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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 I 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 on page capital is in the turbines, fur¬ and industry, and gas home Francis K. point out that our own investigations into the nuclear energy began 20 years ago in our own McCune 50 Association of 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 44 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 c of • panorama has gone promising, and so is the industry. Our company has in¬ vested a 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. on 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 a 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 22 REGISTRATION porate securities are afforded a and State and ALL Municipal Securities « ★ * * Government, * £ CALL " Complete Brokerage Service U. S. Government— telephone; HAnover 2-3700 BOND 30 , 115 BROAD ST., N.Y * THE NATIONAL CITY BANK Broadway, N. Y. 6 System Teletype ★★★ ★ Exchs. OF NEW YORK NY 1-2152 ★ ★ — Refined — 122 Years of Service to Bond Dept. Cotton Exchange Bond Department Dealers, Markets Banks Exports—Imports—Futures 50 BROADWAY, N. Y. Detroit Beach Geneva, • • • Pittsburgh Coral Gables Beverly Hills, Cal. Switzerland Amsterdam, CHASE THE NATIONAL BANK OP TWE CITY OF NEW Brokers CANADIAN BONDS & STOCKS Orders Executed On Public Service Co. of New All Canadian Exchanges At Regular Rates CANADIAN WIRES TO MONTREAL AND PowmoN Securities TORONTO Goodbody a Co. MEMBERS NEW Analysis BRIDGEPORT PERTH AMBOY 115 BROADWAY NEW YORK upon request DEPARTMENT Teletype NY 1-2270 DIRECT Hampshire COMMON YORK STOCK EXCHANGE Grporatioti 40 Exchange Place, New York B, N.Y« IRAHAUPT &CO. Members and 111 York Stofk Exchange Principal Exchanges New other Broadway,^!. WOrth 4-6000 DIgby 4-8727 YORK Holland CANADIAN Members N. Y. Stock Exchange Exchange • Maintained and SECURITIES American Stock Bldg. NEW YORK 4, N. Y. Miami Teletype: NY 1-708 Active To Our Customers T. L.Watson & Co. Liquid Trade of N. Y. Cotton Exchange Hollywood, Fla. Commission Raw Inc. Exchange, ^ Y. SUGAR Exchange Orleans Chicago , RE 2-2820 Net 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 York Commodity » DEPARTMENT WALL New New MABON & CO. i j Bell 99 Municipal Members New BONDS State and 1856 H. Hentz & Co. American & Foreign Bonds Preferred and Common Stocks * LAMBORN & CO., Inc. MUNICIPAL and j, ^ bank & trust company STATE * Municipal, State and Revenue Bonds £ All Corporate Chemical * MARKETS ONE ON 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 2 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 In 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 84 PHILADELPHIA Liberty Street West to Me. a basis, and merchandise Since 1917. Members York 120 Stock Exchange Stock American Exchange BROADWAY, NEW YORK 5 TEL. REctor is quality, 2-7815 of Trading Markets Alabama-Tennessee Natural Gas Company Company Lynchburg, Va. addition best possible authorized LD in the and American Mercury Insurance Company selling under $7.00 of the Supermarket the of 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 in weeks. at the are rate of than $60,000,000 per annum. Earnings (since 10-31-42) retained and reinvested in 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. a same time actually improve profit mar¬ gins. The second significant factor the profit on squeeze and 1951 1952 Stock dividends of 10% and margins 5% in 1953 in 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 is for more a 7, 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 close of in' the and 1953 the was food display, sales. than $200,000; year in The sales volume Market relations common per operation to 30 cents As of Aug. com¬ listed can employs women time. have some with for mar^y years. have shares been are - traded of The listed through the department the Labor good. not are of Numerous been the over un¬ Ameri¬ are not subject assessments. annual Thoroat the annual ( stock is capitalizing common near-term York Gas Stock Corporation serving has had ratios. The following table is in¬ r • •, * Yamaichi Home Office Brokers 111 Co., Ltd. & 1897 Tokyo—70 Branches Investment Bankers Broadway,N.Y.6 COrtlandl J-5680 high a gives of H0*>R promise, growth more the in A future. glance at few a statistics (Table I) will give t 'n picture a 1 what of 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 to 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 of 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 on now LOW-PRICED greater empha¬ this phase will on tend to in¬ URANIUM STOCKS profits per customer. The competitive position of LP-Gas to crease electricity is shown in parison the in a leaflet, Gas for entitled the "Liquefied Household" two In my 120 per section 400 over aod cents kw kilowatt hour." one-half cent to rate. A three to from at a cent three rate is advantage that Gulf enjoys lies in a very management team. The top-management is shared by R. J. Foster, President; Kermit Fos¬ as 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 ON 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 a 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 L. price/earnings / write growth and times comparable or 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. of POOLE corporation, electric on Stock Exchange, have no pre¬ emptive rights and to about pres¬ than $800,000 average to and Exchange, any and 1944 was less at the close of the more of 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 as 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. by have against the realization of equitable net earnings. scientific Members Gulf Cities show holders of record resident in use New ing more years Qppmheurwi &. r€w Members 478,996 31 com¬ have unusual appeal investors with vision— to 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 to '• 470,547 356,555 the the margins to German I. $1,278,047 770,087. $136,719 as "Thorofare." HORACE St. moderate business adjustment and of promise of of $4,911,143 47,264,369 25,359,071 1953 gain in sales and recovery in profit VALIDATED stock mon a 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 is 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 to Special Report Available its ♦1954_ kets. at 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 5 - Avalon, .Pa.; the Supermarket, the corporation maintains main ware¬ factors Tel. DI 4-7140 way, during recent weeks in Whitehall, warehouse the to the Greensburg,, Pa., by each in space During per the confi¬ customers' order two including velopments (Currently their in 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 LY premises, In 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. 5 wires to 7.66 of 16,000 square feet of mar¬ the 3.42 3.00 a available for the convenience NY 1-1557 Mobile, Ala. Direct 35. Exchange Exchange 9.00% struction available. Stock HAnover 2-0700 Yield 5% 5 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 a to as Stock York American New Orleans, La. - Birmingham, Ala. 5 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 - 5 tion, ffiUONNELL & CO. New F. A. Members and 2.10 In are cash -and- are —Yield from— by type. on prices estimated basis: 2.66 creasing in these Steiner, Rouse & Co! 19 Rector St., New York 6, N. Y. projected an Price what lies back of the brands they sell." " \ made Rights & Scrip note namely, talking specifically about service carry of matter a of on 50 dence the markets Specialists in dicative yields years self- large Sales been saying as 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¬ in and of of 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 as 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, to 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, F. ARTHUR as an Week's Participants and Their . particular security. a Forum of experts group advisory field from all sections of the country participate and give their Diversified different a This * Thursday* September 30, 1951 page 59 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 j a in store for those the job who continue to think of Canada's frontier with Far unity which it is the North jwaste in over of terms frozen a which the Royal Cana- world dian Mounte d Police chase of '* Icebergs' and ' . . - • Each The Expanded Operations of the World Bank ^ and to the Yu- k o and n A. R. Nor thw est Germain Territories, twice are as all as 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 more administrative work for the governments territories of the tending to old age as pensions and allowances for the blind (paid in the form of food¬ stuffs and .goods to the Eskimo), . "the collection tax and of 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 of It —Walter natural resources or is i the frontier. aid which securities rifle but with be 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 a 1867 when was East. in - -. No 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 on .U. S. political and jdioiniE affairs to this day. dians can, on all itself North the eco- the top and but As We See It News 40 giant portland ... ... 60 .... Recommendations: Discount". reeves-ely 43 We of the j. and 12 :8 — points, Our 1 American Electronics Ine, 16 ... Eastern Industries 53 Common Security Offerings Prospective The Market Pole is no longer a hub. Increasingly, are becoming aware . . . 1. 41 and You—By Wallace Streete - - Continued on page The State of Trade and Industry... 2i Washngton and You 4 Reeves-Ely Lab. Inc. 6<K ... Gardens, London, E. land, c/o Edwarids. & Smith. f l the COMMERCIAL and Drapers' O, PREFERRED STOCKS * Reentered Reg. T7. S. Patent Office 25 Park Place, COMPANY, Publishers New York 7, N. Y. ,f. Rohr Aircraft Corp. Company i second-olass matter Febru¬ 25, WM V. FRANKEL & CO. Subscription Raties Subscriptions" in United States, , Spencer Trask & Co. [REctor 2-9570 to 9576 HERBERT D. SEIBERT, Editor A Publisher WILLIAM Members New. York Stock Exchange 25 BROAD ST., NEW YORK 4, N. Y. TELEPHONE HAnover 24300 TELETYPE N. Y. 1-5 • 0 Albany • Manchester, N. H. Boston • Chicago • Nashville • Glens Falls * Schenectady • Worcester DANA SEIBERT, President Thursday, September 30, 1954 , Othdr Offices: 135 South S. INCORPORATED of in 39 BROADWAY, IIEW YORK 6 Dominion - Every Thursday (general news and ad¬ vertising issue) and every Monday (com¬ plete statisti&l issue — market records, corporation news, bank state and City news, etc.): U. Territories and Members Pan-American Union, $48.00 per year; Possessions, Other - - quotation clearings, La Salle St, Chicago 3, Hi- (Telephone STate 2-0613); Preferred 1942, at the post office at New York, N. Y., under the Act of March 8,1879. ary WILLIAM B. DANA as & Eng¬ Copyright 4954 by WllHam B. Dana FINANCIAL CHRONICLE i ' 'j \ i;«i W. L. Maxson Corp. —2 Common specialized in Preferred Ketay Instrument 18 The Security I Like Best..... & 57 ... Securities Salesman's Corner to : -i 21 Published Twice Weekly For many years we Exchange PI., N. ^ ; 59 Utility Securities Securities Now in Registration fr - 40 Teletype NY 1-1825 & NY 1-1826 distant world mor-> securitit f 41 Reporter's Report Railroad Securities : markets in 5 Our Reporter on Governments Public trading over-the-counter HA 2-0270 49 Observations—A. Wilfred May and 250 Singer, Bean & MACKIE, Inc.: 46 Bankers maintain than 1. 51 ..... r cement 8 — Funds About Banks ^ v manufacturing -Q-rri^TTirr have sulphur given : a ; .Cover (Editorial)........ Investment / pan american a Canadians the whole, tackle 42 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 by 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 a consecutive 17 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 II respect to (Boxed). Business Man's Bookshelf / Longer Far East and other Asiatic continental 10 to 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 a Canada. distances centers from 5 with Trading consecu¬ 24) and page Unlisted re¬ joined terms. , wrought over (Table II, page 35) (Table I, ■ com¬ : ' It century in which act has 126 years ❖ ..." John F. Reilly, Manager Canadian showing the banks and the Canadian Exchanges which have paid to inaccessible Pole A its tabulation Trinity Place, New York 6 "'■>-IT, in Canada * : indifference of its population but of a (Letter to Editor) he The the 74 "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 on 19 way territory, other Prospectus • mexican Sense! Good . work * .. . sci¬ " -because on 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 20 tive cash dividends from 10 to likely it will mpre Gieger a .. ... • . 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 . •• .. I Article starting on the cover page beautiful teamwork. geographical * 15 Randolph Burgess 17 t Expanding Economy for Investment" deals with the investment opportunities in up 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 In opening 13 The Federal Taxing Process and the New Tax Law (Part I) projects is • " —Charles M. White. sanctioned and undertaken is left to private effort. the Eskimo inhabiting the region / various t- ■ '■ .. ^American Tidelands ; „ government the E. 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 9 Banking Trends in India—S. N. K. Sundaram.----— ' policy seems to be to encourage by every reason¬ able device private promotion of nevertheless 5; of the The Prospeets for Convertibility—Hon. W. so Spahr_ Banks-Complement Commercial and Mutual Savings of pitable enough - . Anthracite Industry on the Mend—Edward G. Fox... velopment of the territories, are The general aim the ■ f v prosperity—Roger W. Babson able to promote. places / A Look at Canadian Natural Gas—N. E, Tanner. in but . ——6 do climate is hos¬ JT - « 99 WALL abound there ■ glaciers many us! to 5 * . . —Hon. Richard A. Butler__ We Can Have Both Peace and * > administration V • - . ~ 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 4 ' national of envy f , . observe. to This sense a ' a MILLIONAIRE 3 - Marry obsoletes , • .. their back ; * ' power pushing of Germain___ R. Flirting With Convertibility—A. Wilfred May . are A. 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. J 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 : 3 (1263) of 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 • f 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 • 4 (1264) f " The Commercial And financial Chronicle... Thursday, September 30,1354 ' ' ' ' Valley ner Oilier Oil Wells the on importance of oil, the extent of brand a 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 as for power genera¬ - average total output as , V has become major a factor in space heat¬ ing. So is it that with each new Ira U. Cobleigh pri- use, and by¬ mary product, there has arisen fabulous, unremitting burgeoning demand for oil, max¬ imized a in postwar U. growth rate of 10% the five the United point where it 60% of side per all world's and its commuting Venezuela the and Java to a (out¬ Araby, make up difference. This ing thirsty, endlessly expand¬ demand for has oil led to hopeful, romantic and aggressive drilling in every country and clime, to push on world may In the the known up which serves oil an re¬ consuming call in years to United States come. there is usually offered each year, a semipessimistic announcement that in 15 20 or of years oil. The prophecy we'd be fresh out last was at Cassandra-like the 1953 end when the oil omeners that we had underground of only 29 billion enough .to last for year's opined reserves barrels, or paltry 14 a this reluctance The earliest of these the upper oil more year we're each accordion-like using at least 3% and year in each feverish drilling and explo¬ on land, and off shore, ration seems to smoke out a few billion barrels of liquid marine life decay. Smart scientists and en¬ gineers are ever scratching their more brains for ing more new and methods of squeez¬ more of the precious black fluid from existing oil pro¬ ducers and ervoirs. It underground is about oil those res¬ varied to was Now section of bore so casing the to was to get either lower the 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 in time has debris. steel Then around known This of 1932, the acidizing as called for solution a 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 of increasing brought in or 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. It 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 of any be¬ injection away fluids escape because of the It cement. some other travel may or band it of may rock previously treated. Active Markets Maintained in Kansas Turnpike Obligations of: Authority A second system involves what of perforating is 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 at 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 as a 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 as continue to raise men steel new orders their sights over in come steadily at a summer faster pace than had been anticipated. Ingot production this \ week is scheduled at 69.0% of '• 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. 1 "The to 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 As barometer of overall economic a 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 a quickening of overall metalworking activity, it observes. 1 • 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. on automakers a new model is traditionally on 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 is a seems to general to 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 In 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 I Production Food and sev¬ fails in back of the casing enter on (formation side) of the was attempt eral up 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 to plode gobbling quality; oil toddling steps toward a the ingenuity of man has devised certain techniques. years year, of the refinery, Muscovite from from the first minions). The U. S. produces about 10% less than it consumes, thus keeping an immense fleet of tankers beds of 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 to oil series no has This States a now consumes over the Russia by year 1946-51. years carried S. 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 IF this, solution a jellied By in t 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). is By IRA U. COBLEIGH Some comments Redwater and limestone f • . lated methods production (acidizing or in of many stimu¬ bands sand fracturing) fail Continued on page "Ward's said that changeover operations continued last week at 30. in 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% a 23.6% .gain in domestic with an output upturn ex¬ " output a 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 a 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 on page 45 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? a Et here provide * stemming from Mr. Butler's definitive on the to as 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: y> Bridges If about i 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 t. British ... opposition , to by Mr. Butler, is based of drug addicts, mind devise can to as ^4 ■. & is a E. Spahr was But this permitted close without any re¬ ings In the House held were on hear¬ no the companion Prior to the introduc¬ tion of the Bridges-Reece bill in bills session had House of been human similar Congress, introduced in body, there for excuse diseased a currency healthy blood¬ sound a the by Representatives Buffett of not monetary one at 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. of 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 an than our people at this time and for and the of regrettably, the latest session Congress provided evidence to the effect that the tration far is not the as a new Adminis¬ good doctor in monetary bloodstream of this nation is concerned. Bridges offered Sena¬ sound a enamored with the so effects so and possibilities intoxicating assumed of 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 an Treasury official stands in direct conflict with behalf of deemable his prior currency - To the obstacle to sound currency an Treasury and Federal Reserve of¬ ficials must be added the office of bill. on any ♦An address eon of those bills. August 20, Senator Bridges by Dr. Spahr at Obstacles Which the People lunch¬ a of meeting of the John Erickson Society, Engineers' Club, New York City, a Are Depriving of the United States Sound but none of 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 ■' in the United Continued on 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, as "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 by 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 on page .i "W tt v> -» ' < * Salinas Phoenixville San Diego Brooklyn Lugano (Switzerland) Philadelphia San Francisco East Modesto Pittsburgh San Jose Erie Orange . I " . 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 be of blocked Members New York Stock Exchange and other leading Stock and Bakersfield politics in another instance here as seen States page A One of these considerations appears to be valid; in the form of is 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. ' . 59 his Treasury official in the present Administration. blocking Britain, not openly voiced, political consideration—with a general election on tap before or to re-, as a The other major obstacle one- in arguments gold standard and a appointment the major reversal in such policy, will there not always be by the an 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 of 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 It the on is at least hoped, or but more a 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 a valid a earliest tor port being made by that subcom¬ mittee to the full committee or to the Senate. never the Senate. a bloodstream with f Congress in the replacing And in States as 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. is *• 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 a would or L 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 f cur-; r session of ord" to quacy fear employ every argument which the human gress, perhaps in the next session bill, and rency On that one's conclusions seem manner drug currency they it and, in the embrace stated in the ^Inasmuch gold deemable on : thev on standard-re- The Obstacles It would taste of the a corrupting irredeemable of 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¬ . as given are outward manifestation of vigorous pressure for passage^ of his bill ■ 2? , tion intends to policy pronouncement at the early proceedings now i# , " of the world's monetary authorities gathered here. . . - vertibility A >* '■ 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 e - feet before Wilfred sound a 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 of credit One of these obstacles is the old and well-established fact that once insidious economic rate uses ' a The • national Monetary is, a gold at in 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 of Monetary Policy on which is fostered by the Administration and Congress conforms with the desires of the " darling daughter! my 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 5 (1265) the best interests of Fluting With Convertibility .* 4 Broadway Broadway Oakland ' 48 4 0 (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 in towards And This Is Not the Time For Chancellor of Convertibility! Britain's ranking finance tended must official maintains freedom for trade in be 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¬ I regional arrange¬ have all expres¬ think we now are abstract for a it, Fund its what is own bers the sources it It is filled to seems to have the merits American of the Constitution, in that it written, and the But up adjust-* there ing itself. me value to of 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 in by aid, and tional and very there and serious a more with re¬ oscillations two gap, U. S. deep-seated a imbalance in interna¬ It payments. sensible in natural was these circum¬ stances to break up the worldwide problem into manageable more 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 I ' -■ - Montfort. First, past. an Multilateral absence of •unanimity among its members, and particularly, if I may say frankly, among the major members, about I suggested should from come the than climate it is coast that jump a in to country a somewhat is of here-^-and from I 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 in a the east coast of Eng¬ on 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 if That I suggest would be a dent course for some of us. , Leaving aside this pru¬ considera¬ tion, I deep human considerations. want Member to before put countries—and I 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 we 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. by the of 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 in is, conditions in which multilateral system of payments can be envisaged. a adopt policies condu¬ the expansion of trade, be¬ have we standards of life. the founding in ■ views of international experts and central banks with the hopes and how of that " r that the work fathers march must gether. held upon time our must we trade and forward to¬ / the shall common we do man. this? Well, And we I Convertibility, ferred to in journalistic hear it corridors re¬ in seems interviews, and to be regarded as a sort of terminus. But it is the of really only the beginning I regard it as a journey. in reward efforts our if we suc¬ ceed to create the right conditions for healthy expansion of inter¬ a national trade I certificate that to continue should we are it regard down how Well, the as be abV in road same progressing? we Europe. I must be 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 in under group realized We EPU ments be chairmanship. my that the OEEC and transitional as arrange¬ fuller multilat¬ towards a 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¬ to rope tainlv Wider system. a vital to 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 to in frpjn the regional worldwide system. a We have certain made considering the nrogress provision credit, for example, to sustain vertibilitv. I freedom the trade, and have possibility European a there, will role for this, and of cpn- about of have considered the of the sooken liberalization and we be to fund. important an Fund in o'av discussions will be all nec¬ between the Fund and the essary countries when European field our ated exporters the United Kingdom. * towards advances Similar have trade of made been free others bv 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¬ a record of progress to¬ worldwide system of mul-, couraging wards a 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 of 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 as of Pr>rn non-aid and nrivate pP 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 no way that European stress to cooperation on regional basis is a inconsistent with, but complementary in world the as and, IMF to, par¬ organizations, the a^d GATT is known in this gathering, as 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 in 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 U. the on S. 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 in of 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 as than tions preserve and payments already secured in¬ the high degree of liber¬ right. conceived from the be¬ were ginning in Issue well have discussed converti¬ the ministerial OEEC we must a of trade with prevails. So restric-* are now the exception rather the rule and over a very wide: a practical I an and world I as the controls on and individuals imports. Most of these restrictions have been progressively swept as 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 we 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 we A few years controls and 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 a in 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 a Beginning has the dollar serious a Easy Task are system. colder equilibrium. till the past was No efficient working bathe. reserve with deal Canada of , easy or simple task to the equilibrium necessary where all payments providing mem-' round about that make —ever Rt. Hon. R, A. Butler Fund we internal no the It objectives. The was develop. our , young prevailing in the world international in -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 to credit, and consolidate Equilibrium : family I in learn cumstances able to the Fund's sterling area and the Com¬ monwealth—because our friends cive to liberalization to hopeful is that the economic cir¬ as time, need policies. no easy good deal closer together. What's more important and Fund, We ex¬ this But in the of need And I were for a long time after the daresay that? Second World War quite unfavor¬ we time. be can widely. We need to discuss widely extended; tended. heard the which the freedoms more 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 in is to example, for the consideration of the many intricate problems facing Europe, We need time for time is needed more more 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 A. for grain, of 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% f may be obtained within any the of therefore, state from any persons to whom the undersigned legally distribute the Prospectus in such states. We Ladenburg, Thalmann & Co. Fulton, Reid & Co. Johnson, Lane, Space and Co. Incorporated September 30, 1954. in place Coffin & Burr Emanuel, Deetjen & Co. Fauset, Steele & Co. known as made very con¬ progress in 'the sterling have had a series of one Sydney, I year. in the of the in Chapter 2 of as what is 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¬ of led which area, and I speak as one who realizes that sterling finarces half with that is, surplus Australia, of 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 in balance driving force for moving towards greater4 freedom in trade and pay¬ We Higginson Corporation I It 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 to selves for to in still give * in general inade¬ support by them¬ decisive move forward convertibility, for these reserves many c/ases still amount to a *1 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, as those held national Monetary of come we by the Inter¬ Fund, will be¬ increasing importance move Some reserves, forward. Existing as Not Supports However, field this of ments as for cannot be durable and lasting. example, United great the States scale world, shows, international which to aid still is the trade If and payments and particularly in the United States with payments the of rest stable more factors at work in some national creased the report as are regarded These are, the which giving on of rest a the the heavy Upited Stafes military expenditure overseas, in¬ cluding off-shore purchases, and factors, production ' countries and such trade there So going will to more relatively equivalent period, bal¬ considerable of payments world in¬ as not coun¬ difficulties re¬ strictions," and contraction of forward the world power, States Europe risks ar£ of in Europe with expansion a major namely, the United of economy activity in 1953-1954. that the America, is static; part a balance And think members about the feel I can of say when they United States holding its all see econ¬ and showing signs of maintaining its improve¬ omy, own want we to add to this eulogy the very definite feel¬ remember that the rate of expan¬ sion in any country and the ratio tration all look for of 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 we ress a more liberal earning rest of we marked prog¬ the In all Fund help in all collective our the members wards greater tices and ord in our freedom policies, 1953 for year currencies to effort progress the in was a rec¬ Fund members sales and of 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 a record a to greater, confidence on 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 on on the bonds are or or Constitution for the setting aside of license taxes, levied by the State of Ohio, relating to registration, or sufficient amount of said fees, excises license taxes each or <♦■■... . • 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 J 1.10% 1,670,000 1959 1 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 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. or 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 or 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 as to fuels used for propelling such vehicles. Provision has been made by law and by the State without other appropriations. a Coupon bonds payable The Northern Trust Company, Chicago, 111., at The Ohio National Bank, Columbus, at 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 to as 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 ft ^ i of for repayment by members. Exempt, in the opinion oj counsel, under present laws, from all Federal Income Taxes OF of to¬ prac¬ New Issue STATE the this? in the United States towards more the Function of the Fund can There now And so, we have been gratified that the United States adminis¬ v The How ' And of world. the reassured more future the dynamic opportunities due in great was maintenance I so would increase the dollar of health and strength of the United States economy. Hails Halt in U. S. Decline world the United provoke international to The fact in 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 - a ance increased oppor¬ an is over of States expansion in the major tries the certain in tunity to trade, and invest pay¬ of 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 7 16 8 (1268) f '■■'■f'-'x.r »'• ? ''' (. The Commercial and Financial Chronicle... H 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 40 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 I. du 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 to Colorado Power — Analysis in current issue of Digest"—Loewi & Co., 225 JJgst Financial and 2, Wis. Street, Milwaukee In the issue is same an analysis of Emhart Manufacturing Company. r 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 on 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 of 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 AD Digest—Booklet—Amos C. tional Bank Building, Values in 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 — is for NSTA our Supplement of the B. 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 In Chemical Research Corporation—Analysis—L. S. Jackson & National Convention in 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 on 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 La brochure—Glore, Street, Chicago 3, 111. New York 5, N. Y. Associates of associates submitted the high Corporation in 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 a net to 1.3811% at to bonds the prices to yield 1.50%. are interest exempt on the payable from fees, ex¬ license taxes relating to cises are or vehicles to fuels on operation or use public highways, used for propelling such vehicles. Sulphur Stocks of or Uotmroi .fcatritics Davine J. approximately $582,000-,- be & 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, J. Mericka Co. & Incorporated; & stock R. L. John & Clarke W. Craigie & held is & 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: N. Y. Security Dealers Association Trinity Place, New York 6, N. Y. NY I- 376 61 Through Research11 plus "A Green 9-0187 Office Tokyo booklets Investment will be sent you to ac¬ vastly improved Investors Rerearch Serv¬ absolutely ice. 28 FREE you Proven packed obligation BOwling Head Positive Program for 1954-1958" Ask Broadway, New York 6, N. Y. Tel.: securities BOTH-FREE! y on 74 administers "Profits Japanese Stocks and Bonds 2- 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¬ is trust quaint Troster, Singer & Co. for City, Company Material and Consultation Pan American trust as Both • 1 2400 in National of (Co., em. • HA 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. 