralize

all

available

volume

long-term

invest¬

development.^
of the currencies

need

availability, without restric¬
of the capital subscriptions

infor¬

data

cen¬

the

plied

the

they

proper

can

overused

transactions.
misused
and

there

and

dis¬

some

inated
i

' ■

outside

the
'

available

now

United

for

orig¬

States.

resources.

that, in

It is entirely natural

world in which financial

in general, the most
method

nature

selves

and

the

projects

the

borrowing

de¬

them¬

impact

country's

balance

of payments.
But any potential
long-term investor—and not only

the

International
into

take

ternal

Bank

burden

use

ex¬

the

bor¬

excessive

medium-term

diminish

country's

long-term capital funds.

the

crease

total

short-

must

—

the

account

debt

rowing country.

indiscriminate
this

kind

costs

use

in¬

may

development,
continuity of

may
interrupt the
effort, may upset the balance of
investment, and may make the

goals
not

—

appro¬

financing

projects requiring
heavy
capital
equipment,
from
the
point of view both of the

too much credit given,
under the pressure of competition,
sometimes on inappropriate terms
pening

investment

and

harder,

easier, to reach.

Dangers for Exporting Countries

The increase in competition in
credits
.also
has
its
situation, in my view, is suppliers'
becoming serious. The danger is dangers for the exporting coun¬
ties. Supnliers' credit are usually
that
bad
credit
will
drive
out
and for the wrong purposes.

The

tional investment back into disre¬
a
time when the
negotiating adjust¬
debts ^ incurred during

pute—this
world

ments

that

still

earlier

excessive

"period

borrowing, over-eager lending and
mismvAstrrient

which

re¬

credits

serve

can

the
normal, short-term flow of im¬
ports or in1 financing investment
projects which can pay their way
the-

financing

purpose

for

term

which

But, although the

given.

of these credits

may

the
is

tnere

rate

risk

that

development,
the

use

short-term finance may be pressed

these

bevond

lirni+s.

this

When

happens the result is likely to be
unfortunate.

clude

not

but

teaches
count

pay¬

these transac¬
Experience

overlooked.

that it is imprudent to

steady flow of capital

Reliance

year after vpar.

means

balance

aspects
be

tions

the

can

sup¬

credits, indeed, in general
reliance on something par¬

volatile.

country

may

The importing
into payments

run

from

The

outside.

ex¬

porting countries themselves may
that

force

payment.
or

payments
them

difficulties

insist

cash

boom in the world

home market may make it pos¬
to

sell

need

for

cash

extend

and

reduce

credit.

There

the

drastic

was

cutback

and

looked forward to

that
as

w^at

period

part

Most of

European

in¬

coun¬

United

give

financial

type

aid

finances

the

exports.
of

export

capital goods; the other, without
suppying capital, underwrites the
risk.
Thus suppliers' credits,, are
usually made largely at the ulti¬
mate

the

risk

the

government

exporting country.

would- like

make

clear, of
that I am hot talking pri¬
marily about the flow of private
course,,

investment capital.

If the supplier
venturing more of his own
capital, he would necessarily have
were

concerned

with

the

financial soundness of the invest¬
ment

and
of

sult

with

the

creditworthi¬

country. But the re¬
supplier's
relative

the

from

risk

that

constantly entreating his
ernment

credit

grant

facilities.

exporting
hear

the

race

which
win

that

of the

because

Indeed,
was

other
So

race

competitors

the faster

each

can

goes,

go.

approaching, a
a
warning

are

about

the

liberal.

the faster all the others

situation

governments

developing,

none

liberal

each

complaint
are

own gov¬

countries

governments

difficulties that check further in¬
vestment

only

the

freedom
Nor
ments

minor

nations—and

States, Can¬
ada and Japan—now have one or
both types of official institutions

ness

Balance of Payments Difficulties

only

industrial

tries

the

to present an opportunity to

seem

the

now.

S"*mliers'

within

financed

the suppliers themselves.

One

just

had

Long-term capital funds repre¬
priate

turbing evidence that this is hap¬

tal

has

and
than

operations, $400,000 has

Bank

This is contrary to the
importing country
may result in slower rather
faster development.

paid.

credit

lending since the beginning of its

$1 million which

interests of tne

risk, in other words, that
the borrower may have raised his
rate, of investment only to find
that he must later make, perhaps,

every

the best
often hap¬

pens, under these arrangements a
higher price for the goods must

the

if,

even

the

And

useful of purposes nor on
of terms and

short,

raising capital by issues of
our
obligations.
inhere is still another way in
which we may utilize these capi¬
on

may be
importing

feel that the credit,

may

of member countries. We will also
go

advantage of

being available,
should be
ac¬
cepted even if not for the most

access

bought

have

country

Suppliers' credits, I need hardly
say,
are
an
appropriate type of
international financing when ap¬

sible

States

takes

outstanding.

suppliers' credits

tion,

three-fifths.

supplier

credit facilities

must

experience
we

credit

total

pos¬

would

service which

ticularly

evidence

kind

mation

Fund, has
vertibility

com¬

ation, I plan to explore the

pliers'

vital

this

But,

measure

relaxed to the greatest extent pos¬
sible.
The Bank, as well as the
a

but also

date

outside

where¬

our

liberal

believe

blamed

often, that I

will come, I hope, from the great¬

lasc

the
*An address
ii

guilders,

cur^ncv.

was

the

that

cations

ations du^'n^ the year seem to me
be

importance.
come

made

the

consider

received for these bonds and allo¬

Let

use.

I have said

race

petition in the offer of mediumterm suppliers' credits. The Bank
does not know—nor, I think, does

these currencies to be of extreme

entirely

limited

manufacturing

velopment

speed

has

have

competitive

availability

directly

in develop¬
exporting coun¬

Tne

project using its equipment.

petition in terms of price, quality

useful

this

far from

are

priority

therefore offers credits for financ¬

sent,

countries.

bonds concluded earlier this week,
was
a
United States dollar issue

the

and

market

ferred

credit and,

projects be--

try wishes to boost its exports and
ing

developing among suppliers. This
takes the form not only of com¬

capital
hasten the

the

development

risen,

good, and tend to bring interna¬

than dollars.

otner

has

equipment

passed from a seller's to a buyer's

credit is

million

the

bursed entirely

loans

think, remem¬
of what hap¬
pened in the 1920's and, bearing
that example in mind, we must
realize that the growth of credit
brings its own problems. As the
availability of capital and canital
ber the consequence

pro¬

$225 million.

total
recent

operations.

eco¬

of the

stage

world's recovery, I

cap¬

$100

than

the

Bank's

amount

most

improvement
in
Europe's
nomic position
has affected

this

must,

moting this increased flow of

the

offered—more

illustration of how the

is another

highest

mental needs.

whatever

Buyer's Market

Development of

were

three

dollars; but

half

Aus¬

incidentally,

ing undertaken which

made available. And the

But

loan,

takes

itself

Bank

maturities.

the needs, we
pect to play our full part in

investors outside the United States
took

this

the

men¬

Of the eight bond issues I
tioned

In July the

its first loan to

made
and

tria

capital

our

capital

our

available for lending.

was

Bank

offering of

the

European

Broches, a senior
Bank's staff; one
and
Singapore,
for

took

and

by Mr.

member

time

whole

to Nigeria,

—

Kingdom,

program

one

the

base

some

1951,

first

organized dur¬

were

steps

our

missions

and

this

still, and for

base—we

forward

local
vey

market

From

must continue to be, our most im¬

portant

became

sur¬

subscription

capital

StaW

which

were

Three general

Bank, in the
inevitably based

were

capital
the

U^Hpd

development—particularly on the
.formulation of development pro¬
grams and on the mobilization of
capital.

resources.

dollars drawn from the United

from

The Bank has continued, at the

request

financial

The operations of the

dollar

I
Important Survey Missions

internationalization

Bank's

repayable

increasing

balance of payments.

maturi¬

medium-term

and

while

the long

amounting to $52^ million.

tions—all without Bank guarantee

Since the end of

year,

1947

the

these
nearly
80% of them, the other investors
assumed
the
risk, without any
guarantee by the Bank. A second
striking fact was that participa¬
transactions

greater

second

largest loan
granted to the Netherlands in

was

European members.

our

Bank's

The

same'

One

—

and

—

lion.

shows

loans

sition

was

had sales from portfolio'
has been able to
participations by pri-^

amounting to

Our Annual

the

outstand¬

results

moreover,

equipment
naturally
welcomes
any^ opportunity to increase his
sales and he can certainly not be

participations can be ar¬
ranged with such funds taking

direct

vate

ly:

year.

dismem¬

sometimes

suppliers'

offered,

are

loan

to be coming

seems

The Netherlands is

time,

the

figures quick¬

the

being

barter

ing example of the extent of the
improvement in the economic po¬

was

which the Bank

in which

manner

credits

the

advance

as a

or, even,

The

economic

period of stagnation
of retrogression.

end

may

The

under control.

during

like to

mention

however,

new,

put portions of its loans
into private hands.
We lent, as
I
have mentioned, $324
million

ward curves. I
should

was

the scale

activities

our

finally solved,

Loans to Private Borrowers

and

If private
still hesitant about un¬

are

sustained

dertaking long-term commitments,

The dollar problem, if not

bered.

growing institu-?

statistics

arrangements

by private loan capital is deployed
internationally.

agreements

these activi¬

ago,

increasing.

are

ment-financed

mentioned

moments

tial loans going into private

hands. Expresses satisfaction over
Institution's increasing access to capital markets outside U. S.
Warns of serious dangers inherent in overexpansion of govern¬

and,

portfolio;
some

funds

vehicle for

Thursday, September 30, 1954

...

of this kind in the form
participations and sales of

capital

the balance of pay¬
ments and in distorting patterns
of production, have largely been
eliminated. The complex and un¬

tion, both

period in both borrowing and lending operations; with substan¬

We offer

lent

capital

that

and

short term.

cially in Europe. With some re¬
grettable exceptions, financial sta¬
bility has largely been achieved.
The debilitating effects of infla¬

Development

fiscal

developments

during the

President, International Bank for Reconstruction
and

important

operations of the Bank

equilibrium has
been disturbed
for a long time, the confidence
of investors returns only gradu¬

symptomatic of the improvement
in
world
production and trade

By EUGENE R. BLACK*
... i
it

Production,

Trade, and Exchange

in the

!•

Chronicle

The Commercial and Financial

(1274)

which

sounded 10 years ago at Bret-

ton Woods.
of

the

The spokesman of one
delegations there pointed

the

danger,

time

"countries
lateral

doubt

saying

pressure

would

credit

linked

for

that,

embark

arrangements

with

exports,
bi¬
no

deals

relating
to the purchase and sa^ of
goods;
and

soon

certain

began to adopt this

Continued

countries

course

others

page

Volume 180

Number 5364...The Commercial and Financial Chronicle

uranium

reserves
and undoubtedly there are many* reefs yet to
be developed.
Even known re-

Commission

Staff official of the Atomic
Energy Commission traces rapid
development of uranium mining during the last decade under
the drive to build up uranium
production. Says heavy military

requirements and prospective
tricity production

may

of uranium

survey

ore

of atomic

use

at home

prospects

ciimTtbn

with uranium

not

than $103 million annually.

been

asked

speak

the outlook for uranium
mining—
an

industry

which

only

six

war

really

began

Cites prospects of expand¬

uranium

was

years

material.

This

followed
at

major

previous
the

plants

re¬

had
It

sources.

quirement for

and

was

to
was

bring

mines

also

these

from

new

to find

necessary

into

and

ex¬

time

come

produce

appeared to be major.
The
uranium
to
feed

ra¬

radium

construction

fissionable

pansions which

dium, and the
world's

for

facilities

expansion

as a

source

the

primarily

Before

ago.

£4 .billion

additional

production

develop

is little chance that Russian pro-

had to be developed
economically the small

process

Pendlturys

tor

production

^Sted'StatiU
j.

and

inn

doll

™!}e

uranium

dustrv

uranium m-

„

However, to maintain high proproduction was made in Decern- production was from the Colorado duction there must be a high disber
1950? The first of 15 large Plateau. The Colorado carnotite covery rate. Even though some
uranium recovery plants went in- deposits
were
first mined for relatively large ore deposits have
to
production
in
October
1952
uranium around the turn of the been found, they will be mined
The
total
cost
of
these 'plants century. After the discovery of out in a few years. For example,
upon corfipletion of the program the rich Congo deposits in 1918, Jf
prospecting and, exploration
will exceed $150 000 000. The con-v vanadium became the sole inter- were to stop today, by 1962 we
struction
record has
been
out- est and uranium went into the would be hack where we were in
standing considering the size of tailings. Even
during the War f.94^ There would remain prac^
the
plants and the dependence when uranium was secretly re- tically no developed ore reserves
upon overseas sources for struc- covered
from mill tailings, the and probably few known deposits
tural steel and equipment.
mines were allowed to close when awaiting development. Again
decision

Congress authorized approximate¬
ly

but
determine

duction is equal to that of the
to recover
Free World, or even to that of
quantity of uranium in the tail- the Free World's .leading proings from the cyanide mills. The ducer.
A

ing markets for uranium.
I have

discovery,

•

aggregate

now

for

Here the problem

one

New Recovery Process Developed

and

mining

standpoint

for elec¬

energy

of uranium. Presents

new sources

abroad, and
exp?nd*tures for exploration, production and con¬

points out
struction

require

production

assure

years or more.
was

IT. S. Atomic Energy

the most important from the station almost as soon as a
deposit
of national interest, is found, and long before developThey are of greatest interest to ment has determined the reserves,

are

30 this audience. Their development This has made it difficult to plan
has been the most spectacular. In and provide milling facilities to
six years, starting with nothing keep pace,
rather of sampling to
but
uncertain
prospects,
the
the uranium content of the many United States has become one of
A $100 Million A Year Industry
mines of the Transvaal and Orange the world's leading uranium proT.
.
.
.
Free State, which annually pro- ducers. We shall be competing for jftiiQ ® J?P?ssi
£ I? measure the
duce
approximately
60
million first place and part of the time
®. a™wo°+L the prospecting
tons of gold ore.
be in first place. Russia, of course,
d*
^
j
lVJLS
is an unknown. However, there when this is added to the ex-

serves

By JESSE C. JOHNSON*

Director, Division of Raw Materials

(1275)

Australia

new

to the list

added

was

uranium

processes

Our principal hope for domestic

uranium

undertake

producing

countries

vanadium

production

longer

f^her® wo"^ bav<; to ,b® th® s1.0^
process of finding and developing
deposits before production

required.

was

supplied

for

easily by

Darwin, was practically no uranium min- could be brought back to present
grade sources, such as the South
The
Port
Pirie
African gold ores and
plant in South ing or prospecting, Known ore levels.
domestic
To maintain continuing producphosphates. Increased production Australia is expected to begin reserves were limited. Ore detreatins ore from the Radium Hill Posits were scattered and small, tion from Colorado-type deposits,
was needed

tial

par¬

Rum

operation

the

rich

Shinkolobwe
mine

the

dorado

normally

Jesse C. Johnson

El¬

the shore

Arctic

nranium
ly

of Great Bear Lake

Canada

pitchblende

with

its

rich

Canada

the
the

atomic bomb

was

all

activities

,and,
unlike
metals, uranium
not the object of a general

other
was

strategic

search. All explorations were
cpnducted quietly by a small staff.

Even these undercover investiga¬
tions had practically ceased
by
1947

when

the

Commission

responsible

came

have

taken

place

the

for

be¬

in<*

source

mill

greatly

establish
the

over

international

manufacture

failed.

had

weapons

1946

control

atomic

Communist

Russia's postwar policy of aggres¬
sion

becoming

was

dent.

Russia

labor into

evi¬

clearly

pouring

was

the

slave

mines

uranium

Czechoslovakia and East Germany
and

working feverishly on
atomic plants far behind the Iron
was

Curtain.

tinues
the

still had

the atomic

a monop¬

bomb,

was

not for

long—the time was shorter
thaik estimated by most experts.
Atomic weapons suddenly had be¬
come

dominant

military
action

strength

was

called

factor

and

our

aggressive

for to hold

our

Increase

production
when

build

began

had

uranium
early in 1948
up

billion-dollar

war¬

time plants to produce fissionable
material but an inadequate sup¬

ply of

the

basic

material—

raw

uranium.

Canadian

by the newly formed

Atomic Energy Commission indi¬
cated that lack of uranium might
be the bottleneck, both in meet¬

ing

essential

ments and

military

require¬

the future develop¬

ment of nuclear power for indus¬

trial

quirements followed in rapid
cession

Russia
the

after
had

A-bomb,

H-bomb,
Korean War,

our

terioration of
*A

paper

the

disclosure

succeeded

lished

paid

•

the

mill,

Jungle

start

the

At the beginning of 1948, there new

near

that

prepared by Mr. Johnson for

undertook
and

usually a few hundred to a few
thousand tons, and in the entire
history of the area, only two or
now active. Many uranium occurthree had been found which conrences are
being found in widely tained 100,000 tons or more.

mine

1955. These two
government-controlled but private prospecting is
early
operations

areas
and
Australia
Today probably more people
promises to become an important are looking for uranium in the
producer.
United States than for all other

separated

Portugal

de¬

producing

been

metallic minerals combined. Many
discoveries are being made. There

there must be an assured government or commercial market. As
long as it is solely, or even
largely, a government market,
the government's commitments
must be guaranteed for a considerable period. That period
should be long enough to cover
at least several years for explora-

tion and

production undoubtedly could be are now a dozen or more 100,000expanded.
France
is
obtaining ton ore bodies, as compared with
its

uranium

for

program

from

been

found

atomic

energy

pitchblende veins
Uranium has also

Limoges.

near

other

European

countries outside the Iron Curtain,

South America

is virtually un-

for uranium although with important developments now
several occurrences are
known, taking place in South Dakota and
Elsewhere throughout the world Wyoming Exploration is also acthere
not

are

been

vast

which

areas

examined

have

except possi-

bly for brief reconnaissance sur'

VpVc

the

Uranium

review

Sources

th^d ^

J®vide

'I™ orZt

expansion
i<;
are being built and old mills
being expanded.

This brings us to the market
for uranium. The present demand

California and Nevada,
Ore production has been doubling worn,
every 18 montbs and even greater
Market for Uranium

are

uranium

Because of the market provided

^■'marked

depends'

upon°the

lerm ma™et depends upon me
Continued on page 4Q

Mining
and
Refining
Cornnany developed an important
uranium
baska

deposit

where

Lake

Atha-

mill

began

new

This announcement is not

production early in 1953.
Private industry is activelv
number

the

with

ar^a

deposits under devel¬
Only recently the Gun-

opment

Mines

nar

same

obtained

from

private

development and

struction.
largest

bankers

This will be

miles

mill

con-'

Northern States Power

of the

one

River

west

promises

about

ar^a.

Sudbury.

are

On¬

First Mortgage Bonds, Series

Extensive

being found
beds. These

Dated October

old conglomerate
deposits
are
somewhat
similar
geologically to the South African*
gold-bearing reefs. Plans already

well advanced- for

the

due October 1, 1984

another

source.

uranium deposits

Company

(a Minnesota corporation)

North America.
Bland;

firtanGS

operations

uramum

$20,000,000

$19,500,000

mine

are

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

The

ex¬

one

1, 1954
i

Price 102.261% and accrued interest

two

1,000-ton-a-day

class.
Just

Canada

and

the

United

States worked; closely on the war¬
time atomic bomb project, thev
have cooperated

ing uranium
In

the
of

fullv

be obtained in any state in which this announcement is circulated from only
of the undersigned and other dealers as may lawfully offer these securities in such state.

expand¬

HALSEY, STUART & CO. INC.

production.

development
uranium

and

from

pur¬

HALLGARTEN

DICK & MERLE-SMITH

CO.

overseas

the United States and the*

United

Kingdom have been part¬
purchases are made
through the Combined Develop¬
ners.

The- Prospectus may
such

SCHOELLKOPF, HUTTON & POMEROY, INC.

WM. E. POLLOCK & CO., INC.

These

STROUD & COMPANY

WEEDEN & CO.

INCORPORATED

GREGORY & SON
INCORPORATED

ment

Agency,
a
joint
buying
agency set up early in World War
II
by President
Roosevelt
and
South Africa will be

ers.

Its

NEW YORK HANSEATIC CORPORATION
STERN BROTHERS & CO.

Winston Churchill.
one

of the

largest uranium producgold mines contain large"

September 29, 1954

marklt

inrentives

tive

have left our domestic under the Commission's program,
operations until the last. They ore begins to move to a buying

sources,

now^ ^

with adequate profit incentives
in
juid let private industry go to

mills
Domestic

five^years forProduction,

t-he
™ln1^ operations

two or three found m the place,
a
guaranteed uranium
previous 50 years. We also have mark.et of seven or more years
some million-ton deposits.
is desiraoie.
Exploration
and
production
The results of the domestic
have extended far beyond
the uranium program further confirm.
original Colorado Plateau area ^evlewofthe mining industry

the

prospected

estab¬

private

has

uranium for several years and its

for

are

Fldorado

chase
suc¬

but limited

expansion

These programs have
The Government-owned

off.

world's
1954.

for

velopment.

sources

making
the development of
the outbreak of the
and the steady de¬
world peace. In 1952

Free

mine

J.ake had

incentives

re¬

Congo's

the

aggressive exploration

use.

Large increases in military

and
been

important
of

Government

operations

A survey

most

major uranium

The drive

The

Eldorado

^ar

tario,

Production

have

except
for retreatment of tailings from
earlier operations.
However, the

Uranium

lead-

Mine

there

be,

Canada's

Theto

World.

I lead.
Drive

preservation

ploring in

Although
oly

throughout the

program, and now to the de¬
fense program, has been and con¬

possibilities

attempt in

all

since

contribution, first to the

Or°?+

The

with

war

atomic

peacetime atomic energy program

was

which'

expanded.

uranium

central

Congo

supply.

facilities

Arctic

important and

Before the end of 1947 prospects
for a leistirely develooment of a
faded.

The

developments

energy program.

had

other

Congo.

most

one

—

the

and

being developed, world. jt 'xm+ihnpc!

the closest secrecy surrounded

uranium

mines

Belgian

shared the market

from two relative¬

came

small

following its discovery in 1930.
During the period when the

ore.

long-range develop¬

are

ments became short-term projects.
In
1947 practically all of our

mine

with

immediately and what

the

Belgian
Congo. How¬
ever,

recovering uranium from low

month

this

SHEARSON, HAMMILL & CO.
HELLER, BRUCE & CO.

MIff*

(1276)

'• r. .fin-m-

er.'vt*

•?

•

■

hr! C>

*<»-

*> •

Continued

■.

The Commercial and

Financial Chronicle.., Thursday, September 30*.$95*;

find

will

tract

from page 11

of treating

of conscience.

the same lack
-

Anthracite Industry on
rect the past

isted in the

Althougn
in

speculative

in the doldrums there have been
few

exceptions

terest has been generated by

spe-

Prominent among the

rumors.

has

been

Pennsylvania
which previously had been among
has been that the road might
divest itself of some of its miscel-

mor

dividend.

branded

This

has

rumor

but it is expected that the
distribution will amount to little

dis-

tributing them to stockholders

seven

will run above $1 to $1.25 a share,
Presumably the long unbroken
dividend record will remain intact with a payment later this

the most sluggish issues. One ru-

laneous holdings of stocks by

first

months of 1953 it had had a profit
of more than $22 million. With
some pickup in business, future
year-to-year comparisons should
be less unfavorable but even at
that it is doubtful if 1954 results

cific developments (such as Katy
which was discussed last week) or
latter

the

For

million.

public in-

where

ventories of various sizes now on

1953 interim and the company
sustained a net loss of close to $4

railroad

general have continued

year

paore^than

been

token payment,

and

by all students of the com¬
pany's affairs. In its present status
it

that

inconceivable

ings assets in
show

other

rumor

return.

has been that

While

develop.
dence

for such
ests

been

support

important

any

evi-

has

Pearson

elected Vice-President of John R.
Boland & Co., Inc., 30 Broad St.,

may

efforts

the

crowned

can

not he is go-

middle

those

For

certain
taken

There

to follow,

course

who

of this

ture

the

foresee

present

this

here

which mark

impression that there was hesitancy and that we were shivering
on the brink. I was thinking oe
a well-known quotation from my
short-term drawings, stand-by remote ancestor, Samuel ..Butler,
credits, revised scale of charges, who, you remember, said this:
have played their part.
I should "He who fights and runs away,
nke to congratulate Mr. Rooth and
lives to fight another day.", I abthe
Executive Directors on the; solutely repudiate the advice of
sensible and
practical approach Samuel Butler. If we fight, we
which they are adopting towards
fight to win,, and we intend to

progres¬

fruit

One

merchant?

make

small

retailer

invest-

ground,

common

their

further

interests than any other

common

the

and

^flexible

practical rules of procedures introduced during recent years.
The so-called Rooth Plan for

ment in the Public Relations Pro-

done

Convertibility!

For

not he has enough faith in

future

there

are
as a

—

This Is Not the Time

definite indication is whether
the

very
or

dealer

anthracite

sive

attendance

besides

gatherings

industry

stoker

other

What

attending.

To assure a profitable mer-r
chandising program in ANTHRACITE — TODAY AND TOMORROW, make your choice of producer on the basis of his willingness to work with you—whether
it be in advertising, automatic

Continued from page 7

definite steps to be
successfully continue. I

those

assume

;

—

„

likewise true—the strength of a
retail dealer is in the selection of
the producer of his coal,

aid, budget-planned financing, and quality of product
_and on the integrity with which,
written con- he conducts his own business.

—

very

under a

just rights

fu-

great fuel, there are

has

remain in control of the battlefield.with all the prizes that come
about his hard coal future withdence that the Fund is ready to
to the-victor.
-..
,
.. r
.
out participation in this program,
make use of the waiver in regard v . And; if you will pause., for ,a
Next, is that dealer interested in to the amount of drawings in any moment, I will resume my
selling anthracite in its most at- one, year in order to deal with thought as follows. •
step taken in the history of anthracite.
One - cannot
be
serious

this year.

have stimu¬

rumors

dealer is whether

ing to continue to retail a profitable tonnage of anthracite.

This program, which has
brought together the
producer

to unseat incumbent managements

While these

Obviously the first

be made by the retail

and

opposition parties in three efforts

■

dealer.

decision to

gram.

ever

that

cess

that

made

move, speculative inter¬
mindful of the suc¬

are

there

William

a proxy

fight for control of the road

Announcement

An¬

retail

producers' and>retailers' yards—it is proper at this
point to consider the steps which
should be taken by the anthracite

indications

John R. Boland Go,

that would

manner

financial

terest

Pearson, Murphy With

Pennsyl¬

vania would dispose of any earn¬

both

hand

morning have made that decision;
otherwise there would be no in¬

ridiculous by analysts

production of anthra-

strength of a producer is in
his customers — weak customers
indicate weak producers; and it is
-The

the Mend

tions. The producer who deliberately refuses to meet payments
when due, avoids legal responsibilities, and ignores his debts will
be the same producer whi» is "living out" his existence in th$ coal
business. He will offer you nothing but today's sale of coal at a
price below his costs—this, possible only because his obligations
are something to avoid. An employer who will find ways of depriving his employees of their

ex-

cite—and bearing in mind the in-

Pennsylvania Railroad
stocks

conditions which

.and* means

ways

his best customers with

their problems.
We welcome

especially the evi-

lated considerable speculative in¬
terest in the shares, it is felt by
most

that

analysts

the

current

operating performance of the road
and its prospects do not justify any
enthusiasm
some

for

the

stock.

merchant cannot offer to his cus-

improvement in, the operat¬
the road's

present yard

tomers the full

...

has many

road

lerris that

serious probinherent in the ter-

are

ritory served and the type of busir
conducted. It has a heavy pasf
senger business which imposes a
serious drain on the profits from
the freight business. Distances between
large traffic centers-are
ness

short

that the* company gets a

>■«

■

Murphy hi

°*Pear#OB

New York City.

Mr. Pearson

for many years with

was

the Equitable

amount

short

Company,r National", City
Bank, E. F. Hutton and : Merrill
Lynch, Pierce, Fenner & Beane. A .
/; Charles O'Brien Murphy III is
!in charge of the Trading DepartHe

ment.

was

formerly with J. B.

Boucher

haul

sive terminal operations on which
costs have risen particularly
sharply in the postwar years and

achieve

difficult

compensating

Kenneth G.

J. H. Goddard & Co.

the business.

Despite

extensive, although
belated,
dieselization
of

lars

spent

vania s earnings

performance since

1946 through 1953 per share
on the stock have aver-

earnings

$1.75

only

aged

poorest

1946 when

the

and

Last

same

had

was

The

was

exactly

the preceding year.

On a consoli¬
basis, which the
company
now
reports annually,
the showing is somewhat better
dated

but

system

even

at that the 1953

amounted to only

Being

quite

heavy

level

$3.39

earnings
share.

sensitive

the

suffered

has

sub¬

stantially from the business read¬

justment
months.
seven

off.

the

Gross

past

revenues

for

months through July

19.1%

from

year

were

earlier.

outlays

cut back very

sharply and tax

have

been

lower.' Hjdwever,

13
the

Maintenance
cruals

was

with

Kenneth S.

May Is

have

been
ac-

substantially

mis

countries to deal- > with
particular balance of payments
nrnhl^mc >ThPv! hnv*»

b«>n- HSftrl" !

make the man, but

-say-*

With F. S.

•

...

time when the Fund will have an * the progress

Moseley

(Special to The Financial Chronicle)

Mass.

—

Kenneth

f®

^ Street, member, of
Boston Stock
Exchanges.
Mr.
May in

with

was

Stubbs

Whiting,

and

Arthur Perry

was

the past

Weeks

officer

& Co., Inc.

sy?tem envisaged by the founders.
\ .want to foll°w.thls
™^mg XIV P^tical suggestion.
Article
of the Fund, which

tising

can

you

get.

other

and

These

phases of

re-

tailing are necessary to the
cess

one

coal

suebut the

anthracite vard

9^?"

which

most essential to the

trade

selection

the

The producer with
viewpoint who will
have faith in both your and his
future will most certainly be one
good suoolier.
a

farsighted

use

re¬

quality for

to come.

years

The proper supplier is

postwar

£eU

program

the

There

may

f0*

international

rules and regu¬

lations correspond with the real¬
ities of current conditions.
There

special
our

pro¬

the
not

an advertising
v/hich will be both na¬

situation.

fee

danger> in eontinlling
too long a transitional provision
of this kind.
It is important that

with his dealers, will

jointly enter into

in-

was

deal with the dificulties of the

the

fnn?5?i

by his actions indicates that

produce hard coal of high

difficulties,

payments

are
still, as I have said,
factors which contribute
present equilibrium. But

obstacles
so

And

which

formidable

have been
so

prudence and yet with assiduity.
great movements in the his¬

All

remain

are

those which

overcome.

without

wishing

must

the world conceived as
have been and as this
in the human intellect,
work themselves out in the

hard

fairly facile

strictions to deal with balance of

ducer who,

May is with F. S. Moseley & Co.,

public

appraised accordingly/
A well-painted, clean
truck on
permits
the move is the cheapest adver¬

he will

BOSTON,

clothes repre-

school

ence.

Even

the

tory

they

may

has been,

has

gine

practical experi¬
Rolls Royce en¬

be tested

for thou¬

sands of miles on the bench.

not

must

inspired,

considerations.

social

ignore

the

ebb

too, by
must

and

flow of

political tides or the waywardness
and fallibility of human nature.
We must respond to the funda¬
mental
and

needs

man,

international

national

security, stable

employment
and
living condi¬
tions, and, above all, we must
recognize
that the free world
lives
and
breathes, strives and
in

the

fresh

air

prejudice the outcome one way or
the other, I suggest that the Ex¬

triumphs,

only

and clean

winds of initiative and

journals and local papers, and
join with dealers in direct adver¬

ecutive Directors should be asked

opportunity, and

such

tising campaigns, radio and teleThis producer should be

months the conditions for and the

the dealer in

transitional provisions of the

tional

and

local

scope.

should advertise in suitable

trade

vision.
one

who

will assist

study during the next several

possibility of

move

must live in

world if the spirit of man

is to expand.

from the

•in

Inree Wltn Daniel Kceves

Fund to the more permanent ar(Special to The Financial Chronicle)
rangements.
BEVERLY
HILLS,
Calif.
Such a study would, of course, Laurence Clark, David R. HopSAN FRANCISCO, Calif.
in keeping this equioment serv- have to be considered in conjunc- kins III and Charles G. Merrill
George R. Liddle IV has been iced at all hours with sufficient tion with whatever changes are ^ave become affiliated with Daniel
added to the staff of Irving Lund- inventory
of parts to minimize proposed in the GATT as a result Rpeve<, & rQ
398 South Beverlv
of the forthcoming review of that Drive, members of the New York
borg & Co., 310 Sansome Street, shutdown time.

Lundborg Adds to Staff
CSpecial

to The Financial Chronicle)

carrying

extensive

auto-

campaign, assist financially in these sales, and assist

matic

stoker

—

members
Co„

of
■

the
c.

New
,

York
„

and

San Franclsc0 stock Exchanges,

To retail dealers
sense

producer
who

four

all of his

**e was previously with Dean Witpoints higher than in the like ter & Co. ~
- "
•*:
v- -

having

strong

and Los Angeles Stock Exchanges,

These, are then my contnbuselected should be tions, in short, to the discussion
not failed to meet which we are holding. +
....

security for the future,

one

transporta-

tion ratio of 45.3% was more than ;

solidation ^of Jesuits already
achieved.;-Thisis jhe case in Eu-

dividual

tpwards greater .lihabout retail merchandising meth- opportunity
of playing a;..con-; eraikation of trade,, m which we
ods to men who know more about structive: role
in the concerted-4 want to sec: a greater advance on
retailing than I will ever know, forward movement. v/ .
the.-part of . certam . countries. It
Advertising- of the product' and *
And so we hope that the Fund is certainly so in our discussions,
the dealer's good name consistent- wilt continue
to. improve and which are making good progress,
ly, not in fits and starts, using the adapt its attitudes, its procedures in the provision of crejfct, and
various
media
available
today
and its rules to meet the new sit- is certainly so, m the.need for the
off
Good housekeeping of nation, and to assist the members Fund to develop its activities in
yard and equ?pme™tTe mark in the transition to the kind of- the waytherefore, the part of
I have mentioned.,
It is
of
good retailer. Clothes do not world-wide trade and payments statesmanship
to
proceed
with
little, for

the

rr»ainf

rules .of. procedure.' So

»ii»vtu»wmwa.

Buenrig

There

who

goods output, and

particularly to steel mill activity,
Pennsvlvania

Prior thereto he

Shields & Company and F. L. Putnam & q0.
-

realized in

been

Stock"Exchange.""Mr!

was

Co.

reported.

was

share which

was

sustained

was

performance
$2.92

Kenneth

formerly manager of
the bond department for Lamant
Colby

the earnings amounted

year

$2.81

the

deficit

best

when

1950

annually.

in that interval

year

—

the Boston

(^appointing. For the eight &

years

Mass.

Pennsyl-

years,

dol¬

-the end of World War II has been

quite

BOSTON,

Colby has become associated with
J. H. Goddard
&
Co., Inc., 85
Devonshire
Street, members of

millions

recent

and

improve-

property

ments

such sales,
assistance

sent 90% of the man to the

to The Financial Chronicle)

(Special

hundreds

f/wiav

flexible

far they have only been used

Davs

Colby With

-i

and

generous

4.♦

—

economies

than, it is in the road haul end of

somewhat

the

ninne

ImWn^'°",d ^i™ee

where

the

must necessarily attend
With

Trust

Co.* Blair- F.~ Claybaugh and Merrill Lynch, Pierce,
freight business ,which is rela-i^enner & Beane, and is a member
tively expensive to; .handle; .^Fir of the Security Traders Associanally, it has exceptionally exten¬ tion of New York.

substantial

burning; and

special situations.
The Fund is ^
certainly, getting useful expert-?
ence
in the use of..these"'.-more^•.y~-•

-Whatever. sector_;w_eA examine,
for-there is clearly need for.imaginaservice which isolated crises; sthat is, to help in- rive,; constructive- work .and con-

advantage of hard

including automatic

without

coal

im-

provement program, it is .felt that v.-Wm*
the

application—
An anthracite

tractive

ing efficiency is expected to result
from

domestic

automatic stokers?

While

has

duly contracted obliga-

You, sir, from the Chair, gave

„

Mr. Hopkins was previously with
Calin-Seley. & Co.

was

Mr., Merrill

with. H. Hentz & Co.

Volume 180

Number 5364... The Commercial and Financial Chronicle

(1277)

The

Prospects for Convertibility

attempt to spell out in

the

conditions

might wish

By HON. W. RANDOLPH BURGESS*

requisites

Under Secretary of the Treasury for
Monetary Affairs

sources.

Dr. Burgess declares
convertibility is
whose furtherance International

a realizable objective, in
Monetary Fund should play
an
effective role. Calling for
dismantling of discriminatory
restrictions, he maintains best hope of even the underdeveloped
areas lies in world
trading system based on freedom of pay¬
ments. Citing
large available resourc'es of Fund, Dr. Burgess
contends any nation
seeking assistance must come with a posi¬

tive

constructive

which

lay down

for

detail

the
as

access

Fund
pre-

its

re-

be helpful.

It would

the

of
to

proposes

Fund

with

positive steps

take

convertibility.
would

ment

moving

Such

local

program

Annual

Report

[of

Inter-

national

but will encourage similar action

Monetary Fund] which by
discussing today has for its the

we are

central theme "The Prospects for
Convertibil¬

exchange
policies, its policies for main¬
taining internal financial stabil¬
ity, and its plans for eliminating

gent

analysis

those

de-

velopments in
world
and

trade

payments

which

give

reason

be-

lieve that

con-

vertibility

objective.

for us

poses

the task of
W.

Burgess

realizable

as-

suring that the
is

Fund

abroad.

better

This

markets

and

Throughout

discussions

our

convertibility

should all keep
importance of having

in mind the

the broadest possible
participation
in a major move to

This
the

convertibility-,
simply a question of

not

success

general

such

beneficial

move

effects

its

for

the

free-world community as a whole,
It also involves the direct advanr

tages

which

will

accrue

country. These advantages
great for the smaller

each

just

are

under-

developed countries as they are
for the major trading countries.

fully

There

has been

some

tendency

to believe that sound currencies
facilitating action by its mem- and
convertibility are luxuries
foers. Quite properly the Report which can be afforded
only by
does not attempt to forecast the advanced countries of
major im¬
mature
and timing of the steps portance
in world
trade.
This
in

by individual
of countries,

When it does come,

ity will foster
foundation

for

balanced

the

growth of international trade.
It
will help provide an environment
in which capital may move more

accomplish this purpose, cur^
F

1
To

effects of any

demand

excess of

monetary

the balance of

pay-

and not

—

least
vanced |?me °f the relatively adEuropean countries
—

comnanied

trade

and

restrictions
elimination

__H

dismantling

discriminatory

the

of
oi

elimination

restrictions for
balance of payments purposes ex¬
quantitative
qud

oi
of

use

cept in special circumstances.

Economic

exchange controls and bilat-

expect the
freer movement of goods and cap/ital not only to strengthen the
eral dealings

we may

of free

economies

™

well

our

economic strength,

character of the Fund's
In

ble

are

well

presently converti¬
those which have

yet to move to convertibility.
With respect to the
nomic

foreign

eco¬

policy of the United States,

President

the

stated:

has

foreign

capital

shun

the

area.

best

hope

the

under-

developed areas over the longer
term lies in the development of a
trading system based upon
freedom of payments and a mmcan

tiona,

quantity

across na-

boundaries.
1

Now it may be useful to turn
briefly to
problems
be

of the

some

the

can

first, because

the growth of our

own

and the attainment
.

•of

rising standards of living for
our
people can materialize only
in step with economic growth and
improvement in the economies of
the free world linked to ours.
more

it is in

our

est

have

emphatically true because
enlightened self-intereconomically

strong

friends throughout the world.

The

prudent widening and deepening
of

the channels of

trade

and

in-

vestment

determining

convertibility.
Fund's

use

the

broad

First, how
be

resources

to most effective

put

in support of

convertibility?

other

some

formal

by us will not only progood results in themselves

♦Statement
cussion

ternational

by Dr. Burgess at the rfi»Annual Report of the InMonetary Fund, Washington,

the

cn Sept. 25,1954.

countries

extend

moving

They

all

will

the

bility of the Fund's

than

the

Fund

ect

tinuous

review

problems

system

such

and

important in¬

international payments.

Another
point we should be
thinking about relates to Articles

Article

XIV

was

member

designed

countries

are

mos^

the

safeguarded
to

fortunate that the

they

are

have been

the

postwar
available

now

the

objectives

for

were

established.

The

support
of

resources

Fund

during

the

Fund

are

not

limitless, but they do provide a
major source
of secondary re-----

which

only

particularly

centralized

government

shut

were

own
,

came

about when communities and

free to look after themselves—includ¬

protection against the so-called local
•

warn

to
mm m

the problems of postwar rehabili-

Article

VIII

U. S. FIBERGLASS

substantial

when

progress had been made in finan¬
and economic reconstruction.

cial

Article VIII

substance,

vides

that

member

restrictions

pose

ternational

may

approved

the

Fund;

150,000 Shares

no country may engage
discriminatory currency ar¬

multiple

practices except
article
teria

INC.

in¬

except

also, that
in

PLASTICS,

im¬

current

INDUSTRIAL

pro¬

shall

payments

currency

CLASS "A" COMMON STOCK

approved. This

wisely lays down no cri¬
determining under what

for

conditions

countries

may

impose

Within

the

broad

restrictions.

Offering Price:

limits of the Fund's purposes the
Executive Directors are given full
discretion

cumstances

The
Al

been

passing

indicate.

has

Fund
,

$2.00 Per Share

the cir¬

proceed

Copies of the Offering Circular
...

...

may

be obtained from

„

dence

and

coun-

through a postwar
transition
Period which we hope may be

tries in

meeting temporary swings

drawing to a close. The improved

balance

state of world economic affairs is ||
an important and encouraging de- i—
velopment. It reflects expanding ||
production, and the overcoming
°f the postwar surge of inflation,

serves

the

reserve
can

can

assist

add

confi-

member

fund,

payments.

no matter how

substitute

for

sound

large,
mone-

tary, exchange and trade policies,
The primary function of the resources

of the Fund in support of

convertibility
the

public

will
that

assure

resources

are

If Is. a. gratifying tribute to the
convictions of the financial leadworked

sound

temporary adverse shifts in
which

arise

from

time

the

here

assembled

ers

available to offset those speculative
movements
of
funds
and
trade

UNDERWRITER

member

ment

who

have

many

countries to

progress

IMlfE'OTI&IA

|J|t|^jt9lAL

AAIII1

lilwtwl IlilS

UUIlla

send

offering circular

Tel.: BOwling Green 9-5240
U. S. Fiberglass Industrial Plastics, Inc.

M
Name

City

1
in

world

Addtess.

(Please print full name clearly)

currencies, bring govern¬
budgets into balance, and

For* further

'Please

achieve

...

It would be inappropriate here

—

80 Wall St., New York 5, N. Y.

reduce inflation.
,

APUPnil
— —

effectively in

halt.

meet

Yes, Mr. President, it is certainly time to call

XIV and VIII of the Fund Agree-

ment.
assjst

So the

aams

monopoly is always potentially dangerous to.
freedom—even when monopoly is exercised
by gov- •
eminent.,.Curiously enough, they proclaim their
fear of a private
power monopoly in a county, city
or
state, but urge upon us all a gigantic, over¬
whelming, nation-wide power .monopoly."—Presi¬
dent Dwight D. Eisenhower.

power

that

ft
that/

which will have

build

difficult to

money.

"These believers in centralization fail to

ill.

most

course, not

else's

'someone

necessity of the proj¬
suitability of its location. Secondly,

prosperity

'interests.'

sarily implies that action by one
member of the community will

with

advocates

ing their

multi¬

for good or

quick look at this matter.

place it is, of

with the

citizens

lateral trade and payments neces¬

affect the rest

Eisenhower

development of this
They must wonder how

arising in international

payments.

Pres.

poor

their eyes to the remarkable
nation during past decades.

con-

trends

these

serve

effective center for the

with Federal
money is not directly or
concerned with the economic

Center for Review

for

ever

as an

Govern¬

can

individual who wants

quickly and effectively to
genuine cases of need.
a

generous

mo¬

that adequate funds may be com¬

The Fund

believe,

"In the first

mitted
meet

Federal

"Now, let's have

fi¬

resources

the

be protected
against exploitation against
they call the 'predatory' exponents of capital¬
ism—that is, free enterprise.

interest

the

preserve

private

citizens

nancial assistance should the need
It

any

what

may

simply desire to keep the Fund
fully apprised of their programs

arise.

should

have

J11—
A
with the door open A
to request

eliminate competition by provid¬
ing steam-electric power as well.
"Only thus, these zealots would

not need such

may

arrangements.

those

duce

develop¬
power

provide all hydro¬
electric power it should likewise

be desir¬

may

Fund

convertibility

rangements

Liberal Fund Resources Available

which

This is true,

Fund's role in support of
move

nomic relations between ourselves

the

since

ment

specific lines of credit for definite
periods through standby arrange¬
ments
adapted to the needs of
particular
countries.
However,

specific

which decisions will

required

period

that

resources.

in large

day bear
heavily upon us the imperative
necessity of building stronger eco-

economy

cases,

for

government

JJ^Tad^ oXinsuch ^ evironS tation- 11 was envisaged that the
^t
expecf eapUaf to would be superseded by those of
obligations imposed by this Art.cle

resources

events of every

and the free world.

assur¬

fluence

speculative channels, such as real
or into
hiding abroad. It

recently

most

"The

some

able

pursuing these objectives, all
responsibili¬
ties. This includes countries whose
In

countries have major

currencies

give

estate,

move

nally but also to bind them more
closely together—to contribute to
our political and economic unity
as

An effective

also

Policy discourages real savings and
j,i.r0c noniiui
drives capital either into domestic

The

and

re¬

pay¬

desirable therefore
opportunity be given for international consultation prior to
i—.
decisions by members of the Fund

Unity

community of free nations
which is less divided by quotas
Jn

has

demonstrated the inflationary
dangers of this approach. Such a

makes

Help Both Political and

Would

and

should be carried out by With a broad move to convertideficit financing, offsetting the bility, it will be more important

country after country

•

reducing

trade

hydro-electric

develop such power
to give to a special
group an asset belonging to all the
nation. Indeed, in some
instances,
these disciples of centralized re¬
sponsibility and authority insist

of maintaining the revolving

ance

doctrine has its roots in a notion
that economic development can

ments by exchange controls and
quantitative restrictions on trade,
freely across international bound- The postwar history of investment
aries into- genuine long-term in- and
development programs in

vestment

and

its

capacity is

convertibil- anc*.

firmer financial

would

program

prepared to play an effective role

which may be taken
countries or groups

discrimination
strictions

ments arrangements.

co-

Broad Participation Urged

The Ret is

p o r

route

better feeling."

ity."

friends

our

who contend that the

some

distribution

company under governmental reg¬
ulation to

its

encompass

are

and

exclusively the responsibility of the Federal Gov¬
ernment.-They argue that to permit any State or

rate

The

here

Good Sense!
"There

clearly desirable

seem

come

program

Hails world's expanding produc¬
tion and curtailment of
postwar inflation surge.
program.

assembled

influence -within

country seeking assistance

■♦should

their

Sound Program

leaders

and

each member country.

considerations

general

Borrowing Country Should Have

that

financial

the wisdom and courage of the

However, the suggestion

some

may

payments and trade arrangements
we must continue
to rely mainly

State.

(1278)

The Commercial and Financial Chronicle
i

the past

eight

in : that

years.

1927;

*
-

By WALLACE STREETE

Traders

(

looked like

10-for-one

year,

1%-for-one

Detroit Bond Club

Elects New Officers

1935;

na-

one

1950

vestment bankers have elected T.

and

again twotural arbitrage between for-one this
year. This means
By all logic the protracted Standard Oil (N. J.) and Hum- that for each
pre-split share
acting as strong this week as advance in stocks that began ble Oil
SONJ let it be known of 1922 there
currently are
they were just about a year a year ago should have that
it was thinking of mak- * 600
shares, and at $50 a share
ago when the list began the "topped out" by now and a
ing an offer for some Humble now there would be a $30,000
current
uninterrupted re¬ corrective reaction in prog¬ stock to
bring its 72% con- peh/sfra^e value on the 1922
Technicians
can
covery from the only major ress.
point
trolling interest up to 80%
certificates.
•
■
.correction in the long post¬ to many indications of such a
the minimum percentage
*
*
*
* ■
•
;
war bull market.
development; yet demand for allowed under the new tax
-Mercantile

quality

stocks

Mich.—Detroit's in¬

DETROIT,

off two-for-one in 1937; two-for-

scared

were

from what

Good

move

capitalize at : least shares have been split six
part of the retained earnings times since 1922—five-for-one

THE MARKET... AND YOU

Thursday, September 30, 1954

...

N'orns

Hitchman, Kenower, Mac-

Arthur &

Co.,

President of The

were

seasoned

industrial

issues

stocks,

came

law for permitting the con- alive ; in
the period.
S2ars
Resumption of heavy insti¬ persists. To many only the
solidation
of
Humble
with matched in a few sessions this
tutional buying of
railroad group shows indica-;
top-quality
SONJ for- income tax
pur-- week the four point gain of
motors,
oils,
aircrafts
and tions of having pursued an
poses.
n last week. Federated Dept.
chemicals sent shorts
orthodox readjustment, j
scurry¬
Stores was another
good
ing to cover with the result
*
*
*
v
'
The terms were indicated
gainer in this group. Montthat prices soared as much as
as
nine shares of treasuryPension Fund Impact
gomery
Ward, however,
four to six points for some
held SONJ common fbr each
lagged, and acted heavy ever
There's
the thought that",
leaders in one session due to
10 shares of Humble.
Both, since the
with heavy
secondary offering
the currently thin markets.
investment de-!
Humble and SONJ had sharp; of 38,000 shares
early in the ;
mand bringing many leaders
*
*
*
late last week,-, but week.
to new highs daily at this the, runups

Hitchman

Norris

Victor P.

Dhooge

General

Strongest
Motors

tail

the

was

can

strongest acting pivotal, add¬ the

end

the

month,

how',

the process

be reversed in!
days just ahead? Large

Humble

the 90
ured

did quite rofich

never

"exchange value" figthe

basis

SONJ

selling at 100.

•
ing more than a half dozen sums for the accounts of pen¬
*
*
*
'
points this week to its five sion funds - are continually
The best level.reached by
point runup in the preceding flowing into securities, but
Humble
by midweek was
period. Brokers point out this is especially evident in86%, while SONJ moved to
the action of good
many reasons for its advance
quality
around
101,
Traders
shied
a
possible year-end extra stocks the first week or ten
away from .large-scale arbidividend, high earnings com¬ days of each month.
traging pi this situation being, to-an estimated $8.75 a
*
S?t
❖
cause
Jersey wants only ~
share or around $2 a share
Although a wide list of oils limited amount of stock, and
better than in 1953, continued
participated in the market the undisclosed final terms
heavy defense orders, and the
upswing .1 this; past week or may contain a joker in that
optimism of the president
more, the action of three was. the Humble stock to be tendvisiting abroad. Chrysler got
into the swing a bit later, ad¬ outstanding. Standard Oil Co. ered, if the plan ..goes into
of Indiana decided to pay off
effect, may have to be of a
vancing sharply on the com¬ some
of its "obligation": to the
"vintage" record date; -that
pany's pledge to get more
shareholders through a twois, a date considerably before
than its previous share of the
for-one split, a move which the first
total motor market next
inkling of .the pro.

\ *

;

% Textile mergers continued
make

for

stock

market

1 movements. Pacific Mills

half dozen points

up a

basis of

ran

the

exchange offer puti
forth by Burlington Mills.
an

V *"

•

—

year.

found the stock

rising, sharp-' jected offering.
.
r
ly in anticipation and also in
%
*
*
*
V
Du Pont couldn't be left be-,
post-action,,movements, Indi¬
It may be because of better
hind because of its huge f inana Standard in the
postwar billing in the June 30 edition
vestment in General Motors.
period had 'the lowest cash of "The Favorite Fifty" that
Consequently it ran up as dividend
payout among the the steel shares have-again
much as six points in one ses¬
top 25 money-makers which found favor in the market
sion.
It
was
not
the
only includes
nine petroleum place." Bethlehem vied with
strong spot among the chemi¬
firms. It was only 28% and] U. S. Steel this week for atcals; Monsanto -and V i c k
*

found

easy

'..

right

step

along.

the decision to double its out¬

standing stock represented

tention

with

of- them

both

Action in American Stock
;

H. Schollenberger
>

Bond Club of Detroit, for the
year

Exchange

On the American Stock Ex-

change GneseaitCK
.Brewery moved into

Wtauaii
new

high

ground on news the company
was selling its brewing assets
to Carling Brewing Co. for
approximately $10,000,000.
The stock is around 18, and
including cash and other assets not involved in this sale,
about $19.50 per share is expected

to ; be

available

offer

is neither

buy

is made

offer

sell

nor

solicitation of

any of these securities. The offering
only by the Offering Circular.

General Nucleonics
which

wholly

Corporation

••

There's the belief around that

The Radrac

contracts

Company

Air

in the

are

The Atomic Center For Instruments

Some Stiff Resistance

Equipment, Inc.

Some

Atomlab, Inc.

•

Force

making,
J
.'
%

declines

450 advances,

versus

owns

additional

stocks,

•

Monday/

and

541

OFFERING:

meanwhile,

59,500 Shares

market

Halsey, Stuart Group:
/Offers Utility Bonds

An underwriting
group- headed
by Halsey, Stuart & Co. Inc. on
Sept.
29 offered
$20,000,000 of

States Power Co, 3 y8 %
mortgage bonds, due Oct. 1,
1984, at 102.261%
andaccrued

first

article
time

has

been

m o n

held

trading

t h s,

range

and W

its

the

bonds

evidence

as a

har-

many

that

the

whole is not

going
industrial

[The

views

ance

not

coincide

Chronicle.

any

the

presented

Jtlnghouse "™ "<

The

GEORGE F. BREEN
_

115

Scott

Underwriter

Broadway

*
o

New

York, N. Y.

B A relay

Paper:

bow this week.

new

made its

The two-for-

been

formed

with

Theral

R."

7-3860
run
,

approacn tn^ DU

mark. Therein lies

tale: The

for other purposes at prices rang¬
to par.
'
*
-

ing from 105.27%
Northern
an

Steed,

States

operating

with

its

Power

public

and,
engaged

subsidiaries, is
the electric

principally rin
busmess

North

Dakota..

Minnesota,

Dakota
serves

and

Wis¬

and

South

Minneapolis

electricity and St. Paul with

electricity

and gas. Other prin¬
cipal cities in which the Company
its

subsidiaries
s^vices

furnish

one

include

Eau

Dakota

Claire

and

Crosse

and

Wisconsin.

LAUDERDALE,
name

evard,

drew B. Knox and Co.

Carl E.

and

Company, 207 East Broward Boul¬

the

Fla.—The

Rnox-Hinds

has

and

Co.

utility

Company

Dickstader;

wilford W.
Timpson.

redeemable

offices

Newhouse Building to engage in
a,securities business. Partners are

split issue proceeded ta Fischer; ..Jonathan M. Hammon,
un
tn
annroaeh
th^ 50 Rulon T' Jeffs; Russe11 L- Kunz'

one

Telephone;

Now Andrew B. Knox Co.

underwriters

early months 6f

will

.SALT LAKE-CITY, Utah—Al-

jie(j

1954 and

bonds

sinking fund purposes, begin¬
ning Dec. 1, 1955 at 102.22% and

FT.

!
the
con¬

for

firm

eauinment section
equipmeni section.

the

South

are

Fargo arid
Minot, Narth Dakota, Sioux Falls,

necessarily

They

used

bid

this

with

those

sale

1955.

expressed

the

struction program of the
company
and its subsidiaries for the bal¬

with

Circular upon request

trical
iricai

will

from

their

Proceeds

awarded

were

underwriters

1000%;

rrore

probably the most
important among this group.
rowest

Price $5.00 per Share

gas

meeting stiff resistance along
with- vthe
present
levels. General average.
1
-

Electric is

C. ^Bechtel". of

Corp., and Milo iO. Osborn/of
Paine, Webber, Jackson & Curtis.

consin,
/

Tues-

were

declines

349 advances

versus

day.

Charles

are

Cummings, First of Michigan

Schollen¬

Watling, Lercheti & Co., Cecil R.

Steel" moving ascribed to the way the marinto new high ground.
ket/-acted ;on Monday and!
*
'*
*
• Tuesday this week. Although.
The aircraft, with Douglas, the Do w-J ones industrials
Bendix ; and Boeing in the gained on both days to fresh
lead,, were in demand highs since September, 1929,
throughout the period, tack- in both sessions there were,
ing on gains that ran to six considerably /more declines
points for four sessions, posted than advances — 479-

some

tors

interest. The bonds

strong, r"Big

•

elected Vice-

was

Herbert

Campbell, McCarty Co;,
Secretary-Treasurer. ;
•; .'-'•'•.'in¬
completing the Board of Direc¬

Co.
and

berger,

vSome storm warnings are*

announcement

President

comes up* Northern

for stockholder vote Oct. 25.

This

Bennett

for

shareholders. ; There ,was no
immediate decision! on whether the firm will liquidate or
operate in another business
after the sale, which

1954-55,
succeeding . Robert
D.
Savage of Baxter, Williams & Co.
Victor P.
Dhooge of .Manley,

has

been

changed

Now Scott &

to
;

An¬

Company

MONTGOMERY, Ala. —John
Bradford Scott, Bell Building, is
now
doing business as Scott &
Company.

Volume 180

Number 5364... The Commercial and Financial Chronicle

(1279)
in his own field, cannot crash it
except at prohibitive cost.

Belter Profits:

Key to
Expanding Economy

fWe

occasional

see

chanical

clever

that

devices

are

in¬

must have better profits if

living,

expanding

two

and

economy

strong

for

exist

company executive points out no econ¬
diet of losses and no nation can grow great

on a

concerns

beset

by hazards and booby-traps. Urges

market research and cites research methods and
tices of

and

profits if
higher standards

have

are

living,

Every

considerable periods at more than
100% of theoretical capacity. Our

co m

p a

steel

and

sales

great, provid-

ways

stable

econ¬

And

who¬

heard of

backed
In
I

Wiuie

ties

about

most

effective

talk

and

not

experience in Republic.
going to do with com¬
plete frankness.
am

able

Now

edge

have

that

personal knowl¬

now

future

still

depresses

what it means to operate at a loss.
For the first five years of its ex¬
istence

Republic Steel Corpora¬
tion
operated in
the
red.
We
fought to stay alive. There were

expansions,
no
new
jobs.
Every penny we took in was used
to
keep
afloat.
Those
years,
gentlemen, were bitter years.

Doctors

that

say

frequently mark
of

ance

is true

To "

with

live.

better
profits through
selling sounds simple. All

department.

But

it's

not

easy

enormously

city

Better

great

selling,

deal

than

sales argument and
door bells and

selling

has

cut

its

friends, is

better

ringing more
price—better

roots

deep

down

in the industrial structure. I don't
care
how good a
salesman
you

may

be, if the traffic department

doesn't
ised

back

you

with prom¬

prompt delivery; if the
department doesn't

pur¬

chasing

the best

raw

possible

department
product

buy

materials at the best

prices;

the

doesn't
to

research

keep

ahead

the

com¬

petition; and finally, if the
duction

pro¬

department doesn't build
in the product and fails

quality

give the customer the kind

service

then

you

improved

and

sales

argu¬

increased

your

entitled,
door

ringing are not going to get
very far.

That is
tence and

talk

which

your

ments
bell

long, complicated
but

but

this

pression situation.

It appears that
all business, the

total

sum

1954 may well be the second
best year in history. And
yet, as

year

I say,

ities

one-third of

steel facil¬

our

idle.

are

the

Product

This is

common

some

degree, in a great many
businesses, particularly those en¬
in

gaged

the

goods.

So, in

basing

our

production

I'm

been

not

go¬

ing to.

new

thinking

ally is

the

tions

The

this:

can,

and

thing—but

posi¬
since we

can

Can

con¬

these

can

products

sold

about

them.*

about

out

some

new

qualification.

products

can

generate

ago,

the

and

which

very

before—not after—capital
made for tools and

are

recent

81%

survey

ference

23,

Board,

New

York,

1954.

Y.,

Con¬

Sept.

and

allies.

our

repre¬

That

steel

tance,

outlets

One of
rials

being done,
private capital,
much of it reinvested profits.
Yes,
without better profits to reinvest
in

material sources,

raw

position

(3)

Can

If the

negative,

normal

profit?
of these three
have no further

to any

answer

interest.
If the entry into new fields is
beset by hazards and booby
traps,
it can nevertheless be very re¬

warding when properly researched
and planned. It is almost
impera¬
tive in these days of rapid

change

that any successful business must
be alert to new or
corollary lines
with which to bolster and supple¬
ment its

existing business.

time

same

At the

must

constantly be
the lookout for developments

in other fields which
may supple¬
ment its established markets.

our own

product

company we conduct

research

along many
lines.
Basic
steel-making proc¬
esses
change slowly, but refine¬
ments
and
improvements arise
constantly. An observer of our in¬
dustry wrote only a few years ago
that
President
McKinley
could
visit

modern blast furnace

plant
encountering anything to
surprise him. That is no longer
true. Republic's pioneering in
top

without

acceptance.

duced

method

re¬

fuel

improves

consumption and so
furnace efficiency that

steels.

shortsighted
aloof

this

from

the country's

capacity for basic pig iron.
cost is relatively small when
pared

with

new

blast

The
com¬

furnace

Such
of

the

whole

field

things as the top-charging
electric furnaces, a method in

which

and

both.

Commercial

use

promises

rapid

ment; it

closer

come

New

Each

Operating,

our

fabricating

sions also has its

its

sound

Committee; this meets with

the

headquarters

committee

been

marketing

These

tail what that

atomic

division has under

development and what its possibil¬
ities

are.

some
*

revolutionary

changes

ourselves
we

tionally
who

been

with

All

this

nuclear

which are continually
being brought to us. The only
thing such businesses usually have

intimately associ¬

the

may

application

uses.

seem

Through

Better

common

consume

physicist

pretty far
afield from the subject of Better
Profits

businesses

changes as they
incidentally to protect
against
painful
sur¬
have employed a na¬

known

has

ated

ad¬

of such

and

prises,

We also explore the merits and
demerits of acquiring all sorts of

indus¬

To take full

processes.

occur

with

steel.

that

they

Few of these

pro¬

posals stand up under careful an¬
alysis.
The occasional one that
appears to

have merit becomes the

subject of

market study by our

Commercial Research Division.
One of the most important con¬

Selling,

but I cite these examples to illus¬
trate the many considerations in¬

without loss of valuable heat, has
greatly narrowed the cost differ¬

volved in keeping the products of
a
basic material industry up to

ential

date

rate organization of its own. Some

between

ventional

do these and
as

electric

and

con¬

open-hearth steels. We

matter

scores

of other things

course

keep

better

that

can

back

products.

product
or

our

one

can

All

into

cor¬

the

continued

of record only.

900,000 Shares

Sometimes a market, though ob¬
viously large, is so completely and
satisfactorily served by existing
o

1 d

Raceway, Inc.

Common Stock

1 i

Price $1.00 per

Copies of the Prospectus
as

are

newcomer,

manufacturers
no

that

matter how potent

the

one

fit easily and naturally
already established dis¬

NEW ISSUE

Audubon Park

not

existing sales organizations,

of these shares having been sold, this advertisement
appears as a matter

marketed

whether it will require a sepa¬

products

selling.

Then there is the matter of

ollary

our

siderations is whether

may be obtained from such of the undersigned
registered dealers in securities in this State.

mistakes

made

regular intervals to explain in de¬

behind the product after

introduction.

were

have

divi¬

New Prod¬

own

ucts

due

should

Com¬

Industrial Engineering
I attend all meetings

first, to the
sound marketing infor¬

which

the

aver¬

the entire top of the fur¬
swings aside to permit re¬
charging in a matter of minutes
nace

the new products de¬
by some two hundred
companies failed to sell. Most of

mation

Products

of all

were

just

are

which sit key represen¬

Legal.
myself.

develop¬

well result in

may

perhaps

Charge of Research
Development. One of his ac¬

and

consumers

Treasury,

do not have them for

enormous

sales of steel

raw

tivities

sale, we must keep abreast of new
developments in fuels and power.
are

our

tatives from Sales,

Developments in Fuel and Power
we

ore.

President in

development for

atomic fission to industrial

today at thirty million dollars.

basic metals.

While

that

mittee

iron

To pull
development work together
materials, in processing,
in metallurgical fields other than
steel and irony and in the hun¬
dreds of products of our fabri¬
cating divisions—we have a Vice-

research—namely

research

trial

such

fabricating business.

age

—in

stood

con¬

all the

day get

would

our

believe

shade below their all-time peak.
It
is
in
these
manufacturing

lines

reason.

vantage

furnace

indeed

who

problems which confront the

Titanium illustrates another
type
of our product

10% without any physical change
in dimensions. Every ten furnaces
new

the cost of titanium down to a
level which will permit wide com¬
mercial use it may very well have
serious impact on our markets for

stainless

some

friends

windows.

windows in the meantime

attention.
Republic is
cooperating substantially in its
development and recently ac¬
quired a large deposit of rich ore

the average output is increased
by

equipped add the equivalent of

based

centrated

we some

consequence

noteworthy that

and here again new fields
open before us. Titanium, today's
wonder metal, is receiving con¬

When

aluminum

is not quite respectable for a steel
company to promote a product not

lurgy

in Mexico.

selling

This still shocks

This is particularly true in metal¬

energy

This

are

it is, war forces re¬
search of all kinds to proceed at
a feverish pace regardless of cost.

method.

industry—

servative

Wasteful

this

steel

ous.

blowing of blast furnaces
is leading to widespread adoption

pressure

the

and

building field convinced us there
was
nothing temporary about its

and the nation—would be hazard¬

a large
building mate¬
particularly steel win¬

steel

The
advances
made
by
aluminum in the architectural and

the

(1) Can
sell it?

(2) Can

divisions is

our

dows.

add, with

new

regular distributing
handle it.

our

can

producer

and elsewhere. It is all
may

un¬

complements
pipe and, of utmost impor¬
our existing sales force can

sell it and

reserves in Minnesota, in Labra¬
dor, in Africa, in South America,

pany and the know-how that went
with it.
We find it

for

power

these three questions:

veloped

enced newcomers.

351st

industry

the i balance

the

that

for

by Mr. White at the
Meeting of the National Industrial

steel

and

brushed it off

important but, instead, we acquired a small plastic pipe com¬

we are now obliged to
spend
hundreds of millions of dollars to
discover and develop new iron ore

machinery.

reveals

by successful compa¬
nies, remember, not by inexperi¬

talk

deposits

could have

why

outlays

industry had, for more than
ten years, enjoyed a
ready market

♦A

costly world
lifetime our

when plastic pipe

ago

methods

new

enthusiasms

steel

everything it could produce.
Anything we made could be sold.

Our

sev¬

showed indications of
becoming a
standard article of commerce. We

Possible

costly unless tem¬
pered by careful study of markets
may

program
year

ore

ourselves

Like most formulas this is too
pat and too simple to stand with¬

to the lack

Until

within

immediately interested
years

profit?

and

•

product
the many

ulti¬

are

eral

can

acquired in advance, and secondly,

most

regular

important,

absence of

industry because I know

demonstrate

market either exists
be created?
And most

As I have already said, I am
going to talk about my company
my

in¬

largest producers of steel pipe,

produce any¬
sell it after it

the failures

Steel Industry Situation

actu¬

concept is
simply
within reason, find

means

is produced?
that

seems

competitive sales

ditions.

the many younger

responsibility

faced

ways

have advanced

last

new

who

men

It has

new.

long it
Qld-timers and
use

that

make it?

hard

our company we are

current

out

volume

one

Sold?

situation, in

grief

reason

lines.
In considering
products brought to our attention
we try first to
get the answers to

Can

sen¬

I could almost
stop

right here,

way

base, the steel industry
has operated through August at
102.9% of capacity, scarcely a de¬
as

concept which is not

it sounds.

any

country that even a moderate set¬
back creates problems. On an in¬
dex basis, using the 1947-49
capa¬

that will

do is pass the buck to the sales

Thirties,

abiding

earn

better

have

productive capacities have in¬

creased

that

long

look.

new

bal¬

not, I have

events

the

Whether

lives.

our

past
for

horror of loss operation

stay

the

•

which

in the foresee¬

which

comparable
our

implying that

situation

given

our

This I

one

during the terrible Thir¬
being brought out and

are

dusted off

making this talk I feel that

can

lush

principles
and
by which we fought to

practices

industry?

prosperous

market

survive

was

abrupt change from

almost-forgotten

nation

growing great
unless

brains

irritating

omy on a diet'
Df
losses?
ever

their

less

and

find
ourselves
operating at
only two-thirds of capacity has
jolted all of us into entirely new
channels of thought and necessi¬
tated a reinspection of our whole
concept of management.
Some

service

the

racked

new

of saying "No."

seller's

perform¬
a

invent

The

employment,

last possible ton of

frequently operated for

people

growing

strained

o e v e r

heard

ing

toward

was

expanding economy,
strong nation.

and

emphasis
production.

greater

to get out the

W h

ing

ing
prac¬

Republic Steel Corporation.