1 Principal of and interest Gulf • in 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 a reoffering Upon Bissell & Wall Street, New York 5, N. Y. 11 d resulting of cost from Federal Meeds, 120 Broadway, New York 5, N. Y. e State. of 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 of 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 an 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 w '■■■■•■ *i. t • Work for the Consumer Whether Mr. Babson .contends that what we 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 in mp a kind of fatalism about our e c ono m i , A .. than , more change than we change the weather, Walston & Co., members of the New York Stock Exchange and other FRANSICO, Calif. — Broadway, New York City. to phone to seem Montgomery Street. He viously with Francis I. & Co. was pre- du 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 m ... .. .. T * o i tt 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 we 2,500,000 Shares have A lesson war. will learn from the reces¬ sion which started in the summer we ©f 1953 is that we can have both and prosperity if adjust ourselves to the peace will we Law of must The National City Bank of New York be Supply and Demand. But done lot a on of research merchants. who These determine business. dollar bill the are employment wish I for I had a 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) V( " •. 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 of inventions new methods must be 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 so will be able to buy the products of our increased capacity. This - surely requires J 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 we 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 at Clark, Dodge & Co. Merrill Lynch, Pierce, Fenner & Beane Ladenburg, Thalmann & Co. the TV sets first current asking When his the a 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 he get^ into the act as more more Dean Witter & Co. Union Securities Corporation roods are pro¬ is spent-on ad-, . the staff of Reynolds & Co., 425 c 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 rp cent months a market is lost, organization had better no 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 can ' New Quarters of Supply and Demand. This Law we will have harder, produce better products at will we we 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 - or Walston & Co. In 0 9 of was F. 10 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 As I time been of operating, Trans-Canada of 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 I that original he 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 me more the or less out of his class, ably would sisters | N. E. have offered to make their know- how older the the how re¬ girls hold to baby came her when she own her in in eral opposite sex. We are de¬ termined member way to be to heartedly an having grown gracefully to maturity. Referring back to the ugly duckling: If I remember as shape were while pretty yet was a well the well acquaint¬ you are Western in events which Canada led up to and the birth of Trans-Canada Pipe Lines Limited, it as However, which deter¬ youngster, we 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 of as into grow problems. our to have called on sev¬ and have been given worthwhile help. of very popularity with the with too, that every even us available resources greatly appreciate. I might we 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 In ters, at pattern large and important undertaking. lovely daugh- looked was development, and to whom we can go for advice and even assistance in this exceedingly I member can we deal I this think I is am with today. information expected to V ^ 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 a 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 as far back as miles was 940 B.C. first to 80 p.s.i. up pressure con¬ Na¬ had con¬ with a 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 in this Yes, almost is of many have U.S.A., great situation • which five of as apd of '1 the family. I am the proud lather most fortunate, are baby daughter, to have older with experience ' after my the be sister We . baby brother or longest gas pipe and largest line in the world. prob¬ a better comparison or 5 lfc was inch 2 a 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, as Chicago, is 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 us 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 a 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. in Canada when compared with that of States, it has short period and the astounding of I do appreciate this oppor¬ of discussing this subject with you. Whether or not Alber¬ portance to old years celebrating 50-year unbelievable jubilee. that Albertans we as proaching it 50th our ap¬ lion too State of 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 of there be played here little part no velopment; in fact that the rate and who in have the de¬ fully realize we kind of 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 17 small number when with the State of New turn of the what now of actual con¬ has been looped it line runs couver, year This from Edmonton to Van¬ distance a of 718 miles, lit will carry oil to the West coast serving refineries in Vancouver Canada also century. commenced was ultimate carrying capac¬ an ity of 150,000 barrels daily. the at was Line completed the following with a 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 in 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 we progress States announcement pipe line would by interprovincial Pipe the head it pioneers and the things they have influenced more pro¬ a Lakes due to the spirit of those progress, old Leduc, monton to with Orleans. New to in 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 up compare its of long. system, the others and their great accomplish¬ ments. Take this,; wonderful old it not until anacf^ve gram at look miles combined load, during the 1953-54, was 350 mil¬ seven that accom¬ we field in peak of was just ite plans for improving in the fu¬ Naturally in built was 170 the cubic feet in It 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 to 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 of natural serving look stock of diameter is to 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 or progress I we 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 be period since the turn of the most will we golden our • that During and the and To well the Province ot Alberta will 50 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 to and on my - of the utmost im¬ Canadians and to is in of seven Texas, and regardless of the fact that the industry is young in it 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 of 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 it number risen ments, in that even made is and with most on 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 as than that of his associates, and had been set. project this about SlYa was find line stLling as 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?.. to 25 of have the of our of 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 of confidence in it. pipeline built in gas United the „ those evaporate brine from salt. The to 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 on page U ■ 36 ; 150,000 Shares Spencer, Zimmerman g Waller Devlin Joins Co. Formed in Spencer Chemical Company COLUMBUS, per Avenue ond Share) to business. William H. dent; a F. President; Share and J. Kyle are Presi¬ Zimmerman, Secretary-Treasurer. and accrued dividends se¬ Officers Zimmerman, B. 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 , E. 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 an officer of fornia Company. the First Cali¬ , dent of Clement A. Evans & Com¬ Inc. pany, lumbus Copies of the Prospectus signed in charge of 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 i MERRILL LYNCII, PIERCE, FENNER & BEANE .. ' Shaine B. have Amelar and Maurice become J. associated with Arthur M. 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 of Straus, Blosser & McDowell, with which Mr. Amelar ciated. - was also asso¬ — William members of the Mid¬ Stock Exchange. Mr. Perry formerly regional manager the Midwest Stock prior thereto was Ex¬ was manager Rapids Ohio of the Cleveland Stock . of 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 V: Financial Chronicle) FRANCISCO, Calif.—Vic¬ Hugo Jamieson & is now with H. L. 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 I 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 is the pretty In season. the of me Of that I well that April tion and Twain. as will recall of sound business this his the port of . So with it It is premature mourn t dustry o that delivers fuel with G. Fox value a to the been each year of ap¬ consumer is fantastic demise of to anticipate knowledge the industry whose an in the industry and last, is helped .by ri of re¬ of 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 to full-time of serves go for on generations selling millions of tons of hundreds every of millions That year.- conviction. More producing honest store Philadelphia and Reading, I am equally certain that it is going to continue to produce portion next year, that of goodly a and for year come. of here you have the measure of fact that counted for -7V2 some : in ac¬ distribution million tons of anthra¬ that - size , is be preserved, but It by of be 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 I think with apostles he who and • ably does not have Anthracite customer Unit on demands over He one. He's of this you of 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 is that true the industry difficulties with beset that is not one I claim—and would claim—a have solution the to address State Fuel by am no sure temerity these Mr. Fox at Merchants to many the New Association's Convention, Lake Placid, N. Y., Sept. 25, 1554. Now, what mekns It does all iqr^3cl"V IqA conr this now, production of World War to Korean markets: War II in'-mind keeping u Jhuu .sates, with the result that &«'-overM! decline in sales of f e / io^ iTui I and normal more ' ventoiy dec ine of 18.7%. T es that substantial"31 markets" are: very ^resulted suDstanuai . cooperative a and orderly pattern, The fact of the matter that it did not. competition "day,: is suicidal Instead I' use- the produced hav- ** became the order 'of and in 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 a 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 to through '* years. in the in the the large following ; - Those piano manufacturers who did not came lose faith when radio be popular, continued with newed energy joying a 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 '£■ u anthracite years ... £ !alef Sales of egg stove o1?# V f fail* actually that the , in But mind that the full ranga of sizes is not now in storage, and this may result in a the sizes .most in 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 no . . ■ " * - This is not / Of ■ ' ) •- an * ^ r 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. •; to solve "■ acted as factors last to ; Northern Pacific a' Railway Company r 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. on of a $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 of action a anthracite market taken operators would move to meet this A 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¬ as petition. legallytoffer these Bonds in compliance with the may • securities laws • * You 1953 know war happened. the industry not a number of respon¬ sought ways and means of ending this price war. In this connection, the - j 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. A 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 it coal some price Anthracite Industry Difficulties It - united a combination led personal opinions. my 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 is develop¬ in years to come and wonder The a as anthracite? 10% It who choose those apostles almost, well as familiar are anthracite influence sing the to leave anthracite will look back tion offered when v standard a in the industry. And of of 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 • . is - ing Past three years, and also the decline is larger than the de- Control the fellow who croaks "I told you so" ment a two years ago f 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 an Production con¬ As *a as market. curb to all very what people' don't starts. ,the a the story measures. and give them orders. the kind of dealer who before of 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 as anthracite taken were done hearts and the do call- up . which market. sub-standard and - sizes in anthracite. Nor will it be done by those tired souls who sit around complain ot quota, but of the market demand, only recently that effective steps real faith in the future of no those amounted in the Moreover, we are more than will¬ ing to help you expand it. and I the » a 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**" • * of for which your friends and neighbors in New York State paid approximately $80 million. A mar¬ of the ducers, ,. you cite ket been' Stability By" definition",' readjustment to bring once again to " a satisfactory situation. The anthracjte industry's. production and price structure is approaching which the in dealers,de¬ tomntArfaSrnooiothan this stake is 1953 the not „ru stantial stake in the anthracite in¬ dustry. A year, of stocks of storage coal, -"suicidal" deliberately. ... ^en dumping this so-called unprincipally the chestnut, pea and' • > „• due proportions : of supplies to judgment. Today there is no ' What you have been-wi nessmg No. 1 buckwheat sizes, mounted. .cuse for1 slow delivery either t,y bbta,£ ■ h_ M th Um m - the • anthracite, irrdustcy for* A full During this period, too,- the in¬ this dumping has been attended producer or by retailer. supply of coal on hand in all siz/j' dustry was plagued by the rise of tempted struggle for greater than by a reduction in. the number of a brodurinff comnanies As I said permits undelayed delivery. group of producers, formerly /".-'J®1? known as bootleggers, who pro¬ properly allocated tonnage. It is The Retail Anthracite Dealer * duced without giving considera¬ regrettable, and no one regrets it more than-I that an orderly rer--^. J ^ u tion to quality, and with a shortBeinf$ 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¬ a short result, , _ All on tinued to years not in great demand, production could' be icon-, tinued this ."'■•/? /1. sizes that so pro¬ anthracite in 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 my is unit anthracite the the coal for of in history recall of some under¬ happening this year proximately $300 million. In fact, it good a has of 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¬ an is 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. in sxep standing of it. In fact,. 1 think that was greatly first any his death is A re- revision- in was on „ that this among . Is 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 of 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 a by constant effort, ingenuity arid research, by day-to-day applica¬ re¬ , in positions in the industry. In As 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 am origin in anthracite this occurred solutions* are will be found and made workable re¬ spect, the anthracite industry minds problems. But there its on 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 am you V , 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 I of had n • * • N.,, I 12 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 4 met : , needs *.k in by the Thrift and " ! ■ ; - legislative branch of national economy performed by our financial system, two stand bulwark of Presidents being of transcendent im- as 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 of these provide additional reuuired as hooved Thev into of liquid funds through checks to and effect payments, and provide financial^ istitu- tions Financial financial institutions instituiions evolve and in ful iustification public for cur- several or Partners? evis- ' tvnes of justification ior. to the existneir in tnis service , Modern economic y: life would not -Eouallv use it is 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 of 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 to savings , our banks i 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 : to response *An address by Mr. Ihlefeld before the Dartners partners far more iar more serious bank- a excellent di record hank* ?S u of British at and fimp rp 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 I am these York, Brooklyn, N. Y., Sept. 28, 1954. are are • ing Annual Bank thpv that tnar.tney cummp^ial convinced that both of 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 of without impair¬ efficiency and sound¬ each, of these two ^Shares '• 1 Joe brought was only of institutions. At the same time, through limited participation by partnership in service and happily achieved in we his boundless energy, embraced the Leftist political cause. McCarthy had been his nemesis in his fantastic operation of the , Voice of America. public life. So 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 . V » * *, 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 - an excessive Continued proportion on dedicated was .;•/'« . to 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 so At the time I considered McCarthy would have been walk into this committee's clutches. think, to stand Senate such his on leaders or things within was They asking him were opponents. when it was was • ' . explain, V * were controlled judicial role to this a opposing an fool to rights, I of their most vigorous and one Why he should give nothing but a to appear and Government, at the time, McCarthy his not elders of the were his personal finances. as The Senate and the group, He 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 to Senator the page 47 in 1952, it assumed was get McCarthy had collapsed.. ever this There is still to whether this committee's report as been "filed" or "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 is Government Operations Of The committee which Joe thumbed his ; on This multimillionaire adventurer a was an 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 a between the two Guild Films Senate politics with whom this country has been cursed—he of v the committee of hatchet a cartoonists' types commercial banks in the function 250,000 in which only forward with its way come on which he a partnership between commercial it, has the people of Wisconsin, made assets. On the other band, the arrived i 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, r ' convinced am Chairman of the Senate Committee our first were do can get him—at the behest of into Lefist ; V ever-changing - Terrible fsy scorning created to . • : , I 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 r institutions are mumsuiuuons are .mu principles of maximum : Senator. Carlisle Bargeron i 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 is 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"" is their uneconomically institution Competitors Specialized.use-'; the to service or dered- ™ institution atrophies. the to 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 ... my 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 so SUDPiv seen fight back but not often enough in opinion. • ». .; borers that need e£ d the nation,s t0 a^,d th 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 in "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 1 ^ 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¬ a 'L the other. r . 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 at 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 a 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 to to 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 a was The Democratic set up, it was as a committee arm of the Three Republican members join in against Joe, this the club. an 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 an has found that McCarthy brought the Sen¬ my 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 on the part of one of its members likely to bring more disrepute than anything McCarthy t is lias done. Volume 180 Number 5364 ',;.. The Commercial and Financial Chronicle 14 (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 j . an effective .1 I should introduce myself as the - ... / . banks of head in country.!: It is called my Bank Limited with is. '/ (1) the * ; second largest in South at cieties . branches with ral to be tained its independence it that through ernment at¬ with confess a in we are 1947 I partition. a must (2) nance passing now Reserve Bank of India Agents as inally started Office. to an 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 my duty by the a the The of to 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 it became as When a the inaug¬ was the Agent for which a the to shape of of decade lack of bank controversy in of the century. identity ther and of governed Reserve Bank into - cor¬ and new departments - development of industrial institu¬ matter important sub¬ an mittee. of This a 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 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 of famous the was Committee. Sons Tata of 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 to 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 in Institution. working of the restrictions ticularly in respect of loans and par¬ advances.: ' Until the recent partition of the in politics uniform working, special in¬ any particular interest Provision that Central of 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 in also was the for without . banks. one Bankers' Pool to finance industry predilections, and the other relat¬ As for the commercial sector, it hold or ensure stitutions for the training of suit¬ Board should not be directly con¬ either of To 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¬ of for growth ject State Bank. a 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 of Act, business per¬ It is now proposed to start commercial banks longer in doubt. But for psycho¬ logical reasons, the shareholders' State a bilities which necessitated certain its problem where the government of the day would not exercise a dominant Reserve Bank of India at all on initial industrial-development . . serious ernment and the it Shareholders' Bank be¬ matter third whether It is vested with special responsi- towards come had With serving this to * - 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 as ac¬ the providing trained under the Colombo Plan. a between the then government and the governed was one of the cru¬ Bank did not of with experts in the line recruited bility in ah entirely cadtious and" conservative -i Currency making it for unit question take or 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 a and the tity of interest between the Gov¬ should Banks; and amalgamation the sonnel. pendence of the country, the iden¬ then 1921. a In was the admin¬ over currency safeguarding the credit struc¬ The Imperial Bank of India was on 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. am The independent and ing You I somewhat or 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 a 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 Of control - mainly in trade and areas. As 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 to on serve • Sub-treas- and regard could and r In¬ It has . ' Treasuries Board. The Reserve Bank of India uries of r! city in the;. Madras Statedia. y ; categories: Madurai. : ._'_ ** r , 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 a 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 on page 52 % ojjer oj securitiesjor sale or a solicitation oj an Qfjer to buy securities. ■ ' i - . country It is basically has large, and Fifteen sound. variety of, very a functioning in the form of 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 in put to the for of a 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 a of aggre¬ Price ehaage nu i— fisti on est- Act, every Scheduled to keep^eposited with ' •v»- of the term, piqv ; an , 'An add a*e »ow W Scheduled norma* irsa£e of the country "by-' -collecting the savings of . - Copies oj the prospectus ; '• s , « A *- 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 in the prospectus) as may .. . « legally offer these securities under applicable securities laws. -. r 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 share 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- * , - of 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, Share paid-up an its Time liabilities without inter-1 to 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 at ' 4 September 29, 1954 established outside India. They mainly interest themselves in for¬ Indian is his home India & are are by the government and the people. The average intelligence of the of in Banks The parent offices for these banks natural resources, the exploitation of which are well taken in hand ornaments Exchange ' - / - Langfef & Go. > i •" 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 VI . 32; Scheduled * Seairihe» Corporation w.. i Wnte, WdJ&Co.Dean'Witter &Co. y Cv ■' «"j i , r - this was the position in an undi- 1 & ■ J U in 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 in What customarily rize s u m m a still are able mov¬ ing along up¬ and Report investors 26 a of amount lending of million—than $324 some Eugene R. Black the — equivalent other fiscal year. fiscal the loans new than $34 mil¬ more striking fact in any about that, in was enlisted were — aid to* in reconstruction. Since then the Dutch position has improved that the government most seven five in recent of loans. I 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 as Bank of markets. to the flotation as issue bond 40 a guilder Dutch capital Nether¬ Recently prepayments by million the in the Government has lands also 1947 the on made loan would I like also the to call attention to After the end of the war, beset was her case making, which own any she 1949 in million Austria; Austria difficulties, not of by couraging to In of your dis¬ were foreign investor. needed foreign almost aid $200 to cover her external deficit: but today she has achieved equilibrium in her " million the in fiscal past than faster moved at 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 of cies any In last the bonds the eight various in amounting is¬ curren¬ nearly to 12 Governors' sold have we active most borrowing. Meeting, sues Bank's the of months higher than in year. was year the $300 million. beginning, of member advice give on countries, forward steps States is sold ing the to draw year recommendations; headed non-dollar to the Malaya whicn Chick were we to have the as fortunate services enough Sir Louis of Chief of Mission; and one to Syria, under the distinguished leadership of our good friend, a important when we public bonds, in the United' in. 1952, when the original Canadian At subscription to Annual Meeting in 1953, able to report that the members the of Bank releasing their currencies to encouraging report can the Bank's Now amounts. like a development to access capital markets outside the United States. moment ago, a sold for United States nearly up of 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 to be currencies These disbursed entirely in examples of are aging progress. members have encour¬ Especially during the past two years, European our and more more re¬ their role of exporters of the world. They are again able to produce and fi¬ sumed once to their nance equipment share of 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 of so ex¬ where it good. itself Bank member large currencies far have been wholly or partly inconvertible and therefore place ment of five-year 2V2% of what former Governor of the Bank, Dr. Pieter Lieftinck. The report of sold mission to 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 to to investors different countries. issue to in lish other amon<* mobilize tional capital on things, to interna¬ an basis, and to do it in cloke with cooperation private capital. traded 23 Bonds of this \orK at particularly significant and encouraging. The Bank was estab¬ yesterday in ,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 in of 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 Of ft*- I by Mr. Black to the Board the International Bank Reconstruction and Development, ^shington, D, C., Sept. 25, 1954. all Bank VI and first the United bonds sold investors months, delivery in I want that repeat release to add the of now time has when the conditions attached the Bank's should rencies use be know—the exact anyone of credits standing. of these cur¬ reviewed same time expansion ment that in ^rre interest of progress because and in toward it is at all con¬ the the promise of further of in the er volume out¬ now positive one toward meeting the situ¬ sibility establishing of tralize all available volume long-term invest¬ development.^ of the currencies need availability, without restric¬ of the capital subscriptions infor¬ an data cen¬ the on plied the to they proper be can overused transactions. misused and there and is dis¬ some inated i ' ■ outside the ' available now United for orig¬ States. resources. that, in a It is entirely natural world in which financial in general, the most method of nature of selves and the the projects of the borrowing de¬ them¬ impact country's on balance of payments. But any potential long-term investor—and not only the International into take ternal Bank burden of use ex¬ the bor¬ excessive an medium-term or diminish country's a long-term capital funds. the crease total of So short- must — the account debt rowing country. indiscriminate this kind of 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 of 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 of ments that at still is earlier excessive of "period borrowing, over-eager lending and mismvAstrrient which to I re¬ credits serve can a the normal, short-term flow of im¬ ports or in1 financing investment projects which can pay their way the- financing in purpose for term which But, although the given. of these credits may the is tnere rate of risk that a development, the use of 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 of overlooked. that it is imprudent to us on steady flow of capital a Reliance year after vpar. means of balance aspects be tions the can sup¬ on credits, indeed, in general reliance on something par¬ volatile. country may The importing into payments run to from The outside. ex¬ porting countries themselves may that force payment. or payments them Or a difficulties insist to on cash boom in the world home market may make it pos¬ to sell need to for cash extend and reduce credit. There the drastic was cutback and looked forward to that as a w^at period part by Most of European I in¬ coun¬ United give financial type aid finances to 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 of the government of exporting country. I would- like to 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 to be concerned more with the financial soundness of the invest¬ ment and of sult with the of the creditworthi¬ country. But the re¬ supplier's relative the from is risk that constantly entreating his ernment credit to grant facilities. exporting hear the a is race which win that more of the because Indeed, was a we other So in race competitors the faster each can goes, go. approaching, a a warning are about the liberal. the faster all the others situation of governments developing, none is liberal each complaint are he own gov¬ more In 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 in only industrial tries the to present an opportunity to seem the now. S"*mliers' within financed the suppliers themselves. One just a had Long-term capital funds repre¬ priate turbing evidence that this is hap¬ tal has and than of 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 be interests of tne of 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¬ as pens, under these arrangements a higher price for the goods must the is of if, even to 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 In 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. he of supplier credit facilities must experience we if credit total of pos¬ would service which ticularly evidence kind as 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¬ of our liberal believe I me blamed is often, that I so 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 we competitive a availability directly in develop¬ exporting coun¬ Tne project using its equipment. a 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 a 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 of most improvement in Europe's nomic position has affected this at 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, in 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 in us I capital our available for lending. was Bank offering of the European Broches, a senior Bank's staff; one and Singapore, for of took and of in by Mr. member time whole I to Nigeria, — Kingdom, program up one the base some 1951, in first to organized dur¬ were steps our in missions and in 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. of 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 on in repayable increasing balance of payments. maturi¬ medium-term and while the long of 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 J European members. our Bank's The same' | One — and — in lion. shows loans more of sition was had sales from portfolio' has been able to participations by pri-^ we amounting to Our Annual the outstand¬ an 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 We direct vate ly: At year. dismem¬ sometimes suppliers' offered, are loan to be coming seems The Netherlands is so time, the figures quick¬ the being barter ing example of the extent of the improvement in the economic po¬ was which the Bank on of in which manner credits the advance as a or, even, The economic period of stagnation of retrogression. end may The under control. to 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 we and If private still hesitant about un¬ are sustained of dertaking long-term commitments, The dollar problem, if not bered. growing institu-? a statistics is arrangements by private loan capital is deployed internationally. . agreements these activi¬ ago, increasing. are ment-financed mentioned I as 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 on vehicle for a Thursday, September 30, 1954 ... at 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 is 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 to the danger, time of "countries lateral doubt saying pressure would credit linked for that, in embark on arrangements with a exports, bi¬ no deals relating to the purchase and sa^ of goods; and as soon as certain began to adopt this Continued countries course on others page 43 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 in ciimTtbn with uranium not than $103 million annually. more been asked to speak on the outlook for uranium mining— an industry which only six war really began Cites prospects of expand¬ uranium was years i m to material. This followed at major previous the plants re¬ had It sources. quirement for and was to was bring mines to also these from new to find necessary into and ex¬ time come of 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 of source the ed n 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 of one New Recovery Process Developed and mining standpoint Si 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 , 15 (1275) Australia new to the list added was uranium of processes Our principal hope for domestic uranium undertake to producing countries vanadium production longer no 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 of the rich Shinkolobwe mine in the dorado normally Jesse C. Johnson El¬ the shore in 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<* of source mill greatly to establish the over international manufacture failed. had weapons 1946 control of atomic Communist Russia's postwar policy of aggres¬ sion becoming was dent. Russia labor into evi¬ clearly pouring was the slave mines uranium of Czechoslovakia and East Germany and working feverishly on atomic plants far behind the Iron was Curtain. tinues the we still had the atomic on a monop¬ bomb, it was not for long—the time was shorter thaik estimated by most experts. Atomic weapons suddenly had be¬ come dominant a military action strength was called factor and in our aggressive for to hold our to Increase production when we to 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 in 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 of 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 in 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 of th^d ^ J®vide 'I™ orZt a 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 I , ^■'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 a Lake Atha- mill on began new This announcement is not production early in 1953. Private industry is activelv number the with ar^a a of 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 of promises about ar^a. Sudbury. to are in 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 be source. uranium deposits in Company (a Minnesota corporation) in 1 North America. Bland; firtanGS to 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. an The ex¬ one or 1, 1954 i Price 102.261% and accrued interest two 1,000-ton-a-day class. Just as Canada and the United States worked; closely on the war¬ time atomic bomb project, thev have cooperated ing uranium In the of fullv in 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 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 In for in are Fldorado chase suc¬ but limited expansion These programs have The Government-owned off. world's 1954. for on velopment. sources making the development of the outbreak of the and the steady de¬ world peace. In 1952 to Free mine J.ake had incentives re¬ in 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 90 Uranium lead- a Mine there be, Canada's Theto be World. I lead. Drive to 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 in important and Before the end of 1947 prospects for a leistirely develooment of a faded. The developments energy program. had other Congo. most in 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 on 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 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 a 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. a 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 as paore^than been a token payment, and by all students of the com¬ pany's affairs. In its present status it is that inconceivable ings assets in show it other rumor return. has been that While develop. dence of for such ests been support important any evi- no has Pearson elected Vice-President of John R. Boland & Co., Inc., 30 Broad St., may efforts the crowned be can not he is go- or middle no those For certain taken There to follow, course who of this ture the foresee present this here in 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 to small a retailer invest- ground, common on more their further to interests than any other common the of more and ^flexible an practical rules of procedures introduced during recent years. The so-called Rooth Plan for ment in the Public Relations Pro- done Convertibility! For at not he has enough faith in future t there are as a — This Is Not the Time definite indication is whether the very or dealer a anthracite sive attendance besides gatherings industry stoker n 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 to under a just rights fu- great fuel, there are has of 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 is that made move, speculative inter¬ mindful of the suc¬ a are there O. William a proxy fight for control of the road is 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 a financial no in 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 as 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 so _ aa r >■« u ■ Murphy hi °*Pear#OB New York City. Mr. Pearson for many years with was the Equitable amount short of 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 is it achieve difficult more compensating to Kenneth G. J. H. Goddard & Co. the business. Despite extensive, although belated, dieselization of lars spent on in 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 a same had as was The was in 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 of heavy level $3.39 a earnings share. sensitive the to suffered has sub¬ stantially from the business read¬ of justment months. seven off. the Gross past 12 revenues or for months through July 19.1% from a 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 S. f® ^ Street, member, of Boston Stock Exchanges. Mr. May in with was Stubbs Whiting, and Arthur Perry was the past Weeks & officer of an & 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 of suebut the anthracite vard an 9^?" which ^ most essential to the is trade is selection the of a The producer with viewpoint who will have faith in both your and his future will most certainly be one good suoolier. a farsighted . , use of 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 to 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 as remain are those which overcome. without wishing to must the world conceived as have been and as this in the human intellect, work themselves out in the hard fairly facile a 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- is he school of ence. Even the tory of they may has been, has gine practical experi¬ Rolls Royce en¬ be tested to for thou¬ sands of miles on the bench. not be must We inspired, considerations. social ignore the ebb too, by must We and flow of political tides or the waywardness and fallibility of human nature. We must respond to the funda¬ mental and needs of 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 to such tising campaigns, radio and teleThis producer should be months the conditions for and the the dealer in transitional provisions of the tional and in local scope. should advertise in suitable He trade vision. one who will assist study during the next several possibility of a move 1 a we 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 on extensive an 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 of producer who four all of his **e was previously with Dean Witpoints higher than in the like ter & Co. ~ - " •*: v- - , having a 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- to me , 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 is the 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 G. 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 to a annually. in that interval year — the Boston (^appointing. For the eight & years Mass. Pennsyl- years, dol¬ of -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 11 and improve- property ments such sales, assistance sent 90% of the man to the to The Financial Chronicle) (Special hundreds * - hv f/wiav flexible far they have only been used Davs Colby With -i and generous - 4.♦ — a 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 „ , . p 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) to 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. of 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 to lay down for detail the as to access Fund pre- its on re- be helpful. It would the to the of to proposes Fund with positive steps take convertibility. would ment in moving Such it local to program a 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 of de- velopments in world and trade payments which give to reason be- lieve that con- vertibility i It objective. for us poses the task of W. R. Burgess s realizable a as- suring that the is Fund abroad. better This markets is and Throughout discussions our convertibility of should all keep importance of having in mind the we the broadest possible participation in a major move to This the is convertibility-, simply a question of not of success general such beneficial move a effects its or for the free-world community as a whole, It also involves the direct advanr tages which will to accrue country. These advantages great for the smaller as each just are under- or 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 on pay- and not — least vanced |?me °f the relatively adEuropean countries — comnanied bv trade and by of restrictions elimination hv __H ,a lr dismantling a discriminatory on 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 as our economic strength, character of the Fund's In ble are well as as 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 of 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 to 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 to It 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 a 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 of ternational d. by Dr. Burgess at the rfi»Annual Report of the InMonetary Fund, Washington, the cn Sept. 25,1954. countries extend moving They of of all will be to us the in bility of the Fund's be than the Fund to ect tinuous review problems of A of system such and important in¬ an international payments. Another point we should be thinking about relates to Articles a Article XIV was member designed countries are mos^ of the safeguarded to fortunate that the they so 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 of 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 In Article VIII substance, vides that member no restrictions pose ternational be may approved the by as Fund; 150,000 Shares no country may engage discriminatory currency ar¬ multiple or practices except article teria as INC. in¬ except also, that in PLASTICS, im¬ current on 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 to cumstances The Al as 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 jn 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 to confi- member fund, payments. no matter how substitute for sound No large, mone- tary, exchange and trade policies, The primary function of the resources of the Fund in support of convertibility the public will that be to assure resources are If Is. a. gratifying tribute to the convictions of the financial leadworked sound temporary adverse shifts in which arise from time to i- L, the here assembled ers available to offset those speculative movements of funds and trade m UNDERWRITER ? of so member ment who have many , , . countries to progress IMlfE'OTI&IA |J|t|^jt9lAL AAIII1 lilwtwl IlilS UUIlla send me offering circular on 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 I — 80 Wall St., New York 5, N. Y. % of reduce inflation. , APUPnil — — M effectively in . halt. meet to us 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. j on power that ft that/ an which will have build difficult to money. "These believers in centralization fail to ill. most to 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 is with advocates ing their multi¬ for good or quick look at this matter. a 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 or these serve effective center for the we with Federal money is not directly or concerned with the economic Center for Review for ever as an Govern¬ can individual who wants so quickly and effectively to genuine cases of need. a generous mo¬ that adequate funds may be com¬ The Fund believe, us "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. is should have to J11— A with the door open A to request or eliminate competition by provid¬ ing steam-electric power as well. "Only thus, these zealots would not need such may arrangements. those duce to develop¬ power provide all hydro¬ electric power it should likewise be desir¬ may Fund convertibility rangements Liberal Fund Resources Available which This is true, in Fund's role in support of move nomic relations between ourselves is 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 on required period - that resources. we in large day bear heavily upon us the imperative necessity of building stronger eco- economy it 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 in and the free world. assur¬ fluence speculative channels, such as real or into hiding abroad. It recently most i "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 a 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 of capacity is convertibil- anc*. firmer financial a in would program prepared to play an effective role which may be taken countries or groups discrimination strictions ments arrangements. co- a to Broad Participation Urged The Ret is p o r route better feeling." u- 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 a 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 ' 1 country seeking assistance ■♦should their on _ Sound Program a 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 17 & State. 18 (1278) The Commercial and Financial Chronicle i i i? the past eight * ' * v in : that : years. 1927; * - By WALLACE STREETE Traders ( looked like 10-for-one year, 1%-for-one in Detroit Bond Club in Elects New Officers 1935; na- a in 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 us to 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 ... if N'orns Hitchman, Kenower, Mac- Arthur & Co., President of The as were . , , , . , * > * * ,v 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 T. Victor P. Dhooge * GM General Strongest Motors tail the was can strongest acting pivotal, add¬ the of end the month, how', the process be reversed in! days just ahead? Large Humble the 90 ured did quite rofich never "exchange value" figthe on basis of 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 to for ' stock market 1 movements. Pacific Mills half dozen points up a basis of ran the on . 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 it * * , to easy / '.. right step along. the decision to double its out¬ standing stock represented a 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 an offer is neither buy to is made an offer to sell nor a 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 js 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, to range and W its in the bonds evidence as a har- many that the whole is not going industrial [The views of ance do not coincide Chronicle. in any of the presented Jtlnghouse "™ "< The GEORGE F. BREEN _ 115 a Scott Underwriter Broadway * o New York, N. Y. B A relay * * - j Paper: bow this week. new made its The two-for- been formed with Theral R." 7-3860 run , L approacn tn^ DU mark. Therein lies a 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 in North Dakota.. It 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 or include Eau Dakota Claire in and La Crosse and Wisconsin. LAUDERDALE, name of evard, drew B. Knox and Co. Carl E. Z. A. A. and Company, 207 East Broward Boul¬ the in Fla.—The Rnox-Hinds has and is 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; - n be Now Andrew B. Knox Co. ' underwriters early months 6f will as .SALT LAKE-CITY, Utah—Al- jie(j 1954 and bonds sinking fund purposes, begin¬ ning Dec. 1, 1955 at 102.22% and FT. 1 ! the con¬ for firm eauinment section equipmeni section. the South at are in of Fargo arid Minot, Narth Dakota, Sioux Falls, necessarily They used bid 1 . this with those !' sale 1955. or expressed be the struction program of the company and its subsidiaries for the bal¬ with Circular upon request trical iricai will from their on . . 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, / It I Tues- on / were at declines 349 advances versus day. . Charles are - Cummings, First of Michigan of , 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¬ to . 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 An fWe occasional see chanical clever that devices are in¬ so must have better profits if we of living, expanding an two and economy strong a for exist company executive points out no econ¬ diet of losses and no nation can grow great on a is concerns beset by hazards and booby-traps. Urges market research and cites research methods and tices of we of and profits if higher standards have to are living, Every considerable periods at more than 100% of theoretical capacity. Our co m of p a a n steel and sales y to great, provid- ways stable econ¬ And a who¬ heard of it backed In I C. M. Wiuie ties a be about most I effective if I talk and not am experience in Republic. going to do with com¬ plete frankness. am able Now edge I have that personal knowl¬ a now future still depresses me of 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. to Doctors that say frequently mark of ance is true To " with me I as live. better profits through selling sounds simple. All department. But it's not as easy so enormously city Better great selling, deal than sales argument and door bells and selling has cut a its friends, is my more a a 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¬ up prompt delivery; if the department doesn't pur¬ chasing the best raw possible department product up buy materials at the best prices; if the doesn't to or research keep ahead the of com¬ petition; and finally, if the duction to pro¬ department doesn't build in the product and fails quality give the customer the kind service then you he is improved and sales argu¬ increased your of entitled, door ringing are not going to get very far. That is tence and talk which your ments bell to a long, complicated but but in this a pression situation. It appears that all business, the m total sum of 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 Be This is a common some degree, in a great many businesses, particularly those en¬ in gaged the goods. So, in basing our production I'm been not my go¬ ing to. to new thinking ally is the tions The this: can, We and thing—but to posi¬ since we to can we Can con¬ or these can products be sold at a about them.* about a out some new qualification. products can generate be ago, the and which very before—not after—capital made for tools and are A recent 81% survey ference 23, Board, New York, 1954. N. Y., Con¬ Sept. and of allies. our repre¬ That steel is tance, outlets One of rials being done, private capital, much of it reinvested profits. Yes, without better profits to reinvest in material sources, raw we position (3) Can is do we If the at so negative, normal a profit? of these three have no further to any answer we 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 it At the must constantly be the lookout for developments on in other fields which may supple¬ ment its established markets. In 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 a plant encountering anything to surprise him. That is no longer true. Republic's pioneering in top without of 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 a 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 of is closer come New a Each Operating, of our fabricating sions also has its its of a 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 of uses. seem Through in 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 in with steel. is that they Few of these pro¬ us posals stand up under careful an¬ alysis. The occasional one that appears to have merit becomes the subject of a 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 of ential date rate organization of its own. Some between ventional do these and as a electric and con¬ open-hearth steels. We matter scores of of other things course to keep so better that we can back up products. product or our As one of can be All into an cor¬ the continued on 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 share Copies of the Prospectus as are n e newcomer, manufacturers no that a matter how potent the by 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 or 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 at 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 to Products of all were just are which sit key represen¬ on Legal. myself. develop¬ well result in may perhaps Charge of Research Development. One of his ac¬ and of consumers we Treasury, of do not have them for enormous is 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 It ore. President in development for atomic fission to industrial today at thirty million dollars. be basic metals. While that mittee in iron on 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 to such it fabricating business. age —in stood we con¬ all the day get would if our believe shade below their all-time peak. It is in these manufacturing lines reason. vantage furnace We indeed who problems which confront the Titanium illustrates another type of our product 10% without any physical change in dimensions. Every ten furnaces new a 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 of some friends we 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 a aluminum is not quite respectable for a steel company to promote a product not lurgy in Mexico. As selling This still shocks as 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. of method. industry— servative Wasteful We 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¬ we 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 of 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, I as 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 we 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 in demonstrate we 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 a the failures Steel Industry Situation actu¬ concept is simply within reason, find means is produced? that seems competitive sales ditions. a the many younger responsibility faced ways so have advanced of last to new who men on It has new. long it Qld-timers and use that to make it? hard our company we are current of out of volume one Sold? situation, in , grief reason lines. In considering products brought to our attention we try first to get the answers to so 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. as 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 we in Thirties, abiding earn better have we productive capacities have in¬ creased that an long as look. new bal¬ not, I have or events the Whether lives. our past for us horror of loss operation stay is the no • which in the foresee¬ or which comparable our a implying that situation a given our This I in one during the terrible Thir¬ being brought out and are dusted off making this talk I feel that can to lush a principles and by which we fought to practices industry? prosperous market survive was by abrupt change from almost-forgotten nation growing great unless brains irritating we 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 to strained o e v e r an heard ing toward was We expanding economy, strong nation. a 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¬ more selling only truism a 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 ' is the by the side with the dominant supply of war metal. In sented There of 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 a were triguing that it comes as a shock to find, after market investigation, By CHARLES M. WHITE* or times. me¬ President, Republic Steel Corporation standards abreast 19 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 50 i 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 a In 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 of Administration, of Business University of Minnesota sisted Congressional pressure for re- Korea in HELLER* By WALTER W. quick the 1954; in 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.) of summer tw0 weeks and 2,443 pages later. the verted many a in rporate co profits, before tax, into in¬ by the reve(five months); 1941 of who this early hower is month in 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 a the in 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 in 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 31 carved was reductions of 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 , , , u ^ • i innumer- • u technical business and vestment previous for concessions and tax process> ular those as have at' least private in any spectac¬ so taxation, may investment have been private bank financing Commodity Credit Corporation past year, of loans removed $1 billion from the T .,v.« 1 Federal tion J I TT ,.1 «i . i of facilities power the for Commission Energy and ■private development oft the Snake River shift would millions of hundreds from dollars of fi- tax mancing to private loan financing. Much of the President's $50 billion highway would development financed be private investors by citizens as than T . In . if 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 of the If House. the House accepts it, it is passed to along the Senate Finance Committee, sa- , rpnpntpH repeated thp in 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 to signature of the or spawns ations headlines and sPeculat ons its $70 of bilUon ,? . ing for nearly wth ler at first of of business total with in House the Code. Revenue of It has often been said that reduction two months. dozens upon lubricant the is The bill, tax revision and reform. it as left Committee's the of — _ hands, in advance of the legislative year in question 'was an unusual but very practical step. * Chairman Reed rightly foresaw that weeks and weeks of open hearings at the beginning to of 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- an The Committee hear¬ ings also fitted in well with the atmosphere of Executive - Con¬ gressional relations on tax matters -an atmosphere characterized k « 4. • -j.- x- j Bankers Aug., 30-31, Will be lectures a emerged from the corn-" accompanied by a 600-page bill mittee report, and was forwarded to amendments are $4 billion in the peak year of its operation and receding later to around $2 a billion Accompanying the bill as pre¬ sented to the House of Represent¬ atives 444 was report of Committee a 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 of the of 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 in tax tax heavy its benefits penents on on credit and controversy. of 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. In and debate chief or "gag rule," and Senate accepts no lively the Needless to say, the Senate floor. the Congressional staff estimates, it , ? of intricate during political maneu¬ Senators 92 which actually voted for one form of ex¬ emption increase or another. In other words, 92 Senators can "o back to 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¬ a 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,,,, I °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 of to $4 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 in in 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 to 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 at 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 of 875-page bill rearrang¬ an 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 to 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 an 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 fa other . on 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 as rather taxpayer's Federal program weeks, v 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. it mid-January, in 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 no 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 in and is 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 as It 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 a message or jn the huge tax in history, measure particularly is the tax 0n ancj ^e short of it in- than nnrtirnlarlv ii 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 • i by 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 of morning Ways on business of 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 in in "This by con- up business and turners subsequent issue. this suggest that Congress is incapable of speedy action on tax- structure against encroachment by various special reliefs and sub- whole on a "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 f? President signed later. Comparison (C) _ .. f ' _ jav< ot L. &• a a British-Canadian Systems: In Volume 180 Number 5264 The Commercial and .. Financial Chronicle (1281) looking at students of the and tax our legislative imperfections, its and process more finance some government legislative that often philosophical lines. It grants our is system less and Administration , cumber- more 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 In separation lative Canadian with contrast of presidential Canadian process tne on under powers the system, system fuses executive and British- the legis- branches b/ forming a government—that is, the prime minister and his cabinet of checKs and is it process, embraced rise tax that we 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 is responsible for legislation pre- and a ' portunity from passing for the executive lature, from the to legis¬ etc. billion parliament. etary or quick (2) _ action, deliver can expire _ the cabinet r u . * * ' 0'' / e Central on. excise Approximately of enacted ; 1951 1. At April were the ; E. F. Hutton ■;■ ■ ^ needed more in such was- areas (3) Coherence—a balanced fully in system, a program the by 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- so > often by 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 of U. "y^s, onVa S./system but" . A basis. , „ . , before same tively. lighter classes come excises which on 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 in needs 1954 is * 1950 and excise speedy As of Con- response tax cited.' As economic again in the reduction of coherence to through executive-legislative operation, the 1950 revenue and the creases be 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 to the separately are liquor. tobacco> and aut6mobiles paid by the manufacturer and; are tend fo b/more hidden taxpayers''view. from the Clearly, in the %&&&£ excS f *v passage by 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 to about further no financing will probably be necessary July 6, 1954 in amounts which it is estimated ■ shares outstanding now in ' ■... Year would hardly billion of months war in A not tax selfish interests have .enacted increases in $15 the 18 following the outbreak of Korea. second depend line of 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, it are of can un- offsetting do at its proceeds an 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__»—- as 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 of is a - dividend income on the - considering current and future earnings, analysts like to In know its plants, or (2) £ investment. "interest the amounUof the as on construction credit," which The amount of this item has been noncash bookkeeping item. estimated follows: 1955-$300,000 1954-$983,000 ,s 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 no 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 to (following '• Senate permitted two days of R hearings and then moved the bill ltoacn • Depreciation, or 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 of 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. in » will increase St., in-./corporations, upper than an. effectiveness of the the , were, litical wisdom in the LaSalle to 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 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. more 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 i taken The amosements, cosmetics, communi- help stabilbecomes more to ize ' be common ible policy to 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. as 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 of 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 to increased effective in- rural, 22% Power is the "deficit" company, construction of two units at the one excise tax in the USO.4 - and and miscellaneous. the also up merger with rep- Company. of stations, power cent firm own and 1% from steam heating. .'pooled their generating facilities—each plant of 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' r 39% were industrial, electric utilities became completely interconnected in t 9 ' 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 a 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 o in them the on 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 ^ a to buck House to another, one William w. 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- no 1 < population a (electricity and gas), East St. Louis (gas only), six others with over 25,000, and seven with populations of between includes) iormation oi ' ■ , to 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 V, m>> fh for the British-Canadian systems? (1) Responsibility—there's discussion... „ Company -.'Jlinois Power supplies electricity T tail. tern, what advantages staff Brothers, „ V. has emergencies* of Illinois Power a 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- S meet use Having liamentary debate and action, but are rarely modified except in deU to the tunately. fall outside the this the program is presented the (c) . E. 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. to 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 more lec¬ sec¬ in Street' New York Clty' members of the New York st°ck Exchange, investment bankers, announced yesterday that im- to The published total selfish interest be separated from the wheat of legitimate program once proposed be 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. is 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-, ^ more part as 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 21 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 Blerkom & Company with offices in the Beason Building, to engage in a 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. 22 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 If 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 of the banks chartered 11 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 on of of attraction have for All ments. in Canada's bank shares 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 more local markets and their transactions reported in the New York papers. for U. 