We must have better

the

assuming

basic

one

maintain it in the face of declin¬

selling

only

truism

wars

tremendously

American

evitably goes with designing, pro¬
ducing and marketing a new prod¬
uct, and that is to improve the
company's profit position or to

unless backed by a prosperous industry. Decries
price-cutting
to increase sales and warns
entry into new fields by business
'

the

by the side with the
dominant supply of war metal. In

sented

There

won

Mesabi

Marketing

Research

to have higher

we are

and

ahead

have

men

effect that all

conflicts

nation, prominent steel
omy can

the

that

Production

Asserting

Military
mately

they cannot be sold.

little

were

triguing that it comes as a shock to
find, after market investigation,

By CHARLES M. WHITE*

times.

me¬

President, Republic Steel Corporation

standards

abreast

Berwyn T. Moore & Co., Inc.
314 MARION E. TAYLOR BLDG., LOUISVILLE. KY.

Gearhart & Otis, Inc.

F. H. Crerie and Co., Inc.

74 TRINITY PLACE, NEW YORK 6

19 RECTOR STREET. NEW YORK 6

page

The Commercial and Financial Chronicle

£)

Thursday, September 30,

...

1954

(1280)

Taxing Process and

The Fedeial

designated a

bill and sent it on to the Senate
Finance Committee,
In the Senate, i the legislative
process ran truer to its traditional
form.
The Senate Finance Committee hearings opened on April 7

repeatedly

increase

with

taxes.

was

only by taking a
reduction bill which had been

made

fact, it

asked
Congress
to
tighten, not liberalize, the tax
laws relating to family partnerships and other income-splitting
devices, capital gains, percentage
the speed of the depletion,
and estate and gift

tax

income

1950

tax provisions as "loopholes" and

increases

tax

should note that

clear understanding of the year-inyear-out process by which the Executive and Congress convert
tax needs and tax ideas into law, Professor Heller traces the
Stressing importance of

liberalized tax laws.

within
two months and an excess profits
tax within another three months;
and the quick tax reduction after
VJ-Day in 1945. (Even here, one
income

Administration,

of Business
University of Minnesota

sisted Congressional pressure for

re-

Korea in

HELLER*

By WALTER W.

quick

the

1954;

to the outbreak of war in
June, 1950, in the form

sponse

The New Tax Law
Professor of Economics, School

bill

tion

ocratic attempt to substitute an
increase in personal exemptions
for the dividend credit provided
number of existing by the bill, the House passed the

sidies, the Treasury steadily re-

one should cite the "one
month wonder" excise tax reduc-

ation,

possible

The Eisenhower Administration,

its way slowly

wending

step-by-step progress of the Tax Revision Bill in Congress.
Makes comparison of U. S. with the British-Canadian systems,
and lists advantages claimed by the latter as well as proposed
reforms in U. S. legislative system.

the

tune with Congress than the pre-

The more

1950.)

summer

tw0 weeks and 2,443 pages later.

the

verted many a

rporate

profits, before
tax, into in¬

by the reve(five months);

1941

who

this

early

hower

month

Those

they are
dividual
the

structure.

testify

tax

in the 1947 Ways

For

example,

and Means Com¬

hearings, representatives of

mittee

organized groups were heard
—all but 12 represented clearly
defined business, labor, agricul¬

the

main, the 25-point tax reform
program embodied in the Presi¬
dent's budget message in January

the

Senate.

do so at their own
With
few exceptions,
there to pursue some in¬
or
group self-interest in

t0 which bothcould subscribe. the
Congress and In
White House

(gj The Tax Revision Bill of
1954 ,n Congress: The 1954 tax
jaw signed
by President Eisen-

the

and

request.

have been enacted in 10 of the Committee were used to good adpast 15 years.
vantage in developing a program

economy,

tremendous tax and
spending powers to shore up the
economy when it sags in depression and damp it down when it
overflows in, inflation.
its

using

con¬

decrease

the

for

wheel

balance

profits tax last

of Congress

pace

acts

both

hearings,

public

House

matters is illustrated
nue

worth pausing to
characteristics of

It is probably

note some of the

January

typical

virtually a 50-50 basis in corporate profits and losses, and
on

George
Public hearings foluntil they were closed off

lowed

in tax vious Administration. As a consequence,
frictions were minimized in the course of the joint
1942 (seven months); 1943 (five preparatory work of the Treasury
No other year in U. S. history strongly influences consumer marmonths); 1951 (ten months); and and Congressional tax staffs. The
can match 1954 in the significance
kets for goods and services
1954 (13 months).
It may be of five months' hiatus between the
of tax legislation for private in- through income, payroll, and exvestment.
Expiration of the $2 cise taxes; and (3) most important interest to note in passing that open hearings and the executive
of"Vn it serves" as an economic major tax increases or decreases sessions of the Ways and Means
billion excess
■Iw-S

Introduction

defense of the House

Humphrey.

being more sympathetically inthrough clined toward "incentive taxaCongress since February of that tion"
and viewing "equity" in
year and
converting it in mid-, taxation in a different perspecstream into a tax increase bill in
tive, found itself much more in
tax

a warm

bill by Treasury Secretary

150

tural, or professional interests. It
is also characteristic of the hear¬

ings

process

that the interests of

taxpayers as producers rather than
as
consumers
are
being pressed.

investment class by itself, both in duration of this year appears to have been
and procedure. In a sense, the a product of that cooperative Again, this is hardly surprising,
tax.
At the
genesis of the law can be traced Drocess In the lieht of thi<? hark_ since the impact of taxes on proT
tame time, the
to the Fall of 1952, when the Ways
f"
f"1 ™
ba™ ducers is more sharply focused
and identifiable than that on con¬
3.0% reduction
sain a better understanding of and Means Committee initiated a the ..pr'esident,s tax program» resumers.
Particular producers or
in
the indithose
policies, especially in the questics"™fy
ceived such a favorable reception
\idual income
groups of producers therefore find
field of taxation, is the main pur- thousands of taxpayers, tax prac- jn Congress
titioners, and representatives of
tax
released
One may note in passing that
it worth their time, trouble, and
pose of the following discussion.
various
professional
and
trade the
33 billion for
incorporation of a specific tax expense to pour out their tax woes
Oi
Walter W. rtellcir
groups. The more formal legisla¬
private
in¬
program within the framework of
to the Congressional committees,
tive process began
on
June 16, the
vestment
and
The Federal Taxing Process
budget message is also a new
The entire process takes place
1953, when Chairman Daniel A.
consumption (offset in part by the
departure.
In this case, it served without kleig lights or television
Because of its compelling
jng- Ree(j opened public hearings with to inject the Administration's pro- cameras, without the inhibiting
31.5 billion increase in social se¬
nificance
for
investment
deci¬ the following statement (in part);.
curity payroll taxes). / An added
posais into the legislative process fear of perjury indictments, and
sions, the content of this year's
turn, then,

At every

after

creases

prospects and investment decisions
will
be
strongly influenced by
Uncle Sam's fiscal policies.
To

...

billion

carved

was

reductions

excise

ous

far

from

last

the

vari¬

April
And

taxes.

last,

but

important to gain a clear under-

least, Congress has just

standing

tl
txkle

,,
the

•

innumer-

•

technical

business

and

vestment

for

concessions

and

tax

process>

ular

those

have at' least

private

any

spectac¬

taxation,

may

investment

have been

private bank financing
Commodity Credit Corporation

past year,
of

loans removed $1 billion from the
T

.,v.«

Federal
tion

TT ,.1

«i

facilities

power

the

for

Commission

Energy

and

■private development oft the Snake
River

shift

would

millions

hundreds

from

dollars

fi-

tax

mancing to private loan financing.
Much of the President's $50 billion

highway
would

development
financed

private

investors

by citizens

than

Presi¬

the

perhaps

and

examining

sions that the Committee-hammers out the basic decisions in the
l°rm af a
which it sends to
floor

the

House.

the

House accepts it, it is passed
to

along
the Senate Finance Committee,

sa-

rpnpntpH

repeated

thp

in the

Spnafp

for

vate

investment,

sight

nificance
and

one

of the
of

should

not

continuing

government

sig-

taxing

vestment outlook.
.

•

planning

House

tion>

an^

and

finally

President's

desk

Since

veto.

Senate

confirma-

travels
for

each

the

signature
of

the

spawns

ations
headlines and sPeculat ons

its

$70

bilUon

ing

for nearly

wth

ler

first

business
total

with

House

the

Code.

Revenue

of
It has often been said that

reduction

two months.

dozens

upon

lubricant

the

The bill,

tax revision and reform.

left

Committee's

the

—

hands,

advance of the

legislative

year

question 'was an unusual but
very
practical
step. * Chairman
Reed rightly foresaw that weeks
and weeks of open hearings at the
beginning
to

the

traditional

the

condemn

the tax

according
pattern might

year

revision

bill

to'

untimely death in the rush to
the political hustings in the sum-

The

Committee

hear¬

ings also fitted in well with the
atmosphere
of
Executive - Con¬
gressional relations on tax matters
-an
atmosphere
characterized
k

•

-j.-

Bankers

Aug., 30-31,
Will

lectures

emerged from the corn-"
accompanied by a 600-page

bill

mittee

report, and was forwarded to

amendments

are

$4 billion in the peak

year

its operation and

receding later to

around $2

billion

Accompanying the bill

pre¬

sented to the House of Represent¬

atives
444

was

report of

Committee

explaining and defend¬
ing the bill. Submitted also was a
pages

miroritv reDort of 24

naees

1??" °' ,\P?g,e„s

rpnre-

senting the views of the 10 Demo¬
cratic

members

the

While

committee.

25-man

commending

technical
the

aspects of revision
law. the minority re-

tax

attacked the "basic change
in tax philosophy" represented by
port
the

bill/ especially

concentration
concentration

of
ot

tax
tax

heavy

its

benefits
penents

credit

and

controversy.

targets

again

were

knocked

fact, the Senate all but
the dividend credit.

At the

out

•

time, personal exemption in¬
creases were voted down in a se¬
same

ries
vers

year.

numerous

the order of the

exemptions

Personal

day.

and

debate

chief

"gag rule," and

Senate accepts no

lively

the

Needless to say, the

Senate floor.

the

Congressional staff estimates, it

intricate

during

political maneu¬

Senators

which

actually voted for one form of ex¬
emption increase or another.
In
other words, 92 Senators can "o
back

with

their constituencies

saying that they
voted for an exemption increase.
Yet no increase found its way into
the tax bill since the form pre¬

clear conscience

ferred by the

Republicans was de-

feated by the Democrats and vice
versa.
Such are the politics ot
taxation.
From the Senate, the bill went
to the conference committee cornposed, as usual, of the several top-'
jwscu, ds ujuai,,,,

°n major tax bills of the Past doz"

the bill
^"han'EK b£n ^.^^fisead v- 1955^- versions ofthe single were wasZ^TZZr^reZ0ciled, and
version
sent back to both Houses for con-bee^r/de^es^for manyof
firmation. After approval of the
tbe tax reliefs and concessions
enue

bill

reaches

the

White

House

the President's signature

—

for

from

loss

billion

$1.4

the

mention

loss

billion,

failing

probable $3.5 to
of the bill when

fullv ooerative

by the new tax law. But

Truman
upon

Administration.

protecting

the

Intent

revenue

line

with

customary

proee-

the floor of
under the "gag rule."

dure, the bill went to
the

House

This
on

allows

only

limited

debate

the bill and requires that, ex-

por.tico io Portico, one might say the face of high government ex- cept for specially designated prowfs^ 7T?lve to 10 montbs elapse. Lest penditures and protecting the tax visions, the bill be voted on as a

Association, Madison,
1954.
The second lecture

given in

the

Central sftat^sS<crnf^nrp'bA th*
ican

Toward the end of June,

vision.

dividend

the

advance

After the Finance Committee
hearings closed, two months again
elapsed in executive session as the
Senators strove to revise the re-

the

„

first step in the legislative process
by holding public hearings months

Sorting out tax fact from
tax fiction under these circumstances tends to be a hit-or-miss
ence.

seemed to bear this out: according

sion without further hearings, provided some $1.4 billion of tax
thereby speeding up the entire benefits for taxpayers in the fiscal
rp
Jl
i— -L 1.1
R J
legislative process. To detach the year 1955, rising to perhaps $3.5

annuil 1"fro™ fi.ve to.,10 Provided

by Dr. Helthe School of Banking o'f the linitwo

Internal

dozens

tax

oveTs50billion ofbf oJ ^nths.-Th^t is, from the time the for the most part, it met an unan/se^
Administration's tax proposals are sympathetic response from the
a
4 servlces> (2) it shares submitted to Congress until a tax Treasury under the Roosevelt and

•The

the

875-page bill rearrang¬

the

law

gaps,

some

two

providing and liberalizing the tax

spending
conHs
g

floor

points.

hearings,

After

revisj"g many sections of it, and

clearly defined tax

Five
months
later, in January, 1954,
the Ways and Means Committee
went directly into executive sesran

the

ia 1 1 v
The

staffs, and

tax

exneriexpen

on thp hasis of their own
on the basis of their own

hundreds of tax-"1 process.

upon

suggestions.

form of

Congressional

payers'

Internal

ing" is left almost entirely to the
committee members themselves

...

m^nd°thre JbaTic fact^about the ^r^
^ Pr0C€SS *
Gove'rnS'Tl5) U dwarfffny Par -f°r this legislative course
customer

was

pres_
ooi«
2,916

months of steady effort, the Committee sent the fruits of its labors

the basis of equitable

„

steoc

other

liability.'

bill

The

Senate.

expert counsel to cross-exam-

gL1atir„ ini"allv/ ^a"d business and the upper income ranking_ members of both parties
g
,1 1™LLatLV/ ana
In the year-inTxnaver mavhe nar! Li"1? ?n the part of ConyealMn: the average taxpayer may be par- oV™ and hy greater* Treasury" Sroups. The minority report also in_ the Senate J1"?"®®, ?.?£,
of investment doned for being a bit bewildered Co„EreSsionaf harmnnv
in
tax criticized the Committee for givWays and Means Committee Here

spending policies for the in-

year-out

tax laws

hill

Thp

yonng tbese djrect ^and sharply ^en «goes t0 conference," returns
focused fiscal stimulants to prilose

and

' whereupon the entire process is mer of 1954.

t? several weeks of executive sessionsv It is in these closed ses-

the

dent's suggestions are carried out.

nvn

followed by several days

rather

taxpayer's

Federal

program

weeks,

ait

w» 111 t

budget. Private construe-

Atomic

for
months before hearings begin. On
major tax legislation, the hearings
typically open with a statement
rv-P
A /J
'r<
of the Administration's tax proposais. The Ways and Means Committee then proceeds with public
hearings, usually lasting several
tax staffs has been going on

For example, in the

budget.

mid-January,

hundreds

Revenue Code that will found our

open

.sliced off of the tax-financed Federal

"It is the committee's plan to

history of

with
Ways

ine witnesses either directly or via
the newer off-the-shoulder style,
In the absence of cross-examina-

pages of its June-August hearings,
countless studies by the Treasury

have legislation ready for consid-

Traditionally, the legis-

lative

Federal

not been eliminated but

sions

an tnnir?

consideration.

a tax bill starts
hearings before the
and Means Committee of
the House of Representatives. Often, preparatory work on the part
of the Treasury and Congressional

the level
spending, but to what
might be called "budgetary spinoffs," spending items that have
of

Means Committee.

nn.A

legislative

illustrating both the long
the long of it

General:

I refer here, not to

run.

wln'S! nnilfimSftn

(A) The Legislative Process, in

long

the

and

naony will be confined to 40 topics eqUjppecj not only with the
adopted b> the committee foi ident's proposals wnt with
:jorii)c
nmnnoaic but

revision work will be

great an effect on

tax

statement by the Secretary of the Treasury to the Ways

revision bill which eration. next January based in
was
jn the Congressional works part on the suggestions that have
for over a year, the short of it in been offered and that will be ofthe excise tax reduction bill which fered during these hearings.
was whisked through Congress in
"It is the hope of the commitone month.
tee that the culmination of this

Developments in Federal budg¬
eting, while not nearly

Code.

Presidential

formal

message or

jn the huge tax

in history,

measure

particularly

the tax

ancj ^e short of it

in-

than

nnrtirnlarlv

legislation

instructive

This

law

into tax

;deas

lpcnciatirm

year's

changes and improvements, the 1,000 pages of the
new tax law provide more special
benefits

tax

V(3S>r'e

•

process

and

without

™e in*e™ai' When the Ways and Means Com- tion by staff experts, the process
l"at
®se jiealrings win mittee convened in executive ses- of "fearless sifting and winnow-

and Congress convert tax needs

Together with

pa.yeis.

able

palates of hungry tax-

the

Means

and

Internal Revenue

the

the year-in-year-out
which the Executive

morning

Ways

business

passed the most toothsome "tech¬
nical revision tax bill" ever to
+.

Committee
will begin
public hearings directed toward
the revision and overhauling
of

legislation is the main order
in our discussion of
Federal taxation.
But it is also

tax

form

"This

by con-

business

and

turners

subsequent issue.

this suggest that Congress is incapable of speedy action

tax-

structure
against
encroachment
by various special reliefs and sub-

whole

"take-it-or-leave-it"

basis. After beating down a

Dem-

cqnferencereportby bothHouses
—not without considerable^ opp

^tl0I?'.^sp€C^al^n}

white

tbe bl11 was

^ous.® bJ

President signed
later. Comparison
(C)
_

'
_

jav<

ot L. &• a a
British-Canadian Systems: In

Volume 180

Number

5264

The Commercial and

Financial Chronicle

(1281)
looking

students

the

and

tax

our

legislative
imperfections,

its

and

process

finance

some

government

legislative

that

often

philosophical lines. It grants

our

system

less

and

Administration

cumber-

efficient, but

the

not

support
can hardly
active, and it has since

bill, its opposition

be called

pre-

did

and British cabinet system of gov-

fers the greater openness and disT
persion of power under our systern. Through our traditional sys-

ernment.

the

tern

our

tiple centers of power, greater reliance on laws than on men, and

going is the first of two

greater opportunity for taxpayers
lo
be
heard
in
the
legislative

ond

look

with

envy

separation

lative

Canadian
with

contrast

presidential
Canadian

process

tne

under

powers

the

system,

system fuses
executive

and

British-

the

legis-

branches

forming a government—that is,
the prime minister and his cabinet

of checKs and

process,

embraced

rise tax

that

tures by Dr. Heller.

the

presidential

often

system is
serted,--and the taxing

(a) closer and

by way of illustration. • In
Canada, for. example, the finance

senting

responsible

for

legislation

pre-

and

portunity
from

passing

for

the

executive

lature, from

the

legis¬

etc.

billion

parliament.
etary

quick

(2)
_

action,

deliver

can

expire

the

cabinet

0'' /

Central

on.

excise

Approximately
of

enacted

;

1951

April

were

the

;

E. F. Hutton
■;■ ■

needed

such

was-

areas

(3)

Coherence—a

balanced

fully
in

system,

program

the

care-

executive

the

light of budgetary, ecoriomic, and equity requirements is
not torn apart and put back together again in the
legislative
process—as

it-

often

was

Congress in the forties and early
fifties. (4) Protection of the publie interest^-the Canadian system
ic
*aid
tn
is
said
to
give wlaflw,v mnrP
relatively more
weight to national as compared
with sectional interests, to general
..public interests as compared with
special private interests.
t

/Defense

proceeds

the

"y^s,

onVa

S./system
but"

basis.
,

„

before

same

tively. lighter
classes

come

excises which

Canadian

system

on these four counts, it is
pointed .out that the lb S. system
is not
incapable of delivering on

each count.

publican.*,.

For example, the ReAdministration /.and

^D^^recDcnshdlit^^or^^he^huffe
tax revision bill

the

reduced.

a.'"double take'Vreveals

speed, the quick
to

gress

budgetary and

needs

1954

1950

and

excise

speedy

As
of Con-

response

tax

cited.'

economic

again in the
reduction of
coherence

through executive-legislative
operation, the 1950 revenue
and the

creases

and large the

closest

and

most

were

ones

co-

in-

1954 tax overhaul

po-;

Dominick & Dominick

Opens Buffalo Office

reduced

that

are

...

BUFFALO, N. Y.—Dominick &
,

Dominick, New York Investment
banking firm and members of the
charged at f;fre drugstore or beauty!-'.New York, American and Toronto
counter, at the ticket window and: Stock Exchanges, has announced
on
the telephone bill.
T^iose on! • the opening of a branch office in
consumer^

apparent

They

the

separately

are

liquor. tobacco> and aut6mobiles
paid by the manufacturer and;

are

tend

b/more

hidden

taxpayers''view.

from

the

Clearly, in the

%&&&£ excS
f *v

passage

the

^Mr. Knox was previously con-

v"!
Were! in Buffalo of Western Hew York
Company and the Marine Mid¬

taxes were:

No Ways and Means Committee
deemed necessary in view of the
fact that a good share of the heartugs in the summer of 1953 had
been devoted to excise taxation,
After

Buffalo, at 237 Main Street under
the/management of Seymour H.
Knox m-

d°:

taxei

House,

the

this

land Trust

financing—the sale of 200,000 shares of
shares of 4.20% preferred stock of $50

amount

about

further

financing will probably be necessary

July 6, 1954 in amounts which it is estimated

■

outstanding

now

■...

Year

would

hardly

billion

months
war

A
not

tax

selfish

interests

have .enacted
increases

$15

the

following the outbreak of
Korea.

second

depend

line

defense

does

these

examples
of what the. U. S. ..system can do
at

its

upon

best, sipce there

comfortable

number

examples of what it
worst.

Rather,

are

of
can

un-

offsetting
do at its

proceeds

along

confirmation by- both Houses,
and presidential signature in time
to beat the April 1 deadline, thus
ence,

postponing some reductions and
substituting others. Although the

recent

sale of

53% Tax

$10,145,000
*11,765,000
12,715,000

1955

*$2.76
3.52

3.96

13,745,000

1956
1957.

♦On.

$3.87

$4.34

—

increased

for

allow

was

described

possible equity

47% Tax

t$3.51

f 3.25

^Includes

shares.

estimate

The

sales.

Security Analysts;
Share Earnings

Net Income

1954__»—-

only small amount of EEI
'.'conservative."
:-:Does not

financing.

nonrecurring; $800,000 was spent

Some recent expenses were

in preparing the rate case and setting up original cost figures. On
the other hand the company will lose some profits from sale of

which amounted
June 30, 1954. When
completes its own generating facilities, of course, this business
disappear. On the other hand the company owns 20% of the

electricity to Electric Energy Inc., revenues from
$3 million for the 12 months ended

to over

EEI
will

of EEI and

should obtain future benefits from (1) purchase

cheap power from

dividend income on the

considering current and future earnings, analysts like to

know

its plants, or (2)

investment.

"interest

the amounUof the

construction credit," which

The amount of this item has been

noncash bookkeeping item.

estimated

follows:

1955-$300,000

1954-$983,000

1957-$135,000

1956-$365,000

dividend has been paid since 1949. In the meantime
has increased sharply and the dollar has depreciated.

Vy The $2.20
book value

President Van Wyck hopes to
next year,

dividend

the

raise the dividend to $2.40 some time

perhaps to $2.60. However, the results
earnings will be watched carefully before,

and eventually

of the rate increase on

is raised; probably in six to

nine months directors/

will be able to act.
Future

Company of New York.
and

Hastings, Roach Opens

the New York Society of

talk before

a
■-

the

stock

consideration will also be given to
par

splitting the stock

stock may be changed to a par

has been selling

value issue. Thet
4,5%.

recently around '48% to yield about

[ Offices in Ft. Worth
FT.

WORTH,

Texas—Hastings,

With Daniel D. Weston

speedily to the floor of the Senate, formed with offices at 817 Taylor
.LOS ANGELES, Calif.—Ray K.
There,-< several amendments were Street to engage in a securities Ford, Karl J. Frank, Roy G. Hall,
added, the most significant one hiicjnpcc Officers are Robert E Philip
K o s t m a n,
Arthur
C.
being Senator Douglas' measure to
p"c,-Ln+ n v plh Moniak, M. Morton Strassman,
extend
reductions to
various HastlnSs' President, O. V. Roach Jack G. Waldron, Bernard Walper
household appliances; The meas- Jr.,
Vice-President, and G. B. and Joseph O. Wolvin have been
ure then went through confer- H a 61 i n g s, Secretary-Treasurer, added to the staff of Daniel D.

narrow

the

Giving effect to the rate increase and the new financing, share
j

only

(following

'•

Senate permitted two days of R
hearings and then moved the bill ltoacn

•

Depreciation,

pointed to with pride.
Finally,, a Congress responsive
can

million.

$71

possibly 1957;
electric, gas and steam heating rates of the company were

3,010,000
stock).'

"stock

after

Recent

revenues by some $5.4 million per annum, based on
approximate level of business in 1953. After ""allowance for
income taxes this is equivalent to about 86 cents a share on the

joined the
was
estab-

;izes in securities of Midwestern

But

some

the choice

,The taxes that

are by

group

fcKjSf'g

this year.

will increase

St.,

in-./corporations,

upper

than

an.

effectiveness of the

the

were,

litical wisdom in

the

LaSalle

the lower income classes and rela-

That is, the desirability of achiev-

responsibility, speed, coherand promotion of
the^ general interest is not questioned. But
first, even without questioning

be, tempted

in effect

area

earnings were recently forecast as follows by President Van Wyck

lished* and Mr. Sloane had been
wisdom of the a floor man for Bache & Co. and
decision since as a group the ex- Pempsey & Company on the Midcises that were not-reduced on west Stock Exchange,
/'>'
April 1 bear relatively harder on >
Weinress & Company specialmight also

the

doubt the political

ing

ence,

South

May. Mr. Joslyn
dom of the congressional-decision.r: firm shortly after it
Qne

of.

care

1956

cles.
Looking at the 1954 sales ; George R. Joslyn and Harvey
figures and earning statements of Sloane, each with 25 years ex-,
the liquor, tobacco, oil, and auto- perience in the investment busimobile industries, one has some\ness, become partners in the firm
reason to doubt the economic wis-

have

v:;

stock and 180,000

Thus

money.

Anniversary

The firm has been at the

231

serves

amortization, and retained earnings over the next 3V2 years will
amount to $49 million, leaving only $22 million to raise in new

address,

Union Electric

efficient generating units.

par—reduced

cations and transportation,; furs, Chicago, since it started in 1929.
and jewelry than in the more pro- It is a member of the New York,
ductive excise tax areas 6f liquor, ; Midwest, American, and
other
tobacco, gasoline, and motor vehi- leading stock exchanges,

the. economy
workable
under
such

taken

The

amosements, cosmetics, communi-

help stabilbecomes more

ize

common

ible

policy

company's construction program will continue fairly heavy
through 1957, with estimated total expenditures of $80 million,
including $29 million for generating plants. The company also had
incurred a $9 million bank loan; making a total of $89 million to

weeks rather than months. A flex-

fiscal

prior

The

anniversary September 23.

generated in

10%

At present Illinois
hence it is going ahead with the
new Vermilion power station to
be located at Danville. The first unit (75,000 kw.) is expected to
go into service early in 1955, and the second
(100,000 kw.) is

and special industry problems

now

than

More than

adja¬
regardless of ownership, which reduces line losses. It
the three companies to coordinate their plans and

install larger,

25th

were

less

Elec¬

commercial,

enables

scheduled for late 1956.

Weinress Celebrates

same

Congressmen

many

to V

with

compared

Illinois Public Service and
it

increased effective

in-

rural, 22%

Power is the "deficit" company,
construction of two units at the

one

excise tax

the USO.4

and

and miscellaneous.

the

also

up merger with
rep- Company.

stations,

power

cent

firm

own

and 1% from steam heating.

.'pooled their generating facilities—each plant

his

gas

residential

exception of two small areas, the territory served
1951, and the entire trans¬
mission system is operated as a unit.
Moreover, Illinois Power,

sp?cl?i ln
Privfe place¬
™ent„ nnanc-

....

own

With

ag0'

39%

were

industrial, electric utilities

became completely interconnected in

The economy-is basically agricultural, but also
diversified industries.'
Approximately 76% of

for the 12 months ended June
30, 1954 was derived

95% of the company's electric requirements are
its

"eretofore has
'head of
5'
&

system

matter

problem

areas of north¬
The cities served include Deca¬

Sept. 1, 1947.

convinced that excise taxr relief in
CHICAGO, 111." — Weinress &
face #°f tke business recession Company, celebrated' its 25th

them

the

time,

Speed—if budgeconomic changes require

(

become

„

of about

to about 600,000, in large

gas

electricity, 23% from

revenues

and 39%

Hale

ouk*;n°tpass

dollars

creases

sharply at the finance minis¬
and
the
majority party in

ter

meet

taxes head

The finger is pointed clearly

and

tric

numerous

revenues

from

buck

House to another,

one

William

relented by the billion-dollar exMr. Hale is a graduate of Yale
^lsf tax reduction bill- - Late in University,'Class of 1921. He was
February, the Waysi, and Means an officer in the United States
committee took time out for its Army during World War I and,,
wor*-out on,over-all tax revision during World War II, was with

op-

population

(electricity and gas), East St. Louis (gas only), six others with
over 25,000, and seven with
populations of between

includes)

iormation oi

■

populations -of

.12,000 and 25,000.

with the firm.

tr^^k:eniex^f.si°"

sys-

the

scope

tur

associated

experts

;

800,000, and natural

claimed

are

m>>

for the British-Canadian systems?

(1) Responsibility—there's

discussion...

„

Company

-.'Jlinois Power supplies electricity

tail.

tern, what advantages

staff

Brothers,

„

has

emergencies*

Illinois Power

in 1949 he was
wnr!/rnni.P
°V£ r°und-the- manager of
through-Con- the private placement department
hn} ^ cum^Ve
revi' ; of Clement Curtis & Co. until its

par-

meet
use

Having

liamentary debate and action, but
are rarely modified except in deU

the

tunately. fall outside the
this

the program is presented

the

(c)

and proposals in the
public interWhile these proposals offer
intriguing and promising possibilities of
improvement, they unfor-

parliament, that's it." Excise
tax changes go into effect immediately. Other changes generally

with

execu-

est.

Compared

process are

formal

complaint1

conditions, and his reading of the
taxpayers pulse and temperature,

;

Lehman
...

to cross-examine tax witnesses to
the end that the chaff of pure

presumably reflects his
estimates of budgetary requirements, his appraisal of economic

wait until the completion of

taxing

lec¬
sec¬

Street' New York Clty' members
of the New York st°ck Exchange,
investment bankers, announced
yesterday that

im-

The

published

total

selfish interest be separated from
the wheat of legitimate

program

once

proposed

With Lehman Brothers

tive-congressional liaison; (b) enactment of enabling or
stand-by

tax program each year
side by side with his expenditure
program
in
a > comprehensive
budget
message.
(He
can,
of
course,
bring in emergency tax
programs at any time.)
His tax

But

been

prove the U. S.

cited

minister

have

will

E. V. Hale Associated

Among the reforms

one

Utility Securities

ern, central and southern Illinois.

achieves the best of

worlds.

that

as-

process

that

both

tidy and speedier—all
more streamlined—than our

Public

ex-

of the

subsequent issue. V

pre-,

part

By OWEN ELY

serve
values that might be lost
memunder
the
cabinet / system
and
bership of the parliament.. Once prevent abuses that mignt occur
formed, the government stands or under that system.
.
major programs... : obviously, the ideal solution
is

That the cabinet system is gen-

billion-dollar

EDITOR S NOTE: The fore¬

—from among the majority

erally
in all,

the

reduction

1954 program of tax relief,

balances, mul-

felt

Mr.

Co.,

Hastings

was

Inc.,

has

been

previously with

(Special to The Financial

Weston
Drive.

Co., 1191 North Bundy
was formerly

Mr. Waldron

Blalr & Co" I"c; ln Chicago. Mr.

with J. A. Hogle & Co. Mr.

Roach was with Industrial Invest-

was

ments Co.,

Ft. Worth.

Co.

with

Marache

Form Van Blerkom & Co.

Chronicle)

Wolvin

Dofflemyre &

SALT LAKE

Van

ter
Van

CITY, Utah—Wal¬
and Winnifred
have formed Van

Blerkom

Blerkom & Company with

offices

the Beason Building, to engage

securities business.

T. O. Williams Opens
ONEONTA, N. Y.—T. O. Wil¬
liams is engaging in a securities
business from offices at 136 Main
Street.

The Commercial and Financial Chronicle...

(1262)

Canada
Continued

from first

A Wonderful Climate for Investment

—

provide

the most

attractive and favored nation.

Now we've talked about the money

you're going to invest funds in a country,
your second inquiry (after you've satisfied your¬
self about its national solvency and political sta¬
bility) is about banks. Are they sound and pros¬
perous? The Canadian answer to that question
is a big fat "Yes." As pioneers in branch banking,
chartered banks in Canada

the

serve

the

banks

chartered

above $10.7 billion.
Canadian

bank

shares, buttressed by impres¬

gains in deposits and plump dividends rang¬
ing from 7% to 17% last year, hit new highs in
1953

Bank Act this year legalizes (for the first time)
bank loans for real estate construction, personal

element

which

by autos, appliances or furniture,
underground. These new
earning power suggest a brand new
oil and gas

attraction

have for
All

ments.

Canada's

bank

1869.

How's

banks

are

Stock

without

that

listed

Exchanges.
brings up

That

for
on

durability?

the

this

Eight of the

Montreal

Toronto

and

investment.

our

are

The

Canadian

resourced

Exchange is the
equivalent of our American Stock Exchange. The
Toronto Exchange carries the
listings of dozens of
low price oil and
mining shares, has the largest
daily volume on the American Continent and
has considerable

market leaders.
in

renown

There

for the

are

local markets and their transactions

reported in the New York papers.
for

are

has paid

years.

eral

the

from the

small

and

specu¬

recent

Company Ltd., identified with Texas
These

are

growing integrated units

durability.

Imperial

eminent

transporters.

splendid utilities, led off by Bell
Telephone of Canada (dividends since 1881) and
are

including International Utilities, Shawinigan
Water and Power, Union
of

Gas, and Power Corp.

Canada.

Heavy industry is represented by Steel Corp.

Ltd., MacMillan and Bloedel.
a

10-year

These

are

longer sustained

fine, established, well

con¬

struction, there's Canada Cement, Gypsum Lime
and Alabastine Co. and Foundation Co. Ltd.

There

buy Ford Motor of Canada,

solid dividend record

entries

Canada, Dominion Foundries, machinery by

Massey-Harris-Ferguson Ltd. For building

buy Ford Motor Co. shares in the
can

extraction

drawer

order¬

some

big industry and get¬

away

continuously since 1900. Two successful

There

may

car pro¬

panies

running bjack

Ford in

your

Consolidated

States
a

big and

and

Mining, Hudson

Bay Mining, International Nickel, Noranda, and

prosperous.
cars

com¬

Household

Of all

make

rapid growth in assets

profitability of such companies

Industrial

Acceptance Corp. Ltd., Traders Finance

Canadian Assistance

Corp.,

—

For Brokers and Dealers

BONDS

STOCKS

Canadian
W.

Affiliate
Pitfield

Through
nections

Company,

our

private wire con¬

with

offices

coast

Limited

Pitfield

the

coast-to-

our

affiliate,

Company,

Members

M,
ARKETS

The

maintained in all classes of Canadian external

Investment

Dealers'

Association

of Canada

and internal bond issues.
Branches:

Limited,

are

in constant

Our associates, Hugh Mackay
& Company, are members of
all

Halifax

the Montreal and Toronto Stock

touch with Canadian markets.

Montreal

Stock orders executed

Canada.

Stock

Exchanges

Moncton

Exchanges,

net New York markets quoted

request.

Saint John

PRIVATE

WINNIPEG,

WIRES

CALGARY,

BELL

SYSTEM

TORONTO,

VANCOUVER,
TELETYPE

provided quick¬
ly to American Brokers and

Toronto

Dealers and

Winnipeg

MONTREAL,

AND

Information is

Cornwall

executed

Ottawa

DIRECT

VICTORIA

1-702-3

their orders

are

promptly.

Calgary
Edmonton

Inquiries invited.

Vancouver

Victoria

Associate

Boston

Member

American

Stock

Exchange
Toronto

Philadelphia

Telephone

London, Eng.
Calgary

EXCHANGE

Canadian

Affiliate

—

Ottawa

(

PLACE,

NEW

VS^Hitehall

Member

YORK

4-8161

Toronto,

Stock Exchanges

Montreal

W. C. Pitfield & Co, Inc.

Montreal

Winnipeg
and

Canadian

Vancouver

Halifax

30 Broad

Street, New York

HAnover 2-9250

the

This is equally true in

Canada and has led to the

top

and

bought, motor

largest credit demands.

personal

big thing and the

Commercial Credit

items

and

consumer

very

Finance have grown

future

some

United

consumer

companies, you'll find
—

the

credit has become

Among big entrenched metal, mining and min¬

not

very

Getting

pipe lines, Interprovincial, and TransMountain,
are

investment in Canada!

The facilities

buying and selling, and the existence of

you

ducer with

are

with considerable dividend

enterprises.

S., but

splash of

Frontenac

Some wonderful

leading and expanding Dominion motor

exchanges

Calgary, Vancouver and Winnipeg which

Co.

You can't yet

volatility of its

also share

dividend record.

Stock

It's

Paper Mills Ltd., Powell River Co. Ltd.,

Most of these have

the trad¬

certainly couldn't write about Canada and

Company.

pulp—companies like Abitibi Power & Paper

Smith

established and profit¬

Jersey; British American Oil Co., and McColl-

world's

knowing it!

pro¬

names

are the big three:
Imperial Oil Ltd., affiliate of Standard Oil of New

companies have developed to supply

Price Bros.

ing homes of major Canadian bank and industrial
shares.

even

long while, been

drillers £&d producers, there

Paper Corp., Ltd., Fraser Companies Ltd., Howard

There

The Toronto and Montreal Boards

lative

Co., Ltd., International Paper Co., Consolidated

third point—the machinery
are
many large invest¬
ment banking houses, and there are
major stock
exchanges in Toronto and Montreal.
for

our

Canadian

since 1818 and in still another since

year

the

in unbroken

of potables.

ting bigger daily.

ada

dividend payers for a long series of years. In one
case consecutive cash dividends
have been paid
every

You

Everyone knows the premier position of Can¬
in pulp and paper. She supplies 80% of all
American newsprint — brings us our headlines

proved wonderful invest¬
banks have been consistent

years

major

for

readily to mind,

not mention oil.

largest producer of
asbestos. Asbestos Corporation Ltd., the dominant
factor here, is a fine company by
any standard,
with a 17-year consecutive dividend record.

loans secured

sources

come

odd

Canada

Breweries, Distillers Corp.-Seagram,
Walker, John Labatt, and Sicks Breweries

able purveyors

Steamships Lines Ltd. is big, solvent
and profitable, and a powerful agency for water
transport of ore, wheat and miscellaneous freight
With steady dividends since 1942.

there is slight reason to expect any
price decline. A revision of the Canada

and loans

Hiram

Canada

and

material

the

all elegant corpora¬

of Canadian

Canada.

sive

years

Canadians have,

steamships, airlines, mining and its 12
acres
of mineral-prone real estate.
CP, a fabulous rail, has paid dividends since 1944
and could hardly miss sharing in the growth of
million

are

—

ducers of fine beers and whiskies, and the

in hotels,

assets

averaging 20

ada both with its tracks and its diverse interests

branches.

producer of aluminum

dividend skeins.

largest privately owned railroad in the
is Canadian Pacific.
It honeycombs Can¬

world

na¬

cost

Aluminium, Ltd.

—

tions

and market

equity investment is not only possible but de¬
sirable. We'll start with transportation.
The

lowest

world

arrangements, let's go once over lightly some of
the industries in which sound and permanent

tion, down to its smaller towns, with over 4,000
Total

the

ly public trading markets outlined briefly above,
excellent accommodation for prompt,
efficient execution of security orders.

page

funds abroad, Canada is, on all counts,

the 11

Thursday, September 30, 1954

Volume 180

Number 5364... The Commercial and Financial Chronicle

(1283)

Ltd., and somewhat smaller Laurentide Accept¬
ance
Corp. With only one person in six in Canade now owning a motor car, the future
buying
demand is regarded as excellent.
(In the U. S.
one person in
every 3.7 owns a car.)
Further,
time purchase of motor cars and
appliances, as
well as personal loans, are
becoming daily more

Continued

fashionable North of the border.

they share the Arctic intimately
with powerful neighbors — the
U. S., Denmark, Norway and the

Talking about

Canada without reference to
review on the theatre without men¬

gold is like a
tioning the Barrymores. Gold was, until very
recently, the principal mineral of Canada but
since the price of this
age old desideratum has
held
and

stubbornly at $35 an ounce for 20 long years,
mining costs have risen, the gold mining com¬

panies have been squeezed and

Canadian

even a

Government subsidy has not
brought high levels
of

profitability; but they

from poor
reasons.

are

investments for

despite this fact far
number of obvious

Among the gold shares listed in Canada

the

biggest producer is Kerr Addison, and Dome,
Hollinger, Giant Yellowknife, Campbell Red
Lake

important. Among the more marginal
producers, MacLeod-Cockshutt, and East Malartic
are

a
a

mind.

come

big factor in
of

sort

And, of

there's Noranda,

course,

metals. Mclntyre Porcupine,

investment

trust,

has

lot

of gold

equities.
*

factors in Canadian

industry and

dynamic

commerce

would

to lie in the vast power and aluminum

appear

installation at Kitimat, the Steep Rock, and Lab¬

Soviet Union.

developments, with the accompanying

ore

Because the entire

northern boundaries of both Can¬
ada

the

and

these

Soviet

Union

prac¬

responsible
the

The two countries

doubt will

the

Arctic

jectives
it

where

common

be served.

can

ob¬

But, while

entirely natural and under¬

standable

that

Canada

should

have

important military bases at
Churchill
on
Hudson
Bay and
Whitehorse in the Yukon, where
combat techniques under arctic
conditions may be worked out,

Ottawa

officialdom

does

not

ap¬

to be too worried about the

pear

probable

trend

relations

with

Russia.

the

important factor influencing
of events north of the

course

60th

parallel is the growing reali¬

zation

Canada

not

the

that the

climatic

three

nents of the Northern

great

North

barrier

conti¬

Hemisphere

—Asia,

North America and Eu¬
rope—that it has been commonly

thought to be. Actually, the Pole
consists only of a frozen
ice-pack,
floating and revolving upon water
enough to sustain abundant

and varied

marine life.

continent

from

time

being built
The

their

The northeastern part of this
continent, from Greenland southwestwards to
the tree-line, ex¬
tending in a southeasterly direc¬
tion from Aklavik to Churchill,
is indeed bleak and, to the casual
observer, barren.
What is
not

realized,

the

there

present

upon

time

which, in turn,
of

the

3,000

diet

Eskimo

are

the

agement of
Lakes

Caribou

life

and

however, is only
large
ning
of

it
this

was

of Alaska

caribou

These

ter,

even

Greenland,

are

just

few of the major items in the

bright Canadian economic
We

in the

general vicinity

that

ice-capped

resource,

Service

panorama.

the
in

with

the

seriously

three

natives

and

the project

both

the

Canadian

fox,

along

with

dories

the

is reported
good start.

the

basis

the

polar

and

are

three very

big

Sun Life (traded

ones,

over-the-counter),, Canada

Life

Western Life Assurance Co. of

by the

included

way,

and

the

muskrat,

seal,

the

furry

the

sea,

have

been

thriving trade in
on

page

stocks

largest market

Great

Winnipeg, which,

common

Where is the

for industrial shares in Canada?

in their

portfolios long before American companies did.
These three
a

are

elegant institutions and there

number of other smaller

ones.

are

Life insurance is

extraordinarily popular in Canada and the indus¬
try is expanding in

a manner

most pleasing to

shareholders.
We couldn't, in a brief share-orama like

begin to

cover

Canada

but

this,

all the worthy major enterprises in
do refer you to

larger

below of Canadian companies traded on the Ex¬

126

years.

great' assurance
•horth of the St.

many
a

seeking

are

not

are

for

now,

another

ary

north of the St.

unlikely, should

movement in this country

the New Deal

induced

seem

of the
3

55 Financial institutions

There

34 Utilities

Lawrence River

have

or a

29 Paper companies

and many

A complimentary copy of our Month¬

inflation¬

ly Review, giving the essential trad¬
ing

Canadian

dollar securities

data

listed issues,

philosophy of the "baloney dollar,"

the

than

will be sent to

1,000
you on

request.

by heavy deficit spending, that Canada

others.

resurrection of

will follow in the wake of the movement.
ment

Manufacturing companies

76 Construction and steel firms
52 Textile enterprises

enticing factor!

agitators calling for cheapening of the dollar.
is therefore

exchanges

shares of

Great Lakes, either pressure
groups or

and the

Invest¬

would

thus

Founded

J 852

possible hedge against cheapening

dollar, too.

TORONTO

For those seeking continuity of dividend, plus

BAY

STOCK

EXCHANGE

STREET, TORONTO, CANADA

ulogical expectation of sound growth, Canadian
The
,

stocks

Lawrence, and demonstrate that

equity issues there have definitely attained

now

industrial

These include every phase of major
business activity in Canada.
There

investments

solid investment status.

And

Exchange lists

than any other two stock

This record should offer

those

number

in Canada.

changes that have paid consecutive cash dividends
from 5

Toronto Stock

The

the tabulations

Continued

page

and

bear,

the

Continued

andi 1950

creatures

forgot to mention life insurance companies.

There

region

mainland

beaver

mammal

Wildlife

arctic

such

white

national

1949

a possible source of
experienced fisherman

sent

islands,

valuable

1948,

try

furry

end

to have gotten off to
The numerous

begin¬

generation related to the St. Lawrence Seaway.

game-eating Eskimos
little

area

third

the

Administration

decided

of Ungava Bay how to catch dodfish, abundant in that particular

information to help conserve tne

but, for that mat¬

look

was

population,

about

also

upon fish

Meat

herders

years ago,
over the man¬
herd in the Eskimo
The big job in all

Northern

1950

food.

cli¬

ing Strait and around the north

the construction and power

course,

area.

The

teach

Reindeer

chief

Six

entary life.
in

region.

The present caribou

the

But this

this is to get the nomadic
Eskimo,
if possible, to live a
more
sed¬

The hides of these

rigorous

1940.

other Eskimo took

animals, too, are widely used for
clothing, particularly well adapted
of this

serious setback

the

shipwreck.

the

supply

and their families lost their
lives

and Manitoba.

mate

and

when

educate the

River, and, of

over a

1938

1944

part

basca, Beaver Lodge, Marion River, and Blind

For

half-breeds, trappers and others,
inhabiting the fringe of this broad
area, including the nothern sec¬
tions
of
Alberta, Saskatchewan

for

en¬

raise

long forward step

project suffered

century, it should be
recalled, whales have been hunted
in arctic waters, not
only in Ber¬

railway, the uranium outlook at Atha¬

as a

themselves

Indians,
or

have been

natives

domestic

along the Anderson River further
East

caribou

main

9,000
300

pre¬

deer from- Alaska on the
eastern
side of the Mackenzie River
delta
back in 1935. Branch
herds were
started by the Eskimo

which feed at

and

rapidly

game

direction, introduced rein¬

however,

670,000

in the

the

own

meat and,
in this

is
that the long hours of sunlight
in
summer
bring out
a
rich
growth of grass-like plants, lich¬
ens and other
vegetation over the
tundra

authorities

couraging

mid-Winter.

generally

government

serves.

time

The

the

the natives from the herds

the

icy
blasts
that jsweep down southward over

tically adjoining the Arctic, Can¬

continue working closely together
for a long time on projects
in

for

that

The Canadian Government makes
some
buffalo meat available to

century when
whalers, hunting in arctic water,
slaughtered them, often wastefully for their meat. To gather

360 mile

animals.

caribou, properly
protected, may some day help
provide the meat supply for many
more people than
they do today.

island of almost continent size
where the last Ice Age
lingers to
this day and which is the
area,
together with Hudson Bay, really

ada figures prominently in the de¬
fense strategy of the U. S. and
Canada.

warm

rador

dug up numerous other
concerning the life cycle of

facts

Northern Teiritoxies

between

most

took a
large number of aerial
photographs of caribou in migra¬

thinks

On the immediate horizon the

tion and

Pole
*

page

Canada's Plans for Its

many

from

largest market for industrial stocks in Canada.

./-<+

The Commercial and Financial Chronicle

(1284)

Continued from page

self, contrary to the general im¬
pression, is rather light, amount¬
ing to only about 40 to 50 inches
a

centuries, providing

the

living like natives, with the ex¬
change necessary to buy the ar¬
ticles of civilization.
serious

attempt

con¬

On the other hand,

temperature

quite

can

An extremely low temper-

mild.
ture

around

the arctic islands

Hudson Bay and
to the North.

the

lands

barren

Indians, Eskimos and the whites,

81.4

degrees below zero
recorded in February, 1947,

servation of this natural resource,

was

the

government has marked off
hunting areas for the
exclusive use of particular natives
in the hope they will consider it
to their long-term economic ad¬

individual

border, even though some winters,
in the same region, the tempera¬

vantage not ever to hunt the re¬
gion to complete exhaustion. To
a great extent, of course, a great
quantity of furs, notably silver
fox and mink, are produced now

summer,

farms.

nothern

help free the natives

from

for

dependence upon furs
such money as they require,

the

government

complete

gave

grant

few
the

years

ago

Canadian

Handicraft Guild to encourage the

Eskimo
spare

ivory

utilize

some

time in making soapstone,
and
wood
carvings
and

various articles of furs and hides

Snag Airport near the Alaskan

ture

frosts

above

well

averages

While

can

occur

zero.

even

during the warm months,
in both the Mac¬
Valley and the Yu¬

temperatures

the

summer

Mackenzie

River valley

Yukon, average maximum
temperatures run from 80

degrees but temperatures
risen during July and Au¬

Snowfall Is Light in the Arctic
South of the tree-line in north¬

able.

can

cold

vari¬

in winter

south
95

Slave

Lake,

degrees at Dawson City.

perhaps
all

Great

the

greatest
North

and

But

surprise of
that,

while

companies definitely deserve consideration. With
land

area

lation

temperatures rise high
enough to favor growing condi¬
tions, the frost-free period ranges
from only 44 to 92 days. The light
average precipitation is a warn¬

ing, too, that drought
in

some

third

that

could

valley,

tree-line, the subsoil is
manently frozen. While this
to

appear

the

affect

soil.

TABLE I

may

ad¬

the very

thus

are

picture

waiting in Canada for informed investors.

LISTED

holding moisture

There

of titanic

aureate

per¬

agriculture
serves

must

the tundra north of

the

private enter¬

resources

there

a popu¬

political and

magnitude,

North of Fort
in the Mackenzie River

Simpson

tenfold,

prise, and untapped natural

threaten

can

larger than the U. S.,
grow

economic climate hand-tailored to

years.

versely, actually it

have

the climate

A Wonderful Climate

summer

useful purpose of

gust to 103 degrees at Fort Smith,

Canada,

page

For Investment

for
farming
and
agriculture exist throughout the
northwest, though on first exam¬
ination they are likely to appear
precarious and limited. While the

influenced as they
are likely to be then by warm air
flowing in from the North Pacific,
are
really not too different from
those prevailing at the same time
of year in the region north of
Lake Superior and
the country
immediately to the northeast of
the City of Quebec.
kon Territory,

and the

Canada

year.

kenzie River

their

for sale in Montreal.

ern

from

Possibilities

Noithern Territories
for two

Continued

Thursday, September 30,1954

steady cold there, the snowfall it¬

Canada's Plans (01 Its
Jurs

lingers long because of the

snow

...

both

positive and minus features in the
situation.
Small

gardens are rather com¬
throughout the North, al¬
though, in some locations, green¬
houses
are
widely employed to
grow limited quantities of vege¬
mon

Common Stocks

tables and it is worth noting that

during the Gold Rush in the Yu¬
kon, at the turn of the century,

On Which

of the

some

farmers, selling milk
vegetables, fared better than

and

CONSECUTIVE CASH
DIVIDENDS

miners.

many

For

eight-year period, start¬
ing with 1917, the Department of
Agriculture, at an experimental
farm on Swede Creek, a short dis¬
tance from Dawson, demonstrated
conclusively that such field crops
as
oats, barley and even wheat
an

Have Been

Paid

From

10 126 Years
to

•

could be grown to maturity in the
Yukon.
Also, in 1946, the depart¬
ment

opened

experimental

farm substation at Pine

CANADA

attempts

not

grow

•<

Creek, 100 /

only

secutive

Years Cash

field k

but garden vegetables, small
fruits, flowers and livestock. '
Department

Mines

Resources joined forces

Department
1943

^HAUW"

look

possibilities
Territories

with

view

the results

favorable.

were

Aluminium

revealed

thousands

good

alluvial

Laird,

Slave and

zie

Rivers.

soils

along

upper

Another

Operates

507 Place D'Armes

that

employing

crude

2.00

621/4

3.2

0.40

7.00

5.7

0.15

4.75

3.2

0.50

13.50

3.7

0.80

91/4

6.5

Corp., Ltd._

oil

line

pipe

1.25

28%

4.4

development in

Anglo-Huronian Ltd
Holding &

operating

interested

the

Can.

co.—chiefly
mining

gold

Anglo-Newfoundland

Macken¬

Devel¬

opment Co., Ltd. "Ord."__
Newsprint & allied products; also

substation

mining interests

Asbestos

Corp., Ltd

Mining & milling of asbestos

commercial

fibre

fertilizers

and

irrigation

was
*

Montreal

5.4

.Alberta

at Yellowknife also found

a7%

Ltd.

Anglo-Canadian Oil Co., Ltd.

set

0.40

shoes

.Colombia, S. A.

exis¬

acres

1954

—

chain

Andian National

found to

the

1954

Canadian S *

Largest producer of aluminum
ingot in the world

Surveys conducted

Simpson

tion
Paymts. to
June 30, June 30,

experimental substation at

tence

Calvin Bullock, Ltd.

retail

V Oil exploration &

Fort

30,

1954

Based on

distributes

through

en¬

June

}' 21

Makes &

that

area

Incorporated 1932

Ltd.-

into the agricultural
of
the
Northwest

couraging. farmers to settle in

Approx.
% Yield

Quota-

Agnew-Surpass Shoe Stores,
,

with the

12 Mos. to

—

and

Agriculture

Extras for

Divs. Paid

crops

The

Cash Divs.

Including
No. Con-

miles from Whitehorse, where suc¬
cessful results were obtained from

Continued

page

Add

Asked.

translate into

U. S.

funds,

•

IN THE UNITED STATES

Burns Bros. & Denton, inc.
37 Wall

Street, New York 5

Tel.: DIgby 4-3870

TWX: NY 1-1467

UNDERWRITING

—

DISTRIBUTING

Canadian

TRADING

—

Securities

T
.

Affiliated with:

Burns

Bros.

Incorporated 1952

The

Investvient

Burns Bros. &

One Wall Street
New York

Denton

Limited
Members:

Calvin Bullock

Members:

Toronto

•

The

Dealers'

Association

Canada

Company Limite
Toronto

Montreal

•

Stock

Exchange

Ottawa

•

Winnipeg

■

Volume 180

Number 5364

The Commercial and Financial Chronicle

...

(1285)

Canada

Continued

A Wonderful Climate

Based

Quota-

secutive

12 Mos. to

tion

Years Cash

June 30(
1954

June 30,

general hardware

possible to grow good gardens and

1954

5.6

al8

1.00

|
14

0.16

BANK OF MONTREAL

126

1.40

■

3.1

45»4

could

Operates 602 branches and agen¬
cies
•

Operates

branches

415

offices throughout

See Bank's

BANK

122

1.80

3.9

45:4

sub-

1.70

b46i/2

3.7

Canada

See

Bank's advertisement

The

North

1.20

31%

Barber-Ellis of Canada, Ltd._

3.20

parallel

north

Beatty Bros. Ltd

0.55

6-y4

mote

silk and

0.70

b8%

Telephone Co. of Canada

2.00

43 V2

Most

important telephone system
in Ontario & Quebec

0.10

a4.00

2.5

been

the

Men's fur

Brazilian

Diverse

6.7

0.40

fO.53

6.4

1.00

18%

5.4

production,

0.70

243/4

2.8

the
the

refining

4.9

2.00

largest privately owned
telephone system in Canada

Ontario gold

sula

rich

may

have

men

throughout

near

reached

are

vessels,

over

the

White

men

section for

long as white men
anywhere else in the

summer

sailing from

Tuktuk

Aklavik at the mouth of the
Mackenzie River which has be¬

near

important transfer point

river

and

ocean

Catholic
about

traffic.

Church

The

sends

Hudson Bay each

supplies

carry

its

missions in that part of the world.

and

Great Bear Lake

add another 800 miles.

Navigation

its

presents

diffi¬

culties, in addition to those of¬
fered by ice lingering late in the
spring,

Boothia Penin¬

both these river trans¬

portation

systems but of course,
Dominion
Government
has
taken some steps to lessen
the

the

hazards of navigation all
through
the North, notably on the Mac¬
kenzie.
ice

The
1945

Hydrographic Serv¬
located

new

seven-

foot channel in Green Island
Rap¬
ids
on
the
Mackenzie
River a

short distance east of Fort
The

son.

built

channel

open

delta.

The

undertook
16-mile

same

dredge to keep
in the Athabaska

before

year

the

Simp¬

that

government

too,

year,

also

maintenance

this

0.03

1.50

2:0

easiest

translate

stock

lor

into U. S. funds.

dividends,

way

gerald

constructed by private interests in
1931 as a portage around

its

serve

missions

along

the

mainland and islands
northwest, section of the

Canadian arctic.

Fort

Smith,

originallydanger¬

ous

rapids

with

the Slave River.

the

The
rivers
of
the
Northwest
and, in particular, the Yukon and
Mackenzie Rivers, have from the

weather, there is:
fantasy and
enough facts regarding the
relative geographic location of the

time of their first

Northern Territories.

It may per¬

haps

realize

the

chief

travelers

their

and

way

vast

nearly
a

discovery been

highways
traders

through

which

over

have

most

region.
The
2,000 miles in

plied
this

Yukon

length

but

third of it lies in Canada.

in the southern

numerous

lakes

part of the Yukon

too

often

too

much

not

the

difficult

Mackenzie

drains

This

sea

mainland

Aklavik,

area

the

mouth, is in
far

Territory, however, the Canadian

from

Canada, and

settlement

splits,

Royal

only

the

North

Continued

Pole,

di-

page

true

Government of

Canadian

Mounted

Police

boat made the first successful pas¬

etc.

trading,

sage

Asked,

b Bid.

from West to East, although
forced to spend the Winter

Continued

page

Canada

was

at Walker

Bay

approximately

Victoria Island,

midway.

was

•>

External and Internal Issues

M'Leod.Youmg.Weir & Company

DEALERS

MUNICIPAL

GOVERNMENT,

Telephone: EMpire 4-0161

FJrivate

276 St. James Street West

King Street West

Winnipeg

London

Kitchener

Calgary

Wire

Toronto

Montreal, Canada

Toronto, Canada

Ottawa

AND

SECURITIES

CORPORATION

Bought—Sold—Q uoted

LIMITED

Telephone: HArbour 4261

Hamilton

Vancouver

New York

Quebec

McLeod,Young,Webr & Ratcu ffe
MEMBERS OF THE TORONTO

STOCK EXCHANGE

CANADIAN

STOCK

The

MONTREAL STOCK EXCHANGE

EXCHANGE

FIRST BOSTON
STOCK

ORDERS

EXECUTED

ALL

EXCHANGES

CORPORATION
1

•

King Street West, Toronto, Canada—EMpire 4-0161

New York
Philadelphia

Boston

Pittsburgh
Cleveland

itjs

straight line about

general. However;
in 1940-42 that a

thajt

northeast "section—Labra4

was

approximately
700,000
squarf*
miles or a fourth of the entirfe

Canadian

particularly

that

area

during

to "approach

large part of the

the

exchange

months—the

highway from Fort Fitz¬

eastern arctic in

producer

issue.

day—especially

summer

Likewise, it has another schooner
coast of the

dor, the country around Hudson
Bay, :?the arctic islands and the

Broulan Reef Mines Ltd

around

long time.

lived

North.

Telephone

Second

Add 3%

very

Co. "Ord"

t Inactive

very

Columbia

t Adjusted

cre¬

ican continent.

distribution

River
route

notes, bonds, revenue

Petroleum

water

northern half of the North Amer¬

British American Oil Co. Ltd.

to Rae Strait

Together with the

stamps, and similar items

British

the

single
in

arctic islands off the Beaufort
Sea,
the Amundsen Gulf "and eastwards

only

have
20

bank

even

practically

utility interests in Brazil

Ltd

Makes

moving
area,

have roamed

British American Bank Note
Co.

sion

Bear River

Van-

tiny settlements, gathered
trading, posts and mis¬
stations along the coast and

among
the icelocked arctic islands in tjie North,

felt and wool felt hats

Traction, Light and
Co., Ltd. "Ord"

Power

conscious

t£e route in

for

re¬

Actually, the inaccessibility
imaginary.
For any¬

not

difficult to realize that

Quebec gold producer

the rela¬

people is

history of this region, it

Belleterre Quebec Mines, Ltd.
Biltmore Hats Ltd

seemed

and

largely

one

4.6

Ocean

inaccessibility of this entire

area.

ex¬

stretches

narrow

has

many

Canada

The

summer

parallel,

years ago
boat made

Halifax

around fur

schooner

country

Eastern

50th

Atlantic

Sea,

tive

8.2

rayon

purposes

the

Arctic

equipment,

etc.

threads for all

Bell

along

•

Belding-Corticelli Ltd

the

and

cept perhaps for

8.1

stable

household

why

Western Canada north of the 55th

Stationery & printers' supplies

reasob

3.7

Operates 247 branches in Canada

Makes nylon,

Only

Seems Remote

Nationale

pumps,

Land

'•

equipment,

RCMP

from

over

Roman

Banque Canadienne

Manufactures barn

new

another

cover

for

86.

page

Yukon

subsidiary routes on Lake Athabaska, Great Slave Lake, Great

season, completing the voyage
86 days.

come

1944—only 10

trip

along—throughout the section.

27.

page

TORONTO

the

territory when
the
population
really starts to
grow as
economic opportunities
open up—as they are doing right

Operates 248 branches throughout

•

successfully grow

food

move

the world

Country
much of

might require.
It
can
reasonably be expected that
agriculture in the Northwest will
not only make a come-back but

28.

page

BANK OF NOVA SCOTLA__

•

the

throughout the world

See Bank's

that the North

course

not until

—that

agricultural
Canada, the job of
inhabitants of the

North Country should never pose
a
serious problem.
It is obvious

7.7

2.08

producer

section.

great

country

gold

that

feeding. the

Aunor Gold Mines Ltd
Ontario

lawns

—

But

the

distance of around 1,700 miles but

June 30,

1954

Canadian $ *

Northern Territories

Paymts. to

Large wholesale & retail business
in

inland

Athabasca and Slave Rivers, pro¬
vide an
inland waterway for a

Approx.

% Yield

Extras for

—

1,000 miles in length.
The
Mackenzie and its
tributaries, the

Canada's Plans for Its

Including

Ashdown Hardware Co., Ltd.,
J. H., "B"

portion
than

Cash Divs.

Divs. Paid

page

ates

For Investment
No. Con¬

from

Chicaco

San Francisco

The Commercial and Financial Chronicle...

(1286)

Continued

from

Continued

page

jrom

Canada

Canada's Plans

page

Thursday, September 30,1954

A Wonderful Climate

For Investment

For Its Northern

Cash Divs.

Approx.
% Yield

Including
No. Con¬

Territories

secutive

Extras for
12 Mos. to

Years Cash

June

Divs. Paid

rectly to the North, as from Vic¬
toria,
directly
to
the
South.
Whitehorse
is just as far from

Complete facilities

North Pole

the

for

investing

And

Railroads of

in Canada
With
dian

about

company

whose securities you may

Why
and

McMurray

and

surprising

lines

would

these

the

soon

not

one

see

extended

country

Makes

nected

the

Skagway in Alaska

seacoast

with

—

be interested.

have

recently

Sheridon

Serving Investors Across Canada

around

EDMONTON
VANCOUVER, VICTORIA, LETHBRIDGE, MEDICINE HAT
REGINA, MOOSE JAW, SWIFT CURRENT, SASKATOON
BRANDON, PORTAGE LA PRAIRIE, KENORA, KINGSTON
GALT, CHATHAM, KITCHENER, WINDSOR

Seven

shore

the

St.

Canada

parallel

completed.

the

north

vast

already

Offices—Winnipeg, Manitoba

one

way

the

run

only
Two

Moosonee and the

someday,

and
for

iron

One

'f* 'fe
*

u*s

1.00

19%

5.2

0.10

a3.0Q

3.3

2.90

1.20

21%

5.5

3.00

a97%

3.1

0.65

7.9

Sugar

Co., Ltd

cake

wholesaler

alOO

2.9

forgings, hardware, etc.

Foundries, Ltd._

Life Assur.

the

largest Canadian

com¬

panies underwriting life, accident
and

sickness

insurance

Canada Machinery

other,
be

Sched¬

Canada Malting Co., Ltd
Malt for

3.00

5.0

brewing & distilling

Canada Northern Power

Corp., Ltd.

mining

line

fO.25

1.00

3.00

1.20

3.2

1.25

26%

4.7

2.50

7.4

4.1

3.7

23J

1.1

Mortgage

first mortgage security,

debentures, accepts deposits

Canada Steamship
Freight
other

36%

prods.

Corp
issues

4.8

Quebec

packinghouse

Canada Permanent
Lends

2.65

1.50

Northern

Canada Packers Ltd. "B"
Full

bl2%

important

serves

area

0.60

Through subs,

CNR main

being

the

industries

Terrace, B. C., to the vast

Corp., Ltd.

Wide variety of tools & machines

Rail¬

this year

new, aluminum,smelter

Canada

No doubt,

Saskatchewan.

short spur from the

line at

0.9

Holding & operating co.—
machinery & equipment interests

Bay,

railroad will also

completion

Dominion

Canada Iron

country West of Hudson Bay, im¬
mediately to the North of Mani¬
toba

beet sugar refining

Canada Foundries & Forgings
Ltd. "B"

running through the mineral-rich

uled

0.10

Corp.,

retailer

357

recently
lines

Northland

the CNR, to Churchill.

Bread

rail

the Hudson

Ontario

6.2

railroad

Lawrence

has

al3

100

Edmonton

Canada Bread

deposits at Knob Lake on the
border at the

been

0.80

Co., Ltd

parallel,

to the

55th

linen

Leases oil & gas drilling rights in
Alberta

Quebec-Labrador

James Richardson & Sons

8.0

Ltd.

track

mining area
In Quebec,

new

Islands

northward

miles
ore

luii-fashioned

variety

Calgary &

laid from

of the 50th

construction
from

new

6.6

products

Furnaces,

new

been

Lake.

Lynn

north

also,

1857

Yukon,

Manitoba, North of the 55th

parallel, 177 miles of

22%

0.40

—

Whitehorse,

head of navigation on the
for some time, of course.

MONTREAL, TORONTO, WINNIPEG, CALGARY,

Executive

wide

cotton

Slave

narrow-gauge White
Yukon Railway has con¬

1.50

oper.

Caldwell Linen Mills, Ltd._,_

rich

The

Lake.
Pass

Great

ladies'

Cane &

mining

4.3

hosiery

tem at both Peace River and Fort

not put our extensive facilities,
long experience, to work for you?