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 or of longer sustained a fine, established, well con¬ struction, there's Canada Cement, Gypsum Lime and Alabastine Co. and Foundation Co. Ltd. There In 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¬ of some big industry and get¬ away continuously since 1900. Two successful There may be car pro¬ panies running bjack Ford in a 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 as Industrial Acceptance Corp. Ltd., Traders Finance Canadian Assistance Corp., — For Brokers and Dealers BONDS STOCKS Canadian W. C. & Affiliate Pitfield Through nections Company, W. our C. private wire con¬ with offices coast Limited of 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, on are in constant Our associates, Hugh Mackay & Company, are members of all Halifax the Montreal and Toronto Stock we touch with Canadian markets. Montreal Stock orders executed Canada. Stock Exchanges in Moncton Exchanges, or net New York markets quoted on request. Saint John PRIVATE WINNIPEG, WIRES CALGARY, BELL SYSTEM TO TORONTO, VANCOUVER, TELETYPE provided quick¬ ly to American Brokers and Toronto Dealers and Winnipeg MONTREAL, AND NY 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 40 Philadelphia Telephone London, Eng. Calgary EXCHANGE Canadian Affiliate — Ottawa ( PLACE, NEW VS^Hitehall Member YORK 5 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 I 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 like 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 a with considerable dividend enterprises. S., but 21 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¬ as 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 a 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 more 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 is 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 or 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 in 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 a 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. to come big factor in of sort And, of there's Noranda, course, metals. Mclntyre Porcupine, investment trust, has lot a 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 in The two countries no doubt will the Arctic jectives it is 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 of relations with Russia. the important factor influencing of events north of the course 60th parallel is the growing reali¬ zation in is Canada not the 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 of Eskimo are the in agement of Lakes Caribou life and however, is only large ning of it this as was at of Alaska caribou These ter, even of Greenland, are just few of the major items in the a bright Canadian economic We in the general vicinity that ice-capped resource, Service panorama. the in of with the seriously three natives and in the project both the Canadian fox, along with dories the is reported good start. a the basis as of 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 a 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 we larger below of Canadian companies traded on the Ex¬ to 126 years. great' assurance •horth of the St. many a seeking are not are for now, another ary north of the St. unlikely, should we movement in this country the New Deal induced seem of the 3 r 55 Financial institutions There 34 Utilities Lawrence River have or a 29 Paper companies an and many It A complimentary copy of our Month¬ inflation¬ ly Review, giving the essential trad¬ ing Canadian be to a dollar securities data on listed issues, philosophy of the "baloney dollar," the more than will be sent to 1,000 you on request. by heavy deficit spending, that Canada in others. t 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 96 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 , a 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 of than any other two stock This record should offer those to number in Canada. changes that have paid consecutive cash dividends from 5 Toronto Stock The the tabulations : . Continued on page 24 and bear, the Continued andi 1950 creatures forgot to mention life insurance companies. There to region mainland beaver of mammal Wildlife arctic such white national 1949 to a possible source of experienced fisherman sent islands, valuable 1948, try as furry end a more to have gotten off to The numerous begin¬ generation related to the St. Lawrence Seaway. as to game-eating Eskimos little a An area third a 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 as 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, a area. The teach Reindeer chief Six entary life. in region. The present caribou as the of 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 of serious setback a the shipwreck. a to the supply and their families lost their lives and Manitoba. mate and when educate the River, and, of over a 1938 1944 in part basca, Beaver Lodge, Marion River, and Blind For in 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 more century, it should be recalled, whales have been hunted in arctic waters, not only in Ber¬ railway, the uranium outlook at Atha¬ as a to themselves Indians, or have been natives domestic along the Anderson River further East caribou main a 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 up authorities couraging mid-Winter. generally government serves. time to 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 3 tion and Pole * page Canada's Plans for Its An many from 23 largest market for industrial stocks in Canada. ./-<+ 24 0 24 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 as the on living like natives, with the ex¬ change necessary to buy the ar¬ ticles of civilization. serious a attempt at con¬ On the other hand, temperature quite be 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, In of 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¬ at 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, on farms. nothern To help free the natives from for dependence upon furs such money as they require, the government complete gave grant a a to few the years ago Canadian Handicraft Guild to encourage the Eskimo spare ivory to utilize of 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 in during the warm months, in both the Mac¬ Valley and the Yu¬ temperatures the In summer to 85 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. It can be as cold is vari¬ in winter south 95 of Slave Lake, degrees at Dawson City. perhaps all Great in the the greatest North is and But surprise of that, while companies definitely deserve consideration. With land a 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 a that could valley, as tree-line, the subsoil is manently frozen. While this to appear in the affect soil. an 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 be must the tundra north of on the private enter¬ resources there a popu¬ political and a 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 23 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 23 ... 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 IN opened experimental an farm substation at Pine CANADA : attempts to not grow •< Creek, 100 / only secutive Years Cash field k but garden vegetables, small fruits, flowers and livestock. ' Department of Mines Resources joined forces Department 1943 ^HAUW" to of look possibilities Territories with view to if the results be favorable. by an were Aluminium of revealed thousands - good alluvial Laird, Slave and zie Rivers. soils along upper Another Operates 507 Place D'Armes that up employing crude 2.00 621/4 3.2 11 0.40 7.00 5.7 14 0.15 4.75 3.2 0.50 13.50 3.7 10 0.80 91/4 6.5 17 Corp., Ltd._ oil line pipe 1.25 28% 4.4 in development in Anglo-Huronian Ltd Holding & f of operating interested the in 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 it was * Montreal 5.4 .Alberta at Yellowknife also found by a7% 15 Ltd. Anglo-Canadian Oil Co., Ltd. , set 0.40 shoes .Colombia, S. A. exis¬ acres 1954 — chain Andian National found to the of 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 16 distributes through en¬ a 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 in 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 on page 25 3% Add Asked. a translate into to 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 of Canada Company Limite Toronto Montreal • Stock Exchange Ottawa • Winnipeg j . ■ 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 v BANK OF MONTREAL 126 1.40 ii ■ of 3.1 45»4 could Operates 602 branches and agen¬ cies • advertisement on Operates branches 415 offices throughout See Bank's BANK OF & 122 1.80 3.9 45:4 sub- on 98 1.70 b46i/2 3.7 Canada See Bank's advertisement on to The North ' 73 1.20 31% Barber-Ellis of Canada, Ltd._ 3.20 24 parallel t north Beatty Bros. Ltd 0.55 15 6-y4 mote silk and 0.70 32 b8% is Telephone Co. of Canada 2.00 74 43 V2 . Most important telephone system in Ontario & Quebec 0.10 10 a4.00 2.5 been the Men's fur Brazilian Diverse 6.7 a6 0.40 fO.53 14 8% ' 6.4 1.00 18% 5.4 production, 46 0.70 243/4 2.8 the the refining in 4.9 41 2.00 39 largest privately owned telephone system in Canada Ontario gold a sula by rich be may have men throughout near reached are vessels, over the White men section for long as white men anywhere else in the as in summer sailing from Tuktuk Aklavik at the mouth of the Mackenzie River which has be¬ near important transfer point an river and ocean Catholic about to traffic. Church The sends a Hudson Bay each supplies carry to 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¬ on 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 in The 1945 Hydrographic Serv¬ located a new seven- foot channel in Green Island Rap¬ ids on the Mackenzie River a short distance east of Fort The son. built channel a open delta. The undertook 16-mile same dredge to keep in the Athabaska a before year the Simp¬ that government too, year, also maintenance this 0.03 15 1.50 2:0 - , easiest translate stock lor No into U. S. funds. dividends, way gerald constructed by private interests in 1931 as a portage around its serve missions along the of the mainland and islands northwest, section of the Canadian arctic. to Fort Smith, originallydanger¬ ous rapids As with the Slave River. on 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 of Yukon is length but third of it lies in Canada. in the southern numerous lakes part of the Yukon too often too much not the be difficult Mackenzie to drains an This is sea mainland Aklavik, area the mouth, is in far as Territory, however, the Canadian a from of Canada, and settlement splits, Royal - only the North Continued on Pole, di- page 26 !a true Government of Canadian Mounted Police boat made the first successful pas¬ etc. trading, sage Asked, it b Bid. from West to East, although forced to spend the Winter Continued on 26 page Canada was at Walker Bay approximately on Victoria Island, midway. It was •> External and Internal Issues M'Leod.Youmg.Weir & Company DEALERS IN MUNICIPAL GOVERNMENT, T * Telephone: EMpire 4-0161 FJrivate 276 St. James Street West King Street West Winnipeg London Kitchener Calgary Wire to Toronto Montreal, Canada Toronto, Canada Ottawa AND SECURITIES CORPORATION 50 Bought—Sold—Q uoted 1 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 ON ALL EXCHANGES CORPORATION 1 • 50 King Street West, Toronto, Canada—EMpire 4-0161 New York Philadelphia Boston Pittsburgh Cleveland itjs straight line about is general. However; in 1940-42 that a thajt at northeast "section—Labra4 was of approximately 700,000 squarf* miles or a fourth of the entirfe Canadian particularly that area during to "approach large part of the the it exchange months—the a highway from Fort Fitz¬ to eastern arctic in producer issue. day—especially summer it of Likewise, it has another schooner coast of the dor, the country around Hudson Bay, :?the arctic islands and the Broulan Reef Mines Ltd to around long time. lived North. Telephone Second Add 3% very To Co. "Ord" t Inactive a very Columbia t Adjusted cre¬ more ican continent. distribution * River route notes, bonds, revenue Petroleum v" 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 a arctic islands off the Beaufort Sea, the Amundsen Gulf "and eastwards only have 20 bank of 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 21 : re¬ Actually, the inaccessibility imaginary. For any¬ not difficult to realize that Quebec gold producer so 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. 1 ex¬ stretches narrow has many Canada to The summer parallel, years ago boat made Halifax around fur schooner in country Eastern 50th Atlantic Sea, to tive 8.2 rayon purposes the the Arctic equipment, etc. threads for all Bell along " • Belding-Corticelli Ltd the in and of cept perhaps for 8.1 stable household why Western Canada north of the 55th Stationery & printers' supplies & reasob A 3.7 Operates 247 branches in Canada Makes nylon, Only Seems Remote Nationale pumps, Land J '• equipment, 1 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 on 1944—only 10 trip along—throughout the section. 27. page TORONTO it 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 advertisement 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 a like country ' gold that in feeding. the Aunor Gold Mines Ltd Ontario in lawns — But 17 the distance of around 1,700 miles but June 30, 1954 Canadian $ * Northern Territories on Paymts. to Large wholesale & retail business in inland Athabasca and Slave Rivers, pro¬ vide an inland waterway for a Approx. % Yield Extras for — of an 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 24 page ates For Investment No. Con¬ from 23 Chicaco San Francisco 26 The Commercial and Financial Chronicle... (1286) Continued from Continued 25 page jrom Canada Canada's Plans 25 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 to lines would it these the to soon be not of one see extended country Makes nected the in Skagway in Alaska seacoast with — be interested. In 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 to a Seven shore of a the St. Canada parallel completed. the on north vast already Offices—Winnipeg, Manitoba one way the run to only Two Moosonee and the to someday, a and for iron a One 'f* 'fe * u*s 1.00 19% 5.2 0.10 a3.0Q 3.3 15 2.90 10 1.20 21% 5.5 3.00 a97% 3.1 15 0.65 8% 7.9 Sugar Co., Ltd cake wholesaler & alOO 2.9 forgings, hardware, etc. Foundries, Ltd._ Life Assur. of the Co largest Canadian com¬ panies underwriting life, accident and sickness insurance Canada Machinery other, be Sched¬ Canada Malting Co., Ltd Malt for 27 3.00 « 60 5.0 brewing & distilling Canada Northern Power Corp., Ltd. 26 mining 20 line 12 fO.25 1.00 3.00 87 1.20 38 3.2 10 1.25 26% 4.7 27 2.50 34 7.4 4.1 71 3.7 23J 1.1 Mortgage first mortgage security, on debentures, accepts deposits Canada Steamship Freight other 36% v prods. Corp issues 4.8 Quebec packinghouse Canada Permanent Lends 2.65 16 of 1.50 30 Northern Canada Packers Ltd. "B" Full bl2% important serves in area 0.60 99 Through subs, CNR main being the industries is 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 11 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. 'K & 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 12 12 linen of 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 of 13 luii-fashioned variety Calgary & laid from of the 50th construction from new 6.6 5 products Furnaces, new been Lake. Lynn north also, 1857 Yukon, Manitoba, North of the 55th parallel, 177 miles of 22% 0.40 on — 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 at 18 24 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 42 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, in 1954 28 18 Burlington Steel Railroads 30, Canadian $ * Asphalt roofing, flooring and in¬ Steel New and Lines, Ltd. passenger vessels: interests diverse include hotels Canada Vinegars Ltd a 16 fi.3 > Vinegar and apple products con- • •' '* . " !•* Vl' ' Continued & on page 27 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, on Ltd make bushings, and castings The services of this firm include complete brokerage facilities for Canadian * We maintain a direct private wire Add 3% to Asked. & S. funds, to Invite You ... Sons or to U. b Bid. To ask and offer into dividends, splits, etc. , We 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 us for information quotations on— secu¬ Canadian rities similar facilities in Canada via this wire. Stocks We execute orders on all Listed Stocks Dominick & *"' Dominick 1 R. A. Daly & Co. I Members Members of the New York Stock Exchange " 0 •wr Members of the Toronto Stock Exchange 44 KING ST. of The Toronto Stoc\ Exchange WEST, TORONTO, CANADA ■ EMPIRE 14 WALL STREET NEW YORK 5, NEW YORK on Paymts. to June 30, June 30, sulation it is from San as Francisco. Based tion 1954 — Building Products Ltd Quota- Private wires to 4-4441 Montreal and ?{ew Tor\ 1 0 Tolume 180 .Number 5364... The'Commercial and Financial Chronicle f Canada Continued A Wonderful Climate - For Investment Including Years Cash Canadian Cans Canners fruits, June 30, 1954 etc. ' Ltd.__ vegetables, 15 Fairbanks sales of of in 19 Chemicals "The" The 1.35 "v 19 y4 7.0 b24% v 4.1 for and-* allied Oil 25 12.00 a595 2.0 27 1.28 26 : 4.9 trust 28 1.20 29 52% 0.50 16 11 1.50^25%- dian 11 0.70 351% America- 16 §0.85 ns Knitting Co., Ltd.____ 10 1.00 1.4 Yarns and Silk, silk of ' fabrics & wool, alO ping co.—large 71 0.40 General bl0% Trust Chateau-Gai Wines Coast A and Wines 10 Ltd for co. 1.00 26 four 13 0.27 railroads for 4.30 6.3 West service region and implements Operates & the Arctic 0.70 13 1.00 7% 8.9 service machinery in 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 as Coppermine on as I, rue Also, there is air Whitehorse to between France and Canada is Lake and Richepance PARIS to in Alaska. On the of Hudson Bay, air- planes fly from Inlet Lake 0.50 -8ya a62% 1.20 27 % 0.80 a2iy2 1.50 29 18 141/8 0.70 10 2.00 5.00 al45 3.4 37 4.00 1 a88 29 7.0 26 from page 7.1 20 on 5.2 1.00 Continued 2.T 19 Ferguson East side 4.3 107 the (Territory of the Islands of St. Pierre and Miquelon) 2-4 22 on Branch at St. Pierre to 6.2 1.50 and Churchill and 4.5 18 elbows, Assoc— endowment of range policies Slave side • 55 Confederation Life Shawinlgan Falls Sherbrooke Financial operations In 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 a Trois-Rivieres Quebec 1 - Canada, are leave off. Great to both Aklavik and 14 MONTREAL all, the airlines continue the 7.7 British Collingwood Terminals, Ltd. life North contacts breweries Cockshutt Farm Equipt. Ltd. Wide of 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 20 Members Investment Dealers' Association of Canada rail¬ a way. 3.9 insurance Co 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 1 - 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, .j Yukon short, Cos., Ltd Automotive spectacular construction invasion of the continent products railway of 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 a Exchange Exchange ■ railroad Northward Electric invest, type ? in - - 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¬ on is very Pair- Canadian Industries Ltd. Can. Pac. 4.0 ^ Canada Management Petroleum - the Alu¬ by Canada. Canadian Gen. Invest. Ltd-_ Canadian cific Coast. 20 < Chicago manufacturing rights Kitimat at projects Canadian Gen. Elec. Co., Ltd. products Members Montreal Stock 8.1 Morse agent -for banks, Morse & Co. ing 24% 0.80- 17 Exclusive Stock Brokers 1954 stock rolling Co., Ltd Exclusive 2.00 10 L. G. BEAUBIEN & CO. — minum Co. of Canadd Canadian Celanese Ltd—____ Synthetic yarns and fabrics L". - 1954 Canadian $ * v. _, highway Canadian on 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 — 26 page Approx. Extras for secutive Divs. Paid from o-(1287); 27 Canada's Plans Cash Divs. No. Con¬ \ 81 and " ■ Consolidated Mining & Smelt¬ ing Co. of Can. Ltd Lead, zinc, silver, tilizers, etc. chemical fer¬ Consumers' Gas Co. of Toronto — T_ 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 on Rockies Canadian Distillers Corp.-Seagrams 18 A holding a complete co.—interests 1.70 29% 5.7 and here is the include * . whiskies of gins Dome and International Bank to help you , Ltd Mines Ontario , line Dominion ment gold 35 0.70 14.87 4.7 Discuss your producer and Anglo Invest¬ Ltd CorD.. 15 14.00 84 1.30 a240 5.8 Investment holding company DOMINION 184 branches England, and the • * * \ See Add U. in 3% translate to 36 y2 3.6 Can., on U. S. for Canadian into E£Sfd" U. S. — U. you funds. rate S. of ' '■ ' Add 3% to ' equipped to give authoritative information and expert ■'J , i r. . • -» # .451* of the many^ banking and frnancial problems and details guidance on credit, or connected with Trade. Continued ,'k.j . » International Bank General Offices: 44 King St. West, Toronto ft f * + Growth -"tit y ■*» «)■*-»■ on page -1 28 any In Jamaica: Kingston and 16 other branches. In Cuba: Havana and 6 other branches. In Puerto ■ exchange. funds. »J , an 29. page / § Adjusted translate A Partner in Canada's countries—The Bank of Nova Scotia is in fact into • Branches Outside Canada S. 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 •- 1 t (28 (1288) The Commercial and Financial Chronicle ning Wertheim Team Wins edged out team place from team the Carl second M. 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 t John u , won Trophy Tournament at Whippoorwill Club, near Armonk, ors with 75. N. ual Annual Charles Hayden Hemorial Y. The winning score was net of 316 for the four-man A total New of York 37 teams team. representing investment houses participated a net & with Charles donated 157. the Consisting of Herbert A. Gold- . Canada _ _ _ _ announce Wiikinson Robert Bach, Charles S. and that Warren George C. W. Mead Warner and T. W. Hawes, the win¬ Years Cash Bridges, to Mr. of the firm. Tucker was u i 1d i n g. •: T J> Canadian $ * 1954 — 17 3.8 22% 4.4 fO.64 13 1.00 28 0.80 alO 8.0 0.60 15 4.0 37 fl.425 40% 3.5 68 2.00 32% 6.2 13 0.60 24% 2.4 48 0.50 6% 8.0 structural kinds of all Ltd. ________ Wide previously with of variety machines and equipment Dominion X:/ Fabrics, Ltd. - ■ 195$?*. 1954 on June 30, Dominion Engineering Wks., Mr. Rauscher, Pierce & Co. - June 30, 30, Paymts. to 42 Co., Ltd.__ and cranes, tion Based 18 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 ' , of memorial ; t # , Cash P'vs. S. office> Hayden, r A Wonderful Climate have been added to their staff in Trophy partners a ? ^ Company, South Texas Build- perpetual as j; 1954 For Investment , ... _ 27, page - m in play from Thursday, September 30, San Antonio. Hayden by y 71. a the1 two-man led net of a the individ- „ SAN ANTONIO, Tex.—Dittmar 0 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 ... c Continued, I 11166 10 vftOIl , the low gross score hon- u „ of 318. score Ryan of Smith, Barney & Co. 26th net a A #1*1 1111111131 Of UUn Hull Knoades & ... _— « Towels, tapestries, draperies, etc. SgISSSSSSSSmSSSS&SSSEE Dominion Foundries Ltd. Steel & — Makes steel wide variety of 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 of 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 28 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 on in the Page 35. X ^ Equitable Life Insurance Co. 16 2.7 22 0.50 171/2 2.9 1.65 23% 6.9 §1.46 21% 6.7 22 3.75 89% 4.2 15 life of 24 27 line Wide 0.65 20 0.70 17 4.1 11 1.00 19V2 5.1 17 of Canada 1.20 24% 4.9 endowment & policies Nickel Falconbridge Mines, 1 Ltd. Nickel, copper, produces steel <" - cobalt; subsidiary castings Famous Players Canadian Steep Rock Iron Mines, Limited Corp., Ltd Largest operator theatres ture of in motion pic¬ Canada Fanny Farmer Candy Shops, Steep Rock Lake, Ontario Inc Operates large candy chain Ford Ltd., ggsaBgaaggggs / Co. Motor of Canada, "B" Automotive , Foundation manufacturer Co. Canada of Ltd Engineers and general contrac¬ tors Fraser Companies, Ltd.____— Wide Gairdner 320 % '/ Company Limited variety Gatineau / Power Hydro-electric * Add 3% to t Adjusted § Adjusted Complete facilities for investors in translate a Canadian securities. Private enquiries Canada to as lumber X ■'* Co energy in Eastern , into U. S. funds, translate for stock for into U. splits; .etc. dividends, Canadian U. — S. rate of 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. an you are interested in Canada . . you will want to be of our U. S. offices . , or our Head Office ' TO 2 millM Investment Dealers' Association of Canada on 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 to financing in on Gairdner, Son Gairdner S 3% : . invited. are Exchange Add funds, S. A Montreal Stock 0 - Canada Bay Street, Toronto, Canada by corporations and paper products Bank Montreal Kingston Quebec Hamilton Kitchener London Calgary Vancouver Edmonton . of OUUUHM Montreal Winnipeg New York Canada's First Bank Coast-to-Coast New York... 64 Wall Street an Francisco... 333 California Street Chicago: SpecialRepresentative's Office, Room 1802, 141 West Jackson Bird. Private wire system . . 600 Branches Across Canada http://fraser.stlouisfed.org/ i'i&Federal Reserve Bank of St. Louis 4 V 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 14 Based on Paymts. to June 30, 1954 1954 Canadian $ * — General Steel Wares Ltd Quota- 12 Mos. to Years Cash 1.00 refrigerators, of 10 Vz 9.5 etc. ■ 130 2.7 rubber Stores Ltd. Iron 30 _____ tribute subsidiaries textile which products 1.00 al0y2 9.5 of life, range Co._ accident 55 variety < of wire fiduciary gold 17 of Can.__ Specializes of in and be can broader out of scale the Far develop¬ a4.95 5.1 0.60 16 0.20 a3.20 simply take be sacks course, it air 13 1.40 171/4 0.80 a8y4 11 1.50 34 1.50 45 is of An entire min¬ site on Lynn Lake only originally constructed as a mili¬ tary highway by the U. S. Gov¬ in that now in ernment 1942 defense against War when the Ca¬ in this same way. way II as part Japan in of the World the Except frr strictly tne the North small local roads settlements of 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 to the surface all the Yukon-Alaskan bor¬ der, has been maintained by the Continued numer¬ on page 30 8.1 19 year, new The During the long cold months of the a rich probably most of the residents of NOrth of — all a 14 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. 21 - variety boxes, Underwriters and Distributors Members Montreal Stock The Toronto Stock etc. of paperboards, . Canadian HoUinger Consolidated Gold Mines, Ltd.: Ontario Greenshields & Co 3.3 of Wide , to shipment by and rivers. ing village, Sheridon, was moved, house-by-house, in this fashion sites is longest The by 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 to ous business Hayes Steel Products Ltd.__ of 0.25 26 -Harding Carpets Ltd ister" ore many Kiti- to 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 to their mail. Guaranty Trust Co. General think would the Greening (B.) Wire Co., Ltd. Wide 2.00 policies Wide C. by air today, ores Of health used aboard the planes. goods Great-West Life Assur. B. 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 as Quebec-Labrador. While gold is about the only metal most & Rubber Co. and far North as 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 39 0.24 15.75 20 4.00 46 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 on operates out ;< 4.3 deposit & I accounts Imperial Bank of Canada Operates 90 mortgage 234 1.50 411/8 3:6 53 1.50 a49i/2 0.85 32% Ottawa Sherbrooke Quebec Toronto 3.0 55 branches 79 2.6 through¬ Canada Imperial Life Assurance Co. of Canada Comprehensive range of life, dowment and term policies en¬ . Imperial Oil Ltd With subsidiaries integrated oil -* a Add 3% to comprises fully enterprise translate into U. S. Outstanding Brokerage Service in funds, Asked. Continued on page 30 We have maintained offices in and are members of all service to our enables us to demarcation line business, and If you are a new more it's the than an Consult international threshold of many years Canadian offices and principal markets supply the latest available information and us 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 IN 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 u 30 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 29 Canada Canada's Plans lot Its Co., 409 Fourteenth Street. jrom 29 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 U. the from between Dawson Creek and forth Yukon the Canadian Industrial & the of indication An growing the to Columbia British Mining Stocks the area by it son well as smelters in crease the size a Fort South road St. In Dawson. the year son seat of 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 D. C. E. D. SCOTT A. A. C. HUBBS FITZGERALD DONLEY in built Canol to ship World during Norman oil via Wells in Listed erations entire northwestern section of the (Limited) continent, and particularly at the close Continued Can¬ on 1.50 b28% 5.2 of Co. 38 line of 1.00 14% 6.8 11 2.38 21% 11.1 Journal" Ottawa home appli¬ Companies Which Have Paid Consecutive Second Table Starting on in the Page 35. Kerr-Addison Gold Mines 15 0.80 18.12 4.4 21 0.01 a0.37 2.7 10 1.00 20% 4.9 15 1.60 27% 5.8 37 0.10 5.20 1.9 16 0.24 3.60 6.7 28 0.80 15% 5.2 17 0.05 0.72 6.9 32 1.50 55% 2.7 16 Ltd. §1.21 Ontario gold producer with Gold Lake Mining Co., Ltd Ontario gold producer John War Ltd Labatt Lake Mackenzie of the 11 Ltd. investment Dividends From 5 to 10 Years Appear pipeline from the 4.1 parts and repairs General II type "The Complete ances, jointly by the Canadian and U. S. Governments 33% re¬ undertaken Project §1.38 of Kelvinator of Canada, Ltd.— Kirkland the 4.7 compa¬ Foundation Publishing Publishes Mountains. connection 21% II Corp. development Ottawa, Ltd brewing business of 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 G. 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 It 5.7 trust of Mayo and Mackenzie 41 Co., producer electrical Management in through the six to eight thousand foot-high in nies in 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¬ of has Territory al4 of Co. Ltd. highway in the Existence of the Yukon are 1.05 37 Nickel International Petroleum of spruce. stands merchantable in the 15-fold in¬ in the population of Daw¬ seen Creek itself and there 16 Holding & operating co.—Pri¬ mary operations at mines and Teslin Rivers, 5.7 Toronto, in Canada, Ltd along the Nisutlin and and Teslin to as In the vicinity of worked. Lake regions of farther North penetrated is crease northern 21 21 bakeries International being are 1.20 and Montreal Ottawa, end upper already which of 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 9% 0.475 Color and Inter-City Baking Co., Ltd. and 1954 43 Co. Ltd The bowl. dust S. June 30, — cigarettes and Imperial Varnish i Paymts. ta 1954 Canadian $ * on 14 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 Is 22 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 31 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. of "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 3% to § Adjusted Orders Executed all Canadian Exchanges at on Regular Commission a i Rates or translate into U. Canadian for into translate U. — U. S. S. funds. rate of exchange. Add 3% ta funds, S. 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 in our matters a Corporations offer oppor¬ sound and growing country. organization pertaining to are available to assist Canadian securities. Members American Toronto Stock Stock Montreal Exchange Stock Canadian Exchange Stock Exchange Exchange BANKERS BOND CORPORATION Looted 61 BROADWAY Telephone WHitehall NEW YORK 4-8974 Teletype Business Established 1912 6, N. Y NY 1-142 44 King Street kitchener Direct Private Wires to Toronto and Montreal West, Toronto, Canada london hamilton Members of The Investment Dealers' Association of Canada The Toronto Stock Exchange 1 [Volume 180 Number 5364...The Commercial• and Financial Chronicle Canada - Continued A Wonderful Climate • , from - / »>• • \ ^ < - 30 page of < (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 1954 Canadian $ * — al8% " 1.00 19 June 30, June 30, 5,3 Chocolate & other confection after nearly two million barrels of petroleum has been processed. A Clue to Government Construction Maclaren Power & Paper Co. a70 2.00 13 2.9 Holding co.-—newsprint, lumbering 1 & power interests 14 fll.025 4.6 22% Fully integrated lumber business; large exporter the southwest Northwest Ltd. 0.12 15 7.2 1.66 Ontario gold producer Policy Mackenzie corner of 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" of as a 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 10 $ picture theatres Mitchell (J. S.) & Co., Ltd.__ General supply house for 20 1.25 b35 3.6 10 1.20 b25% 4.7 many industries in Eastern Quebec Molson's Brewery, Ltd. "B"_ Montreal brewer Moore Corp., Ltd 21 28% 1.15 4.0 Business forms, advertising display products, etc. transportation of the fish caught McColl-Frontenac Oil Co. in Ltd. Oil 11 1.00 33% 3.0 production, refining & Mines, Porcupine Ltd. 38 3.00 62.00 4.8 14 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 to 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 $2 the than total annual a million—or Port from ores be derived and. a by-product at discovered The Radium result a community established was the o£ as and in 1933 deposits on the south shore production, started in a grand way. Claims were staked on extensive Ieacfc- more fishing zinc of Great Slave Lake in 1920 but decision a to as must whether still be reached they should be worked. Like the coal in the Yukorv^ coal at the mouth of the Macken¬ zie, near local Aklavik, serves Oil needs. Norman Wells on strictly discovered at 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 no 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 U. S. the been replaced, since valued 3.5 23 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, ... a and from 7.8 also into metals or 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 25 of Lake 18 56 Ltd and 9.5 accepts deposits Products than either Ontario 10% U. Canada at 1.00 etc. Neon railhead 13 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 U im the in 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 , at $2 million, which find sale at Chicago, Minne¬ and other points in the S. Midwest. Klondike in 1900 oil have 1905 Gold too, at Slave discovered was Yellowknife Lake on the and in first natural Mackenzie around dredging, employing large and expensive equipment, to extract the precious metal from tfie ground there. and the by Fort gas continues fan District, notably Providence and the region west of Hay River. De¬ posits of copper at Coppermineon the shore of 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 on page 32 •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 i 'and industry; 'new and Orders details of developments; facts figures economic on 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 more * Los Angeles ' ' s, Royal Securities Corporation Limited. 244 Office—Toronto New York * San Francisco 25 All Stock Exchanges connections: Montreal—Toronto the .Keep up-to-date on Canada. request on ST. JAMES STREET WEST, H Arbour MONTREAL 1 3121 Portland, Ore. than 659 Canadian Branches Mil 32 The Commercial and Financial Chronicle (1292) Continued We Maintain Active from 31 page Continued Canada Canada's Plans Trading Markets in from ... 31 page Thursday, September 30,1954 , A Wonderful Climate - For Investment For Its Northern Cash Divs. Bank of Montreal secutive Years Cash RIGHTS connaissance work in still Divs. Paid unex¬ Extras for Inquiries Invited and Nickel unmapped Mining sections. Hudson on Niagara Wire Weaving June important the Keewatin the decision Nickel A. E. Ames & Co. District of to 1954 Inlet tion expected there this to summer Established 1889 in Rankin of 25 west DIRECT SERVICE FAST WIRE entirely by between air the to Ontario Steel be to Rankin Co. TORONTO .. MONTREAL . Orders executed basis or . . . NEW YORK Accepts Inlet, is set Churchill, deposit of nickel in United States funds. tance off the to A ore stantiated American Stock Exchange and other leading Exchanges a Telephone DIghy 4-2525 Woolen, i as a 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 29 3.00 67 4.5 0.80 $ 3.00 42 & 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. of west Ontario Placer radioactive that it would be if com¬ mercial deposits of gold and other did not exist there, and metals 0.10 1.25 29 V2 4.2 17 1.55 34 V2 4.5 19 2.00 39y2 5.1 15 0.08 11 2.00 39 5.1 18 0.90 16 5.6 35 1.20 25 Yz 4.7 13 0.20 86 1.50 4614 3.2 26 , 19 22 - 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. A 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 ■ search 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¬ a previous mineralized NEW YORK 5 4.6 4.7 mortgages Products springs, Woolens & worsted Don Hudson WALL STREET 24 16 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, 1 the made Established 1865 1.10 y4 Industrial pipe & tubing served to & in Page-Hersey Tubes, Ltd of by 32 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 of survey tion and insurance stocks. 52 an up 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 on to and 0.70 Ontario Loan and Debenture is ore community, workers 0.02 flour, feed, and cereals channel a had new from 16 48 Mills Invests Nickel has it 4.8 Mines, Ltd.... tures; mond-drilling for nickel on a large government concession where 73.00 17 Gold Co of 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% 84 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 on Noranda Inlet rich in nickel, ore 1954 — 21 wire mesh cloth, weaving machinery, etc. in been 1954 Canadian $ * on 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 An 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 T Other Arctic, including Ungava Peninsula df Northern Quebec, have by How Can We I regions of the Canadian Eastern been the over 1 explored Iron thus been of ore low known abundance Help Tou? of of the exist east Dealing with firm with full facilities in Canadian, a American and tages. 26 I or overseas markets has many We have those facilities .. . memberships J on representatives in 73 cities. we offer can wide market and a supply in unlisted securities and primary ary of large requirements small, we'll welcome or are, no matter your large deposit of iron I that which of high discovered of and been and mica, have in Co. along on the the Coal of it difficult. I U nder writers — Brokers — Dealers Corporate, Municipal & Canddian Securities MEMBERS NEW YORK, LEADING STOCK AMERICAN, AND TORONTO COMMODITY AND OTHER 1 throughout use 1 ADELBAY BUILDING, TORONTO 1879'sASsf 1954 Bache&Co. -7 ) 75 YEARS ( is EXCHANGES will Tel: forests North, EMpire 8-4871 region & mm ^ Tel: Dlgby 4-3600 and, Oil Co., Oil production * Add a Ltd & development Asked. 3% 4 Inactive translate to issue. i - No into U. S. funds, exchange trading. Em LP -■ STO(ik crum¬ and this water BROKERS section made in Island, — INVESTMENT DEALERS MONTREAL MEMBERS ft, S^iCK EXCHANGE — CANADIAN INVESTMENT DEALERS ASSOCIATION to that OF CANADA of UX-- .the B- that whatever the North THE gOTAL BANK BUILDING, MONTREAL, P. Q. |%l-. itself. .BRANCHES on 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 r 36 WALL STREET, NEW YORK 5 the arctic numerous it is likely be 1.4 Operates 79G branches throughout the coal at Pond Inlet in particu¬ of al4 bolts Royal Bank of Canada—___ at south has bles easily, making transportation BACI1E & CO. & de¬ discovered lar, is chemically good, it inquiry. i screws of low-grade coasts. found islands Manufac¬ graphite and been points east of range L.) Ltd Island, north of Un¬ small posits Ore (P. Co. about to work. now On Baffin several Iron Wide > a ore commercial grade was garnet I But in the interior of the Ungava Dis¬ trict. on the Quebec - Labrador« gava, turing of time. * Canada is second¬ or offerings of corporate and government obliga¬ tions. Whatever your how source recently border security and commodity exchanges and offices Thus I advan¬ some is Robertson and shore Hudson Bay for only very in islands1 it I a,een-. grade 'has to the on mainland Operating public utility companies quarter last tury. for minerals mining numerous Quebec Power Co on Mac- page 33 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 19 % 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 & 12 related duction 1.00 1.00 Scythes & Co. Ltd 19 cotton and waste, cotton wipers, al5 6.7 1.20 al7% 6.8 etc. Co. and Power 48 electric 1.45 463/4 utility ' ! 3.1 " Paints, varnishes, enamels, 3.20 a35 to 9.1 etc. great success. the Athabaska new in development. activity in the region, of mining companies ore* that a new com¬ suddenly sprung up host Breweries Beer, ale, beverages Ltd stout & 27 13 line Slater 17 f0.60 5.0 of 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 25 4.0 Ltd 19 1.55 Canada; operates stations 3 4.6 ' . • 32 Operating public Quebec utility; 2.35 a39»/2 5.9 South¬ of in y';"1.75 36 branches of 2.7 fiduciary 0.90 a21 4.3 39 • 1 1.20 3.4 steel 18 ____ 1.45 b30y8 4.8 little over residents title 15. a a year and of only Water to make from the Ventures plan of the Taku use of the other one or Canadian some rivers emptying into the Pacific metal Yukon water for the smelt¬ out of course ing of aluminum by tunneling it to haul its smelter and finished into ores utilize to the but from there. action Such naturally beautifully into Canadian dreams —through the of developing their seaport in the country back, that is, east mountains its case, to Alaska. Government tion down but, in The Dominion turned the the grounds on own of the Alaskan Panhandle. proposi¬ Continued it op¬ Goodwin Harris on Along page TORONTO tpwn, tovrush whether mineral INVESTMENT 1.00 al5y2 6.5 STOCK BROKERS AND BOND DEALERS a 347 Toronto Bay Street 185 North Front Street 1, EMpire 3-9041 29 0.80 PRIVATE 25 0.10 Quebec held their on the Bell, Gouinlock & Company not much northern 1.12 for translate stock into U. S. at from kon Limited Members to The Investment Dealers' Association of Canada much very Mining & generating Prosperous the up Lake, of site its Montreal 20 The a the on Asked, Continued A on page 34 gold itself government Leggat, Bell, Gouinlock Ltd. has plant on the Snare supply electricity to the district Mayo and River Members to 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¬ 7" WIRES their 4.6 17y2 Sarnia, Ont., Dlgby 4-8831 of the potential water in the northern territories power mine at in 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 of additional in 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 on for all Securities security, at your our research and trading facilities disposal. Consult us—we can help will never a be COMPANY cluster industries, for any one of a hydro-electric project would be entirely out of the ques¬ tion financially. The Aluminum great ect is 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 6- Established 1909 which are you. i Monthly Bulletin MATTHEWS single one of require information or. quotations Canadian Industrial, Mining or Oil any power benefit of any enterprise but rather for ,V 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 to generating plant the Windsor haul being huge a near water plateau on moun¬ on the sea on 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 to high a the east side of the coastal for Hamilton on the west side. and The Investment Dealers' Association of. Canada 25 ADELAIDE STREET WEST tunnel lakes a vil¬ now large aluminum by ship from Jamaica 7 a fits —like Alcan has done at Kitimat es¬ just an Power in the North It is part of the world. original suggestion upper rights, possibly through arrangement with British Colum¬ bia. metals, region own a Lawrence was home the see power Com" petroleum and 3% the its around and It owners to to son. Add water a in Aluminum Co. of America made the North this -point to develop of it. Consolidated * business products "Vot. t Adjusted to in 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._ related Markets not be development of also along as 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 in of 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 I endowment Engaged from ores, pectors Canada Steel Co. ^region Bay on Lake Nipissing, north of Georgian Bay . Sovereign Life Assurance Co. Stuart near on Ltd. and Canadian hydro-electric to for other points northern of north uranium well as. shore and 7 • in north to radio 7 ... 34 . Southern Canada Power Co., Life reconnais¬ Canadian The as however, Lake pecially Co., Publishes'seven daily newspapers of City. serve for River I in Canada ern wishes water reserved of hydro-power. area. numerous Canada, chewan, 1.00 * to the search Foster 10 and The in 1 Ltd. across it for its concrete-block a there for proceeds at . stampings (Howard) Paper Mills Southam Uranium erected branch forgings Pulp called even building dairy products, Co., Ltd._______ companies; Smith smelter a generate exportation feels Canadian Bank of Commerce has (N.) and 0.60 27% carbonated Silverwood Dairies, Ltd. "B" Full 1.40 for to the on Sicks' vast plant the looking for munity has in cation aluminum already a to find Edmonton, with doing land of the Yukon prospected Such is the with \ , 13 .___ 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 on 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 18 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 21 Search for Uranium In int'sts San Antonio Gold Mines Ltd. * - 1954 — 32 page Canada's Plans foi Its Northern Territories Approx. Including fotL. Quotat<j'tion No. Consecutive from 33 Direct Private Albuquerque, Wire Connections Atlanta, Cleveland, with New Dallas, York, Denver, Montreal, Detroit, El 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, 34 34 (1294) Continued from Continued 33 page Canada Canada's Plans BRAWLEY, CATHERS & COMPANY from page 33 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 of north of end the Panhandle, the Canadians hold that it is only the glaciers which blocking direct are CANADIAN " ;l fvv'. '! -yv". ■ GOVERNMENT-MUNICIPAL-CORPORATION the to 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 OF 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 of the double tion it to the Ventures It is estimated at Ottawa thinks - Yukon would time. In similar that construction talked about - Toronto railroad, too, Statistical information ties supplied promptly executed on the on Canadian Securi¬ on Toronto request. Stock Orders our Exchange affiliate member corporation. the out of needs Canadian the Lake Northwest have would Great on the tendency to a the development and growth of secondary manufactur¬ ing industries all around. How¬ : LIMITED V; ever, erection of Great Slave might smelter a 220 BAY STREET, TORONTO, Telephone: EMpire of Canada limited and gas CANADA in the duced 6-1141 An to date for has inconclusive pro¬ District of Territories, all the a and Canadian 11 5 Investment Se ^ & ^ afftli ated with 5.2 30 0.65 5.9 30 0.70 bl2.75 5.5 14 0.65 al4% 4.5 4.6 Issues all interests Corporations investment trust Ltd."B" the of man¬ Table Starting Appear in the on Page 35. 15 19 19 59 6.4 1.40« 20% 6.7 1.00 21 4.8 22 0.625 25 1.00 43 21 Mines, Ltd.___ 1.20 al9 0.14 14 0.925 3.8 12 7.1 12.87 10.9 producer (Hiram)-Gooderham Ltd Holding co.—extensive liquor terests ; Manufactures Western sheet Canada in¬ vC.. c'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 v 6.3 con¬ etc. Ltd. line 16.50 specialty " fectionery, Pull 3.75 14 Co., Ltd copper-zinc Worts, Wilsil 1.40 24 Quebec Pine 15 al.05 and goods Waite Amulet & 0.85 18 Cotton Cotton yarns Walker 0.04 gold producer of packing house Wright-Hargreaves Mines, Ltd the possible Northwest way there Sea, Ontario are water up to the gold 1.66: 8.4 producer Zeller's Ltd. _ 26 3.6 Operates chain of specialty stores across • Add a Canada Asked, 3% to translate Into U. S. funds, b Bid. numerous sites large number of rivers very creeks. At the power other end of 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¬ on 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 Co 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 by 0.80 Listed Companies Which Have Paid Consecutive that has been carried out district 16 agement type at vicinity. exploration only ' manufac¬ mortgages; and ~ . cities United however. /?£ in 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 on 0.60 . Elevators, Ltd, tres in That is, smelters in Yukon-B. C. and 5% 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 20 United Amusement Corp., Ltd. "A" shore of Great Slave to house and which 0.26 man¬ of fine clothing and debentures 7.3 .... to a base metal industry at Point, not only would an¬ other large community rise on the people 26 the 2.06 0.15 _■_ : elevators, Toronto ' ... type General Pine otherwise meet the 4.5 v possibly built to be ever a40 In¬ Ltd of Second and — the of railroad smelter . Toronto General Trusts Corp. vein, serve Corporate Bonds and Shares trust turing times. a General Trust Grrain sec¬ Alaska from B. C., on top of that, would increase the population five a 1954 1954 Canadian $ * 1.80 29 * - Tip Top Tailors, Ltd placb some population of the no Should Debentures Treasury Bills the in much Municipal agement is country, Mines, producer Canadian Investment industry of that in the region of the Provincial and smelter a Canadian smelter a gold vestment friendly project. Government of Canada Bonds Third Ottawa of¬ ficialdom, anxious Gold : .... Lends the Yukon. on Hughes - Ontario before the Dominion Cabi¬ go 18 Ltd. Manufacturer net itself if territorial water CANADIAN Teck course. The Ventures project may have Ltd on 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 of Newfoundland—by'a British financial syndicate headed CANADIAN STOCK EXCHANGE TORONTO STOCK EXCHANGE by the Rothschilds of London. MiHs. Spence & Co word /A 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 of use down sea helicopters lanes and treacherous , r be Ry., Churchill has become important not only as a W on Hudson Bay. montbkai. also economic opments at Churchill, in northern parallel, ,„ves.men. should recent to track through ice floes icebergs in Hud- Continued on page 35 360 St. James Street, West, Montreal PLateau 4871 Volume 180 Number 5364... The Commercial and Financial Chronicle (1295) 35 (tyr J' ■ Canada - Continued A Wonderful Climate For Investment from the 34 page combination the of French ments influence of Old Canada, notably rV Quebec, strong in its Canada's Plans tionalism sense for of 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 in with as a group, enthusiasm moderation in to 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 or ships prior annually Midland Securities to members: 1945. The Common Stocks Churchill Atlantic from is route 1,07-3 Calgary, A total of lane. 9 j 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 in and the has 1953 Government announced Cana¬ The Midland Company that the capacity of the grain ele¬ Have Been Paid vators From Churchill at creased is to in¬ be 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 it make of growth Cash Divs. Approx. % Yield Including No. Consecutive Divs. Paid Extras for 12 Mos. to June 1954 — Abitibi Power & Quota- Based on tion Paymts. to June 30, June 30, 1954 1954 Canadian $ * 22Ya 1.10 5.0 Pulp 9 2.00 30 6.7 8 0.60 17 3.5 Argus Corp., Ltd co.—manufacturing & interests 1.84 0.15 8.2 , "B" 6 1.00 ' 25y8 4.0 first representative Ottawa. 7 largest in to up 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 of name the De¬ W ood, Gundy & Co., Inc. partment of Resources and Devel¬ of the changed to the Wall Street, 14 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 to now terri¬ Wood, Gundy & Company policy and arrive at decisions af¬ Ltd the separated Mackenzie torial etc. of 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 v North, constituency set was istration 7 Prospectus, development and holding co.—gold & other Ltd. Canadian opment, charged with the Barymin Co., Ltd metal River 1947 to Newsprint & allied products merchandising the ago—also and Paper Mills, Ltd Investment in at allied products Anglo-Canadian kenzie the 6 in too, is the fact that two years ago, that is, in 1952, the Yukon-Mac¬ the — Paper Co., Ltd. Newsprint & 30, all to grain there each year. sign of progress and Another Years Cash on ship a maximum potential of 20 million bushels * possible Stock orders executed producers 7% 0.40 5.4 Limited fecting their welfare. of Canada for Established 1905 Canadians the timber products in Canada The Brock (Stanley) Ltd. "B" 9 0.40 7 ' 2.00 6.7 a6 Laundry supplies, hardware, plumbing supplies, etc. authorities Operates in a Dredging, Ltd... 6.20 32.2 gold dredging project sometimes are fresh Burns & Co. Ltd. "B" 8 2.50 4.7 53 Meat, lards, butter, poultry products, etc. Canada Cement Co., Ltd 5 3.00 2.8 107 source Canada 6 0.40 all% 3.4 5 — 5.50 a61 9.0 Oldest and largest foil converting plant in Canada Wide Starch variety Co., Ltd of corn & other products • Add a Asked. 3% of certain raw itself. S. the But Members of look to 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¬ at 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 to translate into U. S. 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 on page 36 ada very resources to settle in Can¬ that their enterprises so become might thoroughly Canadian. De¬ velopment could turn out to of 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 a nal idea INDUSTRIAL, MINING AND to was Western oil in Street W. - EMpire 4-5161 Toronto order in 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 to would love of 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 in 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 in investors foreign capital can still prof¬ find many opportunities for Frame, McFadyen & Co. Limited Our facilities be 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 \ 36 Continued from page and also in the Pacific As North West of result a search 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 of this one the Leduc is Canada strike a half times requirements ning of 1947. what were wanted the to as the Dinning study the natural was there were not sufficient gas established of gas. export to justify Cash Divs. same end 1949 the Pe¬ In Gas Divs. Paid there vation Board at the begin¬ islation — the given—by leg¬ responsibility of not sufficient were established a dollars paid out working day every ;V million Co., policyholders, beneficiaries, Canadian of the SUN LIFE - and The Ontario Consol. other A. The by 1952, and in A 0.50 16% 3.0 0.50 14 3.6 1.00 11% 8.7 0.40" 81/4 4t8 9 1.20 21% 5.5 a Steel & Coal holding co.—coal, Corp., iron & steel interests found had reserves Dominion Distiller on fields to of its of coal tar Chemical & producer derivatives Donohue Brothers Ltd._ ' Owns & operates a paper mill at Clermont, Quebec ■ . * on Tax>„.:& Co., Ltd a West. 3.1 Box Ltd in to the Pacific This permit was re¬ North 6% 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 9 Textile Mills Ltd Disher Steel Construction Co., Transmission Company to take gas OF CANADA 4.3 containers its recom¬ export permit was an 49% newsprint Shipping containers Si folding been built up to 6.8 trillion cubic feet 2.13 6 Ltd Co., Ltd operation and applications established 4.3 3.8 Wholly owned subsidiaries produce nylon & rayon fabrics ' was Power S. 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 U. 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 a This record time and the line was con¬ structed ^ & Catelli Food Prod. Ltd. "B"_ 1 in 5 1.1 electrical apparatus Commissioners for Canada the Dominion Government Commission and annuitants 2.00 all Co., _ Airbrakes and by the 0.125 9 Westinghouse Ltd. approved by the Board of Trans¬ by 8 t Consol. Paper Corp., also 3.9 All types lumber & wood products from Pakowki Lake to the Inter¬ and 25% 8 Co., Ltd. operations at Butte, Montana, and a 16 inch pipeline was constructed port 1.00 Canadian Western Lumber Cochenour Willans miles. 5 Dock reserves granted a Montana Power 35 2.7 4.2 Shipbuilding, repairs; also makes industrial & mining machinery to border, being 63% 9 & Ltd._:__ Canadian Vickers, Ltd Government, about 1.70 a!2 Canada permit to the Company (as an emergency move) for Anaconda's metal refining of 0.50 bakery dredging; construction & repair work on waterways Government, United States authorities through the Canadian national to Dredge 6 8 Western General general permit was granted. How¬ Federal 1954 — 9 Canadian ever, the Provincial at the request of the Half 1954 Canadian $ * on Paymts. to June 30, 5 distributes products in meet the foresee¬ able needs of the Province and no was June 30, 6 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 of result a Natural Extras for secutive of Winnipeg and South to the United States markets, and still others As Approx. % Yield Including field; others wanted to pipe it East to and A Wonderful Climate - No. Con¬ Creek re¬ the i For Investment reserves serves 35 page particularly and Pincher the the to it Southern the Province, from known take to 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 to 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 10 A Look at Canadian Natural Gas the Financial Chronicle... Thursday, September 30,1954 The Commercial and (1296) Add 3% tr^hslate into U. S. funds, to 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 it 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, on & FORGET for¬ a 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 to whole. a as It is 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 on decision of 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 an 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 of River have Established 1836 Exchange Reserves the in in excess Peace Specialists in Canadian Industrial If established Canada in 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 s • Thomson, Kernaghan & Co. great nations. complete banking if could nomically; served be very because of now eco¬ man- made barriers this otherwise very, natural transaction cannot take I place. is a am that convinced this condition which need not and ^. F. W. • • r — Partners - - — E. B. Kernaghan K. A. W. Sutherland C./Woolley W|;Davison f -' - 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 in development, Canada or in the States, is of great impor¬ tance to the economy and Continued on security page 37 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 in well ■./r./r.• 11.8 7 5.7 to 1.00 bll 9.1 .6 0.20 distributor 8 "• 3.5 25% 6.3 5.50 1.8 1.60 ' : 0.10 5 2.00 Wholesale distributor of 8.7 2.00 1.00 40 al6% 6.1 Manufactures large variety of metal products Hydro-Electric Securities Corp. 7 0.30 ' b5y4 * 1 tries Corp., of Ltd. 7 2.375 Purchases acceptances; also small loans and general insurance busi- 43% themselves. security and well in a that would be way out Holding entirely other each on supply. I erates pulp Canada operating and and the International Holding in 72% 3.9 controlling 6 2.40 2.6 91 Central two to make 6 0.10 al.50 6.6 those their position more Add 3% to translate way feel this b Bid. " Continued on page 38 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 - of the Tennessee """ . until . . ~ ing with We us have officially and Alberta , . natural , m m gas able- The line will then and procurement Trans-.Canada ume will by the for T0r0nt,° avail- is through Western have been created with the well as resents of an Transas of" resources particularly most which we feel able completion of task within time the this will it as limits. Continued for on page a to pe¬ gas and other natural resources, and suggest that this Association might well give it serious HI SAVARD & HART A Members: Montreal Stock Exchange consideration. Now to return to my subject: Canadian Though the development which has MAJOR & COMPANY Members taken ada has Exchange 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 up tre¬ few The Petroleum and Natural Gas ORDERS EXECUTED ON COMMISSION BASIS Stock Toronto Stock place in Western Can¬ in and 1952; past Board Head Office: 230 Notre Dame St. W., Montreal placed Alberta at 6.8 11.5 trillion in conservatively at 13.4 1954, and has Branch Offices: ' trillion cubic feet in estimated Private Wire to Maritime Provinces with the present trend ROYAL an BANK BUILDING exceeded natural gas, market a 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 of 62 of 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 of gas • for be taken export. This gas the rate of 183 at Canada Montreal • Harbour 6101 Montreal Stock Exchange Exchange der, East —a the as 36-inch i Saskatachewan far as Montreal. bor¬ This ^ t.ri' 233 Montreal Stock Exchange Canadian Stock Exchange The Toronto Stock Exchange • • Notre <>-< * Dame Street IIArbour 6101 V v s 1 West; Montreal line from Alberta • a 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 to be fulfilled before the •• to Winnipeg, Manitoba, a 30-inch line easterly from Winnipeg north df the Great Lakes to Toronto, with * , Canadian Stock to presently involves isome 2,200 miles of natural gas pipe line Oswald & Drinkwater Members: close project Members Mc DOUG ALL & CHRISTMAS permits give us authority to build a pipe line from a point in Alberta i 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 of t en¬ At 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. on 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 on 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 my matter troleum, Asked, that there sure that I have say long to am 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- a 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- S. Power Co., Ltd. co., utilities §f2.84 co.—Op¬ mills in paper U. in "Lfi as 9 The magnificent co¬ have received from agencies financial coun- safe for not am in any way that these 5.5 | Paper Co. and we natural whereby both feel would ness International these ' other words, if it is most economical for relying Acceptance the of 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 "1 and strife among In 5.0 & gypsum chemicals; etc. Hahn Brass Ltd Management A most economical and beneficial to the continent as a whole. 8 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 V 8 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 ir 8 year and in the they relate to the satisfying the world war un- 1 of a5.75 ■ Paper Co., Ltd. Present commencement of construction of the various Dominion and Pro- whereby free exchange of a 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 9 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 of 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 7 Stoves, ranges, & Paymts. to June 30, ; Ltd Owns 1954 of we 5 ;-> & June 30, on 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 " 37 -j Branch: 14 Metcalfe Street, OTTAWA, Ont. 38 •t( >" 38 The Commercial and Financial Chronicle... Thursday, September 30, 1954 (1298) Continued from page McCUAlC EROS. & CO. Continued 37 jrom Canada The Canadian 37 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 of 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 9 0.60 7% 7.7 6 1.00 a95 1.1 of 1.04 a21 5.0 5 0.075 6 Ltd imple¬ farm machinery and Newsprint , 6.3 milling; Mersey Paper Co., Ltd related products Midland & Pacific Grain Corp., Ltd. Deals in and operates line grain elevators in Western Milton Brick Canada 1.00 15.12 6.6 §1.94 36% 5.4 1.00 16 6.3 7 1.00 al5 6.7 9 quality 3.3 7 Co., Ltd first 2.25 8 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, of Complete a 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 of operation rare «► 1.65 9 gold Grain , exceptions, are found in the same formation, the oil producer 0.08 9 Ltd. & arena permit Board Conservation Gas INVESTMENTS 5.7 gold producer Ontario Fields set out in the export. gas alO1/^ in Mines, Ltd Mines on 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 9 trade Maple Leaf Gardens, Ltd for the gas will result ™ 3.3 Canada Ontario market available An al9y2 6 hardware 0.65 MacLeod-Cockshutt Gold clearly the oil and gas industry is — con- Maple Leaf Milling Co., Ltd. our Canadian $ * 6 sale Ltd Bros., Macassa project. effect The 1954 1954 9 installment Wholesale Eastern the line, makes us optimistic concerning most June 30, June 30, 7 "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, related and locomotives Diesel-electric exceeded and the production tempo is increasing. * Cochran, Murray £ Co. Limited The effect of this project makes 3% which § Adjusted market available for the a translate will be tremendous insofar as development is con¬ gas Add a to translate into Canadian for into U. U. U. — funds. S. S. rate exchange. of Add 3% to funds, S. Asked. industrial cerned. Plants in addition to those Government, Municipal referred and Corporation Securities to previously be 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 of Hamilton be 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 we due alone to the great abundance and variety of natural with this which we were land, goodly 1909 to which I have the and SINCE remember that all but to a Toronto Stock Exchange Members resources blessed Investment Dealers' Assn. of Canada in very 255 Bay St., Toronto EMpire 4-8471 - great extent to the willingness of forefathers our and to conform work to their Branch—Brantford, Ontario toil and actions to divine law. Our earliest American fathers and here with came objective freedom — a 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 IN ex¬ tensive oil and gas developments naturally led to the establishment Members: V of regulatory boards in the inter¬ Toronto Stock Exchange The Investment Dealers' Association ests of Canada and of good production practices conservation. experience vinces in Howerer, government my con¬ CANADIAN MINING SECURITIES that if and when these me original aims necessary STOCK ORDERS ON EXECUTED ALL EXCHANGES are replaced by un¬ regulations or "regula¬ tions for the sake of regulations" are we of 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 to every we future our field uphold of our let ourselves we do gradually drift Continued on 170 BAY STREET page 39 • TORONTO Members: Toronto Stock 1 Exchange Canadian Stock indi¬ competitive enterprise system at all costs and that not en¬ Cradock Securities Limited MONTREAL: V 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 on tion Paymts. to June 30, June 30, ment oil Situation 1954 —• glad to send stocks; also companies Operates general warehouse in & cold General 1.00 b40 2.5 8 0.60 bl7 3.5 into "B" dealings 6 1.20 253/4 Normetal Mining Corp., Ltd. 0.26 9 3.05 8.5 Wide variety Wholesale 0.65 of milk and dry retail goods §t0.85 11% 7.2 6 0.20 b3.65 5.5 7 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 5 a0.80 7 7 Ltd. 0.02 0.26 7 to i 1.375 233/4 6 0.19 3.45 5.5 8 0.70 10y4 f 1.24 32 V2 Operates chain of 73 Telephone to us our plate Ki DesRosiers & *our members effort every canadian & 427 God-fearing nation. a 9 1.05 Co., Inc., has been Corp., installment Co. sales 2.20 37 5.9 of Steel of 1.40 393/s gas 1/ *' j 1.00 9 al23/8 8.1 17.25 0.30 —6 — to 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 as 80 Sink¬ U. j ■ 5 1.00 a89 - The St., Toronto West Stock • 1.1 21 West 44th Phila. Sees. Ass'n stock 3% dividends, splits, ■■■■■;■■ 1, Canada ★ New York Branch Ojfice to translate funds, Asked. , Exchange Toronto Street New York Telephone MUrray Hill 24345 S. Lister Telephone EMpire 3-4271 in Canadian-U. S. rate of exchange. Add into for Richmond ing Fund Commission. ns 3%. to translate into U, S. funds. translate Steen A. NEWLING & CO. Graham Canada 8 Adjusted for G. Mining and V i business grocery ■ , confectionery Grocers Ltd Western his President Ltd. Biscuits j|jS 1.7 steel i Western i ,i , Ventures Ltd. John Charles Hicks 3.6 transmission national welded and W. Oil Securities Corp., Ltd plate products Viau L Canada, 6 storage, distribution Steel John Canadian ob¬ — Production, United Rowland Glandfield McVittie H. 4.4 1 Gas 5853 Specialists in ligations Ltd. PLateau r Ltd. 8 Purchases WEST 1 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 of forward go stores Toronto Iron Association WEST, MONTREAL before us; they great heritage and a 3.8 appliances Ltd Dealers' STREET LOUISVILLE, Ky. — Thomas Graham, President of The Bankers 6.8 9 household and JAMES ST. Louisville S. F. Comm. Carson Ltd. Stores of The Investment went us 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 us 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) of 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 related writing and not determined to do 5 7 and of 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 we lives and to have left 4.6 6 Robinson, Little & Co., Ltd.. dising of 0.03 etc. Quinte Milk Prod., Ltd. "B" be who neers 6 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 I free country where men can a choose Co., Ltd. copper shares state of government control a As in Newfoundland Light & Pow. Quebec of investment securities. selected list of seasoned invest¬ appreciation. and finally government ownership. Montreal grain a ENQUIRIES INVITED 9 storage McCabe Grain Co., Ltd. you list of Canadian industrial, mining and a whose Montreal Refrigerating & Storage Ltd PHILADELPHIA, etc. Board of Pa. Directors of : The — the v. 36, N. Y. Paul Sarnoff, Mgr. Phila¬ . delphia Securities Association has b Lid. elected James Gies T. of the Association to balance the of President serve term out the of Raymond E. Groff who is retiring from the securities Morgan & Co, Members WIRE TO Mr. Gies, & 1 Co. with of 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 a ♦ mem¬ Board ' " of Directors. Telephone PLateau 3971 At the of I Member: same elected was the an 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 v. 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 33 33 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 in the Atlas offices Building to engage in business. Bennett, Partners George a are E. securities Dail 66 MNG STREET, WEST Negronto H. Bridwell, Grant M. Christensen, Richard Ii. Schubach and Robert M. Schubach. rhone: EMpire 3-7477 1 ' ■ 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 — in 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 of The Outlook for Uranium Mining production of nulcear fuel for use fense business done. Aetna 38 American Auto- 23 American Ins.__ Fire Assoc 16 Amer. Re-Ins.__ Great American 29 50 Nat'l Union 31 34 Springfield Paul M. 41 & F. 42 Average 46 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 16 realized marketwise in their the* during stocks the last year. PERCENT INCREASE IN MARKET PRICE SEPTEMBER 27, 1954 OVER SEPTEMBER Conn. General 57 Lincoln 87 - 35% Life Ins. Co. of Va._ 110 Life 14, 1953 Life & Cas. of Tenn. 93% Aetna Life Colonial 96 National Columbian National Monumental Life 57 Continental Assur 72 Nat'l Life & Acc.^-- 56 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 to feed plants continue to rise. Our domestic uranium ore buy¬ has program extended then earlier had in dates—first termination 1958, and now to 1951, to then 1954, least ' the \ . this considering program standpoint of market a 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 be Europe, considered is, therefore, about 250 million kilowatts. > - the According to power extensions of the guaranteed mar¬ is ket under the defense program. 15 let us a take look a the at commercial market, The of use nuclear a matter of to involves energy electricity merely transferring reactor heat to a steam boiler and using the steam in with nected a turbine a question about building large no units on the basis of pres¬ technology. Just this month construction was started on an power ent AEC sponsored 60,000 KW 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 30 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, by 1970 the annual increase through¬ the' out World Free may be 20 to 30 million kilowatts. Beginning clear perhaps earlier, nu¬ equipment is expected to be used for in 1965,; or some of the mercial power plants. new generated from conventional us¬ of short are Coal ton, a conven¬ costs much as as A million kilowatts of electrical capacity of about 2,500,000 This is the consumes coal a may of tons be done with 50 tons uranium year. and, eventually, with much less. Furthermore, have we 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 It mercial. of uses sealed-in need power a nuclear and the com¬ realm In for the , the past, has ment life of . of Importance plant, with that will fuel, refueling no ship. a naval within is possibility to build for. certain special Cheap Power industrial develop¬ influenced been by availability of cheap power. Cheap has been available only in power tributary to low cost areas fuel^or hydroelectric projects. nuclear power plants near If 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 no the of We power. the on 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 as 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 In electricity. ing schedule is guaranteed through March 31, 1962. This does not necessarily indicate an end date. This 100 years. * i , has major the been history developments all early of 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 , 42 million lion by 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. 71 __ 96 Travelers 94 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 of seem life investors industry to have played a part in the spectacular insurance recently. The sudden generally that equities representing the have special in policy growth increasing stocks longevity of tax advantages, sales, the man—each the great of con¬ publicity these and, perhaps the most important reason of all, the extremely limited What would this in terms mean Studies 83% substantial to Uranium these < This is a def¬ in Europe and possibility in some States. for huge expan¬ by not yet these by year a ; '• Southwestern Life__ Average realization ? 