Established

already

are

Co., Ltd.__

rolling mill & related

Makes

National
Railway now connect
Edmonton, Alberta, with the Mac¬
kenzie River transportation sys¬

our

any

course

1954

—

1.80

Butterfly Hosiery Co., Ltd.__

West

pushing into the north
country. Tracks of the Canadian

offices from
we can offer you
the
most
advantageous markets in
which to buy and sell stocks and bonds.
Our Research and Statistical Depart¬
ment, one of the largest in the financial
business, can supply you with accurate
information

North

the

rapidly

membership in all leading Cana¬
Stock Exchanges and fast, direct

private wires linking
Montreal to Victoria,

1954

Burlington Steel

Railroads

30,

Canadian $ *

Asphalt roofing, flooring and in¬

Steel

New

and

Lines, Ltd.

passenger

vessels:

interests

diverse

include

hotels

Canada Vinegars Ltd

fi.3

Vinegar and apple products

con-

•
•'

!•*

Vl'

Continued

page

Canada

Wire

Cable Co.,

and

Ltd. "B"
Copper and steel wires and

Operates
out
•

branches

679

4.4

a67%

ropes

CANADIAN BANK OF COM.
through-

•"

„

the world

See Bank's advertisement

Canadian

Breweries

Holding co.—brewing
milling interests

Canadian Bronze
Holding
bronze

co.

—

and

page

31.

grain

Co., Ltd.._

subsidiaries

bearings,

Ltd

make

bushings,

and

castings

The

services of this firm include

complete brokerage facilities for Canadian

We maintain

direct

private wire

Add

Asked.

funds,

Invite You

...

Sons
or

b Bid.

To ask

and offer

into

dividends, splits, etc.

James Richardson

translate

t Adjusted for stock
a

dealers and brokers interested in securities traded in the United States.

United States dealers and brokers interested in Canadian

for information

quotations

on—

secu¬

Canadian

rities similar facilities in Canada via this wire.

Stocks

We execute orders

all

Listed Stocks

Dominick

*"'

Dominick
1

R. A. Daly & Co.

Members

Members of the New York Stock Exchange
"

•wr

Members of the

Toronto Stock Exchange

KING

ST.

of The Toronto Stoc\ Exchange
WEST,

TORONTO,

CANADA
■

EMPIRE

14 WALL

STREET

NEW YORK

5, NEW YORK

Paymts. to
June 30, June 30,

sulation

it is from San

Francisco.

Based

tion

1954
—

Building Products Ltd

Quota-

Private wires

4-4441

Montreal and ?{ew

Tor\

Tolume 180

.Number 5364... The'Commercial and Financial Chronicle

Canada

Continued

A Wonderful Climate

For Investment
Including

Years Cash

Canadian
Cans

Canners

fruits,

June 30,
1954

etc.

Ltd.__

vegetables,

Fairbanks
sales

Chemicals

"The"

The

1.35 "v 19 y4

7.0

b24%

4.1

for

and-* allied

Oil

12.00 a595

2.0

1.28

4.9

trust

1.20

52%

0.50

1.50^25%-

dian

0.70

351%

America-

§0.85

Knitting Co., Ltd.____

1.00

1.4

Yarns and

Silk,

silk

of
'

fabrics

wool,

alO

ping

co.—large

0.40

General

bl0%

Trust

Chateau-Gai
Wines

Coast
A

and

Wines

Ltd

for

co.

1.00

four

0.27

railroads
for

4.30

6.3

West

service

region and

implements

Operates

the Arctic
0.70

1.00

8.9

service

machinery

Collingwood,

7.7

Listed Companies Which Have Paid Consecutive
Dividends From 5 to 10 Years Appear in the
Second Table Starting on Page 35.

Ltd--

Sea.

far North

Coppermine

rue

Also, there is air

Whitehorse

between France and Canada

Lake

and

Richepance
PARIS

Alaska.

the

Hudson

Bay,

air-

planes

fly

from

Inlet

Lake

0.50

-8ya

a62%

1.20

27 %

0.80

a2iy2

1.50

141/8

0.70

2.00

5.00

al45

3.4

4.00 1

a88

7.0

from

page

7.1

5.2

1.00

Continued

2.T

Ferguson

East side

4.3

107

the

(Territory of the Islands of St. Pierre and Miquelon)

2-4

Branch at St. Pierre

6.2

1.50

and

Churchill
and

4.5

elbows,

Assoc—

endowment

range

policies

Slave

side

•

Confederation Life

Shawinlgan Falls
Sherbrooke

Financial operations

there

instance,

even

Chesterfield

Rigid electrical conduits,
couplings, etc.

Hyacinthe

main¬

Fairbanks
West

Ontario

Conduits National Co.,

St.

Mayo in the Yukon Territory and
bl3

2 million bushel grain

Trois-Rivieres

Quebec

Canada,

are

leave off.

Great

both Aklavik and

MONTREAL

all, the airlines continue

the

7.7

British

Collingwood Terminals, Ltd.

life

North

contacts

breweries

Cockshutt Farm Equipt. Ltd.

Wide

most

where the

Ltd

Canadian
Alberta—

the

human

tained at

2.6

air

Breweries
holding

elevator

b42

business

juices

Columbia

Farm

1.10

the

and

Northern

BANQUE L G. BEAUBIEN

Over

Members Investment Dealers' Association of Canada

rail¬

way.

3.9

insurance

Investment Dealers

through

where
fiduciary

war

Mountain

interests

Chartered

cut

was

when the
to an end.

the entire Rocky
region, and buses carry
passengers over the Alaskan High¬

10.0

hosiery

Investment

Brussels

L. G. BEAUBIEN § CO. LIMITED

through

opportunity
for
swift and rapid travel and ship¬

cashmere

Central Canada Invest. Ltd—

Parts

jointly by the Cana¬

National

providing

and

Ottawa

already connect with the Alaskan
Highway at Dawson Creek, so

parts,

etc.

Corn

MONTREAL I

extend/

the tracks of

Pacific—the

Canadian Tire Corp., Ltd

Celtic

came

road owned

5.8

system

221 Notre Dame Street West,

project

however,

suddenly

3.1

Telephone: PLateau 2171

;

;•

out

Of course,

Ry. Co. "Ord"__-i.

Celanese

that would

The

Alaska.

2.3

of Canacra

accessories,

Yukon

short,

Cos., Ltd

Automotive

spectacular
construction

invasion of the continent

products

railway

of B. C., through
Territory, to Alaska.
Such a railroad actually got as far
as
the
planning
stage
during
World War II, when it appeared
the Nipponese might attempt an

the

refining & distribution

private

railroad

Exchange

■

railroad

Northward

Electric

invest,

type

era

obviously not yet over for
The really great <dream
the Canadians, of course,
is-

of
1.00

sell¬

General

grand

and Canadian Stock

the Pa¬

is very

Pair-

Canadian Industries Ltd.

Can. Pac.

4.0

Canada

Management

Petroleum

the Alu¬

Canada.

Canadian Gen. Invest. Ltd-_

Canadian

cific Coast.
20

Chicago

manufacturing

rights

Kitimat

projects

Canadian Gen. Elec. Co., Ltd.

products

Members Montreal Stock

8.1

Morse

agent -for

banks, Morse & Co.

ing

24%

0.80-

Exclusive

Stock Brokers

1954

stock

rolling

Co., Ltd

Exclusive

2.00

L. G. BEAUBIEN & CO.

—

minum Co. of Canadd

Canadian Celanese Ltd—____
Synthetic yarns and fabrics
L".
-

1954

Canadian $ *

highway

Canadian

Paymts. to
June 30, June 30,

structed

Based

tion

meats,

Canadian Car & Foundry Co.,
Ltd. "Ord"
Rail

For Its Northern

% Yield
Quota-

12 Mos. to

—

page

Approx.

Extras for

secutive
Divs. Paid

from

o-(1287); 27

Canada's Plans

Cash Divs.
No. Con¬

and

■

Consolidated Mining & Smelt¬

ing Co. of Can. Ltd
Lead, zinc, silver,
tilizers, etc.

chemical

fer¬

Consumers' Gas Co. of
Toronto

—

Manufactures and distributes gas
in the Toronto area

Consumers
Wide

Glass

Co., Ltd.__

variety of glas8 containers

Corby (H) Distillery Ltd. "A"
Holding
cohol

and

operating
spirits

and

Cosmos

Imperial

Manufactures
cotton

co.—al¬

Mills

heavier

Ltd.
of

grades

duck

Crown Cork & Seal Co.. Ltd.
Bottle

for

caps

the

a43 Vz

4.6

in¬

beverage

dustry

Crown Trust Co
General

Crow's

fiduciary

Nest

business

Pass

Coal

Co.,

western

slope

Ltd
Coal
of

producer

Rockies

Canadian

Distillers Corp.-Seagrams
18
A

holding

complete

co.—interests

1.70

29%

5.7

and here is the

include

whiskies

gins

Dome

and

International Bank to help you

Ltd

Mines

Ontario

line

Dominion
ment

gold

0.70

14.87

4.7
Discuss your

producer

and

Anglo Invest¬
Ltd

CorD..

14.00

1.30

a240

5.8

Investment holding company

DOMINION

184

branches

England,

and

the

•

See

Add

translate

36 y2

3.6

Can.,

for

Canadian

into

E£Sfd"

—

you

funds.

rate

'■

Add

equipped to give

authoritative information and expert

■'J

i r. . • -» #

.451*

of the many^
banking and frnancial problems and details
guidance

credit,

connected with Trade.

Continued

,'k.j . »

International Bank

General Offices:
44

King St. West, Toronto

ft f *

Growth

-"tit

y ■*» «)■*-»■

page

-1

any

Jamaica:

Kingston

and

other branches. In Cuba: Havana
and 6 other branches. In Puerto

■

exchange.

funds.

»J

29.

page

§ Adjusted
translate

A Partner in Canada's

countries—The Bank of Nova Scotia is in
fact

into

•

Branches Outside Canada

Bank's advertisement

International Banking requirements with:

Indies, and with correspondents in other

BANK

Operates

With more than the U.S.A., and the West
Great Britain, 400 branches in Canada,

New York Office:
37 Wall St.

London Office:

103 Old Broad St.

San

Rico:

Juan,

Fajardo

and

Santurce. In Dominican Republic:

Ciudad

Trujillo; and correspon¬

dents all

over

the world.

"'1

•-

(28

(1288)

The Commercial and Financial Chronicle

ning

Wertheim Team Wins

edged out

team

place

from

team

the

Carl

second

Loeb,
Co., which netted 317.
Third place went to Baker, Weeks

nilfmoi' 9. Ha

Hayden Golf Trophy
A

four-man

golf team repre¬
senting Wertheim & Co. won the

Co., with
i

John

won

Trophy Tournament at
Whippoorwill Club, near Armonk,

ors

with 75.

ual

Annual

Charles

Hayden

Hemorial
Y.

The

winning

score

was

net of 316 for the four-man
A

total

New

York

teams

team.

representing

investment

houses participated

net

with

Charles

donated

157.

the

Consisting of Herbert A. Gold-

Canada

announce

Wiikinson

Robert

Bach,

Charles

and

that

Warren

George

Mead

Warner and T. W. Hawes, the win¬

Years Cash

Bridges,

Mr.

the

firm.

Tucker

was

i 1d i

n g.

•:

Canadian $ *

1954

—

3.8

22%

4.4

fO.64

1.00

0.80

alO

8.0

0.60

4.0

fl.425

40%

3.5

2.00

32%

6.2

0.60

24%

2.4

0.50

8.0

structural

kinds

of all

Ltd.

________

Wide

previously with

variety

machines

and

equipment

Dominion

X:/

Fabrics, Ltd.

■

195$?*.

1954

June 30,

Dominion Engineering Wks.,

Mr.

Rauscher, Pierce & Co.

June 30,

30,

Paymts. to

Co., Ltd.__
and

cranes,

tion

Based

Dominion Bridge

^ociated with them in the Dallas

founder

June

Divs. Paid

as-

Quota-

12 Mos. to

secutive

steel

Wilson B

'.<> Yield

Extras for

No. Con-

—

Roy Tucker has become

Approx.

Including
'
,

memorial

; t

Cash P'vs.

office>

Hayden,

A Wonderful Climate

have been added to their staff in

Trophy

partners

^ Company, South Texas Build-

perpetual

1954

For Investment

...

27,

page

play

from

Thursday, September 30,

San Antonio.

Hayden

71.

the1 two-man

led

net of

the individ-

„

SAN ANTONIO, Tex.—Dittmar

O'Neil, Jr. of ing,

won

score

Co.

with

The
was

„

Ci^lC

Hayden, Stone & Co. and is kept

tourney.

stone,

low

teams

banking

in this year's

Grover

Fahnstock & Co.
Drexel

...

Continued,

I 11166 10 vftOIl
,

the low gross score hon-

„

of 318.

score

Ryan of Smith, Barney &

Co.

26th

net

A #1*1

1111111131 Of UUn Hull

Knoades &

...

_—

Towels, tapestries, draperies, etc.

SgISSSSSSSSmSSSS&SSSEE

Dominion

Foundries

Ltd.

Steel

—

Makes
steel

wide

variety

primary

products

Dominion

Glass

Co., Ltd._X

Wide variety of glassware

Dominion Oilcloth and Lino¬

HIGH GRADE

leum

Co., Ltd

Wide

and

"■ r

•;

Stores Ltd._

Operates

grocery

Dominion
Wide

_________

linoleum

products

Dominion

DIRECT SHIPPING IRON ORES

range

oilcloth

chain

meat

Textile Co., Ltd.__
of cotton

range

and

yarns

fabrics

Washing

Easy

Machine

Co.,

Ltd
Electric

washing

polishers,

Economic

air

machines,

floor

circulators,

etc.

Invest't Trust

General investment

Ltd.

trust business

Electrolux Corp..
"Electrolux"

BLAST FURNACE AND

air

11
cleaners,

vacuum

<fc

purifiers

Listed Companies

Which Have Paid Consecutive

Dividends From 5 to 10 Years Appear

OPEN HEARTH

Table

Second

Starting

in the

Page 35.

Equitable Life Insurance Co.
16

2.7

0.50

171/2

2.9

1.65

23%

6.9

§1.46

21%

6.7

3.75

89%

4.2

life

line

Wide

0.65

0.70

4.1

1.00

19V2

5.1

of Canada

1.20

24%

4.9

endowment

policies

Nickel

Falconbridge

Mines,

Ltd.
Nickel,

copper,

produces

steel

cobalt; subsidiary
castings

Famous Players Canadian

Steep Rock Iron Mines, Limited

Corp., Ltd
Largest

operator

theatres

ture

motion

pic¬

Canada

Fanny Farmer Candy Shops,

Steep Rock Lake, Ontario

Inc
Operates large candy chain

Ford

Ltd.,
ggsaBgaaggggs

Co.

Motor

Canada,

"B"

Automotive

Foundation

manufacturer
Co.

Canada

Ltd
Engineers

and

general

contrac¬

tors

Fraser

Companies, Ltd.____—

Wide

Gairdner
320

Company Limited

variety

Gatineau
/

Power

Hydro-electric

Add

t Adjusted

§ Adjusted

Complete facilities for investors in

translate
a

Canadian securities. Private enquiries

Canada

lumber
X

■'*

energy

in Eastern

into U. S. funds,

translate

for stock
for
into

splits; .etc.

dividends,

Canadian

—

rate

exchange.

Asked.

Company

monthly report
the

Canadian

Member: The Toronto Stock Exchange

Economy

Canadian Stock Exchange

Vancouver Stock

Exchange

If
the

40 Wall

Gompany Inc.

you are

interested in Canada

you

will want to be

our

U. S. offices
.

or our

Head Office

TO 2 millM

Investment

Dealers'
Association

of Canada

up-to-the-minute brief of Canadian economic trends. Address

any

in Montreal.

Street, New York 5, N. Y.

mailing list for the B of M's monthly Business Review—

Member:

The

financing in

Gairdner, Son

Gairdner S

invited.

are

Exchange

Add

funds,

Montreal Stock

Canada

Bay Street, Toronto, Canada

by corporations

and

paper

products

Bank

Montreal

Kingston

Quebec

Hamilton

Kitchener

London

Calgary

Vancouver

Edmonton

OUUUHM

Montreal

Winnipeg

New York

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New York... 64 Wall Street

Francisco... 333 California Street

Chicago: SpecialRepresentative's Office, Room 1802, 141 West Jackson Bird.

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4

HEAD OFFICE: MONTREAL
•

Resources Exceed

$2,300,000,000

Volume 180

Number 5364

Canada

...

The

ComAercial

and Financial

Chronicle

ContiMied

A Wonderful Climate

(1289)

For Investment
Approx.
% Yield

Including
secutive

Extras for

June

Divs. Paid

tion

30,

June 30,

1954

Based

Paymts. to
June 30,

1954

Canadian $ *

—

General Steel Wares Ltd

Quota-

12 Mos. to

Years Cash

1.00

refrigerators,

10 Vz

9.5

etc.

■

130

2.7

rubber

Stores

Ltd.

Iron

_____

tribute

subsidiaries

textile

which

products

1.00

al0y2

9.5

of life,

range

Co._

accident

variety

wire

fiduciary

gold

of Can.__

Specializes

and

can

broader
out

scale

the

Far

develop¬

a4.95

5.1

0.60

0.20

a3.20

simply

take

sacks

course,

air

1.40

171/4

0.80

a8y4

1.50

entire min¬

site

Lynn Lake only

originally constructed as a mili¬
tary highway by the U. S. Gov¬

that

now

ernment

1942

defense

against

War

when

the Ca¬

this

same

way.

way

part

Japan

the

World

the

Except frr strictly
tne

the North

small

local

roads

settlements

Country, the highways

region

are

neither

and Alaskan ports.

Since

Influence of the Alaskan Highway

of the

tradi¬

and

Japanese, byauthorities
are
contem¬ landings in the Aleutians, threat¬
plating transposing Aklavik and ened the ship lanes connecting
Coppermine to new and better Vancouver and Seattle with Skag-

around

the

roads

fa¬

the

nadian

Country today receive

dog-sleds,

these

most

means

dian
elled
way

early in 1946, the Cana¬
portion, which has a grav¬
all-weather

the

surface

all

the

Yukon-Alaskan bor¬

der, has been maintained by the

Continued

numer¬

page

8.1

year,

new

The

During the long cold months of
the

rich

probably most of the residents of
NOrth

—

all

4.8

textile

products

seamless

"Wilton"

9.7

"Axmin-

rugs

4.4

variety of automotive
•

Hinde and

Dauch

Greenshields & Co Inc

Co.

Paper

Canada Ltd.

variety

boxes,

Underwriters and Distributors

Members Montreal Stock
The Toronto Stock

etc.

paperboards,

Canadian

HoUinger Consolidated

Gold

Mines, Ltd.:
Ontario

Greenshields & Co

3.3

Wide

shipment

and rivers.

ing village, Sheridon, was moved,
house-by-house, in this fashion

sites

longest

The

years,

in recent years

packed

for

and

—

6.3

parts

lakes

profitably
Cana¬

North.

extensive.

nor

mous

course
the Alaskan Highway, a
caterpillar tractors, 1,523-mi le thoroughfare extend¬
dragging sleds, have also been ex¬ ing from Dawson Creek, B. C., to
tensively used to haul heavy sup¬ Fairbanks, Alaska, 1,221 miles of
plies,
largely
over
the
frozen which
are
in
Canada.
It
was

recent

the

some

ous

business

Hayes Steel Products Ltd.__

0.25

-Harding Carpets Ltd
ister"

ore

many

Kiti-

of travel throughout
North, remain the prin¬
means
of
moving
about
parts of the region. But in

producer

variety

Wide

1.8

products

Hamilton Cotton Co., Ltd

alio

and

Hallnor Mines, Ltd
Ontario

iron

and

mode

Far

cipal

their mail.

Guaranty Trust Co.
General

think

would

the

Greening (B.) Wire Co., Ltd.

Wide

2.00

policies

Wide

by air today,

ores

health

used

aboard the planes.

goods

Great-West Life Assur.

Co.'s

100-pound

dis¬

allied

been

dians believe that air freight may
in the future be employed on a

Wide

Ore

ores

"B"
Manages

also

project in

much

Mackay

have

fly equipment into Alcan's

hauled

3.50

products

Gordon

tional

the

Planes

people
28

synthetic

Port

Quebec-Labrador. While
gold is about the only metal most

& Rubber Co.

and

far North

ment in

Canada, Ltd.

Natural
.

Moosonee to

Harrison.

mat

Household utensils; hotel, restau¬
rant,
and
hospital
equipment;

Goodyear Tire

page

Canada's Plans ior Its Northern Territories

Cash Divs.
No. Con¬

from

2»

gold

0.24

15.75

4.00

6.00

al39

Security Issues

Canadian Stock

Exchange
Exchange
Exchange

1.5

producer

Hudson Bay Mining & Smel•

ing Co. Ltd.

8.7

507 Place d'Armes, Montreal

Manitoba copper & zinc producer
"

Huron & Erie Mortgage Corp.
Lends

money

security

debenture

first

operates

out

4.3

deposit

accounts

Imperial Bank of Canada
Operates

mortgage

234

1.50

411/8

3:6

1.50

a49i/2

0.85

32%

Ottawa

Sherbrooke

Quebec

Toronto

3.0

branches

2.6

through¬

Canada

Imperial Life Assurance Co.
of Canada
Comprehensive

range

life,

dowment and term policies

en¬

Imperial Oil Ltd
With

subsidiaries

integrated oil
-*

Add

comprises fully

enterprise

translate into U. S.

Outstanding Brokerage Service in

funds,

Asked.

Continued

page

have maintained offices in

and

are

members of all

service

our

enables

demarcation line

business, and
If you are

a new

it's the

than

Consult

international

threshold

many

years

Canadian

offices

and

principal markets

supply the latest available information and

your

orders promptly.

regarding securities of companies

in both the United States and Canada

markets, new
meaning for American investment abroad.

...

for

leading exchanges. A direct wire

quotations and to execute

The Northern border is

Canada

new

interested in Canada and Canada's meaning to
an opportunity for friendly

your

business, don't overlook

and

interested counsel

from

those

who

know

Inquiries invited.

Canada

best.

BROKERS

SECURITIES AND

11 Wall
39

Street, New York

offices in the United

Members New York Stock

New York Office—49 Wall Street

COMMODITIES

States and

Canada

Exchange and other leading security and commodity exchanges

Dean Witter Adds

Y-

Continued

>,■

OAKLAND, Calif. —Harold F.
Eberle, Jr. is now with Dean Wit¬
ter &

Chronicle. Thursday, September 30,1954

The Commercial and Financial

(1290)

jrom

page

Continued

Canada

Canada's Plans lot Its

Co., 409 Fourteenth Street.

jrom

page

A Wonderful Climate

For Investment

Northern Territories

Appro*.

Cash Divs.

Dependability

Canadian

The

Army.

more
and more
the full economic

becomes

ada,

of the
mainte¬

Northwest Highway System

and

accessible

secutive

the

from

between Dawson Creek and

forth

Yukon

the

Canadian Industrial
&

the

indication

growing

the

Columbia

British

Mining Stocks

the

area

son

well

smelters

crease

the

size

Fort

South

road

St.

Dawson.

the

year

son

seat

government

City there.

Oshawa, Ontario I
It
has
been
estimated
that,
388 Queen St.
Niagara Falls, Ontario
developed, the entire
181 Charlotte St.
Peterborough, Ontario
39 Queen St.
St. Catharines, Ontario northwestern part of the conti¬
52 St. Clair Ave. East
Toronto, Ontario
nent, including Alaska, could sup¬
42 James Street South
Hamilton, Ontario
>'3 Dundas Street North
Oakville, Ontario port a poulation of six million
King St. East

'properly

persons.

MEMBERS

E. D. SCOTT

A. C. HUBBS
FITZGERALD

DONLEY

built

Canol

ship

World

during

Norman

oil

via

Wells

Listed

erations

entire northwestern section of the

(Limited)

continent,

and

particularly

the

Continued

Can¬

1.50

b28%

5.2

Co.

line

1.00

14%

6.8

2.38

21%

11.1

Journal"

Ottawa

home

appli¬

Companies Which Have Paid Consecutive
Second Table

Starting

in the

Page 35.

Kerr-Addison Gold Mines
15

0.80

18.12

4.4

0.01

a0.37

2.7

1.00

20%

4.9

1.60

27%

5.8

0.10

5.20

1.9

0.24

3.60

6.7

0.80

15%

5.2

0.05

0.72

6.9

1.50

55%

2.7

Ltd.

§1.21

Ontario gold producer

with

Gold

Lake

Mining

Co., Ltd
Ontario gold producer

John

War

Ltd

Labatt

Lake

Mackenzie

of the

Ltd.

investment

Dividends From 5 to 10 Years Appear

pipeline from
the

4.1

parts and repairs

General

type

"The

Complete
ances,

jointly by the Canadian and U. S.
Governments

33%

re¬

undertaken

Project

§1.38

Kelvinator of Canada, Ltd.—

Kirkland
the

4.7

compa¬

Foundation

Publishing

Publishes

Mountains.

connection

21%

Corp.

development

Ottawa, Ltd

brewing business

Woods

the

Milling

Co., Ltd

from West to East, at the River Valley east of the moun¬
present time, exclusive of mili¬ tains to a
refinery which was
tary personnel, is only 25,000 to
constructed in Whitehorse.
Both
30,000 persons. The picture prom¬
ises to change completely as the pipeline and refinery ceased op¬

PARTNERS

population

was

1.00

Alberta

Journal

stimulated

ada,

Calgary Stk. Exch.
Canadian Stk. Exch. Winnipeg Grain Exch.

L. L. MASSON

present

of the northern territories of Can¬

Vancouver Stk. Exch.

Montreal Stk. Exch.

CRANG

The

5.7

trust

of Mayo and

Mackenzie

Co.,

producer

electrical

Management

in through the six to eight thousand
foot-high

nies

the Yukon was moved from Daw¬

oil

gas

Investment

gion, too, the Alaskan Highway
Lower Yukon, at joins with a secondary road
over the past dec¬ which, in turn, runs into Canada's
ade.
Such has been the impor¬ "Burma Road," a rough thorough¬
several
hundred
miles in
tance given to Whitehorse by the fare
highway, in fact, that only last length which winds tortuously

BRANCH OFFICES

2.35

Ont.

Utilities

Management

the
the other end,
horse,

American

natural

large

Whitehorse

the

Sudbury,

near

International

connecting Whitehorse with

the mining districts

John, at one end of the highway,
and the three-fold increase in the
number of inhabitants at White-

7.5

refiner

the construction of an all-weather

10-fold in¬

has

Territory

al4

Co.

Ltd.

highway in the

Existence of the
Yukon

are

1.05

Nickel

International Petroleum

of spruce.

stands

merchantable

in the 15-fold in¬
in the population of Daw¬
seen

Creek itself and

there

Holding
&
operating co.—Pri¬
mary
operations at mines and

Teslin

Rivers,

5.7

Toronto,

Canada, Ltd

along the Nisutlin and

and

Teslin

In the vicinity of

worked.
Lake

regions of

farther North penetrated

crease

northern

bakeries

International

being

are

1.20

and Montreal

Ottawa,

end

upper

already

which

importance of the Alaskan High¬
way

The

sections.

directly with Daw¬

5.1

Varnishes, lacquers, enamels,
paints, etc.

Operates

of the
son
Creek, has also provided a highway in British Columbia is
situated to large de¬
better access to the Alaskan High¬ favorably
way from the southern portion of posits of asbestos, tungsten, zinc,
lead, silver and even gold, some
British Columbia.
Prince George

0.475

Color

and

Inter-City Baking Co., Ltd.

and

1954

Co. Ltd

The

bowl.

dust

June 30,

—

cigarettes

and

Imperial Varnish

Paymts. ta

1954

Canadian $ *

cigars

Tobacco,

has

estimate

recent

J. H.

June 30,

Imperial Tobacco Co. of Can¬
ada, Ltd. "Ord."

adjoins
the
rich Alberta
Alaska. A area
placed this wheat-growing district and al¬
is
yielding
good
crops.
increase in travel at 25%
a year. ready
ranching possibilities are
Since spring last year the new Cattle
John Hart Highway,
connecting also believed to exist in some
both

Toronto Stk. Exch.

tion

June 30,
1954
—

Highway has being carved intp new farms at
been
the
avenue
by
which a the rate of 20,000 to 30,000 acres
a
year in the pioneering type of
growing commercial and military
traffic has been moving back and homesteading, partly by refugees

Paramount

12 Mos. to

Divs. Paid

Alaskan

the

long,

Based

Quota-

Years Cash

up
to date has involved potential of the region can be ade¬
construction by
the Royal Ca¬ quately exploited and developed.
The virgin plains of the British
nadian Engineers of a $2% mil¬
lion steel bridge across the Don- Columbia Peace River, which the
Alaskan Highway crosses a short
jek River at Milepost 1131.
Kept open to traffic all-year¬ distance above Dawson Creek, are

Extras for

nance

% Yield

Including
No. Con-

flour

Mills

commercial

Lake Shore Mines,

feeds

Ltd

Ontario gold producer

Lamaque Gold Mines Ltd
Quebec gold producer

war

page

Laura

Secord

Candy

Shops,

Ltd.
Retail

candy chain in Ontario <fc

Quebec

Leitch Gold Mines Ltd
Ontario gold producer

Loblaw Groceterias Co.,
Ltd. "B"
Operates

CANADIAN STOCK SPECIALISTS

Oper.

"self-serve"

stores in Ontario

grocery

Loblaw

chain

Inc
"self-serve" food

133

2.4

a50

mar¬

kets in north'n N.Y., Pa., & Ohio

♦Add

§ Adjusted

Orders Executed

all Canadian Exchanges at

Regular Commission

Rates

translate

into U.

Canadian

for
into

translate

—

funds.

rate

exchange.

Add

funds,

Asked,

b Bid.

Traded in New York in United States Funds

CANADA-1954
The present
ment

position of Canada's economic develop¬
compared with that of United States

has been

about the turn of the century.

Common shares of Canadian

tunity to participate in
The facilities of

CHARLES KING & CO

you

our

matters

Corporations offer

oppor¬

sound and growing country.

organization

pertaining to

are

available to assist

Canadian

securities.

Members
American
Toronto

Stock

Montreal

Exchange

Stock

Canadian

Exchange

Stock Exchange

Exchange

BANKERS BOND CORPORATION
Looted

BROADWAY

Telephone

WHitehall

NEW YORK
4-8974

Teletype

Business Established 1912

6, N. Y
NY

1-142

44 King Street
kitchener

Direct Private Wires

Toronto and Montreal

West, Toronto, Canada
london

hamilton

Members of

The Investment Dealers' Association of Canada
The Toronto Stock Exchange

[Volume 180

Number 5364...The Commercial• and Financial Chronicle

Canada

Continued

A Wonderful Climate

•

from

»>• •

page

(1291). 31

tungsten and tin.

local

For Investment

Canada's Plans for Its
Approx.
% Yield

Cash Divs.

Including
Extras for

Quota-

12 Mos. to

tion

Paymts. to

June 30,
1954

No. Con-

Divs. Paid

—

Walter M.

Lowney Co., Ltd.

1954

Canadian $ *

—

al8% "

1.00

June 30, June 30,

5,3

Chocolate & other confection

after

nearly two million barrels
of petroleum has been processed.
A

Clue

Government

Construction

Maclaren Power & Paper Co.

a70

2.00

2.9

Holding co.-—newsprint, lumbering
1

& power interests

fll.025

4.6

22%

Fully integrated lumber business;
large exporter

the

southwest

Northwest

Ltd.

0.12

7.2

1.66

Ontario gold producer

Policy

Mackenzie

corner

the

Territories provides

good clue, really,

Madsen Red Lake Gold Mines

the

Highway from Grimshaw, Alberta,
to Hay River on Great Slave Lake
in

MacMillan & Bloedel Ltd. "B"

to the lengths

the authorities will go to assist in
the promotion of private projects
in the Canadian Far North.

Once

Marcus Loew's Theatres, Ltd.
Owns two Toronto motion

5.00

picture

theatres

Mitchell (J. S.) & Co., Ltd.__
General

supply

house

for

1.25

b35

3.6

1.20

b25%

4.7

many

industries in Eastern Quebec

Molson's Brewery, Ltd. "B"_
Montreal brewer

Moore

Corp., Ltd

28%

1.15

4.0

Business

forms, advertising
display products, etc.

transportation of the fish caught

McColl-Frontenac Oil Co.

Ltd.
Oil

1.00

33%

3.0

production, refining &

Mines,

Porcupine

Ltd.

3.00

62.00

4.8

0.75

liy2

6.5

Ontario gold producer

National Drug and Chemical
Co. of Canada, Ltd
of drugs, chemical &
general merchandise

National Grocers Co., Ltd.__

larger
Lake

National Trust Co., Ltd

Neon

Add

translate

to the Arctic Circle at Echo Bay
on Great Bear
Lake, a huge body
of water

development at Pine

each

winter, the

north of Great Slave

gov¬

River.

the lake from Hay River to the
mining district of Yellowknife.
The

the

counts for

industry is leally
of
the Northern
Fur production ac¬

around

the

than

total annual

million—or

Port

from

ores

be derived and.
a

by-product
at

discovered

The

Radium

result

community
established

was

the

o£
as

and

1933

deposits

the south shore

production,
started in a grand way.
Claims
were
staked on extensive Ieacfc-

fishing

zinc
of

Great

Slave Lake in 1920 but

decision

must

whether

still

reached

they should be

worked.

the

coal

the

Yukorv^

coal at the mouth of the Macken¬

zie,

near

local

Aklavik,

serves

Oil

needs.

Norman Wells

strictly

discovered

the Mackenzie*

south of

Aklavik, likewise seems
destined to meet territorial needs,

City in

despite its
buildings —

spot.

same

Great Slave Lake—and

Dawson

likewise

were

yield of

can

of which uranium is

mining

Territories.

Pitchblende

which radium

mainstay

the Klondike,
numerous abandoned
objects of fascination

ready
apolis
b25y2

1.20

0.80

4.7

Western

the

been

replaced, since

valued

3.5

funds.

II The

company's fiscal year ends Sept. 30.
For the fiscal years
ending Sept. 30, 1951, 1952, and 1953 the practice was to pay a
quarterly dividend of 12Vic with an additional payment of 30c
per share being made on Sept. 30
producing a total of 80c
per share for each of these years.
In February, 1954 (but retro¬
active to Oct. 1, 1953) the practice was changed to the payment
of a straight 20c per quarter—producing a total of 80c for the
year ending Sept. 30, 1954.
t Inactive issue. No exchange trading,
...

and

from

7.8

also

into

metals

25%

advertising signs
3%

and copper were discovered close

approximately 200 miles
Lake, easily
reached by river from about the
ernment
plows a truck road
through the snow over the ice of halfway mark on the Mackenzie
base

depths

Erie

with

2.00

Lake

Ltd

and

9.5

accepts deposits

Products

than either
Ontario

10%

Canada

1.00

etc.

Neon

railhead

Railway cars, automobile chassis,

business;

the

running to 1,000 to 1,440 feet.
Today the lake is yielding an¬
nually
around seven million
pounds of whitefish and trout,

Ontario grocery wholesaler

National Steel Car Corp., Ltd.

trust

im
the

primarily because of the distance*
it would have to be hauled to*
other

Territorial

markets'.

needs

Great Slave Lake, situated ap¬ to tourists
is no ghost town,
might prove to be large, however*
proximately west of Hudson Bay either, producing nearly $3% mil¬
when the amount of oil whicK
halfway
to
the
Yukon-Alaska lion in gold as recently as 1950,
was
shipped via pipeline to
border and 340 miles south of the for instance.
The hand methods
Whitehorse during the last great
Arctic Circle, is the fifth largest of mining which yielded a peak
war, is considered.
Drilling forlake
on
the
continent,
being of more than $22 million in gold

Wholesaler

General

lake

med^

mined

—

distribution

Mclntyre

the

Grimshaw.

Coal, to

been

localities

In the Mackenzie District of the

operations on
so stands,
established, through a scientific along with this fish business, in
survey made in 1944, the possi¬ a sort of second
place to mining.
bility of commercial fishing in The discovery of gold in the Yu¬
this body of water, the lake was
kon, of course, gave mining its
opened
to fishermen the very initial
big boost in the North
next year and both the Federal
Country but gold is by no means
and
Alberta Governments went
the only valuable ore being mined
to
work on a joint project
to there today. Gold production re¬
build
an
all-weather
highway, mains important, however.
completed only three years later,
to
Dawson City No Ghost Town
permit quick and economic
the Fisheries Research Board had

has

Northwest Territories, both silver

the south shore of the lake to the
Point

products

different

territory.

Northern Territories

Based on

secutive
Years Cash

needs,

five

$2 million, which find
sale at Chicago, Minne¬
and other points in the

S. Midwest.

Klondike

1900

oil

have

1905

Gold

too,

Slave

discovered

was

Yellowknife

Lake

the

and

first

natural

Mackenzie

around

dredging,
employing large and
expensive equipment, to extract
the precious metal from tfie
ground there.

and

the

Fort

gas

continues fan

District,

notably

Providence

and the

region west of Hay River. De¬
posits of copper at Coppermineon

the

shore

the

Arctic

Sea

have been thoroughly prospected
1933, but so far none have been found
Great rich enough to warrant develop¬

mine

ment.

into

went

operation there five
To assist prospectors determine
So great has become the fishing years
later.
Today, there are
operation on the lake that one three producing mines in the re¬ potential mineralized areas in the
fishing company alone has a 56- gion, yielding altogether nearly Mackenzie District, the Depart¬
foot diesel motorship, capable of $9'million in gold annually.
ment
of
Mines
and
Technical.
hauling 36,000 pounds of fresh
In the Yukon Territory, in the
Surveys maintains a branch office
fish, in constant use there during region of Whitehorse, copper has
the
summer.
Both
the
fishing also been mined, more or less in¬ and library at Yellowknife. The
companies and the government termittently, depending upon governmem also sends out geo¬
agencies have 40 snowmobiles for prices, since 1900. At Mayo, too, logical parties each year to in¬
their operations on the lake dur¬ silver-lead
veins, exceedingly rich vestigate not only the more fa-,
ing the winter.
in silver, have been worked since
vorable areas but also to do reIn 1952, the Mackenzie High¬
1913.
Out of the
same
district
Continued on page 32
have also come small quantities
way was extended 70 miles along
V

Asked,

b Bid.

Continued

page

•i

Interested

Canadian Government,

In Canada?

Then you 11

Commercial

Public Utility

Municipal

and Industrial Securities

be interested

in the Commercial Letter

Canada-wide service, with offices at:

published monthly by

Montreal, Que.

Winnipeg, Man.

Ottawa, Ont.

Calgary, Alta.

Halifax, N. S.

Hamilton, Ont.

Edmonton, Alta.

Saint John, N. B.

©f Commerce.

Toronto, Ont.

Quebec, Que.

The Canadian Bank
i

Charlottetown, P. E. I.

Vancouver, B. C.

Each issue contains articles
©ft

St, John's, Nfld.

Canadian business

'and industry;
'new

and

Orders

details of

developments; facts

figures

economic

Accepted for Execution
Wire

DISTRIBUTORS

UNDERWRITERS

DEALERS

scene.

'
.

| Your business letterhead
will bring

The Canadian Bank

you our

of Commerce

Commercial Letter each
month. Write

our

Head

Business

Development Department,
King St., W., Toronto.

Seattle •
and

Los

Angeles

Royal Securities Corporation Limited.
244

Office—Toronto

New York * San Francisco

All Stock Exchanges

connections: Montreal—Toronto

the

.Keep up-to-date on Canada.

request

ST.

JAMES

STREET WEST,
H Arbour

MONTREAL 1

3121

Portland, Ore.

than 659 Canadian Branches
Mil

The Commercial and Financial
Chronicle

(1292)

Continued

We Maintain Active

from

page

Continued

Canada

Canada's Plans

Trading Markets in

from

...

page

Thursday, September 30,1954

A Wonderful Climate

For Investment

For Its Northern

Cash Divs.

Bank of Montreal

secutive

Years Cash

RIGHTS

connaissance

work

still

Divs. Paid

unex¬

Extras for

Inquiries Invited

and

Nickel

unmapped

Mining

sections.

Hudson

Niagara

Wire

Weaving

June

important

the

Keewatin

the

decision

Nickel

A. E. Ames & Co.

District
of

1954

Inlet

tion

expected

there

this

summer

Established

1889

Rankin
of

west

DIRECT

SERVICE

FAST WIRE

entirely
by

between

air

the

Ontario

Steel

Rankin

Co.

TORONTO

MONTREAL

Orders executed

basis

NEW YORK

Accepts

Inlet,

set

Churchill,

deposit of nickel

in United States funds.

tance off the

ore

stantiated

American Stock
Exchange and other leading Exchanges

Telephone DIghy 4-2525

Woolen,
i

southern

sec¬

appraisal

TORONTO. ONT.. CANADA

276 St. James Street W.

304 Bay Street

existed

area

Telephone: Marquette 5231

Telephone: EMpire 3-9212

for

5.4

3.00

4.5

0.80

3.00

fabrics

silk

7.1

knitted

r.i

Electro21

1.75

a42

4.2

Photo engravings, electrotypes,
commerical

photograhy, etc.

Listed Companies Which Have Paid Consecutive

Dividends From 5 to 10 Years Appear in the
Second Table Starting on Page 35. •

Pickle Crow Gold Mines Ltd.

west

Ontario

Placer

radioactive

that it would

com¬

mercial deposits of gold and other
did
not exist there,
and

metals

0.10

1.25

29 V2

4.2

1.55

34 V2

4.5

2.00

39y2

5.1

0.08

2.00

5.1

0.90

5.6

1.20

25 Yz

4.7

0.20

1.50

4614

3.2

0.26

1,0.62

2.4

1.05

9.5

Development, Ltd

Powell River Co., Ltd

Largest producer of newsprint on

the West coast

Power Corp. of

Canada, Ltd.

utility holding management &
engineering co.

Preston E. Dome Mines Ltd._

3.52

2.5

Ontario gold producer

Price Brothers &

that careful

inspection should be
especially for
beryllium,
columbium, lithium, tantalum and

interests

deposits,

unusual

gold producer

Investment—holding co.—gold

■

a24

Co.,

bumpers

Engravers
typers Ltd.

Bay., The geologists

57,000 square miles al¬
together and reported that about
14,000
square
miles
warranted

Teletype NY 1-1310

cotton

Photo

mapped

MONTREAL, QUE., CANADA

1.30

deben¬

goods

short dis¬

mineralized

NEW YORK 5

4.6

4.7

mortgages

Products

springs,

Woolens & worsted

Don

Hudson

WALL STREET

sells

first

Paton Mfg. Co., Ltd.___

house

Cameron, noted
government prospector, five years
earlier, after extensive explora¬
tion around Ennadai Lake, that a

Members New York Stock Exchange,

the

made

Established 1865

1.10

Industrial pipe & tubing

served

Page-Hersey Tubes, Ltd

plastic products

Keewatin, made over a
period of 113 days by five govern¬
ment geologists, using two heli¬
copters,
two
years
ago,
sub¬

AJtl.Ki$al)Cb

1.50

Hudson Bay line of

survey

tion

and insurance stocks.

serve

deposits

Automotive

dia¬

the CNR.

Primary markets in United States bank

2.8

Ltd.

base for operations. International
Nickel
also
has
found
a
large

commission

and

0.70

Ontario Loan and Debenture

ore

community,

workers

0.02

flour, feed, and cereals

channel

had

new

from

Mills

Invests

Nickel

has

4.8

Mines, Ltd....

tures;

mond-drilling for nickel on a
large government concession
where

73.00

Gold

3.50

producer

Ogilvie Flour Mills Co., Ltd.

Hud¬

shipped. In the same region, too,
in fact, at Ferguson Lake on the
International

6.7

Quebec gold producer

under way
the
Canadian
spent all last

where the

mainland

a37%

O'Brien

has

With produc¬

dredging

Churchill

2.50

wire

Mines, Ltd

Copper & gold

get

year,

Government

Business

which

shore

west

Bay since 1928.

son

Affiliated offices in fourteen cities in Canada and England

the

Noranda

Inlet

rich in nickel,

ore

1954

—

wire mesh cloth,
weaving machinery, etc.

been

1954

Canadian $ *

Paymts. to
June 30,

develop the

copper and platinum
been known to exist

Boston

has

Rankin

Mines Ltd.

435,000 tons of

Incorporated

New York

development

tion

June 30,

30,

Based

Co.,

Ltd

Bay

Makes

Quota-

12 Mos. to

—

plored

Approx.
% Yield

Including

Territories

No. Con¬

Co., Ltd.__

Newsprint & related products

made

Provincial

Transport Co

Operates coach lines in Quebec &
Ontario

Other

Arctic, including Ungava
Peninsula
df
Northern
Quebec,

have

How Can We

regions of the Canadian

Eastern

been

the

over

explored

Iron

thus

been

ore

low

known

abundance

Help Tou?

the

exist

east

Dealing with

firm with full facilities in Canadian,

American and

tages.
26

overseas

markets has many

We have those facilities

memberships

representatives in 73 cities.
we

offer

can

wide market and

supply in unlisted securities and primary
ary

large

requirements

small, we'll welcome

are, no matter

your

large deposit of iron

that

which

of high
discovered

and

been

and

mica,

have

Co.

along

the

Coal

of it difficult.

U nder writers

—

Brokers

—

Dealers

Corporate, Municipal & Canddian Securities
MEMBERS

NEW

YORK,

LEADING STOCK

AMERICAN,

AND

TORONTO

COMMODITY

AND

OTHER

throughout

use

ADELBAY BUILDING, TORONTO

1879'sASsf 1954

Bache&Co. -7
) 75 YEARS (

EXCHANGES

will

Tel:

forests

North,

EMpire 8-4871

region

Tel:

Dlgby 4-3600

and,

Oil

Co.,

Oil production
*

Add

Ltd

& development

Asked.

4 Inactive

translate

issue.

into

funds,

exchange trading.

Em LP
-■

STO(ik

crum¬

and

this

water

BROKERS

section

made

Island,

—

INVESTMENT DEALERS

MONTREAL

MEMBERS

ft,

S^iCK

EXCHANGE

—

CANADIAN

INVESTMENT

DEALERS

ASSOCIATION

that

CANADA

UX--

.the

B-

that whatever

the North

THE

gOTAL BANK BUILDING, MONTREAL, P. Q.

|%l-.

itself.

.BRANCHES

above

northern

the

75th

I
Halifax N.S.

Sydney N.S.

Saint John N.B.

parallel, about 500 miles north of

Coppermine,

STOCK EXCHANGE

".V.
THE

power

made of this northern coal

Melville

lar

suggests

the

existing in the

Continued

■\

Royalite

while

exis¬

tence of oil there, probably simi¬

world

also

Because of the lack

Seepage of petroleum

36 WALL STREET, NEW YORK 5

the

arctic

numerous

it is likely

1.4

Operates 79G branches throughout

the coal at Pond Inlet in particu¬

al4

bolts

Royal Bank of Canada—___

south

has

bles easily, making transportation

BACI1E & CO.

de¬

discovered

lar, is chemically good, it

inquiry.

screws

low-grade

coasts.

found

islands

Manufac¬

graphite and

been

points

east

range

L.)
Ltd

Island, north of Un¬

small

posits

Ore

(P.
Co.

about to work.

now

On Baffin

several

Iron

Wide

ore

commercial grade was

garnet

But

in the interior of the
Ungava Dis¬
trict. on
the
Quebec - Labrador«

gava,

turing

time.

Canada is

second¬

offerings of corporate and government obliga¬

tions. Whatever your

how

source

recently

border

security and commodity exchanges and offices

Thus

advan¬

some

Robertson

and

shore

Hudson

Bay for
only very

islands1

a,een-.

grade 'has

the

mainland

Operating public utility

companies

quarter

last

tury.

for minerals

mining

numerous

Quebec Power Co

Mac-

page

Private

Wire

System

Moncton N.B.

Volume

180

Number 5384

The Commercial and Financial Chronicle

...

(1293)

Canada

Continued

A Wonderful Climate

For Investment
Cash Divs.
Extras

12 Mos.

Years Cash

June

Divs. Paid

Russell

Industries Ltd.__

Holding

co.—machine

tool

% Yield

Based on
Paymts. to
June 30, June 30,

30,

1954

Canadian $ *

kenzie River valley and the north
of Alaska.

coast

1.00

The

1954

—

15%

6.6

recent

0.06

al.45

Manitoba gold producer

Saskatchewan

from

Electric meters,
motors, switches,

Fort

McMurray

etc.

has

been

for

uranium

Sarnia Bridge
Co., Ltd
Steel

bridges

duction

1.00

Scythes & Co. Ltd

cotton

and

waste, cotton wipers,

al5

6.7

1.20

al7%

6.8

etc.

Co.

and Power

electric

1.45

463/4

utility

3.1

Paints,

varnishes,

enamels,

3.20

a35

9.1

etc.

great

success.

the

Athabaska

new

development.
activity in the region,
of mining companies
ore* that a new com¬
suddenly sprung up

host

Breweries

Beer,
ale,
beverages

Ltd

stout

line

Slater

f0.60

5.0

middle of the wilderness
the Northwest Territories-Sas¬
katchewan" border and appropri¬

ately

Pole-line

bl0%

5.6

hardware

for

also metal

al3%

4.4

power

paper

manufacturers

4.0

Ltd

1.55

Canada;

operates

stations

4.6

•

Operating

public
Quebec

utility;

2.35

a39»/2

5.9

South¬

of
in

y';"1.75

branches

2.7

fiduciary

0.90

a21

4.3

•

1.20

3.4

steel

____

1.45

b30y8

4.8

little

over

residents

title

15.

year

and
of

only

Water

to make

from

the Ventures plan

of the Taku

use

of the other

one

Canadian

some

rivers

emptying into the Pacific
metal

Yukon water for the smelt¬

out

course

ing of aluminum by tunneling it

to haul
its smelter and finished

into

ores

utilize

the

but

from

there.

action

Such

naturally

beautifully into Canadian

dreams

—through the

developing

their

seaport

the country

back, that is, east

mountains

its case, to Alaska.

Government
tion

down

but, in

The Dominion

turned

the

the grounds

own

of the Alaskan Panhandle.

proposi¬

Continued

it op¬

Goodwin Harris

Along

page

TORONTO

tpwn,
tovrush

whether

mineral

INVESTMENT

1.00

al5y2

6.5

STOCK BROKERS AND BOND DEALERS

347

Toronto

Bay Street

185 North Front Street

1, EMpire 3-9041

0.80

PRIVATE

0.10

Quebec

held
their

the

Bell, Gouinlock & Company

not

much

northern

1.12

for

translate
stock

into

at
from

kon

Limited
Members

The Investment Dealers' Association of Canada

much

very

Mining

generating

Prosperous
the

Lake,
of

site

its

Montreal

The
a

the

Asked,

Continued

A
on

page

gold

itself

government

Leggat, Bell, Gouinlock Ltd.

has

plant on the Snare
supply electricity to the
district

Mayo

and

River

Members

Montreal Stock

Exchange

Canadian Stock

Exchange

another

the

serve

MONTREAL

precedent has

tablished—if
the

-i

Kitchener

Gold

Keno Hill district.

b Bid.

Winnipeg

Hamilton

power

Yellowknife

etc.

Toronto

London

Yellowknife, and the Yu¬

Consolidated

built

funds,

splits,

done

Smelting Co., Ltd., is

River to

dividends,

been

8.9

gold producer
to

has

Corp. is
doing likewise, on the Klondike
River, about 26 miles above Daw¬

WIRES

their

4.6

17y2

Sarnia, Ont., Dlgby 4-8831

the potential water
in the northern territories

power

mine at

EXCHANGE

ASSOCIATION OF CANADA

land.

miles

products

EXCHANGE

STOCK

DEALERS'

causing
to

they

rights

STOCK

EDMONTON
THE

pros¬

gardens

Company

MEMBERS

beyond,

that

ago

thus
is

one

development

government

adequate private

es¬

needed—for

additional

power

been

the

event

should

resources

be lacking for needed gen¬
erating capacity any place in the
territories. Very likely, however,
ever

CANADA—

:•

government

Service

for

all Securities

security,
at your

our

research and trading facilities

disposal. Consult

us—we can

help

will

never

COMPANY

cluster

industries, for any one of
a
hydro-electric
project
would be entirely out of the ques¬
tion financially.
The Aluminum

great
ect

Co.

really setting the

pace

Toronto Stock Exchange

for

Investment

interest in private hydro¬

electric

request7

Members;

of Canada's

British Columbia proj¬

new

current
upon

Established 1909

which

are

you.

Monthly Bulletin

MATTHEWS

single

one

require information or. quotations
Canadian Industrial, Mining or Oil

any

power

benefit of any

enterprise but rather for

When you
on

the

Dealers' Association

of Canada

development in the Cana¬

dian North. Alcan has constructed
a

Ross, Knowles & Co. Ltd.
Members:
i

The

Toronto Stock

Exchange

10-mile

from

Brantford

tains

TORONTO, CANADA

Sudhury

Sarnia

down

generating plant
the

Windsor

haul

being

huge

near

water

plateau

moun¬

the

sea

It wants this power
ancient

Douglas

transformed

modern

brought

city
up

—

Indian

Channel
into

from

220

Bay Street

Toronto, Ontario

EMpire 4-5191

electric-

smelting of aluminum at

Kitimat—the

lage

Brampton

high

the east side of the coastal

for

Hamilton

the west side.

and The Investment Dealers' Association of. Canada
25 ADELAIDE STREET WEST

tunnel

lakes

vil¬
now

large

aluminum

by ship from Jamaica

fits

—like Alcan has done at Kitimat

es¬

just

Power in the North

It is part of

the world.

original suggestion

upper

rights, possibly through

arrangement with British Colum¬
bia.

metals,

region

own

Lawrence

was

home

the

see

power

Com"

petroleum
and

the

its

around

and

owners

son.

Add

water

Aluminum Co. of America made
the

North

this -point to develop
of
it.
Consolidated

business

products

"Vot.

t Adjusted

Saskat¬

Simeon,

Huron.

and

Sylvanite Gold Mines, Ltd.__

haul

industries

Alcoa, however, still
hopes someday to obtain Canadian

too,
much of which it also

other parts of

Although

35%

Supertest Petroleum Corp.,

Ontario

St.

Baskatong

Lake

own

A.]) Oil Co., Ltd._

Markets

not

development of

also

along

the

wares

Makes extreme friction lubricants

Ontario

other

the Gatineau Valley,
Ottawa, from Wakefield

around

deeds

production

Ltd.

produce

portion of the
adjoining provinces is very great,

Sterling Trusts Corp

(D.

to
but

for

construct

the

Canada

should

power

Northwest.

the best lo¬

power

Lake

property
20

Canada, Ltd
all

b64

insurance

Wholesale and retail small
business
.>
.'17

and

St.

backyards

Stedman Brothers Ltd

General

would

literally swarmed over
North Bay, staking claims in the

endowment

Engaged

from ores,

pectors

Canada

Steel Co.

^region

Bay on Lake
Nipissing, north of Georgian Bay

Sovereign Life Assurance Co.

Stuart

near

Ltd.

and

Canadian

hydro-electric
to

for

other points

northern

north

uranium

well

as.

shore

and

•

north

radio

...

Southern Canada Power
Co.,

Life

reconnais¬

Canadian

The

however,

Lake

pecially

Co.,

Publishes'seven daily newspapers

City.

serve

for

River

in Canada

ern

wishes

water

reserved

hydro-power.

area.

numerous

Canada,

chewan,

1.00

the

Foster
10

and

The
in

Ltd.

across

for

its

concrete-block

there
for

proceeds at

stampings

(Howard) Paper Mills

Southam

Uranium

erected

branch

forgings

Pulp

called

even

building

dairy products,

Co., Ltd._______

companies;

Smith

smelter

generate

exportation

feels

Canadian Bank of Commerce has

(N.)

and

0.60

27%

carbonated

Silverwood Dairies, Ltd. "B"
Full

1.40

for

the

Sicks'

vast

plant
the

looking for
munity has
in

cation

aluminum

already

to find

Edmonton,

with

doing land

of the Yukon

prospected

Such is the
with

\
,

.___

Lake

posed
water

work along the headwaters

sance

and

Sherwin-Williams Co. of Can¬
ada, Ltd.

Slave

surveys and

extensively

from

mines

„

______

Quebec!

Great

the water

Lake, now it appears it will be
obtaining considerable additional

wool

ore

Shawinigan Water

Manitoba,

Whereas up to a year ago, Canada
derived
all
its
radioactive
ores
from Port Radium on Great Bear

•

.
.

Manufactures

5.9

pro¬

•

al7

and

District,

route

region

immediately to the South of the

4.1

Mackenzie

Sangamo Co., Ltd

Ore

the

years,

in the British West
Indies via the
Panama Canal.

Farther north
up the coast, Ven¬
tures, Ltd., has been making aerial

around Lake Athabaska in north¬
ern

Search for Uranium

int'sts

San Antonio Gold Mines
Ltd.

1954
—

page

Canada's Plans foi Its Northern Territories

Approx.

Including
fotL. Quotat<j'tion

No. Consecutive

from

Direct

Private

Albuquerque,

Wire

Connections

Atlanta,

Cleveland,

with

New

Dallas,

York,

Denver,

Montreal,
Detroit,

Chicago,
Paso,

Harrisburg, Houston, Kansas City, Los Angeles, Midland (Texas),
New Orleans,

Salt

Phoenix,

Lake

City,

Pittsburgh,
San Antonio,

Seattle,

Tucson

Portland,
San

St. Louis,

Francisco,

(1294)

Continued

from

Continued

page

Canada

Canada's Plans
BRAWLEY, CATHERS &

COMPANY

from

page

A Wonderful Climate

For Investment

For Its Northern

Cash Divs.

Dealers' Association of Canada

Members Investment

Toronto

Stock Exchange

Territories

No. Con-

Extras for
June

Divs. Paid

parts

some

the

north

end

the

Panhandle, the Canadians hold
that it is only the glaciers which
blocking direct

are

CANADIAN
"

fvv'. '!

-yv".

■

GOVERNMENT-MUNICIPAL-CORPORATION

the

access

sea.
The glaciers are reported re¬
ceding, however, and this can't
help but stir Canadian hopes along

most

optimistic veins of thought.

involving U. S. rights along
coast, of
to

the

desired.

are

BUILDING

COMMERCE

BANK

EMPIRE

ciated

has

3-5821

TORONTO

rights

Meanwhile, an
Frobisher,

asso¬

Ltd.„

company,

applied for British Columbia

rights

for

in the Yukon-B. C.

region to help

the mineral

serve

entire

part

openly
that

the

double
tion

to the Ventures
It is estimated at Ottawa

thinks
-

Yukon would

time.

similar

that construction

talked

about

Toronto

railroad, too,

Statistical information
ties

supplied promptly

executed

the

Canadian Securi¬

Toronto

request.
Stock

Orders

our

Exchange

affiliate member corporation.

the

out

needs

Canadian

the

Lake

Northwest

have

would

Great

the

tendency to

the development and
growth of secondary manufactur¬
ing industries all around. How¬

LIMITED

ever,
erection of
Great Slave might

smelter

220 BAY STREET, TORONTO,

Telephone:

EMpire

of Canada

limited

and gas

CANADA

the

duced

6-1141

date

for
has

inconclusive

pro¬

District

Territories, all the

and

Canadian

11 5

Investment Se

^ &

afftli

ated with

5.2

0.65

5.9

0.70

bl2.75

5.5

0.65

al4%

4.5

4.6

Issues

all

interests

Corporations

investment

trust

Ltd."B"
the

man¬

Table

Starting

Appear in the

Page 35.

6.4

1.40«

20%

6.7

1.00

4.8

0.625

1.00

Mines, Ltd.___

1.20

al9

0.14

0.925

3.8

7.1

12.87

10.9

producer

(Hiram)-Gooderham
Ltd

Holding co.—extensive liquor
terests

;

Manufactures

Western

sheet

Canada

in¬

vC..

c'c:

Products

Westeel

Ltd
metal

Breweries,

Ltd.
8erves

four

western

Westminster

provinces

Paper Co., Ltd.

-1-

"B"
Wide

1—
of

range

paper

products

Weston

(George)
biscuits,

3.8

■

Ltd

bread, cakes,

___

■

2.3

6.3

con¬

etc.

Ltd.
line

16.50

specialty
"

fectionery,

Pull

3.75

Co., Ltd

copper-zinc

Worts,

Wilsil

1.40

Quebec

Pine

al.05

and goods

Waite Amulet

0.85

Cotton

Cotton yarns

Walker

0.04

gold producer

packing house

Wright-Hargreaves Mines,
Ltd

the

possible

Northwest

way

there

Sea,

Ontario

are

water

to the

gold

1.66:

8.4

producer

Zeller's Ltd.

3.6

Operates chain of specialty stores
across

•

Add

Canada

Asked,

translate

Into U. S.

funds,

b Bid.

numerous

sites
large number of rivers

very

creeks.

the

power

other

end

Northern Canada, too, another po¬
tential
4
million horsepower of

electricity exists
on

BBOAOWAT

5.50 al05

deposits

co.—insurance

Wabasso

potential of the Ca¬

nadian Northwest. Throughout the
Yukon Territory and in the Mac¬

30^2

products

water power

Arctic

1.40

5.5

Montreal, and other Que¬

Ontario

results,

horsepower of electricity
itself, does not exhaust the

other

71
55

accepts

Upper Canada Mines Ltd

4 million

kenzie

aH1/^

Dividends From 5 to 10 Years

oil

Upper Yukon water, while hold¬
ing a potential capacity of around

0.80

Listed Companies Which Have Paid Consecutive

that has been carried out
district

agement type

vicinity.

exploration

only

manufac¬

mortgages;

and

cities

United

however.

/?£

Holding

pend upon the discovery of natu¬
The

first

3.0

a20

business

Mortgage

bec

well de¬

very

ral gas somewhere in the

Members: The Investment Dealers' Association

4.8

oils

United Canadian Shares Ltd.

Slave

encourage

Equitable Securities Canada

feed

vegetable

fiduciary

0.60
.

Elevators, Ltd,

tres

That is, smelters in

Yukon-B. C. and

Operates 34 motion picture thea¬

such

developments
would attract there but large num¬
bers of
other
people would be
given a reason to settle through¬
general.

through

United Amusement Corp.,
Ltd. "A"

shore of Great Slave to house and

which

0.26

man¬

of fine clothing

and

debentures

7.3

....

a
base metal
industry at
Point, not only would an¬
other large community rise on the

people

the

2.06

0.15
_■_

elevators,

Toronto

'
...

type

General

Pine

otherwise meet the

4.5

possibly
built to

ever

a40

In¬

Ltd
of

Second
and

—

the

railroad

smelter

Toronto General Trusts Corp.

vein,

serve

Corporate Bonds and Shares

trust

turing

times.

General

Trust

Grrain

sec¬

Alaska from B. C., on top of that,
would increase the population five

1954

Canadian $ *

1.80

29
*

Tip Top Tailors, Ltd

placb

some

population of the

Should

Debentures

Treasury Bills

the

much

Municipal

agement

country,

Mines,

producer

Canadian

Investment

industry of that

in the region of the

Provincial and

smelter

Canadian smelter

gold

vestment

friendly

project.

Government of Canada Bonds

Third

Ottawa of¬

ficialdom, anxious

Gold

....

Lends

the Yukon.

Hughes

Ontario

before the Dominion Cabi¬

Ltd.

Manufacturer

net itself if territorial water
CANADIAN

Teck

course.

The Ventures project may have

Ltd

June 30, June 30,

Operates chain of 103 drug stores

The Canadians recognize the prob¬
lem as being partly a legal one

SECURITIES

(G.)

Based

Paymts. to

tion

30,

1954
—

Tamblyn

Quota-

12 Mos. to

secutive
Years Cash

Approx.
% Yield

Including

on a single site
the Hamilton River in mineral-

rich Labrador,

the possibilities of
being investigated—at
the urging of the Provincial Gov¬

which

Flood a Company

are

ernment

Members

MONTREAL STOCK EXCHANGE

Newfoundland—by'a
British financial syndicate headed

CANADIAN STOCK EXCHANGE

TORONTO STOCK EXCHANGE

by the Rothschilds of London.

MiHs.

Spence

& Co

word

about the

Manitoba,

TORONTO

Canadian

^^lcr!s5S,tko,,t

TORONTO

said

devel¬

just below the 60th
the western shore of
The terminus of the

H.C. Flood & Co. Limited

National

base for northern

operations of

the Army but also as a great sea¬

port for the

INVESTMENT SECURITIES
MEMBER OF INVESTMENT

DEALERS'

ASSOCIATION OF CANADA

shipping of western

grain to Britain and Europe. With
the

use

down

sea

helicopters

lanes

and treacherous

Ry., Churchill
has become important not only as
a

Hudson Bay.

montbkai.

also

economic

opments at Churchill, in northern
parallel,

,„ves.men.

should
recent

track

through ice floes
icebergs in Hud-

Continued

on page

360 St.

James Street, West, Montreal

PLateau 4871

Volume 180

Number 5364... The Commercial and Financial Chronicle

(1295)

(tyr
J'
■

Canada

Continued

A Wonderful Climate

For Investment

from

the

page

combination

the

French

ments

influence of Old Canada, notably

Quebec, strong in its

Canada's Plans

tionalism

sense

for

not

na¬

absent

population,

life, with

erous measure

with

Scotch

and

Dutch

ahead

the English,

oth^r

and

the

among

nadians, taken

among

though
French

themselves, which enables the Ca*-

the qualities of thrift, determina¬
tion and enterprise, found in gen¬

For Its Northern

TABLE II

zest

and

the

with

as a group,

enthusiasm

moderation

move

but

the

yet

NevV

Canada.

ele-

Territories
listed
Bay, around 30 vessels, laden

son

with Canadian wheat, now depart
each shipping season from Church¬

CANADIAN

•

ill against an average of only one
two

ships

prior

annually

Midland Securities

to
members:

1945.

The

Common Stocks

Churchill

Atlantic
from

route

1,07-3

Calgary,
A total of

lane.

The Investment Dealers' Association of Canada I

shorter

miles

Canadian Government, Municipal

the

than

Great Lake and St. Lawrence

On Which

the

across

Alberta,

corpn. limited

sea

and

nearly 11 million

Corporation Securities

bushels of grain was shipped from

CONSECUTIVE CASH

Churchill
dian

DIVIDENDS

and

the

has

1953

Government

announced

Cana¬

The Midland Company

that the capacity of the grain ele¬

Have Been

Paid

vators

From

Churchill

creased

in¬

from

the present 2V2 to
bushels, commencing this
This increase in capacity

member:

The Toronto Stock

Exchange

5 million
year.

5 to 10 Years

will

make

growth
Cash Divs.

Approx.
% Yield

Including
No. Consecutive

Divs. Paid

Extras for
12 Mos. to
June

1954
—

Abitibi Power

Quota-

Based

tion
Paymts. to
June 30, June 30,

1954

Canadian $ *

22Ya

1.10

5.0

Pulp

2.00

6.7

0.60

3.5

Argus Corp., Ltd
co.—manufacturing &

interests

1.84

0.15

8.2

"B"

1.00

25y8

4.0

first

representative
Ottawa.

largest

allow

to
its

send

the

Building

110 March Street

itself—for

District

time—to

Sault Ste. Marie, Ontario:

own

Parliament

Only a few months
recognition of the

growing importance of the North
Canada—the

name

the

De¬

W ood,

Gundy & Co., Inc.

partment of Resources and Devel¬
of

the

changed

the

Wall Street,

admin¬

territories, was
Department of

New York 5

Adams Street, Chicago 3

105 West

affiliated with

Mackenzie Districts of the North¬

Territories

west

councils

the

help

formulate

now

terri¬

Wood, Gundy & Company

policy and arrive at decisions af¬

Ltd

the

separated

Mackenzie

torial

etc.

London, Ontario: Huron & Erie

Through elected repre¬
sentatives, both the Yukon and

British Columbia Forest
One

Toronto, Ontario: 50 King Street West

sources.

Co.,

Boxboards, corrugating materials,

Products

Exchanges

Northern Affairs and National Re¬
I

interests

Bathurst Power & Paper

North,

constituency set

was

istration

Prospectus, development and
holding co.—gold & other

Ltd.

Canadian

opment, charged with the

Barymin Co., Ltd

metal

River

1947

Newsprint & allied products

merchandising

the

ago—also

and

Paper Mills, Ltd

Investment

allied products

Anglo-Canadian

kenzie

the

too, is the fact that two years ago,
that is, in 1952, the Yukon-Mac¬

the

—

Paper Co.,

Ltd.
Newsprint &

30,

all

grain there each year.
sign of progress and

Another

Years Cash

ship a
maximum potential of 20 million
bushels

possible

Stock orders executed

producers

0.40

5.4

Limited

fecting their welfare.