69 Several factors skyward authorized has tons allowance — Std annual uranium . - 68 Jefferson at St. coverages below for sufficient nu¬ 43 far greater than for the large majority and also reflects the continued interest of which has Noted of 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 be should reached, I do not know. 49 "full reaches • • no even program a 42 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. 61 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 in 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 of eventually vestment 38 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" in cut back until the United long 38 casualty the a The 54 31 Both such are, 1952 Average against catastrophe is strength. As long as world conditions remain as they or 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_ be At present the war. insurance never by Required U. S. Fid. & Gty. 59 Phoenix Fire___ _ being) is 15 sibility that nuclear plants might at what cost. and uranium 14,000 > However, adequate supply an about 1980. Maryland Cas.- 55 Mass. Bonding- 39 New Amsterdam 20 21 Nat'l Fire 31 Fidelity-Phenix should there that be Investment in military plan¬ ning is recognized and accepted by everyone. The awful destruc¬ tive power of these weapons is 38 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¬ 47 Amer. Home Ins 38 of rate replace existing steam the program^The importance of atomic weapons best % Continental Ins.__ 58 Cas. 14, 1953 there will of consider us 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 at 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 if kilowatts peryear, 15 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¬ 2% time, "Industrials" "blue chip" average of added ': , off tons required replacement on the « burn-up., By that* for • be 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 of capacity million 100 which for the Free World may be company publicity has beeh given to the Much appreciation capital sharp nuclear of total a ance achieved, nuclear energy will ment would be 33 tons: with 10% resources, a production rate of 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 an mand is 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 be increased, depending the type of reactor. der the tracts are defense for program, uranium negotiated on con¬ concentrates the basis of production costs, including amor- / <)•> Volume 180 Number 5364... The Commercial and Financial Chronicle 41 (1301) t tization, plus a reasonable profit. ?uCes of *ype now supplyf adefen,se Program might support 600 production rate of tons Inis or 17,- for many years. more 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 so uranium, or doing the 10 work of sufficient nuclear of be 50 The first fuel tons. im¬ an having for the from ample are proof of that of fuel is 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 no industry still importance of this only its — new timetable wjhich has been pressure because no the higher of 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 it would accurate has ad¬ times many been attempted, that concur in there is I a magic pulling power in "local se¬ curities," providing that the com¬ in question has pany tation and There is to "home merchandise, and a 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 is me^enandise weir If you operate in a and your pany has it make makes power groWing and light a advertise the as area com¬ a fine to meet can have this In 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, or advisable to On carries on the send the Such ads if continued properly written, with an and offer of information through a coupon, should produce qualified leads. . If there are any other local name of the message the (on wish you side same of to the dress) and the In right hand top a space the address should address an it the is your sure. can the of return you send it, it recipient when to you. This may complicated but rather printer will understand I Such ductive of mailing a on be am copy that or to doctors, local will tend to 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 or to buy some of the stock offqged ot have a representative contact them. I believe in ads that have a "hook" on 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 a 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, M. Secretary, and Thomas J. Norton, Treasurer. r v « Forms T. J. O'Connor Assoc. WASHINGTON, D. C. —T. Associates & O'Connor formed with offices at has J. 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 as 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 of 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 as 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 H. 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 I 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 in 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 is interested and other select lists in your home duces inouiries. I have often heard it said that when an ad doesn't of tice University be used both when growth situations should sent out cut already imprinted with name sound be — of money mortgage money also will not be so heavy as it has been. Under such conditions an issue of long-term government bonds would of that when the mail¬ so 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 It • 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 a perforated the return other, terest copy along this while stress the vestment in the local power com¬ a 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. a 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 be and in this manner very connection, if attractive an rate in What a Triple Return Cards this card about reply. determine, but a o r Harley A. Degen Sec. beneficial effect upon the economy. a at the bonds Identify yourself with that company, obtain some accu¬ company. facts to possible -as customer is often hard matter to have offer and you proposition reader a f a 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 as the for carries good record and (which it probably future then kind cm/ any securities. as became Even own be for interesting an Lehman ists in a anything been ociia ted for the sale by others than the Federal Government of issues that was produce inquiries unless psychological reaction a favorable had ass way good repu¬ favorable outlook. a 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 26 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 Mr t. me n There May 15,1957, fits well into the picture and as Panke Municipal Bond Depart- non¬ " J. 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 is Securities Salesman's Corner York nounced some important purchases into the market. come available in by institutional inclination to step the other hand, on 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, on 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 H. Opens CITY, Doxey Utah — is engaging in from offices securities business under Invest¬ ment Company. Mr. Doxey was previously associated with Renyx326 at 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 a securities on River 231 So. La Salle St. 45 Milk St. CHICAGO 4 BOSTON 9 ST 2-9490 HA 6-6463 * V 42 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 "A York Editor, Commercial and Financial Chronicle: The article Ernest by Gut¬ R. in your issue of Sept. 2, en¬ "A Plea for mann titled Monetary Res¬ toration," is evidently intended to promote an official of price gold which be a — would ruinous as move as our government could possibly the the increas¬ cates Frederick Sbu» G. 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 to 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 is the to fixed-income of people Must we throughout the country. regard the New Deal dishonest tampering with the "value" of the Dollar, having -resulted of level be can in age-old 1933, in as "ideal" an prices from which there no easing off? as And to 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 of the Dollar, itself; ernment. would be bound to further of power of "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 as we 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 my 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 more gold-value same as to bearing 1837, until New Standard, and "playing by ear." 1834, Daniel Webster gave In 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 be a 3c newspaper—and so on almost we everything we to raise were buy. bound to have the effect of causing prices to skyrocket fur¬ ther, rather than "stabilizing" ihem at present are on levels. the views of a Following few. "experts" this subject: Since we, in theory, regard the as being worth l/35th of Dollar an ounce actually of gold (and which it is in - our dealings worth obser¬ Editor, Commercial and Financial Chronicle: one is gold, which the banks of civilized nations have as their re¬ that serve." Since, Mr. Carnegie so as says, "gold cannot fall value," it cannot, by the same correctly in Let token, rise in value. clar¬ me ify this point: Economically speak¬ the ing, U. of terms "value" rates S. in 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 To ess. seemingly here are the basic facts: Gold priced at $35 an strange ounce ries assertion, "value" a ounce carries of of a means of each of only 1 /70th What differ¬ "value," therefore, there possibly 1 /35th of an of 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 be tampered with. so on at a issued, definite definite our "re¬ are basis— wqight ment ard a be permitted to vary and down from 36 inches; or up a 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 of founders of the Republican Party in far its to 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 of increasing the official price of he merely promoted the "honest" act of making the "green¬ gold — S. to further by in gold," as as accomplished by that Andrew W. White, his in Money Inflation in France," hold which are their hold courses." assumed "financial laws operation the as planets in as those described, and competent economists, is that once the "value" of set been weight in terms recognized a currency of a has definite of 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. of G. is referred now of the Sterling Area, payments external meet Britain of other to or is of matter a the and very question it about that no Britain in the longer plays gold part in determining issue. Nor is thought in the note school of favoring the Britain Even those keen a there any return of the old of United the on are have to be confined to would ternational requirements. in¬ In or¬ der to be able to make the pound convertible notes into gold even to domestic mark holders, or large amount to a for ear¬ serve as metallic backing to inconvertible it would be neces¬ to increase the gold reserve pound sary to notes, extent an the realm that is far of practical beyond possibility. Admittedly, the existing system in Britain carries inflationary possibilities. American is not so was and wide think. to Guardian Gruber in 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 of powers requirements. reserve American well as as to reduce From an British a to wait until Britain is in having monetary as After United systems Mr. Shull all, the States seems power of somewhat City authorities to 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 it for on Very truly yours, PAUL EINZIG 120 Clifford Inn, London C. E. 4. John M. Schiff Heads N.Y.U. Bldg. Program John M. Schiff of Kuhn Co. has accepted the & General 000 for program a New house to of Chairman of the $3,000,- development building new Loeb post York Univer¬ Gradu¬ School ate Business of Ad¬ ministration, C h ncellor a T. Henry H e 1 d a Y. N. of U. an¬ nounced. The purpose the of cam¬ paign, Chan¬ cellor Heald will said, be johnM.Schiff mobilize to 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 A 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 a to posi¬ a 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 G. Phillips & Co. and property. Sterling Area countries. It viously with Graham, Ross & Co., B. a industrial New name Mr. was whether the change was for worse or for better, but there can be no Guardian Securities Broadway, would on re¬ England note requirements "debauch" in the two countries in re¬ He is versity, in 1927. member a of the N. Y. U. Council, governing body York University, the of trustee or director and the of a 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. of 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 S. Main Street to true with Mr. securities business. formerly is same about the dollar. While Forms Robertson rightly remarked, sterling is maintained — year. to other United Presidency that pound currencies Cabot tion for the the to 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 is maintenance aid as the Gruber and Treasury the to 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 a serve New Haven by suspended, was II, practically the entire gold their And it may properly be that one of the "laws" note of after the Gold Standard League 2009 the large gold reserve. Finally, September, 1939, immediately in "Fiat says of England notes ceased to be convertible into gold, even though the Bank continued to Connecticut State Chairman 1875 Act. of standard Bank the United States. FREDERICK maxi¬ be 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 it 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 U. 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 of 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 my think of it, in Britain reserve is completely di¬ gold policy has war Mr. may vorced orderly funding and grad¬ liquidation of the I or (my underscor¬ balance its budget; and to carry out a 2, 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¬ as concerned is ual as so of Shull your be between 35 worth dollars, each G. on Note an dollar issue your article car¬ of gold. real in In Frederick priced at $70 that "value" ounce an 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 is value, because it is in itself fall in of gold per dollar? To do otherwise would be like having a yardstick we $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" so a 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 in 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 of 5 Now, how could we possibly have an honest "redeem¬ holder." more so money an 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. as do, in over started there it took ciples of the Gold real to Deal 1933, abandoned the age-old prin¬ that Now in with tampered never was the what used prices commodity on 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." in 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 to delivered Feb. he which cannot raise we takes — on on 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 as 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 no official price of the in "increase 30,1954 with Company.' i In¬ offices at conduct He a was Small-Milburn Volume 180 "Number 5364... The Commercial and Financial Chronicle (1303) of Sterling Again at Discount a production. Once they have higher level, a subse¬ appreciation of sterling impose grave handicap on reached quent would By PAUL EINZIG a 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 i LONDON, * Eng. to renewed dollar-gap as well sterling convertibility. a For the — In as the significance of the trend. drastic reduction of foreign aid by a first therefore, time for nearly 12 months, sterling At • clipped below its dollar parity of of While earlier in the summer i t d weakness s was r payments may then give a less favorable trend. attributed the to with- awa1 • of that the advisors im¬ of time Dr. Paul Einzig ing the demand modities.; This confined liberation British, due As of to vantage a:.result of re¬ the various commodity during the last year or is now possible for nonBritish importers of various dol¬ the commodities to requirements •with through London of sterling. This that sterling has now to seasonalpressure - of a the means face ' aid world-wide character. In the circumstances the limit of $2.78.>. -i . One of the • ■ . . risk, that con¬ time. some steadiness Spencer An Co. stock. 4.20% ($100 par cumulative The stock share) plus per dividends. ~ was expansion of this character." pro¬ in an ment, a 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 of in¬ credit expanding. international investment is if the trade to -reflect a and grow¬ ing and dynamic world economy, the world's trade policies will I to said be liberalized. that from trend in 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 if redeemed on before or United to 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 in the obstacles im¬ to 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 r ! and thereafter at foreign economic welcome the statement that policies and President's it is his I recent give high priority to them in to next year's •/, legislative program. Remarkable Contrast Post-War With - in the cost of 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 of during tea. ^reinforce the numerous wages which have been mands 'ward in recent ; about to be 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 of 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 in 'But the face 'determination of to 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 in providing for wages With obligingly upward direction, index living rof or an very genuine demands. without foundations be met to to a 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 a strong pressure in favor of higher wages in Germany. But .owing to the existence of over¬ r full „ in 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 in 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 be of $2.78 the less ters. attractive For it is in is quar¬ that a 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 I ago. a istic retrospect. personal and impression¬ In 1949, the ruins of war were still apparent in Europe. Famine abroad was world in some the and parts of the threat of it 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 me 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 a never under B. Henri Co. before Advances in the underdevel¬ oped countries have been harder to observe—if than son that over the been case a for no those much so advances uneven. source of other rea¬ countries of the earth have But to in immense any they me encour¬ agement. The of economic devel¬ process is not easy to set in full opment motion, involving as it took of behavior centuries to a com¬ that evolve If this tne we is in the Yet the accelerating. had a magic carpet here to take us around morning globe, I think we 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 me what I concerns Federal illustration you one talking am of one about. loans our to It the Electricity Commission in Mexico—and the installation of small diesel a plant of only 600 kilowatts generating capacity* We power financed this plant Tecuala, are in In area. of town coast west years' electricity time, here in, Tecuala from town library, of Mexico's three of 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, a 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 a 60 of 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 as In uneven. not some occurred And a yet been we year ago, today by pectancy. In parts many are to live in that we are laced revolution of a people less the of world, less and ex¬ content the past or to think in the past. The revolution to deal with way of expectancy is The Bank's Important is in this st to turn it into a revolution achievement and progress. It in and must remember, of the Governors well said one here as it areas all at of Part kind of revolution that the bank ing can see itself play¬ In the Annual Report part. a 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 to tion bring and Report, nical about trade. you and can new Indeed, in assistance development institutions in countries, electric thing the the construction capacity of improvement of of to many of some¬ three million kilowatts, over to the lions to power this tech¬ survey our financial cap¬ produc¬ of acres improvement of railways in a some farm mil¬ lands, to services on countries dozen in five continents. By comparison with what are be can modest done, these use¬ figures enough, and I have no illusions about the magnitude and a patterns industrial world of today. proces does and hundreds of miles of pipe bring¬ fully host of technical skills and DENVER, Henri at experienced. plex J. B. obvious: production the are the of major factor in a the —and SALT LAKE CITY, Utah—Kent T. Hansen has formed K. T. Han¬ the on 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 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; of addressing; the just six. years - change markets aims at moderat¬ has been the result roads camel had We would the as first ings at which I had the honor of 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 to 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 we working being cleared increase sound a accompanying company will use about $7,900,000 to redeem the outstanding shares Remaining bullock, and In 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 .. of - 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 a International Investment Still any Of the proceeds of the sale, the operation of the liberated commodity markets. and more a international than warning against accrued ... for the rela¬ reasons the gram of in 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¬ no 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 is "to imagine source why the government present Chemical why pressure on sterl¬ that account has so far on 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 to Chemical Preferred the of they had to fol¬ credit that mean freedom there listen went on, man making of 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 at to not British not was of 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 to seeking to, quirements. for dollar pressure was seasonal this the would sideration of both reforms will be have progress has favor of to to 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 in 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 in to li zation r e a long ment balances to situation very foreign owing A rise of general in 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 of 14 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 as exports, lowering well as possibility that of would Continued from page 43 be the difficulty face the our bank. dence of member the tasks that countries and What I do have is evi¬ that convinces me, more than ever, that these tasks can be accomplished, and that the lution of achievement can be revo¬ won. 44 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 do who the "old As I understand it, to is give you picture of the a 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 \2 it, . „ potential. my see and these the at activities out raw materials, and highlights the fact that production domestic and ore uranium con- record attained has o 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 at series It ground. Proving Pa- we national civil defense. It the covers of for The . ,, „ developments i , , • . the g-re of It knowledge. field of biological in the covers medical and applications—covering the effects „ , . . . A of all . radiation -xmls and on living fatter efforts «rgy - and and much to . costs *120 _ that running are million ag- science, The same construction at rate a of There month. per , are tor over 72,000 operating contrac- employees and and construction united with . 64,000 over employees mendous task design employees 6,000 , ment to ' do ahead. govern- ^ the Here treis a breakdown of the array of scientific tine and ana volved in engineering engineering this talent talent program: do good a j0j^ tal- coupled fhe im- * was interest and free there would be in erating without security. So no means as information of flow a to of impor¬ industry. necessity for the of old of a cor- of standard our liv- The sub¬ It allows private saturation is ture tative point for to is there It corporations, subject to licensing of the Commission, to own and operate facilities us¬ ing source and fissionable mate¬ rials. It 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 if the law is material sets new up safety protection for purpose of having consistent a Its fu- power. not greater ever only quanti- output, but also transforms entire the horizon limitless. marches economic structure as 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 more ® ? 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 is used multiply to N'ow We available where do it use in we use energy9 furnace as and in electricity. the If in an- (home production of to continue of living with procedures we are it is essential that-we supply con- tinually increasing of sources en- Now how perspective of does on one our get good a increasing rate using energy? Let us return to concept that energy is used our transportation, heat, and duction in in- 1 are of electrical pro- A power. old have been useful the no one. provisions patent in the national may early stages of and foot, by sail and these were by horse. All almost wholly dependday to day supply of the on 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 a tremendous portion of this effort been directed ultimately to the weapons field. With this I am sure will you not disagree, am of 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, a ^s^ss this new near and law futhe implications for under ture the Act been the foundation since 1946, it was individual, or for the Atomic mission, to source nium has which of the illegal effort for anyone an other or uranium. believable. ture—for example: i Commission to Now to what into longobtaining these keep of needs down? our example: In the electric vides tained atmosphere still subject an industry can see enough We have favors warrant an the it sure, incentives some to certain law intends to and two of the years have served over purposes: electrical reduce energy natural the and to cost con- vast My comhas had a great share in the development of gas turbines, and I would like to cite how this help us new to an prime meet the example of mover law 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. F. ^ 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, i win th e 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 we 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„, „, 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, to 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 of 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 is importance of this energy? I believe that more than any other per on year the over gener- average of 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 be 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^' in this and , ^cb l°w eost capital energy as may interest new will effort • L Where wl11 new sources of en~ ergy come from? Palmer p"tnam. author of the book, "Energy in the re- energy increased a 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 of average use tions of naval ships and am resources find also il- result £ba£ energy pany I our to this was a sajd form of gas, oil and coal. given to it to promote the stated purposes of the law. As of 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 as 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 to law of 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 of 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 It possess material—such Jegal ta ™n patent system been a the applied in the atomic The witb the objective of harnessing believe have and of be 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 I 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 we 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 to Today steam freely transportation, heat (such process and strength our going temperatures, more nnnei^o+l° t material and n2fw?<f ialadvantageover other from effective util- persons or the increase 5% or temperatures the on to improve our standard law contemplates new stantial changes. 4 where use) Changes Made in Atomic Energy a 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¬ an the much as of individuals and small concerns. bag than ■ _ composition. s report states ^ en- activities-what ... of AEC reasons, that you Accomplishments. able its . atdmic medical for it of 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 of its by-products—to riculture So These directed are contributions ani- man, plants. . the security assure I course, people, inspired by the de¬ j.Q more , types of ionizing and non- fonizing of accrue u. 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 a cusses tell This, for do cannot j couid statistics. and 4he electric power generation and submarine work. our and na^ ^ down with figures on for forwaid going unclassified of 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 of aware w|gj1 j 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 an are we de- reactors program improved yefoping people, are points the Commission s concern with up 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 we 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¬ a from the Atomic Energy tance in good stead. us tremendous is jn 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 we 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 a few more 10 years, majority have one to years, that that order In 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 a _ since picture and private industry. . most have reveals that the this in engaged Commission new dous energy production job the experience we gained in successfully pro¬ have A look at the young. greatly were by signed However, the revised law, t is atomic the that j business wartime a contractors, such as who try in every way to bring we, you the of operated strength and facilities, — on these And facilities will agree that massive concentration of a them The laboratories and —13,612 sure am the had Commission from District, which basis. 1 1,907 — by 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 my 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 of sistent with these limitations. Biological and medical scientists Chemists chief in- our personnel — people varied work of re- is vestment organizations in operation of its facilities and encouraged to give wide dis¬ der laboratories. industrial use the of 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 as road blocks are out of 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 is 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 of towards 275,000 Seven here. certain and defined it Suffice to Steel * That's economic question is fuel. Here admit I 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, In value and only needed. was it It was small a is only natural, to believe that the sur¬ face is only scratched; that much will be found than more be 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 a station using 35 cents per million btu. fuel. This is without con¬ the placing any value or on by-products of radiation—plu- 7 tonium will be found for all of these. user extent their off most all Business as a rather up If they now. than their rebuild gas How long ago waste product?; How a of ordering. pace If such short great pipe time a pipe dreams? vestment the ago of lines How the were today does Energy The • \ ' tons and (actual) 68.7% based on a week ago. a duction 1,525,000 tons. month A placed at 2,149,000 tons was or 95.3%. Coffee week little exact you theless, you have new of a much of that sure tomorrow's fuel prob¬ This I will certainly working lifetime in my we and practical source that will relieve us of energy lems. be may see in 117,547,470 tons Electric as 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 If country our We 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¬ do represented a - " 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 on a , 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 as 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 cars and 587 1953 week. Five-Week Period Commercial week ended Bradstreet, casualties 152 mortality Sept. Inc., were industrial and 23 from 195 reports. At considerably occurred in or remained 11% 1952 failures increased the preceding in more level in numerous than when the the below highest toll was 212 to in 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 a week ago and dipped to 25 fronv 36 a week ago, although the 16 of this size in 1953. Liabilities of a significant a moderate over-all de¬ dip from a 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 of a year was no Department from, the Sept. and unchanged from the week previous, butof heavy stock build-ups. ago indication store Federal sales on country-wide a 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 in New Sept. York City seasonal weather advanced about 11, aided by 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 i 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 of : loan program were Pressures towards larger things—and who does not believe we " 102 the previous week. , encourage we , 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 we 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 a — or what I think will be their industry. I years I believe that we will oil, and coal start to ultimate in 20 future, away, assume of 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. In on develop later in the season. Reported, sales in the £4* markets increased sharply to 354,900 bales last week, from .244,- major a effect to in 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 I downward comparable because capacity was lower than capacity in 1954. The. Commission problems? a j.. in the latter part of the purchases to actual needs and moved prices roasters as 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 - t \ • 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 t tion in the Canadian wheat crop. was of billions of dollars in Atomic a v . 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 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. a 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 is 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 a 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 ; a 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 to 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, V 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, 10 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 by 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 of 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 4 page i'r.YWuC* * t- as 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 - . 