Canada

for

Established 1905

Canadians

the

timber products in Canada

The

Brock

(Stanley) Ltd. "B"

0.40

' 2.00

6.7

Laundry supplies, hardware,
plumbing supplies, etc.

authorities

Operates
in

Dredging, Ltd...

6.20

32.2

gold dredging project

sometimes

are

fresh

Burns & Co. Ltd. "B"

2.50

4.7

Meat, lards, butter, poultry
products, etc.

Canada Cement

Co., Ltd

3.00

2.8

107

source

Canada

0.40

all%

3.4

—

5.50

a61

9.0

Oldest and largest foil converting

plant in Canada

Wide

Starch
variety

Co., Ltd

corn

other

products
•

Add

Asked.

of certain

raw

itself.

the

But

Members of

look

The Toronto Stock

and

as a new

mate¬

ally not to be found at all in the
U.

Wood, Gundy & Company
a

Canadians

look

Montreal Stock Exchange

Exchange

Canadian Stock Exchange
TORONTO

QUEBEC
HALIFAX

REGINA

LONDON, ENG.

HAMILTON

OTTAWA

JOHN

KITCHENER

VANCOUVER

WINNIPEG

MONTREAL

SAINT

LONDON, ONT.

EDMONTON

VICTORIA

CALGARY

cement

Foils, Ltd

Canada

inclined

mostly

rials, supplies of which, in some
cases, may be dwindling or actu¬

Portland

and

op¬

The people of the U. S.

upon Canada

New Guinea

every

portunity to make very clear the
point that Canada is for the Ca¬
nadians.

Gold

Bulolo

take

translate

into

funds,

matter

differently.
Canadians not only encourage but
seek outside aid, from the U. S.
and elsewhere, too, for the devel¬
opment of the Far North, as other
sections of the country. However,
they expect foreign companies,
interested in exploiting Canada's
natural

Continued

page

ada

very

resources

to settle in Can¬

that their enterprises

become

might

thoroughly Canadian. De¬

velopment

could

turn

out

this.

Even so,

itable investment in Canada
if it can't be in

Circumstances

force Canada
to compromise its stand somewhat,
just as it has had to do to some
to find

nal idea

INDUSTRIAL, MINING AND

was

Western

oil in

Street W.

EMpire 4-5161

Toronto

order

using it to

Now Canada

for

some

which to

Limited
Members of

The Investment Dealers' Assoc'at'on

Head Office: 355 St. James Street
Branches in the

Canada

W., Montreal

principal Cities of Canada0

come

would love

its

wide

petroleum

Nesbitt, Thomson and Company,
25

Telephone

Broad Street, New

Inc.

York 4, N. Y.

Teletype NY 1-4358

Hanover 2-8875

leaving out the Indians or the

■Eskimos—comes ahead of all other

considerations.

The Toronto Stock Exchange

selecting suitable investments through

in Western oil of course

products.
Obviously, in Canada, the wel¬
fare
of
the entire population—
not

Members

benefit to

Nesbitt, Thomson and Company

The origi¬

opportunity to develop

least

interested

development of Canada and of

participate in Canada's assured growth.

markets in the U. S. Northwest at

25 King

be of valuable assistance to those

compel foreign enterprises

Canada.

the

can

industrial

may

market for it.

interested

OIL SECURITIES

the

even

the driver's seat.

Others, that is, will be permitted
to share in Canada's good fortune.

extent with

investors

foreign capital can still
prof¬

find many opportunities for

Frame, McFadyen & Co. Limited

Our facilities

relatively slow in the North be¬
cause

OPPORTUNITIES IN CANADA

Nothing

else

can

evident
everywhere, to let the economic
winds
sweep
where they will,
without restraint.
Perhaps it is

explain

the

reluctance,

Direct

New

wire connections

between

York, Montreal, Toronto, Ottawa,
and

London

(Ont.)

Hamilton, Kitchener

J ir

Continued from page

and also in the Pacific

North West

result

this

oil fairly sizable reserves

oil to all
parts of Canada from the West
coast to Sarnia in thd East and
are serving different markets in

ral

for

of natu¬
had been established re¬
sulting
in
different
companies
making application for permits to

These pipe lines carry

take gas for
vince.

has

this

what

which I referred.

ance

this

one

the

Leduc

Canada

strike

half

times

requirements
ning of 1947.

what

were

wanted

the

the Dinning

study the natural

was

there

were

not

sufficient gas

established

of gas.

export

justify

Cash Divs.

same

end

1949 the Pe¬

Gas

Divs. Paid

there

vation Board

at the begin¬

islation

—

the

given—by leg¬

responsibility

not sufficient

were

established

dollars

paid out

working day

every

million

Co.,

policyholders,
beneficiaries,

Canadian

of the

SUN LIFE

and

The

Ontario

Consol.

other

The

1952, and

0.50

16%

3.0

0.50

3.6

1.00

11%

8.7

0.40"

81/4

4t8

1.20

21%

5.5

Steel & Coal

holding co.—coal,

Corp.,

iron & steel

interests

found
had

reserves

Dominion

Distiller

fields to

its

coal

tar

Chemical
&

producer

derivatives

Donohue Brothers Ltd._

Owns &

operates a paper mill at
Clermont, Quebec
■
.

Tax>„.:&

Co., Ltd

West.

3.1

Box

Ltd

in to the Pacific
This permit was re¬

North

types of steel structures

Dominion

Vancouver and intermediate

and

Paper

Ltd

Conserva¬

from the Peace River gas

points

Corrugated

the Petro¬

granted in 1952 to the West Coast

serve

0.20

Textile Mills Ltd

Disher Steel Construction Co.,

Transmission Company to take gas

OF CANADA

4.3

containers

its recom¬
export permit was

49%

newsprint

Shipping containers Si folding

been built up to 6.8 trillion cubic
feet

2.13

Ltd

Co., Ltd

operation

and

applications
established

4.3

3.8

Wholly owned subsidiaries produce
nylon & rayon fabrics
'

was

Power

Gas

0.93

a30

gold producer

five mills; daily
capacity, 2,479 tons

continued its hearings

tion Board
of

year

0.04

2.9

Gold

Owns

All

Natural

mendation

COMPANY

into

put

following
and

that the

ASSURANCE

line

Federal

the

1.15

68%

variety of

Mines, Ltd,I.:

without delay.

leum

large

Macaroni & related products

distance

This

record time and the line was con¬
structed

Catelli Food Prod. Ltd. "B"_

1.1

electrical apparatus

Commissioners for Canada
the Dominion Government

Commission

and annuitants

2.00

all

Co.,

Airbrakes

and by

the

0.125

Westinghouse

Ltd.

approved by the Board of Trans¬

Consol. Paper Corp.,

also

3.9

All types lumber & wood products

from Pakowki Lake to the Inter¬

and

25%

Co., Ltd.

operations at Butte, Montana, and
a 16 inch
pipeline was constructed

port

1.00

Canadian Western Lumber

Cochenour Willans

miles.

Dock

reserves

granted a
Montana Power

2.7

4.2

Shipbuilding, repairs; also makes
industrial & mining machinery

border, being

63%

Ltd._:__

Canadian Vickers, Ltd

Government,

about

1.70

a!2

Canada

permit to the
Company (as an emergency move)
for
Anaconda's
metal
refining

0.50

bakery

dredging; construction &
repair work on waterways

Government,
United States
authorities through the Canadian

national

Dredge

Western

General

general permit was granted. How¬

Federal

1954

—

Canadian

ever, the Provincial
at the request of the

Half

1954

Canadian $ *

Paymts. to
June 30,

distributes

products in

meet the foresee¬
able needs of the Province and no

was

June 30,

Makes &

hearing in 1950, they found that

troleum and Natural Gas Conser¬

Canada's

tion

30,

1954
—

Canada Bakeries Ltd

first

Board's

June

Based

Quota-

12 Mos. to

Years Cash

Petroleum

the

result

Natural

Extras for

secutive

Winnipeg and South to the United
States markets, and still others

Approx.
% Yield

Including

field;
others wanted to pipe it East to

and

A Wonderful Climate

No. Con¬

Creek

re¬

the

For Investment

reserves

serves

page

particularly

and

Pincher

the

Southern

the

Province,

from

known

take

from

areas

Canada

and the future re¬ proposed to build an all-Canadian
quirements of the Province. This line to serve Eastern Canada and
Commission reported in 1948 that intermediate
points.
gas

producing less than 10%. of her
requirements
or
approximately
20,000 barrels per day. Today we
can produce in Canada at the rate
of 345,000 barrels per day, or one
and

was

Commission

emphasized when
at the time of

that

realizes

sale outside the Pro¬

The Alberta Government set up

place during the 7% years
The import¬

taken
to

All

States.

gas

from

take gas outside

in the U. S. A.

United

Continued

applications for permits
the Province.
Several applications were made
by different companies for per¬
mits to export gas. Some wanted
to take the gas from the northern
part of the Province to serve the
West Coast, including the United
States Pacific North West; others

hearing

A Look at Canadian Natural Gas

the

Financial Chronicle... Thursday, September 30,1954

The Commercial and

(1296)

Add

tr^hslate into U. S. funds,

Asked.

w.
y///////////////////////>,/s//////s///////////////////////////////s/s////////s////////////s/y//////////////////////y

viewed by the Board of Transport

Xf.\v

Commissioners and approved; the
Government

Dominion

proved

BElair

395$f

51 St. James St. West

mission, which, after two years
of hearings, ruled against the per¬
mit, mainly on the basis that the

through branches and representatives

key

ap¬

and
application was
made to the Federal Power Com¬

Personal policyholder service

in hundreds of

also

centres

United

throughout the United States and Canada

States

not be

eign supply of gas. This,

& FORGET

for¬

as you

all
lembers Montreal Stock Exchange

disappointing, to
those who had
the application and in fact to

know,
say

should

consumers

dependent solely
was

the

made

very

least

Canadians

whole.

not-

Members Canadian Stock Exchange
Members

Canadian

Commodity ,Exchange

visitor, nor would
good taste to criticize or even

my purpose as a

it be

98 consecutive years

of paying

cash dividends

comment

the

decision

Federal Power Commission.

the

MONTREAL

The

members of the Commission have

job to do, which at best is not
easy one, and they have made
their findings and ruled as they
a

fit.

The

results, however,
far-reaching and in
any event have emphasized again
and brought into focus a question
which in my humble opinion is of
major importance to these two

saw

could be very

98 years

River

have

Established 1836

Exchange

Reserves

the

excess

Peace

Specialists in Canadian Industrial
If

established

Canada

area

lining and Oil Securities

of four tril¬

fr
If

lion cubic feet,

which have grown
very rapidly and are ct
to
grow.
In
the Nortl
States you have a natural market
which

BANK-TORONTO

Gas

Established
we

gas reserves

THE

Members
The Toronto Stock

Canadian

Here

service

•

Thomson, Kernaghan & Co.

great nations.

complete
banking

could

nomically;

served

very

because of

now

eco¬
man-

made barriers this otherwise very,
natural
transaction
cannot
take

place.
is

that

convinced

this

condition which need not and

^.
F.
W.

•

—

Partners

—

E. B. Kernaghan
K. A. W. Sutherland

C./Woolley

W|;Davison

J. F. Willis

'67 RICHMOND STREET WEST
.

TORONTO

Em. 84894 V

1
Em. 44256

should not exist.
Oil

over

255 branches from coast to coast

and

whether
United

gas

development,

Canada

the

States, is of great impor¬

tance to the economy and

Continued

security

page

KERNAGH

& CO. LIMITED
embers

ers'

Association of Canada

Volume 180

Number 5364... The Commercial and Financial Chronicle

(1297)

Canada

Continued from page 36

A Wonderful Climate

For Investment
Cash Divs.

No. Con-

% Yield

Extras for

secutive

June

Divs. Paid

Heating Products,

Canadian $ *

furnaces, air
ditioning equipment, etc.
A. J. Freiman, Ltd.__
ment

operates

store

General

well

■./r./r.•

11.8

5.7

to
1.00

bll

9.1

0.20

distributor

8 "•

3.5

25%

6.3

5.50

1.8

1.60

0.10

2.00

Wholesale

distributor

8.7

2.00

1.00

al6%

6.1

Manufactures

large variety of
metal products

Hydro-Electric Securities
Corp.

0.30

b5y4

tries

Corp.,

Ltd.

2.375

Purchases acceptances; also small
loans and general insurance busi-

43%

themselves.

security and well

that would be

way

out

Holding

entirely
other

each

supply.

erates

pulp

Canada

operating
and

and

the

International
Holding

72%

3.9

controlling

2.40

2.6

Central

two

make

0.10

al.50

6.6

those

their

position

Add 3%

to translate

way

feel

this

b Bid.
"

Continued

page

and

elsewhere

from

requirements before that date.
Pipe

Line

o^iTs^with ^compl^tion
Winnipeg

and South to Emerson
in November of the
same year
It
is also our intention
to extend
lines north and east of
Toronto

during 1955 to

serve those areas
with available U. S.
gas until Al¬
gas reaches that area.
By
this means
many areas will be
served a year in
advance and a '
much
larger market will have '
been developed.
The remainder;'
of the line as
presently contemplated will
reach
Toronto and

berta

We are fortunate in
having se¬
cured Mr. Charles S.
Coates as our

Executive
Vice
President
General Manager. He was
-

the

Tennessee

"""
.

until
.

ing with
We

have

officially

and Alberta

natural

m
m

gas

able- The line will then

and

procurement

Trans-.Canada

ume

will

the

for

T0r0nt,°
avail-

through

Western

have

been

created

with

the

well

resents
of

Transas

of"

resources

particularly

most

which

feel

able

completion

task

within

time

the

this

will

limits.

Continued

for

page

pe¬

gas
and other
natural resources, and suggest that
this Association might well give

serious

SAVARD & HART

Members: Montreal Stock
Exchange

consideration.

Now to return to my subject:

Canadian

Though the development which
has

MAJOR & COMPANY
Members

taken

ada

has

Exchange

resulted

primarily from
the search for oil, natural gas re¬
have

serves

Montreal Stock

Exchange

mendously

Canadian Stock

Exchange

years.

been

built

during

the

Conservation

the

gas reserves in

trillion
1953

tre¬

few
The Petroleum and Natural

Gas

ORDERS EXECUTED ON COMMISSION BASIS

Stock

Toronto Stock

place in Western Can¬

and

1952;

past

Board

Head Office:

230 Notre Dame St.

W., Montreal

placed

Alberta at 6.8

11.5

trillion

conservatively at 13.4
1954, and has

Branch

Offices:

trillion cubic feet in

estimated
Private

Wire to Maritime Provinces

with

the

present trend

ROYAL

BANK BUILDING

exceeded

natural

gas,

market

for

QUEBEC

TROIS-RIVIERES

—

CHICOUTIMI

—

SHERBROOKE

ST. JOHNS, P. Q.

the

wells have been

gas

capped

and the development
fields discontinued.

gas

William St., New York City, HAnover 2-6625

reserves

already for the present

Without

year.

Marquette 8671-2

1.3

trillion cubic feet per year
and this rate appears to have been

MONTREAL

Telephone

annual increase in the

Now,
however, Trans-Canada
Pipe Lines Limited has made ap¬
plication for and has been granted
all necessary permits by the Pro¬

Drinkwater Weir & Co. Limited
■

■

•

■

Investment Securities

and

gas

•

for

be taken

export. This gas
the rate of 183

Canada

Montreal

•

Harbour 6101

Montreal Stock

Exchange

der, East

—a

the
as

36-inch

Saskatachewan

far

Montreal.

bor¬

This

t.ri'
233

Montreal

Stock

Exchange

Canadian

Stock

Exchange

The Toronto Stock Exchange

• •

Notre

<>-<

Dame Street

IIArbour 6101

West; Montreal

line

from

Alberta

•

proposed 24-inch line

The Investment Dealers' Association of Canada

520

St. Francois Xavier Street

eas¬

terly to Montreal in the Province

Montreal

of Quebec. A 24-inch spur or later&T line is also contemplated from

Winnipeg south to Emerson, Man¬
itoba, to serve the Minneapolis
area
by
connecting
with
the
Northern

Natural

Gas

presently serving that

Company
area.

A number of conditions remain

be fulfilled

before the

••

Winnipeg, Manitoba, a 30-inch
line easterly from Winnipeg north
df the Great Lakes to Toronto,
with

Canadian Stock

presently involves isome
2,200 miles of natural gas pipe line

Oswald & Drinkwater

Members:

project

Members

Mc DOUG ALL & CHRISTMAS

permits give us authority to build
a pipe line from a
point in Alberta

Street West

authorities

billion cubic feet per year or 540
million cubic feet per day.
Our

The Investment Dealers Association of
233 Notre Dame

Dominion

to take 4 trillion 350 million cubic

may

Members of

vincial

feet

•

31st

en¬

present detailed studies of domes-

important,

applies

ex¬

gigantic

who

natural

the

unrivalled combination

pipe line and construction

perience

the

group rep-

are

strayed

the

construction.

.
±

revert to

Aug. 1.

contracted

Bechtel, Mannix, Hester group to
carry out engineering,
designing

our^ main^ pipe line parent companies this
.

Transmis-

rose to become its
Senior Vice-President before com-

Backed

Gas

sion system and

and operated, by the Niagara, Canada project,
? e X * s *,° n

„

and

origi¬
nally with the Chicago Corpora¬
tion when
they conceived the idea

®£°r 5J?
Gas Company of To-

ronto

possibly Montreal by Nov.
1,1956,
making it possible to serve the
whole area by that time.

Construction

Trans-Canada
Pipe
Lines
is
building
a
20-inch
line
from
Niagara to Toronto, being approxinnately 76 miles in length, connecting with the Tennessee Gas
Transmission Company at Niagara
Falls> N- Y-> to supply natural gas

Consumers'

for

date*)

subject, but I

matter

troleum,

Asked,

that there

sure

that I have

say

long
to

here

would

translate intjo U. S. funds.
SAdjusted for Canadian-U. S. rate of exchange.
into U. S. funds..
'
a

very

capable testimony of outstanding
and pipe
line experts

New

calls

"»

Well, I

Nicaragua gold producer
V/Y

coun-

secure.

La Luz Mines Ltd

Add

the

scheduling

South

America

source

suggesting

result of their close relation-

and

public

-J-V

and

ship and future welfare every- a"d will have served the importthing possible should be done to ard PurP°fee of developing Ontario
strengthen the ties between them markets so that a substantial vol-

Power Co., Ltd.

co.,

utilities

§f2.84

co.—Op¬
mills in

paper

"Lfi
as

The magnificent co¬
have received from

agencies

financial

coun-

safe

for

not

in any way that these

5.5

Paper Co.

and

natural

whereby both
feel

would

ness

International

these

other words, if it is
most economical for

relying
Acceptance

the

worked

5.7

investment

trust

Industrial

all

to Toronto a.nd surrounding areas,
and
some of
This pipe line, to be completed
our processed natural resources
to
in operation by the first of
flow from North to South or from November of this year, is being
South to North, surely by some constructed by our wholly owned
arrangement
between
the
two subsidiary,
Western Pipe Lines,
governments
a
treaty
can
be When completed it will be leased

lime products; industrial

type

and strife among

5.0

gypsum

chemicals; etc.
Hahn Brass Ltd

Management

most economical and beneficial to
the continent as a whole.

operation

as to how two great
both in the United States and in
get along in complete Canada leaves me free to assure
harmony side by side, while the you that we have every confidence
J:
rest of the world is
being torn by in our ability to satisfy the various

resources

materials;

a23

general

riding goods

Gypsum, Lime & Alabastine,
Canada, Ltd
Building

rangements.

being of these countries, by mak¬
ing it possible to use our natural

lignite

vincial governmental agencies as
to the adequacy of financing ar-

can

interest

coal

Great West Saddlery Co., Ltd.
store mechandise, and

products.

two

Realizing that this is not only pos¬
sible but a reality, surely we can
go one more step forward in the

year and in the
they relate to the satisfying

the world

war

un-

a5.75

■

Paper Co., Ltd.

Present

commencement of construction

of the various Dominion and Pro-

whereby

free exchange of

petroleum and

nations

Can¬

two countries

great countries, the
Canada, with a 3,000mile boundary line binding them
together, have been, an example

newsprint

and

These

0.40

sulphite paper

main

program be worked out be-

could have

gas

Great West Coal Co., Ltd. "B"
Wholesale

some

U. S. A. and

drilling contractors

bleached

4.25

v"r

vember, 1956.

Continent as a whole, and December of this

it would-seem most desirable that

—

Ottawa

Manufactures

the

tween the

largest depart-

Petroleums

Great Lakes

1954

con-

ada Ltd. "Ord." & Class "A"
Oil

0.50

Stoves, ranges,

Paymts. to
June 30,

;

Ltd

Owns

1954

5
;->

June 30,

zinc, silver and

copper,

pyrite

Enamel

Based

tion

30,

1954
—

Produces

Quota-

12 Mos. to

Years Cash

East Sullivan Mines, Ltd

main line when it
goes into
operation around the first of No¬

Approx.

Including

the

A Look at Canadian Natural Gas

-j

Branch: 14 Metcalfe Street, OTTAWA, Ont.

•t(

The Commercial and Financial Chronicle... Thursday, September 30, 1954

(1298)

Continued from page

McCUAlC EROS. & CO.

Continued

jrom

Canada

The Canadian

page

A Wonderful Climate

For Investment

Natural Gas

Appro*.

Cash Divs.

Quota-

% Yield
Based on

tion

Paymts. to

Including

Outline Studies available on over
100

leading Canadian Listed

Companies

Enquiries invited

Calgary Stock Exchange

Canadian Slock Exchange

1420 PEEL ST.
Street Entrance
MArquette 9311

ES ST.

Ground Floor
PLateau 8971

MONTREAL

are

Ltd.

Lewis

^VMMMMWWUWUHWHUUMMVW

the overall

I
5

program

noticeable.

WILLS, BICKLE & COMPANY
Members:
THE

TORONTO

THE INVESTMENT

EXCHANGE

STOCK

DEALERS' ASSOCIATION OF

CANADA

Petroleum

Alberta

for
«►

•f,

Natural

and

Owns

be carefully de¬
Since oil and gas, with

export will

veloped.

44
i

King St. West

Toronto 1

EMpire 8-4561

<»

time with

potential market for
gas used to "lift" his oil, or
gas inadvertently discovered in¬
stead of the oil initially sought.
Now faced with an opportunity to

twWWHUUUHUUUWUUUVMHMUWWHiWUW

a83/4

5.7

0.60

7.7

1.00

a95

1.1

1.04

a21

5.0

0.075

Ltd
imple¬

farm

machinery

and

Newsprint
,

6.3

milling;

Mersey Paper Co., Ltd
related

products

Midland & Pacific Grain

Corp., Ltd.
Deals

and operates line

grain

elevators

Western

Milton Brick

Canada

1.00

15.12

6.6

§1.94

36%

5.4

1.00

6.3

1.00

al5

6.7

quality

3.3

Co., Ltd

first

2.25

Makes

0.80

al6

5.0

brick

face

Mining Corp. of Canada, Ltd.
Holding, exploration & financing
company

Minnesota and Ontario Paper
Co.
Newsprint,
other

specialty

timber

Mitchell

and

papers

products

(Robert) Co., Ltd.__
nickel

Brass,

bronze,

metal

other

products

Makes

and

Ltd..

Containers

Modern

tube

Montreal

Already the estimated reserves of
natural gas to be discovered for

for

tooth

and

other

containers

paste, shaving cream
semi-liquid products

ration and development program.

Ltd.

1954 have been

0.50

4.5

2.20

a20

etc.

Co.,

line

and

flour

bakeries,

Complete

liquidate what formerly might be
considered a frozen asset, he is
encouraged to broaden his explo¬

1.25

name

same

handling;

ments

first

the

for

0.10

producer

Massey-Harris

the

*»
«

himself

finds

now

►

4.8

operates Toronto sports

operation

rare

«►

1.65

gold

Grain

exceptions, are found in the
same formation, the oil producer

0.08

Ltd.

arena

permit

Board

Conservation

Gas

INVESTMENTS

5.7

gold producer

Ontario

Fields set out in the

export.

gas

alO1/^

Mines, Ltd

Mines

in acceler¬
ated drilling, exploration and de¬
velopment in all fields of the oil
and gas industry. Gas areas are
now
being intensively explored
and developed in anticipation of

0.60

trade

Maple Leaf Gardens, Ltd

for the gas will result

™

3.3

Canada

Ontario

market

available

al9y2

hardware

0.65

MacLeod-Cockshutt Gold

clearly

the oil and gas industry is

—

con-

Maple Leaf Milling Co., Ltd.

our

Canadian $ *

sale

Ltd

Bros.,

Macassa

project.

effect

The

1954

installment

Wholesale
Eastern

the line, makes us
optimistic concerning

most

June 30, June 30,

"B"

Purchases

photographic surveys have
been completed of the entire pro¬
posed route. Rightf of - way and
survey work has commenced and
everything that can be done to
speed the construction of the main
line is being done.
The keen in¬
terest, both by the general public,
utilities and industry in t^e area
feel

30,

1954

Laurentide Acceptance Corp.

applicable
rate
nearing completion.

and

to be served by
UUWMMMWMV)

June

—

industrial

and

Aerial

Exchange

12 Mos. to

secutive

Years Cash

commercial

schedules

Mont real Stock

Extras for

Divs. Paid

markets

•

276 ST. JAM

Situation
tic,

Member*

No. Con-

Locomotive Works,

and

locomotives

Diesel-electric

exceeded and the

production

tempo is increasing.
*

Cochran, Murray

£ Co.

Limited

The effect of this project
makes

which

§ Adjusted

market available for the

translate

will be tremendous insofar as
development
is
con¬

gas

Add

translate

into

Canadian

for
into

—

funds.

rate

exchange.

Add

funds,

Asked.

industrial

cerned. Plants in addition to those

Government, Municipal

referred

and Corporation Securities

previously

will

built in Alberta and industrial de¬

velopment all along the line will
be stimulated in the other Prov¬

Cochran, Murray

£ Hay

Telephone EM. 3-9161

Kitchener

London

with

served

comforts and conveniences

It is well to

Hamilton

DEALERS IN INVESTMENT SECURITIES

otherwise available.

not

Toronto Stock Exchange

Dominion Bank Bldg., Toronto,

will

natural gas, a fuel which provides
many

Members of the
,

Canada

out

Burgess & Co.

Charles H.

Millions of homes through¬

inces.

this

progress

referred

blessings which

accompanying
enjoy are not

due alone to the great abundance
and

variety of natural

with

this

which

were

land,

goodly

1909

to which I have

the

and

SINCE

remember that all

but

Toronto Stock Exchange

Members

resources

blessed

Investment

Dealers' Assn. of Canada

very

255

Bay St., Toronto

EMpire 4-8471

great extent to the willingness of
forefathers

our

and

conform

work

their

Branch—Brantford, Ontario

toil

and

actions

divine law. Our earliest American
fathers

and

here with

came

objective

freedom

—

common

of worship

liberty of conscience. It

was

all done under free and competi¬
tive enterprise, with little or no

Walwyn, Fisher & Co.

controls, and in the belief that
that government is best which

SPECIALIZING

least.

governs

It is true that the

rapid and

ex¬

tensive oil and gas developments

naturally led to the establishment

Members:

of regulatory boards in the inter¬

Toronto Stock

Exchange

The Investment Dealers' Association

ests

of Canada

and

good production practices

conservation.

experience
vinces

Howerer,

government

my
con¬

CANADIAN MINING SECURITIES

that if and when these

original aims
necessary

STOCK ORDERS
ON

EXECUTED

ALL EXCHANGES

are replaced by un¬
regulations or "regula¬

tions for the sake of regulations"
are

stifling the basic concept

free

trade

j&ivate enter¬

and

prise.
It

44 KING STREET WEST,

TORONTO, CANADA

Telephone: EMpire 4-1131

f
is

progress

important
in

deavor that
vidual and

every
we

future

our

field

uphold

our

let

ourselves

gradually drift

Continued

170

BAY

STREET

page

•

TORONTO

Members: Toronto Stock

Exchange

Canadian Stock

indi¬

competitive enterprise

system at all costs and that
not

en¬

Cradock Securities Limited

MONTREAL:

400

Private

TELEPHONE EM. 3-4236

•

Montreal Stock Exchange

Exchange

ST. JAMES ST. W., -

PLATEAU 2795

•••••..'
•
^Tire:—New York & Montreal
■

•

Volume 180

Number 5364

Canada

The Commercial end Financial Chronicle

...

Continued

A Wonderful Climate

for Investment
Extras for
12 Mos. to

secutive

June

Divs. Paid

INVESTMENT IN CANADA

Approx.
% Yield

30,

1954
—

Quota-

Based

1954

Canadian $ *

We shall be

Natural Gas

tion
Paymts. to
June 30, June 30,

ment

oil

Situation

1954

—•

glad to send

stocks;

also

companies

Operates

general

warehouse

cold

General

1.00

b40

2.5

0.60

bl7

3.5

into

"B"

dealings

1.20

253/4

Normetal Mining Corp., Ltd.

0.26

3.05

8.5

Wide

variety

Wholesale

0.65

milk

and

dry

retail

goods

§t0.85

11%

7.2

0.20

b3.65

5.5

0.80

11%

7.0

variety

1.25

a35

3.6

Silknit

1.00

al9

5.3

pap

Ltd

Lingerie,

swim

suits

Silver Standard Mines Ltd.__
Zinc,

gold,
production

silver

and

Stadacona Mines
Quebec

gold

Standard

a0.80

7
7

Ltd.

0.02

0.26

1.375

233/4

0.19

3.45

5.5

0.70

10y4

f 1.24

32 V2

Operates

chain

Telephone

our

plate

DesRosiers &

*our

members

effort

every

canadian

427

God-fearing nation.

1.05

Co.,

Inc., has been

Corp.,

installment

Co.

sales

2.20

5.9

Steel

1.40

393/s

gas

1/ *' j
1.00

al23/8

8.1

17.25

0.30

—6

—

Holding, investment, promotion,
exploration and development co.

Thomas

8
and

Wholesale

•Add

t Adjusted
a

3.00

sixth
of

Members

term

one-year

the

Louisville

Sink¬

■

1.00

a89

The

St.,

Toronto

West

Stock

•

1.1

21 West 44th

Phila. Sees. Ass'n

stock

dividends,

splits,

■■■■■;■■

Canada

★

New York Branch Ojfice

to translate

funds,

Asked.

Exchange

Toronto

Street

New York

Telephone MUrray Hill 24345

Lister

Telephone EMpire 3-4271

Canadian-U. S. rate of exchange. Add

into

for

Richmond

ing Fund Commission.

3%. to translate into U, S. funds.

translate

Steen

NEWLING & CO.

Graham

Canada

8 Adjusted for

Mining and

business

grocery

■

confectionery

Grocers Ltd

Western

his

President

Ltd.

Biscuits

j|jS

1.7

steel
i

Western

Ventures Ltd.

John

Charles

Hicks

3.6

transmission
national

welded

and

Oil Securities

Corp., Ltd

plate

products

Viau

Canada,
6

storage,

distribution

Steel

John

Canadian

ob¬

—

Production,

United

Rowland Glandfield

McVittie

4.4

Gas

5853

Specialists in

ligations

Ltd.

PLateau

Ltd.
8

Purchases

WEST

elected

Finance

exchange

STREET

special

"B"

and

JAMES

Tel.

•

Union

ST.

Again Heads

metals

Traders

stock

liberty and freedom and to the

Kenneth

products

6-2463

SECURITIES

Robert S. Newling

Steel

UNiversity

INVESTMENT

always
part to pre¬

grocery

23%

Canada

prepared to fight and die for.

Bond

Works, Ltd

forward

stores

Toronto Iron

Association

WEST, MONTREAL

before us; they
great heritage and

3.8

appliances

Ltd

Dealers'

STREET

LOUISVILLE, Ky. — Thomas
Graham, President of The Bankers

6.8

household

and

JAMES

ST.

Louisville S. F. Comm.

Carson

Ltd.

Stores

of The Investment

went

Graham

Mines,

____

tive

607

5.8

Holding co.—interests in automo¬

Thrift

capital

1922

MONTREAL

Quebec gold producer

(Canada)

Members

heritage which
by those old pio¬

our

day and dedicate

7.7

contractor

Taylor, Pearson and

building of

Ltd.
paving

every

dangerous trends in the world to¬

Paving & Materials

General

where

May we all have the vision and
the courage necessary to stem the

11.2

producer

Sullivan Consolidated

Ltd.

0.09

cadmium

(1944)

Investment Securities

our

were

other

and

products

rayon

Established

what

liberty and freedom and
to uphold our Christian way of
life by living what our fathers
serve

products

writing

and

not

determined to do

and

one

Rolland Paper Co., Ltd
bond

promise

KIPPEN & COMPANY Inc.

living

are

opportunities, and it is also the
responsibility of each and every

merchan¬

store lines

High-grade

good

they have thrown to us the torch.
We, as individuals, have a great
responsibility to help our youth
to appreciate
and not take for
granted these; great blessings and

products

and

lives

and

have left

4.6

Robinson, Little & Co., Ltd..
dising of

0.03

etc.

Quinte Milk Prod., Ltd. "B"

who

neers

producer

Bushings, bolts, bars,

their

left

was

Pressed Metals of Amer., Inc.

before,

to do it. This is

producer

gold

hold

youth is told what to do and when

zinc

Pamour Porcupine Mines Ltd.
Ontario

said

they'll

4.7

Operating public utility

and

free country where men can

choose

Co., Ltd.

copper

state of government control

Newfoundland Light & Pow.

Quebec

of investment securities.

selected list of seasoned invest¬

appreciation.

and finally government ownership.

Montreal

grain

ENQUIRIES INVITED

storage

McCabe Grain Co., Ltd.

you

list of Canadian industrial, mining and

whose

Montreal

Refrigerating &
Storage Ltd

PHILADELPHIA,

etc.

Board

Pa.

Directors

The

—

the

36, N. Y.

Paul Sarnoff, Mgr.

Phila¬

delphia Securities Association has

b Lid.

elected

James

Gies

of the Association to

balance

the

President

serve

term

out the

Raymond
E. Groff who is retiring from the
securities

Morgan & Co,
Members

WIRE

Mr.

Gies,

&
1

Co.

with

ill

formerly

was

BUILDING, 507 Place d'Armes, MONTREAL

the

J. BRADLEY STREIT

associated

was

Brothers,

& Co. He will continue

TORONTO

Harriman
as

Association's

♦

mem¬

Board

'
"

Directors.

Telephone PLateau 3971

At the

Member:
same

elected

was

the

meeting, Mr. Groff
Honorary Member

Association,

effective

Dec.

1, 1954, the date of his retirement
from

Morgan, Kempf & Co. Ltd,
Members: The Investment Dealers' Association of Canada

who

Groff

Mr.

Brown

ber of
ALDRED

because

Vice-President of the Association,
is connected with Smith, Barney

Canadian Stock Exchange

business

health.

Montreal Stock Exchange

PRIVATE

business.

The Toronto

Canadian

Stock

Exchange

Stock Exchange

Calgary Stock Exchange
Winnipeg Grain Exchange

Form Selected Sees,
I
SALT

LAKE

Utah—Se¬

CITY,

Underwriters and distributors of
lected

Government, Municipal, School, Religious Institution
and

Aldred

Corporation issues

Building, 507 Place d'AYmes, Montreal

Telephone PLateau 8623

page

Canada has much to offer in the field

Including
No. Con-

from

The Canadian

Cash Divs.

Years Cash

(1299)

Securities,

formed

with

Ltd.

has

been

the

Atlas

offices

Building to engage in
business.

Bennett,

Partners

George

are

securities
Dail

66 MNG

STREET, WEST

Negronto

Bridwell,

Grant M. Christensen, Richard Ii.

Schubach and Robert M. Schubach.

rhone: EMpire 3-7477

■

Chronicle

The Commercial and Financial
40

...

Thursday, September 30, 1954

(1300)
When

give life insur¬

supply of stock available in the market, helped
shares their remarkable record pricewise.
The

Bank and Insurance Stocks
By ROBERT

This Week

—

many

nually

"prudent man"
investors have
been substantial buyers of blue-chip common stocks,
of which
equities representative of the insurance industry have been most
savings banks, trustees acting under the
rule, all of these and other types of institutional

Insurance Stocks

popular.

basis

has many disciples among investors.
insurance shares have received much fewer front-page

While

Continued

from

The Outlook for Uranium Mining
production

of nulcear fuel for

use

fense

business done.

Aetna

American Auto-

American Ins.__
Fire Assoc

Amer. Re-Ins.__

Great American

Nat'l Union

Springfield

Paul

M. 41

Average

the "multiple

insurance companies and

gain in price for

of its

specialized character is the Con¬

of its 1953 business in accident and health
been among the most profitable and fastest

it g strong toehold in the life insurance industry
capital gains have been relatiyely fantastic.
are

gains

percentage

where recent

major life insurance companies and

realized

marketwise

their

the*

during

stocks

the last year.

PERCENT INCREASE IN MARKET PRICE

SEPTEMBER

27,

1954 OVER SEPTEMBER

Conn. General

Lincoln

35%

Life Ins. Co. of Va._

110

Life

14, 1953

Life & Cas. of Tenn.

93%

Aetna Life

Colonial

National

Columbian National

Monumental Life

Continental Assur

Nat'l Life & Acc.^--

Franklin

Life,

I do know that the

sion

Kansas

Southland

141

Life__

118

City Life___

push
of

life insurance
tinued

given

the

Congress in
been completed.

requirements

feed

plants continue to rise.

Our domestic uranium ore buy¬

has

program

extended

then

earlier

had

dates—first

termination

1958, and now

1951,

then

1954,

least

the

this

considering

program

standpoint of

market

kilowatts of
outside Iron
Curtain countries, has about the
same
capacity.
The res' of the
world may have 50 million kilo¬
watts, of which 12 million are in
Canada.
The total capacity being
million

100

mately

can

Europe,

considered is, therefore, about 250
million kilowatts.
>
-

the

According to

power

extensions of the guaranteed mar¬

ket under the defense program.

let

take

look

the

commercial market,

The

use

nuclear

matter

to
involves

energy

electricity

merely

transferring

reactor heat to a steam boiler and

using the steam in
with

nected

turbine

question about building large

units on the basis of pres¬
technology. Just this month
construction was started on an

power

ent

AEC

sponsored

60,000

ex¬

perimental plant which will use
a
reactor developed by Westinghouse. Duquesne Light Company
of
Pittsburgh,
Pennsylvania,
is
participating financially and will
feed the electricity generated into
its distribution system. The prob¬
lem
of
industrial application
is
one of economics
of producing
power at a cost comparable with
that

plants

the

last

Growth

has been at an even higher

rate.

For the last four years new

over

generating capacity in the United
States has averaged tbout 8 milr
lion kilowatts per year.

According to

these

figures,

1970 the annual increase through¬

the'

out

World

Free

may

to 30 million kilowatts. Beginning

clear

perhaps earlier, nu¬
equipment is expected to be

used

for

1965,; or

some

the

mercial power plants.

new

generated from conventional

us¬

short

are

Coal

ton,

conven¬

costs

much

A million kilowatts of electrical

capacity

about 2,500,000
This is the

consumes

coal

may

tons

be done with 50 tons

uranium

year.

and, eventually, with

much less.

Furthermore,

have

been

considering only central generat¬
plants

ing

the

and

of
Nuclear

pattern

past power development.

power will soon operate a sub¬
marine. It may eventually be used
on

ships,

many

mercial.

uses

sealed-in
need

power

nuclear

and
the

com¬
realm

for the

the past,
has

ment

life of

Importance

plant, with
that will

fuel,

refueling

ship.

naval
within

possibility to build for. certain

special

Cheap

Power

industrial develop¬
influenced

been

availability of cheap power. Cheap
has been available only in

power

tributary to low cost

areas

fuel^or

hydroelectric projects.
nuclear
power
plants

near

cheap
cheap

produce
produce

fuel

Nuclear

can

they can
anywhere

power,
power

water is available

for condensers.
be

can

transported

air to any part of the world
and the transportation costs would
by

have
cost

measurable effect

the

power.

the

can

only

upon the revolutionary
which may accompany
the development of this ww in¬

speculate

changes
dustry.
It

com¬

In examin¬

of the United

States.

growth will continue is a ques¬

tion.

con¬

generator. This has
demonstrated and there is

been

This also aopbes to Eu¬
probably to the rest of
How long such a rate

years

Electricity

produce

and

the world.
of

Nuclear Energy for Producing

expected to double about every
years.

pos¬

compared, with
an average of $6.50 per ton to the"
power
industry
in
the
United'

try

rope

the

European industrial

fuels.

$15

indus¬

and other authorities, power
consumption in the United States

Now

countries

tional

given, there well may be further

prospect for

assumptions
for

areas

Most

job that

begin

to 1962. While no

commitment

definite

electricity.

ing schedule is guaranteed through
March
31,
1962. This does not
necessarily indicate an end date.
This

100 years.

has

major

the

been

history

developments

all
early

that

ing the outlook for nuclear power,

forecasts
of growth and impor¬
study made for the Commission tance have been too conservative.
assumes
that nuclear power ca-. This may be true for nuclear
pacitv in the United States may power. I have indicated that the
be 12 nqillion kilowatts bv 1970, industrial
market
for
uranium
a

million

lion by

1990.

1980, and 100 mil¬
If these, figures are

metal
a

reasonable

for

the United States,

might be about 14,000 tons

year

cast

by 1980.

this

they should be doubled or tripled
to arrive at world capacity.

Once
near

may

As a market fore¬
be too pessimistic.

costs can be brought
kilowatt-hour,

power

five mills per

the industry should grow

rapidly.

fuels.

Travelers

of a uranium requirement?
The The experimental reactors to be
by the Commission, and
completed withjn the next four
by large industrial firms working inventory requirement for 1,000,000 kilowatts of electrical capa¬ or five years under the Atomic
on
the
problem,
indicate
that
Energy
Commission's industrial
within
10 years nuclear power city is estimated at 600 tons of
to
uranium. This uranium would fill power program are expected
will be competitive,
at least in
provide some of the answers.
high cost power areas. Informa¬ the reactors and provide the ma¬
Assuming
that- the
nuclear
tion and experience in construct¬ terial in chemical processing and
power industry wili require 14,000
ing and operating the first plants fuel fabrication plants, and in the
tons of uranium metal a year bv
soon should lead to improved de¬
"pipelines" between them.
1975 or 1980, what is the outlook
If we assume that the uranium
sign and technology and lower
for meeting this requirement, and
capital and production costs.
will have to be discarded when
at what price? Fourteen thousand
Plants built after 1965 may pro¬ only 2% has fissioned, or burned
tons of uranium metal is roughly
duce power at costs in the range up, to operate the 1,000,000 kilo¬
equivalent
to
17,000
tons
of
of five to seven mills per kilowatt watts of electrical capacity would
uranium oxide, U3Os.
hour—at least that is the target of require about 50 tons of uranium
On
the
basis of our present
the
companies engaged on de¬ annually as replacement. With a
velopment work. If this goal is 3% burn-up, the annual replace¬ knowledge of Free World uranium

Ins

seem

life

investors

industry

to have played a part in the spectacular

insurance

recently.

The

sudden

generally that equities representing the
have

special

policy

growth

increasing

stocks

longevity

tax

advantages,

sales,

the

man—each

the

great

con¬

publicity

these

and,

perhaps the most important reason of all, the extremely limited

What would this

in terms

mean

Studies

83%

substantial

Uranium
these

This is a def¬
in Europe and

possibility
in some

States.

for

huge expan¬

not yet

these

year

;

'•

Southwestern Life__

Average

realization

Several factors

skyward

authorized
has

tons

allowance

—

Std

annual uranium

Jefferson

St.

coverages

below

for

sufficient

nu¬

far greater than for the large majority
and also reflects the continued interest of

which has

Noted

reserves

uranium, it might be well to
with the power industry.
Installed
generating capacity in
the United States is now aporoxi-

written by the insurance industry. Further¬
more its 39% interest in the Continental Assurance Company and
65% ownership of the U. S. Life Insurance Company has givfen
growing

fuel

strength."

was

did 57M>%

Casualty

clear

should

reached, I do not know.

"full

reaches

•

even

program

Fire

Casualty Company of Chicago whose stock has enjoyed
116% increase in price since Sept. 14 of last year! Continental

insurance

there

such

Ins. Co. of N. A.__

Hartford

tinental
a

For

reactors.

because

above

plants. Otherwise, there would be
no point in spending tens of mil¬
lions for development and
con¬
struction of experimental power

Accident..

in fire insurance proper, the 31%

securities

table

from

sophisticated investors in long term capital appreciation.
One major stock casualty company which was omitted from
the

of billions of dollars

What that is and when it will be

Average

companies

listed

eventually
vestment

casualty companies since automobile
liability and property damage insurance once again became profit¬
able about a year-and-a-half ago, there has been widespread
buying in these equities. The "multiple line" companies not only
have enjoyed the sizable betterment in casualty results but are
still being bought by institutional investors for the very long term.
Although declining premium rates and increased competition
may have some detrimental short term effect on the earnings
potential of those companies writing the largest proportion of
fire

under development
will require the in¬

now

program

Falls

Glens

earnings reported by the

the

power

States

companies (those doing both fire and casualty business)
have actually outmoved
(on average) the 41% increase in the
Dow-Jones Industrials.
Because of the substantial improvement

their business

atomic

range

tailed

line"

cut back until the United

long

casualty

the

The

Both

such

are,

1952

Average

against

catastrophe is strength. As long as
world conditions remain as they

make

inite

Range Atomic Power Program

Fund-.

Fireman's

millionf

ing high-cost coal.

Long-

F'men's Ins.(N.J.)

Std.

25
32sf

____

U. S. Fire_

At present the

war.

insurance

never

Required

U. S. Fid. & Gty.

Phoenix Fire___

being)

is
15

sibility that nuclear plants might

at what cost.

and

uranium

14,000

However,

adequate supply

about

1980.

Maryland Cas.- 55
Mass. Bonding- 39
New Amsterdam 20

Nat'l Fire

Fidelity-Phenix

should

there

that

Investment

in military plan¬

ning is recognized and accepted
by everyone. The awful destruc¬
tive power of these weapons is

Employers' Group 48
Federal Ins

Surety-- 30
General Reins.- 52

de¬

it is safe to assume that the
development and production of
atomic weapons will not be cur¬

Amer.

Home Ins

rate

replace existing steam

the

program^The importance of

atomic weapons

best
%

Continental Ins.__

Cas.

14, 1953

there will
of

consider

another world

"Multiple Line" In«.

Casualty Insurance

Aetna Ins.

1954 OVER SEPTEMBER

27,

SEPTEMBER
Fire Insurance

IN MARKET PRICE

let

First,

such

PERCENT INCREASE

capacity

the

mercial market for uranium metal;

companies listed below are among the largest in the industry,
and actually have outstanding somewhat more than 45,000,000
shares of stock, or 75% of the approximately 60,000,000 shares

investment. The equities have
based on the primary type of

new

for reactor, inven¬
tory will be 9,000 tons. These as- *
sumptions indicate a world com-.v

of industrial power.

currently available for public
been arranged in three groups

kilowatts peryear,

page

notices, it is interesting to note how a very representative group
of fire and casualty stocks have fared during the last year. The
30

an¬

time,

"Industrials"

"blue chip" average

added

off

tons

required

replacement on the «
burn-up., By that*

for

•

requirements

quarters that the 30 Dow-Jones

represent a very small percentage of the hundreds
of industrial stocks listed on the New York Stock Exchange, this

reaches

kilowatts,

5,000

about

will

uranium

trusts,

CHANT

1980,

near

shares seems also to reflect their growing reputation as
conservative media
of investment.
Pension funds, investment

100:point move (ap¬
proximately) made by the Dow-Jones Industrial Average since
reaching it's "low" of 255.49 just about a year ago (Sept. 14, 1953).
While it has been noted

insurance

practically all

capacity

million

100

which for the Free World may be

company

publicity has beeh given to the

Much

appreciation

capital

sharp

nuclear

total

ance

achieved,

nuclear

energy

will

ment would be 33 tons:

with 10%

resources,

production

rate

10 tons of uranium 17,000 tons, or even more, should
production
of
electricity
and would be required; and if the be available at a price of not
This
uranium will be the fuel for many burn-up
could be
increased to more than $10 a pound.
future generating plants.
20%
the
annual' requirement would be the price in terms of
The mining industry is inter¬ would be only five tons. The 2% today's dollar for uraniun oxide
in a high grade concentrate. Mtich
ested
in
knowing
how
much figure may be too pessimistic but
uranium will be required by the the high fuel efficiencies may be of this production might be sold
The material profitably at less than S10. Un¬
power industry and when the de¬ many years away.
become

mand

tant..

important factor in the

The

with
are

likely to become impor¬
industries f concerned

nuclear

power

development

interested in knowing whether

burn-up only

required for inventory, however,
is not likely to be reduced but
may

upon

increased,

depending

the type of reactor.

der

the

tracts
are

defense

for

program,

uranium

negotiated

con¬

concentrates

the

basis

production costs, including amor-

/
<)•>

Volume

180

Number 5364...

The Commercial and

Financial Chronicle

(1301)

tization,

plus

reasonable profit.

?uCes of
*ype now supplyf adefen,se Program might

support
600

production rate of

tons

Inis

17,-

for many years.

assumes

that

quirement

for

these

operations
will not be important. If uranium
production is to be maintained at

deposits
replace those

Reserves for Future

Arctic

bases.

Stockpiling of anyFor
the
more
distant
future surplus uranium production cer¬
there are vast
uranium reserves tainly
should be considered in
in low
grade phosphate and shale view of its
military and industrial
deposits. By-product uranium
pro¬ importance.
duction from the
The immediate need is to carry
phosphate in¬
dustry, which already has com¬ out the defense
program. This re¬
menced, will grow in importance. quires the support and coopera¬
However, if low grade phosphate tion
of
the
mining
industry.
shale

deposits are worked Uranium
production
under
the
primarily for uranium, the cost defense program can be a profit¬
of the uranium
may be from $30 able business. The growth of the
t°* $50 per
pound. By the time this mining
and milling operations,
material is needed
burn-up effi¬ and the private capital that is
ciency and "breeding" may have
being invested in these opera¬
the

improved

clear

fuel

utilization
that

uranium, or
doing
the

work

sufficient

nuclear

The

first

fuel

tons.

im¬

having

for

the

from

ample

are

proof

that

fuel

expected
between
1960
and
1965. However, the uranium re¬

the

government
of the most
has been

yet

undertaken

for

defense

will have the opportunity to fur¬
nish the fuel for a
new
power

the future

doubt about

industry
still

importance of this
only its

—

new

timetable

wjhich has been

pressure

because

the higher

Lehman Brothers, 1 Wall Street,
New

distant Treasuries

up quotations
there has been no

investors.

firm in

Panke

in order to get bonds,

been in the

backing away when

investment
«

market

pretty much to those that have long-term issues to offer,

such

the corporate

Brothers

and tax free group.

Credit Ease

Treasury, through the sale of
1%% note, has again kept pretty much
been in effect in the money market. By
appeals mainly to the deposit banks and

vertising
when

securities

would

accurate

has

ad¬

times

many

been

attempted,

that

concur

there

I
a

magic pulling power in "local se¬
curities," providing that the com¬
in question has

pany

tation

and

There is

"home

merchandise,

and

folks."

home

with

which people have become famil¬
iar. You can break down consid¬

erable sales resistance

by adver¬
tising a well kribwmand highly
regarded local product, whether it

me^enandise

weir

If you operate in a
and

your

pany

has

make

makes

power

groWing

and

light

advertise

the

area
com¬

fine

to meet

can

have

this

though the business picture appears to be holding its
present time, there is no evidence yet that the mone¬
tary authorities are going to make any important changes in pol¬
icy, because therq is no desire to do anything in the money mar¬
kets that might have an unfavorable influence upon the trend of
economic conditions.

there will

new deposits, which are purchasing
bit of a lift will be given to the econ¬
omy. Even though the Treasury is very much in favor of extend¬
ing the maturity of the Federal debt, there has been only one
issue with a due date of more than eight y^ars since the Admin¬
istration took office. This was the 30i-year 3V4% of 1978/83, which

put on the market on May

does)

shares of

that

people,

advisable

carries

the

send

the

Such ads if continued

properly written, with

and

offer of

information

through
a
coupon,
should produce qualified leads.
.

there

are

any

other

local

name

of the

message

the

(on

wish

you

side

same

to
the

dress)

and

the

right hand

top
a

space

the address

should

address

the

your
sure.

can

the

return

you

send

it,

recipient when

to you.

This may
complicated
but

rather

printer will understand I
Such

ductive of

mailing

copy

that

to doctors,

local

will

tend

quarters that the offering of corporate

some

taper

investors would have funds that could be

put to work in such an

obligation.

lessen

demand

the

and

want

buy some of the stock
offqged ot have a representative
contact them. I believe in ads that
have

"hook"

them.

You can't

money

think it will, there would be an

some

-outstanding long-term Treasury bonds. This would push up
of

the

too far in either

out

prices

the

outstanding marketable government bonds, and since

monetary authorities evidently do not want

quotations to move

direction, it would be an opportune time to

long-term government bond

the general prac¬

Chicago,

Illinois,

Mr.

Newcomb

was

general attorney for The Chesa¬
peake and Ohio Railway Com¬
pany
before coming to IDS in
1951.

Form

Security Uranium
Utah—Security

PROVO,
nium

Service,

formed with

Inc.

has

offices at

Avenue.

Ura¬
been

290 North

Officers

are

Thomas W. Taylor, Vice-President,
Leon

bring

Frazier,

Secretary,

and

Thomas J. Norton, Treasurer.
r

Forms T. J. O'Connor Assoc.
WASHINGTON,

C. —T.

Associates

O'Connor

formed with

offices at

has

been

1526 Con¬

necticut Avenue, N. W. to conduct
investment business.

an
are

Partners

Thomas J. O'Connor and Ward

D. Jarrett.

for market control purposes.

Telephone Financing Aided
The offering of a

31-month note by the Treasury had a bene¬

ficial effect upon the

corporate bond market, especially as far as

the

This

was

With Dean
to Twp

the

Witter

"Financial

Chronicle)

largest

market has had
an

for long-term

large offering

been

Even

the

offering
Here

If the Treasury had come into

of telephone bonds

and

would probably not have

favorable to the company.

MUNICIPAL
SECURITIES

not been in short supply,
the small side, the sizable

though the tax-free issues have
future

offerings are not on

Kansas Turnpike

reportedly well taken.
the money market has been

bond was

financing of the Treasury.

by the shprt-term new money

W. H. Doxey

La Salle St. Women
To Hear at Dinner
CHICAGO, 111.—La Salle Street
Women will hold a dinner meet¬

SAN

stylist for the Sherwin-Williams
to the staff of Dean Witter & Co., Company; will address the club.
Her topic will be "Color for Liv¬
45 Montgomery
Strqet, members ing."
of the Newi York and San Fran¬
Mrs.
Aleta
R.
Kitchen, Vicecisco Stock Exchanges.
President, will preside.
Husbands, Jr. have been added

STATE

the money

and the price would most likely

again, is an example of how

helped

JJ. S. TREASURE

funds in the new money raising operation

well received as it was

not have been

and

competitive corporate offering which

to contend

immediate success.

market

the

bonds was concerned.
the
with and it went so well that it was

flotation of American Telephone

big

they

should decrease as
increase in purchases of the

for mortgage

booklets, information, reports;
readers that if

Weeks.

and

If the flotation of corporate bonds and tax-free issues should

ing at the Chicago Bar Associa¬
FRANCISCO, Calif.— tion on
Oct. 13, 1954.
Richard H. Thornburgh* and Sam
Mrs.
Mildred
Roscher,
color

your

the demand for

off in the future and

produce inquiries it is called in¬
stitutional advertising.
Put cou¬
pons on your ads and offer free

just tell

George W. McLennan, President,

be most welcome, since

pro¬

inquiries if
dentists, lawyers,

pro¬

'Special

resume

law

with thie firm of Crowley, Sprecher

for refunding purposes (which is the only

Competition for Treasuries Seen

believed in

interested

and other select lists in your home

duces inouiries. I have often heard
it said that when an ad doesn't

tice

University

be used both

when

growth situations should
sent

out

cut

already imprinted with

name

sound

—

money

mortgage money also will not be so heavy as it has been. Under
such conditions an issue of long-term government bonds would

that when the mail¬

ing is folded it
as

corner

large enough to

that are prospering, community.
that have a good
record, also
Remember
when you meet
use them as lead producers.
The
someone
from vour home town
purpose
of financial advertising
you no longer feel like a stran¬
is! two-fold: Identification, and the
ger. One of the best ways to break
securing of leads for the sales
initial sales resistance is to travel
force.
I believe that identifica¬
familiar territory.
tion advertising can be combined
sort

•

that, the top
third of your mailing can be used
for the heading of your message.

companies

the

1, 1953.

substantial following among special¬

order to

above

and

with

new

Less

third

three way folder as the return ad¬

they

pany.

return
address

making the inquiry on the
your typist can insert the
prospect's name. The middle card

and

home

triple

party

sharing
own

perforated

the return

other,

terest copy along this
while stress the

vestment in the local power com¬

succeeds Harry T.
who has resigned in

Degen

Newcomb,

bonds.

•!

you have
security, it is

side, and the

one

of the card

line, mean¬
opportunity for
growth of your
town through an in¬

use

card.

suggestions from the management
as to the future
plans of the com¬
pany and write some human in¬

the

quite

in which the maturity of the debt is really extended), does
not appear to be a point of concern because it is believed that the
money market will be given some additional help by the powers
that be if there is to be an offering of long-term government

you

first.

prospect

local

which

fit

local

to be

seems

Vice-President of Blair

Incorporated.

Of Inv. Diversified

Mr.

Karl J'. Panke

h e

MINNEAPOLIS, Minn.—Harley
A. Degen, who has been on the
legal staff of Investors Diversified
Services, Inc. since 1945, has been
elected
Secretary of IDS, the
company announced.

Offering Still Expected

created

and in this manner

very

connection, if

attractive

rate

What
a

Triple Return Cards

this card

about

reply.

determine, but
a

o r

Harley A. Degen Sec.

beneficial effect upon the economy.

at the

bonds

Identify yourself with
that company, obtain some accu¬

company.

facts

possible

-as

customer is often

hard matter to

have

offer
and

you

proposition

reader

Co.

the money market that a token issue of long-term bonds
will be in the next financing of the Treasury. Whether this will

convenient

the

for

carries

good record and
(which it probably

future
then

kind

cm/ any
securities.

became

Even

own

be for

interesting

Lehman

ists in

anything

been

ociia ted

for the sale by others than the Federal Government of

issues that

was

produce inquiries unless

psychological reaction

favorable

had

ass

way

good repu¬
favorable outlook.

and

when

two-year, seven-month
to the pattern which has
offering a security which
other investors who must
obligations that do not have too long to run, the way is still

Token Long-Term

This May Help You
proven

years

until
October, 1953

Policy Keystone1

The

There

been

six years

power,

Based upon the conclusion that

the

for

with

banks

has

banking busi¬
ness

By making the new money issue attractive to the commercial

Casting Around for New Clients?

has

past

uncertain.

By JOHN DUTTON

has

its

me n

There

May 15,1957, fits well into the picture and

Panke

Municipal
Bond Depart-

non¬

Karl

the

the deposit banks have the funds- to take on these securities. At
the same time, the Treasury by keeping the new money offering
in the near-term classification has left the rest of the money

The 1%% note due

City, members of the
Stock Exchange, an¬

that

rejoined

Securities Salesman's Corner

York

nounced

some important purchases

into the market.

come

available in

by institutional

inclination to step

the other hand,

are

York

New

on the long-term govern¬

yields which

securities^/there has been

securities have

left open

com¬

nuclear

Despite
ments

Rejoins

Lehman Brothers

government market is taking in . stride the new moneyraising operation of the Treasury as well as the competition it is
still getting from corporates, tax free obligations, and mortgages.

have

Not only can normal
profits
and
return
of
capital be
obtained
during the
defense program, but these op¬

Governments

The

statement.

industry. There is

production

power

tions,

By JOHN T. CHIPPENDALE, JR.

mining

erations

industry.

power

mercial

nu¬

will

five,

even

of
tons

Thorium also may become
portant nuclear fuel.
There is no doubt about
future

Reporter

new

buying at a relatively high rate or
will
be found
to
to stockpile until 1975 or 1980, or
nijned out. The development of even longer. Either or both of
other new
large producing areas, these programs are possibilities.
areas
like the Colorado
Plateau
Defense requirements have con¬
«rthe South African Rand, would tinually expanded. In addition to
add
greatly
to
the
production atomic weapons,
nuclear power
potential.1
plants are
being developed for
naval vessels, airplanes, and for
Uranium

and

Karl J. Panke
Our

the defense program level, it will
be necessary to continue defense

LAKE

SALT

William
a

Opens

CITY,

Doxey

Utah

—

is engaging in
from offices

securities business

under
Invest¬
ment Company. Mr. Doxey was
previously associated with Renyx326

the

East

firm

South
of

name

Field & Co.

Temple

Doxey

Aubkey G. Lanston
Sc Co.
INCORPORATED

J5 BROAD ST., NEW YORK 5
WHitehall 3-1200

'W. D. Ganter

Opens

CALDWELL, N. Y.—William D.
Ganter is

engaging in

business

from

Edee

Drive.

offices

securities
on

River

231 So. La Salle St.

45 Milk St.

CHICAGO 4

BOSTON 9

ST 2-9490

HA 6-6463

The Commercial and, Financial Chronicle... Thursday, September

(1302)

Mr.

TO THE EDITOR:

LETTER

Lodge made

gold"

Mr. Shull

Again-Takes Issue
On Geld Price Question

York

Editor, Commercial and Financial
Chronicle:
The

article

Ernest

Gut¬

in your issue of Sept. 2, en¬
"A Plea for

mann

titled

Monetary Res¬
toration," is evidently intended to
promote

official
of

price

gold

which
be
a

—

would
ruinous

move

our

government
could

possibly

the

increas¬

cates

Frederick

Sbu»

ing the official

price of gold to offset loss of pur¬
chasing power of the dollar"; and
•that, according to Dr. Gutpiann,
"either the price of gold must go
up or the level of prices go down."
As

second

the

statement

above quoted, what could possibly
be wrong

if, to some extent, prices
encouraged to "go down"?

were

For

we
are, today, operating at
highest "level of prices" ever
known
in the entire
history of

the

nation

this

millions

something

—

particularly

that

burdensome

the

fixed-income

people
Must we

throughout the country.
regard the New Deal dishonest

tampering

with

the

"value" of the Dollar,

having -resulted
of

level

can

age-old

1933,

"ideal"

prices from which there

easing off?

And

his

Dr. Gutmann, an economist, must
surely know that the dollar-price
of gold cannot be increased with¬
out
its, automatically, reducing

the

"value"

and

that such action by

the

Dollar, itself;

ernment. would be bound to

further

power

"loss

the

gov¬

our

result

purchasing

dollar."

Why,

the

reduced purchasing power of the
that we are experiencing

dollar

today is not due to gold's being
presently priced too low—it is due
to

the fact that

suffering,
have beeh for years, from
we

are

the 41 % "devaluation" of the dol¬
that

lar

took

place back in 1933

and '34; and any further devalua¬
tion of the dollar could only pro¬

duce like results.
facts

which

Here

some

are

will1 bear

out

statement:
The

raising of the official nrice
of
gold from $20.67 to $35 ^n
ounce, in 1934, means that it now
takes

tiie

70%

dollars

gold-value

same

bearing

1837,
until

New

Standard, and
"playing by ear."
1834, Daniel Webster gave

support, indirectly, to the correct

theory that there should be an un¬
changing official price of gold, in
his published address before the
U. S. Senate, which carries the ti¬
tle
"A
Redeemable Paper Cur¬
rency."
Mr.
Webster
said:
"I

such

5c for

And if.

cial

3c newspaper—and so on

almost
we

everything

to raise

were

buy.

bound

have

the

effect

causing prices to skyrocket fur¬
ther,
rather
than
"stabilizing"
ihem at present
are
on

levels.

the views of

Following

few.

"experts"

this subject:

Since we, in theory, regard the
as
being worth l/35th of

Dollar
an

ounce

actually

gold (and which it is
in - our dealings

worth

obser¬

Editor, Commercial and Financial
Chronicle:

one

gold, which the banks of
civilized nations have as their re¬
that

serve."

Since,

Mr. Carnegie so

says, "gold cannot fall
value," it cannot, by the same

correctly
in

Let

token, rise in value.

clar¬

ify this point: Economically speak¬

the

ing,

terms

"value"

rates

while the

And

Dollars.

dollars, themselves, can be
changed in "value" by raising, or
lowering, their weight of gold per
dollar, the "value" of gold, itself,
cannot be affected by either proc¬

this

illustrate

ess.

seemingly

here are the
basic facts: Gold priced at $35 an
strange
ounce

ries

assertion,

"value"

ounce

carries
of

means

each

only

1 /70th

What differ¬
"value," therefore,

there possibly

1 /35th

ounce

worth

gold?

gold, and 70 dollars, each
only 1 /70th of an ounce of
All of our great leaders of

the

past have been well aware of
the answer to this question; and
that is why they have so con¬
sistently adhered to the sound
monetary principle that the goldcontent of the Dollar should never

tampered with.

issued,
definite

definite

our

"re¬

are

basis—

wqight

ment

ard

permitted

vary

and down from 36 inches; or

pound, avoir dupois, that wizards
of economic trickery could shift
up or down from the real stand¬
ard of 7,000 grains per pound.
.John

Sherman,

one

the

founders of the Republican Party
in

far

its

producers, who

1854, and chief architect of the

the

"Resumption Act of 1875" which

the

restored

to redeem-

currency

the U. S. commit the dishonest act

increasing the official price of

he merely promoted the
"honest" act of making the "green¬
gold

—

further

gold,"

accomplished by that

Andrew

White,

his

Money Inflation in France,"

hold

which

are

their
hold

courses."
assumed

"financial laws

operation

the

planets

those

described,

and

competent

economists, is that

once

the "value" of

set

been

weight

terms

recognized
a

currency

has

definite

gold, it can no more
be changed,
properly, than can
"the planets in their courses."
One of the most capable mem¬
ever to
grace the Senate of

but

under

the

curities.

referred

now

the

Sterling

Area,
payments

external

meet

Britain

other

matter

the

and

very

question

about

that

Britain

the

longer plays

gold

part in

determining

issue.

Nor is

thought

the note
school of
favoring the

Britain

Even

those

keen

there any

return of the old

United

the

are

have to be confined to

would

ternational

requirements.

in¬

or¬

der to be able to make the pound

convertible

notes

into

gold
even to

domestic
mark

holders, or
large amount to

for
ear¬

serve

metallic

backing to inconvertible
it would be neces¬
to increase the gold reserve

pound
sary
to

notes,

extent

the realm

that

far

of practical

beyond

possibility.

Admittedly, the existing system
in
Britain
carries
inflationary
possibilities.

American

is not

was

and

wide

think.

Guardian

Gruber

But

this

respect

the difference between the British
and

York

the

surplus

would

States

be¬

depleted, and it might then
become necessary for the Federal

come

Reserve authorities to avail them¬
selves

their

powers

requirements.

reserve

American

well

to reduce
From
an
British

to wait until Britain is in

having

monetary
as

After

United

systems

Mr. Shull

all, the

States

seems

power

somewhat

City

authorities

similar

possibilities.

Se¬

And

inflationary
the extent of

"creeping inflation" in the form of
an
expansion of credit and cur¬
rency has been substantially the

pre¬

Baruch

same

Brothers & Co.

depend

for

Very

truly yours,
PAUL EINZIG

120 Clifford Inn,
London

John M. Schiff Heads
N.Y.U.

Bldg. Program

John

Schiff of

Kuhn

Co.

has

accepted

the

General

000

for

program

New

house

Chairman of the $3,000,-

development
building

new

Loeb

post

York

Univer¬

Gradu¬

School

ate

Business

Ad¬

ministration,
C h

ncellor

Henry
H

1 d

an¬

nounced.

The purpose

the

cam¬

paign,

Chan¬

cellor

Heald

will

said,

johnM.Schiff

mobilize

financial

support

bers of New York

among

mem¬

City's business

community for the construction of
new home in the Wall

the School's

Street district.

Schiff,. investment banker
has been a part¬
in Kuhn Loeb & Co. since

Mr.

and civic leader,
ner

1931., He is a director of several

corporations,

a trustee
Savings Bank and
Provident Loan Society, and Pres¬
ident of the National Council of

of the Bowery

the Boy Scouts of America.
1925

graduate of Yale

Uni¬

versity, Mr. Schiff also graduated
from

New

College,

Oxford

Uni¬

reserve

requirements, and
even to reduce, temporarily at
any
rate, the minimum limit of the
gold reserve below 25%, carries

posi¬

external support.

of affairs.

state

who

fanatically
restoring the converti¬
bility of sterling in the immediate
future realize that convertibility

SHULL

engaging in

dimensions that

such

assume

present comfortable gold

sity's

opinion

reserve

produced

Phillips & Co.

and

property.