0 ^ The Commercial and Financial Chronicle (1306) Europe Stronger, 7 MUTUAL INVESTMENT FUNDS i 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 of 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 A diversified securities with fund the of portfolio selected long-term growth of its of an to proposes In its aggre¬ non-diversified ment Parker Corporation Berkeley St.,Boston, Mass. operate as also of staff. a Corporation is investment man¬ ended it was Custodian Funds BOND, PREFERRED AND COMMON STOCK FUNDS Mr. over This can best be measured total 1945, net assets Please send your me prospectuses -^-101 have been number stock shares Name. of Addreu. were and the Carrier Corp.; of classes a are SEPARATE Group industry Securities, on a three were industrialists and However, he went improvement hinges rencies ated if He be elimin¬ interchange of Pinpointing conditions in coun¬ in strong very trends still are Italy; Austria is slowly recovering but times 10 seven times prewar; is upset over the in¬ Switzerland in crease watches U. and tariffs S. Swiss on has Holland its finances in order, is with compares prewar only wages price level a its to changed postwar opments the of in well 'as significance is by where industry more study of their price and value position just released to dealers by the sponsor, Distributors a according Group. estimates current of 1954 of the various pare industry groups Group in January. Among the industry groups classi¬ fied / of April, 1945, there 1,312 shareowners and 369,- political problems, economy will German declared. matter of record, a the influx Jof - he said, more 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 in Television-Elec¬ followed Fund for the earnings forecast for the Aviation given Figures Fier+ronics. about mates. in arrange¬ ments made several years ago for listing the Fund the on Amster¬ dam Exchange. He added that the widespread acceptance in Holland led distribution to of the Fund's shares in the British Isles. Mr. Just and Mr. will visit most the of „ Heukelom van leading centers in Europe to con¬ money duct similar distribution arrange¬ ments. Television-Electronics little a in 1948 more than assets $100,000, in resources It Fund, with is excess ^yj^lnvest * EATON & HOWARD BALANCED FUND vestment company concentrating the electronics field. on 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 is estimate from made in earlier an one or two the price position shown in the study indi¬ of these cases, although in several ing the cases probable likeli¬ earnings hav¬ over-discounted, been better group. for the Tobac¬ on 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 ^ in through filed a registration statement with the Securities and Exchange Com¬ mission for ' 810,740 shares of new September 23, 1954 Managed by EATON & HOWARD . - I' . INCORPORATED 24 Federal Street a ^^y^Mutual Fund ESTABLISHED Prospectuses from your We take 333 Montgomery Street BOSTON BOSTON SAN FRANCISCO 1924 Investment Dealer or pleasure in announcing that GLENN O. KIDD the above. has ; today been elected f Canadian Fund, a U. Tri-Continental Corporation has STOCK FUND Canada V 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 A 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 I ~ 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 on of in¬ relative stability of EATON & HOWARD from of now mutual a 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 of West As 10 sound a despite well- are dynamic devel¬ thinking and attitudes regarding labor-management rela¬ expand re¬ as The Chicago investment banker organized Germany, who the on 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 a said Just cur¬ of countries. between change controls Mr. by 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 the of 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 of 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¬ a 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 of the Marshall Plan and the Mutual 15,400 shares of Kalamazoo Vege¬ $2,255,465, and the current figure The Keystone the for shares 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 by vision-Electronics Fund in result of the flow a as total Simonson fund Largely of United States funds under both $53 ten years, pointed out. growth in assets of of has Sales Aug. 1, 1944, and thus 'jits sig¬ nificant growth has been accom¬ plished in slightly Corpora¬ number a West on eystone pur¬ were of 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 A. 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 a 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 D. 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 T. 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 an 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 a a Comparable make of equivalent to a net as¬ share of $20.98, in¬ per At the quarter's end, the Fund had 17,551 stockholders for investment. an $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 26 be imitPOIUTEl value for Stock Fund months ended 1954 increased to set Massachusetts of Growth three the its issue to The $100,242,431. are ASSETS Investors de¬ and redemption rights. The no does total the over according to Dr. Andrew A. Bock, economist with the National years, ticularly shares, the deferred shares having fund shares common and 15,765,341, now NET enterprises. authorized capital stock con¬ Its Shareowners current¬ total assets of Canadian sists and securities the in 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 a ers^fhirrgs total in organized been has there own was Since the latter date $84,481,606. States. United NATIONAL SECURITIES has Ltd., of As 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 A 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 a According to Francis F. Ran¬ dolph, Chairman of the Board and President of 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 $6 offered be of non-liquid commercial the right to receive two shares of the the preferred stock in for each share of $6 stock. exchange preferred All the of ferred outstanding stock changed which will demption be $6 pre¬ is not called ex¬ Fundamental Inv. Kidd of was mutual fund, at J.—Glenn O. Investors, Inc., a meeting of the a board di¬ of held rectors here today, it 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 o amount to f and other ments, quite find we liquid that bank deposits are full in with convertible commercial covered almost assets into Reserve era! under — all through shift to the Fed- or banks. should be in readily very cash conceivable conditions maturity, sale, invest- — This is a To attain this high degree of liquidity, commercial banks must with content relatively low a Diversifie d average I nvest assets. Commercial banks prosper, men Fund, M an h Bond Inc. O. Glenn t In c., t tan a Fund, and Di- versified Kidd Growth Stock Fund, Inc., as well as of Hugh W. Long and Company, Incorporated, sponsor of 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 as Director of. Lehigh Navigation Coal Company and 12 return fourths positors, of 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 on 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- of A c7/ie borrow in the to 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 as branches New &06 ton | ' more 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 of commercial billion to holdings of government within curities time. relatively a se— short to the Treasury on any vast such But each commercial free to rate of interest, is over-all which bank justified bv the yieldjrom assets acquired the assure liauiditv. of whatever pav can deno^it desired degree commercial thus,carry on a time ^Each business the the and without com- to people in use one a it is community learn type of bank they are the to interest classes of banks orderly tions hoods presented much a greater problem. The commercial banking system creates alone credit to meet re- of each hew neighbor- into of the economy that current savings. It thus powers in newer of savings under case if preemnted banking, jng jce to the public will be savings institutions alone could not provide, that system Another wav in which savings commercial complement tions, a tion Early in undesirable condi- on In 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 of institution agitation still, government may arise institutions to WinP^ fi- / Rnth JjOin - npc types 01 iT1cfitllf:nn- with a- as 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 A 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 in bankers some both groups, let us admit, to exagrivalrv t and minimize to , . , , , . displace private enterprise in this assist our economy. terprise, comnetition in finance as velop. feared might The otherwise reserve was As our system of private en- of 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 in 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 fh 1953, for example, the monetary quired pj^^turn ~ essential sector of other or 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 a The outcome could well be, not Making Credit Contraction Feasible earn pressure popula- centers, the partnership that cjaj serves higher rate- tion of treasonable cial and savings banks in provid- to by W i t hou opera- opening exceed so pected branch the the through has long existed between commer- and were- the quirements necessary the be banks had business to meet extension of branches tight, and member banks the both should jn by the commercial banks, the fi- found it not of that each and expand prosper have become would their personal structures. in^' as 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 of 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 in 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 it upon a 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 to ize the other type as well. return comparthat paid by the mutual to thus conferred ^'provide cheXnT account nublfcobhLtion?11^ deeply ^ public Obligations, as banks ings depositors a able acSav- seek depositors, as _ t 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. or Obviously, only commercial invested had them ceiving school at- commercial banks, in 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 if at far an savings If these posits today. and of 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- ?u j 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 to 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 a banking in- stitutions first learn to facilities through a banking use arrMirrmlat.inn of 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 i 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. In 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 a now carried on by our sav-> ings institutions, much of this essential flexibility would be lost. ness r>~ of ments, when needed, beyond the time on savings banks, because they receive savings deposits only, liquidity. nur intendpnt de- Mutual of safeguard commercial so bank liquidity, ^ do not rcauire such major and as low to relativelv a 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 to banking to . 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 of their on deposits vestments makes possible the pay- subsidiaries. the the on account various financial and management President of 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 it as healthy commercial banking system. be ings institutions, provides a rate of return that will effectively savings . commercial banks to engage in any considerable part of the busi- as securities, mainly associations. i0an of fj'uch in them. savings mu- growing a well alone and business 47 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 to late long-term and equipment, and so employment and business activity, were its impact not cush- of regardless for upon whether this could be done with- banks—and of N. thrift, stimulate to effect adverse an needed of Today, Glenn Kidd V.-P. of ELIZABETH, acute ih and government re¬ Oct. 31, 1954. on 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 to 12 page funds iri- closed-end the company, could upon from value of $50. par (1307) well as regulated industry and to hampering results, It is high time that kincj 0f be „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 It 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. \ 48 4 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, , it 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 of evidence is Our j Under in 'or law. eign thoughhardly standable, mendable, com¬ to the attain¬ lies in redeemable a currency (3) sound a But of and leaders business is the common mon find addicts In just to both as we of, do not drug of relinquish their drugs. cases, wise leadership, . sufficient officials since the government of our offered, and offer, a have vigorous de¬ irredeemable for fense ists, and Communists. the dictatorial best means In of 16 version ments" an 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 a 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 to much be more erratic (For ex¬ from January, 1923, to 1933, inclusive, the the same that as in ended of the catas- trophe beginning in October, 1929. that our period Our people difficulties to that all are subjected to arising holders from of the dollars demand their redemption in gold. Our people are deprived of our They were seems to have been con* is the monetary ,system .which is now defended, protected, and fos¬ in 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. 0f no should also We ourselves that those remind eco- far ^ un¬ that this happen that or are operating outside of science; inasmuch as the as science deals with degrees of prob- ability and recognises law of no necessity in the recurrence or continuation of any observed' se- Furthermore, the question arises whether as iearne(j much have we in in Reserve authorities issued ment to the not the Federal 1939 when in fact was respect management of credit that known a summary of which' is that "Experience has shown that (1) . cannot in be 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 we be compelled to face economic readjustment or progressive depreciation of our dollar, the unanswerable question is whether our govor a 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 a 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 as effect ttle to a con- pursue a 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 a good understanding of that have been observable in practically every country since the early 1930's, there would seem to statements have we overcome is proof of tinue to misunderstand and, additional danirredeemable an are in the late 1920's, to that con- the lessons in the monetary field further, emerging, whether these officials will* are* laboring we currency. . of Federal debt—to abandon this tool of the morally bankrupt or sequently, at 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 a 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 yV be coming close V * mentally-managed economy. capitalists seem to to the course described winch in 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 be and freedom of effec¬ an tive defender of that freedom un¬ less he first aids in the establish¬ of ment redeemable a irredeemable An natural is the such .freedom; of enemy cialism in in evil of so¬ government despotism or similar some currency. currency it is the companion Human form. freedom has redeemable currency its natural and as necessary com¬ panion. Should What We Desire »E'ach of Each Us Do of his if Sound Currency? a person expected be 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. a behalf of for • peo¬ individuals most sound re- a our who '*. are 1 its * currency But seek currency well-grounded in and respect to nature probably can exercise relatively little influence in its be- half, acting alone. without influence govern- perhaps most ef- fective a if he organization is of member which sound currency for the United States. is seeking a the people of The Sound Currency League of 1891-1901 exIercised a fine and apparently ef- ' fective gold influence in behalf standard .which tuted in 1900. was of a - insti- : The Gold Standard League, with headquarters at 1 ; Lloyd Ave., Latrobe, Penn., has . been trying to organize leading in the currency. 1933, a 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 a health, mountain of confronted with common, and debt to but unwise, ignore which can the act an 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 of 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. as . roughly with the old Sound Cur¬ agement of a people, Said he in his book, "The Eco- which a * on nomic internationalism - an 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, we of drug the to * 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 ; ' a tinwittid^y,rpre|?aTing for*the ul- of events, quence he or — 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- of accurate and all system of irre¬ enterprise a 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., of which is obstructed by the use of irredeemable currencies. Depart¬ 1953, freedom benefits "Interlocking Sub¬ - the or 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 or big of a Governmentally-Managed Economy of which an irredeemable currency is an in¬ separable part. ... the Death Valley their credit of of money; belief ? may that to wholesale price level has been rel- joined to con¬ have in fact parade into the we control, and understanding of their proper use, to prevent - a sharp sufficient a instruments of changes The is fact 1182, it is stated official memorandum sum¬ as 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 a 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." of power which it also invites. We a 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 . a 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. in irredeemable an 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 in economic severe a arising from avoid. the appear during Wherever An irredeemable cur¬ and impairment of human freedom of could to what constitutes tatorship. rency lesson should we 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 ig intelligent came people. With such a currency, a government can manage and bleed the people until their econ¬ omy experience be 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, a a repeated ample, ir¬ currency provides a government with its of obtaining control of of military use an subjected than domestic demands. they have control of a national government there one finds irre¬ deemable currency. Aside from redeemable by mands for gold have shown them¬ government planners, Social¬ are are percentages of elements which Powerful invited irredeemable selves mone¬ tary system. the in to the agitations for, and risks They right early 1933 to obtain reform in needed ter bit- a given foreign central banks and governments whose de¬ as 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 as 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 an of movement mass a permits currency They (6) movement against irredeem¬ able currency, irre¬ an deemable currency. are Jfrom their addiction to the drug of irredeemable currency. purchasing possible conforming to the com¬ pattern. There is never a mass an spending which risks of the great unsound ex¬ pansions and consequent contrac¬ tions in business and prices made bankers. respect .to rescuing our in 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 of 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 we ■ the people's of 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 a 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 to are irredeemable an 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 a strong the absence of.any y.'VV gold. r Another obstacle enjoy if people our Such reform does not arise • from they not invest in gold or in claims may to this nation.. of seeking the people of over which if from and can form. deprived are redeemable. • valuable a 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¬ a 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 of our it But nf wnat or trie future. ;. The history of resumptions in- be * 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 a r Better Mone¬ a System Are tary ernments). moral • ^ foreign central banks and gov¬ Such an arrangement for / bank-' moral ruptcy. What . ; (except unit monetary standard of case a 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 an Thursday, September 30, 1954 ... It 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- we our / attemptv to !estimate the future and to make a; wise hse of savings,J the current picture^, . ^Volume 180 Number 5364 1. .. . The Commercial and Financial Chronicle (1309) / t 49 ' if described to seem holds with for we cannot the future what that and us two the would that know should we accurately, suggest possibly invest in that the CONSOLIDATIONS to On of President NEW BRANCHES OFFICERS, ETC. REVISED * 1 Bankers and ' . Bank died -:.A : servatism—an our savings. course of effort to conserve of the two prospects as to the fu¬ *? ' r . 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 ■ S. Sloan Bankers York, of Colt, Directors increase to President of Company of New Trust dividend the that announces voted Board dernity is the theme of the interior as well Qur Fundamental > , I der conditions competition, I toward - ; of to known free on in the Fifth Avenue scene."- on 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 a 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 of economic equilibrium. Managerial State and irare enemies equilibrium just enemies of mankind. are Ohio as Valley I. B. A. Group Elects COLUMBUS, Ohio —The Ohio Valley Group of the Investment Bankers Association share, a increase an of of 20 share per annum. a the in crease voted in 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 of its shares 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 be 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 of 200,000 shares of stock/of the par $2,000,000, value of $10 each, Mr. Shanahan said that the proposed action will involve the issuance of 90,000 ad¬ ditional shares. are Of these, 40,000 will be distributed pro rata to present stockholders " as a divi¬ elected Powhatan M. Conway, Co., Inc., Louisville, Chairman for 1954-55. James Chandler, W. L. Lyons & Co., Louisville, was elected Secre¬ tary of the group. of the Bankers Bond v"'[ ♦ Sept. 29 by 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 Of - sale of 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 of a note subsidiary^and the balance will be added to the corporation's . been we could service to improve our With level, tomers safe can adjoining thought vault our deposit 000,000, on their use vertisers west is Fifth of 43rd on floors—lends small it The The size— distinction, sure receiving rapid handling tellers of as¬ banking transactions. Tellers conduct busi¬ ness over grillwork of of 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 On room. serving as a main banking third floor personal well as the 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 42 to public utilities serving communities in Arkansas, Mississippi, Tennessee, Kentucky, Illinois, Indiana and Ohio and to Texas Eastern poration. In on charge of the Department of City Bank vacation salaried is Transmission Cor¬ credit for purposes to travel will wage-earners be 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 of the can in the ticket offices carriers through or 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 as out-of-town too, is as the and small kitchen. room vis¬ Board lounge, dining a bank on new Sept. business In addi¬ gatherings and will be available as a meeting place for neighborhood community groups. The Manufacturers traces pany back to 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 a customers ropolitan New in York the Met¬ On area. and 7, the building will remain open for business and fo^ public inspection until 9 ♦ * p.m. at voted of favorably Bank of solidation by 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 on States of the of Monday, Oct. 4. The exterior five-story structure is made entirely of glass set in polished Banking, aluminum frames. bank's is Fifth Avenue at 18th Street, New York City). said to panes ever in this Through what largest glass installed in a building be the country, passersby get a modern Fifth interior. inviting and Mr. look and a "These wideropen, turn Army. and 18th it, S. is * a graduate Institute assigned York (130 President announced of that The assets the undivided for of provides of the will be Consolida¬ that the main consolidated White which is one of asso¬ Mamaroneck Plains, the N. 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 be Chairman of 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 of as i, according to Sept. announcement by the Federal Reserve System. of 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 A profits " & Trust of The em¬ Pennsylvania Company for Banking and Trusts providing nual combination a cash of an¬ and savings t benefits approved on Sept. 27 by the xras board of 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 in 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 or neither bank con¬ shall de¬ dividends. The shareholders of The West¬ chester pay any Bank will receive capital stock Company pf the consolidated is at the rate value stock shareholders Tuckahoe shares, now of tional Bank held; and the The & Trust will for First is at 32,500 the rate share each value stock Na¬ Company of receive which shares of held. now of $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 of banks. of their of stock No respec¬ in their fractional stock common of the Association shall be issued in such exchange, but in lieu of tion employee ble of share a otherwise be issuable be to the issued any which there holder frac¬ would of shall such stock thereto entitled a ferable showing the Order Form non-trans¬ will be his of of 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 a percentage which same more is percentage for all members. will a to 6% of the bank's net sum up 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 of 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. An em¬ ployee lacking the three-year eli¬ gibility qualifications will receive the cash payment but not the trust benefit until ber. be becomes a 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 In member case may in effect of emergency, at draw needed the a sums from his trust fund before retire¬ ment. Cash payments from the fund will be made this year in December, and in future yea^S'in of The "bank January. based profits, will be¬ to based salary, every or in ap¬ Members early by 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 on 4100,000 to surplus, by a such sales Agreement Aveune, fractional share interest to which * Kleeman, City, of the to office Colonial Trust Company New day night; into A giant showcase," Flanigan pointed out. Mo¬ is Street '* Arthur of He American Avenue clear view of the walls give the bank the to Checks the $650,000. certificates and sold par value The surplus will be $10 each. $2,775,000 of tive 111 Plains." stock ;will be $2,225,000 into 222,500 shares' of divided Mr. office, newest Manufacturers' be entitled ciation will be at 31 that the so 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, a 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 on as 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 As stockholders the 789. page President York, was the appeared Aug. 26, in the as interests fractional A summary of the essential fea¬ tures of the Agreement of Con¬ All of e s Westchester, White the plans to consolidate in our issue of vest 1 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 of or 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 on ufacturers Trust Company of New Assistant Secretary of Man¬ Trust institution National as an that be 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 of 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. of (ii) pro¬ accountVof such stockholders at such times and in ?. I' T-' 4 the Westchester Bank common the as of and story 500 Fifth Avenue Building. On the first floor, 17 positions for and A purchases shares 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 ; It 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 in Association. President account or tion to the extent that they can be set off against one another on the basis of the Assistant j ■_ 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 he years named - and _ Huckel Co. boxes air-conditioned a just was 1945 r i..,.Mr. we booths with maximum convenience.". The $3,- main 4n the coupon 30 certifi¬ a interest for sell his of advertising and publicity Equitable and Chase, which merged cus¬ at last issue to Neck, 53 years was to him, 1952 to Second Vice-President in Chase's advertising and public' relations " depart¬ ment. perfectly willing to part with tradition wherever is the 1930/;. He have we the available on owns Andrew Avenue general funds. Texas made was in installment and on He 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 of new the ♦ Credit National cost Dillon, Read & Co., Inc., headed an investment banking group which J. Vice-President The Trans. Pfd. Shares « Announcement York, Offers Texas Gas at sociation) National Mr. Company For in 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 as redeemable currency of fair and of New specialized on 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 as arrival , ,v at 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 of 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 as amount from the institution's undivided profits. accordance opposing theories future—one transfer of that on each receive a estimate member states of' 1954 this *>year approximately' 10% his annual salary, one-half'in cash and the remainder in trust. 50 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 As 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 we 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¬ to 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 or 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 on follow 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 a very tive 19 page system. Others require special handling. These get close scrutiny as to profit possibilities because of the inherently higher at outside that cluded as didn't we should we considering ways, know about as ex¬ methods will He coordinate As we It we taken has us good a to find this out, but now sure that Republic years are means trade created any tie can careful in more gation we onto our Likewise, this makes product. much than more name research and us investi¬ our because can't afford to let the name we "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 us poor them , us line but in developing makers we so that. We do flexible kitchen that utilize any standard make re¬ stove, satisfied dous lot any washer, made for etc. I tremen¬ a our steel and incidentally sold a cabinets, shelving, etc., more because we friends of salesmen lot didn't a frigerator, am are we complete primarily steel a the housewife can have combination of facilities she wants. I cite many more 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 A few thousand dollars You 1, callable are Sept. at 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. 1, 1983. Its main Pau), lines extend Minneapolis from St. , Duluth, Minn., and Ashland and Superior, Wis. the on east, and to 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 of 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¬ v Organize Own Chili MINNEAPOLIS, Minn.—The In¬ vestment women of 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 of European; our period in 1953 figures swere $118,- . . production plant, epvy-'of the-world, monument a 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 a patterned was after the La Salle Street Women's Club of Chicago and the Munici¬ pal Bond Women's Club York. First year i: ; officers were National Ethel Bank of New : T 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 of 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 an 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 E. 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 in fail might vice to those of you who are con¬ we 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 to 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 to not Product new many to- 1, loss to the-people research progra^n, to deplete their raw materials andyr-ultimately, to When you a decline Funds which should chandise, to cut ur^eliminate their as con¬ need New sales result a one are nies go a 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. a for us study. Labeling be before Jan. 1975. sult in highway our oversub¬ , books closedj will or on 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 in 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 up level. knowledge did not seem avaliable within our organization, so we as market it— deem, quickly the Proceeds still further. pansion in road and toll-highway building now underway. The highway problems and to 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% at profit. a 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 1, ..'.-srv.. decide to study a par¬ we 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. of reoffered crued how you are going to tribution $52,000,000 Co. collat¬ bonds, 4% on a merce Key to Expanding An Pacific competi¬ at 23 Sept. on trust 1984, awarded were sale approval Better Profits: can headlong into the situation ciates were designed tion not jrom fttfll / l Ryi *4% HOISClS 2! 98y2 Northern jr.;-- Continued - B - B eral ;■£§&? man as 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. — H. 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 ) 51 '6 rT^e following statistical Indications of Current Business Activity IRON AND STEEL Indicated steel operations Equivalent AMERICAN PETROLEUM oil of ha. capacity). Oct. and (net tons) (bbls. average • output (bbls.) Kerosene output (bbls.) Distillate fuel oil output (bbls.) Residual fuel oil output (bbls.) 3 fuel oil (bbls.) (bbls.) * ENGINEERING NEWS-RECORD: U. S. Private at CONSTRUCTION Bituminous 6,989,000 6,936,000 2,171,000 (U. coal S. 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 of 57,268,000 56,725,000 55,843,000 of (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 97 100 (New 9,074,000 9,227,000 212 195 134 ■ 4.801c 4.801c $56.59 $56.59 $30.17 . Sept. 21 $29.50 Sept. 22 29.700C Sept. 22 30.425c -Sept. 22 at 93.750c 4.801c 4.634c $56.59 $56.59 $28.67 D 29.700c $35.33 29.700c 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 v 99.91 112.19 * 112.19 112.56 105.34 110.52 110.52 110.70 103.47 104.48 104.48 •,«; 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 3.14 Sept. 28 2.89 2.89 2.88 3.27 ;Sept. 28 3.05 3.05 3.03 __________ __________— —- _. 3.14 Sept. 28 Group PAPERBOARD Orders received (tons) Production of 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 18 93 70 92 \ by dealers SPECIALISTS ON 18 408,830 419,109 Y. 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 by FOR AND ACCOUNT dealers— ON THE STOCK * 22,038 Y, s 878,125 1,169,809 $49,481,896 $17,288,749 of 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, — U. S. DEPT. 404,088 441,166 701,374 204,970 455,038 482,306 770,854 244,820 1,889,280 1,954,090 All as of Revised Jan 1 DEPT. — OF 78,825 COM¬ Aug. 667,443 of of Aug. 28 as of Aug. as 28 > as RESERVE of N. of (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 28 Y. 129,699 1,693,749 1,165,618 FED¬ FEDERAL 1947-1949 — August: seasonally 81 80 adjusted- 74 73 73 i 105 unadjusted 75 101 111 99 104 •117 115 117 •121 $71.06 $70.92 $71.69 FACTORY EARNINGS AND HOURS—WEEKLY AVERAGE ESTIMATE — U. S. DEPT. OF LABOR—Month All of 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 of 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) OF THE FEDER.AL RESERVE SYSTEM—1947-49=100—Month of Aug.: Seasonally adjusted Unadjusted LIFE OF (000's INSURANCE , of 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 of 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 OF (BUREAU OF 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 of Aug. (000's 31 — f 109.9 f* qP?" foods — other than farm and foods —... <3^' Sept, 110.0 110.0 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 OF 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. of 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 of IN S. —HOME Individuals * 106,985 68,921 BALES: OF 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 I 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. t __—_— sales Total sales 1,038,230 1,210,088" the floor— Short sales Total $749,000 Aug.: ; storage ERNORS 2,091,510 196,000 ______ of 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 S. public GAS in which registered— .——,—-— Total purchases Short sales $526,000 YORK— month U. pounds) RESERVE . 11 / ———-—--: in month of August consuming establishments ERAL 139,630 ———-————■———Sept. — NEW Non-durable goods ——.—feppOF OF 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 —— IN _: In 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, In 458,745 12,092 " /£' •;•*—Sept. N. ——— __—— ^*,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 OF 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 of 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' of 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:> — of of Sales STOCK (customers' purchases) Odd-lot purchases by dealers , 856 5,140,000 $32,582,000 PAPER Sales -—Sept. 24 N. EXCHANGE ——: alue 49 $9,986,000 liabilities STATES—DUN (tons Deliveries 100 Number of shares Dollar 80 4,202,000 COTTON GINNING (DEPT. OF COMMERCE)— To Sept. l (running bales) ;* .£» : .235,147^ 18 —— SECURITIES — 92 80 410.0 -;;rs*pt. ...i—Sept. period——— 100 AND 95 $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 94 451 II 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 V? 3.43 Sept. 28 — _—___ Utilities $384,650,273 . liabilities COMMERCIAL 3.43 . A Public 38,704,044 $407,708,834 — 103.30 111.81 Sept.*28 j- — 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 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 — of 45,990,216 96,190,676 50,434,647 29,246,394 23,528,662 liabilities 83.750c Sept. 28 — Aa 31,586,710 $18,057,583 81,114,403 86,894,954 number 29.475c 14.750c Aa 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 : i Sept. 28 Sept. 28 is./- New 29.625c i:; Sept. 22 : at 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 at 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 1 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 1 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 Previous 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 OF 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 of ASSOCIATION OF AMERICAN RAILROADS: Revenue freight loaded (number of cars) Revenue of quotations, cases Latest Sept. 17 Residual in 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 r Previous Wees _Sept. 17 __Sept. 17 Sept. 17 .a average Dates shown in first column Imports output—daily stills—daily production and other figures for the cover that date, on INSTITUTE: condensate Crude runs to „ 3 Oct. 42 gallons each) w month ended or tabulations month available, * INSTITUTE: (percent or 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¬ 13 sured a 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% to in in while 1952 help cannot structure wage to and of But the second may conclusion, it should be said In 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 to reason to believe that is working possible even surplus in re¬ spect of food and raw materials which alone can help further de¬ and if velopment. that like of 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 a liability, it may well turn great asset. a ^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 in people and to the economically and effi-. them Kingdom, United States of Amer- ica, etc. No. Banking Area No. of in Banking Sq. Miles Offices 1 -Country- United U. Kingdom A S. 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 is 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, mi 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 a alloy, are extruded through pre¬ viously prepared portholes drilled in the casing before it is lowered burrs or 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 16 • 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 at are well so unbroken the the for Now in 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 as he 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. If max- in 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 of 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 in in country have their own place the banking system. But the and Power adjacent to such, or territory. 1 the For 31, months ended July 12 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 a 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 • or 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 18 as an vears considerable and and an 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 up on much higher than the steel casing could hold tubes a drop of leakage — Toronto but on 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 to cense and has obtained conduct harness a li¬ horse racing in Henderson County, Ky. It has an option on land on which it intends to erect a for of the purpose harness horse galized race betting ^chines* racing plant conducting meets with le¬ by th« pari-mutual , ^ pr0Ject?d racm8 site is lo?ted »pproxlmateIy five miles Production of With Walter this device in 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 a as all sold the were for are offered shares 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 to not in 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 a largest city in Ohio. because ment loss an and around Columbus, effectively isolated, treated and stimulated at the oil operator's be command This includes 900,000. matter how close no the Out of at 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 an 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 a tubed made of magnesium the The strength is sleeve Higginson Group this producing history, because of the Basically company. world's , Offer Gol. & So. Ohio an There them. of important fuel. most bilities of not only increasing its resources, a oil global delivery of the on founda¬ sure with This radi¬ production tremendous impact of stimulation cal oil Middle Western milling and tool of uses increase to 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) 52 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) 53 \ 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 an 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 15 Price—$45 etc. shares the basis of on held; rights to one expire share new Nov. on 1. 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 on 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 as 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 in 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 of \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 D. Friedman (Tuesday) (Frederick & EST) a.m. 11 a.m. EST) New noon Preferred Pacific Power (Offering Stone & to Trust be & 10 underwritten Dean Co.) (Van (Blair & Co., by Common Alstyne, Inc. and Co. and (Bids $8,505,000 EST) noon (Bids 750,000 11 a.m. EST) Co.) to Emanuel, (Bids Deetjen & Co.) & Co.) October 11 (Ira __Common & Co.)'200,000 ..Common to be r (Gearhart & to Petroleum, Otis, Inc.) shares 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:— to Office—1231—24th Bonds St., N. W., Washington 7, D. C. Un¬ derwriter—None. Continued invited) $12,000,000 (Wednesday) a.m. be November 1 EST) Bonds $11,000,000 (Monday) Common 9 underwriting) 381,018 shares (Tuesday) __Bonds invited) New York $4,000,000 16 Boston to Philadelphia (Tuesday) Telephone & Telegraph Co (Bids page $18,000,000 Sierra Pacific Power Co Pacific on Bonds (Tuesday) stockholders—no to 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 A 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 shares 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 by $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.) At Bonanza Oil & Mine July (Monday) shares 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 v $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 shares 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 s> Salt Lake City, Utah. Underwriter Phillips Building, same city. Sept. 13 (Friday) October 18 American (George D. B. Bonbright & Co.) $240,500 6 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 shares timore, Md. •Co., (Thursday) & Co.) Thompson-Starrett Co., Co Co.) Inc.) i Peabody (Bids $1,020,000 stockholders—to 14 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) be to 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. 11 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 (Bids V 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 11 & 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 shares Clary Multiplier Corp._ Common ISSUE shares in (Monday) Nevada Southern Gas Co.l noon 750,000 Corp October 12 Common (Lincoln .(Bids Inc.) ,,, Co stockholders—no Common t 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) to 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 • PREVIOUS 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 54 54 Consolidated 53 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 N. 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 to subscription by common stock¬ for offered be 1954, on the basis of $100 of shares of common stock held; record Oct. 4, holders of 27 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 • of 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 share 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 To — 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. m 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 23 stock mon mated at (par 10 cents). $1 per stockholders. share). of 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 of 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 13 Price—$40 eration shares per and 1954, on the basis of five held; rights to expire new shares 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 No 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 an 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. / • : v. General Gas Corp. 143,500 shares of common stock (par $5) in exchange for common stock of Consol¬ Sept. 22 filed be offered to 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. of share of General Gas for each a The offer is subject to deposit of at least 175,000 shares stock out of 210,000 shares outstand¬ Consolidated of ing.. Underwriter—None. / » r 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. H. 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 be Price share. — Of 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. r ..-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 to up 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. ,r 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 14 (par $1). — Office—223 . General Services Life Sept. Underwriter—None. Pierre, S. D. of 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 14 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¬ of per pursuant to 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 of days from date of issuance, and 210,000 shares being offered to expire on public at $4.50 per share through Oct. 5. which 57,310 shares are Houston, Tex. . . i • 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) be supplied by 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. © To Hercules repay a 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 — 9 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 7 •stock of 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. 2 & 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 of Church American up Gas to 11 & (EST) a.m. Electric Oct. 5 at on Service Corp., 30 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. N. exploration and development expenses. South, Salt Lake City, Utah. Under¬ Securities, Inc., the same city. mnr> stock. Price common — a 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. i 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. be to 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 in 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 of 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. $6 share; and to stock¬ per Proceeds—To be used part as 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 on 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. — To — 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. L Price—At Office working capital. Pro¬ par. 101 — Pine St., C. Underwriter—None. about each 10 Nov. shares 8 on the basis of one new share 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 of —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 close business Oct. 14. struction of new Price—$15 on per each 10 shares held Sept. 29; rights to expire share. Proceeds—To con¬ subsidiaries. . Underwriter— Blyth & Co., Inc., Lehman Brothers and Bear, Stearns & Co. program of share for its (jointly). * ★ New England Fund, Boston, Mass. Sept. 23 filed 100,000 shares of beneficial interest in 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 of 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. a 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. print ctock working capital, etc. Boston, Mass. of ★ Magyar Publishing Co., Inc. Sept. 23 (letter of notification) 10,000 shares of Underwriter—None. Y. 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. To 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 55 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 on page 56 Chronicle... Thursday, September The Commercial and Financial (1316) 56 — 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 on be Price—To increase one new amendment. Proceeds—To surplus. Underwriter — Kidder, supplied capital held. share for each two shares and by 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 to 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. 2 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. 4 at Probable bidders: Guaranty Trust Halsey, Stuart Co. of 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 shares aggregate of common total stock. Price—Not to of 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 is 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. D. 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. y (10/5) of 10 preferred stock held and shares held (with common new one share for oversubscription an 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 r Texas in by connection Southern shares of its with New common England abovementioned 488,888 of offer¬ additional l-for-9 by competitive stock at $30 per share on a Underwriter—To basis. the be 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 shares will' offer to be Proceeds—To repay corporate purposes. —William R. Staats for the shares, 112,500 offered account of 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. & be 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 to 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 of 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 1 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¬ 27 of the $1,300,000 of receiving tax-free income for the purposes be 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 to tendered (par $100). (EST) offered be 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 on Sept. 23 Price— 16 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 A 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 V. 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 V 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., 55 Continued from page —Hale 30,1954 I 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 & of New York. • l.. ■ i 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). , ; f • * 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. in per unit. units share one Proceeds—For expenses. Canada. of of 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. • v , Broadway, New York. Underwriter Co., New York. — S. B. , 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 — To 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. share for each share 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 v~ 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 of 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. of V 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 in Dallas basis of 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. shares increase held. surplus, Underwriters— by both of New York. Fenner Merrill Lynch, First Boston 1 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 be stock 1 First National Bank of. San 8 stockholders increased stock from 12,500 shares to To A $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 on 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 up to 11:30 a.m. (EST) Oct. 27. closed-end offered through Axe Securities Corp., stock (10/27) was about on 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. of — (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 32 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. on 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 up 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 14 sinking fund debentures Nov. York. Oct. Wyoming Uranium -- Services, Inc. Union on 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 on one by Uranium Mining Corp. July 21 (letter of notification) 9,996,000 shares of com¬ mon stock (par one cent). Price Thrde cents as ture and underwritten — Aug. 27 filed 68,528 shares of common stock (par $1) being offered for subscription by common stockholders I 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 20 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 at writers—To ^ Warren Corp., Tulsa, Okla. cent). ord on Probable Office—1812 St. Catherine St. West, Montreal, Underwriter—B. Fennekohl & Co., New York. Denver, Colo. Aug. 6 filed 65,000,000 shares of 4 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. on 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. to 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 ★ v. * 57 (o new share exercise an ★ 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 on 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 27 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 of shares 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, it 30 shares 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 it 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¬ on of record held shares 10 None. or some an a additional common l-for-10 basis. At 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 8 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. of a fto develop proven oil reserves, including an ex¬ panded drilling program. Underwriter—May be Blair Co. Incorporated. & s' ' 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. on a J 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 shares held. Price—To surplus and be 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 on Lynch, Co., of Nov. 1 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 of 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 be 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 it Aug, was additional Motors, Inc., Rockaway, N. J. reported company plans a small offering of capital stock (par $4) its to stockholders. Olin jMathieson Chemical Corp. otfms 50% of the presentlj^eutstanding shares, which fare being split-up on a 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 a secuWttes in the United Slates. -. .... • SsYage Industries, Inc., Phoenix, Ariz. Aug.|9 it was announced to issue and sell an lativfeibconvertible to gfoss around $250,000. acquisitions. plans later this year company additional preferred block of 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 shares {company company has no proposals approved stock common the and from specific financing convertible 1953, was underwrittgjj by Co., Smith, Barney & Co. and Pierce, Fenner & Beane. sell of The Under¬ program. -Drexel & SeptJ In¬ indebtedness $50,000,000. to 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 & 1 - * 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 on sell * National Bank of Washington National Bank above. * $oard, announced stockholders the Aug^2&,4t See Hamilton National City, of 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) to applied company Pacific Kentucky Utilities Co. its 15 (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 by 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. 1 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¬ 23 Aug. * 1953, was underwritten by Hilliard & Sons and ■ Gulf, Mobile & Ohio RR. ® ... )1318) the up (10/6) to noon (EST) on 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 to 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 a registration statement with the SEC covering the offer¬ ing of authorized but unissued shares of its $15 par value capital st3ck which stock, of Humble approximately shares of will . Oil nine Humble & offered be Refining Standard Oil stock. in Co. basis each 10 to amounl least at 80% of Humble Oil stock, of which Standard 384 so that March 16 it hold¬ shares, was which will now owns Corp., sale of a capital? Dayton, Lee — reported company plans later this yeai permanent to 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 8 dlirectors authorized subscription privilege). & an stock common ently outstanding. About if Templeton Growth Fund of Canada, Ltd., Toronto, Canada Price—$9 investment an share. per a yield under into such such for their funds mortgages and the direct purchase of corporate securities through negotiation. I as The this situation week and is government committed to an corporate viding abouts. found & 3% a 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 to to buyers was Light Co.'s on . Ipng cool Last week it 1 have market, half reported the time. down issue to up yield Louisville this vice market. A it must far be pointed out that prospectively "on" an And Britain and halting. informal of much the de facto situation public was had never come to 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 or L it 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¬ a commanding handsome a premium. of 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 a down run the roster. shows four issues, all a total of $69,500,000 This utilities> for will be up for bids. Public bids open same Light Co. on of Colorado Monday bonds. new for And day Wisconsin Power & is scheduled tenders for issue on an to look its on issue. more 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 — a change in the as, and if. New 35-year to issue little offing of York is next Telephone is $75,000,000 of refunding mortgage a long-continued flirtation with the water, with kibitzing in damp bathing suits. predict the swimmers * to * retirement bank loans. * The degree of convertibility well as we are envisaging excludes trans¬ capital transfers, the prerequisite to the flow of orders to the American securities market. i . $35,000,000 Competition promises to be keener here than even N. Y. but has evidently sidetracked ment of would floated basis. some Co. of financing plans, these have been pending the develop¬ market conditions which permit possible to new issue to something near a a In the large of 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 a bulk new control Then fur¬ was ther improved by the installation two-way radio on all delivery of trucks. The economic ness-getting move local are advantages claims and this The up. acquire five companies berty sales of showing now busi¬ and which will profits. more 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 II 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 in Market. 1920 • esti¬ at class B. to prior a The class of share until Oct. per cents the B is A dividend TROM, INC. ELIZABETH, N.J. 1, thereafter. receives an cents 1955, and Thereafter equal amount any additional dividends paid equally. The class A is A cents entitled was share per 1954, the directors on are 1954, by declaring terly divdend share payable stockholders of of receive 10 Sept. Oct. on a July quar¬ cents 7, record 1, the stock 40 cent annual basis a 20, to until put per 1954, Aug. 1954. to 24, be 3% of a looks real like growth that should afford the Furniture Printing Equipment. TECHNICOLOR, Inc. The Board declared a of Directors has dividend of twenty- five cents the Common (25c) share per Stock ($1 en¬ titled to elect one-third of the board of directors. Although the class Electronics entitled 40 on Par Value) of the Company, and dividend per of share * fifty on One the investor a a (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 at the close of business October 8, 1954. L. G. CLARK, Treasurer. beginning situation. he return a Gas 1948. a loading unit Petersburg. and of created framework to fill in. the for organization competing and advan¬ an location was purchased. the a and financing Gulf Cities Two owned it and St. has company gives sales, service tivities. The territory downtown land tageous4 central pleted wide serve-a Petersburg, This on bulk is Cities Year half-way between St. economically. 36 Edison Its stra¬ and of usual. , fers by residents, as of 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 50 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 in stock micro¬ until of 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 of 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 of 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. to territory, plans an $15,000,000 £*• a 31) & $18,500,000 of bonds, Metropolitan Edison Co. is due to open bids Realizing ago. rate Counter issue of $18,000,000. of while General over New York Telephone bit years next move is to Service $20,000,000 of 1 a two with liberal of 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). * is yield of 3.40%vto 3.50%. a has from 1199554320 — The Security I Like Best scopic size N & how on The market refunders, ly Stearns & Co. Continued from page 2 Gulf similar amount of divi¬ a & & 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 up 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, by apolis to 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 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¬ a secondary were credit policy, institutional investors still recoil from new easy, the over¬ to 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 be first Underwriter— obtaining funds week, Power institutions, up to this point at least, have been able to other outlets This the area. an contemplates company Major find of • security, where new falls the Under¬ program. To 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¬ an — — Probable common the at 150,000 shares None. as 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¬ Previous one date, which Beane; Stone & Webster Securities Corp. Higginson Corp. and P. W. Brooks mitting it to register of temporary repay bank 26,034,- Co., Inc., both of New York. as 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%. or Standard-Thomson Sept. 10 it ( do to 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. & of 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 shares Oil The exchange on 59 September 28, 1954. ■* i The Commercial and •69 September 30,1954 Financial Chronicle... Thursday, (1320) BUZZ ping They to lead will projects, BUSINESS stop* j a of apartment building,. expect it to continue in volume under insurance conventional forms of good and other mortgage credit. In ^ Nation'* Capital from the f 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 a counts not do *Mit must pense .aale so at the ex¬ of the normal market for of such commodities for dollars. in Secretary Benson has- . condition lars. this be would objective their own fcad be not would able to the schemes by ^declared his at he 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- or J markets world disrupt for those commodities. In other words, as one er in •We tbull must an observ¬ government explained it: i must in not operate china a shop like yet refuse henceforth to umbrella a we hold officials our like like moved, going (to are the Congress " Act sultant to some at loss a 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. is of 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 sponsors of 25,000 square feet with company priation only. Box Park Place, New York. 7, N. Y. / with Frank — recently was Knpwlton & Co. We have ►. available copies of an > Analysis of I RIVERSIDE DEMENT CLASS B £OMMON STOCK prepared by stock Pay Aid in Surpluses A copy - Congress earmarked $250 million of the foreign aid things worked beautifully, FAO, instance, would sell food to Spain for pesetas, and the ac¬ for quired pesetas would be used to an this for excellent op¬ capital gains. will be sent on request. Carl Marks & Co Inc. Last year appropriation to go out in the form of farm surpluses, and the offers portunity ^ SERVICE analysis shows why This be distributed form "of Strrplus farm / OVER-THE-COUNTER SPECIAL SITUATIONS * •* * S91lKCommer- He Street, fornia THE should commodities. cial & Financial Chronicle, 25 the in diversification principals Calif. Ralph W. Herget has rejoined with Hannaford & Talbot, 519 Cali¬ _ $350 million of the FAO appro¬ looking for Chronicle) FRANCISCO, recently provided i still an¬ other money-potent scheme for shucking the surpluses of CCC commodities. It provided that manu¬ facturing plant; net operating loss; desires merger (Special to The Financial SAN apartment Congress Metal processing company; located in middle south; Hannaford Talbot Adds commodities. own MERGER DESIRED Richards & Hannaford & Talbot. the lest, the P. previously with Hill able outside the FHA a Norman Building. Russ Second, it reflects the ampli¬ tude of mortgage money study Volume Nose-Dives things. become asso¬ C. GoreyfCo.,. Mr. Taylor was has Taylor ciated with Walter FHA. ease FHA Apartment House lead complete two flects and issues the Bureau nose-dive in housing re¬ First, it re¬ flects the airing of the so-called housing scandals, making just about- everybody interested in building apartments interested in going any place but to the This re¬ B. Chronicle) FRANCISCO, Cal.—£hilip SAN Co. and FHA's multi-family House, is order for its release. these com¬ interesting price in applications ever received in any month in the history of of Policy dt the the White August in history, but the lowest number Agri¬ ceives the foreign currency Adminis¬ desperately could to With Walter Gorey (Special to The Financial units. This the largest not was Francis, Special Con¬ Chairman. this act will arouse interest, for modities the for August in apartment living inter¬ committee, of which Clarence surpluses out of their sight, and there is no magic carpet big enough to sweep the the same under. Hence the administration of the vigorous sale of complex. is agency these get to allocate more Berkeley 4, Califs fornia Press, multi-family housing under FHA amounted to just 167 for this purpose. of Maritime Shipping 1930-1948—Volume II: An Analysis of Performance— Wytze Gorter and George H. Hildebrand—University of Cali¬ Coast Industry (cloth), $5.00. Applications be would spring top is established by an On the other hand, to or would cultural Trade and Development ly. anxious year, stuff in Alhadeff—Uni^ versity of California Press* Berkeley 4, Calif, (cloth), $4.50. Competition Banking—D. A. ment houses. id if it Administration Is Complex to tration officials are a Administration the need for shedding the °CCC stockpile and * less weight to the sensibilities of competing foreign exporters is to play it by ear. They don't even know yet how much chance they have of working this new legal gadget extensive¬ weight ments through looks dispacthes, how¬ that he was referring 1 to 4-family houses, and not all housing, including apart¬ (cloth), $9.00. J. and Monopoly Pacific neglected to ever, was to with eagerness more any normal anything do, instead of trying in advance to define what kind of circum¬ stances will lead them to give Benson, mention in the rid of the $1 billion money What with dollars. Secretary worked out which they will com¬ What Mr. Mason to act. th/is quota to up them get volume in history. FHA in if Messrs. pulsions of the surplus disposal currencies until they bought Benson and ac¬ that offi¬ reconcile the inconsistent for applications in August totaled 53,800, making August the biggest August in Stassen between On the other hand, an-!. Princeton, N. FHA Press,. University Princeton more). to last for three years. ever, have not yet cials re¬ sell a tual news situation is countries foreign that nation was in the works, and may have been nounced before today, the an given commodity/and a quiring with Act of homes soundly financed house, in Mason's opinion, is one where the cash money is less and the amount on the cuff is selling commodities for foreign currencies, is supposed, how¬ leading transaction" their Economic Projection: Income and Wealth ,—Vol. 16—Conference on Re¬ search in Income and Wealth— in Studies (a the $700 used finance and liberal tity prices on request. Long Range Mr. so, something which, like million which can be "m a j o r one 1954 year. Democratic world trading reaching agreement defining an average or historical volume of imports of though sum a can all be spent in one On the other hand, the $300 million allocated to FAO under the Agricultural Trade and Development Act for fam¬ ine and charitable relief, is do Plans Even is million $350 citi¬ take ad¬ of the U. S. A. to vantage of the more terms of the Housing which, if it proves possible to Haven't Worked Out Their : A normal method of This zens Spain. bases in of the because of the rush labof and contractors for building American military pay candidate. foreign coun¬ can use their currencies instead of dol¬ N. Y* (paper), single copy free; quan* forthcoming political con¬ they tries before Inc., Irvington-on-Hudson declare the dividend!" the dividend—we'll Education* dation for Economic declare be patient, sir—when we "You'll just have to into agreements with own a test with a vigorous this announced that will be written already ■ tent with his views on rencies * Lengthening Shadow of Govern¬ ment—Edmund A Opitz—Foun¬ thereby and payment in foreign cur¬ for surplus food stocks, lake (paper). world remaining consis¬ trade and tariffs, or of raising the tariff and helping thereby to save the political hide of Senator Leverett Saltonstall of Massachusetts apparent inconsistencies. On the hand the United States can -one Corporation, 14 Baltimore 2, Md- Credit Light Street, watches. on —Clyde William Phelps—Com¬ mercial The Presi¬ dent had his choice of refusing to raise the tariff on watches tariff glaring The law has the most , I ■ the inconsistency is similar to the problem pre¬ sented to the President by the both maximum on of $300 million. to chases of the Basically (b) can dispose of surplus food stocks through private charities, up the Instalment Pur¬ American Family the Financing prob¬ all for D. C. (paper) ; as all of lems Washing¬ Brookings Institution, ton 6, almost what miinstration (a) famine rush to the relief of any just for can famous for giv¬ the late Senator Taft twlitical coup de grace at *952 GOP convention, can ing (a) either of . , to put in the position the United States million this act that also under it is So this scheme appears Corp. countries for foreign to Enterprise in a Competitive System—A. D. H. Kaplan—The Big prices. in the #ie, can sell up to $700 of Commodity Credit under-cutting not how some offi- each deed from the many that they are the world market, retary Benson, if he can get a -suitable list of signatures on -clals who have a finger economic¬ ally illiterate as to suggest that because they sell for currencies of doubtful commercial value in and Trade "Chronicle's" the strike one as being so titled "Agricul¬ Development magnificently not coincide with own views.) and may or may ■ of the sensi¬ foreigners to this sort of approach would suggest that almost any sale for foreign : currencies would lead to vio¬ lent protests from competing countries. Furthermore, the men around Benson do not in the course of tural • / of tiveness must not get wet. .sales ; instances Past , - principal farm com¬ prices of modities." trying at the officials are the world support program over C.—Fed¬ D. -WASHINGTON, eral fleet the "behind the scene" interpretation from the nation's Capital FOREIGN SECURITIES 50 BROAD STREET TEL: HANOVER 2-0050 • LEtMER & GO. SPECIALISTS NEW YORK 4, N. Y. "• TELETYPE NY 1-971 Investment 10 Post Office Securities Square* Boston Telephone HUbbard 2-1990 9, Mass. Teletype BS 69