Sterling Area countries.

viously with Graham, Ross & Co.,
B.

industrial

New

name

Mr.

was

whether the change was for worse
or for
better, but there can be no

Guardian Securities

Broadway,

would

re¬

England

note

requirements

"debauch"

in the

two

countries in

re¬

He is

versity, in 1927.

member

of the N. Y. U. Council, governing

body

York

University,

the

trustee

director

and

the

New

Zoological Society, Natio?fal

Jewish Welfare
Public
Nurse

Board, New York

Library, and the /Visiting
Service

of New

York.

cent year.

Runaway inflation, al¬
technically
possible
in

though

States
was
Henry
Gulf-Atlantic Opens
Lodge, the elder),
who
TAMPA, Fla. — Gulf-Atlantic,
drafted the gold-standard plank
of the Republican platform of 1896 Inc. is engaging in a securities
the
plank, presumably, that business
from
offices
in
the
prompted the famous "Cross of
Marine Bank
Officers
Gold" speech by William Jennings
are Carl P. Fish, President;
Philip
Bryan,
and
which skyrocketed
him into the Democratic nomina¬ Stapp, Vice-President; George B.

both
As

sound

not

inherent

through

Building.

Howell, Secretary-Treasurer.

countries has
Professor

been avoided.

those

agement.
,

through
in

the

any

qualities

system

but

the wisdom and ability
in charge of its man¬
And

the

disagreeing

Hampton Inv. Co.

PRATT, Kans.—John G. Hamp¬
ton

has formed

the Hampton

vestment Company with
306

Main

Street

true

with

Mr.

securities

business.

formerly

same

about the dollar.
While

Forms

Robertson

rightly
remarked, sterling is maintained

—

year.

other

United

Presidency that

pound

currencies

Cabot

tion for the

the

securities business from offices at
170

necessitate dollar
large scale. As a
result a large number of coun¬
tries with paper currencies would
gain
access
to
American
gold
through the intermediary of con¬
vertible sterling. The drain might
bility

War

the "Sterling Area gold re¬
serve" and its declared object is
not to serve as metallic backing

lower

maintenance

aid

the

Gruber

and

Treasury

the

The gold stock
to

bers

the

of the Bank of

became government

Sept. 11,1954.

Peter

of World

outbreak

transferred

Chapel Street,
15, Conn.

Forms

The chances are that
of its converti¬

sterling.

the

serve

New Haven

suspended,

was

II, practically the entire gold

their

And it may properly be
that one of the "laws"

note

after the

Gold Standard League
2009

the

large gold reserve. Finally,
September, 1939, immediately

"Fiat
says

England notes ceased to
be
convertible
into
gold, even
though the Bank continued
to

Connecticut State Chairman

1875 Act.

standard
Bank

the United States.
FREDERICK

maxi¬

out

of gold. Incidentally, the
gold-lobby promoting this "dishonsty" is about 90% foreign —
since
only 10% of the world's

backs" of Civil War days "as good

the

would

that

—

against the interests of the United
States
to
assist
in
premature
restoration of the convertibility

tion to restore convertibility with¬

raising the official

known output of gold is

action

conclusion

point of view it would be better

price

our

ability in gold, didn't suggest that

accom¬

argument, I am whole¬
heartedly in agreement with his

circula¬

limit

mum

debt."

Dollar

was

Shull's

tion, independently of the size of
the gold reserve. In 1931 the gold

goldtrying to get

are

circulation.

note

administrative

selfish

from

separation

"fiduciary issue." As a result, it
became possible to increase
by

reasonable program

efforts

Shull

Mr.

Notes Act authorized the govern¬
ment to change the amount of the

opinion to
guide us, as evidenced by the facts
presented herein—America should
wake up! and should openly com¬
the

Whatever

plished in three stages.
In 1928 the Currency and Bank

sound-money

bat

"The Rise in the British

fact.

Their

With such an array of authorative

think of it, in Britain
reserve
is completely
di¬

gold

policy has

war

Mr.

may

vorced

orderly funding and grad¬

liquidation of the

(my underscor¬
balance its budget; and

to carry out a

Circulation"

known

unimpaired

ing);

Sept.

criticizes

appearing in
issue of Aug. 19, because of
my remark
that the size of the
gold reserve no longer plays a part
in Britain in determining the note
issue. But surely that remark was
merely a statement of a generally

this govern¬

concerned

ual

Shull

your

be between 35

worth

dollars, each

Note

dollar

issue

your

article

car¬

of gold.

real

Frederick

priced at $70

that

"value"

ounce

ence
can

1 /35th

of gold; gold

ounce
an

that each dollar

means

for the

the offi¬

price of gold again, it would

only

the world's standard of value, and

that would

all

for

value, because it is in itself

fall in

of
gold per dollar? To do otherwise
would be like having a yardstick

$1,200 automobile, or about 70 %
more dollars; $20 for a $12
pair of
.shoes; 25c for a 15c quart of milk;

currency" unless

paper

deemable"

wise

sub¬
stance in the world which cannot
"There

vation:

U. K. Note Rise

determining the amount of the note issue.

been to keep its own house in
order; to maintain the gold stand-{

enced all
pay

this

made

year,

able

paper-dollars,'

$20.67

along the line since 1934:
$2,000 for what used to be

that

He said: "In

dollars.

or 70%
happens

Now, how could we
possibly have an honest "redeem¬

holder."

money

Finally, Andrew W. Mellon—as
know, indeed, that all paper ought ■capable a Secretary of the Treas¬
to circulate on a specie basis; that ury as this nation ever had—set
all bank-notes, to be safe, must forth his views on Sound Money,
(my underscoring) be convertible in his book "Taxation: The Peo¬
into gold and silver at the will of ple's Business," published in 1924.

do,

over

started

there

took

ciples of the Gold

real

Deal

1933, abandoned the age-old prin¬

that

Now

with

tampered

never

was

the

what

used

prices

commodity

general. And the official price of
$20.67 an ounce, put into effect in

fore that "devaluation"—35 to do

*lhat that is just about the. degree
of inflation that we have experi¬

and then only

years,

slightly, in order to adjust the
gold-silver ir.ter-relationship from
its original "15 to 1" to "16 to 1"
—and not done for its having any

equal

it did be¬

for

disturbed

never

was

next 40

the

"in¬

advocating

creasing the official price of gold."

of gold at $19.39 per troy
(resulting from their as¬

"value"

you

usual

24.75

say: "Dr. Gutman
advo¬
.

clearly
defined
as
the
expedient by which
a real public bankruptcy has been
disguised under the appearance of
a pretended payment."
In
1792, Alexander Hamilton,
Secretary of the Treasury under
President Washington, was instru¬
mental in establishing the official
Smith,

signing the Dollar a "value" of
grains of gold), which

rizing

Gutmann

article,

without its, automatically,
"raising the denomination of our
coin' '— a dishonesty which the
world's greatest economist, Adam

ounce

foreword,

the official price

of gold

price

make. In your

su m m a

foreign banks and nations),

"most

increase in the

make

delivered

Feb.

which

cannot raise

takes

—

British economist offers data supporting his contention that the
size of the gold reserve no longer plays a part in Britain in

address
before the Economic Club of New

"Chronicle."
with

Criticism

—

not only knew
accumulate money, as well

"sound"

Monetary Restoration," in Sept. 2 issue of the

Plea for

Einzig Replies to Skull's

men,

what it

article, entitled,

of Ernest R. Gutmann expressed in

Carnegie

Andrew

1908,

of all

how to

League objects

Connecticut State Chairman of Gold Standard
to views

achieved
In

LETTER TO THE EDITOR:

knowing full well that
money
cannot be
by such trickery.

—

"honest"

who,

plea for an

official price of

the

"increase

30,1954

with

Company.'

In¬

offices at

conduct
He

was

Small-Milburn

Volume 180 "Number 5364... The Commercial and Financial Chronicle

(1303)

Sterling Again at

Discount

production.

Once
they have
higher level, a subse¬
appreciation
of
sterling
impose grave handicap on

reached

quent
would

By PAUL EINZIG

British

Calling attention to the dip of sterling exchange below its
dollar parity the first time in almost a
year, Dr. Einzig dis¬
the

cusses

Sees

causes

U. S. will lead

LONDON,

Eng.

renewed

dollar-gap as well
sterling convertibility.

For the

—

as
the significance of the trend.
drastic reduction of foreign aid by

first

therefore,

time for nearly 12 months, sterling

•

clipped below its dollar parity of
of

While

earlier

in the

summer

i t

weakness

was

payments may then give
a
less favorable trend.

attributed

the

with-

awa1

•

that

the

advisors

im¬

time
Dr. Paul Einzig

ing

the

demand

modities.; This
confined

liberation

British,

due

vantage

a:.result

re¬

the

various

commodity
during the last year or
is now possible for nonBritish importers of various dol¬

the

commodities

requirements
•with

through London
of
sterling.
This
that sterling has now to
seasonalpressure - of
a

the

means

face

aid

world-wide

character.

the

circumstances the

limit of $2.78.>.
-i

One of the

•

■

risk,

that

con¬

time.

some

steadiness

Spencer

Co.

stock.

4.20%

($100

par

cumulative

The

stock

share) plus

per

dividends.

was

expansion

of this character."

pro¬

ment,

particularly in the private

sector.

At
the
moment,
I
am
happy to say, the world is en¬
joying relatively prosperous con¬
ditions of high employment and
trade and the total volume
ternational
still

ditions
flow

is
probably
But, if these con¬

to continue and

are

of in¬

credit

expanding.

international

investment

if the

trade

to -reflect

and

grow¬

ing and dynamic world economy,
the world's trade
policies will
I

said

liberalized.

that

from

trend

of 4.60%

Last year

tariffs

$100

value preferred

par

proceeds

will

be used for general coroorate pur¬

including the financing of

poses,

facilities and extensions, ad¬
ditions and improvements to ex¬
new

isting properties.
'

The new preferred stock is sub¬
ject to redemption at $104.50 per
share

redeemed

before

United

refrain

downward

States

import

over
the last two decades
would not be enough to put inter¬
national trade on an even keel" and
that there was need for a further

reduction

the

obstacles

im¬

ports.

I share the disappointment
of many of you that the Admin¬
istration

did not find it possible
put into effect this year the
trade liberalization features of its
to

Jan.

1,. 1958

and

thereafter

foreign

economic

welcome

the

statement

that

policies

and

President's
it

his

recent

give high priority to them in

next year's
•/,

legislative program.

Remarkable

Contrast

Post-War

With

in the

cost

living is .no likelihood of a decision in
the summer, due largely favor of full
convertibility in the
higher price of meat and near future.
•
This rise will
undoubtedly
While
the ; possibility
of
a

during
tea.

^reinforce the

numerous wages

which have been

mands

'ward

recent

; about

put for-

months, or are
forward. When

put

:these demands

de¬

decided upon

were

by the labor unions concerned, the
cost of living index was absolutely
steady.
The
argument
used
in

Justification

the

claims

was

index
did
not
truly
the cost of living.
It
.was
argued by labor spokesmen
that the cost of living was in fact
^rising. Against this it was pointed
the

that

Represent

•out

the

that

index

was

the

same

under the Socialist Government

: as

-which

had it brought

'But

the

face

'determination

to date.
the unions'
up

press

their

claims such

arguments were useno longer necessary
Jor them to base their claims on
Jess. Now it is

such dubious grounds, as the cost
imoved

providing
for

wages

With

obligingly
upward direction,

index

living

rof

very

genuine
demands.
without

foundations

be met to

justification,
them, will
considerable

extent. There is a

genuine danger
•that many British exporters will
-then be unable to quote competi*

;
.*
.

of the rising
of production. It is true, for

tive prices as a result
cost

the first time since the war, there
is

now

strong pressure in favor

of higher wages in Germany. But
.owing to the existence of over¬
r

full

„

Britain
it
seems
doubtful
whether
higher
wages
will be accompanied by
any
effort on the part of the
workers to increase productivity.
The outlook for British exports is,
employment

debt,

and

1,124,855

stock of $6 par

common

value.

made

convertible.

fully

The

op¬

the "floating pound"
have now gained the upper hand
both in the Treasury and in the
of

ponents

Cabinet.

fact

The

intervention

official

that

the

foreign

ex¬

change of senti¬
about the "floating pound"
of the

weak¬

ening of sterling in recent months.
It was during the period when
the sterling-dollar rate was per¬
sistently in the close vicinitv of
its upper limit "of $2.82 that there
was
much agitation
in favor of
removing this upper limit and al¬
lowing the rate to find its own
level.

that

Now

the limits would

the

removal

probably

of $2.78 the

less

ters.

attractive

For

quar¬

that

depreciation of sterling would be
followed
in

British

closely by a rise
prices, wages and cost

very

in the processing of
sheeting for packaging,
bottles, paper coatings,

used

and

squeeze

textiles

and

other

Over

electrical

v.'as

ago.

istic

retrospect.

personal

and

impression¬

1949, the ruins of war were
still apparent in Europe. Famine
abroad

was

world

some

the

and

parts of the

threat

was

only thinly veiled in others.
construction

far

was

Re¬

from

countries now, had
begun.

many

The

scarcely

contrast

today, as we all
perhaps too seldom re¬
member, is remarkable. The facts

the last five years, Spen¬
net sales have

consolidated

increased from

$19,396,000 to $34,104,000, the latter figure covering

the

fiscal

1954.

year

Net

income

ended

year

ended

June

for

the

30,

June

but

recovery in Europe are too
familiar to
need
repetition; let

remark

1954

30.

fiscal
was

revival

has

been

Hansen Co. Formed

sen

Companv

with

Judge Building to

offices

conduct

in
a

securities business.

exchange of goods throughout
world

H&ri Co. Opens

Cnlo. — * James B.
Is engaging in a securities

business from offices in the U. S.
National

Bank

the

of J.

name

Building,

rate

never

under

B. Henri Co.

before

Advances

the

underdevel¬

oped countries have been harder
to

observe—if
than

son

that

over

the

been

case

for

those
much

advances
uneven.

source

other

rea¬

countries

of the earth

have

But to

immense

any

they

encour¬

agement.
The

of economic devel¬

process

is not easy to set in full

opment

motion,

involving

took

behavior

centuries

com¬

that

evolve

this
tne

the

Yet the

accelerating.

had

magic carpet here
to take us around

morning
globe, I think

would

farms

new

duce

and, in the deserts,

energy;

ing natural gas to productive use.
Down in the villages, we would
see
grain being milled by ma¬
chinery, instead of being pounded
out by hand, and electric light re¬
placing the oil lamp.
Let
of

give

what

concerns

Federal

illustration

you one

talking

one

about.

loans

our

It
the

Electricity Commission in

Mexico—and the installation of
small

diesel

plant of only
600 kilowatts generating capacity*
We

power

financed

this

plant

Tecuala,
are

area.

town

coast

west

years'

electricity

time, here
in,

Tecuala

from

town

library,

Mexico's

three

have risen
the

installation
rural

of the results: Industrial

some

users

the

in- the

just three to 33;
acquired a public

has

daily newspaper, a radio
a
night school; Tepopulation
has
trebled,

station,

and

cuala's

and the number of students in its

schools has increased

times.

seven

The

municipal hospital has in¬
stalled refrigerators and a modern
fluoroscope—the only one within
radius

of the town

witnessed

miles.

The

mayor

recently said: "I have

our

emergence from the

dark ages into an age of light."

Now,
been
has

I said, the advance has

uneven.

not

some

occurred

And

yet been

year ago,

today by
pectancy.
In

parts

many
are

to live

that

we are laced

revolution of

people

less

the

world,

less

and

ex¬

content

the past or to think in

the past.

The

revolution

to deal with

way

expectancy

The Bank's Important

is in this

turn it into a revolution
achievement and progress.

and

must remember,
of the Governors well said

one

here

areas

all

Part

kind of revolution

that the bank

ing

can see itself
play¬
In the Annual Report

part.

before you, you will find the full

of the bank's interests dis¬

range

played—from the mobilization of

capital,

internally

and

interna¬

tionally, to the application of
ital

tion

bring

and

Report,
nical

about

trade.

you

and

can

new

Indeed,

assistance

development institutions in

countries,
electric

thing

the

construction

capacity of

improvement of
of

many

some¬

three million kilowatts,

over

to the

lions

power

this
tech¬

survey our

financial

cap¬

produc¬

acres

improvement of

railways in

some

farm

mil¬

lands, to

services

countries

dozen

five continents.

By comparison with what

are

can

modest

done,

these

use¬

figures

enough, and I have

illusions about the magnitude and

patterns

industrial world of today.
proces

does

and

hundreds of miles of pipe bring¬

fully

host of technical skills and

DENVER,
Henri

experienced.

plex

J. B.

obvious:

production

the

are

the

major factor in

the

—and

SALT LAKE CITY, Utah—Kent
T. Hansen has formed K. T. Han¬

the

extend

$5,287,000.

K. T.

only

that

replacing donkey

trails

com¬

plete; the organized attack on de¬
velopment problems, evident in

there

insulation

purposes.

mean a

many

Governors

events
of
the
past six
I end these remarks briefly

with

tic,
film

idea appears to
realized

Meet¬

about

decline of the rate below its lower
level

Annual

the

years,

know

are

cer's

the

hope the
Governors will forgive me if, as
one
privileged witness of some

expected to be in opera¬
tion in 1955. This product, a plas¬

these

ing the movements of the ster¬
ling-dollar rate even within the
limits
of $2.78-$2.82
speaks for
itself;

addressing; the
just six. years

change markets aims at moderat¬

has been the result

roads

camel

had

We would

the

first

ings at which I had the honor of

among

.Possibly

truck

meager.

Spencer Chemical is one of the
widening of the limits of sterling's major producers of fertilizer grade
fluctuations was widely envisaged ammonium
nitrate, ammoniating
a short time ago, this is now con¬
solution, and synthetic anhydrous
sidered very unlikely. The prin¬ ammonia. Its
products also include
cipal rsupporter of the idea of a methanol,
formaldehyde, hexa¬
"floating pound," Mr. Lyttelton mine, and dry ice.
Principal plants
(now Viscount Chandos of Alder- of the
company are located in the
shot) is no longer in the govern¬
vicinity of Pittsburg, Kan.; Hen¬
ment.
It
is
true, the Bank of
derson, Ky.; Vicksburg, Miss.; and
England is still in favor of such
Chicago, 111.
a change,
but only in connection
The company is constructing fa¬
with the return to convertibility,
cilities near Orange, Texas, for the
as
a
means of defending
sterling
production
of polyethylene
and
against pressure once it has been

ments

-these claims, or most of
.have

funded

shares of

the

appeared before.

others the gains have
T

Situation

The

industry

along these roads.
mountains, we would see
streams being harnessed to
pro¬

intention

rise

never

small factories *

see

where

-been the appreciable

.sudden

would

working

being cleared

increase

sound

accompanying

company will use about $7,900,000
to redeem the
outstanding shares

Remaining

bullock,

and

undiscriminating use of
to
be
interpreted
as
a

credit

by the many evidences of

this
progress.
"We
would
see
tractors working on land that be¬
fore had only known the

see

Healthy

"merely
reversing
the

stock.

struck

and

need

credit

healthy
expansion of international invest¬

It would of course be politically
prices decreasing to $101.50 per
sterling has
and - morally
difficult
for
the share if redeemed
after Jan. 1,
improvement
government to reverse its policy 1961.
It is also redeemable under
.of the British balance of payments
by suspending or restricting free a
.compared with 1953. The visible
sinking fund at $101 per share
dealings in commodities. But the on
or before Jan.
•import i s u-r plus
is decidedly
1, 1961 and at
realization that Britain
can
ill
-smaller, thanks to the favorable
$100 if redeemed thereafter.
afford
even
the present degree
export figures.. •
In addition
to
the
new
of convertibility will no doubt go
pre¬
.::But this is, about the only bull
ferred
stock ; the
a long way towards
company
will
discouraging
point as far./ as sterling is con¬ any further progress in that direc¬ have outstanding, upon comple¬
cerned. s Against it there
is the tion. For this reason alone there tion of this financing, $25,000,000

tive

competitive

International Investment Still

any

Of the proceeds of the sale, the

operation of the liberated

commodity markets.

and

international

than

warning against

accrued

...

for the rela¬

reasons

the

gram

for

priced at

surprising thing
This can be done to a large de¬
is not. that sterling should have
declined slightly but that it has gree even in the absence of full
convertibility of sterling, owing
not yet declined to the official
to

imme¬

therefore,

preferred

been relatively moderate is that
during 1953-54 there has been
generally speaking, practically no
scarcity of dollars. But once dol¬
lars
become scarce
again there
will be every inducement for for¬
eign countries to seek relief by
shifting the ."burden on Britain.

their

cover

"to imagine

source

why the government
present

Chemical

why pressure on sterl¬
that account has so far

fruitful

trade

underwriting group headed
jointly by Morgan Stanley & Co.
and Goldman, Sachs & Co.
yester¬
day (Sept. 29) made a public of¬
fering of 150,000 shares of Spencer

reason

ing

two, it

Chemical Preferred

the

they had to fol¬

credit

that

mean

freedom

there

listen

went on,

man

making

Bankers Offer

commodity markets for
covering their food and raw ma¬
terial requirements with the aid
of sterling instead of dollars. It
ought to be borne in mind that

markets

lar

the

not

British

not

was

But

reason

assume,

world-wide

will

that

deferred

there will be stronger inducement
for foreign countries to take ad¬

com¬

own

This

gap.

find

I certainly do not wish
my re¬
marks about the dangers inherent

•

importers

their

cover

sell¬

dollar

demand

seeking to,
quirements.

for

dollar

pressure

was

seasonal

this

the

would

sideration of both reforms will be

have

progress

has

favor

before

may

Britain

changes. This argument is valid
not only regarding the "floating
pound"
but
also regarding full
convertibility. It seems reasonable

govern¬

convertibility

reappearance

minent,

the

stop to think whether

towards

full

not

its

arise

cnanges.
diate

likelihood

inclined

are

should

been too rapid. The drastic reduc¬
tion of foreign aid by the United
States is likely to
lead to the

convertibility
was

and

ma|
which

li zation

r e a

long

ment

balances

situation

very

foreign

owing

rise

general

dissension

the

advice

consumption is increas¬
ing considerably. This foreshadows
increasing imports.
The
recent
improvement of the balance of

Sept ember.

•

prevalence

satisfactory
conditions

ments

promising.
time, owing to
conditions in Britain,

boom-like

middle

wages

low suit to protect their trade in¬
terests. It is difficult," the spokes¬

domestic

the

towards

The Expanded Operations
Of the World Banh

chances

making
any changes in the existing sys¬
tem. It is usually when conditions
are
unsatisfactory that govern¬

reduces

same

$2.80

the

level

the

case

any

economic

too

none

the

for

the

be negligible.

reasonably

deferment of

exports,

lowering

well

possibility that

would

Continued from page

the

difficulty

face
the

our

bank.

dence

member

the

tasks

that

countries

and

What I do have is evi¬

that

convinces

me,

than ever, that these tasks can be

accomplished, and that the
lution of achievement

can

revo¬
won.

The Commercial and Financial Chronicle

(1304)

Commission

Continued from first page

cute

charged to exe¬
research aft!
and was permitted

was

development
to

Atomic Energy vs.
Conventional Fuels
Today

was

semination

the

who

the "old

As I understand it,
to

give

you

picture of the

Tota^.
j

is the size of the
atomic energy effort now going
forward. Our Government has a

investment

plant

j-j,js

presently amounting to $5.7 billion. Completion of present plans
will
enlarge this figure to ap-

people

proximately $3 billion. These inelude, besides production facililies, the most modern research
and
development facilities that
can be imagined.
Up to now the

have

huge atomic energy industry has
a
Government
monopoly.

been

30,

Aug.

•toward

has made
opening the

it,

„

potential.
my

see

and

these

the

activities

out
raw

materials, and highlights the

fact

that

production

domestic

and

ore

uranium

con-

record

attained

has

levels, while production from fo

cign sources continues to increase,
The report
points out that the
AEC s major construction projects

rapidly

bpng turned over to

It briefly highlights
research and ^evelprogram,
including the

operations.

Ihe weapons

cide

test

the

series

ground.

Proving

Pa-

national civil defense.
It

the

covers

for
The

„

developments

•

the

g-re

knowledge.

field

biological

the

covers

medical

and

applications—covering the effects
„

of all

radiation

-xmls

and

living

fatter efforts

«rgy

and

much

costs

*120

that

running

are

million

ag-

science,

The

same

construction

rate

There

month.

per

are

tor

over

72,000 operating contrac-

employees

and

construction

united

with

64,000

over

employees

mendous

task

design

employees
6,000

ment

ahead.

govern-

the

Here

treis

breakdown of the array of scientific
tine

and
ana

volved

engineering
engineering

this

talent
talent

program:

good

j0j^

tal-

coupled
fhe im-

was

interest

and

free

there would be in

erating

without

security.

no means as

information

flow

of impor¬
industry.

necessity
for

the

of
old

cor-

standard

our

liv-

The

sub¬

It allows private

saturation

ture

tative

point for

there

corporations, subject to
licensing of the Commission,
to own and operate facilities us¬
ing source and fissionable mate¬
rials.

the Atomic
to lease and

empowers

Energy Commission
recall

these

ligates

materials, and it ob¬
Commission to reim¬
private operator for

the
the

burse
losses

incurred

recalled.

The

standards of
the

express

these

the

law

material

sets

new

safety protection for
purpose
of
having

consistent

Its fu-

power.

not

greater

ever

only

quanti-

output, but also transforms

entire

the

horizon

limitless.

marches

economic

structure

it goes."
It may be argued that we have
made possible and used this

freely

available energy because of
democratic system or because

our
we

operate within the free enterprise
system
and
its
profit
motive,
Nevertheless, the facts are that we
make

and

therefore

goods and

have

leisure than

font

any

n and

braijs, and a
m
Sln]ple
f1168'!n KUriaCI
travel abundant

\ C^mG£

thot

•

tnritq anHninUn
tones, and
in

our

energy

used

multiply

N'ow
We

available

where do
it

use

energy9

furnace

and

electricity.

the

in
an-

(home

production

continue
of living

with

procedures

are

it is essential that-we
supply con-

tinually increasing

sources

en-

Now

how

perspective
of

does
on

one

our

get

good

increasing rate

using energy? Let us return to
concept that energy is used

our

transportation, heat, and

duction

in
in- 1

are

electrical

pro-

power.

old

have

been

useful

the

no one.

provisions

patent

the

national

may

early

stages

and

foot,

by sail and

these

were

by horse.

All

almost

wholly dependday to day supply of

the

sun's

Our

energy.

heating

was

mostly by wood and by the sun's
energy-again dependent on the

■

We must face the fact that

tremendous portion of this effort
been directed ultimately to
the weapons field.
With this I
am

sure

will

you

not

disagree,

one

the

normal

law has been passed

new

ud;y

of the strength and mgenQ£ industry to the task of

making

atomic

for peacetime
f116

available

energy

For

use.

moment,

^s^ss this new near and
law futhe

implications for
under

ture

the

Act

been the foundation

since

1946,

was

individual, or for
the

Atomic

mission, to
source

nium

has

which

of the

illegal

effort

for

anyone

other

uranium.

believable.

ture—for example:

Commission

Now

what

into longobtaining these

keep

needs down?

our

example:

the

electric

vides

tained

atmosphere still subject

industry

can

see

enough

We have

favors

warrant

the

sure,

incentives

some

certain

law

intends

and

two

the years have served

over

purposes:

electrical

reduce

energy

natural

the

and

cost
con-

vast

My comhas had a great share in the
development of gas turbines, and
I would like to cite

how

this

help

new

prime

meet

the

example of
mover

law

that

will

technical

quirements of the future.
As

industry has resulted in increasing the operating temperaating

were

necessi-

12°

Let

years.

now

get down to

cases.

^ b7 °u.rt con^ntratlon °" da"
fense activity. There were basic

Where does atomic energy fit in?

ture

Energy,

line.

restrictions

the

with

regard
to the
exchange of information with for-

as you

sun.

however,

Most
came

know,
of

sure

you

Nevertheless,

win

the

from

comes

what

from the

e*Sn persons or nations.
There years ago in the form of
w.eFe' of course' many other pro- fuel—coal, gas, and oil.
am

plants

The Place for Atomic Energy
us

sun

the fossil fuels are small by com?arlS(?n wltl]
maximum, p auslble demands. If "low cost' energy 18 g01IlgA? determine our
very economlc llfe> then they will

gin to carr-v more load than re~
port8 iindicate they are capable
of" The hypothetical energy systerns of the future can be, in
the main' carried only
a de¬
matlc new source of enerSy"
S®1" Energy I
T„,

„,

f, tb? new. s0"rce? Th®
dlrect collection of solar energy
on
vast .scale b.yu mynads ,<*
trackl"H m'rrors' thermocouples
°r other devices, its overnight

forage, its conversion to elect"?lty' and lti delivery from
^nz??a ? D.etr0't» or from Gobi
Manchuria,

remote.

appear

Solar Income Eenergy as a Genoral Solution would be prohibitlv,ely expensive. Only nuclear
f,ueIs offer h°Pe jor 'hf tremendou? en,ergy needs of tomorrow,
£nd only by our taking immedlate actlon to Put atoflc energy
to economic use can tomorrow s
hope to survive without
the need for •>arrlng adjustments.
economy

A moment ago I mentioned two
uses

energy

—

transportation

In the field of transportation, the

Frankly, however, I

see

few

electric applications.
Atomic
powered merchant vessels may
come, but I believe that they must
be based on some new concept or
need for ocean transportation. I
doubt if I will ever see practical,

economically useful locomotives,
automobiles, trucks or commercial
aircraft using atomic energy of
the type we know today. Hence,
if this be true, (with the excep-

use,

many

chemical

What

importance of this energy? I
believe that more than any other

per

year

the
over

gener-

average

the past 50

This increase in

has

tempera-

not

followed a straight
depended, to a large
upon the development of
metals to withstand higher and
higher temperatures.
At a cerIt has

extent

tain

period,

terials
tneir

some

mil-

supply our ever increasing needs
for transportation,
the

field"

some

of heating, there
specialized processes

where atomic energy can

you

tuers of the steam turbine

accomplishment.

reactor.
there

state8 the "Reserves of

Fulur^'

this

and

^cb l°w eost capital energy as

may

interest

new

will

effort

•

Where wl11 new sources of en~
ergy come from? Palmer p"tnam.
author of the book, "Energy in the

re-

energy

increased

continue to rise, while the averheat content in a ton of coal
has begun
decline, at least in
mTmtrv
age

will

result in

this

have

trebled. We cannot, in all probability, treble the efficiency of
use again.
Yet costs of extraction

itary aircraft) chemical fuels must

in the

field—an

average

use

tions of naval ships and

resources

find

also il-

result

£ba£

energy

pany

our

this

was

sajd

form of gas, oil and coal.

given to it to promote the
stated purposes of the law.
As

serve

powers

there

been

great

the

use

bas

efficiencies

risks.

Administration which
new

petro-chemical market,

cost.

special materials from private in¬
In other words, it pro¬
to tight governmental control, yet
one
in
which
private

heating and the promising

happening other transportation possibilities—
use?
Can
we
except for, of
course,
atomic-

utility industry great emphasis always has been placed on a continuing
improvement
in
efficiency. Increases in efficiency ob-

dustry.

home

has been

efficiencies

For

the

enter

ural gas resources and make them

available for other uses—such

have capabilities well worth their

Increasing Efficiencies

know, the drive for
higher and higher efficiencies in

bonds of security

appreciate.

un-

look to improvement in this field

term contracts for

turbine

made.
I am practically certain
that atomic powered military aircraft can be produced and will

fuels—fossil fuels—have been

ex¬

allows

steam

start of an atomic navy has been

field, with the probable
also

today's

non-renewable

these

law

generating stations another 4 or
5%, thereby further reducing the
cost of electric energy.
This will
help further to conserve our nat-

ex-

be, I am sure, a new
and dynamic surge of interest in

build apparatus
na-

visions which x

reserves

Rates of

gas.

en¬

new

ciency

and heating. I believe that atomic
in the power has a place in both fields,

Energy Comfissionable or
as
pluto-

for producing material of this
Under the old

accumulated

oil, and

traction

should

weapons.

and steam turbine cycles,

gas

it is possible to improve the effi-

living high off

accumulated capital energy
of coal,

con-

Free

possess

material—such

Jegal ta ™n

patent system

been

the

applied in the atomic

The

witb the objective of harnessing

believe

have

and

ception of

that the

who

resources

soon

ergy

Atomic

those

States

portion

tremendous

that the way to get progress is to
provide incentives and I feel that

can

new

United

World

this

We must remember

The

siderable

into

energy—coal, oil and
laid down over millions of
of the Earth's existence.

gas

is that the

if we do not keep
coun£ry free and strong.
But what about the

deeply

years

the point to

since n° Peacetime benefits

Energy Act?

by cutting
of chemical

had to live with them, but

program,

ing

our

though,

wholly satisfactory to

The

those being used in commercial gas turbines. By combin-

below

^letZTZf° we .di.d m0uSt
of
work of transportation
by
ent

turbine operating
about 300° F.

are

have to, in the next 25 years be-

ergy

for

in efficiency
higher initial

Today steam

freely

transportation,

heat (such

process

and

strength

our

going
temperatures,

nnnei^o+l°
t material and
n2fw?<f ialadvantageover other
from effective util-

persons or

the

increase

temperatures

the

to improve our standard

law contemplates

new

stantial changes.

where

use)

Changes Made in Atomic Energy

without

nealing), in comfort heat

law.

heat cycle was developed to give

ing and our tremendous productivity. And as Stuart Chase has
said, truthfully I think, that "no-

industry op¬

the

much

of individuals and small concerns.

bag

than

■

composition.

report states
^

en-

activities-what
...

of AEC

reasons,

that

you

Accomplishments.

able

its

atdmic

medical

for

remember, as I see it,
ability to patent is one
portance of their task to this of the
major incentives to the in¬
country and their loyalty to the vestment of
private capital in re¬
C0rp0rati0ns for which they work, search and
development. It is par¬
baye prodUCed almost unbelievticularly an incentive in the case

toward

iJL

its by-products—to

riculture

These

directed

are

contributions

ani-

man,

plants.

the

security

assure

course,

people, inspired by the de¬

j.Q

types of ionizing and non-

fonizing

accrue

resulting

growth of fundamental scien-

lific

sion;—much

and

flowing
Commis¬

nerstone

you

w^h their recognition of

range

research,

physical

only

can

ented

The report dis-

tremendous

cusses

tell

This,

for

cannot

couid

statistics.

and

4he electric power generation and

submarine work.

our

and na^ ^ down with figures

for

forwaid

going

unclassified

information

factor, abundant energy is

used
in
private
industry.
It current
supply of sun's heat. Elecof the changes security regulations as
tricity
was
just
a
laboratory
tremendous savings of our taxthey apply to the flow of informa¬
curiosity
'
payers> m0ney and the contribu- tion between groups within this
In the'space of
only a century
tiong
Qur
safety as a nation, country and between U. S. and
we
have
literally
completely
wbjch have been made by these foreign organizations.
freed ourselves from sole dependthousands of people.
I wish that
The
patent
provisions
have ence on day to day or year to
j coujd show you the rapid rate
been hotly debated and I gather
year supplies received
from the
^ wbjch improvement is
going that the
compromises worked out sun. We have done this,

highlights the major

report

about our busiaccomplishments

know

Yet

little

how

aware

w|gj1 j

propulsion and
military requirements.

other

one

compounded each day by virof
the
fund
of
knowledge
which these people are building,

tiaval and aircraft
'

every

tue

for

power

really

ness>

for

nuclear

industrial

are

de-

reactors

program

improved

yefoping

people,

are

points

the Commission s concern with

over

of them
i am $Ure, feel adequate to the
j0b on which they are working,

recent

its

through

the Commission points
its activities in the fields of

successful

day.

every

have

engineers,
scientists,
and
professional people—a tremendous array of talent.
While

this report

opment

I feel it

division

2,000

report to the Congress—the Sixteenth
Semi-annual
Report.
In

are

techni-

other

Commission

uranium

for

tremen¬

from the Atomic Energy
tance

in good stead.

tremendous

composition of the Atomic Energy
Commission.
First, let's look at
the nature of the activities of the

centrates

there

impact of atomic
your business we must

look

volume

declassified

been

prod¬

Act

cal

might

There

However, there is by

business

are

comprehend it, overnight,

nor

Youth will stand

the

cnergy on
first

the

has

ucts.

diverse

and

many

few

a
few more 10 years,
majority have one to

years,

that

order

the

"in

ducing

into

come

1946.

eight years experience.
This is
a complex field.
We do not learn

,The Atomic Energy Commission
clearly

been

business

great step A Tremendous Technical Potential
business to
Now the force of these data is

since

picture

and

private industry.
.

most have

reveals that

the

this

engaged

Commission

new

dous
energy

production

job the experience we
gained in successfully pro¬

have

A look at the

young.

greatly

were

signed

However, the revised law,
t

atomic

the

that

business

wartime

contractors, such as
who try in every way to bring

we,

you

the

operated

strength and facilities,

—

these

And

facilities

will agree that
massive concentration of

them

The laboratories and

—13,612

sure

the
had

Commission
from
District,
which

basis.

1 1,907

—

over

enlarged and expanded.

to this

that impact

tremendous

738

1,634
1,346
1,843
engineers
408

Other engineers

potential impact of atomic energy
■on
your
business.
It seems to
me that the one major indication
of

constructed

Un¬

Manhattan

1,703

Metallurgical

purpose

Energy

2,411

Other physical scientists

Co.

JElectric

con¬

—

large facilities
the Atomic

law,

taken

were

Chemical engineers
Electrical engineers.-Mechanical engineers

the General

entrusted to

emission

1,617

Physicists

search,
development, operation,
and management in the vast facil*lies of the Atomic Energy Com-

information

sistent with these limitations.

Biological and medical
scientists
Chemists

chief in-

our

personnel — people
varied work of re-

vestment

organizations in

operation of its facilities and
encouraged to give wide dis¬

der

laboratories.

industrial

use

the

programs

Thursday, September 30, 1954

...

when available mawere
being
pushed
to

temperature limits, the

re-

be used
I think it more likely,
however, that electricity will in
the end take over the main heatdirectly.

ing load.

Hence, we come down
to electricity. What are the prospects here?
I believe that the

first economic full-scale commercial atomic power plant will be a
dual market plant—designed both
to produce weapons material and
heat for conversion to electricity,
These may be started, I believe, as
the legal and procedural

soon

road

blocks

are

out

the

way.

The principal load, however, must
in the end be carried by installa-

Volume 150 -Number 5364

■4

lions

whose

electricity.
In

The Commercial and Financial Chronicle

main, if not single
the
production
of

purpose,

Continued

economical

The State of Trade and

electric

28% and the independents 9%.
37% and 7%, respectively. '

from

power

atomic energy in such

single pur¬
plants. Two types of reactors
were
outlined, either of which is
competitive with fuel at 35 cents
million
for

btu.

the

and

only

solution

recognized

towards 275,000

Seven

here.

certain

and

defined

Suffice

Steel

That's

economic

question

fuel.

Here

admit

that I

cannot

speak with authority. The Atomic

Energy Commission controls the
supply and may determine the
price.
Nevertheless, uranium is
widely
scattered
through
the
earth's crust.
little

amount

the past,

value

and

only

needed.

was

small

only

natural, to believe that the sur¬
face is only scratched; that much
will be found than

predicted, and

for, its

that

extraction

can

now

processes

will

tioned they are

men-

com¬

petitive with chemical fuel at 12
cents

The over-'

all cost, which must be assessed to

the fuel will be

higher, however,
capital invest¬
ment and operating cost., r These
additional .costs leave the station
due

single

competitive
*

sidering
.

with

conventional

station using 35 cents per million
btu. fuel.
This is without con¬
the

placing any value

by-products of radiation—plu-

7 tonium

will be found for all of these.

user

extent

their

off

most all

Business

rather
up

If they

now.

than

their

rebuild

gas

How long ago

waste product?; How

of ordering.

pace

If such

short

great

pipe

time

pipe

dreams?

vestment

the

ago

lines

How

the

were

today
does

Energy

The
•

tons and

(actual)

68.7%

based

week ago.

duction 1,525,000 tons.

month

placed at 2,149,000 tons

was

95.3%.

Coffee
week

little

exact

you

theless,

you

have

new

much

that

sure

tomorrow's

fuel

prob¬

This I will certainly

working lifetime in

and

practical source
that will relieve us of

energy

lems.

may

see

117,547,470 tons

Electric

of Jam 1,71953. ;

not

although
more
see

possibly

gas,

was

estimated at 9,072,000,000

;

This

strong
free

only

must

arid
to

safe.

must

and

country

our

resoect

enterprise.

reservation

one

keep

con¬

Spot cotton prices registered further mild advances last week
by. active price-fixing for domestic and foreign " account,
some support attracted by the belief that a tight supply sit¬

represented

distributed by the electric light'

decrease of 2,000,000 kwh., below that of

kwh., or 8.6% '
kwh. over the

like week in 1952.

•

will?—the

orgy—coal,
—will

oil,

carry us

productivity

producers

Car

Entries, of ,the,staple into* the.government
in moderate volume. Net entries for the week
ended Sept," 10 were '29,500 bale's, bringing the season'stotal
through that date to 64,000 bales. V
1
;t

^ade Volume Registers Spottiness In Latest Week ]

Kt-J

Shoppers increased their spending slightly in the period ended

Wednesday of last week as compared with the preceding week,""
but the total volume of retail sales was somewhat below that ©sf

Loadings Advance 18.2% Above
Previous

Loadings totaled 711,228 cars, a decrease of 112,655 cars or
below the corresponding 1953 week, and a decrease of

162,368

cars or

and

The Eighth

Straight Week of Decline

Gorgas, Thomas & Co., New York
City.
J 7
*
•-

parts of the coun¬

eased terms on some cor*

be 3% below to 1%
of a year ago.
Regional estimates varied from the
1953 levels by the following percentages: Midwest
South —4 to 0; Northwest, Southwest and East —1 to
Coast 0 to -f-4 and New England +2 to -f 6.
& Bradstreet, Inc., to

Sales
of the

estimated

of women's arid

children's apparel

above that
comparable
to—-6;
+3; Pacific

—10

equal to those

were

time.

Last

made in

week

week,

the

reported there were 16,855 trucks
against 13,642 (revised) in the previous

agency

this country, as

and

23,151 in the like 1953 week.
last

trucks

and
trucks in the
and 1,167 trucks in the comparable

against 2,081

week,

preceding week and 7,457

cars

and

587

1953 week.

Five-Week Period
Commercial
week

ended

Bradstreet,
casualties
152

mortality

Sept.

Inc.,
were

industrial

and

from

195

reports.
At
considerably

occurred

remained

11%

1952

failures

increased

the preceding

level in
numerous
than

when

the

below

highest

toll

was

212

the

&
weeks,

week, Dun

five
a

156.

year ago
However,

the prewar level of 239

in the

similar week of 1939.

of the week's
136

last

did

accounted for all

rise, climbing to 187 from 159 in the previous week
year.
In contrast, small failures, those involving

liabilities under $5,000,

they

not exceed

clothing sold unevenly, with

from

cline

week

ago

and

dipped to 25 fronv 36 a week ago, although
the 16 of this size in 1953. Liabilities of

significant

moderate over-all de¬
dip

from

year

ago.

ordering and delayed deliveries were prevalent m
many wholesale markets in the. period ended on Wednesday of.
last week. The immediate demand for goods was about equal to
Light

that

year

was

Department
from, the

Sept.

and unchanged from the week previous, butof heavy stock build-ups.

ago

indication

store

Federal

sales

country-wide

Board's

Reserve

index

18, 1954 showed no change from the

for

basis as

the

week

taken
ending

level of the preceding-

1954, a decrease of 5%
was reported from that of the similar week in 1953.
For the four
weeks ended Sept.
18, 1953, an increase of 2% was recorded.
For the period Jan. 1 to Sept 18, 1954, department store sales reg¬
istered a decrease of 2% below the corresponding period of 1953.
In

Retail

the

previous week,

trade

New

Sept.

York

City

seasonal weather advanced about

11,

aided

promotions

and

5% ahead of the corresponding:

period one year ago.

According to the Federal Reserve Board's index department
York City for the weekly period ended Sept. 18,

store sales in New

1954, registered an increase

Casualties with liabilities of $5,000 or more
and

„

week.

Business Failures Advance To Highest Level In

preceding week and slightly higher than last year at this

Men's

there

"Ward's estimated Canadian plants turned out 1,990 cars
770

when

Harry S. Gorgas passed away
September 23 at the age of 60
following
long.- illness.
Mr.
Gorgas
was
senior
partner
of

many

promo¬

trade in the week was estimated

The dollar volume of retail

Dun

for the latest week, ended Sept. 24,

according to "Ward's Automotive Reports," assembled an
50,101 cars, compared with 57,716 (revised) in the pre¬
vious week. The past week's production total of cars and trucks
amounted to 66,957 units, a decline below the preceding week's
output of 4,461 or 13.2% units, states "Ward's." In the like week
of 1953 132,329 units were turned out.

furnishings in

from heavy

Although living costs are essentially unchanged and incomes

1954,

an age

Harry S. Gorgas

13.2% Last Week To Register

U. S. Auto Output Drops

came

high, consumers continued to spend less than last year on cars,
furniture and some electrical appliances.
by

18.6% below the corresponding week in 1952.

spending

try, and banks and finance companies
sumer instalment loans.

13.7%

en-

nuclear
of
yet undreamed of.
gas

together to

year ago.

tions of apparel and home

Holiday Week

Loadings of revenue freight for the week ended Sept. 18, 1954,
cars or 18.2% above the preceding holiday week,

these

loan program were

Pressures towards larger

things—and who does not believe
we

102 the previous week.
,

encourage

uation may

J '

the previous week, but an increase of 718,000,000
over the
comparable 1953 week and 1,447,000,000

increasing quantities. This

tinue

will

influenced by liquidation and hedge selling

aided

kwh., according to the Edison Elec-Ci¬
7'.v!.: 7V
w "

tric Institute.

chemical
we

che^^al fuels

nur

use

with

say

materials

raw

expanded

Meanwhile,

continue to
ever

the

role:

greatlv

—

what I think will be their

industry.

years

I believe that we will
oil, and coal start to

ultimate

future,

away,

assume

distant

too

downward trend in cocoa coo- •'

The

market.

by prospects of favorable cocoa crops in West Africa
this year.
Trade in lard was fairly active with prices moving
irregularly lower in sympathy with declines in vegetable oite»
and weakness in live hogs markets. Cattle prices were somewhat
easier under heavy market receipts. Lambs showed strength early
but weakened toward the close.;
..
-

industry for the week ended Saturday, Sept. 25, 1954, "

The automobile industry

the

denials of the rumors had

Emphatic

prospect.
the

prompted

The operating rate is not *

Output Shows Mild Decline In Latest Week

power

way.

develop later in the season. Reported, sales in the £4*
markets increased sharply to 354,900 bales last week, from .244,-

major

effect

percentage figures for last year are based on annual capacity of

Never¬

answers.

was

tinued the past week,

weeks in 1954 is

according to the Association of American Railroads.

give

their

to cut down their inventories.. The easiness
rumors from Brazil
that devaluation of the

with

in¬

cannot

limited

tendency

attributed

cruzeiro

increased 109.793

downward

comparable because capacity was lower than capacity in 1954. The.

Commission

problems?

j..

in the latter part of the
purchases to actual needs and

moved

prices

roasters

showed

•*>•••• v -

solved

your

;

market

the rate was 64.0% and pro¬
the actual weekly production

ago

year ago

marked
refined sugar

The

dwindled to less than 100,000 tons.
was quiet with the undertone weak.

quota

annual capacity of 124,330,410 tons as of Jan. 1, 1954.

7..,, For the like week

only

the

r -

•

to firmer, reflecting im¬

market was steady

sugar

The industry's ingot production rate for the
now

raw

proved demand for world supplies from Cuba as the free

stepped-up pace slows de¬

program compare with that which

tion in the Canadian wheat crop.

was

of billions of dollars in

Atomic

great

supplies estimated to
be 20 years ago and what have
they proven to be? How long—or

Strengthening factors in the bread cereal included the Sept. 1
reducing production estimates and reports of deteriora- *

bet users will try to increase orders enough to

can

of poor quality Canadian wheat

forecast

depend partly upon inventories, they'll have to step

you

nearly 4,000,000 bushels of American rye. Weakness in:
influenced by favorable weather conditions and ample

marketings, also the possibility

have to buy steel for all current consumption

The amount of electric energy

was

being imported into the United States as livestock feed. Wheat
finished slightly higher than a week ago-

will have to buy at least as much as they use.
whole remains good, "Steel" observes.
This

inventories.

fluctuated unevenly and

American Iron and Steel Institute announced that the
operating rate of steel companies having 96.1% of the steelmaking
capacity for the entire industry will be at an average of 68.9% of
capacity for the week beginning Sept. 27, 1954, equivalent to
1,642,000 tons of ingots and steel for castings as against 1,637,000

the

were

corn

The

your own tremen¬

dous progress?

chase of

suggests that consumers' needs will be at least as strong as they
are

developing

Rye showed independent strength but fell sharply at mid¬
following reports that West Germany had postponed pur¬

not far off when

grains

most

week

The time

with

irregular

continued

weaker tone during the week.

generally

the steel industry is producing

inventories.

steel

consumers

earlier, and 277.35 on the corresponding date a year ago.

week

Grains

current

and

\i'iiBut what of

sustain production that well, it ought
to experience an uptrend when autos get rolling again, declares
this trade paper.
Also favoring an upward movement in steel
output is the disappearance of large inventories of steel. For
the last 15 months steel consumers have been living to a great

isotopes produced—and I believe that value

;

If the steel industry can

other

and

Irregularity In Grains

early steadiness, the daily wholesale commodity
price index, compiled by Dun & Bradstreet, Inc., turned slightly
lower to close at 275.98 on Sept. 21.
This compared with 276.54

way

only 30% less ingot tonnage.

increased

general trend of food prices

To Continued

million btu.

per

at the whole¬

level.

Wholesale Commodity Price Level Mildly Lower Due

steel demand and production can go:
the weekly magazine of metalworking.
wealth of basic strength. You can see that

one

trucks than at this time last year,

period I
likely to be

the

show

is to

sale

production in the automobile and steel
Even
though the automobile industry—the largest
of steel—is making 50% fewer passenger cars and

industries.

five

year

represents the sum total of the price per pound

foodstuffs and meats in general use and its chief func¬

raw

tion

"Steel,"

say

comparing

liveries,

only

up,

improve
rapidly. This being so, fuel costs
in
a
practical reactor can
be
nearly zero. I believe that in the
to

index

The

of 31

Output Scheduled at Increased Rate This Week

The market has

big

and lambs.

organized in August continued the mild drop

Following

Fuel

supply and price of uranium

Higher in wholesale price the past week were wheat, oats*
barley, beef, hams, bellies, butter, cocoa, eggs and raisins. Lowe*
were
flour, corn, rye, sugar, coffee, cottonseed oil, steers, hogs

7,487 recorded in August 1953.

There's

The Supply and Cost of Uranium

business

upturn in the Dun & Bradstreet wholesale food

price index last week lifted the Sept. 21 figures to $6.73, a rise
earlier. The current number com¬
pares with $6.71 at this time a year ago, or an increase of 0.3%.

month, Due & Bradstreet,
Inc., reports. With the exception of February, this was the small¬
est for any previous month this year, but it was the highest Au¬
gust total since 1946. Last month's count at 9,041, fell 3.9% below
July's 9,409, but it represented an increase of 20.8% above the

tion.

The

of four cents from $6.69 a week

car

shown in July and totaled 9,041 for the

that

say

however, difficult, of an
order
of
magnitude compatible
with the magnitude of effort be¬
ing directed toward their solu-'

A moderate

car

New

are,

the

13 of the failing businesses^

were incurred by

or more

^' (1305J

Above Week Ago

Two weeks ago, it was 56% and

makes—Chevrolet, Pontiac, Plymouth, Dodge, DeSoto
and Chrysler—are now in model changeover. - Five more General
Motors and Ford divisions will go down in October.

ply reinforces this opinion.
The
technical problems, I will not out¬

they

Wholesale Food Price Index Rises Four Cents

August netted 436,629 and 73,723, respectively.

wait¬

technical and economic problems.
All our study since that time sim¬

line

Thcn^y,

compared with 15 in the preceding week.

Industry

"Ward's" said, domestic plants are trending
and 66,000 truck completions for September.

Accordingly,

pose

pearly

$100,000

page

i'r.YWuC*

* t-

May of this year, I predicted

ing

irux*

;

that possibly five years, and cer¬
tain 10, would find us generating

per

from

7WMnerckti? tt.r.h h

■«*'

of 3% above the like period of last
12% was-

In the preceding week, Sept. 12, 1954, a decline of
reported from that of the similar week in 1953, while for
weeks ended Sept. 18, 1954, a rise of 6% was reported.

year.

period Jan. 1 to Sept. 18, 1954, an
of the 1953 period. «

above that

increase of 1% was

the four
For the
registered
-

The Commercial and Financial Chronicle

(1306)

Europe Stronger,

7 MUTUAL INVESTMENT FUNDS

The over-all economic situation

SECURITIES

7 Mutual

350

over

routine ap¬
plication to the Securities and
Exchange Commission seeking
permission to make a public of¬
fering of
its securities in the

ada,

secu¬

rities of American

cor¬

For FREE

porations.

information folder and

prospectus, clip this ad
and mail with your name and

address.

&
CORPORATION

RESEARCH

Established 1930

120 Broadway. New York

5, New York

made

331,872 shares, with total assets of
i

fund

The

corresponding
increase in the number of share-

its

ferred

intend

not

amount is

fund

cluding

states

deferred

shares.

its initial

capital of $000,000 will

The fund

then

intends to

initial

public

offering

and

mutual

diversified
securities

with

fund

the

portfolio
selected

long-term growth

of its

proposes

In its

aggre¬

non-diversified
ment

Parker Corporation

Berkeley St.,Boston, Mass.

operate

also

staff.

Corporation

investment

man¬

ended

was

Custodian Funds
BOND, PREFERRED AND
COMMON STOCK FUNDS

Mr.

over

This

can

best

measured

total

1945,

net

assets

Please send

your

prospectuses

-^-101

have

been

number

stock

Name.

Addreu.

were

and

the

Carrier

Corp.;

classes

are

SEPARATE

Group

industry

Securities,

three

were

industrialists and

However, he went
improvement hinges
rencies

ated

be elimin¬
interchange of

Pinpointing conditions in coun¬

strong

very

trends still are
Italy; Austria is

slowly recovering but
times

seven times prewar;
is upset over the in¬

Switzerland
in

crease

watches

and

tariffs

Swiss

has

Holland

its finances in order,
is

with

compares

prewar

only

wages

price level

its

changed

postwar

opments

the

well 'as

significance is
by
where industry

study of their price and value
position just released to dealers
by the sponsor, Distributors

according

Group.
estimates

current

1954

the various
pare

industry groups
Group

January.

Among the industry groups classi¬
fied

April, 1945, there
1,312 shareowners and 369,-

political problems,
economy
will

German

declared.

matter of record,

the

influx Jof

he said,

than

million

since

the

ployment

people from the East
end of the-war, unem¬

figures; in

West Ger¬
in August to
a new post-war

declined

around

800,000,

low.

"for
long-term growth
of
principal and income," the most
significant change is an improved

electronics

tronics

Television-Elec¬
followed

Fund

for

the

earnings forecast

for the Aviation

given

Figures
Fier+ronics.
about
mates.

arrange¬

ments made several years ago for

listing the Fund

the

Amster¬

dam

Exchange. He added that the
widespread acceptance in Holland

led

distribution

the

Fund's

shares in the British Isles.
Mr. Just and Mr.
will

visit

most

the

„

Heukelom

van

leading

centers in Europe to con¬

money

duct similar

distribution arrange¬

ments.

Television-Electronics
little

1948

than

assets

$100,000,
in

resources

Fund,

with

excess

^yj^lnvest
*

EATON & HOWARD

BALANCED FUND

vestment

company concentrating
the electronics field.

year's

earlier

estimate

ings and dividends
cos,

Petroleum

earlier

with

line

Among

Chemicals,

for

and

earn¬

despite the "scare talk."

The

third

group, described :as
"cyclical price action,"
Automobile,
Building,
Industrial
Machinery.
Mining,
Railroad
Equipment.
Railroad

useful for

includes

Stock, and Steel Shares.
decline

Some

estimate

from

made

earlier

one

two

the price
position shown in the study indi¬

these cases, although
in

several

ing

the

cases

probable

likeli¬

earnings hav¬

over-discounted,

been

better

group.

for

the Tobac¬

price

with
action

ahead.

are

esti¬

those "useful for

principal and
income," i.e. Food, Merchandising,
Tobacco, and Utilities Shares, the
most significant figure may well
be the virtual maintenance of the

Closed-End News

through

filed

registration statement with

the Securities and Exchange Com¬
mission for

810,740 shares of new

September 23, 1954

Managed by

EATON

HOWARD

INCORPORATED

24 Federal Street

^^y^Mutual Fund

ESTABLISHED

Prospectuses from

your

We take

333 Montgomery Street

BOSTON

SAN FRANCISCO

1924

Investment Dealer

pleasure in announcing that
GLENN O. KIDD

the above.

has

;

today been elected

Canadian Fund, a U.

Tri-Continental Corporation has

STOCK FUND

Canada

S. mutual fund, is

Vice-President

designed to provide a diversified, man¬

aged investment in common stocks of
corporations selected on the basis of

Affiliated

possible participation in Canada's growth.
a free booklet-prospectus

Get the facts in

CALVIN

are

Established 1894

of this Fund
capital
and
income
its shareholders.

long-term
growth for

upon

free booklet-prospectus

Address.

Elizabeth 3, New

Cleveland

Lord, Abbett & Co.
New York

Chicago

HUGH W. LONG AND COMPANY, INC.
Chicago

Bond Fund, Inc.

Diversified Growth Stock Fund, Inc.

request

Canadian Fund.

Name.

Inc.

objectives

Prospectus
me a

Manhattan

Common Stock Investment Fund
Investment

OneWall St., New York
Please send

Fundamental Investors,

Diversified Investment Fund, Inc.

Fund

you^ investment dealer atapfrite to

BULLOCK

of
in¬

relative stability of

EATON & HOWARD

from

now

mutual

hood of these lower

outlook

field

States.

investment

cates

com¬

closely with those made by

Distributors

to
Dr.
Bock.
and reasonable

further," he

many

The

its

West

sound

despite

well-

are

dynamic devel¬

thinking and attitudes

regarding labor-management rela¬

expand

re¬

The Chicago investment banker

organized

Germany,

who

the

in the United

condi¬

tions.

Perhaps of

interest,

investors

informed

placed

economy

sound and it has adapted

very

this

recalled that the flow of European

tries he visited, Dr. Bock reported

inflationary

said

in
are

ticated

Ex¬

asserted.

Bock

Dr.

countries

Electronics Fund abroad, stemmed

goods between nations is to be ef¬
fected,

that investors

European

—for the most part—from sophis¬

must

smooth

said

Just

cur¬

countries.

between

change controls

Mr.

con¬

upon

the free flow

vertibility,

accompanied

flected in the sales of Television-

further

on,

countries.

European

several

government of¬

ficials of the various countries.

Inc.,

classified into three groups in

State.

Gty

now
participating in the Fund
following a growing interest man¬
ifested in the American type of
open-end mutual fund throughout
Europe and the British Isles.

the

sounder basis than
years ago when
he last visited Europe, Dr. Bock
stated. While abroad, he conferred
with leading publishers, bankers,
they

solution

were

number

resentative.

Austria,

of Western Natural Gas Co.

the

outstanding.

At the end

included

earnings and dividends made for

shareowners

the economies of
Switzerland, Hol¬
land and West Germany are par¬
Program,

Italy,

"Given

sharp increases in the

series

Aid

tions,

Accompanying the rise in assets

describing
Organization *nd the shares of your

Funds.

ten

9, Mass.

quarter

num¬

He
Carel van
Heukelom, the Fund's foreign rep¬

table Parch. Co. and 24,000 shares

is $100,242,481.

Company

50 Congress Street, Boston

the Marshall Plan and the Mutual

15,400 shares of Kalamazoo Vege¬

$2,255,465, and the current figure
The Keystone

the

for

10,000

comparison with the figure at the
first fiscal year-end of the fund,
Mr.
Simonson stated.
On April
30,

ber

was

million.

FIFTEEN

vision-Electronics Fund in

result of the flow

total

Simonson

fund

Largely

of United States funds under both

$53

ten years,

pointed out.
growth in assets of

has

Sales

Aug. 1, 1944, and thus 'jits sig¬
nificant growth has been accom¬

plished in slightly

Corpora¬
number

West

eystone

pur¬

were

Vice-

Executive

Just,

has become very much American¬
ized in methods and processes, as

initially offered

was

1954

Research

tour

countries.

European

itself

31,

extended

the tremendous strides forward

search Corporation.

fund

Aug.

Paul

President, Television Shares Man¬
agement Corporation of Chicago,
departed last Thursday for a fourweeks' tour of Europe to complete
negotiations for marketing Tele¬

Stromberg-Carlson Company.

dent of National Securities & Re¬

The

20,000 shares of Filtrol
Corporation and 5,000 shares of

by Henry J. Simonson, Jr., Presi¬

formerly

three

Alkali Co.;

the first
yesterday

announced

was

chases of 13,000 shares of Diamond

the $100,000,000 level for
time

Clay

Portfolio changes for the quarter

and underwriter, have crossed

ager

of Rochester.

Research

David

and

Clay

the security re¬
search department of the Bank of
New York.
Mr. Ogden was As¬
sistant Treasurer of the University

Securities Stock Series, for which
Securities

Mr.

senior analyst in

National

the

quarterly report the Fund
the appointment of

last

tion, wdho returned recently from

announces

Landon

open-end manage¬

ASSETS

National

outstanding.

Ogden to its investment research

company.

TOTAL

Securities

that

shares, such shares

common

then

Prospectus may be obtained
from investment dealers or

200

its

will become redeemable. The fund

capital and income

The

received

has

fund

2,459,652 shares

figures for the
quarter ended Aug. 31 last year
were
$38,631,468
in net assets,
equivalent to $15.95 per share on
2,422,760 shares outstanding.

gate of $1.2 million from the sale

for

capital gain payment of
during the etirrent

Six months after

shares.

common

Comparable

make

equivalent to a net as¬
share of $20.98, in¬

per

At the quarter's end,
the Fund had 17,551 stockholders

for investment.

$51,594,738. This

fiscal year.

provided by the issuance .and
private sale of its common shares
to Templeton, Dobbrow & Vance,
investment advisers, and certain
of its clients who will purchase

imsToits

31,

Aug.

cents made

imitPOIUTEl

value

for

Stock Fund

months ended

1954 increased to

set

Massachusetts

Growth

three

the

its

issue

The

$100,242,431.

are

ASSETS

Investors

de¬

and

redemption rights. The

does

total

the

over

according to Dr. Andrew A.
Bock, economist with the National
years,

ticularly

shares, the deferred shares

having
fund

common

and

15,765,341,

now

NET

enterprises.
authorized capital stock con¬

Its

Shareowners current¬

total

assets

of Canadian

sists

and

securities

the

investments

assets.

ing

concentrating

company,

outstanding

ly number 41,054, shares outstand¬

September, 1954, for the purpose
of carrying on business as an in¬
vestment

ers^fhirrgs

total

organized

been

has

there

own
was

Since the latter date

$84,481,606.

States.

United

NATIONAL SECURITIES

has

Ltd.,

April 30, 1954, there were 39,385
shareowners and they owned 15,-

Templeton Growth Fund of Can¬

objectives,currently in¬

Europe has improved

substantially

shares ' outstanding.

141

FUND,

CANADIAN

NEW

Funds with

varying investment
vested in

of Western

By ROBERT R. RICH

SERIES

TY Shares Fund
Will Open Up
European Market

Economist States

Mutual Funds

NATIONAL

Thursday, September 30, 1954

...

Atlanta

—

Los

Angeles

Jersey

Los Angeles
San Francisco

Volume

18(J Number 5364... The Commercial and^Financial Chronicle

$2.70 cumulative preferred stock, Continued
with

According to Francis F. Ran¬
dolph, Chairman of the Board and
President

vestment

it is

plated that, subject

regis-,

tration

statement's

tember

holders of

the present

becoming ef¬
fective, at about the end of Sep¬
preferred

stock

will

offered

non-liquid

commercial

the right to receive two shares of

the

preferred stock in
for each share of $6
stock.

exchange
preferred
All

the

ferred

outstanding

stock

changed

which

will

demption

$6 pre¬

not

called

ex¬

Fundamental Inv.
Kidd
of

was

mutual fund,

J.—Glenn

Investors, Inc.,

meeting of the

board

di¬

held

rectors

here

today,

wasannounced

by Wm. Gage
Brady, J r.,
chairman. Mr.
Kidd

an(i

price

that

these

the rest of the

coun-

try with them—paid for inadequate commercial banking liquidity at that time.

stimulate savings without endangering the liquidity of our commercial banking system.
These
savings
institutions
relieve
the
commercial banks of undue pressure to acauire a large volume of
higher-yielding
illiquid
invest-

was

elected

also

Vice-

President

amount

and

other

ments,

quite
find

liquid
that

bank deposits are
full

with

convertible

commercial

covered almost

assets

into

Reserve

era!

under

—

all

through
shift to the Fed-

banks.

should be in

readily

very

cash

conceivable conditions

maturity, sale,

invest-

—

This is

To attain
this high degree of
liquidity, commercial banks must

with

content

relatively low

Diversifie d

average

I nvest

assets. Commercial banks prosper,

men

Fund,
M

Bond
Inc.
O.

Glenn

In c.,
t tan

Fund,

and

Di-

versified

Kidd

Growth

Stock

Fund, Inc., as well as of Hugh W.
Long and Company, Incorporated,
sponsor

of' mutual
of about

the funds.
funds

has

The group
total

assets

$300

million, and is
of the largest iri the country.
Mr.

Kidd,

one

interest

that

His

positions.

and

last

post

was

Director of.

Lehigh
Navigation Coal Company and 12

return

fourths

positors,

rate

de^Hs.

return

high degree

portfolios, there-

emphasize

nr-toto

rogl

Before

joining the Lehigh Coal'
and Navigation Company in 1941,
Mr. Kidd was an attorney with
Interstate

Commerce

Com¬

mission in Washington.

This

realized

freely in high

™nrtcrafyps

these

Safeguarding Financial
Flexibility
There are times when raPid
economic ' growth, or national
emergencies such as wars, necessitate
rapid credit
expansion,
Commercial banks, as partners in
our financial system, make a valu-

in-

c7/ie

borrow in

the

tive

billion

$25

been placed

PUTNAM

hold

der to

ings

promotional
thrift.

inculcate

banks

and

expand

borrowers

sys-

savings

when

provided with additional
by the Federal Reserve

This

much

branches

New

&06 ton
|
'

de-

50 State

Street, Boston

have

been

re-

these
mort-

banks

cannot

compete

with

savings banks "and other savings'
institutions,
and
yet
safeguard
their liquidity.

They provide

com-

petition by offering to pay interest on time deposits.
As a result,
*45 h'Bion of such time

fhPv hold

denosits

demonstrated in

was

when

II,

added

the

Because

objective,

these

commercial
billion to

holdings of government
within

curities
time.

relatively

se—

short

the Treasury on

any

vast

such

But each commercial
free

rate of interest, is

over-all

which

bank

justified bv the

yieldjrom assets acquired
the

assure

liauiditv.

whatever

pav

can

deno^it

desired

degree

commercial
thus,carry on a time
^Each

business

the

and

without

com-

people in

use

one

community learn

type of bank they are

the

interest

classes of banks

orderly
tions
hoods

presented

much

greater

problem.
The commercial banking system

creates

alone

credit

meet

re-

each

hew neighbor-

into

of the economy that
current savings.
It thus

powers

newer

savings

under

case

preemnted

banking,

jng

jce to the public will be

savings institutions alone could not provide,
that

system

Another

wav

which savings

commercial

complement

tions,

tion

Early in

undesirable

condi-

will
gain at the expense of the other,
but that new types of institutions
wju emerge to fill the gap, as has
happened at times in the past,

Worse
that

type

one

institution

agitation

still,

government

may arise
institutions
to

WinP^ fi-

Rnth

JjOin

npc

types

iT1cfitllf:nn-

with

lnSllIUllOns,

government

con¬

financ-

■

Through associations to which
both belong, and in other ways,
savings and commercial banks and
bankers have long cooperated for
the Pub!ic ®ood- This cooperation
bas produced many fine results,
can in the future achieve even

greater benefits for the public
Snod.
p.rtnf^hin

WvW

for

rarinersnip
"P<~>y =«<;<:? u* pq many objectives
and "Crests in common, the dif- fjjr
ferences that arise^ between sav—
*n&8 and commercial banks are,
at most> of the nature of a family
With good will on both
•
sldes.> sucb differences can readily
be ironed out and agreement
reached, since institutional intercoincide 83 iriuch more thap
they conflict.
_

Both groups of banks perform
essential services to the public.
contributes

The existence of each

greatiy to the welfare of the other,

There has been a tendency re—
cently

among

bankers

some

both groups, let us admit, to exagrivalrv

and

minimize

to
,

displace private enterprise in this

assist

our

economy.

terprise, comnetition in finance as

velop.

feared

might

The

otherwise

reserve
was

our

system of private en-

Indeed,

allowed to

nancial

institutions

to borrow large

banks to maintain their legal reagainst deposits at the re-

levels.

Under

in business is inevitable.
it is desirable. Our fi-

position

de-

amounts from the Federal Reserve

Such a

other.

This tendency,

stated

the

inflationary

they

pressures

each

it goes on unchecked, could lead

The Government and Competition

cause

ited scale

the maiW WWS in which the two
classes of banks complement and

should be expanded or created

authorities
sought to
check bank credit expansion be-

that

savings

commercial

and

nrnmnt^ cmind

1953, for example, the

monetary

quired

pj^^turn

essential sector of

other

tions.

Federal Reserve Bulletin in Febevent, some commercial bankers ruanr
1954 "
.
.
under these
might regard -it as an obligation conditions banks became less willin
the
oubH" -interest to pay a ing to ihake or renew loans."
savers.

restricted.

that

banks, and other savings institu-

the higher rate of return exmany

funy rounded financial servarbitrarily

The outcome could well be, not

Making Credit Contraction
Feasible

earn

pressure

popula-

centers, the partnership that

cjaj

serves

higher rate-

tion

treasonable

cial and savings banks in provid-

W i t hou

opera-

opening

exceed

pected

branch

the

through

has long existed between commer-

and

were-

the

quirements

necessary

the

banks had

business

to meet

extension

branches

tight, and member banks

the

both

should

by the commercial banks, the fi-

found it

not

that each

and expand

prosper

have

become

would

their personal

structures.

in^'

likely in time to patron-

m0re

nancing of the war effort would

liouidity.
This

that

types of institutions gain from the

commercial banks

homes

nancing

character

huge

promising with high standards of

commercial

meet

acquisitions of Treasury securities

these

throu^ out the country banks is in making feasible

feels

people

'are

population and the shift from
urban
to
suburban
living, both

withbut

And

scale.

today, representing funds of busi- contraction of credit, when this is
and government as well as of. f0Und desirable to combat infla-

bank

help

differences

services rendered, we find

$70

some

ness

individuals.

Common

financial obligations, and to
achieve financial security through
thrift and efficient management of
their money.

cerned

imparts a flexibility to our finan-

is not to say the commer-

This
cial

unde-

impaired to an

sound

shared by savings and commercial
banks will do as much as anything
r° make clear the community of
interest that exists between them.

cPrvw<;. With the steady increase

banks

extent.

sirable

upon

listing of the objectives

mere

service.

sayings had banks could have provided funds

savings banks, the liquidity of the
commercial banking system would

Putnam Fund Distributors. Inc.

Objectives in
A

ize the other type as well.

return comparthat paid by the mutual

thus conferred

^'provide cheXnT account nublfcobhLtion?11^ deeply
^
public Obligations,

banks

ings depositors a
able

acSav-

seek

depositors,

reeled the preservation of sound
competitive conditions, and the
a„ AA A jexerc^se.s
the

opened to lend

are

War

and long-term bonds in orbe able to pay to the sav-

gages

Habits formed

growing demand for its particular

funds largely in real estate

FUND

later.

Obviously, only commercial

invested

had

them

ceiving

school

at-

commercial banks,

even

and knowledge gleaned from
owning a savings bank account
lead to the opening of checking
accounts and the utilization of the
specialized banking services pro-

in-

their

commercial

the

far

savings

If these

posits today.
and

other,

each

spectacular fashion during World

return.

Mutual savings banks

than

of current

are

banks.

encouragement of

rate of

banking

'iTi
hv
tern, by contrast, can exnand loans
contrast, can expand loans
investments far beyond the

reserves

savings—namely,

legislature has di-

Both classes of institutions seek
to promote sound personal finance
savings bank account, either while among our people. They seek to

and

savings

mutual

u,,—a

commercial

The

deposi-

banks provide an effective incen-

A f*! ^*"1 iffl flfo rfhi rtllfiirtftliiffli rffli rt |

Seorge

the

Thus

tors.

savings

return

and mav with safety
anticipation of savings

permitted

they

rate

savings^institutions have available open new branches for but one nance
The
commercial
banks
for new investments the current purpose—to attract more savings provjde chiefly short-term worksavings they receive, the proceeds depositors and deposits.
capital
while savings banks
from the maturity or liquidation
Commercial banks, on the other help to provide long-term capital
of their old investments, and the hand, have a broader purpose, through purchasing bonds
and
relatively minor amounts they are They often want to attract new latterly equity capital on a lim-

volume

correspondingly higher

banking in-

stitutions

first learn to
facilities through a

banking

use

arrMirrmlat.inn

classes

°P®n new branches, the regulation
merest rates paid on time deSnnll'
oH,eJ,evle™ °/t
®^f P1
*■

Millions of people

ment of

tractive
dfcdlhilftblffrA

per-

long-term high-grade bonds. The
conseauent higher average yield

dividual

but

safety,

limiiditv.

mits them to invest

aid

s resP°nsi-

arctAng ?n such
P13,8 38 applications for new
charters, applications to

tivities-^—to

their

for

*iPer"

educational and

selecting invest-

o^romo

and

ment

„

basis.

comple-

banks

„

current volume of savings.

thev

fore,
w

u;,:Z ..A

power

commercial

Lntc ^ 3

to maintain competion on

Educational and Promotional
Activities

while they compete.

Mutual savings banks and other

now carried on by our sav->
ings institutions, much of this
essential flexibility would be lost.

ness

r>~

ments, when needed, beyond the

time

savings banks, because
they receive savings deposits only,
liquidity.

nur

intendpnt

de-

Mutual

safeguard commercial

bank liquidity,

do not rcauire such

major

and

low

relativelv

profit-

or-

manner

Savings and commercial banks
vided by commercial banks.
both
are
concerned
with
the
Mutual savings banks have but sound financing of real estate, for
one overriding objective in their they have
a
large stake in fi-

three-

liabilities

ably, and

work

banking

able contribution to its over-all
efficiency by making possible an
expansion of loans and invest-

pay no

deoosits

almost

for

and

average

demand

their

deposits

vestments makes possible the pay-

subsidiaries.

the

account

various financial and management

President

nevertheless, because they

ments

associated for
thirteen years with the Lehigh
Coal and Navigation Company in
was

rate

This two-way flexibility, so desirable to a healthy economy, is a

In their educational and promotional activities, as well as in
the exercise of their basic eco7
ments that would put higher-cost nomic functions, mutual savings

healthy commercial
banking system.

ings institutions, provides a rate
of return that will effectively

savings

commercial banks to engage in
any considerable part of the busi-

securities, mainly

associations.

i0an

fj'uch

them.

savings

mu-

growing

well

alone

and

business

eliminate unsound and
destructive
competition"
among'

savings banks,

companies

banking system, as
of other specialized sav-

The existence of

savings

short-term,

contribution
of
savings
banking to the sound functioning
of our financial system.
Were

tual

60% of deposits, demand and time,
When we include short-term loans

Vice-President

elected

Fundamental

out impairment of their liquidity.
Such an attitude was.not uncommon among com mercial bankers
in the 1920's, it
is well to remember.

high

home

ioned by the steady flow of funds
into mortgages and bond investments from mutual

the

ganizations

plant

insurance

the

finance

late

long-term

and equipment, and so
employment and business
activity, were its impact not cush-

regardless

for

upon

whether this could be done with-

banks—and

thrift,

stimulate

effect

adverse

needed

Today,

Glenn Kidd V.-P. of
ELIZABETH,

acute

and government

re¬

Oct. 31, 1954.

early

were

The

assets.

banking troubles
1930's, / culminating

had

markets

building and business investment

the American commercial banking system can rightly
boast of very high liquidity. Cash

for

the

in
holiday of March, 1933,

the bank

$2.70

new

have

Commercial and Mutual Savings
Banks Complement Each Other

contem¬

the

page

funds

iri-

closed-end

the

company,

could
upon

from

value of $50.

par

(1307)

well

regulated

industry
and

to hampering results,
It is high time that
kincj

„0„.flniijnri

arguments

ended
nt

through

mmmnn

nh-

a^er
g«
functioning jectives and interests, and through

constitute

state super- adjustment of the comparatively
is the duty of the mjnor differences that have arisen,
legislatures, not to limit, but to
chnnid
ho
roadilv
achieved
foster sound and healthy competition. That this is so is manifest in bv free and open discussion beour New York State banking laws, tween
representatives of each
The State of New York, in its dec- group provided both groups recunder

vision.

Federal

laration of policy set forth in its
b»nH^ law, directs the banking

first and last

ogmze that tney are, ursi ana iasi,
restrictive credit policy department to supervise and regu- partners in public service.

The Commercial and Financial Chronicle

(1308)

Continued from page 5

ruptcy on the part of that government, and that since our government is not fiscally bankrupt,

Outlook ioi Sound Money in U. S,
tered

Federal

Reserve
banks with powerful special priv¬
ilege without corresponding re¬
sponsibility—with the right to is¬
sue promises to pay without being
called upon to redeem them in the
and

Treasury

What Features of

fiscal

either

evidence

Our

j Under

'or

law.

eign

thoughhardly

standable,
mendable,

com¬

to the attain¬

lies in

redeemable

currency

(3)

sound

But

and

leaders

business

is the

common

mon

find

addicts
In

just

both

of,

do not
drug

relinquish their drugs.
cases,
wise leadership,
.

sufficient

officials since

the

government

our

offered, and offer,

have

vigorous de¬

irredeemable

for

fense

ists, and Communists.

the

dictatorial
best means

version
ments"

States

our

atively steady since 1951, we are
in a state of nice economic equilibrium; and precedents fail to
suggest that such a steady price
level is likely to continue for any
great length of time.

We had

relatively steady price level from
1923 to

Then

October, 1929.

came

the economic crash.

doctrine

monetary

propounded by Treasury

being

officials
the

1920's which

much

erratic

(For

ex¬

from

January,
1923, to
1933,
inclusive,
the

the

same

that

ended

the

catas-

trophe beginning in October, 1929.

that

our

period

Our people

difficulties

that

all

are

subjected to

arising

holders

from
of

the

dollars

demand

their

redemption

gold.
Our

people

are

deprived

our

They

were

seems

to have been

con*

the monetary ,system .which is
now defended, protected, and fos¬

and

sharp or
in • the

purchasing

power of our dollar
seem
to
be
pursuing a

wouid

that has little or

justification in the light of the standcourse

science.

should also

ourselves that those

remind

eco-

far

un¬

that this

happen

that

are operating outside
of
science; inasmuch

the
as

science deals with degrees of prob-

ability and recognises

law of

necessity in the recurrence or continuation
of
any
observed' se-

Furthermore, the question arises
whether

iearne(j

much

have

Reserve authorities issued
ment

the
not

the Federal

1939 when

fact

was

respect

management of credit that
known

summary of which' is that "Experience has shown
that (1)
.

cannot

the

controlled

amount

and

by
cost

(2) the Board's control
of the amount of money is not
complete
and
cannot
be
made

complete; (3) a steady average of
prices does not necessarily result
in

lasting prosperity; and (4) a
steady level of average prices is
not nearly
as important to the
people as a fair relationship between the prices of the commodithey produce and those
they must buy."

a severe

crash

be compelled to face

economic readjustment

progressive depreciation of our dollar, the unanswerable question is whether our govor

ernment officials will

understand

the practices it permits and invites — particularly monetization

budget is balanced.
We
conditions, 1923-1929—

and, in addition, the benefits of a
redeemable

then

the collapse.

nouncements

and

And

currency.

Treasury protoday in respect to
sound currency

to the

meaning of a stable
index of prices would seem tosuggest that the experiences of 1923as

present

And,

key

officials,

Treasury

moreover,

today under the
inherent in

gers

for

Still

effect

ttle

con-

pursue

course

fol-

lowed by so many other countries
—that is, repeated devaluation of
the currency. In the light of the
failure of our government officials
to reveal

good understanding of

that have been observable in practically every country since the
early 1930's, there would seem to

statements
have

overcome

is proof of

tinue to misunderstand and,

additional danirredeemable

are

in the late 1920's, to

that

con-

the lessons in the monetary field

further,

emerging,

whether these officials will*

are* laboring

currency.
.

of Federal debt—to abandon this
tool of the morally bankrupt or

sequently,

business

last
cy-

high degree of

eco-

be little ground for hope that our
people are going to escape a se¬
vere

catastrophe arising from the

absence of

high order of

mone-

which is

—

subtle, but potent,
a government ob-r
tains effective control of a people
there is apparently relatively

*»

by which

little obstruction

socialism or
govern-*

similar variety of a

Our

be coming close

V *

mentally-managed economy.

capitalists

seem to

to the course described

winch

dhey

by Keynes

ultimately be

*
,

this nation by

instruments
government of their own making,^ 1"and a press of which they are the***proprietors.
No

opponent

despotism
human

government

of
no

advocate

can

and

freedom

effec¬

tive defender of that freedom un¬
less he first aids in the establish¬

ment

redeemable

irredeemable

natural

is the
such .freedom;

enemy

cialism
in

in evil of

so¬

government despotism

similar

some

currency.

currency

it is the companion

Human

form.

freedom has redeemable currency
its natural and

necessary

com¬

panion.
Should

What

We Desire

»E'ach

Each

of his

Sound Currency?

person

expected

can

to do what he chooses in the

light

understanding of, and atti¬

tude toward, the issues and prin¬
ciples involved. Some enlightened
and patriotic

sufficient

individuals

influence

have

may

with

of¬

top

ficials in our Federal government
to

be effective in

deemable

ple.

behalf of

for

•

peo¬

individuals

most

sound

re-

our

who

'*.

are

its

currency

But

seek

currency

well-grounded

and

respect

nature

probably can exercise relatively little influence in its be-

half, acting alone.
without influence

govern-

perhaps most ef-

fective

if he

organization

member

which

sound currency for
the
United
States.

seeking

the people of
The

Sound

Currency League of 1891-1901 exIercised a fine and apparently ef- '
fective

gold

influence

behalf

standard .which

tuted in 1900.

was

insti-

The Gold Standard

League, with headquarters at 1 ;
Lloyd Ave., Latrobe, Penn., has .
been trying to organize leading
in

the

currency.

1933,

omists,
mists'

group

fight for redeem¬
Since November,
of

organized
National

monetary econ¬
as the
EconoCommittee

(12)

They

(13)' They live in a situation in
privilege without corres¬

nomic equilibrium.
-

It is also

health,

mountain

confronted with

common,

and
debt

but unwise,

ignore

which

can

the
act

sibility

out

pointed

others who reside in this country;

and altogether undone by their own instruments,
uine dangers because they
can,
governments of their own making,
and often do, obscure or hide serf- and a press of which they are the
ous
economic • maladjustments., proprietors.
Perhaps it is his-

crushing burden should the
ponding responsibility is granted value of assets, profit margins, and
Federal Reserve banks
and
the opportunities for employment conUnited States Treasury, a practice tract to some distressing degree,
that is not tolerated in our body Our common use of aggregates in
of contract law applicable to all
our statistical
data contains gen(14) They are deprived of the
privilege of living under a govern-

:■*

ment that is not practicing moral

For

bankruptcy in the field of

growth in savings but

to .the
often or
In respeet to this last point
per¬
generally* neglect to point; at the
haps it should be-emphasized that same time," to the wblume of conthe

use

<of

money.

irredeemable- bills

credit

by: a government and its
authorization to banks to issue-ir¬
redeemable

promises to pay- are
evidence .of fiscal or moral bank¬

example, 'we

sumer

point
we

and other credit outstand-

League, if they were com¬

rency
bined.

roughly with the old Sound Cur¬

agement of a people,
Said he in his book, "The Eco-

which

nomic

internationalism

money.

real

•

The individual
among

ment officials is

An Ominous Possibility
It seems reasCn?b!y clear that

possibly and

are,

of themselves "and of

timate rtiin

able

orobably shall

•

left to our con-.-

into

march

tinuing
some

citizens

tary statesmanship,

drug

the

of the most

one

means

ties which

Should

addicted

oughly

nation have become thor-i

irredeemable currency

state-

(on March 13)

prices

as a

since, apparently,

connection. And
we

recognize

not

does

;

tinwittid^y,rpre|?aTing for*the ul-

of events,

quence

—

nQmic forecasters who go so

assert

posed to socialism

ominous pos- Monetary Policy, with headquar¬
ters at One Madison Ave., New
in 1920 by
York
City, have been fighting
practice among us these days to John Maynard Keynes in respect
employ a relatively few statistical to Europe before he reversed him- steadily for a redeemable cur¬
items dealing with wealth, proself and became an advocate of rency and one sound in all other
duction, income, and so on, as in- irredeemable currency
and his major respects. Both groups,
though separate,, would compare
dicators of the state of our eco- special brand of government man-

accurate and

all

system of irre¬

enterprise

who insists that he

rency

are subjected to in¬
misleading legends—
that is, promises to pay—on our

pub¬

Among the persons
those officially identi¬

Treasury.,

which is obstructed by the use of
irredeemable currencies.

Depart¬

1953,

freedom

benefits

"Interlocking Sub¬
-

the

depreciation

Federal

learned

(10)
of

;

recession

progressive

sufficiently well the part played
by an irredeemable currency, and

those

irredeemable cur-

A defender of

business

The currency is said to be sound
if the price level is stable and the
had

which

sentials

other than central banks, not doimestic holders only, lack the right

(Jenner Subcom¬
Committee on the

trolling./. They recognized our
.system of irredeemable currency
as *4n keeping with the desires of
the- Communist Party
airid that
:

because

others, were freely redeemable.
(11) They are deprived of the

deemable currency, and their in¬

fluence

that,

of the Senate Com¬

Communists, in the United

advocates

of the
dollar

hope

big
of a Governmentally-Managed Economy of which an
irredeemable currency is an in¬
separable part.
...
the

Death Valley

their

credit

of money;

belief

may

that

wholesale price level has been rel-

joined

to con¬
have in fact
parade into the

control, and understanding of their
proper
use,
to prevent - a sharp

sufficient

instruments

changes

The

fact

1182, it is stated
official memorandum sum¬

There would appear
be little evidence to support the

es-

(9)

ernment, to a policy in keeping
with the desires of the Commun¬

fied

program

that

clude

granted that

pursuing a monetary
that can lead to either

are

relatively steady since 1951 that

(November,

.were

our

Could be had if our currency,

Government

Party."

power

which it also invites.
We

endorsed by
dollar 36 monetary economists (April 10),

of this Administration is in its

the

statements
allegedly
Whittaker Chambers that
"The persons listed below .
.
have arranged among themselves
a
program committing this Gov¬

ist

which
invites.

„

marizing

listed

currency

(8) They are deprived
right
to
exercise
their

made by

1929 have no lessons of value

lished in 1954), p.
in an

fosters or in the form of
progressive depreciation in the

currency

foreign trade and investment that

on.

irredeemable

cles; and the widespread implication is, as in the 1920's, that since
the wholes!? price level has been

the

Judiciary)

devaluations

ranged from
1.44 in April and May, 1931, to 6.32
in February, 1933.)

mittee hearings

mittee

justments which

crash

malad-

economic

natural compahiOttS.

are

Part

the

economic

severe

arising from

avoid.
the

appear

during

Wherever

An irredeemable cur¬
and impairment of human

freedom

could

what constitutes

tatorship.
rency

lesson

should

April to June, inclusive,
in 1923, to 15.83 in October, 1931,
whereas the percentages of our
gold stock in domestic circulation

destroyed.
It
of government dic¬

weapon

That

which
enough

months of

is practically

intelligent

came

people.
With such a currency,
a
government can manage and
bleed the people until their econ¬
omy

experience

gold exported
and earmarked for foreign account
ranged from zero during the

currency

force,

irre¬

(7) They are made the victims
a diseased bloodstream in their

February,

repeated

ample,

ir¬
currency
provides a
government with its
of obtaining control of

of military

use

subjected

than domestic demands.

they have control of a national
government there one finds irre¬
deemable currency.
Aside from
redeemable

mands for gold have shown them¬

government planners, Social¬

are

percentages of

elements which

Powerful

invited

irredeemable

selves

mone¬

tary system.

the

to the
agitations for, and risks

They

right

early 1933 to obtain

reform in

needed

ter

bit-

given
foreign
central
banks and governments whose de¬

number

emerge,

forced

claims against our gold while such

is required. Such
has existed among
our people in behalf of relinquish¬
ing the drug of irredeemable cur¬
rency has not had the support of a
masses,

leadership

and

tion, it seems reasonable

is ophigh degree of government management
in some other form merely reveals

number

bounds

Should such leadership not
then our people may be
to relearn a very old and

economy.

which rises above the inclinations

pi the

involved

are

and

common

movement

mass

permits

currency

They

(6)

movement against irredeem¬

able currency,

irre¬

deemable currency.

are

Jfrom their addiction to the

drug of irredeemable currency.

purchasing

possible

conforming to the com¬
pattern.
There is never a

mass

spending which

risks of the great unsound ex¬
pansions and consequent contrac¬
tions in business and prices made

bankers.

respect .to rescuing our

appear to take it for
we
have developed

consequence.

(5)

the taste of the

people

of the
orgy of gov¬

form.

of those groups once a

deprived

re-

have been without such lead-

form

*V
are

the

will effect

and

oft-repeated lesson through

(4) They are subjected to the
dangers of socialism or govern¬
ment dictatorship in some similar

reaction
nation gets
intoxicating drug
irredeemable currency.
Our
this

savings-

invites.

Apparently the majority of the
press is opposed to any move to
deprive our people of the drug of
irredeemable currency. This seems
to be true also of the majority of

■

the people's

use

They

deemable

honest money.

and

their

for

protection against

to the resumption of 1879,
Vfl^le and willing to lead the battle

■

inherent disad-

its

ership
people

ex¬

right—those

ernment

,rpuor
for

safety

purse.

people of the United States have
no John Sherman in Congress, as

•*;'/ /'•

—

property

government's

leadership in the- House or Senate
in behalf of such.a .currency. The.

For

are

irredeemable

popular, demand for
sumption.
Drug addicts are rescued .by informed and tough doctors.
Thus far since early 1933

our cur¬

(2) They have been deprived of
major direct power over the

strong

the absence of.any

y.'VV

gold.

Another obstacle

enjoy if

people

our

Such reform does not arise

•

from

they

not invest in gold or in claims

may

this nation..

seeking

the people of

over

which

from

and

can

form.

deprived

are

redeemable.

•

valuable

bullion

Our people are deprived of

(1)

reason,

power

ample:

for one, why
Treasury and Federal Reserve
authorities wish to retain this im¬

ment

people
benefits

rency were

the

proper

central

our
various

could and should

body of contract
provides an under¬

who

re¬

taken

Those economic forecasters who

Future*

thp

vantages and dangers some political leader or leaders must emerge

dealing with for¬
banks and govern¬

ments,

that

rescued

currency

our

But

wnat or trie future.
;.
The history of resumptions in-

domestically and

standard in

with the basic concept of honesty
written into

People?

stricted international gold

conflict

case—and it is in

destruction, waste, and

death is hardly to be

good measure of economic health.

dicates

Denied

our

currency

bankruptcy on the part of

our

monetary
system,
involves an irredeemable

which

government—moral bankruptcy

Better Mone¬

System Are

tary

ernments).
moral

•

foreign central banks and gov¬
Such an arrangement

for

bank-'

moral

ruptcy.
What

;

(except

unit

monetary

standard

case

activity

productive

which is compounded of activities
including production in high de-

follpws that our practice con-/ gree for

stitutes

by the present Administra¬

tion and by our Congress.

index .of

Thursday, September 30, 1954

...

has

been

members" of

nomic Consequences of the Peace'*
these two groups above all others
(Hareourt, Brace and Howe, New
York, 1920), pp. 237-238: "They who, in recent years, have carried
on

[the capitalists] allow themselves
to be

for

ruined

the fight for a sound currency
this nation. The only promis¬

ing

way,

apparently, to fight for

sound currency in this country,
aside frfim' the use of such influ¬
a

torically true that no order of society ever perishes save by its
own hand." •«.
'
As one observes the nature of .proper ¥ government * officials u id
the controlling movements in this adopt- a- wise course in the field

ing and to face the fact that it iscountry and the activities of those
those in: debt who can * quickly - influential people: who have acfind themselves* in trouble and cepted and are defending an irspread their trouble.to others. And,, redeemable currency .for our na¬

X
ence as one
may have with key
goverrrment officials, is\to aid one
of, or both, these organizations i-?..
which endeavor to persuade, .the ,H*

of currency. p
*

V As-

our

attemptv to !estimate the

future and to make a;

wise hse of

savings,J the current picture^,

^Volume 180

Number 5364

The Commercial and Financial Chronicle

(1309)

described
to

seem

holds
with

for

cannot

the

future

what

that

and

two

the

would

that

know

should

accurately,

suggest

possibly

invest

that

the

CONSOLIDATIONS

On
of

President

NEW

BRANCHES

OFFICERS, ETC.

REVISED

Bankers

and

Bank
died

-:.A

servatism—an
our

savings.

course of

effort

conserve

of the two prospects as to the fu¬

*?
'

ture, to the exclusion of the other,
pursuit of the theory that we,
*;
v
shall have stable prices or eco¬
-A nomic stability for * considerable
period in the future, would seem
to be a case of gambling. ;
;.
\-;
or

■

Sloan

Bankers

York,
of

Colt,

Directors

increase

President
of
Company of New

Trust

dividend

the

that

announces

voted

Board

dernity is the theme of the interior
as

well

Qur

Fundamental

der

conditions

competition,
I toward
-

;

known

free

the Fifth Avenue scene."-

state

Sept." 21, The latest in mechanical design,
quarterly furnishings,
a hd < architectural
the company's capital techniques have been employed to
share to 60

enable

the

to serve its
cents a share, beginning with the customers quickly and efficiently.
dividend payable Oct. 15 to hold-, On the main floor, only 10 feet
ers
of record on Sept. 30, 1954. behind the
glass wall, the bank's
This change will result in an an¬ vault faces Fifth Avenue. "Bank

economic equilibrium.
Managerial State and irare

enemies

equilibrium just
enemies of mankind.

are

Ohio

Valley I. B. A.
Group Elects

COLUMBUS, Ohio —The Ohio
Valley Group of the Investment
Bankers

Association

share,

increase

of 20

share per annum.

the

crease

voted

dividend

the

latter

when the rate
to

$2.20

per

cents

The last in¬
rate

was

part of

1952,

raised from $2

was

America

The Federation Bank and Trust

the

number

its

from

200,000 to 290,000, all of the par
value of $10, it was announced
on Sept. 27 by Thomas J. Shanahan, President. A special meeting
of stockholders to vote the broad¬
ened
at

capitalization

will

held

the

bank's
main
office, 461
Ave., New York City, on
Oct. 13, according to Mr. Shanahan. Among other matters to be
acted
upon
at the meeting, he
said, will be the proposal to merge

Eighth

Federation

Company

Safe
Deposit
Federation Bank

into

and Trust

Company. Pointing out
present authorized capi¬

that the
is

tal

consisting

200,000 shares of stock/of the

par

$2,000,000,

value

$10 each, Mr. Shanahan

said that the proposed action will
involve the issuance of 90,000 ad¬
ditional

shares.

are

these, 40,000
will be distributed pro rata to
present stockholders " as a
divi¬

elected

Powhatan

Conway,
Co., Inc.,
Louisville, Chairman for 1954-55.
James Chandler, W. L. Lyons &
Co., Louisville, was elected Secre¬
tary of the group.

the

Bankers

Bond

v"'[

♦

Sept.

bank

basements,"

said.

Mr.

yesterday (Sept. 29) offered to
public 75,000 shares of 4.96%
preferred
stock
of
Texas
Gas
Transmission Corp., at par ($100
per

share) plus accrued dividends.
the

sale

net

the

proceeds

new

from

the

stock

preferred

$6,754,552 will be used to pay the!
corporation's
notes
payable
to
banks and the first mortgage

note

subsidiary^and the balance

will be added to the corporation's

been

could

service to

improve

our

With

level,

tomers

safe

can

adjoining

thought

vault

our

deposit

000,000,
on

their

use

vertisers

west

Fifth

43rd

floors—lends

small

The
The

size—

distinction,

sure

receiving

rapid

handling

tellers
of

as¬

banking

transactions. Tellers conduct busi¬
ness

over

grillwork

any: kind, i On
the
is 120 feet of teller

floor

second

counters, free

open

counter space for commercial ac¬
counts.
The
architectural high¬

light of this floor is a 70-foot
long, 16-foot high, six-ton sculp¬
tured

metal

backdrop
fices

for

room.

serving as a
main banking

third floor

personal
well

the

for

tions

screen

loan

are

of¬

transac¬

bookkeeping
departments, other clerical facilh
ties and employee locker rooms.

Gas .Transmission

Corp.

pipeline
oast

operates a natural

and

extending

system

Texas to

western

gas

from

Ohio with

4, daily delivery capacity of ap¬
proximately 1,069 million cubic
feet.

Approximately 87% of sales
made

were

public utilities

serving communities in Arkansas,
Mississippi, Tennessee, Kentucky,

Illinois, Indiana and Ohio and to
Texas

Eastern

poration.
In

charge of the
Department of

City Bank

vacation

salaried

Transmission Cor¬

credit

for

purposes

travel

will

wage-earners

and

people

stated

will

co-operate

with

the bank's

from

"Travelplan." Amounts
$60 to $5,000 may be bor¬
The entire transaction

rowed.
be

arranged

the

can

in the ticket offices

carriers

through

their

agents.
♦

♦

New Yorkers
had
their
first
inside inspection of Manufacturers
Trust

glass

Company's

and net income

of $4,873,478.

for

Room

well

out-of-town

too,

the

and small kitchen.

room

vis¬

Board

lounge, dining

bank

new

Sept.

business

In addi¬

gatherings

and will be
available as a meeting place for
neighborhood community groups.
The

Manufacturers
traces

pany

back

tion- of
then

its

1812

the

its

Trust

Com¬

earliest

Phenix

growth

origins
organiza¬

the

and

Since

Bank.

has

paralleled
that of New York City itself and
today, with total resources of
nearly $3 billion, it serves over
million

customers

ropolitan

New

York

the

Met¬

area.

and 7, the building will
remain open for business and
fo^

public inspection until 9
♦

p.m.

voted

favorably

Bank

solidation

Company of Tuckahoe

Westchester,
capital

White

stock

and

not less than

branches,

will

open

largest of with the Manufacturers Trust in
metropolitan September, 1936, and during
for business World War II served in the United

States

of the

Monday, Oct. 4. The exterior
five-story structure is made
entirely of glass set in polished

Banking,

aluminum frames.

bank's

Fifth Avenue at 18th Street, New
York City).

said

panes ever

this

Through what
largest glass
installed in a building
be

the

country,

passersby get

modern

Fifth

interior.

inviting
and

Mr.

look

and

"These

wideropen,

turn

Army.
and

18th

it,

graduate

Institute

assigned

York

(130

President

announced

that

The

assets
the

undivided

for

provides

the

will

Consolida¬

that

the

main

consolidated

White

which is

one

asso¬

Mamaroneck

Plains,

the

offices

Y.r

pres¬

ently operated by the Westchester
Bank & Trust Co.

Mr. Tyner will

be President of the National Bank
of
Westchester and Oliver W.

Birckhead,

will

Chairman

the Board.

The Springdale Bank and Trust
Company of Stamford, Conn., a
State member of the Federal Re■

serve

System changed its title to
The Security Bank & Trust Com¬
pany
an

i, according to

Sept.

announcement

by the Federal

Reserve System.

each

bank

\yill

associa¬

tion and the consolidated

associa¬

tion

will be responsible for all
liabilities of both banks as of the
effective date of consolidation.
Bank

^profit-sharing plan for

ployees

consolidated

Westchester

profits

Trust

The

em¬

Pennsylvania

Company for Banking and Trusts

providing
nual

combination

cash

an¬

and

savings t benefits
approved on Sept. 27 by the

xras

board

directors

effective

come

to approval

and

this

will

be¬

subject

year,

by the Internal Rev¬

Service.

The

Company will contribute accept¬

enue

able

proximately 2,000 employees. The

assets

of liabilities

excess

having a book value of at least
$4,825,000. The First National

announcement

Bank & Trust

years

Company of Tucka¬

hoe will contribute
acceptable as¬
sets in excess of liabilities
a

having
book value of at least
$825,000.

Prior to the effective date of

solidation
clare

neither

bank

con¬

shall

de¬

dividends.
The shareholders of The West¬

chester

pay

any

Bank

will receive

capital

stock

Company

pf the consolidated
is

the

rate

value stock

shareholders
Tuckahoe

shares,

now

tional Bank

held; and the

The

& Trust

will

for

First

32,500

the

rate

each

value stock

Na¬

Company of

receive

which

held.

now

$20

Such

shares of capital stock of the con¬
solidated association shall be is¬
to the

respective sharehold¬

of both banks upon surrender

respective
shares

banks.

their

stock

respec¬

their

fractional

stock

common

the

Association shall be issued in such

exchange, but in lieu of
tion

employee
ble

otherwise

issuable

the

issued

any

which

there

holder

frac¬

would

shall
such

stock thereto entitled

ferable

showing the

Order

Form

non-trans¬

will

his

means

wjhich such stockholder

instruct the

days

after

may
Association, within 30

the

consolidation

Sept.. 22 bank's directors voted

comes

add

chase for his account the additional

effective, either (i) to

our-

upon

eligi*-J

the

plan.

of the fund

percentage

which

same

percentage

for all

members.

will

to 6% of the bank's net

sum

receive

each

year

operating earnings before income
taxes, provided net earnings after
taxes

a^id

exceed

expenses

6%.

of the bank's capital funds.

One-half

each

member's

share, but not more than 6% tof
his salary, will be paid to him in
cash; the balance will be placed
in
trust, invested and paid, to
the member with all

accumulated

income when he retires.

em¬

ployee lacking the three-year eli¬
gibility qualifications will receive
the cash payment but not the trust

benefit until
ber.

be becomes

mem¬

The trust feature of the

plan

will enable employees to accun>u,-

late savings for retirement in ad¬
dition to proceeds from the pen¬
sion

plan

bank.

now

member

case

may

effect

emergency,

draw needed

the
a

sums

from his trust fund before retire¬
ment.
Cash payments from the
fund

will

made

this

year

December, and in future yea^S'in

The "bank

January.

based

profits,
will

be¬

based

salary,

every

ap¬

Members

early

three

membership

will be the

that

is entitled,

that

says

with

has

continuous service

for

such

holder

bank

Each member's share

share for each share of $10

one

par

Trust

which

association,
of

190,000 shares of the

4100,000 to surplus, by a

such

sales

Agreement

Aveune,

fractional share interest to which

Kleeman,

City,

the

office

Colonial Trust Company

New

day

night; into A giant showcase,"
Flanigan pointed out. Mo¬

Street

Arthur
of

American

Avenue

clear view of the

walls give the bank

the

Checks

the

$650,000.

certificates

and

sold

par value
The surplus will be

$10 each.

$2,775,000

tive

111

Plains."

stock ;will be $2,225,000
into
222,500
shares' of

divided

Mr.

office,
newest
Manufacturers'

entitled

ciation will be at 31

that the

association will be
national banking association un¬
der the name of "National Bank of

cancellation

associated

will

interests.

also

office

consolidated

and

became

The

Tyner,

Sept. 23,
by Horace C. Flanigan, President.
Hallam

by outstanding

proceeds of all

tion

consolidated under the Charter of
The First National Bank & Trust

sued

mailed promptly to those entitled

The Westchester Bank & Trust
Co. and The First National Bank
& Trust Co. of Tuckahoe will be

ers

announced

promptly

thereto.

said in part:

The

Association

stockholders

the

789.

page

President

York,

was

the

appeared

Aug. 26,

the

interests

fractional

A summary of the essential
fea¬
tures of the Agreement of Con¬

All

e s

Westchester, White

the plans to consolidate
in our issue of

vest

s a

by the As¬

by the Association for account of

Action
on
the proposal
will be taken by the
stockholders
on
Oct. 26.
An item
bearing on

made

represented

fractional

Plains.

preview tour of the building
by Horace C. Flanigan, the Trust
Company's President. The branch
a

Bank

manner

stock

the agreement

ufacturers Trust Company of New

Assistant Secretary of Man¬

Trust

institution

National

that

for

practicable after the expiration of
said 30-day
period, all shares of

to consolidate the two
institutions
under the name of the National

1.3

Appointment of Mark F. Hallam

Sept. 27
&

will

determine.

may

Trust Co. of Tuckahoe, N.
Y., have
■>

par

Fifth

such

Rochelle, N. Y., that

First

five-story

22,

New

and • 43rd
Street
when
members of the press were taken

bank's

tl\e company had total
operating revenues* of $63,308,654

and

Here,

Oct. 5, 6

1953

office

New

working or! re¬
siding in New York City.
Air
lines, railroads, steamship compa¬
nies, bus lines and travel agencies
it

pany President, /the Vice-Presi¬
dent in Charge of the Fifth Ave.

Painter,' itors.

(ii)
pro¬

accountVof such
stockholders at such times and in

?. I' T-'

the Westchester Bank

common

the

and

story 500 Fifth Avenue Building.
On the first floor, 17 positions for
and

purchases

sociation

by Ralph T. Tyner Jr., President

the

standing among such sky-scrap¬
ing neighbors as the next-door 59-

paying

He-

made known on

was

and

Street,

ticable,

r He
was; a
Vicetrustee of the Great Neck

;

the

its discretion, and to the
extent
that this may be deemed
imprac¬

...

remit

determined by the Association in

In-1922 .from'

-jvY;

cus¬

Avenue.

building's relatively
five

and

Library;.;

and

currently prevail¬
ing market price of the shares as

Association.

President

account

tion to the extent that
they can
be set off against one another on
the basis of the

Assistant

■_

fractional

him. Within such
30-day
pdriod, orders for purchase, or sale
will be effected
by the Associa¬

had

promoted

his

ceeds to

'Williams .College., In 1946 he was elected
President- of the New York' Financial Ad¬

directors

plot 100 by 125 feet.

entrance

-an

was-

graduated

was

the

building

years

named

and

Huckel

Co.

boxes

air-conditioned

just

was

1945

i..,.Mr.

booths with
maximum convenience.". The $3,-

main

the

coupon

certifi¬

interest for

sell

his

advertising and publicity
Equitable and Chase, which merged

cus¬

last

issue

Neck,

53 years

was

him,

1952 to Second Vice-President in Chase's
advertising and public' relations " depart¬
ment.

perfectly willing to part with

tradition wherever

the

1930/;. He

have

the

available

owns

Andrew

Avenue

general funds.
Texas

made

was

installment

and

Great

and

cate for such share to

Huckel

In'

the

Flanigan

"But in this branch

tion to its regular use by the com¬
inauguration of a
pany's Board of Directors, the
"Travelplan" whereby low Board Room will
be used for other

new

the

♦

Credit

National

cost

Dillon, Read & Co., Inc., headed an
investment banking group which

Vice-President
The

Trans. Pfd. Shares

Announcement

York,

Offers Texas Gas

sociation)

National

Mr.

Company

For

traditionally located in

dend,/ enlarging their collective
The fourth floor will be used for
holdings by 20%.
The
the bank's real estate and mortgage
remaining 50,000 shares will be
department and will afford room
made
available
pro
rata to all
for expansion as necessary.. The
stockholders at the price of $20
top floor has offices for the com¬
per share.
■:»

Personal

Dillon, Read Group

(the cost of which shall be
paid by such stockholders within
10 days after notice from the As¬

occurred

Chase

York.

en¬

full share of such

one

stock

Huckel- joined
the advertising ' de¬
the Equitable Trust

for

'current
P. M. Conway

the

home

street

Company of New York, plans to
increase
its
authorized
capital
from $2,000,000 to $2,900,000 and

the

his

1924.

Cashier

company

vaults

tomers.

annum.

affairs

economic

they

nual dividend at the rate of $2.40

redeemable currency
of

fair

and

of
New

specialized

stock from 55 cents

constantly

press

that ideal

Both the
;

Needs

The fundamental needs, among
others, of this country are for a
sound circulatory system-and the
opportunity for the forces of supPly anddemand,;, operating ; un¬

;

title him to

partment of

exterior of this newest

arrival

Mr.

the regular

■

age. From Great Neck advices to
the New York "Times" we
quote.

con¬

The choice of either

fractional interest required to

Huckel, Second Vice-

Long Island.

we may experience a seri¬
economic readjustment or col-~

lapse.- This is the

CAPITALIZATIONS

course
ous

Sept. 19 the death

William

■

NEW

dollar

continue to depreciate in pur¬
chasing power and one that in due

may

News About Banks

therefore

amount from the

institution's undivided profits.

accordance

opposing theories

future—one

transfer of that

each

receive

estimate

member

states

of' 1954

this *>year

approximately' 10%

his annual salary, one-half'in

cash

and

the

remainder

in trust.

The Commercial and financial Chronicle

(1310)

substantial part of it apparently has the

blessings of the
Republican party. If the Federal Government is to do what
it .really can to promote enduring
prosper^y and thus
the fullest feasible state of employment, its course is one
that would take it much farther away froin the nostrums

Continued from jirst page

We See It

fact, therefore, that
unemployment is higher than it was at one time.

numerous

now.

It may be taken as a

The Real

Question

out

question—the legitimate question, that is—has to
do with what should have been done about this situation
and should be done now. For the statesman and the

wish the current

with his feet on the ground and the wel¬
fare of his country really at heart, this would appear to be
a
simple, straightforward question, which deserves a plain
and unequivocal answer. When, however, party politics
become involved, as is the case today, the issue becomes
unfortunately blurred and equivocal. There is a law on
the statute books of the nation which is commonly inter¬
preted

vigorously and sanely along these lines!

tion

placing the Federal Government under obliga¬
see to it that something described as
"full em¬

ployment" is always present in this fair land of ours.
Neither of the major political parties neglects any op¬
portunity to swear eternal allegiance to the letter and
spirit (as popularly interpreted) of this law. In some

the

particulars, there is also agreement about what should be
done to maintain "full employment." In other respects,
there is a wide difference in the views held by the two

There is also the question of when these remedies
should be applied, and there is, of course, plenty of room
for more than one interpretation of any particular step
groups.

contemplated—with opportunity for ad hominem
allegations which to the dispassionate observer have no
place or foundation in the existing circumstances.
taken

there was some
way to prevent this issue from entering the political scene
this year (or any year) at all, or, if it had to be considered,
the approach to it were wholly different. The truth of the
matter is that the only duty that the Federal Govern¬
ment
or any other government — really owes in this
connection is, first, to remove any and all obstacles to the
normal and vigorous conduct by the private citizen of his
own business affairs, and, second, to keep sedulously out
of the way of private enterprise. The notion that govern¬
ment can with any degree of abiding success manage the
economy, or stand behind the scenes and pull wires to
obtain this good result or that, is a snare and a delusion.
Sustained effort to do any such thing can not fail in the
long run to do a great deal more harm than good.
The yardstick which should be applied to the present
Administration or to any other Administration should,
therefore, be this: What has it done, not to stimulate this
or encourage that, but, to remove conditions which tend
materially to discourage business enterprise, or to inter¬
fere with the growth of business efforts which seem to
private citizens to offer the best opportunity for legitimate
profit in return for the production of such goods and serv¬
ices as the rank and file of the people want and are willing
*to pay for. Viewed in this way it seems to us that the
For

our

part we heartily wish that

—

Administration

Eisenhower

deserves

both

praise

and

blame.
Did not Rush in
It has declined to rush

quack remedies and with semi-socialistic nostrums
—and for this we, for our part, offer the most hearty
with

precisely this type of action that we should
expect of some of those who are now most ardently
criticizing what has been taking place in Washington.
They are careful, of course, to remain vague as to what
precisely they would have done or would do in the
premises, but one can scarcely doubt that were they in a
position to do so they would put an end to all-ideas of
economy in the operation of the Federal Government,
relieve low income brackets of most of their tax liability,

thanks. It is

again resort to the tactics of soaking the rich to obtain
revenues
to support extravagant farm legislation, and
various other projects which the New Deal and the Fair
Deal believe would be good for the country. In this direc¬

enduring^prosperity, but ruin lies.

The fact of the matter is that it is on account of some

the part of the Eisenhower Administration
course that it is open to the most
serious criticism. Our tax system is still essentially a
"soak the rich" system. We are still spending far too much
tendency
to

in
a

similar

Washington. The President wanted—and may yet get—
vast

public housing program which has no warrant in

good sense and sound government. A great deal of the
New Deal

and the Fair Deal remain intact and

very

tive

page

system. Others require
special handling. These get close
scrutiny as to profit possibilities
because of the inherently higher

outside

that

cluded

didn't

should

considering

ways,

know

about

ex¬

methods

will

coordinate

taken

has

good

to find this out, but
now
sure
that Republic

years

are

means

trade

created

any

tie

can

careful in

gation

onto

our

Likewise, this makes

product.
much

than

more
name

research

and

investi¬

our

because

can't afford to let the

name

"Re¬

public" down very often. Our Re¬
public Kitchens is a good exam¬
ple. Made by our Berger Division,
a few years ago this
would have
been a Berger line. The name, ex¬
cept as it is used on a few specific
products is unknown to even a

poor

them

line

but

in developing

makers

that. We

flexible kitchen that
utilize any standard make re¬
stove,

satisfied

dous

lot

any

washer,
made
for

etc.

tremen¬

our

steel

and

incidentally sold a
cabinets, shelving, etc.,

because

friends

salesmen

lot

didn't

frigerator,
am

are

complete
primarily steel
a

the

housewife

can

have

combination of facilities

she

wants.
I

cite

many

exam¬

ples of

our approach to good sell¬
ing, but basically we think good
selling is impossible, as I said in

the beginning, without sound
planning of both product and mar¬
keting research, without sound
production methods which incor¬
porate quality and service.

If I

steel

has

industry

presume

to offer ad¬

sidering new product ventures it
would simply be this:
Don't act
on
impulse. Explore very thor¬
oughly before you invest any
money in production equipment.
If you haven't
the facilities to
make

market

studies

yourselves,
well-qualfied or¬
ganizations who specialize in such
there

work.

are

price

increasing

few

thousand

dollars

You

callable

are

Sept.

prices ranging from 103 ^2%
before Oct. 1, 1957 to the

on or

principal

amount after Oct.

1, 1983. Sinking
redemption
prices
range
from 101 Vz% after Oct. 1, 1955 to
fund

the principal amount after Oct.

1983.

Its

main

Pau),

lines

extend

Minneapolis

from

St.

, Duluth,
Minn., and Ashland and Superior,

Wis.

the

east,

and

Seattle

and

Tacoma, Wash., and Portland, Ore.
The Great

North¬

Ry. Co., the company jointly
controls the Chicago, Burlington
& Quincy RR. Co., the
Spokane,

For

blood of business.
_

reinvestment

before the days

profits.

Contrast
some

fronds, who

When profits

even
were

This, resulted in the
cartel methods of selling
to perpetuate plants grown obso¬
lete through lack of capital im¬
provement. laterality; to compete
in world marfcefc was the inevi¬
completely.
need for

result

apc|; thedamage,

las

know, probably can never be
repaired.
|
- ,!•
The advantage s of certain
so¬

you

{'/

cialistic

alive
ican

$15,274,544
|

respec¬

Organize Own Chili
MINNEAPOLIS, Minn.—The In¬
vestment

women

St.

PauLand

Minneapolis have organized their
own

association,

Investment

the Twin Cities

Women's

Club.

The

entirely :tfcxed away were organization meeting of the Club,
to distribute them almost held Sept. 15, voted
upon a con¬

prone

table

and

Twin Cities In v. Women

t^r.the intelligent

European;

our

period
in 1953
figures swere $118,-

production plant,
epvy-'of the-world,

monument

similar

607,438
tively.

The American
the wonder and
is

the

comparable

the_^vjplume remotely

commensurate
wjth the damage
they do to profits, the very life-

theories^as opposed to a

profit
in

are

certain

political

cussion

can

(still

stitution,

which

Amer¬

thought. Such

patterned

was

after the La Salle Street Women's

Club of Chicago and the Munici¬

pal

Bond Women's Club

York.
First
year

;

officers

were

National

Ethel
Bank

New
:

elected

for

!the

Lyngholm, First
of

Minneapolis,
President;e Mrs." Vivian Meunier,
Piper, Jaffray & Hopwood, Min¬

much neapolis;

very

Sectors of

American

Marguerite
National

Brawley,

Bank

St.

dis¬ Paul, Treasurer; Mildred Murphy,

lead us into the stra¬

tosphere and I will not attempt it.
I do insist that some of the woolly

Allison-Williams

neapolis,

Company,

Min¬

Recording

Secretary;
Lorraine Okan, Lutheran Broth¬
critics of our profit system would erhood, Minneapolis, Correspond¬
do the nation more good if they ing Secretary.
would investigate" the businesses
which, over any period of time,
to

earn

adequate

These loss businesses

are

profit.

the real

hazards to our'national well-being.
All of the elements ! have men¬
tioned which

aremeOded for bet¬

selling
and {better
profits
meaningless without our
free
enterprise economy which
binds them into a useful, work¬

ter

would be

able whole.

With E. S. Hope & Co.
(Special

SAN

to The Financial Chronicle)

DIEGO, Calif.

—

Glen

Gilpin has become associated with
E. S. Hope & Co., San Diego Trust
&

Savings Building, members of
the Los Angeles Stock
Exchange.
Mr.- Gilpin
was
formerly San
Diego

manager

for

Dempsey-

Tegeler & Co.

many

for market study is cheap
insurance against
a
costly flop.

spent

gone

as a safes stimulant.
If
product is properly and com¬
petitively priced in the first place,
price reductions^will not result in

fail

might

vice to those of you who are con¬

the

fair

could

bonds

new

due

through this cyclg^ in times past,
even
though it was apparent to Portland & Seattle Ry. Co. and
any intelligent observer that re¬ the Midland Ry. Co. of Manitoba.
For
the
eight jnonths ended
peated price reductions did not in¬
crease the
consumption of steel by Aug. 31, 1954, the company had
a single ton.
railway
operating
revenues
of
The^.simply stopped
all forward '
' " "
$109,160,436 and income available
for fixed charges of
$12,521,566.
Entirely too JWich faith is put

almost

join

The

bonds,

ern

dishwasher

4V2%

mosWJggice cutting is Together with

this with the situation of

etc.

mer¬

selling.

majority of Republic employees.
To develop a kitchen we could
very
easily have asked a stove
maker, a refrigerator manufac¬
turer, a disposal manufacturer, a
manufacturer,

re¬

1955,

reason:

busted just about the time

The

put out a new line or
product, you should have
the guts to label it with your own
name.

simple

deliver

not

Product

new

many

to-

loss to the-people

research progra^n, to deplete their
raw materials
andyr-ultimately, to

When you

decline

Funds which should

chandise, to cut ur^eliminate their

as con¬

need

New

sales

result

one

are

nies

used

Northern Pacific operates 6,886
selling miles of road in Wisconsin, Min¬
First nesota, North Dakota,
Montana,
encouraging such compa¬ Idaho, Washington and Oregon.

for

study.
Labeling

before Jan.

1975.

sult in

highway

our

oversub¬

books closedj

will

trust

sipated. Stagnation sets in. Re¬
public does not want to buy ma¬
or make contracts which re¬

materials.

and

sales

terial

spent many years in the study of
struction

the past. / When

be available for .research are dis¬

acquired the services of one of the
top nonpolitical figures in the Bu¬
reau
of Public
Roads, who has

well

ac¬

Price Reductions

level.

knowledge did not seem avaliable
within
our
organization, so we

market it— deem,

quickly

the

Proceeds

still further.

pansion in road and toll-highway
building now underway. The

highway problems

and

was

scribed and

reduce

high¬

huge

the

offering

the first "impulse is -to
prices. -The next step is
to trim quality in an attempt to
earn
a
profit at the lower price

slow

organization and
retain a recognized expert in the
field. Our committee recently con¬
much

interest

bonds

the

99y2%

profit.

disaster

it advisable to go

own

our

Commission,

$6,880,300 refunding and improve¬
ment mortgage 5%
bonds, series
C, due July 1, 2047; $8,226,000 re¬
In every period 'OFbusiness de¬ funding and improvement mort¬
cline we see companies repeat¬ gage 5% bonds, series D, due July
ing the mistakes that have led to 1, 2047; and $36,247,000 collateral

ticular market in all its phases we
sometimes find

..'.-srv..

decide to study a par¬

Oct.

due

bid of 98.13. Subject to
the Interstate Com¬

yield 4.03% to
maturity. With substantial buying
by life insurance companies, the

Mistakes in

marketing cost.
When

Ry.

reoffered

crued

how you are going to

tribution

$52,000,000
Co. collat¬

bonds,

on a

merce

Key to
Expanding

Pacific

competi¬

Sept.

trust

1984,

awarded

were

sale

approval

Better Profits:

can

headlong into the situation

ciates

were

designed

tion not

jrom

fttfll /

Ryi *4% HOISClS 2! 98y2
Northern

jr.;--

Continued

eral
;■£§&?

man

Setts Northern Pacific
Morgan Stanley & Co. and asso¬

campaign could be fought

The

thoughtful

Morgan Stanley Group

of the New and Fair Deals and not back toward them.
How

Thursday, September 30,1954

...

Joins Witter Staff
(Special to The Financial Chronicle)

FRESNO,

Calif.

—

Wesley

probably can decide rather
McAden has joined the staff of
quickly how you a^e going to pro¬
Dean
Witter
&
Co., Patterson
duce a new product.
Don't move
until you can see just as clearly Building.
t"

Joins J. A.
(Special

Hogle Co.

to The Financial Chronicle)

SAN DIEGO, Calif.

—

John R.

Clark has become connected with

J. A. Hogle & Co., 1030 Sixth Ave.

Volume 180

Number 5364

The Commercial and

..,

Financial Chronicle

)

rT^e following statistical

Indications of Current

Business Activity
IRON

AND

STEEL

Indicated steel operations

Equivalent

AMERICAN

PETROLEUM

oil

ha.

capacity).

Oct.

and

(net tons)

(bbls.

average

•

output (bbls.)
Kerosene output (bbls.)
Distillate fuel oil output (bbls.)
Residual fuel oil output (bbls.)

fuel

oil

(bbls.)

ENGINEERING
NEWS-RECORD:
U.

Private

CONSTRUCTION

Bituminous

6,989,000

6,936,000

2,171,000

(U.

coal

and

10,096,000

10,261,000

(7,718,000

7,917,999

8,529,000

151,787,000

153,279,000

155,017,000

36,717,000

124,021,000

121,734,000

33,830,000
111,444,000

141,648,000
36,822,000
125,849,000

57,268,000

56,725,000

55,843,000

(no.

Electrolytic

521,967

823,883

577,987

$340,883,000

$306,420,000

$224,168,000

188,154,000

185,151,000

125,766,000

152,729,000

121,269,000

93,402,000
88,567,000

165,701,000

20,559,000

9,835,000

7,930.000

532,000

(E.

6,645,000
.

7,540,000

490,000

628,000

120

100

(New

9,074,000

9,227,000

212

195

134

■

4.801c

$56.59

$30.17

Sept. 21

$29.50

Sept. 22

29.700C

Sept. 22

30.425c

-Sept. 22

93.750c

4.801c

4.634c

$56.59

$28.67

29.700c

$35.33

29.700c

Retail

Group.

ll:500c

14.000c

13.503c

13.800c

13.300c

11.500c

11.000c

10.000c

99.97

100.12

94.58

110.52

110.70

103.64

115.24

115.43

108.16

99.91

112.19

112.56

105.34

110.52

110.70

103.47

104.48

•,«;

108.88

110.88***--

i—

Sept. 28

111.81

104.66

97.94

109.24

;

109.06
110.88
112.19

106.04

2.49

2.51

2.50

3.14

Sept. 28

2.89

2.88

3.27

;Sept. 28

3.05

3.03

__________

__________—

—-

3.14

Sept. 28

Group

PAPERBOARD

Orders received

(tons)

Production

Unfilled

orders

II "I
I
"..II.IIIIIIIII
of

at end

(tons)

3.47

As of

3.13

3.12

3.55

3.07

3.05

AVERAGE

DEALERS

414.3

EXCHANGE

200,184

214,012

236,069

Odd-lot sales

J.Sept.

244,607

176,765

251,722

264,379

by dealers

SPECIALISTS

408,830

419,109

105.64

364,174„

Refined

105.66

106.76

105.56

•-

(customers' sales)—

other sales———-——

—Sept. 11

sales

Number

by dealers—

Short sales
Other

purchases

FOR

AND

ACCOUNT

dealers—

ON THE

STOCK

22,038

878,125

1,169,809

$49,481,896

$17,288,749

244,450

2713,540

314,730

Other
Total

sales

386,930

'•

Other

sales

Total sales
Other

*378,200
9.552,430

358,600
10,165,570

9,930,630

10,524,170

349,460

16,008,990
16,617,230

6,481,710
6,831,170

MEM¬

687,430

351,220

102,110

—————-Jept.

Other

—•——Sept.

___^=Sept,

—————

^ept.

——

floor—

—

571,280

139,100

,16,680

41,300
545,070

114,960

293,620' *'J

321,730

321,320

333,410

21,200

586,370

136,160

50,950

41,140

69,480

39,850

—j—oepc,
—

DEPT.

404,088

441,166

701,374

204,970

455,038

482,306

770,854

244,820

1,889,280

1,954,090

All

Revised
Jan

DEPT.

—

78,825

COM¬

Aug.

667,443

of Aug. 28

of Aug.

RESERVE

(average

daily),

1,218,051

1,236,999

8,103,150

3,755,301

727,387

August

111,727

95,849

1,544,583
19,306,000

1,571,582

971,379

19,286,000

20,081,000

DISTRICT,

BANK

542,577

1,025,075
8,340,420

Aug. 28

129,699

1,693,749

1,165,618

FED¬

FEDERAL
1947-1949

—

August:

seasonally

81
80

adjusted-

105

unadjusted

101

111

104

•117

115

117

•121

$71.06

$70.92

$71.69

FACTORY EARNINGS AND HOURS—WEEKLY
AVERAGE ESTIMATE — U. S. DEPT. OF
LABOR—Month

All

August:

^manufacturing

Durable

goods

Non-durable
Hours-—

76.59
*>

••

*75.83

64.29

goods

•64.74

77.27
•

63.76

39.7

39.4

40.5

Durable goods
Non-durable goods

40.1

•39.7

41.1

39.2

•39.0

39.6

$1.80

$1.77

Hourly Earnings—
All

manufacturing

$1.79

Durable goods

1.91

1.64

APPLIANCE

MANUFACTURERS

furnace

conversion

1.88
1.61

ASSO¬

August:

shipments

(units)
shipments (units)
Gas operated boiler shipments (units)

Gas

1.91

1.66

69,800

51D00

54,100

28,200

20,500

27,700

8,800

burner

5,700

Automatic gas water heater shipments (units)

213,800

18^,500

9,500
163,000

178,700

129,000

186,800

gas

range

shipments

(units)

THE

FEDER.AL

RESERVE

SYSTEM—1947-49=100—Month

Aug.:

Seasonally adjusted
Unadjusted
LIFE

(000's

INSURANCE

136

_•

$2,003,000

$1,847,000

547,000

520,000

631,000

469,000

$3,154,000

$2,851,000

Aug.
..

Ordinary

136

INSTITUTE

Month

—

omitted):

—

124

$2,018,000

PURCHASES

•116

$2,944,000

LIFE

124
124

379,000

INSURANCE

Industrial'

Total
METAL

4,223,450

OUTPUT

Month

■

535,000

1,014,425

United

253,820

462,000

163,160

Gold

1,806,556

2,912,604

926,290

Silver

1,977,438

2,060,376

3,374,604

,1,089,450

(BUREAU

MINES)—

July:

production of recoverable metals in the'
(in

States
fine

(in

Alaska:

and

163,144

186,073

•3,232,365

3,004,955

$29,925,734

$29,891,963

$30,247,930

$733,724
155,437
371,240

ounces)-

•179,180

2,936,593

ounces)——

fine

$741,435
145,612
368,137

$699,037

141,487

133,203

127,282

250,762

249,310
352,395

256,713

374,295

$2,026,945

$1,990,092

$1,797,760

MONEY IN CIRCULATION—TREASURY DEPT.
—As

Aug.

(000's

—

109.9

qP?"

foods

—

other than farm

and foods

—...

<3^'
Sept,

110.0

ESTATE

AREAS

110.7

92.8

93.1

93.9

98.1

105.8

106.1

105.5

104.7

90.3

*91.0

89.1

92.4

114.4

114.5

114.4

114.6

omitted)

FINANCING
U.

BOARD—Month

Savings

and

loan

Ulncludes 658.000 barrels of foreign crude runs. SBased on new annual capacity
1954, as against the Jan. 1, 1953 basis of 117,547,470 tons.

figure.

124,330,410 tons

July

NON-FARM

LOAN

(000's

associations

Insurance companies
Bank and trust companies
Mutual

savings

Miscellaneous

—

banks..

—

lending

BANK

omitted):

...

institutions

,—

131,587

323,320

259,821

•{-Number of orders not reported

S. —HOME

Individuals
*

106,985

68,921

BALES:

REAL

products

^11Commodities

97,436

58,387

commodities

Processed

84,953
108,974

92,475

monthly), unadjusted
Sales (average daily), unadjusted

1,735,938

Commodity Group—
Farm

•75,667
107,095

(tons

(average

Mine

®ep)/

———-

NEW SERIES
100):
-

LINTERS

Average=10<)—Month

241,500

——

60,118

103,901

214,895

•

(1947-49

$451,000

pounds)

Grpup

560,660

__Sept.

—

PRICES,

—

18,700

iO,(VUri'

330,660

360,710

7*fepr

sales

Total sales

LABOR

321.290

for account of members— ;.

purchases

WHOLESALE

606,360

708,470

•

385,630

Short sales
Other

1,666,160
2,017,380

v.;v „
..-.-.Sept.

————————————————

round-lot transactions

Total

1,043,660
1,239,660

".-Sept.

__—_—

sales

Total sales

1,038,230

1,210,088"

the floor—

Short sales

Total

$749,000

Aug.:

;

storage

ERNORS

2,091,510

196,000

______

A.—

INDUSTRIAL PRODUCTION—BOARD OF GOV¬

1,262,720

171,850

——————————————————Sept.

purchases

$576,000

Domestic

-/.—wept.

—

2,000

spindles active

Gas-fired

608,240

1,182,360

transactions initiated off the

Total

$1,252,000

2,000 pounds)-.
of

CIATION—Month
'

___3ept.

Other transactions initiated on

public

GAS

in which registered—

.——,—-—

Total purchases
Short sales

$526,000

YORK—

month

pounds)

RESERVE

———-—--:

month of August
consuming establishments

ERAL

139,630

———-————■———Sept.
—

NEW

Non-durable goods

——.—feppOF

DEPARTMENT STORE SALES—SECOND

STOCK

——————————————--•---•Sept.

sales

7,487

fabricators—

AND

Stocks

209,030

<-—■—-•

ACCOUNT

FOR

specialists in stocks

purchases

Short sales

9,049

All manufacturing

1391630

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Total

9,041

THE

.__

OUTSTANDING—FED¬

BANK

Linters—Cqnsumed month

450,701

$39,872,813

3~8~6~930

——

8,044

679,456
$30,060,985

TRANSACTIONS/.

—-——

TRANSACTIONS

Transactions

$28,529,000

Weekly Earnings—

13,983

314,790

•:

Total sales

ROUND-LOT

1,077,000

$32,230,000

BRADSTREET,

458,745

12,092

" /£'
•;•*—Sept.

———

__——

^*,191,847

■

192,840

(SHARES):

MEMBERS

Short sales
sales

534,943

3,868,000

$794,000

(NEW)

August—

MERCE—RUNNING

$23,598,189

—--—Sept. 11

Total Round-lot sales—

-.Other

1,112.250

$49,825,757

314,790

——

ROUND-LOT

901,335

$42,999,937

192,840

;

—

STOCK SALES

TOTAL ROUND-LOT

1 0,275,000

2,524,000

Consumed

—Sept. 11

—

——

Number of shares

EXCHANGE

._.*__Sept. 11

—

—-——»—

sales

Round-lot

9,622,000
4,958,000

2,386,000
2,381,000

(000's omitted)

(tons
to

2,000

COTTON

sales—

shares—Total

11 r*
11

—.——Sept. 11

value

Round-lot

706,904

$33,251,350

: V

—-Sept?;
sales——_—_____——.Sept.

short

Customers'

3,042,000

11,225,000

Stocks,, seasonally adjusted

Sept. 11
—Sept, 11

——

Customers'

Stocks,

Number of shares—Total sales——

Dollar

700

$10,267,000

I„
__.II

In U. S. A. (tons of
2,000 pounds)
Refined copper stocks at end of
period

523,839

COMMISSION:>

—

Sales

STOCK

(customers' purchases)

Odd-lot purchases by dealers

856

5,140,000

$32,582,000

PAPER

Sales

-—Sept. 24

EXCHANGE

——:

alue

$9,986,000

liabilities

STATES—DUN

(tons

Deliveries

100

Number of shares
Dollar

4,202,000

COTTON GINNING (DEPT. OF COMMERCE)—
To Sept.
l
(running bales)

;* .£»

: .235,147^

——

SECURITIES

—

410.0

-;;rs*pt.
...i—Sept.

period———

100

AND

$12,388,000

INSTITUTE—For

Cotton

8TOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT

71
340

100

number

production

Crude

3.39

407.7

143

99
417

912

Aug. 31

Copper

3.64

3.54

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
1949

165

451

liabilities

RESERVE

COPPER

3.88

3.22

406.2:'*"

—Sept. 18

activity

3.13

3.48

*3.07

ASSOCIATION:

"II

(tons)

Percentage

V-"'

3.53

3.14

,3.12

Sept. 28

3.13

3.21

Sept. 28

-—

...——-

INDEX

•

NATIONAL

187

INCORPORATION

ERAL

2.88

3.23

Sept. 28
Sept. 28

—

Group.

COMMODITY

3.43

Sept. 28

—

_—___

Utilities

$384,650,273

liabilities

COMMERCIAL

3.43

Public

38,704,044

$407,708,834

—

103.30

111.81

Sept.*28

—

Industrials

$423,354,317

40,301,251

CASH DIVIDNEDS—PUBLICLY REPORTED BY
U. S. CORPORATIONS — U. S.
DEPT. OF
COMMERCE
Month
of
July
(000's
omitted)

101.80

110.70

Sept. 28

U. S. Government Bonds

MOODY'S

$448,010,085

30,841,192

service

UNITED

14.700c

-.•—Sept. 28

Group

$459,460,830

liabilities

BUSINESS

MOODY'S BOND YIELD DAILY AVERAGES:

Railroad

14,897,917

87,422,481

BRADSTREET,

August:

;

INC.—Month

14.550c

—Sept. 28

Group

20,009 579
94,252,166

number

liabilities

Construction
Commercial

28.225c

Sept. 28

—

45,990,216

96,190,676
50,434,647
29,246,394

23,528,662

liabilities

83.750c

Sept. 28

—

31,586,710

$18,057,583
81,114,403

86,894,954

number

29.475c

14.750c

Aaa''

79,697,016

34,352,176

;

City

service

92.625c

14:550C

110.52

corporate

York

Manutacturing

115.24

Average

86,415,587

82,991,813

number

93.500c

3ept. 22
Sept. 22

Sept. 28
Sept. 28

is./-

New

29.625c
i:;

Sept. 22

3ept. 28

Utilities

95,260,081

QUOTATIONS):

Average corporate

Public

79,088,841
37,279,690

_____!

number

Total

Sept. 28

Railroad

Retail

152

U. S. Government Bonds

Industrials

419,680,496

66,518,279

43,941,690

8,354,000

Sept. 21
Sept. 21

at—

Louis)

States

City

Wholesale

Louis)

(East St.

United

York

Commercial

9,072,000

63,855,000

$428,619,638

;

Total

York)

;

INC.—Month

120

Sept. 23

$25,973,175

IIIIII
I~.II
IIIIII
I-IIIIIIII
IIII IIIIII
I_I_

___

Manufacturing

$477,534,000

$211,495,000
127,925.000
10,110,000
26,275,000

II
!

BUSINESS FAILURES—DUN &

9,645,000

425,000

Sept. 25
DUN

DUN

_______

Construction

—

37,874,000

between

—

Central

Total

copper—

tin

•

Central

New

PRICES:

M. J.

(New York)

VALUATION

Wholesale number

Sept. 18

INDUSTRIAL)

45,581,000

135,809,000

15,991,000

Sept. 18

100

87,228,000
75,342,000

18,072,000
72,777,000
91,964,000

Pacific

181,692,000

100,710,000

17,108,000

$225,154,000

13,449,000

47,374,000

shipped

Atlantic

Outside

lb.)

(per

PERMIT

Atlantic-

South

$341,242,000
159,550,030

135,621,000

and

West Central

MOODY'S BOND PRICES DAILY AVERAGES:

Je.t

East

653,071

Sept. 23

refinery at
refinery at

(St.

583,345

678,624

ENGINEERING

—

Domestic

Zinc

601,525

$205,008,000
134,439,000

IIIII
..III"

....

11-11111111

goods stored

England

South

711,228

cars)__Sept. 18

„

COMPOSITE
steel

AugUkt:

New

52,164,000

INDEX—FEDERAL RESERVE

AND

Ago

BRADSTREET, INC.—215 CITIES—Month

Middle

kwh.)

000

Year

Total

INSTITUTE:

(in

PRICES

Lead

9,723,000

;

credits

countries

BUILDING

37,644,000

Sept. 18

-HIIIIIIIIIII

...

exchange
on

foreign

7,707,000

Sept. 18

(tons)

SALES

(COMMERCIAL

Export

Dollar

Based

Sept. 17

(tons)

AVERAGE

Month

BANK

$562,840,000 4589,357,000

....

shipments
warehouse

10,047,000

Sept. 23

lignite

O U T-

YORK—As of August 31:

Domestic

BUREAU OF MINES):

STORE

output

Straits

NEW

Domestic

24,057,000
1,998,000

Pig iron (per gross ton)
Scrap steel (per gross ton)

Lead

6,992,000

23,826,000

2,461,000

Sept. 23

BRADSTREET, INC

METAL

6,494,900

23,94WOOO

municipal

ELECTRIC

AGE

DOLLAR
ACCEPTANCES
STANDING—FEDERAL RESERVE

Mountain

SYSTEM—1947-49

Finished

6,155,750

Sept. 23

Pennsylvania anthracite

IRON

*6,170,750

BANKERS'

2,149,000

Sept. 23

DEPARTMENT

Electric

1,525,000

2,313,000

construction

OUTPUT

FAILURES

*1,637,000

23,852,000

Federal

EDISON

95.3

Exports

construction

State and

of that date:

are as

Month

Ago

64.0

116,696,000

Public construction

COAL

Ago

*68.7

6,196,400

Sept. 17
Sept. 17

freight received from connections

■CIVIL

Total

•

§68.9

ASSOCIATION OF AMERICAN RAILROADS:
Revenue freight loaded (number of cars)
Revenue

of quotations,

cases

Latest

Sept. 17

Residual

or,

either for the

are

Year

1,642,000

Stocks at refineries, bulk
terminals, in transit, in pipe lines—
Finished and unfinished gasoline
(bbls.) at—
:
Sept. 1^
Kerosene (bbls.) at
__3ept. 17
\ Distillate fuel oil
(bbls.) at

,•"*

Month

Week

Sept. 17

Gasoline

Wees

_Sept. 17
__Sept. 17
Sept. 17

average

Dates shown in first column

Imports

output—daily

stills—daily

production and other figures for the

cover

that date,

INSTITUTE:

condensate

Crude runs to

„

Oct.

42 gallons each)

month ended

tabulations

month available,

INSTITUTE:

(percent

to—

ingots and castings

Crude

rweek
Latest

AMERICAN

Steel

latest week

since introduction of Monthly Investment Plan.

The Commercial and Financial Chronicle

Vontinued from page

Banking Companies Act has en¬

sured

certain amount of coordi¬

nation in

theirjactiviies under the

guidance z>r therRe^erve Bank of
India
and
a
fair standard of

Banking Trends in India

1949

0.84%

while

1952

help

cannot

structure

wage

and

But the second may

conclusion, it should be said

rectors without security.

The banking habit

is still com¬

paratively under-developed in In¬

Owing to the low level of
■per
capita income in India, it
♦night be difficult to interpret
comparative figures. But still it
Knight be stated here for your in¬
formation that the average de¬
dia.

they feel it necessary to strengthen
the base of the economy and to
create
conditions of sufficiency

firm and
vested

It is

tion.

should have

effective

also

but
use

Lee

responsi¬

make

reason

to believe that

working

possible even surplus in re¬
spect of food and raw materials
which alone can help further de¬

and if

velopment.
that

of Indian economy

American

economy

head in India is only will, in the changing circum¬
rupees as compared
to 1,636 stances, be in the enormous home
^rupees in the United Kingdom and
market that can take any amount
-4,493 rupees in the United States. of
industrial
products covering
JFurther, the ratio of bank depos¬ common needs and requirements.
its to currency in circulation in From this
point of view, the large
India is 0.76 as against 4.25 in
population of the country pro¬
'United Kingdom, 5.17 in United
vides a consumer potential of very
posit

per

.25

■States and 3.63 in Japan.

great magnitude, and far from its

of the

small savings

the

With

community in the countryside now
scattered
in
millions of homes

being
out

liability, it may well turn
great asset.

^Considering the population, the
which are to be integrated to serve following table proves the
in¬
4he needs of the community, a adequacy of the development of
jnew machinery in terms of rural
banking in India compared with
l3anks with two-way service has
some foreign countries like United
the bank¬

to foe devised to create

ing habit

people and to

the

economically and effi-.

them

Kingdom, United States of Amer-

ica, etc.
No. Banking

Area

No. of

Banking

Sq. Miles

Offices

-Country-

United
U.

Kingdom

Canada

—

——

Australia

_l_„_

India

—

Population

50,000,000
147,000,000
13,000,000
8,000,000

89,000
3,674,000
3,690,000
2,975,000
1,220,000

337,000,000

Offices
per
of

Million

Population

Electric 3%%

the system

satisfactorily
measures
of

heads

safety prescribed by the Banking

129

3,323

256 v

3,599
.

with

very

various

the

Companies Act and
application'of them

the careful
by Reserve

of India.

Bank

Lee

ner,

of development

banking is to be linked to the

closed
which

through previously prepared
in the casing or liner and
wet cement, and lands snugly

holes

against the wall of the hole.
By this new (patented) method,
small telescopic tubes consisting
of a bushing enclosing a sleeve
and

piston, made of magnesium

alloy, are extruded through pre¬
viously prepared portholes drilled
in the casing before it is lowered

burrs

low ground

Therefore,

explosions occur be¬
by this new method.

hydraulically
rammed against the wall of the
bore hole, opposite selected oil
These

tubes

are

immediately after the well

zones,

has been cemented.

450

5,558

•

people may not all be provided by
one
set of institutions following
set conditions and codes of work¬

priced at 102.915% and ac¬
interest, to yield 3.10% to
maturity. The issue was awarded

are

crued

are

well

unbroken
the

the

for

Now

back of

service in two areas in Ohio com-

all bands

prising portions of 22 counties
a population estimated at

cement seal in

casing,

of the

time

first

practically

producible oil and gas zone,
together, can

the

desires

These sleeves

of seal in

back of casing,

yet actually in use in wells
(they are just now "tooled-up"
for production in large quantity),
laboratory tests witnesed by the
writer so
accurately duplicated
actual field pressures and condi¬
tions that impressive success can
be quite

safely predicted.

max-

offices

the

States as

per

1949

working

on an

situated in branches all over India and there
large cities and district headquar¬ are also much larger number of
institutions with, local
ters towns while only 1,902 of¬ regional
fices were in other centers. Out interests and contacts with their
t4of these, only 96 offices were in own distinct sphere of operations.
towns with a population of less It might be said that the large
than 10,000. Viewed thus, bank¬ commercial banks afford banking
ing
facilities
in the
medium- facilities only indirectly to the
sized towns accessible to a large people through indigenous bankers
statistics,

"belt

these

2,089 were

villages

situated

around

towns, comprising a mixed

jend, encouragement is being of¬
fered by Reserve Bank of India
.and Government for banks to es¬
tablish
branches in such rural

it is to be argued

different

requirements

dtf

that the various

types of institutions operating
the

parts.
The

depos¬
its and making advances on vari¬
ous types of securities.
Therefore,
on

country have their own place
the banking system.
But the

and

Power

adjacent to such,

territory.
1

the

For

31,

months ended July

the

1954

had

company

con¬

solidated total operating revenues
of

$39,055,815 and net income of
$5,404,795.

Audubon Park Raceway
Slock Offer

Completed

Public offering of 900,000 com¬

shares (par 10 cents) of Au-

mon

dubon Park Raceway, Inc., was
permeator made Sept. 24 at $1 per share by

push through the unset, wet ce¬
ment, as opposed to the previous
methods of shooting through steel

imum effectiveness is achieved by

set cement and shatter¬

well, especially in limestone, has

and hard

this

fascinating

new

sleeve, then each new oil and gas
its

total

projected output multitimes; and a great
rigidly locked into position and is many producing wells can be re¬
treated to disgorge oil from in¬
non-retractably engaged into po¬
sition
against the formation by accessible bands previously un¬
several locking devices. The ce¬ tapped.
The implications of this
ing. it.

Each tube has an oil re¬

hardens

then

around

these

plied

new

many

invention

are

for

vast

ex¬

pansion of our oil reserves.
The permeator sleeve is now
When in place, the tubes are so
set that the inside bore of the patented in Canada and pending
casing is absolutely smooth and in the United States, and practiclean.
These tubes, when later cally all oil producing countries
It is
dissolved by acid, leave a series (except Communist States).
of small tunnels from the face of a remarkable advance in petrol¬

Berwyn T. Moore & Co., Inc., of
Louisville, Ky., and Gearhart &
Of is, Inc., and F. H. Crerie and
Oo., Inc., of New York, N. Y. The

•

bore hole

casing; and

In the
rose

to within the liner

eum

engineering, making possible,

test, a hydraulic pressure
2,000 pounds per sq.

above

in., the whole series of sleeves in

tional

Petroleum

Corporation,

enterprise operating
producer

!»Sine

for

as an

vears

considerable

and

Alberta
pos-

the pipe

favor-

penetrate the freshly pumped ce¬ The shares of National Petroleum
ment on the outside of the casing. are listed not only in Calgary and
these
even
or

were

than

run

much higher than
the steel casing could hold
tubes

drop of leakage

—

Toronto

but

the

American

;

financ¬
other funds,,
would be used for the purchase of

ing,
the

together

with

property and equipment and

instruction of the plant, with an
nnnma
balance of some $150,000 expected to be available for
"wmjing capital.
T-he corporation was organized'
under Delaware laws on June 28
.

this

year

cense

and

has obtained

conduct

harness

li¬

horse

racing in Henderson County, Ky.
It has an option on land on which
it intends to erect

for

the

purpose

harness horse

galized

race

betting

^chines*

racing plant

conducting

meets with le¬

th«

pari-mutual
,

pr0Ject?d racm8 site is lo?ted »pproxlmateIy five miles

Production

With Walter

this

device

Gorey

CARMEL, Calif.—W. Dee Scher—
man

has

Walter C.

Stock Exchange.

quantity is scheduled to start this
the week. Whatever method of stim-

withstand, and the tubes held

without

day.

same

The net proceeds of the

betwe°en vTderblrTh Countv"^"'P^nu"
Canary and the United States
patents'to"
suthe are'lePis 355^
°f id racinS site

first the primary

Pressures

speculation

all sold the

were

for

are

offered

tubes.

section slowly expanded,
sleeve and then ably located land spread
and
affluent, landholders.
The the oiston, till thev were all ex¬
smaller banks have greater local panded to a full 2 inches from the
meator
National
contacts and also adopt less rigid exterior face of the casing in all
methods
of
business
offering directions—far enough to easily might indeed prove considerable.

■population of agriculturists, small
traders, etc., would be of great
To this higher rates of interest

^benefit to the rural areas.

In addition,,

Light

associations in

ducible oil.

placed opposite
th^ first time, treatment by
mechahical and/or chemical means
producing bands selected by the
of all strata of varying permea¬
operator.: The sleeves or tubes are
radially placed in the pipe sec¬ bilities within a proven oil reser¬
The U. S. rights are, I am
tions to contact the oil bearing voir.
reliably informed, vested in Na¬
zones" from every direction.

total number of 3,991

Ohio-Midland

not

Co., to three small municipalities
in the company's service territory
and to rural electric cooperative

each and every band of now pro-

Looking at this new device from

area

Ohio, third

wholesale service is furnished to

pressurized stimulating treatcan
be confined, without

all-Indiasbasis with
large resources and a network of

largest city in Ohio.

because

ment
loss

and around Columbus,

effectively isolated, treated and
stimulated at the oil operator's

command

This includes

900,000.

matter how close

the

Out of

trie properties.

each of several strata,

effect into

banks, there are a few institutions

Imperial

redeemable

are

de-

.attention.

fact,

bonds

regular redemption prices scaled
signed and built.
from 105.92 commencing Oct. 1„
After three days time (to allow 1954 to 100 after Oct. 1,1983. They
the cement to set) acid is intro- are also redeemable under a sinkduced and the magnesium plugs ing fund at prices
scaled from,
dissolved as if by magic, each one 102.60 to 100.
leaving a smooth 114 inch-hole-^Proceeds of the offering and
directly from the oil zones to from-Rfst week's public sale of
within the casing. These fascinat- 200,000 common shares will be
ing and revolutionary magnesium used to carry on the company's
sleeves
permeate the saturated construction program, including
strata by multiple entry, and be- repayment of bank loans amountcome acidizng or sand fracturing
ing to $7,600,000 incurred for adorifices working with maximum ditions and improvements to elecdevices

sealing

Bank of
India holds a peculiar and unique
status and probably a semi-public
character. Among the commercial
In

competitive bidding on Wednes¬

day.
The

inadequate economic development.
JFurther, there has been heavy
concentration of banks in larger
towns and cities while smaller and
semi-urban
towns
receive
less

ing.

Ohia

Southern

and

Columbus

Co% first mortgage bonds
3%% series due 1984. The bonds

the larger viewpoint, it opens up
ground. These bushings are brand new vistas, vast new hori¬
Whereas
screw
threaded in the liner or zons, of oil production.
casing, also before the same are these new permeator sleeves are

jio

which today (Sept. 30) is
publicly offering $10,000,000 of

Electric

in the

lowered into the well.

Corporation
investment
banking

Higginson

Th.e company is an operating

penetrates, in a two phase man¬

ment

The inadequacy

motion

Bonds

group

now

Public utility^ providing electric

sistant seal between its members,

229

11,461
18,975

slow

tubed made of magnesium

the

The strength

sleeve

Higginson Group

this producing history, because of the

Basically

company.

world's
,

Offer Gol. & So. Ohio

There

them.

important fuel.

most

bilities of not only increasing its
resources,

oil

global delivery of the

founda¬

sure

with

This radi¬

production
tremendous impact
of

stimulation

cal

oil

Middle Western milling and

tool

uses

increase

multiplicity of places.

Oilier Oil Wells

mous

industry

oil

the

ulation
finds

in India

that the banking system
is now on

Thursday, September 30, 1954

production, it
in 1949 to 1.80% in 1952.
It has can now, by use of the mag¬
come
to be recognized that this nesium permeator sleeve, do so in a

India it has increased from 1.36%

service improve or expand banking facili¬
the people has been established. ties with a view to improve the
might also be emphasized that economy of the country.

soundness, efficiency

the success of to
the ciently, fa)d
ha/^ mat Would depend in a large It
to
wait until/!,,
inspection' of measure the discovery of funds there cannot be any fears of com¬
for
financing the Second Five petition among these7 institutions,
5y the Reserve Bank of Inbut they must be considered com¬
>dia which has been proceeding Year Plan of Government.
The First Five Year Plan was plementary to each other.
4or the past three years is com¬
The one great point which is
pleted and the banking system, is primarily intended to reclaim
.set to a uniform pattern.
land, irrigation and power sources now engaging the attention of
The system of inspection by Re- as the basic needs of the commu¬ government is the growing oper¬
nity. It is this recovery of the ating expenses due to the creation
-serve Bank of India of all com¬
of disruption of feeling among the
mercial banks came into existence agricultural sector on whose mea¬
workmen. It might be interesting
Jby the legislation of the Banking gre return well over 70% of the
to state in this context that the
Companies Act in 1949 for which population depend that naturally
of establishment
expenses
claims the first priority, and vis¬ ratio
-the Reserve Bank of India was
ible evidence of success of the to deposits of member banks in
jwiainly responsible. The most im¬
U. S. A. has risen from 0.5% in
drive in this direction is provided
portant provisions of the Banking
in ample measure by the way the
Companies Act are:
;
problem of food has been solved
(1) Maintenance of a minimum in the
Continued from page 4
country now.
£luid position by way of cash and
With the solution of food prob¬
"unencumbered Government Secu¬
lem
and recovery of minimum
rities to the tune of at least 20%
standard of living, the need for
of total deposits;
providing diversified employment
(2) Issue of licenses for open¬ to
improve standard of living is because of a broken bond or seal
ing' of branches of banks;
reinforced. Therefore, in the Sec¬ in back of the
casing caused by
<3) Nonparticipation in profits ond Five Year Plan, it is expected
these explosives.
*#y» or payment of unreasonably that the emphasis would shift
This leads us up to the latest
tiigh remuneration to, the chief from the agricultural to the in¬
-executives of commercial banks, dustrial sector. The Planning Com¬ advance in so called "stimulation"
It
irtio should
not interest them¬ mission gave topmost priority to techniques for oil extraction.
has
been
called
a
permeator
selves in any other vocation or
agriculture partly due to the con-;
sleeve, and the writer was given
lousiness;
viction that without a substantial
(4) Periodical inspection of increase in the production of food the unique opportunity to see it
in preview, in company with a
thanks;
and of raw materials needed for
small group of industry execu¬
(5) Quick liquidation proceed¬ industry,
it would
be
impos¬
tives at the invitation of the man¬
ings in case of failure of banks; sible to sustain a higher tempo of
(6) Prohibition of common di¬ industrial development, of course, agement of National Petroleum
Corporation. The premier show¬
rectors to banks;
recognizing the complementary
<7) Restriction on loans to di¬ character of the two sectors. But, ing was given recently at a fa¬
bearings

practical

the

.scheme.

■

...

(1312)

cisco.

become

associated

with

Gorey Co. of San Fran¬

Mr.

Scherman

was

pre-

viously local manager for Hooker
& Fay.

Volume 180

Number 5364

The Commercial and Financial Chronicle

:/r-

v-t

t'( >i.t'1

(1313)

Noyy in Registration

★ Alabama Gas Corp., Birmingham, Ala.
Sept. 29 filed 84,119 shares of common stock (par
$2) to
be offered for
subscription by common stockholders at
rate of

one

share for each 10 shares held

new

(with

oversubscription privilege). Present plans call for mail¬
ing warrants during latter part of October
warrants to

program.

aq<J for the
Price—To be

expire about mid-November.

supplied by amendment.

Proceeds

For

—

construction

Underwriter—Allen & Co., New York.

★ Allied Thermal Corp., New Britain, Conn.
Sept. 23 (letter of notification) 5,333 shares of common
(par $25) to be offered for subscription by stock¬

stock

holders of record Sept. 23
for

each

Price—$45
etc.

the basis of

held;

rights

one

expire

new

Nov.

share.
Proceeds—For
Office—Corbin Ave., New
per

working capital,
Britain, Conn.
Under¬

writer—None.

^American Mercury Insurance Co.,
Washington, D. C. (10/18)
Sept. 27 filed
15, 1954

stock (par $1)
subscription by stockholders of record
the basis of three new shares for each

five shares held.

Price—$2 per share, proceeds—To fi¬
growth and expansion of the company's business.
Underwriters
Johnston, Lemon & Co., Washington,
D. C.; and Hettlemen &
Co., New York, N. Y.

nance

—

•

American Seal-Kap Corp. of Delaware
Aug. 25 filed ,61,312 shares of common stock (par $2)
being offered for subscription by common stockholders
on

the basis of

for

one

Sept. 22;

share for each three shares held

new

rights expire

Oct. 5 Price—$11.50 per
Proceeds—For expansion in the cup business and

share.

general

corporate

Office

purposes.

Amalgamated Uranium Corp., Salt Lake City, Utah

Sept. 1

(letter of notification) 2,500,000 shares of com¬
mon stock (par three
cents). Price—10 cents per share.
Proceeds—For exploration and
development costs. Office

—218 Atlas Bldg., Salt Lake
City, Utah.
Ned J. Bowman
Co., the same

Underwriter—

city.

Long Island
City, N. Y. Underwriters
American Securities Corp.
and Hirsch & Co., both of New York
City. '
—

American

Buyers Credit Co., Phoenix, Ariz.
Aug, 6 filed 5,000,000 shares of common stock to be is¬
sued to policyholders of American
Buyers Insurance Co.
and American Buyers
Casualty Co., and employees.
Price—To so-called "Expansion
Policyholders" (various
policyholders | of both insurance companies), and em¬
ployees, at par ($1 per share); and to all other
policy¬
holders

the

Proceeds—To
i

insurance

companies,

in the

expand

small

$1.25

loan

share.

per

field.

Under-

writer—None.
American Independent Reinsurance Co.
Sept. 2 filed 900,000 shares of common stock
(par $1).
®>.r!ce—Per share. Proceeds—To be invested in secu¬
rities of other companies and for
working capital.

—Orlando, Fla. Underwriter
Petersburg, Fla.

Goodbody

—

NEW
September 30

Telephone

(Offering

Ampal-American Israel Corp., New York
17 filed $5,000,000 of 10-year 5% sinking fund
debentures, series C, due 1964; $3,125,000 of 5-year dis¬
count debentures, series
D; and $4,100,000 of 10-year dis¬
count debentures, series E.
Price—Series C, at par; se^
Sept.

ries D

$2,507,659.53, to yield return equal to compound

interest at

rate

\Vz% per annum, compounded; and
E $2,502,111.10, to yield 5%.
Proceeds—For de¬
velopment and expansion of agricultural, industrial and
commercial enterprises in Israel.
Underwriter—None.
series

(Gearhart

Loan

Finance

underwriting)

October 4

$200,000

(Blyth & Co.,

488,888 shares

Hercules

Plastics

(First California Co.,

Inc.) $1,000,000

Friedman

(Tuesday)

(Frederick

EST)

a.m.

EST)

New

noon

Preferred

Pacific Power

(Offering
Stone

Trust

underwritten

Dean

Co.)

(Van

(Blair

Co.,

Common

Alstyne,

Inc.

and

Co.

and

(Bids

$8,505,000

EST)

noon

(Bids

750,000

11 a.m.

EST)

Co.)

Emanuel,

(Bids

Deetjen & Co.)

Co.)

October

(Ira

__Common

Co.)'200,000

..Common

(Gearhart

Petroleum,

Otis, Inc.)

Christopulos

Corp. (10/5)
240,000 shares of com¬
Price—At market (estimated
Proceeds—For expenses incident to

(letter of notification)

stock

(par 10 cents).

Office—Sutherline, Ore.
Inc., New York.

Under-

Friedman & Co.,

Common
,

Basin

t/k

Uranium Corp.

—

Eiast

South Temple St., Salt Lake City, Utah.

Forge Co., Buffalo, N. Y.
85,000 shares of common stock

7 filed

(par $I>-

Proceeds—To 11 selling stockholders.
&

Weeks,

New

York.

Under¬

Offering:—

Office—1231—24th
Bonds

St., N. W., Washington 7, D. C. Un¬

derwriter—None.

Continued

invited)

$12,000,000

(Wednesday)

a.m.

November

EST)

Bonds

$11,000,000

(Monday)
Common

underwriting)

381,018

(Tuesday)
__Bonds

invited)

New York

$4,000,000

Boston

Philadelphia

(Tuesday)

Telephone & Telegraph Co
(Bids

page

$18,000,000

Sierra Pacific Power Co

Pacific

Bonds

(Tuesday)

stockholders—no

if Bureau of National Affairs, Inc. i
20 (letter of notification) 500 shares of common
(no par). Price — $32 per share. Proceeds — To
meet current operating expenses and other obligations.

Sept.

Pittsburgh

100,000 shares

Inc

750,000

Underwriter—P. G.

Bonds
be

11:30

(Bids

Israel-Mediterranean

City, Utah.
city.

$75,000,000

invited)

November

Class

(Reynolds & Co. and Lester, Ryons & Co.)

Co., 242 N. University

stock

$20,000,000

National Fuel Gas Co;
(Offering

Inc

ex¬

Postponed indefinitely.

$300,000

(Tuesday)

November 8

(Monday)

Common

Haupt

For

Uranium & Metals Co.

(Wednesday)

October 27

(Bids

(Offering to stockholders—underwritten by
BIyth & Co., Inc.) $11,812,500

Fitzsimmons Stores,

—

Ogden, Utah. Underwriter
Co., 2306 Iowa Ave., Ogden, Utah.

writer—Hornblower

Florida Power & Light Co

$3,772,100

Cott Beverage Corp

Proceeds

Price—To be related to current market price at time of

$1,450,000

Bonds
EST)

a.m.

October 26

Debentures

Anglo California National Bank_

par.

same

offering.

Hettlemen

11:30

(Bids

Kidder, Peabody & Co.)

Bonanza Oil & Mine

July

(Monday)

Inc

—

Harrison Blvd.,

Hawk

Buffalo

$1,250,000

Louisiana Power & Light Co

Common

stockholders—underwritten

common

and 20,-

Underwriter—Van Blerkom & Co., of the same city.

Florida Power Corp

(Offering

Price

properties.

Proceeds

Preferred

(Friday)

Central Louisiana Electric Co.'

(predecessor company)

Aug. 23
(letter of notification) 15,000,000 shares of
capital stock. Price — At par (two cents per share>.
For exploration and development expenses-

Bonds

Common
&

October 19

$2,595,000

130,411

Co.

ploration and development costs.
Office—1424 Pearl
St., Boulder, Colo. Underwriter—E. V. Lamey, 6201 SandSprings Road, Fort Worth 14, Tex.

Bonneville

Inc

October 20

Telephone Co

October 8

leased

writer—L. ,D.

100,000 shares

Inc
Noel

(Thursday)
Equip. Trust Ctfs.

(Bids

American Ajax

at $1.25 per share).

New York Telephone Co

New York, New Haven & Hartford RR.

Southern New England

C&,,

000,000 shares are to be offered initially to stockholders;
of United Empire Gold Mines Co., owner of Big Horn's

mining of quicksilver.

$12,500,000

(Bids to be invited)

October 7

I of

mon

Common

Mercury Insurance Co
&

Equip. Trust Ctfs.

(Bids noon EST)

Call-Smoot

(Offering to stockholders—underwritten by Johnston, Lemon

(Wednesday)

Southern Pacific Co

—

if Big Horn Mountain Uranium Co., Boulder, Colo.
Sept. 23
(letter of notification) 30,000,000 shares of
common stock
(par one cent), of which 10,000,000 shares?
are
to be issued in exchange for outstanding shares

•

$300,000

Texas Power & Light Co

Salt Lake City, Utah.
Underwriter
Phillips Building, same city.

Sept. 13

(Friday)

October 18

American

(George D. B. Bonbright & Co.) $240,500

Big Bend Uranium Co., Salt Lake City, Utah >
Aug. 6 (letter of notification) 7,000,000 shares of comment
Price—At par (three cents per share). Proceed!)
—For mining expenses. Office—510 Newhouse BuildiDg^

Office—629
15

Witter

Syracuse Supply Co

October

Underwriter—Mitchell Securities, Inc., -Bal¬

stock.

Lake

Common

CST)

a.m.

October

Ctfs.

Common

Corp. and
34,807 shares

timore, Md.

•Co.,

(Thursday)

& Co.)

Thompson-Starrett Co.,

Co.)

Inc.)

Peabody

(Bids

$1,020,000

stockholders—to

Continental Uranium,

Webster Securities
&

ing capital.

fit

$11,000,000

Co.,

Wisconsin Public Service Corp

$15,000,000

invited)

620,000

Telebet units and Teleac systems and additions to work¬

Common

Corp

(Kidder,

$4,000,000

Equip.
Sierra

Incorporated Income Fund

Bonds
EST)

Hatch

Peabody

Inc.*.
'•

Bonds

York, Chicago & St. Louis RR.
(Bids

Gas

(Kidder,

Metropolitan Edison Co
(Bids

General

$16,500,000

Indiana & Michigan Electric Co
(Bids

—Preferred

Co., Inc
H.

Co.,

Remote

Systems, Inc., .Baltimore
of common stock (par W
cents), of which 540,000 shares are to be offered te*
public and 80,000 shares to be issued to underwriterPrice—$3.75 per share. Proceeds—For manufacture crfi
4 filed

Aug.

Black

$4,447,600

EST)

a.m.

October
Preferred

(Leej Higginson Corp.) 200,000 shares
Indiana & Michigan Electric Co
11

EST)

a.m.

Underwriter—Eaton &

Aug. 9 (letter of notification) 5,000,000 shares of capital
stock. Price—At par (two cents per share). Proceeds—
For mining operations. Office—136 S. State Street, Salt

Common

Co., Inc.) $300,000

Hudson Pulp & Paper Corp

(Bids

Bonanza Oil & Mine Corp
(L.

Automatic

Ark.
Y.

Underwriter—Weber Investment

°
'
r.v
Bonds, Debs. & Preferred

Zotox Pharmacal

October 5

Office—Rison,
New York, N.

Corp.) $150,000

Savannah Electric & Power Co.

$18,000,000

Ave., Provo, Utah.

(Wednesday)

Bonds

CST)

a.m.

Christensen, Inc., Denver, Colo.

Common

Securities

Arkansas Natural Resources Corp.
June 11 (letter of notification) 299,500 shares of com¬
mon stock (par 25 cents).
Price—$1 per share. Proceeds
—For expenses incident to drilling for magnetic iron oie_

Common
250,000 shares

Corp

(Bids

Bonds

EST) $20,000,000

Wisconsin Power & Light Co
(Bids 10:30

Writer

Big Indian Uranium Corp., Provo, Utah
July 15 (letter of notification) 500,000 shares of common
stock (par 10 cents). Price—25 cents per share. Proceed^
—For mining operations. Address—Box 77, Provo, Utah-

$8,000,000

Mississippi Power & Light Co

Public Service Co. of Colorado

shares are to be publicly offered, 1,000,006
exchange for property and 300,000 shares to be
optioned to Benjamin Arkin, President, and 200,060
shares to be optioned to underwriters. Price—Ajt par (50
cents per share). Proceeds—To repay advances and loatx
from Mr. Arkin, purchase equipment and for explora¬
tion and development expenses.
Underwriter — Petera*

—Allan W. Egbert

Debentures

(Tuesday)

Inc.)

October 13

Preferred & Common

Inc., Denver, Colo.

1,000,000

Office—3375

Clary Multiplier Corp._

Common

ISSUE

shares in

(Monday)

Nevada Southern Gas Co.l

noon

750,000

Corp

October 12

Common

(Lincoln

.(Bids

Inc.)

,,,

stockholders—no

Common

Otis,

REVISED

if Big Horn Uranium Corp., Ogden, Utah
Sept. 23 (letter of notification) 4,000,000 shares of com¬
mon stock
(par one cent). Price—Five cents per share.
Proceeds—For exploration and development expenses.

CALENDER
State

(Friday)

Underwriter—

American Uranium, Inc.,
Moab, Utah
Aug. 18 (letter of notification) 3,320,000 shares of capital
stock. Price—At par (five cents
per share). Proceeds—
For exploration and
development expenses. Underwriter
—Ogden Uranium Brokerage Co., Ogden, Utah.

Pan-Israel Oil Co., Inc

$30,350,000

to stockholders—no underwriters)

St., St. Louis, Mo.
Newhard, Cook & Co., the same city.

Bonds

Southern New England Telephone Co
(Offering

Locust

(Johnston, Lemon & Co.)

October 1
Columbia

St.

ISSUE

(Thursday)

EST)

noon

Office

Co.,

Louisville & Nashville HR
(Bids

American Transit Corp., St. Louis, Mo.
13 (letter of notification)
12,000 shares of 6%
cumulative convertible preferred stock, series A. Price—
At par ($25 per
share). Proceeds—For working capital.

Sept.

Office—1034

ITEMS

•

Sept. 7 filed 2,500,000 shares of common stock, of whjcbt

150,000 shares of capital

to be offered for

Oct.

SINCE

Arco Uranium,

—

ADDITIONS^

* INDICATES

Securities

be invited)

$50,000,000

Debentures

San Francisco

Private Wires to all

offices

Chicago

Cleveland

Consolidated

Continued jrom page

stock

(par $1)
ot record
share.\ Proceeds—For construc¬

Aug. 30 filed 140,000 shares of common stock
to be offered for subscription by stockholders

Price—$5 per

Aug. 28.

Underwriter—None. The directors
unsold shares.

tion of racing plant.

will purchase any

and their associates

Uranium

Cane Springs

Corol

Sept. 16 (letter of notification>^,200,000 shares of com¬
mon
stock (par one cent). Price—25 cents per share.

and development costs. Of¬
Salt Lake City, Utah. Under¬
writer—Luster Securities & Co., Jersey City, N. J. .
Proceeds—For exploration

•

West,

2nd

fice—404

17 (letter of notification) 100,000 shares of^class
10 cents). Price—$3 per share. Proceed*—
purchase equipment and machinery and for working
capital. Office—615 Adams St., Hoboken, N. J. Under¬
writer—Garden State Securities, same city. .
Sept.

A stock (par
To

Resources Corp.

299,000 shares of common

Aug. 19 (letter of notification)
Price—At par ($1

stock.

share).

per

Proceeds—To'ac¬

quire claims and mining equipment, erect and equip
processing plant, and for working capital. Office—Nantahala Bldg., Franklin, N. C.
Underwriter — Allen E.
Beers Co., Western Savings Fund Bldg., Phila. 7, Pa.

Inc. (10/8)
of convertible debentures due

Louisiana Electric Co.,

Central

■

Sept. 22 filed $3,772,100
1964

subscription by common stock¬

for

offered

1954, on the basis of $100 of
shares of common stock held;

record Oct. 4,

holders of

for each

debentures

supplied by

rights to expire on Oct. 27. Price—To be
amendment.
Proceeds—To retire $2^0£^000
4%% debentures due 1972 and for

outstanding

^struHion-program.
York,

Underwriter—Kidder, Peabody &/ Co., New

Corp^.,

Certain-teed Products

(jr.

(par $7) of Wm. Cameron &

Co., Waco, Tex., at

Certain-teed, plus $11.50 per
share in cash for each share of Cameron stock.
of one-half share

rate

•

111,638 shares are being offered by Photon, Inc.

stockholders on the basis of one
shares of Photon, Inc. held as of

for subscription by its
each

for

two

Sept. 21; with rights to expire on Oct. 6

(with

an over¬

shares
to its
employees. Price—$7 per share. Proceeds—For general
corporate purposes. Underwriter—G. H. Walker & Co.,
subscription privilege); and the remaining 13,362
are
to be offered by Chemical Products Corp.

Providence, R. I.
Chief Ute

Uranium, Inc.

Sept. 10 (letter of notification) 3,500,000 shares of com¬
mon stock
(par one cent). Price—Five cents per share.
Proceeds—For exploration and development costs. Of¬
fice—638 S. State St.,
—Ned J. Bowman

Salt Lake City, Utah.
& Co., the same city.

Underwriter

San

(10/12)

Gabriel, Calif.
be

—

New York,

N. Y.

Cleary Oil Co., Ltd., Calgary, Alta., Canada
Aug. 31 (regulation "D") 28,570 shares of common stock
(par $10). Price—$10.50 per share. Proceeds—For gen¬
eral corporate purposes.
Underwriter — Bailey & Co.,

Fresno, Calif.

ir Colorado Basin Associates, Inc.,
Sept. 20 (letter of notification) 12,500
stock. Price—At par ($10 per share).
and gas exploration.
Address—P. O.
Ariz.

Yuma, Ariz.
shares of common
Box

1049, Yuma.

Colorado

Mining Corp., Denver, Colo.
(letter of notification) 300,000 shares

stock

mon

mated

(par 10 cents).
$1

per

stockholders.

share).

com¬

Price—At the market (esti¬
Proceeds—To certain sellijig

• Colorado
Sports Racing Association
Aug. 19 (letter of notification) 297,995 shares of common
stock (par 10 cents). Price—$1 per share. Proceeds—For

track

and

working

Co.

(10/1)

Sept. 16 (letter of notification) 5,000 shares of common
(par $25) to be offered to common stockholders

stock

of record Sept. 30,

for

each

Price—$40
eration

per

and

1954, on the basis of five
held; rights to expire

new

on Oct. 31.
Proceeds—To convert to dial op¬
modernization and expansion of com¬

share.

for

pany's facilities.
Pa.

Office—40 North Third St.,

Columbia

Underwriter—None.

Lighting Co.

general mortgage bonds. Under¬
writer—To be determined by competitive
bidding Prob¬
able bidders: Halsey, Stuart & Co. Inc.;

Morgan Stanley

& Co.; The First Boston
for May

Corp.

Offering—Originally set

11, but has been postponed because of market

conditions.

Ira

new

date

set.

...

1954

Thursday, September 30,

of America, Inc.

Forming Machine Co.

(letter of notification) 7,000 shares of common
(par $1) being offered for subscription by stock¬
holders of record Sept. 24 for a 30-day period on a
1

stock

l-for-5 basis

(with

oversubscription privilege). Price

stockholders; $30 to public. Proceeds
—For working capital.
Office—18 Hamilton St., Bound
Brook, N. J. Underwriter—None.
—$25 per share to

Gateway Uranium Corp., Salt

Lake City, Utah

1,192,000 shares of com¬
Price — 25 cents per share.
Proceeds—For exploration and development costs, etc.
Office—Hotel Newhouse, Salt Lake City, Utah. Under¬
writer—Muir, Dumke & Co., Salt Lake City, Utah, and
Sept. 10 (letter of notification)
stock

mon

Las
•

(par 20 cents).

Vegas, Nev.

•

General Gas Corp.

143,500 shares of common stock (par $5)
in exchange for common stock of Consol¬

Sept. 22 filed
be offered

basis of 63/100ths
Consolidated share.

idated Gas Co. of Atlanta, Ga., on the

Haupt & Co., New York.

ir Creetview Memorial Park, Inc., Dallas, Tex.
Sept. 21 (letter of notification) 295,000 shares of common
stock. Price—At par

($1 per share). Proceeds—For per¬
petual-care-of cemeteries, etc.^'Office — 304 Empire
State Bank Bldg., Dallas, Tex.
Underwriter — Transwestern Investment Co., Inc., the same city.

share of General Gas for each

The offer is

subject to deposit of at least 175,000 shares
stock out of 210,000 shares outstand¬

Consolidated

ing.. Underwriter—None.

Baton Rouge, .La. J10/14)
March 19 filed 100,000 shares of common stocK ipar $5).
Price
To be supplied by amendment. Proceeds —- To
selling stockholders. Underwriter—Kidder, Peabody &
•

General Gas Corp.,

—

if Diamond Oils, Inc., Pierre, S. D.
Sept. 22 (letter of notification) 480,000 shares of common
Price—At

stock.
For

(25 cents per share). Proceeds—
Office—812 North Euclid Ave.,

par

Engineering Co.
Sept. 17 (letter of notification) $216,619 of 5% convert¬
ible income notes due Jan. I, 1961 to be offered to stock¬
holders.
Each $1 of notes is convertible into one share
if Dole

(James)

stock

common

For

working

(par $1).

Price—At

par.

Proceeds—

Office—58 Sutter St., San Fran¬

capital.

Underwriter—None.

Calif.

El Dorado

Mining Co.
Aug. 23 (letter of notification) 17,500,000 shares of com¬
mon stock.
Price
At par (one cent per share). Pro¬
ceeds— For
exploration
and
development
expenses.
Phillips Petroleum Building, Salt Lake City,
& Co., same city.

Underwriter—Van Blerkom

Eldorado

Sept. 15

Uranium

corporate purposes.

cent).

one

if Farmers Underwriters Association,
Los Angeles, Calif.
Sept. 17 (letter of notification) 3,000 shares of common
stock (par $1).
Price—$30.90 per share. Proceeds—To
John C. Tyler, Chairman of the Board.
Office — 4680
Wilshire Boulevard 54, Los Angeles, Calif. Underwriter
—Lester, Ryons & Co.,
Pacific

Federal

same

Electric

city.

Fidelity Acceptance Corp., Minneapolis, Minn.
Aug. 30 filed 6,000 shares of 7% cumulative preferred
stock (par $25), to be offered to employees; $900,000 of
5%% capital debentures and 24,000 shares of 6% cumu¬
lative class E preferred stock (par $25).
Price—At par.
Proceeds—To reduce outstanding bank loans.
Under¬
writers—M.
B.

Bishop

Co., Minneapolis,
I. Barnes, Boulder, Colo.

Minn., and

stock

on Nov. 6,
1954, at $110 per
stock expected to be $105 per
Underwriters—The First Boston Corp.; Merrill

will

share.

redeemed

Price

share.

—

new

Lynch, Pierce, Fenner & Beane; Union Securities Corp.;
and Equitable Securities Corp.
Great Basins Petroleum Co.,

Denver, Coio.

Aug. 30 filed 500,000 shares of common stock tpar $1).
Price—To be supplied
by amendment.
Proceeds—To
repay

First

bank loans and reduce other debt.
California Co., Inc.,

Underwriter-

San Francisco, Calif.

if Great Chief Uranium Co., Salt Lake City, Utah
Sept. 20 (letter of notification) 20,000,000 shares of
common
stock. Price — At par (one cent per share).
Proceeds
For exploration and development costs, etc.
Office
412 Walker Bank Bldg., Salt Lake City, Utah.
Underwriter—Havenor-Cayias, Inc., same city.
—

—

States

Utilities Co.

..-i.

■

May 14 filed 160,000 shares of preferred sto9k (par $100).
Proceeds — To redeem 50,000 shares of $4.50 dividend

preferred stock, 60,000 shares of $4.40 dividend preferred
stock, 1949 series, and 50,000 shares of $4.44 dividend

preferred stock at the prevailing redemption prices of
$105. $105, and $105.75, respectively.
Underwriter—To
be determined by competitive bidding.
Probable bid¬
ders:
Stone
&
Webster
Securities
Corp.;
Lehman
Brothers and Equitable
Loeb & Co.;
Co.

Securities Corp. (jointly); Kuhn,

Glore, Forgan & Co. and W. C. Langley &

Bids—Had tentatively been expected to be
11:30 a.m. (EDT) on June 15 at The
Bank, 70 Broadway, New York, N. Y., but of¬

(jointly).

received

Hanover

fering has been postponed.

Financial Credit Corp.,
Jan. 29 filed 250,000 shares

New York
of 7% cumulative sinking
fund preferred stock. Price—At par ($2 per share). Pro¬
ceeds—For working capital. Underwriter—E. J. Foun¬
tain & Co., Inc., New York.
it Fine Arts Acceptance Corp.
Sept. 23 (letter of notification) 3,600 shares of common
stock and 3,000 shares of preferred stock. Price—At par
($25 per share). Proceeds—For working capital. Office
12 South 12th St., Philadelphia, Pa.
Underwriter —
—

None.
First Railroad &

the
The
exchange will be from Sept. 15 to Oct. 4. Unexchanged

Gulf

Underwriter—H. M.

change, together with $5.13% per share in cash, for
outstanding 433,869 shares of $6 preferred stock.

Co.

(letter of notification)

8,500 shares of common
stock
(par $1).
Price—At market (aggregate not to
exceed $100,000).
Proceeds—To a selling stockholder.
Sept. 17

/—

Georgia Power Co.
/
Aug. 26 filed 433,869 shares of $4.60 cumulative pre¬
ferred stock (no par) which are being offered in ex¬

Corp., Austin, Nev.
2,500,000 shares of com¬

Price—10 cents per share.
Proceeds—For exploration and development costs. Un¬
derwriter—Allied Underwriters Co., Las Vegas, Nev.
(par

•

Office—Washington,Under¬

writer—None.

(letter of notification)

stock

mon

Insurance Co.

filed 50,000 shares of class A common stpck
Price—$10 per share. Proceeds—For general

(par $1).

—

Office—223

General Services Life

Sept.

Underwriter—None.

Pierre, S. D.

Co., New York.

working capital, etc.

Gulf

States

Utilities Co.

$24,000,000 of first mortgage bonds due
June 1, 1984. Proceeds—To redeem $10,000,000 of 3%%
first mortgage bonds due 1981 and $10,000,000 of 3%%
first mortgage bonds due 1983, and for general corpo¬
rate purposes.
Underwriter—To be determined by com¬
Mdy

filed

petitive bidding.
Probable bidders: Halsey, Stuart &
Co. Inc.; Lehman Brothers; Merrill Lynch, Pierce, Fen¬
ner
& Beane and White, Weld & Co. (jointly); Salo¬
mon Bros. & Hutzler and Union Securities Corp.; Kuhn,
Loeb & Co. and A. C. Allyn & Co., Inc. (jointly); Lee
Corp. and Carl M. Loeb, Rhoades & Co.
(jointly); Stone & Webster Securities Corp. Bids—Had
tentatively been expected to be received up to 11 a.m.
(EDT) on June 15 at The Hanover Bank, 70 Broadway,
New York, N. Y., but offering has been postponed.^
Higginson

Banking Co. of Georgia

July 30 filed 42,000 units, each consisting of one share
of common stock, one warrant to subscribe at $4.10 per
share to 13 shares of common stock, and one $250 5%
collateral trust bond due Aug. 1, 1988, being offered for

North Kansas City, Mo.

Gulf Sulphur Corp.,

each of the

42,000 shares of outstanding common stock
plan of readjustment; also 756,000 shares
of common stock, which includes 546,000 shares subject
to subscription at $4.10 per share upon exercise of war¬

per

pursuant

15 filed 92,310 shares of 60-cent cumulative con¬
vertible preferred and participating stock (par 10 cents),

Sept.

Johnson, Lane, Space & Co., Savannah, Ga., who will
also purchase such of the 546,000 shares of common stock
not sold upon exercise of warrants.! The exchange offer

to be offered publicly at $10
share and 35,000 shares to be sold to V. V. Jacomini,
a
partner of Tehuantepec Co., on an investment basis,
at $8.50 per share.
Proceeds — For operating expenses
and exploration development.
Underwriters — For the
•57,310 shares, Fridley & Hess and Crockett & Co., both

will

days from date of issuance, and 210,000

shares being offered to

expire

public at $4.50

per

share through

Oct. 5.

which 57,310 shares are

Houston, Tex.

•

Fitzsimmons Stores,

Ltd.,

Hawaiian Electric

(10/11-15)

(par $1).
amendment.
Proceeds—To
loans and to increase

Sept. 21 filed 100,000 shares of class A stock
Price—To

Consol. Edison Co. of New York, Inc.
April 7 filed $50,000,000 of first and refunding mort¬
gage bonds, series K, due May 1, 1984. Proceeds—To be
applied towards cost of redeeming $27,982,000 New York
Steam Corp. first mortgage bonds and
$25,000,000 West¬
chester

and 80,000 shares for certain selling stockholders.
Price—To be supplied by amendment.
Proceeds—For
expansion.
Office—New Haven, Conn.
Underwriter—•,

•

Sept.

rants within 30

capital.
Office —
Equitable Bldg., Denver, Colo. Underwriter — General
Investing Co., same city. Statement withdrawn.
Columbia Telephone

$1.50),

120,000 shares are for the account of the com¬

pany

Underwriter—L. D. Friedman & Co., Inc.,

New York.

construction

(10/11-12)

Proceeds—For oil

Underwriter—None.

Aug.

Cott Beverage Co.

Byllesly & Co. (Inc.), Chicago, 111.

(par $1).
supplied by amendment. Proceeds —To
retire bank loans, to develop new electronic digital com¬
puter and other products and for working capital. Un¬
derwriter—Blyth & Co., Inc., San Francisco, Calif., and-

Sept. 27 filed 250,000 shares of common stock
Price

•

Aug. 27 filed 200,000 shares of common stock (par

Office—50 Paris St., Newark, N. J.

Clary Multiplier Corp.,
i

properties, for development and drilling program and
fpr general corporate purposes. Office — Chicago, 111.
Underwriter—Van Alst.yne, Noel & Co., New York.

(par $1),

Aug 27 filed 125,000 shares of common stock
of which

^Continental Uranium, Inc. (10/15-20)
Sept. 24 filed 500,000 shares of common stock (par 10
cents).
Price—$2.50 per share.
Proceeds—To pay for

Utah.

Products Corp.

Chemical

Office—U. S. Highway 52, By-Pass,

cisco,

Ardmore, Pa.

Sept. 28 filed 412,950 shares of common stock (par $1)
to be offered in exchange for 825,900 shares of capital
stock

Price—$3.37lk per share. Proceeds—To
to increase working capital.
Lafayette, Ind. Un¬
derwriter—Swift, Henke & Co., Chicago, 111.
(par $1).

current liabilities and

pay

of which

of America

Caramba McKake Corp.

Carolina

Industries, Inc., Lafayette, Ind.

Sept. 10 (letter of notification) 31,000 shares of common

East St. Louis, III.

Cahokia Downs, Inc.,

kj)

Financial Chronicle

The Commercial and,

(1314)

supplied

retire bank and insurance company

working

capital.

Underwriters—Reynolds

Co., New

Co., Ltd., Honolulu
Sept. 14 filed 50,000 shares of common stock (par $20)
to be offered for subscription by stockholders at rate of
one
new
share for each 13 shares held.
Price—/To be

Proceeds
Underwriter—None.

supplied by amendment.

—

York, and Lester, Ryons & Co., Los Angeles, Calif.

program.

if Florida Power Corp. (10/26)
28 filed $12,000,000 of first mortgage bonds due
1984. Proceeds—For construction program. Underwriter
—To be determined by competitive bidding.
Probable

Sept. 9 (letter of notification) 75,000
stock (par 25 cents). Price—$2 per

bidders:

manufacture and assembling

Sept.

Halsey, Stuart & Co. Inc.; Kidder, Peabody &
Co. and Merrill Lynch, Pierce, Fenner & Beane (joint¬
ly); The First Boston Corp.; Lehman Brothers; Glore,
Forgan & Co. Bids—Expected to be received on Oct. 26.

Hercules

repay

Plastics

valve.

York, N. Y.

Npw Ynrk

(10/12)

Corp.

shares of common

share. Proceeds—
$17,500 loan; for cost of mold, $20,000; for

breaker-check
New

For construction

of dishwasher and vacuum

Office

—

Rochefeller

Plaza,

Underwriter—Lincoln Securities Corp.,

Volume 180

Number 5364

The Commercial anfl Financial Chronicle

(1315)
Home Telephone & Telegraph Co.
Sept. 10 (letter of notification) 36,000 shares of common
stock (no par), to be offered for subscription by stock¬
holders (of which 27,358 shares will be purchased by
Telephone Bond & Share Co., the parent). Price—$20
per share.

Proceeds—For construction

ing capital.' Office—303
Underwriter—None.

E. Berry

costs

and

reserve for acquisition of additional
properties. Under¬
writer—Peter Morgan &
Co., New York. Offering—Ex¬

pected later in September.

Mississippi Power & Light Co. (10/13)
Sept. 3 filed 44,476 shares of cumulative preferred stock
(par $100) to be offered in exchange for a like number

Lorain

Sept.

work¬

St., Fort Wayne, Ind.

Telephone Co., Lorain, Ohio
(letter of notification) 2,500 shares of common
pfcr) to be first offered for subscription by

•stock

outstanding shares of $6 cumulative preferred stock
(no par)
on
a
share-for-share basis
(with a cash
adjustment). Underwriter—To be determined by com¬
petitive bidding.
Probable bidders: Union Securities

(no

stockholders.

Price—$20

per share.
Proceeds—To re¬
expenditures already made for
additions to property.
Office—203 West Ninth Street,
Lorain, Ohio.
Underwriter—None.

imburse

★

Hudson Pulp & Paper Corp., N. Y. (10/5)
Sept. 15 filed 200,000 shares of cumulative second pre¬
ferred stock.
Price — To be supplied by amendment.

treasury

for

Corp. and Equitable Securities Corp. (jointly); Lehman
Brothers; Blyth & Co., Inc. and Shields & Co. (jointly);
White, Weld & Co. and Kidder, Peabody & Co. (jointly);

—

For expansion

Louisiana Power & Light Co.

Under'—Her—Lee

program.

Sept.

★ Husky Oil Co., Cody, Wyo.
Sept. 29 filed 14,899 shares of 6% cumulative „Lst pre¬
ferred stock
(par $100). Price — To be supplied by
amendment.

First Trust Co. of Lincoln, Neb.

'Incorporated Income

Fund

Sept. 15 filed 750,000 shares of

(10/14)
stock

common

(par $1 J.¬

Price—Expected to be around $8 per share. Proceeds—
For investment.
Office—Boston, Mass. Underwriter—
Kidder, -Peabody & Co., New York.
Indiana

Sept.

filed

Michigan Electric Co. (10/5)
$16,500,000 of first mortgage bonds

due
40,000 shares of cumulative preferred stock
(par $100). Proceeds—To repay bank loans and for new

1984

and

construction.

Underwriter—To be determined by com¬
petitive bidding. Probable bidders: (1) For bonds—Halsey, Stuart & C6. Inc.; Union Securities Corp., Goldman,
Sachs & Co. and White, Weld & Co.
(jointly); The First

Boston

Corp.; Harriman Ripley & Co. Inc.; Kuhn, Loeb,
Co.; (2) for preferred—The First Boston Corp.; Smith,
Barney & Co.; Lehman Brothers; Union Securities Corp.
Bids—To be received
office

Church

American

Gas

to 11
&

(EST)

a.m.

Electric

Oct. 5 at

Service

Corp.,

St., New York 8, N. Y.

★ International Casualty Corp., Montgomery, Ala.
Sept. 20 (letter of notification) preorganization subscrip¬
tions for 100,000 shares of common stock
(par $1). Price

—$3

share.

per

Proceeds—For

reserve

and surplus.

Un¬

St., Montgomery, Ala.

Investment Corp. of America
Aug. 30 (letter of notification) 3,799 shares of cumula¬
tive preferred

stock

(no par) and 3,799 shares of com¬
Price—For preferred, $20 per share,
common, $2 per share.
Proceeds—For working
Office—3603 Broadway, San Antonio, Tex. Un¬

mon

stock (no par).

and

for

capital.
derwriter—Interior Securities, Inc., San
Antonio, Tex.
★
Israel-Mediterranean Petroleum, Inc. (10/11)
Sept. 21 filed American voting trust certificates for

900,000 shares of common capital stock (par one cent),
of which 750,000 shares are to be offered to
public. The
remaining 150,000 shares to be under option to under¬
writers.

Price—Last sale

on American
Stock Exchange
day preceding the offering. Purpose—For exploratory
drilling and development of presently held acreage in

Israel.

Underwriter—Gearhart & Otis, Inc., New York.

★ Kansas Oil Co., Inc., New York
Sept. 20 (letter of notification) 25,000 shares of common,
stock (par 10 cents). Price—At market
(estimated at 35
cents
per
share). Proceeds—To Eugene O. Kronisch,
President.

Underwriter—George B. Wallace & Co., New

$12,000,000 4%
Underwriter—To be de¬

construction.

Keystone Fund of Canada, Ltd., Montreal, Canada
Aug. 2 fil|ed 1,250,000 shares of capital stock. Pricebe supplied by amendment. Proceeds—For
invest¬
ment. Underwriter—The
Keystone Co. of Boston, Boston,
Mass.

exploration

and development expenses.
South, Salt Lake City, Utah. Under¬
Securities, Inc., the same city.

mnr>

stock.

Price

common

—

Mars Metal Corp., San Francisco, Calif.
July 23 filed 121,000 shares of class A stock (par 10 cents)
and 3,000,000 shares of common stock.
It is planned to
sell at $2.50 per share 75,000 class A shares
privately,

capital
ceeds
,

exercise of

like number of warrants granted to certain
dealers in connection with public offering by F. W. Ste¬

class B stock.
when

Price—Of common, may be $2.50 per share

offered.

For

record

McCluskey Wire Co., Inc., New Haven, Conn.
June 21 (letter of notification)
$95,000 of 5% debentures,
series A, due July 1,
1962, and $95,000 of 6% debentures,
series B, due July 1, 1970.
Proceeds—To acquire assets
and

business of H. & T. McCluskey & Sons, Inc. Office
Grand Avenue, New Haven, Conn. Underwriter—

stock.

Price—At

par

($1

working capital. Office—315
Underwriter—None.

Calif.

Barnes, Bodell & Goodwin, Inc., New Haven, Conn.
com¬

share). Proceeds—For
Eighth Ave., San Mateo,

Merritt-Chapman & Scott Corp.

per

Underwriter—J. P. Marto & Co.,

debentures.

Ladorrc Mines Ltd.,

Montreal, Canada
(regulation "D") 600,000 shares of common
(par five cents). Price—50 cents per share. Pro¬
ceeds—For exploration, etc.
Office—3455 Stanley St.,
Montreal, Canada. Underwriter
Daggett Securities,
Inc., Newark, N. J.
/
30

stock

offered

common stock (par $12.50)
exchange for stock of the Marion
Osgood Co. on the basis of three

Shovel Co. and

shares for each

two

Marion Power

common

two shares for each three shares of

and class B stock not held

shares, and

Osgd^d Co.'s class A

by Marion Pow&r Shovel Co.

Underwriter—None.

—

Lake Lauzon

Metropolitan Edison Co. (10/5)
Sept. 3 filed $15,000,000 of first mortgage

Mines, Ltd., Toronto, Can.
Aug. 2 filed 660,000 shares of common stock (par $1,
Canadian), of which 500,000 shares are to be offered in

mortgage bonds due

behalf

construction

the

company and 160,000 shares for account
of Percy E. Rivett. Price—40 cents
per share, tJy S. funds.
Proceeds — For development and
exploration expenses.
Underwriter—To be named by amendment.

if Lester Engineering Co., Cleveland, Ohio
Sept. 22 filed 100,000 shares of common stock (par $J),
of which 85,000 shares are to- be offered to
public and
15,000 shares to stockholders and members of their
families.

Price—To public,

holders, $5.25

per

share.

share; and to stock¬

per

Proceeds—To be used

part

payment for certain assets of The Phoenix Machine

Underwriters—Saunders,

Stiver

Co.

and

The

Co.

First

Cleveland

Corp., both of Cleveland, O.
★ Lincoln Telephone & Telegraph Co.
—
Sept. 22 (letter of notification) 9,623 shares of common
stock
(par $16%) to be offered for subscription by
stockholders of record

Sept. 1

the

basis of

one

new

share for each 19 shares

held; rights to expire on Nov. 2,
$26 per share.
Proceeds
For working
capital. Office—1342 M St., Lincoln, Neb. Underwriter—
Price

1984.

—

lice Utilities

program.

Denver, Cofo.

June

18 filed 1,000,000 shares of common
stock (par 10
cents). Price—$1.25 per share. Proceeds—For explora¬
tion and development costs, purchase of

equipments and

due

$8,000,000 of 3%% first
bank loans and for

repay

Underwriters—To be determined

Corp., 67 Broad St., New York, N. Y.

★

Middle South Utilities, Inc.
Sept. 1 filed 475,000 shares of common stock (par $10)
being offered for subscription by common stockholders
of record Sept. 22 on the basis of one new share for each
15 shares held (with an oversubscription
privilege);
rights to expire Oct. 8. Price—$28 per share. Proceeds
—Tcp retire $12,000,000 of bank loans and for investment
in the System companies and for other
corporate pur¬

Underwriter—None.

poses.

★ Milton Roy Co.
Sept. 23
B

common

stock

(letter of
stock

notification)

(no par)

and

9,000

shares of

class

1,000 shares of preferred

(par $50).

Price—For common, $17.89 per share;
preferred, $50 per share. Proceeds—To reduce
for working capital.
Business—Manufactures
controlled volume chemical pumps andr-chemical feed
and

Uranium Corp.,

redeem

1983; to

bonds

by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; White, Weld & Co.;
Kidder, Peabody & Co.
and Drexel & Co. (jointly); Kuhn, Loeb & Co. and Salo¬
mon
Bros. & Hutzler (jointly).
Bids—To be received
up to noon (EST) on Oct. 5 at offices of General Pub-

—

None.
Loma

Proceeds

debt

for

ami

systems. Office—1300 East Mermaid Lane, Chestnut Hill,

Philadelphia, Pa.

Underwriter—None.

Price—At

Office

working capital.

Pro¬

par.

101

—

Pine

St.,

C. Underwriter—None.

about

each

Nov.

the

basis

one

new

held

★ Nevada Southern Gas Co.
(10/4-5)
Aug. 30 filed 20,000 shares of 6% first preferred stock
(par $20) and 100,000 shares of common stock (par $1).

Price—Of

preferred, $20 per share; and of common, $6
share. Proceeds—To repay obligations of the com¬
pany incurred in connection with the acquisition of the

per

business

and

assets

—First California Co.,

Las Vegas

Gas Co.

Underwriter

Inc., San Francisco, Calif.

★ New
England Electric System
Aug. 20 filed 910,883 shares of common stock (par $1)
being offered for subscription to common stockholders
on

at
on

the

basis of

one

the

business

Oct.

14.

struction

new

Price—$15

per

each

held

Sept. 29; rights to expire
share.
Proceeds—To con¬

subsidiaries. . Underwriter—
Blyth & Co., Inc., Lehman Brothers and Bear, Stearns
&

Co.

program

share for

its

(jointly). *

★ New England Fund, Boston, Mass.
Sept. 23 filed 100,000 shares of beneficial

interest

Proceeds—For investment.

New Silver Belle Mining Co., Inc., Almira, Wash.
Sept. 8 (letter of notification) 500,000 shares of common
stock (par two cents).
Price—10 cents per share. Pro¬
ceeds—For exploration and development costs.
Under¬
writers—Percy Dale Lanphere and R. E. Nelson & Co^
both

Spokane, Wash.

★ New York telephone Co.

(10/19)

Sept. 29 filed $75,000,000 of 35-year refunding mortgage

Sept. 7 filed 448,868 shares of
Power

of comshare. Proceeds—For

(with an oversubscription pri¬
vilege); rights to expire about Nov. 29. Proceeds—For
construction program. Underwriter—None.

phens Co., New York,- of 199,000 class A shares.
The
registration statement may be amended to change the
designation of the 121,000 shares of class A stock to

per

if National Fuel Gas Co. (11/8)
Sept. 29 filed 381,018 shares of common stock (no par)
to be offered for subscription by common stockholders

remaining 46,000 shares to be issued to provide
working capital or funds for, investment. Of the com¬

stock, 320,000 shares are to be reserved for holders
of class A stock; 172,000 shares for issuance at 10 cents
per share pursuant to stock options given to certain key
employees; and 100,000 shares are reserved for issuance
at $1.50 per share during the years 1955-1957
upon the

Price—$5

subordinated
—

Spartanburg, S.

the

mon

(par $1);

★ National Discount Corp., Spartanburg, S. C.
Sept. 20 (letter of notification) $250,000 of 20-year 6%

for

At par ($10 per share).
Proceeds — To
Hungarian language paper. Office—30-60 29th
St., Astoria, L. I., N. Y. Underwriter—None.

ctock

working capital, etc.
Boston, Mass.

★ Magyar Publishing Co., Inc.
Sept. 23 (letter of notification) 10,000 shares of

Underwriter—None.

Natick Industries, Inc., Natick, Mass.
March 10 (letter of notification) 58,800 shares

—

—527

★ Kilburg (James) Corp., San Mateo, Calif.
Sept. 20 (letter of notification) 100,465 shares of

1954.

Nevada.

★ Mountain Systems, Inc. (N. Y.)
Sept. 28 (letter of notification) 800 shares of common
stock
(no par). Price—$50 per share. Proceeds—For
working capital.
Office—94 Lake St., White Plains,

Underwriter—None.

writer—Mid-Coninent

May 19 (letter of notification) 30,000,000 shares of com¬
stock. Price—At par (1 cent per share). Proceeds—
For mining expenses.
Office—1117 Miner St., Idaho
Springs, Colo. Underwriter—Underwriters, Inc., Sparks,
mon

manufacturing facilities (golf and athletic equipment).
Office
4861
Spring Grove Ave., Cincinnati, Ohio.

Office—65 East 4th

Co., Salt Lake City, Utah.

Mountain States Uranium, Inc.

the Fund. Price—At market.

July

Dumke &

MacGregor Sport Products, Inc.
Sept. 22 (letter of notification) 15,500 shares of common
stock
(par $7).
Price—$15 per share.
Proceeds—For

Proceeds—For

(par 10 cents). Price—20 cents per share.
mining operations.
Underwriter—Muir,

Proceeds—For

Magic Metals Uranium Corp.
Sept. 14 (letter of notification) 2,995,000 shares of com¬
mon stock
(par one cent),* Price — 10 cents per share.

stock

mon

Uranium, Inc., Salt Lake City, Utah
|Sept. 16 (letter of notification) 4,000,000 shares of common stock (par one cent).
Price—Three cents per share.
Proceeds—For exploration and development costs. Office
—239 Ness Bldg., Salt Lake City, Utah.
Underwriter—
Utah Securities Co., same city.

York.

mon

Monterey Uranium Corp., Salt Lake City, Utah
Aug. 13 (letter of notification) 1,500,000 shares of com¬

Mac Fos

derwriter—Jack Walden, Old South Life
Bldg., 79 Com¬
merce

redeem

bonds due
bonds due

Probable bidders: Halsey, Stuart & Co. Inc.; White, Weld & Co. and Shields
& Co. (jointly); Salomon Bros. & Hutzler; Kuhn, Loeb
& Co., Lehman Brothers and A. C. Allyn & Co. Inc.
(jointly); Merrill Lynch, Pierce, Fenner & Beane and
Kidder, Peabody & Co. (jointly); Union Securities Corp.
and Wertheim & Co. (jointly); Blyth & Co.,
Inc.; W. C.
Langley & Co., The First Boston Corp. and Glore Forgan
& Co.
(jointly); Harriman Ripley & Co, Inc. Bids—
Expected Oct. 20,

Underwriter—

expenses, etc.

new

Langley & Co. and The First Boston Corp. Bids—
Expected to be received up to 11 a.m. (EST) on Oct 13,
at 2 Retcor St., New
York, N. Y.

(10/20).

$18,000,000 of first mortgage

termined by competitive bidding.

outstanding shares
stock of Gate City Steel Works, Inc.

of'Omaha, and for drilling

Proceeds—To

1983, and for

Proceeds—To purchase

of prior preferred

14 filed

1984.

Higginson Corp., New York.

W. C.

Proceed

bonds, series H, due Oct. 15, 1989. Proceeds—To refund
$35,000,000 of 37/a% series G bonds and repay bank loans.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb
& Co.; Morgan Stanley & Co.; Merrill Lynch, Pierce,
Fenner & Beane and Glore, Forgan & Co. (jointly). Bids
—Expected to be received on Oct. 19.
Northern California Plywood, Inc.
Sept. 13 filed 300 shares of common stock (par $5,000)
and 5,000 shares of 5% cumulative participating pre¬
ferred

stock (par $100).
Price—At par. Proceeds—To
purchase properties of Paragon Plywood Cerp. and pur¬
chase of raw materials.
Office
Crescent City, Calif.
Underwriter—None. Sales to be made through Raymond
Benjamin Robbins.
—

Northern Oil & Gas Corp., Bismarck, N. D.
Sept. 16 (letter of notification) 250,000 shares of 6%
preferred stock (par $1) and 50,000 shares of common
stock (par $1) to be offered in units of five shares of
preferred and one share of common stock. Price—$6 per
unit.
Proceeds—For oil and gas exploration.
Office—
408% main St., Bismarck, N. D.
Underwriter—Transwestern Investment Co., Inc., Dallas, Tex.
.

Northwest

Defense

Minerals,

Inc.

Aug. 12 (letter of notification) 300,000 shares of common
stock, of which 270,000 shares are to be offered to public
and 30,000 shares to underwriter.
Price—$1 per share.
Proceeds—For
mining operations.
Office—2101 S St.,
N. W.,

Washington, D. C. Underwriter—Mitchell Securi¬

ties, Inc., Baltimore, Md.
1

01 Jato

Uranium Co.,

Salt Lake City, Utah

Aug. 5 (letter of notification) 1,750,000 shares of common
stock (par one cent).
Price—15 cents per share. Pro¬
ceeds—For mining operations.
Office—114 Atlas Bldg.,

Continued

page

Chronicle... Thursday, September

The Commercial and Financial

(1316)

—

Rocky Mountain

other

for

A" Olin Mathieson Chemical Corp.
Sept. 24 filed 642,585 shares of common stock (par $5)
to
be offered under "Restricted Stock Option Plans"
to certain officers and other employees of company and
its subsidiaries.

200 shares of common
share). Proceeds—For
expansion and working capital. Business — New and
used industrial equipment.
Office — 3717 Filbert St.,
Philadelphia 4, Pa. Underwriter—None. ■
Corp.

(letter of notification) 15,000 shares of common
stock (par $1). Price—At market. Proceeds—To a sell¬
ing stockholders. Underwriters — Troster, Singer & Co.,
New York, N. Y., and C. F. Cassell & Co., CnarlottesAug. 23

ville, Va.

Co., Salt Lake City, Utah.

Samicol Uranium Corp.,

Proceeds—For exploratory
drilling and development of presently held acreage in
Israel.
Underwriter—Gearhart & Otis, Inc., New York.
day preceding the offering.

-peerless Casualty Co., Keane, N. H.
Sept. 24 filed5 170,000 shares of common stock (par $5)
to be offered for subscription by common stockholders
the basis of

Price—To
increase

one

new

amendment.
Proceeds—To
surplus. Underwriter — Kidder,

supplied

capital

held.

share for each two shares

and

Peabody & Co., New York.

A Penobscot Chemical Fibre Co., Bangor, Me.
Sept. 27 filed $1,400,000 first mortgage 4Vs% bonds due
Oct.
l, 1974.
Price—To be supplied b.y amendment.
Proceeds
To redeem $1,124,000 of outstanding 5%
v

—

stock
Underwriters—Coffin & Burr, Inc.

and 2,942 shares of 7% preferred

bonds at 103 xk%
at

$103

Hr Permachem Corp., West Palm Beach, Fla.
(letter of notification) 49,917 shares of class A
common stock
(par 10 cents), to be offered to under¬
writers pursuant to options at par and then to public
at market.
Proceeds—For general corporate purposes.
Sept. 23

—

S. D.

Fuller & Co.

and Vermilye Bro¬

thers, both of New York; Emco, Inc., Palm Beach, Fla.;
Miller Securities Co., Forest Hills, L. I., N. Y.

(10/4)
of first mortgage bonds due

6ervICC r-o- Of Colorado

Public

filed

Sept.

1984.

Proceeds—To repay bank

$20,000,000

loans Slid foF new Con¬

Underwriters—To be determined by competi¬

struction.

& Co.
Inc.; Kuhn, Loeb & Co.; The First Boston- Corp.; Dean
Witter & Co.; Harriman Ripley & Co., Inc. and Union
Securities Corp.
(jointly); Lehman Brothers; Kidder,
Peabody & Co.; Blyth & Co., Inc. and Smith, Barney &
Co. (jointly). Bids—To be received up to noon (EST)
bidding.

^ikOct.

Probable

bidders:

Guaranty

Trust

Halsey, Stuart

Co.

New

York,

140

Broadway, New York 15, N. Y.

* Puritan Fund, Inc., Boston, Mass.
Sept. 22 filed 50,000 'shares of capital
Price—At market.

Underwriter—Blyth

stock

(par $1).

Proceeds—For investment.

Quaker Warehouse Co., Inc., Philadelphia, Pa.
10 filed $900,000 of 10-year 6% debentures due
Sept. 1, 1964, to be offered to stockholder members of
Sept.

Quaker City Wholesale Grocery Co., a 100% cooperative
retail grocer owned organization.
Price—At par. Pro¬
ceeds—To purchase building, and for modernization and
improvements.

Underwriter—None.

At Rapid Electrotype Co., Cincinnati, Ohio
(letter of notification) an undetermined

ran

aggregate

common

total

stock.

Price—Not

Blyth

Pro¬

working capital. Office—21 West 46th Street,
36, N. Y. Underwriter—Jerome Rosenberg,
Future Estate Planning 630 McLean
Ave., Yonkers, N. Y.

At Rieser's

(H. F.) Sons, Inc.
Sept. 22 (letter of notification) 99.900 shares of class A
common stock (par 10 cents).
Price—$3 per share. Pro¬
ceeds—To

repa.y bank loan and for working
capital.
Office—West Leesport, Pa. Business—Engaged in man¬

ufacture, scientific compounding and processing of live¬
feeds, for dairy cattle, poultry and swine. Under¬

stock

Corp., New York.

be received up

who

selling stockholder.

ties, Corp., New York.

Office—521

Bids—Tentatively expected to

to 11 a.m. (EST) on Oct. 13.

West

Hoffman

Underwriter—Aetna

Securi¬

stock (par $1)
City o£
Florence, Ala., 5% first mortgage industrial develop¬
ment revenue bonds on the basis of 500 shares of stock
for each $1,000 bond up to and including Aug. 31, 1958;
333 shares per $1,000 bond thereafter and up to and
including Aug. 31, 1963; 250 shares thereafter and up
to and including Aug. 31, 1968; and 200 shares there¬
after to Oct. 15, 1977.
It is the present intention of the
management of the company to hold any bonds so
to

Sept. 16 filed 30,000 shares of preferred

stock, series A

Oct. 13. '

Ar Syracuse Supply Co. (10/5)
Sept. 22 (letter of notification) 26,000 shares of common
stock (par $8).' Price—$9.25 per share.
Proceeds—For
expansion and modernization of company's sales and
service facilities and for working capital.
Office—314
W.

A-Tampa Marine Co., Tampa, Fla.

purchase
and to

Price—At

Inc.
(letter of notification) 240,000 shares of class
stock (par $1).
Price—$1.25 per share.

convertible

working capital, etc. Underwriter—Whit¬
York,

Sierra Pacific Power Co.

(10/5)

preferred stock held and
shares held (with

common

new

one

share for

oversubscription

privilege); rights to expire on Oct. 22. Price—To be
supplied by amendment. Proceeds—To repay bank loans
and for new construction. Underwriters—Stone & Web¬

New Y'ork; and De§a Witter &
Co., San Francisco, (J&Iif.

ster Securities £orp.,

(10/1)
capital stock (par $25) to
be offered for subscription by stockholders of record
Sept. 29 on the basis of one new share for each nine
shares then held; rights to expire on Oct. 29.
Price—
$30 per share.
Proceeds — To repay advances from
American Telephone & Telegraph Co., which owns 1,173,696 shares (or 26.67%) of the 4,400,000 shares pres¬
Southern New

England Telephone Co.

Sept. 17 filed 488,888 sharps of

ently

Underwriter—None.

outstanding.

A Southern New England Telephone Co. (10/7)
Sept. 17 it was announced American Telephone & Tele¬
graph Co. plans to sell the 1,173,696 rights which it will
ing

Texas

connection

Southern

shares of its

with

New

common

England

abovementioned

488,888

offer¬

additional

l-for-9
by competitive

stock at $30 per share on a

Underwriter—To

basis.

the

determined

bidders: Putnam & Co., Chas W.
Scranton & Co. and Cooley & Co. (jointly); White, Weld
bidding.
& Co.

Probable

Bids—Expected to be received up to 11 a.m. (EST)

Oct. 7.

Financial Corp.,

Dai'.as, Texas

Aug. 30 (letter of notification) 285,000 shares of common
stock (par 10 cents) to be offered first for subscription
by stockholders of Texas Industries, Inc. Price—$1 per
share.

Proceeds—To purchase equipment

Sprague Engineering Corp.
Sept. 7 filed 142,500 shares of common stock (par $1).
Price—To be supplied by amendment, of which the com¬
pany

will' offer
to

Proceeds—To

repay

corporate purposes.
—William R. Staats

for

the

shares,

112,500

offered

account

remaining

30.000

selling stockholders

general
Office—Gardena, Calif. Underwriter
& Co., Los Angeles, Calif.
bank

loans

and for other

Star Uranium

Corp., Salt Lake City, Utah
Aug. 2 (letter of notification) 6,000,000 shares of comnoohPstock

(par
—

cent). Price—Five cents per share.
exploration and development costs.

one

For

State

Loan

Finance

City, Utah.

(10/11)
Sept. 10 filed $8,000,000 of convertible capital debentures
due Sept. 15, 1969.
Price—To be supplied by amend¬
ment.
Proceeds—To
reduce
outstanding bank loans.
&

Sulphur Co.'":--":

International

filed 455,000 shares of common stock (par 10
cents), of which 385,000 shares are to be offered,farsubscription by common stockholders at the rata.o£bne
new share for each 4Y2
shares held; and 70,000 shares
are for account of certain selling stockholders. Price—To
June 21

supplied by amendment. Proceeds—For exploration
drilling, and payment of bank loans and advances.

Underwriter—Vickers Brothers, New York, on a "best ef¬
forts" basis.

Offering—Expected early in October.

Light Co. (10/18)
of first mortgage bonds due
3"%% first mortgage bonds

$20,000,000

Proceeds—To redeem

1983, and for new construction.
Underwriter — To
competitive bidding. Probable bidders:

due

be determined by

Halsey, Stuart & Co. Inc.; Union Securities Corp. and
Salomon Bros. & Hutzler (jointly); Blyth & Co., Inc.,
Kidder, Peabody & Co. and Merrill Lynch, Pierce, Ten¬
ner^ Beane (jointly); White, Weld & Co.; Kuhn, Loeb

Co.; Equitable Securities Corp.
Bids—Expected to
received up to 11:30 a.m. (EST) on Oct. 18 at Room
2033, Two Rector St., New York 6, N. Y.

Sept. 10 filed 34,807 shares of common stock (par $15)
to be offered for subscription b.y common stockholders
of record Oct. 5 on the basis of one share for each five
shares

Proceeds — For construction of stevedoring
purchase of additional barges qnd working

capital.

1984.

Selevision Western,

•

use

share.

Sept. 22 filed

Proceeds—For investment.

ney-Phoenix Co., Inc., New

not less than 165,000 shares
its best efforts to sell the balance. Price—$3

distribution

for

Texas Power &

At Scudder, Stevens & Clark Fund, Inc.,
Boston, Mass.
Sept. 27 filed 100,000 shares of capital stock.

each

St., Syracuse, N. Y. Underwriter—George
Bonbright & Co., Rochester, N. Y.
.

Fayette
B.

Sept. 28 filed 300,000 shares of class A stock (par $1),
which Gulf-Atlantic. Inc., Tampa, Fla., has agreed

ment.

Proceeds—For

Supermarket Merchandisers of America, Inc.
July 15 (letter of notification) 199,700 shares of common
stock (par 10 cents). Price—$1.50 per share. Proceeds—
For working capital and business expansion.
Office—
3219 "B" St., Philadelphia, Pa. Underwriter—Milton D.
Blauner & Co., Inc., New York.

and

Sept. 27 filed an undetermined number of its shares of
capital stock. Price—At market. Proceeds—For invest¬

of the $1,300,000

of receiving tax-free income

for the purposes

At Scudder, Stevens & Clark
Common Stock Fund, Inc.

market.

holders

Underwriter—None.

facilities,

Proceeds—To redeem a like number of pre¬
ferred shares presently outstanding.
Underwriter—To
be determined by competitive bidding.
Probable bid¬
ders: The First Boston Corp.; Blair & Co. Incorporated.
Bids—Tentatively expected to be received up to 11 a.m.
on

the

tendered

(par $100).

(EST)

offered

per

(10/13)

Savannah Electric & Power Co.

Underwriter—Ned J. Bowman Co., Salt Lake

"orp.

(letter of notification) 16,500 shares of class B
$3 per share. Proceeds—to underwriter

Aye., Lyndenhurst, N. Y.

(jointly);

Inc.

Blair & Co. Incorporated.

Proceeds

Price

i>tock.

Co.,

com¬

York

A- Russell Reinforced Plastics

Securities Corp. and
The First Boston Corp.;

ing capital.

ceeds—For

writer—First Chelsea

(10/13)

and for work¬
Underwriters—Rauscher, Pierce & CoT, Dal¬
las, Tex.; and Russ & Co., San Antonio, Tex.
/

Co., Cincinnati, Ohio.

Film Technique, Inc., N. Y. City
July ; 30 (letter of notification) 60,000 shares of
mon
stock (par 10 cents).
Price—$2 per share.

Sept. 27

Y./ZZ/'

Halsey, Stuart & Co. Inc.; Union

Southwestern

Rapid

New

Inc., San Francisco.

Co.,

presently outstanding. Underwriter—To be
by competitive bidding. Probable bidders:

debentures

num¬

exceed

$19,654.
Proceeds — To Peter
Schotanus, Chairman of the Board. Underwriter—C. H.

Keiter &

filed $5,000,000 of first mortgage bonds due
1984 and $3,000,000 of debentures due Oct. 1, 1979. Pro¬
ceeds—To redeem $5,000,000 of bonds and $3,000,000 of

Sept. 23

Price—

Sept.

receive

ber- of

Rights are to expire on Oct. 5.

employees.

$13.75 per share. Proceeds—To retire $5,000,000 of bank
loans and to reimburse the company for construction
made.

Ar £tylon Corp., Lilford, Mass.
Sept. 27 filed 650,000 shares of common

thereon.

Aug. 24 filed 800,000 shares of common stock (par $10)
being offered for subscription by common stockholders
of record Sept. 14 on the basis of one new share for each
four shares held; unsubscribed shares to be offered first

Price—$11
per share.
Proceeds—For investment. Office—136 East
57th Street, New York, N. Y. Underwriter—None.

tive

Co.

Diego Gas & Electric Co.

San

Aug.

Peoples Securities Corp., New York
Aug. 11 filed 74,280 shares of capital stock.

Underwriters

Santa Fe, N. M.

York.

New

share.
and Chace, Whiteside, West & Winslow, Inc.
per

Underwriter—

purposes.

exploration expenses, etc.
Underwriters—R.
and McGrath Securities Corp., both oi

and

Klein

determined

(10/11)
>
Sept. 21 filed American vodng trust, ...certificates for
900,000 shares of common capital stock (par one cent),
•of which 750,000 shares are to be publicly offered. .The,
remaining 150,000 shares are to be optioned to under¬
writers.
Price—Last sale on American Stock Exchange
Inc.

Co.,

Dallas, Tex.

Savannah Electric & Power Co.

shares of com¬
mon
stock (par one cent).
Price — 50 cents per share.
Proceeds—For exploration and development costs. Of¬
fice—100 West 10th St., Wilmington, Del.
Underwriter
Pan-Israel Oil

Sept. 14 filed 300,000 shares of common stock (par 10
cents).
Price—$2 per share.
Proceeds—For develop¬

Calif., and New York, N.

A Pan-American Uranium, Inc.
Sept. 20 (letter of notification) 600,000

•

corporate

general

Southwestern Securities Co.,

ment

A- Ostrom (K. Wm.) Co., Inc.
Sept. 27 (letter of notification)
stock.
Price—At par ($50 per

Rubber

of common stock (par 10
cents). Price — $1.25 per share. Proceeds—To pay for
options, exploration and developmeftTsand to be used
Sept. 2 filed 1,400,000 shares

jj Lake City, Utah. Underwriter
Securities, the same city.

O'Sullivan

Dallas, Texas

Sabre Uranium Corp.,

Continued from page

—Hale

30,1954

Corp.

Underwriter—Johnston, Lemon & Co., Washington, D. C.

• Thompson-Starrett Co.
Inc. (10/15-20)
July 29 filed 145,000 shares of cumulative convertible

preferred stock
and

for

(par $10).

Proceeds—To

amendment.

general

corporate

Price
repay

—

To be supplied by

$1,000,000 bank loans

purposes.

Underwriters—

Co.,, Inc. and Emanuel, Deetjen & Co., both

Blair &

New York.
•

l..

■

Tri-Continental Corp.

Sept.- 8 filed 810,740 shares of new $2.70 cumulative
preferred stock (par $50) being offered in exchange for
the presently outstanding $6 preferred stock (no par
value) on the basis of two new shares for each $6 pre¬
ferred share held.
Offer will expire on Oct. 27. Un¬
exchanged $6 preferred stock will be call?4 f<?r redemp¬
tion on Oct. 31. 1954.
Underwriter — Union Securities
Corp., New York.

A- Triassic Uranium, Inc., Casper, Wyo.
Sept. 20 (letter of notification)
30,000,000 shares of
common stock. Price—At par (one cent per share).
Pro¬
ceeds—For exploration and

Office—

development costs.

Royalty Bldg., Casper, Wyo. Under¬
E. Hendershot, 2520 Deming Blvd., Che¬

Consolidated

300

writer—Glen
yenne,

Wyd.

Ucolo Uranium Co.,

Salt Lake City, Utah

2,800,000 shares of com¬
Price — 10 cents per share.
exploration and development costs. Of¬
fice—906 Walker Bank Bldg., Salt Lake City, Utah. Un¬
derwriter—Western Securities Corp., the same city.
Sept. 13 (letter of notification)

mon

stock

(par one cent).

Proceeds—For

A- Uranium Chief, Inc., Salt Lake City, Utah
Sept. 21 (letter of notification) 26,400,000 shares of
common
stock.
Price—At par (one cent per share).
Proceeds—For

Office

323

—

exploration and development expenses.
2nd South, Salt Lake City, Utah.

East

Underwriter—Coombs

& Co., Ogden,

Utah.

Ar Uranium Corp. of Colorado
Sept. 23 (letter of notification) 300,000 shares
stock
For

East

of common

Price—$1 per share. Proceeds—
exploration and development costs.
Office —129
60th St., New York, NY Y. Underwriter—None.
(par one cent).

United States Lithium Corp.

(letter of notification) 2,990,000 shares of com¬
stock.
Price—At par (10 cents per share). Pro¬

Sept. 9
mon

incident to extraction operations.
Bank Building, Salt Lake City,
Utah. Underwriter—Thornton D. Morris & Co., the same

ceeds—For

expense

Office—1111

Walker

city.
Urainbow,

Inc., Salt Lake City,

Utah

(letter of notification) 2,000,000 shares of com¬
(par two cents). Price—15 cents per share.
Proceeds
For exploration and development expenses.
Office—S08 Kearns Bldg., Salt Lake City, Utah. Underwritpr—Austin R
Smith Brokerage Co.. the same city.

Aug. 31
mon

stock

—

Volume 180

Number 5364

The Commercial and Financial Chronicle

(1317).
Uranium of

Utah, Inc., Provo,^Utah

★ Wisconsin Michigan Power Co.
Sept. 29 filed $3,000,000 first mortgage bonds due 1984.
Proceeds—For construction program.
Underwriter—To
be determined by competitive
bidding. Probable bid¬
ders: Halsey, Stuart & Co.
Inc.; Merrill Lynch, Pierce,
Fenper & Beane and Salomon Bros. & Hutzler (joint¬
ly); Kidder, Peabody & Co. and White, Weld & Co.

Sept. 14 (letter of notification) 3,000,000 shares of com¬
mon
stock
(par 1 cent). Price —10 cents per share.
Proceeds—For exploration and development costs. Office
227 N. University Ave.,
Provo, Utah.
Underwriter—
Bay Securities Corp., New York.
Utah Uranium Corp., Las
Vegas, Nev.
Aug. 20 (letter of notification) 10,000,000 shares of capi¬
tal stock (par 1 cent). Price — Three cents
per share.
Proceeds—For exploration and development
expenses.
Office—1818 Beverly Way, Las
Vegas, Nev. Underwriter
—First Western

Securities,

same

(jointly).

;

•

* Venezuelan Sulphur Corp. of America, New York
Sept. 17 filed 1,000,000 shares of common stock
(par 50
cents). Price—$3 per share. Proceeds—To
pay obliga-

tions of Venezuela Sulphur
Corp.,
to latter for
exploratory and
lated

New York.

per

unit.

units

one

Proceeds—For

expenses.

Canada.

each

class.

exploration

and

Price—$3.10
development

stock

common stock

(par one
Proceeds—To pur¬

Utah.

Petroleums, Inc., N. Y.

Sept. 16 (letter of notification) 133,333 shares of common
stock (par 10 cents).
Price—At market (estimated at
36^2 cents).
Proceeds—To certain selling stockholders.

•

Broadway, New York.

Underwriter

Co., New York.

—

and

20 filed

360,000 shares of capital stock (par $1)
subscription warrants, of which 300,000 of

60,000

-the shares

are

34 per share.

to be

presently publicly offered.

Proceeds

interests located

—

Price—
purchase certain royalty

in New Mexico

general ?corporate

purposes.

and

Office

Colorado and for

Santa

Fe, N. M.
Underwriter—J. G. White & Co., Inc., New York. Ofk^fering^Expected today (Sept. 30).
-19

3;western

Plains Oil & Gas

—

Co.

May 24 tiled 100,000 shares of common stock (par $1).
Price—$4.75 per share. Proceeds—To redeem 1,250 out¬
standing preferred shares ($125,000), to repay bank
loan, etc. ($2,500); for purchase or acquisition of addi¬
tional mineral interests, leases
and royalties in the
United States and Canada and for other
corporate pur¬

Office—Glendive, Mont.
& Co., St. Paul, Minn.

poses.

Rice

Underwriter—Irving J.

for

each

held; with
($25 per

At par

Under¬

program.

per

Zenith Uranium &
Mining Corp.
July 12 (letter of notification) 300,000 shares of common
stock (par one
cent). Price—$1 per share. Proceeds—
For

mining operations.
Boston, Mass.

Underwriter—Sheehan

Co.,

Underwriter—Frederick H. Hatch

Co., Inc., New York.

i
.

Sept. 15 (letter of notification) 9,965,000 shares of com¬
stock (par 1 cent). Price—Three cents
per share.
Proceeds—For exploration and development costs. Office

South, Salt Lake City, Utah.
K. T. Hansen & Co., same city^

Underwriter

stockholders of

now.

owners

in 1950.

authorized

one

Price—$35

new

share for each four shares
held.

share.

per

Proceeds—To increase capital and
Underwriter—Blyth & Co., Inc., Los Angeles,
^

surplus.
Calif.

Central

Sept. 2 it
between

Southwest Corp.

reported company plans issue and
sale of
500,000 to 600,000 additional1 shares
of

until

(jointly).

early in 1955.

offering

may be considering a
plan to refund its
outstanding $37,851,000 37/s% bonds.
Underwriter—May be determined by competitive. bid¬
ding.
Probable bidders: Halsey, Stuart & Co.

Inc.;
Blyth & Co., Inc. Offering—Expected in
November.,
A Chicago & Eastern Illinois RR.
Sept. 21 company filed an application with the ICC for
authority to issue $15,350,000 of 5% income debentures
due Jan. 1, 2054, to be offered in
exchange, par for
par,

for the

outstanding 383,751 shares of class

for

additions

Consolidated Uranium Mines, Inc.
July 23 stockholders authorized the issuance

and

of not to exceed
$6,000,000
in connection with the

sale

convertible debenture bonds
acquisition of Uranium Mines oil
Underwriter
May be Tellier &

America, Inc. stock.
Co., Jersey City, N. J.

—

★ Continental Oil Co.
Sept. 22 L. F. McCollum, President, announced that com¬
pany plans to issue and sell
$100,000,000 of sinking fund
debentures. Proceeds
To repay about
$45,000,000 of
—

short-term loans and for further
development of oil and
gas properties.
Underwriter
Morgan Stanley & Co.,
New York.
Registration—Expected in near future/. /.
Cortland Equipment
—

Lessors, Inc.
Aug. 31 it was reported this
corporation, a subsidiary
o| Safeway Stores, Inc., may sell notes and
debentures
totaling $60,000,000 to $70,000,000. Proceeds—To

bank loans which

repay

understood to amount to between

are

$50,000,00 and $60,000,000 at the present time. Under¬
writer—Merrill Lynch,
Pierce, Fenner & Beane, New

York.

Deere & Co.

Sept. 2 it
be filed

block

ceased

was

with

'..J

announced

the

common

a registration statement
will
covering the proposed ? sale of a

SEC
stock

stockholder.

Co. Inc. handled

owned by the estate of a de-r
Underwriter—Harriman Ripley &

previous financing.
★ Eastern Utilities Associates

Sept. 20 it

•••>'

was

reported company plans issue and
$7,500,000 collateral trust bonds due 1984.

sale

Proceedt/yr

principallyJo^refund $7,000,000 4%% bonds
outstanding. Underwriter—To be determined 4
by
competitive bidding. Probable bidders:
Halsey, Stuart &
Co. Inc.;
Kidder, Peabody & Co.; White; Weld & .Co.;
Stone & Webster Securities
Corp. and Estabrook & Co.
Bids—Expected to be received sometime in
now

★

First

National

Bank

Dallas

basis

one

per

new

share.

capital

and undivided
Previous offering was

(Texas)

Pierce,

share for each

nine

Proceeds—To

pros¬

profits

account.

underwritten

Beane

and

The

and

im¬

Sept.

increase

held.

surplus,

Underwriters—

both of New York.

Fenner

Merrill Lynch,

First

Boston

share.

used

toaxr

Consolidated Natural Gas Co.
Sept. 16 J: French Robinson, President, announced that
stockholders on Dec. 2 will vote on
authorizing additional shares of
capital stock for an offering to stock¬
holders planned for 1955.
Underwriter—None.
-\

to expire

stock
1

First National Bank
of. San
8 stockholders increased
stock from 12,500 shares to

$40).

plan

the
a

■

one-

describing the new offer to employees late in
They will have until Dec. 15 to make their
purchase selection. Price—The purchase price will be
$20
per share less than the market
price when payment is
completed, but not more than $150 nor less than $100 per
—

Offering—Not expected

Chesapeake & Ohio Ry.
Aug. 23 it was reported company

Price—$25

It is planned to send

com¬

and

Lazard Freres & Co.

October.

Proceeds

was

mon
stock, probably first to stockholders. Underwriter
—May be determined by competitive
bidding.; Probable
bidders; Blyth & Co., Inc, and Smith,
Barney & /Co.
(jointly); The First Boston Corp. and Merrill
Lynch,
Pierce, Fenner & Beane (jointly); Lehman Brothers

the

About

under

rec¬

Sept. 27 the right to subscribe on or
before Oct 27
200,000 additional shares of capital stock
(par $12*50)
the basis of

Sept. 21 this Bank offered to its stockholders of
record
21 rights to subscribe on or before
Oct. 6 for
200,000 shares of additional capital stock
(par $10) on

System employees under the Employees' Stoek

Plan approved by the share
half of the 3,000,000 shares

remain to be offered

Sept.

Prospective Offerings
Bell

and

Southern

November.

American Telephone &
Telegraph Co.
Sept. 15 directors voted to make another stock
to

the

To be used

★ Zotox Pharmacal Co., Inc.
(10/13)
Sept. 24" (letter of notification) 100,000 shares of common
stock (par $1).
Price —$3 per share.
Proceeds
For
working capital. Office—122 Broad St.,
Stamford, Conn.

Corp.,

Jose, Calif.

the authorized capital
15,000 shares, the additional

2,500 shares being offered to stockholders
of one

on the basis
share for each five shares held
Sept. 8; rights
Oct. 6. Price—$100 per share. Proceeds—For

new

provements to Bell System.

expansion and to increase capital stock account.

Anglo California National Bank (10/11)
Aug. 31 it was announced stockholders will vote Oct. 5
on
authorizing the offering to stockholders of 262,500

Sept. 7 it

additional shares of capital stock
(par $20) on the basis
of one new share for each four shares held
about Oct.
9; with rights to expire Nov. 1. Price—$45 per share.
Proceeds—To increase capital and

surplus.
—Blyth & Co., Inc., San Francisco, Calif.
Axe Atomic & Electronic

Sept. 20 it

was

common

for

seven

each

shares-5 held.

reported company is considering raising
$10,000,000 for its construction program. Under¬
writer—For any bonds to be determined
by comeptitive
bidding. Probable bidders: Halsey, Stuart & Co.
Inc.;
The First Boston
Corp.; Blyth & Co., Inc., and Lehman
Brothers (jointly); White, Weld &
Co.; Merrill Lynch,
Pierce, Fenner & Beane; Harriman Ripley & Co. Inc.

theb

asis of

one

Proceeds—To

11:30

a.m.

(EST)

Oct. 27.

closed-end

offered through Axe Securities Corp.,

stock

(10/27)

was

about

new

★ Aztec Oil & Gas Co.
Sept. 27 it was announced company plans to offer stock¬
holders the right to subscribe for 285,005 additional
shares of

Florida Power & Light Co.

Bids—Expected to be received
Fund

reported securities of this

soon

Underwriter

New York, N. Y.

mon

new

Proceeds—For exploration and
development ex¬
Office—323 Newhouse
bldg., Salt Lake City,
Underwriter—P. Gi Christopulos &
Co., same city.

fund will be

Wind River Uranium Co.

—65 East 4th

one

pectus

Western Development Co.

Aug.

—

(par

60 cents). Price—To be
supplied by amendment. Pro¬
ceeds—Together with other funds, to be used to build
pipeline. Underwriters—White, Weld & Co. and Union
Securities Corp., both of New York.
Offering—Post¬
poned indefinitely.

Cantor

(CST) at 231 So.
.

development of
company's wells in Weston County, Wyo. Office —100
State St., Albany 7, N. Y.
Underwriter—None.

Securities

West Coast Pipe Line
Co., Dallas, Tex.
Nov. 20, 1952 filed 1,125,000 shares of common stock

St., Chicago 4, 111.

to class A and for class B
stockholders of record Aug. 29
the basis of $500 of
debentures for each 50 shares of
stock held; rights to
expire on Nov. 30. Price—At par.
Proceeds—To reduce bank loans and
foi:

share of stock.

White,
Corp., both of New
Offering—Postponed indefinitely.

—

a.m.

Price—To be supplied by
amendment. Proceeds—From sale of units and
1,125,000
additional shares of common stock and
private sales of
$55,000,000 first mortgage bonds to be used to build a
1,030 mile crude oil pipeline.
Underwriters —

Office

to 10

Wytex Oil Corp.
Sept. 17 (letter of notification) $290,000 of
10-year 5%
(with warrants) to be offered

West Coast Pipe Line Co.,
Dallas, Tex.
20, 1952 filed $29,000,000 12-year 6% debentures
due Dec. 15, 1964, and 580,000 shares of
common stock
(par 50 cents) to be offered in units of one $50 deben¬

Western Central

sinking fund debentures

Nov.

York.

Oct.

Wyoming Uranium

Services, Inc.

Union

Corp., Salt Lake City, Utah
Aug. 23 (letter of notification)
9,166,667 shares of com¬
mon stock
(par 1 cent). Price—Three cents
per share.
Proceeds—For exploration and
development expenses.
Underwriter—James E. Reed Co., Salt Lake
City, Utah.

Co.,

and

Boston

—

working capital. Underwriters—I
Co., Wilmington, Del., and First Southwest
Co.,

Go.

First

penses.

Dallas, Texas.

ratio

share.

the basis of one new share for each
five shares held
of Sept. 10; rights to expire Oct. 7.
Price—$15.50 per
share.
Proceeds—For

Weld

The

World

one

Uranium Mining
Corp.
July 21 (letter of notification) 9,996,000 shares of
com¬
mon
stock
(par one cent).
Price
Thrde cents

ture and

underwritten

—

Aug. 27 filed 68,528 shares of common stock
(par $1)
being offered for subscription by common stockholders

received

the

stock.
Price—At the market (estimated at
$1.37^ per
share). Proceeds—To Elizabeth D.
Hardman, the sell¬
ing stockholder. Underwriter—Barrett Herrick &

Laird &

was

rights to expire on Nov. 12. Price
share).
Proceeds—For construction
writer—None.

★ Washington Natural Gas Co., Clarksburg, Va.
Sept. 20 (letter of notification) 10,000 shares of common

Welex Jet

(10/14)

Woodbury Telephone Co., Woodbury, Conn.
Sept. 10 (letter of notification)
2,650 shares of common
to be offered for
subscription by stockholders at

per share.
chase mining claims and
exploratory equipment, and for
exploration costs. Underwriter—Weber Investment
Co.,
Salt Lake City, Utah.
\

Wacker

stock

Warren Oil & Uranium
Mining Co., Inc.,

offer

La Salle

riding royalties, etc. Underwriter—None.

Inc., New York.

No.

Corp.; Merrill, Lynch, Pierce, Fenner &
Beane; Robert
W. Baird &
Co., Inc.; and William Blair & Co. Bids—To
be

cents

be
determined
by competitive bidding.
bidders: Halsey, Stuart & Co.
Inc.; Merrill
Lynch, Pierce, Fenner & Beane, Salomon Bros. & Hutz¬
ler and Union Securities
Corp. (jointly); White, Weld &
Co.; Kidder, Peabody & Co.;
Kuhn, Loeb & Co.; Dean
Witter & Co.; The First Boston
Corp. Previous common

Sept. 27 filed 200,000 shares of common stock
(par $1).
Price—$5.25 per share. Proceeds—To retire
outstanding
notes, purchase and develop additional leases and over¬

Price—1V2

writers—To

^ Warren Corp., Tulsa, Okla.

cent).

ord

Probable

Office—1812 St. Catherine St.
West, Montreal,
Underwriter—B. Fennekohl & Co., New York.

Denver, Colo.
Aug. 6 filed 65,000,000 shares of

Wisconsin Public Service
Corp.

Vigorelli of Canada, Ltd. (Canada)
Aug. 9 (Regulation "D") 96,770 shares of 8%
preferred
stock (par $2) and 96,770 shares of
common stock
(par
$1)

Oct.

from

★ California Bank, Los
Angeles, Calif.
Sept. 22 directors voted to offer to
for

Sept. 15 filed $12,500,000 first mortgage bonds due Oct.
1,
1984.
Proceeds—To refund $8,000,000 4y8%
bonds pres¬
ently outstanding and for construction
program.
Under¬

C.A.; and for advances

geological surveys and re¬
Underwriter—Hunter Securities Corp.,

activities.

oil

gas production and
Union Gas
Co.,
loans and increase
working capital. Under¬

writer—None.

up to
10:30 a.m. (CST)
Drive, Chicago 6, 111.

purchase certain

retire bank

bonds, series
H, due Oct. 1, 1984. Proceeds—To redeem $8,000,000 4%
first mortgage bonds sold last
year and the balance to
repay bank loans and for new construction. Underwriter

city.

undeveloped leases

Wisconsin Power & Light Co.
(10/4)
Sept. 7 filed $18,000,000 of first mortgage

★ Vendorlator Manufacturing Co., Fresno, Calif.
—To be determined by
'}• Sept. 27 filed $900,000 of 12-year 6%
competitive bidding. Probable
sinking fund debidders: Halsey, Stuart & Co.
; 4 bentures due Oct.l, 1966 (with stock
purchase warrants
Inc.; Equitable Securities
;
attached). Price—At par (each purchaser of a $1,000/ Corp.; Salomon Bros. & Hutzler; Lehman Brothers, Bear,.
Stearns & Co., Reynolds & Co. and L.
debenture to receive a warrant to
F. Rothschild &
purchase 50 shares
Co. (jointly); Union Securities
*; of common stock at $8 per share). Proceeds—To
Corp.;-The First Boston
pur¬
chase plant equipment and for
Corp.; White, Weld & Co. and Kidder, Peabody & Co.
working capital. Under¬
(jointly); Smith, Barney & Co. and Robert W. Baird &
writers—Lester, Ryons & Co., Los Angeles, Calif.; and
Co. (jointly); Blyth &
Bailey & Co., Fresno, Calif. /// ." /
Co., Inc. Bids—To be received
".
,

option

★

new

exercise

★ General Telephone Co. of the Southwest
Aug. 25 stockholders approved an increase in the au¬
thorized preferred stock (par $20) from
400,000 to 700,000 shares and in the common stock from
500,000 to

1,000,000^hares.

Underwriters—Paine, Webber, Jackson

& Curtis and Stone & Webster Securities

Corp.

Continued

page 58

c
The Commercial and Financial Chronicle
58

April 30, 1954, there were outstanding 2,286,784 shares.
Underwriters—Previous common stock offering, in April,

Continued from page 57

of Upstate New York
reported company plans to issue and sell
50,000 shares of 5% cumulative preferred stock (par
General Telephone Co.

July 2 it was

Underwriters—Paine, Webber, Jackson & Curtis
Securities Corp., both of New York.

$25).

and Stone & Webster

Georgia Gas Co.

announced that this company, a sub¬
Cities Utilities Co., contemplates the
residents of Georgia of $300,000 par
preferred stock, subject to the approval of

it was

Aug.

sidiary of United
issue and sale to
of

Value

the Georgia P. S.

Commission.

the

issuance

4s and 33/4s
collateral trust 3%s
New Orleans Great Northern 5s due 1983.
Underwriter—To be determined by competitive bid¬
ding.
Probable bidders: Halsey, Stuart & Co. Inc.;
Kuhn, Loeb & Co., Blyth & Co., Inc. and Salomon Biros.
& Hutzler (jointly); The First Boston Corp.; Shields
refund first refunding mortgage

ceeds—To

1969,

and

1975

due

respectively;

due 1968; and

& Co.

* Hamilton Rational Bank, Washington, D. C.
Sept. 14 stockholders approved merger of this Bank and
National Bank of Washington, effective Oct. 1, 1954, the
consolidated Bank to be known as National Bank of
Washington, which will have a

each.

$10 par value

capitalization of 410,000
These will be issued in

exchange for present Hamilton stock on the basis of two
shares for each Hamilton share held, and in exchange
for stock of National Bank on a share-for-share basis.

D. C., is authorized
pay $55 per share for any stock of the consolidated
"•company not issued in exchange.
Johnston, Lemon & Co., Washington,

Inc., New York
reported registration of about 250,000
of common stock is expected (part for new money

Hazel

Aug.

Bishop,

was

for selling stockholders). Business—Cosmetics.
Underwriter—Hayden, Stone & Co., New York.
and part

Holly Corp.,

New York.

Sept. 9 S. B. Harris, Jr.,

President, stated that prelimin¬

financing has been arranged to be followed by a
public offering after which this corporation plans to
distribute a part of its holdings of Holly Uranium Corp.
Household

Finance

announced preferred stockholders will
the authorized amount of pre¬
stock (par $100) from 312,000 shares to 592,000
Underwriters—Lee, Higginson Corp. and Kidder,

Aug. 27

was

vote Oct. 7 on increasing
ferred
shares.

York; and William Blair &
Co., of Chicago and associates.
1
.

Peabody & Co., both of New

^ Interstate Power Co.
Sept. 27 it was reported company is considering issuance
and sale of 200,000 shares of cumulative preferred stock
(par $50). Proceeds — To redeem $5,000,000 of 4.70%
preferred stock presently outstanding, to repay $2,000,OOQof bank loans and for construction program. Under¬
writer—Last preferred stock financing was handled by

Smith,. Barney & Co. If through competitive bidding,,
probable bidders may include: Smith, Barney & Co.;
Blyth & Co., Inc.; Lehman Brothers; Merrill Lynch,
Pierce, Fenner & Beane and Kidder, Peabody & Co.

(joinlty).

Kansas City

bidding.
Probable bidders;.
Inc.; W. C. Langley & Co.; Blyth
Co., Inc. and The First Boston Corp. (jointly); Smith

sell in the

early in 1955 $16,000,000 first mort-

Proceeds—To repay bank loans and for new

gage bonds.

Underwriters—To be determined by

com¬

petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.;
Lehman Brothers
and ' Bear,
Stearns & Co.,

(jointly); Kuhn, Loeb & Co., Salomon Bros. & Hutzler
Union Securities Corp. (jointly); Glore, Forgan &

and

Co.; Blyth & Co., Inc. and The First Boston Corp. (joint¬
ly); White, Weld & Co. and Shields & Co. (jointly); Harriman Ripley & Co., Inc., Equitable Securities Corp.
Kansas

City Southern Ry.

Sept. 20 it was reported company may issue and sell in
November about $50,000,000 first mortgage bonds.
Pro¬
ceeds—To refund $38,345,000 of 4s due 1975 and $13,336,-

Underwriter

000 of 3%s due 1966.

—

To be determined

by Competitive bidding. Probable bidders: The First
Boston Corp. and Halsey, Stuart & Co. Inc. (with latter
handling books); Kuhn, Loeb & Co., Ladenburg, Thalmann &
Co. and Blyth & Co., Inc. (jointly).
Kansas Power &

Halsey, Stuart & Co.
&

Barney & Co.

Kentucky Utilities Co.
June 21 it was reported company plans to issue and sell
$15,000,000 first mortgage bonds, series F. Underwritei
—To be determined by
competitive bidding. Probable
bidders: Halsey, Stuart & Co. Inc.; Harriman Ripley &
Co.

Inc.; The First Boston Corp. and Lehman Brothers
(jointly); Union Securities Corp. and Merrill Lynch,
Pierce, Fenner & Beane (jointly); Blyth & Co., Inc.;
Kidder, Peabody & Co. and White, Weld & Co. (jointly);
Equitable Securities Corp. Bids — Expected to be rer

stock,

was

common

ceived up to noon

stockholders

either ori a

l-for-9

(EST( on Sept. 30.

Majestic Auto Club, Inc.
announced company plans to offer 500,(par five cents) to the motorist and general

Aug. 25 it was
000 shares

public shortly after completion of the current offering
of 100,000 shares to service station owners and operators.
Office—Room 717, 141 Broadway, New York 6, N. Y.

reported company may be considering
additional financing—probably some convertible pre-,
ferred stock. Underwriters — Previous financing was
handled by Drexel & Co., Philadelphia, Pa., and Morgan
Stanley & Co., New York.
Sept. 27 it was

Co.

Sulphur

Gulf

Noel & Co., New York.

Bank of New York

proposal to increase the
capital and surplus of the company by $131,250,000
through the sale of 2,500,000 additional shares of capital
stock (par $20) to stockholders by subscription on the
basis of one new share for each three shares held as of
Sept. 24; with rights to expire on Oct. 22. Subscription
warrants were mailed on Sept. 30. - Price—$52.50 per
share. Proceeds—To increase capital and surplus.
Un¬
derwriter—The^First Boston Corp. heads group.
Fuel Gas Co.

(11/8)

27 it was reported that company plans to offer
to its stockholders 381,018 additional shares of common
Sept.

stock

(no par)

the basis of one new share for each
about Nov. 8 (with an over¬

of record

held

None.

some

additional

common

l-for-10 basis.

chases

29.
—

'' V

•

Products, Inc.
Sept. 28 stockholders approved an authorized issue of^
40,000 shares of new prefererd stock (par $100), a part
of which may be issued to finance a new mid-western
plant to produce vinyl resins. Underwriter—F. Eberstadt & Co., Inc., New York, handled previous financing.
* National Starch

New

Orleans
it

was

Public

Service

Inc.

reported company plans to offer for sale

mortgage bonds due 1984 late this
year.
Underwriters—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Equitable Securities Corp.; Union Securities Corp. and
Harriman Ripley & Co. Inc. (jointly); Lehman Brothers;
Kidder, Peabody & Co. and Stone & Webster Securitiei
Corp. (jointly); The First Boston Corp.; White, Weld &
$6,000,000

of first

Co.

fto develop proven oil reserves, including an ex¬
panded drilling program. Underwriter—May be Blair
Co. Incorporated.

on
purchase from it of $1,020,000 equipment
to mature in 30 equal semi-annuaL
instalments. Probable bidders: Halsey, Stuart & Co. Inc.;
Salomon Bros. & Hutzler; Blair &
Co. Incorporated;
5 for the

certificates

Kidder, Peabody & Co.

Company
Philadelphia, Pa.

* New York, New Haven & Hartford RR. (10/7)
the company up to noon (EST),
Oct. 7 for the purchase

from it of $2,595,000 equip¬
l-to-15 years. Prob¬

ment trust certificates to mature in

able bidders: Halsey,
Hutzler.

Stuart & Co. Inc.; Salomon Bros. &

„

* Pacific Clay Products Co.
it was reported that early registration is ex¬

Sept. 21

a secondary offering of approximately 90,000
scares of common stock. Underwriter—Kidder, Peabody

pected to
& Co.,

N<*^ York.
Light Co.

proposal to authorize 200,000 additional preferred,

stock of $100 par

Proceeds—For

value, which are to be sold in series.

new

construction.

Aug. [24 it was announced stockholders will be offered
the right to subscribe to 100,000 shares of common stock

(parj$10) on the basis of new new share for each 14

held.

Price—To

surplus

and

Proceeds—To

later.

named

capital

Underwriters—

accounts.

& Co., Philadelphia, Pa.;
and Merrill
Pierce, Fenner & Beane and Smith Barney &
New' York.
Meeting—Stockholders are to vote
Drexel

approving

Lynch,
Co., of
Nov.

financing.

new

^ Pressed Steel Car Co., Inc.
announced that arrangements have been

was

madq with Lehman Brothers, New York, for an imme¬
diate! secondary offering of all or part of the $5,300,000
of convertible subordinated debentures due Oct. 1, 1969,
which are to be issued in part.payment of the total pur¬

chase price for all of the business, good will, properties
and
pther assets of Clearing Machine Corp. The latter
uted

and dissolve and the debentures distrib¬

jto Clearing stockholders,

of whom are making
'
'
,

some

arrangements to sell the debentures.

Public

Service

Co.

was

shares of

75,000

Oklahoma

that

reported

company

preferred

new

issue and
(par $100).

may

stock

Central

Republic Co. Inc. (jointly); Smith. Barney
Co.; Kuhn, Loeb & Co.; Glore, Forgan & Co.
t-

Public Service Co. of Oklahoma

Sept.j2 it was reported company

sell between $20,-

may

000,000 and $25,000,000 of first mortgage bonds in Janu¬

^Proceeds—To

ary.

struction.

for

repay bank loans and

Underwriter—To

determined

new con¬

by competi¬

bidding." Probable bidders: Halsey, Stuart & Co.
Inc.; lEiquitable Securities Corp.; Salomon Bros. & Hutz¬
ler; the First Boston Corp.; Blyth & Co., Inc., Kidder,
tive

Peabody &

Co.

and

Stone

Securities

Webster

Corp.

(jointly); White, Weld & Co.; Shields & Co.
Reaction

Aug,

was

additional

Motors, Inc., Rockaway, N. J.
reported company plans a small offering of

capital

stock

(par

$4)

its

stockholders.

Olin

jMathieson Chemical Corp. otfms 50% of the presentlj^eutstanding shares, which fare being split-up on

twq-for-one basis.
Resources of Canada Investment Fund, Ltd.

Aprib&7 the SEC authorized the
an

investment

to register as
public offering of

company

and to make

concern

secuWttes in the United Slates.

....

•

SsYage Industries, Inc., Phoenix, Ariz.

Aug.|9 it was announced
to

issue

and

sell

lativfeibconvertible
to

gfoss around $250,000.

acquisitions.

plans later this year

company

additional

preferred

block

75-cent

(par

stock

cumu-

expected

$1),

Proceeds—For expansion and
Pacific Coast Se¬

Underwriter—Probably

curities Co., San Francisco, Calif.

Scott Paper

April: 27
creased

Co.
stockholders

the authorized

the

{company

company

has

proposals

approved

stock

common

the

and

from

specific

financing

convertible

1953, was underwrittgjj by

Co., Smith, Barney & Co. and
Pierce, Fenner & Beane.

sell

The

Under¬

program.

-Drexel &

SeptJ

In¬

indebtedness

$50,000,000.

writers—Previous offering of $24,952,800 3%

deb^itures, in September,

which

from 5,000,000 to

authorized

$25,000,000

Merr^L^ch,
19q

(11/9^^ giaoislnl

7 it was announced company pla*££ofcb

$4,000,000 first mortgage bonds.

*isM&?%nd

•

deenj $1,500,000 of. 3%% bonds, to repay bsft3rd8§feY*lnd
for Construction program.
Underwriters-jj^ft^jL*ieter-

priined by competitive bidding. Probable ty'JJfJeS halsey,
Stuaft & Co. In6.; Stone & Webster Securities Corp. and
Dear* Witter

Co.

(jointly); Kidder, Peabody

Co.

Registration—Planned £or Oct. 8. Bids—Expected about
Nov,
<

[9.

„

Southern Pacific Co.

Bids/will be received

Power &

Sierra Pacific Power Co.

Bids will be received by
on

-•

for Banking and Trusts,

Pennsylvania

10,000,000
ic New York, Chicago & St. Louis RR. (10/5)
Bids are expected to be received by the company
truts

corporation's uranium program; an¬
will be used; to finance accounts re¬
subsidiary and the remainder would be

used

„

Feb.

the

under

Underwriter—To be determined by competitive bidding.
Probable bidders: Harriman Ripley
& Co. Inc. and

Sept. 20 stockholders approved a

National

Oct. 18 will vote
increasing the authorized capital stock (par $10) by
1,000,000 shares, of which approximately 220,000 shares
are
to be publicly offered.
Price—From 15% to 25%
below the price on the New York Stock Exchange at
the time of offering. Proceeds — Of the approximately
$3,000,000 which would be obtained, about $1,000,000 will
be u£ed for drilling, exploration and additional pur¬
on

sell

* National Bank of Washington
National Bank above.

$oard, announced stockholders

the

Aug^2&,4t

See Hamilton

National City,

Sept.. 26, L. D. Silberstein, President and Chairman

will [liquidate

plans issue and sale of
200,000 additional shares of common stock. Proceeds—
For capital expenditures and working capital.
Under¬
Aug. 30 it was reported company

★ Penn-Texas Corp.

Sept.! 17 it

ir Mead Corp.

Mexican

Halsey,.Stuart & Co. Inc.; Morgan Stanley & Co.; White,
WekL,& Co., Lehman Brothers and Union Securities
Corp.. (jointly). Bids—Expected^to be received at 195
Broadway, New York, N. Y., on Nov. 16.
-

increase

Sept. 19 it was announced stockholders will vote Oct. 19

reported company plans to issue and sell

debentures due Sept. 15, 1984. Underwriter—To be
by competitive bidding. Probable bidders:

determined

ceivable

(9/30)

applied

company

Pacific

Kentucky Utilities Co.
its

(11/16)

Telephone & Telegraph Co.

Pacific

other: $1,000,000

ICC for permission to
issue and sell $30,350,000 of new first and refunding
mortgage bonds due 2003.
Proceeds—To retire $24,610,000 Atlanta, Knoxville & Cincinnati Division 4%
bonds due May 1, 1955, and for general corporate pur¬
poses. Underwriters—May be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Morgan Stanley & Co.; White, Weld & Co. and Salomon
Bros.
& Hutzler
(jointly). Bids—Expected to be re¬

^ceived in October ^r November.
to

■

Louisville & Nashville RR.

Sept.

Oct.

Light Co.

May 4, D. E. Ackers, President, announced that the com¬
pany plans to sell approximately $10,000,000 of bonds
later this year. Proceeds—To repay bank loans and for
construction purposes. Underwriter—Previous bond sale
was done privately through The First Boston Corp.

June 21 it

competitive

termined

—

Sept. 15 it was announced that company may

construction.

Lighting Co.

April 20 it was announced company plans later in 1954
to
issue $20,000,000 mortgage
bonds.
Proceeds — Tc,
finance construction program.
Underwriter—To be de¬

subscription privilege); rights to expire about Nov.
Proceeds
For Construction program. Underwriter

Power & Light Co.

latter part of 1954 or
^

Thursday, September 30, 1954

Sept. ptr-the directors authorized the issue and sale of
$50,000,000 of 35-year debentures to be dated Nov. 15,
1954. / Proceeds—To redeem a like amount of 31-year
4%

,Q\

reported company plans to issue and sell
$20,000,000 first mortgage bonds. Proceeds—To repay
bank loans and for new construction.
Underwriter—To
be determined by competitive bidding.
Probable bid¬
ders: Halsey, Stuart & Co. Inc.; The First Boston Corp.;
Stone & Webster Securities Corp.; Lehman Brothers;
Blair & Co., Inc. and Drexel & Co. (jointly).
BidsExpected in October.

writer—Van Alstyne,

Corp.

Aug. 6 it was

ary

stock to its stockholders.

Blyth & Co., Inc. and J. J. B.

associates.

Laclede Gas Co.

Long Island

it was reported company may consider
of about $25,000,000 bonds later this year. Pro¬

Aug.
*

1953, was underwritten by
Hilliard & Sons and

■

Gulf, Mobile & Ohio RR.

...

)1318)

the

(10/6)
to noon

(EST)

Oct. 6 for

purchase from the company of $8,505,000 of equip¬
certificates, series OO, to mature in 15 equal
Probable bidders:
Halsey, Stuart & Co.

ment trust

installments.

Inc./; Salomon Bros. & Hutzler; Blair & Co. Inc.; Kidder,
Peabody &"Co.

Volume 180

Number 5364

The Commercial and Financial Chronicle

(1319)
it Standard Oil Co.

(Hew Jersey)

the

Sept. 22 company annourited that it

file

proposes

Investment Company Act and to make a
public
offering of its securities in the United States. Its initial
capital of $1,000,000 will be provided by the issuance and
private sale of its common stock to Templeton, Dobbrow

registration statement with the SEC covering the offer¬
ing of authorized but unissued shares of its $15 par value

capital

st3ck

which

stock,

Humble

approximately
shares

will

Oil

nine

Humble

offered

Refining

Standard

Oil

stock.

Co.

basis
each

amounl

least

80%

Humble Oil stock, of which Standard
384

that

March 16 it

hold¬

shares,

was

which

will

now

owns

Corp.,

sale

capital?

Dayton,

Lee

—

reported company plans later this yeai

permanent

loans necessary to pay for new construction
esti¬
mated to cost about
$11,000,000 for 1954. UnderwritersStone

Webster

United

stock

Sept.

issue

one

financing

dlirectors

authorized

subscription privilege).

stock

common

ently outstanding.

About

if Templeton Growth Fund of Canada, Ltd.,
Toronto, Canada

Price—$9

investment

share.

per

yield

under

into

such

for their

funds

mortgages and the direct
purchase of corporate securities
through negotiation.
I

The
this

situation

week

and

government

committed

corporate

viding
abouts.

found

the

That barrier in rate of return
has cropped up repeatedly over a

period
been

each

time

prompted

bonds

new

wrath

about

under¬

Dayton Power
bonds brought out

basis which experienced
of

such

had

reported

bankers

buyers

was

Light Co.'s

Ipng

cool

Last week it

have

market,

half

reported

the

time.

down

issue

yield

Louisville

this

vice

market.
A

it must
far

be pointed out that

prospectively

"on"

And

Britain

and halting.

informal

much

the

de facto situation

public

was

had

never

come

imagine.
Despite

Germany's

strength

and

willingness in the matter,
.convertibility might entail trouble, if not merely delay, because..©!
her EPU position. In view of her surpluses,
convertibility could
be embarrassing to Italy, Spain and other EPU countries.
Ger¬
many's EPU surplus condition would become aggravated by con¬
vertibility, with her own credit position in the Organization be¬
coming wrecked as a result of the change to her buying goods in
the cheapest competitive market.

Nashville

could

help

hinder the

the

market

for

rail

decidedly mixed.
Central's
issue, brought
weeks

But

are

is still in

ago,

Northern

marketed

went out with

Pacific's

last

week,

rush and current¬

commanding

handsome

premium.

some

other countries, Mr. Butler and the British

have conveniently "taken them off the hook" of the responsibility
of

making their
-

This

decision at this time.

own

would

apply to Italy, her, general economic difficulties

including unemployment.
Vis-a-vis France, Britain's "hook service" is

The corporate calendar for
next
week appears

comparatively light

down

run

the roster.

shows four issues, all
a
total of
$69,500,000

This

utilities> for
will

for bids.

Public

bids

open

same

Light

Co.
on

Colorado

Monday

bonds.

new

for

And

day Wisconsin Power &

scheduled

tenders for

issue

look

its

issue.

un¬

Aside

from

the

one or

two months from

now.

And

regarding later on, there

are certain great doubts about the
possibilities, with her dependence on subsidies, the un¬
certainty over tbfe direction, expansionist or non-expansionist, of
the Mendes-France policies, and even whether he will remain-in
even

French

power.
-

There is considerable

opinion here that with

exchange rate, France can follow Britain^-when,
Britain the Key
In

•

Hence

—

change in the

as,

and if.

New

35-year

issue

little

offing

York

Telephone

$75,000,000

refunding

mortgage

a long-continued flirtation with the water, with
kibitzing in damp bathing suits.

predict

the swimmers

retirement

bank

loans.

The degree of

convertibility

well

we are envisaging excludes trans¬
capital transfers, the prerequisite to

the flow of orders to the American securities market.

$35,000,000

Competition

promises to be keener

here
than

even

but

has

evidently

sidetracked
ment

would

floated

basis.

some

Co.

financing plans,

these

have

been

pending the develop¬

market conditions which

permit

possible to

new

issue

something

near

the

large

piece

leased

which

plant

and

its

executive

ac¬

com¬

arranged,
ready to expand.
companies

The

northern

territory tied in with

loading ^station
A

autd^iatic

built in St.

service

were

end

branch

bulk

new

control

Then
fur¬

was

ther improved

by the installation
two-way radio on all delivery

trucks.

The

economic

ness-getting
move

local

are

advantages

claims
and

this

The

up.

acquire five

companies

berty
sales

showing

now

busi¬

and

which

will

profits.

Don

treble

traded

Al-

present

Financing has

been arranged with banks.
Last year (fiscal
year ends July
for the first 11 months sales

$289,744

were

vs.

TABLE

Net

for

after

the

fiscal

taxes

I
Population

14,237
40,425
60,812

1940

iQ^n

1953~ (unofficial) I 122',000
Water Meters
No. of

Year

Connection!

1945

20,816
29,448
34,924

1952

39,623
Telephones
No. of

Year

Connections

1945

20,509
30,977

1950.

34,439
42,726

50,084
TABLE

year

Marketed Production of

LP-Gas

Gallons

(in thousands)

1945

1,067,000
3,482,567

1950.
1953

(est.)

5,000,000

DIVIDEND

NOTICES

Another regular

quarterly

dividend of 25 cents

per

share has been declared
by

Profit

Daystrom, Inc. Checks

wili be

mailed Nov. 15th to share¬
holders of record Oct. 27th.

1954.

been

has

Corp.

Over-the-

1930

probably reach

$60,000

the

City of St. Petersburg

$199,j06 for the

comparable period of 1953.
before taxes will

Market.

1920

•

esti¬

class

prior

The

class

share until Oct.

per

cents

the

dividend

TROM, INC.
ELIZABETH, N.J.

thereafter.

receives

cents

1955, and
Thereafter

equal

amount

any additional dividends
paid equally. The class A is

cents

entitled

was

per

1954, the directors
on

are

1954,

declaring

terly

divdend

payable

stockholders

receive

Sept.

Oct.

July

quar¬

cents

record

the stock

40 cent annual basis

20,

until

put

per

1954,

Aug.

1954.

24,

looks

real

growth

that should afford

the

Furniture

Printing Equipment.

TECHNICOLOR, Inc.
The

Board

declared

Directors

has

dividend of twenty-

five

cents

the

Common

(25c)

per

Stock

($1

en¬

titled to elect one-third
of the
board of directors. Although the
class

Electronics

entitled
40

Par

Value) of the Company, and
dividend
per

fifty

One

the investor

(50c)
Common

cents

the

Stock (no Par Value)

not yet

exchanged under the Com¬
pany's Exchange Instructions
dated May 19, 1953.
These
dividends are payable October
22, 1954 to stockholders of rec¬
ord

the

business

October 8, 1954.

L. G. CLARK, Treasurer.

beginning

situation.

return

Gas

1948.

loading unit

Petersburg.

and

created

framework to fill in.

the

for

organization

competing

and

advan¬

location

was

purchased.
the

and

financing

Gulf Cities
Two

owned

and

St.

has

company

gives

sales, service
tivities.
The

territory

downtown

land

tageous4 central

pleted

wide

serve-a

Petersburg,

This
on

bulk

Cities

Year

half-way between St.

economically.

Edison

Its

stra¬

and

usual.

fers by residents, as

applied

3%% bonds series G and to repay

Consolidated

the possibility and timing of formal and full
convertibility, British policy still furnishes the key.

advantages.
located

certain

Petersburg and Tampa making it

The proceeds would be

Bathers Must Wait

measuring
we

in' the

middle

scheduled

France's

worldwide

the

there

bonds.

remaining difficulties, in the face of improvement,
khave been cited here this week by Edgar Faure, her Minister of
Finance. They include the continuing budgetary deficit, her disequilibriated balance of payments, inadequate currency reserves,
trade restrictions, and—of course—American tariff policy.

market

substantial
after
when

had

while

outstanding ! and 22,000 shares of

undertakings being
for

stock

micro¬

until

smaller

now, or

tegic

but

return

Gulf

paratively small amount of senior
debt, the long-term debt being
but
$67,692 on April 30, 1954.
59,950 shares of class A stock were

run

readied

convertibility step

month

usual

6%%.

$40,000. The capitaliza¬
tion of Gulf Cities shows
a com¬

tome that his country could not possibly follow a hypothetical Brit¬
ish

then

was

large potential capital
At current price of $6 the

40 cent dividend affords

The

Cities

mated

One of France's highest-level finance officials confirmed

certain.

were

capture this market.

territory, plans

$15,000,000

£*•

31)
&

$18,500,000
of
bonds,
Metropolitan Edison Co. is

due to open bids

Realizing

ago.

rate

Counter

issue of $18,000,000.

while

General

over

New York Telephone

bit

years

next move is to

Service

$20,000,000 of

1
a

two

with

liberal

was

following day Indiana
Michigan Electric will market

"Off-the-Hook"
case

gain.

position

plant and
Next Week's Prospects

the

holds for

was

is inclined to

been

several

will

(jointly).

yield of 3.40%vto 3.50%.

has

from

1199554320

—

The Security I Like Best

scopic size

how

The market

refunders,
ly

Stearns & Co.

Continued from page 2

Gulf

similar amount of divi¬

& Co. (jointly); Kidder,
Peabody & Co. and
Blyth & Co., Inc. (jointly); Lehman Brothers and
Bear,

that

initiate

laid

straight refunding operation,
to provide for prepay¬

The

In the

Fenner

Stuart & Co. Inc.; Union Securities Corp. and
Glore,

West Florida

for bids

designed

All of

versa.

realistically convertibility
as

Pierce,

bidding.

sale

the vast potential of the LP-Gas
business in the rapidly
growing

<•

syndicate.

those

and

Forgan

Mills
new

Railroad, this would have, been a
father dull week in the new issue

out

EPU, and the International

Monetary Fund. In defense of such

Lynch,

the embryo business of Gulf Cities
when he arrived from his Minne¬

Nashville

offering, dependihg

indefinitely, they ean, and probably will move
progressively toward convertibility on a de facto basis on the
and

$30,350,000 of

49-year bonds being put
today by Louisville &

Recently

convertible,

of¬

well

were

sional 4% bonds due hext
year, it
is observed that the
long maturity

Flirting With Convertibility
are

competitive

announced that directors have
approved
about Jan. 1, 1955 of

was

issue

were

ment of

decisive step

which

3.05%

Without the

herself will adopt some
measures, if partial
which will get a good push from GATT,

apolis

Illinois

currencies

Merrill

$7,000,000 of
mortgage bonds, series B.
Proceeds
To re¬
imburse company for capital expenditures
already made
and for future improvements.
Underwriters—May be de¬
termined by competitive
bidding. Probable bidders: Hal-

pres¬

Mean¬

who

'.''•

type; that is, with their currencies convertible into

and

slowly.

$6,000,000,

fered

loans

Swiss

spell

moving

taken.

look for

the

time Western Massachusetts Electric's small issue,

priced.

Continued from page 5

determined

States

only

investors

taken

Northern

Co.'s

under

came

despite

offering such yields.

security offerings pro¬
yield of 3% or there¬

secondary

were

credit policy,
institutional
investors still recoil from
new

easy,

the

over¬

again

developed

last, when

hardening of prices, and
consequent declining in yields in
the

an
are

$20,000,000 of new
bonds, brought out to yield 3.01%

gradual

•Despite all indications that the

first

Underwriter—

obtaining funds

week,

Power

institutions, up to this
point at least, have been able to
other outlets

This

the

area.

contemplates

company

Major

find

•

security, where

new

falls

the

Under¬

program.

bidders:

Sept. 8, it

sey,

company

write

(with

rate

if Utah & Idaho Uranium, Inc., Kellogg, Ida.
Sept. 7 Lester S. Harrison, President, announced

order per¬

—

Probable

common

the

150,000 shares

None.

Proceeds

Western Pacific RR. Co.

offering to

share for each five shares held

new

was

•

Sppt. 30 company applied to the SEC for

at the rate
share for each 10 shares
held on the record
is presently expected to be in
November.
To finance construction

new

writer

Securitiei

Dye & Chemical Corp.

stockholders of additional

$1,500,000 addi¬

one

date, which

Beane; Stone & Webster Securities
Corp.

Higginson Corp. and P. W. Brooks

mitting it to register

temporary

repay

bank

26,034,-

Co., Inc., both of New York.

financing

& Power Co.

a plan to seU
600,000 additional shares of common stock
this Fall.
They will be offered to common stockholders

Ohio

preferred

new

Underwriters

was

some

White, Weld & Co. and
Corp., both of New York.

provide the approximately

handled by

outstanding

announced company has commenced ne¬

gotiations for the

tional

the

approximately 72%.

Standard-Thomson

Sept. 10 it

(

will

Virginia Electric

Aug. 20 directors approved in
principle

Transcontinental Gas Pipe Line Corp.

off^ will be subject

ta deposit of sufficient Humble Oil shares

ings

mining operations in Utah by the sale to the
public of its unissued treasury stock. This
financing will
follow completion of the
company's current drilling pro¬
gram.

for

its uranium

Vance, Inc., New York City, investment advisers, and
certain of its clients. Thereafter it intends to
make an
initial public offering of its common shares.

for

the

Oil
The

exchange

September 28, 1954.

■*

i
The Commercial and
•69

September 30,1954

Financial Chronicle... Thursday,

(1320)

BUZZ

ping
They

lead

will

projects,

BUSINESS

stop* j

of
apartment
building,.
expect it to continue in
volume under insurance
conventional forms of

good

and other

mortgage credit.
In
^

Nation'* Capital

from the

for

accounts

construction

housing

Arid You

Behind-the-Scene Interprets

multi-family

arty>-* case,

only about 10% of all hous¬

ing construction currently.
(This column is intended to re-

practical
demonstration,
figuratively
speaking, of what Johnny
should do when mama tells him
he can go into the water but
moment to Work out a

will come
applying actual
deals the operation of the

This demonstration

Act."

that Sec-'

under this act

It is

-stocks

.foreign currencies.
Harold Stassen,

working off f its
aggressively as it
they will
bring, or (b) refraining from
doing so because of the tender
regard of the Eisenhower Adstocks

his
the

the
other
traders besides the U. S.

country at any time or

in any

counts

not do

*Mit must
pense

.aale

at the ex¬

of the normal market for
of such commodities for

dollars.

Secretary Benson has-

condition

lars.

this

would

objective

their

own

fcad

not

would

able

the schemes by

^declared

his

that

week

last

ence

however,
press
confer¬
was

ideas as to how
dollar purchases could

without

fee assured.
-

Must Not Compete

Unfairly

Another of the apparent

glar¬

ing inconsistencies of the act is
the command,
enthusiastically *'

the Secretary of
Agriculture, that the sale of sur¬
plus Commodity Credit stocks ..
must
be
pushed,
BUT,
the >
by

accepted

YJnited
«ell

States must not under-

markets

world

disrupt

for those commodities.

In other words, as one
er

•We

tbull
must
an

observ¬
government explained it: i

must

not

operate

china

shop

like
yet

refuse henceforth to

umbrella

hold

officials

our

moved,

going (to

are

the

Congress

Act

sultant

some

loss

the

world

FHA.

The

Treasury

Budget

the

However,

Department of Agriculture

primarily responsible for sale
surpluses for foreign curren¬
cies, and the Foreign Aid Or¬
ganization for the free distribu¬
tion, for famine or through
charitable agencies.

move¬

press

avail¬
raincoat,
because of the stability of busi¬
ness

policy of active
of credit. Officials who
and

housing are not worried
fright which FHA has

release to announce that

given

Mason

issued

Full text of Commercial and Financial Chronicle : September 30, 1954, Vol. 180, No. 5364

FRASER